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 811-5361

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)

Eric D. Roiter, 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:	December 31, 2007

This report on Form N-CSR relates solely to the Registrant's Asset Manager Portfolio, Asset Manager: Growth Portfolio, Freedom 2005 Portfolio, Freedom 2010 Portfolio, Freedom 2015 Portfolio, Freedom 2020 Portfolio, Freedom 2025 Portfolio, Freedom 2030 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, Investment Grade Bond 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, Investor Freedom Income Portfolio and Strategic Income Portfolio series (each, a "Fund" and collectively, the "Funds").

Item 1. Reports to Stockholders

Fidelity® Variable Insurance Products:
Asset Manager^SM Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The managers' review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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 (search for "proxy voting guidelines") 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 fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-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.

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company's separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Past 10 years
VIP Asset Manager - Initial Class	15.57%	9.93%	5.61%
VIP Asset Manager - Service Class ^A	15.36%	9.82%	5.48%
VIP Asset Manager - Service Class 2 ^B	15.24%	9.66%	5.35%
VIP Asset Manager - Investor Class ^C	15.38%	9.85%	5.57%

^A Performance for Service Class shares reflects on asset-based distribution fee (12b-1 fee).

^B The initial offering of Service Class 2 shares took place on January 12, 2000. Performance for Service Class 2 shares reflect an asset based distribution fee (12b-1 fee). Returns prior to January 12, 2000 are those of Service Class which reflect a different 12b-1 fee. Had Service Class 2's 12b-1 fee been reflected, returns prior to January 12, 2000 would have been lower.

^CThe initial offering of Investor Class shares took place on July 21, 2005. Returns prior to July 21, 2005 are those of Initial Class. If Investor Class's transfer agent fee had been reflected, returns prior to July 21, 2005 would have been lower.

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in VIP Asset Manager Portfolio - Initial Class on December 31, 1997. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Richard Habermann and Derek Young, Lead Co-Managers of VIP Asset Manager Portfolio

U.S. equity markets, as measured by the bellwether Dow Jones Industrial Average^SM and the Standard & Poor's 500^SM Index, registered their fifth consecutive year of positive returns in 2007, as the Dow rose 8.88% and the S&P 500® index advanced 5.49%. The tech-heavy NASDAQ Composite® Index did even better, increasing 10.55%. However, credit- and recession-related concerns carved deeply into stock prices late in 2007, pushing some major market measures into negative territory for the year overall, particularly smaller-cap and value-oriented benchmarks. Based largely on a weak U.S. dollar that boosted returns for U.S. investors, the Morgan Stanley Capital International^SM Europe, Australasia, and Far East (MSCI® EAFE®) Index - a gauge of developed stock markets outside the United States and Canada - beat most domestic equity measures, gaining 11.33%. Several European countries had outstanding performance, including Finland and Germany, while Australia also did very well. However, fallout from the credit crunch and concerns about export growth tempered U.K. stocks, while fears that Japanese financial companies would become embroiled in the U.S. subprime mortgage crisis contributed to a loss of more than 4% for the Japanese portion of the index. The emerging-markets stock asset class soared 39.78% according to the MSCI Emerging Markets index. The U.S. investment-grade bond market climbed 6.97% as measured by the Lehman Brothers® U.S. Aggregate Index, beating the 2.53% gain for the Merrill Lynch® U.S. High Yield Master II Constrained Index. The emerging-markets bond category shook off a sluggish first half of 2007 to finish the year with a respectable gain of 6.28% as measured by the J.P. Morgan Emerging Markets Bond Index (EMBI) Global, while the Citigroup® Non-U.S. Group of 7 Index - representing the debt performance of major global economies, excluding the United States - rose 13.05%.

Returns in the mid-teens placed the fund's share classes several lengths ahead of their benchmarks for the year, with the Fidelity Asset Manager 50% Composite Index rising just 6.53%. Stellar performance from the domestic equity subportfolio is what fueled the fund's success during the period. Asset allocation and excess returns from our short-term (cash) holdings provided only a minor boost. (For specific portfolio performance results, please refer to the performance section of this report.) The fund benefited from its slight bias toward equities, which outperformed investment-grade debt and cash through October. Unfortunately, we gave up most of these gains in the final two months of the period as investors fled riskier assets for high-quality fixed-income securities. Within equities, overweighting foreign securities overall was helpful, as overseas markets beat their U.S. counterparts. Unfortunately, subpar security selection within the international equity component - which transitioned in December to a Fidelity central fund - more than offset the benefit from overweighting foreign stocks. In fixed income, underweighting investment-grade debt and cash paid off, but out-of-benchmark allocations to high-yield and floating-rate securities detracted when the credit crisis spread to these markets. Security selection helped the domestic equity portion of the fund beat the Dow Jones Wilshire 5000 Composite Index^SM by a wide margin, with the strongest picks coming within materials, technology, financials and consumer discretionary. Holdings in more-internationally focused companies were particularly beneficial to performance. Sector positioning also contributed, led by large overweightings in energy and materials - which increased during the period - and a sizable underweighting in financials. Results were tempered by an underweighting and some weak picks within consumer staples, as well as by ineffective stock selection in transportation. Among the top individual contributors were several materials stocks, including crop seed producer Monsanto and fertilizer producers Mosaic and Potash Corp. of Saskatchewan. Canada's Research In Motion, maker of the BlackBerry mobile messaging device, also was a standout performer. Detractors included biotechnology company Celgene, Canadian gold miner Goldcorp and Latin American wireless provider NII Holdings. The fund's collective bond holdings trailed the Lehman Brothers Aggregate index due to weak results from the investment-grade central fund, which had exposure to the sell-off in subprime mortgage securities. Although allocations to high yield and floating rate detracted, strong security and market selection helped these two central funds beat their respective indexes. The strategic cash portion of the fund - including the money market central fund - topped its benchmark as well.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.

Annual Report

Shareholder Expense Example

As a shareholder of the 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 Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

The first line of the accompanying table for each class of the 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, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the 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, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate 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.

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,074.70	$ 3.24
Hypothetical^A	$ 1,000.00	$ 1,022.08	$ 3.16
Service Class
Actual	$ 1,000.00	$ 1,074.10	$ 3.87
Hypothetical^A	$ 1,000.00	$ 1,021.48	$ 3.77
Service Class 2
Actual	$ 1,000.00	$ 1,073.90	$ 4.65
Hypothetical^A	$ 1,000.00	$ 1,020.72	$ 4.53
Investor Class
Actual	$ 1,000.00	$ 1,074.10	$ 3.92
Hypothetical^A	$ 1,000.00	$ 1,021.42	$ 3.82

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.

	Annualized Expense Ratio
Initial Class	.62%
Service Class	.74%
Service Class 2	.89%
Investor Class	.75%

Annual Report

Investment Changes

The information in the following tables is based on the combined investments of the Fund and its pro-rata share of its investments in each Fidelity Central Fund.

Top Five Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
The Mosaic Co.	2.1	0.7
Potash Corp. of Saskatchewan, Inc.	1.8	0.7
Apple, Inc.	1.5	0.8
Monsanto Co.	1.5	1.2
Valero Energy Corp.	1.4	1.2
	8.3
Top Five Bond Issuers as of December 31, 2007
(with maturities greater than one year)	% of fund's net assets	% of fund's net assets 6 months ago
Fannie Mae	11.4	9.7
U.S. Treasury Obligations	9.3	9.7
Freddie Mac	3.3	2.7
Government National Mortgage Association	0.7	0.8
Morgan Stanley Capital I Trust	0.6	0.4
	25.3
Top Five Market Sectors as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Energy	13.8	10.8
Financials	10.2	8.9
Materials	9.4	5.7
Industrials	8.4	5.2
Information Technology	5.6	7.7

Asset Allocation (% of fund's net assets)
As of December 31, 2007*			As of June 30, 2007* *
	Stock Class and Equity Futures 54.8%			Stock Class and Equity Futures 49.0%
	Bond Class 45.9%			Bond Class 47.4%
	Short-Term Class^(dagger) (0.7)%			Short-Term Class 3.6%
* Foreign investments		20.3%	* * Foreign investments		17.2%

Asset allocations in the pie charts reflect the categorization of assets as defined in the fund's prospectus in effect as of the time periods indicated above. Financial Statement categorizations conform to accounting standards and will differ from the pie chart. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable.

A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at advisor.fidelity.com.

⁸The Short-Term Class is not included in the pie chart.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 47.7%
	Shares		Value
CONSUMER DISCRETIONARY - 2.4%
Diversified Consumer Services - 0.3%
Sotheby's Class A (ltd. vtg.)	132,800		$ 5,059,680
Hotels, Restaurants & Leisure - 0.9%
Burger King Holdings, Inc.	143,300		4,085,483
Home Inns & Hotels Management, Inc. ADR (a)	115,700		4,123,548
McDonald's Corp.	99,500		5,861,545
Nissin Healthcare Food Service Co.	14,300		163,465
Vail Resorts, Inc. (a)(d)	45,900		2,469,879
			16,703,920
Internet & Catalog Retail - 0.4%
Priceline.com, Inc. (a)	68,500		7,867,910
Media - 0.4%
Focus Media Holding Ltd. ADR (a)	120,600		6,851,286
Virgin Media, Inc.	27,750		475,635
			7,326,921
Multiline Retail - 0.2%
JCPenney Co., Inc.	49,600		2,181,904
Kohl's Corp. (a)	41,900		1,919,020
			4,100,924
Textiles, Apparel & Luxury Goods - 0.2%
Crocs, Inc. (a)	135,200		4,976,712
TOTAL CONSUMER DISCRETIONARY			46,036,067
CONSUMER STAPLES - 0.6%
Food & Staples Retailing - 0.6%
ABB Grain Ltd.	294		2,176
Costco Wholesale Corp.	77,500		5,406,400
Whole Foods Market, Inc. (d)	135,300		5,520,240
			10,928,816
Tobacco - 0.0%
Philip Morris CR AS	105		45,154
TOTAL CONSUMER STAPLES			10,973,970
ENERGY - 12.2%
Energy Equipment & Services - 3.2%
Atwood Oceanics, Inc. (a)	97,900		9,813,496
Cameron International Corp. (a)	198,000		9,529,740
FMC Technologies, Inc. (a)	92,600		5,250,420
National Oilwell Varco, Inc. (a)	82,600		6,067,796
Oceaneering International, Inc. (a)	117,500		7,913,625

	Shares		Value
Schlumberger Ltd. (NY Shares)	59,400		$ 5,843,178
Smith International, Inc.	36,500		2,695,525
Transocean, Inc. (a)	64,083		9,173,481
Weatherford International Ltd. (a)	70,800		4,856,880
			61,144,141
Oil, Gas & Consumable Fuels - 9.0%
Apache Corp.	61,100		6,570,694
Arch Coal, Inc.	258,700		11,623,391
Cabot Oil & Gas Corp.	205,000		8,275,850
Cameco Corp.	125,100		4,982,343
Chesapeake Energy Corp.	158,000		6,193,600
China Shenhua Energy Co. Ltd. (H Shares)	1,037,000		6,197,715
Exxon Mobil Corp.	110,000		10,305,900
Hess Corp.	135,000		13,616,100
Marathon Oil Corp.	62,900		3,828,094
Peabody Energy Corp.	190,500		11,742,420
Petroplus Holdings AG	111,880		8,657,792
Quicksilver Resources, Inc. (a)	105,100		6,262,909
Range Resources Corp.	140,000		7,190,400
SandRidge Energy, Inc.	8,600		308,396
Sunoco, Inc.	75,700		5,483,708
Tesoro Corp.	104,700		4,994,190
Ultra Petroleum Corp. (a)	327,700		23,430,550
Valero Energy Corp.	375,000		26,261,250
Williams Companies, Inc.	191,000		6,833,980
			172,759,282
TOTAL ENERGY			233,903,423
FINANCIALS - 4.9%
Capital Markets - 1.1%
Fortress Investment Group LLC (d)	193,900		3,020,962
GLG Partners, Inc. (a)	149,500		2,033,200
Goldman Sachs Group, Inc.	32,500		6,989,125
Lehman Brothers Holdings, Inc.	41,500		2,715,760
Och-Ziff Capital Management Group LLC Class A	201,400		5,292,792
The Blackstone Group LP	77,700		1,719,501
			21,771,340
Commercial Banks - 1.1%
Banco Itau Holding Financeira SA sponsored ADR (non-vtg.)	391,000		10,111,260
Raiffeisen International Bank Holding AG	9,966		1,506,798
Uniao de Bancos Brasileiros SA (Unibanco) GDR	63,200		8,825,248
			20,443,306
Diversified Financial Services - 1.8%
Apollo Global Management LLC (e)	315,200		6,855,600
Bolsa de Mercadorias & Futuros - BM&F SA	137,500		1,911,868
Common Stocks - continued
	Shares		Value
FINANCIALS - continued
Diversified Financial Services - continued
Bovespa Holding SA	300,400		$ 5,626,593
CME Group, Inc.	28,800		19,756,800
			34,150,861
Insurance - 0.6%
American International Group, Inc.	77,300		4,506,590
Principal Financial Group, Inc.	85,500		5,885,820
			10,392,410
Real Estate Investment Trusts - 0.3%
Annaly Capital Management, Inc.	324,900		5,906,682
TOTAL FINANCIALS			92,664,599
HEALTH CARE - 4.5%
Biotechnology - 1.4%
Biogen Idec, Inc. (a)	59,700		3,398,124
Celgene Corp. (a)	199,000		9,195,790
CSL Ltd.	33,300		1,060,529
Gilead Sciences, Inc. (a)	266,200		12,247,862
			25,902,305
Health Care Equipment & Supplies - 0.5%
Beckman Coulter, Inc.	76,900		5,598,320
Becton, Dickinson & Co.	42,200		3,527,076
			9,125,396
Health Care Providers & Services - 1.6%
Express Scripts, Inc. (a)	78,800		5,752,400
Humana, Inc. (a)	128,600		9,684,866
Medco Health Solutions, Inc. (a)	84,000		8,517,600
UnitedHealth Group, Inc.	129,300		7,525,260
			31,480,126
Pharmaceuticals - 1.0%
Elan Corp. PLC sponsored ADR (a)	486,800		10,699,864
Merck & Co., Inc.	150,000		8,716,500
			19,416,364
TOTAL HEALTH CARE			85,924,191
INDUSTRIALS - 6.6%
Aerospace & Defense - 3.7%
General Dynamics Corp.	150,400		13,384,096
Honeywell International, Inc.	78,000		4,802,460
L-3 Communications Holdings, Inc.	137,300		14,545,562
Lockheed Martin Corp.	142,000		14,946,920
Precision Castparts Corp.	63,200		8,765,840
Raytheon Co.	185,800		11,278,060
The Boeing Co.	43,100		3,769,526
			71,492,464

	Shares		Value
Airlines - 0.2%
Delta Air Lines, Inc. (a)	87,300		$ 1,299,897
UAL Corp.	47,200		1,683,152
			2,983,049
Commercial Services & Supplies - 0.0%
EnergySolutions, Inc.	11,400		307,686
Electrical Equipment - 1.1%
ABB Ltd. sponsored ADR	352,100		10,140,480
Alstom SA	27,400		5,878,171
Suntech Power Holdings Co. Ltd. sponsored ADR (a)	56,100		4,618,152
			20,636,803
Industrial Conglomerates - 0.2%
McDermott International, Inc. (a)	63,900		3,772,017
Machinery - 1.3%
Caterpillar, Inc.	16,900		1,226,264
Cummins, Inc.	73,100		9,310,747
Eaton Corp.	97,100		9,413,845
MAN AG	17,500		2,906,395
NGK Insulators Ltd.	25,000		671,485
Sulzer AG (Reg.)	1,100		1,616,077
			25,144,813
Marine - 0.1%
DryShips, Inc.	14,500		1,122,300
TOTAL INDUSTRIALS			125,459,132
INFORMATION TECHNOLOGY - 4.9%
Communications Equipment - 0.9%
Cisco Systems, Inc. (a)	266,800		7,222,276
Harris Corp.	74,400		4,663,392
Infinera Corp.	84,600		1,255,464
Research In Motion Ltd. (a)	32,500		3,685,500
Starent Networks Corp.	75,100		1,370,575
			18,197,207
Computers & Peripherals - 1.7%
Apple, Inc. (a)	144,100		28,543,328
Data Domain, Inc.	80,200		2,112,468
EMC Corp. (a)	72,300		1,339,719
			31,995,515
Electronic Equipment & Instruments - 0.1%
Ibiden Co. Ltd.	20,900		1,447,802
Internet Software & Services - 0.4%
Google, Inc. Class A (sub. vtg.) (a)	12,000		8,297,760
Semiconductors & Semiconductor Equipment - 0.8%
Cree, Inc. (a)	115,600		3,175,532
Entropic Communications, Inc.	149,900		1,091,272
Intel Corp.	215,900		5,755,894
SiRF Technology Holdings, Inc. (a)	203,200		5,106,416
			15,129,114
Common Stocks - continued
	Shares		Value
INFORMATION TECHNOLOGY - continued
Software - 1.0%
Nintendo Co. Ltd.	32,700		$ 19,371,479
TOTAL INFORMATION TECHNOLOGY			94,438,877
MATERIALS - 8.7%
Chemicals - 5.6%
Monsanto Co.	253,000		28,257,570
Potash Corp. of Saskatchewan, Inc.	232,200		33,427,512
The Mosaic Co. (a)	432,500		40,802,050
Uralkali JSC:
ADR (a)(e)	22,600		841,850
unit (a)	107,500		4,004,375
			107,333,357
Metals & Mining - 3.1%
ArcelorMittal SA (NY Reg.) Class A	100,600		7,781,410
BHP Billiton Ltd. sponsored ADR	76,800		5,379,072
Companhia Vale do Rio Doce sponsored ADR	195,700		6,393,519
European Goldfields Ltd. (a)	22,400		123,549
Freeport-McMoRan Copper & Gold, Inc. Class B	153,300		15,704,052
Goldcorp, Inc.	552,000		18,778,723
Kinross Gold Corp. (a)	154,800		2,851,230
RTI International Metals, Inc. (a)	33,600		2,316,048
			59,327,603
TOTAL MATERIALS			166,660,960
TELECOMMUNICATION SERVICES - 0.9%
Diversified Telecommunication Services - 0.2%
Telefonica SA sponsored ADR	35,900		3,503,481
Wireless Telecommunication Services - 0.7%
China Mobile (Hong Kong) Ltd. sponsored ADR	116,500		10,120,355
NII Holdings, Inc. (a)	83,900		4,054,048
			14,174,403
TOTAL TELECOMMUNICATION SERVICES			17,677,884
UTILITIES - 2.0%
Electric Utilities - 1.1%
Duke Energy Corp.	265,100		5,347,067
Entergy Corp.	71,700		8,569,584
Reliant Energy, Inc. (a)	239,100		6,273,984
			20,190,635

	Shares		Value
Independent Power Producers & Energy Traders - 0.9%
Constellation Energy Group, Inc.	79,900		$ 8,192,147
NRG Energy, Inc. (a)	205,300		8,897,702
			17,089,849
TOTAL UTILITIES			37,280,484
TOTAL COMMON STOCKS (Cost $732,920,448)		911,019,587
U.S. Treasury Obligations - 0.2%
	Principal Amount
U.S. Treasury Bills, yield at date of purchase 3.03% to 3.89% 1/10/08 to 2/28/08 (f) (Cost $3,868,607)	$ 3,875,000		3,870,491
International Equity Fund - 4.5%
	Shares
Fidelity International Equity Central Fund (g) (Cost $88,376,768)	890,000	86,481,300
Fixed-Income Funds - 44.4%

Fidelity Floating Rate Central Fund (g)	517,744		49,563,633
Fidelity High Income Central Fund 1 (g)	287,744		27,775,965
Fidelity VIP Investment Grade Central Fund (g)	7,520,111		770,811,422
TOTAL FIXED-INCOME FUNDS (Cost $852,241,681)		848,151,020
Money Market Funds - 3.9%

Fidelity Cash Central Fund, 4.58% (b)	4,317,385		4,317,385
Fidelity Money Market Central Fund, 5.27% (b)	64,260,162		64,260,162
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	6,061,075		6,061,075
TOTAL MONEY MARKET FUNDS (Cost $74,638,622)		74,638,622
TOTAL INVESTMENT PORTFOLIO - 100.7% (Cost $1,752,046,126)			1,924,161,020
NET OTHER ASSETS - (0.7)%			(12,760,102)
NET ASSETS - 100%		$ 1,911,400,918

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Appreciation/ (Depreciation)
Purchased
Equity Index Contracts
49 Dow Jones Euro Stoxx 50 Index Contracts (Germany)	March 2008	$ 3,171,495	$ 66,312
24 FTSE 100 Index Contracts (United Kingdom)	March 2008	3,078,028	82,605
123 S&P 500 Index Contracts	March 2008	45,423,900	(655,467)
23 TOPIX 150 Index Contracts (Japan)	March 2008	3,031,879	(208,682)
TOTAL EQUITY INDEX CONTRACTS		$ 54,705,302	$ (715,232)

The face value of futures purchased as a percentage of net assets - 2.9%

Legend

(a) Non-income producing

(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

(d) Security or a portion of the security is on loan at period end.

(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $7,697,450 or 0.4% of net assets.

(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $3,870,491.

(g) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at advisor.fidelity.com. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 4,082,573
Fidelity Floating Rate Central Fund	4,627,993
Fidelity High Income Central Fund 1	3,693,166
Fidelity Money Market Central Fund	4,667,716
Fidelity Securities Lending Cash Central Fund	59,477
Fidelity VIP Investment Grade Central Fund	40,661,437
Total	$ 57,792,362

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows:

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Floating Rate Central Fund	$ 70,731,860	$ -	$ 18,503,550	$ 49,563,633	2.0%
Fidelity High Income Central Fund 1	80,596,646	-	52,155,243	27,775,965	10.6%
Fidelity International Equity Central Fund	-	88,376,768	-	86,481,300	10.0%
Fidelity VIP Investment Grade Central Fund	791,098,507	78,709,511	99,842,753	770,811,422	21.5%
Total	$ 942,427,013	$ 167,086,279	$ 170,501,546	$ 934,632,320

Other Information

The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited):

U.S. Government and U.S. Government Agency Obligations	24.9%
AAA,AA,A	10.5%
BBB	6.0%
BB	2.3%
B	1.6%
CCC,CC,C	0.3%
Not Rated	0.3%
Equities	55.1%
Short-Term Investments and Net Other Assets	(1.0)%
	100.0%

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	79.7%
Canada	4.8%
United Kingdom	1.9%
Brazil	1.7%
Japan	1.5%
Switzerland	1.5%
Others (individually less than 1%)	8.9%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (including securities loaned of $5,842,997) - See accompanying schedule: Unaffiliated issuers (cost $736,789,055)	$ 914,890,078
Fidelity Central Funds (cost $1,015,257,071)	1,009,270,942
Total Investments (cost $1,752,046,126)		$ 1,924,161,020
Foreign currency held at value (cost $493)		412
Receivable for investments sold		1,709,308
Receivable for fund shares sold		1,107,204
Dividends receivable		692,452
Distributions receivable from Fidelity Central Funds		4,979,619
Prepaid expenses		6,094
Other receivables		715,324
Total assets		1,933,371,433

Liabilities
Payable to custodian bank	$ 2,563,648
Payable for investments purchased	4,032,549
Payable for fund shares redeemed	7,839,307
Accrued management fee	803,618
Distribution fees payable	13,430
Payable for daily variation on futures contracts	279,374
Other affiliated payables	176,235
Other payables and accrued expenses	201,279
Collateral on securities loaned, at value	6,061,075
Total liabilities		21,970,515

Net Assets		$ 1,911,400,918
Net Assets consist of:
Paid in capital		$ 1,571,439,928
Undistributed net investment income		123,645
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		168,435,757
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		171,401,588
Net Assets		$ 1,911,400,918

Statement of Assets and Liabilities - continued

	December 31, 2007

Initial Class: Net Asset Value, offering price and redemption price per share ($1,791,646,783 ÷ 108,085,296 shares)		$ 16.58

Service Class: Net Asset Value, offering price and redemption price per share ($13,530,072 ÷ 820,821 shares)		$ 16.48

Service Class 2: Net Asset Value, offering price and redemption price per share ($59,669,534 ÷ 3,652,795 shares)		$ 16.34

Investor Class: Net Asset Value, offering price and redemption price per share ($46,554,529 ÷ 2,815,990 shares)		$ 16.53

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	Year ended December 31, 2007

Investment Income
Dividends		$ 9,202,349
Interest		282,137
Income from Fidelity Central Funds		57,792,362
Total income		67,276,848

Expenses
Management fee	$ 10,168,447
Transfer agent fees	1,392,167
Distribution fees	159,334
Accounting and security lending fees	776,558
Custodian fees and expenses	85,856
Independent trustees' compensation	6,989
Appreciation in deferred trustee compensation account	730
Audit	83,510
Legal	15,392
Interest	3,177
Miscellaneous	59,238
Total expenses before reductions	12,751,398
Expense reductions	(86,549)	12,664,849
Net investment income (loss)		54,611,999
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $47,708)	165,240,489
Fidelity Central Funds	5,540,327
Foreign currency transactions	(244,533)
Futures contracts	2,269,483
Capital gain distributions from Fidelity Central Funds	594,304
Total net realized gain (loss)		173,400,070
Change in net unrealized appreciation (depreciation) on: Investment securities	62,642,255
Assets and liabilities in foreign currencies	12,639
Futures contracts	(1,234,991)
Total change in net unrealized appreciation (depreciation)		61,419,903
Net gain (loss)		234,819,973
Net increase (decrease) in net assets resulting from operations		$ 289,431,972

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 54,611,999	$ 66,787,201
Net realized gain (loss)	173,400,070	162,523,758
Change in net unrealized appreciation (depreciation)	61,419,903	(68,032,199)
Net increase (decrease) in net assets resulting from operations	289,431,972	161,278,760
Distributions to shareholders from net investment income	(123,782,842)	(65,774,370)
Distributions to shareholders from net realized gain	(61,310,603)	-
Total distributions	(185,093,445)	(65,774,370)
Share transactions - net increase (decrease)	(380,180,594)	(405,651,778)
Total increase (decrease) in net assets	(275,842,067)	(310,147,388)

Net Assets
Beginning of period	2,187,242,985	2,497,390,373
End of period (including undistributed net investment income of $123,645 and undistributed net investment income of $61,631,634, respectively)	$ 1,911,400,918	$ 2,187,242,985

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 15.71	$ 15.04	$ 14.85	$ 14.46	$ 12.75
Income from Investment Operations
Net investment income (loss)^C	.44	.44	.38	.36^F	.36
Net realized and unrealized gain (loss)	1.88	.64	.21	.42	1.83
Total from investment operations	2.32	1.08	.59	.78	2.19
Distributions from net investment income	(1.00)	(.41)	(.39)	(.39)	(.48)
Distributions from net realized gain	(.45)	-	(.01)	-	-
Total distributions	(1.45)	(.41)	(.40)^H	(.39)	(.48)
Net asset value, end of period	$ 16.58	$ 15.71	$ 15.04	$ 14.85	$ 14.46
Total Return^{A, B}	15.57%	7.32%	4.04%	5.47%	17.97%
Ratios to Average Net Assets^{D, G}
Expenses before reductions	.63%	.65%	.64%	.66%	.63%
Expenses net of fee waivers, if any	.63%	.65%	.64%	.66%	.63%
Expenses net of all reductions	.62%	.63%	.63%	.65%	.62%
Net investment income (loss)	2.75%	2.90%	2.60%	2.53%	2.71%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,791,647	$ 2,080,545	$ 2,407,113	$ 2,751,094	$ 3,011,837
Portfolio turnover rate^E	99%	173%	44%	66%	82%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.04 per share.

