N-CSRS 1 main.htm

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 811-3329

Variable Insurance Products Fund
(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:	June 30, 2003

Equity-Income Portfolio, Growth Portfolio and Value Portfolio, funds of Variable Insurance Products Fund, have also been included in N-CSR filings dated August 25, 2003.

Item 1. Reports to Stockholders

Fidelity® Variable Insurance Products:

Equity-Income Portfolio

Semiannual Report

June 30, 2003

(2_fidelity_logos) (Registered_Trademark)

Investment Summary	<Click Here>	A summary of the fund's investments at period end.
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.

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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 Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

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.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC, Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Citigroup, Inc.	3.1
Exxon Mobil Corp.	3.0
Fannie Mae	2.5
Bank of America Corp.	2.4
Total SA	2.2
	13.2
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	29.0
Consumer Discretionary	12.4
Industrials	11.8
Energy	11.4
Health Care	7.7

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks	97.7%
	Bonds	1.5%
	Short-Term Investments and Net Other Assets	0.8%

* Foreign investments

9.7%

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 96.3%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 11.6%
Automobiles - 0.3%
General Motors Corp.	628,100		$ 22,611,600
Hotels, Restaurants & Leisure - 1.7%
Hilton Hotels Corp.	366,700		4,690,093
Mandalay Resort Group	314,500		10,016,825
McDonald's Corp.	2,636,000		58,150,160
MGM MIRAGE (a)	1,243,570		42,505,223
Park Place Entertainment Corp. (a)	2,509,000		22,806,810
Six Flags, Inc. (a)	1,408,356		9,548,654
			147,717,765
Household Durables - 1.3%
Black & Decker Corp.	595,500		25,874,475
Fortune Brands, Inc.	84,200		4,395,240
Maytag Corp.	829,320		20,251,994
Newell Rubbermaid, Inc.	1,000,400		28,011,200
Snap-On, Inc.	366,300		10,633,689
Whirlpool Corp.	377,700		24,059,490
			113,226,088
Media - 5.3%
AOL Time Warner, Inc. (a)	7,015,850		112,885,027
Clear Channel Communications, Inc. (a)	1,358,300		57,578,337
Comcast Corp. Class A (a)	2,852,091		86,076,106
Liberty Media Corp. Class A (a)	2,193,776		25,360,051
News Corp. Ltd.:
ADR	234,034		7,084,209
sponsored ADR	303,867		7,602,752
Reader's Digest Association, Inc. (non-vtg.)	1,243,903		16,767,812
Viacom, Inc. Class B (non-vtg.) (a)	2,413,218		105,361,098
Vivendi Universal SA sponsored ADR	717,200		13,225,168
Walt Disney Co.	1,532,100		30,258,975
			462,199,535
Multiline Retail - 0.9%
Big Lots, Inc. (a)	1,028,756		15,472,494
Federated Department Stores, Inc.	749,900		27,633,815
Target Corp.	862,300		32,629,432
			75,735,741
Specialty Retail - 2.0%
Charming Shoppes, Inc. (a)	1,290,400		6,413,288
Gap, Inc.	2,073,900		38,906,364
Home Depot, Inc.	589,900		19,537,488
Limited Brands, Inc.	2,528,000		39,184,000
Office Depot, Inc. (a)	1,235,500		17,927,105
RadioShack Corp.	1,296,800		34,118,808
Staples, Inc. (a)	1,198,562		21,993,613
			178,080,666

	Shares		Value (Note 1)
Textiles Apparel & Luxury Goods - 0.1%
Jones Apparel Group, Inc. (a)	422,100		$ 12,350,646
TOTAL CONSUMER DISCRETIONARY			1,011,922,041
CONSUMER STAPLES - 6.0%
Beverages - 0.4%
The Coca-Cola Co.	746,100		34,626,501
Food & Staples Retailing - 0.9%
Albertson's, Inc.	1,092,200		20,970,240
CVS Corp.	2,041,100		57,212,033
			78,182,273
Food Products - 1.0%
Fresh Del Monte Produce, Inc.	544,388		13,985,328
Kraft Foods, Inc. Class A	752,900		24,506,895
Tyson Foods, Inc. Class A	1,161,000		12,329,820
Unilever PLC sponsored ADR	1,116,200		35,830,020
			86,652,063
Household Products - 1.4%
Colgate-Palmolive Co.	466,300		27,022,085
Kimberly-Clark Corp.	1,273,400		66,395,076
Procter & Gamble Co.	319,400		28,484,092
The Dial Corp.	236,600		4,601,870
			126,503,123
Personal Products - 1.2%
Gillette Co.	3,227,920		102,841,531
Tobacco - 1.1%
Altria Group, Inc.	1,980,200		89,980,288
Loews Corp. - Carolina Group	215,200		5,810,400
			95,790,688
TOTAL CONSUMER STAPLES			524,596,179
ENERGY - 11.4%
Energy Equipment & Services - 2.5%
Baker Hughes, Inc.	1,593,600		53,497,152
BJ Services Co. (a)	520,145		19,432,617
Noble Corp. (a)	511,800		17,554,740
Schlumberger Ltd. (NY Shares)	2,713,900		129,100,223
			219,584,732
Oil & Gas - 8.9%
Anadarko Petroleum Corp.	263,400		11,713,398
Apache Corp.	345,240		22,461,314
BP PLC sponsored ADR	2,530,242		106,320,769
ChevronTexaco Corp.	882,171		63,692,746
ConocoPhillips	553,070		30,308,236
Exxon Mobil Corp.	7,261,536		260,761,758
Royal Dutch Petroleum Co. (NY Shares)	1,910,300		89,058,186
Common Stocks - continued
	Shares		Value (Note 1)
ENERGY - continued
Oil & Gas - continued
Total SA:
Series B	391,400		$ 59,336,241
sponsored ADR	1,724,096		130,686,477
			774,339,125
TOTAL ENERGY			993,923,857
FINANCIALS - 28.3%
Capital Markets - 6.2%
Bank of New York Co., Inc.	3,033,500		87,213,125
Charles Schwab Corp.	3,853,600		38,882,824
Credit Suisse Group sponsored ADR	735,200		19,350,464
J.P. Morgan Chase & Co.	3,733,850		127,622,993
Janus Capital Group, Inc.	780,400		12,798,560
Lehman Brothers Holdings, Inc.	380,500		25,295,640
Mellon Financial Corp.	1,716,500		47,632,875
Merrill Lynch & Co., Inc.	1,658,000		77,395,440
Morgan Stanley	1,890,800		80,831,700
Nomura Holdings, Inc.	1,853,000		23,594,052
			540,617,673
Commercial Banks - 8.2%
Bank of America Corp.	2,639,390		208,590,992
Bank One Corp.	2,487,438		92,482,945
Comerica, Inc.	926,900		43,100,850
FleetBoston Financial Corp.	1,850,700		54,984,297
Huntington Bancshares, Inc.	510,200		9,959,104
PNC Financial Services Group, Inc.	617,200		30,125,532
State Bank of India	463,175		3,834,342
U.S. Bancorp, Delaware	2,893,738		70,896,581
Wachovia Corp.	2,033,475		81,257,661
Wells Fargo & Co.	2,278,400		114,831,360
			710,063,664
Consumer Finance - 1.4%
American Express Co.	2,231,496		93,298,848
MBNA Corp.	1,456,400		30,351,376
			123,650,224
Diversified Financial Services - 3.5%
CIT Group, Inc.	1,371,500		33,807,475
Citigroup, Inc.	6,271,419		268,416,726
			302,224,201
Insurance - 5.7%
ACE Ltd.	1,631,815		55,954,936
Allianz AG sponsored ADR	567,200		4,690,744
Allstate Corp.	1,459,600		52,034,740
American International Group, Inc.	3,301,250		182,162,975
Hartford Financial Services Group, Inc.	1,334,400		67,200,384
Lincoln National Corp.	95,000		3,384,850
Marsh & McLennan Companies, Inc.	364,500		18,615,015
MBIA, Inc.	241,300		11,763,375
The Chubb Corp.	634,000		38,040,000

	Shares		Value (Note 1)
Travelers Property Casualty Corp.:
Class A	2,327,467		$ 37,006,725
Class B	622,257		9,812,993
UnumProvident Corp.	1,270,300		17,034,723
			497,701,460
Real Estate - 0.4%
Equity Office Properties Trust	317,100		8,564,871
Equity Residential (SBI)	1,127,400		29,256,030
			37,820,901
Thrifts & Mortgage Finance - 2.9%
Fannie Mae	3,241,000		218,573,040
Freddie Mac	717,900		36,447,783
			255,020,823
TOTAL FINANCIALS			2,467,098,946
HEALTH CARE - 7.6%
Health Care Equipment & Supplies - 0.8%
Baxter International, Inc.	1,570,900		40,843,400
Becton, Dickinson & Co.	611,100		23,741,235
			64,584,635
Health Care Providers & Services - 1.2%
HCA, Inc.	913,100		29,255,724
IMS Health, Inc.	1,455,099		26,177,231
McKesson Corp.	1,015,700		36,301,118
Tenet Healthcare Corp. (a)	1,266,700		14,757,055
			106,491,128
Pharmaceuticals - 5.6%
Abbott Laboratories	857,000		37,502,320
Bristol-Myers Squibb Co.	3,292,400		89,388,660
Eli Lilly & Co.	338,800		23,367,036
Johnson & Johnson	1,137,600		58,813,920
Merck & Co., Inc.	2,458,700		148,874,285
Pfizer, Inc.	959,100		32,753,265
Roche Holding AG (participation certificate)	105,300		8,280,140
Schering-Plough Corp.	2,190,730		40,747,578
Wyeth	1,107,200		50,432,960
			490,160,164
TOTAL HEALTH CARE			661,235,927
INDUSTRIALS - 11.7%
Aerospace & Defense - 2.6%
Boeing Co.	997,800		34,244,496
Bombardier, Inc. Class B (sub. vtg.)	1,053,500		3,572,114
Honeywell International, Inc.	3,013,825		80,921,201
Lockheed Martin Corp.	546,500		25,997,005
Northrop Grumman Corp.	451,500		38,959,935
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Aerospace & Defense - continued
Raytheon Co.	586,400		$ 19,257,376
United Technologies Corp.	379,520		26,881,402
			229,833,529
Building Products - 0.5%
Masco Corp.	2,041,200		48,682,620
Commercial Services & Supplies - 0.6%
Viad Corp.	1,061,700		23,771,463
Waste Management, Inc.	1,286,100		30,982,149
			54,753,612
Electrical Equipment - 0.4%
Emerson Electric Co.	421,400		21,533,540
Rockwell Automation, Inc.	498,300		11,879,472
			33,413,012
Industrial Conglomerates - 3.2%
3M Co.	171,200		22,081,376
General Electric Co.	3,538,440		101,482,459
Hutchison Whampoa Ltd.	2,171,000		13,223,715
Siemens AG sponsored ADR	412,500		20,150,625
Textron, Inc.	879,800		34,329,796
Tyco International Ltd.	4,439,946		84,270,175
			275,538,146
Machinery - 3.1%
Caterpillar, Inc.	968,200		53,890,012
Cummins, Inc.	126,500		4,540,085
Deere & Co.	435,050		19,881,785
Eaton Corp.	434,800		34,179,628
Illinois Tool Works, Inc.	353,600		23,284,560
Ingersoll-Rand Co. Ltd. Class A	1,467,444		69,439,450
Kennametal, Inc.	230,039		7,784,520
Navistar International Corp. (a)	265,900		8,676,317
Parker Hannifin Corp.	610,500		25,634,895
SPX Corp. (a)	337,400		14,865,844
Timken Co.	400,600		7,014,506
			269,191,602
Road & Rail - 1.3%
Burlington Northern Santa Fe Corp.	2,245,600		63,864,864
Union Pacific Corp.	807,900		46,874,358
			110,739,222
TOTAL INDUSTRIALS			1,022,151,743
INFORMATION TECHNOLOGY - 5.9%
Communications Equipment - 0.3%
Motorola, Inc.	2,536,200		23,916,366
Computers & Peripherals - 1.6%
Hewlett-Packard Co.	3,622,911		77,168,004

	Shares		Value (Note 1)
International Business Machines Corp.	640,900		$ 52,874,250
Sun Microsystems, Inc. (a)	2,455,800		11,296,680
			141,338,934
Electronic Equipment & Instruments - 1.7%
Agilent Technologies, Inc. (a)	945,300		18,480,615
Arrow Electronics, Inc. (a)	799,100		12,178,284
Avnet, Inc. (a)	1,317,330		16,703,744
PerkinElmer, Inc.	2,206,000		30,464,860
Sanmina-SCI Corp. (a)	1,101,200		6,948,572
Tektronix, Inc. (a)	1,310,800		28,313,280
Thermo Electron Corp. (a)	1,539,600		32,362,392
			145,451,747
IT Services - 0.5%
Ceridian Corp. (a)	1,582,200		26,849,934
Electronic Data Systems Corp.	416,800		8,940,360
First Data Corp.	252,700		10,471,888
			46,262,182
Semiconductors & Semiconductor Equipment - 1.0%
Intel Corp.	2,173,600		45,176,102
Micron Technology, Inc. (a)	1,484,400		17,263,572
National Semiconductor Corp. (a)	440,975		8,696,027
Rohm Co. Ltd.	63,100		6,900,986
Teradyne, Inc. (a)	421,971		7,304,318
			85,341,005
Software - 0.8%
Microsoft Corp.	2,642,800		67,682,108
TOTAL INFORMATION TECHNOLOGY			509,992,342
MATERIALS - 6.4%
Chemicals - 2.6%
Arch Chemicals, Inc.	442,400		8,449,840
BOC Group PLC	423,497		5,449,895
Dow Chemical Co.	2,262,600		70,050,096
Hercules Trust II unit	15,700		9,086,375
Hercules, Inc. (a)	649,700		6,432,030
LG Chemical Ltd.	216,900		8,712,300
Lyondell Chemical Co.	1,202,700		16,272,531
Millennium Chemicals, Inc.	853,650		8,118,212
Olin Corp.	572,700		9,793,170
PolyOne Corp.	1,239,100		5,513,995
PPG Industries, Inc.	390,300		19,803,822
Praxair, Inc.	821,212		49,354,841
Solutia, Inc.	2,067,100		4,506,278
			221,543,385
Containers & Packaging - 0.4%
Owens-Illinois, Inc. (a)	349,500		4,812,615
Smurfit-Stone Container Corp. (a)	2,375,253		30,949,547
			35,762,162
Metals & Mining - 2.3%
Alcan, Inc.	955,100		29,769,811
Alcoa, Inc.	3,000,416		76,510,608
Common Stocks - continued
	Shares		Value (Note 1)
MATERIALS - continued
Metals & Mining - continued
Dofasco, Inc.	926,300		$ 17,875,844
Nucor Corp.	283,400		13,844,090
Pechiney SA (a)	706,090		25,414,131
Phelps Dodge Corp. (a)	994,700		38,136,798
			201,551,282
Paper & Forest Products - 1.1%
Bowater, Inc.	474,100		17,755,045
Georgia-Pacific Corp.	1,646,101		31,193,614
International Paper Co.	368,200		13,155,786
Weyerhaeuser Co.	645,900		34,878,600
			96,983,045
TOTAL MATERIALS			555,839,874
TELECOMMUNICATION SERVICES - 4.4%
Diversified Telecommunication Services - 4.4%
BellSouth Corp.	4,818,499		128,316,628
SBC Communications, Inc.	4,711,593		120,381,201
Verizon Communications, Inc.	3,435,902		135,546,334
			384,244,163
UTILITIES - 3.0%
Electric Utilities - 2.5%
Cinergy Corp.	475,200		17,482,608
Dominion Resources, Inc.	584,600		37,572,242
DPL, Inc.	1,010,054		16,100,261
Entergy Corp.	1,008,200		53,212,796
FirstEnergy Corp.	1,020,000		39,219,000
Northeast Utilities	1,648,400		27,594,216
TXU Corp.	1,059,220		23,779,489
			214,960,612
Gas Utilities - 0.1%
NiSource, Inc.	568,730		10,805,870
Multi-Utilities & Unregulated Power - 0.4%
SCANA Corp.	911,600		31,249,648
TOTAL UTILITIES			257,016,130
TOTAL COMMON STOCKS (Cost $7,597,732,395)		8,388,021,202
Preferred Stocks - 1.4%
	Shares		Value (Note 1)
Convertible Preferred Stocks - 1.4%
CONSUMER DISCRETIONARY - 0.2%
Automobiles - 0.1%
General Motors Corp.:
Series B, 5.25%	412,200		$ 9,175,572
Series C, 6.25%	253,100		6,243,977
			15,419,549
Hotels, Restaurants & Leisure - 0.1%
Six Flags, Inc. 7.25% PIERS	388,400		7,612,640
TOTAL CONSUMER DISCRETIONARY			23,032,189
FINANCIALS - 0.5%
Capital Markets - 0.1%
State Street Corp. 6.75%	24,900		5,132,562
Consumer Finance - 0.2%
Ford Motor Co. Capital Trust II 6.5%	461,500		19,983,873
Insurance - 0.2%
Hartford Financial Services Group, Inc. 6%	54,300		2,843,691
The Chubb Corp.:
7%	167,700		4,342,424
Series B, 7%	120,100		3,086,570
Travelers Property Casualty Corp. 4.50%	240,200		5,807,796
			16,080,481
TOTAL FINANCIALS			41,196,916
HEALTH CARE - 0.1%
Health Care Equipment & Supplies - 0.1%
Baxter International, Inc. 7%	156,900		7,688,100
INDUSTRIALS - 0.1%
Aerospace & Defense - 0.1%
Raytheon Co. 8.25%	177,700		10,028,944
INFORMATION TECHNOLOGY - 0.3%
Communications Equipment - 0.2%
Motorola, Inc. 7%	441,100		14,165,485
IT Services - 0.1%
Electronic Data Systems Corp. 7.625% PRIDES	475,600		10,486,980
Office Electronics - 0.0%
Xerox Corp. 6.25%	25,300		2,657,689
TOTAL INFORMATION TECHNOLOGY			27,310,154
Preferred Stocks - continued
	Shares		Value (Note 1)
Convertible Preferred Stocks - continued
UTILITIES - 0.2%
Electric Utilities - 0.2%
Cinergy Corp. 9.5% PRIDES	105,900		$ 6,273,516
TXU Corp. 8.75%	226,400		7,386,300
			13,659,816
Multi-Utilities & Unregulated Power - 0.0%
El Paso Corp. 9%	133,400		4,002,000
TOTAL UTILITIES			17,661,816
TOTAL CONVERTIBLE PREFERRED STOCKS			126,918,119
Nonconvertible Preferred Stocks - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Media - 0.0%
CSC Holdings, Inc.:
Series H, 11.75%	1,110		114,053
Series M, 11.125%	400		40,900
			154,953
TOTAL PREFERRED STOCKS (Cost $157,279,838)		127,073,072
Corporate Bonds - 1.5%
	Principal Amount
Convertible Bonds - 1.0%
CONSUMER DISCRETIONARY - 0.5%
Hotels, Restaurants & Leisure - 0.1%
Royal Caribbean Cruises Ltd. liquid yield option note 0% 2/2/21	$ 15,369,000		6,627,881
Media - 0.4%
Cox Communications, Inc. 0.4259% 4/19/20	26,600,000		13,333,250
Liberty Media Corp.3.5% 1/15/31 (d)	11,400,000		8,550,000
News America, Inc. liquid yield option note 0% 2/28/21 (d)	22,670,000		12,638,525
			34,521,775
Multiline Retail - 0.0%
JCPenney Co., Inc. 5% 10/15/08 (d)	2,670,000		2,588,245
TOTAL CONSUMER DISCRETIONARY			43,737,901
FINANCIALS - 0.1%
Diversified Financial Services - 0.0%
Navistar Financial Corp. 4.75% 4/1/09 (d)	2,760,000		2,612,257
Insurance - 0.1%
Loews Corp. 3.125% 9/15/07	5,340,000		5,019,600
TOTAL FINANCIALS			7,631,857

	Principal Amount		Value (Note 1)
INFORMATION TECHNOLOGY - 0.3%
Communications Equipment - 0.2%
Corning, Inc. 3.5% 11/1/08	$ 13,700,000		$ 14,805,316
Computers & Peripherals - 0.0%
Quantum Corp. 7% 8/1/04	5,350,000		5,376,750
Electronic Equipment & Instruments - 0.1%
Agilent Technologies, Inc. 3% 12/1/21	6,670,000		6,537,667
Celestica, Inc. liquid yield option note 0% 8/1/20	620,000		322,400
			6,860,067
TOTAL INFORMATION TECHNOLOGY			27,042,133
MATERIALS - 0.1%
Metals & Mining - 0.1%
Freeport-McMoRan Copper & Gold, Inc. 8.25% 1/31/06 (d)	4,220,000		7,543,250
TOTAL CONVERTIBLE BONDS			85,955,141
Nonconvertible Bonds - 0.5%
CONSUMER DISCRETIONARY - 0.1%
Auto Components - 0.0%
ArvinMeritor, Inc. 8.75% 3/1/12	35,000		38,850
Dana Corp.:
6.25% 3/1/04	80,000		80,400
6.5% 3/1/09	45,000		43,650
9% 8/15/11	125,000		134,375
Navistar International Corp. 8% 2/1/08	55,000		54,725
Stoneridge, Inc. 11.5% 5/1/12	25,000		28,000
United Components, Inc. 9.375% 6/15/13 (d)	40,000		41,200
			421,200
Hotels, Restaurants & Leisure - 0.0%
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	325,000		297,375
10.5% 7/15/11 (d)	220,000		221,100
Domino's, Inc. 8.25% 7/1/11 (d)	70,000		71,925
Florida Panthers Holdings, Inc. 9.875% 4/15/09	35,000		37,625
Friendly Ice Cream Corp. 10.5% 12/1/07	135,000		138,038
Mohegan Tribal Gaming Authority 8.375% 7/1/11	30,000		32,250
Morton's Restaurant Group, Inc. 7.5% 7/1/10 (d)(e)	40,000		34,600
MTR Gaming Group, Inc. 9.75% 4/1/10 (d)	60,000		62,100
Premier Parks, Inc. 9.75% 6/15/07	65,000		64,675
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	$ 95,000		$ 102,363
Town Sports International, Inc. 9.625% 4/15/11 (d)	70,000		73,325
Tricon Global Restaurants, Inc. 7.65% 5/15/08	65,000		73,450
Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (d)	50,000		52,000
Wheeling Island Gaming, Inc. 10.125% 12/15/09	670,000		664,975
			1,925,801
Household Durables - 0.0%
Beazer Homes USA, Inc. 8.375% 4/15/12	30,000		33,150
D.R. Horton, Inc.:
8% 2/1/09	310,000		342,550
8.5% 4/15/12	30,000		33,600
Juno Lighting, Inc. 11.875% 7/1/09	135,000		145,800
K. Hovnanian Enterprises, Inc. 8.875% 4/1/12	40,000		43,200
Lyon William Homes, Inc. 10.75% 4/1/13	165,000		174,900
Ryland Group, Inc.:
8.25% 4/1/08	65,000		67,600
9.125% 6/15/11	95,000		107,825
Standard Pacific Corp. 7.75% 3/15/13	280,000		296,800
			1,245,425
Leisure Equipment & Products - 0.0%
The Hockey Co. 11.25% 4/15/09	45,000		49,950
Media - 0.1%
AMC Entertainment, Inc.:
9.5% 3/15/09	60,000		61,500
9.875% 2/1/12	60,000		64,200
CBD Media LLC/ CBD Finance, Inc. 8.625% 6/1/11 (d)	30,000		30,825
Comcast UK Cable Partners Ltd. yankee 11.2% 11/15/07	160,000		154,400
Corus Entertainment, Inc. 8.75% 3/1/12	790,000		847,275
CSC Holdings, Inc.:
7.875% 2/15/18	125,000		129,375
9.875% 2/15/13	100,000		103,000
Diamond Holdings PLC yankee 9.125% 2/1/08	80,000		74,000
EchoStar DBS Corp. 10.375% 10/1/07	900,000		996,750
Lamar Media Corp. 7.25% 1/1/13 (d)	110,000		116,050
LBI Media, Inc. 10.125% 7/15/12	925,000		1,017,500
LodgeNet Entertainment Corp. 9.5% 6/15/13	30,000		30,750

	Principal Amount		Value (Note 1)
Nextmedia Operating, Inc. 10.75% 7/1/11	$ 720,000		$ 806,400
PEI Holdings, Inc. 11% 3/15/10 (d)	70,000		77,350
PRIMEDIA, Inc.:
7.625% 4/1/08	25,000		25,375
8.875% 5/15/11	25,000		26,500
Rogers Cablesystems Ltd. yankee 11% 12/1/15	15,000		16,950
Rogers Communications, Inc. yankee 8.875% 7/15/07	65,000		66,950
Shaw Communications, Inc. yankee 7.2% 12/15/11	35,000		37,713
XM Satellite Radio, Inc. 12% 6/15/10 (d)	95,000		94,288
			4,777,151
Multiline Retail - 0.0%
Barneys, Inc. 9% 4/1/08 unit (d)	200,000		180,000
Specialty Retail - 0.0%
Asbury Automotive Group, Inc. 9% 6/15/12	80,000		78,400
Gap, Inc. 10.55% 12/15/08	20,000		24,200
Toys 'R' US, Inc. 7.875% 4/15/13	110,000		117,700
United Auto Group, Inc. 9.625% 3/15/12	295,000		315,650
			535,950
Textiles Apparel & Luxury Goods - 0.0%
Dan River, Inc. 12.75% 4/15/09 (d)	205,000		184,500
Levi Strauss & Co.:
7% 11/1/06	45,000		36,000
11.625% 1/15/08	25,000		21,375
12.25% 12/15/12	40,000		33,200
			275,075
TOTAL CONSUMER DISCRETIONARY			9,410,552
CONSUMER STAPLES - 0.0%
Beverages - 0.0%
Canandaigua Brands, Inc. 8.5% 3/1/09	315,000		331,538
Food & Staples Retailing - 0.0%
Rite Aid Corp.:
6% 12/15/05 (d)	115,000		108,100
6.875% 8/15/13	90,000		77,850
7.625% 4/15/05	25,000		24,875
8.125% 5/1/10 (d)	110,000		114,400
9.5% 2/15/11 (d)	110,000		118,250
The Great Atlantic & Pacific Tea Co.:
7.75% 4/15/07	340,000		317,900
9.125% 12/15/11	115,000		107,525
			868,900
Food Products - 0.0%
Corn Products International, Inc. 8.25% 7/15/07	605,000		677,600
Del Monte Corp. 9.25% 5/15/11	45,000		49,050
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER STAPLES - continued
Food Products - continued
Doane Pet Care Co. 9.75% 5/15/07	$ 205,000		$ 194,750
Dole Food Co., Inc. 7.25% 6/15/10 (d)	100,000		100,750
			1,022,150
Household Products - 0.0%
Fort James Corp. 6.875% 9/15/07	35,000		35,525
Personal Products - 0.0%
Jafra Cosmetics International, Inc./Distribuidora Comercial Jafra SA de CV 10.75% 5/15/11 (d)	60,000		62,400
TOTAL CONSUMER STAPLES			2,320,513
ENERGY - 0.0%
Energy Equipment & Services - 0.0%
Grant Prideco, Inc. 9% 12/15/09	40,000		44,700
Universal Compression, Inc. 7.25% 5/15/10 (d)	320,000		334,400
			379,100
Oil & Gas - 0.0%
Chesapeake Energy Corp. 7.5% 9/15/13 (d)	110,000		117,150
General Maritime Corp. 10% 3/15/13 (d)	210,000		229,950
GulfTerra Energy Partners LP/GulfTerra Energy Finance Corp. 10.625% 12/1/12	50,000		58,000
Houston Exploration Co. 7% 6/15/13 (d)	50,000		51,625
NGC Corp. 6.75% 12/15/05	80,000		75,600
Nuevo Energy Co.:
9.375% 10/1/10	30,000		32,325
9.5% 6/1/08	31,000		32,473
Overseas Shipholding Group, Inc. 8.25% 3/15/13 (d)	205,000		213,200
Plains Exploration & Production Co. LP 8.75% 7/1/12 (d)	80,000		85,600
Tesoro Petroleum Corp. 8% 4/15/08 (d)	40,000		41,000
The Coastal Corp.:
6.375% 2/1/09	10,000		8,750
6.5% 5/15/06	40,000		37,400
6.5% 6/1/08	30,000		26,850
6.95% 6/1/28	65,000		51,675
7.5% 8/15/06	120,000		115,800
7.75% 6/15/10	65,000		60,613
7.75% 10/15/35	40,000		33,600
			1,271,611
TOTAL ENERGY			1,650,711
FINANCIALS - 0.1%
Consumer Finance - 0.0%
AmeriCredit Corp. 9.875% 4/15/06	45,000		42,750

