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 811-05361
Variable Insurance Products Fund V
(Exact name of registrant as specified in charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)
Scott C. Goebel, Secretary
82 Devonshire St.
Boston, Massachusetts 02109
(Name and address of agent for service)
Registrant's telephone number, including area code: 617-563-7000
Date of fiscal year end: | December 31 |
| |
Date of reporting period: | June 30, 2010 |
This report on Form N-CSR relates solely to the Registrant's Freedom 2005 Portfolio, Freedom 2010 Portfolio, Freedom 2015 Portfolio, Freedom 2020 Portfolio, Freedom 2025 Portfolio, Freedom 2030 Portfolio, Freedom 2035 Portfolio, Freedom 2040 Portfolio, Freedom 2045 Portfolio, Freedom 2050 Portfolio, Freedom Income Portfolio, Freedom Lifetime Income I Portfolio, Freedom Lifetime Income II Portfolio, Freedom Lifetime Income III Portfolio, FundsManager 20% Portfolio, FundsManager 50% Portfolio, FundsManager 60%, FundsManager 70% Portfolio, FundsManager 85% Portfolio, Investor Freedom 2005 Portfolio, Investor Freedom 2010 Portfolio, Investor Freedom 2015 Portfolio, Investor Freedom 2020 Portfolio, Investor Freedom 2025 Portfolio, Investor Freedom 2030 Portfolio and Investor Freedom Income Portfolio series (each, a "Fund" and collectively, the "Funds").
Item 1. Reports to Stockholders
Fidelity® Variable Insurance Products:
Freedom Funds -
Income, 2005, 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050
Semiannual Report
June 30, 2010
(2_fidelity_logos) (Registered_Trademark)
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.
Semiannual Report
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including 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 the Funds 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 (January 1, 2010 to June 30, 2010).
Actual Expenses
The first line of the accompanying table for each class of each fund 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 of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' 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. 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. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
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.
| Annualized Expense Ratio | Beginning
Account Value
January 1, 2010 | Ending
Account Value
June 30, 2010 | Expenses Paid
During Period*
January 1, 2010
to June 30, 2010 |
VIP Freedom Income | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 1,010.50 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 1,010.50 | $ .50 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 1,009.60 | $ 1.25 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2005 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 990.40 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 989.30 | $ .49 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 989.30 | $ 1.23 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2010 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 987.70 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 985.70 | $ .49 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 985.60 | $ 1.23 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2015 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 985.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 985.20 | $ .49 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 984.10 | $ 1.23 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2020 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 973.70 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 974.70 | $ .49 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 973.60 | $ 1.22 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2025 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 966.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 965.00 | $ .49 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 964.90 | $ 1.22 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2030 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 957.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 957.30 | $ .49 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 957.20 | $ 1.21 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2035 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 950.00 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 949.90 | $ .48 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 949.20 | $ 1.21 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2040 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 949.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 948.40 | $ .48 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 947.70 | $ 1.21 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2045 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 946.40 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 945.70 | $ .48 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 945.70 | $ 1.21 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
VIP Freedom 2050 | | | | |
Initial Class | .00% | | | |
Actual | | $ 1,000.00 | $ 939.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
Service Class | .10% | | | |
Actual | | $ 1,000.00 | $ 939.20 | $ .48 |
HypotheticalA | | $ 1,000.00 | $ 1,024.30 | $ .50 |
Service Class 2 | .25% | | | |
Actual | | $ 1,000.00 | $ 938.50 | $ 1.20 |
HypotheticalA | | $ 1,000.00 | $ 1,023.55 | $ 1.25 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
VIP Freedom Income Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 2.6 | 3.2 |
VIP Equity-Income Portfolio Initial Class | 3.0 | 3.7 |
VIP Growth & Income Portfolio Initial Class | 3.0 | 3.8 |
VIP Growth Portfolio Initial Class | 3.0 | 3.8 |
VIP Mid Cap Portfolio Initial Class | 1.1 | 1.3 |
VIP Value Portfolio Initial Class | 2.6 | 3.3 |
VIP Value Strategies Portfolio Initial Class | 1.1 | 1.4 |
| 16.4 | 20.5 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 3.2 | 0.0 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 0.3 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 5.0 | 5.1 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 35.1 | 34.7 |
Short-Term Funds | | |
VIP Money Market Portfolio Initial Class | 40.1 | 39.7 |
Net Other Assets | | |
Net Other Assets | (0.1) | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
 | Domestic Equity Funds | 16.4% | |
 | Developed International Equity Funds | 3.2% | |
 | Emerging Markets Equity Funds | 0.3% | |
 | High Yield Bond Funds | 5.0% | |
 | Investment Grade Bond Funds | 35.1% | |
 | Short-Term Funds | 40.1% | |
 | Net Other Assets† (0.1)% | |
Six months ago |
| Domestic Equity Funds | 20.5% | |
 | Investment Grade Bond Funds | 34.7% | |
 | High Yield Bond Funds | 5.1% | |
 | Short-Term Funds | 39.7% | |
Expected |
| Domestic Equity Funds | 14.6% | |
| Developed International Equity Funds | 4.6% | |
| Emerging Markets Equity Funds | 0.8% | |
 | High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 35.0% | |
| Short-Term Funds | 40.0% | |
The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
* Amount represents less than 0.1% |
† Net Other Assets are not included in the pie chart. |
Semiannual Report
VIP Freedom Income Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 16.4% |
| Shares | | Value |
Domestic Equity Funds - 16.4% |
VIP Contrafund Portfolio Initial Class | 23,030 | | $ 443,320 |
VIP Equity-Income Portfolio Initial Class | 33,074 | | 515,956 |
VIP Growth & Income Portfolio Initial Class | 50,624 | | 515,855 |
VIP Growth Portfolio Initial Class | 18,106 | | 516,391 |
VIP Mid Cap Portfolio Initial Class | 7,159 | | 185,130 |
VIP Value Portfolio Initial Class | 48,878 | | 442,836 |
VIP Value Strategies Portfolio Initial Class | 24,352 | | 184,585 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $3,680,452) | 2,804,073 |
International Equity Funds - 3.5% |
| | | |
Developed International Equity Funds - 3.2% |
VIP Overseas Portfolio Initial Class | 41,204 | | 536,058 |
Emerging Markets Equity Funds - 0.3% |
VIP Emerging Markets Portfolio Initial Class | 6,549 | | 51,210 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $616,147) | 587,268 |
Bond Funds - 40.1% |
| | | |
High Yield Bond Funds - 5.0% |
VIP High Income Portfolio Initial Class | 156,631 | | 856,772 |
Investment Grade Bond Funds - 35.1% |
VIP Investment Grade Bond Portfolio Initial Class | 456,120 | | 6,002,536 |
TOTAL BOND FUNDS (Cost $6,574,556) | 6,859,308 |
Short-Term Funds - 40.1% |
| | | |
VIP Money Market Portfolio Initial Class
(Cost $6,855,233) | 6,855,233 | | 6,855,233 |
TOTAL INVESTMENT PORTFOLIO - 100.1% (Cost $17,726,388) | | 17,105,882 |
NET OTHER ASSETS (LIABILITIES) - (0.1)% | | (15,150) |
NET ASSETS - 100% | $ 17,090,732 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom Income Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $17,726,388) - See accompanying schedule | | $ 17,105,882 |
Receivable for investments sold | | 188 |
Receivable for fund shares sold | | 206 |
Total assets | | 17,106,276 |
| | |
Liabilities | | |
Payable to custodian bank | $ 29 | |
Payable for investments purchased | 85 | |
Payable for fund shares redeemed | 14,100 | |
Distribution fees payable | 1,330 | |
Total liabilities | | 15,544 |
| | |
Net Assets | | $ 17,090,732 |
Net Assets consist of: | | |
Paid in capital | | $ 17,551,012 |
Undistributed net investment income | | 2,924 |
Accumulated undistributed net realized gain (loss) on investments | | 157,302 |
Net unrealized appreciation (depreciation) on investments | | (620,506) |
Net Assets | | $ 17,090,732 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($10,626,715 ÷ 1,054,305 shares) | | $ 10.08 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($204,968 ÷ 20,330 shares) | | $ 10.08 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($6,259,049 ÷ 623,549 shares) | | $ 10.04 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 11,326 |
| | |
Expenses | | |
Distribution fees | $ 8,402 | |
Independent trustees' compensation | 32 | |
Total expenses before reductions | 8,434 | |
Expense reductions | (32) | 8,402 |
Net investment income (loss) | | 2,924 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 280,665 | |
Capital gain distributions from underlying funds | 1,058 | 281,723 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (66,627) |
Net gain (loss) | | 215,096 |
Net increase (decrease) in net assets resulting from operations | | $ 218,020 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,924 | $ 643,136 |
Net realized gain (loss) | 281,723 | 204,551 |
Change in net unrealized appreciation (depreciation) | (66,627) | 1,442,211 |
Net increase (decrease) in net assets resulting from operations | 218,020 | 2,289,898 |
Distributions to shareholders from net investment income | - | (651,988) |
Distributions to shareholders from net realized gain | (47,700) | (251,371) |
Total distributions | (47,700) | (903,359) |
Share transactions - net increase (decrease) | (2,675,236) | 4,138,154 |
Total increase (decrease) in net assets | (2,504,916) | 5,524,693 |
| | |
Net Assets | | |
Beginning of period | 19,595,648 | 14,070,955 |
End of period (including undistributed net investment income of $2,924 and undistributed net investment income of $0, respectively) | $ 17,090,732 | $ 19,595,648 |
Financial Highlights - Initial Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.00 | $ 9.14 | $ 10.80 | $ 10.71 | $ 10.36 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | .01 | .39 | .36 | .43 | .40 | .16 |
Net realized and unrealized gain (loss) | .10 | .96 | (1.48) | .22 | .32 | .30 |
Total from investment operations | .11 | 1.35 | (1.12) | .65 | .72 | .46 |
Distributions from net investment income | - | (.35) | (.37) | (.44) | (.32) | (.10) |
Distributions from net realized gain | (.03) | (.15) | (.17) | (.12) | (.05) | - |
Total distributions | (.03) | (.49)I | (.54) | (.56) | (.37) | (.10) |
Net asset value, end of period | $ 10.08 | $ 10.00 | $ 9.14 | $ 10.80 | $ 10.71 | $ 10.36 |
Total ReturnB,C,D | 1.05% | 14.95% | (10.45)% | 6.10% | 6.94% | 4.58% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of fee waivers, if any | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of all reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Net investment income (loss) | .12%A | 4.00% | 3.50% | 3.93% | 3.75% | 2.34%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,627 | $ 12,679 | $ 8,976 | $ 10,035 | $ 9,398 | $ 5,954 |
Portfolio turnover rate | 33%A | 32% | 55% | 56% | 44% | 12%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Total distributions of $.49 per share is comprised of distributions from net investment income of $.347 and distributions from net realized gain of $.146 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom Income Portfolio
Financial Statements - continued
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 10.00 | $ 9.14 | $ 10.81 | $ 10.71 | $ 10.36 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .37 | .35 | .42 | .39 | .16 |
Net realized and unrealized gain (loss) | .11 | .97 | (1.50) | .23 | .32 | .29 |
Total from investment operations | .11 | 1.34 | (1.15) | .65 | .71 | .45 |
Distributions from net investment income | - | (.33) | (.35) | (.43) | (.31) | (.09) |
Distributions from net realized gain | (.03) | (.15) | (.17) | (.12) | (.05) | - |
Total distributions | (.03) | (.48)J | (.52) | (.55) | (.36) | (.09) |
Net asset value, end of period | $ 10.08 | $ 10.00 | $ 9.14 | $ 10.81 | $ 10.71 | $ 10.36 |
Total ReturnB,C,D | 1.05% | 14.81% | (10.65)% | 6.10% | 6.83% | 4.51% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of fee waivers, if any | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of all reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Net investment income (loss) | .02%A | 3.90% | 3.40% | 3.83% | 3.65% | 2.24%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 205 | $ 163 | $ 258 | $ 414 | $ 391 | $ 366 |
Portfolio turnover rate | 33%A | 32% | 55% | 56% | 44% | 12%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $.48 per share is comprised of distributions from net investment income of $.334 and distributions from net realized gain of $.146 per share. |
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.97 | $ 9.12 | $ 10.78 | $ 10.69 | $ 10.36 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | (.01) | .36 | .33 | .40 | .37 | .15 |
Net realized and unrealized gain (loss) | .11 | .96 | (1.48) | .23 | .32 | .29 |
Total from investment operations | .10 | 1.32 | (1.15) | .63 | .69 | .44 |
Distributions from net investment income | - | (.33) | (.34) | (.42) | (.31) | (.08) |
Distributions from net realized gain | (.03) | (.15) | (.17) | (.12) | (.05) | - |
Total distributions | (.03) | (.47)I | (.51) | (.54) | (.36) | (.08) |
Net asset value, end of period | $ 10.04 | $ 9.97 | $ 9.12 | $ 10.78 | $ 10.69 | $ 10.36 |
Total ReturnB,C,D | .96% | 14.64% | (10.70)% | 5.92% | 6.61% | 4.41% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of fee waivers, if any | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of all reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Net investment income (loss) | (.13)%A | 3.76% | 3.25% | 3.68% | 3.50% | 2.09%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 6,259 | $ 6,753 | $ 4,836 | $ 3,589 | $ 1,061 | $ 365 |
Portfolio turnover rate | 33%A | 32% | 55% | 56% | 44% | 12%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Total distributions of $.47 per share is comprised of distributions from net investment income of $.326 and distributions from net realized gain of $.146 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2005 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 5.3 | 6.1 |
VIP Equity-Income Portfolio Initial Class | 6.2 | 7.0 |
VIP Growth & Income Portfolio Initial Class | 6.1 | 7.0 |
VIP Growth Portfolio Initial Class | 6.2 | 7.1 |
VIP Mid Cap Portfolio Initial Class | 2.2 | 2.5 |
VIP Value Portfolio Initial Class | 5.3 | 6.2 |
VIP Value Strategies Portfolio Initial Class | 2.2 | 2.6 |
| 33.5 | 38.5 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 9.0 | 7.6 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 0.8 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 5.0 | 5.0 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 31.9 | 32.1 |
Short-Term Funds | | |
VIP Money Market Portfolio Initial Class | 19.8 | 16.8 |
Net Other Assets | | |
Net Other Assets | 0.0* | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 33.5% | |
| Developed International Equity Funds | 9.0% | |
| Emerging Markets Equity Funds | 0.8% | |
| High Yield Bond Funds | 5.0% | |
 | Investment Grade Bond Funds | 31.9% | |
| Short-Term Funds | 19.8% | |
Six months ago |
| Domestic Equity Funds | 38.5% | |
| Developed International Equity Funds | 7.6% | |
| Investment Grade Bond Funds | 32.1% | |
| High Yield Bond Funds | 5.0% | |
| Short-Term Funds | 16.8% | |
Expected |
| Domestic Equity Funds | 30.8% | |
| Developed International Equity Funds | 9.5% | |
| Emerging Markets Equity Funds | 1.7% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 31.2% | |
| Short-Term Funds | 21.8% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2005 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 33.5% |
| Shares | | Value |
Domestic Equity Funds - 33.5% |
VIP Contrafund Portfolio Initial Class | 15,444 | | $ 297,289 |
VIP Equity-Income Portfolio Initial Class | 22,156 | | 345,637 |
VIP Growth & Income Portfolio Initial Class | 33,913 | | 345,569 |
VIP Growth Portfolio Initial Class | 12,129 | | 345,928 |
VIP Mid Cap Portfolio Initial Class | 4,797 | | 124,049 |
VIP Value Portfolio Initial Class | 32,778 | | 296,964 |
VIP Value Strategies Portfolio Initial Class | 16,317 | | 123,684 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $2,631,947) | 1,879,120 |
International Equity Funds - 9.8% |
| | | |
Developed International Equity Funds - 9.0% |
VIP Overseas Portfolio Initial Class | 38,731 | | 503,888 |
Emerging Markets Equity Funds - 0.8% |
VIP Emerging Markets Portfolio Initial Class | 6,176 | | 48,297 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $771,454) | 552,185 |
Bond Funds - 36.9% |
| | | |
High Yield Bond Funds - 5.0% |
VIP High Income Portfolio Initial Class | 51,531 | | 281,874 |
Investment Grade Bond Funds - 31.9% |
VIP Investment Grade Bond Portfolio Initial Class | 136,011 | | 1,789,905 |
TOTAL BOND FUNDS (Cost $1,997,169) | 2,071,779 |
Short-Term Funds - 19.8% |
| | | |
VIP Money Market Portfolio Initial Class
(Cost $1,113,015) | 1,113,015 | | 1,113,015 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $6,513,585) | | 5,616,099 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (58) |
NET ASSETS - 100% | $ 5,616,041 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2005 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $6,513,585) - See accompanying schedule | | $ 5,616,099 |
Receivable for investments sold | | 121 |
Total assets | | 5,616,220 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1 | |
Payable for investments purchased | 14 | |
Payable for fund shares redeemed | 115 | |
Distribution fees payable | 49 | |
Total liabilities | | 179 |
| | |
Net Assets | | $ 5,616,041 |
Net Assets consist of: | | |
Paid in capital | | $ 6,701,542 |
Undistributed net investment income | | 3,512 |
Accumulated undistributed net realized gain (loss) on investments | | (191,527) |
Net unrealized appreciation (depreciation) on investments | | (897,486) |
Net Assets | | $ 5,616,041 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($5,318,737 ÷ 579,881 shares) | | $ 9.17 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($134,237 ÷ 14,634 shares) | | $ 9.17 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($163,067 ÷ 17,777 shares) | | $ 9.17 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 3,039 |
| | |
Expenses | | |
Distribution fees | $ 250 | |
Independent trustees' compensation | 11 | |
Total expenses before reductions | 261 | |
Expense reductions | (11) | 250 |
Net investment income (loss) | | 2,789 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (57,318) | |
Capital gain distributions from underlying funds | 706 | (56,612) |
Change in net unrealized appreciation (depreciation) on underlying funds | | 26,698 |
Net gain (loss) | | (29,914) |
Net increase (decrease) in net assets resulting from operations | | $ (27,125) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
June 30, 2010 (Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,789 | $ 259,416 |
Net realized gain (loss) | (56,612) | 156,333 |
Change in net unrealized appreciation (depreciation) | 26,698 | 944,768 |
Net increase (decrease) in net assets resulting from operations | (27,125) | 1,360,517 |
Distributions to shareholders from net investment income | - | (259,101) |
Distributions to shareholders from net realized gain | (58,026) | (199,216) |
Total distributions | (58,026) | (458,317) |
Share transactions - net increase (decrease) | (1,487,099) | (227,175) |
Total increase (decrease) in net assets | (1,572,250) | 675,025 |
| | |
Net Assets | | |
Beginning of period | 7,188,291 | 6,513,266 |
End of period (including undistributed net investment income of $3,512 and undistributed net investment income of $723, respectively) | $ 5,616,041 | $ 7,188,291 |
Financial Highlights - Initial Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.34 | $ 8.14 | $ 11.59 | $ 11.41 | $ 10.74 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .34 | .34 | .38 | .31 | .09 |
Net realized and unrealized gain (loss) | (.09) | 1.48 | (3.06) | .60 | .72 | .71 |
Total from investment operations | (.09) | 1.82 | (2.72) | .98 | 1.03 | .80 |
Distributions from net investment income | - | (.35) | (.34) | (.34) | (.31) | (.06) |
Distributions from net realized gain | (.08) | (.26) | (.39) | (.47) | (.05) | - |
Total distributions | (.08) | (.62)K | (.73) | (.80)J | (.36) | (.06) |
Net asset value, end of period | $ 9.17 | $ 9.34 | $ 8.14 | $ 11.59 | $ 11.41 | $ 10.74 |
Total ReturnB,C,D | (.96)% | 23.02% | (23.83)% | 8.65% | 9.59% | 7.98% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of fee waivers, if any | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of all reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Net investment income (loss) | .09%A | 3.95% | 3.29% | 3.20% | 2.82% | 1.24%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,319 | $ 6,833 | $ 5,993 | $ 9,203 | $ 7,871 | $ 5,284 |
Portfolio turnover rate | 41%A | 50% | 51% | 51% | 56% | 43%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $.80 per share is comprised of distributions from net investment income of $.335 and distributions from net realized gain of $.465 per share. K Total distributions of $.62 per share is comprised of distributions from net investment income of $.353 and distributions from net realized gain of $.262 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005H |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.35 | $ 8.14 | $ 11.59 | $ 11.41 | $ 10.74 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -G | .33 | .33 | .37 | .30 | .08 |
Net realized and unrealized gain (loss) | (.10) | 1.48 | (3.06) | .60 | .72 | .71 |
Total from investment operations | (.10) | 1.81 | (2.73) | .97 | 1.02 | .79 |
Distributions from net investment income | - | (.34) | (.33) | (.32) | (.30) | (.05) |
Distributions from net realized gain | (.08) | (.26) | (.39) | (.47) | (.05) | - |
Total distributions | (.08) | (.60)K | (.72) | (.79)J | (.35) | (.05) |
Net asset value, end of period | $ 9.17 | $ 9.35 | $ 8.14 | $ 11.59 | $ 11.41 | $ 10.74 |
Total ReturnB,C,D | (1.07)% | 23.00% | (23.95)% | 8.55% | 9.48% | 7.91% |
Ratios to Average Net AssetsF,I | | | | | | |
Expenses before reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of fee waivers, if any | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of all reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Net investment income (loss) | (.01)%A | 3.85% | 3.19% | 3.10% | 2.72% | 1.14%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 134 | $ 172 | $ 250 | $ 449 | $ 414 | $ 378 |
Portfolio turnover rate | 41%A | 50% | 51% | 51% | 56% | 43%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G Amount represents less than .01%. H For the period April 26, 2005 (commencement of operations) to December 31, 2005. I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. J Total distributions of $.79 per share is comprised of distributions from net investment income of $.323 and distributions from net realized gain of $.465 per share. K Total distributions of $.60 per share is comprised of distributions from net investment income of $.341 and distributions from net realized gain of $.262 per share. |
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.35 | $ 8.14 | $ 11.59 | $ 11.41 | $ 10.74 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | (.01) | .32 | .31 | .35 | .29 | .07 |
Net realized and unrealized gain (loss) | (.09) | 1.48 | (3.06) | .60 | .71 | .71 |
Total from investment operations | (.10) | 1.80 | (2.75) | .95 | 1.00 | .78 |
Distributions from net investment income | - | (.32) | (.31) | (.31) | (.28) | (.04) |
Distributions from net realized gain | (.08) | (.26) | (.39) | (.47) | (.05) | - |
Total distributions | (.08) | (.59)J | (.70) | (.77)I | (.33) | (.04) |
Net asset value, end of period | $ 9.17 | $ 9.35 | $ 8.14 | $ 11.59 | $ 11.41 | $ 10.74 |
Total ReturnB,C,D | (1.07)% | 22.78% | (24.12)% | 8.40% | 9.34% | 7.80% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of fee waivers, if any | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of all reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Net investment income (loss) | (.16)%A | 3.70% | 3.04% | 2.95% | 2.57% | 1.00%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 163 | $ 183 | $ 271 | $ 456 | $ 413 | $ 377 |
Portfolio turnover rate | 41%A | 50% | 51% | 51% | 56% | 43%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Total distributions of $.77 per share is comprised of distributions from net investment income of $.306 and distributions from net realized gain of $.465 per share. J Total distributions of $.59 per share is comprised of distributions from net investment income of $.324 and distributions from net realized gain of $.262 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2010 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 5.9 | 6.5 |
VIP Equity-Income Portfolio Initial Class | 6.9 | 7.4 |
VIP Growth & Income Portfolio Initial Class | 6.9 | 7.5 |
VIP Growth Portfolio Initial Class | 6.9 | 7.6 |
VIP Mid Cap Portfolio Initial Class | 2.5 | 2.6 |
VIP Value Portfolio Initial Class | 5.9 | 6.5 |
VIP Value Strategies Portfolio Initial Class | 2.5 | 2.7 |
| 37.5 | 40.8 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 11.0 | 9.9 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 1.0 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 5.0 | 5.1 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 35.1 | 33.9 |
Short-Term Funds | | |
VIP Money Market Portfolio Initial Class | 10.4 | 10.3 |
Net Other Assets | | |
Net Other Assets | 0.0* | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 37.5% | |
| Developed International Equity Funds | 11.0% | |
| Emerging Markets Equity Funds | 1.0% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 35.1% | |
| Short-Term Funds | 10.4% | |
Six months ago |
| Domestic Equity Funds | 40.8% | |
| Developed International Equity Funds | 9.9% | |
| Investment Grade Bond Funds | 33.9% | |
| High Yield Bond Funds | 5.1% | |
| Short-Term Funds | 10.3% | |
| Cash Equivalents | 0.0%* | |
Expected |
| Domestic Equity Funds | 36.3% | |
| Developed International Equity Funds | 11.3% | |
| Emerging Markets Equity Funds | 2.0% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 34.8% | |
| Short-Term Funds | 10.6% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2010 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 37.5% |
| Shares | | Value |
Domestic Equity Funds - 37.5% |
VIP Contrafund Portfolio Initial Class | 399,553 | | $ 7,691,389 |
VIP Equity-Income Portfolio Initial Class | 573,803 | | 8,951,320 |
VIP Growth & Income Portfolio Initial Class | 878,271 | | 8,949,582 |
VIP Growth Portfolio Initial Class | 314,123 | | 8,958,780 |
VIP Mid Cap Portfolio Initial Class | 124,461 | | 3,218,551 |
VIP Value Portfolio Initial Class | 848,022 | | 7,683,079 |
VIP Value Strategies Portfolio Initial Class | 423,374 | | 3,209,173 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $64,617,696) | 48,661,874 |
International Equity Funds - 12.0% |
| | | |
Developed International Equity Funds - 11.0% |
VIP Overseas Portfolio Initial Class | 1,095,013 | | 14,246,113 |
Emerging Markets Equity Funds - 1.0% |
VIP Emerging Markets Portfolio Initial Class | 174,423 | | 1,363,987 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $21,264,936) | 15,610,100 |
Bond Funds - 40.1% |
| | | |
High Yield Bond Funds - 5.0% |
VIP High Income Portfolio Initial Class | 1,191,926 | | 6,519,837 |
Investment Grade Bond Funds - 35.1% |
VIP Investment Grade Bond Portfolio Initial Class | 3,461,062 | | 45,547,577 |
TOTAL BOND FUNDS (Cost $50,305,196) | 52,067,414 |
Short-Term Funds - 10.4% |
| | | |
VIP Money Market Portfolio Initial Class
(Cost $13,498,115) | 13,498,115 | | 13,498,115 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $149,685,943) | | 129,837,503 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (21,856) |
NET ASSETS - 100% | $ 129,815,647 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2010 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $149,685,943) - See accompanying schedule | | $ 129,837,503 |
Receivable for fund shares sold | | 1,424,384 |
Total assets | | 131,261,887 |
| | |
Liabilities | | |
Payable to custodian bank | $ 94 | |
Payable for investments purchased | 1,346,009 | |
Payable for fund shares redeemed | 79,479 | |
Distribution fees payable | 20,658 | |
Total liabilities | | 1,446,240 |
| | |
Net Assets | | $ 129,815,647 |
Net Assets consist of: | | |
Paid in capital | | $ 150,180,778 |
Accumulated net investment loss | | (60,468) |
Accumulated undistributed net realized gain (loss) on investments | | (456,223) |
Net unrealized appreciation (depreciation) on investments | | (19,848,440) |
Net Assets | | $ 129,815,647 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($20,150,307 ÷ 2,102,130 shares) | | $ 9.59 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($18,566,772 ÷ 1,939,410 shares) | | $ 9.57 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($91,098,568 ÷ 9,551,289 shares) | | $ 9.54 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 54,111 |
Interest | | 3 |
Total income | | 54,114 |
| | |
Expenses | | |
Distribution fees | $ 123,111 | |
Independent trustees' compensation | 223 | |
Total expenses before reductions | 123,334 | |
Expense reductions | (223) | 123,111 |
Net investment income (loss) | | (68,997) |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 560,664 | |
Capital gain distributions from underlying funds | 14,069 | 574,733 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (2,370,119) |
Net gain (loss) | | (1,795,386) |
Net increase (decrease) in net assets resulting from operations | | $ (1,864,383) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (68,997) | $ 4,477,224 |
Net realized gain (loss) | 574,733 | 1,326,323 |
Change in net unrealized appreciation (depreciation) | (2,370,119) | 18,322,740 |
Net increase (decrease) in net assets resulting from operations | (1,864,383) | 24,126,287 |
Distributions to shareholders from net investment income | - | (4,479,938) |
Distributions to shareholders from net realized gain | (792,343) | (871,550) |
Total distributions | (792,343) | (5,351,488) |
Share transactions - net increase (decrease) | 4,247,425 | 980,260 |
Total increase (decrease) in net assets | 1,590,699 | 19,755,059 |
| | |
Net Assets | | |
Beginning of period | 128,224,948 | 108,469,889 |
End of period (including accumulated net investment loss of $60,468 and undistributed net investment income of $8,529, respectively) | $ 129,815,647 | $ 128,224,948 |
Financial Highlights - Initial Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.77 | $ 8.23 | $ 11.96 | $ 11.59 | $ 10.78 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .38 | .35 | .36 | .28 | .11 |
Net realized and unrealized gain (loss) | (.12) | 1.60 | (3.32) | .64 | .78 | .72 |
Total from investment operations | (.12) | 1.98 | (2.97) | 1.00 | 1.06 | .83 |
Distributions from net investment income | - | (.37) | (.31) | (.30) | (.20) | (.05) |
Distributions from net realized gain | (.06) | (.07) | (.45) | (.33) | (.05) | - |
Total distributions | (.06) | (.44) | (.76) | (.63) | (.25) | (.05) |
Net asset value, end of period | $ 9.59 | $ 9.77 | $ 8.23 | $ 11.96 | $ 11.59 | $ 10.78 |
Total ReturnB,C,D | (1.23)% | 24.27% | (25.05)% | 8.71% | 9.82% | 8.33% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of fee waivers, if any | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of all reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Net investment income (loss) | .08%A | 4.22% | 3.27% | 2.95% | 2.48% | 1.56%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 20,150 | $ 21,197 | $ 24,962 | $ 26,629 | $ 20,992 | $ 13,343 |
Portfolio turnover rate | 30%A | 28% | 34% | 21% | 24% | 24%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2010 Portfolio
Financial Statements - continued
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.77 | $ 8.23 | $ 11.95 | $ 11.58 | $ 10.77 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .37 | .33 | .35 | .27 | .10 |
Net realized and unrealized gain (loss) | (.14) | 1.60 | (3.30) | .64 | .78 | .72 |
Total from investment operations | (.14) | 1.97 | (2.97) | .99 | 1.05 | .82 |
Distributions from net investment income | - | (.36) | (.30) | (.29) | (.19) | (.05) |
Distributions from net realized gain | (.06) | (.07) | (.45) | (.33) | (.05) | - |
Total distributions | (.06) | (.43) | (.75) | (.62) | (.24) | (.05) |
Net asset value, end of period | $ 9.57 | $ 9.77 | $ 8.23 | $ 11.95 | $ 11.58 | $ 10.77 |
Total ReturnB,C,D | (1.43)% | 24.15% | (25.08)% | 8.65% | 9.78% | 8.17% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of fee waivers, if any | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of all reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Net investment income (loss) | (.02)%A | 4.12% | 3.17% | 2.85% | 2.39% | 1.46%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 18,567 | $ 19,238 | $ 17,137 | $ 19,295 | $ 5,984 | $ 764 |
Portfolio turnover rate | 30%A | 28% | 34% | 21% | 24% | 24%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. |
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.74 | $ 8.21 | $ 11.92 | $ 11.56 | $ 10.76 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | (.01) | .35 | .32 | .33 | .25 | .09 |
Net realized and unrealized gain (loss) | (.13) | 1.60 | (3.29) | .64 | .78 | .72 |
Total from investment operations | (.14) | 1.95 | (2.97) | .97 | 1.03 | .81 |
Distributions from net investment income | - | (.35) | (.29) | (.28) | (.18) | (.05) |
Distributions from net realized gain | (.06) | (.07) | (.45) | (.33) | (.05) | - |
Total distributions | (.06) | (.42) | (.74) | (.61) | (.23) | (.05) |
Net asset value, end of period | $ 9.54 | $ 9.74 | $ 8.21 | $ 11.92 | $ 11.56 | $ 10.76 |
Total ReturnB,C,D | (1.44)% | 23.95% | (25.17)% | 8.42% | 9.58% | 8.07% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of fee waivers, if any | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of all reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Net investment income (loss) | (.17)%A | 3.97% | 3.02% | 2.70% | 2.24% | 1.31%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 91,099 | $ 87,791 | $ 66,370 | $ 62,510 | $ 38,662 | $ 9,702 |
Portfolio turnover rate | 30%A | 28% | 34% | 21% | 24% | 24%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2015 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 6.1 | 6.7 |
VIP Equity-Income Portfolio Initial Class | 7.1 | 7.7 |
VIP Growth & Income Portfolio Initial Class | 7.1 | 7.8 |
VIP Growth Portfolio Initial Class | 7.1 | 7.9 |
VIP Mid Cap Portfolio Initial Class | 2.6 | 2.8 |
VIP Value Portfolio Initial Class | 6.1 | 6.8 |
VIP Value Strategies Portfolio Initial Class | 2.5 | 2.8 |
| 38.6 | 42.5 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 11.3 | 10.3 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 1.1 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 5.1 | 5.3 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 34.6 | 33.4 |
Short-Term Funds | | |
VIP Money Market Portfolio Initial Class | 9.3 | 8.5 |
Net Other Assets | | |
Net Other Assets | 0.0* | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 38.6% | |
| Developed International Equity Funds | 11.3% | |
| Emerging Markets Equity Funds | 1.1% | |
| High Yield Bond Funds | 5.1% | |
| Investment Grade Bond Funds | 34.6% | |
| Short-Term Funds | 9.3% | |
Six months ago |
| Domestic Equity Funds | 42.5% | |
| Developed International Equity Funds | 10.3% | |
| Investment Grade Bond Funds | 33.4% | |
| High Yield Bond Funds | 5.3% | |
| Short-Term Funds | 8.5% | |
Expected |
| Domestic Equity Funds | 37.3% | |
| Developed International Equity Funds | 11.6% | |
| Emerging Markets Equity Funds | 2.0% | |
| High Yield Bond Funds | 5.1% | |
| Investment Grade Bond Funds | 34.6% | |
| Short-Term Funds | 9.4% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2015 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 38.6% |
| Shares | | Value |
Domestic Equity Funds - 38.6% |
VIP Contrafund Portfolio Initial Class | 265,326 | | $ 5,107,531 |
VIP Equity-Income Portfolio Initial Class | 381,054 | | 5,944,444 |
VIP Growth & Income Portfolio Initial Class | 583,246 | | 5,943,278 |
VIP Growth Portfolio Initial Class | 208,606 | | 5,949,451 |
VIP Mid Cap Portfolio Initial Class | 82,477 | | 2,132,865 |
VIP Value Portfolio Initial Class | 563,130 | | 5,101,954 |
VIP Value Strategies Portfolio Initial Class | 280,552 | | 2,126,585 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $40,115,730) | 32,306,108 |
International Equity Funds - 12.4% |
| | | |
Developed International Equity Funds - 11.3% |
VIP Overseas Portfolio Initial Class | 728,914 | | 9,483,165 |
Emerging Markets Equity Funds - 1.1% |
VIP Emerging Markets Portfolio Initial Class | 116,715 | | 912,710 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $13,392,384) | 10,395,875 |
Bond Funds - 39.7% |
| | | |
High Yield Bond Funds - 5.1% |
VIP High Income Portfolio Initial Class | 785,240 | | 4,295,264 |
Investment Grade Bond Funds - 34.6% |
VIP Investment Grade Bond Portfolio Initial Class | 2,198,487 | | 28,932,092 |
TOTAL BOND FUNDS (Cost $31,990,867) | 33,227,356 |
Short-Term Funds - 9.3% |
| | | |
VIP Money Market Portfolio Initial Class
(Cost $7,751,146) | 7,751,146 | | 7,751,146 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $93,250,127) | | 83,680,485 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (8,769) |
NET ASSETS - 100% | $ 83,671,716 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2015 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $93,250,127) - See accompanying schedule | | $ 83,680,485 |
Receivable for investments sold | | 1,107 |
Receivable for fund shares sold | | 8,847 |
Receivable from investment adviser for expense reductions | | 13 |
Total assets | | 83,690,452 |
| | |
Liabilities | | |
Payable to custodian bank | $ 83 | |
Payable for investments purchased | 1,576 | |
Payable for fund shares redeemed | 7,145 | |
Distribution fees payable | 9,932 | |
Total liabilities | | 18,736 |
| | |
Net Assets | | $ 83,671,716 |
Net Assets consist of: | | |
Paid in capital | | $ 93,702,223 |
Accumulated net investment loss | | (14,913) |
Accumulated undistributed net realized gain (loss) on investments | | (445,952) |
Net unrealized appreciation (depreciation) on investments | | (9,569,642) |
Net Assets | | $ 83,671,716 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($35,840,316 ÷ 3,733,785 shares) | | $ 9.60 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($1,916,819 ÷ 199,854 shares) | | $ 9.59 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($45,914,581 ÷ 4,806,794 shares) | | $ 9.55 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 33,641 |
Interest | | 1 |
Total income | | 33,642 |
| | |
Expenses | | |
Distribution fees | $ 58,332 | |
Independent trustees' compensation | 143 | |
Total expenses before reductions | 58,475 | |
Expense reductions | (143) | 58,332 |
Net investment income (loss) | | (24,690) |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 97,657 | |
Capital gain distributions from underlying funds | 9,367 | 107,024 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (1,474,604) |
Net gain (loss) | | (1,367,580) |
Net increase (decrease) in net assets resulting from operations | | $ (1,392,270) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (24,690) | $ 2,636,979 |
Net realized gain (loss) | 107,024 | 778,497 |
Change in net unrealized appreciation (depreciation) | (1,474,604) | 11,395,277 |
Net increase (decrease) in net assets resulting from operations | (1,392,270) | 14,810,753 |
Distributions to shareholders from net investment income | - | (2,643,534) |
Distributions to shareholders from net realized gain | (294,722) | (904,007) |
Total distributions | (294,722) | (3,547,541) |
Share transactions - net increase (decrease) | 4,009,227 | 17,317,820 |
Total increase (decrease) in net assets | 2,322,235 | 28,581,032 |
| | |
Net Assets | | |
Beginning of period | 81,349,481 | 52,768,449 |
End of period (including accumulated net investment loss of $14,913 and undistributed net investment income of $9,777, respectively) | $ 83,671,716 | $ 81,349,481 |
Financial Highlights - Initial Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.78 | $ 8.19 | $ 12.29 | $ 11.93 | $ 10.95 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .38 | .33 | .37 | .27 | .11 |
Net realized and unrealized gain (loss) | (.14) | 1.67 | (3.61) | .73 | .94 | .90 |
Total from investment operations | (.14) | 2.05 | (3.28) | 1.10 | 1.21 | 1.01 |
Distributions from net investment income | - | (.34) | (.30) | (.36) | (.14) | (.06) |
Distributions from net realized gain | (.04) | (.12) | (.52) | (.38) | (.09) | - |
Total distributions | (.04) | (.46) | (.82)J | (.74) | (.23) | (.06) |
Net asset value, end of period | $ 9.60 | $ 9.78 | $ 8.19 | $ 12.29 | $ 11.93 | $ 10.95 |
Total ReturnB,C,D | (1.48)% | 25.28% | (27.03)% | 9.33% | 11.04% | 10.11% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of fee waivers, if any | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of all reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Net investment income (loss) | .08%A | 4.21% | 3.11% | 2.93% | 2.34% | 1.50%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 35,840 | $ 37,291 | $ 25,977 | $ 33,780 | $ 23,712 | $ 13,930 |
Portfolio turnover rate | 32%A | 23% | 27% | 18% | 24% | 38%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $.82 per share is comprised of distributions from net investment income of $.302 and distributions from net realized gain of $.515 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.77 | $ 8.19 | $ 12.29 | $ 11.93 | $ 10.95 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .37 | .31 | .35 | .26 | .10 |
Net realized and unrealized gain (loss) | (.14) | 1.66 | (3.60) | .74 | .94 | .90 |
Total from investment operations | (.14) | 2.03 | (3.29) | 1.09 | 1.20 | 1.00 |
Distributions from net investment income | - | (.33) | (.29) | (.35) | (.13) | (.05) |
Distributions from net realized gain | (.04) | (.12) | (.52) | (.38) | (.09) | - |
Total distributions | (.04) | (.45) | (.81)J | (.73) | (.22) | (.05) |
Net asset value, end of period | $ 9.59 | $ 9.77 | $ 8.19 | $ 12.29 | $ 11.93 | $ 10.95 |