^G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other 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 brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^H Total distributions of $.40 per share is comprised of distributions from net investment income of $.39 and distributions from net realized gain of $.005 per share.

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 15.61	$ 14.94	$ 14.75	$ 14.37	$ 12.66
Income from Investment Operations
Net investment income (loss)^C	.42	.42	.36	.34^F	.34
Net realized and unrealized gain (loss)	1.86	.64	.21	.42	1.83
Total from investment operations	2.28	1.06	.57	.76	2.17
Distributions from net investment income	(.96)	(.39)	(.37)	(.38)	(.46)
Distributions from net realized gain	(.45)	-	(.01)	-	-
Total distributions	(1.41)	(.39)	(.38)^H	(.38)	(.46)
Net asset value, end of period	$ 16.48	$ 15.61	$ 14.94	$ 14.75	$ 14.37
Total Return^{A, B}	15.36%	7.24%	3.93%	5.36%	17.91%
Ratios to Average Net Assets^{D, G}
Expenses before reductions	.74%	.76%	.74%	.77%	.74%
Expenses net of fee waivers, if any	.74%	.76%	.74%	.77%	.74%
Expenses net of all reductions	.74%	.74%	.73%	.76%	.73%
Net investment income (loss)	2.63%	2.79%	2.50%	2.41%	2.59%
Supplemental Data
Net assets, end of period (000 omitted)	$ 13,530	$ 24,021	$ 29,382	$ 33,118	$ 32,087
Portfolio turnover rate^E	99%	173%	44%	66%	82%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.04 per share.

^H Total distributions of $.38 per share is comprised of distributions from net investment income of $.37 and distributions from net realized gain of $.005 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 15.47	$ 14.82	$ 14.64	$ 14.27	$ 12.59
Income from Investment Operations
Net investment income (loss)^C	.39	.39	.34	.32^F	.32
Net realized and unrealized gain (loss)	1.85	.63	.21	.41	1.81
Total from investment operations	2.24	1.02	.55	.73	2.13
Distributions from net investment income	(.92)	(.37)	(.37)	(.36)	(.45)
Distributions from net realized gain	(.45)	-	(.01)	-	-
Total distributions	(1.37)	(.37)	(.37)^H	(.36)	(.45)
Net asset value, end of period	$ 16.34	$ 15.47	$ 14.82	$ 14.64	$ 14.27
Total Return^{A, B}	15.24%	7.06%	3.85%	5.18%	17.66%
Ratios to Average Net Assets^{D, G}
Expenses before reductions	.89%	.92%	.90%	.93%	.91%
Expenses net of fee waivers, if any	.89%	.92%	.90%	.93%	.91%
Expenses net of all reductions	.89%	.90%	.89%	.92%	.89%
Net investment income (loss)	2.48%	2.64%	2.34%	2.25%	2.43%
Supplemental Data
Net assets, end of period (000 omitted)	$ 59,670	$ 55,585	$ 51,574	$ 36,763	$ 22,456
Portfolio turnover rate^E	99%	173%	44%	66%	82%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.04 per share.

^H Total distributions of $.37 per share is comprised of distributions from net investment income of $.365 and distributions from net realized gain of $.005 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 15.67	$ 15.03	$ 14.63
Income from Investment Operations
Net investment income (loss)^E	.42	.42	.16
Net realized and unrealized gain (loss)	1.87	.63	.24
Total from investment operations	2.29	1.05	.40
Distributions from net investment income	(.98)	(.41)	-
Distributions from net realized gain	(.45)	-	-
Total distributions	(1.43)	(.41)	-
Net asset value, end of period	$ 16.53	$ 15.67	$ 15.03
Total Return^{B, C, D}	15.38%	7.16%	2.73%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.75%	.78%	.82%^A
Expenses net of fee waivers, if any	.75%	.78%	.82%^A
Expenses net of all reductions	.74%	.76%	.81%^A
Net investment income (loss)	2.63%	2.77%	2.52%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 46,555	$ 27,092	$ 9,322
Portfolio turnover rate^G	99%	173%	44%

^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 Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) 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 brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Asset Manager Portfolio (the Fund) is a fund of Variable Insurance Products Fund V (the trust) (formerly of Variable Insurance Products Fund II) and is authorized to issue an unlimited number of shares. Effective April 19, 2007, the Board of Trustees approved an Agreement and Plan of Reorganization whereby the Fund reorganized into Variable Insurance Products V effective June 29, 2007 (Trust Reorganization). The Trust Reorganization does not impact the Fund's investment strategies or Fidelity Management & Research Company's (FMR) management of the Fund. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. 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 transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

Based on their investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the Fund. These strategies are consistent with the investment objectives of the Fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the Fund. The following summarizes the Fund's investment in each Fidelity Central Fund.

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
Fidelity International Equity Central Fund	Fidelity Management & Research Company, Inc. (FMRC)	Seeks capital appreciation by investing primarily in non-US based common stocks, including securities of issuers located in emerging markets.	Delayed Delivery & When Issued Securities, Foreign Securities, Repurchase Agreements
Fidelity Floating Rate Central Fund	FMRC	Seeks a high level of income by normally investing in floating rate loans and other floating rate securities.	Loans & Direct Debt Instruments, Repurchase Agreements, Restricted Securities
Fidelity High Income Central Fund 1	FMRC	Seeks a high level of income and may also seek capital appreciation by investing primarily in debt securities, preferred stocks, and convertible securities, with an emphasis on lower-quality debt securities.	Loans & Direct Debt Instruments, Repurchase Agreements, Restricted Securities
Fidelity Money Market Central Funds	Fidelity Investment Money Management, Inc. (FIMM)	Seeks to obtain a high level of current income consistent with the preservation of capital and liquidity.	Short-term investments
Fidelity VIP Investment Grade Central Fund	FIMM	Seeks a high level of current income by normally investing in investment-grade debt securities and repurchase agreements.	Delayed Delivery & When Issued Securities, Mortgage Dollar Rolls, Repurchase Agreements, Restricted Securities, Swap Agreements

The Central Funds may invest a portion of their assets in securities or funds that invest in securities, of issuers that hold mortgage securities including subprime mortgage securities. The value and related income of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market's perception of the issuers and changes in interest rates.

Annual Report

2. Investments in Fidelity Central Funds - continued

A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at advisor.fidelity.com. A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments.

When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds and monitoring current market trading activity, interest rates, credit quality and default rates for debt instruments. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.

Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known. All legal and other expenses associated with the Trust Reorganization will be paid by FMR.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), Independent Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year, the 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. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are 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 generally accepted accounting principles.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. Certain adjustments have been made to the accounts relating to prior periods. Collectively, 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 short-term gain distributions from underlying funds, futures transactions, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships (including allocations from Fidelity Central Funds), deferred trustee compensation and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 214,644,003
Unrealized depreciation	(24,460,210)
Net unrealized appreciation (depreciation)	190,183,793
Undistributed ordinary income	99,487,078
Undistributed long-term capital gain	71,906,443

Cost for federal income tax purposes	$ 1,733,977,227

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 123,782,842	$ 65,774,370
Long-term Capital Gains	61,310,603	-
Total	$ 185,093,445	$ 65,774,370

New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

4. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

Annual Report

4. Operating Policies - continued

Futures Contracts. The Fund may use futures contracts to manage its exposure to the stock market. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in the Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in the Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in the Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities (including the Equity and Fixed-Income Central Funds), other than short-term securities and U.S. government securities, aggregated $1,796,578,104 and $2,140,223,505, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .51% of the Fund's average net assets.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors 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 re-allowed to insurance companies for the distribution of shares and providing shareholder support services:

Service Class	$ 17,463
Service Class 2	141,871
	$ 159,334

Annual Report

Notes to Financial Statements - continued

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class with the exception of Investor Class pays a transfer agent fee, excluding out of pocket expenses, equal to an annual rate of .07% of average net assets. Investor Class pays a monthly asset-based transfer agent fee of .18% of average net assets. The total transfer agent fees paid by each class to FIIOC, including out of pocket expenses, were as follows:

Initial Class	$ 1,267,601
Service Class	13,808
Service Class 2	44,835
Investor Class	65,923
	$ 1,392,167

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $7,572 for the period.

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:

Borrower or Lender	Average Daily Loan Balance	Weighted Average Interest Rate	Interest Expense
Borrower	$ 25,792,000	4.43%	$ 3,177

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $4,411 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $59,477.

9. Expense Reductions.

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $79,669 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $6,376.

Annual Report

10. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

At the end of the period, FMR or its affiliates were the owners of record of 28% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 19% of the total outstanding shares of the Fund.

The United States Securities and Exchange Commission ("SEC") is conducting an investigation of FMR (covering the years 2002 to 2004) arising from gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during that period. FMR is in discussions with the SEC staff regarding the possible resolution of the matter, but as of period-end no final resolution has been reached.

In December 2006, the Independent Trustees completed their own investigation of the matter with the assistance of independent counsel. The Independent Trustees and FMR agree that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and is worthy of redress. Accordingly, the Independent Trustees have requested and FMR has agreed to pay $42 million to Fidelity mutual funds, plus interest to be determined at the time that payment is made. A method of allocating this payment among the funds has not yet been determined. The total payment to the Fund is not anticipated to have a material impact on the Fund's net assets. In addition, FMR reimbursed related legal expenses which are recorded in the accompanying Statement of Operations as an expense reduction.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 117,226,118	$ 63,434,414
Service Class	1,107,972	706,426
Service Class 2	3,252,325	1,331,968
Investor Class	2,196,427	301,562
Total	$ 123,782,842	$ 65,774,370
From net realized gain
Initial Class	$ 58,256,317	$ -
Service Class	687,641	-
Service Class 2	1,584,992	-
Investor Class	781,653	-
Total	$ 61,310,603	$ -

Annual Report

Notes to Financial Statements - continued

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	2,612,166	2,117,965	$ 42,425,316	$ 31,923,801
Reinvestment of distributions	11,325,893	4,291,909	175,482,435	63,434,414
Shares redeemed	(38,252,281)	(34,074,425)	(605,126,794)	(513,616,796)
Net increase (decrease)	(24,314,222)	(27,664,551)	$ (387,219,043)	$ (418,258,581)
Service Class
Shares sold	219,346	138,220	$ 3,525,031	$ 2,085,823
Reinvestment of distributions	117,606	48,056	1,795,613	706,426
Shares redeemed	(1,054,962)	(614,188)	(16,540,256)	(9,243,261)
Net increase (decrease)	(718,010)	(427,912)	$ (11,219,612)	$ (6,451,012)
Service Class 2
Shares sold	675,528	2,616,207	$ 10,786,206	$ 38,570,263
Reinvestment of distributions	315,652	91,356	4,837,317	1,331,968
Shares redeemed	(931,541)	(2,595,506)	(14,765,977)	(37,521,668)
Net increase (decrease)	59,639	112,057	$ 857,546	$ 2,380,563
Investor Class
Shares sold	1,161,487	1,227,221	$ 18,608,136	$ 18,486,890
Reinvestment of distributions	189,870	20,431	2,978,080	301,562
Shares redeemed	(264,027)	(139,388)	(4,185,701)	(2,111,200)
Net increase (decrease)	1,087,330	1,108,264	$ 17,400,515	$ 16,677,252

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund V and Shareholders of VIP Asset Manager Portfolio:

We have audited the accompanying statement of assets and liabilities of VIP Asset Manager Portfolio (the Fund), a fund of Variable Insurance Products Fund V, including the schedule of investments, as of December 31, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodians and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of VIP Asset Manager Portfolio as of December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 28, 2008

Annual Report

Trustees and Officers

The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 373 funds advised by FMR or an affiliate. Mr. Curvey oversees 368 funds advised by FMR or an affiliate.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1989 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR. FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Correspondence intended for Mr. Mauriello, Mr. Thomas, Mr. Wiley, Mr. Lacy, and Mr. Arthur Johnson may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Asset Manager. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Ren Y. Cheng (50)
	Year of Election or Appointment: 2007 Vice President of VIP Asset Manager. Mr. Cheng also serves as Vice President of certain Asset Allocation Funds (2007-present). Mr. Cheng is Chief Investment Officer of the Global Asset Allocation group (2007-present). Mr. Cheng also serves as Vice President of FMR and FMR Co., Inc. Mr. Cheng served as Managing Director of the Global Asset Allocation group (2005-2007). Previously, Mr. Cheng served as a portfolio manager for the Fidelity Freedom Funds.
Boyce I. Greer (51)
	Year of Election or Appointment: 2005 Vice President of VIP Asset Manager. Mr. Greer also serves as Vice President of certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). Mr. Greer is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as Vice President of certain Fidelity Equity Funds (2005-2007), a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. Mr. Greer also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002).
Eric D. Roiter (59)
	Year of Election or Appointment: 1998 Secretary of VIP Asset Manager. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Asset Manager. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Asset Manager. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Asset Manager. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Asset Manager. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Asset Manager. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Asset Manager. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Asset Manager. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Asset Manager. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Asset Manager. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Asset Manager. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP Asset Manager Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

Fund	Pay Date	Record Date	Capital Gains
Initial Class	02/15/08	02/15/08	$1.51
Service Class	02/15/08	02/15/08	$1.51
Service Class 2	02/15/08	02/15/08	$1.51
Investor Class	02/15/08	02/15/08	$1.51

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $72,703,142, or, if subsequently determined to be different, the net capital gain of such year.

Initial Class designates 12% and 9%; Service Class designates 12% and 10%; Service Class 2 designates 13% and 10%; and Investor Class designates 12% and 10%; of the dividends distributed in February and December 2007, respectively as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Asset Manager Portfolio

Each year, typically in July, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Equity Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.

At its July 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.

In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's portfolio managers and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services. The Board also considered that Fidelity voluntarily pays for market data out of its own resources. The Board also considered the agreement reached between the Independent Trustees and Fidelity in December 2006 following an independent review of matters relating to receipt of travel, entertainment, gifts and gratuities in violation of Fidelity policies.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Annual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. The Board noted that, since the last Advisory Contract renewals in July 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.

Investment Performance and Compliance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a proprietary custom index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2006, the cumulative total returns of Initial Class and Service Class 2 of the fund, the cumulative total returns of a proprietary custom index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of Initial Class and Service Class 2 show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated. The fund's proprietary custom index is an index developed by FMR that represents the performance of the fund's three asset classes according to their respective weightings in the fund's neutral mix.

VIP Asset Manager Portfolio

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Initial Class of the fund was in the fourth quartile for all the periods shown. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to be taken by FMR to improve the fund's disappointing performance relative to its peer group. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared. The Board also considered supplemental information about how the fund's management fee and total expenses ranked relative to groups based on Lipper classifications, which take into account a fund's market capitalization and style.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 23% means that 77% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

VIP Asset Manager Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each of Initial Class, Investor Class and Service Class ranked below its competitive median for 2006, and the total expenses of Service Class 2 ranked above its competitive median for 2006. The Board noted that the fund offers multiple classes, each of which has a different 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

Annual Report

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) Fidelity's portfolio manager compensation structure, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (iii) Fidelity's fee structures; (iv) the funds' sub-advisory arrangements; and (v) accounts managed by Fidelity other than the Fidelity funds.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Money Management, Inc.

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Co., Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VIPAM-ANN-0208
1.540206.110

Fidelity® Variable Insurance Products:
Asset Manager: Growth® Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The managers' review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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.

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 listings, 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.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Past 10 years
VIP Asset Manager: Growth - Initial Class	18.97%	11.57%	4.84%
VIP Asset Manager: Growth - Service Class^A	18.79%	11.44%	4.70%
VIP Asset Manager: Growth - Service Class 2^B	18.68%	11.26%	4.55%
VIP Asset Manager: Growth - Investor Class^C	18.78%	11.47%	4.79%

^APerformance for Service Class shares reflects an asset-based service fee (12b-1 fee).

^BThe initial offering of Service Class 2 shares took place on January 12, 2000. Performance for Service Class 2 shares reflects an asset-based service fee (12b-1 fee). Returns prior to January 12, 2000 are those of Service Class which reflect a different 12b-1 fee. Had Service Class 2's 12b-1 fee been reflected, returns prior to January 12, 2000 would have been lower.

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in VIP Asset Manager: Growth Portfolio - Initial Class on December 31, 1997. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Richard Habermann and Derek Young, Lead Co-Managers of VIP Asset Manager: Growth Portfolio

Returns in the high-teens placed the fund's share classes several lengths ahead of their benchmarks for the year, with the Fidelity Asset Manager 70% Composite Index rising just 6.62%. Stellar performance from the domestic equity subportfolio is what fueled the fund's success during the period. Asset allocation and excess returns from our short-term (cash) holdings provided only a minor boost. (For specific portfolio performance results, please refer to the performance section of this report.) The fund benefited from its slight bias toward equities, which outperformed investment-grade debt and cash through October. Unfortunately, we gave up most of these gains in the final two months of the period as investors fled riskier assets for high-quality fixed-income securities. Within equities, overweighting foreign securities overall was helpful, as overseas markets beat their U.S. counterparts. Unfortunately, subpar security selection within the international equity component - which transitioned in December to a Fidelity central fund - more than offset the benefit from overweighting foreign stocks. In fixed income, underweighting investment-grade debt and cash paid off, but out-of-benchmark allocations to high-yield and floating-rate securities detracted when the credit crisis spread to these markets. Security selection helped the domestic equity portion of the fund beat the Dow Jones Wilshire 5000 Composite Index^SM by a wide margin, with the strongest picks coming within materials, technology, financials and consumer discretionary. Holdings in more-internationally focused companies were particularly beneficial to performance. Sector positioning also contributed, led by large overweightings in energy and materials - which increased during the period - and a sizable underweighting in financials. Results were tempered by an underweighting and some weak picks within consumer staples, as well as by ineffective stock selection in transportation. Among the top individual contributors were several materials stocks, including crop seed producer Monsanto and fertilizer producers Mosaic and Potash Corp. of Saskatchewan. Canada's Research In Motion, maker of the BlackBerry mobile messaging device, also was a standout performer. Detractors included biotechnology company Celgene, Canadian gold miner Goldcorp and Latin American wireless provider NII Holdings. The fund's collective bond holdings trailed the Lehman Brothers Aggregate index due to weak results from the investment-grade central fund, which had exposure to the sell-off in subprime mortgage securities. Although allocations to high yield and floating rate detracted, strong security and market selection helped these two central funds beat their respective indexes. The cash component of the fund topped its benchmark as well.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to
December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,083.90	$ 3.83
Hypothetical^A	$ 1,000.00	$ 1,021.53	$ 3.72
Service Class
Actual	$ 1,000.00	$ 1,082.70	$ 4.36
Hypothetical^A	$ 1,000.00	$ 1,021.02	$ 4.23
Service Class 2
Actual	$ 1,000.00	$ 1,082.70	$ 5.35
Hypothetical^A	$ 1,000.00	$ 1,020.06	$ 5.19
Investor Class
Actual	$ 1,000.00	$ 1,082.70	$ 4.51
Hypothetical^A	$ 1,000.00	$ 1,020.87	$ 4.38

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.73%
Service Class	.83%
Service Class 2	1.02%
Investor Class	.86%

Annual Report

Investment Changes

The information in the following tables is based on the combined investments of the Fund and its pro-rata share of its investments in each Fidelity Central Fund.

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
The Mosaic Co.	2.7	1.0
Potash Corp. of Saskatchewan, Inc.	2.2	1.0
Monsanto Co.	1.9	1.5
Apple, Inc.	1.9	1.1
Valero Energy Corp.	1.8	1.6
Ultra Petroleum Corp.	1.4	1.1
CME Group, Inc.	1.3	0.0
Nintendo Co. Ltd.	1.3	0.5
Goldcorp, Inc.	1.2	0.0
Freeport-McMoRan Copper & Gold, Inc. Class B	1.1	0.7
	16.8
Market Sectors as of December 31, 2007
(stocks only)	% of fund's net assets	% of fund's net assets 6 months ago
Energy	16.1	12.1
Materials	12.0	6.9
Industrials	9.5	5.1
Financials	8.4	5.6
Information Technology	6.7	9.5
Health Care	6.2	6.2
Consumer Discretionary	3.9	5.5
Utilities	2.9	2.6
Telecommunication Services	1.7	4.1
Consumer Staples	1.4	2.1

Asset Allocation (% of fund's net assets)
As of December 31, 2007 *			As of June 30, 2007 **
	Stock Class and Equity Futures 73.0%			Stock Class and Equity Futures 68.5%
	Bond Class 26.0%			Bond Class 28.3%
	Short-Term Class 1.0%			Short-Term Class 3.2%
* Foreign investments		26.3%	** Foreign investments		20.2%

Asset allocations in the pie chart reflect the categorization of assets as defined in the fund's prospectus in effect as of the time period indicated above. Financial Statement categorizations conform to accounting standards and will differ from the pie chart. Percentages are adjusted for the effect of futures contracts and swap contracts, if applicable.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 60.6%
	Shares		Value
CONSUMER DISCRETIONARY - 3.1%
Diversified Consumer Services - 0.4%
Sotheby's Class A (ltd. vtg.)	21,600		$ 822,960
Hotels, Restaurants & Leisure - 1.1%
Burger King Holdings, Inc.	23,500		669,985
Home Inns & Hotels Management, Inc. ADR (a)	18,600		662,904
McDonald's Corp.	16,200		954,342
Nissin Healthcare Food Service Co.	1,300		14,860
Vail Resorts, Inc. (a)(d)	7,500		403,575
			2,705,666
Internet & Catalog Retail - 0.5%
Priceline.com, Inc. (a)(d)	11,300		1,297,918
Media - 0.5%
Focus Media Holding Ltd. ADR (a)	19,100		1,085,071
Virgin Media, Inc.	4,050		69,417
			1,154,488
Multiline Retail - 0.3%
JCPenney Co., Inc.	8,000		351,920
Kohl's Corp. (a)	6,700		306,860
			658,780
Textiles, Apparel & Luxury Goods - 0.3%
Crocs, Inc. (a)	22,200		817,182
TOTAL CONSUMER DISCRETIONARY			7,456,994
CONSUMER STAPLES - 0.7%
Food & Staples Retailing - 0.7%
ABB Grain Ltd.	44		326
Costco Wholesale Corp.	12,500		872,000
Whole Foods Market, Inc.	21,800		889,440
			1,761,766
ENERGY - 15.4%
Energy Equipment & Services - 4.1%
Atwood Oceanics, Inc. (a)	15,800		1,583,792
Cameron International Corp. (a)	31,400		1,511,282
FMC Technologies, Inc. (a)	14,900		844,830
National Oilwell Varco, Inc. (a)	13,200		969,672
Oceaneering International, Inc. (a)	19,000		1,279,650
Schlumberger Ltd. (NY Shares)	9,700		954,189
Smith International, Inc.	6,100		450,485
Transocean, Inc. (a)	10,424		1,492,196
Weatherford International Ltd. (a)	11,700		802,620
			9,888,716