	Principal Amount		Value (Note 1)
Capital One Financial Corp.:
7.25% 12/1/03	$ 40,000		$ 40,800
8.75% 2/1/07	80,000		88,800
			172,350
Diversified Financial Services - 0.1%
Ahold Finance USA, Inc.:
6.25% 5/1/09	100,000		93,000
6.875% 5/1/29	75,000		63,375
8.25% 7/15/10	260,000		262,600
Arch Western Finance LLC 6.75% 7/1/13 (d)	215,000		219,300
BRL Universal Equipment 2001 A LP/BRL Universal Equipment Corp. 8.875% 2/15/08	650,000		702,000
CMS Energy X-TRAS pass thru trust I 7% 1/15/05	40,000		39,700
Continental Airlines, Inc. pass thru trust certificates:
6.748% 9/15/18	11,889		9,036
6.9% 1/2/17	23,773		18,068
7.73% 9/15/12	24,669		18,502
8.321% 11/1/06	10,000		8,400
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	35,000		29,400
7.779% 1/2/12	751,351		601,080
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp. 8.5% 6/1/11	45,000		48,150
FIMEP SA 10.5% 2/15/13 (d)	120,000		134,400
Gemstone Investor Ltd./Gemstone Investor, Inc. 7.71% 10/31/04 (d)	235,000		232,650
Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11 (d)	160,000		156,000
Huntsman Advanced Materials LLC 11% 7/15/10 (d)	60,000		62,400
IOS Capital LLC 7.25% 6/30/08	110,000		108,350
Leucadia National Corp. 7% 8/15/13 (d)	130,000		130,325
Moore North America Finance, Inc. 7.875% 1/15/11 (d)	90,000		94,050
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10 (d)	30,000		30,900
Northern Telecom Capital Corp. 7.875% 6/15/26	75,000		68,250
Northwest Airlines, Inc. pass thru trust certificates:
7.068% 7/2/17	37,818		29,498
7.67% 1/2/15	39,608		32,875
7.691% 4/1/17	126,559		99,981
Qwest Capital Funding, Inc.:
5.875% 8/3/04	220,000		212,300
7% 8/3/09	100,000		82,000
7.25% 2/15/11	115,000		93,150
7.625% 8/3/21	70,000		55,300
7.75% 8/15/06	310,000		288,300
7.75% 2/15/31	120,000		93,600
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
TRW Automotive Acquisition Corp.:
9.375% 2/15/13 (d)	$ 130,000		$ 141,375
11% 2/15/13 (d)	30,000		32,850
U.S. West Capital Funding, Inc. 6.375% 7/15/08	85,000		69,275
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10 (d)	190,000		209,000
Western Financial Bank 9.625% 5/15/12	40,000		43,200
			4,612,640
Insurance - 0.0%
Crum & Forster Holdings Corp. 10.375% 6/15/13 (d)	130,000		131,950
Real Estate - 0.0%
CBRE Escrow, Inc. 9.75% 5/15/10 (d)	265,000		280,900
LNR Property Corp.:
7.625% 7/15/13 (d)	90,000		90,900
9.375% 3/15/08	10,000		10,400
10.5% 1/15/09	40,000		42,400
Senior Housing Properties Trust 7.875% 4/15/15	60,000		61,200
			485,800
TOTAL FINANCIALS			5,402,740
HEALTH CARE - 0.0%
Health Care Providers & Services - 0.0%
AmeriPath, Inc. 10.5% 4/1/13 (d)	100,000		107,000
PacifiCare Health Systems, Inc. 10.75% 6/1/09	620,000		708,350
Psychiatric Solutions, Inc. 10.625% 6/15/13 (d)	40,000		41,100
Rotech Healthcare, Inc. 9.5% 4/1/12	120,000		123,000
Tenet Healthcare Corp.:
6.375% 12/1/11	75,000		69,375
6.5% 6/1/12	10,000		9,250
7.375% 2/1/13	215,000		207,475
			1,265,550
Pharmaceuticals - 0.0%
aaiPharma, Inc. 11% 4/1/10	515,000		566,500
TOTAL HEALTH CARE			1,832,050
INDUSTRIALS - 0.0%
Aerospace & Defense - 0.0%
Aviall, Inc. 7.625% 7/1/11 (d)	110,000		110,550
Esterline Technologies Corp. 7.75% 6/15/13 (d)	30,000		31,050
			141,600
Airlines - 0.0%
Delta Air Lines, Inc. 7.9% 12/15/09	25,000		19,750

	Principal Amount		Value (Note 1)
Northwest Airlines, Inc.:
7.875% 3/15/08	$ 25,000		$ 19,250
9.875% 3/15/07	45,000		35,550
			74,550
Building Products - 0.0%
FastenTech, Inc. 11.5% 5/1/11 (d)	80,000		80,600
Jacuzzi Brands, Inc. 9.625% 7/1/10 (d)(e)	40,000		40,000
Nortek, Inc.:
9.125% 9/1/07	20,000		20,600
9.25% 3/15/07	30,000		30,825
			172,025
Commercial Services & Supplies - 0.0%
Allied Waste North America, Inc.:
7.875% 4/15/13	140,000		146,475
9.25% 9/1/12 (d)	115,000		127,075
10% 8/1/09	15,000		16,013
American Color Graphics, Inc. 10% 6/15/10 (d)(e)	130,000		130,650
Mobile Mini, Inc. 9.5% 7/1/13 (d)	120,000		124,200
National Waterworks, Inc. 10.5% 12/1/12	60,000		66,600
			611,013
Construction & Engineering - 0.0%
Shaw Group, Inc. 10.75% 3/15/10 (d)	140,000		140,700
Industrial Conglomerates - 0.0%
Tyco International Group SA yankee:
5.8% 8/1/06	5,000		5,163
6.375% 2/15/06	120,000		125,100
7% 6/15/28	85,000		85,850
			216,113
Machinery - 0.0%
Cummins, Inc.:
5.65% 3/1/98	110,000		74,800
9.5% 12/1/10 (d)	75,000		84,375
Dresser, Inc. 9.375% 4/15/11	125,000		128,750
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	170,000		183,600
JLG Industries, Inc. 8.25% 5/1/08 (d)	110,000		112,200
Terex Corp. 8.875% 4/1/08	60,000		62,400
TriMas Corp. 9.875% 6/15/12 (d)	90,000		91,800
			737,925
TOTAL INDUSTRIALS			2,093,926
INFORMATION TECHNOLOGY - 0.0%
Communications Equipment - 0.0%
Nortel Networks Corp. 6.125% 2/15/06	130,000		125,450
Northern Telecom Ltd. yankee 6.875% 9/1/23	70,000		59,500
Qwest Services Corp.:
13% 12/15/07 (d)	75,000		82,500
13.5% 12/15/10 (d)	130,000		146,900
14% 12/15/14 (d)	472,000		549,880
			964,230
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INFORMATION TECHNOLOGY - continued
Computers & Peripherals - 0.0%
Seagate Technology HDD Holdings 8% 5/15/09	$ 25,000		$ 27,000
Electronic Equipment & Instruments - 0.0%
Avnet, Inc. 9.75% 2/15/08	110,000		124,300
Ingram Micro, Inc. 9.875% 8/15/08	40,000		43,600
PerkinElmer, Inc. 8.875% 1/15/13	140,000		152,950
Solectron Corp. 7.375% 3/1/06	255,000		253,725
			574,575
IT Services - 0.0%
Digitalnet, Inc. 9% 7/15/10 (d)	60,000		60,000
Iron Mountain, Inc. 6.625% 1/1/16	220,000		216,700
Titan Corp. 8% 5/15/11 (d)	110,000		116,050
			392,750
Office Electronics - 0.0%
Xerox Corp.:
7.125% 6/15/10	120,000		120,300
7.15% 8/1/04	15,000		15,338
7.2% 4/1/16	200,000		190,000
7.625% 6/15/13	120,000		120,300
			445,938
Semiconductors & Semiconductor Equipment - 0.0%
AMI Semiconductor, Inc. 10.75% 2/1/13 (d)	40,000		45,200
Amkor Technology, Inc. 7.75% 5/15/13 (d)	80,000		75,600
SCG Holding Corp./Semiconductor Components Industries LLC 12% 8/1/09	125,000		105,625
			226,425
TOTAL INFORMATION TECHNOLOGY			2,630,918
MATERIALS - 0.1%
Chemicals - 0.0%
Geon Co. 6.875% 12/15/05	25,000		23,250
HMP Equity Holdings Corp. 0% 5/15/08 unit (d)	190,000		95,000
Huntsman International LLC 9.875% 3/1/09 (d)	105,000		108,675
Methanex Corp. yankee 7.75% 8/15/05	290,000		305,950
Millennium America, Inc.:
9.25% 6/15/08	75,000		81,000
9.25% 6/15/08 (d)	40,000		43,200
OMNOVA Solutions, Inc. 11.25% 6/1/10 (d)	100,000		109,000
PolyOne Corp. 8.875% 5/1/12	105,000		93,450

	Principal Amount		Value (Note 1)
Resolution Performance Products LLC:
9.5% 4/15/10	$ 100,000		$ 104,500
13.5% 11/15/10	30,000		30,000
			994,025
Construction Materials - 0.0%
Texas Industries, Inc. 10.25% 6/15/11 (d)	240,000		252,000
Containers & Packaging - 0.1%
Anchor Glass Container Corp. 11% 2/15/13 (d)	120,000		129,600
BWAY Corp. 10% 10/15/10 (d)	40,000		40,800
Jefferson Smurfit Corp. U.S. 7.5% 6/1/13 (d)	230,000		234,025
Owens-Brockway Glass Container, Inc.:
7.75% 5/15/11 (d)	70,000		73,675
8.25% 5/15/13 (d)	130,000		136,500
8.75% 11/15/12	65,000		70,525
8.875% 2/15/09	550,000		595,375
Owens-Illinois, Inc.:
7.15% 5/15/05	360,000		366,300
7.35% 5/15/08	175,000		172,375
7.5% 5/15/10	35,000		34,300
7.8% 5/15/18	235,000		220,900
			2,074,375
Metals & Mining - 0.0%
Peabody Energy Corp. 6.875% 3/15/13 (d)	150,000		156,750
Phelps Dodge Corp. 8.75% 6/1/11	730,000		851,764
Salt Holdings Corp., Inc.:
0% 12/15/12 (c)(d)	140,000		94,850
0% 6/1/13 (c)(d)	220,000		123,200
Steel Dynamics, Inc. 9.5% 3/15/09	55,000		57,750
			1,284,314
Paper & Forest Products - 0.0%
Georgia-Pacific Corp.:
7.375% 12/1/25	25,000		22,000
7.5% 5/15/06	285,000		292,125
8.125% 5/15/11	130,000		133,575
8.875% 5/15/31	10,000		9,800
Norske Skog Canada Ltd. 8.625% 6/15/11 (d)	150,000		156,563
			614,063
TOTAL MATERIALS			5,218,777
TELECOMMUNICATION SERVICES - 0.1%
Diversified Telecommunication Services - 0.0%
Qwest Corp. 8.875% 3/15/12 (d)	430,000		480,525
Rogers Cantel, Inc. yankee:
8.8% 10/1/07	150,000		153,000
9.375% 6/1/08	20,000		20,900
Triton PCS, Inc.:
8.75% 11/15/11	120,000		119,400
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
Triton PCS, Inc.: - continued
9.375% 2/1/11	$ 175,000		$ 178,500
U.S. West Communications 6.875% 9/15/33	60,000		54,900
			1,007,225
Wireless Telecommunication Services - 0.1%
American Tower Corp. 9.375% 2/1/09	170,000		170,000
Crown Castle International Corp.:
9.375% 8/1/11	90,000		93,375
9.5% 8/1/11	295,000		303,850
10.75% 8/1/11	85,000		91,375
Nextel Communications, Inc.:
9.375% 11/15/09	170,000		182,325
9.5% 2/1/11	40,000		44,400
9.75% 10/31/07	625,000		650,000
9.95% 2/15/08	180,000		189,000
Nextel Partners, Inc. 8.125% 7/1/11 (d)	125,000		124,375
Rogers Wireless, Inc. 9.625% 5/1/11	60,000		67,800
SBA Communications Corp. 10.25% 2/1/09	50,000		45,000
			1,961,500
TOTAL TELECOMMUNICATION SERVICES			2,968,725
UTILITIES - 0.1%
Electric Utilities - 0.0%
Allegheny Energy Supply Co. LLC:
Series A, 10.25% 11/15/07 (d)	114,496		117,931
Series B, 10.25% 11/15/07 (d)(f)	10,500		10,080
7.8% 3/15/11	250,000		207,500
8.75% 4/15/12 (d)	280,000		239,400
CMS Energy Corp. 8.5% 4/15/11	890,000		921,150
Edison International 6.875% 9/15/04	55,000		55,550
Illinois Power Co. 11.5% 12/15/10 (d)	210,000		239,400
Midland Funding Corp. II 11.75% 7/23/05	55,000		59,125
Nevada Power Co. 10.875% 10/15/09	115,000		129,375
Pacific Gas & Electric Co. 6.25% 3/1/04	375,000		375,000
PG&E Corp. 6.875% 7/15/08 (d)	90,000		93,375
Southern California Edison Co.:
7.25% 3/1/26	115,000		116,438
8% 2/15/07 (d)	80,000		88,000
TECO Energy, Inc. 10.5% 12/1/07	160,000		184,000
			2,836,324

	Principal Amount		Value (Note 1)
Gas Utilities - 0.0%
ANR Pipeline, Inc. 9.625% 11/1/21	$ 135,000		$ 159,300
Dynegy Holdings, Inc.:
7.45% 7/15/06	75,000		71,250
8.125% 3/15/05	65,000		63,050
El Paso Energy Corp.:
6.75% 5/15/09	65,000		59,475
6.95% 12/15/07	175,000		163,625
7.375% 12/15/12	10,000		8,950
7.75% 1/15/32	60,000		50,550
7.8% 8/1/31	50,000		41,250
8.05% 10/15/30	380,000		328,700
SEMCO Energy, Inc.:
7.125% 5/15/08 (d)	30,000		31,200
7.75% 5/15/13 (d)	30,000		31,800
Sonat, Inc.:
6.625% 2/1/08	130,000		116,350
6.75% 10/1/07	70,000		63,263
6.875% 6/1/05	470,000		455,900
Southern Natural Gas Co. 8.875% 3/15/10 (d)	60,000		65,700
Transcontinental Gas Pipe Line Corp.:
6.125% 1/15/05	35,000		35,000
8.875% 7/15/12	20,000		22,550
Williams Holdings of Delaware, Inc. 6.25% 2/1/06	15,000		14,700
			1,782,613
Multi-Utilities & Unregulated Power - 0.1%
AES Corp.:
8.375% 8/15/07	75,000		70,125
8.5% 11/1/07	55,000		51,425
8.75% 6/15/08	40,000		39,400
8.75% 5/15/13 (d)	285,000		296,400
8.875% 2/15/11	81,000		78,975
9% 5/15/15 (d)	150,000		156,375
9.375% 9/15/10	19,000		19,095
9.5% 6/1/09	161,000		161,805
10% 12/12/05 (d)	50,000		51,250
10.25% 7/15/06	60,000		59,100
El Paso Corp.:
7% 5/15/11	140,000		127,400
7.875% 6/15/12 (d)	45,000		41,681
El Paso Production Holding Co. 7.75% 6/1/13 (d)	320,000		320,400
Reliant Resources, Inc.:
9.25% 7/15/10 (d)	100,000		100,500
9.5% 7/15/13 (d)	90,000		90,675
Western Resources, Inc. 9.75% 5/1/07	155,000		173,600
Williams Companies, Inc.:
6.5% 8/1/06	100,000		98,000
6.75% 1/15/06	125,000		122,188
7.125% 9/1/11	775,000		755,625
7.625% 7/15/19	175,000		169,750
7.75% 6/15/31	40,000		38,800
7.875% 9/1/21	140,000		137,550
8.125% 3/15/12	85,000		87,125
8.625% 6/1/10	150,000		156,938
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
UTILITIES - continued
Multi-Utilities & Unregulated Power - continued
Williams Companies, Inc.: - continued
8.75% 3/15/32	$ 40,000		$ 41,600
9.25% 3/15/04	100,000		102,500
			3,548,282
TOTAL UTILITIES			8,167,219
TOTAL NONCONVERTIBLE BONDS			41,696,131
TOTAL CORPORATE BONDS (Cost $121,886,913)		127,651,272
Money Market Funds - 1.1%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	60,326,080		60,326,080
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	32,303,550		32,303,550
TOTAL MONEY MARKET FUNDS (Cost $92,629,630)		92,629,630

TOTAL INVESTMENT PORTFOLIO - 100.3%

(Cost $7,969,528,776)

8,735,375,176

NET OTHER ASSETS - (0.3)%			(25,414,714)
NET ASSETS - 100%		$ 8,709,960,462

Security Type Abbreviations

PIERS - Preferred Income Equity Redeemable Securities

PRIDES - Preferred Redeemable Increased Dividend Equity Securities

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(c) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $45,325,700 or 0.5% of net assets.

(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $1,029,757,674 and $1,202,846,718, respectively.

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 $60,895 for the period.

The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which the loans were outstanding amounted to $15,806,636. The weighted average interest rate was 1.39%. Interest expense includes $20,071 paid under the interfund lending program. At period end there were no interfund loans outstanding.

The fund participated in the bank borrowing program. The average daily loan balance during the period for which loans were outstanding amounted to $3,050,125. The weighted average interest rate was 1.68%. Interest expense includes $1,137 paid under the bank borrowing program. At period end there were no bank borrowings outstanding.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $127,840,000 all of which will expire on December 31, 2010.

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

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $30,978,451) (cost $7,969,528,776) - See accompanying schedule		$ 8,735,375,176
Cash		276,744
Receivable for investments sold		17,100,070
Receivable for fund shares sold		4,762,996
Dividends receivable		12,443,826
Interest receivable		1,618,385
Redemption fees receivable		10
Other receivables		57,320
Total assets		8,771,634,527

Liabilities
Payable for investments purchased Regular delivery	$ 14,066,644
Delayed delivery	204,000
Payable for fund shares redeemed	10,926,627
Accrued management fee	3,552,359
Distribution fees payable	194,119
Other payables and accrued expenses	426,766
Collateral on securities loaned, at value	32,303,550
Total liabilities		61,674,065

Net Assets		$ 8,709,960,462
Net Assets consist of:
Paid in capital		$ 7,986,611,076
Undistributed net investment income		76,409,653
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(118,909,772)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		765,849,505
Net Assets		$ 8,709,960,462
Initial Class: Net Asset Value, offering price and redemption price per share ($7,244,489,053 ÷ 367,912,682 shares)		$ 19.69
Service Class: Net Asset Value, offering price and redemption price per share ($880,794,139 ÷ 44,857,125 shares)		$ 19.64
Service Class 2: Net Asset Value, offering price and redemption price per share ($583,761,981 ÷ 29,900,210 shares)		$ 19.52
Service Class 2R: Net Asset Value, offering price and redemption price per share ($915,289 ÷ 46,982 shares)		$ 19.48

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)
Investment Income
Dividends		$ 97,852,702
Interest		4,036,717
Security lending		124,537
Total income		102,013,956

Expenses
Management fee	$ 19,332,228
Transfer agent fees	2,742,609
Distribution fees	972,967
Accounting and security lending fees	399,253
Non-interested trustees' compensation	16,114
Depreciation in deferred trustee compensation account	(22,360)
Custodian fees and expenses	80,861
Audit	47,943
Legal	12,220
Interest	21,208
Miscellaneous	169,601
Total expenses before reductions	23,772,644
Expense reductions	(478,976)	23,293,668
Net investment income (loss)		78,720,288
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	16,944,528
Foreign currency transactions	29,074
Total net realized gain (loss)		16,973,602
Change in net unrealized appreciation (depreciation) on: Investment securities	728,855,641
Assets and liabilities in foreign currencies	(23,730)
Total change in net unrealized appreciation (depreciation)		728,831,911
Net gain (loss)		745,805,513
Net increase (decrease) in net assets resulting from operations		$ 824,525,801

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

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003	Year ended December 31,
Increase (Decrease) in Net Assets	(Unaudited)	2002
Operations
Net investment income (loss)	$ 78,720,288	$ 156,904,928
Net realized gain (loss)	16,973,602	(136,493,863)
Change in net unrealized appreciation (depreciation)	728,831,911	(1,811,259,080)
Net increase (decrease) in net assets resulting from operations	824,525,801	(1,790,848,015)
Distributions to shareholders from net investment income	(152,426,442)	(162,342,476)
Distributions to shareholders from net realized gain	-	(222,300,466)
Total distributions	(152,426,442)	(384,642,942)
Share transactions - net increase (decrease)	(33,697,536)	(71,251,438)
Redemption fees	906	259
Total increase (decrease) in net assets	638,402,729	(2,246,742,136)

Net Assets
Beginning of period	8,071,557,733	10,318,299,869
End of period (including undistributed net investment income of $76,409,653 and undistributed net investment income of $154,882,636, respectively)	$ 8,709,960,462	$ 8,071,557,733

Other Information:
Share Transactions	Six months ended June 30, 2003
	Initial Class	Service Class	Service Class 2	Service Class 2R
Shares Sold	16,976,465	6,193,408	9,178,141	54,310
Reinvested	7,869,268	847,723	452,997	1,082
Redeemed	(36,646,287)	(4,812,738)	(2,154,576)	(34,576)
Net increase (decrease)	(11,800,554)	2,228,393	7,476,562	20,816

Dollars Sold	$ 312,325,235	$ 113,561,617	$ 165,872,414	$ 1,024,730
Reinvested	130,865,933	14,063,717	7,478,977	17,815
Redeemed	(653,424,428)	(86,066,956)	(38,852,327)	(564,263)
Net increase (decrease)	$ (210,233,260)	$ 41,558,378	$ 134,499,064	$ 478,282

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R^A
Shares Sold	55,802,238	11,112,619	17,439,374	30,522
Reinvested	16,371,256	1,504,858	437,787	-
Redeemed	(99,410,660)	(6,864,417)	(5,462,708)	(4,356)
Net increase (decrease)	(27,237,166)	5,753,060	12,414,453	26,166

Dollars Sold	$ 1,171,193,465	$ 231,985,655	$ 345,877,938	$ 576,334
Reinvested	343,960,099	31,541,832	9,140,991	-
Redeemed	(1,967,582,454)	(132,366,206)	(105,497,795)	(81,297)
Net increase (decrease)	$ (452,428,890)	$ 131,161,281	$ 249,521,134	$ 495,037

Distributions	Six months ended June 30, 2003
	Initial Class	Service Class	Service Class 2	Service Class 2R
From net investment income	$ 130,865,933	$ 14,063,717	$ 7,478,977	$ 17,815
From net realized gain	-	-	-	-
Total	$ 130,865,933	$ 14,063,717	$ 7,478,977	$ 17,815

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R^A
From net investment income	$ 145,677,218	$ 12,920,750	$ 3,744,508	$ -
From net realized gain	198,282,881	18,621,082	5,396,503	-
Total	$ 343,960,099	$ 31,541,832	$ 9,141,011	$ -

^A For the period April 24, 2002 (commencement of sales of shares) to December 31, 2002.

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

Equity-Income Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.16	$ 22.75	$ 25.52	$ 25.71	$ 25.42	$ 24.28
Income from Investment Operations
Net investment income (loss)^E	.18	.34	.34	.40	.41	.38
Net realized and unrealized gain (loss)	1.70	(4.08)	(1.51)	1.46	1.10	2.31
Total from investment operations	1.88	(3.74)	(1.17)	1.86	1.51	2.69
Distributions from net investment income	(.35)	(.36)	(.42)	(.44)	(.38)	(.34)
Distributions from net realized gain	-	(.49)	(1.18)	(1.61)	(.84)	(1.21)
Total distributions	(.35)	(.85)	(1.60)	(2.05)	(1.22)	(1.55)
Redemption fees added to paid in capital	- ^E,G	- ^E,G	-	-	-	-
Net asset value, end of period	$ 19.69	$ 18.16	$ 22.75	$ 25.52	$ 25.71	$ 25.42
Total Return^B,C,D	10.71%	(16.95)%	(4.96)%	8.42%	6.33%	11.63%
Ratios to Average Net Assets^F
Expenses before expense reductions	.57%^A	.57%	.58%	.56%	.57%	.58%
Expenses net of voluntary waivers, if any	.57%^A	.57%	.58%	.56%	.57%	.58%
Expenses net of all reductions	.56%^A	.56%	.57%	.55%	.56%	.57%
Net investment income (loss)	1.99%^A	1.70%	1.47%	1.68%	1.57%	1.58%
Supplemental Data
Net assets, end of period (000 omitted)	$ 7,244,489	$ 6,895,940	$ 9,256,205	$ 9,969,086	$ 11,014,291	$ 11,409,912
Portfolio turnover rate	26%^A	25%	24%	22%	27%	28%

^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 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 any voluntary 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.

^GAmount represents less than $.01 per-share.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.10	$ 22.67	$ 25.45	$ 25.66	$ 25.39	$ 24.27
Income from Investment Operations
Net investment income (loss)^E	.17	.32	.31	.37	.38	.36
Net realized and unrealized gain (loss)	1.70	(4.06)	(1.51)	1.46	1.11	2.31
Total from investment operations	1.87	(3.74)	(1.20)	1.83	1.49	2.67
Distributions from net investment income	(.33)	(.34)	(.40)	(.43)	(.38)	(.34)
Distributions from net realized gain	-	(.49)	(1.18)	(1.61)	(.84)	(1.21)
Total distributions	(.33)	(.83)	(1.58)	(2.04)	(1.22)	(1.55)
Redemption fees added to paid in capital	- ^E,G	- ^E,G	-	-	-	-
Net asset value, end of period	$ 19.64	$ 18.10	$ 22.67	$ 25.45	$ 25.66	$ 25.39
Total Return^B,C,D	10.67%	(17.00)%	(5.09)%	8.30%	6.25%	11.54%
Ratios to Average Net Assets^F
Expenses before expense reductions	.67%^A	.67%	.68%	.66%	.67%	.68%
Expenses net of voluntary waivers, if any	.67%^A	.67%	.68%	.66%	.67%	.68%
Expenses net of all reductions	.66%^A	.66%	.67%	.65%	.66%	.67%
Net investment income (loss)	1.89%^A	1.60%	1.37%	1.58%	1.47%	1.51%
Supplemental Data
Net assets, end of period (000 omitted)	$ 880,794	$ 771,516	$ 836,017	$ 634,897	$ 437,332	$ 225,145
Portfolio turnover rate	26%^A	25%	24%	22%	27%	28%

^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.

^GAmount represents less than $.01 per-share.

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

Equity-Income Portfolio

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 18.00	$ 22.59	$ 25.41	$ 25.18
Income from Investment Operations
Net investment income (loss)^E	.16	.28	.27	.32
Net realized and unrealized gain (loss)	1.68	(4.04)	(1.50)	1.95
Total from investment operations	1.84	(3.76)	(1.23)	2.27
Distributions from net investment income	(.32)	(.34)	(.41)	(.43)
Distributions from net realized gain	-	(.49)	(1.18)	(1.61)
Total distributions	(.32)	(.83)	(1.59)	(2.04)
Redemption fees added to paid in capital	- ^E,G	- ^E,G	-	-
Net asset value, end of period	$ 19.52	$ 18.00	$ 22.59	$ 25.41
Total Return^B,C,D	10.55%	(17.15)%	(5.23)%	10.19%
Ratios to Average Net Assets^F
Expenses before expense reductions	.82%^A	.83%	.84%	.83%^A
Expenses net of voluntary waivers, if any	.82%^A	.83%	.84%	.83%^A
Expenses net of all reductions	.81%^A	.82%	.83%	.82%^A
Net investment income (loss)	1.74%^A	1.44%	1.21%	1.41%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 583,762	$ 403,632	$ 226,078	$ 39,911
Portfolio turnover rate	26%^A	25%	24%	22%

^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 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 any voluntary 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.

^GAmount represents less than $.01 per-share.

^HFor the period January 12, 2000 (commencement of sales of shares) to December 31, 2000.

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.99	$ 21.82
Income from Investment Operations
Net investment income (loss)^E	.15	.18
Net realized and unrealized gain (loss)	1.69	(4.01)
Total from investment operations	1.84	(3.83)
Distributions from net investment income	(.35)	-
Redemption fees added to paid in capital ^E,H	-	-
Net asset value, end of period	$ 19.48	$ 17.99
Total Return^B,C,D	10.58%	(17.55)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.82%^A	.85%^A
Expenses net of voluntary waivers, if any	.82%^A	.85%^A
Expenses net of all reductions	.81%^A	.84%^A
Net investment income (loss)	1.74%^A	1.45%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 915	$ 471
Portfolio turnover rate	26%^A	25%

^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 For the period April 24, 2002 (commencement of sale of shares) to December 31, 2002.

^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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

^HAmount represents less than $.01 per-share.

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

Equity-Income Portfolio

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

Equity-Income Portfolio (the fund) is a fund of Variable Insurance Products Fund, (the trust) (referred to in this report as Fidelity Variable Insurance Products: Equity-Income Portfolio) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares and Service Class 2R 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.

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. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and electronic data processing techniques. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. 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. Investments in open-end investment companies are valued at their net asset value each business day.

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.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) non-interested 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 treated as though equivalent dollar amounts had been invested in a cross-section of other Fidelity funds, and are marked-to-market. Deferred amounts remain in the fund until distributed in accordance with the Plan.

Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. Distributions are recorded on the ex-dividend date.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

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 and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, defaulted bonds, market discount, contingent interest, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 1,703,193,152	\|
Unrealized depreciation	(950,439,083)
Net unrealized appreciation (depreciation)	$ 752,754,069
Cost for federal income tax purposes	$ 7,982,621,107

Trading (Redemption) Fees. Service Class 2R shares held less than 60 days are subject to a short-term trading fee equal to 1% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.

2. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (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. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).

Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked to market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

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 under the captions "Legend" and/or "Other Information" at the end of the fund's Schedule of Investments.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. 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 .20% of the fund's average net assets and a group fee rate that averaged .28% 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 annualized management fee rate was .48% of the fund's average net assets.