Total ReturnB,C,D | (1.48)% | 25.06% | (27.10)% | 9.23% | 10.94% | 10.04% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of fee waivers, if any | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of all reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Net investment income (loss) | (.02)%A | 4.12% | 3.01% | 2.83% | 2.24% | 1.40%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,917 | $ 1,524 | $ 936 | $ 477 | $ 427 | $ 385 |
Portfolio turnover rate | 32%A | 23% | 27% | 18% | 24% | 38%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $.81 per share is comprised of distributions from net investment income of $.294 and distributions from net realized gain of $.515 per share. |
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.74 | $ 8.16 | $ 12.26 | $ 11.91 | $ 10.94 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | (.01) | .35 | .30 | .33 | .24 | .09 |
Net realized and unrealized gain (loss) | (.14) | 1.67 | (3.61) | .74 | .95 | .90 |
Total from investment operations | (.15) | 2.02 | (3.31) | 1.07 | 1.19 | .99 |
Distributions from net investment income | - | (.32) | (.28) | (.34) | (.13) | (.05) |
Distributions from net realized gain | (.04) | (.12) | (.52) | (.38) | (.09) | - |
Total distributions | (.04) | (.44) | (.79)I | (.72) | (.22) | (.05) |
Net asset value, end of period | $ 9.55 | $ 9.74 | $ 8.16 | $ 12.26 | $ 11.91 | $ 10.94 |
Total ReturnB,C,D | (1.59)% | 25.02% | (27.30)% | 9.07% | 10.84% | 9.90% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of fee waivers, if any | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of all reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Net investment income (loss) | (.17) %A | 3.97% | 2.86% | 2.68% | 2.09% | 1.25%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 45,915 | $ 42,534 | $ 25,855 | $ 24,497 | $ 9,984 | $ 653 |
Portfolio turnover rate | 32%A | 23% | 27% | 18% | 24% | 38%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Total distributions of $.79 per share is comprised of distributions from net investment income of $.279 and distributions from net realized gain of $.515 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2020 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 7.4 | 8.2 |
VIP Equity-Income Portfolio Initial Class | 8.6 | 9.4 |
VIP Growth & Income Portfolio Initial Class | 8.6 | 9.5 |
VIP Growth Portfolio Initial Class | 8.6 | 9.6 |
VIP Mid Cap Portfolio Initial Class | 3.1 | 3.4 |
VIP Value Portfolio Initial Class | 7.3 | 8.3 |
VIP Value Strategies Portfolio Initial Class | 3.0 | 3.5 |
| 46.6 | 51.9 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 13.7 | 12.6 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 1.3 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 6.9 | 7.2 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 28.5 | 26.4 |
Short-Term Funds | | |
VIP Money Market Portfolio Initial Class | 3.0 | 1.9 |
Net Other Assets | | |
Net Other Assets | 0.0* | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 46.6% | |
| Developed International Equity Funds | 13.7% | |
| Emerging Markets Equity Funds | 1.3% | |
| High Yield Bond Funds | 6.9% | |
| Investment Grade Bond Funds | 28.5% | |
| Short-Term Funds | 3.0% | |
Six months ago |
| Domestic Equity Funds | 51.9% | |
| Developed International Equity Funds | 12.6% | |
| Investment Grade Bond Funds | 26.4% | |
| High Yield Bond Funds | 7.2% | |
| Short-Term Funds | 1.9% | |
Expected |
| Domestic Equity Funds | 44.3% | |
| Developed International Equity Funds | 13.7% | |
| Emerging Markets Equity Funds | 2.4% | |
| High Yield Bond Funds | 6.6% | |
| Investment Grade Bond Funds | 29.3% | |
| Short-Term Funds | 3.7% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010 |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2020 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 46.6% |
| Shares | | Value |
Domestic Equity Funds - 46.6% |
VIP Contrafund Portfolio Initial Class | 1,087,705 | | $ 20,938,320 |
VIP Equity-Income Portfolio Initial Class | 1,562,267 | | 24,371,370 |
VIP Growth & Income Portfolio Initial Class | 2,391,226 | | 24,366,588 |
VIP Growth Portfolio Initial Class | 855,256 | | 24,391,895 |
VIP Mid Cap Portfolio Initial Class | 338,075 | | 8,742,619 |
VIP Value Portfolio Initial Class | 2,308,550 | | 20,915,463 |
VIP Value Strategies Portfolio Initial Class | 1,149,984 | | 8,716,880 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $163,721,717) | 132,443,135 |
International Equity Funds - 15.0% |
| | | |
Developed International Equity Funds - 13.7% |
VIP Overseas Portfolio Initial Class | 2,987,409 | | 38,866,191 |
Emerging Markets Equity Funds - 1.3% |
VIP Emerging Markets Portfolio Initial Class | 476,354 | | 3,725,090 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $54,871,643) | 42,591,281 |
Bond Funds - 35.4% |
| | | |
High Yield Bond Funds - 6.9% |
VIP High Income Portfolio Initial Class | 3,574,633 | | 19,553,244 |
Investment Grade Bond Funds - 28.5% |
VIP Investment Grade Bond Portfolio Initial Class | 6,147,127 | | 80,896,195 |
TOTAL BOND FUNDS (Cost $97,422,140) | 100,449,439 |
Short-Term Funds - 3.0% |
| | | |
VIP Money Market Portfolio Initial Class
(Cost $8,421,996) | 8,421,996 | | 8,421,996 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $324,437,496) | | 283,905,851 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (44,964) |
NET ASSETS - 100% | $ 283,860,887 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2020 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $324,437,496) - See accompanying schedule | | $ 283,905,851 |
Receivable for investments sold | | 188,404 |
Receivable for fund shares sold | | 227,644 |
Total assets | | 284,321,899 |
| | |
Liabilities | | |
Payable to custodian bank | $ 6,710 | |
Payable for investments purchased | 214,963 | |
Payable for fund shares redeemed | 191,011 | |
Distribution fees payable | 48,328 | |
Total liabilities | | 461,012 |
| | |
Net Assets | | $ 283,860,887 |
Net Assets consist of: | | |
Paid in capital | | $ 326,703,628 |
Accumulated net investment loss | | (183,582) |
Accumulated undistributed net realized gain (loss) on investments | | (2,127,514) |
Net unrealized appreciation (depreciation) on investments | | (40,531,645) |
Net Assets | | $ 283,860,887 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($38,369,814 ÷ 4,151,125 shares) | | $ 9.24 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($27,571,193 ÷ 2,988,513 shares) | | $ 9.23 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($217,919,880 ÷ 23,687,975 shares) | | $ 9.20 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 84,594 |
Interest | | 4 |
Total income | | 84,598 |
| | |
Expenses | | |
Distribution fees | $ 274,765 | |
Independent trustees' compensation | 459 | |
Total expenses before reductions | 275,224 | |
Expense reductions | (459) | 274,765 |
Net investment income (loss) | | (190,167) |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (186,654) | |
Capital gain distributions from underlying funds | 36,123 | (150,531) |
Change in net unrealized appreciation (depreciation) on underlying funds | | (8,397,617) |
Net gain (loss) | | (8,548,148) |
Net increase (decrease) in net assets resulting from operations | | $ (8,738,315) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (190,167) | $ 7,106,002 |
Net realized gain (loss) | (150,531) | 1,690,863 |
Change in net unrealized appreciation (depreciation) | (8,397,617) | 40,995,174 |
Net increase (decrease) in net assets resulting from operations | (8,738,315) | 49,792,039 |
Distributions to shareholders from net investment income | - | (7,104,782) |
Distributions to shareholders from net realized gain | (823,268) | (2,396,745) |
Total distributions | (823,268) | (9,501,527) |
Share transactions - net increase (decrease) | 39,464,814 | 55,723,199 |
Total increase (decrease) in net assets | 29,903,231 | 96,013,711 |
| | |
Net Assets | | |
Beginning of period | 253,957,656 | 157,943,945 |
End of period (including accumulated net investment loss of $183,582 and undistributed net investment income of $6,585, respectively) | $ 283,860,887 | $ 253,957,656 |
Financial Highlights - Initial Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.52 | $ 7.71 | $ 12.63 | $ 12.10 | $ 11.07 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .33 | .32 | .35 | .26 | .13 |
Net realized and unrealized gain (loss) | (.25) | 1.88 | (4.38) | .88 | 1.06 | 1.00 |
Total from investment operations | (.25) | 2.21 | (4.06) | 1.23 | 1.32 | 1.13 |
Distributions from net investment income | - | (.29) | (.28) | (.27) | (.18) | (.06) |
Distributions from net realized gain | (.03) | (.11) | (.59) | (.43) | (.11) | - |
Total distributions | (.03) | (.40)L | (.86)K | (.70)J | (.29) | (.06) |
Net asset value, end of period | $ 9.24 | $ 9.52 | $ 7.71 | $ 12.63 | $ 12.10 | $ 11.07 |
Total ReturnB,C,D | (2.63)% | 28.97% | (32.60)% | 10.23% | 11.95% | 11.34% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of fee waivers, if any | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of all reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Net investment income (loss) | .06%A | 3.93% | 3.07% | 2.76% | 2.21% | 1.80%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 38,370 | $ 38,330 | $ 33,089 | $ 31,465 | $ 21,356 | $ 16,085 |
Portfolio turnover rate | 24%A | 18% | 24% | 12% | 21% | 14%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $.70 per share is comprised of distributions from net investment income of $.273 and distributions from net realized gain of $.425 per share. K Total distributions of $.86 per share is comprised of distributions from net investment income of $.279 and distributions from net realized gain of $.585 per share. L Total distributions of $.40 per share is comprised of distributions from net investment income of $.293 and distributions from net realized gain of $.107 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2020 Portfolio
Financial Statements - continued
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.50 | $ 7.70 | $ 12.62 | $ 12.09 | $ 11.07 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .32 | .31 | .34 | .25 | .12 |
Net realized and unrealized gain (loss) | (.24) | 1.87 | (4.38) | .88 | 1.06 | 1.01 |
Total from investment operations | (.24) | 2.19 | (4.07) | 1.22 | 1.31 | 1.13 |
Distributions from net investment income | - | (.29) | (.27) | (.26) | (.18) | (.06) |
Distributions from net realized gain | (.03) | (.11) | (.59) | (.43) | (.11) | - |
Total distributions | (.03) | (.39)L | (.85)K | (.69)J | (.29) | (.06) |
Net asset value, end of period | $ 9.23 | $ 9.50 | $ 7.70 | $ 12.62 | $ 12.09 | $ 11.07 |
Total ReturnB,C,D | (2.53)% | 28.78% | (32.71)% | 10.17% | 11.81% | 11.30% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of fee waivers, if any | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of all reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Net investment income (loss) | (.04)%A | 3.83% | 2.97% | 2.66% | 2.11% | 1.70%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 27,571 | $ 25,941 | $ 18,325 | $ 19,881 | $ 6,555 | $ 1,586 |
Portfolio turnover rate | 24%A | 18% | 24% | 12% | 21% | 14%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $.69 per share is comprised of distributions from net investment income of $.264 and distributions from net realized gain of $.425 per share. K Total distributions of $.85 per share is comprised of distributions from net investment income of $.269 and distributions from net realized gain of $.585 per share. L Total distributions of $.39 per share is comprised of distributions from net investment income of $.285 and distributions from net realized gain of $.107 per share. |
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.48 | $ 7.69 | $ 12.60 | $ 12.08 | $ 11.06 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | (.01) | .31 | .30 | .32 | .23 | .11 |
Net realized and unrealized gain (loss) | (.24) | 1.86 | (4.37) | .87 | 1.07 | 1.01 |
Total from investment operations | (.25) | 2.17 | (4.07) | 1.19 | 1.30 | 1.12 |
Distributions from net investment income | - | (.28) | (.26) | (.25) | (.17) | (.06) |
Distributions from net realized gain | (.03) | (.11) | (.59) | (.43) | (.11) | - |
Total distributions | (.03) | (.38)K | (.84)J | (.67)I | (.28) | (.06) |
Net asset value, end of period | $ 9.20 | $ 9.48 | $ 7.69 | $ 12.60 | $ 12.08 | $ 11.06 |
Total ReturnB,C,D | (2.64)% | 28.55% | (32.80)% | 9.97% | 11.70% | 11.17% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of fee waivers, if any | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of all reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Net investment income (loss) | (.19)%A | 3.68% | 2.82% | 2.51% | 1.96% | 1.55%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 217,920 | $ 189,686 | $ 106,530 | $ 119,395 | $ 56,810 | $ 16,414 |
Portfolio turnover rate | 24%A | 18% | 24% | 12% | 21% | 14%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005 H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Total distributions of $.67 per share is comprised of distributions from net investment income of $.249 and distributions from net realized gain of $.425 per share. J Total distributions of $.84 per share is comprised of distributions from net investment income of $.255 and distributions from net realized gain of $.585 per share. K Total distributions of $.38 per share is comprised of distributions from net investment income of $.275 and distributions from net realized gain of $.107 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2025 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 8.4 | 9.0 |
VIP Equity-Income Portfolio Initial Class | 9.7 | 10.2 |
VIP Growth & Income Portfolio Initial Class | 9.7 | 10.4 |
VIP Growth Portfolio Initial Class | 9.7 | 10.5 |
VIP Mid Cap Portfolio Initial Class | 3.5 | 3.7 |
VIP Value Portfolio Initial Class | 8.3 | 9.1 |
VIP Value Strategies Portfolio Initial Class | 3.5 | 3.8 |
| 52.8 | 56.7 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 15.5 | 13.8 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 1.5 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 7.5 | 7.6 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 22.7 | 21.9 |
Net Other Assets | | |
Net Other Assets | 0.0* | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 52.8% | |
| Developed International Equity Funds | 15.5% | |
| Emerging Markets Equity Funds | 1.5% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade Bond Funds | 22.7% | |
Six months ago |
| Domestic Equity Funds | 56.7% | |
| Developed International Equity Funds | 13.8% | |
| Investment Grade Bond Funds | 21.9% | |
| High Yield Bond Funds | 7.6% | |
Expected |
| Domestic Equity Funds | 50.9% | |
| Developed International Equity Funds | 15.8% | |
| Emerging Markets Equity Funds | 2.8% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade Bond Funds | 22.9% | |
| Short-Term Funds | 0.1% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010 |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2025 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 52.8% |
| Shares | | Value |
Domestic Equity Funds - 52.8% |
VIP Contrafund Portfolio Initial Class | 111,587 | | $ 2,148,049 |
VIP Equity-Income Portfolio Initial Class | 160,273 | | 2,500,264 |
VIP Growth & Income Portfolio Initial Class | 245,316 | | 2,499,773 |
VIP Growth Portfolio Initial Class | 87,741 | | 2,502,370 |
VIP Mid Cap Portfolio Initial Class | 34,732 | | 898,172 |
VIP Value Portfolio Initial Class | 236,833 | | 2,145,703 |
VIP Value Strategies Portfolio Initial Class | 118,143 | | 895,527 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $17,311,702) | 13,589,858 |
International Equity Funds - 17.0% |
| | | |
Developed International Equity Funds - 15.5% |
VIP Overseas Portfolio Initial Class | 306,533 | | 3,988,001 |
Emerging Markets Equity Funds - 1.5% |
VIP Emerging Markets Portfolio Initial Class | 49,142 | | 384,292 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $5,719,807) | 4,372,293 |
Bond Funds - 30.2% |
| | | |
High Yield Bond Funds - 7.5% |
VIP High Income Portfolio Initial Class | 354,987 | | 1,941,777 |
Investment Grade Bond Funds - 22.7% |
VIP Investment Grade Bond Portfolio Initial Class | 442,851 | | 5,827,918 |
TOTAL BOND FUNDS (Cost $7,642,199) | 7,769,695 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $30,673,708) | | 25,731,846 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (2,209) |
NET ASSETS - 100% | $ 25,729,637 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2025 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $30,673,708) - See accompanying schedule | | $ 25,731,846 |
Receivable for investments sold | | 5,483 |
Receivable for fund shares sold | | 5,541 |
Total assets | | 25,742,870 |
| | |
Liabilities | | |
Payable to custodian bank | $ 6,210 | |
Payable for fund shares redeemed | 4,713 | |
Distribution fees payable | 2,310 | |
Total liabilities | | 13,233 |
| | |
Net Assets | | $ 25,729,637 |
Net Assets consist of: | | |
Paid in capital | | $ 30,949,494 |
Accumulated net investment loss | | (3,473) |
Accumulated undistributed net realized gain (loss) on investments | | (274,522) |
Net unrealized appreciation (depreciation) on investments | | (4,941,862) |
Net Assets | | $ 25,729,637 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($14,268,538 ÷ 1,590,977 shares) | | $ 8.97 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($1,044,467 ÷ 116,540 shares) | | $ 8.96 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($10,416,632 ÷ 1,166,733 shares) | | $ 8.93 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 6,594 |
| | |
Expenses | | |
Distribution fees | $ 12,389 | |
Independent trustees' compensation | 43 | |
Total expenses before reductions | 12,432 | |
Expense reductions | (43) | 12,389 |
Net investment income (loss) | | (5,795) |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (9,461) | |
Capital gain distributions from underlying funds | 3,693 | (5,768) |
Change in net unrealized appreciation (depreciation) on underlying funds | | (1,002,617) |
Net gain (loss) | | (1,008,385) |
Net increase (decrease) in net assets resulting from operations | | $ (1,014,180) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (5,795) | $ 674,709 |
Net realized gain (loss) | (5,768) | 143,781 |
Change in net unrealized appreciation (depreciation) | (1,002,617) | 4,000,337 |
Net increase (decrease) in net assets resulting from operations | (1,014,180) | 4,818,827 |
Distributions to shareholders from net investment income | - | (691,955) |
Distributions to shareholders from net realized gain | (39,271) | (250,694) |
Total distributions | (39,271) | (942,649) |
Share transactions - net increase (decrease) | 2,954,004 | 4,858,814 |
Total increase (decrease) in net assets | 1,900,553 | 8,734,992 |
| | |
Net Assets | | |
Beginning of period | 23,829,084 | 15,094,092 |
End of period (including accumulated net investment loss of $3,473 and undistributed net investment income of $2,322, respectively) | $ 25,729,637 | $ 23,829,084 |
Financial Highlights - Initial Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.30 | $ 7.49 | $ 12.71 | $ 12.18 | $ 11.16 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .32 | .31 | .38 | .23 | .11 |
Net realized and unrealized gain (loss) | (.31) | 1.89 | (4.58) | .89 | 1.17 | 1.12 |
Total from investment operations | (.31) | 2.21 | (4.27) | 1.27 | 1.40 | 1.23 |
Distributions from net investment income | - | (.29) | (.28) | (.27) | (.21) | (.07) |
Distributions from net realized gain | (.02) | (.12) | (.67) | (.47) | (.17) | - |
Total distributions | (.02) | (.40)J | (.95) | (.74) | (.38) | (.07) |
Net asset value, end of period | $ 8.97 | $ 9.30 | $ 7.49 | $ 12.71 | $ 12.18 | $ 11.16 |
Total ReturnB,C,D | (3.39)% | 30.05% | (34.16)% | 10.50% | 12.49% | 12.25% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of fee waivers, if any | .00%A | .00% | .00% | .00% | .00% | .00%A |
Expenses net of all reductions | .00%A | .00% | .00% | .00% | .00% | .00%A |
Net investment income (loss) | .05%A | 3.84% | 2.90% | 2.95% | 1.95% | 1.44%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 14,269 | $ 14,888 | $ 11,015 | $ 15,197 | $ 8,363 | $ 4,825 |
Portfolio turnover rate | 32%A | 30% | 36% | 20% | 49% | 9%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $.40 per share is comprised of distributions from net investment income of $.285 and distributions from net realized gain of $.117 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.30 | $ 7.49 | $ 12.70 | $ 12.18 | $ 11.16 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | -I | .31 | .29 | .37 | .22 | .10 |
Net realized and unrealized gain (loss) | (.32) | 1.90 | (4.56) | .87 | 1.16 | 1.12 |
Total from investment operations | (.32) | 2.21 | (4.27) | 1.24 | 1.38 | 1.22 |
Distributions from net investment income | - | (.28) | (.27) | (.25) | (.19) | (.06) |
Distributions from net realized gain | (.02) | (.12) | (.67) | (.47) | (.17) | - |
Total distributions | (.02) | (.40)J | (.94) | (.72) | (.36) | (.06) |
Net asset value, end of period | $ 8.96 | $ 9.30 | $ 7.49 | $ 12.70 | $ 12.18 | $ 11.16 |
Total ReturnB,C,D | (3.50)% | 29.96% | (34.20)% | 10.31% | 12.39% | 12.18% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of fee waivers, if any | .10%A | .10% | .10% | .10% | .10% | .10%A |
Expenses net of all reductions | .10%A | .10% | .10% | .10% | .10% | .10%A |
Net investment income (loss) | (.05)%A | 3.74% | 2.80% | 2.85% | 1.85% | 1.34%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 1,044 | $ 679 | $ 403 | $ 497 | $ 441 | $ 393 |
Portfolio turnover rate | 32%A | 30% | 36% | 20% | 49% | 9%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $.40 per share is comprised of distributions from net investment income of $.278 and distributions from net realized gain of $.117 per share. |
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.27 | $ 7.47 | $ 12.68 | $ 12.17 | $ 11.16 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | (.01) | .30 | .28 | .35 | .20 | .09 |
Net realized and unrealized gain (loss) | (.31) | 1.89 | (4.57) | .89 | 1.16 | 1.12 |
Total from investment operations | (.32) | 2.19 | (4.29) | 1.24 | 1.36 | 1.21 |
Distributions from net investment income | - | (.27) | (.25) | (.26) | (.18) | (.05) |
Distributions from net realized gain | (.02) | (.12) | (.67) | (.47) | (.17) | - |
Total distributions | (.02) | (.39)I | (.92) | (.73) | (.35) | (.05) |
Net asset value, end of period | $ 8.93 | $ 9.27 | $ 7.47 | $ 12.68 | $ 12.17 | $ 11.16 |
Total ReturnB,C,D | (3.51)% | 29.79% | (34.36)% | 10.26% | 12.18% | 12.07% |
Ratios to Average Net AssetsF,H | | | | | | |
Expenses before reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of fee waivers, if any | .25%A | .25% | .25% | .25% | .25% | .25%A |
Expenses net of all reductions | .25%A | .25% | .25% | .25% | .25% | .25%A |
Net investment income (loss) | (.20)%A | 3.59% | 2.65% | 2.70% | 1.70% | 1.19%A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 10,417 | $ 8,262 | $ 3,676 | $ 3,998 | $ 556 | $ 392 |
Portfolio turnover rate | 32%A | 30% | 36% | 20% | 49% | 9%A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Total distributions of $.39 per share is comprised of distributions from net investment income of $.270 and distributions from net realized gain of $.117 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2030 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 9.0 | 10.0 |
VIP Equity-Income Portfolio Initial Class | 10.5 | 11.4 |
VIP Growth & Income Portfolio Initial Class | 10.5 | 11.5 |
VIP Growth Portfolio Initial Class | 10.5 | 11.7 |
VIP Mid Cap Portfolio Initial Class | 3.8 | 4.1 |
VIP Value Portfolio Initial Class | 9.0 | 10.0 |
VIP Value Strategies Portfolio Initial Class | 3.7 | 4.2 |
| 57.0 | 62.9 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 16.7 | 15.3 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 1.6 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 7.5 | 7.6 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 17.2 | 14.2 |
Net Other Assets | | |
Net Other Assets | 0.0 * | 0.0 * |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 57.0% | |
| Developed International Equity Funds | 16.7% | |
| Emerging Markets Equity Funds | 1.6% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade
Bond Funds | 17.2% | |
Six months ago |
| Domestic Equity Funds | 62.9% | |
| Developed International Equity Funds | 15.3% | |
| Investment Grade
Bond Funds | 14.2% | |
| High Yield Bond Funds | 7.6% | |
Expected |
| Domestic Equity Funds | 54.3% | |
| Developed International Equity Funds | 16.8% | |
| Emerging Markets Equity Funds | 3.0% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade
Bond Funds | 18.4% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2030 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 57.0% |
| Shares | | Value |
Domestic Equity Funds - 57.0% |
VIP Contrafund Portfolio Initial Class | 361,148 | | $ 6,952,103 |
VIP Equity-Income Portfolio Initial Class | 518,284 | | 8,085,228 |
VIP Growth & Income Portfolio Initial Class | 793,291 | | 8,083,635 |
VIP Growth Portfolio Initial Class | 283,733 | | 8,092,066 |
VIP Mid Cap Portfolio Initial Class | 112,231 | | 2,902,302 |
VIP Value Portfolio Initial Class | 766,499 | | 6,944,481 |
VIP Value Strategies Portfolio Initial Class | 381,757 | | 2,893,721 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $56,904,115) | 43,953,536 |
International Equity Funds - 18.3% |
| | | |
Developed International Equity Funds - 16.7% |
VIP Overseas Portfolio Initial Class | 991,323 | | 12,897,116 |
Emerging Markets Equity Funds - 1.6% |
VIP Emerging Markets Portfolio Initial Class | 158,309 | | 1,237,978 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $18,892,715) | 14,135,094 |
Bond Funds - 24.7% |
| | | |
High Yield Bond Funds - 7.5% |
VIP High Income Portfolio Initial Class | 1,064,968 | | 5,825,376 |
Investment Grade Bond Funds - 17.2% |
VIP Investment Grade Bond Portfolio Initial Class | 1,006,309 | | 13,243,023 |
TOTAL BOND FUNDS (Cost $18,895,445) | 19,068,399 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $94,692,275) | 77,157,029 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (6,954) |
NET ASSETS - 100% | $ 77,150,075 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2030 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $94,692,275) - See accompanying schedule | | $ 77,157,029 |
Cash | | 100 |
Receivable for investments sold | | 319,483 |
Receivable for fund shares sold | | 20,843 |
Total assets | | 77,497,455 |
| | |
Liabilities | | |
Payable for fund shares redeemed | $ 337,851 | |
Distribution fees payable | 9,529 | |
Total liabilities | | 347,380 |
| | |
Net Assets | | $ 77,150,075 |
Net Assets consist of: | | |
Paid in capital | | $ 95,810,540 |
Accumulated net investment loss | | (36,753) |
Accumulated undistributed net realized gain (loss) on investments | | (1,088,466) |
Net unrealized appreciation (depreciation) on investments | | (17,535,246) |
Net Assets | | $ 77,150,075 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($22,729,335 ÷ 2,635,434 shares) | | $ 8.62 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($17,040,537 ÷ 1,978,471 shares) | | $ 8.61 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($37,380,203 ÷ 4,351,415 shares) | | $ 8.59 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 17,685 |
Interest | | 1 |
Total income | | 17,686 |
| | |
Expenses | | |
Distribution fees | $ 55,757 | |
Independent trustees' compensation | 133 | |
Total expenses before reductions | 55,890 | |
Expense reductions | (133) | 55,757 |
Net investment income (loss) | | (38,071) |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (15,016) | |
Capital gain distributions from underlying funds | 12,832 | (2,184) |
Change in net unrealized appreciation (depreciation) on underlying funds | | (3,638,979) |
Net gain (loss) | | (3,641,163) |
Net increase (decrease) in net assets resulting from operations | | $ (3,679,234) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010 (Unaudited) | Year ended December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (38,071) | $ 1,666,252 |
Net realized gain (loss) | (2,184) | 36,942 |
Change in net unrealized appreciation (depreciation) | (3,638,979) | 13,789,670 |
Net increase (decrease) in net assets resulting from operations | (3,679,234) | 15,492,864 |
Distributions to shareholders from net investment income | - | (1,389,018) |
Distributions to shareholders from net realized gain | (210,935) | (719,544) |
Total distributions | (210,935) | (2,108,562) |
Share transactions - net increase (decrease) | 6,232,965 | 12,259,496 |
Total increase (decrease) in net assets | 2,342,796 | 25,643,798 |
| | |
Net Assets | | |
Beginning of period | 74,807,279 | 49,163,481 |
End of period (including accumulated net investment loss of $36,753 and undistributed net investment income of $1,318, respectively) | $ 77,150,075 | $ 74,807,279 |
Financial Highlights - Initial Class
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.03 | $ 7.12 | $ 13.02 | $ 12.44 | $ 11.27 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .24 | .28 | .34 | .24 | .13 |
Net realized and unrealized gain (loss) | (.38) | 1.96 | (5.14) | 1.06 | 1.25 | 1.21 |
Total from investment operations | (.38) | 2.20 | (4.86) | 1.40 | 1.49 | 1.34 |
Distributions from net investment income | - | (.18) | (.25) | (.28) | (.19) | (.07) |
Distributions from net realized gain | (.03) | (.11) | (.80) | (.54) | (.13) | - |
Total distributions | (.03) | (.29) | (1.04) J | (.82) | (.32) | (.07) |
Net asset value, end of period | $ 8.62 | $ 9.03 | $ 7.12 | $ 13.02 | $ 12.44 | $ 11.27 |
Total Return B, C, D | (4.27)% | 31.66% | (38.04)% | 11.37% | 13.20% | 13.35% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .04% A | 3.13% | 2.69% | 2.56% | 2.05% | 1.71% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 22,729 | $ 23,836 | $ 19,592 | $ 23,767 | $ 14,298 | $ 8,262 |
Portfolio turnover rate | 30% A | 24% | 23% | 17% | 32% | 33% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $1.04 per share is comprised of distributions from net investment income of $.245 and distributions from net realized gain of $.795 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2030 Portfolio
Financial Statements - continued
Financial Highlights - Service Class
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.02 | $ 7.12 | $ 13.01 | $ 12.44 | $ 11.27 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .24 | .27 | .33 | .23 | .12 |
Net realized and unrealized gain (loss) | (.38) | 1.94 | (5.13) | 1.05 | 1.25 | 1.21 |
Total from investment operations | (.38) | 2.18 | (4.86) | 1.38 | 1.48 | 1.33 |
Distributions from net investment income | - | (.17) | (.24) | (.27) | (.18) | (.06) |
Distributions from net realized gain | (.03) | (.11) | (.80) | (.54) | (.13) | - |
Total distributions | (.03) | (.28) | (1.03) J | (.81) | (.31) | (.06) |
Net asset value, end of period | $ 8.61 | $ 9.02 | $ 7.12 | $ 13.01 | $ 12.44 | $ 11.27 |
Total Return B, C, D | (4.27)% | 31.40% | (38.08)% | 11.21% | 13.15% | 13.30% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | .10% A | .10% | .10% | .10% | .10% | .10% A |
Expenses net of fee waivers, if any | .10% A | .10% | .10% | .10% | .10% | .10% A |
Expenses net of all reductions | .10% A | .10% | .10% | .10% | .10% | .10% A |
Net investment income (loss) | (.06)% A | 3.03% | 2.59% | 2.46% | 1.95% | 1.62% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 17,041 | $ 16,162 | $ 10,298 | $ 12,884 | $ 3,867 | $ 958 |
Portfolio turnover rate | 30% A | 24% | 23% | 17% | 32% | 33% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $1.03 per share is comprised of distributions from net investment income of $.235 and distributions from net realized gain of $.795 per share. |
Financial Highlights - Service Class 2
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.00 | $ 7.11 | $ 12.99 | $ 12.42 | $ 11.26 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | (.01) | .23 | .26 | .31 | .21 | .11 |
Net realized and unrealized gain (loss) | (.37) | 1.93 | (5.12) | 1.05 | 1.25 | 1.21 |
Total from investment operations | (.38) | 2.16 | (4.86) | 1.36 | 1.46 | 1.32 |
Distributions from net investment income | - | (.16) | (.22) | (.25) | (.17) | (.06) |
Distributions from net realized gain | (.03) | (.11) | (.80) | (.54) | (.13) | - |
Total distributions | (.03) | (.27) | (1.02) I | (.79) | (.30) | (.06) |
Net asset value, end of period | $ 8.59 | $ 9.00 | $ 7.11 | $ 12.99 | $ 12.42 | $ 11.26 |
Total Return B, C, D | (4.28)% | 31.18% | (38.17)% | 11.08% | 12.92% | 13.16% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% | .25% | .25% | .25% | .25% A |
Expenses net of all reductions | .25% A | .25% | .25% | .25% | .25% | .25% A |
Net investment income (loss) | (.21)% A | 2.88% | 2.44% | 2.31% | 1.80% | 1.47% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 37,380 | $ 34,809 | $ 19,273 | $ 24,148 | $ 15,774 | $ 7,396 |
Portfolio turnover rate | 30% A | 24% | 23% | 17% | 32% | 33% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period April 26, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. I Total distributions of $1.02 per share is comprised of distributions from net investment income of $.221 and distributions from net realized gain of $.795 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2035 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 9.8 | 10.5 |
VIP Equity-Income Portfolio Initial Class | 11.5 | 12.0 |
VIP Growth & Income Portfolio Initial Class | 11.5 | 12.2 |
VIP Growth Portfolio Initial Class | 11.5 | 12.4 |
VIP Mid Cap Portfolio Initial Class | 4.1 | 4.3 |
VIP Value Portfolio Initial Class | 9.8 | 10.7 |
VIP Value Strategies Portfolio Initial Class | 4.1 | 4.5 |
| 62.3 | 66.6 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 18.3 | 16.2 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 1.7 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 7.6 | 7.5 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 10.1 | 9.7 |
Net Other Assets | | |
Net Other Assets | 0.0* | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 62.3% | |
| Developed International Equity Funds | 18.3% | |
| Emerging Markets Equity Funds | 1.7% | |
| High Yield Bond Funds | 7.6% | |
| Investment Grade
Bond Funds | 10.1% | |
Six months ago |
| Domestic Equity Funds | 66.6% | |
| Developed International Equity Funds | 16.2% | |
| Investment Grade
Bond Funds | 9.7% | |
| High Yield Bond Funds | 7.5% | |
Expected |
| Domestic Equity Funds | 60.4% | |
| Developed International Equity Funds | 18.7% | |
| Emerging Markets Equity Funds | 3.3% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade
Bond Funds | 10.1% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2035 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 62.3% |
| Shares | | Value |
Domestic Equity Funds - 62.3% |
VIP Contrafund Portfolio Initial Class | 1,869 | | $ 35,975 |
VIP Equity-Income Portfolio Initial Class | 2,683 | | 41,848 |
VIP Growth & Income Portfolio Initial Class | 4,106 | | 41,840 |
VIP Growth Portfolio Initial Class | 1,469 | | 41,883 |
VIP Mid Cap Portfolio Initial Class | 581 | | 15,016 |
VIP Value Portfolio Initial Class | 3,966 | | 35,936 |
VIP Value Strategies Portfolio Initial Class | 1,975 | | 14,972 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $170,827) | 227,470 |
International Equity Funds - 20.0% |
| | | |
Developed International Equity Funds - 18.3% |
VIP Overseas Portfolio Initial Class | 5,131 | | 66,757 |
Emerging Markets Equity Funds - 1.7% |
VIP Emerging Markets Portfolio Initial Class | 820 | | 6,410 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $63,196) | 73,167 |
Bond Funds - 17.7% |
| | | |
High Yield Bond Funds - 7.6% |
VIP High Income Portfolio Initial Class | 5,042 | | 27,578 |
Investment Grade Bond Funds - 10.1% |
VIP Investment Grade Bond Portfolio Initial Class | 2,800 | | 36,845 |
TOTAL BOND FUNDS (Cost $53,769) | 64,423 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $287,792) | | 365,060 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (38) |
NET ASSETS - 100% | $ 365,022 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2035 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $287,792) - See accompanying schedule | | $ 365,060 |
Cash | | 1 |
Total assets | | 365,061 |
| | |
Liabilities | | |
Distribution fees payable | $ 39 | |
Total liabilities | | 39 |
| | |
Net Assets | | $ 365,022 |
Net Assets consist of: | | |
Paid in capital | | $ 276,371 |
Accumulated net investment loss | | (164) |
Accumulated undistributed net realized gain (loss) on investments | | 11,547 |
Net unrealized appreciation (depreciation) on investments | | 77,268 |
Net Assets | | $ 365,022 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($123,861 ÷ 9,580 shares) | | $ 12.93 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($119,507 ÷ 9,248 shares) | | $ 12.92 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($121,654 ÷ 9,423 shares) | | $ 12.91 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 84 |
| | |
Expenses | | |
Distribution fees | $ 250 | |
Total expenses | | 250 |
Net investment income (loss) | | (166) |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 11,547 | |
Capital gain distributions from underlying funds | 76 | 11,623 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (31,738) |
Net gain (loss) | | (20,115) |
Net increase (decrease) in net assets resulting from operations | | $ (20,281) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010 (Unaudited) | For the period
April 8, 2009
(commencement of operations) to
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (166) | $ 7,374 |
Net realized gain (loss) | 11,623 | 4,237 |
Change in net unrealized appreciation (depreciation) | (31,738) | 109,006 |
Net increase (decrease) in net assets resulting from operations | (20,281) | 120,617 |
Distributions to shareholders from net investment income | - | (7,372) |
Distributions to shareholders from net realized gain | (3,885) | (427) |
Total distributions | (3,885) | (7,799) |
Share transactions - net increase (decrease) | (37,451) | 313,821 |
Total increase (decrease) in net assets | (61,617) | 426,639 |
| | |
Net Assets | | |
Beginning of period | 426,639 | - |
End of period (including accumulated net investment loss of $164 and undistributed net investment income of $2, respectively) | $ 365,022 | $ 426,639 |
Financial Highlights - Initial Class
| Six months ended
June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.74 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | - H | .25 |
Net realized and unrealized gain (loss) | (.68) | 3.76 |
Total from investment operations | (.68) | 4.01 |
Distributions from net investment income | - | (.25) |
Distributions from net realized gain | (.13) | (.01) |
Total distributions | (.13) | (.27) I |
Net asset value, end of period | $ 12.93 | $ 13.74 |
Total Return B, C | (5.00)% | 40.04% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .00% A | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% A |
Expenses net of all reductions | .00% A | .00% A |
Net investment income (loss) | .04% A | 2.78% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 124 | $ 144 |
Portfolio turnover rate | 16% A | 5% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. H Amount represents less than $.01 per share. I Total distributions of $.27 per share is comprised of distributions from net investment income of $.252 and distributions from net realized gain of $.014 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.73 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | - H | .24 |
Net realized and unrealized gain (loss) | (.68) | 3.75 |
Total from investment operations | (.68) | 3.99 |
Distributions from net investment income | - | (.24) |
Distributions from net realized gain | (.13) | (.01) |
Total distributions | (.13) | (.26) I |
Net asset value, end of period | $ 12.92 | $ 13.73 |
Total Return B, C | (5.01)% | 39.85% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .10% A | .10% A |
Expenses net of fee waivers, if any | .10% A | .10% A |
Expenses net of all reductions | .10% A | .10% A |
Net investment income (loss) | (.06)% A | 2.68% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 120 | $ 140 |
Portfolio turnover rate | 16% A | 5% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. H Amount represents less than $.01 per share. I Total distributions of $.26 per share is comprised of distributions from net investment income of $.243 and distributions from net realized gain of $.014 per share. |
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.73 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | (.01) | .23 |
Net realized and unrealized gain (loss) | (.68) | 3.74 |
Total from investment operations | (.69) | 3.97 |
Distributions from net investment income | - | (.23) |
Distributions from net realized gain | (.13) | (.01) |
Total distributions | (.13) | (.24) H |
Net asset value, end of period | $ 12.91 | $ 13.73 |
Total Return B, C | (5.08)% | 39.72% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .25% A | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% A |
Expenses net of all reductions | .25% A | .25% A |
Net investment income (loss) | (.21)% A | 2.53% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 122 | $ 143 |
Portfolio turnover rate | 16% A | 5% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. H Total distributions of $.24 per share is comprised of distributions from net investment income of $.230 and distributions from net realized gain of $.014 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2040 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 10.0 | 10.7 |
VIP Equity-Income Portfolio Initial Class | 11.6 | 12.3 |
VIP Growth & Income Portfolio Initial Class | 11.6 | 12.4 |
VIP Growth Portfolio Initial Class | 11.6 | 12.6 |
VIP Mid Cap Portfolio Initial Class | 4.2 | 4.4 |
VIP Value Portfolio Initial Class | 10.0 | 10.8 |
VIP Value Strategies Portfolio Initial Class | 4.2 | 4.6 |
| 63.2 | 67.8 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 18.5 | 16.4 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 1.8 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 8.8 | 9.2 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 7.7 | 6.6 |
Net Other Assets | | |
Net Other Assets | 0.0* | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 63.2% | |
| Developed International Equity Funds | 18.5% | |
| Emerging Markets Equity Funds | 1.8% | |
| High Yield Bond Funds | 8.8% | |
| Investment Grade
Bond Funds | 7.7% | |
Six months ago |
| Domestic Equity Funds | 67.8% | |
| Developed International Equity Funds | 16.4% | |
| Investment Grade
Bond Funds | 6.6% | |
| High Yield Bond Funds | 9.2% | |
Expected |
| Domestic Equity Funds | 61.1% | |
| Developed International Equity Funds | 18.9% | |
| Emerging Markets Equity Funds | 3.4% | |
| High Yield Bond Funds | 8.4% | |
| Investment Grade
Bond Funds | 8.2% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2040 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 63.2% |
| Shares | | Value |
Domestic Equity Funds - 63.2% |
VIP Contrafund Portfolio Initial Class | 5,436 | | $ 104,650 |
VIP Equity-Income Portfolio Initial Class | 7,808 | | 121,805 |
VIP Growth & Income Portfolio Initial Class | 11,951 | | 121,782 |
VIP Growth Portfolio Initial Class | 4,274 | | 121,908 |
VIP Mid Cap Portfolio Initial Class | 1,690 | | 43,697 |
VIP Value Portfolio Initial Class | 11,538 | | 104,536 |
VIP Value Strategies Portfolio Initial Class | 5,748 | | 43,569 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $638,441) | 661,947 |
International Equity Funds - 20.3% |
| | | |
Developed International Equity Funds - 18.5% |