	Shares		Value
Oil, Gas & Consumable Fuels - 11.3%
Apache Corp.	9,900		$ 1,064,646
Arch Coal, Inc.	41,600		1,869,088
Cabot Oil & Gas Corp.	28,800		1,162,656
Cameco Corp.	20,600		820,434
Chesapeake Energy Corp.	25,200		987,840
China Shenhua Energy Co. Ltd. (H Shares)	166,500		995,101
Exxon Mobil Corp.	18,000		1,686,420
Hess Corp.	21,800		2,198,748
Marathon Oil Corp.	10,500		639,030
Peabody Energy Corp.	30,700		1,892,348
Petroplus Holdings AG	18,242		1,411,650
Quicksilver Resources, Inc. (a)	17,500		1,042,825
Range Resources Corp.	21,800		1,119,648
SandRidge Energy, Inc.	1,100		39,446
Sunoco, Inc.	12,500		905,500
Tesoro Corp.	17,000		810,900
Ultra Petroleum Corp. (a)	45,700		3,267,550
Valero Energy Corp.	60,500		4,236,815
Williams Companies, Inc.	30,400		1,087,712
			27,238,357
TOTAL ENERGY			37,127,073
FINANCIALS - 6.1%
Capital Markets - 1.4%
Fortress Investment Group LLC (d)	31,200		486,096
GLG Partners, Inc. (a)	24,000		326,400
Goldman Sachs Group, Inc.	5,000		1,075,250
Lehman Brothers Holdings, Inc.	6,700		438,448
Och-Ziff Capital Management Group LLC Class A	32,400		851,472
The Blackstone Group LP	12,500		276,625
			3,454,291
Commercial Banks - 1.3%
Banco Itau Holding Financeira SA sponsored ADR (non-vtg.)	63,800		1,649,868
Raiffeisen International Bank Holding AG	1,516		229,210
Uniao de Bancos Brasileiros SA (Unibanco) GDR	9,500		1,326,580
			3,205,658
Diversified Financial Services - 2.3%
Apollo Global Management LLC (e)	50,700		1,102,725
Bolsa de Mercadorias & Futuros - BM&F SA	19,600		272,528
Bovespa Holding SA	47,600		891,564
CME Group, Inc.	4,700		3,224,200
			5,491,017
Common Stocks - continued
	Shares		Value
FINANCIALS - continued
Insurance - 0.7%
American International Group, Inc.	12,400		$ 722,920
Principal Financial Group, Inc.	13,700		943,108
			1,666,028
Real Estate Investment Trusts - 0.4%
Annaly Capital Management, Inc.	53,800		978,084
TOTAL FINANCIALS			14,795,078
HEALTH CARE - 5.7%
Biotechnology - 1.7%
Biogen Idec, Inc. (a)	9,600		546,432
Celgene Corp. (a)	32,500		1,501,825
CSL Ltd.	3,600		114,652
Gilead Sciences, Inc. (a)	43,500		2,001,435
			4,164,344
Health Care Equipment & Supplies - 0.6%
Beckman Coulter, Inc.	12,700		924,560
Becton, Dickinson & Co.	6,900		576,702
			1,501,262
Health Care Providers & Services - 2.1%
Express Scripts, Inc. (a)	12,700		927,100
Humana, Inc. (a)	19,700		1,483,607
Medco Health Solutions, Inc. (a)	13,600		1,379,040
UnitedHealth Group, Inc.	20,800		1,210,560
			5,000,307
Pharmaceuticals - 1.3%
Elan Corp. PLC sponsored ADR (a)	78,400		1,723,232
Merck & Co., Inc.	24,100		1,400,451
			3,123,683
TOTAL HEALTH CARE			13,789,596
INDUSTRIALS - 8.4%
Aerospace & Defense - 4.7%
General Dynamics Corp.	24,100		2,144,659
Honeywell International, Inc.	12,500		769,625
L-3 Communications Holdings, Inc.	22,400		2,373,056
Lockheed Martin Corp.	22,900		2,410,454
Precision Castparts Corp.	10,100		1,400,870
Raytheon Co.	29,900		1,814,930
The Boeing Co.	7,000		612,220
			11,525,814
Airlines - 0.2%
Delta Air Lines, Inc. (a)	13,600		202,504
UAL Corp.	7,300		260,318
			462,822
Commercial Services & Supplies - 0.0%
EnergySolutions, Inc.	1,400		37,786

	Shares		Value
Electrical Equipment - 1.4%
ABB Ltd. sponsored ADR	57,600		$ 1,658,880
Alstom SA	4,400		943,940
Suntech Power Holdings Co. Ltd. sponsored ADR (a)	9,000		740,880
			3,343,700
Industrial Conglomerates - 0.3%
McDermott International, Inc. (a)	11,000		649,330
Machinery - 1.7%
Caterpillar, Inc.	3,000		217,680
Cummins, Inc.	11,900		1,515,703
Eaton Corp.	15,600		1,512,420
MAN AG	2,900		481,631
NGK Insulators Ltd.	4,000		107,438
Sulzer AG (Reg.)	200		293,832
			4,128,704
Marine - 0.1%
DryShips, Inc.	2,300		178,020
TOTAL INDUSTRIALS			20,326,176
INFORMATION TECHNOLOGY - 6.3%
Communications Equipment - 1.2%
Cisco Systems, Inc. (a)	43,300		1,172,131
Harris Corp.	12,100		758,428
Infinera Corp.	12,600		186,984
Research In Motion Ltd. (a)	5,200		589,680
Starent Networks Corp.	12,100		220,825
			2,928,048
Computers & Peripherals - 2.1%
Apple, Inc. (a)	23,300		4,615,264
Data Domain, Inc.	12,900		339,786
EMC Corp. (a)	12,600		233,478
			5,188,528
Electronic Equipment & Instruments - 0.1%
Ibiden Co. Ltd.	3,400		235,528
Internet Software & Services - 0.6%
Google, Inc. Class A (sub. vtg.) (a)	2,100		1,452,108
Semiconductors & Semiconductor Equipment - 1.0%
Cree, Inc. (a)	18,500		508,195
Entropic Communications, Inc.	24,100		175,448
Intel Corp.	34,800		927,768
SiRF Technology Holdings, Inc. (a)	31,400		789,082
			2,400,493
Software - 1.3%
Nintendo Co. Ltd.	5,300		3,139,720
TOTAL INFORMATION TECHNOLOGY			15,344,425
MATERIALS - 11.2%
Chemicals - 7.2%
Monsanto Co.	41,400		4,623,966
Common Stocks - continued
	Shares		Value
MATERIALS - continued
Chemicals - continued
Potash Corp. of Saskatchewan, Inc.	37,600		$ 5,412,896
The Mosaic Co. (a)	70,300		6,632,102
Uralkali JSC:
ADR (a)(e)	2,800		104,300
unit (a)	17,300		644,425
			17,417,689
Metals & Mining - 4.0%
ArcelorMittal SA (NY Reg.) Class A	16,500		1,276,275
BHP Billiton Ltd. sponsored ADR	12,400		868,496
Companhia Vale do Rio Doce sponsored ADR	31,700		1,035,639
European Goldfields Ltd. (a)	3,200		17,650
Freeport-McMoRan Copper & Gold, Inc. Class B	24,900		2,550,756
Goldcorp, Inc.	88,800		3,020,925
Kinross Gold Corp. (a)	24,900		458,628
RTI International Metals, Inc. (a)	5,400		372,222
			9,600,591
TOTAL MATERIALS			27,018,280
TELECOMMUNICATION SERVICES - 1.2%
Diversified Telecommunication Services - 0.2%
Telefonica SA sponsored ADR	5,800		566,022
Wireless Telecommunication Services - 1.0%
China Mobile (Hong Kong) Ltd. sponsored ADR	18,900		1,641,843
NII Holdings, Inc. (a)	13,800		666,816
			2,308,659
TOTAL TELECOMMUNICATION SERVICES			2,874,681
UTILITIES - 2.5%
Electric Utilities - 1.3%
Duke Energy Corp.	42,600		859,242
Entergy Corp.	11,700		1,398,384
Reliant Energy, Inc. (a)	38,700		1,015,488
			3,273,114
Independent Power Producers & Energy Traders - 1.2%
Constellation Energy Group, Inc.	13,100		1,343,143
NRG Energy, Inc. (a)	33,600		1,456,224
			2,799,367
TOTAL UTILITIES			6,072,481
TOTAL COMMON STOCKS (Cost $118,253,545)		146,566,550
Nonconvertible Preferred Stocks - 0.1%
	Shares		Value
FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
Istituto Finanziario Industriale SpA (IFI) (a)	5,500		$ 187,022
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $213,299)		187,022
U.S. Treasury Obligations - 0.5%
	Principal Amount
U.S. Treasury Bills, yield at date of purchase 3.03% to 4.11% 1/10/08 to 3/6/08 (f) (Cost $1,154,002)	$ 1,160,000		1,154,216
International Equity Funds - 8.3%
	Shares
Fidelity International Equity Central Fund (g) (Cost $20,646,496)	208,200		20,230,794
Fixed-Income Funds - 25.2%

Fidelity Floating Rate Central Fund (g)	64,488		6,173,436
Fidelity High Income Central Fund 1 (g)	35,216		3,399,366
Fidelity VIP Investment Grade Central Fund (g)	500,696		51,321,331
TOTAL FIXED-INCOME FUNDS (Cost $60,762,419)		60,894,133
Money Market Funds - 4.6%

Fidelity Cash Central Fund, 4.58% (b)	9,249,039		9,249,039
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	1,981,500		1,981,500
TOTAL MONEY MARKET FUNDS (Cost $11,230,539)		11,230,539
Cash Equivalents - 1.1%
	Maturity Amount		Value
Investments in repurchase agreements in a joint trading account at:
1.28%, dated 12/31/07 due 1/2/08 (Collateralized by U.S. Government Obligations) #	$ 2,693,191		$ 2,693,000
1.41%, dated 12/31/07 due 1/2/08 (Collateralized by U.S. Government Obligations) #	30,002		30,000
TOTAL CASH EQUIVALENTS (Cost $2,723,000)		2,723,000

TOTAL INVESTMENT PORTFOLIO - 100.4%

(Cost $214,983,300)

242,986,254

NET OTHER ASSETS - (0.4)%

(1,014,641)

NET ASSETS - 100%

$ 241,971,613

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Appreciation/(Depreciation)
Purchased
Equity Index Contracts
12 Dow Jones Euro Stoxx 50 Index Contracts (Germany)	March 2008	$ 776,693	$ 16,240
6 FTSE 100 Index Contracts (United Kingdom)	March 2008	769,507	20,651
20 S&P 500 Index Contracts	March 2008	7,386,000	(106,580)
5 TOPIX 150 Index Contracts (Japan)	March 2008	659,104	(45,112)
TOTAL EQUITY INDEX CONTRACTS		$ 9,591,304	$ (114,801)

The face value of futures purchased as a percentage of net assets - 4.0%

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $1,129,350.

# Additional Information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value
$2,693,000 due 1/02/08 at 1.28%
Banc of America Securities LLC	$ 511,788
Barclays Capital, Inc.	878,544
Goldman, Sachs & Co.	1,302,668
	$ 2,693,000
$30,000 due 1/02/08 at 1.41%
ABN AMRO Bank N.V., New York Branch	$ 13,102
Lehman Brothers, Inc.	8,156
Merrill Lynch Government Securities, Inc.	8,742
	$ 30,000

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 1,243,042
Fidelity Floating Rate Central Fund	529,674
Fidelity High Income Central Fund 1	391,766
Fidelity Securities Lending Cash Central Fund	19,030
Fidelity VIP Investment Grade Central Fund	2,637,937
Total	$ 4,821,449

Additional information regarding the Fund's fiscal year to date purchases and sales, including the ownership percentage, of the non Money Market Central Funds is as follows:

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Floating Rate Central Fund	$ 7,094,413	$ -	$ 589,907	$ 6,173,436	0.2%
Fidelity High Income Central Fund 1	5,260,980	2,502,684	4,258,109	3,399,366	1.3%
Fidelity International Equity Central Fund	-	20,646,493	-	20,230,794	2.3%
Fidelity VIP Investment Grade Central Fund	51,656,430	3,555,972	3,698,155	51,321,331	1.4%
Total	$ 64,011,823	$ 26,705,149	$ 8,546,171	$ 81,124,927

Other Information

The composition of credit quality ratings as a percentage of net assets is as follows (ratings are unaudited):

U.S. Government and U.S. Government Agency Obligations	13.1%
AAA,AA,A	5.5%
BBB	3.5%
BB	1.7%
B	1.5%
CCC,CC,C	0.3%
Not Rated	0.2%
Equities	72.8%
Short-Term Investments and Net Other Assets	1.4%
	100.0%

We have used ratings from Moody's Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ratings. All ratings are as of the report date and do not reflect subsequent downgrades. Percentages are adjusted for the effect of futures contracts, if applicable.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	73.7%
Canada	5.8%
Japan	2.2%
Brazil	2.2%
Switzerland	2.0%
United Kingdom	1.8%
Germany	1.7%
France	1.3%
China	1.3%
Australia	1.1%
Hong Kong	1.0%
Others (individually less than 1%)	5.9%
	100.0%

Income Tax Information

At December 31, 2007, the fund had a capital loss carryforward of approximately $15,645,137 of which $7,031,250 and $8,613,887 will expire on December 31, 2010 and 2011, respectively.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (including securities loaned of $1,904,990 and repurchase agreements of $2,723,000) - See accompanying schedule: Unaffiliated issuers (cost $122,343,846)	$ 150,630,788
Fidelity Central Funds (cost $92,639,454)	92,355,466
Total Investments (cost $214,983,300)		$ 242,986,254
Cash		18,116
Foreign currency held at value (cost $8)		9
Receivable for investments sold		226,023
Receivable for fund shares sold		840,057
Dividends receivable		123,084
Distributions receivable from Fidelity Central Funds		406,596
Prepaid expenses		756
Other receivables		3,936
Total assets		244,604,831

Liabilities
Payable for investments purchased	$ 268,270
Payable for fund shares redeemed	122,255
Accrued management fee	110,712
Distribution fees payable	2,112
Payable for daily variation on futures contracts	60,433
Other affiliated payables	24,465
Other payables and accrued expenses	63,471
Collateral on securities loaned, at value	1,981,500
Total liabilities		2,633,218

Net Assets		$ 241,971,613
Net Assets consist of:
Paid in capital		$ 229,988,449
Distributions in excess of net investment income		(57)
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(15,906,229)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		27,889,450
Net Assets		$ 241,971,613

Statement of Assets and Liabilities - continued

	December 31, 2007

Initial Class: Net Asset Value, offering price and redemption price per share ($211,867,040 ÷ 13,659,556 shares)		$ 15.51

Service Class: Net Asset Value, offering price and redemption price per share ($5,112,838 ÷ 331,745 shares)		$ 15.41

Service Class 2: Net Asset Value, offering price and redemption price per share ($8,621,815 ÷ 562,179 shares)		$ 15.34

Investor Class: Net Asset Value, offering price and redemption price per share ($16,369,920 ÷ 1,058,603 shares)		$ 15.46

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	Year ended December 31, 2007

Investment Income
Dividends		$ 1,398,771
Interest		86,083
Income from Fidelity Central Funds		4,821,449
Total income		6,306,303

Expenses
Management fee	$ 1,296,369
Transfer agent fees	177,539
Distribution fees	22,086
Accounting and security lending fees	114,714
Custodian fees and expenses	53,283
Independent trustees' compensation	802
Audit	75,298
Legal	1,751
Miscellaneous	7,198
Total expenses before reductions	1,749,040
Expense reductions	(11,975)	1,737,065
Net investment income (loss)		4,569,238
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $7,221)	23,279,856
Fidelity Central Funds	166,608
Foreign currency transactions	(87,728)
Futures contracts	539,117
Capital gain distributions from Fidelity Central Funds	35,641
Total net realized gain (loss)		23,933,494
Change in net unrealized appreciation (depreciation) on: Investment securities	12,203,908
Assets and liabilities in foreign currencies	1,548
Futures contracts	(404,090)
Total change in net unrealized appreciation (depreciation)		11,801,366
Net gain (loss)		35,734,860
Net increase (decrease) in net assets resulting from operations		$ 40,304,098

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 4,569,238	$ 4,942,223
Net realized gain (loss)	23,933,494	20,416,971
Change in net unrealized appreciation (depreciation)	11,801,366	(8,351,251)
Net increase (decrease) in net assets resulting from operations	40,304,098	17,007,943
Distributions to shareholders from net investment income	(9,798,205)	(5,395,505)
Share transactions - net increase (decrease)	(18,820,400)	(55,081,737)
Total increase (decrease) in net assets	11,685,493	(43,469,299)

Net Assets
Beginning of period	230,286,120	273,755,419
End of period (including distributions in excess of net investment income of $57 and undistributed net investment income of $4,929,195, respectively)	$ 241,971,613	$ 230,286,120

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class


Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 13.60	$ 12.97	$ 12.78	$ 12.33	$ 10.33
Income from Investment Operations
Net investment income (loss) ^C	.29	.26	.24	.26 ^F	.26
Net realized and unrealized gain (loss)	2.24	.63	.25	.47	2.06
Total from investment operations	2.53	.89	.49	.73	2.32
Distributions from net investment income	(.62)	(.26)	(.30)	(.28)	(.32)
Net asset value, end of period	$ 15.51	$ 13.60	$ 12.97	$ 12.78	$ 12.33
Total Return ^{A, B}	18.97%	6.99%	3.89%	5.98%	23.34%
Ratios to Average Net Assets ^{D, G}
Expenses before reductions	.74%	.77%	.74%	.75%	.73%
Expenses net of fee waivers, if any	.74%	.77%	.74%	.75%	.73%
Expenses net of all reductions	.73%	.73%	.72%	.74%	.72%
Net investment income (loss)	1.98%	2.01%	1.93%	2.15%	2.33%
Supplemental Data
Net assets, end of period (000 omitted)	$ 211,867	$ 212,222	$ 260,968	$ 306,137	$ 335,285
Portfolio turnover rate ^E	132%	233%	43%	57%	65%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.04 per share.

Financial Highlights - Service Class


Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 13.51	$ 12.88	$ 12.69	$ 12.25	$ 10.27
Income from Investment Operations
Net investment income (loss) ^C	.27	.25	.23	.25 ^F	.24
Net realized and unrealized gain (loss)	2.22	.63	.24	.46	2.05
Total from investment operations	2.49	.88	.47	.71	2.29
Distributions from net investment income	(.59)	(.25)	(.28)	(.27)	(.31)
Net asset value, end of period	$ 15.41	$ 13.51	$ 12.88	$ 12.69	$ 12.25
Total Return ^{A, B}	18.79%	6.93%	3.79%	5.85%	23.15%
Ratios to Average Net Assets ^{D, G}
Expenses before reductions	.84%	.87%	.84%	.88%	.85%
Expenses net of fee waivers, if any	.84%	.87%	.84%	.88%	.85%
Expenses net of all reductions	.83%	.83%	.82%	.87%	.84%
Net investment income (loss)	1.88%	1.91%	1.83%	2.02%	2.21%
Supplemental Data
Net assets, end of period (000 omitted)	$ 5,113	$ 4,977	$ 5,604	$ 5,907	$ 6,692
Portfolio turnover rate ^E	132%	233%	43%	57%	65%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.04 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class 2


Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 13.42	$ 12.81	$ 12.61	$ 12.19	$ 10.21
Income from Investment Operations
Net investment income (loss) ^C	.25	.22	.20	.22 ^F	.22
Net realized and unrealized gain (loss)	2.21	.62	.25	.46	2.05
Total from investment operations	2.46	.84	.45	.68	2.27
Distributions from net investment income	(.54)	(.23)	(.25)	(.26)	(.29)
Net asset value, end of period	$ 15.34	$ 13.42	$ 12.81	$ 12.61	$ 12.19
Total Return ^{A, B}	18.68%	6.64%	3.65%	5.63%	23.03%
Ratios to Average Net Assets ^{D, G}
Expenses before reductions	1.02%	1.05%	1.03%	1.06%	1.05%
Expenses net of fee waivers, if any	1.02%	1.05%	1.03%	1.06%	1.05%
Expenses net of all reductions	1.01%	1.02%	1.02%	1.05%	1.04%
Net investment income (loss)	1.70%	1.73%	1.64%	1.84%	2.01%
Supplemental Data
Net assets, end of period (000 omitted)	$ 8,622	$ 6,205	$ 5,854	$ 6,399	$ 6,694
Portfolio turnover rate ^E	132%	233%	43%	57%	65%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.04 per share.

Financial Highlights - Investor Class


Years ended December 31,	2007	2006	2005 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 13.56	$ 12.96	$ 12.60
Income from Investment Operations
Net investment income (loss) ^E	.27	.24	.10
Net realized and unrealized gain (loss)	2.23	.63	.26
Total from investment operations	2.50	.87	.36
Distributions from net investment income	(.60)	(.27)	-
Net asset value, end of period	$ 15.46	$ 13.56	$ 12.96
Total Return ^{B, C, D}	18.78%	6.80%	2.86%
Ratios to Average Net Assets ^{F, I}
Expenses before reductions	.86%	.92%	.96% ^A
Expenses net of fee waivers, if any	.86%	.92%	.96% ^A
Expenses net of all reductions	.86%	.89%	.94% ^A
Net investment income (loss)	1.86%	1.86%	1.83% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 16,370	$ 6,882	$ 1,330
Portfolio turnover rate ^G	132%	233%	43%

^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.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Asset Manager: Growth Portfolio (the Fund) is a fund of Variable Insurance Products Fund V (the trust) (formerly of Variable Insurance Products Fund II) and is authorized to issue an unlimited number of shares. Effective, April 19, 2007, the Board of Trustees approved an Agreement and Plan of Reorganization whereby the Fund reorganized into Variable Insurance Products V effective June 29, 2007 (Trust Reorganization). The Trust Reorganization does not impact the Fund's investment strategies or Fidelity Management & Research Company's (FMR) management of the Fund. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. 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 transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

Fidelity Central Fund	Investment Manager	Investment Objective	Investment Practices
Fidelity International Equity Central Fund	Fidelity Management & Research Company, Inc. (FMRC)	Seeks capital appreciation by investing primarily in non-US based common stocks, including securities of issuers located in emerging markets.	Delayed Delivery & When Issued Securities, Foreign Securities, Repurchase Agreements
Fidelity Floating Rate Central Fund	FMRC	Seeks a high level of income by normally investing in floating rate loans and other floating rate securities.	Loans & Direct Debt Instruments, Repurchase Agreements, Restricted Securities
Fidelity High Income Central Fund 1	FMRC	Seeks a high level of income and may also seek capital appreciation by investing primarily in debt securities, preferred stocks, and convertible securities, with an emphasis on lower-quality debt securities.	Loans & Direct Debt Instruments, Repurchase Agreements, Restricted Securities
VIP Investment Grade Central Fund	Fidelity Investments Money Management, Inc. (FIMM)	Seeks a high level of current income by normally investing in investment-grade debt securities and repurchase agreements.	Delayed Delivery & When Issued Securities, Mortgage Dollar Rolls, Repurchase Agreements, Restricted Securities Swap Agreements
Fidelity Money Market Central Funds	FIMM	Seeks to obtain a high level of current income consistent with the preservation of capital and liquidity.	Short-term investments

The Central Funds may have direct or indirect exposure to securities of issuers that hold mortgage securities, including securities backed by subprime mortgage loans. The value and related income of these securities is sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be adversely affected by shifts in the market's perception of the issuers and changes in interest rates.

Annual Report

2. Investments in Fidelity Central Funds - continued

3. Significant Accounting Policies.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as available dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, futures transactions, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, financing transactions, capital loss carryforwards and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 31,670,586
Unrealized depreciation	(4,162,995)
Net unrealized appreciation (depreciation)	27,507,591
Undistributed ordinary income	120,520
Capital loss carryforward	(15,645,137)

Cost for federal income tax purposes	$ 215,478,663

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 9,798,205	$ 5,395,505

New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements
(SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

4. Operating Policies.

Annual Report

4. Operating Policies - continued

5. Purchases and Sales of Investments.

Purchases and sales of securities including the Equity and Fixed-Income Central Funds, other than short-term securities and U.S. government securities, aggregated $272,919,922 and $293,782,683, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .56% of the Fund's average net assets.

For the period, each class paid FDC the following amounts, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services:

Service Class	$ 4,969
Service Class 2	17,117
	$ 22,086

Initial Class	$ 145,784
Service Class	3,489
Service Class 2	7,008
Investor Class	21,258
	$ 177,539

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Annual Report

Notes to Financial Statements - continued

6. Fees and Other Transactions with Affiliates - continued

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $487 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

9. Expense Reductions.

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $11,360 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $561.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 73% of the total outstanding shares of the Fund.

Annual Report

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 8,859,832	$ 5,133,316
Service Class	204,868	109,477
Service Class 2	261,814	111,371
Investor Class	471,691	41,341
Total	$ 9,798,205	$ 5,395,505

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	362,169	471,898	$ 5,422,430	$ 6,042,415
Reinvestment of distributions	614,047	399,480	8,859,831	5,133,316
Shares redeemed	(2,920,445)	(5,386,526)	(42,137,623)	(70,711,679)
Net increase (decrease)	(1,944,229)	(4,515,148)	$ (27,855,362)	$ (59,535,948)
Service Class
Shares sold	20,432	20,643	$ 287,973	$ 268,081
Reinvestment of distributions	14,289	8,573	204,868	109,477
Shares redeemed	(71,493)	(95,735)	(1,011,333)	(1,232,677)
Net increase (decrease)	(36,772)	(66,519)	$ (518,492)	$ (855,119)
Service Class 2
Shares sold	308,193	122,361	$ 4,486,311	$ 1,590,518
Reinvestment of distributions	18,038	8,762	261,814	111,371
Shares redeemed	(226,400)	(125,933)	(3,287,598)	(1,612,989)
Net increase (decrease)	99,831	5,190	$ 1,460,527	$ 88,900
Investor Class
Shares sold	724,903	550,642	$ 10,617,048	$ 7,124,044
Reinvestment of distributions	31,989	3,225	471,691	41,341
Shares redeemed	(205,796)	(148,989)	(2,995,812)	(1,944,955)
Net increase (decrease)	551,096	404,878	$ 8,092,927	$ 5,220,430

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund V and Shareholders of VIP Asset Manager: Growth Portfolio:

We have audited the accompanying statement of assets and liabilities of VIP Asset Manager: Growth Portfolio (the Fund), a fund of Variable Insurance Products Fund V, including the schedule of investments, as of December 31, 2007, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of VIP Asset Manager: Growth Portfolio as of December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 28, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1989 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Asset Manager: Growth. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Ren Y. Cheng (50)
	Year of Election or Appointment: 2007 Vice President of VIP Asset Manager: Growth. Mr. Cheng also serves as Vice President of certain Asset Allocation Funds (2007-present). Mr. Cheng is Chief Investment Officer of the Global Asset Allocation group (2007-present). Mr. Cheng also serves as Vice President of FMR and FMR Co., Inc. Mr. Cheng served as Managing Director of the Global Asset Allocation group (2005-2007). Previously, Mr. Cheng served as a portfolio manager for the Fidelity Freedom Funds.
Boyce I. Greer (51)
	Year of Election or Appointment: 2005 Vice President of VIP Asset Manager: Growth. Mr. Greer also serves as Vice President of certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). Mr. Greer is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as Vice President of certain Fidelity Equity Funds (2005-2007), a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. Mr. Greer also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002).
Thomas J. Silvia (46)
	Year of Election or Appointment: 2005 Vice President of VIP Asset Manager: Growth. Mr. Silvia also serves as Vice President of Fidelity's Fixed-Income Funds (2005-present) and Senior Vice President and Bond Group Leader of the Fidelity Investments Fixed-Income Division (2005-present). Previously, Mr. Silvia served as Vice President of certain Balanced Funds (2005-2007), certain Asset Allocation Funds (2005-2007), a Director of Fidelity's Taxable Bond portfolio managers (2002-2004) and a portfolio manager in the Bond Group (1997-2004).
Eric D. Roiter (59)
	Year of Election or Appointment: 1998 Secretary of VIP Asset Manager: Growth. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Asset Manager Growth. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Asset Manager: Growth. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Asset Manager: Growth. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Asset Manager: Growth. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Asset Manager: Growth. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Asset Manager: Growth. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Asset Manager: Growth. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Asset Manager: Growth. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Asset Manager: Growth. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP Asset Manager: Growth Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Capital Gains
Initial Class	02/15/08	02/15/08	$0.01
Service Class	02/15/08	02/15/08	$0.01
Service Class 2	02/15/08	02/15/08	$0.01
Investor Class	02/15/08	02/15/08	$0.01

Service Class designates 26% and 18%; Investor Class designates 26% and 18%; Initial Class designates 25% and 17%; and Service Class 2 designates 29% and 19%; of the dividends distributed in February and December 2007 respectively as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Asset Manager: Growth Portfolio

Annual Report

VIP Asset Manager: Growth Portfolio

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 30% means that 70% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

VIP Asset Manager: Growth Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

The Board noted that the total expenses of Initial Class ranked below its competitive median for 2006, and the total expenses of each of Investor Class, Service Class, and Service Class 2 ranked above its competitive median for 2006. The Board considered that the total expenses of Investor Class were above the median primarily due to its higher transfer agent fee. The Board noted that the fund offers multiple classes, each of which has a different 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

Annual Report

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Money Management, Inc.