Equity-Income Portfolio

4. Fees and Other Transactions with Affiliates - continued

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's average net assets and .25% of Service Class 2's and Service Class 2R'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	$ 393,406	\|
Service Class 2	578,824
Service Class 2R	737
	$ 972,967

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 account fees and asset-based fees that vary according to account size and type of account. FIIOC pays a portion of the expenses related to the typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the transfer agent fees of the fund were equivalent to an annualized rate of .07% of average net assets.

For the period, the following amounts were paid to FIIOC:

Initial Class	$ 2,302,677	\|
Service Class	269,551
Service Class 2	170,175
Service Class 2R	206
	$ 2,742,609

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

Central Funds. The fund may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the fund are recorded as income in the accompanying financial statements and totaled $171,761 for the period.

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 are shown under the caption "Other Information" at the end of the fund's Schedule of Investments.

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 funds. Information regarding the fund's participation in the program is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

5. Committed Line of Credit.

The fund participates with other funds managed by FMR in a $3.5 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. During the period, there were no borrowings on this line of credit.

6. Security Lending.

The fund lends portfolio securities from time to time in order to earn additional income. 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. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on the fund's Statement of Assets and Liabilities.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

7. Bank Borrowings.

The fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Information regarding the fund's participation in the program is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

8. 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 $477,996 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 $980.

9. Other Information.

At the end of the period, FMR or its affiliates were the owners of record of 11% of the total outstanding shares of the fund and one unaffiliated shareholder was the owner of record of 27% of the total outstanding shares of the fund.

Equity-Income Portfolio

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Adviser

FMR Co., Inc.

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VIPEI-SANN-0803
1.705693.105

Fidelity® Variable Insurance Products:

Growth Portfolio

Semiannual Report

June 30, 2003

(2_fidelity_logos) (Registered_Trademark)

Investment Summary	<Click Here>	A summary of the fund's investments at period end.
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.

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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 Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Fidelity Variable Insurance Products: Growth Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Pfizer, Inc.	4.2
Microsoft Corp.	3.8
Johnson & Johnson	3.1
Merck & Co., Inc.	2.6
Wal-Mart Stores, Inc.	2.5
	16.2
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Information Technology	33.2
Health Care	22.4
Consumer Discretionary	12.9
Financials	12.0
Consumer Staples	5.8

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks	99.5%
	Short-Term Investments and Net Other Assets	0.5%

* Foreign investments

7.0%

Semiannual Report

Fidelity Variable Insurance Products: Growth Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.5%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 12.9%
Hotels, Restaurants & Leisure - 0.5%
Brinker International, Inc. (a)	991,850		$ 35,726,437
Darden Restaurants, Inc.	462,900		8,785,842
			44,512,279
Household Durables - 0.8%
Centex Corp.	91,600		7,125,564
KB Home	106,100		6,576,078
Leggett & Platt, Inc.	856,400		17,556,200
Maytag Corp.	241,970		5,908,907
Pulte Homes, Inc.	98,000		6,042,680
Whirlpool Corp.	487,400		31,047,380
			74,256,809
Internet & Catalog Retail - 0.3%
eBay, Inc. (a)	296,600		30,899,788
Leisure Equipment & Products - 0.4%
Mattel, Inc.	1,760,600		33,310,552
Media - 6.7%
AOL Time Warner, Inc. (a)	7,776,900		125,130,321
Comcast Corp.:
Class A (a)	643,124		19,409,482
Class A (special) (a)	1,843,900		53,159,637
Cox Communications, Inc. Class A (a)	1,319,700		42,098,430
E.W. Scripps Co. Class A	495,500		43,960,760
Fox Entertainment Group, Inc. Class A (a)	1,772,500		51,012,550
General Motors Corp. Class H (a)	3,571,700		45,753,477
Interpublic Group of Companies, Inc.	1,705,600		22,820,928
Lamar Advertising Co. Class A (a)	848,700		29,882,727
Pixar (a)	450,000		27,378,000
Scholastic Corp. (a)	308,015		9,172,687
Tribune Co.	544,500		26,299,350
Univision Communications, Inc. Class A (a)	1,220,600		37,106,240
Viacom, Inc. Class B (non-vtg.) (a)	1,081,430		47,215,234
Walt Disney Co.	1,344,200		26,547,950
			606,947,773
Multiline Retail - 0.3%
Saks, Inc. (a)	2,452,800		23,792,160
Specialty Retail - 3.9%
AutoZone, Inc. (a)	103,200		7,840,104
Best Buy Co., Inc. (a)	1,529,000		67,153,680
Borders Group, Inc. (a)	556,400		9,798,204
Gap, Inc.	1,299,500		24,378,620
Home Depot, Inc.	3,996,400		132,360,768
Limited Brands, Inc.	1,965,700		30,468,350
Lowe's Companies, Inc.	1,333,430		57,270,819
Weight Watchers International, Inc. (a)	472,700		21,503,123
			350,773,668
TOTAL CONSUMER DISCRETIONARY			1,164,493,029

	Shares		Value (Note 1)
CONSUMER STAPLES - 5.8%
Beverages - 1.4%
PepsiCo, Inc.	945,500		$ 42,074,750
The Coca-Cola Co.	1,858,300		86,243,703
			128,318,453
Food & Staples Retailing - 3.1%
Sysco Corp.	1,600,100		48,067,004
Wal-Mart Stores, Inc.	4,238,800		227,496,396
			275,563,400
Household Products - 0.8%
Procter & Gamble Co.	784,860		69,993,815
Personal Products - 0.5%
Gillette Co.	1,370,100		43,651,386
TOTAL CONSUMER STAPLES			517,527,054
ENERGY - 5.4%
Energy Equipment & Services - 4.6%
Baker Hughes, Inc.	1,181,770		39,672,019
BJ Services Co. (a)	1,200,360		44,845,450
Cooper Cameron Corp. (a)	720,600		36,303,828
ENSCO International, Inc.	784,700		21,108,430
Global Industries Ltd. (a)	2,926,465		14,105,561
Grant Prideco, Inc. (a)	504,400		5,926,700
Nabors Industries Ltd. (a)	594,610		23,516,826
National-Oilwell, Inc. (a)	1,114,600		24,521,200
Noble Corp. (a)	908,400		31,158,120
Schlumberger Ltd. (NY Shares)	807,300		38,403,261
Smith International, Inc. (a)	887,300		32,599,402
Tidewater, Inc.	765,200		22,473,924
Transocean, Inc.	404,400		8,884,668
Varco International, Inc. (a)	1,266,100		24,815,560
Weatherford International Ltd. (a)	1,042,440		43,678,236
			412,013,185
Oil & Gas - 0.8%
Apache Corp.	445,410		28,978,375
Burlington Resources, Inc.	272,800		14,750,296
YUKOS Corp. sponsored ADR	458,625		25,522,481
			69,251,152
TOTAL ENERGY			481,264,337
FINANCIALS - 12.0%
Capital Markets - 2.3%
Bank of New York Co., Inc.	957,300		27,522,375
Charles Schwab Corp.	4,444,750		44,847,528
Goldman Sachs Group, Inc.	508,000		42,545,000
Merrill Lynch & Co., Inc.	964,600		45,027,528
Morgan Stanley	853,300		36,478,575
Nomura Holdings, Inc.	983,000		12,516,434
			208,937,440
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Commercial Banks - 2.3%
Bank of America Corp.	622,500		$ 49,196,175
Bank One Corp.	2,207,690		82,081,914
Fifth Third Bancorp	1,026,300		58,848,042
UCBH Holdings, Inc.	673,700		19,321,716
			209,447,847
Consumer Finance - 1.9%
American Express Co.	1,210,900		50,627,729
MBNA Corp.	3,775,730		78,686,213
SLM Corp.	1,086,300		42,550,371
			171,864,313
Diversified Financial Services - 0.8%
Citigroup, Inc.	1,634,710		69,965,588
Insurance - 3.4%
ACE Ltd.	1,202,200		41,223,438
AFLAC, Inc.	1,573,720		48,391,890
American International Group, Inc.	3,373,366		186,142,336
Travelers Property Casualty Corp.:
Class A	145,447		2,312,607
Class B	1,867,830		29,455,679
			307,525,950
Real Estate - 0.0%
Corrections Corp. of America (a)	7,453		188,784
Thrifts & Mortgage Finance - 1.3%
Fannie Mae	1,654,600		111,586,224
TOTAL FINANCIALS			1,079,516,146
HEALTH CARE - 22.4%
Biotechnology - 3.5%
Amgen, Inc. (a)	2,114,200		140,467,448
Biogen, Inc. (a)	16,600		630,800
Cephalon, Inc. (a)	567,700		23,366,532
CSL Ltd.	917,900		7,388,106
Genentech, Inc. (a)	626,400		45,175,968
Geneprot, Inc. (d)	826,000		2,891,000
Genzyme Corp. - General Division (a)	501,500		20,962,700
IDEC Pharmaceuticals Corp. (a)	725,900		24,680,600
ImClone Systems, Inc. (a)	653,447		20,661,994
MedImmune, Inc. (a)	602,600		21,916,562
Tanox, Inc. (a)	523,600		8,403,780
			316,545,490
Health Care Equipment & Supplies - 3.1%
Alcon, Inc.	1,302,700		59,533,390
Boston Scientific Corp. (a)	1,117,700		68,291,470
Medtronic, Inc.	1,929,700		92,567,709
Orthologic Corp. (a)	3,336		15,312
St. Jude Medical, Inc. (a)	1,019,400		58,615,500
			279,023,381

	Shares		Value (Note 1)
Health Care Providers & Services - 0.6%
McKesson Corp.	1,209,600		$ 43,231,104
WebMD Corp. (a)	884,060		9,574,370
			52,805,474
Pharmaceuticals - 15.2%
Abbott Laboratories	2,938,100		128,571,256
Barr Laboratories, Inc. (a)	779,550		51,060,525
Eli Lilly & Co.	645,770		44,538,757
Johnson & Johnson	5,467,620		282,675,954
Merck & Co., Inc.	3,810,860		230,747,573
Pfizer, Inc.	11,090,325		378,734,594
Schering-Plough Corp.	3,851,900		71,645,340
Teva Pharmaceutical Industries Ltd. sponsored ADR	708,577		40,339,289
Wyeth	3,049,000		138,881,950
			1,367,195,238
TOTAL HEALTH CARE			2,015,569,583
INDUSTRIALS - 5.3%
Aerospace & Defense - 1.1%
Goodrich Corp.	1,061,300		22,287,300
Lockheed Martin Corp.	786,220		37,400,485
Northrop Grumman Corp.	465,200		40,142,108
			99,829,893
Airlines - 0.6%
Delta Air Lines, Inc.	2,001,800		29,386,424
Northwest Airlines Corp. (a)	2,108,986		23,810,452
			53,196,876
Commercial Services & Supplies - 1.1%
ChoicePoint, Inc. (a)	242,300		8,364,196
Corinthian Colleges, Inc. (a)	462,600		22,468,482
Monster Worldwide, Inc.	1,282,889		25,311,400
Robert Half International, Inc. (a)	2,212,700		41,908,538
			98,052,616
Industrial Conglomerates - 2.4%
3M Co.	201,100		25,937,878
General Electric Co.	3,635,440		104,264,419
Tyco International Ltd.	4,780,300		90,730,094
			220,932,391
Machinery - 0.1%
Joy Global, Inc. (a)	385,600		5,695,312
TOTAL INDUSTRIALS			477,707,088
INFORMATION TECHNOLOGY - 33.2%
Communications Equipment - 4.6%
3Com Corp. (a)	2,736,300		12,805,884
Advanced Fibre Communications, Inc. (a)	991,100		16,125,197
Cisco Systems, Inc. (a)	5,544,920		92,544,715
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Communications Equipment - continued
Emulex Corp. (a)	149,500		$ 3,404,115
Foundry Networks, Inc. (a)	1,539,100		22,163,040
Harris Corp.	1,192,900		35,846,645
Juniper Networks, Inc. (a)	2,984,900		36,923,213
Motorola, Inc.	5,924,050		55,863,792
Nortel Networks Corp. (a)	17,706,000		47,806,200
QUALCOMM, Inc.	668,800		23,909,600
Scientific-Atlanta, Inc.	958,300		22,845,872
Telefonaktiebolaget LM Ericsson ADR (a)	4,073,400		43,300,242
			413,538,515
Computers & Peripherals - 4.0%
Apple Computer, Inc. (a)	1,614,100		30,861,592
ATI Technologies, Inc. (a)	1,222,400		12,153,257
Dell Computer Corp. (a)	5,549,500		177,362,020
EMC Corp. (a)	919,300		9,625,071
International Business Machines Corp.	316,570		26,117,025
Lexmark International, Inc. Class A (a)	702,400		49,708,848
Network Appliance, Inc. (a)	1,440,300		23,347,263
Sun Microsystems, Inc. (a)	6,957,500		32,004,500
			361,179,576
Electronic Equipment & Instruments - 2.1%
Agilent Technologies, Inc. (a)	3,235,860		63,261,063
Amphenol Corp. Class A (a)	511,691		23,957,373
Celestica, Inc. (sub. vtg.) (a)	1,222,530		19,157,022
Flextronics International Ltd. (a)	856,400		8,897,996
National Instruments Corp. (a)	472,451		17,849,199
Sanmina-SCI Corp. (a)	4,656,200		29,380,622
Waters Corp. (a)	832,300		24,244,899
			186,748,174
Internet Software & Services - 1.1%
EarthLink, Inc. (a)	1,541,175		12,159,871
Overture Services, Inc. (a)	1,500,637		27,206,549
Yahoo!, Inc. (a)	1,922,788		62,990,535
			102,356,955
IT Services - 1.8%
Concord EFS, Inc. (a)	589,900		8,683,328
First Data Corp.	2,202,400		91,267,456
Paychex, Inc.	2,171,900		63,658,389
			163,609,173
Semiconductors & Semiconductor Equipment - 12.5%
Advanced Micro Devices, Inc. (a)	3,202,400		20,527,384
Agere Systems, Inc.:
Class A (a)	10,101,845		23,537,299
Class B (a)	11,223,709		25,814,531
Altera Corp. (a)	1,352,100		22,174,440
Analog Devices, Inc. (a)	1,550,700		53,995,374
Applied Materials, Inc. (a)	4,140,600		65,669,916
ASML Holding NV (NY Shares) (a)	7,007,587		66,992,532

	Shares		Value (Note 1)
Atmel Corp. (a)	7,940,400		$ 20,089,212
Broadcom Corp. Class A (a)	2,142,700		53,374,657
Cabot Microelectronics Corp. (a)	183,200		9,246,104
Chartered Semiconductor Manufacturing Ltd. ADR (a)	1,653,600		8,516,040
Cypress Semiconductor Corp. (a)	1,827,700		21,932,400
Integrated Circuit Systems, Inc. (a)	410,800		12,911,444
Integrated Device Technology, Inc. (a)	2,430,100		26,852,605
Intel Corp.	7,907,700		164,353,637
Intersil Corp. Class A (a)	1,431,301		38,086,920
KLA-Tencor Corp. (a)	953,920		44,347,741
Lam Research Corp. (a)	2,537,800		46,213,338
LSI Logic Corp. (a)	2,769,000		19,604,520
Marvell Technology Group Ltd. (a)	1,155,400		39,711,098
Micron Technology, Inc. (a)	4,519,400		52,560,622
National Semiconductor Corp. (a)	582,200		11,480,984
NVIDIA Corp. (a)	1,970,283		45,336,212
QLogic Corp. (a)	524,437		25,346,040
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	5,423,232		54,666,179
Teradyne, Inc. (a)	2,072,400		35,873,244
Texas Instruments, Inc.	4,084,650		71,889,840
United Microelectronics Corp. sponsored ADR (a)	5,672,400		21,271,500
Xilinx, Inc. (a)	739,500		18,716,745
			1,121,092,558
Software - 7.1%
Adobe Systems, Inc.	1,295,600		41,549,892
Business Objects SA sponsored ADR (a)	396,100		8,694,395
Cadence Design Systems, Inc. (a)	1,955,800		23,586,948
Compuware Corp. (a)	3,338,056		19,260,583
Electronic Arts, Inc. (a)	913,884		67,618,277
Hyperion Solutions Corp. (a)	287,607		9,709,612
Microsoft Corp.	13,295,677		340,502,288
Nintendo Co. Ltd.	139,900		10,204,086
Synopsys, Inc. (a)	662,478		40,974,264
Take-Two Interactive Software, Inc. (a)	1,168,500		33,115,290
VERITAS Software Corp. (a)	1,482,331		42,498,430
			637,714,065
TOTAL INFORMATION TECHNOLOGY			2,986,239,016
MATERIALS - 1.8%
Chemicals - 0.7%
Dow Chemical Co.	846,900		26,220,024
Lyondell Chemical Co.	3,010,600		40,733,418
			66,953,442
Construction Materials - 0.3%
Florida Rock Industries, Inc.	582,600		24,049,728
Containers & Packaging - 0.2%
Owens-Illinois, Inc. (a)	1,034,200		14,240,934
Common Stocks - continued
	Shares		Value (Note 1)
MATERIALS - continued
Metals & Mining - 0.6%
Arch Coal, Inc.	949,500		$ 21,819,510
CONSOL Energy, Inc.	384,500		8,743,530
Massey Energy Co.	1,174,400		15,443,360
Peabody Energy Corp.	264,200		8,874,478
			54,880,878
TOTAL MATERIALS			160,124,982
TELECOMMUNICATION SERVICES - 0.7%
Wireless Telecommunication Services - 0.7%
Nextel Communications, Inc. Class A (a)	1,386,500		25,067,920
Vodafone Group PLC sponsored ADR	1,826,400		35,888,760
			60,956,680
TOTAL COMMON STOCKS (Cost $7,536,439,726)		8,943,397,915
Convertible Preferred Stocks - 0.0%

INFORMATION TECHNOLOGY - 0.0%
Communications Equipment - 0.0%
Chorum Technologies Series E (d)	88,646		88,646
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $1,528,257)		88,646

Convertible Bonds - 0.0%
	Principal Amount
INFORMATION TECHNOLOGY - 0.0%
Semiconductors & Semiconductor Equipment - 0.0%
Micron Technology, Inc. 2.5% 2/1/10 (c)	$ 1,523,000		1,827,600
TOTAL CONVERTIBLE BONDS (Cost $1,523,000)		1,827,600

Money Market Funds - 1.3%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	105,859,455		105,859,455
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	13,809,300		13,809,300
TOTAL MONEY MARKET FUNDS (Cost $119,668,755)		119,668,755
TOTAL INVESTMENT PORTFOLIO - 100.8% (Cost $7,659,159,738)			9,064,982,916
NET OTHER ASSETS - (0.8)%			(73,873,673)
NET ASSETS - 100%		$ 8,991,109,243

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $1,827,600 or 0.0% of net assets.

(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost
Chorum Technologies Series E	9/19/00	$ 1,528,257
Geneprot, Inc.	7/7/00	$ 4,543,000

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $2,452,653,342 and $2,679,967,996, respectively.

The fund invested in securities that are not registered under the Securities Act of 1933. At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $2,979,646 or 0.0% of net assets.

The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which the loans were outstanding amounted to $22,562,583. The weighted average interest rate was 1.39%. At period end there were no interfund loans outstanding.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $4,287,791,000 of which $2,090,079,000 and $2,197,712,000 will expire on December 31, 2009 and 2010, respectively.

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

Growth Portfolio

Fidelity Variable Insurance Products: Growth Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $13,280,873) (cost $7,659,159,738) - See accompanying schedule		$ 9,064,982,916
Foreign currency held at value (cost $160,261)		160,140
Receivable for investments sold		6,892,466
Receivable for fund shares sold		5,213,511
Dividends receivable		6,189,174
Interest receivable		56,806
Redemption fees receivable		10
Other receivables		1,148,940
Total assets		9,084,643,963

Liabilities
Payable for investments purchased	$ 53,159,380
Payable for fund shares redeemed	21,581,186
Accrued management fee	4,435,200
Distribution fees payable	173,693
Other payables and accrued expenses	375,961
Collateral on securities loaned, at value	13,809,300
Total liabilities		93,534,720

Net Assets		$ 8,991,109,243
Net Assets consist of:
Paid in capital		$ 12,320,315,028
Undistributed net investment income		12,944,578
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(4,747,970,767)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		1,405,820,404
Net Assets		$ 8,991,109,243

Initial Class: Net Asset Value, offering price and redemption price per share ($7,444,464,668 ÷ 280,856,552 shares)		$ 26.51

Service Class: Net Asset Value, offering price and redemption price per share ($1,184,483,129 ÷ 44,846,953 shares)		$ 26.41

Service Class 2: Net Asset Value, offering price and redemption price per share ($361,651,753 ÷ 13,770,302 shares)		$ 26.26

Service Class 2R: Net Asset Value, offering price and redemption price per share ($509,693 ÷ 19,453 shares)		$ 26.20

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 39,738,324
Interest		714,237
Security lending		130,432
Total income		40,582,993

Expenses
Management fee	$ 24,297,641
Transfer agent fees	2,859,164
Distribution fees	889,189
Accounting and security lending fees	408,147
Non-interested trustees' compensation	15,819
Depreciation in deferred trustee compensation account	(36,778)
Custodian fees and expenses	65,677
Audit	46,742
Legal	14,849
Interest	10,486
Miscellaneous	161,416
Total expenses before reductions	28,732,352
Expense reductions	(1,413,315)	27,319,037
Net investment income (loss)		13,263,956
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(313,113,971)
Foreign currency transactions	(56,481)
Total net realized gain (loss)		(313,170,452)
Change in net unrealized appreciation (depreciation) on: Investment securities	1,361,132,642
Assets and liabilities in foreign currencies	(619)
Total change in net unrealized appreciation (depreciation)		1,361,132,023
Net gain (loss)		1,047,961,571
Net increase (decrease) in net assets resulting from operations		$ 1,061,225,527

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

Semiannual Report

Fidelity Variable Insurance Products: Growth Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 13,263,956	$ 24,471,733
Net realized gain (loss)	(313,170,452)	(2,263,336,460)
Change in net unrealized appreciation (depreciation)	1,361,132,023	(1,669,661,651)
Net increase (decrease) in net assets resulting from operations	1,061,225,527	(3,908,526,378)
Distributions to shareholders from net investment income	(23,104,405)	(25,839,894)
Share transactions - net increase (decrease)	(360,651,094)	(1,057,887,768)
Redemption fees	435	134
Total increase (decrease) in net assets	677,470,463	(4,992,253,906)
Net Assets
Beginning of period	8,313,638,780	13,305,892,686
End of period (including undistributed net investment income of $12,944,578 and undistributed net investment income of $22,669,639, respectively)	$ 8,991,109,243	$ 8,313,638,780

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
Shares Sold	12,260,756	4,550,069	5,828,400	14,693
Reinvested	941,499	102,591	14,708	31
Redeemed	(31,718,625)	(5,161,367)	(2,350,846)	(4,340)
Net increase (decrease)	(18,516,370)	(508,707)	3,492,262	10,384
Dollars Sold	$ 297,648,018	$ 110,622,660	$ 140,187,600	$ 371,400
Reinvested	20,552,932	2,232,378	318,424	671
Redeemed	(755,505,403)	(121,473,153)	(55,502,416)	(104,205)
Net increase (decrease)	$ (437,304,453)	$ (8,618,115)	$ 85,003,608	$ 267,866
Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
Shares Sold	27,701,250	7,846,255	8,720,137	9,679
Reinvested	745,326	62,377	7,951	-
Redeemed	(69,998,416)	(12,009,200)	(4,193,267)	(610)
Net increase (decrease)	(41,551,840)	(4,100,568)	4,534,821	9,069
Dollars Sold	$ 783,515,852	$ 225,005,883	$ 237,415,474	$ 256,038
Reinvested	23,619,367	1,970,483	250,044	-
Redeemed	(1,899,343,201)	(321,589,917)	(108,973,421)	(14,370)
Net increase (decrease)	$ (1,092,207,982)	$ (94,613,551)	$ 128,692,097	$ 241,668
Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
From net investment income	$ 20,552,932	$ 2,232,378	$ 318,424	$ 671
From net realized gain	-	-	-	-
Total	$ 20,552,932	$ 2,232,378	$ 318,424	$ 671
	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
From net investment income	$ 23,619,367	$ 1,970,483	$ 250,044	$ -
From net realized gain	-	-	-	-
Total	$ 23,619,367	$ 1,970,483	$ 250,044	$ -

^AFor the period April 24, 2002 (commencement of sale of shares) to December 31, 2002.

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

Semiannual Report

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 23.44	$ 33.61	$ 43.66	$ 54.93	$ 44.87	$ 37.10
Income from Investment Operations
Net investment income (loss) ^E	.04	.07	.07	.03	.07	.08
Net realized and unrealized gain (loss)	3.10	(10.17)	(7.27)	(5.27)	15.10	12.85
Total from investment operations	3.14	(10.10)	(7.20)	(5.24)	15.17	12.93
Distributions from net investment income	(.07)	(.07)	(.03)	(.06)	(.08)	(.19)
Distributions from net realized gain	-	-	(2.82)	(5.97)	(5.03)	(4.97)
Total distributions	(.07)	(.07)	(2.85)	(6.03)	(5.11)	(5.16)
Redemption fees added to paid in capital^{E, G}	-	-	-	-	-	-
Net asset value, end of period	$ 26.51	$ 23.44	$ 33.61	$ 43.66	$ 54.93	$ 44.87
Total Return ^{B, C, D}	13.46%	(30.10)%	(17.67)%	(10.96)%	37.44%	39.49%
Ratios to Average Net Assets ^F
Expenses before expense reductions	.67% ^A	.67%	.68%	.65%	.66%	.68%
Expenses net of voluntary waivers, if any	.67% ^A	.67%	.68%	.65%	.66%	.68%
Expenses net of all reductions	.63% ^A	.61%	.65%	.64%	.65%	.66%
Net investment income (loss)	.34% ^A	.25%	.19%	.07%	.14%	.21%
Supplemental Data
Net assets, end of period (000 omitted)	$ 7,444,465	$ 7,016,147	$ 11,458,659	$ 15,517,271	$ 17,142,411	$ 11,243,824
Portfolio turnover rate	60% ^A	90%	105%	103%	84%	123%

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 23.34	$ 33.48	$ 43.51	$ 54.80	$ 44.82	$ 37.09
Income from Investment Operations
Net investment income (loss) ^E	.03	.04	.03	(.02)	.02	.06
Net realized and unrealized gain (loss)	3.09	(10.14)	(7.24)	(5.25)	15.07	12.83
Total from investment operations	3.12	(10.10)	(7.21)	(5.27)	15.09	12.89
Distributions from net investment income	(.05)	(.04)	-	(.05)	(.08)	(.19)
Distributions from net realized gain	-	-	(2.82)	(5.97)	(5.03)	(4.97)
Total distributions	(.05)	(.04)	(2.82)	(6.02)	(5.11)	(5.16)
Redemption fees added to paid in capital^{E, G}	-	-	-	-	-	-
Net asset value, end of period	$ 26.41	$ 23.34	$ 33.48	$ 43.51	$ 54.80	$ 44.82
Total Return ^{B, C, D}	13.41%	(30.20)%	(17.74)%	(11.05)%	37.29%	39.38%
Ratios to Average Net Assets ^F
Expenses before expense reductions	.77% ^A	.77%	.78%	.76%	.77%	.80%
Expenses net of voluntary waivers, if any	.77% ^A	.77%	.78%	.76%	.77%	.80%
Expenses net of all reductions	.73% ^A	.71%	.75%	.74%	.75%	.75%
Net investment income (loss)	.24% ^A	.15%	.09%	(.04)%	.04%	.15%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,184,483	$ 1,058,738	$ 1,655,758	$ 1,847,051	$ 916,330	$ 136,142
Portfolio turnover rate	60% ^A	90%	105%	103%	84%	123%

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000 ^F
Selected Per-Share Data
Net asset value, beginning of period	$ 23.21	$ 33.34	$ 43.43	$ 53.40
Income from Investment Operations
Net investment income (loss) ^E	.01	- ^H	(.02)	(.09)
Net realized and unrealized gain (loss)	3.07	(10.09)	(7.22)	(3.86)
Total from investment operations	3.08	(10.09)	(7.24)	(3.95)
Distributions from net investment income	(.03)	(.04)	(.03)	(.05)
Distributions from net realized gain	-	-	(2.82)	(5.97)
Total distributions	(.03)	(.04)	(2.85)	(6.02)
Redemption fees added to paid in capital^{E, H}	-	-	-	-
Net asset value, end of period	$ 26.26	$ 23.21	$ 33.34	$ 43.43
Total Return ^{B, C, D}	13.30%	(30.30)%	(17.87)%	(8.88)%
Ratios to Average Net Assets ^G
Expenses before expense reductions	.92% ^A	.93%	.93%	.91% ^A
Expenses net of voluntary waivers, if any	.92% ^A	.93%	.93%	.91% ^A
Expenses net of all reductions	.89% ^A	.87%	.90%	.90% ^A
Net investment income (loss)	.08% ^A	(.01)%	(.06)%	(.19)% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 361,652	$ 238,543	$ 191,475	$ 57,095
Portfolio turnover rate	60% ^A	90%	105%	103%

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002 ^F
Selected Per-Share Data
Net asset value, beginning of period	$ 23.20	$ 31.05
Income from Investment Operations
Net investment income (loss) ^E	.01	(.01)
Net realized and unrealized gain (loss)	3.06	(7.84)
Total from investment operations	3.07	(7.85)
Distributions from net investment income	(.07)	-
Redemption fees added to paid in capital^{E, H}	-	-
Net asset value, end of period	$ 26.20	$ 23.20
Total Return ^{B, C, D}	13.30%	(25.28)%
Ratios to Average Net Assets ^G
Expenses before expense reductions	.93% ^A	.96% ^A
Expenses net of voluntary waivers, if any	.93% ^A	.96% ^A
Expenses net of all reductions	.89% ^A	.90% ^A
Net investment income (loss)	.08% ^A	(.03)% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 510	$ 210
Portfolio turnover rate	60% ^A	90%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFor the period April 24, 2002 (commencement of sale of shares) to December 31, 2002. ^GExpense 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 any voluntary waivers reflects 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. ^HAmount represents less than $.01 per-share.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

Growth Portfolio (the fund) is a fund of Variable Insurance Products Fund (the trust) (referred to in this report as Fidelity Variable Insurance Products: Growth Portfolio) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares and Service Class 2R 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.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

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 and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 1,767,464,895	\|
Unrealized depreciation	(451,914,509)
Net unrealized appreciation (depreciation)	$ 1,315,550,386
Cost for federal income tax purposes	$ 7,749,432,530

2. Operating Policies.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. 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 .28% 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 annualized management fee rate was .58% 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 and Service Class 2R'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	$ 536,213	\|
Service Class 2	352,647
Service Class 2R	329
	$ 889,189

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

For the period, the following amounts were paid to FIIOC:

Initial Class	$ 2,382,969	\|
Service Class	371,290
Service Class 2	104,799
Service Class 2R	106
	$ 2,859,164

5. Committed Line of Credit.

6. Security Lending.

7. Expense Reductions.

8. Other Information.

At the end of the period, FMR or its affiliates were the owners of record of 12% of the total outstanding shares of the fund and two unaffiliated shareholders were the owners of record of 37% of the total outstanding shares of the fund.