VIP Overseas Portfolio Initial Class | 14,927 | | 194,196 |
Emerging Markets Equity Funds - 1.8% |
VIP Emerging Markets Portfolio Initial Class | 2,392 | | 18,702 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $211,940) | 212,898 |
Bond Funds - 16.5% |
| | | |
High Yield Bond Funds - 8.8% |
VIP High Income Portfolio Initial Class | 16,717 | | 91,441 |
Investment Grade Bond Funds - 7.7% |
VIP Investment Grade Bond Portfolio Initial Class | 6,131 | | 80,684 |
TOTAL BOND FUNDS (Cost $160,141) | 172,125 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $1,010,522) | | 1,046,970 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (39) |
NET ASSETS - 100% | $ 1,046,931 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2040 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $1,010,522) - See accompanying schedule | | $ 1,046,970 |
Cash | | 1 |
Receivable for fund shares sold | | 33 |
Total assets | | 1,047,004 |
| | |
Liabilities | | |
Payable for investments purchased | $ 32 | |
Payable for fund shares redeemed | 2 | |
Distribution fees payable | 39 | |
Total liabilities | | 73 |
| | |
Net Assets | | $ 1,046,931 |
Net Assets consist of: | | |
Paid in capital | | $ 1,002,678 |
Accumulated net investment loss | | (171) |
Accumulated undistributed net realized gain (loss) on investments | | 7,976 |
Net unrealized appreciation (depreciation) on investments | | 36,448 |
Net Assets | | $ 1,046,931 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($807,064 ÷ 62,200 shares) | | $ 12.98 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($120,042 ÷ 9,257 shares) | | $ 12.97 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($119,825 ÷ 9,249 shares) | | $ 12.96 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 76 |
| | |
Expenses | | |
Distribution fees | $ 249 | |
Total expenses | | 249 |
Net investment income (loss) | | (173) |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 7,957 | |
Capital gain distributions from underlying funds | 78 | 8,035 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (74,783) |
Net gain (loss) | | (66,748) |
Net increase (decrease) in net assets resulting from operations | | $ (66,921) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010 (Unaudited) | For the period
April 8, 2009 (commencement
of operations) to December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (173) | $ 7,469 |
Net realized gain (loss) | 8,035 | 4,686 |
Change in net unrealized appreciation (depreciation) | (74,783) | 111,231 |
Net increase (decrease) in net assets resulting from operations | (66,921) | 123,386 |
Distributions to shareholders from net investment income | - | (7,467) |
Distributions to shareholders from net realized gain | (4,324) | (424) |
Total distributions | (4,324) | (7,891) |
Share transactions - net increase (decrease) | 691,634 | 311,047 |
Total increase (decrease) in net assets | 620,389 | 426,542 |
| | |
Net Assets | | |
Beginning of period | 426,542 | - |
End of period (including accumulated net investment loss of $171 and undistributed net investment income of $2, respectively) | $ 1,046,931 | $ 426,542 |
Financial Highlights - Initial Class
| Six months ended
June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.82 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | - H | .26 |
Net realized and unrealized gain (loss) | (.70) | 3.83 |
Total from investment operations | (.70) | 4.09 |
Distributions from net investment income | - | (.26) |
Distributions from net realized gain | (.14) | (.01) |
Total distributions | (.14) | (.27) I |
Net asset value, end of period | $ 12.98 | $ 13.82 |
Total Return B, C | (5.08)% | 40.89% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .00% A | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% A |
Expenses net of all reductions | .00% A | .00% A |
Net investment income (loss) | .03% A | 2.81% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 807 | $ 145 |
Portfolio turnover rate | 45% A | 5% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. H Amount represents less than $.01 per share. I Total distributions of $.27 per share is comprised of distributions from net investment income of $.257 and distributions from net realized gain of $.014 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2040 Portfolio
Financial Statements - continued
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.82 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | - H | .25 |
Net realized and unrealized gain (loss) | (.71) | 3.83 |
Total from investment operations | (.71) | 4.08 |
Distributions from net investment income | - | (.25) |
Distributions from net realized gain | (.14) | (.01) |
Total distributions | (.14) | (.26) I |
Net asset value, end of period | $ 12.97 | $ 13.82 |
Total Return B, C | (5.16)% | 40.80% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .10% A | .10% A |
Expenses net of fee waivers, if any | .10% A | .10% A |
Expenses net of all reductions | .10% A | .10% A |
Net investment income (loss) | (.07)% A | 2.71% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 120 | $ 141 |
Portfolio turnover rate | 45% A | 5% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. H Amount represents less than $.01 per share. I Total distributions of $.26 per share is comprised of distributions from net investment income of $.248 and distributions from net realized gain of $.014 per share. |
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.82 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | (.02) | .23 |
Net realized and unrealized gain (loss) | (.70) | 3.84 |
Total from investment operations | (.72) | 4.07 |
Distributions from net investment income | - | (.23) |
Distributions from net realized gain | (.14) | (.01) |
Total distributions | (.14) | (.25) H |
Net asset value, end of period | $ 12.96 | $ 13.82 |
Total Return B, C | (5.23)% | 40.66% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .25% A | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% A |
Expenses net of all reductions | .25% A | .25% A |
Net investment income (loss) | (.22)% A | 2.56% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 120 | $ 141 |
Portfolio turnover rate | 45% A | 5% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. H Total distributions of $.25 per share is comprised of distributions from net investment income of $.234 and distributions from net realized gain of $.014 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2045 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 10.2 | 10.8 |
VIP Equity-Income Portfolio Initial Class | 11.8 | 12.4 |
VIP Growth & Income Portfolio Initial Class | 11.8 | 12.5 |
VIP Growth Portfolio Initial Class | 11.8 | 12.7 |
VIP Mid Cap Portfolio Initial Class | 4.2 | 4.5 |
VIP Value Portfolio Initial Class | 10.2 | 11.0 |
VIP Value Strategies Portfolio Initial Class | 4.2 | 4.6 |
| 64.2 | 68.5 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 18.9 | 16.6 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 1.8 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 10.1 | 10.1 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 5.0 | 4.8 |
Net Other Assets | | |
Net Other Assets | 0.0* | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 64.2% | |
| Developed International Equity Funds | 18.9% | |
| Emerging Markets Equity Funds | 1.8% | |
| High Yield Bond Funds | 10.1% | |
| Investment Grade
Bond Funds | 5.0% | |
Six months ago |
| Domestic Equity Funds | 68.5% | |
| Developed International Equity Funds | 16.6% | |
| Investment Grade
Bond Funds | 4.8% | |
| High Yield Bond Funds | 10.1% | |
Expected |
| Domestic Equity Funds | 62.3% | |
| Developed International Equity Funds | 19.3% | |
| Emerging Markets Equity Funds | 3.4% | |
| High Yield Bond Funds | 10.0% | |
| Investment Grade
Bond Funds | 5.0% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2045 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 64.2% |
| Shares | | Value |
Domestic Equity Funds - 64.2% |
VIP Contrafund Portfolio Initial Class | 1,918 | | $ 36,929 |
VIP Equity-Income Portfolio Initial Class | 2,754 | | 42,960 |
VIP Growth & Income Portfolio Initial Class | 4,215 | | 42,951 |
VIP Growth Portfolio Initial Class | 1,508 | | 42,996 |
VIP Mid Cap Portfolio Initial Class | 597 | | 15,432 |
VIP Value Portfolio Initial Class | 4,072 | | 36,889 |
VIP Value Strategies Portfolio Initial Class | 2,030 | | 15,386 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $175,328) | 233,543 |
International Equity Funds - 20.7% |
| | | |
Developed International Equity Funds - 18.9% |
VIP Overseas Portfolio Initial Class | 5,266 | | 68,505 |
Emerging Markets Equity Funds - 1.8% |
VIP Emerging Markets Portfolio Initial Class | 845 | | 6,605 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $64,835) | 75,110 |
Bond Funds - 15.1% |
| | | |
High Yield Bond Funds - 10.1% |
VIP High Income Portfolio Initial Class | 6,697 | | 36,632 |
Investment Grade Bond Funds - 5.0% |
VIP Investment Grade Bond Portfolio Initial Class | 1,392 | | 18,316 |
TOTAL BOND FUNDS (Cost $44,710) | 54,948 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $284,873) | | 363,601 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (35) |
NET ASSETS - 100% | $ 363,566 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2045 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $284,873) - See accompanying schedule | | $ 363,601 |
Cash | | 3 |
Receivable for fund shares sold | | 2 |
Total assets | | 363,606 |
| | |
Liabilities | | |
Payable for investments purchased | $ 1 | |
Distribution fees payable | 39 | |
Total liabilities | | 40 |
| | |
Net Assets | | $ 363,566 |
Net Assets consist of: | | |
Paid in capital | | $ 272,898 |
Accumulated net investment loss | | (181) |
Accumulated undistributed net realized gain (loss) on investments | | 12,121 |
Net unrealized appreciation (depreciation) on investments | | 78,728 |
Net Assets | | $ 363,566 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($123,637 ÷ 9,518 shares) | | $ 12.99 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($120,074 ÷ 9,249 shares) | | $ 12.98 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($119,855 ÷ 9,241 shares) | | $ 12.97 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 68 |
| | |
Expenses | | |
Distribution fees | $ 249 | |
Total expenses | | 249 |
Net investment income (loss) | | (181) |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 12,048 | |
Capital gain distributions from underlying funds | 79 | 12,127 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (33,818) |
Net gain (loss) | | (21,691) |
Net increase (decrease) in net assets resulting from operations | | $ (21,872) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010 (Unaudited) | For the period
April 8, 2009 (commencement of operations) to December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (181) | $ 7,535 |
Net realized gain (loss) | 12,127 | 4,335 |
Change in net unrealized appreciation (depreciation) | (33,818) | 112,546 |
Net increase (decrease) in net assets resulting from operations | (21,872) | 124,416 |
Distributions to shareholders from net investment income | - | (7,534) |
Distributions to shareholders from net realized gain | (4,010) | (333) |
Total distributions | (4,010) | (7,867) |
Share transactions - net increase (decrease) | (38,012) | 310,911 |
Total increase (decrease) in net assets | (63,894) | 427,460 |
| | |
Net Assets | | |
Beginning of period | 427,460 | - |
End of period (including accumulated net investment loss of $181 and undistributed net investment income of $0, respectively) | $ 363,566 | $ 427,460 |
Financial Highlights - Initial Class
| Six months ended
June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.86 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | - H | .26 |
Net realized and unrealized gain (loss) | (.74) | 3.87 |
Total from investment operations | (.74) | 4.13 |
Distributions from net investment income | - | (.26) |
Distributions from net realized gain | (.13) | (.01) |
Total distributions | (.13) | (.27) |
Net asset value, end of period | $ 12.99 | $ 13.86 |
Total Return B, C | (5.36)% | 41.28% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .00% A | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% A |
Expenses net all reductions | .00% A | .00% A |
Net investment income (loss) | .03% A | 2.83% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 124 | $ 145 |
Portfolio turnover rate | 15% A | 5% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.86 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | - H | .25 |
Net realized and unrealized gain (loss) | (.75) | 3.87 |
Total from investment operations | (.75) | 4.12 |
Distributions from net investment income | - | (.25) |
Distributions from net realized gain | (.13) | (.01) |
Total distributions | (.13) | (.26) |
Net asset value, end of period | $ 12.98 | $ 13.86 |
Total Return B, C | (5.43)% | 41.19% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .10% A | .10% A |
Expenses net of fee waivers, if any | .10% A | .10% A |
Expenses net of all reductions | .10% A | .10% A |
Net investment income (loss) | (.07)% A | 2.73% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 120 | $ 141 |
Portfolio turnover rate | 15% A | 5% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. H Amount represents less than $.01 per share. |
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 13.85 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | (.02) | .24 |
Net realized and unrealized gain (loss) | (.73) | 3.86 |
Total from investment operations | (.75) | 4.10 |
Distributions from net investment income | - | (.24) |
Distributions from net realized gain | (.13) | (.01) |
Total distributions | (.13) | (.25) |
Net asset value, end of period | $ 12.97 | $ 13.85 |
Total Return B, C | (5.43)% | 40.96% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .25% A | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% A |
Expenses net of all reductions | .25% A | .25% A |
Net investment income (loss) | (.22)% A | 2.58% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 120 | $ 141 |
Portfolio turnover rate | 15% A | 5% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2050 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Initial Class | 10.6 | 11.1 |
VIP Equity-Income Portfolio Initial Class | 12.3 | 12.7 |
VIP Growth & Income Portfolio Initial Class | 12.3 | 12.8 |
VIP Growth Portfolio Initial Class | 12.3 | 13.0 |
VIP Mid Cap Portfolio Initial Class | 4.4 | 4.5 |
VIP Value Portfolio Initial Class | 10.6 | 11.2 |
VIP Value Strategies Portfolio Initial Class | 4.4 | 4.7 |
| 66.9 | 70.0 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Initial Class | 20.5 | 19.5 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Initial Class | 2.0 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Initial Class | 10.1 | 10.0 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Initial Class | 0.5 | 0.5 |
Net Other Assets | | |
Net Other Assets | 0.0* | 0.0* |
| 100.0 | 100.0 |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 66.9% | |
| Developed International Equity Funds | 20.5% | |
| Emerging Markets Equity Funds | 2.0% | |
| High Yield Bond Funds | 10.1% | |
| Investment Grade
Bond Funds | 0.5% | |
Six months ago |
| Domestic Equity Funds | 70.0% | |
| Developed International Equity Funds | 19.5% | |
| Investment Grade
Bond Funds | 0.5% | |
| High Yield Bond Funds | 10.0% | |
Expected |
| Domestic Equity Funds | 65.3% | |
| Developed International Equity Funds | 20.2% | |
| Emerging Markets Equity Funds | 3.6% | |
| High Yield Bond Funds | 10.0% | |
| Investment Grade
Bond Funds | 0.9% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
* Amount represents less than 0.1% |
Semiannual Report
VIP Freedom 2050 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 66.9% |
| Shares | | Value |
Domestic Equity Funds - 66.9% |
VIP Contrafund Portfolio Initial Class | 2,086 | | $ 40,159 |
VIP Equity-Income Portfolio Initial Class | 2,995 | | 46,721 |
VIP Growth & Income Portfolio Initial Class | 4,584 | | 46,711 |
VIP Growth Portfolio Initial Class | 1,640 | | 46,760 |
VIP Mid Cap Portfolio Initial Class | 648 | | 16,760 |
VIP Value Portfolio Initial Class | 4,428 | | 40,115 |
VIP Value Strategies Portfolio Initial Class | 2,205 | | 16,711 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $190,665) | 253,937 |
International Equity Funds - 22.5% |
| | | |
Developed International Equity Funds - 20.5% |
VIP Overseas Portfolio Initial Class | 5,992 | | 77,961 |
Emerging Markets Equity Funds - 2.0% |
VIP Emerging Markets Portfolio Initial Class | 960 | | 7,508 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $72,442) | 85,469 |
Bond Funds - 10.6% |
| | | |
High Yield Bond Funds - 10.1% |
VIP High Income Portfolio Initial Class | 6,994 | | 38,256 |
Investment Grade Bond Funds - 0.5% |
VIP Investment Grade Bond Portfolio Initial Class | 145 | | 1,913 |
TOTAL BOND FUNDS (Cost $31,682) | 40,169 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $294,789) | | 379,575 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (37) |
NET ASSETS - 100% | $ 379,538 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2050 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $294,789) - See accompanying schedule | | $ 379,575 |
Cash | | 1 |
Receivable for fund shares sold | | 89 |
Total assets | | 379,665 |
| | |
Liabilities | | |
Payable for investments purchased | $ 88 | |
Distribution fees payable | 39 | |
Total liabilities | | 127 |
| | |
Net Assets | | $ 379,538 |
Net Assets consist of: | | |
Paid in capital | | $ 285,575 |
Accumulated net investment loss | | (197) |
Accumulated undistributed net realized gain (loss) on investments | | 9,374 |
Net unrealized appreciation (depreciation) on investments | | 84,786 |
Net Assets | | $ 379,538 |
| | |
Initial Class:
Net Asset Value, offering price and redemption price per share ($135,670 ÷ 10,359 shares) | | $ 13.10 |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($120,280 ÷ 9,189 shares) | | $ 13.09 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($123,588 ÷ 9,450 shares) | | $ 13.08 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 59 |
| | |
Expenses | | |
Distribution fees | $ 256 | |
Total expenses | | 256 |
Net investment income (loss) | | (197) |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 9,429 | |
Capital gain distributions from underlying funds | 84 | 9,513 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (35,507) |
Net gain (loss) | | (25,994) |
Net increase (decrease) in net assets resulting from operations | | $ (26,191) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010 (Unaudited) | For the period
April 8, 2009 (commencement of operations) to
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ (197) | $ 7,526 |
Net realized gain (loss) | 9,513 | 2,166 |
Change in net unrealized appreciation (depreciation) | (35,507) | 120,293 |
Net increase (decrease) in net assets resulting from operations | (26,191) | 129,985 |
Distributions to shareholders from net investment income | - | (7,532) |
Distributions to shareholders from net realized gain | (1,921) | (378) |
Total distributions | (1,921) | (7,910) |
Share transactions - net increase (decrease) | (40,417) | 325,992 |
Total increase (decrease) in net assets | (68,529) | 448,067 |
| | |
Net Assets | | |
Beginning of period | 448,067 | - |
End of period (including accumulated net investment loss of $197 and undistributed net investment income of $0, respectively) | $ 379,538 | $ 448,067 |
Financial Highlights - Initial Class
| Six months ended June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 14.01 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | - H | .26 |
Net realized and unrealized gain (loss) | (.85) | 4.01 |
Total from investment operations | (.85) | 4.27 |
Distributions from net investment income | - | (.25) |
Distributions from net realized gain | (.06) | (.01) |
Total distributions | (.06) | (.26) |
Net asset value, end of period | $ 13.10 | $ 14.01 |
Total Return B, C | (6.08)% | 42.70% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .00% A | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% A |
Expenses net of all reductions | .00% A | .00% A |
Net investment income (loss) | .03% A | 2.76% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 136 | $ 159 |
Portfolio turnover rate | 15% A | 4% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. H Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom 2050 Portfolio
Financial Statements - continued
Financial Highlights - Service Class
| Six months ended June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 14.00 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | (.01) | .25 |
Net realized and unrealized gain (loss) | (.84) | 4.00 |
Total from investment operations | (.85) | 4.25 |
Distributions from net investment income | - | (.24) |
Distributions from net realized gain | (.06) | (.01) |
Total distributions | (.06) | (.25) |
Net asset value, end of period | $ 13.09 | $ 14.00 |
Total Return B, C | (6.08)% | 42.51% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .10% A | .10% A |
Expenses net of fee waivers, if any | .10% A | .10% A |
Expenses net of all reductions | .10% A | .10% A |
Net investment income (loss) | (.07)% A | 2.66% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 120 | $ 143 |
Portfolio turnover rate | 15% A | 4% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. |
Financial Highlights - Service Class 2
| Six months ended June 30, 2010 | Year ended December 31, |
| (Unaudited) | 2009 F |
Selected Per-Share Data | | |
Net asset value, beginning of period | $ 14.00 | $ 10.00 |
Income from Investment Operations | | |
Net investment income (loss) D | (.02) | .23 |
Net realized and unrealized gain (loss) | (.84) | 4.01 |
Total from investment operations | (.86) | 4.24 |
Distributions from net investment income | - | (.23) |
Distributions from net realized gain | (.06) | (.01) |
Total distributions | (.06) | (.24) |
Net asset value, end of period | $ 13.08 | $ 14.00 |
Total Return B, C | (6.15)% | 42.37% |
Ratios to Average Net Assets E, G | | |
Expenses before reductions | .25% A | .25% A |
Expenses net of fee waivers, if any | .25% A | .25% A |
Expenses net of all reductions | .25% A | .25% A |
Net investment income (loss) | (.22)% A | 2.51% A |
Supplemental Data | | |
Net assets, end of period (000 omitted) | $ 124 | $ 147 |
Portfolio turnover rate | 15% A | 4% A |
A Annualized B Total returns for periods of less than one year are not annualized. 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 Calculated based on average shares outstanding during the period. E Amounts do not include the activity of the underlying funds. F For the period April 8, 2009 (commencement of operations) to December 31, 2009. G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2010 (Unaudited)
1. Organization.
VIP Freedom Income Portfolio, VIP Freedom 2005 Portfolio, VIP Freedom 2010 Portfolio, VIP Freedom 2015 Portfolio, VIP Freedom 2020 Portfolio, VIP Freedom 2025 Portfolio, VIP Freedom 2030 Portfolio, VIP Freedom 2035 Portfolio, VIP Freedom 2040 Portfolio, VIP Freedom 2045 Portfolio and VIP Freedom 2050 Portfolio (the Funds) are funds of Variable Insurance Products Fund V. Variable Insurance Products Fund V (the Trust) (referred to in this report as Fidelity Variable Insurance Products) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each Fund is authorized to issue an unlimited number of shares. The Funds invest primarily in a combination of other VIP equity, bond, and short-term funds (the Underlying Funds) managed by Fidelity Management & Research Company (FMR). Shares of each Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. Each Fund offers three classes of shares: Initial Class shares, Service Class shares and Service Class 2 shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Significant Accounting Policies.
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. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund categorizes the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows. Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date. Distributions from the Underlying Funds that are deemed to be return of capital are recorded as a reduction of cost of investments. Interest income is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of the Trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned amongst each fund in the Trust. Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses associated with the Underlying Funds. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
Distributions are recorded on the ex-dividend date. Income dividends 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) |
VIP Freedom Income | $ 17,831,135 | $ 418,950 | $ (1,144,203) | $ (725,253) |
VIP Freedom 2005 | 6,631,913 | 102,083 | (1,117,897) | (1,015,814) |
VIP Freedom 2010 | 150,631,922 | 3,789,773 | (24,584,192) | (20,794,419) |
VIP Freedom 2015 | 93,814,662 | 3,584,710 | (13,718,887) | (10,134,177) |
VIP Freedom 2020 | 326,574,916 | 11,365,491 | (54,034,556) | (42,669,065) |
VIP Freedom 2025 | 30,958,573 | 788,399 | (6,015,126) | (5,226,727) |
VIP Freedom 2030 | 95,819,231 | 2,117,510 | (20,779,712) | (18,662,202) |
VIP Freedom 2035 | 287,865 | 77,996 | (801) | 77,195 |
VIP Freedom 2040 | 1,011,111 | 83,273 | (47,414) | 35,859 |
VIP Freedom 2045 | 284,928 | 79,483 | (810) | 78,673 |
VIP Freedom 2050 | 294,899 | 85,286 | (610) | 84,676 |
3. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
VIP Freedom Income | 3,036,721 | 5,741,566 |
VIP Freedom 2005 | 1,312,324 | 2,853,700 |
VIP Freedom 2010 | 23,203,051 | 19,795,898 |
VIP Freedom 2015 | 17,077,200 | 13,374,859 |
VIP Freedom 2020 | 71,911,495 | 33,406,621 |
VIP Freedom 2025 | 6,942,611 | 4,027,653 |
VIP Freedom 2030 | 17,615,808 | 11,614,538 |
VIP Freedom 2035 | 33,907 | 75,280 |
VIP Freedom 2040 | 804,187 | 116,917 |
VIP Freedom 2045 | 31,727 | 73,801 |
VIP Freedom 2050 | 32,654 | 75,050 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (Strategic Advisers), an affiliate of FMR, provides the Funds with investment management related services. The Funds do not pay any fees for these services.
Other Transactions. Strategic Advisers has entered into an administration agreement with FMR under which FMR provides management and administrative services (other than investment advisory services) necessary for the operation of each Fund. Pursuant to this agreement, FMR pays all expenses of each Fund, excluding the distribution and service fees, the compensation of the independent Trustees and certain other expenses such as interest expense. FMR also contracts with other Fidelity companies to perform the services necessary for the operation of each Fund. The Funds do not pay any fees for these services.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Funds have adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, 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.
Semiannual Report
4. Fees and Other Transactions with Affiliates - continued
Distribution and Service Plan - continued
For the period, each class paid FDC the following amounts, all of which were reallowed to insurance companies for the distribution of shares and providing shareholder support services:
| Service
Class | Service
Class 2 | Total |
VIP Freedom Income | $ 106 | $ 8,296 | $ 8,402 |
VIP Freedom 2005 | 81 | 169 | 250 |
VIP Freedom 2010 | 9,812 | 113,299 | 123,111 |
VIP Freedom 2015 | 893 | 57,439 | 58,332 |
VIP Freedom 2020 | 13,830 | 260,935 | 274,765 |
VIP Freedom 2025 | 422 | 11,967 | 12,389 |
VIP Freedom 2030 | 8,896 | 46,861 | 55,757 |
VIP Freedom 2035 | 71 | 179 | 250 |
VIP Freedom 2040 | 72 | 177 | 249 |
VIP Freedom 2045 | 71 | 178 | 249 |
VIP Freedom 2050 | 72 | 184 | 256 |
5. Expense Reductions.
FMR voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
The following classes of each applicable Fund were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
| | |
VIP Freedom Income | | |
Initial Class | -% | $ 20 |
Service Class | .10% | - |
Service Class 2 | .25% | 12 |
VIP Freedom 2005 | | |
Initial Class | -% | 11 |
Service Class | .10% | - |
Service Class 2 | .25% | - |
VIP Freedom 2010 | | |
Initial Class | -% | 36 |
Service Class | .10% | 33 |
Service Class 2 | .25% | 154 |
VIP Freedom 2015 | | |
Initial Class | -% | 62 |
Service Class | .10% | 3 |
Service Class 2 | .25% | 78 |
VIP Freedom 2020 | | |
Initial Class | -% | 67 |
Service Class | .10% | 46 |
Service Class 2 | .25% | 346 |
VIP Freedom 2025 | | |
Initial Class | -% | 26 |
Service Class | .10% | 1 |
Service Class 2 | .25% | 16 |
VIP Freedom 2030 | | |
Initial Class | -% | 40 |
Service Class | .10% | 30 |
Service Class 2 | .25% | 63 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
June 30, 2010 | Year ended
December 31, 2009 |
VIP Freedom Income | | |
From net investment income | | |
Initial Class | $ - | $ 418,571 |
Service Class | - | 5,244 |
Service Class 2 | - | 228,173 |
Total | $ - | $ 651,988 |
From net realized gain | | |
Initial Class | $ 30,341 | $ 158,860 |
Service Class | 566 | 3,186 |
Service Class 2 | 16,793 | 89,325 |
Total | $ 47,700 | $ 251,371 |
VIP Freedom 2005 | | |
From net investment income | | |
Initial Class | $ - | $ 246,999 |
Service Class | - | 6,010 |
Service Class 2 | - | 6,092 |
Total | $ - | $ 259,101 |
From net realized gain | | |
Initial Class | $ 55,557 | $ 185,049 |
Service Class | 1,399 | 6,807 |
Service Class 2 | 1,070 | 7,360 |
Total | $ 58,026 | $ 199,216 |
VIP Freedom 2010 | | |
From net investment income | | |
Initial Class | $ - | $ 775,255 |
Service Class | - | 682,497 |
Service Class 2 | - | 3,022,186 |
Total | $ - | $ 4,479,938 |
From net realized gain | | |
Initial Class | $ 128,614 | $ 154,282 |
Service Class | 119,158 | 143,134 |
Service Class 2 | 544,571 | 574,134 |
Total | $ 792,343 | $ 871,550 |
VIP Freedom 2015 | | |
From net investment income | | |
Initial Class | $ - | $ 1,243,073 |
Service Class | - | 49,152 |
Service Class 2 | - | 1,351,309 |
Total | $ - | $ 2,643,534 |
From net realized gain | | |
Initial Class | $ 131,500 | $ 432,114 |
Service Class | 5,577 | 15,773 |
Service Class 2 | 157,645 | 456,120 |
Total | $ 294,722 | $ 904,007 |
Semiannual Report
6. Distributions to Shareholders - continued
| Six months ended
June 30, 2010 | Year ended
December 31, 2009 |
VIP Freedom 2020 | | |
From net investment income | | |
Initial Class | $ - | $ 1,130,083 |
Service Class | - | 761,045 |
Service Class 2 | - | 5,213,654 |
Total | $ - | $ 7,104,782 |
From net realized gain | | |
Initial Class | $ 123,975 | $ 386,129 |
Service Class | 82,544 | 272,235 |
Service Class 2 | 616,749 | 1,738,381 |
Total | $ 823,268 | $ 2,396,745 |
VIP Freedom 2025 | | |
From net investment income | | |
Initial Class | $ - | $ 440,844 |
Service Class | - | 19,456 |
Service Class 2 | - | 231,655 |
Total | $ - | $ 691,955 |
From net realized gain | | |
Initial Class | $ 23,995 | $ 169,810 |
Service Class | 1,241 | 7,444 |
Service Class 2 | 14,035 | 73,440 |
Total | $ 39,271 | $ 250,694 |
VIP Freedom 2030 | | |
From net investment income | | |
Initial Class | $ - | $ 468,196 |
Service Class | - | 303,407 |
Service Class 2 | - | 617,415 |
Total | $ - | $ 1,389,018 |
From net realized gain | | |
Initial Class | $ 64,752 | $ 259,161 |
Service Class | 47,526 | 164,844 |
Service Class 2 | 98,657 | 295,539 |
Total | $ 210,935 | $ 719,544 |
VIP Freedom 2035 A | | |
From net investment income | | |
Initial Class | $ - | $ 2,596 |
Service Class | - | 2,430 |
Service Class 2 | - | 2,346 |
Total | $ - | $ 7,372 |
From net realized gain | | |
Initial Class | $ 1,314 | $ 144 |
Service Class | 1,273 | 140 |
Service Class 2 | 1,298 | 143 |
Total | $ 3,885 | $ 427 |
VIP Freedom 2040 A | | |
From net investment income | | |
Initial Class | $ - | $ 2,647 |
Service Class | - | 2,480 |
Service Class 2 | - | 2,340 |
Total | $ - | $ 7,467 |
From net realized gain | | |
Initial Class | $ 1,473 | $ 144 |
Service Class | 1,426 | 140 |
Service Class 2 | 1,425 | 140 |
Total | $ 4,324 | $ 424 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Distributions to Shareholders - continued
| Six months ended
June 30, 2010 | Year ended
December 31, 2009 |
VIP Freedom 2045 A | | |
From net investment income | | |
Initial Class | $ - | $ 2,664 |
Service Class | - | 2,500 |
Service Class 2 | - | 2,370 |
Total | $ - | $ 7,534 |
From net realized gain | | |
Initial Class | $ 1,363 | $ 113 |
Service Class | 1,324 | 110 |
Service Class 2 | 1,323 | 110 |
Total | $ 4,010 | $ 333 |
VIP Freedom 2050 A | | |
From net investment income | | |
Initial Class | $ - | $ 2,785 |
Service Class | - | 2,410 |
Service Class 2 | - | 2,337 |
Total | $ - | $ 7,532 |
From net realized gain | | |
Initial Class | $ 682 | $ 134 |
Service Class | 611 | 120 |
Service Class 2 | 628 | 124 |
Total | $ 1,921 | $ 378 |
A For the period April 8, 2009 (commencement of operations) to December 31, 2009.
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended June 30,
2010 | Year ended December 31,
2009 | Six months ended June 30,
2010 | Year ended December 31,
2009 |
VIP Freedom Income | | | | |
Initial Class | | | | |
Shares sold | 122,921 | 462,871 | $ 1,246,414 | $ 4,540,087 |
Reinvestment of distributions | 3,046 | 58,723 | 30,341 | 577,431 |
Shares redeemed | (339,975) | (235,490) | (3,443,720) | (2,259,914) |
Net increase (decrease) | (214,008) | 286,104 | $ (2,166,965) | $ 2,857,604 |
Service Class | | | | |
Shares sold | 12,704 | - | $ 127,524 | $ - |
Reinvestment of distributions | 57 | 870 | 566 | 8,430 |
Shares redeemed | (8,759) | (12,809) | (88,594) | (122,754) |
Net increase (decrease) | 4,002 | (11,939) | $ 39,496 | $ (114,324) |
Service Class 2 | | | | |
Shares sold | 180,531 | 370,977 | $ 1,814,133 | $ 3,515,784 |
Reinvestment of distributions | 1,691 | 32,349 | 16,793 | 317,497 |
Shares redeemed | (236,174) | (256,214) | (2,378,693) | (2,438,407) |
Net increase (decrease) | (53,952) | 147,112 | $ (547,767) | $ 1,394,874 |
VIP Freedom 2005 | | | | |
Initial Class | | | | |
Shares sold | 70,218 | 290,653 | $ 664,369 | $ 2,449,103 |
Reinvestment of distributions | 6,078 | 49,902 | 55,557 | 432,048 |
Shares redeemed | (227,973) | (345,358) | (2,152,387) | (2,882,842) |
Net increase (decrease) | (151,677) | (4,803) | $ (1,432,461) | $ (1,691) |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars |
| Six months ended June 30,
2010 | Year ended December 31,
2009 | Six months ended June 30,
2010 | Year ended December 31,
2009 |
Service Class | | | | |
Shares sold | 472 | 2,046 | $ 4,486 | $ 16,221 |
Reinvestment of distributions | 153 | 1,524 | 1,399 | 12,817 |
Shares redeemed | (4,390) | (15,887) | (41,614) | (137,264) |
Net increase (decrease) | (3,765) | (12,317) | $ (35,729) | $ (108,226) |
Service Class 2 | | | | |
Shares sold | 8,380 | 5,431 | $ 77,717 | $ 49,354 |
Reinvestment of distributions | 117 | 1,603 | 1,070 | 13,452 |
Shares redeemed | (10,326) | (20,647) | (97,696) | (180,064) |
Net increase (decrease) | (1,829) | (13,613) | $ (18,909) | $ (117,258) |
VIP Freedom 2010 | | | | |
Initial Class | | | | |
Shares sold | 213,066 | 414,253 | $ 2,107,942 | $ 3,587,514 |
Reinvestment of distributions | 13,439 | 98,751 | 128,614 | 929,536 |
Shares redeemed | (292,840) | (1,376,013) | (2,909,568) | (11,582,032) |
Net increase (decrease) | (66,335) | (863,009) | $ (673,012) | $ (7,064,982) |
Service Class | | | | |
Shares sold | 332,210 | 652,734 | $ 3,301,796 | $ 5,604,015 |
Reinvestment of distributions | 12,464 | 87,885 | 119,158 | 825,631 |
Shares redeemed | (374,849) | (853,771) | (3,717,464) | (7,408,613) |
Net increase (decrease) | (30,175) | (113,152) | $ (296,510) | $ (978,967) |
Service Class 2 | | | | |
Shares sold | 1,253,157 | 2,238,155 | $ 12,329,414 | $ 20,056,230 |
Reinvestment of distributions | 57,143 | 382,353 | 544,571 | 3,596,320 |
Shares redeemed | (773,796) | (1,691,306) | (7,657,038) | (14,628,341) |
Net increase (decrease) | 536,504 | 929,202 | $ 5,216,947 | $ 9,024,209 |
VIP Freedom 2015 | | | | |
Initial Class | | | | |
Shares sold | 313,051 | 1,338,816 | $ 3,119,675 | $ 11,871,466 |
Reinvestment of distributions | 13,712 | 177,040 | 131,500 | 1,675,187 |
Shares redeemed | (406,795) | (874,628) | (4,047,906) | (7,788,149) |
Net increase (decrease) | (80,032) | 641,228 | $ (796,731) | $ 5,758,504 |
Service Class | | | | |
Shares sold | 87,444 | 186,764 | $ 869,002 | $ 1,594,834 |
Reinvestment of distributions | 582 | 6,818 | 5,577 | 64,924 |
Shares redeemed | (44,113) | (151,939) | (437,240) | (1,277,662) |
Net increase (decrease) | 43,913 | 41,643 | $ 437,339 | $ 382,096 |
Service Class 2 | | | | |
Shares sold | 836,039 | 1,825,483 | $ 8,289,599 | $ 16,491,260 |
Reinvestment of distributions | 16,507 | 190,952 | 157,645 | 1,807,428 |
Shares redeemed | (411,674) | (817,202) | (4,078,625) | (7,121,468) |
Net increase (decrease) | 440,872 | 1,199,233 | $ 4,368,619 | $ 11,177,220 |
VIP Freedom 2020 | | | | |
Initial Class | | | | |
Shares sold | 547,881 | 1,419,778 | $ 5,349,352 | $ 12,010,755 |
Reinvestment of distributions | 13,359 | 166,674 | 123,975 | 1,516,212 |
Shares redeemed | (437,247) | (1,850,345) | (4,244,120) | (14,702,993) |
Net increase (decrease) | 123,993 | (263,893) | $ 1,229,207 | $ (1,176,026) |
Service Class | | | | |
Shares sold | 560,129 | 1,026,253 | $ 5,435,671 | $ 8,455,394 |
Reinvestment of distributions | 8,914 | 114,098 | 82,544 | 1,033,280 |
Shares redeemed | (309,851) | (790,200) | (2,985,210) | (6,544,951) |
Net increase (decrease) | 259,192 | 350,151 | $ 2,533,005 | $ 2,943,723 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
| Shares | Dollars |
| Six months ended June 30,
2010 | Year ended December 31,
2009 | Six months ended June 30,
2010 | Year ended December 31,
2009 |
Service Class 2 | | | | |
Shares sold | 4,713,593 | 7,102,672 | $ 45,485,680 | $ 61,675,414 |
Reinvestment of distributions | 66,748 | 762,886 | 616,749 | 6,952,035 |
Shares redeemed | (1,090,959) | (1,718,729) | (10,399,827) | (14,671,947) |
Net increase (decrease) | 3,689,382 | 6,146,829 | $ 35,702,602 | $ 53,955,502 |
VIP Freedom 2025 | | | | |
Initial Class | | | | |
Shares sold | 118,354 | 327,202 | $ 1,132,985 | $ 2,758,614 |
Reinvestment of distributions | 2,651 | 70,858 | 23,995 | 610,654 |
Shares redeemed | (131,401) | (267,455) | (1,235,117) | (2,131,038) |
Net increase (decrease) | (10,396) | 130,605 | $ (78,137) | $ 1,238,230 |
Service Class | | | | |
Shares sold | 62,347 | 51,579 | $ 584,306 | $ 416,959 |
Reinvestment of distributions | 137 | 3,116 | 1,241 | 26,900 |
Shares redeemed | (18,998) | (35,412) | (183,775) | (288,761) |
Net increase (decrease) | 43,486 | 19,283 | $ 401,772 | $ 155,098 |
Service Class 2 | | | | |
Shares sold | 415,823 | 764,019 | $ 3,965,822 | $ 6,727,650 |
Reinvestment of distributions | 1,556 | 34,775 | 14,035 | 305,096 |
Shares redeemed | (142,281) | (399,076) | (1,349,488) | (3,567,260) |
Net increase (decrease) | 275,098 | 399,718 | $ 2,630,369 | $ 3,465,486 |
VIP Freedom 2030 | | | | |
Initial Class | | | | |
Shares sold | 295,658 | 980,714 | $ 2,723,005 | $ 7,765,974 |
Reinvestment of distributions | 7,409 | 93,578 | 64,752 | 727,357 |
Shares redeemed | (307,838) | (1,185,290) | (2,797,672) | (8,386,523) |
Net increase (decrease) | (4,771) | (110,998) | $ (9,915) | $ 106,808 |
Service Class | | | | |
Shares sold | 407,385 | 620,610 | $ 3,770,200 | $ 4,751,421 |
Reinvestment of distributions | 5,444 | 60,175 | 47,526 | 468,251 |
Shares redeemed | (226,007) | (336,231) | (2,057,417) | (2,580,003) |
Net increase (decrease) | 186,822 | 344,554 | $ 1,760,309 | $ 2,639,669 |
Service Class 2 | | | | |
Shares sold | 875,383 | 1,650,447 | $ 8,102,727 | $ 13,384,707 |
Reinvestment of distributions | 11,327 | 116,202 | 98,657 | 912,954 |
Shares redeemed | (401,372) | (612,226) | (3,718,813) | (4,784,642) |
Net increase (decrease) | 485,338 | 1,154,423 | $ 4,482,571 | $ 9,513,019 |
VIP Freedom 2035A | | | | |
Initial Class | | | | |
Shares sold | 83 | 10,303 | $ 1,148 | $ 103,286 |
Reinvestment of distributions | 100 | 198 | 1,314 | 2,739 |
Shares redeemed | (1,100) | (4) | (14,655) | (54) |
Net increase (decrease) | (917) | 10,497 | $ (12,193) | $ 105,971 |
Service Class | | | | |
Shares sold | - | 10,001 | $ - | $ 100,010 |
Reinvestment of distributions | 97 | 186 | 1,273 | 2,570 |
Shares redeemed | (1,036) | - | (13,769) | - |
Net increase (decrease) | (939) | 10,187 | $ (12,496) | $ 102,580 |
Service Class 2 | | | | |
Shares sold | 21 | 10,201 | $ 289 | $ 102,785 |
Reinvestment of distributions | 99 | 180 | 1,298 | 2,489 |
Shares redeemed | (1,078) | - | (14,349) | (4) |
Net increase (decrease) | (958) | 10,381 | $ (12,762) | $ 105,270 |
Semiannual Report
7. Share Transactions - continued
| Shares | Dollars |
| Six months ended June 30,
2010 | Year ended December 31,
2009 | Six months ended June 30,
2010 | Year ended December 31,
2009 |
VIP Freedom 2040A | | | | |
Initial Class | | | | |
Shares sold | 52,843 | 10,356 | $ 731,722 | $ 103,923 |
Reinvestment of distributions | 110 | 200 | 1,473 | 2,790 |
Shares redeemed | (1,250) | (59) | (16,729) | (786) |
Net increase (decrease) | 51,703 | 10,497 | $ 716,466 | $ 105,927 |
Service Class | | | | |
Shares sold | - | 10,001 | $ - | $ 100,010 |
Reinvestment of distributions | 107 | 188 | 1,426 | 2,620 |
Shares redeemed | (1,039) | - | (13,853) | - |
Net increase (decrease) | (932) | 10,189 | $ (12,427) | $ 102,630 |
Service Class 2 | | | | |
Shares sold | - | 10,001 | $ 3 | $ 100,010 |
Reinvestment of distributions | 107 | 178 | 1,425 | 2,480 |
Shares redeemed | (1,037) | - | (13,833) | - |
Net increase (decrease) | (930) | 10,179 | $ (12,405) | $ 102,490 |
VIP Freedom 2045A | | | | |
Initial Class | | | | |
Shares sold | 7 | 10,285 | $ 97 | $ 103,051 |
Reinvestment of distributions | 103 | 199 | 1,363 | 2,776 |
Shares redeemed | (1,074) | (2) | (14,365) | (26) |
Net increase (decrease) | (964) | 10,482 | $ (12,905) | $ 105,801 |
Service Class | | | | |
Shares sold | - | 10,001 | $ - | $ 100,010 |
Reinvestment of distributions | 100 | 187 | 1,324 | 2,610 |
Shares redeemed | (1,039) | - | (13,889) | - |
Net increase (decrease) | (939) | 10,188 | $ (12,565) | $ 102,620 |
Service Class 2 | | | | |
Shares sold | - | 10,001 | $ 3 | $ 100,010 |
Reinvestment of distributions | 100 | 178 | 1,323 | 2,480 |
Shares redeemed | (1,038) | - | (13,868) | - |
Net increase (decrease) | (938) | 10,179 | $ (12,542) | $ 102,490 |
VIP Freedom 2050A | | | | |
Initial Class | | | | |
Shares sold | 238 | 11,146 | $ 3,349 | $ 114,029 |
Reinvestment of distributions | 51 | 207 | 682 | 2,918 |
Shares redeemed | (1,273) | (10) | (17,264) | (130) |
Net increase (decrease) | (984) | 11,343 | $ (13,233) | $ 116,817 |
Service Class | | | | |
Shares sold | - | 10,001 | $ - | $ 100,010 |
Reinvestment of distributions | 45 | 179 | 611 | 2,530 |
Shares redeemed | (1,036) | - | (13,991) | - |
Net increase (decrease) | (991) | 10,180 | $ (13,380) | $ 102,540 |
Service Class 2 | | | | |
Shares sold | 36 | 10,297 | $ 489 | $ 104,181 |
Reinvestment of distributions | 47 | 174 | 628 | 2,461 |
Shares redeemed | (1,103) | (1) | (14,921) | (7) |
Net increase (decrease) | (1,020) | 10,470 | $ (13,804) | $ 106,635 |
A For the period April 8, 2009 (commencement of operations) to December 31, 2009.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
8. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
The Funds do not invest in the Underlying Funds for the purpose of exercising management or control; however, investments by the Funds within their principal investment strategies may represent a significant portion of the Underlying Fund's net assets. At the end of the period, VIP Freedom 2020 was the owner of record of approximately 16% of the total outstanding shares of VIP Value Portfolio.