Fidelity Investments Japan Limited

Fidelity International Investment Advisors
Fidelity International Investment Advisors
(U.K.) Limited

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

JPMorgan Chase Bank
New York, NY

VIPAMG-ANN-0208
1.540207.110

Fidelity® Variable Insurance Products:
Freedom Funds -
Income, 2005, 2010, 2015, 2020, 2025, 2030

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The managers' review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Freedom Income Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2005 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2010 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2015 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2020 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2025 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2030 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

VIP Freedom Funds Portfolio

VIP Freedom Income Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund^A
VIP Freedom Income - Initial Class	6.10%	6.59%

^AFrom April 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom Income Portfolio - Initial Class on April 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers U.S. Aggregate Index performed over the same period.

Annual Report

VIP Freedom 2005 Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund^A
VIP Freedom 2005 - Initial Class	8.65%	9.82%

^AFrom April 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom 2005 Portfolio - Initial Class on April 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers U.S. Aggregate Index performed over the same period.

VIP Freedom Funds Portfolio

VIP Freedom 2010 Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund^A
VIP Freedom 2010 - Initial Class	8.71%	10.07%

^AFrom April 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom 2010 Portfolio - Initial Class on April 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers U.S. Aggregate Index performed over the same period.

Annual Report

VIP Freedom 2015 Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund^A
VIP Freedom 2015 - Initial Class	9.33%	11.43%

^AFrom April 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom 2015 Portfolio - Initial Class on April 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

VIP Freedom Funds Portfolio

VIP Freedom 2020 Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund^A
VIP Freedom 2020 - Initial Class	10.23%	12.58%

^AFrom April 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom 2020 Portfolio - Initial Class on April 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

VIP Freedom 2025 Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund^A
VIP Freedom 2025 - Initial Class	10.50%	13.22%

^AFrom April 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom 2025 Portfolio - Initial Class on April 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

VIP Freedom Funds Portfolio

VIP Freedom 2030 Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund^A
VIP Freedom 2030 - Initial Class	11.37%	14.23%

^AFrom April 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom 2030 Portfolio - Initial Class on April 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Christopher Sharpe and Jonathan Shelon, Co-Portfolio Managers of VIP Freedom Funds

VIP Freedom Funds all recorded positive results for the year. (For specific portfolio performance results, please refer to the performance section of this report.) On an absolute basis, these returns were consistent with the kind of performance we would expect to see from a series of portfolios with different asset-allocation levels based on age-appropriate risks. On a relative basis versus their individual composite indexes, the Funds also did well, with all of them beating their respective benchmarks for the period. Overall performance was led by the Funds' underlying domestic and international equity asset classes. Both equity classes outperformed their benchmarks - the Dow Jones Wilshire 5000 Composite Index^SM, which rose 5.62%, and the MSCI EAFE, respectively - - thanks mostly to effective stock selection within their underlying funds. The Funds' investments in both short-term and high-yield bonds performed in line with their respective benchmarks, with returns of 5.11% for the Lehman Brothers 3-Month Treasury Bill Index and 2.53% for the Merrill LynchU.S. High Yield Master II Constrained Index. Meanwhile, the investment-grade bond class underperformed the 6.97% return of the Lehman Brothers U.S. Aggregate Index, in part because of its exposure to subprime-mortgage-backed securities, which saw their prices fall as the credit crunch worsened during the year.

Note to shareholders: Jonathan Shelon became Co-Portfolio Manager on September 4, 2007, replacing Ren Cheng, who was promoted to Chief Investment Officer of Fidelity's Global Asset Allocation Group.

VIP Freedom Funds Portfolio

Shareholder Expense Example

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 (July 1, 2007 to December 31, 2007).

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.

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
VIP Freedom Income
Initial Class
Actual	$ 1,000.00	$ 1,026.40	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00
Service Class
Actual	$ 1,000.00	$ 1,026.40	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.70	$ .51
Service Class 2
Actual	$ 1,000.00	$ 1,025.00	$ 1.28
Hypothetical^A	$ 1,000.00	$ 1,023.95	$ 1.28
VIP Freedom 2005
Initial Class
Actual	$ 1,000.00	$ 1,024.50	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00
Service Class
Actual	$ 1,000.00	$ 1,024.40	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.70	$ .51
Service Class 2
Actual	$ 1,000.00	$ 1,023.90	$ 1.28
Hypothetical^A	$ 1,000.00	$ 1,023.95	$ 1.28
VIP Freedom 2010
Initial Class
Actual	$ 1,000.00	$ 1,024.80	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00
Service Class
Actual	$ 1,000.00	$ 1,025.00	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.70	$ .51
	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Service Class 2
Actual	$ 1,000.00	$ 1,023.60	$ 1.28
Hypothetical^A	$ 1,000.00	$ 1,023.95	$ 1.28
VIP Freedom 2015
Initial Class
Actual	$ 1,000.00	$ 1,023.50	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00
Service Class
Actual	$ 1,000.00	$ 1,023.40	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.70	$ .51
Service Class 2
Actual	$ 1,000.00	$ 1,022.60	$ 1.27
Hypothetical^A	$ 1,000.00	$ 1,023.95	$ 1.28
VIP Freedom 2020
Initial Class
Actual	$ 1,000.00	$ 1,021.80	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00
Service Class
Actual	$ 1,000.00	$ 1,021.90	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.70	$ .51
Service Class 2
Actual	$ 1,000.00	$ 1,020.80	$ 1.27
Hypothetical^A	$ 1,000.00	$ 1,023.95	$ 1.28
VIP Freedom 2025
Initial Class
Actual	$ 1,000.00	$ 1,021.10	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00
Service Class
Actual	$ 1,000.00	$ 1,020.10	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.70	$ .51
Service Class 2
Actual	$ 1,000.00	$ 1,020.40	$ 1.27
Hypothetical^A	$ 1,000.00	$ 1,023.95	$ 1.28
VIP Freedom 2030
Initial Class
Actual	$ 1,000.00	$ 1,018.60	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00
Service Class
Actual	$ 1,000.00	$ 1,018.60	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.70	$ .51
Service Class 2
Actual	$ 1,000.00	$ 1,017.30	$ 1.27
Hypothetical^A	$ 1,000.00	$ 1,023.95	$ 1.28

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Fund invests are not included in each class' annualized expense ratio.

	Annualized Expense Ratio
VIP Freedom Income
Initial Class	.00%
Service Class	.10%
Service Class 2	.25%
VIP Freedom 2005
Initial Class	.00%
Service Class	.10%
Service Class 2	.25%
VIP Freedom 2010
Initial Class	.00%
Service Class	.10%
Service Class 2	.25%
VIP Freedom 2015
Initial Class	.00%
Service Class	.10%
Service Class 2	.25%
VIP Freedom 2020
Initial Class	.00%
Service Class	.10%
Service Class 2	.25%
VIP Freedom 2025
Initial Class	.00%
Service Class	.10%
Service Class 2	.25%
VIP Freedom 2030
Initial Class	.00%
Service Class	.10%
Service Class 2	.25%

Annual Report

VIP Freedom Income Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Initial Class	3.2	3.2
VIP Equity-Income Portfolio Initial Class	3.3	3.6
VIP Growth & Income Portfolio Initial Class	3.6	3.6
VIP Growth Portfolio Initial Class	3.9	3.7
VIP Mid Cap Portfolio Initial Class	1.3	1.3
VIP Value Portfolio Initial Class	2.8	3.1
VIP Value Strategies Portfolio Initial Class	1.1	1.3
	19.2	19.8
High Yield Fixed-Income Funds
VIP High Income Portfolio Initial Class	4.9	4.9
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Initial Class	35.7	34.9
Short-Term Funds
VIP Money Market Portfolio Initial Class	40.2	40.4
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	19.2%
	Investment Grade Fixed-Income Funds	35.7%
	High Yield Fixed-Income Funds	4.9%
	Short-Term Funds	40.2%

Six months ago
	Domestic Equity Funds	19.8%
	Investment Grade Fixed-Income Funds	34.9%
	High Yield Fixed-Income Funds	4.9%
	Short-Term Funds	40.4%

The six months ago allocation is based on the fund's holdings as of June 30, 2007. The current allocation is based on the fund's holdings as of December 31, 2007.

VIP Freedom Funds Portfolio

VIP Freedom Income Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 19.2%
	Shares		Value
Domestic Equity Funds - 19.2%
VIP Contrafund Portfolio Initial Class	16,318		$ 455,262
VIP Equity-Income Portfolio Initial Class	19,041		455,271
VIP Growth & Income Portfolio Initial Class	29,707		505,316
VIP Growth Portfolio Initial Class	12,195		550,247
VIP Mid Cap Portfolio Initial Class	4,973		179,817
VIP Value Portfolio Initial Class	29,506		386,819
VIP Value Strategies Portfolio Initial Class	12,742		160,298
TOTAL EQUITY FUNDS (Cost $2,497,118)		2,693,030
Fixed-Income Funds - 40.6%

High Yield Fixed-Income Funds - 4.9%
VIP High Income Portfolio Initial Class	114,847		686,786
Investment Grade Fixed-Income Funds - 35.7%
VIP Investment Grade Bond Portfolio Initial Class	392,974		5,014,350
TOTAL FIXED-INCOME FUNDS (Cost $5,619,604)		5,701,136
Short-Term Funds - 40.2%

VIP Money Market Portfolio Initial Class (Cost $5,645,598)	5,645,598		5,645,598
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $13,762,320)		$ 14,039,764

Annual Report

VIP Freedom Income Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $13,762,320) - See accompanying schedule		$ 14,039,764
Cash		19,080
Receivable for investments sold		64,925
Receivable for fund shares sold		6,182
Total assets		14,129,951

Liabilities
Payable for investments purchased	$ 19,992
Payable for fund shares redeemed	71,052
Distribution fees payable	769
Total liabilities		91,813

Net Assets		$ 14,038,138
Net Assets consist of:
Paid in capital		$ 13,604,857
Undistributed net investment income		3,810
Accumulated undistributed net realized gain (loss) on investments		152,027
Net unrealized appreciation (depreciation) on investments		277,444
Net Assets		$ 14,038,138

Initial Class: Net Asset Value, offering price and redemption price per share ($10,035,068 ÷ 928,788 shares)		$ 10.80

Service Class: Net Asset Value, offering price and redemption price per share ($414,447 ÷ 38,355 shares)		$ 10.81

Service Class 2: Net Asset Value, offering price and redemption price per share ($3,588,623 ÷ 332,880 shares)		$ 10.78

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 543,553

Expenses
Distribution fees	$ 7,311
Independent trustees' compensation	47
Total expenses before reductions	7,358
Expense reductions	(47)	7,311
Net investment income (loss)		536,242
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	19,770
Capital gain distributions from underlying funds	234,346	254,116
Change in net unrealized appreciation (depreciation) on underlying funds		20,918
Net gain (loss)		275,034
Net increase (decrease) in net assets resulting from operations		$ 811,276

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 536,242	$ 313,672
Net realized gain (loss)	254,116	91,629
Change in net unrealized appreciation (depreciation)	20,918	167,067
Net increase (decrease) in net assets resulting from operations	811,276	572,368
Distributions to shareholders from net investment income	(536,930)	(309,765)
Distributions to shareholders from net realized gain	(143,697)	(49,069)
Total distributions	(680,627)	(358,834)
Share transactions - net increase (decrease)	3,057,630	3,951,196
Total increase (decrease) in net assets	3,188,279	4,164,730

Net Assets
Beginning of period	10,849,859	6,685,129
End of period (including undistributed net investment income of $3,810 and undistributed net investment income of $4,498, respectively)	$ 14,038,138	$ 10,849,859

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.71	$ 10.36	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.43	.40	.16
Net realized and unrealized gain (loss)	.22	.32	.30
Total from investment operations	.65	.72	.46
Distributions from net investment income	(.44)	(.32)	(.10)
Distributions from net realized gain	(.12)	(.05)	-
Total distributions	(.56)	(.37)	(.10)
Net asset value, end of period	$ 10.80	$ 10.71	$ 10.36
Total Return^B,C,D	6.10%	6.94%	4.58%
Ratios to Average Net Assets^F,H
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	3.93%	3.75%	2.34%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 10,035	$ 9,398	$ 5,954
Portfolio turnover rate	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 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.

Annual Report

VIP Freedom Income Portfolio
Financial Statements - continued

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.71	$ 10.36	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.42	.39	.16
Net realized and unrealized gain (loss)	.23	.32	.29
Total from investment operations	.65	.71	.45
Distributions from net investment income	(.43)	(.31)	(.09)
Distributions from net realized gain	(.12)	(.05)	-
Total distributions	(.55)	(.36)	(.09)
Net asset value, end of period	$ 10.81	$ 10.71	$ 10.36
Total Return^B,C,D	6.10%	6.83%	4.51%
Ratios to Average Net Assets^F,H
Expenses before reductions	.10%	.10%	.10%^A
Expenses net of fee waivers, if any	.10%	.10%	.10%^A
Expenses net of all reductions	.10%	.10%	.10%^A
Net investment income (loss)	3.83%	3.65%	2.24%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 414	$ 391	$ 366
Portfolio turnover rate	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.

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.69	$ 10.36	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.40	.37	.15
Net realized and unrealized gain (loss)	.23	.32	.29
Total from investment operations	.63	.69	.44
Distributions from net investment income	(.42)	(.31)	(.08)
Distributions from net realized gain	(.12)	(.05)	-
Total distributions	(.54)	(.36)	(.08)
Net asset value, end of period	$ 10.78	$ 10.69	$ 10.36
Total Return^B,C,D	5.92%	6.61%	4.41%
Ratios to Average Net Assets^F,H
Expenses before reductions	.25%	.25%	.25%^A
Expenses net of fee waivers, if any	.25%	.25%	.25%^A
Expenses net of all reductions	.25%	.25%	.25%^A
Net investment income (loss)	3.68%	3.50%	2.09%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 3,589	$ 1,061	$ 365
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

VIP Freedom 2005 Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Initial Class	6.4	6.2
VIP Equity-Income Portfolio Initial Class	6.6	7.2
VIP Growth & Income Portfolio Initial Class	7.2	7.2
VIP Growth Portfolio Initial Class	7.7	7.3
VIP Mid Cap Portfolio Initial Class	2.5	2.6
VIP Value Portfolio Initial Class	5.6	6.1
VIP Value Strategies Portfolio Initial Class	2.3	2.6
	38.3	39.2
International Equity Funds
VIP Overseas Portfolio Initial Class	9.2	9.4
High Yield Fixed-Income Funds
VIP High Income Portfolio Initial Class	4.9	5.0
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Initial Class	35.4	34.5
Short-Term Funds
VIP Money Market Portfolio Initial Class	12.2	11.9
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	38.3%
	International Equity Funds	9.2%
	Investment Grade Fixed-Income Funds	35.4%
	High Yield Fixed-Income Funds	4.9%
	Short-Term Funds	12.2%

Six months ago
	Domestic Equity Funds	39.2%
	International Equity Funds	9.4%
	Investment Grade Fixed-Income Funds	34.5%
	High Yield Fixed-Income Funds	5.0%
	Short-Term Funds	11.9%

Expected
	Domestic Equity Funds	38.8%
	International Equity Funds	8.8%
	Investment Grade Fixed-Income Funds	33.8%
	High Yield Fixed-Income Funds	5.0%
	Short-Term Funds	13.6%

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 June 30, 2007. The current allocation is based on the fund's holdings as of December 31, 2007. The expected allocation represents the fund's anticipated allocation at June 30, 2008.

Annual Report

VIP Freedom 2005 Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 47.5%
	Shares		Value
Domestic Equity Funds - 38.3%
VIP Contrafund Portfolio Initial Class	23,196		$ 647,155
VIP Equity-Income Portfolio Initial Class	27,928		667,767
VIP Growth & Income Portfolio Initial Class	42,686		726,081
VIP Growth Portfolio Initial Class	17,163		774,410
VIP Mid Cap Portfolio Initial Class	7,112		257,168
VIP Value Portfolio Initial Class	43,092		564,930
VIP Value Strategies Portfolio Initial Class	18,583		233,769
TOTAL DOMESTIC EQUITY FUNDS			3,871,280
International Equity Funds - 9.2%
VIP Overseas Portfolio Initial Class	36,628		927,421
TOTAL EQUITY FUNDS (Cost $4,329,454)		4,798,701
Fixed-Income Funds - 40.3%

High Yield Fixed - Income Funds - 4.9%
VIP High Income Portfolio Initial Class	83,712		500,596
Investment Grade Fixed - Income Funds - 35.4%
VIP Investment Grade Bond Portfolio Initial Class	280,222		3,575,631
TOTAL FIXED-INCOME FUNDS (Cost $4,012,873)		4,076,227
Short-Term Funds - 12.2%

VIP Money Market Portfolio Initial Class (Cost $1,232,880)	1,232,880		1,232,880
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $9,575,207)		$ 10,107,808

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

VIP Freedom 2005 Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $9,575,207) - See accompanying schedule		$ 10,107,808
Receivable for investments sold		874
Total assets		10,108,682

Liabilities
Payable for investments purchased	$ 167
Payable for fund shares redeemed	588
Distribution fees payable	133
Total liabilities		888

Net Assets		$ 10,107,794
Net Assets consist of:
Paid in capital		$ 9,396,095
Undistributed net investment income		3,921
Accumulated undistributed net realized gain (loss) on investments		175,177
Net unrealized appreciation (depreciation) on investments		532,601
Net Assets		$ 10,107,794

Initial Class: Net Asset Value, offering price and redemption price per share ($9,202,915 ÷ 793,728 shares)		$ 11.59

Service Class: Net Asset Value, offering price and redemption price per share ($448,953 ÷ 38,728 shares)		$ 11.59

Service Class 2: Net Asset Value, offering price and redemption price per share ($455,926 ÷ 39,342 shares)		$ 11.59

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 280,010

Expenses
Distribution fees	$ 1,542
Independent trustees' compensation	30
Total expenses before reductions	1,572
Expense reductions	(30)	1,542
Net investment income (loss)		278,468
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	70,688
Capital gain distributions from underlying funds	386,389	457,077
Change in net unrealized appreciation (depreciation) on underlying funds		(51,770)
Net gain (loss)		405,307
Net increase (decrease) in net assets resulting from operations		$ 683,775

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2005 Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 278,468	$ 223,838
Net realized gain (loss)	457,077	126,531
Change in net unrealized appreciation (depreciation)	(51,770)	371,871
Net increase (decrease) in net assets resulting from operations	683,775	722,240
Distributions to shareholders from net investment income	(274,547)	(227,593)
Distributions to shareholders from net realized gain	(365,943)	(36,950)
Total distributions	(640,490)	(264,543)
Share transactions - net increase (decrease)	1,367,317	2,200,656
Total increase (decrease) in net assets	1,410,602	2,658,353

Net Assets
Beginning of period	8,697,192	6,038,839
End of period (including undistributed net investment income of $3,921 and undistributed net investment income of $0, respectively)	$ 10,107,794	$ 8,697,192

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.41	$ 10.74	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.38	.31	.09
Net realized and unrealized gain (loss)	.60	.72	.71
Total from investment operations	.98	1.03	.80
Distributions from net investment income	(.34)	(.31)	(.06)
Distributions from net realized gain	(.47)	(.05)	-
Total distributions	(.80)^I	(.36)	(.06)
Net asset value, end of period	$ 11.59	$ 11.41	$ 10.74
Total Return^B,C,D	8.65%	9.59%	7.98%
Ratios to Average Net Assets^F,H
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	3.20%	2.82%	1.24%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 9,203	$ 7,871	$ 5,284
Portfolio turnover rate	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.

^I Total distributions of $.800 per share is comprised of distributions from net investment income of $.335 and distributions from net realized gain of $.465 per share.

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.41	$ 10.74	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.37	.30	.08
Net realized and unrealized gain (loss)	.60	.72	.71
Total from investment operations	.97	1.02	.79
Distributions from net investment income	(.32)	(.30)	(.05)
Distributions from net realized gain	(.47)	(.05)	-
Total distributions	(.79)^I	(.35)	(.05)
Net asset value, end of period	$ 11.59	$ 11.41	$ 10.74
Total Return^B,C,D	8.55%	9.48%	7.91%
Ratios to Average Net Assets^F,H
Expenses before reductions	.10%	.10%	.10%^A
Expenses net of fee waivers, if any	.10%	.10%	.10%^A
Expenses net of all reductions	.10%	.10%	.10%^A
Net investment income (loss)	3.10%	2.72%	1.14%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 449	$ 414	$ 378
Portfolio turnover rate	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.

^I Total distributions of $.788 per share is comprised of distributions from net investment income of $.323 and distributions from net realized gain of $.465 per share.

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.41	$ 10.74	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.35	.29	.07
Net realized and unrealized gain (loss)	.60	.71	.71
Total from investment operations	.95	1.00	.78
Distributions from net investment income	(.31)	(.28)	(.04)
Distributions from net realized gain	(.47)	(.05)	-
Total distributions	(.77)^I	(.33)	(.04)
Net asset value, end of period	$ 11.59	$ 11.41	$ 10.74
Total Return^B,C,D	8.40%	9.34%	7.80%
Ratios to Average Net Assets^F,H
Expenses before reductions	.25%	.25%	.25%^A
Expenses net of fee waivers, if any	.25%	.25%	.25%^A
Expenses net of all reductions	.25%	.25%	.25%^A
Net investment income (loss)	2.95%	2.57%	1.00%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 456	$ 413	$ 377
Portfolio turnover rate	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.