Growth Portfolio

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Adviser

FMR Co., Inc.

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Custodian

Mellon Bank, N.A.
Pittsburgh, PA

VIPGRWT-SANN-0803
1.705692.105

Fidelity® Variable Insurance Products:

High Income Portfolio

Semiannual Report

June 30, 2003

(2_fidelity_logos) (Registered_Trademark)

Investment Summary	<Click Here>	A summary of the fund's investments at period end.
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.

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 Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Fidelity Variable Insurance Products: High Income Portfolio

Investment Summary

Top Five Holdings as of June 30, 2003
(by issuer, excluding cash equivalents)	% of fund's net assets
Nextel Communications, Inc.	3.2
Qwest Services Corp.	2.9
The Coastal Corp.	2.7
Williams Companies, Inc.	2.4
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.	2.2
	13.4
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Energy	13.1
Telecommunications	10.6
Cable TV	9.4
Electric Utilities	7.3
Healthcare	5.1

Quality Diversification (% of fund's net assets)
as of June 30, 2003

(% of fund's net assets)

	AAA,AA,A	0.0%
	BBB	2.5%
	BB	23.6%
	B	49.1%
	CCC,CC,C	14.8%
	D	0.2%
	Not Rated	2.3%
	Equities	4.5%
	Short-Term Investments and Net Other Assets	3.0%

We have used ratings from Moody's Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ® ratings.

Semiannual Report

Fidelity Variable Insurance Products: High Income Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 91.0%
	Principal Amount		Value (Note 1)
Convertible Bonds - 0.9%
Cable TV - 0.2%
EchoStar Communications Corp. 4.875% 1/1/07 (e)	$ 3,425,000		$ 3,442,125
Healthcare - 0.6%
Total Renal Care Holdings:
7% 5/15/09 (e)	1,370,000		1,428,225
7% 5/15/09	9,030,000		9,413,775
			10,842,000
Technology - 0.1%
Atmel Corp. 0% 5/23/21	5,000,000		1,881,000
Telecommunications - 0.0%
Millicom International Cellular SA 2% 6/1/06 pay-in-kind	347,000		780,750
TOTAL CONVERTIBLE BONDS			16,945,875
Nonconvertible Bonds - 90.1%
Aerospace - 1.6%
Alliant Techsystems, Inc. 8.5% 5/15/11	9,585,000		10,471,613
BE Aerospace, Inc.:
8% 3/1/08	3,325,000		2,593,500
8.875% 5/1/11	6,465,000		5,042,700
9.5% 11/1/08	4,220,000		3,376,000
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	960,000		1,036,800
Transdigm, Inc. 10.375% 12/1/08	4,105,000		4,433,400
Vought Aircraft Industries, Inc. 8% 7/15/11 (e)	3,320,000		3,353,200
			30,307,213
Air Transportation - 2.1%
American Airlines, Inc. pass thru trust certificates 7.8% 4/1/08	1,480,000		1,036,000
Continental Airlines, Inc. 8% 12/15/05	3,010,000		2,693,950
Continental Airlines, Inc. pass thru trust certificates:
6.541% 9/15/09	557,623		468,404
6.748% 9/15/18	380,458		289,148
6.795% 8/2/18	2,393,877		1,867,224
6.8% 7/2/07	376,464		323,759
6.9% 1/2/17	3,413,867		2,594,539
8.312% 10/2/12	2,424,869		1,915,647
8.321% 11/1/06	240,000		201,600
8.388% 5/1/22	194,539		151,740
Delta Air Lines, Inc.:
equipment trust certificates 8.54% 1/2/07	748,768		584,039
7.9% 12/15/09	710,000		560,900
8.3% 12/15/29	10,905,000		7,797,075

	Principal Amount		Value (Note 1)
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	$ 615,000		$ 516,600
7.57% 11/18/10	750,000		771,422
7.711% 9/18/11	680,000		571,200
7.779% 11/18/05	4,055,000		3,487,300
7.92% 5/18/12	5,380,000		4,647,231
10.06% 1/2/16	1,260,000		982,800
Northwest Airlines, Inc.:
7.875% 3/15/08	1,240,000		954,800
8.875% 6/1/06	1,180,000		955,800
9.875% 3/15/07	505,000		398,950
Northwest Airlines, Inc. pass thru trust certificates:
6.81% 2/1/20	1,475,582		1,277,190
7.248% 7/2/14	2,150,838		1,290,503
7.575% 3/1/19	1,185,127		1,196,978
7.691% 4/1/17	233,647		184,581
7.95% 9/1/16	205,390		164,312
8.304% 9/1/10	1,853,079		1,482,463
NWA Trust 10.23% 6/21/14	1,390,708		1,112,566
U.S. Airways pass thru trust certificates 6.85% 7/30/19	1,114,981		1,048,082
			41,526,803
Automotive - 3.1%
ArvinMeritor, Inc. 8.75% 3/1/12	8,695,000		9,651,450
Cummins, Inc. 9.5% 12/1/10 (e)	1,710,000		1,923,750
Dana Corp.:
9% 8/15/11	2,515,000		2,703,625
10.125% 3/15/10	9,760,000		10,736,000
Lear Corp.:
7.96% 5/15/05	920,000		989,000
8.11% 5/15/09	8,075,000		9,245,875
Stoneridge, Inc. 11.5% 5/1/12	160,000		179,200
TRW Automotive Acquisition Corp.:
9.375% 2/15/13 (e)	6,280,000		6,829,500
11% 2/15/13 (e)	14,305,000		15,663,975
United Components, Inc. 9.375% 6/15/13 (e)	1,410,000		1,452,300
			59,374,675
Broadcasting - 1.5%
Entercom Radio LLC/Entercom Capital, Inc. 7.625% 3/1/14	8,125,000		8,896,875
Radio One, Inc. 8.875% 7/1/11	15,400,000		17,055,500
Susquehanna Media Co. 7.375% 4/15/13	3,320,000		3,502,600
			29,454,975
Building Materials - 0.9%
American Standard, Inc. 7.375% 2/1/08	1,180,000		1,303,900
FIMEP SA 10.5% 2/15/13 (e)	12,815,000		14,352,800
Jacuzzi Brands, Inc. 9.625% 7/1/10 (e)(h)	1,500,000		1,500,000
			17,156,700
Cable TV - 7.6%
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.:
8.25% 4/1/07	7,000,000		5,460,000
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Cable TV - continued
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.: - continued
8.625% 4/1/09	$ 12,120,000		$ 8,847,600
9.625% 11/15/09	7,790,000		5,725,650
10% 4/1/09	6,775,000		5,216,750
10% 5/15/11	16,255,000		11,866,150
10.75% 10/1/09	2,440,000		1,903,200
11.125% 1/15/11	5,670,000		4,422,600
CSC Holdings, Inc.:
7.625% 4/1/11	6,970,000		7,039,700
9.875% 2/15/13	5,260,000		5,417,800
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375% 3/15/13 (e)	17,310,000		19,257,375
EchoStar DBS Corp.:
9.125% 1/15/09	6,400,000		7,152,000
9.375% 2/1/09	3,695,000		3,944,413
10.375% 10/1/07	5,495,000		6,085,713
NTL, Inc. 19% 1/1/10 (e)	9,425,000		9,519,250
PanAmSat Corp. 8.5% 2/1/12	7,408,000		8,037,680
Pegasus Satellite Communications, Inc.:
0% 3/1/07 (d)	8,665,000		7,408,575
11.25% 1/15/10 (e)	1,410,000		1,325,400
Rogers Cable, Inc.:
6.25% 6/15/13 (e)	4,490,000		4,456,325
yankee 7.875% 5/1/12	6,000,000		6,390,000
Telewest Communications PLC yankee:
0% 4/15/09 (c)(d)	2,885,000		879,925
0% 2/1/10 (c)(d)	5,165,000		1,446,200
9.875% 2/1/10 (c)	4,080,000		1,428,000
11.25% 11/1/08 (c)	3,900,000		1,413,750
Telewest PLC:
11% 10/1/07 (c)	20,390,000		7,442,350
yankee 9.625% 10/1/06 (c)	16,690,000		6,008,400
			148,094,806
Capital Goods - 1.4%
AGCO Corp. 9.5% 5/1/08	1,020,000		1,122,000
Danka Business Systems PLC 11% 6/15/10 (e)	6,740,000		6,638,900
Kansas City Southern Railway Co.:
7.5% 6/15/09	10,260,000		10,516,500
9.5% 10/1/08	590,000		637,200
Tyco International Group SA yankee:
6.125% 11/1/08	195,000		203,775
6.375% 10/15/11	7,810,000		8,239,550
			27,357,925
Chemicals - 2.5%
Avecia Group PLC 11% 7/1/09	13,970,000		12,573,000
Geon Co. 6.875% 12/15/05	570,000		530,100
Huntsman Advanced Materials LLC:
9.1% 7/15/08 (e)(f)	2,970,000		2,999,700

	Principal Amount		Value (Note 1)
11% 7/15/10 (e)	$ 2,220,000		$ 2,308,800
Lyondell Chemical Co.:
9.5% 12/15/08 (e)	2,880,000		2,721,600
9.875% 5/1/07	1,775,000		1,730,625
OMNOVA Solutions, Inc. 11.25% 6/1/10 (e)	11,950,000		13,025,500
PolyOne Corp.:
8.875% 5/1/12	2,695,000		2,398,550
10.625% 5/15/10 (e)	11,310,000		10,970,700
			49,258,575
Consumer Products - 0.9%
Revlon Consumer Products Corp. 12% 12/1/05	9,640,000		9,399,000
The Hockey Co. 11.25% 4/15/09	7,215,000		8,008,650
			17,407,650
Containers - 3.5%
BWAY Corp. 10% 10/15/10 (e)	5,000,000		5,100,000
Crown Cork & Seal, Inc.:
7.375% 12/15/26	5,414,000		4,141,710
8% 4/15/23	7,305,000		5,844,000
Crown European Holdings SA 9.5% 3/1/11 (e)	6,665,000		7,198,200
Owens-Brockway Glass Container, Inc.:
7.75% 5/15/11 (e)	2,720,000		2,862,800
8.25% 5/15/13 (e)	4,680,000		4,914,000
8.75% 11/15/12	9,510,000		10,318,350
8.875% 2/15/09	10,655,000		11,534,038
Owens-Illinois, Inc.:
7.35% 5/15/08	440,000		433,400
7.5% 5/15/10	640,000		627,200
7.8% 5/15/18	480,000		451,200
8.1% 5/15/07	6,000,000		6,150,000
Sealed Air Corp.:
6.95% 5/15/09 (e)	5,355,000		5,949,780
8.75% 7/1/08 (e)	1,305,000		1,550,340
			67,075,018
Diversified Media - 2.4%
Corus Entertainment, Inc. 8.75% 3/1/12	7,140,000		7,657,650
Entravision Communications Corp. 8.125% 3/15/09	5,955,000		6,208,088
Lamar Media Corp. 7.25% 1/1/13	1,650,000		1,740,750
PEI Holdings, Inc. 11% 3/15/10 (e)	10,505,000		11,608,025
Penton Media, Inc. 11.875% 10/1/07	1,915,000		1,819,250
Vivendi Universal SA 9.25% 4/15/10 (e)	16,000,000		18,080,000
			47,113,763
Electric Utilities - 6.8%
AES Corp.:
8.75% 6/15/08	583,000		574,255
8.75% 5/15/13 (e)	7,830,000		8,143,200
8.875% 2/15/11	4,791,000		4,671,225
9% 5/15/15 (e)	5,860,000		6,109,050
9.375% 9/15/10	1,348,000		1,354,740
9.5% 6/1/09	1,499,000		1,506,495
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Electric Utilities - continued
AES Drax Holdings Ltd. 10.41% 12/31/20	$ 9,140,000		$ 5,758,200
CMS Energy Corp.:
7.5% 1/15/09	6,745,000		6,643,825
8.5% 4/15/11	4,645,000		4,807,575
8.9% 7/15/08	5,165,000		5,371,600
9.875% 10/15/07	8,990,000		9,574,350
Edison International 6.875% 9/15/04	4,325,000		4,368,250
Illinois Power Co. 11.5% 12/15/10 (e)	9,365,000		10,676,100
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10 (e)	890,000		916,700
Nevada Power Co. 10.875% 10/15/09	1,255,000		1,411,875
Pacific Gas & Electric Co.:
6.25% 8/1/03	3,625,000		3,625,000
6.25% 3/1/04	2,875,000		2,875,000
8.375% 5/1/25	1,390,000		1,424,750
10% 11/1/05 (e)(f)	3,790,000		3,903,700
PG&E Corp. 6.875% 7/15/08 (e)	3,610,000		3,745,375
Reliant Energy Resources Corp. 7.75% 2/15/11	1,725,000		1,938,469
Reliant Resources, Inc. 9.25% 7/15/10 (e)	8,080,000		8,120,400
SEMCO Energy, Inc.:
7.125% 5/15/08 (e)	800,000		832,000
7.75% 5/15/13 (e)	930,000		985,800
Sierra Pacific Power Co. 8% 6/1/08	2,615,000		2,693,450
Southern California Edison Co.:
7.125% 7/15/25	330,000		333,300
7.25% 3/1/26	1,020,000		1,032,750
7.625% 1/15/10	4,530,000		4,824,450
8% 2/15/07 (e)	7,340,000		8,074,000
Western Resources, Inc.:
7.875% 5/1/07	7,030,000		7,733,000
9.75% 5/1/07	7,000,000		7,840,000
			131,868,884
Energy - 13.1%
ANR Pipeline, Inc. 8.875% 3/15/10 (e)	1,790,000		1,960,050
Chesapeake Energy Corp.:
7.75% 1/15/15	2,345,000		2,491,563
8.125% 4/1/11	7,000,000		7,525,000
CMS Panhandle Holding Co. 6.5% 7/15/09	3,420,000		3,770,550
DI Industries, Inc. 8.875% 7/1/07	3,720,000		3,836,250
El Paso Corp.:
7% 5/15/11	11,525,000		10,487,750
7.875% 6/15/12 (e)	8,880,000		8,225,100
El Paso Energy Corp.:
6.75% 5/15/09	7,925,000		7,251,375
6.95% 12/15/07	4,980,000		4,656,300
7.375% 12/15/12	955,000		854,725
7.8% 8/1/31	1,420,000		1,171,500

	Principal Amount		Value (Note 1)
8.05% 10/15/30	$ 910,000		$ 787,150
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp.:
8.5% 6/1/10 (e)	3,380,000		3,616,600
8.5% 6/1/11	5,625,000		6,018,750
Encore Acquisition Co. 8.375% 6/15/12	4,325,000		4,627,750
Forest Oil Corp. 8% 12/15/11	3,450,000		3,708,750
Gemstone Investor Ltd./Gemstone Investor, Inc. 7.71% 10/31/04 (e)	1,260,000		1,247,400
Grant Prideco, Inc.:
9% 12/15/09	930,000		1,039,275
9.625% 12/1/07	3,220,000		3,638,600
GulfTerra Energy Partners LP/GulfTerra Energy Finance Corp. 10.625% 12/1/12	1,370,000		1,589,200
Key Energy Services, Inc. 8.375% 3/1/08	1,700,000		1,836,000
Northwest Pipeline Corp.:
6.625% 12/1/07	1,655,000		1,704,650
8.125% 3/1/10	1,680,000		1,814,400
Panhandle Eastern Pipe Line Co.:
7.2% 8/15/24	485,000		494,700
8.25% 4/1/10	1,555,000		1,854,338
Plains Exploration & Production Co. LP 8.75% 7/1/12	7,725,000		8,265,750
SESI LLC 8.875% 5/15/11	390,000		419,250
Southern Natural Gas Co.:
7.35% 2/15/31	8,335,000		8,418,350
8% 3/1/32	165,000		174,900
8.875% 3/15/10 (e)	2,120,000		2,321,400
Teekay Shipping Corp. 8.875% 7/15/11	22,888,000		25,090,970
Tennessee Gas Pipeline Co.:
7% 10/15/28	670,000		637,338
7.5% 4/1/17	325,000		333,938
8.375% 6/15/32	975,000		1,060,313
The Coastal Corp.:
6.2% 5/15/04	3,810,000		3,771,900
6.375% 2/1/09	1,985,000		1,736,875
6.5% 5/15/06	4,430,000		4,142,050
6.5% 6/1/08	7,165,000		6,412,675
6.95% 6/1/28	245,000		194,775
7.5% 8/15/06	20,590,000		19,869,350
7.625% 9/1/08	1,955,000		1,837,700
7.75% 6/15/10	14,424,000		13,450,380
7.75% 10/15/35	1,295,000		1,087,800
Transcontinental Gas Pipe Line Corp.:
6.125% 1/15/05	2,220,000		2,220,000
6.25% 1/15/08	6,310,000		6,278,450
7% 8/15/11	1,740,000		1,774,800
8.875% 7/15/12	1,490,000		1,679,975
Vintage Petroleum, Inc. 8.25% 5/1/12	4,145,000		4,507,688
Williams Companies, Inc.:
6.5% 8/1/06	3,345,000		3,278,100
6.625% 11/15/04	5,080,000		5,080,000
6.75% 1/15/06	4,260,000		4,164,150
7.125% 9/1/11	13,480,000		13,143,000
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Energy - continued
Williams Companies, Inc.: - continued
7.625% 7/15/19	$ 3,810,000		$ 3,695,700
8.125% 3/15/12	6,145,000		6,298,625
8.625% 6/1/10	5,680,000		5,942,700
9.25% 3/15/04	2,825,000		2,895,625
Williams Holdings of Delaware, Inc. 6.25% 2/1/06	8,460,000		8,290,800
			254,683,053
Entertainment/Film - 0.7%
Cinemark USA, Inc. 8.5% 8/1/08	5,515,000		5,694,238
Regal Cinemas Corp. 9.375% 2/1/12	7,620,000		8,420,100
			14,114,338
Environmental - 1.6%
Allied Waste North America, Inc.:
7.875% 1/1/09	2,553,000		2,667,885
8.5% 12/1/08	9,090,000		9,771,750
8.875% 4/1/08	3,080,000		3,334,100
9.25% 9/1/12 (e)	12,965,000		14,326,325
			30,100,060
Food and Drug Retail - 1.7%
Ahold Finance USA, Inc.:
6.25% 5/1/09	11,755,000		10,932,150
8.25% 7/15/10	12,415,000		12,539,150
The Great Atlantic & Pacific Tea Co.:
7.75% 4/15/07	3,170,000		2,963,950
9.125% 12/15/11	6,325,000		5,913,875
			32,349,125
Food/Beverage/Tobacco - 2.0%
Chiquita Brands International, Inc. 10.56% 3/15/09	5,465,000		5,902,200
Corn Products International, Inc.:
8.25% 7/15/07	7,235,000		8,103,200
8.45% 8/15/09	1,055,000		1,189,513
Dean Foods Co.:
6.625% 5/15/09	220,000		234,300
6.9% 10/15/17	4,680,000		4,633,200
8.15% 8/1/07	6,205,000		6,887,550
Del Monte Corp. 8.625% 12/15/12 (e)	2,530,000		2,726,075
Doane Pet Care Co.:
9.75% 5/15/07	5,076,000		4,822,200
10.75% 3/1/10	3,250,000		3,542,500
Michael Foods, Inc. 11.75% 4/1/11	330,000		379,500
			38,420,238
Gaming - 3.7%
Bally Total Fitness Holding Corp. 10.5% 7/15/11 (e)	6,740,000		6,773,700
Chukchansi Economic Development Authority 14.5% 6/15/09 (e)	2,735,000		3,008,500
Herbst Gaming, Inc. 10.75% 9/1/08	1,390,000		1,532,475
MGM MIRAGE 8.5% 9/15/10	2,030,000		2,387,788

	Principal Amount		Value (Note 1)
Mirage Resorts, Inc.:
6.625% 2/1/05	$ 930,000		$ 964,875
7.25% 10/15/06	230,000		245,525
Penn National Gaming, Inc. 8.875% 3/15/10	8,455,000		8,962,300
Station Casinos, Inc. 8.375% 2/15/08	10,000,000		10,750,000
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	17,485,000		18,840,088
Venetian Casino Resort LLC/Las Vegas Sands, Inc. 11% 6/15/10	1,275,000		1,437,563
Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (e)	1,810,000		1,882,400
Wheeling Island Gaming, Inc. 10.125% 12/15/09	2,830,000		2,808,775
Wynn Las Vegas LLC/ Wynn Las Vegas Capital Corp. 12% 11/1/10	11,805,000		12,985,500
			72,579,489
Healthcare - 4.1%
aaiPharma, Inc. 11% 4/1/10	6,920,000		7,612,000
AmeriPath, Inc. 10.5% 4/1/13 (e)	12,540,000		13,417,800
Apogent Technologies, Inc. 6.5% 5/15/13 (e)	4,100,000		4,223,000
Biovail Corp. yankee 7.875% 4/1/10	11,945,000		12,631,838
Fisher Scientific International, Inc. 8.125% 5/1/12	3,940,000		4,215,800
Fresenius Medical Care Capital Trust IV 7.875% 6/15/11	610,000		640,500
HCA, Inc. 6.3% 10/1/12	3,500,000		3,587,500
PacifiCare Health Systems, Inc. 10.75% 6/1/09	5,330,000		6,089,525
Psychiatric Solutions, Inc. 10.625% 6/15/13 (e)	1,240,000		1,274,100
Senior Housing Properties Trust:
7.875% 4/15/15	2,320,000		2,366,400
8.625% 1/15/12	5,900,000		6,254,000
Tenet Healthcare Corp.:
5% 7/1/07	2,520,000		2,368,800
5.375% 11/15/06	635,000		609,600
6.375% 12/1/11	1,415,000		1,308,875
6.5% 6/1/12	1,875,000		1,734,375
7.375% 2/1/13	7,120,000		6,870,800
Triad Hospitals, Inc. 8.75% 5/1/09	3,520,000		3,766,400
			78,971,313
Homebuilding/Real Estate - 1.8%
Beazer Homes USA, Inc. 8.625% 5/15/11	6,775,000		7,486,375
Crescent Real Estate Equities LP/Crescent Finance Co. 9.25% 4/15/09	6,245,000		6,682,150
D.R. Horton, Inc.:
7.875% 8/15/11	3,470,000		3,799,650
8% 2/1/09	3,630,000		4,011,150
KB Home 7.75% 2/1/10	5,000,000		5,375,000
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Homebuilding/Real Estate - continued
Ryland Group, Inc. 9.125% 6/15/11	$ 5,000,000		$ 5,675,000
Standard Pacific Corp. 9.25% 4/15/12	2,295,000		2,535,975
			35,565,300
Hotels - 1.9%
Hilton Hotels Corp.:
7.625% 12/1/12	3,630,000		3,965,775
8.25% 2/15/11	5,530,000		6,165,950
ITT Corp. 7.375% 11/15/15	3,740,000		3,861,550
La Quinta Properties, Inc. 8.875% 3/15/11 (e)	7,980,000		8,498,700
Starwood Hotels & Resorts Worldwide, Inc.:
7.375% 5/1/07	9,490,000		9,964,500
7.875% 5/1/12	4,155,000		4,528,950
			36,985,425
Leisure - 2.5%
Bally Total Fitness Holding Corp. 9.875% 10/15/07	5,975,000		5,467,125
Florida Panthers Holdings, Inc. 9.875% 4/15/09	11,000,000		11,825,000
Speedway Motorsports, Inc. 6.75% 6/1/13 (e)	3,010,000		3,100,300
Town Sports International, Inc. 9.625% 4/15/11 (e)	8,195,000		8,584,263
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10 (e)	16,860,000		18,546,000
			47,522,688
Metals/Mining - 2.7%
Arch Western Finance LLC 6.75% 7/1/13 (e)	10,135,000		10,337,700
Compass Minerals Group, Inc. 10% 8/15/11	4,800,000		5,328,000
Freeport-McMoRan Copper & Gold, Inc. 10.125% 2/1/10	10,025,000		11,177,875
Luscar Coal Ltd. 9.75% 10/15/11	3,770,000		4,297,800
Peabody Energy Corp. 6.875% 3/15/13 (e)	5,740,000		5,998,300
Phelps Dodge Corp.:
8.75% 6/1/11	345,000		402,546
9.5% 6/1/31	5,230,000		6,261,879
Salt Holdings Corp., Inc.:
0% 12/15/12 (d)(e)	5,580,000		3,780,450
0% 6/1/13 (d)(e)	9,470,000		5,303,200
			52,887,750
Paper - 1.1%
Norampac, Inc. 6.75% 6/1/13 (e)	3,480,000		3,636,600
Norske Skog Canada Ltd. 8.625% 6/15/11 (e)	6,000,000		6,262,500
Packaging Corp. of America 9.625% 4/1/09	4,000,000		4,400,000

	Principal Amount		Value (Note 1)
Stone Container Corp.:
8.375% 7/1/12	$ 3,350,000		$ 3,551,000
9.75% 2/1/11	2,525,000		2,752,250
			20,602,350
Publishing/Printing - 3.1%
American Color Graphics, Inc.:
10% 6/15/10 (e)(h)	5,360,000		5,386,800
12.75% 8/1/05	21,340,000		21,446,700
American Media Operations, Inc.:
8.875% 1/15/11 (e)	1,220,000		1,314,550
10.25% 5/1/09	220,000		237,050
Houghton Mifflin Co.:
8.25% 2/1/11 (e)	10,550,000		11,077,500
9.875% 2/1/13 (e)	5,970,000		6,447,600
R. H. Donnelley Finance Corp. I 10.875% 12/15/12 (e)	3,070,000		3,561,200
Vertis, Inc. 9.75% 4/1/09 (e)	5,010,000		5,097,675
World Color Press, Inc.:
7.75% 2/15/09	4,855,000		5,097,750
8.375% 11/15/08	350,000		367,500
Yell Finance BV 10.75% 8/1/11	465,000		526,613
			60,560,938
Railroad - 1.3%
TFM SA de CV yankee:
10.25% 6/15/07	4,670,000		4,734,213
11.75% 6/15/09	20,690,000		21,052,075
			25,786,288
Restaurants - 1.5%
Domino's, Inc. 8.25% 7/1/11 (e)	2,590,000		2,661,225
Morton's Restaurant Group, Inc. 7.5% 7/1/10 (e)	1,380,000		1,193,700
Tricon Global Restaurants, Inc. 8.875% 4/15/11	21,230,000		25,051,400
			28,906,325
Services - 0.2%
Fluor Corp. 6.95% 3/1/07	2,000,000		1,980,000
Iron Mountain, Inc.:
8.25% 7/1/11	520,000		548,600
8.625% 4/1/13	95,000		101,650
Pierce Leahy Command Co. yankee 8.125% 5/15/08	475,000		490,438
Worldspan LP 9.625% 6/15/11 (e)	1,410,000		1,452,300
			4,572,988
Shipping - 0.7%
General Maritime Corp. 10% 3/15/13 (e)	6,310,000		6,909,450
Transport Maritima Mexicana SA de CV yankee:
9.5% 8/15/03 (c)	2,310,000		1,882,650
10.25% 11/15/06 (c)	4,980,000		3,934,200
			12,726,300
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Steels - 0.1%
California Steel Industries, Inc. 8.5% 4/1/09	$ 640,000		$ 648,000
Steel Dynamics, Inc. 9.5% 3/15/09	655,000		687,750
			1,335,750
Super Retail - 0.5%
Barneys, Inc. 9% 4/1/08 unit (e)	5,020,000		4,518,000
Hollywood Entertainment Corp. 9.625% 3/15/11	1,630,000		1,776,700
Jafra Cosmetics International, Inc./Distribuidora Comercial Jafra SA de CV 10.75% 5/15/11 (e)	2,530,000		2,631,200
			8,925,900
Technology - 2.0%
AMI Semiconductor, Inc. 10.75% 2/1/13 (e)	5,020,000		5,672,600
Digitalnet, Inc. 9% 7/15/10 (e)	2,230,000		2,230,000
Flextronics International Ltd. yankee 9.875% 7/1/10	140,000		152,950
IOS Capital LLC 7.25% 6/30/08	4,670,000		4,599,950
ON Semiconductor Corp./Semiconductor Components Industries LLC 12% 3/15/10	4,555,000		4,964,950
Seagate Technology HDD Holdings 8% 5/15/09	7,800,000		8,424,000
Xerox Corp.:
7.125% 6/15/10	6,740,000		6,756,850
7.625% 6/15/13	6,740,000		6,756,850
			39,558,150
Telecommunications - 9.1%
Centennial Cellular Operating Co./Centennial Communications Corp. 10.125% 6/15/13 (e)	2,340,000		2,328,300
Crown Castle International Corp.:
9.375% 8/1/11	5,900,000		6,121,250
9.5% 8/1/11	700,000		721,000
10.75% 8/1/11	6,700,000		7,202,500
Millicom International Cellular SA 11% 6/1/06 (e)	3,060,000		3,021,750
Mobifon Holdings BV 12.5% 7/31/10 (e)	8,540,000		8,838,900
Nextel Communications, Inc.:
9.375% 11/15/09	19,635,000		21,058,538
9.5% 2/1/11	14,385,000		15,967,350
12% 11/1/08	2,495,000		2,694,600
Orbital Imaging Corp.:
11.625% 3/1/05 (c)	7,110,000		1,350,900
11.625% 3/1/05 (c)	3,680,000		699,200
PTC International Finance BV yankee 10.75% 7/1/07	1,580,000		1,647,150
Qwest Communications International, Inc. 7.25% 11/1/08	3,435,000		3,125,850
Qwest Corp. 8.875% 3/15/12 (e)	14,845,000		16,589,288
Qwest Services Corp.:
13.5% 12/15/10 (e)	31,285,000		35,352,037
14% 12/15/14 (e)	18,050,000		21,028,250