The Funds, in aggregate, were the owners of record of approximately 34% of the total outstanding shares of VIP Value Portfolio.
In addition, at the end of the period, FMR or its affiliates and certain otherwise unaffiliated shareholders each were owners of record of more than 10% of the outstanding shares of the following funds:
| Affiliated % | Number of
Unaffiliated
Shareholders | Unaffiliated
Shareholders % |
VIP Freedom Income | 59% | 1 | 21% |
VIP Freedom 2005 | 96% | - | - |
VIP Freedom 2010 | 14% | 1 | 64% |
VIP Freedom 2015 | 37% | 1 | 40% |
VIP Freedom 2020 | - | 2 | 76% |
VIP Freedom 2025 | 45% | 2 | 29% |
VIP Freedom 2030 | 16% | 1 | 47% |
VIP Freedom 2035 | 98% | - | - |
VIP Freedom 2040 | 34% | 1 | 64% |
VIP Freedom 2045 | 99% | - | - |
VIP Freedom 2050 | 95% | - | - |
Semiannual Report
Investment Adviser
Strategic Advisers, Inc.
Boston, MA
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
VIPFF2K-SANN-0810
1.819548.106
Fidelity® Variable Insurance Products:
Freedom Lifetime Income Funds -
Portfolios I, II, & III
Semiannual Report
June 30, 2010
(2_fidelity_logos) (Registered_Trademark)
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.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds 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 (January 1, 2010 to June 30, 2010).
Actual Expenses
The first line of the accompanying table for each fund 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 fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. 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. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
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.
| Annualized
Expense Ratio | Beginning
Account Value
January 1, 2010 | Ending
Account Value
June 30, 2010 | Expenses Paid
During Period*
January 1, 2010
to June 30, 2010 |
VIP Freedom Lifetime Income I | .00% | | | |
Actual | | $ 1,000.00 | $ 992.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
VIP Freedom Lifetime Income II | .00% | | | |
Actual | | $ 1,000.00 | $ 987.10 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
VIP Freedom Lifetime Income III | .00% | | | |
Actual | | $ 1,000.00 | $ 966.80 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Fund invests are not included in the Fund's annualized expense ratio.
Semiannual Report
VIP Freedom Lifetime Income I Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 5.2 | 5.7 |
VIP Equity-Income Portfolio Investor Class | 6.1 | 6.6 |
VIP Growth & Income Portfolio Investor Class | 6.1 | 6.6 |
VIP Growth Portfolio Investor Class | 6.1 | 6.7 |
VIP Mid Cap Portfolio Investor Class | 2.2 | 2.4 |
VIP Value Portfolio Investor Class | 5.2 | 5.6 |
VIP Value Strategies Portfolio Investor Class | 2.2 | 2.4 |
| 33.1 | 36.0 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 9.4 | 8.5 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 0.9 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 5.0 | 5.2 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 36.5 | 35.6 |
Short-Term Funds | | |
VIP Money Market Portfolio Investor Class | 15.1 | 14.7 |
Net Other Assets | | |
Net Other Assets* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) |
Current |
 | Domestic Equity Funds | 33.1% | |
 | Developed International Equity Funds | 9.4% | |
 | Emerging Markets Equity Funds | 0.9% | |
 | High Yield Bond Funds | 5.0% | |
 | Investment Grade Bond Funds | 36.5% | |
 | Short-Term Funds | 15.1% | |
Six months ago |
| Domestic Equity Funds | 36.0% | |
| Developed International Equity Funds | 8.5% | |
| Investment Grade Bond Funds | 35.6% | |
 | High Yield Bond Funds | 5.2% | |
| Short-Term Funds | 14.7% | |
Expected |
| Domestic Equity Funds | 31.5% | |
| Developed International Equity Funds | 9.7% | |
| Emerging Markets Equity Funds | 1.7% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 37.1% | |
| Short-Term Funds | 15.0% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Freedom Lifetime Income I Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 33.1% |
| Shares | | Value |
Domestic Equity Funds - 33.1% |
VIP Contrafund Portfolio Investor Class | 25,442 | | $ 487,985 |
VIP Equity-Income Portfolio Investor Class | 36,521 | | 567,894 |
VIP Growth & Income Portfolio Investor Class | 55,920 | | 568,146 |
VIP Growth Portfolio Investor Class | 19,991 | | 568,540 |
VIP Mid Cap Portfolio Investor Class | 7,917 | | 204,088 |
VIP Value Portfolio Investor Class | 53,863 | | 487,462 |
VIP Value Strategies Portfolio Investor Class | 26,987 | | 203,750 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $4,318,299) | 3,087,865 |
International Equity Funds - 10.3% |
| | | |
Developed International Equity Funds - 9.4% |
VIP Overseas Portfolio Investor Class R | 67,365 | | 873,730 |
Emerging Markets Equity Funds - 0.9% |
VIP Emerging Markets Portfolio Investor Class R | 10,744 | | 83,913 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $1,352,356) | 957,643 |
Bond Funds - 41.5% |
| Shares | | Value |
High Yield Bond Funds - 5.0% |
VIP High Income Portfolio Investor Class | 85,546 | | $ 466,228 |
Investment Grade Bond Funds - 36.5% |
VIP Investment Grade Bond Portfolio Investor Class | 259,468 | | 3,406,815 |
TOTAL BOND FUNDS (Cost $3,798,136) | 3,873,043 |
Short-Term Funds - 15.1% |
| | | |
VIP Money Market Portfolio Investor Class
(Cost $1,404,105) | 1,404,105 | | 1,404,105 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $10,872,896) | | 9,322,656 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (18) |
NET ASSETS - 100% | $ 9,322,638 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom Lifetime Income I Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $10,872,896) - See accompanying schedule | | $ 9,322,656 |
Receivable for investments sold | | 154 |
Total assets | | 9,322,810 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1 | |
Payable for investments purchased | 14 | |
Payable for fund shares redeemed | 154 | |
Other payables and accrued expenses | 3 | |
Total liabilities | | 172 |
| | |
Net Assets | | $ 9,322,638 |
Net Assets consist of: | | |
Paid in capital | | $ 10,891,649 |
Undistributed net investment income | | 630 |
Accumulated undistributed net realized gain (loss) on investments | | (19,401) |
Net unrealized appreciation (depreciation) on investments | | (1,550,240) |
Net Assets, for 1,029,734 shares outstanding | | $ 9,322,638 |
Net Asset Value, offering price and redemption price per share ($9,322,638 ÷ 1,029,734 shares) | | $ 9.05 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 3,937 |
| | |
Expenses | | |
Independent trustees' compensation | $ 15 | |
Total expenses before reductions | 15 | |
Expense reductions | (15) | 0 |
Net investment income (loss) | | 3,937 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 26,869 | |
Capital gain distributions from underlying funds | 857 | 27,726 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (109,259) |
Net gain (loss) | | (81,533) |
Net increase (decrease) in net assets resulting from operations | | $ (77,596) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom Lifetime Income I Portfolio
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended
June 30, 2010
(Unaudited) | Year ended
December 31,
2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,937 | $ 334,506 |
Net realized gain (loss) | 27,726 | 90,279 |
Change in net unrealized appreciation (depreciation) | (109,259) | 1,133,654 |
Net increase (decrease) in net assets resulting from operations | (77,596) | 1,558,439 |
Distributions to shareholders from net investment income | (9,524) | (332,639) |
Distributions to shareholders from net realized gain | - | (76,060) |
Total distributions | (9,524) | (408,699) |
Share transactions
Proceeds from sales of shares | 944,583 | 773,369 |
Reinvestment of distributions | 9,524 | 408,699 |
Cost of shares redeemed | (317,636) | (1,206,057) |
Net increase (decrease) in net assets resulting from share transactions | 636,471 | (23,989) |
Total increase (decrease) in net assets | 549,351 | 1,125,751 |
Net Assets | | |
Beginning of period | 8,773,287 | 7,647,536 |
End of period (including undistributed net investment income of $630 and undistributed net investment income of $6,217, respectively) | $ 9,322,638 | $ 8,773,287 |
Other Information Shares | | |
Sold | 101,862 | 85,671 |
Issued in reinvestment of distributions | 1,057 | 46,276 |
Redeemed | (34,108) | (149,828) |
Net increase (decrease) | 68,811 | (17,881) |
Financial Highlights
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.13 | $ 7.81 | $ 11.21 | $ 10.98 | $ 10.27 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .36 | .33 | .36 | .27 | .10 |
Net realized and unrealized gain (loss) | (.07) | 1.40 | (2.85) | .53 | .67 | .26 |
Total from investment operations | (.07) | 1.76 | (2.52) | .89 | .94 | .36 |
Distributions from net investment income | (.01) | (.36) | (.37) | (.34) | (.18) | (.05) |
Distributions from net realized gain | - | (.08) | (.51) | (.32) | (.05) | (.04) |
Total distributions | (.01) | (.44) | (.88) | (.66) | (.23) | (.09) |
Net asset value, end of period | $ 9.05 | $ 9.13 | $ 7.81 | $ 11.21 | $ 10.98 | $ 10.27 |
Total Return B, C, D | (.77)% | 22.76% | (22.68)% | 8.16% | 9.15% | 3.55% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions J | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .09% A | 4.28% | 3.31% | 3.15% | 2.50% | 2.23% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,323 | $ 8,773 | $ 7,648 | $ 12,533 | $ 10,106 | $ 2,906 |
Portfolio turnover rate | 26% A | 20% | 25% | 16% | 28% | 71% |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period July 26, 2005 (commencement of operations) to December 31, 2005.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
I Amount represents less than $.01 per share.
J Amount represents less than .01%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom Lifetime Income II Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 6.0 | 6.8 |
VIP Equity-Income Portfolio Investor Class | 6.9 | 7.7 |
VIP Growth & Income Portfolio Investor Class | 7.0 | 7.8 |
VIP Growth Portfolio Investor Class | 7.0 | 7.9 |
VIP Mid Cap Portfolio Investor Class | 2.5 | 2.8 |
VIP Value Portfolio Investor Class | 6.0 | 6.6 |
VIP Value Strategies Portfolio Investor Class | 2.5 | 2.8 |
| 37.9 | 42.4 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 11.1 | 10.3 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 1.1 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 5.5 | 6.1 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 37.0 | 35.0 |
Short-Term Funds | | |
VIP Money Market Portfolio Investor Class | 7.4 | 6.2 |
Net Other Assets | | |
Net Other Assets * | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 37.9% | |
| Developed International Equity Funds | 11.1% | |
| Emerging Markets Equity Funds | 1.1% | |
| High Yield Bond Funds | 5.5% | |
| Investment Grade Bond Funds | 37.0% | |
| Short-Term Funds | 7.4% | |
Six months ago |
| Domestic Equity Funds | 42.4% | |
| Developed International Equity Funds | 10.3% | |
| Investment Grade Bond Funds | 35.0% | |
| High Yield Bond Funds | 6.1% | |
| Short-Term Funds | 6.2% | |
Expected |
| Domestic Equity Funds | 36.0% | |
| Developed International Equity Funds | 11.1% | |
| Emerging Markets Equity Funds | 2.0% | |
| High Yield Bond Funds | 5.4% | |
| Investment Grade Bond Funds | 37.5% | |
| Short-Term Funds | 8.0% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Freedom Lifetime Income II Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 37.9% |
| Shares | | Value |
Domestic Equity Funds - 37.9% |
VIP Contrafund Portfolio Investor Class | 41,712 | | $ 800,044 |
VIP Equity-Income Portfolio Investor Class | 59,840 | | 930,516 |
VIP Growth & Income Portfolio Investor Class | 91,627 | | 930,928 |
VIP Growth Portfolio Investor Class | 32,756 | | 931,574 |
VIP Mid Cap Portfolio Investor Class | 12,960 | | 334,109 |
VIP Value Portfolio Investor Class | 88,308 | | 799,187 |
VIP Value Strategies Portfolio Investor Class | 44,179 | | 333,555 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $7,565,000) | 5,059,913 |
International Equity Funds - 12.2% |
| | | |
Developed International Equity Funds - 11.1% |
VIP Overseas Portfolio Investor Class R | 114,452 | | 1,484,443 |
Emerging Markets Equity Funds - 1.1% |
VIP Emerging Markets Portfolio Investor Class R | 18,329 | | 143,150 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $2,469,722) | 1,627,593 |
Bond Funds - 42.5% |
| Shares | | Value |
High Yield Bond Funds - 5.5% |
VIP High Income Portfolio Investor Class | 136,020 | | $ 741,311 |
Investment Grade Bond Funds - 37.0% |
VIP Investment Grade Bond Portfolio Investor Class | 376,711 | | 4,946,216 |
TOTAL BOND FUNDS (Cost $5,576,861) | 5,687,527 |
Short-Term Funds - 7.4% |
| | | |
VIP Money Market Portfolio Investor Class
(Cost $993,941) | 993,941 | | 993,941 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $16,605,524) | | 13,368,974 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (12) |
NET ASSETS - 100% | $ 13,368,962 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At December 31, 2009, the Fund had a capital loss carryforward of approximately $503,077 all of which will expire on December 31, 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom Lifetime Income II Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $16,605,524) - See accompanying schedule | | $ 13,368,974 |
Receivable for investments sold | | 221 |
Total assets | | 13,369,195 |
| | |
Liabilities | | |
Payable for investments purchased | $ 11 | |
Payable for fund shares redeemed | 222 | |
Total liabilities | | 233 |
| | |
Net Assets | | $ 13,368,962 |
Net Assets consist of: | | |
Paid in capital | | $ 17,413,130 |
Undistributed net investment income | | 7,486 |
Accumulated undistributed net realized gain (loss) on investments | | (815,104) |
Net unrealized appreciation (depreciation) on investments | | (3,236,550) |
Net Assets, for 1,521,902 shares outstanding | | $ 13,368,962 |
Net Asset Value, offering price and redemption price per share ($13,368,962 ÷ 1,521,902 shares) | | $ 8.78 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 5,703 |
| | |
Expenses | | |
Independent trustees' compensation | $ 24 | |
Total expenses before reductions | 24 | |
Expense reductions | (24) | 0 |
Net investment income (loss) | | 5,703 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (172,379) | |
Capital gain distributions from underlying funds | 1,631 | (170,748) |
Change in net unrealized appreciation (depreciation) on underlying funds | | 12,324 |
Net gain (loss) | | (158,424) |
Net increase (decrease) in net assets resulting from operations | | $ (152,721) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended
June 30, 2010
(Unaudited) | Year ended
December 31,
2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 5,703 | $ 543,711 |
Net realized gain (loss) | (170,748) | (339,797) |
Change in net unrealized appreciation (depreciation) | 12,324 | 2,797,474 |
Net increase (decrease) in net assets resulting from operations | (152,721) | 3,001,388 |
Distributions to shareholders from net investment income | - | (553,060) |
Distributions to shareholders from net realized gain | (7,901) | (152,952) |
Total distributions | (7,901) | (706,012) |
Share transactions
Proceeds from sales of shares | 389,726 | 997,755 |
Reinvestment of distributions | 7,901 | 706,012 |
Cost of shares redeemed | (1,040,418) | (2,718,682) |
Net increase (decrease) in net assets resulting from share transactions | (642,791) | (1,014,915) |
Total increase (decrease) in net assets | (803,413) | 1,280,461 |
Net Assets | | |
Beginning of period | 14,172,375 | 12,891,914 |
End of period (including undistributed net investment income of $7,486 and undistributed net investment income of $1,783, respectively) | $ 13,368,962 | $ 14,172,375 |
Other Information Shares | | |
Sold | 42,868 | 117,471 |
Issued in reinvestment of distributions | 903 | 84,626 |
Redeemed | (114,349) | (346,280) |
Net increase (decrease) | (70,578) | (144,183) |
Financial Highlights
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.90 | $ 7.42 | $ 11.68 | $ 11.36 | $ 10.37 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .34 | .29 | .32 | .23 | .10 |
Net realized and unrealized gain (loss) | (.11) | 1.59 | (3.57) | .77 | .95 | .40 |
Total from investment operations | (.11) | 1.93 | (3.28) | 1.09 | 1.18 | .50 |
Distributions from net investment income | - | (.36) | (.34) | (.30) | (.14) | (.06) |
Distributions from net realized gain | (.01) | (.09) | (.64) | (.48) | (.05) | (.07) |
Total distributions | (.01) | (.45) | (.98) | (.77) J | (.19) | (.13) |
Net asset value, end of period | $ 8.78 | $ 8.90 | $ 7.42 | $ 11.68 | $ 11.36 | $ 10.37 |
Total Return B, C, D | (1.29)% | 26.44% | (28.49)% | 9.67% | 11.38% | 5.00% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions K | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .08% A | 4.25% | 2.91% | 2.67% | 2.12% | 2.18% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 13,369 | $ 14,172 | $ 12,892 | $ 22,701 | $ 17,221 | $ 2,366 |
Portfolio turnover rate | 26% A | 21% | 25% | 18% | 16% | 69% |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period July 26, 2005 (commencement of operations) to December 31, 2005.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
I Amount represents less than $.01 per share.
J Total distributions of $.77 per share is comprised of distributions from net investment income of $.295 and distributions from net realized gain of $.475 per share.
K Amount represents less than .01%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom Lifetime Income III Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 8.4 | 9.1 |
VIP Equity-Income Portfolio Investor Class | 9.7 | 10.4 |
VIP Growth & Income Portfolio Investor Class | 9.7 | 10.5 |
VIP Growth Portfolio Investor Class | 9.8 | 10.6 |
VIP Mid Cap Portfolio Investor Class | 3.5 | 3.8 |
VIP Value Portfolio Investor Class | 8.4 | 8.8 |
VIP Value Strategies Portfolio Investor Class | 3.5 | 3.7 |
| 53.0 | 56.9 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 15.6 | 13.9 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 1.5 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 7.5 | 7.7 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 22.4 | 21.5 |
Net Other Assets | | |
Net Other Assets * | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 53.0% | |
 | Developed International Equity Funds | 15.6% | |
 | Emerging Markets Equity Funds | 1.5% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade Bond Funds | 22.4% | |
Six months ago |
| Domestic Equity Funds | 56.9% | |
| Developed International Equity Funds | 13.9% | |
| Investment Grade Bond Funds | 21.5% | |
| High Yield Bond Funds | 7.7% | |
| Short-Term Funds * | 0.0% | |
Expected |
| Domestic Equity Funds | 51.4% | |
| Developed International Equity Funds | 15.9% | |
| Emerging Markets Equity Funds | 2.9% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade Bond Funds | 22.3% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Freedom Lifetime Income III Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 53.0% |
| Shares | | Value |
Domestic Equity Funds - 53.0% |
VIP Contrafund Portfolio Investor Class | 25,985 | | $ 498,392 |
VIP Equity-Income Portfolio Investor Class | 37,258 | | 579,354 |
VIP Growth & Income Portfolio Investor Class | 57,048 | | 579,611 |
VIP Growth Portfolio Investor Class | 20,394 | | 580,013 |
VIP Mid Cap Portfolio Investor Class | 8,068 | | 207,997 |
VIP Value Portfolio Investor Class | 55,012 | | 497,858 |
VIP Value Strategies Portfolio Investor Class | 27,504 | | 207,652 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $4,619,439) | 3,150,877 |
International Equity Funds - 17.1% |
| | | |
Developed International Equity Funds - 15.6% |
VIP Overseas Portfolio Investor Class R | 71,278 | | 924,470 |
Emerging Markets Equity Funds - 1.5% |
VIP Emerging Markets Portfolio Investor Class R | 11,363 | | 88,742 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $1,497,053) | 1,013,212 |
Bond Funds - 29.9% |
| Shares | | Value |
High Yield Bond Funds - 7.5% |
VIP High Income Portfolio Investor Class | 82,125 | | $ 447,582 |
Investment Grade Bond Funds - 22.4% |
VIP Investment Grade Bond Portfolio Investor Class | 101,224 | | 1,329,069 |
TOTAL BOND FUNDS (Cost $1,786,352) | 1,776,651 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $7,902,844) | | 5,940,740 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (4) |
NET ASSETS - 100% | $ 5,940,736 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Freedom Lifetime Income III Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $7,902,844) - See accompanying schedule | | $ 5,940,740 |
Receivable for investments sold | | 99 |
Total assets | | 5,940,839 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1 | |
Payable for fund shares redeemed | 102 | |
Total liabilities | | 103 |
| | |
Net Assets | | $ 5,940,736 |
Net Assets consist of: | | |
Paid in capital | | $ 8,006,226 |
Undistributed net investment income | | 1,825 |
Accumulated undistributed net realized gain (loss) on investments | | (105,211) |
Net unrealized appreciation (depreciation) on investments | | (1,962,104) |
Net Assets, for 743,777 shares outstanding | | $ 5,940,736 |
Net Asset Value, offering price and redemption price per share ($5,940,736 ÷ 743,777 shares) | | $ 7.99 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 1,825 |
| | |
Expenses | | |
Independent trustees' compensation | $ 11 | |
Total expenses before reductions | 11 | |
Expense reductions | (11) | 0 |
Net investment income (loss) | | 1,825 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (53,339) | |
Capital gain distributions from underlying funds | 1,026 | (52,313) |
Change in net unrealized appreciation (depreciation) on underlying funds | | (142,161) |
Net gain (loss) | | (194,474) |
Net increase (decrease) in net assets resulting from operations | | $ (192,649) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010 (Unaudited) | Year ended December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,825 | $ 194,683 |
Net realized gain (loss) | (52,313) | 126,982 |
Change in net unrealized appreciation (depreciation) | (142,161) | 1,269,902 |
Net increase (decrease) in net assets resulting from operations | (192,649) | 1,591,567 |
Distributions to shareholders from net investment income | - | (200,408) |
Distributions to shareholders from net realized gain | (11,931) | (137,423) |
Total distributions | (11,931) | (337,831) |
Share transactions
Proceeds from sales of shares | - | 80,366 |
Reinvestment of distributions | 11,931 | 337,830 |
Cost of shares redeemed | (496,647) | (461,358) |
Net increase (decrease) in net assets resulting from share transactions | (484,716) | (43,162) |
Total increase (decrease) in net assets | (689,296) | 1,210,574 |
Net Assets | | |
Beginning of period | 6,630,032 | 5,419,458 |
End of period (including undistributed net investment income of $1,825 and undistributed net investment income of $0, respectively) | $ 5,940,736 | $ 6,630,032 |
Other Information Shares | | |
Sold | - | 10,878 |
Issued in reinvestment of distributions | 1,480 | 44,489 |
Redeemed | (58,191) | (60,863) |
Net increase (decrease) | (56,711) | (5,496) |
Financial Highlights
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.28 | $ 6.72 | $ 11.90 | $ 11.56 | $ 10.48 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .24 | .24 | .29 | .19 | .11 |
Net realized and unrealized gain (loss) | (.27) | 1.76 | (4.36) | .96 | 1.15 | .50 |
Total from investment operations | (.27) | 2.00 | (4.12) | 1.25 | 1.34 | .61 |
Distributions from net investment income | - | (.26) | (.27) | (.29) | (.15) | (.06) |
Distributions from net realized gain | (.02) | (.18) | (.79) | (.62) | (.11) | (.07) |
Total distributions | (.02) | (.44) | (1.06) | (.91) | (.26) | (.13) |
Net asset value, end of period | $ 7.99 | $ 8.28 | $ 6.72 | $ 11.90 | $ 11.56 | $ 10.48 |
Total Return B, C, D | (3.32)% | 30.34% | (35.25)% | 10.88% | 12.78% | 6.10% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions J | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .06% A | 3.33% | 2.43% | 2.41% | 1.76% | 2.39% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 5,941 | $ 6,630 | $ 5,419 | $ 11,085 | $ 8,835 | $ 2,958 |
Portfolio turnover rate | 19% A | 10% | 20% | 11% | 15% | 59% |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period July 26, 2005 (commencement of operations) to December 31, 2005.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests.
I Amount represents less than $.01 per share.
J Amount represents less than .01%.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2010 (Unaudited)
1. Organization.
VIP Freedom Lifetime Income I Portfolio, VIP Freedom Lifetime Income II Portfolio, and VIP Freedom Lifetime Income III Portfolio (the Funds) are funds of Variable Insurance Products Fund V. The Variable Insurance Products Fund V (the Trust) (referred to in this report as Fidelity Variable Insurance Products) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each Fund is authorized to issue an unlimited number of shares. The Funds invest primarily in a combination of other VIP equity, bond and short-term funds (the Underlying Funds) managed by Fidelity Management & Research Company (FMR). Shares of each Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts.
2. Significant Accounting Policies.
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. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund categorizes the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows. Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date. Distributions from the Underlying Funds that are deemed to be return of capital are recorded as a reduction of cost of investments.
Expenses. Most expenses of the Trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned amongst each fund in the Trust. Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses associated with the Underlying Funds. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
Distributions are recorded on the ex-dividend date. 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) |
VIP Freedom Lifetime Income I | $ 10,924,108 | $ 149,655 | $ (1,751,107) | $ (1,601,452) |
VIP Freedom Lifetime Income II | 16,727,696 | 241,373 | (3,600,095) | (3,358,722) |
VIP Freedom Lifetime Income III | 7,937,741 | 73,373 | (2,070,374) | (1,997,001) |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
3. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
VIP Freedom Lifetime Income I | 1,823,074 | 1,191,107 |
VIP Freedom Lifetime Income II | 1,820,249 | 2,463,129 |
VIP Freedom Lifetime Income III | 614,637 | 1,108,137 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (Strategic Advisers), an affiliate of FMR, provides the Funds with investment management related services. The Funds do not pay any fees for these services.
Other Transactions. Strategic Advisers has entered into an administration agreement with FMR under which FMR provides management and administrative services (other than investment advisory services) necessary for the operation of each Fund. Pursuant to this agreement, FMR pays all expenses of each Fund, excluding the compensation of the independent Trustees and certain other expenses such as interest expense. FMR also contracts with other Fidelity companies to perform the services necessary for the operation of each Fund. The Funds do not pay any fees for these services.
5. Expense Reductions.
FMR voluntarily agreed to reimburse Funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
The following Funds were in reimbursement during the period:
| Expense Limitations | Reimbursement
from adviser |
VIP Freedom Lifetime Income I | .00% | $ 15 |
VIP Freedom Lifetime Income II | .00% | $ 24 |
VIP Freedom Lifetime Income III | .00% | $ 11 |
6. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
At the end of the period, FMR or its affiliates were owners of record of all of the outstanding shares of the Funds.
Semiannual Report
Investment Adviser
Strategic Advisers, Inc.
Boston, MA
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
VIPFLI-SANN-0810
1.816202.104
Fidelity® Variable Insurance Products:
FundsManager - 20%, 50%, 60%, 70%, 85% Portfolio
Semiannual Report
June 30, 2010(2_fidelity_logos) (Registered_Trademark)
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.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including 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 the Funds 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 (January 1, 2010 to June 30, 2010).
Actual Expenses
The first line of the accompanying table for each class of each fund 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 of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' 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. 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. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
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.
|
Annualized
Expense Ratio
|
Beginning
Account Value
January 1, 2010
|
Ending
Account Value
June 30, 2010
| Expenses Paid
During Period*
January 1, 2010 to
June 30, 2010 |
VIP FundsManager 20% Portfolio | | | | |
Service Class | .20% | | | |
Actual | | $ 1,000.00 | $ 1,008.90 | $ 1.00 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
Service Class 2 | .35% | | | |
Actual | | $ 1,000.00 | $ 1,008.00 | $ 1.74 |
Hypothetical A | | $ 1,000.00 | $ 1,023.06 | $ 1.76 |
Investor Class | .20% | | | |
Actual | | $ 1,000.00 | $ 1,008.90 | $ 1.00 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
VIP FundsManager 50% Portfolio | | | | |
Service Class | .20% | | | |
Actual | | $ 1,000.00 | $ 981.30 | $ .98 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
Service Class 2 | .35% | | | |
Actual | | $ 1,000.00 | $ 980.20 | $ 1.72 |
Hypothetical A | | $ 1,000.00 | $ 1,023.06 | $ 1.76 |
Investor Class | .20% | | | |
Actual | | $ 1,000.00 | $ 981.30 | $ .98 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
VIP FundsManager 60% Portfolio | | | | |
Service Class | .20% | | | |
Actual | | $ 1,000.00 | $ 971.70 | $ .98 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
Service Class 2 | .35% | | | |
Actual | | $ 1,000.00 | $ 971.70 | $ 1.71 |
Hypothetical A | | $ 1,000.00 | $ 1,023.06 | $ 1.76 |
Investor Class | .20% | | | |
Actual | | $ 1,000.00 | $ 972.80 | $ .98 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
VIP FundsManager 70% Portfolio | | | | |
Service Class | .20% | | | |
Actual | | $ 1,000.00 | $ 959.60 | $ .97 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
Service Class 2 | .35% | | | |
Actual | | $ 1,000.00 | $ 958.40 | $ 1.70 |
Hypothetical A | | $ 1,000.00 | $ 1,023.06 | $ 1.76 |
Investor Class | .20% | | | |
Actual | | $ 1,000.00 | $ 958.40 | $ .97 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
VIP FundsManager 85% Portfolio | | | | |
Service Class | .20% | | | |
Actual | | $ 1,000.00 | $ 943.30 | $ .96 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
Service Class 2 | .35% | | | |
Actual | | $ 1,000.00 | $ 943.10 | $ 1.69 |
HypotheticalA | | $ 1,000.00 | $ 1,023.06 | $ 1.76 |
Investor Class | .20% | | | |
Actual | | $ 1,000.00 | $ 944.50 | $ .96 |
Hypothetical A | | $ 1,000.00 | $ 1,023.80 | $ 1.00 |
A 5% return per year before expenses
* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Fund invests are not included in each class' annualized expense ratio.
Semiannual Report
VIP FundsManager 20% Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity 130/30 Large Cap Fund | 0.0* | 0.0* |
Fidelity Blue Chip Growth Fund | 0.1 | 0.1 |
Fidelity Contrafund | 0.0* | 0.0* |
Fidelity Disciplined Equity Fund | 0.0* | 0.0* |
Fidelity Dividend Growth Fund | 0.7 | 0.5 |
Fidelity Equity-Income Fund | 0.0* | 0.1 |
Fidelity Equity-Income II Fund | 0.0* | 0.0* |
Fidelity Fund | 0.0* | 0.0* |
Fidelity Growth Company Fund | 0.0* | 0.5 |
Fidelity Independence Fund | 0.0* | 0.0* |
Fidelity Large Cap Stock Fund | 0.4 | 0.1 |
Fidelity Large Cap Value Fund | 0.0* | 0.0* |
Fidelity Leveraged Company Stock Fund | 0.0* | 0.0* |
Fidelity Magellan Fund | 0.0* | 0.0* |
Fidelity Mega Cap Stock Fund | 0.3 | 0.0* |
Fidelity Mid-Cap Stock Fund | 0.0* | 0.0* |
Fidelity Real Estate Investment Portfolio | 0.3 | 0.2 |
Fidelity Select Air Transportation Portfolio | 0.1 | 0.1 |
Fidelity Select Automotive Portfolio | 0.0* | 0.0* |
Fidelity Select Banking Portfolio | 0.4 | 0.4 |
Fidelity Select Biotechnology Portfolio | 0.0* | 0.3 |
Fidelity Select Brokerage & Investment Management Portfolio | 0.2 | 0.4 |
Fidelity Select Chemicals Portfolio | 0.1 | 0.1 |
Fidelity Select Communications Equipment Portfolio | 0.1 | 0.0 |
Fidelity Select Computers Portfolio | 0.5 | 0.5 |
Fidelity Select Construction & Housing Portfolio | 0.2 | 0.2 |
Fidelity Select Consumer Discretionary Portfolio | 0.8 | 0.5 |
Fidelity Select Consumer Staples Portfolio | 1.5 | 1.2 |
Fidelity Select Defense & Aerospace Portfolio | 0.0* | 0.0* |
Fidelity Select Electronics Portfolio | 0.1 | 0.1 |
Fidelity Select Energy Portfolio | 1.1 | 1.4 |
Fidelity Select Energy Service Portfolio | 0.1 | 0.1 |
Fidelity Select Environmental Portfolio | 0.1 | 0.2 |
Fidelity Select Financial Services Portfolio | 0.8 | 0.6 |
|
| % of fund's
net assets | % of fund's net assets
6 months ago |
Fidelity Select Gold Portfolio | 0.7 | 0.2 |
Fidelity Select Health Care Portfolio | 0.3 | 0.2 |
Fidelity Select Industrial Equipment Portfolio | 0.1 | 0.1 |
Fidelity Select Industrials Portfolio | 1.1 | 0.8 |
Fidelity Select Insurance Portfolio | 0.6 | 0.4 |
Fidelity Select IT Services Portfolio | 0.1 | 0.2 |
Fidelity Select Leisure Portfolio | 0.0* | 0.2 |
Fidelity Select Materials Portfolio | 0.2 | 0.2 |
Fidelity Select Medical Delivery Portfolio | 0.4 | 0.4 |
Fidelity Select Medical Equipment & Systems Portfolio | 0.1 | 0.1 |
Fidelity Select Multimedia Portfolio | 0.1 | 0.1 |
Fidelity Select Natural Resources Portfolio | 0.0* | 0.0* |
Fidelity Select Pharmaceuticals Portfolio | 0.8 | 0.7 |
Fidelity Select Retailing Portfolio | 0.2 | 0.2 |
Fidelity Select Software & Computer Services Portfolio | 0.4 | 0.5 |
Fidelity Select Technology Portfolio | 1.2 | 1.0 |
Fidelity Select Telecommunications Portfolio | 0.3 | 0.4 |
Fidelity Select Transportation Portfolio | 0.1 | 0.1 |
Fidelity Select Utilities Portfolio | 0.4 | 0.4 |
Fidelity Series Commodity Strategy Fund | 0.0* | 0.0 |
Fidelity Small Cap Growth Fund | 0.0* | 0.0* |
Fidelity Small Cap Stock Fund | 0.0* | 0.0* |
Fidelity Small Cap Value Fund | 0.4 | 0.4 |
Fidelity Telecom and Utilities Fund | 0.2 | 0.2 |
Spartan Extended Market Index Fund Investor Class | 0.1 | 0.1 |
Spartan Total Market Index Fund Investor Class | 0.0* | 0.4 |
VIP Mid Cap Portfolio Investor Class | 0.0* | 0.0* |
| 15.7 | 14.9 |
International Equity Funds | | |
Fidelity Canada Fund | 0.1 | 0.0 |
Fidelity Diversified International Fund | 0.2 | 1.4 |
Fidelity Emerging Markets Fund | 0.5 | 0.4 |
Fidelity International Capital Appreciation Fund | 0.3 | 0.4 |
Fidelity International Discovery Fund | 0.3 | 1.7 |
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Fidelity International Small Cap Fund | 0.2 | 0.0 |
Fidelity International Small Cap Opportunities Fund | 0.6 | 0.0* |
Fidelity International Value Fund | 0.0* | 0.0* |
Fidelity Japan Fund | 0.4 | 0.4 |
Fidelity Nordic Fund | 0.1 | 0.0 |
Fidelity Overseas Fund | 0.0* | 0.0* |
Fidelity Pacific Basin Fund | 0.1 | 0.0 |
Spartan International Index Fund Investor Class | 1.7 | 2.6 |
| 4.5 | 6.9 |
Fixed-Income Funds | | |
Fidelity Floating Rate High Income Fund | 1.5 | 0.0 |
Fidelity High Income Fund | 3.0 | 3.0 |
Fidelity New Markets Income Fund | 0.4 | 0.4 |
Fidelity Real Estate Income Fund | 0.6 | 0.0 |
Fidelity U.S. Bond Index Fund | 47.8 | 45.4 |
| 53.3 | 48.8 |
Money Market Funds | | |
Fidelity Institutional Money Market Portfolio Class I | 4.1 | 4.8 |
Fidelity Institutional Prime Money Market Portfolio Class I | 20.2 | 21.9 |
Fidelity Select Money Market Portfolio | 2.2 | 2.7 |
| 26.5 | 29.4 |
| | |
Net Other Assets (Liabilities) | 0.0* | 0.0* |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
As of June 30, 2010 |
| Domestic Equity Funds | 15.7% | |
| International Equity Funds | 4.5% | |
| Fixed Income Funds | 53.3% | |
| Money Market Funds | 26.5% | |
As of December 31, 2009 |
| Domestic Equity Funds | 14.9% | |
| International Equity Funds | 6.9% | |
| Fixed Income Funds | 48.8% | |
| Money Market Funds | 29.4% | |
Semiannual Report
VIP FundsManager 20% Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 20.2% |
| Shares | | Value |
Domestic Equity Funds - 15.7% |
Fidelity 130/30 Large Cap Fund | 2,952 | | $ 17,710 |
Fidelity Blue Chip Growth Fund | 8,963 | | 315,302 |
Fidelity Contrafund | 1,789 | | 99,107 |
Fidelity Disciplined Equity Fund | 2,023 | | 39,141 |
Fidelity Dividend Growth Fund | 98,530 | | 2,170,619 |
Fidelity Equity-Income Fund | 655 | | 23,789 |
Fidelity Equity-Income II Fund | 671 | | 10,080 |
Fidelity Fund | 635 | | 16,562 |
Fidelity Growth Company Fund | 1,100 | | 71,214 |
Fidelity Independence Fund | 309 | | 5,714 |
Fidelity Large Cap Stock Fund | 80,092 | | 1,120,484 |
Fidelity Large Cap Value Fund | 9,669 | | 87,216 |
Fidelity Leveraged Company Stock Fund | 192 | | 4,174 |
Fidelity Magellan Fund | 372 | | 21,884 |
Fidelity Mega Cap Stock Fund | 121,062 | | 981,812 |
Fidelity Mid-Cap Stock Fund | 1,937 | | 43,376 |
Fidelity Real Estate Investment Portfolio | 43,552 | | 925,914 |
Fidelity Select Air Transportation Portfolio (a) | 6,448 | | 220,067 |
Fidelity Select Automotive Portfolio | 2,779 | | 81,260 |
Fidelity Select Banking Portfolio | 89,436 | | 1,429,187 |
Fidelity Select Biotechnology Portfolio (a) | 1,153 | | 69,838 |
Fidelity Select Brokerage & Investment Management Portfolio | 13,843 | | 590,973 |
Fidelity Select Chemicals Portfolio | 4,686 | | 304,417 |
Fidelity Select Communications Equipment Portfolio | 17,898 | | 355,986 |
Fidelity Select Computers Portfolio (a) | 37,337 | | 1,622,302 |
Fidelity Select Construction & Housing Portfolio | 17,713 | | 489,763 |
Fidelity Select Consumer Discretionary Portfolio | 130,284 | | 2,429,798 |
Fidelity Select Consumer Staples Portfolio | 83,486 | | 4,797,965 |
Fidelity Select Defense & Aerospace Portfolio | 1,185 | | 71,796 |
Fidelity Select Electronics Portfolio | 6,797 | | 252,998 |
Fidelity Select Energy Portfolio | 96,864 | | 3,620,782 |
Fidelity Select Energy Service Portfolio | 7,389 | | 363,033 |
Fidelity Select Environmental Portfolio | 10,725 | | 156,042 |
Fidelity Select Financial Services Portfolio | 48,976 | | 2,649,100 |
Fidelity Select Gold Portfolio | 47,788 | | 2,255,117 |
Fidelity Select Health Care Portfolio | 9,372 | | 964,280 |
Fidelity Select Industrial Equipment Portfolio | 12,398 | | 311,182 |
Fidelity Select Industrials Portfolio | 194,846 | | 3,501,375 |
Fidelity Select Insurance Portfolio | 43,811 | | 1,773,925 |
Fidelity Select IT Services Portfolio (a) | 27,264 | | 446,581 |
Fidelity Select Leisure Portfolio | 1,056 | | 74,189 |
Fidelity Select Materials Portfolio | 11,831 | | 564,675 |
Fidelity Select Medical Delivery Portfolio (a) | 31,868 | | 1,321,895 |
|
| Shares | | Value |
Fidelity Select Medical Equipment & Systems Portfolio (a) | 13,553 | | $ 319,840 |
Fidelity Select Multimedia Portfolio | 9,890 | | 333,974 |
Fidelity Select Natural Resources Portfolio | 3,112 | | 77,541 |
Fidelity Select Pharmaceuticals Portfolio | 257,822 | | 2,704,548 |
Fidelity Select Retailing Portfolio | 12,864 | | 524,588 |
Fidelity Select Software & Computer Services Portfolio (a) | 18,363 | | 1,244,460 |
Fidelity Select Technology Portfolio (a) | 52,415 | | 3,693,131 |
Fidelity Select Telecommunications Portfolio | 29,634 | | 1,110,697 |
Fidelity Select Transportation Portfolio | 6,926 | | 306,758 |
Fidelity Select Utilities Portfolio | 28,110 | | 1,182,288 |
Fidelity Series Commodity Strategy Fund | 885 | | 8,796 |
Fidelity Small Cap Growth Fund (a) | 7,945 | | 96,612 |
Fidelity Small Cap Stock Fund (a) | 3,102 | | 46,871 |
Fidelity Small Cap Value Fund | 94,004 | | 1,191,027 |
Fidelity Telecom and Utilities Fund | 37,675 | | 506,725 |
Spartan Extended Market Index Fund Investor Class | 5,950 | | 177,193 |
Spartan Total Market Index Fund Investor Class | 3,278 | | 97,257 |
VIP Mid Cap Portfolio Investor Class | 79 | | 2,031 |
TOTAL DOMESTIC EQUITY FUNDS | | 50,296,961 |
International Equity Funds - 4.5% |
Fidelity Canada Fund | 8,755 | | 410,100 |
Fidelity Diversified International Fund | 29,860 | | 725,598 |
Fidelity Emerging Markets Fund | 69,554 | | 1,443,253 |
Fidelity International Capital Appreciation Fund | 89,965 | | 902,345 |
Fidelity International Discovery Fund | 36,414 | | 956,596 |
Fidelity International Small Cap Fund | 39,296 | | 648,783 |
Fidelity International Small Cap Opportunities Fund | 247,848 | | 2,007,569 |
Fidelity International Value Fund | 759 | | 5,085 |
Fidelity Japan Fund | 137,945 | | 1,331,168 |
Fidelity Nordic Fund | 6,088 | | 154,946 |
Fidelity Overseas Fund | 417 | | 10,843 |
Fidelity Pacific Basin Fund | 15,878 | | 324,379 |
Spartan International Index Fund Investor Class | 195,808 | | 5,623,612 |
TOTAL INTERNATIONAL EQUITY FUNDS | | 14,544,277 |
TOTAL EQUITY FUNDS (Cost $62,987,654) | 64,841,238 |
Fixed-Income Funds - 53.3% |
| | | |
Fidelity Floating Rate High Income Fund | 520,734 | | 4,889,691 |
Fidelity High Income Fund | 1,154,193 | | 9,729,846 |
Fidelity New Markets Income Fund | 74,092 | | 1,129,901 |
Fixed-Income Funds - continued |
| Shares | | Value |
Fidelity Real Estate Income Fund | 199,127 | | $ 1,925,559 |
Fidelity U.S. Bond Index Fund | 13,430,751 | | 153,916,400 |
TOTAL FIXED-INCOME FUNDS (Cost $163,177,420) | 171,591,397 |
Money Market Funds - 26.5% |
| | | |
Fidelity Institutional Money Market Portfolio Class I | 13,130,743 | | 13,130,743 |
Fidelity Institutional Prime Money Market Portfolio Class I | 65,023,577 | | 65,023,577 |
Fidelity Select Money Market Portfolio | 7,236,861 | | 7,236,861 |
TOTAL MONEY MARKET FUNDS (Cost $85,391,181) | 85,391,181 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $311,556,255) | 321,823,816 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (53,218) |
NET ASSETS - 100% | $ 321,770,598 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At December 31, 2009, the Fund had a capital loss carryforward of approximately $12,991,506 of which $7,951,394 and $5,040,112 will expire on December 31, 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 20% Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $311,556,255) - See accompanying schedule | | $ 321,823,816 |
Receivable for fund shares sold | | 105,438 |
Total assets | | 321,929,254 |
| | |
Liabilities | | |
Payable for investments purchased | $ 104,996 | |
Payable for fund shares redeemed | 442 | |
Accrued management fee | 53,163 | |
Distribution fees payable | 55 | |
Total liabilities | | 158,656 |
| | |
Net Assets | | $ 321,770,598 |
Net Assets consist of: | | |
Paid in capital | | $ 323,181,476 |
Undistributed net investment income | | 2,410,448 |
Accumulated undistributed net realized gain (loss) on investments | | (14,088,887) |
Net unrealized appreciation (depreciation) on investments | | 10,267,561 |
Net Assets | | $ 321,770,598 |
Statement of Assets and Liabilities - continued
| June 30, 2010 (Unaudited) |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($63,215 ÷ 6,225 shares) | | $ 10.16 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($449,492 ÷ 44,327 shares) | | $ 10.14 |
| | |
Investor Class:
Net Asset Value, offering price and redemption price per share ($321,257,891 ÷ 31,648,594 shares) | | $ 10.15 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 20% Portfolio
Financial Statements - continued
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 2,713,300 |
| | |
Expenses | | |
Management fee | $ 377,856 | |
Distribution fees | 508 | |
Independent trustees' compensation | 499 | |
Total expenses before reductions | 378,863 | |
Expense reductions | (76,011) | 302,852 |
Net investment income (loss) | | 2,410,448 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 105,798 | |
Capital gain distributions from underlying funds | 47,556 | 153,354 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (375,362) |
Net gain (loss) | | (222,008) |
Net increase (decrease) in net assets resulting from operations | | $ 2,188,440 |
Statement of Changes in Net Assets
| Six months ended
June 30, 2010
(Unaudited) | Year ended
December 31,
2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 2,410,448 | $ 4,232,847 |
Net realized gain (loss) | 153,354 | (3,236,878) |
Change in net unrealized appreciation (depreciation) | (375,362) | 18,437,148 |
Net increase (decrease) in net assets resulting from operations | 2,188,440 | 19,433,117 |
Distributions to shareholders from net investment income | - | (4,256,815) |
Distributions to shareholders from net realized gain | - | (158,646) |
Total distributions | - | (4,415,461) |
Share transactions - net increase (decrease) | 48,244,226 | 103,034,500 |
Total increase (decrease) in net assets | 50,432,666 | 118,052,156 |
| | |
Net Assets | | |
Beginning of period | 271,337,932 | 153,285,776 |
End of period (including undistributed net investment income of $2,410,448 and $0, respectively) | $ 321,770,598 | $ 271,337,932 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.07 | $ 9.27 | $ 10.48 | $ 10.34 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .08 | .21 | .34 | .45 | .33 |
Net realized and unrealized gain (loss) | .01 K | .76 | (1.21) | .18 | .20 |
Total from investment operations | .09 | .97 | (.87) | .63 | .53 |
Distributions from net investment income | - | (.16) | (.30) | (.29) | (.14) |
Distributions from net realized gain | - | (.01) | (.04) | (.20) | (.05) |
Total distributions | - | (.17) J | (.34) I | (.49) | (.19) |
Net asset value, end of period | $ 10.16 | $ 10.07 | $ 9.27 | $ 10.48 | $ 10.34 |
Total Return B, C, D | .89% | 10.43% | (8.33)% | 6.12% | 5.34% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .35% A | .35% | .35% | .35% | .35% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% | .20% A |
Net investment income (loss) | 1.59% A | 2.19% | 3.33% | 4.20% | 4.52% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 63 | $ 61 | $ 88 | $ 112 | $ 105 |
Portfolio turnover rate | 16% A | 31% | 64% | 76% | 92% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.34 per share is comprised of distributions from net investment income of $.302 and distributions from net realized gain of $.035 per share.