^I Total distributions of $.771 per share is comprised of distributions from net investment income of $.306 and distributions from net realized gain of $.465 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2010 Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Initial Class	6.6	6.4
VIP Equity-Income Portfolio Initial Class	6.7	7.3
VIP Growth & Income Portfolio Initial Class	7.3	7.3
VIP Growth Portfolio Initial Class	7.9	7.5
VIP Mid Cap Portfolio Initial Class	2.6	2.7
VIP Value Portfolio Initial Class	5.7	6.3
VIP Value Strategies Portfolio Initial Class	2.4	2.6
	39.2	40.1
International Equity Funds
VIP Overseas Portfolio Initial Class	9.9	10.0
High Yield Fixed-Income Funds
VIP High Income Portfolio Initial Class	5.0	5.0
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Initial Class	35.9	34.9
Short-Term Funds
VIP Money Market Portfolio Initial Class	10.0	10.0
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	39.2%
	International Equity Funds	9.9%
	Investment Grade Fixed-Income Funds	35.9%
	High Yield Fixed-Income Funds	5.0%
	Short-Term Funds	10.0%

Six months ago
	Domestic Equity Funds	40.1%
	International Equity Funds	10.0%
	Investment Grade Fixed-Income Funds	34.9%
	High Yield Fixed-Income Funds	5.0%
	Short-Term Funds	10.0%

Expected
	Domestic Equity Funds	40.0%
	International Equity Funds	10.0%
	Investment Grade Fixed-Income Funds	35.0%
	High Yield Fixed-Income Funds	5.0%
	Short-Term Funds	10.0%

VIP Freedom Funds Portfolio

VIP Freedom 2010 Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 49.1%
	Shares		Value
Domestic Equity Funds - 39.2%
VIP Contrafund Portfolio Initial Class	254,960		$ 7,113,376
VIP Equity-Income Portfolio Initial Class	304,653		7,284,258
VIP Growth & Income Portfolio Initial Class	467,900		7,958,977
VIP Growth Portfolio Initial Class	188,986		8,527,037
VIP Mid Cap Portfolio Initial Class	78,220		2,828,431
VIP Value Portfolio Initial Class	471,278		6,178,453
VIP Value Strategies Portfolio Initial Class	203,634		2,561,712
TOTAL DOMESTIC EQUITY FUNDS			42,452,244
International Equity Funds - 9.9%
VIP Overseas Portfolio Initial Class	424,796		10,755,844
TOTAL EQUITY FUNDS (Cost $49,992,550)		53,208,088
Fixed-Income Funds - 40.9%

High Yield Fixed-Income Funds - 5.0%
VIP High Income Portfolio Initial Class	903,104		5,400,563
Investment Grade Fixed-Income Funds - 35.9%
VIP Investment Grade Bond Portfolio Initial Class	3,055,501		38,988,188
TOTAL FIXED-INCOME FUNDS (Cost $43,788,242)		44,388,751
Short-Term Funds - 10.0%

VIP Money Market Portfolio Initial Class (Cost $10,852,346)	10,852,346		10,852,346
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $104,633,138)		$ 108,449,185

Annual Report

VIP Freedom 2010 Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $104,633,138) - See accompanying schedule		$ 108,449,185
Cash		11,640
Receivable for investments sold		14
Receivable for fund shares sold		723,528
Total assets		109,184,367

Liabilities
Payable for investments purchased	$ 723,801
Payable for fund shares redeemed	12,741
Distribution fees payable	14,249
Total liabilities		750,791

Net Assets		$ 108,433,576
Net Assets consist of:
Paid in capital		$ 102,814,050
Undistributed net investment income		699
Accumulated undistributed net realized gain (loss) on investments		1,802,780
Net unrealized appreciation (depreciation) on investments		3,816,047
Net Assets		$ 108,433,576

Initial Class: Net Asset Value, offering price and redemption price per share ($26,628,604 ÷ 2,226,247 shares)		$ 11.96

Service Class: Net Asset Value, offering price and redemption price per share ($19,294,967 ÷ 1,614,701 shares)		$ 11.95

Service Class 2: Net Asset Value, offering price and redemption price per share ($62,510,005 ÷ 5,242,579 shares)		$ 11.92

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 2,643,400
Interest		74
Total income		2,643,474

Expenses
Distribution fees	$ 143,620
Independent trustees' compensation	298
Total expenses before reductions	143,918
Expense reductions	(298)	143,620
Net investment income (loss)		2,499,854
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	(108,553)
Capital gain distributions from underlying funds	3,850,599	3,742,046
Change in net unrealized appreciation (depreciation) on underlying funds		672,345
Net gain (loss)		4,414,391
Net increase (decrease) in net assets resulting from operations		$ 6,914,245

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 2,499,854	$ 1,029,176
Net realized gain (loss)	3,742,046	902,834
Change in net unrealized appreciation (depreciation)	672,345	2,551,775
Net increase (decrease) in net assets resulting from operations	6,914,245	4,483,785
Distributions to shareholders from net investment income	(2,484,126)	(1,040,763)
Distributions to shareholders from net realized gain	(2,555,478)	(276,865)
Total distributions	(5,039,604)	(1,317,628)
Share transactions - net increase (decrease)	40,920,991	38,663,621
Total increase (decrease) in net assets	42,795,632	41,829,778

Net Assets
Beginning of period	65,637,944	23,808,166
End of period (including undistributed net investment income of $699 and undistributed net investment income of $0, respectively)	$ 108,433,576	$ 65,637,944

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.59	$ 10.78	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.36	.28	.11
Net realized and unrealized gain (loss)	.64	.78	.72
Total from investment operations	1.00	1.06	.83
Distributions from net investment income	(.30)	(.20)	(.05)
Distributions from net realized gain	(.33)	(.05)	-
Total distributions	(.63)	(.25)	(.05)
Net asset value, end of period	$ 11.96	$ 11.59	$ 10.78
Total Return^B,C,D	8.71%	9.82%	8.33%
Ratios to Average Net Assets^F,H
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	2.95%	2.48%	1.56%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 26,629	$ 20,992	$ 13,343
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2010 Portfolio
Financial Statements - continued

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.58	$ 10.77	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.35	.27	.10
Net realized and unrealized gain (loss)	.64	.78	.72
Total from investment operations	.99	1.05	.82
Distributions from net investment income	(.29)	(.19)	(.05)
Distributions from net realized gain	(.33)	(.05)	-
Total distributions	(.62)	(.24)	(.05)
Net asset value, end of period	$ 11.95	$ 11.58	$ 10.77
Total Return^B,C,D	8.65%	9.78%	8.17%
Ratios to Average Net Assets^F,H
Expenses before reductions	.10%	.10%	.10%^A
Expenses net of fee waivers, if any	.10%	.10%	.10%^A
Expenses net of all reductions	.10%	.10%	.10%^A
Net investment income (loss)	2.85%	2.39%	1.46%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 19,295	$ 5,984	$ 764
Portfolio turnover rate	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.

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.56	$ 10.76	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.33	.25	.09
Net realized and unrealized gain (loss)	.64	.78	.72
Total from investment operations	.97	1.03	.81
Distributions from net investment income	(.28)	(.18)	(.05)
Distributions from net realized gain	(.33)	(.05)	-
Total distributions	(.61)	(.23)	(.05)
Net asset value, end of period	$ 11.92	$ 11.56	$ 10.76
Total Return^B,C,D	8.42%	9.58%	8.07%
Ratios to Average Net Assets^F,H
Expenses before reductions	.25%	.25%	.25%^A
Expenses net of fee waivers, if any	.25%	.25%	.25%^A
Expenses net of all reductions	.25%	.25%	.25%^A
Net investment income (loss)	2.70%	2.24%	1.31%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 62,510	$ 38,662	$ 9,702
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

VIP Freedom 2015 Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Initial Class	7.4	7.2
VIP Equity-Income Portfolio Initial Class	7.6	8.2
VIP Growth & Income Portfolio Initial Class	8.3	8.3
VIP Growth Portfolio Initial Class	8.8	8.5
VIP Mid Cap Portfolio Initial Class	2.9	3.0
VIP Value Portfolio Initial Class	6.4	7.1
VIP Value Strategies Portfolio Initial Class	2.7	2.9
	44.1	45.2
International Equity Funds
VIP Overseas Portfolio Initial Class	11.2	11.3
High Yield Fixed-Income Funds
VIP High Income Portfolio Initial Class	5.9	5.9
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Initial Class	32.7	31.7
Short-Term Funds
VIP Money Market Portfolio Initial Class	6.1	5.9
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	44.1%
	International Equity Funds	11.2%
	Investment Grade Fixed-Income Funds	32.7%
	High Yield Fixed-Income Funds	5.9%
	Short-Term Funds	6.1%

Six months ago
	Domestic Equity Funds	45.2%
	International Equity Funds	11.3%
	Investment Grade Fixed-Income Funds	31.7%
	High Yield Fixed-Income Funds	5.9%
	Short-Term Funds	5.9%

Expected
	Domestic Equity Funds	43.3%
	International Equity Funds	10.8%
	Investment Grade Fixed-Income Funds	33.0%
	High Yield Fixed-Income Funds	5.5%
	Short-Term Funds	7.4%

Annual Report

VIP Freedom 2015 Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 55.3%
	Shares		Value
Domestic Equity Funds - 44.1%
VIP Contrafund Portfolio Initial Class	155,157		$ 4,328,893
VIP Equity-Income Portfolio Initial Class	186,984		4,470,795
VIP Growth & Income Portfolio Initial Class	285,789		4,861,265
VIP Growth Portfolio Initial Class	114,859		5,182,451
VIP Mid Cap Portfolio Initial Class	47,842		1,729,979
VIP Value Portfolio Initial Class	288,675		3,784,527
VIP Value Strategies Portfolio Initial Class	125,162		1,574,540
TOTAL DOMESTIC EQUITY FUNDS			25,932,450
International Equity Funds - 11.2%
VIP Overseas Portfolio Initial Class	258,905		6,555,484
TOTAL EQUITY FUNDS (Cost $30,470,657)		32,487,934
Fixed-Income Funds - 38.6%

High Yield Fixed-Income Funds - 5.9%
VIP High Income Portfolio Initial Class	583,121		3,487,064
Investment Grade Fixed-Income Funds - 32.7%
VIP Investment Grade Bond Portfolio Initial Class	1,506,063		19,217,364
TOTAL FIXED-INCOME FUNDS (Cost $22,526,485)		22,704,428
Short-Term Funds - 6.1%

VIP Money Market Portfolio Initial Class (Cost $3,566,469)	3,566,469		3,566,469
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $56,563,611)		$ 58,758,831

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

VIP Freedom 2015 Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $56,563,611) - See accompanying schedule		$ 58,758,831
Cash		58
Receivable for investments sold		161
Receivable for fund shares sold		102,702
Total assets		58,861,752

Liabilities
Payable for investments purchased	$ 100,576
Payable for fund shares redeemed	2,572
Distribution fees payable	5,016
Total liabilities		108,164

Net Assets		$ 58,753,588
Net Assets consist of:
Paid in capital		$ 55,437,652
Accumulated undistributed net realized gain (loss) on investments		1,120,716
Net unrealized appreciation (depreciation) on investments		2,195,220
Net Assets		$ 58,753,588

Initial Class: Net Asset Value, offering price and redemption price per share ($33,779,761 ÷ 2,747,596 shares)		$ 12.29

Service Class: Net Asset Value, offering price and redemption price per share ($477,253 ÷ 38,820 shares)		$ 12.29

Service Class 2: Net Asset Value, offering price and redemption price per share ($24,496,574 ÷ 1,998,015 shares)		$ 12.26

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 1,381,702
Interest		8
Total income		1,381,710

Expenses
Distribution fees	$ 43,080
Independent trustees' compensation	157
Total expenses before reductions	43,237
Expense reductions	(157)	43,080
Net investment income (loss)		1,338,630
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	(50,193)
Capital gain distributions from underlying funds	2,392,687	2,342,494
Change in net unrealized appreciation (depreciation) on underlying funds		140,064
Net gain (loss)		2,482,558
Net increase (decrease) in net assets resulting from operations		$ 3,821,188

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2015 Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,338,630	$ 552,971
Net realized gain (loss)	2,342,494	627,270
Change in net unrealized appreciation (depreciation)	140,064	1,475,662
Net increase (decrease) in net assets resulting from operations	3,821,188	2,655,903
Distributions to shareholders from net investment income	(1,528,528)	(379,299)
Distributions to shareholders from net realized gain	(1,568,554)	(252,774)
Total distributions	(3,097,082)	(632,073)
Share transactions - net increase (decrease)	23,906,125	17,131,091
Total increase (decrease) in net assets	24,630,231	19,154,921

Net Assets
Beginning of period	34,123,357	14,968,436
End of period (including undistributed net investment income of $0 and undistributed net investment income of $172,565, respectively)	$ 58,753,588	$ 34,123,357

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.93	$ 10.95	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.37	.27	.11
Net realized and unrealized gain (loss)	.73	.94	.90
Total from investment operations	1.10	1.21	1.01
Distributions from net investment income	(.36)	(.14)	(.06)
Distributions from net realized gain	(.38)	(.09)	-
Total distributions	(.74)	(.23)	(.06)
Net asset value, end of period	$ 12.29	$ 11.93	$ 10.95
Total Return^B,C,D	9.33%	11.04%	10.11%
Ratios to Average Net Assets^F,H
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	2.93%	2.34%	1.50%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 33,780	$ 23,712	$ 13,930
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.93	$ 10.95	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.35	.26	.10
Net realized and unrealized gain (loss)	.74	.94	.90
Total from investment operations	1.09	1.20	1.00
Distributions from net investment income	(.35)	(.13)	(.05)
Distributions from net realized gain	(.38)	(.09)	-
Total distributions	(.73)	(.22)	(.05)
Net asset value, end of period	$ 12.29	$ 11.93	$ 10.95
Total Return^B,C,D	9.23%	10.94%	10.04%
Ratios to Average Net Assets^F,H
Expenses before reductions	.10%	.10%	.10%^A
Expenses net of fee waivers, if any	.10%	.10%	.10%^A
Expenses net of all reductions	.10%	.10%	.10%^A
Net investment income (loss)	2.83%	2.24%	1.40%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 477	$ 427	$ 385
Portfolio turnover rate	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.

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.91	$ 10.94	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.33	.24	.09
Net realized and unrealized gain (loss)	.74	.95	.90
Total from investment operations	1.07	1.19	.99
Distributions from net investment income	(.34)	(.13)	(.05)
Distributions from net realized gain	(.38)	(.09)	-
Total distributions	(.72)	(.22)	(.05)
Net asset value, end of period	$ 12.26	$ 11.91	$ 10.94
Total Return^B,C,D	9.07%	10.84%	9.90%
Ratios to Average Net Assets^F.H
Expenses before reductions	.25%	.25%	.25%^A
Expenses net of fee waivers, if any	.25%	.25%	.25%^A
Expenses net of all reductions	.25%	.25%	.25%^A
Net investment income (loss)	2.68%	2.09%	1.25%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 24,497	$ 9,984	$ 653
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2020 Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Initial Class	9.0	8.6
VIP Equity-Income Portfolio Initial Class	9.2	10.0
VIP Growth & Income Portfolio Initial Class	10.0	10.0
VIP Growth Portfolio Initial Class	10.7	10.2
VIP Mid Cap Portfolio Initial Class	3.6	3.6
VIP Value Portfolio Initial Class	7.8	8.5
VIP Value Strategies Portfolio Initial Class	3.3	3.6
	53.6	54.5
International Equity Funds
VIP Overseas Portfolio Initial Class	13.6	13.6
High Yield Fixed-Income Funds
VIP High Income Portfolio Initial Class	7.5	7.4
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Initial Class	24.9	24.1
Short-Term Funds
VIP Money Market Portfolio Initial Class	0.4	0.4
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	53.6%
	International Equity Funds	13.6%
	Investment Grade Fixed-Income Funds	24.9%
	High Yield Fixed-Income Funds	7.5%
	Short-Term Funds	0.4%

Six months ago
	Domestic Equity Funds	54.5%
	International Equity Funds	13.6%
	Investment Grade Fixed-Income Funds	24.1%
	High Yield Fixed-Income Funds	7.4%
	Short-Term Funds	0.4%

Expected
	Domestic Equity Funds	53.2%
	International Equity Funds	13.3%
	Investment Grade Fixed-Income Funds	25.2%
	High Yield Fixed-Income Funds	7.4%
	Short-Term Funds	0.9%

VIP Freedom Funds Portfolio

VIP Freedom 2020 Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 67.2%
	Shares		Value
Domestic Equity Funds - 53.6%
VIP Contrafund Portfolio Initial Class	547,972		$ 15,288,427
VIP Equity-Income Portfolio Initial Class	659,663		15,772,549
VIP Growth & Income Portfolio Initial Class	1,008,591		17,156,130
VIP Growth Portfolio Initial Class	405,498		18,296,055
VIP Mid Cap Portfolio Initial Class	168,762		6,102,427
VIP Value Portfolio Initial Class	1,020,429		13,377,822
VIP Value Strategies Portfolio Initial Class	442,086		5,561,441
TOTAL DOMESTIC EQUITY FUNDS			91,554,851
International Equity Funds - 13.6%
VIP Overseas Portfolio Initial Class	915,593		23,182,816
TOTAL EQUITY FUNDS (Cost $109,679,895)		114,737,667
Fixed-Income Funds - 32.4%

High Yield Fixed-Income Funds - 7.5%
VIP High Income Portfolio Initial Class	2,130,969		12,743,192
Investment Grade Fixed-Income Funds - 24.9%
VIP Investment Grade Bond Portfolio Initial Class	3,333,019		42,529,320
TOTAL FIXED-INCOME FUNDS (Cost $55,258,828)		55,272,512
Short-Term Funds - 0.4%

VIP Money Market Portfolio Initial Class (Cost $756,893)	756,893		756,893
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $165,695,616)		$ 170,767,072

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2020 Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $165,695,616) - See accompanying schedule		$ 170,767,072
Receivable for fund shares sold		631,639
Total assets		171,398,711

Liabilities
Payable to custodian bank	$ 1,119
Payable for investments purchased	610,084
Payable for fund shares redeemed	20,501
Distribution fees payable	25,728
Total liabilities		657,432

Net Assets		$ 170,741,279
Net Assets consist of:
Paid in capital		$ 161,789,388
Accumulated undistributed net realized gain (loss) on investments		3,880,435
Net unrealized appreciation (depreciation) on investments		5,071,456
Net Assets		$ 170,741,279

Initial Class: Net Asset Value, offering price and redemption price per share ($31,465,332 ÷ 2,490,792 shares)		$ 12.63

Service Class: Net Asset Value, offering price and redemption price per share ($19,881,344 ÷ 1,575,772 shares)		$ 12.62

Service Class 2: Net Asset Value, offering price and redemption price per share ($119,394,603 ÷ 9,478,162 shares)		$ 12.60

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 3,529,119
Interest		37
Total income		3,529,156

Expenses
Distribution fees	$ 232,635
Independent trustees' compensation	420
Total expenses before reductions	233,055
Expense reductions	(420)	232,635
Net investment income (loss)		3,296,521
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	(224,091)
Capital gain distributions from underlying funds	7,776,078	7,551,987
Change in net unrealized appreciation (depreciation) on underlying funds		(232,295)
Net gain (loss)		7,319,692
Net increase (decrease) in net assets resulting from operations		$ 10,616,213

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 3,296,521	$ 1,178,471
Net realized gain (loss)	7,551,987	1,816,338
Change in net unrealized appreciation (depreciation)	(232,295)	4,058,003
Net increase (decrease) in net assets resulting from operations	10,616,213	7,052,812
Distributions to shareholders from net investment income	(3,307,398)	(1,169,624)
Distributions to shareholders from net realized gain	(4,726,644)	(753,339)
Total distributions	(8,034,042)	(1,922,963)
Share transactions - net increase (decrease)	83,437,561	45,506,036
Total increase (decrease) in net assets	86,019,732	50,635,885

Net Assets
Beginning of period	84,721,547	34,085,662
End of period (including undistributed net investment income of $0 and undistributed net investment income of $8,841, respectively)	$ 170,741,279	$ 84,721,547

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 12.10	$ 11.07	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.35	.26	.13
Net realized and unrealized gain (loss)	.88	1.06	1.00
Total from investment operations	1.23	1.32	1.13
Distributions from net investment income	(.27)	(.18)	(.06)
Distributions from net realized gain	(.43)	(.11)	-
Total distributions	(.70)^I	(.29)	(.06)
Net asset value, end of period	$ 12.63	$ 12.10	$ 11.07
Total Return^B,C,D	10.23%	11.95%	11.34%
Ratios to Average Net Assets^F,H
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	2.76%	2.21%	1.80%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 31,465	$ 21,356	$ 16,085
Portfolio turnover rate	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.

^I Total distributions of $.698 per share is comprised of distributions from net investment income of $.273 and distributions from net realized gain of $.425 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2020 Portfolio
Financial Statements - continued

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 12.09	$ 11.07	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.34	.25	.12
Net realized and unrealized gain (loss)	.88	1.06	1.01
Total from investment operations	1.22	1.31	1.13
Distributions from net investment income	(.26)	(.18)	(.06)
Distributions from net realized gain	(.43)	(.11)	-
Total distributions	(.69)^I	(.29)	(.06)
Net asset value, end of period	$ 12.62	$ 12.09	$ 11.07
Total Return^B,C,D	10.17%	11.81%	11.30%
Ratios to Average Net Assets^F,H
Expenses before reductions	.10%	.10%	.10%^A
Expenses net of fee waivers, if any	.10%	.10%	.10%^A
Expenses net of all reductions	.10%	.10%	.10%^A
Net investment income (loss)	2.66%	2.11%	1.70%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 19,881	$ 6,555	$ 1,586
Portfolio turnover rate	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.

^I Total distributions of $.689 per share is comprised of distributions from net investment income of $.264 and distributions from net realized gain of $.425 per share.

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 12.08	$ 11.06	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.32	.23	.11
Net realized and unrealized gain (loss)	.87	1.07	1.01
Total from investment operations	1.19	1.30	1.12
Distributions from net investment income	(.25)	(.17)	(.06)
Distributions from net realized gain	(.43)	(.11)	-
Total distributions	(.67)^I	(.28)	(.06)
Net asset value, end of period	$ 12.60	$ 12.08	$ 11.06
Total Return^B,C,D	9.97%	11.70%	11.17%
Ratios to Average Net Assets^F,H
Expenses before reductions	.25%	.25%	.25%^A
Expenses net of fee waivers, if any	.25%	.25%	.25%^A
Expenses net of all reductions	.25%	.25%	.25%^A
Net investment income (loss)	2.51%	1.96%	1.55%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 119,395	$ 56,810	$ 16,414
Portfolio turnover rate	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.

^I Total distributions of $.674 per share is comprised of distributions from net investment income of $.249 and distributions from net realized gain of $.425 per share.

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

VIP Freedom 2025 Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Initial Class	9.4	9.0
VIP Equity-Income Portfolio Initial Class	9.8	10.4
VIP Growth & Income Portfolio Initial Class	10.6	10.4
VIP Growth Portfolio Initial Class	11.1	10.6
VIP Mid Cap Portfolio Initial Class	3.8	3.8
VIP Value Portfolio Initial Class	8.3	8.9
VIP Value Strategies Portfolio Initial Class	3.5	3.7
	56.5	56.8
International Equity Funds
VIP Overseas Portfolio Initial Class	14.1	14.2
High Yield Fixed-Income Funds
VIP High Income Portfolio Initial Class	7.5	7.5
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Initial Class	21.9	21.5
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	56.5%
	International Equity Funds	14.1%
	Investment Grade Fixed-Income Funds	21.9%
	High Yield Fixed-Income Funds	7.5%

Six months ago
	Domestic Equity Funds	56.8%
	International Equity Funds	14.2%
	Investment Grade Fixed-Income Funds	21.5%
	High Yield Fixed-Income Funds	7.5%

Expected
	Domestic Equity Funds	56.2%
	International Equity Funds	14.0%
	Investment Grade Fixed-Income Funds	22.3%
	High Yield Fixed-Income Funds	7.5%

Annual Report

VIP Freedom 2025 Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 70.6%
	Shares		Value
Domestic Equity Funds - 56.5%
VIP Contrafund Portfolio Initial Class	66,143		$ 1,845,389
VIP Equity-Income Portfolio Initial Class	80,891		1,934,107
VIP Growth & Income Portfolio Initial Class	122,387		2,081,810
VIP Growth Portfolio Initial Class	48,676		2,196,244
VIP Mid Cap Portfolio Initial Class	20,443		739,201
VIP Value Portfolio Initial Class	124,991		1,638,634
VIP Value Strategies Portfolio Initial Class	54,134		681,000
TOTAL DOMESTIC EQUITY FUNDS			11,116,385
International Equity Funds - 14.1%
VIP Overseas Portfolio Initial Class	109,968		2,784,386
TOTAL EQUITY FUNDS (Cost $13,253,032)		13,900,771
Fixed-Income Funds - 29.4%

High Yield Fixed-Income Funds - 7.5%
VIP High Income Portfolio Initial Class	247,612		1,480,721
Investment Grade Fixed-Income Funds - 21.9%
VIP Investment Grade Bond Portfolio Initial Class	337,850		4,310,967
TOTAL FIXED-INCOME FUNDS (Cost $5,802,961)		5,791,688
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $19,055,993)		$ 19,692,459

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

VIP Freedom 2025 Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $19,055,993) - See accompanying schedule		$ 19,692,459
Receivable for investments sold		128,688
Receivable for fund shares sold		1,807
Total assets		19,822,954

Liabilities
Payable to custodian bank	$ 746
Payable for fund shares redeemed	129,492
Distribution fees payable	837
Total liabilities		131,075

Net Assets		$ 19,691,879
Net Assets consist of:
Paid in capital		$ 18,579,501
Accumulated undistributed net realized gain (loss) on investments		475,912
Net unrealized appreciation (depreciation) on investments		636,466
Net Assets		$ 19,691,879

Initial Class: Net Asset Value, offering price and redemption price per share ($15,197,022 ÷ 1,195,987 shares)		$ 12.71

Service Class: Net Asset Value, offering price and redemption price per share ($497,310 ÷ 39,148 shares)		$ 12.70

Service Class 2: Net Asset Value, offering price and redemption price per share ($3,997,547 ÷ 315,356 shares)		$ 12.68

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 393,889
Interest		50
Total income		393,939

Expenses
Distribution fees	$ 3,466
Independent trustees' compensation	44
Total expenses before reductions	3,510
Expense reductions	(44)	3,466
Net investment income (loss)		390,473
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	(28,453)
Capital gain distributions from underlying funds	927,529	899,076
Change in net unrealized appreciation (depreciation) on underlying funds		(188,158)
Net gain (loss)		710,918
Net increase (decrease) in net assets resulting from operations		$ 1,101,391

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2025 Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 390,473	$ 150,496
Net realized gain (loss)	899,076	283,979
Change in net unrealized appreciation (depreciation)	(188,158)	528,242
Net increase (decrease) in net assets resulting from operations	1,101,391	962,717
Distributions to shareholders from net investment income	(392,829)	(151,306)
Distributions to shareholders from net realized gain	(575,210)	(126,743)
Total distributions	(968,039)	(278,049)
Share transactions - net increase (decrease)	10,198,355	3,065,781
Total increase (decrease) in net assets	10,331,707	3,750,449

Net Assets
Beginning of period	9,360,172	5,609,723
End of period	$ 19,691,879	$ 9,360,172

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 12.18	$ 11.16	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.38	.23	.11
Net realized and unrealized gain (loss)	.89	1.17	1.12
Total from investment operations	1.27	1.40	1.23
Distributions from net investment income	(.27)	(.21)	(.07)
Distributions from net realized gain	(.47)	(.17)	-
Total distributions	(.74)	(.38)	(.07)
Net asset value, end of period	$ 12.71	$ 12.18	$ 11.16
Total Return^B,C,D	10.50%	12.49%	12.25%
Ratios to Average Net Assets^F,H
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	2.95%	1.95%	1.44%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 15,197	$ 8,363	$ 4,825
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 12.18	$ 11.16	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.37	.22	.10
Net realized and unrealized gain (loss)	.87	1.16	1.12
Total from investment operations	1.24	1.38	1.22
Distributions from net investment income	(.25)	(.19)	(.06)
Distributions from net realized gain	(.47)	(.17)	-
Total distributions	(.72)	(.36)	(.06)
Net asset value, end of period	$ 12.70	$ 12.18	$ 11.16
Total Return^B,C,D	10.31%	12.39%	12.18%
Ratios to Average Net Assets^F,H
Expenses before reductions	.10%	.10%	.10%^A
Expenses net of fee waivers, if any	.10%	.10%	.10%^A
Expenses net of all reductions	.10%	.10%	.10%^A
Net investment income (loss)	2.85%	1.85%	1.34%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 497	$ 441	$ 393
Portfolio turnover rate	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.