	Principal Amount		Value (Note 1)
Rogers Wireless, Inc. 9.625% 5/1/11	$ 7,345,000		$ 8,299,850
Satelites Mexicanos SA de CV 5.82% 6/30/04 (e)(f)	10,408,000		9,263,120
U.S. West Communications 8.875% 6/1/31	4,500,000		4,736,250
WorldCom, Inc.:
6.4% 8/15/05 (c)	2,120,000		636,000
7.5% 5/15/11 (c)	16,195,000		4,858,500
8% 5/15/06 (c)	6,065,000		1,819,500
			177,360,083
Textiles & Apparel - 0.4%
Dan River, Inc. 12.75% 4/15/09 (e)	5,090,000		4,581,000
Levi Strauss & Co. 12.25% 12/15/12	3,720,000		3,087,600
			7,668,600
TOTAL NONCONVERTIBLE BONDS			1,748,179,438
TOTAL CORPORATE BONDS (Cost $1,634,786,404)		1,765,125,313
Commercial Mortgage Securities - 0.0%

LB Multi-family Mortgage Trust Series 1991-4 Class A1, 6.9814% 4/25/21 (e)(f) (Cost $260,782)	346,957		308,792

Common Stocks - 2.4%
	Shares
Aerospace - 0.4%
Goodrich Corp.	410,000		8,610,000
Cable TV - 0.6%
NTL, Inc. (a)	363,220		12,393,066
Diversified Financial Services - 0.0%
Delta Financial Corp. warrants 12/21/10 (a)	14,310		143
Delta Funding Residual Exchange Co. LLC Class A (membership interest) (a)	1,350		243,000
Delta Funding Residual Management, Inc. (a)	1,350		14
ECM Corp. LP (e)	3,000		258,000
			501,157
Energy - 0.0%
Tokheim Corp. (a)	135,835		1,358
Healthcare - 0.3%
Mariner Health Care, Inc. (a)	9,583		42,165
Mariner Health Care, Inc. warrants 5/1/04 (a)	9,049		49,770
Common Stocks - continued
	Shares		Value (Note 1)
Healthcare - continued
Quest Diagnostics, Inc. (a)	100,000		$ 6,380,000
Wright Medical Technology, Inc. warrants 6/30/03 (a)	3,212		32
			6,471,967
Homebuilding/Real Estate - 0.3%
Swerdlow Real Estate Group LLC (g)	159,600		5,660,453
Hotels - 0.0%
MOA Hospitality, Inc.	3,000		11,625
Publishing/Printing - 0.2%
R.H. Donnelley Corp. (a)	88,800		3,238,536
Shipping - 0.5%
General Maritime Corp. (a)	919,600		9,333,940
Technology - 0.0%
Ampex Corp. Class A (a)	480		9,360
Textiles & Apparel - 0.1%
Arena Brands Holding Corp. Class B	48,889		941,113
TOTAL COMMON STOCKS (Cost $79,049,813)		47,172,575
Preferred Stocks - 2.1%

Convertible Preferred Stocks - 0.1%
Telecommunications - 0.1%
Cincinnati Bell, Inc. Series B, 6.75%	27,900		1,139,715
Nonconvertible Preferred Stocks - 2.0%
Cable TV - 0.0%
NTL Europe, Inc. Series A, 10%	397		1,191
Diversified Financial Services - 0.5%
American Annuity Group Capital Trust II 8.875%	8,910		9,417,870
Delta Financial Corp. Series A, 10%	1,350		27,000
			9,444,870
Healthcare - 0.1%
Fresenius Medical Care Capital Trust II 7.875%	2,760		2,975,711
Technology - 0.0%
Ampex Corp. 8% non-cumulative (redeemable preferred)	278		216,840
Telecommunications - 1.4%
Broadwing Communications, Inc. Series B, 12.5% pay-in-kind	15,265		3,205,650
Nextel Communications, Inc.:
Series D, 13%	4,649		4,933,751
Series E, 11.125%	17,223		18,342,495
			26,481,896
TOTAL NONCONVERTIBLE PREFERRED STOCKS			39,120,508
TOTAL PREFERRED STOCKS (Cost $42,241,273)		40,260,223

Floating Rate Loans - 1.5%
	Principal Amount		Value (Note 1)
Cable TV - 1.0%
Hilton Head Communications LP Tranche B term loan 0% 3/31/08 (f)	$ 7,000,000		$ 5,740,000
Olympus Cable Holdings LLC:
Tranche A term loan 5.25% 6/30/10 (f)	5,500,000		4,812,500
Tranche B term loan 6% 9/30/10 (f)	10,350,000		9,211,500
			19,764,000
Electric Utilities - 0.5%
Centerpoint Energy House Electric LLC term loan 12.75% 11/11/05 (f)	3,260,000		3,781,600
CMS Energy Corp.:
Tranche B term loan 7.5% 4/30/04 (f)	1,081,183		1,083,886
Tranche C term loan 9% 9/30/04 (f)	1,924,324		1,938,757
Sierra Pacific Power Co. term loan 10.5% 10/31/05 (f)	2,786,000		2,855,650
			9,659,893
TOTAL FLOATING RATE LOANS (Cost $28,028,816)		29,423,893

Money Market Funds - 1.9%
	Shares
Fidelity Cash Central Fund, 1.18% (b) (Cost $35,912,647)	35,912,647		35,912,647
Cash Equivalents - 0.2%
	Maturity Amount
Investments in repurchase agreements (Collateralized by U.S. Treasury Obligations, in a joint trading account at 1.08%, dated 6/30/03 due 7/1/03) (Cost $4,493,000)	$ 4,493,135		4,493,000
TOTAL INVESTMENT PORTFOLIO - 99.1% (Cost $1,824,772,735)			1,922,696,443
NET OTHER ASSETS - 0.9%			16,879,957
NET ASSETS - 100%		$ 1,939,576,400

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate 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 period end, the value of these securities amounted to $532,712,595 or 27.5% of net assets.

(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost
Swerdlow Real Estate Group LLC	1/15/99	$ 7,697,348

(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $1,033,063,886 and $710,100,009, respectively.

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 $167 for the period.

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

United States of America	86.7%
Canada	2.7
Mexico	2.1
United Kingdom	2.1
France	2.0
Marshall Islands	1.8
Bahamas (Nassau)	1.0
Others (individually less than 1%)	1.6
	100.0%

The fund invested in loans and loan participations, trade claims or other receivables. At period end the value of these investments amounted to $29,423,893 or 1.5% of net assets.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $1,317,999,000 of which $78,331,000, $378,633,000, $772,554,000 and $88,481,000 will expire on December 31, 2007, 2008, 2009 and 2010, respectively.

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

High Income Portfolio

Fidelity Variable Insurance Products: High Income Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including repurchase agreements of $4,493,000) (cost $1,824,772,735) - See accompanying schedule		$ 1,922,696,443
Cash		2,920
Receivable for investments sold		33,096,493
Receivable for fund shares sold		6,018,248
Dividends receivable		500,922
Interest receivable		34,343,115
Other receivables		28,080
Total assets		1,996,686,221

Liabilities
Payable for investments purchased
Regular delivery	$ 47,864,271
Delayed delivery	6,860,000
Payable for fund shares redeemed	1,220,550
Accrued management fee	922,706
Distribution fees payable	43,777
Other payables and accrued expenses	198,517
Total liabilities		57,109,821

Net Assets		$ 1,939,576,400
Net Assets consist of:
Paid in capital		$ 3,016,533,030
Undistributed net investment income		87,528,966
Accumulated undistributed net realized gain (loss) on investments		(1,262,409,581)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		97,923,985
Net Assets		$ 1,939,576,400

Initial Class: Net Asset Value, offering price and redemption price per share ($1,486,583,592 ÷ 232,031,211 shares)		$ 6.41

Service Class: Net Asset Value, offering price and redemption price per share ($390,704,728 ÷ 61,216,443 shares)		$ 6.38

Service Class 2: Net Asset Value, offering price and redemption price per share ($62,288,080 ÷ 9,822,497 shares)		$ 6.34

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 1,986,574
Interest		74,070,060
Total income		76,056,634

Expenses
Management fee	$ 4,816,741
Transfer agent fees	588,970
Distribution fees	213,121
Accounting fees and expenses	243,112
Non-interested trustees' compensation	3,331
Custodian fees and expenses	27,017
Audit	37,771
Legal	16,345
Miscellaneous	25,527
Total expenses before reductions	5,971,935
Expense reductions	(14,872)	5,957,063
Net investment income (loss)		70,099,571
Realized and Unrealized Gain (Loss) Net realized gain (loss) on investment securities		55,327,276
Change in net unrealized appreciation (depreciation) on: Investment securities	141,607,811
Assets and liabilities in foreign currencies	78
Total change in net unrealized appreciation (depreciation)		141,607,889
Net gain (loss)		196,935,165
Net increase (decrease) in net assets resulting from operations		$ 267,034,736

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

Semiannual Report

Fidelity Variable Insurance Products: High Income Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002^A
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 70,099,571	$ 118,831,777
Net realized gain (loss)	55,327,276	(126,983,382)
Change in net unrealized appreciation (depreciation)	141,607,889	58,036,531
Net increase (decrease) in net assets resulting from operations	267,034,736	49,884,926
Distributions to shareholders from net investment income	(110,937,981)	(146,986,706)
Share transactions - net increase (decrease)	344,929,163	83,855,103
Total increase (decrease) in net assets	501,025,918	(13,246,677)

Net Assets
Beginning of period	1,438,550,482	1,451,797,159
End of period (including undistributed net investment income of $87,528,966 and undistributed net investment income of $171,722,555, respectively)	$ 1,939,576,400	$ 1,438,550,482

^A Certain amounts have been reclassified. See Note 1 of the Notes to Financial Statements.

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
Shares Sold	107,561,625	29,001,001	7,218,746
Reinvested	15,863,053	3,574,368	424,961
Redeemed	(84,437,060)	(15,461,814)	(3,361,165)
Net increase (decrease)	38,987,618	17,113,555	4,282,542

Dollars Sold	$ 642,565,633	$ 173,504,673	$ 42,719,411
Reinvested	88,674,463	19,909,232	2,354,286
Redeemed	(511,276,518)	(93,162,614)	(20,359,403)
Net increase (decrease)	$ 219,963,578	$ 100,251,291	$ 24,714,294

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
Shares Sold	161,830,537	33,051,621	6,046,991
Reinvested	21,420,774	4,185,869	334,655
Redeemed	(177,635,347)	(29,816,724)	(3,438,673)
Net increase (decrease)	5,615,964	7,420,766	2,942,973

Dollars Sold	$ 928,948,274	$ 187,453,912	$ 33,996,291
Reinvested	121,455,787	23,650,162	1,880,757
Redeemed	(1,024,045,741)	(170,105,252)	(19,379,087)
Net increase (decrease)	$ 26,358,320	$ 40,998,822	$ 16,497,961

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 88,674,463	$ 19,909,232	$ 2,354,286
From net realized gain	-	-	-
Total	$ 88,674,463	$ 19,909,232	$ 2,354,286

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 121,455,786	$ 23,650,162	$ 1,880,758
From net realized gain	-	-	-
Total	$ 121,455,786	$ 23,650,162	$ 1,880,758

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

Semiannual Report

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 5.93	$ 6.41	$ 8.18	$ 11.32	$ 11.53	$ 13.58
Income from Investment Operations
Net investment income (loss)^E	.254	.496^H	.774^G,H	1.123	1.095	1.111
Net realized and unrealized gain (loss)	.706	(.306)^H	(1.544)^G,H	(3.513)	(.195)	(1.591)
Total from investment operations	.960	.190	(.770)	(2.390)	.900	(.480)
Distributions from net investment income	(.480)	(.670)	(1.000)	(.750)	(1.075)	(.970)
Distributions from net realized gain	-	-	-	-	(.030)	(.600)
Distributions in excess of net realized gain	-	-	-	-	(.005)	-
Total distributions	(.480)	(.670)	(1.000)	(.750)	(1.110)	(1.570)
Net asset value, end of period	$ 6.41	$ 5.93	$ 6.41	$ 8.18	$ 11.32	$ 11.53
Total Return^B,C,D	17.19%	3.44%	(11.73)%	(22.54)%	8.25%	(4.33)%
Ratios to Average Net Assets^F
Expenses before expense reductions	.71%^A	.70%	.71%	.68%	.69%	.70%
Expenses net of voluntary waivers, if any	.71%^A	.70%	.71%	.68%	.69%	.70%
Expenses net of all reductions	.71%^A	.70%	.70%	.68%	.69%	.70%
Net investment income (loss)	8.65%^A	8.65%^H	11.00%^G,H	11.38%	9.80%	9.14%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,486,584	$ 1,145,562	$ 1,201,085	$ 1,467,250	$ 2,257,610	$ 2,348,954
Portfolio turnover rate	91%^A	96%	138%	68%	82%	92%

^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FExpense 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 any voluntary 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. ^GEffective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. Per share data and ratios for periods prior to adoption have not been restated to reflect this change. ^H As a result of a revision to reflect accretion of market discount using the interest method, certain amounts for the years ended December 31, 2002 and 2001 have been reclassified from what was previously reported. The impact of this change for the years ended December 31, 2002 and 2001 was a decrease to net investment income of $0.017 and $0.075 per share with a corresponding increase to net realized and unrealized gain (loss) per share, respectively. The ratio of net investment income to average net assets decreased from 8.95% and 12.08% to 8.65% and 11.00%, respectively. The reclassification has no impact on the net assets of the fund.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 5.91	$ 6.38	$ 8.15	$ 11.29	$ 11.52	$ 13.57
Income from Investment Operations
Net investment income (loss)^E	.250	.488^H	.758^G,H	1.102	1.074	1.082
Net realized and unrealized gain (loss)	.690	(.288)^H	(1.538)^G,H	(3.502)	(.194)	(1.562)
Total from investment operations	.940	.200	(.780)	(2.400)	.880	(.480)
Distributions from net investment income	(.470)	(.670)	(.990)	(.740)	(1.075)	(.970)
Distributions from net realized gain	-	-	-	-	(.030)	(.600)
Distributions in excess of net realized gain	-	-	-	-	(.005)	-
Total distributions	(.470)	(.670)	(.990)	(.740)	(1.110)	(1.570)
Net asset value, end of period	$ 6.38	$ 5.91	$ 6.38	$ 8.15	$ 11.29	$ 11.52
Total Return^B,C,D	17.06%	3.62%	(11.90)	(22.68)%	8.08%	(4.34)%
Ratios to Average Net Assets^F
Expenses before expense reductions	.81%^A	.80%	.81%	.78%	.79%	.82%
Expenses net of voluntary waivers, if any	.81%^A	.80%	.81%	.78%	.79%	.82%
Expenses net of all reductions	.81%^A	.80%	.81%	.78%	.79%	.82%
Net investment income (loss)	8.55%^A	8.55%^H	10.90%^G,H	11.28%	9.69%	9.51%
Supplemental Data
Net assets, end of period (000 omitted)	$ 390,705	$ 260,489	$ 234,204	$ 227,549	$ 253,972	$ 129,587
Portfolio turnover rate	91%^A	96%	138%	68%	82%	92%

^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FExpense 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 any voluntary 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. ^GEffective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. Per share data and ratios for periods prior to adoption have not been restated to reflect this change. ^H As a result of a revision to reflect accretion of market discount using the interest method, certain amounts for the years ended December 31, 2002 and 2001 have been reclassified from what was previously reported. The impact of this change for the years ended December 31, 2002 and 2001 was a decrease to net investment income of $0.017 and $0.075 per share with a corresponding increase to net realized and unrealized gain (loss) per share, respectively. The ratio of net investment income to average net assets decreased from 8.85% and 11.97% to 8.55% and 10.90%, respectively. The reclassification has no impact on the net assets of the fund.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 5.87	$ 6.36	$ 8.13	$ 11.14
Income from Investment Operations
Net investment income (loss)^E	.243	.472^I	.716^H,I	.936
Net realized and unrealized gain (loss)	.687	(.292)^I	(1.496)^H,I	(3.206)
Total from investment operations	.930	.180	(.780)	(2.270)
Distributions from net investment income	(.460)	(.670)	(.990)	(.740)
Net asset value, end of period	$ 6.34	$ 5.87	$ 6.36	$ 8.13
Total Return^B,C,D	16.97%	3.30%	(11.93)%	(21.83)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.97%^A	.97%	.98%	1.01%^A
Expenses net of voluntary waivers, if any	.97%^A	.97%	.98%	1.01%^A
Expenses net of all reductions	.97%^A	.97%	.98%	1.01%^A
Net investment income (loss)	8.38%^A	8.38%^I	10.73%^H,I	11.04%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 62,288	$ 32,499	$ 16,508	$ 4,742
Portfolio turnover rate	91%^A	96%	138%	68%

^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFor the period January 12, 2000 (commencement of operations) to December 31, 2000. ^GExpense 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 any voluntary 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. ^HEffective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. Per share data and ratios for periods prior to adoption have not been restated to reflect this change. ^I As a result of a revision to reflect accretion of market discount using the interest method, certain amounts for the years ended December 31, 2002 and 2001 have been reclassified from what was previously reported. The impact of this change for the years ended December 31, 2002 and 2001 was a decrease to net investment income of $0.017 and $0.072 per share with a corresponding increase to net realized and unrealized gain (loss) per share, respectively. The ratio of net investment income to average net assets decreased from 8.68% and 11.81% to 8.38% and 10.73%, respectively. The reclassification has no impact on the net assets of the fund.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

High Income Portfolio (the fund) is a fund of Variable Insurance Products Fund (the trust) (referred to in this report as Fidelity Variable Insurance Products: High Income Portfolio) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The fund offers the following classes of shares: Initial Class shares, Service Class shares 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.

Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Debt securities for which quotations are readily available are valued at their most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which such securities are normally traded, as determined by recognized dealers in such securities, or securities are valued on the basis of information provided by a pricing service. Pricing services use valuation matrices that incorporate both dealer-supplied valuations and electronic data processing techniques. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. 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. Investments in open-end investment companies are valued at their net asset value each business day.

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures . A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

Reclassification of Financial Information. As a result of a revision to reflect accretion of market discount using the interest method, certain amounts for the year ended December 31, 2002 have been reclassified from what was previously reported. Net investment income for the fund decreased by $4,105,765 with a corresponding increase (decrease) to realized and unrealized gain (loss) of $7,408,020 and $(3,302,255) respectively. The reclassification has no impact on the net assets of the fund.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

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 and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to foreign currency transactions, prior period premium and discount on debt securities, market discount, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 175,399,585
Unrealized depreciation	(69,575,822)
Net unrealized appreciation (depreciation)	$ 105,823,763
Cost for federal income tax purposes	$ 1,816,872,680

2. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked to market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the fund's Schedule of Investments. The fund may receive compensation for interest forgone on the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

Loans and Other Direct Debt Instruments. The fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments that obligate the fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. Information regarding loans and other direct debt instruments is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

High Income Portfolio

4. 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 .45% of the fund's average net assets and a group fee rate that averaged .13% 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 annualized management fee rate was .59% 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	$ 156,109
Service Class 2	57,012
	$ 213,121

For the period, the following amounts were paid to FIIOC:

Initial Class	$ 460,238
Service Class	109,938
Service Class 2	18,794
	$ 588,970

Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the fund's accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses.

5. Committed Line of Credit.

6. 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 $10,276 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 $4,596.

7. Other Information.

At the end of the period, FMR or its affiliates were the owners of record of 19% of the total outstanding shares of the fund and two unaffiliated shareholders were the owners of record of 53% of the total outstanding shares of the fund.

High Income Portfolio

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

Fidelity Management & Research (Far East) Inc.

Fidelity Investments Japan Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Custodian

The Bank of New York
New York, NY

VIPHI-SANN-0803
1.705694.105

Fidelity® Variable Insurance Products:

Money Market Portfolio

Semiannual Report

June 30, 2003

(2_fidelity_logos) (Registered_Trademark)

Investments	<Click Here>	A complete list of the fund's investments.
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.

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

Third party marks appearing herein are the property of their respective owners.

All marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Fidelity Variable Insurance Products: Money Market Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 1.0%
Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Bell Trace Obligated Group
7/11/03	1.34% (b)	$ 11,800,000		$ 11,800,000
Conoco, Inc.
4/15/04	1.51	12,335,000		12,753,657
TOTAL CORPORATE BONDS			24,553,657
Certificates of Deposit - 23.7%

London Branch, Eurodollar, Foreign Banks - 14.3%
BNP Paribas SA
8/26/03	1.25%	25,000,000		25,000,000
Deutsche Bank AG
7/14/03	1.25	50,000,000		50,000,000
Dresdner Bank AG
8/21/03	1.24	10,000,000		10,000,000
HBOS Treasury Services PLC
7/3/03	1.21	15,000,000		15,000,000
7/31/03	1.26	50,000,000		50,000,000
8/21/03	1.21	10,000,000		10,000,000
9/15/03	0.94	10,000,000		10,002,101
ING Bank NV
7/7/03	1.25	35,000,000		35,000,000
10/1/03	1.05 (d)	50,000,000		50,000,000
Norddeutsche Landesbank Girozentrale
7/1/03	1.27	50,000,000		50,000,000
Societe Generale
8/22/03	1.26	50,000,000		50,000,000
				355,002,101
New York Branch, Yankee Dollar, Foreign Banks - 9.4%
BNP Paribas SA
7/1/03	1.04 (b)	50,000,000		49,991,766
8/11/03	1.35	5,000,000		5,000,000
9/19/03	1.43	25,000,000		25,000,000
Canadian Imperial Bank of Commerce
7/15/03	1.20 (b)	20,000,000		20,000,000
Credit Agricole Indosuez
7/1/03	1.04 (b)	10,000,000		9,997,734
7/1/03	1.07 (b)	10,000,000		9,999,232
Royal Bank of Canada
7/1/03	1.04 (b)	15,000,000		14,998,481
Royal Bank of Scotland PLC
7/7/03	1.24	15,000,000		15,000,000
Societe Generale
7/1/03	1.04 (b)	20,000,000		19,997,898
7/1/03	1.05 (b)	20,000,000		19,998,585
Svenska Handelsbanken AB
7/1/03	1.24 (b)	10,000,000		10,000,000

Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Toronto-Dominion Bank
7/7/03	1.25%	$ 10,000,000		$ 10,000,025
WestLB AG
8/26/03	1.28	25,000,000		25,000,000
				234,983,721
TOTAL CERTIFICATES OF DEPOSIT			589,985,822
Commercial Paper - 24.5%

Citibank Credit Card Master Trust I (Dakota Certificate Program)
7/18/03	1.27	5,000,000		4,997,001
7/21/03	1.25	40,000,000		39,972,222
8/6/03	1.25	50,000,000		49,937,500
8/12/03	1.15	15,000,000		14,979,875
DaimlerChrysler NA Holding Corp.
7/15/03	1.57	5,000,000		4,996,967
8/13/03	1.53	5,000,000		4,990,922
8/18/03	1.51	9,000,000		8,982,000
9/22/03	1.23	6,000,000		5,982,985
Edison Asset Securitization LLC
7/10/03	1.27	10,000,000		9,996,850
Emerald (MBNA Credit Card Master Note Trust)
7/30/03	1.25	20,000,000		19,979,861
Ford Motor Credit Co.
8/19/03	1.51	11,000,000		10,977,542
9/3/03	1.50	5,000,000		4,986,756
9/4/03	1.51	3,000,000		2,991,875
9/9/03	1.44	6,000,000		5,983,317
GE Capital International Funding, Inc.
8/15/03	1.24	10,000,000		9,984,500
9/18/03	1.27	5,000,000		4,986,175
General Electric Capital Corp.
8/15/03	1.23	10,000,000		9,984,625
General Electric Co.
10/23/03	1.20	10,000,000		9,962,317
General Mills, Inc.
7/10/03	1.32	5,000,000		4,998,350
Goldman Sachs Group, Inc.
7/15/03	1.28	50,000,000		49,975,306
Hatteras Funding Corp.
8/19/03	1.20	5,000,000		4,991,833
ING U.S. Funding LLC
7/15/03	1.30	25,000,000		24,987,410
Morgan Stanley
7/1/03	1.46 (b)	30,000,000		30,000,000
Motown Notes Program
9/10/03	1.06	5,000,000		4,989,547
9/10/03	1.18	5,000,000		4,988,364
9/16/03	1.11	10,000,000		9,976,258
Commercial Paper - continued
Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Newcastle (Discover Card Master Trust)
7/24/03	1.26%	$ 5,000,000		$ 4,995,975
7/25/03	1.25	5,000,000		4,995,833
8/22/03	1.07	60,000,000		59,907,267
Paradigm Funding LLC
7/25/03	1.25	60,000,000		59,950,000
8/5/03	1.20	5,000,000		4,994,167
8/21/03	0.99	5,000,000		4,992,988
Park Granada LLC
8/12/03	1.09	5,000,000		4,993,642
8/18/03	1.01	50,000,000		49,932,667
8/18/03	1.02	25,000,000		24,966,000
9/4/03	1.18	5,000,000		4,989,347
Transamerica Finance Corp.
8/22/03	1.07	25,000,000		24,961,361
TOTAL COMMERCIAL PAPER			609,259,605
Federal Agencies - 21.3%

Fannie Mae - 11.1%
Agency Coupons - 4.1%
6/29/04	1.29	30,000,000		30,000,000
7/20/04	1.06	45,000,000		45,000,000
7/23/04	1.08 (d)	25,000,000		25,000,000
				100,000,000
Discount Notes - 7.0%
7/25/03	1.33	25,000,000		24,978,000
8/25/03	1.15	50,000,000		49,912,153
11/21/03	1.04	100,000,000		99,586,885
				174,477,038
				274,477,038
Federal Home Loan Bank - 7.0%
Agency Coupons - 7.0%
2/24/04	1.40	50,000,000		49,999,050
3/5/04	1.41	25,000,000		25,000,000
3/10/04	1.44	25,000,000		25,000,000
6/28/04	1.30	25,000,000		25,000,000
7/6/04	1.23	50,000,000		50,000,000
				174,999,050
Freddie Mac - 3.2%
Agency Coupons - 1.0%
7/27/04	1.20 (d)	25,000,000		25,000,000

Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Discount Notes - 2.2%
10/31/03	1.03%	$ 49,000,000		$ 48,828,963
12/4/03	1.14	5,000,000		4,975,517
				53,804,480
				78,804,480
TOTAL FEDERAL AGENCIES			528,280,568
Bank Notes - 1.2%

Bank One NA, Chicago
9/8/03	1.16	20,000,000		20,000,000
National City Bank, Indiana
7/1/03	1.04 (b)	10,000,000		9,997,974
TOTAL BANK NOTES			29,997,974
Master Notes - 2.7%

Goldman Sachs Group, Inc.
7/1/03	1.52 (b)(c)	23,000,000		23,000,000
7/7/03	1.35 (c)	15,000,000		15,000,000
8/12/03	1.38 (c)	30,000,000		30,000,000
TOTAL MASTER NOTES			68,000,000
Medium-Term Notes - 16.3%