J Total distributions of $.17 per share is comprised of distributions from net investment income of $.161 and distributions from net realized gain of $.006 per share.
K The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.06 | $ 9.28 | $ 10.48 | $ 10.34 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .07 | .20 | .32 | .43 | .32 |
Net realized and unrealized gain (loss) | .01 K | .74 | (1.20) | .18 | .20 |
Total from investment operations | .08 | .94 | (.88) | .61 | .52 |
Distributions from net investment income | - | (.16) | (.29) | (.27) | (.13) |
Distributions from net realized gain | - | (.01) | (.04) | (.20) | (.05) |
Total distributions | - | (.16) J | (.32) I | (.47) | (.18) |
Net asset value, end of period | $ 10.14 | $ 10.06 | $ 9.28 | $ 10.48 | $ 10.34 |
Total Return B, C, D | .80% | 10.14% | (8.40)% | 5.96% | 5.23% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .35% A | .35% | .35% | .35% | .35% A |
Expenses net of all reductions | .35% A | .35% | .35% | .35% | .35% A |
Net investment income (loss) | 1.44% A | 2.04% | 3.18% | 4.05% | 4.38% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 449 | $ 425 | $ 88 | $ 112 | $ 105 |
Portfolio turnover rate | 16% A | 31% | 64% | 76% | 92% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.32 per share is comprised of distributions from net investment income of $.285 and distributions from net realized gain of $.035 per share.
J Total distributions of $.16 per share is comprised of distributions from net investment income of $.155 and distributions from net realized gain of $.006 per share.
K The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Investor Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 10.06 | $ 9.27 | $ 10.48 | $ 10.34 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .08 | .21 | .33 | .45 | .33 |
Net realized and unrealized gain (loss) | .01 K | .75 | (1.20) | .18 | .20 |
Total from investment operations | .09 | .96 | (.87) | .63 | .53 |
Distributions from net investment income | - | (.16) | (.30) | (.29) | (.14) |
Distributions from net realized gain | - | (.01) | (.04) | (.20) | (.05) |
Total distributions | - | (.17) J | (.34) I | (.49) | (.19) |
Net asset value, end of period | $ 10.15 | $ 10.06 | $ 9.27 | $ 10.48 | $ 10.34 |
Total Return B, C, D | .89% | 10.32% | (8.33)% | 6.12% | 5.34% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% | .20% A |
Net investment income (loss) | 1.59% A | 2.19% | 3.33% | 4.20% | 4.52% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 321,258 | $ 270,852 | $ 153,110 | $ 115,963 | $ 24,045 |
Portfolio turnover rate | 16% A | 31% | 64% | 76% | 92% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.34 per share is comprised of distributions from net investment income of $.302 and distributions from net realized gain of $.035 per share.
J Total distributions of $.17 per share is comprised of distributions from net investment income of $.161 and distributions from net realized gain of $.006 per share.
K The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 50% Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity 130/30 Large Cap Fund | 0.0* | 0.0* |
Fidelity Blue Chip Growth Fund | 0.4 | 0.4 |
Fidelity Contrafund | 0.1 | 0.2 |
Fidelity Disciplined Equity Fund | 0.3 | 0.3 |
Fidelity Dividend Growth Fund | 1.4 | 2.0 |
Fidelity Equity-Income Fund | 0.5 | 0.5 |
Fidelity Equity-Income II Fund | 0.0* | 0.0* |
Fidelity Fund | 0.1 | 0.2 |
Fidelity Growth Company Fund | 0.8 | 0.9 |
Fidelity Independence Fund | 0.0* | 0.0* |
Fidelity Large Cap Stock Fund | 1.4 | 0.8 |
Fidelity Large Cap Value Fund | 0.2 | 0.3 |
Fidelity Leveraged Company Stock Fund | 0.0* | 0.0* |
Fidelity Magellan Fund | 0.0* | 0.0* |
Fidelity Mega Cap Stock Fund | 0.8 | 0.1 |
Fidelity Mid Cap Value Fund | 0.3 | 0.4 |
Fidelity Mid-Cap Stock Fund | 0.0* | 0.0* |
Fidelity Nasdaq Composite Index Fund | 0.1 | 0.1 |
Fidelity Real Estate Investment Portfolio | 0.6 | 0.6 |
Fidelity Select Air Transportation Portfolio | 0.2 | 0.2 |
Fidelity Select Automotive Portfolio | 0.0* | 0.0* |
Fidelity Select Banking Portfolio | 1.0 | 0.8 |
Fidelity Select Biotechnology Portfolio | 0.4 | 0.4 |
Fidelity Select Brokerage & Investment Management Portfolio | 0.5 | 0.7 |
Fidelity Select Chemicals Portfolio | 0.2 | 0.3 |
Fidelity Select Communications Equipment Portfolio | 0.1 | 0.0 |
Fidelity Select Computers Portfolio | 0.8 | 0.8 |
Fidelity Select Construction & Housing Portfolio | 0.4 | 0.4 |
Fidelity Select Consumer Discretionary Portfolio | 0.5 | 0.3 |
Fidelity Select Consumer Staples Portfolio | 2.7 | 2.7 |
Fidelity Select Defense & Aerospace Portfolio | 0.1 | 0.1 |
Fidelity Select Electronics Portfolio | 0.2 | 0.2 |
Fidelity Select Energy Portfolio | 2.6 | 3.1 |
Fidelity Select Energy Service Portfolio | 0.1 | 0.1 |
|
| % of fund's
net assets | % of fund's net assets
6 months ago |
Fidelity Select Environmental Portfolio | 0.2 | 0.3 |
Fidelity Select Financial Services Portfolio | 1.5 | 1.4 |
Fidelity Select Gold Portfolio | 1.2 | 0.6 |
Fidelity Select Health Care Portfolio | 0.4 | 0.3 |
Fidelity Select Industrial Equipment Portfolio | 0.3 | 0.3 |
Fidelity Select Industrials Portfolio | 1.6 | 1.5 |
Fidelity Select Insurance Portfolio | 0.9 | 0.9 |
Fidelity Select IT Services Portfolio | 0.3 | 0.4 |
Fidelity Select Leisure Portfolio | 0.5 | 0.5 |
Fidelity Select Materials Portfolio | 0.2 | 0.1 |
Fidelity Select Medical Delivery Portfolio | 1.0 | 1.0 |
Fidelity Select Medical Equipment & Systems Portfolio | 0.6 | 0.6 |
Fidelity Select Multimedia Portfolio | 0.4 | 0.4 |
Fidelity Select Natural Resources Portfolio | 0.1 | 0.1 |
Fidelity Select Pharmaceuticals Portfolio | 1.2 | 1.2 |
Fidelity Select Retailing Portfolio | 0.5 | 0.4 |
Fidelity Select Software & Computer Services Portfolio | 1.1 | 1.2 |
Fidelity Select Technology Portfolio | 1.9 | 2.0 |
Fidelity Select Telecommunications Portfolio | 0.7 | 0.7 |
Fidelity Select Transportation Portfolio | 0.2 | 0.2 |
Fidelity Select Utilities Portfolio | 0.5 | 0.4 |
Fidelity Series Commodity Strategy Fund | 0.0* | 0.0 |
Fidelity Small Cap Growth Fund | 0.2 | 0.2 |
Fidelity Small Cap Stock Fund | 0.0* | 0.0* |
Fidelity Small Cap Value Fund | 0.0* | 0.0* |
Fidelity Telecom and Utilities Fund | 0.8 | 0.9 |
Spartan 500 Index Fund Investor Class | 0.1 | 0.2 |
Spartan Extended Market Index Fund Investor Class | 1.4 | 1.5 |
Spartan Total Market Index Fund Investor Class | 1.6 | 1.7 |
VIP Mid Cap Portfolio Investor Class | 0.3 | 0.3 |
| 36.5 | 36.2 |
International Equity Funds | | |
Fidelity Canada Fund | 0.6 | 0.0 |
Fidelity China Region Fund | 0.1 | 0.2 |
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Fidelity Diversified International Fund | 1.0 | 2.1 |
Fidelity Emerging Markets Fund | 0.5 | 0.4 |
Fidelity International Capital Appreciation Fund | 0.5 | 0.6 |
Fidelity International Discovery Fund | 0.9 | 2.3 |
Fidelity International Small Cap Fund | 0.3 | 0.0 |
Fidelity International Small Cap Opportunities Fund | 0.9 | 0.0 |
Fidelity International Value Fund | 0.0* | 0.1 |
Fidelity Japan Fund | 0.5 | 0.5 |
Fidelity Nordic Fund | 0.1 | 0.0 |
Fidelity Overseas Fund | 0.0* | 0.0* |
Fidelity Pacific Basin Fund | 0.1 | 0.0 |
Spartan International Index Fund Investor Class | 7.4 | 9.3 |
| 12.9 | 15.5 |
Fixed-Income Funds | | |
Fidelity Floating Rate High Income Fund | 0.9 | 0.2 |
Fidelity High Income Fund | 1.8 | 1.6 |
Fidelity New Markets Income Fund | 0.4 | 0.4 |
Fidelity Real Estate Income Fund | 0.5 | 0.0 |
Fidelity U.S. Bond Index Fund | 39.4 | 36.7 |
| 43.0 | 38.9 |
Money Market Funds | | |
Fidelity Institutional Prime Money Market Portfolio Class I | 7.6 | 9.4 |
| | |
Net Other Assets (Liabilities) | 0.0* | 0.0* |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
As of June 30, 2010 |
| Domestic Equity Funds | 36.5% | |
| International Equity Funds | 12.9% | |
| Fixed Income Funds | 43.0% | |
| Money Market Funds | 7.6% | |
As of December 31, 2009 |
| Domestic Equity Funds | 36.2% | |
| International Equity Funds | 15.5% | |
| Fixed Income Funds | 38.9% | |
| Money Market Funds | 9.4% | |
Semiannual Report
VIP FundsManager 50% Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 49.4% |
| Shares | | Value |
Domestic Equity Funds - 36.5% |
Fidelity 130/30 Large Cap Fund | 11,814 | | $ 70,887 |
Fidelity Blue Chip Growth Fund | 56,857 | | 2,000,223 |
Fidelity Contrafund | 5,938 | | 328,886 |
Fidelity Disciplined Equity Fund | 74,058 | | 1,433,015 |
Fidelity Dividend Growth Fund | 349,720 | | 7,704,341 |
Fidelity Equity-Income Fund | 68,484 | | 2,486,656 |
Fidelity Equity-Income II Fund | 504 | | 7,574 |
Fidelity Fund | 15,981 | | 416,788 |
Fidelity Growth Company Fund | 68,420 | | 4,428,831 |
Fidelity Independence Fund | 974 | | 17,998 |
Fidelity Large Cap Stock Fund | 541,078 | | 7,569,675 |
Fidelity Large Cap Value Fund | 134,120 | | 1,209,765 |
Fidelity Leveraged Company Stock Fund | 754 | | 16,406 |
Fidelity Magellan Fund | 2,803 | | 164,957 |
Fidelity Mega Cap Stock Fund | 522,211 | | 4,235,130 |
Fidelity Mid Cap Value Fund | 147,777 | | 1,875,295 |
Fidelity Mid-Cap Stock Fund | 5,236 | | 117,227 |
Fidelity Nasdaq Composite Index Fund | 10,108 | | 283,420 |
Fidelity Real Estate Investment Portfolio | 161,840 | | 3,440,723 |
Fidelity Select Air Transportation Portfolio (a) | 24,517 | | 836,765 |
Fidelity Select Automotive Portfolio | 8,434 | | 246,601 |
Fidelity Select Banking Portfolio | 327,429 | | 5,232,312 |
Fidelity Select Biotechnology Portfolio (a) | 32,641 | | 1,976,397 |
Fidelity Select Brokerage & Investment Management Portfolio | 59,426 | | 2,536,890 |
Fidelity Select Chemicals Portfolio | 20,904 | | 1,357,908 |
Fidelity Select Communications Equipment Portfolio | 33,519 | | 666,699 |
Fidelity Select Computers Portfolio (a) | 98,981 | | 4,300,716 |
Fidelity Select Construction & Housing Portfolio | 75,487 | | 2,087,209 |
Fidelity Select Consumer Discretionary Portfolio | 150,470 | | 2,806,275 |
Fidelity Select Consumer Staples Portfolio | 254,178 | | 14,607,602 |
Fidelity Select Defense & Aerospace Portfolio | 4,681 | | 283,692 |
Fidelity Select Electronics Portfolio | 22,853 | | 850,575 |
Fidelity Select Energy Portfolio | 378,628 | | 14,153,118 |
Fidelity Select Energy Service Portfolio | 14,326 | | 703,835 |
Fidelity Select Environmental Portfolio | 87,398 | | 1,271,642 |
Fidelity Select Financial Services Portfolio | 154,183 | | 8,339,740 |
Fidelity Select Gold Portfolio | 132,957 | | 6,274,229 |
Fidelity Select Health Care Portfolio | 20,538 | | 2,113,157 |
Fidelity Select Industrial Equipment Portfolio | 73,667 | | 1,849,043 |
Fidelity Select Industrials Portfolio | 494,104 | | 8,879,054 |
Fidelity Select Insurance Portfolio | 122,706 | | 4,968,378 |
Fidelity Select IT Services Portfolio (a) | 106,686 | | 1,747,516 |
Fidelity Select Leisure Portfolio | 36,551 | | 2,568,446 |
Fidelity Select Materials Portfolio | 19,010 | | 907,343 |
Fidelity Select Medical Delivery Portfolio (a) | 137,590 | | 5,707,238 |
|
| Shares | | Value |
Fidelity Select Medical Equipment & Systems Portfolio (a) | 135,239 | | $ 3,191,651 |
Fidelity Select Multimedia Portfolio | 62,980 | | 2,126,844 |
Fidelity Select Natural Resources Portfolio | 13,615 | | 339,276 |
Fidelity Select Pharmaceuticals Portfolio | 648,188 | | 6,799,487 |
Fidelity Select Retailing Portfolio | 66,510 | | 2,712,277 |
Fidelity Select Software & Computer Services Portfolio (a) | 88,395 | | 5,990,498 |
Fidelity Select Technology Portfolio (a) | 148,557 | | 10,467,313 |
Fidelity Select Telecommunications Portfolio | 98,321 | | 3,685,077 |
Fidelity Select Transportation Portfolio | 27,559 | | 1,220,596 |
Fidelity Select Utilities Portfolio | 58,507 | | 2,460,809 |
Fidelity Series Commodity Strategy Fund | 885 | | 8,796 |
Fidelity Small Cap Growth Fund (a) | 92,383 | | 1,123,382 |
Fidelity Small Cap Stock Fund (a) | 7,638 | | 115,404 |
Fidelity Small Cap Value Fund | 7,774 | | 98,497 |
Fidelity Telecom and Utilities Fund | 329,201 | | 4,427,755 |
Spartan 500 Index Fund Investor Class | 21,310 | | 780,997 |
Spartan Extended Market Index Fund Investor Class | 264,801 | | 7,885,786 |
Spartan Total Market Index Fund Investor Class | 285,935 | | 8,483,687 |
VIP Mid Cap Portfolio Investor Class | 63,078 | | 1,626,148 |
TOTAL DOMESTIC EQUITY FUNDS | | 198,624,457 |
International Equity Funds - 12.9% |
Fidelity Canada Fund | 65,174 | | 3,052,749 |
Fidelity China Region Fund | 28,165 | | 728,336 |
Fidelity Diversified International Fund | 230,280 | | 5,595,794 |
Fidelity Emerging Markets Fund | 122,929 | | 2,550,775 |
Fidelity International Capital Appreciation Fund | 268,092 | | 2,688,967 |
Fidelity International Discovery Fund | 189,032 | | 4,965,875 |
Fidelity International Small Cap Fund | 86,276 | | 1,424,423 |
Fidelity International Small Cap Opportunities Fund | 622,746 | | 5,044,243 |
Fidelity International Value Fund | 48,364 | | 324,036 |
Fidelity Japan Fund | 282,102 | | 2,722,284 |
Fidelity Nordic Fund | 17,895 | | 455,425 |
Fidelity Overseas Fund | 275 | | 7,148 |
Fidelity Pacific Basin Fund | 32,634 | | 666,716 |
Spartan International Index Fund Investor Class | 1,405,758 | | 40,373,360 |
TOTAL INTERNATIONAL EQUITY FUNDS | | 70,600,131 |
TOTAL EQUITY FUNDS (Cost $257,032,702) | 269,224,588 |
Fixed-Income Funds - 43.0% |
| | | |
Fidelity Floating Rate High Income Fund | 549,542 | | 5,160,199 |
Fidelity High Income Fund | 1,141,804 | | 9,625,412 |
Fidelity New Markets Income Fund | 141,353 | | 2,155,632 |
Fixed-Income Funds - continued |
| Shares | | Value |
Fidelity Real Estate Income Fund | 278,271 | | $ 2,690,877 |
Fidelity U.S. Bond Index Fund | 18,695,369 | | 214,248,932 |
TOTAL FIXED-INCOME FUNDS (Cost $221,288,826) | 233,881,052 |
Money Market Funds - 7.6% |
| | | |
Fidelity Institutional Prime Money Market Portfolio Class I
(Cost $41,204,181) | 41,204,181 | | 41,204,181 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $519,525,709) | 544,309,821 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (92,026) |
NET ASSETS - 100% | $ 544,217,795 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At December 31, 2009, the Fund had a capital loss carryforward of approximately $89,947,646 of which $32,152,775 and $57,794,871 will expire on December 31, 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 50% Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $519,525,709) - See accompanying schedule | | $ 544,309,821 |
Cash | | 2 |
Receivable for fund shares sold | | 351,005 |
Total assets | | 544,660,828 |
| | |
Liabilities | | |
Payable for investments purchased | $ 350,293 | |
Payable for fund shares redeemed | 713 | |
Accrued management fee | 91,898 | |
Distribution fees payable | 129 | |
Total liabilities | | 443,033 |
| | |
Net Assets | | $ 544,217,795 |
Net Assets consist of: | | |
Paid in capital | | $ 606,868,921 |
Undistributed net investment income | | 3,398,626 |
Accumulated undistributed net realized gain (loss) on investments | | (90,833,864) |
Net unrealized appreciation (depreciation) on investments | | 24,784,112 |
Net Assets | | $ 544,217,795 |
Statement of Assets and Liabilities - continued
| June 30, 2010 (Unaudited) |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($80,517 ÷ 9,006 shares) | | $ 8.94 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($1,016,814 ÷ 113,999 shares) | | $ 8.92 |
| | |
Investor Class:
Net Asset Value, offering price and redemption price per share ($543,120,464 ÷ 60,763,225 shares) | | $ 8.94 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 3,946,117 |
| | |
Expenses | | |
Management fee | $ 682,832 | |
Distribution fees | 1,023 | |
Independent trustees' compensation | 919 | |
Total expenses before reductions | 684,774 | |
Expense reductions | (137,283) | 547,491 |
Net investment income (loss) | | 3,398,626 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 287,325 | |
Capital gain distributions from underlying funds | 292,646 | 579,971 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (15,261,303) |
Net gain (loss) | | (14,681,332) |
Net increase (decrease) in net assets resulting from operations | | $ (11,282,706) |
Statement of Changes in Net Assets
| Six months ended
June 30, 2010
(Unaudited) | Year ended
December 31,
2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 3,398,626 | $ 8,302,788 |
Net realized gain (loss) | 579,971 | (40,440,499) |
Change in net unrealized appreciation (depreciation) | (15,261,303) | 103,521,659 |
Net increase (decrease) in net assets resulting from operations | (11,282,706) | 71,383,948 |
Distributions to shareholders from net investment income | - | (8,316,282) |
Distributions to shareholders from net realized gain | - | (558,167) |
Total distributions | - | (8,874,449) |
Share transactions - net increase (decrease) | 34,649,660 | 123,241,942 |
Total increase (decrease) in net assets | 23,366,954 | 185,751,441 |
| | |
Net Assets | | |
Beginning of period | 520,850,841 | 335,099,400 |
End of period (including undistributed net investment income of $3,398,626 and $0, respectively) | $ 544,217,795 | $ 520,850,841 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.11 | $ 7.80 | $ 10.51 | $ 10.52 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .06 | .17 | .25 | .32 | .26 |
Net realized and unrealized gain (loss) | (.23) | 1.30 | (2.59) | .41 | .47 |
Total from investment operations | (.17) | 1.47 | (2.34) | .73 | .73 |
Distributions from net investment income | - | (.15) | (.24) | (.24) | (.12) |
Distributions from net realized gain | - | (.01) | (.13) | (.50) | (.09) |
Total distributions | - | (.16) | (.37) I | (.74) | (.21) |
Net asset value, end of period | $ 8.94 | $ 9.11 | $ 7.80 | $ 10.51 | $ 10.52 |
Total Return B, C, D | (1.87)% | 18.82% | (22.48)% | 6.99% | 7.31% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .35% A | .35% | .35% | .35% | .35% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% | .20% A |
Net investment income (loss) | 1.24% A | 2.07% | 2.65% | 2.97% | 3.48% A |
Supplemental Data |
| | | | |
Net assets, end of period (000 omitted) | $ 81 | $ 58 | $ 76 | $ 115 | $ 107 |
Portfolio turnover rate | 13% A | 44% | 70% | 92% | 103% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.37 per share is comprised of distributions from net investment income of $.241 and distributions from net realized gain of $.125 per share.
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.10 | $ 7.79 | $ 10.51 | $ 10.51 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .05 | .16 | .23 | .31 | .24 |
Net realized and unrealized gain (loss) | (.23) | 1.30 | (2.59) | .41 | .47 |
Total from investment operations | (.18) | 1.46 | (2.36) | .72 | .71 |
Distributions from net investment income | - | (.14) | (.24) | (.22) | (.11) |
Distributions from net realized gain | - | (.01) | (.13) | (.50) | (.09) |
Total distributions | - | (.15) | (.36) I | (.72) | (.20) |
Net asset value, end of period | $ 8.92 | $ 9.10 | $ 7.79 | $ 10.51 | $ 10.51 |
Total Return B, C, D | (1.98)% | 18.76% | (22.63)% | 6.93% | 7.09% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .35% A | .35% | .35% | .35% | .35% A |
Expenses net of all reductions | .35% A | .35% | .35% | .35% | .35% A |
Net investment income (loss) | 1.09% A | 1.92% | 2.50% | 2.82% | 3.34% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,017 | $ 550 | $ 236 | $ 115 | $ 107 |
Portfolio turnover rate | 13% A | 44% | 70% | 92% | 103% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.36 per share is comprised of distributions from net investment income of $.235 and distributions from net realized gain of $.125 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Investor Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 9.11 | $ 7.79 | $ 10.51 | $ 10.52 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .06 | .17 | .25 | .32 | .26 |
Net realized and unrealized gain (loss) | (.23) | 1.31 | (2.60) | .41 | .47 |
Total from investment operations | (.17) | 1.48 | (2.35) | .73 | .73 |
Distributions from net investment income | - | (.15) | (.24) | (.24) | (.12) |
Distributions from net realized gain | - | (.01) | (.13) | (.50) | (.09) |
Total distributions | - | (.16) | (.37) I | (.74) | (.21) |
Net asset value, end of period | $ 8.94 | $ 9.11 | $ 7.79 | $ 10.51 | $ 10.52 |
Total Return B, C, D | (1.87)% | 18.98% | (22.57)% | 6.99% | 7.31% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% | .20% A |
Net investment income (loss) | 1.24% A | 2.07% | 2.65% | 2.97% | 3.48% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 543,120 | $ 520,243 | $ 334,788 | $ 371,298 | $ 143,744 |
Portfolio turnover rate | 13% A | 44% | 70% | 92% | 103% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.37 per share is comprised of distributions from net investment income of $.241 and distributions from net realized gain of $.125 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 60% Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity 130/30 Large Cap Fund | 0.0* | 0.0* |
Fidelity Blue Chip Growth Fund | 0.2 | 0.2 |
Fidelity Contrafund | 0.1 | 0.6 |
Fidelity Disciplined Equity Fund | 0.0* | 0.1 |
Fidelity Dividend Growth Fund | 2.6 | 1.7 |
Fidelity Equity-Income Fund | 0.2 | 0.4 |
Fidelity Equity-Income II Fund | 0.0* | 0.0* |
Fidelity Fund | 0.0* | 0.0* |
Fidelity Growth Company Fund | 1.0 | 1.4 |
Fidelity Independence Fund | 0.0* | 0.0* |
Fidelity Large Cap Stock Fund | 2.2 | 0.8 |
Fidelity Large Cap Value Fund | 0.1 | 0.2 |
Fidelity Leveraged Company Stock Fund | 0.1 | 0.1 |
Fidelity Magellan Fund | 0.0* | 0.0* |
Fidelity Mega Cap Stock Fund | 1.7 | 0.0* |
Fidelity Mid Cap Value Fund | 0.2 | 0.3 |
Fidelity Real Estate Investment Portfolio | 0.7 | 0.4 |
Fidelity Select Air Transportation Portfolio | 0.2 | 0.3 |
Fidelity Select Automotive Portfolio | 0.0* | 0.0* |
Fidelity Select Banking Portfolio | 1.0 | 1.2 |
Fidelity Select Biotechnology Portfolio | 0.1 | 0.9 |
Fidelity Select Brokerage & Investment Management Portfolio | 0.3 | 0.5 |
Fidelity Select Chemicals Portfolio | 0.3 | 0.4 |
Fidelity Select Communications Equipment Portfolio | 0.5 | 0.0 |
Fidelity Select Computers Portfolio | 1.3 | 1.3 |
Fidelity Select Construction & Housing Portfolio | 0.4 | 0.7 |
Fidelity Select Consumer Discretionary Portfolio | 1.6 | 0.5 |
Fidelity Select Consumer Staples Portfolio | 3.7 | 3.6 |
Fidelity Select Defense & Aerospace Portfolio | 0.1 | 0.1 |
Fidelity Select Electronics Portfolio | 0.1 | 0.1 |
Fidelity Select Energy Portfolio | 2.4 | 3.4 |
Fidelity Select Energy Service Portfolio | 0.7 | 0.8 |
Fidelity Select Environmental Portfolio | 0.1 | 0.1 |
Fidelity Select Financial Services Portfolio | 2.4 | 2.1 |
|
| % of fund's
net assets | % of fund's net assets
6 months ago |
Fidelity Select Gold Portfolio | 1.1 | 0.9 |
Fidelity Select Health Care Portfolio | 1.2 | 1.0 |
Fidelity Select Industrial Equipment Portfolio | 0.5 | 0.2 |
Fidelity Select Industrials Portfolio | 2.2 | 2.1 |
Fidelity Select Insurance Portfolio | 1.2 | 1.4 |
Fidelity Select IT Services Portfolio | 0.4 | 0.9 |
Fidelity Select Leisure Portfolio | 0.4 | 0.5 |
Fidelity Select Materials Portfolio | 0.2 | 0.1 |
Fidelity Select Medical Delivery Portfolio | 0.9 | 0.8 |
Fidelity Select Medical Equipment & Systems Portfolio | 0.5 | 0.7 |
Fidelity Select Multimedia Portfolio | 0.4 | 0.6 |
Fidelity Select Natural Resources Portfolio | 0.1 | 0.1 |
Fidelity Select Pharmaceuticals Portfolio | 1.3 | 1.2 |
Fidelity Select Retailing Portfolio | 0.5 | 0.6 |
Fidelity Select Software & Computer Services Portfolio | 0.8 | 0.9 |
Fidelity Select Technology Portfolio | 2.3 | 3.0 |
Fidelity Select Telecommunications Portfolio | 0.8 | 0.9 |
Fidelity Select Transportation Portfolio | 0.4 | 0.5 |
Fidelity Select Utilities Portfolio | 0.6 | 0.2 |
Fidelity Series Commodity Strategy Fund | 0.0* | 0.0* |
Fidelity Small Cap Growth Fund | 0.1 | 0.2 |
Fidelity Small Cap Value Fund | 0.4 | 0.5 |
Fidelity Telecom and Utilities Fund | 1.1 | 1.6 |
Fidelity Value Fund | 0.1 | 0.1 |
Spartan 500 Index Fund Investor Class | 0.0* | 0.0* |
Spartan Total Market Index Fund Investor Class | 1.2 | 1.9 |
VIP Mid Cap Portfolio Investor Class | 0.2 | 0.3 |
| 43.2 | 43.4 |
International Equity Funds | | |
Fidelity Canada Fund | 0.7 | 0.0 |
Fidelity China Region Fund | 0.2 | 0.6 |
Fidelity Diversified International Fund | 1.2 | 2.4 |
Fidelity Emerging Markets Fund | 0.8 | 0.4 |
Fidelity International Capital Appreciation Fund | 0.6 | 1.0 |
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Fidelity International Discovery Fund | 1.6 | 2.6 |
Fidelity International Small Cap Fund | 0.8 | 0.0 |
Fidelity International Small Cap Opportunities Fund | 1.4 | 0.0 |
Fidelity International Value Fund | 0.1 | 0.1 |
Fidelity Japan Fund | 0.7 | 0.6 |
Fidelity Nordic Fund | 0.4 | 0.0 |
Fidelity Overseas Fund | 0.0* | 0.0* |
Fidelity Pacific Basin Fund | 0.6 | 0.0 |
Spartan International Index Fund Investor Class | 6.4 | 10.7 |
| 15.5 | 18.4 |
Fixed-Income Funds | | |
Fidelity Floating Rate High Income Fund | 1.2 | 0.0* |
Fidelity High Income Fund | 1.5 | 1.4 |
Fidelity New Markets Income Fund | 0.1 | 0.0* |
Fidelity Real Estate Income Fund | 1.0 | 0.0 |
Fidelity U.S. Bond Index Fund | 34.3 | 32.3 |
| 38.1 | 33.7 |
Money Market Funds | | |
Fidelity Institutional Prime Money Market Portfolio Class I | 3.2 | 4.5 |
| | |
Net Other Assets (Liabilities) | 0.0* | 0.0* |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
As of June 30, 2010 |
| Domestic Equity Funds | 43.2% | |
| International Equity Funds | 15.5% | |
| Fixed Income Funds | 38.1% | |
| Money Market Funds | 3.2% | |
As of December 31, 2009 |
| Domestic Equity Funds | 43.4% | |
| International Equity Funds | 18.4% | |
| Fixed Income Funds | 33.7% | |
| Money Market Funds | 4.5% | |
Semiannual Report
VIP FundsManager 60% Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 58.7% |
| Shares | | Value |
Domestic Equity Funds - 43.2% |
Fidelity 130/30 Large Cap Fund | 7,135 | | $ 42,808 |
Fidelity Blue Chip Growth Fund | 72,585 | | 2,553,546 |
Fidelity Contrafund | 32,450 | | 1,797,414 |
Fidelity Disciplined Equity Fund | 4,423 | | 85,576 |
Fidelity Dividend Growth Fund | 1,887,166 | | 41,574,261 |
Fidelity Equity-Income Fund | 68,582 | | 2,490,207 |
Fidelity Equity-Income II Fund | 4,801 | | 72,105 |
Fidelity Fund | 1,816 | | 47,357 |
Fidelity Growth Company Fund | 240,304 | | 15,554,846 |
Fidelity Independence Fund | 2,122 | | 39,198 |
Fidelity Large Cap Stock Fund | 2,494,547 | | 34,898,713 |
Fidelity Large Cap Value Fund | 113,571 | | 1,024,412 |
Fidelity Leveraged Company Stock Fund | 57,140 | | 1,242,785 |
Fidelity Magellan Fund | 2,841 | | 167,149 |
Fidelity Mega Cap Stock Fund | 3,374,400 | | 27,366,381 |
Fidelity Mid Cap Value Fund | 292,201 | | 3,708,026 |
Fidelity Real Estate Investment Portfolio | 540,004 | | 11,480,492 |
Fidelity Select Air Transportation Portfolio (a) | 113,795 | | 3,883,822 |
Fidelity Select Automotive Portfolio | 22,020 | | 643,863 |
Fidelity Select Banking Portfolio | 1,023,371 | | 16,353,469 |
Fidelity Select Biotechnology Portfolio (a) | 12,918 | | 782,201 |
Fidelity Select Brokerage & Investment Management Portfolio | 112,013 | | 4,781,822 |
Fidelity Select Chemicals Portfolio | 75,190 | | 4,884,347 |
Fidelity Select Communications Equipment Portfolio | 439,761 | | 8,746,855 |
Fidelity Select Computers Portfolio (a) | 460,091 | | 19,990,969 |
Fidelity Select Construction & Housing Portfolio | 249,896 | | 6,909,615 |
Fidelity Select Consumer Discretionary Portfolio | 1,361,478 | | 25,391,571 |
Fidelity Select Consumer Staples Portfolio | 1,027,654 | | 59,059,292 |
Fidelity Select Defense & Aerospace Portfolio | 27,986 | | 1,696,225 |
Fidelity Select Electronics Portfolio | 22,778 | | 847,790 |
Fidelity Select Energy Portfolio | 1,024,252 | | 38,286,536 |
Fidelity Select Energy Service Portfolio | 222,265 | | 10,919,885 |
Fidelity Select Environmental Portfolio | 87,696 | | 1,275,970 |
Fidelity Select Financial Services Portfolio | 704,708 | | 38,117,680 |
Fidelity Select Gold Portfolio | 372,310 | | 17,569,302 |
Fidelity Select Health Care Portfolio | 187,596 | | 19,301,798 |
Fidelity Select Industrial Equipment Portfolio | 300,740 | | 7,548,565 |
Fidelity Select Industrials Portfolio | 1,948,935 | | 35,022,365 |
Fidelity Select Insurance Portfolio | 460,614 | | 18,650,244 |
Fidelity Select IT Services Portfolio (a) | 425,454 | | 6,968,932 |
Fidelity Select Leisure Portfolio | 90,164 | | 6,335,821 |
Fidelity Select Materials Portfolio | 59,440 | | 2,837,053 |
Fidelity Select Medical Delivery Portfolio (a) | 351,546 | | 14,582,112 |
|
| Shares | | Value |
Fidelity Select Medical Equipment & Systems Portfolio (a) | 333,924 | | $ 7,880,606 |
Fidelity Select Multimedia Portfolio | 192,755 | | 6,509,342 |
Fidelity Select Natural Resources Portfolio | 32,149 | | 801,150 |
Fidelity Select Pharmaceuticals Portfolio | 2,002,912 | | 21,010,548 |
Fidelity Select Retailing Portfolio | 201,248 | | 8,206,903 |
Fidelity Select Software & Computer Services Portfolio (a) | 195,920 | | 13,277,499 |
Fidelity Select Technology Portfolio (a) | 529,391 | | 37,300,874 |
Fidelity Select Telecommunications Portfolio | 348,995 | | 13,080,322 |
Fidelity Select Transportation Portfolio | 149,837 | | 6,636,291 |
Fidelity Select Utilities Portfolio | 235,187 | | 9,891,981 |
Fidelity Series Commodity Strategy Fund | 934 | | 9,281 |
Fidelity Small Cap Growth Fund (a) | 137,183 | | 1,668,146 |
Fidelity Small Cap Value Fund | 499,046 | | 6,322,910 |
Fidelity Telecom and Utilities Fund | 1,321,767 | | 17,777,772 |
Fidelity Value Fund | 24,951 | | 1,359,068 |
Spartan 500 Index Fund Investor Class | 2,166 | | 79,397 |
Spartan Total Market Index Fund Investor Class | 669,915 | | 19,876,389 |
VIP Mid Cap Portfolio Investor Class | 139,519 | | 3,596,802 |
TOTAL DOMESTIC EQUITY FUNDS | | 690,818,661 |
International Equity Funds - 15.5% |
Fidelity Canada Fund | 230,863 | | 10,813,623 |
Fidelity China Region Fund | 111,973 | | 2,895,620 |
Fidelity Diversified International Fund | 802,280 | | 19,495,397 |
Fidelity Emerging Markets Fund | 619,506 | | 12,854,744 |
Fidelity International Capital Appreciation Fund | 994,590 | | 9,975,739 |
Fidelity International Discovery Fund | 976,847 | | 25,661,764 |
Fidelity International Small Cap Fund | 784,607 | | 12,953,866 |
Fidelity International Small Cap Opportunities Fund | 2,834,609 | | 22,960,331 |
Fidelity International Value Fund | 116,277 | | 779,057 |
Fidelity Japan Fund | 1,197,201 | | 11,552,989 |
Fidelity Nordic Fund | 263,401 | | 6,703,562 |
Fidelity Overseas Fund | 1,126 | | 29,280 |
Fidelity Pacific Basin Fund | 497,141 | | 10,156,590 |
Spartan International Index Fund Investor Class | 3,574,640 | | 102,663,654 |
TOTAL INTERNATIONAL EQUITY FUNDS | | 249,496,216 |
TOTAL EQUITY FUNDS (Cost $881,210,416) | 940,314,877 |
Fixed-Income Funds - 38.1% |
| | | |
Fidelity Floating Rate High Income Fund | 2,044,059 | | 19,193,716 |
Fidelity High Income Fund | 2,846,521 | | 23,996,174 |
Fidelity New Markets Income Fund | 118,849 | | 1,812,453 |
Fixed-Income Funds - continued |
| Shares | | Value |
Fidelity Real Estate Income Fund | 1,648,519 | | $ 15,941,174 |
Fidelity U.S. Bond Index Fund | 47,938,305 | | 549,372,976 |
TOTAL FIXED-INCOME FUNDS (Cost $582,696,575) | 610,316,493 |
Money Market Funds - 3.2% |
| | | |
Fidelity Institutional Prime Money Market Portfolio Class I
(Cost $50,995,299) | 50,995,299 | | 50,995,299 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $1,514,902,290) | 1,601,626,669 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (263,076) |
NET ASSETS - 100% | $ 1,601,363,593 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At December 31, 2009, the Fund had a capital loss carryforward of approximately $91,489,537 of which $38,659,280 and $52,830,257 will expire on December 31, 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 60% Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $1,514,902,290) - See accompanying schedule | | $ 1,601,626,669 |
Receivable for fund shares sold | | 6,109,585 |
Total assets | | 1,607,736,254 |
| | |
Liabilities | | |
Payable to custodian bank | $ 3 | |
Payable for investments purchased | 6,007,949 | |
Payable for fund shares redeemed | 101,635 | |
Accrued management fee | 263,061 | |
Distribution fees payable | 13 | |
Total liabilities | | 6,372,661 |
| | |
Net Assets | | $ 1,601,363,593 |
Net Assets consist of: | | |
Paid in capital | | $ 1,599,956,607 |
Undistributed net investment income | | 7,471,640 |
Accumulated undistributed net realized gain (loss) on investments | | (92,789,033) |
Net unrealized appreciation (depreciation) on investments | | 86,724,379 |
Net Assets | | $ 1,601,363,593 |
Statement of Assets and Liabilities - continued
| June 30, 2010 (Unaudited) |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($50,801 ÷ 5,920 shares) | | $ 8.58 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($99,668 ÷ 11,623 shares) | | $ 8.58 |
| | |
Investor Class:
Net Asset Value, offering price and redemption price per share ($1,601,213,124 ÷ 186,630,141 shares) | | $ 8.58 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 60% Portfolio
Financial Statements - continued
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 8,852,894 |
| | |
Expenses | | |
Management fee | $ 1,725,721 | |
Distribution fees | 141 | |
Independent trustees' compensation | 2,222 | |
Total expenses before reductions | 1,728,084 | |
Expense reductions | (346,830) | 1,381,254 |
Net investment income (loss) | | 7,471,640 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 4,690,268 | |
Capital gain distributions from underlying funds | 629,809 | 5,320,077 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (65,153,353) |
Net gain (loss) | | (59,833,276) |
Net increase (decrease) in net assets resulting from operations | | $ (52,361,636) |
Statement of Changes in Net Assets
| Six months ended
June 30, 2010
(Unaudited) | Year ended
December 31,
2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 7,471,640 | $ 17,230,832 |
Net realized gain (loss) | 5,320,077 | (31,528,105) |
Change in net unrealized appreciation (depreciation) | (65,153,353) | 229,496,553 |
Net increase (decrease) in net assets resulting from operations | (52,361,636) | 215,199,280 |
Distributions to shareholders from net investment income | - | (17,220,749) |
Distributions to shareholders from net realized gain | - | (1,542,165) |
Total distributions | - | (18,762,914) |
Share transactions - net increase (decrease) | 493,826,925 | 370,044,169 |
Total increase (decrease) in net assets | 441,465,289 | 566,480,535 |
| | |
Net Assets | | |
Beginning of period | 1,159,898,304 | 593,417,769 |
End of period (including undistributed net investment income of $7,471,640 and $0, respectively) | $ 1,601,363,593 | $ 1,159,898,304 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 8.83 | $ 7.32 | $ 10.29 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss) E | .05 | .15 | .25 | .18 |
Net realized and unrealized gain (loss) | (.30) | 1.51 | (3.01) | .23 |
Total from investment operations | (.25) | 1.66 | (2.76) | .41 |
Distributions from net investment income | - | (.13) | (.13) | (.06) |
Distributions from net realized gain | - | (.01) | (.08) | (.06) |
Total distributions | - | (.15) J | (.21) I | (.12) |
Net asset value, end of period | $ 8.58 | $ 8.83 | $ 7.32 | $ 10.29 |
Total Return B, C, D | (2.83)% | 22.61% | (26.93)% | 4.07% |
Ratios to Average Net Assets F, H | | | | |
Expenses before reductions | .35% A | .35% | .35% | .35% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% A |
Net investment income (loss) | 1.08% A | 1.89% | 2.75% | 4.76% A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 51 | $ 52 | $ 65 | $ 104 |
Portfolio turnover rate | 11% A | 38% | 74% | 60% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period August 22, 2007 (commencement of operations) to December 31, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.21 per share is comprised of distributions from net investment income of $.133 and distributions from net realized gain of $.080 per share.