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 12.17	$ 11.16	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.35	.20	.09
Net realized and unrealized gain (loss)	.89	1.16	1.12
Total from investment operations	1.24	1.36	1.21
Distributions from net investment income	(.26)	(.18)	(.05)
Distributions from net realized gain	(.47)	(.17)	-
Total distributions	(.73)	(.35)	(.05)
Net asset value, end of period	$ 12.68	$ 12.17	$ 11.16
Total Return^B,C,D	10.26%	12.18%	12.07%
Ratios to Average Net Assets^F,H
Expenses before reductions	.25%	.25%	.25%^A
Expenses net of fee waivers, if any	.25%	.25%	.25%^A
Expenses net of all reductions	.25%	.25%	.25%^A
Net investment income (loss)	2.70%	1.70%	1.19%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 3,998	$ 556	$ 392
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2030 Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Initial Class	10.8	10.4
VIP Equity-Income Portfolio Initial Class	11.2	12.0
VIP Growth & Income Portfolio Initial Class	12.2	12.0
VIP Growth Portfolio Initial Class	13.0	12.3
VIP Mid Cap Portfolio Initial Class	4.3	4.3
VIP Value Portfolio Initial Class	9.5	10.3
VIP Value Strategies Portfolio Initial Class	3.9	4.3
	64.9	65.6
International Equity Funds
VIP Overseas Portfolio Initial Class	16.5	16.4
High Yield Fixed-Income Funds
VIP High Income Portfolio Initial Class	7.6	7.5
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Initial Class	11.0	10.5
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	64.9%
	International Equity Funds	16.5%
	Investment Grade Fixed-Income Funds	11.0%
	High Yield Fixed-Income Funds	7.6%

Six months ago
	Domestic Equity Funds	65.6%
	International Equity Funds	16.4%
	Investment Grade Fixed-Income Funds	10.5%
	High Yield Fixed-Income Funds	7.5%

Expected
	Domestic Equity Funds	64.6%
	International Equity Funds	16.2%
	Investment Grade Fixed-Income Funds	11.7%
	High Yield Fixed-Income Funds	7.5%

VIP Freedom Funds Portfolio

VIP Freedom 2030 Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 81.4%
	Shares		Value
Domestic Equity Funds - 64.9%
VIP Contrafund Portfolio Initial Class	236,756		$ 6,605,485
VIP Equity-Income Portfolio Initial Class	284,108		6,793,012
VIP Growth & Income Portfolio Initial Class	435,175		7,402,330
VIP Growth Portfolio Initial Class	175,318		7,910,331
VIP Mid Cap Portfolio Initial Class	72,739		2,630,242
VIP Value Portfolio Initial Class	439,306		5,759,300
VIP Value Strategies Portfolio Initial Class	189,907		2,389,030
TOTAL DOMESTIC EQUITY FUNDS			39,489,730
International Equity Funds - 16.5%
VIP Overseas Portfolio Initial Class	395,491		10,013,843
TOTAL EQUITY FUNDS (Cost $46,783,040)		49,503,573
Fixed-Income Funds - 18.6%

High Yield Fixed-Income Funds - 7.6%
VIP High Income Portfolio Initial Class	767,910		4,592,102
Investment Grade Fixed-Income Funds - 11.0%
VIP Investment Grade Bond Portfolio Initial Class	525,781		6,708,967
TOTAL FIXED-INCOME FUNDS (Cost $11,493,515)		11,301,069
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $58,276,555)		$ 60,804,642

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2030 Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $58,276,555) - See accompanying schedule		$ 60,804,642
Cash		740
Receivable for investments sold		296
Receivable for fund shares sold		136,185
Total assets		60,941,863

Liabilities
Payable for investments purchased	$ 58,464
Payable for fund shares redeemed	78,400
Distribution fees payable	5,969
Total liabilities		142,833

Net Assets		$ 60,799,030
Net Assets consist of:
Paid in capital		$ 56,554,649
Accumulated undistributed net realized gain (loss) on investments		1,716,294
Net unrealized appreciation (depreciation) on investments		2,528,087
Net Assets		$ 60,799,030

Initial Class: Net Asset Value, offering price and redemption price per share ($23,767,106 ÷ 1,824,858 shares)		$ 13.02

Service Class: Net Asset Value, offering price and redemption price per share ($12,884,375 ÷ 990,205 shares)		$ 13.01

Service Class 2: Net Asset Value, offering price and redemption price per share ($24,147,549 ÷ 1,858,544 shares)		$ 12.99

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 1,244,983
Interest		60
Total income		1,245,043

Expenses
Distribution fees	$ 56,747
Independent trustees' compensation	160
Total expenses before reductions	56,907
Expense reductions	(160)	56,747
Net investment income (loss)		1,188,296
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	(163,667)
Capital gain distributions from underlying funds	3,555,296	3,391,629
Change in net unrealized appreciation (depreciation) on underlying funds		(28,674)
Net gain (loss)		3,362,955
Net increase (decrease) in net assets resulting from operations		$ 4,551,251

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,188,296	$ 454,629
Net realized gain (loss)	3,391,629	870,615
Change in net unrealized appreciation (depreciation)	(28,674)	1,738,118
Net increase (decrease) in net assets resulting from operations	4,551,251	3,063,362
Distributions to shareholders from net investment income	(1,194,475)	(470,715)
Distributions to shareholders from net realized gain	(2,163,007)	(345,367)
Total distributions	(3,357,482)	(816,082)
Share transactions - net increase (decrease)	25,665,961	15,075,481
Total increase (decrease) in net assets	26,859,730	17,322,761

Net Assets
Beginning of period	33,939,300	16,616,539
End of period	$ 60,799,030	$ 33,939,300

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 12.44	$ 11.27	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.34	.24	.13
Net realized and unrealized gain (loss)	1.06	1.25	1.21
Total from investment operations	1.40	1.49	1.34
Distributions from net investment income	(.28)	(.19)	(.07)
Distributions from net realized gain	(.54)	(.13)	-
Total distributions	(.82)	(.32)	(.07)
Net asset value, end of period	$ 13.02	$ 12.44	$ 11.27
Total Return^B,C,D	11.37%	13.20%	13.35%
Ratios to Average Net Assets^F,H
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	2.56%	2.05%	1.71%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 23,767	$ 14,298	$ 8,262
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom 2030 Portfolio
Financial Statements - continued

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 12.44	$ 11.27	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.33	.23	.12
Net realized and unrealized gain (loss)	1.05	1.25	1.21
Total from investment operations	1.38	1.48	1.33
Distributions from net investment income	(.27)	(.18)	(.06)
Distributions from net realized gain	(.54)	(.13)	-
Total distributions	(.81)	(.31)	(.06)
Net asset value, end of period	$ 13.01	$ 12.44	$ 11.27
Total Return^B,C,D	11.21%	13.15%	13.30%
Ratios to Average Net Assets^F,H
Expenses before reductions	.10%	.10%	.10%^A
Expenses net of fee waivers, if any	.10%	.10%	.10%^A
Expenses net of all reductions	.10%	.10%	.10%^A
Net investment income (loss)	2.46%	1.95%	1.62%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 12,884	$ 3,867	$ 958
Portfolio turnover rate	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.

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 12.42	$ 11.26	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.31	.21	.11
Net realized and unrealized gain (loss)	1.05	1.25	1.21
Total from investment operations	1.36	1.46	1.32
Distributions from net investment income	(.25)	(.17)	(.06)
Distributions from net realized gain	(.54)	(.13)	-
Total distributions	(.79)	(.30)	(.06)
Net asset value, end of period	$ 12.99	$ 12.42	$ 11.26
Total Return^B,C,D	11.08%	12.92%	13.16%
Ratios to Average Net Assets^F,H
Expenses before reductions	.25%	.25%	.25%^A
Expenses net of fee waivers, if any	.25%	.25%	.25%^A
Expenses net of all reductions	.25%	.25%	.25%^A
Net investment income (loss)	2.31%	1.80%	1.47%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 24,148	$ 15,774	$ 7,396
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

VIP Freedom Funds Portfolio

Notes to Financial Statements

For the period ended December 31, 2007

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 and VIP Freedom 2030 Portfolio (the Funds) are funds of Variable Insurance Products Fund V (formerly of Variable Insurance Products Fund IV). Effective, April 19, 2007, the Board of Trustees approved an Agreement and Plan of Reorganization whereby the Funds reorganized into Variable Insurance Products Fund V effective June 29, 2007 (Trust Reorganization). The Trust Reorganization does not impact the Funds' investment strategies or Fidelity Management & Research Company's (FMR) management of the Funds. 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, fixed income, and short-term funds (the Underlying Funds) managed by 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.

Security Valuation. Net asset value per share is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Investments in the Underlying Funds are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued on the basis of amortized cost, which approximates value.

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 for processing shareholder transactions 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. 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 among each fund in the trust. Expenses included in the accompanying financial statements reflect the expenses of each 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. All legal and other expenses associated with the Trust Reorganization will be paid by FMR.

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. Each Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Funds' federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

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.

Annual Report

Notes to Financial Statements - continued

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The tax-basis components of distributable earnings and the federal tax cost 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 Freedom Income	$ 13,762,916	$ 374,797	$ (97,949)	$ 276,848
VIP Freedom 2005	9,575,326	648,712	(116,230)	532,482
VIP Freedom 2010	104,635,716	5,699,728	(1,886,259)	3,813,469
VIP Freedom 2015	56,564,005	3,385,358	(1,190,532)	2,194,826
VIP Freedom 2020	165,696,046	10,045,279	(4,974,253)	5,071,026
VIP Freedom 2025	19,056,227	1,229,343	(593,111)	636,232
VIP Freedom 2030	58,276,787	4,460,341	(1,932,486)	2,527,855

	Undistributed Ordinary Income	Undistributed Long-term Capital Gain
VIP Freedom Income	$ 30,027	$ 126,402
VIP Freedom 2005	5,682	173,534
VIP Freedom 2010	699	1,805,358
VIP Freedom 2015	-	1,121,109
VIP Freedom 2020	-	3,880,865
VIP Freedom 2025	-	476,148
VIP Freedom 2030	-	1,716,528

The tax character of distributions paid was as follows:

December 31, 2007
	Ordinary Income	Long-term Capital Gains	Total
VIP Freedom Income	$ 623,460	$ 57,167	$ 680,627
VIP Freedom 2005	389,918	250,572	640,490
VIP Freedom 2010	3,554,163	1,485,441	5,039,604
VIP Freedom 2015	2,166,906	930,176	3,097,082
VIP Freedom 2020	5,419,053	2,614,989	8,034,042
VIP Freedom 2025	671,787	296,252	968,039
VIP Freedom 2030	2,172,376	1,185,106	3,357,482

December 31, 2006
	Ordinary Income	Long-term Capital Gains	Total
VIP Freedom Income	$ 319,579	$ 39,255	$ 358,834
VIP Freedom 2005	242,373	22,170	264,543
VIP Freedom 2010	1,096,136	221,492	1,317,628
VIP Freedom 2015	435,471	196,602	632,073
VIP Freedom 2020	1,306,595	616,368	1,922,963
VIP Freedom 2025	173,672	104,377	278,049
VIP Freedom 2030	550,416	265,666	816,082

3. Operating Policies.

VIP Freedom Funds Portfolio

3. Operating Policies - continued

Repurchase Agreements - continued

event of a default of the counterparty. Each applicable Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

4. Purchases and Sales of Investments.

Purchases and redemptions of the Underlying Fund shares are noted in the table below.

	Purchases ($)	Redemptions ($)
VIP Freedom Income	10,897,240	7,747,034
VIP Freedom 2005	5,833,597	4,441,758
VIP Freedom 2010	61,101,521	18,860,644
VIP Freedom 2015	33,112,500	8,568,390
VIP Freedom 2020	102,133,272	15,643,365
VIP Freedom 2025	13,202,526	2,653,770
VIP Freedom 2030	35,220,205	8,150,990

5. 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.

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	$ 406	$ 6,905	$ 7,311
VIP Freedom 2005	435	1,107	1,542
VIP Freedom 2010	12,962	130,658	143,620
VIP Freedom 2015	459	42,621	43,080
VIP Freedom 2020	14,102	218,533	232,635
VIP Freedom 2025	479	2,987	3,466
VIP Freedom 2030	8,629	48,118	56,747

6. 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. Total expenses for each class are limited to 0.00% of average net assets plus the distribution and service fees applicable to each class. 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	0%	$ 33
Service Class	.10%	2
Service Class 2	.25%	12

Annual Report

Notes to Financial Statements - continued

6. Expense Reductions - continued

The following classes of each applicable Fund were in reimbursement during the period: - continued

	Expense Limitations	Reimbursement from adviser
VIP Freedom 2005
Initial Class	0%	$ 28
Service Class	.10%	1
Service Class 2	.25%	1
VIP Freedom 2010
Initial Class	0%	73
Service Class	.10%	53
Service Class 2	.25%	172
VIP Freedom 2015
Initial Class	0%	90
Service Class	.10%	1
Service Class 2	.25%	66
VIP Freedom 2020
Initial Class	0%	77
Service Class	.10%	49
Service Class 2	.25%	294
VIP Freedom 2025
Initial Class	0%	34
Service Class	.10%	1
Service Class 2	.25%	9
VIP Freedom 2030
Initial Class	0%	63
Service Class	.10%	34
Service Class 2	.25%	63

7. 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 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	68%	1	15%
VIP Freedom 2005	98%	-	-
VIP Freedom 2010	25%	1	59%
VIP Freedom 2015	56%	1	34%
VIP Freedom 2020	16%	2	75%
VIP Freedom 2025	73%	1	12%
VIP Freedom 2030	35%	1	52%

VIP Freedom Funds Portfolio

8. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
VIP Freedom Income
From net investment income
Initial Class	$ 389,472	$ 269,889
Service Class	15,761	10,880
Service Class 2	131,697	28,996
Total	$ 536,930	$ 309,765
From net realized gain
Initial Class	$ 105,776	$ 42,500
Service Class	4,392	1,766
Service Class 2	33,529	4,803
Total	$ 143,697	$ 49,069
VIP Freedom 2005
From net investment income
Initial Class	$ 251,310	$ 207,132
Service Class	11,833	10,517
Service Class 2	11,404	9,944
Total	$ 274,547	$ 227,593
From net realized gain
Initial Class	$ 331,682	$ 33,434
Service Class	16,986	1,759
Service Class 2	17,275	1,757
Total	$ 365,943	$ 36,950
VIP Freedom 2010
From net investment income
Initial Class	$ 656,116	$ 353,057
Service Class	445,976	98,166
Service Class 2	1,382,034	589,540
Total	$ 2,484,126	$ 1,040,763
From net realized gain
Initial Class	$ 670,107	$ 88,708
Service Class	394,049	25,301
Service Class 2	1,491,322	162,856
Total	$ 2,555,478	$ 276,865
VIP Freedom 2015
From net investment income
Initial Class	$ 919,677	$ 271,006
Service Class	12,891	4,502
Service Class 2	595,960	103,791
Total	$ 1,528,528	$ 379,299
From net realized gain
Initial Class	$ 938,900	$ 175,471
Service Class	13,956	3,166
Service Class 2	615,698	74,137
Total	$ 1,568,554	$ 252,774
VIP Freedom 2020
From net investment income
Initial Class	$ 652,197	$ 316,990
Service Class	399,422	94,245
Service Class 2	2,255,779	758,389
Total	$ 3,307,398	$ 1,169,624
From net realized gain
Initial Class	$ 924,317	$ 189,505
Service Class	520,253	58,242
Service Class 2	3,282,074	505,592
Total	$ 4,726,644	$ 753,339

Annual Report

Notes to Financial Statements - continued

8. Distributions to Shareholders - continued

Distributions to shareholders of each class were as follows: - continued

Years ended December 31,	2007	2006
VIP Freedom 2025
From net investment income
Initial Class	$ 306,188	$ 136,529
Service Class	9,470	6,790
Service Class 2	77,171	7,987
Total	$ 392,829	$ 151,306
From net realized gain
Initial Class	$ 464,560	$ 113,219
Service Class	17,406	5,981
Service Class 2	93,244	7,543
Total	$ 575,210	$ 126,743
VIP Freedom 2030
From net investment income
Initial Class	$ 488,612	$ 210,649
Service Class	255,840	54,452
Service Class 2	450,023	205,614
Total	$ 1,194,475	$ 470,715
From net realized gain
Initial Class	$ 856,913	$ 145,662
Service Class	417,687	38,682
Service Class 2	888,407	161,023
Total	$ 2,163,007	$ 345,367

9. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
VIP Freedom Income
Initial Class
Shares sold	685,787	628,341	$ 7,557,523	$ 6,697,181
Reinvestment of distributions	45,868	29,149	495,249	312,388
Shares redeemed	(680,725)	(354,600)	(7,558,034)	(3,763,363)
Net increase (decrease)	50,930	302,890	$ 494,738	$ 3,246,206
Service Class
Reinvestment of distributions	1,867	1,180	$ 20,153	$ 12,646
Net increase (decrease)	1,867	1,180	$ 20,153	$ 12,646
Service Class 2
Shares sold	255,437	77,795	$ 2,785,548	$ 837,357
Reinvestment of distributions	15,330	3,159	165,225	33,799
Shares redeemed	(37,092)	(17,023)	(408,034)	(178,812)
Net increase (decrease)	233,675	63,931	$ 2,542,739	$ 692,344
VIP Freedom 2005
Initial Class
Shares sold	398,715	512,176	$ 4,787,205	$ 5,650,369
Reinvestment of distributions	50,295	21,052	582,992	240,567
Shares redeemed	(344,897)	(335,528)	(4,068,626)	(3,714,256)
Net increase (decrease)	104,113	197,700	$ 1,301,571	$ 2,176,680
Service Class
Reinvestment of distributions	2,487	1,074	$ 28,820	$ 12,275
Net increase (decrease)	2,487	1,074	$ 28,820	$ 12,275
Service Class 2
Shares sold	726	-	$ 8,434	$ -
Reinvestment of distributions	2,477	1,024	28,679	11,701
Shares redeemed	(16)	-	(187)	-
Net increase (decrease)	3,187	1,024	$ 36,926	$ 11,701

VIP Freedom Funds Portfolio

9. Share Transactions - continued

Transactions for each class of shares were as follows: - continued

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
VIP Freedom 2010
Initial Class
Shares sold	828,873	1,085,640	$ 10,012,337	$ 12,091,220
Reinvestment of distributions	111,133	38,083	1,326,223	441,765
Shares redeemed	(525,621)	(550,105)	(6,297,794)	(6,137,550)
Net increase (decrease)	414,385	573,618	$ 5,040,766	$ 6,395,435
Service Class
Shares sold	1,541,928	461,171	$ 18,694,544	$ 5,186,749
Reinvestment of distributions	70,366	10,644	840,025	123,467
Shares redeemed	(514,426)	(25,858)	(6,273,125)	(288,627)
Net increase (decrease)	1,097,868	445,957	$ 13,261,444	$ 5,021,589
Service Class 2
Shares sold	2,466,070	2,611,488	$ 29,558,142	$ 29,083,720
Reinvestment of distributions	241,528	65,030	2,873,356	752,397
Shares redeemed	(810,681)	(232,684)	(9,812,717)	(2,589,520)
Net increase (decrease)	1,896,917	2,443,834	$ 22,618,781	$ 27,246,597
VIP Freedom 2015
Initial Class
Shares sold	1,246,967	1,063,240	$ 15,630,773	$ 12,155,808
Reinvestment of distributions	151,849	37,362	1,858,577	446,476
Shares redeemed	(639,202)	(384,997)	(8,014,311)	(4,436,992)
Net increase (decrease)	759,614	715,605	$ 9,475,039	$ 8,165,292
Service Class
Shares sold	810	-	$ 10,000	$ -
Reinvestment of distributions	2,195	642	26,847	7,668
Net increase (decrease)	3,005	642	$ 36,847	$ 7,668
Service Class 2
Shares sold	1,142,941	825,508	$ 14,217,661	$ 9,476,778
Reinvestment of distributions	99,078	14,914	1,211,658	177,928
Shares redeemed	(82,606)	(61,528)	(1,035,080)	(696,575)
Net increase (decrease)	1,159,413	778,894	$ 14,394,239	$ 8,958,131
VIP Freedom 2020
Initial Class
Shares sold	1,051,777	858,421	$ 13,569,797	$ 9,934,015
Reinvestment of distributions	125,271	41,756	1,576,514	506,495
Shares redeemed	(450,780)	(588,301)	(5,731,905)	(6,802,896)
Net increase (decrease)	726,268	311,876	$ 9,414,406	$ 3,637,614
Service Class
Shares sold	1,195,293	411,929	$ 15,239,157	$ 4,798,643
Reinvestment of distributions	72,983	12,581	919,675	152,487
Shares redeemed	(234,570)	(25,736)	(3,023,931)	(305,071)
Net increase (decrease)	1,033,706	398,774	$ 13,134,901	$ 4,646,059
Service Class 2
Shares sold	4,990,327	3,353,614	$ 63,745,796	$ 38,778,034
Reinvestment of distributions	440,649	104,461	5,537,853	1,263,981
Shares redeemed	(656,261)	(238,340)	(8,395,395)	(2,819,652)
Net increase (decrease)	4,774,715	3,219,735	$ 60,888,254	$ 37,222,363
VIP Freedom 2025
Initial Class
Shares sold	622,753	508,046	$ 8,070,203	$ 5,956,062
Reinvestment of distributions	60,941	20,454	770,748	249,748
Shares redeemed	(174,322)	(274,265)	(2,213,504)	(3,281,077)
Net increase (decrease)	509,372	254,235	$ 6,627,447	$ 2,924,733

Annual Report

Notes to Financial Statements - continued

9. Share Transactions - continued

Transactions for each class of shares were as follows: - continued

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
VIP Freedom 2025 - continued
Service Class
Shares sold	788	-	$ 10,000	$ -
Reinvestment of distributions	2,131	1,047	26,876	12,771
Net increase (decrease)	2,919	1,047	$ 36,876	$ 12,771
Service Class 2
Shares sold	265,377	9,336	$ 3,480,937	$ 114,122
Reinvestment of distributions	13,434	1,273	170,415	15,530
Shares redeemed	(9,100)	(112)	(117,320)	(1,375)
Net increase (decrease)	269,711	10,497	$ 3,534,032	$ 128,277
VIP Freedom 2030
Initial Class
Shares sold	996,989	710,684	$ 13,223,488	$ 8,499,790
Reinvestment of distributions	103,604	28,573	1,345,525	356,311
Shares redeemed	(424,689)	(323,491)	(5,631,778)	(3,808,183)
Net increase (decrease)	675,904	415,766	$ 8,937,235	$ 5,047,918
Service Class
Shares sold	734,873	235,504	$ 9,669,259	$ 2,842,204
Reinvestment of distributions	51,784	7,469	673,527	93,133
Shares redeemed	(107,374)	(17,091)	(1,424,042)	(204,059)
Net increase (decrease)	679,283	225,882	$ 8,918,744	$ 2,731,278
Service Class 2
Shares sold	711,415	819,368	$ 9,456,604	$ 9,707,801
Reinvestment of distributions	103,352	29,449	1,338,430	366,637
Shares redeemed	(226,223)	(235,970)	(2,985,052)	(2,778,153)
Net increase (decrease)	588,544	612,847	$ 7,809,982	$ 7,296,285

VIP Freedom Funds Portfolio

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund V and the Shareholders of VIP Freedom Income Portfolio, VIP Freedom 2005 Portfolio, VIP Freedom 2010 Portfolio, VIP Freedom 2015 Portfolio, VIP Freedom 2020 Portfolio, VIP Freedom 2025 Portfolio, and VIP Freedom 2030 Portfolio:

We have audited the accompanying statements of assets and liabilities of VIP Freedom Income Portfolio, VIP Freedom 2005 Portfolio, VIP Freedom 2010 Portfolio, VIP Freedom 2015 Portfolio, VIP Freedom 2020 Portfolio, VIP Freedom 2025 Portfolio, and VIP Freedom 2030 Portfolio (the Funds), each a fund of the Variable Insurance Products Fund V (formerly of Variable Insurance Products Fund IV), including the schedules of investments, as of December 31, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodians. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of VIP Freedom Income Portfolio, VIP Freedom 2005 Portfoio, VIP Freedom 2010 Portfolio, VIP Freedom 2015 Portfolio, VIP Freedom 2020 Portfolio, VIP Freedom 2025 Portfolio, and VIP Freedom 2030 Portfolio as of December 31, 2007, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 28, 2008

Annual Report

Trustees and Officers

The Trustees, Members of the Advisory Board, and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. If the interests of a fund and an underlying Fidelity fund were to diverge, a conflict of interest could arise and affect how the Trustees and Members of the Advisory Board fulfill their fiduciary duties to the affected funds. Strategic Advisers has structured the funds to avoid these potential conflicts, although there may be situations where a conflict of interest is unavoidable. In such instances, Strategic Advisers, the Trustees, and Members of the Advisory Board would take reasonable steps to minimize and, if possible, eliminate the conflict. Except for James C. Curvey, each of the Trustees oversees 373 funds advised by FMR or an affiliate. Mr. Curvey oversees 368 funds advised by FMR or an affiliate.