American Express Credit Corp.
7/7/03	1.35 (b)	10,000,000		10,001,962
Bank of New York Co., Inc.
7/28/03	1.01 (a)(b)	15,000,000		15,000,000
Bank of Scotland Treasury Services PLC
7/23/03	1.33 (b)	10,000,000		10,003,441
Bank One NA, Chicago
7/1/03	1.03 (b)	50,000,000		49,986,721
7/1/03	1.04 (b)	10,000,000		9,999,325
GE Capital Assurance Co.
7/1/03	1.43 (b)(c)	5,000,000		5,000,000
General Electric Capital Corp.
7/1/03	1.58 (b)	20,000,000		20,008,056
7/9/03	1.32 (b)	25,000,000		25,000,000
7/17/03	1.17 (b)	20,000,000		20,000,000
7/28/03	1.11 (b)	15,000,000		15,002,656
General Motors Acceptance Corp. Mortgage Credit
7/1/03	1.82 (b)(c)	30,000,000		30,000,000
Harwood Street Funding I LLC
7/21/03	1.22 (a)(b)	10,000,000		10,000,000
HBOS Treasury Services PLC
9/24/03	1.27 (b)	20,000,000		20,000,000
Medium-Term Notes - continued
Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Landesbank Baden-Wuerttemberg
7/15/03	1.18% (b)	$ 25,000,000		$ 25,001,879
Montauk Funding Corp.
7/15/03	1.14 (b)	15,000,000		15,000,000
Morgan Stanley
7/1/03	1.46 (b)	25,000,000		25,000,000
7/15/03	1.28 (b)	20,000,000		20,000,000
National City Bank, Indiana
7/1/03	1.05 (b)	25,000,000		24,995,442
Verizon Global Funding Corp.
9/15/03	1.57 (b)	30,000,000		30,000,000
9/17/03	1.21 (b)	15,000,000		15,000,703
Wachovia Bank NA
7/28/03	1.32 (b)	10,000,000		10,003,456
TOTAL MEDIUM-TERM NOTES			405,003,641
Short-Term Notes - 3.3%

Jackson National Life Insurance Co.
7/1/03	1.42 (b)(c)	7,000,000		7,000,000
Metropolitan Life Insurance Co.
7/1/03	1.48 (b)(c)	10,000,000		10,000,000
7/28/03	1.12 (b)	5,000,000		5,000,000
8/1/03	1.47 (b)(c)	5,000,000		5,000,000
Monumental Life Insurance Co.
7/1/03	1.46 (b)(c)	5,000,000		5,000,000
7/1/03	1.49 (b)(c)	5,000,000		5,000,000
New York Life Insurance Co.
7/1/03	1.42 (b)(c)	30,000,000		30,000,000
Pacific Life Insurance Co.
9/11/03	1.36 (b)(c)	5,000,000		5,000,000
Transamerica Occidental Life Insurance Co.
8/1/03	1.48 (b)(c)	10,000,000		10,000,000
TOTAL SHORT-TERM NOTES			82,000,000
Municipal Securities - 0.1%

West Baton Rouge Parish Indl. District #3 Rev. Bonds (Dow Chemical Co. Proj.) 1.65% tender 7/1/03, CP mode
7/1/03	1.65	2,000,000		2,000,000

Repurchase Agreements - 9.9%
	Maturity Amount		Value (Note 1)
In a joint trading account (Collateralized by U.S. Government Obligations dated 6/30/03 due 7/1/03 At 1.28%)	$ 753,027		$ 753,000
With:
Banc of America Securities LLC At:
1.05%, dated 6/26/03 due 7/28/03 (Collateralized by Mortgage Loan Obligations with principal amounts of $15,750,000, 4.5%, 7/25/33)	15,014,000		15,000,000
1.51%, dated 6/30/03 due 7/1/03 (Collateralized by Corporate Obligations with principal amounts of $154,035,472, 0% - 9%, 2/15/04 - 12/10/37)	100,004,194		100,000,000
Citigroup Global Markets, Inc. At 1.44%, dated 6/30/03 due 7/1/03 (Collateralized by Corporate Obligations with principal amounts of $60,772,000, 5.88% - 7.7%, 12/1/05 - 5/15/33)	54,002,160		54,000,000
J.P. Morgan Securities, Inc. At:
1.09%, dated 6/26/03 due 7/25/03 (Collateralized by Corporate Obligations with principal amounts of $1,750,500, 6.38% - 6.6%, 2/15/08 - 1/15/12)	2,001,756		2,000,000
1.13%, dated 6/26/03 due 7/25/03 (Collateralized by Corporate Obligations with principal amounts of $33,446,000, 5.3% - 7.35%, 7/3/06 - 6/1/28)	35,031,860		35,000,000
Lehman Brothers, Inc. At 1.15%, dated 6/26/03 due 7/29/03 (Collateralized by Corporate Obligations with principal amounts of $14,441,000, 6% - 9.5%, 12/15/05 - 8/01/29)	15,015,813		15,000,000
Morgan Stanley & Co. At 1.11%, dated 6/26/03 due 7/31/03 (Collateralized by Corporate Obligations with principal amounts of $30,210,132, 9.01% - 9.07%, 6/20/31 - 10/25/33)	25,026,979		25,000,000
TOTAL REPURCHASE AGREEMENTS		246,753,000

TOTAL INVESTMENT PORTFOLIO - 104.0%		2,585,834,267
NET OTHER ASSETS - (4.0)%		(99,330,919)
NET ASSETS - 100%	$ 2,486,503,348

Total Cost for Income Tax Purposes $ 2,585,834,267

Legend

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $25,000,000 or 1.0% of net assets.

(b) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. The due dates on these types of securities reflect the next interest rate reset date or, when applicable, the final maturity date.

Additional information on each holding is as follows:

Security	Acquisition Date	Cost
GE Capital Assurance Co. 1.43%, 7/1/03	7/30/02	$ 5,000,000
General Motors Acceptance Corp. Mortgage Credit 1.82%, 7/1/03	6/2/03	$ 30,000,000
Goldman Sachs Group, Inc.: 1.35%, 7/7/03	3/3/03	$ 15,000,000
1.38%, 8/12/03	2/11/03	$ 30,000,000
1.52%, 7/1/03	3/19/03 - 5/27/03	$ 23,000,000
Jackson National Life Insurance Co. 1.42%, 7/1/03	3/31/03	$ 7,000,000
Metropolitan Life Insurance Co.: 1.47%, 8/1/03	2/24/03	$ 5,000,000
1.48%, 7/1/03	3/26/02	$ 10,000,000
Monumental Life Insurance Co.: 1.46%, 7/1/03	9/17/98	$ 5,000,000
1.49%, 7/1/03	3/12/99	$ 5,000,000
New York Life Insurance Co. 1.42%, 7/1/03	2/28/02 - 12/19/02	$ 30,000,000
Pacific Life Insurance Co. 1.36%, 9/11/03	3/10/03	$ 5,000,000
Transamerica Occidental Life Insurance Co. 1.48%, 8/1/03	4/28/00	$ 10,000,000

(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

Other Information

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

Money Market Portfolio

Fidelity Variable Insurance Products: Money Market Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including repurchase agreements of $246,753,000) - See accompanying schedule		$ 2,585,834,267
Cash		52,810
Receivable for fund shares sold		4,276,205
Interest receivable		2,891,780
Total assets		2,593,055,062

Liabilities
Payable for investments purchased on a delayed delivery basis	$ 100,000,000
Payable for fund shares redeemed	5,837,396
Distributions payable	12,584
Accrued management fee	414,848
Distribution fees payable	11,006
Other payables and accrued expenses	275,880
Total liabilities		106,551,714

Net Assets		$ 2,486,503,348
Net Assets consist of:
Paid in capital		$ 2,486,553,445
Accumulated net realized gain (loss) on investments		(50,097)
Net Assets		$ 2,486,503,348

Initial Class: Net Asset Value, offering price and redemption price per share ($2,428,485,521 ÷ 2,428,432,000 shares)		$ 1.00

Service Class: Net Asset Value, offering price and redemption price per share ($8,566,463 ÷ 8,564,720 shares)		$ 1.00

Service Class 2: Net Asset Value, offering price and redemption price per share ($49,451,364 ÷ 49,452,930 shares)		$ 1.00

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Interest		$ 18,093,265

Expenses
Management fee	$ 2,664,601
Transfer agent fees	907,063
Distribution fees	64,391
Accounting fees and expenses	122,124
Non-interested trustees' compensation	5,570
Custodian fees and expenses	26,876
Audit	27,503
Legal	2,868
Miscellaneous	91,885
Total expenses before reductions	3,912,881
Expense reductions	(225)	3,912,656
Net investment income		14,180,609
Net realized gain (loss) on investment securities		(50,097)
Net increase in net assets resulting from operations		$ 14,130,512

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

Semiannual Report

Fidelity Variable Insurance Products: Money Market Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 14,180,609	$ 46,410,100
Net realized gain (loss)	(50,097)	87,888
Net increase (decrease) in net assets resulting from operations	14,130,512	46,497,988
Distributions to shareholders from net investment income	(14,180,609)	(46,410,100)
Share transactions - net increase (decrease)	(274,135,942)	(39,187,088)
Total increase (decrease) in net assets	(274,186,039)	(39,099,200)

Net Assets
Beginning of period	2,760,689,387	2,799,788,587
End of period	$ 2,486,503,348	$ 2,760,689,387

Other Information:
Share Transactions at a net asset value of $1.00 per share	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
Sold	4,180,185,892	3,515,483	67,426,377
Reinvested	13,934,846	39,209	193,387
Redeemed	(4,470,656,035)	(3,004,806)	(65,770,295)
Net increase (decrease)	(276,535,297)	549,886	1,849,469

Share Transactions at a net asset value of $1.00 per share	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
Sold	6,692,494,433	8,278,271	505,243,362
Reinvested	45,541,480	125,174	705,271
Redeemed	(6,786,431,592)	(6,531,366)	(498,612,121)
Net increase (decrease)	(48,395,679)	1,872,079	7,336,512

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 13,942,252	$ 39,209	$ 199,148

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 45,579,655	$ 125,174	$ 705,271

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

Money Market Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.005	.017	.041	.062	.050	.053
Distributions from net investment income	(.005)	(.017)	(.041)	(.062)	(.050)	(.053)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	.54%	1.69%	4.18%	6.30%	5.17%	5.46%
Ratios to Average Net Assets^E
Expenses before expense reductions	.30%^A	.29%	.28%	.33%	.27%	.30%
Expenses net of voluntary waivers, if any	.30%^A	.29%	.28%	.33%	.27%	.30%
Expenses net of all reductions	.30%^A	.29%	.28%	.33%	.27%	.30%
Net investment income	1.10%^A	1.68%	3.99%	6.18%	5.06%	5.33%
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,428,486	$ 2,705,069	$ 2,753,379	$ 2,233,342	$ 1,939,491	$ 1,507,489

^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 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 any voluntary 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.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^E
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.005	.016	.040	.031
Distributions from net investment income	(.005)	(.016)	(.040)	(.031)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	.49%	1.61%	4.10%	3.06%
Ratios to Average Net Assets^F
Expenses before expense reductions	.40%^A	.39%	.39%	.47%^A
Expenses net of voluntary waivers, if any	.40%^A	.39%	.39%	.45%^A
Expenses net of all reductions	.40%^A	.39%	.39%	.45%^A
Net investment income	.99%^A	1.58%	3.87%	6.28%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 8,566	$ 8,017	$ 6,143	$ 103

^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 For the period July 7, 2000 (commencement of sale of shares) to December 31, 2000.

^F 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 any voluntary 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.

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^E
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.004	.014	.039	.058
Distributions from net investment income	(.004)	(.014)	(.039)	(.058)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	.41%	1.45%	3.96%	5.89%
Ratios to Average Net Assets^F
Expenses before expense reductions	.55%^A	.54%	.55%	.96%^A
Expenses net of voluntary waivers, if any	.55%^A	.54%	.55%	.60%^A
Expenses net of all reductions	.55%^A	.54%	.55%	.60%^A
Net investment income	.84%^A	1.43%	3.71%	5.94%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 49,451	$ 47,604	$ 40,267	$ 108

^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 For the period January 12, 2000 (commencement of sale of shares) to December 31, 2000.

^F 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 any voluntary 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.

Money Market Portfolio

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

Money Market Portfolio (the fund) is a fund of Variable Insurance Products Fund (the trust) (referred to in this report as Fidelity Variable Insurance Products: Money Market Portfolio) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The fund offers the following classes of shares: Initial Class shares, Service Class shares 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.

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. As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein, securities are valued initially at cost and thereafter assume a constant amortization to maturity of any discount or premium. Investments in open-end investment companies are valued at their net asset value each business day.

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Income Tax Information and Distributions to Shareholders. Each year the fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date.

2. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (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. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. The fund may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations, corporate obligations and mortgage loan obligations which may be below investment-grade quality, and equity securities. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. 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 calculated on the basis of a group fee rate plus a total income-based component. The group fee rate averaged .13% 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. The total income-based component is calculated according to a graduated schedule providing for different rates based on the fund's gross annualized yield. The rate increases as the fund's gross yield increases.

During the period the income-based portion of this fee was $926,498 or annualized rate of .07% of the fund's average net assets. For the period, the fund's total annualized management fee rate was .20% 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	$ 4,047	\|
Service Class 2	60,344
	$ 64,391

For the period, the following amounts were paid to FIIOC:

Initial Class	$ 886,552	\|
Service Class	2,907
Service Class 2	17,604
	$ 907,063

4. Expense Reductions.

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 $225.

5. Other Information.

At the end of the period, FMR or its affiliates were the owners of record of 54% of the total outstanding shares of the fund.

Money Market Portfolio

Semiannual Report

Money Market Portfolio

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Adviser

Fidelity Investments Money Management, Inc.

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

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

Custodian

The Bank of New York
New York, NY

VIPMM-SANN-0803
1.705628.105

Fidelity® Variable Insurance Products:

Overseas Portfolio

Semiannual Report

June 30, 2003

(2_fidelity_logos) (Registered_Trademark)

Investment Summary	<Click Here>	A summary of the fund's investments at period end.
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.

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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 Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Nikko Cordial Corp. (Japan)	4.4
Nomura Holdings, Inc. (Japan)	4.0
Daiwa Securities Group, Inc. (Japan)	3.0
Total SA Series B (France)	2.4
Infineon Technologies AG (Germany)	2.4
	16.2
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	32.3
Information Technology	17.2
Health Care	9.0
Energy	9.1
Consumer Discretionary	9.0
Top Five Countries as of June 30, 2003
(excluding cash equivalents)	% of fund's net assets
Japan	24.6
United Kingdom	12.9
France	7.9
Germany	7.3
Switzerland	6.8

Percentages are adjusted for the effect of open futures contracts, if applicable.

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 92.2%
	Shares		Value (Note 1)
Australia - 1.1%
News Corp. Ltd. sponsored ADR	608,000		$ 15,212,160
Belgium - 0.2%
Fortis	131,300		2,285,824
Canada - 3.3%
Alcan, Inc.	138,300		4,310,716
Canadian Natural Resources Ltd.	137,000		5,463,533
EnCana Corp.	262,300		10,061,515
Precision Drilling Corp. (a)	99,600		3,755,507
Talisman Energy, Inc.	445,300		20,319,001
Tembec, Inc. (a)	200,800		1,214,216
TOTAL CANADA			45,124,488
Cayman Islands - 0.5%
Noble Corp. (a)	186,100		6,383,230
Denmark - 0.7%
Coloplast AS Series B	28,000		2,169,769
Novo Nordisk AS Series B	219,100		7,691,234
TOTAL DENMARK			9,861,003
Finland - 1.5%
Nokia Corp.	1,307,300		21,478,932
France - 7.9%
Alcatel SA sponsored ADR (a)	378,000		3,383,100
Aventis SA (France)	75,730		4,142,431
AXA SA	640,704		9,966,416
BNP Paribas SA	374,102		19,060,291
Credit Agricole SA	113,400		2,160,913
L'Air Liquide SA	17,900		2,660,759
Pechiney SA (a)	94,200		3,390,518
Pernod-Ricard	67,700		6,056,698
Sanofi-Synthelabo SA	53,800		3,159,211
Suez SA (France)	126,000		2,010,759
Television Francaise 1 SA	431,400		13,311,934
Total SA Series B	220,300		33,397,480
Vivendi Universal SA sponsored ADR	355,500		6,555,420
TOTAL FRANCE			109,255,930
Germany - 7.3%
Allianz AG (Reg.)	186,500		15,542,599
Altana AG sponsored ADR	59,900		3,713,800
BASF AG	87,400		3,743,524
Bayer AG	120,900		2,809,142
Deutsche Boerse AG	418,731		22,240,513
Deutsche Telekom AG sponsored ADR	570,300		8,668,560
Infineon Technologies AG (a)	3,417,200		33,129,030
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.)	110,000		11,244,342
TOTAL GERMANY			101,091,510

	Shares		Value (Note 1)
Hong Kong - 1.5%
China Mobile (Hong Kong) Ltd.	1,667,000		$ 3,924,118
CNOOC Ltd.	1,550,500		2,286,492
Hong Kong Exchanges & Clearing Ltd.	2,602,000		3,737,020
Hutchison Whampoa Ltd.	1,411,600		8,598,156
Techtronic Industries Co.	1,336,000		2,244,284
TOTAL HONG KONG			20,790,070
India - 0.8%
Dr. Reddy's Laboratories Ltd.	151,900		3,582,955
Housing Development Finance Corp. Ltd.	213,800		1,884,858
Infosys Technologies Ltd.	17,000		1,195,916
Ranbaxy Laboratories Ltd.	223,600		3,781,350
Satyam Computer Services Ltd.	294,600		1,220,994
TOTAL INDIA			11,666,073
Italy - 1.7%
Banca Intesa Spa	1,077,275		3,454,443
Telecom Italia Spa	1,601,324		14,534,395
Unicredito Italiano Spa	1,144,300		5,467,820
TOTAL ITALY			23,456,658
Japan - 24.6%
Advantest Corp.	138,600		6,160,515
Canon, Inc.	459,000		20,953,350
Credit Saison Co. Ltd.	284,900		4,686,842
Daikin Industries Ltd.	71,000		1,308,004
Daiwa Securities Group, Inc.	7,207,000		41,547,582
Fuji Photo Film Co. Ltd.	82,000		2,377,308
Ito-Yokado Co. Ltd.	569,000		13,667,600
JAFCO Co. Ltd.	199,800		11,351,324
KDDI Corp.	3,372		13,100,343
Konica Corp.	251,000		2,866,714
Kyocera Corp.	122,000		7,002,590
Kyorin Pharmaceutical Co. Ltd.	19,000		260,657
Matsushita Electric Industrial Co. Ltd.	306,000		3,075,300
Mitsubishi Securities Co. Ltd.	247,000		1,502,348
Mitsubishi Tokyo Financial Group, Inc. (MTFG)	1,441		6,599,780
Mizuho Financial Group, Inc. (a)	1,509		1,196,458
Murata Manufacturing Co. Ltd.	104,700		4,128,866
Nikko Cordial Corp.	15,261,000		61,457,117
Nikon Corp. (a)	373,000		3,082,104
Nissan Motor Co. Ltd.	962,300		9,117,793
Nomura Holdings, Inc.	4,341,000		55,273,491
ORIX Corp.	254,000		14,091,069
Rohm Co. Ltd.	101,500		11,100,635
Seiko Epson Corp.	10,300		307,219
Shin-Etsu Chemical Co. Ltd.	177,600		6,083,716
SMC Corp.	15,900		1,343,045
Sony Corp.	224,600		6,288,800
Sumitomo Electric Industries Ltd.	683,000		5,004,520
Sumitomo Mitsui Financial Group, Inc.	3,185		6,971,928
Common Stocks - continued
	Shares		Value (Note 1)
Japan - continued
Tokyo Electron Ltd.	281,000		$ 13,358,593
Toyota Motor Corp.	209,700		5,431,230
TOTAL JAPAN			340,696,841
Korea (South) - 2.1%
Kookmin Bank	25,810		777,540
Samsung Electronics Co. Ltd.	95,810		28,462,382
TOTAL KOREA (SOUTH)			29,239,922
Mexico - 1.3%
Grupo Televisa SA de CV sponsored ADR	268,600		9,266,700
Telefonos de Mexico SA de CV sponsored ADR	188,900		5,935,238
TV Azteca SA de CV sponsored ADR	334,000		2,171,000
TOTAL MEXICO			17,372,938
Netherlands - 5.3%
Akzo Nobel NV	141,800		3,768,237
ASML Holding NV (a)	2,522,400		24,114,157
ING Groep NV (Certificaten Van Aandelen)	1,166,524		20,449,161
Koninklijke Ahold NV (a)	357,900		2,979,382
Koninklijke Philips Electronics NV	312,500		5,971,876
STMicroelectronics NV (NY Shares)	75,500		1,569,645
VNU NV	344,700		10,648,494
Wolters Kluwer NV (Certificaten Van Aandelen)	263,100		3,180,800
TOTAL NETHERLANDS			72,681,752
Portugal - 0.2%
Banco Comercial Portugues SA (Reg.)	1,257,000		2,214,384
Russia - 0.8%
JSC MMC 'Norilsk Nickel' sponsored ADR	114,800		3,974,950
YUKOS Corp. sponsored ADR	123,000		6,844,950
TOTAL RUSSIA			10,819,900
Singapore - 0.5%
Flextronics International Ltd. (a)	732,300		7,608,597
South Africa - 0.3%
Harmony Gold Mining Co. Ltd. sponsored ADR	172,600		2,324,922
Sappi Ltd.	171,000		2,065,726
TOTAL SOUTH AFRICA			4,390,648
Spain - 2.6%
Altadis SA (Spain)	271,800		6,985,056
Banco Popular Espanol SA (Reg.)	164,200		8,318,635
Banco Santander Central Hispano SA	1,476,868		12,974,554
Inditex SA	152,575		3,847,279
Telefonica SA	356,284		4,105,581
TOTAL SPAIN			36,231,105

	Shares		Value (Note 1)
Sweden - 2.1%
Hennes & Mauritz AB (H&M) (B Shares)	100,000		$ 2,304,667
Nordea AB	1,077,600		5,209,970
Securitas AB (B Shares)	208,400		2,140,434
Telefonaktiebolaget LM Ericsson ADR (a)	1,808,800		19,227,544
TOTAL SWEDEN			28,882,615
Switzerland - 6.8%
Compagnie Financiere Richemont unit	130,930		2,122,089
Converium Holding AG	72,080		3,334,073
Credit Suisse Group (Reg.)	950,866		25,087,606
Novartis AG (Reg.)	677,650		26,977,245
Roche Holding AG (participation certificate)	220,010		17,300,224
Swiss Reinsurance Co. (Reg.)	114,517		6,360,643
UBS AG (Reg.)	173,934		9,699,472
Zurich Financial Services AG	20,970		2,506,405
TOTAL SWITZERLAND			93,387,757
Taiwan - 0.3%
Hon Hai Precision Industries Co. Ltd.	437,400		1,588,359
Taiwan Semiconductor Manufacturing Co. Ltd. (a)	1,643,782		2,711,099
TOTAL TAIWAN			4,299,458
United Kingdom - 12.9%
3i Group PLC	824,700		7,712,262
Abbey National PLC	960,800		7,482,212
AstraZeneca PLC (United Kingdom)	470,400		19,178,209
BHP Billiton PLC	821,100		4,335,349
BP PLC	1,673,300		11,718,684
Carlton Communications PLC	915,000		2,294,410
Centrica PLC	877,900		2,553,746
GlaxoSmithKline PLC	1,170,794		23,731,986
HBOS PLC	494,656		6,422,936
HSBC Holdings PLC (United Kingdom) (Reg.)	897,400		10,609,070
Kingfisher PLC	1,449,744		6,652,735
Lloyds TSB Group PLC	497,750		3,544,619
Man Group PLC	353,400		6,995,763
Prudential PLC	1,374,000		8,346,226
Reckitt Benckiser PLC	211,200		3,887,193
Reed Elsevier PLC	477,500		3,985,260
Rio Tinto PLC (Reg.)	408,200		7,811,930
Shire Pharmaceuticals Group PLC sponsored ADR (a)	196,300		3,867,110
Tesco PLC	1,949,778		7,075,581
Vodafone Group PLC	14,790,003		29,062,268
William Hill PLC	189,500		895,473
TOTAL UNITED KINGDOM			178,163,022
United States of America - 5.9%
Baker Hughes, Inc.	197,300		6,623,361
ENSCO International, Inc.	251,800		6,773,420
Common Stocks - continued
	Shares		Value (Note 1)
United States of America - continued
Freeport-McMoRan Copper & Gold, Inc. Class B	138,700		$ 3,398,150
Grant Prideco, Inc. (a)	373,900		4,393,325
Micron Technology, Inc. (a)	508,900		5,918,507
Motorola, Inc.	2,294,400		21,636,192
NTL, Inc. (a)	170,500		5,817,460
Smith International, Inc. (a)	23,900		878,086
Synthes-Stratec, Inc.	7,630		5,494,368
Transocean, Inc.	145,600		3,198,832
Tyco International Ltd.	826,000		15,677,480
Weatherford International Ltd. (a)	50,300		2,107,570
TOTAL UNITED STATES OF AMERICA			81,916,751
TOTAL COMMON STOCKS (Cost $1,192,538,495)		1,274,511,568
Investment Companies - 0.0%

Multi-National - 0.0%
European Warrant Fund, Inc. (Cost $1,867,790)	126,720		250,906
Money Market Funds - 7.7%

Fidelity Cash Central Fund, 1.18% (b)	86,546,907		86,546,907
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	19,136,267		19,136,267
TOTAL MONEY MARKET FUNDS (Cost $105,683,174)		105,683,174
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $1,300,089,459)			1,380,445,648
NET OTHER ASSETS - 0.1%			1,989,057
NET ASSETS - 100%		$ 1,382,434,705

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $439,949,301 and $509,450,883, respectively.

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 $1,325 for the period.

The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which loans were outstanding amounted to $13,944,600. The weighted average interest rate was 1.36%. At period end there were no interfund loans outstanding.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $559,394,000 of which $367,608,000 and $191,786,000 will expire on December 31, 2009 and 2010, respectively.

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

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $18,402,673) (cost $1,300,089,459) - See accompanying schedule		$ 1,380,445,648
Cash		6,898
Foreign currency held at value (cost $23,105,143)		23,056,141
Receivable for investments sold		146,583
Receivable for fund shares sold		6,211,537
Dividends receivable		2,277,638
Interest receivable		55,235
Redemption fees receivable		52
Other receivables		299,227
Total assets		1,412,498,959
Liabilities
Payable for investments purchased	$ 922,175
Payable for fund shares redeemed	8,839,331
Accrued management fee	865,544
Distribution fees payable	36,025
Other payables and accrued expenses	264,912
Collateral on securities loaned, at value	19,136,267
Total liabilities		30,064,254
Net Assets		$ 1,382,434,705
Net Assets consist of:
Paid in capital		$ 1,985,903,310
Undistributed net investment income		7,507,317
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(691,325,538)
Net unrealized appreciation (de- preciation) on investments and assets and liabilities in foreign currencies		80,349,616
Net Assets		$ 1,382,434,705
Initial Class: Net Asset Value, offering price and redemption price per share ($1,053,227,835 ÷ 87,782,326 shares)		$ 12.00
Service Class: Net Asset Value, offering price and redemption price per share ($190,562,947 ÷ 15,932,960 shares)		$ 11.96
Service Class 2: Net Asset Value, offering price and redemption price per share ($81,081,902 ÷ 6,789,004 shares)		$ 11.94
Initial Class R: Net Asset Value, offering price and redemption price per share ($22,702,948 ÷ 1,894,524 shares)		$ 11.98
Service Class R: Net Asset Value, offering price and redemption price per share ($29,817,155 ÷ 2,495,641 shares)		$ 11.95
Service Class 2R: Net Asset Value, offering price and redemption price per share ($5,041,918 ÷ 424,347 shares)		$ 11.88

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 17,838,642
Interest		540,140
Security lending		571,598
		18,950,380
Less foreign taxes withheld		(1,941,369)
Total income		17,009,011

Expenses
Management fee	$ 4,673,426
Transfer agent fees	455,200
Distribution fees	183,770
Accounting and security lending fees	331,104
Non-interested trustees' compensation	2,570
Depreciation in deferred trustee compensation account	(5,311)
Custodian fees and expenses	240,146
Audit	38,342
Legal	1,290
Interest	7,888
Miscellaneous	29,547
Total expenses before reductions	5,957,972
Expense reductions	(228,066)	5,729,906
Net investment income (loss)		11,279,105
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(95,209,723)
Foreign currency transactions	(241,917)
Total net realized gain (loss)		(95,451,640)
Change in net unrealized appreciation (depreciation) on: Investment securities	223,413,736
Assets and liabilities in foreign currencies	189,361
Total change in net unrealized appreciation (depreciation)		223,603,097
Net gain (loss)		128,151,457
Net increase (decrease) in net assets resulting from operations		$ 139,430,562

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

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 11,279,105	$ 12,214,036
Net realized gain (loss)	(95,451,640)	(174,115,283)
Change in net unrealized appreciation (depreciation)	223,603,097	(167,568,490)
Net increase (decrease) in net assets resulting from operations	139,430,562	(329,469,737)
Distributions to shareholders from net investment income	(11,225,102)	(12,564,381)
Share transactions - net increase (decrease)	(37,679,479)	(152,413,852)
Redemption fees	12,326	102,940
Total increase (decrease) in net assets	90,538,307	(494,345,030)

Net Assets
Beginning of period	1,291,896,398	1,786,241,428
End of period (including undistributed net investment income of $7,507,317 and undistributed net investment income of $5,142,046, respectively)	$ 1,382,434,705	$ 1,291,896,398

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
Shares	Initial Class	Service Class	Service Class 2	Initial Class R	Service Class R	Service Class 2R
Sold	80,264,567	28,729,931	34,523,817	628,568	929,310	277,652
Reinvested	891,621	140,448	26,238	15,499	17,531	2,278
Redeemed	(87,306,164)	(29,142,086)	(32,149,368)	(174,921)	(96,162)	(3,869)
Net increase (decrease)	(6,149,976)	(271,707)	2,400,687	469,146	850,679	276,061
Dollars
Sold	$ 867,955,197	$ 308,701,957	$ 365,448,719	$ 6,593,640	$ 9,771,885	$ 2,921,054
Reinvested	9,156,952	1,438,187	268,410	159,020	179,341	23,192
Redeemed	(951,198,138)	(314,422,120)	(341,701,212)	(1,894,882)	(1,040,087)	(40,594)
Net increase (decrease)	$ (74,085,989)	$ (4,281,976)	$ 24,015,917	$ 4,857,778	$ 8,911,139	$ 2,903,652

Share Transactions	Year ended December 31, 2002
Shares	Initial Class	Service Class	Service Class 2	Initial Class R^A	Service Class R^A	Service Class 2R^A
Sold	155,379,548	83,280,851	56,191,820	1,731,891	1,927,754	148,296
Reinvested	824,761	120,846	30,335	-	-	-
Redeemed	(170,119,744)	(84,583,414)	(55,371,184)	(306,513)	(282,792)	(10)
Net increase (decrease)	(13,915,435)	(1,181,717)	850,971	1,425,378	1,644,962	148,286
Dollars
Sold	$ 1,967,649,782	$ 1,080,032,631	$ 680,275,000	$ 22,005,065	$ 24,459,961	$ 1,672,814
Reinvested	10,622,916	1,552,870	388,594	-	-	-
Redeemed	(2,163,169,922)	(1,102,393,299)	(668,279,318)	(3,557,947)	(3,672,885)	(114)
Net increase (decrease)	$ (184,897,224)	$ (20,807,798)	$ 12,384,276	$ 18,447,118	$ 20,787,076	$ 1,672,700

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2	Initial Class R	Service Class R	Service Class 2R
From net investment income	$ 9,156,952	$ 1,438,187	$ 268,410	$ 159,020	$ 179,341	$ 23,192
From net realized gain	-	-	-	-	-	-
Total	$ 9,156,952	$ 1,438,187	$ 268,410	$ 159,020	$ 179,341	$ 23,192

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Initial Class R^A	Service Class R^A	Service Class 2R^A
From net investment income	$ 10,622,916	$ 1,552,871	$ 388,594	$ -	$ -	$ -
From net realized gain	-	-	-	-	-	-
Total	$ 10,622,916	$ 1,552,871	$ 388,594	$ -	$ -	$ -

^A For the period April 24, 2002 (commencement of sale of shares) to December 31, 2002.