J Total distributions of $.15 per share is comprised of distributions from net investment income of $.134 and distributions from net realized gain of $.012 per share.
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 8.83 | $ 7.33 | $ 10.29 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss) E | .04 | .14 | .23 | .17 |
Net realized and unrealized gain (loss) | (.29) | 1.50 | (2.99) | .23 |
Total from investment operations | (.25) | 1.64 | (2.76) | .40 |
Distributions from net investment income | - | (.12) | (.12) | (.05) |
Distributions from net realized gain | - | (.01) | (.08) | (.06) |
Total distributions | - | (.14) J | (.20) I | (.11) |
Net asset value, end of period | $ 8.58 | $ 8.83 | $ 7.33 | $ 10.29 |
Total Return B, C, D | (2.83)% | 22.31% | (26.97)% | 4.01% |
Ratios to Average Net Assets F, H | | | | |
Expenses before reductions | .50% A | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .35% A | .35% | .35% | .35% A |
Expenses net of all reductions | .35% A | .35% | .35% | .35% A |
Net investment income (loss) | .92% A | 1.74% | 2.59% | 4.61% A |
Supplemental Data | | | |
|
Net assets, end of period (000 omitted) | $ 100 | $ 83 | $ 76 | $ 104 |
Portfolio turnover rate | 11% A | 38% | 74% | 60% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period August 22, 2007 (commencement of operations) to December 31, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.20 per share is comprised of distributions from net investment income of $.119 and distributions from net realized gain of $.080 per share.
J Total distributions of $.14 per share is comprised of distributions from net investment income of $.124 and distributions from net realized gain of $.012 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Investor Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 G |
Selected Per-Share Data | | | | |
Net asset value, beginning of period | $ 8.82 | $ 7.32 | $ 10.29 | $ 10.00 |
Income from Investment Operations | | | | |
Net investment income (loss) E | .05 | .15 | .23 | .17 |
Net realized and unrealized gain (loss) | (.29) | 1.50 | (2.99) | .24 |
Total from investment operations | (.24) | 1.65 | (2.76) | .41 |
Distributions from net investment income | - | (.13) | (.13) | (.06) |
Distributions from net realized gain | - | (.01) | (.08) | (.06) |
Total distributions | - | (.15) J | (.21) I | (.12) |
Net asset value, end of period | $ 8.58 | $ 8.82 | $ 7.32 | $ 10.29 |
Total Return B, C, D | (2.72)% | 22.48% | (26.93)% | 4.07% |
Ratios to Average Net Assets F, H | | | | |
Expenses before reductions | .25% A | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% A |
Net investment income (loss) | 1.08% A | 1.89% | 2.75% | 4.76% A |
Supplemental Data | | | | |
Net assets, end of period (000 omitted) | $ 1,601,213 | $ 1,159,764 | $ 593,277 | $ 113,806 |
Portfolio turnover rate | 11% A | 38% | 74% | 60% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period August 22, 2007 (commencement of operations) to December 31, 2007.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.21 per share is comprised of distributions from net investment income of $.133 and distributions from net realized gain of $.080 per share.
J Total distributions of $.15 per share is comprised of distributions from net investment income of $.134 and distributions from net realized gain of $.012 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 70% Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity 130/30 Large Cap Fund | 0.0* | 0.0* |
Fidelity Blue Chip Growth Fund | 0.4 | 0.4 |
Fidelity Contrafund | 0.1 | 0.1 |
Fidelity Disciplined Equity Fund | 0.5 | 0.8 |
Fidelity Dividend Growth Fund | 0.0* | 1.4 |
Fidelity Equity-Income Fund | 1.3 | 1.4 |
Fidelity Equity-Income II Fund | 0.0* | 0.0* |
Fidelity Fund | 0.0* | 0.5 |
Fidelity Growth Company Fund | 0.8 | 0.9 |
Fidelity Independence Fund | 0.0* | 0.0* |
Fidelity Large Cap Stock Fund | 2.4 | 2.4 |
Fidelity Large Cap Value Fund | 0.2 | 0.8 |
Fidelity Leveraged Company Stock Fund | 0.0* | 0.0* |
Fidelity Magellan Fund | 0.0* | 0.0* |
Fidelity Mega Cap Stock Fund | 0.3 | 0.1 |
Fidelity Mid Cap Value Fund | 0.1 | 0.1 |
Fidelity Mid-Cap Stock Fund | 0.0* | 0.0* |
Fidelity Nasdaq Composite Index Fund | 0.3 | 0.3 |
Fidelity Real Estate Investment Portfolio | 1.0 | 0.7 |
Fidelity Select Air Transportation Portfolio | 0.2 | 0.2 |
Fidelity Select Automotive Portfolio | 0.1 | 0.0* |
Fidelity Select Banking Portfolio | 1.1 | 1.0 |
Fidelity Select Biotechnology Portfolio | 0.5 | 0.8 |
Fidelity Select Brokerage & Investment Management Portfolio | 0.5 | 0.7 |
Fidelity Select Chemicals Portfolio | 0.3 | 0.3 |
Fidelity Select Communications Equipment Portfolio | 0.2 | 0.0 |
Fidelity Select Computers Portfolio | 1.3 | 1.2 |
Fidelity Select Construction & Housing Portfolio | 0.5 | 0.5 |
Fidelity Select Consumer Discretionary Portfolio | 0.9 | 0.4 |
Fidelity Select Consumer Staples Portfolio | 4.2 | 3.6 |
Fidelity Select Defense & Aerospace Portfolio | 0.1 | 0.1 |
Fidelity Select Electronics Portfolio | 0.2 | 0.2 |
Fidelity Select Energy Portfolio | 3.6 | 4.1 |
Fidelity Select Energy Service Portfolio | 0.1 | 0.0* |
|
| % of fund's
net assets | % of fund's net assets
6 months ago |
Fidelity Select Environmental Portfolio | 0.2 | 0.2 |
Fidelity Select Financial Services Portfolio | 2.2 | 1.7 |
Fidelity Select Gold Portfolio | 0.9 | 1.0 |
Fidelity Select Health Care Portfolio | 0.6 | 0.4 |
Fidelity Select Industrial Equipment Portfolio | 0.7 | 0.4 |
Fidelity Select Industrials Portfolio | 2.3 | 1.8 |
Fidelity Select Insurance Portfolio | 1.4 | 1.1 |
Fidelity Select IT Services Portfolio | 0.3 | 0.4 |
Fidelity Select Leisure Portfolio | 0.6 | 0.6 |
Fidelity Select Materials Portfolio | 0.2 | 0.1 |
Fidelity Select Medical Delivery Portfolio | 1.2 | 1.0 |
Fidelity Select Medical Equipment & Systems Portfolio | 0.8 | 0.8 |
Fidelity Select Multimedia Portfolio | 0.8 | 0.3 |
Fidelity Select Natural Resources Portfolio | 0.0* | 0.0* |
Fidelity Select Pharmaceuticals Portfolio | 1.6 | 1.4 |
Fidelity Select Retailing Portfolio | 0.5 | 0.5 |
Fidelity Select Software & Computer Services Portfolio | 1.6 | 1.7 |
Fidelity Select Technology Portfolio | 2.4 | 2.4 |
Fidelity Select Telecommunications Portfolio | 0.8 | 0.8 |
Fidelity Select Transportation Portfolio | 0.5 | 0.5 |
Fidelity Select Utilities Portfolio | 0.6 | 0.5 |
Fidelity Series Commodity Strategy Fund | 0.0* | 0.0 |
Fidelity Small Cap Growth Fund | 0.8 | 0.8 |
Fidelity Small Cap Stock Fund | 0.0* | 0.0* |
Fidelity Small Cap Value Fund | 0.2 | 0.2 |
Fidelity Telecom and Utilities Fund | 1.2 | 1.2 |
Fidelity Value Discovery Fund | 0.0* | 0.0* |
Fidelity Value Fund | 0.3 | 0.3 |
Spartan 500 Index Fund Investor Class | 1.8 | 1.9 |
Spartan Extended Market Index Fund Investor Class | 2.3 | 2.4 |
Spartan Total Market Index Fund Investor Class | 2.1 | 2.2 |
VIP Mid Cap Portfolio Investor Class | 0.7 | 0.7 |
| 50.8 | 50.3 |
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
International Equity Funds | | |
Fidelity Canada Fund | 0.7 | 0.0 |
Fidelity China Region Fund | 0.2 | 0.4 |
Fidelity Diversified International Fund | 2.2 | 2.9 |
Fidelity Emerging Markets Fund | 1.2 | 1.0 |
Fidelity International Capital Appreciation Fund | 0.9 | 1.0 |
Fidelity International Discovery Fund | 0.9 | 3.1 |
Fidelity International Small Cap Fund | 0.3 | 0.0 |
Fidelity International Small Cap Opportunities Fund | 0.5 | 0.0 |
Fidelity International Value Fund | 0.1 | 0.1 |
Fidelity Japan Fund | 0.7 | 0.7 |
Fidelity Nordic Fund | 0.1 | 0.0 |
Fidelity Overseas Fund | 0.0* | 0.0* |
Fidelity Pacific Basin Fund | 0.1 | 0.0 |
Spartan International Index Fund Investor Class | 10.3 | 12.1 |
| 18.2 | 21.3 |
Fixed-Income Funds | | |
Fidelity Floating Rate High Income Fund | 1.1 | 0.6 |
Fidelity High Income Fund | 1.2 | 1.1 |
Fidelity New Markets Income Fund | 0.6 | 0.6 |
Fidelity Real Estate Income Fund | 0.4 | 0.0 |
Fidelity U.S. Bond Index Fund | 24.2 | 21.6 |
| 27.5 | 23.9 |
Money Market Funds | | |
Fidelity Institutional Prime Money Market Portfolio Class I | 3.5 | 4.5 |
| | |
Net Other Assets (Liabilities) | 0.0* | 0.0* |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
As of June 30, 2010 |
| Domestic Equity Funds | 50.8% | |
| International Equity Funds | 18.2% | |
| Fixed Income Funds | 27.5% | |
| Money Market Funds | 3.5% | |
As of December 31, 2009 |
| Domestic Equity Funds | 50.3% | |
| International Equity Funds | 21.3% | |
| Fixed Income Funds | 23.9% | |
| Money Market Funds | 4.5% | |
Semiannual Report
VIP FundsManager 70% Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 69.0% |
| Shares | | Value |
Domestic Equity Funds - 50.8% |
Fidelity 130/30 Large Cap Fund | 10,694 | | $ 64,161 |
Fidelity Blue Chip Growth Fund | 47,925 | | 1,685,991 |
Fidelity Contrafund | 6,421 | | 355,643 |
Fidelity Disciplined Equity Fund | 120,949 | | 2,340,368 |
Fidelity Dividend Growth Fund | 8,087 | | 178,162 |
Fidelity Equity-Income Fund | 162,519 | | 5,901,057 |
Fidelity Equity-Income II Fund | 497 | | 7,470 |
Fidelity Fund | 5,305 | | 138,363 |
Fidelity Growth Company Fund | 56,596 | | 3,663,455 |
Fidelity Independence Fund | 559 | | 10,333 |
Fidelity Large Cap Stock Fund | 777,495 | | 10,877,150 |
Fidelity Large Cap Value Fund | 74,308 | | 670,258 |
Fidelity Leveraged Company Stock Fund | 949 | | 20,641 |
Fidelity Magellan Fund | 887 | | 52,210 |
Fidelity Mega Cap Stock Fund | 183,854 | | 1,491,058 |
Fidelity Mid Cap Value Fund | 46,604 | | 591,400 |
Fidelity Mid-Cap Stock Fund | 5,979 | | 133,879 |
Fidelity Nasdaq Composite Index Fund | 43,743 | | 1,226,540 |
Fidelity Real Estate Investment Portfolio | 216,096 | | 4,594,196 |
Fidelity Select Air Transportation Portfolio (a) | 21,687 | | 740,171 |
Fidelity Select Automotive Portfolio | 8,748 | | 255,795 |
Fidelity Select Banking Portfolio | 318,136 | | 5,083,809 |
Fidelity Select Biotechnology Portfolio (a) | 34,823 | | 2,108,543 |
Fidelity Select Brokerage & Investment Management Portfolio | 54,277 | | 2,317,100 |
Fidelity Select Chemicals Portfolio | 22,027 | | 1,430,885 |
Fidelity Select Communications Equipment Portfolio | 38,804 | | 771,812 |
Fidelity Select Computers Portfolio (a) | 134,169 | | 5,829,636 |
Fidelity Select Construction & Housing Portfolio | 77,459 | | 2,141,751 |
Fidelity Select Consumer Discretionary Portfolio | 208,529 | | 3,889,058 |
Fidelity Select Consumer Staples Portfolio | 328,174 | | 18,860,148 |
Fidelity Select Defense & Aerospace Portfolio | 3,902 | | 236,529 |
Fidelity Select Electronics Portfolio | 19,773 | | 735,933 |
Fidelity Select Energy Portfolio | 431,910 | | 16,144,814 |
Fidelity Select Energy Service Portfolio | 10,635 | | 522,502 |
Fidelity Select Environmental Portfolio | 64,738 | | 941,935 |
Fidelity Select Financial Services Portfolio | 179,009 | | 9,682,622 |
Fidelity Select Gold Portfolio | 82,114 | | 3,874,937 |
Fidelity Select Health Care Portfolio | 27,064 | | 2,784,621 |
Fidelity Select Industrial Equipment Portfolio | 122,116 | | 3,065,106 |
Fidelity Select Industrials Portfolio | 560,657 | | 10,075,002 |
Fidelity Select Insurance Portfolio | 153,936 | | 6,232,869 |
Fidelity Select IT Services Portfolio (a) | 87,756 | | 1,437,440 |
Fidelity Select Leisure Portfolio | 40,893 | | 2,873,559 |
Fidelity Select Materials Portfolio | 17,818 | | 850,440 |
|
| Shares | | Value |
Fidelity Select Medical Delivery Portfolio (a) | 132,329 | | $ 5,489,023 |
Fidelity Select Medical Equipment & Systems Portfolio (a) | 145,188 | | 3,426,438 |
Fidelity Select Multimedia Portfolio | 109,388 | | 3,694,017 |
Fidelity Select Natural Resources Portfolio | 7,720 | | 192,379 |
Fidelity Select Pharmaceuticals Portfolio | 697,136 | | 7,312,958 |
Fidelity Select Retailing Portfolio | 54,367 | | 2,217,098 |
Fidelity Select Software & Computer Services Portfolio (a) | 106,690 | | 7,230,355 |
Fidelity Select Technology Portfolio (a) | 149,261 | | 10,516,901 |
Fidelity Select Telecommunications Portfolio | 97,383 | | 3,649,926 |
Fidelity Select Transportation Portfolio | 53,670 | | 2,377,032 |
Fidelity Select Utilities Portfolio | 59,323 | | 2,495,126 |
Fidelity Series Commodity Strategy Fund | 885 | | 8,796 |
Fidelity Small Cap Growth Fund (a) | 293,801 | | 3,572,622 |
Fidelity Small Cap Stock Fund (a) | 8,025 | | 121,259 |
Fidelity Small Cap Value Fund | 71,505 | | 905,971 |
Fidelity Telecom and Utilities Fund | 395,578 | | 5,320,518 |
Fidelity Value Discovery Fund | 1,583 | | 18,968 |
Fidelity Value Fund | 20,429 | | 1,112,755 |
Spartan 500 Index Fund Investor Class | 213,772 | | 7,834,734 |
Spartan Extended Market Index Fund Investor Class | 349,603 | | 10,411,183 |
Spartan Total Market Index Fund Investor Class | 312,517 | | 9,272,378 |
VIP Mid Cap Portfolio Investor Class | 116,005 | | 2,990,615 |
TOTAL DOMESTIC EQUITY FUNDS | | 227,060,404 |
International Equity Funds - 18.2% |
Fidelity Canada Fund | 70,503 | | 3,302,338 |
Fidelity China Region Fund | 35,472 | | 917,315 |
Fidelity Diversified International Fund | 397,521 | | 9,659,756 |
Fidelity Emerging Markets Fund | 269,212 | | 5,586,145 |
Fidelity International Capital Appreciation Fund | 390,677 | | 3,918,487 |
Fidelity International Discovery Fund | 151,006 | | 3,966,918 |
Fidelity International Small Cap Fund | 88,317 | | 1,458,116 |
Fidelity International Small Cap Opportunities Fund | 284,560 | | 2,304,937 |
Fidelity International Value Fund | 36,726 | | 246,064 |
Fidelity Japan Fund | 346,996 | | 3,348,516 |
Fidelity Nordic Fund | 11,869 | | 302,064 |
Fidelity Overseas Fund | 817 | | 21,238 |
Fidelity Pacific Basin Fund | 27,834 | | 568,648 |
Spartan International Index Fund Investor Class | 1,605,827 | | 46,119,358 |
TOTAL INTERNATIONAL EQUITY FUNDS | | 81,719,900 |
TOTAL EQUITY FUNDS (Cost $302,779,672) | 308,780,304 |
Fixed-Income Funds - 27.5% |
| Shares | | Value |
Fidelity Floating Rate High Income Fund | 509,222 | | $ 4,781,592 |
Fidelity High Income Fund | 650,456 | | 5,483,341 |
Fidelity New Markets Income Fund | 181,957 | | 2,774,847 |
Fidelity Real Estate Income Fund | 177,384 | | 1,715,301 |
Fidelity U.S. Bond Index Fund | 9,437,209 | | 108,150,413 |
TOTAL FIXED-INCOME FUNDS (Cost $116,102,678) | 122,905,494 |
Money Market Funds - 3.5% |
Fidelity Institutional Prime Money Market Portfolio Class I
(Cost $15,660,839) | 15,660,839 | | 15,660,839 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $434,543,189) | 447,346,637 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (76,912) |
NET ASSETS - 100% | $ 447,269,725 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At December 31, 2009, the Fund had a capital loss carryforward of approximately $135,926,167 of which $53,321,073 and $82,605,094 will expire on December 31, 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 70% Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $434,543,189) - See accompanying schedule | | $ 447,346,637 |
Receivable for fund shares sold | | 507,143 |
Total assets | | 447,853,780 |
| | |
Liabilities | | |
Payable to custodian bank | $ 3 | |
Payable for investments purchased | 227,131 | |
Payable for fund shares redeemed | 280,012 | |
Accrued management fee | 76,652 | |
Distribution fees payable | 257 | |
Total liabilities | | 584,055 |
| | |
Net Assets | | $ 447,269,725 |
Net Assets consist of: | | |
Paid in capital | | $ 570,200,637 |
Undistributed net investment income | | 1,833,616 |
Accumulated undistributed net realized gain (loss) on investments | | (137,567,976) |
Net unrealized appreciation (depreciation) on investments | | 12,803,448 |
Net Assets | | $ 447,269,725 |
Statement of Assets and Liabilities - continued
| June 30, 2010 (Unaudited) |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($55,750 ÷ 6,903 shares) | | $ 8.08 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($2,034,013 ÷ 252,408 shares) | | $ 8.06 |
| | |
Investor Class:
Net Asset Value, offering price and redemption price per share ($445,179,962 ÷ 55,136,577 shares) | | $ 8.07 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 70% Portfolio
Financial Statements - continued
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 2,300,672 |
| | |
Expenses | | |
Management fee | $ 581,461 | |
Distribution fees | 2,255 | |
Independent trustees' compensation | 788 | |
Total expenses before reductions | 584,504 | |
Expense reductions | (117,448) | 467,056 |
Net investment income (loss) | | 1,833,616 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (70,166) | |
Capital gain distributions from underlying funds | 315,207 | 245,041 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (21,668,078) |
Net gain (loss) | | (21,423,037) |
Net increase (decrease) in net assets resulting from operations | | $ (19,589,421) |
Statement of Changes in Net Assets
| Six months ended
June 30, 2010
(Unaudited) | Year ended
December 31,
2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 1,833,616 | $ 6,234,826 |
Net realized gain (loss) | 245,041 | (55,187,420) |
Change in net unrealized appreciation (depreciation) | (21,668,078) | 129,340,992 |
Net increase (decrease) in net assets resulting from operations | (19,589,421) | 80,388,398 |
Distributions to shareholders from net investment income | - | (6,266,412) |
Distributions to shareholders from net realized gain | - | (522,299) |
Total distributions | - | (6,788,711) |
Share transactions - net increase (decrease) | 19,646,155 | 51,384,490 |
Total increase (decrease) in net assets | 56,734 | 124,984,177 |
| | |
Net Assets | | |
Beginning of period | 447,212,991 | 322,228,814 |
End of period (including undistributed net investment income of $1,833,616 and $0, respectively) | $ 447,269,725 | $ 447,212,991 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.42 | $ 6.87 | $ 10.65 | $ 10.64 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .03 | .13 | .18 | .24 | .21 |
Net realized and unrealized gain (loss) | (.37) | 1.55 | (3.53) | .58 | .65 |
Total from investment operations | (.34) | 1.68 | (3.35) | .82 | .86 |
Distributions from net investment income | - | (.12) | (.18) | (.18) | (.11) |
Distributions from net realized gain | - | (.01) | (.25) | (.63) | (.11) |
Total distributions | - | (.13) | (.43) I | (.81) | (.22) |
Net asset value, end of period | $ 8.08 | $ 8.42 | $ 6.87 | $ 10.65 | $ 10.64 |
Total Return B, C, D | (4.04)% | 24.44% | (32.03)% | 7.80% | 8.56% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .35% A | .35% | .35% | .35% | .35% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% | .20% A |
Net investment income (loss) | .79% A | 1.73% | 2.01% | 2.14% | 2.87% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 56 | $ 68 | $ 68 | $ 117 | $ 109 |
Portfolio turnover rate | 19% A | 55% | 84% | 105% | 106% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.43 per share is comprised of distributions from net investment income of $.184 and distributions from net realized gain of $.245 per share.
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.41 | $ 6.86 | $ 10.65 | $ 10.64 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .03 | .12 | .16 | .22 | .20 |
Net realized and unrealized gain (loss) | (.38) | 1.55 | (3.53) | .59 | .65 |
Total from investment operations | (.35) | 1.67 | (3.37) | .81 | .85 |
Distributions from net investment income | - | (.11) | (.18) | (.17) | (.10) |
Distributions from net realized gain | - | (.01) | (.25) | (.63) | (.11) |
Total distributions | - | (.12) | (.42) I | (.80) | (.21) |
Net asset value, end of period | $ 8.06 | $ 8.41 | $ 6.86 | $ 10.65 | $ 10.64 |
Total Return B, C, D | (4.16)% | 24.38% | (32.18)% | 7.63% | 8.45% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .35% A | .35% | .35% | .35% | .35% A |
Expenses net of all reductions | .35% A | .35% | .35% | .35% | .35% A |
Net investment income (loss) | .64% A | 1.58% | 1.86% | 1.99% | 2.72% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 2,034 | $ 1,464 | $ 223 | $ 117 | $ 108 |
Portfolio turnover rate | 19% A | 55% | 84% | 105% | 106% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.42 per share is comprised of distributions from net investment income of $.178 and distributions from net realized gain of $.245 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Investor Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.42 | $ 6.87 | $ 10.65 | $ 10.64 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .03 | .13 | .18 | .24 | .21 |
Net realized and unrealized gain (loss) | (.38) | 1.55 | (3.53) | .58 | .65 |
Total from investment operations | (.35) | 1.68 | (3.35) | .82 | .86 |
Distributions from net investment income | - | (.12) | (.18) | (.18) | (.11) |
Distributions from net realized gain | - | (.01) | (.25) | (.63) | (.11) |
Total distributions | - | (.13) | (.43) I | (.81) | (.22) |
Net asset value, end of period | $ 8.07 | $ 8.42 | $ 6.87 | $ 10.65 | $ 10.64 |
Total Return B, C, D | (4.16)% | 24.44% | (32.03)% | 7.80% | 8.56% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% | .20% A |
Net investment income (loss) | .79% A | 1.73% | 2.01% | 2.14% | 2.86% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 445,180 | $ 445,681 | $ 321,938 | $ 444,467 | $ 177,978 |
Portfolio turnover rate | 19% A | 55% | 84% | 105% | 106% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.43 per share is comprised of distributions from net investment income of $.184 and distributions from net realized gain of $.245 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 85% Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
Fidelity 130/30 Large Cap Fund | 0.0* | 0.0* |
Fidelity Blue Chip Growth Fund | 0.3 | 0.3 |
Fidelity Contrafund | 0.2 | 0.0* |
Fidelity Dividend Growth Fund | 0.0 | 1.5 |
Fidelity Equity-Income Fund | 0.0* | 0.0* |
Fidelity Equity-Income II Fund | 0.0* | 0.0* |
Fidelity Growth Company Fund | 1.4 | 1.5 |
Fidelity Independence Fund | 0.0* | 0.0* |
Fidelity Large Cap Stock Fund | 2.7 | 3.1 |
Fidelity Large Cap Value Fund | 0.0* | 0.1 |
Fidelity Leveraged Company Stock Fund | 0.0* | 0.0* |
Fidelity Magellan Fund | 0.0* | 0.0* |
Fidelity Mega Cap Stock Fund | 1.1 | 0.0* |
Fidelity Mid Cap Value Fund | 0.3 | 0.3 |
Fidelity Mid-Cap Stock Fund | 0.0* | 0.0* |
Fidelity Nasdaq Composite Index Fund | 0.3 | 0.3 |
Fidelity Real Estate Investment Portfolio | 1.3 | 1.2 |
Fidelity Select Air Transportation Portfolio | 0.3 | 0.2 |
Fidelity Select Automotive Portfolio | 0.2 | 0.2 |
Fidelity Select Banking Portfolio | 1.9 | 1.3 |
Fidelity Select Biotechnology Portfolio | 0.3 | 0.9 |
Fidelity Select Brokerage & Investment Management Portfolio | 0.5 | 1.1 |
Fidelity Select Chemicals Portfolio | 0.5 | 0.6 |
Fidelity Select Communications Equipment Portfolio | 0.3 | 0.0 |
Fidelity Select Computers Portfolio | 2.0 | 1.8 |
Fidelity Select Construction & Housing Portfolio | 0.6 | 0.6 |
Fidelity Select Consumer Discretionary Portfolio | 1.8 | 0.8 |
Fidelity Select Consumer Staples Portfolio | 5.7 | 5.2 |
Fidelity Select Defense & Aerospace Portfolio | 0.2 | 0.1 |
Fidelity Select Electronics Portfolio | 0.4 | 0.4 |
Fidelity Select Energy Portfolio | 5.0 | 5.7 |
Fidelity Select Energy Service Portfolio | 0.4 | 0.2 |
Fidelity Select Environmental Portfolio | 0.3 | 0.3 |
Fidelity Select Financial Services Portfolio | 3.7 | 2.5 |
|
| % of fund's
net assets | % of fund's net assets
6 months ago |
Fidelity Select Gold Portfolio | 1.3 | 1.1 |
Fidelity Select Health Care Portfolio | 1.3 | 0.9 |
Fidelity Select Industrial Equipment Portfolio | 0.7 | 0.5 |
Fidelity Select Industrials Portfolio | 3.5 | 2.6 |
Fidelity Select Insurance Portfolio | 1.9 | 1.8 |
Fidelity Select IT Services Portfolio | 0.8 | 0.9 |
Fidelity Select Leisure Portfolio | 0.9 | 0.9 |
Fidelity Select Materials Portfolio | 0.3 | 0.2 |
Fidelity Select Medical Delivery Portfolio | 1.6 | 0.9 |
Fidelity Select Medical Equipment & Systems Portfolio | 1.1 | 1.1 |
Fidelity Select Multimedia Portfolio | 0.7 | 0.4 |
Fidelity Select Natural Resources Portfolio | 0.1 | 0.1 |
Fidelity Select Pharmaceuticals Portfolio | 2.4 | 2.4 |
Fidelity Select Retailing Portfolio | 1.0 | 1.0 |
Fidelity Select Software & Computer Services Portfolio | 2.2 | 2.3 |
Fidelity Select Technology Portfolio | 3.0 | 2.8 |
Fidelity Select Telecommunications Portfolio | 1.2 | 1.1 |
Fidelity Select Transportation Portfolio | 1.0 | 0.9 |
Fidelity Select Utilities Portfolio | 0.7 | 0.6 |
Fidelity Series Commodity Strategy Fund | 0.0* | 0.0 |
Fidelity Small Cap Growth Fund | 0.5 | 0.5 |
Fidelity Small Cap Stock Fund | 0.0* | 0.0* |
Fidelity Small Cap Value Fund | 0.8 | 0.8 |
Fidelity Stock Selector Fund | 0.0 | 0.0* |
Fidelity Telecom and Utilities Fund | 1.8 | 1.8 |
Fidelity Value Discovery Fund | 0.0* | 0.0* |
Spartan 500 Index Fund Investor Class | 2.2 | 2.6 |
Spartan Extended Market Index Fund Investor Class | 0.0* | 0.3 |
Spartan Total Market Index Fund Investor Class | 1.1 | 2.1 |
VIP Mid Cap Portfolio Investor Class | 0.4 | 0.4 |
| 64.2 | 61.2 |
International Equity Funds | | |
Fidelity Canada Fund | 1.0 | 0.0 |
Fidelity China Region Fund | 0.1 | 0.3 |
Fidelity Diversified International Fund | 2.7 | 3.3 |
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Fidelity Emerging Markets Fund | 1.5 | 1.2 |
Fidelity International Capital Appreciation Fund | 1.3 | 1.4 |
Fidelity International Discovery Fund | 0.9 | 3.4 |
Fidelity International Small Cap Fund | 0.3 | 0.0 |
Fidelity International Small Cap Opportunities Fund | 1.0 | 0.0 |
Fidelity International Value Fund | 0.0* | 0.0* |
Fidelity Japan Fund | 1.3 | 1.2 |
Fidelity Nordic Fund | 0.2 | 0.0 |
Fidelity Overseas Fund | 0.0* | 0.0* |
Fidelity Pacific Basin Fund | 0.4 | 0.0 |
Spartan International Index Fund Investor Class | 10.8 | 14.3 |
| 21.5 | 25.1 |
Fixed-Income Funds | | |
Fidelity Floating Rate High Income Fund | 0.7 | 0.0 |
Fidelity High Income Fund | 1.2 | 1.0 |
Fidelity New Markets Income Fund | 1.1 | 1.0 |
Fidelity Real Estate Income Fund | 0.1 | 0.0 |
Fidelity U.S. Bond Index Fund | 10.9 | 11.4 |
| 14.0 | 13.4 |
Money Market Funds | | |
Fidelity Institutional Prime Money Market Portfolio Class I | 0.3 | 0.3 |
| | |
Net Other Assets (Liabilities) | 0.0* | 0.0* |
| 100.0 | 100.0 |
* Amount represents less than 0.1%
Asset Allocation (% of fund's net assets) |
As of June 30, 2010 |
| Domestic Equity Funds | 64.2% | |
| International Equity Funds | 21.5% | |
| Fixed Income Funds | 14.0% | |
| Money Market Funds | 0.3% | |
As of December 31, 2009 |
| Domestic Equity Funds | 61.2% | |
| International Equity Funds | 25.1% | |
| Fixed Income Funds | 13.4% | |
| Money Market Funds | 0.3% | |
Semiannual Report
VIP FundsManager 85% Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Equity Funds - 85.7% |
| Shares | | Value |
Domestic Equity Funds - 64.2% |
Fidelity 130/30 Large Cap Fund | 6,351 | | $ 38,104 |
Fidelity Blue Chip Growth Fund | 15,645 | | 550,378 |
Fidelity Contrafund | 4,754 | | 263,342 |
Fidelity Equity-Income Fund | 963 | | 34,979 |
Fidelity Equity-Income II Fund | 1,187 | | 17,832 |
Fidelity Growth Company Fund | 38,042 | | 2,462,453 |
Fidelity Independence Fund | 420 | | 7,757 |
Fidelity Large Cap Stock Fund | 339,268 | | 4,746,363 |
Fidelity Large Cap Value Fund | 8,971 | | 80,918 |
Fidelity Leveraged Company Stock Fund | 3,056 | | 66,464 |
Fidelity Magellan Fund | 845 | | 49,703 |
Fidelity Mega Cap Stock Fund | 237,717 | | 1,927,889 |
Fidelity Mid Cap Value Fund | 40,323 | | 511,699 |
Fidelity Mid-Cap Stock Fund | 2,424 | | 54,267 |
Fidelity Nasdaq Composite Index Fund | 18,238 | | 511,402 |
Fidelity Real Estate Investment Portfolio | 110,754 | | 2,354,629 |
Fidelity Select Air Transportation Portfolio (a) | 13,296 | | 453,801 |
Fidelity Select Automotive Portfolio | 10,664 | | 311,818 |
Fidelity Select Banking Portfolio | 208,771 | | 3,336,167 |
Fidelity Select Biotechnology Portfolio (a) | 10,098 | | 611,448 |
Fidelity Select Brokerage & Investment Management Portfolio | 21,790 | | 930,223 |
Fidelity Select Chemicals Portfolio | 14,613 | | 949,237 |
Fidelity Select Communications Equipment Portfolio | 24,394 | | 485,205 |
Fidelity Select Computers Portfolio (a) | 82,756 | | 3,595,728 |
Fidelity Select Construction & Housing Portfolio | 39,403 | | 1,089,485 |
Fidelity Select Consumer Discretionary Portfolio | 174,932 | | 3,262,479 |
Fidelity Select Consumer Staples Portfolio | 176,483 | | 10,142,481 |
Fidelity Select Defense & Aerospace Portfolio | 4,313 | | 261,390 |
Fidelity Select Electronics Portfolio | 17,615 | | 655,632 |
Fidelity Select Energy Portfolio | 235,755 | | 8,812,509 |
Fidelity Select Energy Service Portfolio | 12,885 | | 633,024 |
Fidelity Select Environmental Portfolio | 32,634 | | 474,822 |
Fidelity Select Financial Services Portfolio | 119,664 | | 6,472,651 |
Fidelity Select Gold Portfolio | 47,414 | | 2,237,479 |
Fidelity Select Health Care Portfolio | 22,646 | | 2,330,023 |
Fidelity Select Industrial Equipment Portfolio | 45,762 | | 1,148,631 |
Fidelity Select Industrials Portfolio | 345,736 | | 6,212,874 |
Fidelity Select Insurance Portfolio | 83,634 | | 3,386,345 |
Fidelity Select IT Services Portfolio (a) | 86,804 | | 1,421,851 |
Fidelity Select Leisure Portfolio | 23,619 | | 1,659,734 |
Fidelity Select Materials Portfolio | 10,533 | | 502,720 |
Fidelity Select Medical Delivery Portfolio (a) | 68,846 | | 2,855,749 |
Fidelity Select Medical Equipment & Systems Portfolio (a) | 83,851 | | 1,978,895 |
Fidelity Select Multimedia Portfolio | 37,282 | | 1,259,000 |
|
| Shares | | Value |
Fidelity Select Natural Resources Portfolio | 8,486 | | $ 211,483 |
Fidelity Select Pharmaceuticals Portfolio | 407,667 | | 4,276,426 |
Fidelity Select Retailing Portfolio | 43,892 | | 1,789,902 |
Fidelity Select Software & Computer Services Portfolio (a) | 57,338 | | 3,885,811 |
Fidelity Select Technology Portfolio (a) | 74,283 | | 5,233,998 |
Fidelity Select Telecommunications Portfolio | 56,964 | | 2,135,026 |
Fidelity Select Transportation Portfolio | 38,889 | | 1,722,387 |
Fidelity Select Utilities Portfolio | 30,205 | | 1,270,421 |
Fidelity Series Commodity Strategy Fund | 885 | | 8,796 |
Fidelity Small Cap Growth Fund (a) | 70,278 | | 854,576 |
Fidelity Small Cap Stock Fund (a) | 3,372 | | 50,958 |
Fidelity Small Cap Value Fund | 113,970 | | 1,443,997 |
Fidelity Telecom and Utilities Fund | 237,752 | | 3,197,762 |
Fidelity Value Discovery Fund | 574 | | 6,877 |
Spartan 500 Index Fund Investor Class | 107,669 | | 3,946,079 |
Spartan Extended Market Index Fund Investor Class | 181 | | 5,391 |
Spartan Total Market Index Fund Investor Class | 63,032 | | 1,870,172 |
VIP Mid Cap Portfolio Investor Class | 26,861 | | 692,473 |
TOTAL DOMESTIC EQUITY FUNDS | | 113,752,115 |
International Equity Funds - 21.5% |
Fidelity Canada Fund | 37,857 | | 1,773,236 |
Fidelity China Region Fund | 4,906 | | 126,881 |
Fidelity Diversified International Fund | 198,844 | | 4,831,920 |
Fidelity Emerging Markets Fund | 125,694 | | 2,608,143 |
Fidelity International Capital Appreciation Fund | 222,996 | | 2,236,648 |
Fidelity International Discovery Fund | 61,214 | | 1,608,096 |
Fidelity International Small Cap Fund | 34,015 | | 561,596 |
Fidelity International Small Cap Opportunities Fund | 219,461 | | 1,777,633 |
Fidelity International Value Fund | 6,039 | | 40,463 |
Fidelity Japan Fund | 239,231 | | 2,308,578 |
Fidelity Nordic Fund | 16,684 | | 424,616 |
Fidelity Overseas Fund | 321 | | 8,358 |
Fidelity Pacific Basin Fund | 30,456 | | 622,212 |
Spartan International Index Fund Investor Class | 666,102 | | 19,130,446 |
TOTAL INTERNATIONAL EQUITY FUNDS | | 38,058,826 |
TOTAL EQUITY FUNDS (Cost $144,396,120) | 151,810,941 |
Fixed-Income Funds - 14.0% |
| | | |
Fidelity Floating Rate High Income Fund | 139,740 | | 1,312,161 |
Fidelity High Income Fund | 260,914 | | 2,199,507 |
Fidelity New Markets Income Fund | 122,033 | | 1,861,010 |
Fixed-Income Funds - continued |
| Shares | | Value |
Fidelity Real Estate Income Fund | 21,780 | | $ 210,614 |
Fidelity U.S. Bond Index Fund | 1,686,204 | | 19,323,903 |
TOTAL FIXED-INCOME FUNDS (Cost $23,380,837) | 24,907,195 |
Money Market Funds - 0.3% |
| | | |
Fidelity Institutional Prime Money Market Portfolio Class I
(Cost $512,124) | 512,124 | | 512,124 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $168,289,081) | 177,230,260 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (31,066) |
NET ASSETS - 100% | $ 177,199,194 |
Legend |
(a) Non-income producing |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At December 31, 2009, the Fund had a capital loss carryforward of approximately $67,542,450 of which $22,994,541 and $44,547,909 will expire on December 31, 2016 and 2017, respectively. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP FundsManager 85% Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $168,289,081) - See accompanying schedule | | $ 177,230,260 |
Cash | | 9 |
Receivable for investments sold | | 376,206 |
Receivable for fund shares sold | | 567 |
Total assets | | 177,607,042 |
| | |
Liabilities | | |
Payable for investments purchased | $ 532 | |
Payable for fund shares redeemed | 376,242 | |
Accrued management fee | 30,918 | |
Distribution fees payable | 156 | |
Total liabilities | | 407,848 |
| | |
Net Assets | | $ 177,199,194 |
Net Assets consist of: | | |
Paid in capital | | $ 235,669,265 |
Undistributed net investment income | | 441,944 |
Accumulated undistributed net realized gain (loss) on investments | | (67,853,194) |
Net unrealized appreciation (depreciation) on investments | | 8,941,179 |
Net Assets | | $ 177,199,194 |
Statement of Assets and Liabilities - continued
| June 30, 2010 (Unaudited) |
| | |
Service Class:
Net Asset Value, offering price and redemption price per share ($84,915 ÷ 11,230 shares) | | $ 7.56 |
| | |
Service Class 2:
Net Asset Value, offering price and redemption price per share ($1,221,244 ÷ 161,930 shares) | | $ 7.54 |
| | |
Investor Class:
Net Asset Value, offering price and redemption price per share ($175,893,035 ÷ 23,250,086 shares) | | $ 7.57 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 610,145 |
| | |
Expenses | | |
Management fee | $ 233,835 | |
Distribution fees | 1,383 | |
Independent trustees' compensation | 316 | |
Total expenses before reductions | 235,534 | |
Expense reductions | (47,418) | 188,116 |
Net investment income (loss) | | 422,029 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 1,113,539 | |
Capital gain distributions from underlying funds | 133,956 | 1,247,495 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (13,383,213) |
Net gain (loss) | | (12,135,718) |
Net increase (decrease) in net assets resulting from operations | | $ (11,713,689) |
Statement of Changes in Net Assets
| Six months ended
June 30, 2010
(Unaudited) | Year ended
December 31,
2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 422,029 | $ 2,139,971 |
Net realized gain (loss) | 1,247,495 | (30,922,006) |
Change in net unrealized appreciation (depreciation) | (13,383,213) | 65,058,238 |
Net increase (decrease) in net assets resulting from operations | (11,713,689) | 36,276,203 |
Distributions to shareholders from net investment income | - | (2,120,056) |
Distributions to shareholders from net realized gain | (113,911) | (245,543) |
Total distributions | (113,911) | (2,365,599) |
Share transactions - net increase (decrease) | 7,565,543 | 26,583,560 |
Total increase (decrease) in net assets | (4,262,057) | 60,494,164 |
| | |
Net Assets | | |
Beginning of period | 181,461,251 | 120,967,087 |
End of period (including undistributed net investment income of $441,944 and undistributed net investment income of $19,915, respectively) | $ 177,199,194 | $ 181,461,251 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Service Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.02 | $ 6.32 | $ 10.76 | $ 10.72 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .02 | .11 | .13 | .17 | .17 |
Net realized and unrealized gain (loss) | (.47) | 1.70 | (4.14) | .74 | .74 |
Total from investment operations | (.45) | 1.81 | (4.01) | .91 | .91 |
Distributions from net investment income | - | (.10) | (.13) | (.13) | (.08) |
Distributions from net realized gain | (.01) | (.01) | (.30) | (.74) | (.11) |
Total distributions | (.01) | (.11) | (.43) I | (.87) | (.19) |
Net asset value, end of period | $ 7.56 | $ 8.02 | $ 6.32 | $ 10.76 | $ 10.72 |
Total Return B, C, D | (5.67)% | 28.56% | (38.14)% | 8.52% | 9.09% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .35% A | .35% | .35% | .35% | .35% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% | .20% A |
Net investment income (loss) | .45% A | 1.53% | 1.52% | 1.48% | 2.33% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 85 | $ 112 | $ 62 | $ 118 | $ 109 |
Portfolio turnover rate | 34% A | 66% | 92% | 104% | 111% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.43 per share is comprised of distributions from net investment income of $.126 and distributions from net realized gain of $.300 per share.