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1989 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2007 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2007 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2007 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2007 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Ren Y. Cheng (50)
	Year of Election or Appointment: 2007 Vice President of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Cheng also serves as Vice President of certain Asset Allocation Funds (2007-present). Mr. Cheng is Chief Investment Officer of the Global Asset Allocation group (2007-present). Mr. Cheng also serves as Vice President of FMR and FMR Co., Inc. Mr. Cheng served as Managing Director of the Global Asset Allocation group (2005-2007). Previously, Mr. Cheng served as a portfolio manager for the Fidelity Freedom Funds.
Boyce I. Greer (51)
	Year of Election or Appointment: 2005 Vice President of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Greer also serves as Vice President of certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). Mr. Greer is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as Vice President of certain Fidelity Equity Funds (2005-2007), a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. Mr. Greer also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002).
Eric D. Roiter (59)
	Year of Election or Appointment: 2005 Secretary of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Investor Freedom Income, VIP Investor Freedom 2005, VIP Investor Freedom 2010, VIP Investor Freedom 2015, VIP Investor Freedom 2020, VIP Investor Freedom 2025, VIP Investor Freedom 2030. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of [Fidelity Distributors Corporation (FDC)/FDC] (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2005 Chief Compliance Officer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Freedom Income, VIP Freedom 2005, VIP Freedom 2010, VIP Freedom 2015, VIP Freedom 2020, VIP Freedom 2025, and VIP Freedom 2030. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities and dividends derived from net investment income:

	Pay Date	Record Date	Dividends	Capital Gains
VIP Freedom Income Portfolio
Initial Class	02/15/08	02/15/08	$0.005	$0.105
Service Class	02/15/08	02/15/08	$0.005	$0.105
Service Class 2	02/15/08	02/15/08	$0.005	$0.105
VIP Freedom 2005 Portfolio
Initial Class	02/15/08	02/15/08	$0.005	$0.245
Service Class	02/15/08	02/15/08	$0.005	$0.245
Service Class 2	02/15/08	02/15/08	$0.005	$0.245
VIP Freedom 2010 Portfolio
Initial Class	02/15/08	02/15/08	$0.000	$0.180
Service Class	02/15/08	02/15/08	$0.000	$0.180
Service Class 2	02/15/08	02/15/08	$0.000	$0.180
VIP Freedom 2015 Portfolio
Initial Class	02/15/08	02/15/08	$0.000	$0.230
Service Class	02/15/08	02/15/08	$0.000	$0.230
Service Class 2	02/15/08	02/15/08	$0.000	$0.230
VIP Freedom 2020 Portfolio
Initial Class	02/15/08	02/15/08	$0.000	$0.280
Service Class	02/15/08	02/15/08	$0.000	$0.280
Service Class 2	02/15/08	02/15/08	$0.000	$0.280
VIP Freedom 2025 Portfolio
Initial Class	02/15/08	02/15/08	$0.000	$0.300
Service Class	02/15/08	02/15/08	$0.000	$0.300
Service Class 2	02/15/08	02/15/08	$0.000	$0.300
VIP Freedom 2030 Portfolio
Initial Class	02/15/08	02/15/08	$0.000	$0.355
Service Class	02/15/08	02/15/08	$0.000	$0.355
Service Class 2	02/15/08	02/15/08	$0.000	$0.355

The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended December 31, 2007, or, if subsequently determined to be different, the net capital gain of such year.

VIP Freedom Income Portfolio	$141,963
VIP Freedom 2005 Portfolio	$340,125
VIP Freedom 2010 Portfolio	$2,697,309
VIP Freedom 2015 Portfolio	$1,687,736
VIP Freedom 2020 Portfolio	$5,475,164
VIP Freedom 2025 Portfolio	$653,372
VIP Freedom 2030 Portfolio	$2,428,457

VIP Freedom Funds Portfolio

A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:

	February 2007	December 2007
VIP Freedom Income Portfolio
Initial Class	3%	5%
Service Class	3%	5%
Service Class 2	3%	5%
VIP Freedom 2005 Portfolio
Initial Class	-%	11%
Service Class	-%	11%
Service Class 2	-%	12%
VIP Freedom 2010 Portfolio
Initial Class	9%	12%
Service Class	9%	12%
Service Class 2	9%	13%
VIP Freedom 2015 Portfolio
Initial Class	-%	13%
Service Class	-%	14%
Service Class 2	-%	14%
VIP Freedom 2020 Portfolio
Initial Class	8%	16%
Service Class	8%	16%
Service Class 2	8%	17%
VIP Freedom 2025 Portfolio
Initial Class	-%	17%
Service Class	-%	17%
Service Class 2	-%	17%
VIP Freedom 2030 Portfolio
Initial Class	-%	18%
Service Class	-%	19%
Service Class 2	-%	19%

The funds will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Freedom Funds

Each year, typically in July, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and administration agreement (together, the Advisory Contracts) for each fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Equity Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.

At its July 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for each fund. In reaching its determination, the Board considered all factors it believed relevant and ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contracts is consistent with Fidelity's fiduciary duty under applicable law. In reaching its determination, the Board is aware that shareholders in each fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that each fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in that fund, managed by Fidelity.

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, Strategic Advisers, Inc. (Strategic Advisers), and the administrator, FMR, including the backgrounds of the funds' portfolio managers and the funds' investment objectives and disciplines. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of Strategic Advisers' investment staff, their use of technology, and Strategic Advisers' and FMR's approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines.

Investment Performance and Compliance. The Board considered whether each fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance for each class, as well as each fund's relative investment performance for each class measured against a proprietary custom index. The Board noted that FMR does not believe that a meaningful peer group exists against which to compare any of the funds' performance. Because each fund had been in existence less than three calendar years, for each fund the following chart considered by the Board shows, for the one-year period ended December 31, 2006, the total returns of Initial Class and Service Class 2 of the fund and the total returns of a proprietary custom index ("benchmark"). The returns of Initial Class and Service Class 2 show the performance of the highest and lowest performing classes, respectively. For each fund, the proprietary custom index is an index developed by FMR that represents the performance of the fund's asset classes according to their respective weightings, (for each fund other than VIP Freedom Income Portfolio) adjusted on June 30 and December 31 of each calendar year to reflect the fund's increasingly conservative asset allocations.

VIP Freedom Funds Portfolio

VIP Freedom 2005 Portfolio

The Board stated that the relative investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.

VIP Freedom 2010 Portfolio

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Freedom 2015 Portfolio

VIP Freedom 2020 Portfolio

VIP Freedom Funds Portfolio

VIP Freedom 2025 Portfolio

VIP Freedom 2030 Portfolio

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Freedom Income Portfolio

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by Strategic Advisers and FMR to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to each fund will benefit each fund's shareholders, particularly in light of the Board's view that each fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board noted that the funds do not pay Strategic Advisers a management fee for investment advisory services. The Board considered each fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared. The Board also considered supplemental information about how each fund's management fee and total expenses ranked relative to groups based on Lipper classifications, which take into account a fund's market capitalization and style.

The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the charts below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than a fund's. For example, a TMG % of 1% means that 99% of the funds in the Total Mapped Group had higher management fees than a fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which a fund's management fee ranked, is also included in the charts and considered by the Board.

VIP Freedom Funds Portfolio

VIP Freedom 2005 Portfolio

VIP Freedom 2010 Portfolio

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Freedom 2015 Portfolio

VIP Freedom 2020 Portfolio

VIP Freedom Funds Portfolio

VIP Freedom 2025 Portfolio

VIP Freedom 2030 Portfolio

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Freedom Income Portfolio

The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that each fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of the total expenses of each class of each fund, the Board noted that each fund invests in Initial Class of the underlying fund to avoid charging fund-paid 12b-1 fees at both fund levels. The Board considered that the funds do not pay transfer agency fees. Instead, Initial Class of each underlying fund bears its pro rata portion of each fund's transfer agency fee according to the percentage of each fund's assets invested in that underlying fund. The Board further noted that FMR pays all other expenses of each fund, with limited exceptions.

The Board noted that the total expenses of each of Initial Class and Service Class of each fund ranked below its competitive median for 2006, and the total expenses of Service Class 2 of each fund ranked equal to its competitive median for 2006.

Based on its review, the Board concluded that the total expenses of each class of each fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds, as well as the profitability of each underlying fund.

The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund were not relevant to the renewal of each fund's Advisory Contracts because the funds do not pay management fees and FMR pays all other expenses of each fund, with limited exceptions.

Economies of Scale. The Board concluded that the realization of economies of scale was not relevant to the renewal of each fund's Advisory Contracts because the funds do not pay management fees and FMR pays all other expenses of each fund, with limited exceptions.

VIP Freedom Funds Portfolio

Annual 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

Mellon Bank, N.A.
Pittsburgh, PA

VIPFF2K-ANN-0208
1.826371.103

Fidelity® Variable Insurance Products:
Freedom Lifetime Income Funds -
Portfolios I, II, & III

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The managers' review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Lifetime Income Portfolio I	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Lifetime Income Portfolio II	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Lifetime Income Portfolio III	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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.

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 report, 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.

VIP Lifetime Income Funds Portfolio

VIP Freedom Lifetime Income I Portfolio

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company's separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended December 31, 2007		Past 1 year	Life of fund ^A
VIP Freedom Lifetime Income I		8.16%	8.60%

^A From July 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom Lifetime Income I on July 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM(S&P 500®) Index performed over the same period.

Annual Report

VIP Freedom Lifetime Income II Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007		Past 1 year	Life of fund ^A
VIP Freedom Lifetime Income II		9.67%	10.77%

^A From July 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom Lifetime Income II on July 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.

VIP Lifetime Income Funds Portfolio

VIP Freedom Lifetime Income III Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007		Past 1 year	Life of fund ^A
VIP Freedom Lifetime Income III		10.88%	12.32%

^A From July 26, 2005.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Freedom Lifetime Income III on July 26, 2005, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Christopher Sharpe and Jonathan Shelon, Co-Portfolio Managers of VIP Freedom Lifetime Income Funds

Each of the three VIP Freedom Lifetime Income Funds recorded positive results for the year. (For specific portfolio performance results, please refer to the performance section of this report.) On an absolute basis, these returns were consistent with the kind of performance we would expect to see from a series of portfolios with different asset-allocation levels based on age-appropriate risks. On a relative basis versus their individual composite indexes, the Funds also did well, with all of them beating their respective benchmarks for the period. Overall performance was led by the Funds' underlying domestic and international equity asset classes. Both equity classes outperformed their benchmarks - the Dow Jones Wilshire 5000 Composite Index^SM, which rose 5.62%, and the MSCI EAFE, respectively - thanks mostly to effective stock selection within their underlying funds. The Funds' investments in both short-term and high-yield bonds performed in line with their respective benchmarks, with returns of 5.11% for the Lehman Brothers 3-Month Treasury Bill Index and 2.53% for the Merrill LynchU.S. High Yield Master II Constrained Index. Meanwhile, the investment-grade bond class underperformed the 6.97% return of the Lehman Brothers U.S. Aggregate Index, in part because of its exposure to subprime-mortgage-backed securities, which saw their prices fall as the credit crunch worsened during the year.

Note to shareholders: Jonathan Shelon became Co-Portfolio Manager on September 4, 2007 replacing Ren Cheng, who was promoted to Chief Investment Officer of Fidelity's Global Asset Allocation Group.

VIP Lifetime Income Funds Portfolio

Shareholder Expense Example

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 (July 1, 2007 to December 31, 2007).

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.

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
VIP Freedom Lifetime Income I
Actual	$ 1,000.00	$ 1,025.20	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00
VIP Freedom Lifetime Income II
Actual	$ 1,000.00	$ 1,022.30	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00
VIP Freedom Lifetime Income III
Actual	$ 1,000.00	$ 1,020.00	$ .00
Hypothetical^A	$ 1,000.00	$ 1,025.21	$ .00

^A5% return per year before expenses

* Expenses are equal to each Fund's annualized expense ratio of .00%; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Fund invests are not included in the Fund's annualized expense ratio.

Annual Report

VIP Freedom Lifetime Income I Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Investor Class	5.9	5.7
VIP Equity-Income Portfolio Investor Class	6.0	6.5
VIP Growth & Income Portfolio Investor Class	6.6	6.6
VIP Growth Portfolio Investor Class	7.1	6.7
VIP Mid Cap Portfolio Investor Class	2.3	2.4
VIP Value Portfolio Investor Class	5.0	5.6
VIP Value Strategies Portfolio Investor Class	2.1	2.3
	35.0	35.8
International Equity Funds
VIP Overseas Portfolio Investor Class R	8.8	8.9
High Yield Fixed-Income Funds
VIP High Income Portfolio Investor Class	4.9	5.0
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Investor Class	39.4	38.7
Short-Term Funds
VIP Money Market Portfolio Investor Class	11.9	11.6
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	35.0%
	International Equity Funds	8.8%
	Investment Grade Fixed-Income Funds	39.4%
	High Yield Fixed-Income Funds	4.9%
	Short-Term Funds	11.9%

Six months ago
	Domestic Equity Funds	35.8%
	International Equity Funds	8.9%
	Investment Grade Fixed-Income Funds	38.7%
	High Yield Fixed-Income Funds	5.0%
	Short-Term Funds	11.6%

Expected
	Domestic Equity Funds	35.9%
	International Equity Funds	8.9%
	Investment Grade Fixed-Income Funds	36.9%
	High Yield Fixed-Income Funds	5.0%
	Short-Term Funds	13.3%

VIP Lifetime Income Funds Portfolio

VIP Freedom Lifetime Income I Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 43.8%
	Shares		Value
Domestic Equity Funds - 35.0%
VIP Contrafund Portfolio Investor Class	26,521		$ 737,813
VIP Equity-Income Portfolio Investor Class	31,414		749,223
VIP Growth & Income Portfolio Investor Class	48,609		824,417
VIP Growth Portfolio Investor Class	19,731		887,887
VIP Mid Cap Portfolio Investor Class	8,117		292,794
VIP Value Portfolio Investor Class	48,444		634,126
VIP Value Strategies Portfolio Investor Class	21,016		263,325
TOTAL DOMESTIC EQUITY FUNDS			4,389,585
International Equity Funds - 8.8%
VIP Overseas Portfolio Investor Class R	43,413		1,096,606
TOTAL EQUITY FUNDS (Cost $5,101,699)		5,486,191
Fixed-Income Funds - 44.3%

High Yield Fixed-Income Funds - 4.9%
VIP High Income Portfolio Investor Class	104,148		620,720
Investment Grade Fixed-Income Funds - 39.4%
VIP Investment Grade Bond Portfolio Investor Class	387,613		4,934,314
TOTAL FIXED-INCOME FUNDS (Cost $5,476,277)		5,555,034
Short-Term Funds - 11.9%

VIP Money Market Portfolio Investor Class (Cost $1,492,173)	1,492,173		1,492,173
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $12,070,149)		$ 12,533,398

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom Lifetime Income I Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $12,070,149) - See accompanying schedule		$ 12,533,398
Cash		89
Receivable for investments sold		566
Total assets		12,534,053

Liabilities
Payable for investments purchased	$ 201
Payable for fund shares redeemed	560
Total liabilities		761

Net Assets		$ 12,533,292
Net Assets consist of:
Paid in capital		$ 11,873,589
Undistributed net investment income		724
Accumulated undistributed net realized gain (loss) on investments		195,730
Net unrealized appreciation (depreciation) on investments		463,249
Net Assets, for 1,118,082 shares outstanding		$ 12,533,292
Net Asset Value, offering price and redemption price per share ($12,533,292 ÷ 1,118,082 shares)		$ 11.21

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 363,583

Expenses
Independent trustees' compensation	$ 39
Total expenses before reductions	39
Expense reductions	(39)	0
Net investment income (loss)		363,583
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	(1,056)
Capital gain distributions from underlying funds	444,130	443,074
Change in net unrealized appreciation (depreciation) on underlying funds		85,222
Net gain (loss)		528,296
Net increase (decrease) in net assets resulting from operations		$ 891,879

See accompanying notes which are an integral part of the financial statements.

VIP Lifetime Income Funds Portfolio

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 363,583	$ 160,138
Net realized gain (loss)	443,074	127,086
Change in net unrealized appreciation (depreciation)	85,222	348,399
Net increase (decrease) in net assets resulting from operations	891,879	635,623
Distributions to shareholders from net investment income	(361,791)	(162,340)
Distributions to shareholders from net realized gain	(328,199)	(45,095)
Total distributions	(689,990)	(207,435)
Share transactions Proceeds from sales of shares	2,994,715	7,602,656
Reinvestment of distributions	689,990	207,435
Cost of shares redeemed	(1,459,058)	(1,038,565)
Net increase (decrease) in net assets resulting from share transactions	2,225,647	6,771,526
Total increase (decrease) in net assets	2,427,536	7,199,714

Net Assets
Beginning of period	10,105,756	2,906,042
End of period (including undistributed net investment income of $724 and $0, respectively)	$ 12,533,292	$ 10,105,756
Other Information Shares
Sold	263,784	715,785
Issued in reinvestment of distributions	61,611	18,875
Redeemed	(128,066)	(96,908)
Net increase (decrease)	197,329	637,752

Financial Highlights

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.98	$ 10.27	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.36	.27	.10
Net realized and unrealized gain (loss)	.53	.67	.26
Total from investment operations	.89	.94	.36
Distributions from net investment income	(.34)	(.18)	(.05)
Distributions from net realized gain	(.32)	(.05)	(.04)
Total distributions	(.66)	(.23)	(.09)
Net asset value, end of period	$ 11.21	$ 10.98	$ 10.27
Total Return^{B, C, D}	8.16%	9.15%	3.55%
Ratios to Average Net Assets^{F, H}
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	3.15%	2.50%	2.23%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 12,533	$ 10,106	$ 2,906
Portfolio turnover rate	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 expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. 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.

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom Lifetime Income II Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Investor Class	7.9	7.7
VIP Equity-Income Portfolio Investor Class	8.1	8.9
VIP Growth & Income Portfolio Investor Class	8.9	9.0
VIP Growth Portfolio Investor Class	9.5	9.1
VIP Mid Cap Portfolio Investor Class	3.2	3.2
VIP Value Portfolio Investor Class	6.9	7.6
VIP Value Strategies Portfolio Investor Class	2.8	3.2
	47.3	48.7
International Equity Funds
VIP Overseas Portfolio Investor Class R	11.9	12.1
High Yield Fixed-Income Funds
VIP High Income Portfolio Investor Class	6.8	6.9
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Investor Class	30.8	29.4
Short-Term Funds
VIP Money Market Portfolio Investor Class	3.2	2.9
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	47.3%
	International Equity Funds	11.9%
	Investment Grade Fixed-Income Funds	30.8%
	High Yield Fixed-Income Funds	6.8%
	Short-Term Funds	3.2%

Six months ago
	Domestic Equity Funds	48.7%
	International Equity Funds	12.1%
	Investment Grade Fixed-Income Funds	29.4%
	High Yield Fixed-Income Funds	6.9%
	Short-Term Funds	2.9%

Expected
	Domestic Equity Funds	45.8%
	International Equity Funds	11.4%
	Investment Grade Fixed-Income Funds	32.0%
	High Yield Fixed-Income Funds	6.5%
	Short-Term Funds	4.3%

VIP Lifetime Income Funds Portfolio

VIP Freedom Lifetime Income II Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 59.2%
	Shares		Value
Domestic Equity Funds - 47.3%
VIP Contrafund Portfolio Investor Class	64,854		$ 1,804,238
VIP Equity-Income Portfolio Investor Class	77,184		1,840,845
VIP Growth & Income Portfolio Investor Class	118,981		2,017,913
VIP Growth Portfolio Investor Class	48,179		2,168,046
VIP Mid Cap Portfolio Investor Class	19,893		717,554
VIP Value Portfolio Investor Class	119,049		1,558,350
VIP Value Strategies Portfolio Investor Class	51,622		646,828
TOTAL DOMESTIC EQUITY FUNDS			10,753,774
International Equity Funds - 11.9%
VIP Overseas Portfolio Investor Class R	106,742		2,696,314
TOTAL EQUITY FUNDS (Cost $12,663,591)		13,450,088
Fixed-Income Funds - 37.6%

High Yield Fixed-Income Funds - 6.8%
VIP High Income Portfolio Investor Class	257,909		1,537,136
Investment Grade Fixed-Income Funds - 30.8%
VIP Investment Grade Bond Portfolio Investor Class	549,725		6,998,003
TOTAL FIXED-INCOME FUNDS (Cost $8,445,764)		8,535,139
Short-Term Funds - 3.2%

VIP Money Market Portfolio Investor Class (Cost $715,805)	715,805		715,805
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $21,825,160)		$ 22,701,032

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom Lifetime Income II Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $21,825,160) - See accompanying schedule		$ 22,701,032
Cash		90
Receivable for investments sold		1,077
Total assets		22,702,199

Liabilities
Payable for investments purchased	$ 98
Payable for fund shares redeemed	1,062
Total liabilities		1,160

Net Assets		$ 22,701,039
Net Assets consist of:
Paid in capital		$ 21,344,859
Undistributed net investment income		6,993
Accumulated undistributed net realized gain (loss) on investments		473,315
Net unrealized appreciation (depreciation) on investments		875,872
Net Assets, for 1,942,909 shares outstanding		$ 22,701,039
Net Asset Value, offering price and redemption price per share ($22,701,039 ÷ 1,942,909 shares)		$ 11.68

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 545,664

Expenses
Independent trustees' compensation	$ 69
Total expenses before reductions	69
Expense reductions	(69)	0
Net investment income (loss)		545,664
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	27,875
Capital gain distributions from underlying funds	1,076,319	1,104,194
Change in net unrealized appreciation (depreciation) on underlying funds		186,662
Net gain (loss)		1,290,856
Net increase (decrease) in net assets resulting from operations		$ 1,836,520

See accompanying notes which are an integral part of the financial statements.

VIP Lifetime Income Funds Portfolio

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 545,664	$ 212,416
Net realized gain (loss)	1,104,194	277,462
Change in net unrealized appreciation (depreciation)	186,662	641,870
Net increase (decrease) in net assets resulting from operations	1,836,520	1,131,748
Distributions to shareholders from net investment income	(542,373)	(208,713)
Distributions to shareholders from net realized gain	(833,778)	(74,541)
Total distributions	(1,376,151)	(283,254)
Share transactions Proceeds from sales of shares	5,718,549	14,411,163
Reinvestment of distributions	1,376,151	283,254
Cost of shares redeemed	(2,074,997)	(688,332)
Net increase (decrease) in net assets resulting from share transactions	5,019,703	14,006,085
Total increase (decrease) in net assets	5,480,072	14,854,579

Net Assets
Beginning of period	17,220,967	2,366,388
End of period (including undistributed net investment income of $6,993 and $3,703, respectively)	$ 22,701,039	$ 17,220,967
Other Information Shares
Sold	481,833	1,326,173
Issued in reinvestment of distributions	117,952	24,891
Redeemed	(172,555)	(63,508)
Net increase (decrease)	427,230	1,287,556

Financial Highlights

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.36	$ 10.37	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.32	.23	.10
Net realized and unrealized gain (loss)	.77	.95	.40
Total from investment operations	1.09	1.18	.50
Distributions from net investment income	(.30)	(.14)	(.06)
Distributions from net realized gain	(.48)	(.05)	(.07)
Total distributions	(.77)^I	(.19)	(.13)
Net asset value, end of period	$ 11.68	$ 11.36	$ 10.37
Total Return^{B, C, D}	9.67%	11.38%	5.00%
Ratios to Average Net Assets^{F, H}
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	2.67%	2.12%	2.18%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 22,701	$ 17,221	$ 2,366
Portfolio turnover rate	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.

^I 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.

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom Lifetime Income III Portfolio

Investment Changes

Fund Holdings as of December 31, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Investor Class	10.0	9.7
VIP Equity-Income Portfolio Investor Class	10.2	11.2
VIP Growth & Income Portfolio Investor Class	11.2	11.2
VIP Growth Portfolio Investor Class	12.0	11.4
VIP Mid Cap Portfolio Investor Class	3.9	4.0
VIP Value Portfolio Investor Class	8.6	9.5
VIP Value Strategies Portfolio Investor Class	3.6	4.0
	59.5	61.0
International Equity Funds
VIP Overseas Portfolio Investor Class R	15.1	15.1
High Yield Fixed-Income Funds
VIP High Income Portfolio Investor Class	7.5	7.5
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Investor Class	17.9	16.4
Short-Term Funds
VIP Money Market Portfolio Investor Class	0.0	0.0
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	59.5%
	International Equity Funds	15.1%
	Investment Grade Fixed-Income Funds	17.9%
	High Yield Fixed-Income Funds	7.5%
	Short-Term Funds	0.0%

Six months ago
	Domestic Equity Funds	61.0%
	International Equity Funds	15.1%
	Investment Grade Fixed-Income Funds	16.4%
	High Yield Fixed-Income Funds	7.5%
	Short-Term Funds	0.0%

Expected
	Domestic Equity Funds	58.3%
	International Equity Funds	14.6%
	Investment Grade Fixed-Income Funds	19.6%
	High Yield Fixed-Income Funds	7.5%
	Short-Term Funds	0.0%

VIP Lifetime Income Funds Portfolio

VIP Freedom Lifetime Income III Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 74.6%
	Shares		Value
Domestic Equity Funds - 59.5%
VIP Contrafund Portfolio Investor Class	39,866		$ 1,109,079
VIP Equity-Income Portfolio Investor Class	47,283		1,127,689
VIP Growth & Income Portfolio Investor Class	73,024		1,238,480
VIP Growth Portfolio Investor Class	29,591		1,331,617
VIP Mid Cap Portfolio Investor Class	12,192		439,769
VIP Value Portfolio Investor Class	72,998		955,537
VIP Value Strategies Portfolio Investor Class	31,589		395,805
TOTAL DOMESTIC EQUITY FUNDS			6,597,976
International Equity Funds - 15.1%
VIP Overseas Portfolio Investor Class R	66,138		1,670,658
TOTAL EQUITY FUNDS (Cost $7,621,747)		8,268,634
Fixed-Income Funds - 25.4%

High Yield Fixed-Income Funds - 7.5%
VIP High Income Portfolio Investor Class	139,921		833,931
Investment Grade Fixed-Income Funds - 17.9%
VIP Investment Grade Bond Portfolio Investor Class	155,526		1,979,851
TOTAL FIXED-INCOME FUNDS (Cost $2,812,642)		2,813,782
Short-Term Funds - 0.0%

VIP Money Market Portfolio Investor Class (Cost $2,216)	2,216		2,216
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $10,436,605)		$ 11,084,632

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP Freedom Lifetime Income III Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (cost $10,436,605) - See accompanying schedule		$ 11,084,632
Cash		88
Receivable for investments sold		493
Total assets		11,085,213

Liabilities
Payable for investments purchased	$ 12
Payable for fund shares redeemed	484
Total liabilities		496

Net Assets		$ 11,084,717
Net Assets consist of:
Paid in capital		$ 10,144,386
Accumulated undistributed net realized gain (loss) on investments		292,304
Net unrealized appreciation (depreciation) on investments		648,027
Net Assets, for 931,677 shares outstanding		$ 11,084,717
Net Asset Value, offering price and redemption price per share ($11,084,717 ÷ 931,677 shares)		$ 11.90

Statement of Operations

	Year ended December 31, 2007

Investment Income
Income distributions from underlying funds		$ 247,764

Expenses
Independent trustees' compensation	$ 35
Total expenses before reductions	35
Expense reductions	(35)	0
Net investment income (loss)		247,764
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	6,748
Capital gain distributions from underlying funds	682,498	689,246
Change in net unrealized appreciation (depreciation) on underlying funds		81,118
Net gain (loss)		770,364
Net increase (decrease) in net assets resulting from operations		$ 1,018,128

See accompanying notes which are an integral part of the financial statements.