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

Overseas Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.98	$ 13.88	$ 20.00	$ 27.44	$ 20.06	$ 19.20
Income from Investment Operations
Net investment income (loss)^E	.10	.10	.14	.19^F	.24	.23
Net realized and unrealized gain (loss)	1.02	(2.90)	(3.86)	(4.93)	7.95	2.13
Total from investment operations	1.12	(2.80)	(3.72)	(4.74)	8.19	2.36
Distributions from net investment income	(.10)	(.10)	(.93)	(.31)	(.31)	(.38)
Distributions in excess of net investment income	-	-	-	(.06)	-	-
Distributions from net realized gain	-	-	(1.47)	(2.33)	(.50)	(1.12)
Total distributions	(.10)	(.10)	(2.40)	(2.70)	(.81)	(1.50)
Redemption fees added to paid in capital^E,H	-	-	-	-	-	-
Net asset value, end of period	$ 12.00	$ 10.98	$ 13.88	$ 20.00	$ 27.44	$ 20.06
Total Return^B,C,D	10.35%	(20.28)%	(21.21)%	(19.07)%	42.55%	12.81%
Ratios to Average Net Assets^G
Expenses before expense reductions	.91%^A	.90%	.92%	.89%	.91%	.91%
Expenses net of voluntary waivers, if any	.91%^A	.90%	.92%	.89%	.91%	.91%
Expenses net of all reductions	.87%^A	.86%	.87%	.87%	.87%	.89%
Net investment income (loss)	1.80%^A	.79%	.91%	.84%	1.10%	1.19%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,053,228	$ 1,031,489	$ 1,496,873	$ 2,267,507	$ 2,736,851	$ 2,074,843
Portfolio turnover rate	72%^A	77%	98%	136%	78%	84%

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.94	$ 13.83	$ 19.94	$ 27.39	$ 20.04	$ 19.20
Income from Investment Operations
Net investment income (loss)^E	.09	.09	.12	.17^F	.22	.15
Net realized and unrealized gain (loss)	1.02	(2.89)	(3.84)	(4.93)	7.94	2.19
Total from investment operations	1.11	(2.80)	(3.72)	(4.76)	8.16	2.34
Distributions from net investment income	(.09)	(.09)	(.92)	(.30)	(.31)	(.38)
Distributions in excess of net investment income	-	-	-	(.06)	-	-
Distributions from net realized gain	-	-	(1.47)	(2.33)	(.50)	(1.12)
Total distributions	(.09)	(.09)	(2.39)	(2.69)	(.81)	(1.50)
Redemption fees added to paid in capital^E,H	-	-	-	-	-	-
Net asset value, end of period	$ 11.96	$ 10.94	$ 13.83	$ 19.94	$ 27.39	$ 20.04
Total Return^B,C,D	10.28%	(20.34)%	(21.27)%	(19.18)%	42.44%	12.69%
Ratios to Average Net Assets^G
Expenses before expense reductions	1.01%^A	1.00%	1.03%	.99%	1.01%	1.01%
Expenses net of voluntary waivers, if any	1.01%^A	1.00%	1.03%	.99%	1.01%	1.01%
Expenses net of all reductions	.97%^A	.96%	.97%	.97%	.98%	.97%
Net investment income (loss)	1.70%^A	.69%	.81%	.74%	1.00%	.80%
Supplemental Data
Net assets, end of period (000 omitted)	$ 190,563	$ 177,322	$ 240,525	$ 257,257	$ 144,371	$ 34,720
Portfolio turnover rate	72%^A	77%	98%	136%	78%	84%

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.90	$ 13.81	$ 19.91	$ 26.16
Income from Investment Operations
Net investment income (loss)^E	.08	.07	.10	.12^F
Net realized and unrealized gain (loss)	1.02	(2.88)	(3.80)	(3.68)
Total from investment operations	1.10	(2.81)	(3.70)	(3.56)
Distributions from net investment income	(.06)	(.10)	(.93)	(.30)
Distributions in excess of net investment income	-	-	-	(.06)
Distributions from net realized gain	-	-	(1.47)	(2.33)
Total distributions	(.06)	(.10)	(2.40)	(2.69)
Redemption fees added to paid in capital^E,I	-	-	-	-
Net asset value, end of period	$ 11.94	$ 10.90	$ 13.81	$ 19.91
Total Return^B,C,D	10.18%	(20.46)%	(21.20)%	(15.50)%
Ratios to Average Net Assets^H
Expenses before expense reductions	1.17%^A	1.16%	1.18%	1.15%^A
Expenses net of voluntary waivers, if any	1.17%^A	1.16%	1.18%	1.15%^A
Expenses net of all reductions	1.13%^A	1.12%	1.12%	1.13%^A
Net investment income (loss)	1.54%^A	.53%	.65%	.58%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 81,082	$ 47,824	$ 48,843	$ 12,351
Portfolio turnover rate	72%^A	77%	98%	136%

Financial Highlights - Initial Class R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.98	$ 14.05
Income from Investment Operations
Net investment income (loss)^E	.10	.06
Net realized and unrealized gain (loss)	1.01	(3.13)
Total from investment operations	1.11	(3.07)
Distributions from net investment income	(.11)	-
Redemption fees added to paid in capital^E,H	-	-
Net asset value, end of period	$ 11.98	$ 10.98
Total Return^B,C,D	10.28%	(21.85)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.90%^A	.91%^A
Expenses net of voluntary waivers, if any	.90%^A	.91%^A
Expenses net of all reductions	.87%^A	.87%^A
Net investment income (loss)	1.80%^A	.79%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 22,703	$ 15,649
Portfolio turnover rate	72%^A	77%

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

Semiannual Report

Financial Highlights - Service Class R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.94	$ 14.01
Income from Investment Operations
Net investment income (loss)^E	.09	.05
Net realized and unrealized gain (loss)	1.02	(3.12)
Total from investment operations	1.11	(3.07)
Distributions from net investment income	(.10)	-
Redemption fees added to paid in capital^E,H	-	-
Net asset value, end of period	$ 11.95	$ 10.94
Total Return^B,C,D	10.30%	(21.91)%
Ratios to Average Net Assets^G
Expenses before expense reductions	1.00%^A	1.01%^A
Expenses net of voluntary waivers, if any	1.00%^A	1.01%^A
Expenses net of all reductions	.97%^A	.97%^A
Net investment income (loss)	1.70%^A	.69%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 29,817	$ 17,997
Portfolio turnover rate	72%^A	77%

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.90	$ 13.96
Income from Investment Operations
Net investment income (loss)^E	.08	.04
Net realized and unrealized gain (loss)	1.01	(3.10)
Total from investment operations	1.09	(3.06)
Distributions from net investment income	(.11)	-
Redemption fees added to paid in capital^{E, H}	-	-
Net asset value, end of period	$ 11.88	$ 10.90
Total Return^B,C,D	10.17%	(21.92)%
Ratios to Average Net Assets^G
Expenses before expense reductions	1.16%^A	1.17%^A
Expenses net of voluntary waivers, if any	1.16%^A	1.17%^A
Expenses net of all reductions	1.12%^A	1.14%^A
Net investment income (loss)	1.55%^A	.52%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 5,042	$ 1,616
Portfolio turnover rate	72%^A	77%

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

Overseas Portfolio

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

Overseas Portfolio (the fund) is a fund of Variable Insurance Products Fund (the trust) (referred to in this report as Fidelity Variable Insurance Products: Overseas Portfolio) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Initial Class R shares, Service Class R shares and Service Class 2R 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.

Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. 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. Investments in open-end investment companies are valued at their net asset value each business day.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

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 and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, capital loss carryforwards and losses deferred due to wash sales.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 212,315,773	\|
Unrealized depreciation	(152,066,073)
Net unrealized appreciation (depreciation)	$ 60,249,700
Cost for federal income tax purposes	$ 1,320,195,948

Trading (Redemption) Fees. Initial Class R shares, Service Class R shares and Service Class 2R shares held less than 60 days are subject to a short-term trading fee equal to 1% of the proceeds of the redeemed shares. The fee, which is retained by the fund, is accounted for as an addition to paid in capital.

2. Operating Policies.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. 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 .45% of the fund's average net assets and a group fee rate that averaged .28% 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 annualized management fee rate was .73% 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's and Service Class R's average net assets and .25% of Service Class 2's and Service Class 2R'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	$ 87,478	\|
Service Class 2	81,034
Service Class R	11,183
Service Class 2R	4,075
	$ 183,770

Overseas Portfolio

4. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, the following amounts were paid to FIIOC:

Initial Class	$ 350,246	\|
Service Class	63,373
Service Class 2	26,334
Initial Class R	6,227
Service Class R	7,837
Service Class 2R	1,183
	$ 455,200

5. Committed Line of Credit.

6. Security Lending.

7. 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 $226,906 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 $1,160.

8. Other Information.

Overseas Portfolio

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

Fidelity Management & Research (Far East) Inc.

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

Fidelity Investments Japan Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VIPOVRS-SANN-0803
1.705696.105

Fidelity® Variable Insurance Products:

Overseas Portfolio - Class R

Semiannual Report

June 30, 2003

(2_fidelity_logos) (Registered_Trademark)

Investment Summary	<Click Here>	A summary of the fund's investments at period end.
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.

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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 Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Neither the fund nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Nikko Cordial Corp. (Japan)	4.4
Nomura Holdings, Inc. (Japan)	4.0
Daiwa Securities Group, Inc. (Japan)	3.0
Total SA Series B (France)	2.4
Infineon Technologies AG (Germany)	2.4
	16.2
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	32.3
Information Technology	17.2
Health Care	9.0
Energy	9.1
Consumer Discretionary	9.0
Top Five Countries as of June 30, 2003
(excluding cash equivalents)	% of fund's net assets
Japan	24.6
United Kingdom	12.9
France	7.9
Germany	7.3
Switzerland	6.8

Percentages are adjusted for the effect of open futures contracts, if applicable.

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 92.2%
	Shares		Value (Note 1)
Australia - 1.1%
News Corp. Ltd. sponsored ADR	608,000		$ 15,212,160
Belgium - 0.2%
Fortis	131,300		2,285,824
Canada - 3.3%
Alcan, Inc.	138,300		4,310,716
Canadian Natural Resources Ltd.	137,000		5,463,533
EnCana Corp.	262,300		10,061,515
Precision Drilling Corp. (a)	99,600		3,755,507
Talisman Energy, Inc.	445,300		20,319,001
Tembec, Inc. (a)	200,800		1,214,216
TOTAL CANADA			45,124,488
Cayman Islands - 0.5%
Noble Corp. (a)	186,100		6,383,230
Denmark - 0.7%
Coloplast AS Series B	28,000		2,169,769
Novo Nordisk AS Series B	219,100		7,691,234
TOTAL DENMARK			9,861,003
Finland - 1.5%
Nokia Corp.	1,307,300		21,478,932
France - 7.9%
Alcatel SA sponsored ADR (a)	378,000		3,383,100
Aventis SA (France)	75,730		4,142,431
AXA SA	640,704		9,966,416
BNP Paribas SA	374,102		19,060,291
Credit Agricole SA	113,400		2,160,913
L'Air Liquide SA	17,900		2,660,759
Pechiney SA (a)	94,200		3,390,518
Pernod-Ricard	67,700		6,056,698
Sanofi-Synthelabo SA	53,800		3,159,211
Suez SA (France)	126,000		2,010,759
Television Francaise 1 SA	431,400		13,311,934
Total SA Series B	220,300		33,397,480
Vivendi Universal SA sponsored ADR	355,500		6,555,420
TOTAL FRANCE			109,255,930
Germany - 7.3%
Allianz AG (Reg.)	186,500		15,542,599
Altana AG sponsored ADR	59,900		3,713,800
BASF AG	87,400		3,743,524
Bayer AG	120,900		2,809,142
Deutsche Boerse AG	418,731		22,240,513
Deutsche Telekom AG sponsored ADR	570,300		8,668,560
Infineon Technologies AG (a)	3,417,200		33,129,030
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.)	110,000		11,244,342
TOTAL GERMANY			101,091,510

	Shares		Value (Note 1)
Hong Kong - 1.5%
China Mobile (Hong Kong) Ltd.	1,667,000		$ 3,924,118
CNOOC Ltd.	1,550,500		2,286,492
Hong Kong Exchanges & Clearing Ltd.	2,602,000		3,737,020
Hutchison Whampoa Ltd.	1,411,600		8,598,156
Techtronic Industries Co.	1,336,000		2,244,284
TOTAL HONG KONG			20,790,070
India - 0.8%
Dr. Reddy's Laboratories Ltd.	151,900		3,582,955
Housing Development Finance Corp. Ltd.	213,800		1,884,858
Infosys Technologies Ltd.	17,000		1,195,916
Ranbaxy Laboratories Ltd.	223,600		3,781,350
Satyam Computer Services Ltd.	294,600		1,220,994
TOTAL INDIA			11,666,073
Italy - 1.7%
Banca Intesa Spa	1,077,275		3,454,443
Telecom Italia Spa	1,601,324		14,534,395
Unicredito Italiano Spa	1,144,300		5,467,820
TOTAL ITALY			23,456,658
Japan - 24.6%
Advantest Corp.	138,600		6,160,515
Canon, Inc.	459,000		20,953,350
Credit Saison Co. Ltd.	284,900		4,686,842
Daikin Industries Ltd.	71,000		1,308,004
Daiwa Securities Group, Inc.	7,207,000		41,547,582
Fuji Photo Film Co. Ltd.	82,000		2,377,308
Ito-Yokado Co. Ltd.	569,000		13,667,600
JAFCO Co. Ltd.	199,800		11,351,324
KDDI Corp.	3,372		13,100,343
Konica Corp.	251,000		2,866,714
Kyocera Corp.	122,000		7,002,590
Kyorin Pharmaceutical Co. Ltd.	19,000		260,657
Matsushita Electric Industrial Co. Ltd.	306,000		3,075,300
Mitsubishi Securities Co. Ltd.	247,000		1,502,348
Mitsubishi Tokyo Financial Group, Inc. (MTFG)	1,441		6,599,780
Mizuho Financial Group, Inc. (a)	1,509		1,196,458
Murata Manufacturing Co. Ltd.	104,700		4,128,866
Nikko Cordial Corp.	15,261,000		61,457,117
Nikon Corp. (a)	373,000		3,082,104
Nissan Motor Co. Ltd.	962,300		9,117,793
Nomura Holdings, Inc.	4,341,000		55,273,491
ORIX Corp.	254,000		14,091,069
Rohm Co. Ltd.	101,500		11,100,635
Seiko Epson Corp.	10,300		307,219
Shin-Etsu Chemical Co. Ltd.	177,600		6,083,716
SMC Corp.	15,900		1,343,045
Sony Corp.	224,600		6,288,800
Sumitomo Electric Industries Ltd.	683,000		5,004,520
Sumitomo Mitsui Financial Group, Inc.	3,185		6,971,928
Common Stocks - continued
	Shares		Value (Note 1)
Japan - continued
Tokyo Electron Ltd.	281,000		$ 13,358,593
Toyota Motor Corp.	209,700		5,431,230
TOTAL JAPAN			340,696,841
Korea (South) - 2.1%
Kookmin Bank	25,810		777,540
Samsung Electronics Co. Ltd.	95,810		28,462,382
TOTAL KOREA (SOUTH)			29,239,922
Mexico - 1.3%
Grupo Televisa SA de CV sponsored ADR	268,600		9,266,700
Telefonos de Mexico SA de CV sponsored ADR	188,900		5,935,238
TV Azteca SA de CV sponsored ADR	334,000		2,171,000
TOTAL MEXICO			17,372,938
Netherlands - 5.3%
Akzo Nobel NV	141,800		3,768,237
ASML Holding NV (a)	2,522,400		24,114,157
ING Groep NV (Certificaten Van Aandelen)	1,166,524		20,449,161
Koninklijke Ahold NV (a)	357,900		2,979,382
Koninklijke Philips Electronics NV	312,500		5,971,876
STMicroelectronics NV (NY Shares)	75,500		1,569,645
VNU NV	344,700		10,648,494
Wolters Kluwer NV (Certificaten Van Aandelen)	263,100		3,180,800
TOTAL NETHERLANDS			72,681,752
Portugal - 0.2%
Banco Comercial Portugues SA (Reg.)	1,257,000		2,214,384
Russia - 0.8%
JSC MMC 'Norilsk Nickel' sponsored ADR	114,800		3,974,950
YUKOS Corp. sponsored ADR	123,000		6,844,950
TOTAL RUSSIA			10,819,900
Singapore - 0.5%
Flextronics International Ltd. (a)	732,300		7,608,597
South Africa - 0.3%
Harmony Gold Mining Co. Ltd. sponsored ADR	172,600		2,324,922
Sappi Ltd.	171,000		2,065,726
TOTAL SOUTH AFRICA			4,390,648
Spain - 2.6%
Altadis SA (Spain)	271,800		6,985,056
Banco Popular Espanol SA (Reg.)	164,200		8,318,635
Banco Santander Central Hispano SA	1,476,868		12,974,554
Inditex SA	152,575		3,847,279
Telefonica SA	356,284		4,105,581
TOTAL SPAIN			36,231,105

	Shares		Value (Note 1)
Sweden - 2.1%
Hennes & Mauritz AB (H&M) (B Shares)	100,000		$ 2,304,667
Nordea AB	1,077,600		5,209,970
Securitas AB (B Shares)	208,400		2,140,434
Telefonaktiebolaget LM Ericsson ADR (a)	1,808,800		19,227,544
TOTAL SWEDEN			28,882,615
Switzerland - 6.8%
Compagnie Financiere Richemont unit	130,930		2,122,089
Converium Holding AG	72,080		3,334,073
Credit Suisse Group (Reg.)	950,866		25,087,606
Novartis AG (Reg.)	677,650		26,977,245
Roche Holding AG (participation certificate)	220,010		17,300,224
Swiss Reinsurance Co. (Reg.)	114,517		6,360,643
UBS AG (Reg.)	173,934		9,699,472
Zurich Financial Services AG	20,970		2,506,405
TOTAL SWITZERLAND			93,387,757
Taiwan - 0.3%
Hon Hai Precision Industries Co. Ltd.	437,400		1,588,359
Taiwan Semiconductor Manufacturing Co. Ltd. (a)	1,643,782		2,711,099
TOTAL TAIWAN			4,299,458
United Kingdom - 12.9%
3i Group PLC	824,700		7,712,262
Abbey National PLC	960,800		7,482,212
AstraZeneca PLC (United Kingdom)	470,400		19,178,209
BHP Billiton PLC	821,100		4,335,349
BP PLC	1,673,300		11,718,684
Carlton Communications PLC	915,000		2,294,410
Centrica PLC	877,900		2,553,746
GlaxoSmithKline PLC	1,170,794		23,731,986
HBOS PLC	494,656		6,422,936
HSBC Holdings PLC (United Kingdom) (Reg.)	897,400		10,609,070
Kingfisher PLC	1,449,744		6,652,735
Lloyds TSB Group PLC	497,750		3,544,619
Man Group PLC	353,400		6,995,763
Prudential PLC	1,374,000		8,346,226
Reckitt Benckiser PLC	211,200		3,887,193
Reed Elsevier PLC	477,500		3,985,260
Rio Tinto PLC (Reg.)	408,200		7,811,930
Shire Pharmaceuticals Group PLC sponsored ADR (a)	196,300		3,867,110
Tesco PLC	1,949,778		7,075,581
Vodafone Group PLC	14,790,003		29,062,268
William Hill PLC	189,500		895,473
TOTAL UNITED KINGDOM			178,163,022
United States of America - 5.9%
Baker Hughes, Inc.	197,300		6,623,361
ENSCO International, Inc.	251,800		6,773,420
Common Stocks - continued
	Shares		Value (Note 1)
United States of America - continued
Freeport-McMoRan Copper & Gold, Inc. Class B	138,700		$ 3,398,150
Grant Prideco, Inc. (a)	373,900		4,393,325
Micron Technology, Inc. (a)	508,900		5,918,507
Motorola, Inc.	2,294,400		21,636,192
NTL, Inc. (a)	170,500		5,817,460
Smith International, Inc. (a)	23,900		878,086
Synthes-Stratec, Inc.	7,630		5,494,368
Transocean, Inc.	145,600		3,198,832
Tyco International Ltd.	826,000		15,677,480
Weatherford International Ltd. (a)	50,300		2,107,570
TOTAL UNITED STATES OF AMERICA			81,916,751
TOTAL COMMON STOCKS (Cost $1,192,538,495)		1,274,511,568
Investment Companies - 0.0%

Multi-National - 0.0%
European Warrant Fund, Inc. (Cost $1,867,790)	126,720		250,906
Money Market Funds - 7.7%

Fidelity Cash Central Fund, 1.18% (b)	86,546,907		86,546,907
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	19,136,267		19,136,267
TOTAL MONEY MARKET FUNDS (Cost $105,683,174)		105,683,174
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $1,300,089,459)			1,380,445,648
NET OTHER ASSETS - 0.1%			1,989,057
NET ASSETS - 100%		$ 1,382,434,705

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $439,949,301 and $509,450,883, respectively.

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 $1,325 for the period.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $559,394,000 of which $367,608,000 and $191,786,000 will expire on December 31, 2009 and 2010, respectively.

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

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $18,402,673) (cost $1,300,089,459) - See accompanying schedule		$ 1,380,445,648
Cash		6,898
Foreign currency held at value (cost $23,105,143)		23,056,141
Receivable for investments sold		146,583
Receivable for fund shares sold		6,211,537
Dividends receivable		2,277,638
Interest receivable		55,235
Redemption fees receivable		52
Other receivables		299,227
Total assets		1,412,498,959
Liabilities
Payable for investments purchased	$ 922,175
Payable for fund shares redeemed	8,839,331
Accrued management fee	865,544
Distribution fees payable	36,025
Other payables and accrued expenses	264,912
Collateral on securities loaned, at value	19,136,267
Total liabilities		30,064,254
Net Assets		$ 1,382,434,705
Net Assets consist of:
Paid in capital		$ 1,985,903,310
Undistributed net investment income		7,507,317
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(691,325,538)
Net unrealized appreciation (de- preciation) on investments and assets and liabilities in foreign currencies		80,349,616
Net Assets		$ 1,382,434,705
Initial Class: Net Asset Value, offering price and redemption price per share ($1,053,227,835 ÷ 87,782,326 shares)		$ 12.00
Service Class: Net Asset Value, offering price and redemption price per share ($190,562,947 ÷ 15,932,960 shares)		$ 11.96
Service Class 2: Net Asset Value, offering price and redemption price per share ($81,081,902 ÷ 6,789,004 shares)		$ 11.94
Initial Class R: Net Asset Value, offering price and redemption price per share ($22,702,948 ÷ 1,894,524 shares)		$ 11.98
Service Class R: Net Asset Value, offering price and redemption price per share ($29,817,155 ÷ 2,495,641 shares)		$ 11.95
Service Class 2R: Net Asset Value, offering price and redemption price per share ($5,041,918 ÷ 424,347 shares)		$ 11.88

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 17,838,642
Interest		540,140
Security lending		571,598
		18,950,380
Less foreign taxes withheld		(1,941,369)
Total income		17,009,011

Expenses
Management fee	$ 4,673,426
Transfer agent fees	455,200
Distribution fees	183,770
Accounting and security lending fees	331,104
Non-interested trustees' compensation	2,570
Depreciation in deferred trustee compensation account	(5,311)
Custodian fees and expenses	240,146
Audit	38,342
Legal	1,290
Interest	7,888
Miscellaneous	29,547
Total expenses before reductions	5,957,972
Expense reductions	(228,066)	5,729,906
Net investment income (loss)		11,279,105
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(95,209,723)
Foreign currency transactions	(241,917)
Total net realized gain (loss)		(95,451,640)
Change in net unrealized appreciation (depreciation) on: Investment securities	223,413,736
Assets and liabilities in foreign currencies	189,361
Total change in net unrealized appreciation (depreciation)		223,603,097
Net gain (loss)		128,151,457
Net increase (decrease) in net assets resulting from operations		$ 139,430,562

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

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 11,279,105	$ 12,214,036
Net realized gain (loss)	(95,451,640)	(174,115,283)
Change in net unrealized appreciation (depreciation)	223,603,097	(167,568,490)
Net increase (decrease) in net assets resulting from operations	139,430,562	(329,469,737)
Distributions to shareholders from net investment income	(11,225,102)	(12,564,381)
Share transactions - net increase (decrease)	(37,679,479)	(152,413,852)
Redemption fees	12,326	102,940
Total increase (decrease) in net assets	90,538,307	(494,345,030)

Net Assets
Beginning of period	1,291,896,398	1,786,241,428
End of period (including undistributed net investment income of $7,507,317 and undistributed net investment income of $5,142,046, respectively)	$ 1,382,434,705	$ 1,291,896,398

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
Shares	Initial Class	Service Class	Service Class 2	Initial Class R	Service Class R	Service Class 2R
Sold	80,264,567	28,729,931	34,523,817	628,568	929,310	277,652
Reinvested	891,621	140,448	26,238	15,499	17,531	2,278
Redeemed	(87,306,164)	(29,142,086)	(32,149,368)	(174,921)	(96,162)	(3,869)
Net increase (decrease)	(6,149,976)	(271,707)	2,400,687	469,146	850,679	276,061
Dollars
Sold	$ 867,955,197	$ 308,701,957	$ 365,448,719	$ 6,593,640	$ 9,771,885	$ 2,921,054
Reinvested	9,156,952	1,438,187	268,410	159,020	179,341	23,192
Redeemed	(951,198,138)	(314,422,120)	(341,701,212)	(1,894,882)	(1,040,087)	(40,594)
Net increase (decrease)	$ (74,085,989)	$ (4,281,976)	$ 24,015,917	$ 4,857,778	$ 8,911,139	$ 2,903,652

Share Transactions	Year ended December 31, 2002
Shares	Initial Class	Service Class	Service Class 2	Initial Class R^A	Service Class R^A	Service Class 2R^A
Sold	155,379,548	83,280,851	56,191,820	1,731,891	1,927,754	148,296
Reinvested	824,761	120,846	30,335	-	-	-
Redeemed	(170,119,744)	(84,583,414)	(55,371,184)	(306,513)	(282,792)	(10)
Net increase (decrease)	(13,915,435)	(1,181,717)	850,971	1,425,378	1,644,962	148,286
Dollars
Sold	$ 1,967,649,782	$ 1,080,032,631	$ 680,275,000	$ 22,005,065	$ 24,459,961	$ 1,672,814
Reinvested	10,622,916	1,552,870	388,594	-	-	-
Redeemed	(2,163,169,922)	(1,102,393,299)	(668,279,318)	(3,557,947)	(3,672,885)	(114)
Net increase (decrease)	$ (184,897,224)	$ (20,807,798)	$ 12,384,276	$ 18,447,118	$ 20,787,076	$ 1,672,700

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2	Initial Class R	Service Class R	Service Class 2R
From net investment income	$ 9,156,952	$ 1,438,187	$ 268,410	$ 159,020	$ 179,341	$ 23,192
From net realized gain	-	-	-	-	-	-
Total	$ 9,156,952	$ 1,438,187	$ 268,410	$ 159,020	$ 179,341	$ 23,192

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Initial Class R^A	Service Class R^A	Service Class 2R^A
From net investment income	$ 10,622,916	$ 1,552,871	$ 388,594	$ -	$ -	$ -
From net realized gain	-	-	-	-	-	-
Total	$ 10,622,916	$ 1,552,871	$ 388,594	$ -	$ -	$ -

^A For the period April 24, 2002 (commencement of sale of shares) to December 31, 2002.