Financial Highlights - Service Class 2
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.00 | $ 6.32 | $ 10.76 | $ 10.72 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .01 | .10 | .11 | .15 | .16 |
Net realized and unrealized gain (loss) | (.46) | 1.68 | (4.13) | .74 | .74 |
Total from investment operations | (.45) | 1.78 | (4.02) | .89 | .90 |
Distributions from net investment income | - | (.09) | (.12) | (.11) | (.07) |
Distributions from net realized gain | (.01) | (.01) | (.30) | (.74) | (.11) |
Total distributions | (.01) | (.10) | (.42) I | (.85) | (.18) |
Net asset value, end of period | $ 7.54 | $ 8.00 | $ 6.32 | $ 10.76 | $ 10.72 |
Total Return B, C, D | (5.69)% | 28.17% | (38.19)% | 8.36% | 8.99% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .50% A | .50% | .50% | .50% | .50% A |
Expenses net of fee waivers, if any | .35% A | .35% | .35% | .35% | .35% A |
Expenses net of all reductions | .35% A | .35% | .35% | .35% | .35% A |
Net investment income (loss) | .30% A | 1.38% | 1.37% | 1.33% | 2.17% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 1,221 | $ 886 | $ 254 | $ 118 | $ 109 |
Portfolio turnover rate | 34% A | 66% | 92% | 104% | 111% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.42 per share is comprised of distributions from net investment income of $.121 and distributions from net realized gain of $.300 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Investor Class
| Six months ended
June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 G |
Selected Per-Share Data | | | | | |
Net asset value, beginning of period | $ 8.02 | $ 6.32 | $ 10.77 | $ 10.72 | $ 10.00 |
Income from Investment Operations | | | | | |
Net investment income (loss) E | .02 | .11 | .13 | .17 | .17 |
Net realized and unrealized gain (loss) | (.46) | 1.70 | (4.15) | .75 | .74 |
Total from investment operations | (.44) | 1.81 | (4.02) | .92 | .91 |
Distributions from net investment income | - | (.10) | (.13) | (.13) | (.08) |
Distributions from net realized gain | (.01) | (.01) | (.30) | (.74) | (.11) |
Total distributions | (.01) | (.11) | (.43) I | (.87) | (.19) |
Net asset value, end of period | $ 7.57 | $ 8.02 | $ 6.32 | $ 10.77 | $ 10.72 |
Total Return B, C, D | (5.55)% | 28.56% | (38.20)% | 8.63% | 9.09% |
Ratios to Average Net Assets F, H | | | | | |
Expenses before reductions | .25% A | .25% | .25% | .25% | .25% A |
Expenses net of fee waivers, if any | .20% A | .20% | .20% | .20% | .20% A |
Expenses net of all reductions | .20% A | .20% | .20% | .20% | .20% A |
Net investment income (loss) | .45% A | 1.53% | 1.52% | 1.48% | 2.32% A |
Supplemental Data | | | | | |
Net assets, end of period (000 omitted) | $ 175,893 | $ 180,463 | $ 120,650 | $ 176,456 | $ 72,095 |
Portfolio turnover rate | 34% A | 66% | 92% | 104% | 111% A |
A Annualized
B Total returns for periods of less than one year are not annualized.
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 had certain expenses not been reduced during the periods shown.
E Calculated based on average shares outstanding during the period.
F Amounts do not include the activity of the underlying funds.
G For the period April 13, 2006 (commencement of operations) to December 31, 2006.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.
I Total distributions of $.43 per share is comprised of distributions from net investment income of $.126 and distributions from net realized gain of $.300 per share.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2010 (Unaudited)
1. Organization.
VIP FundsManager 20% Portfolio, VIP FundsManager 50% Portfolio, VIP FundsManager 60% Portfolio, VIP FundsManager 70% Portfolio, and VIP FundsManager 85% Portfolio (the Funds) are funds of Variable Insurance Products Fund V. Variable Insurance Products Fund V (the Trust) (referred to in this report as Fidelity Variable Insurance Products) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each Fund is authorized to issue an unlimited number of shares. The Funds invest primarily in a combination of other Fidelity equity, fixed income, and short-term funds (the Underlying Funds) managed by Fidelity Management & Research Company (FMR). Shares of each Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. Each Fund offers three classes of shares: Investor Class shares, Service Class shares and Service Class 2 shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to distribution and service plan fees incurred. Certain expense reductions also differ by class.
2. Significant Accounting Policies.
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. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund categorizes the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows. Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date.
Expenses. Most expenses of the Trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned amongst each fund in the Trust. Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses associated with the Underlying Funds. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
Distributions are recorded on the ex-dividend date. Income dividends 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Tax cost | Gross unrealized
appreciation | Gross unrealized
depreciation | Net unrealized
appreciation
(depreciation) |
VIP FundsManager 20% Portfolio | $ 311,839,499 | $ 13,912,406 | $ (3,928,089) | $ 9,984,317 |
VIP FundsManager 50% Portfolio | 520,279,051 | 43,870,630 | (19,839,860) | 24,030,770 |
VIP FundsManager 60% Portfolio | 1,516,669,173 | 139,708,256 | (54,750,760) | 84,957,496 |
VIP FundsManager 70% Portfolio | 435,051,408 | 38,892,251 | (26,597,022) | 12,295,229 |
VIP FundsManager 85% Portfolio | 168,586,097 | 19,036,282 | (10,392,119) | 8,644,163 |
3. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
VIP FundsManager 20% Portfolio | 74,194,568 | 23,483,102 |
VIP FundsManager 50% Portfolio | 74,449,090 | 36,101,087 |
VIP FundsManager 60% Portfolio | 576,150,649 | 74,147,727 |
VIP FundsManager 70% Portfolio | 64,327,953 | 42,529,654 |
VIP FundsManager 85% Portfolio | 39,623,592 | 31,614,567 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (Strategic Advisers), an affiliate of FMR, provides the funds with investment management related services. For these services each fund pays a monthly management fee to Strategic Advisers. The management fee is based on an annual rate of ..25% of each fund's average net assets. The management fee is reduced by an amount equal to the fees and expenses paid by the fund to the independent Trustees.
Strategic Advisers has contractually agreed to waive 0.05% of its management fee, thereby limiting each fund's management fee to an annual rate of 0.20% of average net assets, until April 30, 2011.
Other Transactions. Strategic Advisers has entered into an administration agreement with FMR under which FMR provides management and administrative services (other than investment advisory services) necessary for the operation of each Fund. Pursuant to this agreement, FMR pays all expenses of each Fund, excluding the distribution and service fees, the compensation of the independent Trustees and certain other expenses such as interest expense. FMR also contracts with other Fidelity companies to perform the services necessary for the operation of each Fund.
Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Funds have adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, 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, each class paid FDC the following amounts, all of which were reallowed to insurance companies for the distribution of shares and providing shareholder support services:
| Service
Class | Service
Class 2 | Total |
VIP FundsManager 20% Portfolio | $ 32 | $ 476 | $ 508 |
VIP FundsManager 50% Portfolio | 36 | 987 | 1,023 |
VIP FundsManager 60% Portfolio | 26 | 115 | 141 |
VIP FundsManager 70% Portfolio | 34 | 2,221 | 2,255 |
VIP FundsManager 85% Portfolio | 52 | 1,331 | 1,383 |
Semiannual Report
5. Expense Reductions.
Strategic Advisers contractually agreed to limit each funds' management fee to an annual rate of 0.20% of each funds' average net assets until April 30, 2011. For the period, each fund's management fees were reduced by the following amounts:
| Management Fee Waiver |
VIP FundsManager 20% Portfolio | $ 75,789 |
VIP FundsManager 50% Portfolio | 136,849 |
VIP FundsManager 60% Portfolio | 346,760 |
VIP FundsManager 70% Portfolio | 116,521 |
VIP FundsManager 85% Portfolio | 46,832 |
In addition, FMR has contractually agreed to reimburse 0.10% of class-level expenses for each fund's Service class and Service Class 2. During the period, this reimbursement reduced each fund's Service class and Service class 2's expenses by the following amounts:
| Reimbursement |
VIP FundsManager 20% Portfolio | |
Service Class | $ 32 |
Service Class 2 | 190 |
VIP FundsManager 50% Portfolio | |
Service Class | 36 |
Service Class 2 | 398 |
VIP FundsManager 60% Portfolio | |
Service Class | 26 |
Service Class 2 | 44 |
VIP FundsManager 70% Portfolio | |
Service Class | 34 |
Service Class 2 | 893 |
VIP FundsManager 85% Portfolio | |
Service Class | 52 |
Service Class 2 | 534 |
6. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Six months ended
June 30,
2010 | Year ended
December 31,
2009 |
VIP FundsManager 20% Portfolio | | |
From net investment income | | |
Service Class | $ - | $ 965 |
Service Class 2 | - | 4,885 |
Investor Class | - | 4,250,965 |
Total | $ - | $ 4,256,815 |
From net realized gain | | |
Service Class | $ - | $ 36 |
Service Class 2 | - | 189 |
Investor Class | - | 158,421 |
Total | $ - | $ 158,646 |
VIP FundsManager 50% Portfolio | | |
From net investment income | | |
Service Class | $ - | $ 930 |
Service Class 2 | - | 8,449 |
Investor Class | - | 8,306,903 |
Total | $ - | $ 8,316,282 |
From net realized gain | | |
Service Class | $ - | $ 62 |
Service Class 2 | - | 595 |
Investor Class | - | 557,510 |
Total | $ - | $ 558,167 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Distributions to Shareholders - continued
Distributions to shareholders of each class were as follows: - continued
| Six months ended
June 30,
2010 | Year ended
December 31,
2009 |
VIP FundsManager 60% Portfolio | | |
From net investment income | | |
Service Class | $ - | $ 772 |
Service Class 2 | - | 1,144 |
Investor Class | - | 17,218,833 |
Total | $ - | $ 17,220,749 |
From net realized gain | | |
Service Class | $ - | $ 69 |
Service Class 2 | - | 111 |
Investor Class | - | 1,541,985 |
Total | $ - | $ 1,542,165 |
VIP FundsManager 70% Portfolio | | |
From net investment income | | |
Service Class | $ - | $ 954 |
Service Class 2 | - | 19,060 |
Investor Class | - | 6,246,398 |
Total | $ - | $ 6,266,412 |
From net realized gain | | |
Service Class | $ - | $ 79 |
Service Class 2 | - | 1,687 |
Investor Class | - | 520,533 |
Total | $ - | $ 522,299 |
VIP FundsManager 85% Portfolio | | |
From net investment income | | |
Service Class | $ - | $ 1,310 |
Service Class 2 | - | 9,829 |
Investor Class | - | 2,108,917 |
Total | $ - | $ 2,120,056 |
From net realized gain | | |
Service Class | $ 67 | $ 152 |
Service Class 2 | 570 | 1,201 |
Investor Class | 113,274 | 244,190 |
Total | $ 113,911 | $ 245,543 |
7. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Dollars |
| Six months ended
June 30,
2010 | Year ended
December 31,
2009 | Six months ended
June 30,
2010 | Year ended
December 31,
2009 |
VIP FundsManager 20% Portfolio | | | | |
Service Class | | | | |
Shares sold | 394 | 978 | $ 3,975 | $ 9,382 |
Reinvestment of distributions | - | 99 | - | 1,001 |
Shares redeemed | (260) | (4,477) | (2,649) | (42,902) |
Net increase (decrease) | 134 | (3,400) | $ 1,326 | $ (32,519) |
Service Class 2 | | | | |
Shares sold | 20,602 | 45,211 | $ 209,826 | $ 452,984 |
Reinvestment of distributions | - | 503 | - | 5,074 |
Shares redeemed | (18,475) | (13,023) | (186,277) | (128,156) |
Net increase (decrease) | 2,127 | 32,691 | $ 23,549 | $ 329,902 |
Semiannual Report
7. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
| Six months ended
June 30,
2010 | Year ended
December 31,
2009 | Six months ended
June 30,
2010 | Year ended
December 31,
2009 |
Investor Class | | | | |
Shares sold | 5,669,755 | 11,891,398 | $ 57,768,728 | $ 116,489,148 |
Reinvestment of distributions | - | 437,439 | - | 4,409,386 |
Shares redeemed | (934,319) | (1,934,550) | (9,549,377) | (18,161,417) |
Net increase (decrease) | 4,735,436 | 10,394,287 | $ 48,219,351 | $ 102,737,117 |
VIP FundsManager 50% Portfolio | | | | |
Service Class | | | | |
Shares sold | 5,202 | 454 | $ 48,530 | $ 3,627 |
Reinvestment of distributions | - | 108 | - | 992 |
Shares redeemed | (2,548) | (3,965) | (22,986) | (32,043) |
Net increase (decrease) | 2,654 | (3,403) | $ 25,544 | $ (27,424) |
Service Class 2 | | | | |
Shares sold | 58,149 | 56,741 | $ 542,691 | $ 491,928 |
Reinvestment of distributions | - | 989 | - | 9,044 |
Shares redeemed | (4,610) | (27,505) | (42,366) | (222,177) |
Net increase (decrease) | 53,539 | 30,225 | $ 500,325 | $ 278,795 |
Investor Class | | | | |
Shares sold | 5,864,423 | 16,534,289 | $ 54,398,798 | $ 139,580,121 |
Reinvestment of distributions | - | 968,788 | - | 8,864,413 |
Shares redeemed | (2,188,142) | (3,370,095) | (20,275,007) | (25,453,963) |
Net increase (decrease) | 3,676,281 | 14,132,982 | $ 34,123,791 | $ 122,990,571 |
VIP FundsManager 60% Portfolio | | | | |
Service Class | | | | |
Shares sold | 113 | 478 | $ 1,002 | $ 3,601 |
Reinvestment of distributions | - | 95 | - | 841 |
Shares redeemed | (45) | (3,590) | (407) | (27,407) |
Net increase (decrease) | 68 | (3,017) | $ 595 | $ (22,965) |
Service Class 2 | | | | |
Shares sold | 2,227 | 2,609 | $ 19,982 | $ 23,283 |
Reinvestment of distributions | - | 141 | - | 1,255 |
Shares redeemed | (8) | (3,710) | (73) | (28,584) |
Net increase (decrease) | 2,219 | (960) | $ 19,909 | $ (4,046) |
Investor Class | | | | |
Shares sold | 58,656,953 | 51,668,258 | $ 524,637,030 | $ 378,354,498 |
Reinvestment of distributions | - | 2,115,087 | - | 18,760,818 |
Shares redeemed | (3,453,666) | (3,393,129) | (30,830,609) | (27,044,136) |
Net increase (decrease) | 55,203,287 | 50,390,216 | $ 493,806,421 | $ 370,071,180 |
VIP FundsManager 70% Portfolio | | | | |
Service Class | | | | |
Shares sold | 45 | 2,046 | $ 380 | $ 16,601 |
Reinvestment of distributions | - | 122 | - | 1,033 |
Shares redeemed | (1,212) | (3,960) | (9,879) | (28,297) |
Net increase (decrease) | (1,167) | (1,792) | $ (9,499) | $ (10,663) |
Service Class 2 | | | | |
Shares sold | 80,416 | 152,449 | $ 683,081 | $ 1,136,136 |
Reinvestment of distributions | - | 2,452 | - | 20,747 |
Shares redeemed | (2,225) | (13,185) | (18,870) | (90,944) |
Net increase (decrease) | 78,191 | 141,716 | $ 664,211 | $ 1,065,939 |
Investor Class | | | | |
Shares sold | 4,719,539 | 9,719,700 | $ 40,587,255 | $ 74,393,886 |
Reinvestment of distributions | - | 798,929 | - | 6,766,931 |
Shares redeemed | (2,541,783) | (4,438,759) | (21,595,812) | (30,831,603) |
Net increase (decrease) | 2,177,756 | 6,079,870 | $ 18,991,443 | $ 50,329,214 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
7. Share Transactions - continued
Transactions for each class of shares were as follows: - continued
| Shares | Dollars |
| Six months ended
June 30,
2010 | Year ended
December 31,
2009 | Six months ended
June 30,
2010 | Year ended
December 31,
2009 |
VIP FundsManager 85% Portfolio | | | | |
Service Class | | | | |
Shares sold | 555 | 10,810 | $ 4,527 | $ 71,154 |
Reinvestment of distributions | 9 | 181 | 67 | 1,462 |
Shares redeemed | (3,311) | (6,861) | (26,816) | (48,740) |
Net increase (decrease) | (2,747) | 4,130 | $ (22,222) | $ 23,876 |
Service Class 2 | | | | |
Shares sold | 64,324 | 85,708 | $ 527,373 | $ 619,194 |
Reinvestment of distributions | 74 | 1,367 | 570 | 11,030 |
Shares redeemed | (13,190) | (16,653) | (107,469) | (102,557) |
Net increase (decrease) | 51,208 | 70,422 | $ 420,474 | $ 527,667 |
Investor Class | | | | |
Shares sold | 3,095,355 | 6,302,037 | $ 25,718,689 | $ 43,671,055 |
Reinvestment of distributions | 14,597 | 290,866 | 113,274 | 2,353,107 |
Shares redeemed | (2,351,377) | (3,180,587) | (18,664,672) | (19,992,145) |
Net increase (decrease) | 758,575 | 3,412,316 | $ 7,167,291 | $ 26,032,017 |
8. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
The Funds do not invest in the Underlying Funds for the purpose of exercising management or control; however, investments by the Funds within their principal investment strategies may represent a significant portion of the Underlying Fund's net assets. At the end of the period, the following VIP FundsManager Portfolios were the owners of record of 10% or more of the total outstanding shares of the Underlying Funds.
Fund | VIP FundsManager 60% Portfolio |
Fidelity Select Consumer Discretionary Portfolio | 23% |
Fidelity Select Industrials Portfolio | 12% |
Fidelity Select Insurance Portfolio | 12% |
The Funds, in aggregate, were the owners of record of more than 20% of the total outstanding shares of the following Underlying Funds.
| % of shares held |
Fidelity Select Consumer Discretionary Portfolio | 34% |
Fidelity Select Industrials Portfolio | 23% |
Fidelity Select Insurance Portfolio | 23% |
In addition, at the end of the period, FMR or its affiliates were owners of record of more than 10% of the outstanding shares of the following funds:
| Affiliated % |
VIP FundsManager 20% Portfolio | 99% |
VIP FundsManager 50% Portfolio | 99% |
VIP FundsManager 60% Portfolio | 69% |
VIP FundsManager 70% Portfolio | 99% |
VIP FundsManager 85% Portfolio | 99% |
Semiannual Report
Investment Adviser
Strategic Advisers, Inc.
Boston, MA
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
VIPFM-SANN-0810
1.833444.104
Fidelity® Variable Insurance Products:
Investor Freedom® Funds -
Income, 2005, 2010, 2015, 2020, 2025, 2030
Semiannual Report
June 30, 2010
(2_fidelity_logos) (Registered_Trademark)
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.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Semiannual Report
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds 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 (January 1, 2010 to June 30, 2010).
Actual Expenses
The first line of the accompanying table for each fund 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 fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. 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. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's 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. 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. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.
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.
| Annualized
Expense Ratio | Beginning
Account Value
January 1, 2010 | Ending
Account Value
June 30, 2010 | Expenses Paid
During Period*
January 1, 2010 to
June 30, 2010 |
VIP Investor Freedom Income | .00% | | | |
Actual | | $ 1,000.00 | $ 1,010.60 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
VIP Investor Freedom 2005 | .00% | | | |
Actual | | $ 1,000.00 | $ 990.80 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
VIP Investor Freedom 2010 | .00% | | | |
Actual | | $ 1,000.00 | $ 986.90 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
VIP Investor Freedom 2015 | .00% | | | |
Actual | | $ 1,000.00 | $ 985.20 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
VIP Investor Freedom 2020 | .00% | | | |
Actual | | $ 1,000.00 | $ 974.30 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
VIP Investor Freedom 2025 | .00% | | | |
Actual | | $ 1,000.00 | $ 965.60 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
VIP Investor Freedom 2030 | .00% | | | |
Actual | | $ 1,000.00 | $ 958.70 | $ .00 |
HypotheticalA | | $ 1,000.00 | $ 1,024.79 | $ .00 |
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Fund invests are not included in the Fund's annualized expense ratio.
Semiannual Report
VIP Investor Freedom Income Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 2.6 | 3.3 |
VIP Equity-Income Portfolio Investor Class | 3.0 | 3.7 |
VIP Growth & Income Portfolio Investor Class | 3.0 | 3.7 |
VIP Growth Portfolio Investor Class | 3.0 | 3.8 |
VIP Mid Cap Portfolio Investor Class | 1.1 | 1.3 |
VIP Value Portfolio Investor Class | 2.6 | 3.3 |
VIP Value Strategies Portfolio Investor Class | 1.1 | 1.4 |
| 16.4 | 20.5 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 3.1 | 0.0 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 0.3 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 5.0 | 5.1 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 35.1 | 34.7 |
Short-Term Funds | | |
VIP Money Market Portfolio Investor Class | 40.1 | 39.7 |
Net Other Assets | | |
Net Other Assets* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 16.4% | |
| Developed International Equity Funds | 3.1% | |
| Emerging Markets Equity Funds | 0.3% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 35.1% | |
| Short-Term Funds | 40.1% | |
Six months ago |
| Domestic Equity Funds | 20.5% | �� |
| Investment Grade Bond Funds | 34.7% | |
| High Yield Bond Funds | 5.1% | |
| Short-Term Funds | 39.7% | |
Expected |
| Domestic Equity Funds | 14.6% | |
| Developed International Equity Funds | 4.6% | |
| Emerging Markets Equity Funds | 0.8% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 35.0% | |
| Short-Term Funds | 40.0% | |
The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Investor Freedom Income Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 16.4% |
| Shares | | Value |
Domestic Equity Funds - 16.4% |
VIP Contrafund Portfolio Investor Class | 39,477 | | $ 757,174 |
VIP Equity-Income Portfolio Investor Class | 56,635 | | 880,675 |
VIP Growth & Income Portfolio Investor Class | 86,719 | | 881,064 |
VIP Growth Portfolio Investor Class | 31,001 | | 881,676 |
VIP Mid Cap Portfolio Investor Class | 12,265 | | 316,196 |
VIP Value Portfolio Investor Class | 83,576 | | 756,363 |
VIP Value Strategies Portfolio Investor Class | 41,811 | | 315,672 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $5,992,873) | 4,788,820 |
International Equity Funds - 3.4% |
| | | |
Developed International Equity Funds - 3.1% |
VIP Overseas Portfolio Investor Class R | 70,592 | | 915,577 |
Emerging Markets Equity Funds - 0.3% |
VIP Emerging Markets Portfolio Investor Class R | 11,199 | | 87,467 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $1,055,857) | 1,003,044 |
Bond Funds - 40.1% |
| | | |
High Yield Bond Funds - 5.0% |
VIP High Income Portfolio Investor Class | 268,019 | | 1,460,702 |
Investment Grade Bond Funds - 35.1% |
VIP Investment Grade Bond Portfolio Investor Class | 780,838 | | 10,252,404 |
TOTAL BOND FUNDS (Cost $11,302,266) | 11,713,106 |
Short-Term Funds - 40.1% |
| | | |
VIP Money Market Portfolio Investor Class
(Cost $11,708,631) | 11,708,631 | | 11,708,631 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $30,059,627) | | 29,213,601 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (78) |
NET ASSETS - 100% | $ 29,213,523 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom Income Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $30,059,627) - See accompanying schedule | | $ 29,213,601 |
Cash | | 44 |
Receivable for investments sold | | 221 |
Total assets | | 29,213,866 |
| | |
Liabilities | | |
Payable for investments purchased | $ 123 | |
Payable for fund shares redeemed | 220 | |
Total liabilities | | 343 |
| | |
Net Assets | | $ 29,213,523 |
Net Assets consist of: | | |
Paid in capital | | $ 30,162,561 |
Undistributed net investment income | | 15,850 |
Accumulated undistributed net realized gain (loss) on investments | | (118,862) |
Net unrealized appreciation (depreciation) on investments | | (846,026) |
Net Assets, for 2,908,808 shares outstanding | | $ 29,213,523 |
Net Asset Value, offering price and redemption price per share ($29,213,523 ÷ 2,908,808 shares) | | $ 10.04 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 15,850 |
| | |
Expenses | | |
Independent trustees' compensation | $ 47 | |
Total expenses before reductions | 47 | |
Expense reductions | (47) | 0 |
Net investment income (loss) | | 15,850 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 41,609 | |
Capital gain distributions from underlying funds | 1,485 | 43,094 |
Change in net unrealized appreciation (depreciation) on underlying funds | | 218,098 |
Net gain (loss) | | 261,192 |
Net increase (decrease) in net assets resulting from operations | | $ 277,042 |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 15,850 | $ 821,415 |
Net realized gain (loss) | 43,094 | 259,629 |
Change in net unrealized appreciation (depreciation) | 218,098 | 1,652,529 |
Net increase (decrease) in net assets resulting from operations | 277,042 | 2,733,573 |
Distributions to shareholders from net investment income | - | (825,260) |
Distributions to shareholders from net realized gain | (41,485) | (324,704) |
Total distributions | (41,485) | (1,149,964) |
Share transactions Proceeds from sales of shares | 5,383,695 | 10,383,033 |
Reinvestment of distributions | 41,485 | 1,149,964 |
Cost of shares redeemed | (1,821,446) | (5,013,877) |
Net increase (decrease) in net assets resulting from share transactions | 3,603,734 | 6,519,120 |
Total increase (decrease) in net assets | 3,839,291 | 8,102,729 |
| | |
Net Assets | | |
Beginning of period | 25,374,232 | 17,271,503 |
End of period (including undistributed net investment income of $15,850 and $0, respectively) | $ 29,213,523 | $ 25,374,232 |
Other Information Shares | | |
Sold | 534,402 | 1,063,280 |
Issued in reinvestment of distributions | 4,182 | 117,862 |
Redeemed | (179,429) | (529,653) |
Net increase (decrease) | 359,155 | 651,489 |
Financial Highlights
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.95 | $ 9.10 | $ 10.79 | $ 10.78 | $ 10.14 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | .01 | .40 | .34 | .42 | .35 | .16 |
Net realized and unrealized gain (loss) | .10 | .94 | (1.47) | .22 | .34 | (.02) |
Total from investment operations | .11 | 1.34 | (1.13) | .64 | .69 | .14 |
Distributions from net investment income | - | (.33) | (.37) | (.58) | (.05) | - |
Distributions from net realized gain | (.02) | (.16) | (.19) | (.06) | - | - |
Total distributions | (.02) | (.49) | (.56) | (.63) I | (.05) | - |
Net asset value, end of period | $ 10.04 | $ 9.95 | $ 9.10 | $ 10.79 | $ 10.78 | $ 10.14 |
Total Return B, C, D | 1.06% | 14.85% | (10.55)% | 6.08% | 6.83% | 1.40% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .11% A | 4.12% | 3.33% | 3.90% | 3.39% | 4.04% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 29,214 | $ 25,374 | $ 17,272 | $ 20,090 | $ 11,177 | $ 2,936 |
Portfolio turnover rate | 24% A | 30% | 53% | 38% | 40% | 1% |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period August 3, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests. I Total distributions of $.630 per share is comprised of distributions from net investment income of $.575 and distributions from net realized gain of $.055 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2005 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 5.3 | 6.1 |
VIP Equity-Income Portfolio Investor Class | 6.1 | 7.0 |
VIP Growth & Income Portfolio Investor Class | 6.2 | 7.0 |
VIP Growth Portfolio Investor Class | 6.2 | 7.1 |
VIP Mid Cap Portfolio Investor Class | 2.2 | 2.5 |
VIP Value Portfolio Investor Class | 5.3 | 6.2 |
VIP Value Strategies Portfolio Investor Class | 2.2 | 2.6 |
| 33.5 | 38.5 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 9.0 | 7.6 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 0.8 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 5.0 | 5.0 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 31.9 | 32.1 |
Short-Term Funds | | |
VIP Money Market Portfolio Investor Class | 19.8 | 16.8 |
Net Other Assets | | |
Net Other Assets* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1% |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 33.5% | |
| Developed International Equity Funds | 9.0% | |
| Emerging Markets Equity Funds | 0.8% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 31.9% | |
| Short-Term Funds | 19.8% | |
Six months ago |
| Domestic Equity Funds | 38.5% | |
| Developed International Equity Funds | 7.6% | |
| Investment Grade Bond Funds | 32.1% | |
| High Yield Bond Funds | 5.0% | |
| Short-Term Funds | 16.8% | |
Expected |
| Domestic Equity Funds | 30.8% | |
| Developed International Equity Funds | 9.5% | |
| Emerging Markets Equity Funds | 1.7% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 31.2% | |
| Short-Term Funds | 21.8% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Investor Freedom 2005 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 33.5% |
| Shares | | Value |
Domestic Equity Funds - 33.5% |
VIP Contrafund Portfolio Investor Class | 26,552 | | $ 509,261 |
VIP Equity-Income Portfolio Investor Class | 38,052 | | 591,705 |
VIP Growth & Income Portfolio Investor Class | 58,264 | | 591,967 |
VIP Growth Portfolio Investor Class | 20,829 | | 592,378 |
VIP Mid Cap Portfolio Investor Class | 8,243 | | 212,499 |
VIP Value Portfolio Investor Class | 56,212 | | 508,715 |
VIP Value Strategies Portfolio Investor Class | 28,099 | | 212,146 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $4,312,748) | 3,218,671 |
International Equity Funds - 9.8% |
| | | |
Developed International Equity Funds - 9.0% |
VIP Overseas Portfolio Investor Class R | 66,552 | | 863,178 |
Emerging Markets Equity Funds - 0.8% |
VIP Emerging Markets Portfolio Investor Class R | 10,594 | | 82,736 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $1,298,935) | 945,914 |
Bond Funds - 36.9% |
| | | |
High Yield Bond Funds - 5.0% |
VIP High Income Portfolio Investor Class | 88,438 | | 481,987 |
Investment Grade Bond Funds - 31.9% |
VIP Investment Grade Bond Portfolio Investor Class | 233,529 | | 3,066,239 |
TOTAL BOND FUNDS (Cost $3,410,589) | 3,548,226 |
Short-Term Funds - 19.8% |
| | | |
VIP Money Market Portfolio Investor Class
(Cost $1,906,637) | 1,906,637 | | 1,906,637 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $10,928,909) | | 9,619,448 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (20) |
NET ASSETS - 100% | $ 9,619,428 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2005 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $10,928,909) - See accompanying schedule | | $ 9,619,448 |
Receivable for investments sold | | 3,536 |
Total assets | | 9,622,984 |
| | |
Liabilities | | |
Payable to custodian bank | $ 2 | |
Payable for investments purchased | 21 | |
Payable for fund shares redeemed | 3,533 | |
Total liabilities | | 3,556 |
| | |
Net Assets | | $ 9,619,428 |
Net Assets consist of: | | |
Paid in capital | | $ 10,974,185 |
Undistributed net investment income | | 4,312 |
Accumulated undistributed net realized gain (loss) on investments | | (49,608) |
Net unrealized appreciation (depreciation) on investments | | (1,309,461) |
Net Assets, for 1,055,962 shares outstanding | | $ 9,619,428 |
Net Asset Value, offering price and redemption price per share ($9,619,428 ÷ 1,055,962 shares) | | $ 9.11 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 4,312 |
| | |
Expenses | | |
Independent trustees' compensation | $ 17 | |
Total expenses before reductions | 17 | |
Expense reductions | (17) | 0 |
Net investment income (loss) | | 4,312 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 47,865 | |
Capital gain distributions from underlying funds | 1,016 | 48,881 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (185,265) |
Net gain (loss) | | (136,384) |
Net increase (decrease) in net assets resulting from operations | | $ (132,072) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 4,312 | $ 319,887 |
Net realized gain (loss) | 48,881 | 48,273 |
Change in net unrealized appreciation (depreciation) | (185,265) | 1,146,173 |
Net increase (decrease) in net assets resulting from operations | (132,072) | 1,514,333 |
Distributions to shareholders from net investment income | - | (320,414) |
Distributions to shareholders from net realized gain | (15,914) | (123,688) |
Total distributions | (15,914) | (444,102) |
Share transactions Proceeds from sales of shares | 2,889,800 | 3,903,178 |
Reinvestment of distributions | 15,914 | 444,101 |
Cost of shares redeemed | (2,536,102) | (3,057,467) |
Net increase (decrease) in net assets resulting from share transactions | 369,612 | 1,289,812 |
Total increase (decrease) in net assets | 221,626 | 2,360,043 |
| | |
Net Assets | | |
Beginning of period | 9,397,802 | 7,037,759 |
End of period (including undistributed net investment income of $4,312 and $0, respectively) | $ 9,619,428 | $ 9,397,802 |
Other Information Shares | | |
Sold | 306,531 | 451,085 |
Issued in reinvestment of distributions | 1,753 | 51,238 |
Redeemed | (272,339) | (372,396) |
Net increase (decrease) | 35,945 | 129,927 |
Financial Highlights
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.21 | $ 7.91 | $ 11.53 | $ 11.17 | $ 10.24 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .35 | .32 | .35 | .26 | .10 |
Net realized and unrealized gain (loss) | (.08) | 1.41 | (3.00) | .59 | .73 | .14 |
Total from investment operations | (.08) | 1.76 | (2.68) | .94 | .99 | .24 |
Distributions from net investment income | - | (.33) | (.30) | (.46) | (.06) | - |
Distributions from net realized gain | (.02) | (.14) | (.64) | (.12) | - | - |
Total distributions | (.02) | (.46) J | (.94) | (.58) | (.06) | - |
Net asset value, end of period | $ 9.11 | $ 9.21 | $ 7.91 | $ 11.53 | $ 11.17 | $ 10.24 |
Total Return B, C, D | (.92)% | 22.71% | (23.91)% | 8.55% | 9.72% | 2.40% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .09% A | 4.12% | 3.19% | 3.02% | 2.47% | 2.45% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 9,619 | $ 9,398 | $ 7,038 | $ 8,568 | $ 4,851 | $ 2,019 |
Portfolio turnover rate | 70% A | 47% | 40% | 53% | 55% | 39% |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period August 3, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. J Total distributions of $.46 per share is comprised of distributions from net investment income of $.325 and distributions from net realized gain of $.135 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2010 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 5.9 | 6.5 |
VIP Equity-Income Portfolio Investor Class | 6.9 | 7.4 |
VIP Growth & Income Portfolio Investor Class | 6.9 | 7.5 |
VIP Growth Portfolio Investor Class | 6.9 | 7.6 |
VIP Mid Cap Portfolio Investor Class | 2.5 | 2.6 |
VIP Value Portfolio Investor Class | 5.9 | 6.5 |
VIP Value Strategies Portfolio Investor Class | 2.5 | 2.7 |
| 37.5 | 40.8 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 11.0 | 9.9 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 1.0 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 5.0 | 5.1 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 35.1 | 33.9 |
Short-Term Funds | | |
VIP Money Market Portfolio Investor Class | 10.4 | 10.3 |
Net Other Assets | | |
Net Other Assets* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 37.5% | |
| Developed International Equity Funds | 11.0% | |
| Emerging Markets Equity Funds | 1.0% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 35.1% | |
| Short-Term Funds | 10.4% | |
Six months ago |
| Domestic Equity Funds | 40.8% | |
| Developed International Equity Funds | 9.9% | |
| Investment Grade Bond Funds | 33.9% | |
| High Yield Bond Funds | 5.1% | |
| Short-Term Funds | 10.3% | |
Expected |
| Domestic Equity Funds | 36.3% | |
| Developed International Equity Funds | 11.3% | |
| Emerging Markets Equity Funds | 2.0% | |
| High Yield Bond Funds | 5.0% | |
| Investment Grade Bond Funds | 34.8% | |
| Short-Term Funds | 10.6% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Investor Freedom 2010 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 37.5% |
| Shares | | Value |
Domestic Equity Funds - 37.5% |
VIP Contrafund Portfolio Investor Class | 149,539 | | $ 2,868,166 |
VIP Equity-Income Portfolio Investor Class | 214,524 | | 3,335,853 |
VIP Growth & Income Portfolio Investor Class | 328,477 | | 3,337,330 |
VIP Growth Portfolio Investor Class | 117,428 | | 3,339,647 |
VIP Mid Cap Portfolio Investor Class | 46,556 | | 1,200,222 |
VIP Value Portfolio Investor Class | 316,585 | | 2,865,094 |
VIP Value Strategies Portfolio Investor Class | 158,706 | | 1,198,233 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $26,308,219) | 18,144,545 |
International Equity Funds - 12.0% |
| | | |
Developed International Equity Funds - 11.0% |
VIP Overseas Portfolio Investor Class R | 409,609 | | 5,312,628 |
Emerging Markets Equity Funds - 1.0% |
VIP Emerging Markets Portfolio Investor Class R | 65,132 | | 508,680 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $8,590,191) | 5,821,308 |
Bond Funds - 40.1% |
| | | |
High Yield Bond Funds - 5.0% |
VIP High Income Portfolio Investor Class | 445,346 | | 2,427,137 |
Investment Grade Bond Funds - 35.1% |
VIP Investment Grade Bond Portfolio Investor Class | 1,293,763 | | 16,987,104 |
TOTAL BOND FUNDS (Cost $18,935,420) | 19,414,241 |
Short-Term Funds - 10.4% |
| | | |
VIP Money Market Portfolio Investor Class
(Cost $5,034,068) | 5,034,068 | | 5,034,068 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $58,867,898) | | 48,414,162 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (51) |
NET ASSETS - 100% | $ 48,414,111 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
Income Tax Information |
At December 31, 2009, the Fund had a capital loss carryforward of approximately $221,966 all of which will expire on December 31, 2017. Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2010 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $58,867,898) - See accompanying schedule | | $ 48,414,162 |
Cash | | 6 |
Receivable for investments sold | | 12,976 |
Total assets | | 48,427,144 |
| | |
Liabilities | | |
Payable for investments purchased | $ 55 | |
Payable for fund shares redeemed | 12,978 | |
Total liabilities | | 13,033 |
| | |
Net Assets | | $ 48,414,111 |
Net Assets consist of: | | |
Paid in capital | | $ 59,558,036 |
Undistributed net investment income | | 19,934 |
Accumulated undistributed net realized gain (loss) on investments | | (710,123) |
Net unrealized appreciation (depreciation) on investments | | (10,453,736) |
Net Assets, for 5,366,111 shares outstanding | | $ 48,414,111 |
Net Asset Value, offering price and redemption price per share ($48,414,111 ÷ 5,366,111 shares) | | $ 9.02 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 19,934 |
| | |
Expenses | | |
Independent trustees' compensation | $ 83 | |
Total expenses before reductions | 83 | |
Expense reductions | (83) | 0 |
Net investment income (loss) | | 19,934 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (93,790) | |
Capital gain distributions from underlying funds | 5,285 | (88,505) |
Change in net unrealized appreciation (depreciation) on underlying funds | | (647,780) |
Net gain (loss) | | (736,285) |