VIP Lifetime Income Funds Portfolio

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 247,764	$ 112,758
Net realized gain (loss)	689,246	219,068
Change in net unrealized appreciation (depreciation)	81,118	469,611
Net increase (decrease) in net assets resulting from operations	1,018,128	801,437
Distributions to shareholders from net investment income	(249,881)	(112,128)
Distributions to shareholders from net realized gain	(532,048)	(82,227)
Total distributions	(781,929)	(194,355)
Share transactions Proceeds from sales of shares	1,768,038	5,427,409
Reinvestment of distributions	781,929	194,355
Cost of shares redeemed	(536,548)	(352,017)
Net increase (decrease) in net assets resulting from share transactions	2,013,419	5,269,747
Total increase (decrease) in net assets	2,249,618	5,876,829

Net Assets
Beginning of period	8,835,099	2,958,270
End of period (including undistributed net investment income of $0 and $630, respectively)	$ 11,084,717	$ 8,835,099
Other Information Shares
Sold	145,013	496,103
Issued in reinvestment of distributions	65,782	16,769
Redeemed	(43,397)	(30,993)
Net increase (decrease)	167,398	481,879

Financial Highlights

Years ended December 31,	2007	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.56	$ 10.48	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.29	.19	.11
Net realized and unrealized gain (loss)	.96	1.15	.50
Total from investment operations	1.25	1.34	.61
Distributions from net investment income	(.29)	(.15)	(.06)
Distributions from net realized gain	(.62)	(.11)	(.07)
Total distributions	(.91)	(.26)	(.13)
Net asset value, end of period	$ 11.90	$ 11.56	$ 10.48
Total Return^{B, C, D}	10.88%	12.78%	6.10%
Ratios to Average Net Assets^{F, H}
Expenses before reductions	.00%	.00%	.00%^A
Expenses net of fee waivers, if any	.00%	.00%	.00%^A
Expenses net of all reductions	.00%	.00%	.00%^A
Net investment income (loss)	2.41%	1.76%	2.39%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 11,085	$ 8,835	$ 2,958
Portfolio turnover rate	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.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

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 (formerly of Variable Insurance Products IV). Effective, April 19, 2007, the Board of Trustees approved an Agreement and Plan of Reorganization whereby the Funds reorganized into Variable Insurance Products V effective June 29, 2007 (Trust Reorganization). The Trust Reorganization does not impact the Funds' investment strategies or Fidelity Management & Research Company's (FMR) management of the Funds. 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, fixed income, and short-term funds (the Underlying Funds) managed by 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.

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 generally accepted accounting principles.

Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds and losses deferred due to wash sales.

VIP Lifetime Income Funds Portfolio

2. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

The tax-basis components of distributable earnings and the federal tax cost 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 Freedom Lifetime Income I	$ 12,070,181	$ 636,371	$ (173,154)	$ 463,217
VIP Freedom Lifetime Income II	21,825,326	1,349,610	(473,904)	875,706
VIP Freedom Lifetime Income III	10,436,709	886,743	(238,820)	647,923

	Undistributed Ordinary Income	Undistributed Long-term Capital Gain	Capital Loss Carryforward
VIP Freedom Lifetime Income I	$ 724	$ 195,763	$ -
VIP Freedom Lifetime Income II	7,840	472,634	-
VIP Freedom Lifetime Income III	-	292,410	-

The tax character of distributions paid was as follows:

December 31, 2007	Ordinary Income	Long-term Capital Gains	Total
VIP Freedom Lifetime Income I	$ 489,482	$ 200,508	$ 689,990
VIP Freedom Lifetime Income II	863,486	512,665	1,376,151
VIP Freedom Lifetime Income III	447,079	334,850	781,929
December 31, 2006	Ordinary Income	Long-term Capital Gains	Total
VIP Freedom Lifetime Income I	$ 171,359	$ 36,076	$ 207,435
VIP Freedom Lifetime Income II	223,622	59,632	283,254
VIP Freedom Lifetime Income III	127,078	67,277	194,355

3. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits certain Funds and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. Certain Funds may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. Each applicable Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

4. 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	4,227,483	1,883,627
VIP Freedom Lifetime Income II	8,858,680	3,592,975
VIP Freedom Lifetime Income III	3,255,319	1,093,562

Annual Report

Notes to Financial Statements - continued

5. Fees and Other Transactions with Affiliates.

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.

6. 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	0%	$ 39
VIP Freedom Lifetime Income II	0%	$ 69
VIP Freedom Lifetime Income III	0%	$ 35

7. Other.

At the end of the period, FMR or its affiliates were owners of record of all of the outstanding shares of the Funds.

VIP Lifetime Income Funds Portfolio

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund V and the Shareholders of VIP Freedom Lifetime Income I Portfolio, VIP Freedom Lifetime Income II Portfolio, VIP Freedom Lifetime Income III Portfolio

We have audited the accompanying statements of assets and liabilities of VIP Freedom Lifetime Income I Portfolio, VIP Freedom Lifetime Income II Portfolio and VIP Freedom Lifetime Income III Portfolio (the Funds), each a fund of Variable Insurance Products Fund V (formerly of Variable Insurance Products IV), including the schedules of investments, as of December 31, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the two years in the period then ended and the period July 26, 2005 (commencement of operations) to December 31, 2005. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodians. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of VIP Freedom Lifetime Income I Portfolio, VIP Freedom Lifetime Income II Portfolio, VIP Freedom Lifetime Income III Portfolio as of December 31, 2007, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the two years in the period then ended and the period July 26, 2005 (commencement of operations) to December 31, 2005, in conformity with accounting principles generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

DELOITTE & TOUCHE LLP

Boston, Massachusetts

February 28, 2008

Annual Report

Trustees and Officers

The Trustees, Members of the Advisory Board, and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each VIP Freedom Lifetime Income Fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each VIP Freedom Lifetime Income Fund's activities, review contractual arrangements with companies that provide services to each VIP Freedom Lifetime Income Fund, and review each VIP Freedom Lifetime Income Fund's performance. If the interests of a VIP Freedom Lifetime Income Fund and an underlying Fidelity fund were to diverge, a conflict of interest could arise and affect how the Trustees and Members of the Advisory Board fulfill their fiduciary duties to the affected funds. Strategic Advisers has structured the VIP Freedom Lifetime Income Fund to avoid these potential conflicts, although there may be situations where a conflict of interest is unavoidable. In such instances, Strategic Advisers, the Trustees, and Members of the Advisory Board would take reasonable steps to minimize and, if possible, eliminate the conflict. Except for James C. Curvey, each of the Trustees oversees 373 funds advised by FMR or an affiliate. Mr. Curvey oversees 368 funds advised by FMR or an affiliate.

The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1989 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2007 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2007 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2007 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2007 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund V. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Ren Y. Cheng (50)
	Year of Election or Appointment: 2007 Vice President of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Cheng also serves as Vice President of certain Asset Allocation Funds (2007-present). Mr. Cheng is Chief Investment Officer of the Global Asset Allocation group (2007-present). Mr. Cheng also serves as Vice President of FMR and FMR Co., Inc. Mr. Cheng served as Managing Director of the Global Asset Allocation group (2005-2007). Previously, Mr. Cheng served as a portfolio manager for the Fidelity Freedom Funds.
Boyce I. Greer (51)
	Year of Election or Appointment: 2006 Vice President of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Greer also serves as Vice President of certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). Mr. Greer is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as Vice President of certain Fidelity Equity Funds (2005-2007), a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. Mr. Greer also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002).
Eric D. Roiter (59)
	Year of Election or Appointment: 2005 Secretary of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2005 Chief Compliance Officer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment:2005 Deputy Treasurer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Freedom Lifetime Income I, VIP Freedom Lifetime Income II, and VIP Freedom Lifetime Income III. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

Fund	Pay Date	Record Date	Capital Gains
VIP Freedom Lifetime Income I	02/15/08	02/15/08	$0.19
VIP Freedom Lifetime Income II	02/15/08	02/15/08	$0.25
VIP Freedom Lifetime Income III	02/15/08	02/15/08	$0.32

The funds hereby designate as capital gain dividends the amounts noted below for the taxable year ended December 31, 2007, or, if subsequently determined to be different, the net capital gain of such year.

Fund
VIP Freedom Lifetime Income I	$316,482
VIP Freedom Lifetime Income II	$785,785
VIP Freedom Lifetime Income III	$494,555

A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividends-received deduction for corporate shareholders:

Fund
VIP Freedom Lifetime Income I
February, 2007	0%
December, 2007	10%
VIP Freedom Lifetime Income II
February, 2007	7%
December, 2007	14%
VIP Freedom Lifetime Income III
February, 2007	5%
December, 2007	11%

The funds will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

VIP Lifetime Income Funds Portfolio

Board Approval of Investment Advisory Contracts and Management Fees

VIP Freedom Lifetime Income Funds

The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Equity Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.

Investment Performance and Compliance. The Board considered whether each fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed each fund's absolute investment performance, as well as each fund's relative investment performance measured against a proprietary custom index. The Board noted that FMR does not believe that a meaningful peer group exists against which to compare any of the funds' performance. Because each fund had been in existence less than three calendar years, for each fund the following chart considered by the Board shows, for the one-year period ended December 31, 2006, the fund's total return and the total return of a proprietary custom index ("benchmark"). For each fund, the proprietary custom index is an index developed by FMR that represents the performance of the fund's asset classes according to their respective weightings, adjusted on June 30 and December 31 of each calendar year to reflect the fund's increasingly conservative asset allocations.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Freedom Lifetime Income I Portfolio

The Board stated that the relative investment performance of the fund was lower than its benchmark for the period shown. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.

VIP Freedom Lifetime Income II Portfolio

VIP Lifetime Income Funds Portfolio

VIP Freedom Lifetime Income III Portfolio

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Freedom Lifetime Income I Portfolio

VIP Freedom Lifetime Income II Portfolio

VIP Lifetime Income Funds Portfolio

VIP Freedom Lifetime Income III Portfolio

The Board noted that each fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

In its review of each fund's total expenses, the Board noted that each fund invests in Investor Class of the underlying fund to avoid charging fund-paid 12b-1 fees at both fund levels. The Board considered that the funds do not pay transfer agency fees. Instead, Investor Class of each underlying fund bears its pro rata portion of each fund's transfer agency fee according to the percentage of each fund's assets invested in that underlying fund. The Board further noted that FMR pays all other expenses of each fund, with limited exceptions.

The Board noted that each fund's total expenses ranked below its competitive median for 2006.

Based on its review, the Board concluded that each fund's management fee and total expenses were fair and reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds, as well as the profitability of each underlying fund.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Lifetime Income Funds Portfolio

Annual Report

VIP Lifetime Income Funds Portfolio

Annual 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

Mellon Bank, N.A.
Pittsburgh, PA

VIPFLI-ANN-0208
1.816199.102

Fidelity® Variable Insurance Products:
FundsManager - 20%, 50%, 60%, 70%, 85% Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
FundsManager 20% Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
FundsManager 50% Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
FundsManager 60% Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
FundsManager 70% Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
FundsManager 85% Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

VIP FundsManager Portfolio

VIP FundsManager 20% Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund ^A
VIP FundsManager 20% - Investor Class	6.12%	6.70%
VIP FundsManager 20% - Service Class ^B	6.12%	6.70%
VIP FundsManager 20% - Service Class 2 ^C	5.96%	6.54%

^AFrom April 13, 2006.

^B Performance for Service Class shares reflects an asset-based service fee (12b-1 fee).

^C Performance for Service Class 2 shares reflects an asset-based service fee (12b-1 fee).

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP FundsManager 20% Portfolio-Investor Class on April 13, 2006, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Lehman Brothers® U.S. Aggregate Index performed over the same period.

Annual Report

VIP FundsManager 50% Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund ^A
VIP FundsManager 50% - Investor Class	6.99%	8.37%
VIP FundsManager 50% - Service Class ^B	6.99%	8.37%
VIP FundsManager 50% - Service Class 2 ^C	6.93%	8.21%

^AFrom April 13, 2006.

^B Performance for Service Class shares reflects an asset-based service fee (12b-1 fee).

^C Performance for Service Class 2 shares reflects an asset-based service fee (12b-1 fee).

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP FundsManager 50% Portfolio-Investor Class on April 13, 2006, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

VIP FundsManager Portfolio

VIP FundsManager 70% Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund ^A
VIP FundsManager 70% - Investor Class	7.80%	9.58%
VIP FundsManager 70% - Service Class ^B	7.80%	9.58%
VIP FundsManager 70% - Service Class 2 ^C	7.63%	9.42%

^AFrom April 13, 2006.

^B Performance for Service Class shares reflects an asset-based service fee (12b-1 fee).

^C Performance for Service Class 2 shares reflects an asset-based service fee (12b-1 fee).

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP FundsManager 70% Portfolio-Investor Class on April 13, 2006, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.

Annual Report

VIP FundsManager 85% Portfolio

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of Fund ^A
VIP FundsManager 85% - Investor Class	8.63%	10.39%
VIP FundsManager 85% - Service Class ^B	8.52%	10.33%
VIP FundsManager 85% - Service Class 2 ^C	8.36%	10.17%

^AFrom April 13, 2006.

^B Performance for Service Class shares reflects an asset-based service fee (12b-1 fee).

^C Performance for Service Class 2 shares reflects an asset-based service fee (12b-1 fee).

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP FundsManager 85% Portfolio-Investor Class on April 13, 2006, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the S&P 500 Index performed over the same period.

VIP FundsManager Portfolio

Management's Discussion of Fund Performance

Comments from Scott Kuldell, Portfolio Manager of VIP FundsManager Portfolios

For the year ending December 31, 2007, all but one of the VIP FundsManager Portfolios exceeded their composite benchmarks; the 20% Portfolio trailed its index slightly. (For specific portfolio performance results, please refer to the performance section of this report.) The 60% Portfolio, which launched on August 22, 2007, solidly outperformed its benchmark during this abbreviated period. Across the portfolios, greater equity exposure resulted in higher absolute returns and also greater outperformance relative to the benchmarks. Many Fidelity domestic equity fund managers beat their benchmarks in 2007. As a result, a broad range of domestic equity funds contributed to results. Several international equity funds also helped returns. As for the 20% Portfolio, Fidelity® U.S. Bond Index Fund was a significant drag on results because of its exposure to Fidelity Ultra-Short Central Fund - a diversified pool of short-term assets - which suffered from exposure to subprime mortgage bonds. Fidelity U.S. Bond Index Fund detracted from the fixed-income return in all the portfolios, but, because the 20% Portfolio had the greatest exposure to this fund, it experienced the greatest impact.

Annual Report

Shareholder Expense Example

The actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007), except for VIP FundsManager 60% Portfolio. The actual Expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 22, 2007 to December 31, 2007). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period July 1, 2007 to December 31, 2007
VIP FundsManager 20% Portfolio
Service Class
Actual	$ 1,000.00	$ 1,024.40	$ 1.02^C
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C
Service Class 2
Actual	$ 1,000.00	$ 1,023.80	$ 1.79^C
Hypothetical^A	$ 1,000.00	$ 1,023.44	$ 1.79^C
Investor Class
Actual	$ 1,000.00	$ 1,024.40	$ 1.02^C
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C
VIP FundsManager 50% Portfolio
Service Class
Actual	$ 1,000.00	$ 1,011.60	$ 1.01^C
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C
Service Class 2
Actual	$ 1,000.00	$ 1,011.00	$ 1.77^C
Hypothetical^A	$ 1,000.00	$ 1,023.44	$ 1.79^C
Investor Class
Actual	$ 1,000.00	$ 1,011.60	$ 1.01^C
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C
	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period July 1, 2007 to December 31, 2007
VIP FundsManager 60% Portfolio
Service Class
Actual	$ 1,000.00	$ 1,040.70	$ .74^B
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C
Service Class 2
Actual	$ 1,000.00	$ 1,040.10	$ 1.29^B
Hypothetical^A	$ 1,000.00	$ 1,023.44	$ 1.79^C
Investor Class
Actual	$ 1,000.00	$ 1,040.70	$ .74^B
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C
VIP FundsManager 70% Portfolio
Service Class
Actual	$ 1,000.00	$ 1,001.90	$ 1.01^C
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C
Service Class 2
Actual	$ 1,000.00	$ 1,001.30	$ 1.77^C
Hypothetical^A	$ 1,000.00	$ 1,023.44	$ 1.79^C
Investor Class
Actual	$ 1,000.00	$ 1,001.90	$ 1.01^C
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C
VIP FundsManager 85% Portfolio
Service Class
Actual	$ 1,000.00	$ 997.10	$ 1.01^C
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C
Service Class 2
Actual	$ 1,000.00	$ 996.50	$ 1.76^C
Hypothetical^A	$ 1,000.00	$ 1,023.44	$ 1.79^C
Investor Class
Actual	$ 1,000.00	$ 998.00	$ 1.01^C
Hypothetical^A	$ 1,000.00	$ 1,024.20	$ 1.02^C

^A 5% return per year before expenses.

^B Actual expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 132/365 (to reflect the period August 22, 2007 to December 31, 2007.)

^C Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

The fees and expenses of the underlying Fidelity Funds in which each Fund invests are not included in each class' annualized expense ratio.

	Annualized Expense Ratio
VIP FundsManager 20% Portfolio
Service Class	.20%
Service Class 2	.35%
Investor Class	.20%
VIP FundsManager 50% Portfolio
Service Class	.20%
Service Class 2	.35%
Investor Class	.20%
VIP FundsManager 60% Portfolio
Service Class	.20%
Service Class 2	.35%
Investor Class	.20%
VIP FundsManager 70% Portfolio
Service Class	.20%
Service Class 2	.35%
Investor Class	.20%
VIP FundsManager 85% Portfolio
Service Class	.20%
Service Class 2	.35%
Investor Class	.20%

Annual Report

VIP FundsManager 20% Portfolio

Investment Summary

Fund Holdings as of December 31, 2007
	% of fund's investments
Domestic Equity Funds
Fidelity 100 Index Fund	1.0
Fidelity Contrafund	1.7
Fidelity Equity-Income II Fund	0.5
Fidelity Fund	3.4
Fidelity Growth Company Fund	0.1
Fidelity Large Cap Stock Fund	1.5
Fidelity Leveraged Company Stock Fund	2.1
Fidelity Mid-Cap Stock Fund	0.1
Fidelity New Millennium Fund	1.9
Fidelity Real Estate Investment Portfolio	0.2
Fidelity Small Cap Growth Fund	0.2
Fidelity Small Cap Stock Fund	0.1
Fidelity Small Cap Value Fund	0.1
Fidelity Stock Selector Fund	2.3
Fidelity Value Discovery Fund	0.2
VIP Growth & Income Portfolio Investor Class	1.8
VIP Growth Portfolio Investor Class	1.3
	18.5
International Equity Funds
Fidelity International Discovery Fund	0.7
Fidelity International Real Estate Fund	0.7
Fidelity Overseas Fund	0.7
	2.1
Fixed-Income Funds
Fidelity Capital & Income Fund	4.0
Fidelity Floating Rate High Income Fund	2.0
Fidelity New Markets Income Fund	3.0
Fidelity U.S. Bond Index Fund	42.0
	51.0
Money Market Funds
Fidelity Institutional Prime Money Market Portfolio Class I	28.4
	100.0

Asset Allocation (% of fund's investments)
As of December 31, 2007
	Domestic Equity Funds	18.5%
	International Equity Funds	2.1%
	Fixed Income Funds	51.0%
	Money Market Funds	28.4%

As of June 30, 2007
	Domestic Equity Funds	18.4%
	International Equity Funds	2.2%
	Fixed Income Funds	50.8%
	Money Market Funds	28.6%

VIP FundsManager Portfolio

VIP FundsManager 20% Portfolio

Investments December 31, 2007

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 20.6%
	Shares		Value
Domestic Equity Funds - 18.5%
Fidelity 100 Index Fund	107,581		$ 1,140,358
Fidelity Contrafund	27,705		2,025,529
Fidelity Equity-Income II Fund	24,824		570,452
Fidelity Fund	99,249		3,955,061
Fidelity Growth Company Fund	1,385		114,944
Fidelity Large Cap Stock Fund	87,368		1,688,828
Fidelity Leveraged Company Stock Fund	76,102		2,460,363
Fidelity Mid-Cap Stock Fund	3,967		115,992
Fidelity New Millennium Fund	73,455		2,188,227
Fidelity Real Estate Investment Portfolio	10,715		278,370
Fidelity Small Cap Growth Fund	11,502		181,503
Fidelity Small Cap Stock Fund	6,575		114,600
Fidelity Small Cap Value Fund	7,656		104,117
Fidelity Stock Selector Fund	91,069		2,686,534
Fidelity Value Discovery Fund	12,774		229,174
VIP Growth & Income Portfolio Investor Class	121,904		2,067,498
VIP Growth Portfolio Investor Class	33,378		1,502,007
TOTAL DOMESTIC EQUITY FUNDS			21,423,557
International Equity Funds - 2.1%
Fidelity International Discovery Fund	20,126		867,017
Fidelity International Real Estate Fund	63,493		850,809
Fidelity Overseas Fund	17,893		865,842
TOTAL INTERNATIONAL EQUITY FUNDS			2,583,668
TOTAL EQUITY FUNDS (Cost $25,324,991)		24,007,225
Fixed-Income Funds - 51.0%

Fidelity Capital & Income Fund	535,399		4,647,267
Fidelity Floating Rate High Income Fund	243,279		2,328,176
Fidelity New Markets Income Fund	237,593		3,487,871
Fidelity U.S. Bond Index Fund	4,477,801		48,763,256
TOTAL FIXED-INCOME FUNDS (Cost $58,948,400)		59,226,570
Money Market Funds - 28.4%

Fidelity Institutional Prime Money Market Portfolio Class I (Cost $32,971,194)	32,971,194		32,971,194
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $117,244,585)		$ 116,204,989

See accompanying notes which are an integral part of the financial statements.

Annual Report

VIP FundsManager 20% Portfolio

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007
Assets
Investment in securities, at value (cost $117,244,585) - See accompanying schedule		$ 116,204,989
Receivable for fund shares sold		308,349
Total assets		116,513,338

Liabilities
Payable for investments purchased	$ 307,986
Payable for fund shares redeemed	347
Accrued management fee	18,836
Distribution fees payable	14
Total liabilities		327,183

Net Assets		$ 116,186,155
Net Assets consist of:
Paid in capital		$ 116,822,530
Accumulated undistributed net realized gain (loss) on investments		403,221
Net unrealized appreciation (depreciation) on investments		(1,039,596)
Net Assets		$ 116,186,155

Statement of Assets and Liabilities - continued

	December 31, 2007
Service Class: Net Asset Value, offering price and redemption price per share ($111,799 ÷ 10,667 shares)		$ 10.48

Service Class 2: Net Asset Value, offering price and redemption price per share ($111,512 ÷ 10,641 shares)		$ 10.48

Investor Class: Net Asset Value, offering price and redemption price per share ($115,962,844 ÷ 11,069,590 shares)		$ 10.48

See accompanying notes which are an integral part of the financial statements.

VIP FundsManager Portfolio

Statement of Operations

	Year ended December 31, 2007
Investment Income
Income distributions from underlying funds		$ 3,138,167
Interest		277
Total income		3,138,444

Expenses
Management fee	$ 177,146
Distribution fees	380
Independent trustees' compensation	222
Total expenses before reductions	177,748
Expense reductions	(36,170)	141,578
Net investment income (loss)		2,996,866
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	933,405
Capital gain distributions from underlying funds	1,112,171	2,045,576
Change in net unrealized appreciation (depreciation) on underlying funds		(1,206,656)
Net gain (loss)		838,920
Net increase (decrease) in net assets resulting from operations		$ 3,835,786

Statement of Changes in Net Assets

	Year ended December 31, 2007	For the period April 13, 2006 (Commencement of Operations) to December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 2,996,866	$ 327,696
Net realized gain (loss)	2,045,576	255,502
Change in net unrealized appreciation (depreciation)	(1,206,656)	167,060
Net increase (decrease) in net assets resulting from operations	3,835,786	750,258
Distributions to shareholders from net investment income	(3,045,063)	(329,928)
Distributions to shareholders from net realized gain	(1,732,833)	(114,596)
Total distributions	(4,777,896)	(444,524)
Share transactions - net increase (decrease)	92,872,808	23,949,723
Total increase (decrease) in net assets	91,930,698	24,255,457

Net Assets
Beginning of period	24,255,457	-
End of period	$ 116,186,155	$ 24,255,457

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class

Years ended December 31,	2007	2006 ^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.34	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.45	.33
Net realized and unrealized gain (loss)	.18	.20
Total from investment operations	.63	.53
Distributions from net investment income	(.29)	(.14)
Distributions from net realized gain	(.20)	(.05)
Total distributions	(.49)	(.19)
Net asset value, end of period	$ 10.48	$ 10.34
Total Return^B,C,D	6.12%	5.34%
Ratios to Average Net Assets^F,H
Expenses before reductions	.35%	.35% ^A
Expenses net of fee waivers, if any	.20%	.20% ^A
Expenses net of all reductions	.20%	.20% ^A
Net investment income (loss)	4.20%	4.52% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 112	$ 105
Portfolio turnover rate	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 expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. 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

Years ended December 31,	2007	2006 ^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.34	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.43	.32
Net realized and unrealized gain (loss)	.18	.20
Total from investment operations	.61	.52
Distributions from net investment income	(.27)	(.13)
Distributions from net realized gain	(.20)	(.05)
Total distributions	(.47)	(.18)
Net asset value, end of period	$ 10.48	$ 10.34
Total Return^B,C,D	5.96%	5.23%
Ratios to Average Net Assets^F,H
Expenses before reductions	.50%	.50% ^A
Expenses net of fee waivers, if any	.35%	.35% ^A
Expenses net of all reductions	.35%	.35% ^A
Net investment income (loss)	4.05%	4.38% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 112	$ 105
Portfolio turnover rate	76%	92% ^A