Net increase (decrease) in net assets resulting from operations | | $ (716,351) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 19,934 | $ 1,770,049 |
Net realized gain (loss) | (88,505) | 367,370 |
Change in net unrealized appreciation (depreciation) | (647,780) | 6,909,808 |
Net increase (decrease) in net assets resulting from operations | (716,351) | 9,047,227 |
Distributions to shareholders from net investment income | - | (1,753,497) |
Distributions to shareholders from net realized gain | - | (622,106) |
Total distributions | - | (2,375,603) |
Share transactions Proceeds from sales of shares | 5,168,439 | 7,875,090 |
Reinvestment of distributions | - | 2,375,602 |
Cost of shares redeemed | (3,709,344) | (10,455,534) |
Net increase (decrease) in net assets resulting from share transactions | 1,459,095 | (204,842) |
Total increase (decrease) in net assets | 742,744 | 6,466,782 |
| | |
Net Assets | | |
Beginning of period | 47,671,367 | 41,204,585 |
End of period (including undistributed net investment income of $19,934 and $0, respectively) | $ 48,414,111 | $ 47,671,367 |
Other Information Shares | | |
Sold | 552,883 | 908,844 |
Issued in reinvestment of distributions | - | 275,332 |
Redeemed | (400,152) | (1,275,197) |
Net increase (decrease) | 152,731 | (91,021) |
Financial Highlights
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.14 | $ 7.77 | $ 11.56 | $ 11.19 | $ 10.26 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .35 | .30 | .33 | .24 | .13 |
Net realized and unrealized gain (loss) | (.12) | 1.49 | (3.12) | .62 | .73 | .13 |
Total from investment operations | (.12) | 1.84 | (2.82) | .95 | .97 | .26 |
Distributions from net investment income | - | (.35) | (.33) | (.44) | (.04) | - |
Distributions from net realized gain | - | (.12) | (.64) | (.14) | - | - |
Total distributions | - | (.47) | (.97) | (.58) | (.04) | - |
Net asset value, end of period | $ 9.02 | $ 9.14 | $ 7.77 | $ 11.56 | $ 11.19 | $ 10.26 |
Total Return B, C, D | (1.31)% | 24.09% | (24.99)% | 8.63% | 9.49% | 2.60% |
Ratios to Average Net Assets F, H | | | | | | |
Expenses before reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .08% A | 4.18% | 3.01% | 2.90% | 2.29% | 3.14% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 48,414 | $ 47,671 | $ 41,205 | $ 57,197 | $ 31,460 | $ 9,992 |
Portfolio turnover rate | 32% A | 28% | 40% | 14% | 29% | 0% |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period August 3, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2015 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 6.1 | 6.7 |
VIP Equity-Income Portfolio Investor Class | 7.1 | 7.7 |
VIP Growth & Income Portfolio Investor Class | 7.1 | 7.7 |
VIP Growth Portfolio Investor Class | 7.1 | 7.9 |
VIP Mid Cap Portfolio Investor Class | 2.6 | 2.8 |
VIP Value Portfolio Investor Class | 6.1 | 6.8 |
VIP Value Strategies Portfolio Investor Class | 2.5 | 2.8 |
| 38.6 | 42.4 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 11.3 | 10.3 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 1.1 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 5.1 | 5.3 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 34.6 | 33.4 |
Short-Term Funds | | |
VIP Money Market Portfolio Investor Class | 9.3 | 8.6 |
Net Other Assets | | |
Net Other Assets* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 38.6% | |
| Developed International Equity Funds | 11.3% | |
 | Emerging Markets Equity Funds | 1.1% | |
| High Yield Bond Funds | 5.1% | |
 | Investment Grade Bond Funds | 34.6% | |
| Short-Term Funds | 9.3% | |
Six months ago |
| Domestic Equity Funds | 42.4% | |
| Developed International Equity Funds | 10.3% | |
| Investment Grade Bond Funds | 33.4% | |
| High Yield Bond Funds | 5.3% | |
| Short-Term Funds | 8.6% | |
Expected |
 | Domestic Equity Funds | 37.3% | |
| Developed International Equity Funds | 11.6% | |
| Emerging Markets Equity Funds | 2.0% | |
| High Yield Bond Funds | 5.1% | |
| Investment Grade Bond Funds | 34.6% | |
| Short-Term Funds | 9.4% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Investor Freedom 2015 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 38.6% |
| Shares | | Value |
Domestic Equity Funds - 38.6% |
VIP Contrafund Portfolio Investor Class | 184,753 | | $ 3,543,568 |
VIP Equity-Income Portfolio Investor Class | 265,054 | | 4,121,582 |
VIP Growth & Income Portfolio Investor Class | 405,847 | | 4,123,409 |
VIP Growth Portfolio Investor Class | 145,087 | | 4,126,276 |
VIP Mid Cap Portfolio Investor Class | 57,400 | | 1,479,773 |
VIP Value Portfolio Investor Class | 391,134 | | 3,539,767 |
VIP Value Strategies Portfolio Investor Class | 195,671 | | 1,477,317 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $31,577,305) | 22,411,692 |
International Equity Funds - 12.4% |
| | | |
Developed International Equity Funds - 11.3% |
VIP Overseas Portfolio Investor Class R | 507,282 | | 6,579,443 |
Emerging Markets Equity Funds - 1.1% |
VIP Emerging Markets Portfolio Investor Class R | 81,082 | | 633,254 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $10,260,771) | 7,212,697 |
Bond Funds - 39.7% |
| | | |
High Yield Bond Funds - 5.1% |
VIP High Income Portfolio Investor Class | 545,816 | | 2,974,695 |
Investment Grade Bond Funds - 34.6% |
VIP Investment Grade Bond Portfolio Investor Class | 1,528,851 | | 20,073,816 |
TOTAL BOND FUNDS (Cost $22,346,815) | 23,048,511 |
Short-Term Funds - 9.3% |
| | | |
VIP Money Market Portfolio Investor Class
(Cost $5,377,845) | 5,377,845 | | 5,377,845 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $69,562,736) | | 58,050,745 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (57) |
NET ASSETS - 100% | $ 58,050,688 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2015 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $69,562,736) - See accompanying schedule | | $ 58,050,745 |
Receivable for investments sold | | 97,860 |
Receivable for fund shares sold | | 1,115 |
Total assets | | 58,149,720 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1 | |
Payable for investments purchased | 59 | |
Payable for fund shares redeemed | 98,972 | |
Total liabilities | | 99,032 |
| | |
Net Assets | | $ 58,050,688 |
Net Assets consist of: | | |
Paid in capital | | $ 69,633,006 |
Undistributed net investment income | | 19,559 |
Accumulated undistributed net realized gain (loss) on investments | | (89,886) |
Net unrealized appreciation (depreciation) on investments | | (11,511,991) |
Net Assets, for 6,513,375 shares outstanding | | $ 58,050,688 |
Net Asset Value, offering price and redemption price per share ($58,050,688 ÷ 6,513,375 shares) | | $ 8.91 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 24,371 |
| | |
Expenses | | |
Independent trustees' compensation | $ 105 | |
Total expenses before reductions | 105 | |
Expense reductions | (105) | 0 |
Net investment income (loss) | | 24,371 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 355,478 | |
Capital gain distributions from underlying funds | 6,911 | 362,389 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (1,299,275) |
Net gain (loss) | | (936,886) |
Net increase (decrease) in net assets resulting from operations | | $ (912,515) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 24,371 | $ 2,120,406 |
Net realized gain (loss) | 362,389 | 1,123,545 |
Change in net unrealized appreciation (depreciation) | (1,299,275) | 8,638,802 |
Net increase (decrease) in net assets resulting from operations | (912,515) | 11,882,753 |
Distributions to shareholders from net investment income | (33,208) | (2,103,913) |
Distributions to shareholders from net realized gain | (398,499) | (992,936) |
Total distributions | (431,707) | (3,096,849) |
Share transactions Proceeds from sales of shares | 5,602,734 | 8,251,446 |
Reinvestment of distributions | 431,708 | 3,096,849 |
Cost of shares redeemed | (6,672,122) | (8,188,140) |
Net increase (decrease) in net assets resulting from share transactions | (637,680) | 3,160,155 |
Total increase (decrease) in net assets | (1,981,902) | 11,946,059 |
| | |
Net Assets | | |
Beginning of period | 60,032,590 | 48,086,531 |
End of period (including undistributed net investment income of $19,559 and undistributed net investment income of $28,396, respectively) | $ 58,050,688 | $ 60,032,590 |
Other Information Shares | | |
Sold | 602,833 | 982,434 |
Issued in reinvestment of distributions | 48,506 | 354,719 |
Redeemed | (725,500) | (1,000,041) |
Net increase (decrease) | (74,161) | 337,112 |
Financial Highlights
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 9.11 | $ 7.69 | $ 11.86 | $ 11.40 | $ 10.32 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .34 | .30 | .33 | .20 | .13 |
Net realized and unrealized gain (loss) | (.13) | 1.58 | (3.41) | .71 | .92 | .19 |
Total from investment operations | (.13) | 1.92 | (3.11) | 1.04 | 1.12 | .32 |
Distributions from net investment income | (.01) | (.34) | (.30) | (.42) | (.04) | - |
Distributions from net realized gain | (.06) | (.16) | (.76) | (.16) | - | - |
Total distributions | (.07) | (.50) | (1.06) | (.58) | (.04) | - |
Net asset value, end of period | $ 8.91 | $ 9.11 | $ 7.69 | $ 11.86 | $ 11.40 | $ 10.32 |
Total Return B,C,D | (1.48)% | 25.25% | (27.11)% | 9.26% | 10.89% | 3.20% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .08% A | 4.08% | 2.98% | 2.83% | 1.83% | 3.24% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 58,051 | $ 60,033 | $ 48,087 | $ 61,370 | $ 39,838 | $ 6,939 |
Portfolio turnover rate | 35% A | 22% | 29% | 14% | 15% | 9% |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period August 3, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2020 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 7.4 | 8.2 |
VIP Equity-Income Portfolio Investor Class | 8.6 | 9.4 |
VIP Growth & Income Portfolio Investor Class | 8.6 | 9.5 |
VIP Growth Portfolio Investor Class | 8.6 | 9.6 |
VIP Mid Cap Portfolio Investor Class | 3.1 | 3.3 |
VIP Value Portfolio Investor Class | 7.3 | 8.3 |
VIP Value Strategies Portfolio Investor Class | 3.0 | 3.5 |
| 46.6 | 51.8 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 13.7 | 12.6 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 1.3 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 6.9 | 7.2 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 28.5 | 26.4 |
Short-Term Funds | | |
VIP Money Market Portfolio Investor Class | 3.0 | 2.0 |
Net Other Assets | | |
Net Other Assets* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1% |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 46.6% | |
| Developed International Equity Funds | 13.7% | |
| Emerging Markets Equity Funds | 1.3% | |
| High Yield Bond Funds | 6.9% | |
| Investment Grade Bond Funds | 28.5% | |
| Short-Term Funds | 3.0% | |
Six months ago |
| Domestic Equity Funds | 51.8% | |
| Developed International Equity Funds | 12.6% | |
| Investment Grade Bond Funds | 26.4% | |
| High Yield Bond Funds | 7.2% | |
| Short-Term Funds | 2.0% | |
Expected |
| Domestic Equity Funds | 44.3% | |
| Developed International Equity Funds | 13.7% | |
| Emerging Markets Equity Funds | 2.4% | |
| High Yield Bond Funds | 6.6% | |
| Investment Grade Bond Funds | 29.3% | |
| Short-Term Funds | 3.7% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Investor Freedom 2020 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 46.6% |
| Shares | | Value |
Domestic Equity Funds - 46.6% |
VIP Contrafund Portfolio Investor Class | 310,209 | | $ 5,949,805 |
VIP Equity-Income Portfolio Investor Class | 445,076 | | 6,920,925 |
VIP Growth & Income Portfolio Investor Class | 681,495 | | 6,923,991 |
VIP Growth Portfolio Investor Class | 243,629 | | 6,928,802 |
VIP Mid Cap Portfolio Investor Class | 96,365 | | 2,484,302 |
VIP Value Portfolio Investor Class | 656,732 | | 5,943,427 |
VIP Value Strategies Portfolio Investor Class | 328,501 | | 2,480,181 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $52,620,245) | 37,631,433 |
International Equity Funds - 15.0% |
| | | |
Developed International Equity Funds - 13.7% |
VIP Overseas Portfolio Investor Class R | 851,527 | | 11,044,308 |
Emerging Markets Equity Funds - 1.3% |
VIP Emerging Markets Portfolio Investor Class R | 135,538 | | 1,058,551 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $17,150,346) | 12,102,859 |
Bond Funds - 35.4% |
| | | |
High Yield Bond Funds - 6.9% |
VIP High Income Portfolio Investor Class | 1,017,664 | | 5,546,271 |
Investment Grade Bond Funds - 28.5% |
VIP Investment Grade Bond Portfolio Investor Class | 1,750,825 | | 22,988,327 |
TOTAL BOND FUNDS (Cost $28,015,283) | 28,534,598 |
Short-Term Funds - 3.0% |
| | | |
VIP Money Market Portfolio Investor Class
(Cost $2,393,239) | 2,393,239 | | 2,393,239 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $100,179,113) | | 80,662,129 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | 4 |
NET ASSETS - 100% | $ 80,662,133 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2020 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $100,179,113) - See accompanying schedule | | $ 80,662,129 |
Cash | | 31 |
Receivable for investments sold | | 87,593 |
Total assets | | 80,749,753 |
| | |
Liabilities | | |
Payable for investments purchased | $ 25 | |
Payable for fund shares redeemed | 87,595 | |
Total liabilities | | 87,620 |
| | |
Net Assets | | $ 80,662,133 |
Net Assets consist of: | | |
Paid in capital | | $ 100,583,442 |
Undistributed net investment income | | 26,559 |
Accumulated undistributed net realized gain (loss) on investments | | (430,884) |
Net unrealized appreciation (depreciation) on investments | | (19,516,984) |
Net Assets, for 9,483,324 shares outstanding | | $ 80,662,133 |
Net Asset Value, offering price and redemption price per share ($80,662,133 ÷ 9,483,324 shares) | | $ 8.51 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 26,559 |
| | |
Expenses | | |
Independent trustees' compensation | $ 141 | |
Total expenses before reductions | 141 | |
Expense reductions | (141) | 0 |
Net investment income (loss) | | 26,559 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 264,417 | |
Capital gain distributions from underlying funds | 11,374 | 275,791 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (2,627,098) |
Net gain (loss) | | (2,351,307) |
Net increase (decrease) in net assets resulting from operations | | $ (2,324,748) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 26,559 | $ 2,475,413 |
Net realized gain (loss) | 275,791 | 541,874 |
Change in net unrealized appreciation (depreciation) | (2,627,098) | 13,314,509 |
Net increase (decrease) in net assets resulting from operations | (2,324,748) | 16,331,796 |
Distributions to shareholders from net investment income | - | (2,473,776) |
Distributions to shareholders from net realized gain | (322,497) | (694,013) |
Total distributions | (322,497) | (3,167,789) |
Share transactions Proceeds from sales of shares | 8,862,678 | 14,627,983 |
Reinvestment of distributions | 322,497 | 3,167,789 |
Cost of shares redeemed | (6,353,591) | (9,604,524) |
Net increase (decrease) in net assets resulting from share transactions | 2,831,584 | 8,191,248 |
Total increase (decrease) in net assets | 184,339 | 21,355,255 |
| | |
Net Assets | | |
Beginning of period | 80,477,794 | 59,122,539 |
End of period (including undistributed net investment income of $26,559 and $0, respectively) | $ 80,662,133 | $ 80,477,794 |
Other Information Shares | | |
Sold | 990,304 | 1,781,445 |
Issued in reinvestment of distributions | 37,763 | 387,658 |
Redeemed | (723,626) | (1,296,073) |
Net increase (decrease) | 304,441 | 873,030 |
Financial Highlights
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.77 | $ 7.12 | $ 12.09 | $ 11.53 | $ 10.36 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss)E | - I | .30 | .27 | .31 | .22 | .17 |
Net realized and unrealized gain (loss) | (.22) | 1.72 | (4.06) | .84 | 1.00 | .19 |
Total from investment operations | (.22) | 2.02 | (3.79) | 1.15 | 1.22 | .36 |
Distributions from net investment income | - | (.28) | (.27) | (.40) | (.05) | - |
Distributions from net realized gain | (.04) | (.09) | (.91) | (.19) | - | - |
Total distributions | (.04) | (.37) | (1.18) | (.59) | (.05) | - |
Net asset value, end of period | $ 8.51 | $ 8.77 | $ 7.12 | $ 12.09 | $ 11.53 | $ 10.36 |
Total Return B,C,D | (2.57)% | 28.75% | (32.63)% | 10.20% | 11.82% | 3.60% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .06% A | 3.82% | 2.77% | 2.59% | 2.04% | 4.07% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 80,662 | $ 80,478 | $ 59,123 | $ 76,369 | $ 47,329 | $ 11,059 |
Portfolio turnover rate | 32% A | 20% | 26% | 12% | 15% | 2% |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period August 3, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2025 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 8.4 | 9.0 |
VIP Equity-Income Portfolio Investor Class | 9.7 | 10.2 |
VIP Growth & Income Portfolio Investor Class | 9.7 | 10.4 |
VIP Growth Portfolio Investor Class | 9.7 | 10.5 |
VIP Mid Cap Portfolio Investor Class | 3.5 | 3.7 |
VIP Value Portfolio Investor Class | 8.3 | 9.1 |
VIP Value Strategies Portfolio Investor Class | 3.5 | 3.8 |
| 52.8 | 56.7 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 15.5 | 13.8 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 1.5 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 7.5 | 7.6 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 22.7 | 21.9 |
Net Other Assets | | |
Net Other Assets* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) |
Current |
 | Domestic Equity Funds | 52.8% | |
| Developed International Equity Funds | 15.5% | |
| Emerging Markets Equity Funds | 1.5% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade Bond Funds | 22.7% | |
Six months ago |
| Domestic Equity Funds | 56.7% | |
| Developed International Equity Funds | 13.8% | |
| Investment Grade Bond Funds | 21.9% | |
| High Yield Bond Funds | 7.6% | |
Expected |
| Domestic Equity Funds | 50.9% | |
| Developed International Equity Funds | 15.8% | |
| Emerging Markets Equity Funds | 2.8% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade Bond Funds | 22.9% | |
| Short-Term Funds | 0.1% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Investor Freedom 2025 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 52.8% |
| Shares | | Value |
Domestic Equity Funds - 52.8% |
VIP Contrafund Portfolio Investor Class | 155,481 | | $ 2,982,131 |
VIP Equity-Income Portfolio Investor Class | 223,081 | | 3,468,906 |
VIP Growth & Income Portfolio Investor Class | 341,579 | | 3,470,441 |
VIP Growth Portfolio Investor Class | 122,111 | | 3,472,850 |
VIP Mid Cap Portfolio Investor Class | 48,368 | | 1,246,936 |
VIP Value Portfolio Investor Class | 329,164 | | 2,978,939 |
VIP Value Strategies Portfolio Investor Class | 164,884 | | 1,244,871 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $24,307,395) | 18,865,074 |
International Equity Funds - 17.0% |
| | | |
Developed International Equity Funds - 15.5% |
VIP Overseas Portfolio Investor Class R | 426,877 | | 5,536,589 |
Emerging Markets Equity Funds - 1.5% |
VIP Emerging Markets Portfolio Investor Class R | 68,313 | | 533,525 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $8,090,205) | 6,070,114 |
Bond Funds - 30.2% |
| | | |
High Yield Bond Funds - 7.5% |
VIP High Income Portfolio Investor Class | 493,745 | | 2,690,908 |
Investment Grade Bond Funds - 22.7% |
VIP Investment Grade Bond Portfolio Investor Class | 616,232 | | 8,091,128 |
TOTAL BOND FUNDS (Cost $10,565,705) | 10,782,036 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $42,963,305) | | 35,717,224 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | 1 |
NET ASSETS - 100% | $ 35,717,225 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2025 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $42,963,305) - See accompanying schedule | | $ 35,717,224 |
Cash | | 1 |
Receivable for fund shares sold | | 445 |
Total assets | | 35,717,670 |
| | |
Liabilities | | |
Payable for investments purchased | $ 429 | |
Payable for fund shares redeemed | 16 | |
Total liabilities | | 445 |
| | |
Net Assets | | $ 35,717,225 |
Net Assets consist of: | | |
Paid in capital | | $ 43,290,028 |
Undistributed net investment income | | 9,314 |
Accumulated undistributed net realized gain (loss) on investments | | (336,036) |
Net unrealized appreciation (depreciation) on investments | | (7,246,081) |
Net Assets, for 4,246,018 shares outstanding | | $ 35,717,225 |
Net Asset Value, offering price and redemption price per share ($35,717,225 ÷ 4,246,018 shares) | | $ 8.41 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 9,314 |
| | |
Expenses | | |
Independent trustees' compensation | $ 59 | |
Total expenses before reductions | 59 | |
Expense reductions | (59) | 0 |
Net investment income (loss) | | 9,314 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | (5,778) | |
Capital gain distributions from underlying funds | 5,095 | (683) |
Change in net unrealized appreciation (depreciation) on underlying funds | | (1,436,002) |
Net gain (loss) | | (1,436,685) |
Net increase (decrease) in net assets resulting from operations | | $ (1,427,371) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 9,314 | $ 934,238 |
Net realized gain (loss) | (683) | 222,959 |
Change in net unrealized appreciation (depreciation) | (1,436,002) | 5,705,982 |
Net increase (decrease) in net assets resulting from operations | (1,427,371) | 6,863,179 |
Distributions to shareholders from net investment income | - | (913,842) |
Distributions to shareholders from net realized gain | (76,538) | (426,022) |
Total distributions | (76,538) | (1,339,864) |
Share transactions Proceeds from sales of shares | 6,657,969 | 8,304,117 |
Reinvestment of distributions | 76,538 | 1,339,864 |
Cost of shares redeemed | (2,494,728) | (3,639,786) |
Net increase (decrease) in net assets resulting from share transactions | 4,239,779 | 6,004,195 |
Total increase (decrease) in net assets | 2,735,870 | 11,527,510 |
| | |
Net Assets | | |
Beginning of period | 32,981,355 | 21,453,845 |
End of period (including undistributed net investment income of $9,314 and $0, respectively) | $ 35,717,225 | $ 32,981,355 |
Other Information Shares | | |
Sold | 741,670 | 1,055,869 |
Issued in reinvestment of distributions | 9,015 | 165,648 |
Redeemed | (283,046) | (489,469) |
Net increase (decrease) | 467,639 | 732,048 |
Financial Highlights
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.73 | $ 7.04 | $ 12.21 | $ 11.62 | $ 10.39 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .28 | .27 | .32 | .21 | .14 |
Net realized and unrealized gain (loss) | (.30) | 1.79 | (4.29) | .86 | 1.06 | .25 |
Total from investment operations | (.30) | 2.07 | (4.02) | 1.18 | 1.27 | .39 |
Distributions from net investment income | - | (.25) | (.26) | (.38) | (.04) | - |
Distributions from net realized gain | (.02) | (.13) | (.89) | (.21) | - | - |
Total distributions | (.02) | (.38) | (1.15) | (.59) | (.04) | - |
Net asset value, end of period | $ 8.41 | $ 8.73 | $ 7.04 | $ 12.21 | $ 11.62 | $ 10.39 |
Total Return B,C,D | (3.44)% | 29.95% | (34.22)% | 10.39% | 12.26% | 3.90% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .05% A | 3.65% | 2.77% | 2.62% | 1.95% | 3.47% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 35,717 | $ 32,981 | $ 21,454 | $ 28,587 | $ 14,630 | $ 2,424 |
Portfolio turnover rate | 31% A | 18% | 30% | 10% | 18% | 2% |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period August 3, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2030 Portfolio
Investment Changes (Unaudited)
Fund Holdings as of June 30, 2010 |
| % of fund's
net assets | % of fund's net assets
6 months ago |
Domestic Equity Funds | | |
VIP Contrafund Portfolio Investor Class | 9.0 | 10.0 |
VIP Equity-Income Portfolio Investor Class | 10.5 | 11.4 |
VIP Growth & Income Portfolio Investor Class | 9.7 | 11.5 |
VIP Growth Portfolio Investor Class | 10.5 | 11.7 |
VIP Mid Cap Portfolio Investor Class | 3.8 | 4.1 |
VIP Value Portfolio Investor Class | 9.0 | 10.0 |
VIP Value Strategies Portfolio Investor Class | 3.7 | 4.2 |
| 56.2 | 62.9 |
Developed International Equity Funds | | |
VIP Overseas Portfolio Investor Class R | 16.7 | 15.2 |
Emerging Markets Equity Funds | | |
VIP Emerging Markets Portfolio Investor Class R | 1.6 | 0.0 |
High Yield Bond Funds | | |
VIP High Income Portfolio Investor Class | 7.6 | 7.6 |
Investment Grade Bond Funds | | |
VIP Investment Grade Bond Portfolio Investor Class | 17.9 | 14.3 |
Net Other Assets | | |
Net Other Assets* | 0.0 | 0.0 |
| 100.0 | 100.0 |
* Amount represents less than 0.1%. |
Asset Allocation (% of fund's net assets) |
Current |
| Domestic Equity Funds | 56.2% | |
| Developed International Equity Funds | 16.7% | |
| Emerging Markets Equity Funds | 1.6% | |
| High Yield Bond Funds | 7.6% | |
| Investment Grade Bond Funds | 17.9% | |
Six months ago |
| Domestic Equity Funds | 62.9% | |
| Developed International Equity Funds | 15.2% | |
| Investment Grade Bond Funds | 14.3% | |
| High Yield Bond Funds | 7.6% | |
Expected |
| Domestic Equity Funds | 54.3% | |
| Developed International Equity Funds | 16.8% | |
| Emerging Markets Equity Funds | 3.0% | |
| High Yield Bond Funds | 7.5% | |
| Investment Grade Bond Funds | 18.4% | |
The fund invests according to an asset allocation strategy that becomes increasingly conservative over time. The six months ago allocation is based on the fund's holdings as of December 31, 2009. The current allocation is based on the fund's holdings as of June 30, 2010. The expected allocation represents the fund's anticipated allocation at December 31, 2010. |
Semiannual Report
VIP Investor Freedom 2030 Portfolio
Investments June 30, 2010 (Unaudited)
Showing Percentage of Net Assets
Domestic Equity Funds - 56.2% |
| Shares | | Value |
Domestic Equity Funds - 56.2% |
VIP Contrafund Portfolio Investor Class | 167,203 | | $ 3,206,957 |
VIP Equity-Income Portfolio Investor Class | 239,698 | | 3,727,303 |
VIP Growth & Income Portfolio Investor Class | 340,491 | | 3,459,388 |
VIP Growth Portfolio Investor Class | 131,207 | | 3,731,541 |
VIP Mid Cap Portfolio Investor Class | 51,932 | | 1,338,818 |
VIP Value Portfolio Investor Class | 353,980 | | 3,203,523 |
VIP Value Strategies Portfolio Investor Class | 177,033 | | 1,336,600 |
TOTAL DOMESTIC EQUITY FUNDS (Cost $27,951,739) | 20,004,130 |
International Equity Funds - 18.3% |
| | | |
Developed International Equity Funds - 16.7% |
VIP Overseas Portfolio Investor Class R | 458,702 | | 5,949,368 |
Emerging Markets Equity Funds - 1.6% |
VIP Emerging Markets Portfolio Investor Class R | 73,121 | | 571,074 |
TOTAL INTERNATIONAL EQUITY FUNDS (Cost $9,237,375) | 6,520,442 |
Bond Funds - 25.5% |
| | | |
High Yield Bond Funds - 7.6% |
VIP High Income Portfolio Investor Class | 492,160 | | 2,682,272 |
Investment Grade Bond Funds - 17.9% |
VIP Investment Grade Bond Portfolio Investor Class | 485,994 | | 6,381,104 |
TOTAL BOND FUNDS (Cost $9,040,463) | 9,063,376 |
TOTAL INVESTMENT PORTFOLIO - 100.0% (Cost $46,229,577) | | 35,587,948 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | | (1) |
NET ASSETS - 100% | $ 35,587,947 |
Other Information |
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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, please refer to the Security Valuation section in the accompanying Notes to Financial Statements. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
VIP Investor Freedom 2030 Portfolio
Statement of Assets and Liabilities
| June 30, 2010 (Unaudited) |
| | |
Assets | | |
Investment in securities, at value (cost $46,229,577) - See accompanying schedule | | $ 35,587,948 |
Receivable for fund shares sold | | 759 |
Total assets | | 35,588,707 |
| | |
Liabilities | | |
Payable to custodian bank | $ 1 | |
Payable for investments purchased | 739 | |
Payable for fund shares redeemed | 20 | |
Total liabilities | | 760 |
| | |
Net Assets | | $ 35,587,947 |
Net Assets consist of: | | |
Paid in capital | | $ 46,404,053 |
Undistributed net investment income | | 7,429 |
Accumulated undistributed net realized gain (loss) on investments | | (181,906) |
Net unrealized appreciation (depreciation) on investments | | (10,641,629) |
Net Assets, for 4,461,225 shares outstanding | | $ 35,587,947 |
Net Asset Value, offering price and redemption price per share ($35,587,947 ÷ 4,461,225 shares) | | $ 7.98 |
Statement of Operations
Six months ended June 30, 2010 (Unaudited) |
| | |
Investment Income | | |
Income distributions from underlying funds | | $ 8,718 |
| | |
Expenses | | |
Independent trustees' compensation | $ 61 | |
Total expenses before reductions | 61 | |
Expense reductions | (61) | 0 |
Net investment income (loss) | | 8,718 |
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares | 147,675 | |
Capital gain distributions from underlying funds | 5,970 | 153,645 |
Change in net unrealized appreciation (depreciation) on underlying funds | | (1,790,556) |
Net gain (loss) | | (1,636,911) |
Net increase (decrease) in net assets resulting from operations | | $ (1,628,193) |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Statements - continued
Statement of Changes in Net Assets
| Six months ended June 30, 2010
(Unaudited) | Year ended
December 31, 2009 |
Increase (Decrease) in Net Assets | | |
Operations | | |
Net investment income (loss) | $ 8,718 | $ 815,117 |
Net realized gain (loss) | 153,645 | 524,444 |
Change in net unrealized appreciation (depreciation) | (1,790,556) | 6,784,077 |
Net increase (decrease) in net assets resulting from operations | (1,628,193) | 8,123,638 |
Distributions to shareholders from net investment income | (20,940) | (799,682) |
Distributions to shareholders from net realized gain | (209,402) | (516,972) |
Total distributions | (230,342) | (1,316,654) |
Share transactions Proceeds from sales of shares | 4,211,742 | 6,116,678 |
Reinvestment of distributions | 230,342 | 1,316,654 |
Cost of shares redeemed | (1,555,317) | (4,466,810) |
Net increase (decrease) in net assets resulting from share transactions | 2,886,767 | 2,966,522 |
Total increase (decrease) in net assets | 1,028,232 | 9,773,506 |
| | |
Net Assets | | |
Beginning of period | 34,559,715 | 24,786,209 |
End of period (including undistributed net investment income of $7,429 and undistributed net investment income of $19,651, respectively) | $ 35,587,947 | $ 34,559,715 |
Other Information Shares | | |
Sold | 493,357 | 850,175 |
Issued in reinvestment of distributions | 28,508 | 176,673 |
Redeemed | (185,146) | (623,714) |
Net increase (decrease) | 336,719 | 403,134 |
Financial Highlights
| Six months ended June 30, 2010 | Years ended December 31, |
| (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 G |
Selected Per-Share Data | | | | | | |
Net asset value, beginning of period | $ 8.38 | $ 6.66 | $ 12.48 | $ 11.72 | $ 10.42 | $ 10.00 |
Income from Investment Operations | | | | | | |
Net investment income (loss) E | - I | .21 | .23 | .30 | .20 | .15 |
Net realized and unrealized gain (loss) | (.34) | 1.85 | (4.78) | .99 | 1.16 | .27 |
Total from investment operations | (.34) | 2.06 | (4.55) | 1.29 | 1.36 | .42 |
Distributions from net investment income | (.01) | (.20) | (.29) | (.29) | (.06) | - |
Distributions from net realized gain | (.05) | (.14) | (.98) | (.24) | - | - |
Total distributions | (.06) | (.34) | (1.27) | (.53) | (.06) | - |
Net asset value, end of period | $ 7.98 | $ 8.38 | $ 6.66 | $ 12.48 | $ 11.72 | $ 10.42 |
Total Return B,C,D | (4.13)% | 31.57% | (38.13)% | 11.28% | 13.12% | 4.20% |
Ratios to Average Net Assets F,H | | | | | | |
Expenses before reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of fee waivers, if any | .00% A | .00% | .00% | .00% | .00% | .00% A |
Expenses net of all reductions | .00% A | .00% | .00% | .00% | .00% | .00% A |
Net investment income (loss) | .05% A | 2.86% | 2.38% | 2.41% | 1.84% | 3.69% A |
Supplemental Data | | | | | | |
Net assets, end of period (000 omitted) | $ 35,588 | $ 34,560 | $ 24,786 | $ 31,355 | $ 14,728 | $ 4,698 |
Portfolio turnover rate | 28% A | 21% | 19% | 12% | 36% | 1% |
A Annualized B Total returns for periods of less than one year are not annualized. 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 had certain expenses not been reduced during the periods shown. E Calculated based on average shares outstanding during the period. F Amounts do not include the activity of the underlying funds. G For the period August 3, 2005 (commencement of operations) to December 31, 2005. H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the Fund invests. I Amount represents less than $.01 per share. |
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes to Financial Statements
For the period ended June 30, 2010 (Unaudited)
1. Organization.
VIP Investor Freedom Income Portfolio, VIP Investor Freedom 2005 Portfolio, VIP Investor Freedom 2010 Portfolio, VIP Investor Freedom 2015 Portfolio, VIP Investor Freedom 2020 Portfolio, VIP Investor Freedom 2025 Portfolio and VIP Investor Freedom 2030 Portfolio (the Funds) are funds of Variable Insurance Products Fund V. The Variable Insurance Products Fund V (the Trust) (referred to in this report as Fidelity Variable Insurance Products) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Each Fund is authorized to issue an unlimited number of shares. The Funds invest primarily in a combination of other VIP equity, bond, and short-term funds (the Underlying Funds) managed by Fidelity Management & Research Company (FMR). Shares of each Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts.
2. Significant Accounting Policies.
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. The following summarizes the significant accounting policies of the Funds:
Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Each Fund categorizes the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as shown below.
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows. Investments in the Underlying Funds are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Income and capital gain distributions from the Underlying Funds, if any, are recorded on the ex-dividend date. Distributions from the Underlying Funds that are deemed to be return of capital are recorded as a reduction of cost of investments.
Expenses. Most expenses of the Trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned amongst each fund in the Trust. Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses associated with the Underlying Funds. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. A fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years.
Distributions are recorded on the ex-dividend date. 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. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
Semiannual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows for each Fund:
| Cost for
Federal Income
Tax Purposes | Unrealized
Appreciation | Unrealized
Depreciation | Net Unrealized
Appreciation/
(Depreciation) |
VIP Investor Freedom Income | $ 30,203,930 | $ 744,744 | $ (1,735,073) | $ (990,329) |
VIP Investor Freedom 2005 | 11,046,344 | 260,059 | (1,686,955) | (1,426,896) |
VIP Investor Freedom 2010 | 59,253,835 | 834,067 | (11,673,740) | (10,839,673) |
VIP Investor Freedom 2015 | 70,006,571 | 1,382,635 | (13,338,461) | (11,955,826) |
VIP Investor Freedom 2020 | 100,918,533 | 1,564,791 | (21,821,195) | (20,256,404) |
VIP Investor Freedom 2025 | 43,335,019 | 1,217,006 | (8,834,801) | (7,617,795) |
VIP Investor Freedom 2030 | 46,579,651 | 645,574 | (11,637,277) | (10,991,703) |
3. Purchases and Sales of Investments.
Purchases and redemptions of the Underlying Fund shares are noted in the table below.
| Purchases ($) | Redemptions ($) |
VIP Investor Freedom Income | 6,916,513 | 3,336,457 |
VIP Investor Freedom 2005 | 3,759,751 | 3,400,424 |
VIP Investor Freedom 2010 | 9,232,038 | 7,746,136 |
VIP Investor Freedom 2015 | 10,694,567 | 11,730,595 |
VIP Investor Freedom 2020 | 15,755,603 | 13,205,246 |
VIP Investor Freedom 2025 | 9,577,156 | 5,398,002 |
VIP Investor Freedom 2030 | 7,652,594 | 4,979,736 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Strategic Advisers, Inc. (Strategic Advisers), an affiliate of FMR, provides the Funds with investment management related services. The Funds do not pay any fees for these services.
Other Transactions. Strategic Advisers has entered into an administration agreement with FMR under which FMR provides management and administrative services (other than investment advisory services) necessary for the operation of each Fund. Pursuant to this agreement, FMR pays all expenses of each Fund, excluding the compensation of the independent Trustees and certain other expenses such as interest expense. FMR also contracts with other Fidelity companies to perform the services necessary for the operation of each Fund. The Funds do not pay any fees for these services.
5. Expense Reductions.
FMR voluntarily agreed to reimburse the Funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
The following Funds were in reimbursement during the period:
| Expense
Limitations | Reimbursement
from adviser |
VIP Investor Freedom Income | 0% | $ 47 |
VIP Investor Freedom 2005 | 0% | 17 |
VIP Investor Freedom 2010 | 0% | 83 |
VIP Investor Freedom 2015 | 0% | 105 |
VIP Investor Freedom 2020 | 0% | 141 |
VIP Investor Freedom 2025 | 0% | 59 |
VIP Investor Freedom 2030 | 0% | 61 |
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
6. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
The Funds do not invest in the Underlying Funds for the purpose of exercising management or control; however, investments by the Funds within their principal investment strategies may represent a significant portion of the Underlying Fund's net assets. At the end of the period, FMR or its affiliates were owners of record of all of the outstanding shares of the Funds.
Semiannual Report
Investment Adviser
Strategic Advisers, Inc.
Boston, MA
General Distributor
Fidelity Distributors Corporation
Boston, MA
Transfer and Service Agents
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
The Bank of New York Mellon
New York, NY
VIPIFF-SANN-0810
1.833440.104
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
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 Variable Insurance Products Fund V's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) for each Fund provide reasonable assurances that material information relating to such Fund 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 a Fund's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, a Fund's internal control over financial reporting.
Item 12. Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
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 V
By: | /s/ John R. Hebble |
| John R. Hebble |
| President and Treasurer |
| |
Date: | September 2, 2010 |
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/ John R. Hebble |
| John R. Hebble |
| President and Treasurer |
| |
Date: | September 2, 2010 |
By: | /s/ Christine Reynolds |
| Christine Reynolds |
| Chief Financial Officer |
| |
Date: | September 2, 2010 |