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

Overseas Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.98	$ 13.88	$ 20.00	$ 27.44	$ 20.06	$ 19.20
Income from Investment Operations
Net investment income (loss)^E	.10	.10	.14	.19^F	.24	.23
Net realized and unrealized gain (loss)	1.02	(2.90)	(3.86)	(4.93)	7.95	2.13
Total from investment operations	1.12	(2.80)	(3.72)	(4.74)	8.19	2.36
Distributions from net investment income	(.10)	(.10)	(.93)	(.31)	(.31)	(.38)
Distributions in excess of net investment income	-	-	-	(.06)	-	-
Distributions from net realized gain	-	-	(1.47)	(2.33)	(.50)	(1.12)
Total distributions	(.10)	(.10)	(2.40)	(2.70)	(.81)	(1.50)
Redemption fees added to paid in capital^E,H	-	-	-	-	-	-
Net asset value, end of period	$ 12.00	$ 10.98	$ 13.88	$ 20.00	$ 27.44	$ 20.06
Total Return^B,C,D	10.35%	(20.28)%	(21.21)%	(19.07)%	42.55%	12.81%
Ratios to Average Net Assets^G
Expenses before expense reductions	.91%^A	.90%	.92%	.89%	.91%	.91%
Expenses net of voluntary waivers, if any	.91%^A	.90%	.92%	.89%	.91%	.91%
Expenses net of all reductions	.87%^A	.86%	.87%	.87%	.87%	.89%
Net investment income (loss)	1.80%^A	.79%	.91%	.84%	1.10%	1.19%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,053,228	$ 1,031,489	$ 1,496,873	$ 2,267,507	$ 2,736,851	$ 2,074,843
Portfolio turnover rate	72%^A	77%	98%	136%	78%	84%

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.94	$ 13.83	$ 19.94	$ 27.39	$ 20.04	$ 19.20
Income from Investment Operations
Net investment income (loss)^E	.09	.09	.12	.17^F	.22	.15
Net realized and unrealized gain (loss)	1.02	(2.89)	(3.84)	(4.93)	7.94	2.19
Total from investment operations	1.11	(2.80)	(3.72)	(4.76)	8.16	2.34
Distributions from net investment income	(.09)	(.09)	(.92)	(.30)	(.31)	(.38)
Distributions in excess of net investment income	-	-	-	(.06)	-	-
Distributions from net realized gain	-	-	(1.47)	(2.33)	(.50)	(1.12)
Total distributions	(.09)	(.09)	(2.39)	(2.69)	(.81)	(1.50)
Redemption fees added to paid in capital^E,H	-	-	-	-	-	-
Net asset value, end of period	$ 11.96	$ 10.94	$ 13.83	$ 19.94	$ 27.39	$ 20.04
Total Return^B,C,D	10.28%	(20.34)%	(21.27)%	(19.18)%	42.44%	12.69%
Ratios to Average Net Assets^G
Expenses before expense reductions	1.01%^A	1.00%	1.03%	.99%	1.01%	1.01%
Expenses net of voluntary waivers, if any	1.01%^A	1.00%	1.03%	.99%	1.01%	1.01%
Expenses net of all reductions	.97%^A	.96%	.97%	.97%	.98%	.97%
Net investment income (loss)	1.70%^A	.69%	.81%	.74%	1.00%	.80%
Supplemental Data
Net assets, end of period (000 omitted)	$ 190,563	$ 177,322	$ 240,525	$ 257,257	$ 144,371	$ 34,720
Portfolio turnover rate	72%^A	77%	98%	136%	78%	84%

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.90	$ 13.81	$ 19.91	$ 26.16
Income from Investment Operations
Net investment income (loss)^E	.08	.07	.10	.12^F
Net realized and unrealized gain (loss)	1.02	(2.88)	(3.80)	(3.68)
Total from investment operations	1.10	(2.81)	(3.70)	(3.56)
Distributions from net investment income	(.06)	(.10)	(.93)	(.30)
Distributions in excess of net investment income	-	-	-	(.06)
Distributions from net realized gain	-	-	(1.47)	(2.33)
Total distributions	(.06)	(.10)	(2.40)	(2.69)
Redemption fees added to paid in capital^E,I	-	-	-	-
Net asset value, end of period	$ 11.94	$ 10.90	$ 13.81	$ 19.91
Total Return^B,C,D	10.18%	(20.46)%	(21.20)%	(15.50)%
Ratios to Average Net Assets^H
Expenses before expense reductions	1.17%^A	1.16%	1.18%	1.15%^A
Expenses net of voluntary waivers, if any	1.17%^A	1.16%	1.18%	1.15%^A
Expenses net of all reductions	1.13%^A	1.12%	1.12%	1.13%^A
Net investment income (loss)	1.54%^A	.53%	.65%	.58%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 81,082	$ 47,824	$ 48,843	$ 12,351
Portfolio turnover rate	72%^A	77%	98%	136%

Financial Highlights - Initial Class R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.98	$ 14.05
Income from Investment Operations
Net investment income (loss)^E	.10	.06
Net realized and unrealized gain (loss)	1.01	(3.13)
Total from investment operations	1.11	(3.07)
Distributions from net investment income	(.11)	-
Redemption fees added to paid in capital^E,H	-	-
Net asset value, end of period	$ 11.98	$ 10.98
Total Return^B,C,D	10.28%	(21.85)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.90%^A	.91%^A
Expenses net of voluntary waivers, if any	.90%^A	.91%^A
Expenses net of all reductions	.87%^A	.87%^A
Net investment income (loss)	1.80%^A	.79%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 22,703	$ 15,649
Portfolio turnover rate	72%^A	77%

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

Semiannual Report

Financial Highlights - Service Class R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.94	$ 14.01
Income from Investment Operations
Net investment income (loss)^E	.09	.05
Net realized and unrealized gain (loss)	1.02	(3.12)
Total from investment operations	1.11	(3.07)
Distributions from net investment income	(.10)	-
Redemption fees added to paid in capital^E,H	-	-
Net asset value, end of period	$ 11.95	$ 10.94
Total Return^B,C,D	10.30%	(21.91)%
Ratios to Average Net Assets^G
Expenses before expense reductions	1.00%^A	1.01%^A
Expenses net of voluntary waivers, if any	1.00%^A	1.01%^A
Expenses net of all reductions	.97%^A	.97%^A
Net investment income (loss)	1.70%^A	.69%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 29,817	$ 17,997
Portfolio turnover rate	72%^A	77%

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.90	$ 13.96
Income from Investment Operations
Net investment income (loss)^E	.08	.04
Net realized and unrealized gain (loss)	1.01	(3.10)
Total from investment operations	1.09	(3.06)
Distributions from net investment income	(.11)	-
Redemption fees added to paid in capital^{E, H}	-	-
Net asset value, end of period	$ 11.88	$ 10.90
Total Return^B,C,D	10.17%	(21.92)%
Ratios to Average Net Assets^G
Expenses before expense reductions	1.16%^A	1.17%^A
Expenses net of voluntary waivers, if any	1.16%^A	1.17%^A
Expenses net of all reductions	1.12%^A	1.14%^A
Net investment income (loss)	1.55%^A	.52%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 5,042	$ 1,616
Portfolio turnover rate	72%^A	77%

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

Overseas Portfolio

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

Security Valuation. Net asset value per share (NAV calculation) is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Equity securities for which market quotations are available are valued at the last sale price or official closing price (closing bid price or last evaluated quote if no sale has occurred) on the primary market or exchange on which they trade. If an event that is expected to materially affect the value of a security occurs after the close of an exchange or market on which that security trades, but prior to the NAV calculation, then that security will be fair valued taking the event into account. Securities (including restricted securities) for which market quotations are not readily available are valued at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading may be reviewed in the course of making a good faith determination of a security's fair value. 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. Investments in open-end investment companies are valued at their net asset value each business day.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

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 and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, capital loss carryforwards and losses deferred due to wash sales.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 212,315,773	\|
Unrealized depreciation	(152,066,073)
Net unrealized appreciation (depreciation)	$ 60,249,700
Cost for federal income tax purposes	$ 1,320,195,948

2. Operating Policies.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. 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.

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's and Service Class R's average net assets and .25% of Service Class 2's and Service Class 2R'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	$ 87,478	\|
Service Class 2	81,034
Service Class R	11,183
Service Class 2R	4,075
	$ 183,770

Overseas Portfolio

4. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, the following amounts were paid to FIIOC:

Initial Class	$ 350,246	\|
Service Class	63,373
Service Class 2	26,334
Initial Class R	6,227
Service Class R	7,837
Service Class 2R	1,183
	$ 455,200

5. Committed Line of Credit.

6. Security Lending.

7. 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 $226,906 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 $1,160.

8. Other Information.

Notes to Financial Statements (Unaudited) - continued

Overseas Portfolio

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

Fidelity Management & Research (Far East) Inc.

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

Fidelity Investments Japan Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VIPOVRSR-SANN-0803
1.774855.101

Fidelity® Variable Insurance Products:

Value Portfolio

Semiannual Report

June 30, 2003

(2_fidelity_logos) (Registered_Trademark)

Investment Summary	<Click Here>	A summary of the fund's investments at period end.
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.

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 Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Neither the fund nor Fidelity Distributors Corporation is a bank.

Value stocks can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time.

Semiannual Report

Fidelity Variable Insurance Products: Value Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Burlington Resources, Inc.	5.1
Charles Schwab Corp.	4.6
AOL Time Warner, Inc.	4.2
Verizon Communications, Inc.	3.8
Exxon Mobil Corp.	3.7
	21.4
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	28.5
Industrials	18.0
Consumer Discretionary	13.9
Information Technology	11.2
Energy	9.4

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks	98.4%
	Bonds	0.7%
	Short-Term Investments and Net Other Assets	0.9%

* Foreign investments

2.7%

Semiannual Report

Fidelity Variable Insurance Products: Value Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.4%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 13.9%
Hotels, Restaurants & Leisure - 0.5%
Mandalay Resort Group	281		$ 8,950
MGM MIRAGE (a)	200		6,836
			15,786
Internet & Catalog Retail - 1.3%
InterActiveCorp (a)	780		30,865
Overstock.com, Inc. (a)	500		7,255
			38,120
Media - 7.1%
AOL Time Warner, Inc. (a)	7,580		121,962
Belo Corp. Series A	1,190		26,608
Comcast Corp. Class A (special) (a)	780		22,487
News Corp. Ltd. ADR	730		22,097
Scholastic Corp. (a)	440		13,103
			206,257
Multiline Retail - 1.5%
Federated Department Stores, Inc.	640		23,584
Target Corp.	540		20,434
			44,018
Specialty Retail - 2.7%
Christopher & Banks Corp. (a)	200		7,398
Home Depot, Inc.	1,580		52,330
TJX Companies, Inc.	930		17,521
			77,249
Textiles Apparel & Luxury Goods - 0.8%
NIKE, Inc. Class B	440		23,536
TOTAL CONSUMER DISCRETIONARY			404,966
CONSUMER STAPLES - 2.0%
Food Products - 1.1%
Campbell Soup Co.	280		6,860
McCormick & Co., Inc. (non-vtg.)	980		26,656
			33,516
Household Products - 0.5%
Church & Dwight Co., Inc.	10		327
Kimberly-Clark Corp.	160		8,342
Procter & Gamble Co.	60		5,351
			14,020
Personal Products - 0.4%
Gillette Co.	380		12,107
TOTAL CONSUMER STAPLES			59,643

	Shares		Value (Note 1)
ENERGY - 9.4%
Energy Equipment & Services - 0.6%
Diamond Offshore Drilling, Inc.	440		$ 9,236
Schlumberger Ltd. (NY Shares)	180		8,563
			17,799
Oil & Gas - 8.8%
Burlington Resources, Inc.	2,770		149,767
Exxon Mobil Corp.	2,960		106,294
			256,061
TOTAL ENERGY			273,860
FINANCIALS - 28.5%
Capital Markets - 19.6%
A.G. Edwards, Inc.	380		12,996
Bank of New York Co., Inc.	2,480		71,300
Charles Schwab Corp.	13,420		135,408
Friedman, Billings, Ramsey Group, Inc. Class A	300		4,020
Mellon Financial Corp.	2,600		72,150
Merrill Lynch & Co., Inc.	1,020		47,614
Morgan Stanley	1,980		84,645
Northern Trust Corp.	1,950		81,491
State Street Corp.	1,610		63,434
			573,058
Commercial Banks - 1.8%
Bank of America Corp.	590		46,628
Synovus Financial Corp.	140		3,010
Wachovia Corp.	60		2,398
			52,036
Diversified Financial Services - 3.6%
Citigroup, Inc.	2,400		102,720
GATX Corp.	250		4,088
			106,808
Insurance - 1.1%
Allstate Corp.	240		8,556
American International Group, Inc.	270		14,899
Aon Corp.	320		7,706
			31,161
Real Estate - 1.6%
American Financial Realty Trust (SBI)	200		2,982
Duke Realty Corp.	470		12,949
ProLogis	1,100		30,030
			45,961
Thrifts & Mortgage Finance - 0.8%
Golden West Financial Corp., Delaware	280		22,403
TOTAL FINANCIALS			831,427
Common Stocks - continued
	Shares		Value (Note 1)
HEALTH CARE - 3.3%
Biotechnology - 0.9%
Amgen, Inc. (a)	400		$ 26,576
Health Care Equipment & Supplies - 0.7%
Becton, Dickinson & Co.	510		19,814
Health Care Providers & Services - 0.4%
WebMD Corp. (a)	1,100		11,913
Pharmaceuticals - 1.3%
Merck & Co., Inc.	340		20,587
Schering-Plough Corp.	800		14,880
Wyeth	60		2,733
			38,200
TOTAL HEALTH CARE			96,503
INDUSTRIALS - 18.0%
Aerospace & Defense - 1.9%
Boeing Co.	120		4,118
Goodrich Corp.	830		17,430
Lockheed Martin Corp.	710		33,775
			55,323
Electrical Equipment - 2.0%
Emerson Electric Co.	1,120		57,232
Industrial Conglomerates - 1.8%
3M Co.	150		19,347
General Electric Co.	880		25,238
Teleflex, Inc.	200		8,510
			53,095
Machinery - 6.4%
Caterpillar, Inc.	450		25,047
Cummins, Inc.	350		12,562
Dover Corp.	680		20,373
Eaton Corp.	360		28,300
Illinois Tool Works, Inc.	980		64,533
Navistar International Corp. (a)	460		15,010
PACCAR, Inc.	230		15,539
Pall Corp.	100		2,250
Pentair, Inc.	60		2,344
			185,958
Road & Rail - 5.8%
Norfolk Southern Corp.	2,650		50,880
Union Pacific Corp.	1,330		77,167
Werner Enterprises, Inc.	1,940		41,128
			169,175
Trading Companies & Distributors - 0.1%
Fastenal Co.	100		3,394
TOTAL INDUSTRIALS			524,177

	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - 11.2%
Communications Equipment - 4.1%
ADC Telecommunications, Inc. (a)	5,700		$ 13,270
Avanex Corp. (a)	1,800		7,200
Brocade Communications Systems, Inc. (a)	3,900		22,971
Enterasys Networks, Inc. (a)	1,600		4,848
Motorola, Inc.	4,700		44,321
Nokia Corp. sponsored ADR	580		9,529
Nortel Networks Corp. (a)	5,400		14,580
Tellabs, Inc. (a)	500		3,285
			120,004
Computers & Peripherals - 1.2%
Hewlett-Packard Co.	770		16,401
Seagate Technology	900		15,885
Western Digital Corp. (a)	200		2,060
			34,346
Electronic Equipment & Instruments - 1.4%
Arrow Electronics, Inc. (a)	1,100		16,764
Avnet, Inc. (a)	400		5,072
Celestica, Inc. (sub. vtg.) (a)	360		5,641
Flextronics International Ltd. (a)	400		4,156
Ingram Micro, Inc. Class A (a)	800		8,800
			40,433
IT Services - 0.4%
Electronic Data Systems Corp.	400		8,580
The BISYS Group, Inc. (a)	100		1,837
			10,417
Semiconductors & Semiconductor Equipment - 1.8%
Axcelis Technologies, Inc. (a)	900		5,508
Cree, Inc. (a)	100		1,628
Cypress Semiconductor Corp. (a)	200		2,400
Helix Technology, Inc.	400		5,292
Lattice Semiconductor Corp. (a)	80		658
LSI Logic Corp. (a)	400		2,832
Micron Technology, Inc. (a)	3,040		35,355
			53,673
Software - 2.3%
BEA Systems, Inc. (a)	2,200		23,892
Microsoft Corp.	200		5,122
NetIQ Corp. (a)	340		5,256
Network Associates, Inc. (a)	1,140		14,455
PeopleSoft, Inc. (a)	930		16,359
Reynolds & Reynolds Co. Class A	60		1,714
			66,798
TOTAL INFORMATION TECHNOLOGY			325,671
MATERIALS - 2.9%
Metals & Mining - 2.7%
Alcoa, Inc.	3,100		79,050
Common Stocks - continued
	Shares		Value (Note 1)
MATERIALS - continued
Paper & Forest Products - 0.2%
International Paper Co.	150		$ 5,360
TOTAL MATERIALS			84,410
TELECOMMUNICATION SERVICES - 5.2%
Diversified Telecommunication Services - 5.2%
BellSouth Corp.	1,080		28,760
Level 3 Communications, Inc. (a)	500		3,320
Time Warner Telecom, Inc. Class A (a)	1,300		8,281
Verizon Communications, Inc.	2,810		110,855
			151,216
Wireless Telecommunication Services - 0.0%
Triton PCS Holdings, Inc. Class A (a)	400		2,020
TOTAL TELECOMMUNICATION SERVICES			153,236
UTILITIES - 4.0%
Electric Utilities - 3.5%
American Electric Power Co., Inc.	570		17,003
Entergy Corp.	740		39,057
Exelon Corp.	400		23,924
Wisconsin Energy Corp.	530		15,370
Xcel Energy, Inc.	400		6,016
			101,370
Multi-Utilities & Unregulated Power - 0.5%
AES Corp. (a)	100		635
Duke Energy Corp.	520		10,374
Reliant Resources, Inc. (a)	800		4,904
			15,913
TOTAL UTILITIES			117,283
TOTAL COMMON STOCKS (Cost $2,613,605)		2,871,176
Convertible Bonds - 0.7%
	Principal Amount
TELECOMMUNICATION SERVICES - 0.7%
Diversified Telecommunication Services - 0.7%
Level 3 Communications, Inc.:
6% 9/15/09	$ 20,000		14,600
6% 3/15/10	10,000		7,200
			21,800
TOTAL CONVERTIBLE BONDS (Cost $14,279)		21,800
Money Market Funds - 3.2%
	Shares		Value (Note 1)
Fidelity Cash Central Fund, 1.18% (b) (Cost $91,963)	91,963		$ 91,963

TOTAL INVESTMENT PORTFOLIO - 102.3%

(Cost $2,719,847)

$ 2,984,939

NET OTHER ASSETS - (2.3)%			(67,413)
NET ASSETS - 100%		$ 2,917,526

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $1,951,048 and $2,132,599, respectively.

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 $202 for the period.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $466,000 of which $105,000 and $361,000 will expire on December 31, 2009 and 2010, respectively.

The fund intends to elect to defer to its fiscal year ending December 31, 2003 approximately $86,000 of losses recognized during the period November 1, 2002 to December 31, 2002.

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

Semiannual Report

Fidelity Variable Insurance Products: Value Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (cost $2,719,847) - See accompanying schedule		$ 2,984,939
Receivable for investments sold		6,747
Dividends receivable		2,590
Interest receivable		545
Other receivables		689
Total assets		2,995,510

Liabilities
Payable to custodian bank	$ 34,557
Payable for investments purchased	19,632
Payable for fund shares redeemed	1,080
Accrued management fee	1,445
Distribution fees payable	446
Other payables and accrued expenses	20,824
Total liabilities		77,984

Net Assets		$ 2,917,526
Net Assets consist of:
Paid in capital		$ 3,260,810
Undistributed net investment income		4,160
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(612,536)
Net unrealized appreciation (depreciation) on investments		265,092
Net Assets		$ 2,917,526
Initial Class: Net Asset Value, offering price and redemption price per share ($316,007 ÷ 33,730 shares)		$ 9.37
Service Class: Net Asset Value, offering price and redemption price per share ($842,623 ÷ 90,048 shares)		$ 9.36
Service Class 2: Net Asset Value, offering price and redemption price per share ($1,758,896 ÷ 188,558 shares)		$ 9.33

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 22,920
Interest		2,406
Total income		25,326

Expenses
Management fee	$ 7,954
Transfer agent fees	1,756
Distribution fees	2,467
Accounting fees and expenses	30,010
Non-interested trustees' compensation	6
Custodian fees and expenses	5,256
Audit	19,962
Legal	3
Miscellaneous	158
Total expenses before reductions	67,572
Expense reductions	(45,633)	21,939
Net investment income (loss)		3,387
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(13,180)
Foreign currency transactions	(2)
Total net realized gain (loss)		(13,182)
Change in net unrealized appreciation (depreciation) on investment securities		400,980
Net gain (loss)		387,798
Net increase (decrease) in net assets resulting from operations		$ 391,185

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

Semiannual Report

Fidelity Variable Insurance Products: Value Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 3,387	$ 4,498
Net realized gain (loss)	(13,182)	(486,728)
Change in net unrealized appreciation (depreciation)	400,980	(250,767)
Net increase (decrease) in net assets resulting from operations	391,185	(732,997)
Distributions to shareholders from net investment income	-	(3,406)
Share transactions - net increase (decrease)	(236,090)	549,513
Total increase (decrease) in net assets	155,095	(186,890)

Net Assets
Beginning of period	2,762,431	2,949,321
End of period (including undistributed net investment income of $4,160 and undistributed net investment income of $773, respectively)	$ 2,917,526	$ 2,762,431

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
Shares Sold	1,961	2,487	11,873
Redeemed	(427)	(11,340)	(33,090)
Net increase (decrease)	1,534	(8,853)	(21,217)

Dollars Sold	$ 16,449	$ 20,556	$ 96,357
Redeemed	(3,574)	(93,860)	(272,018)
Net increase (decrease)	$ 12,875	$ (73,304)	$ (175,661)

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
Shares Sold	2,429	184,992	137,572
Reinvested	40	122	260
Redeemed	(336)	(180,575)	(109,646)
Net increase (decrease)	2,133	4,539	28,186

Dollars Sold	$ 20,801	$ 1,720,824	$ 1,279,975
Reinvested	322	988	2,096
Redeemed	(2,708)	(1,545,023)	(927,762)
Net increase (decrease)	$ 18,415	$ 176,789	$ 354,309

Distributions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 322	$ 988	$ 2,096

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

Value Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001^F
Selected Per-Share Data
Net asset value, beginning of period	$ 8.12	$ 9.64	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.02	.03	.03
Net realized and unrealized gain (loss)	1.23	(1.54)	(.37)
Total from investment operations	1.25	(1.51)	(.34)
Distributions from net investment income	-	(.01)	(.02)
Net asset value, end of period	$ 9.37	$ 8.12	$ 9.64
Total Return^B,C,D	15.39%	(15.66)%	(3.40)%
Ratios to Average Net Assets^G
Expenses before expense reductions	4.92%^A	3.60%	7.11%^A
Expenses net of voluntary waivers, if any	1.50%^A	1.50%	1.50%^A
Expenses net of all reductions	1.44%^A	1.45%	1.46%^A
Net investment income (loss)	.42%^A	.31%	.50%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 316	$ 261	$ 290
Portfolio turnover rate	147%^A	192%	115%^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 For the period May 9, 2001 (commencement of sale of shares) to December 31, 2001.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001^F
Selected Per-Share Data
Net asset value, beginning of period	$ 8.12	$ 9.64	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.01	.02	.02
Net realized and unrealized gain (loss)	1.23	(1.53)	(.37)
Total from investment operations	1.24	(1.51)	(.35)
Distributions from net investment income	-	(.01)	(.01)
Net asset value, end of period	$ 9.36	$ 8.12	$ 9.64
Total Return^B,C,D	15.27%	(15.66)%	(3.50)%
Ratios to Average Net Assets^G
Expenses before expense reductions	4.86%^A	3.64%	7.23%^A
Expenses net of voluntary waivers, if any	1.60%^A	1.60%	1.60%^A
Expenses net of all reductions	1.53%^A	1.55%	1.56%^A
Net investment income (loss)	.33%^A	.21%	.40%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 843	$ 803	$ 910
Portfolio turnover rate	147%^A	192%	115%^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 For the period May 9, 2001 (commencement of sale of shares) to December 31, 2001.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001^F
Selected Per-Share Data
Net asset value, beginning of period	$ 8.10	$ 9.64	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.01	.01	.01
Net realized and unrealized gain (loss)	1.22	(1.54)	(.36)
Total from investment operations	1.23	(1.53)	(.35)
Distributions from net investment income	-	(.01)	(.01)
Net asset value, end of period	$ 9.33	$ 8.10	$ 9.64
Total Return^B,C,D	15.19%	(15.87)%	(3.50)%
Ratios to Average Net Assets^G
Expenses before expense reductions	5.01%^A	3.78%	7.38%^A
Expenses net of voluntary waivers, if any	1.75%^A	1.75%	1.75%^A
Expenses net of all reductions	1.67%^A	1.70%	1.70%^A
Net investment income (loss)	.18%^A	.06%	.25%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,759	$ 1,698	$ 1,750
Portfolio turnover rate	147%^A	192%	115%^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 For the period May 9, 2001 (commencement of sale of shares) to December 31, 2001.

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

Value Portfolio

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

Value Portfolio (the fund) is a fund of Variable Insurance Products (the trust) (referred to in this report as Fidelity Variable Insurance Products: Value Portfolio) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The fund offers the following classes of shares: Initial Class shares, Service Class shares 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.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

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 and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, market discount, partnerships, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows:

Unrealized appreciation	$ 321,245	\|
Unrealized depreciation	(74,104)
Net unrealized appreciation (depreciation)	$ 247,141
Cost for federal income tax purposes	$ 2,737,798

2. Operating Policies.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of the fund's Schedule of Investments.

4. 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.

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	$ 396	\|
Service Class 2	2,071
	$ 2,467

For the period, the following amounts were paid to FIIOC:

Initial Class	$ 379	\|
Service Class	447
Service Class 2	930
	$ 1,756

Value Portfolio

4. Fees and Other Transactions with Affiliates - continued

5. Committed Line of Credit.

6. Expense Reductions.

FMR agreed to reimburse the classes of the fund to the extent 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.

Effective August 1, 2003, the expense limitations will be changed to 1.00%, 1.10% and 1.25%, for Initial Class, Service Class, and Service Class 2, respectively.

	Expense Limitations	Reimbursement from adviser

Initial Class	1.50%	$ 4,736
Service Class	1.60%	12,909
Service Class 2	1.75%	27,099
		$ 44,744

7. Other Information.

At the end of the period, FMR or its affiliates were the owners of record of 32% of the total outstanding shares of the fund and one unaffiliated shareholder was the owner of record of 67% of the total outstanding shares of the fund.

Semiannual Report

Value Portfolio

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

Fidelity Management & Research (Far East) Inc.

Fidelity Investments Japan Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Custodian

State Street Bank and Trust Company
Quincy, MA

VIPVAL-SANN-0803
1.761034.102

Fidelity® Variable Insurance Products

Asset Manager ^SM Portfolio

Contrafund® Portfolio

Equity-Income Portfolio

Growth Portfolio

High Income Portfolio

Index 500 Portfolio

Overseas Portfolio

Semiannual Report

June 30, 2003

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Asset Manager Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
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Contrafund Portfolio	<Click Here>	Investment Summary
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Equity-Income Portfolio	<Click Here>	Investment Summary
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	<Click Here>	Financial Statements
Overseas Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Notes to Financial Statements	<Click Here>	Notes to the Financial Statements

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

Semiannual Report

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 Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

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.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC,
Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the funds nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Fidelity Variable Insurance Products: Asset Manager Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Cardinal Health, Inc.	3.6
Clear Channel Communications, Inc.	2.9
Merck & Co., Inc.	2.6
American International Group, Inc.	2.4
General Electric Co.	2.3
	13.8
Top Five Bond Issuers as of June 30, 2003
(with maturities greater than one year)	% of fund's net assets
Fannie Mae	8.4
U.S. Treasury Obligations	4.2
Government National Mortgage Association	1.1
Freddie Mac	0.5
Thirteen Affiliates of General Growth Properties, Inc.	0.5
	14.7

Asset Allocation as of June 30, 2003

% of fund's net assets *
	Stock Class and equity futures	52.5%
	Bond Class	34.3%
	Short-Term Class	13.2%

* Foreign investments

4.2%

Asset Allocation in the pie chart reflects the categorization of assets as defined in the fund's prospectus. Financial Statement categorizations conform to accounting standards and will differ from the pie chart.

Semiannual Report

Fidelity Variable Insurance Products: Asset Manager Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 49.0%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 6.8%
Auto Components - 0.0%
Exide Technologies warrants 3/18/06 (a)	16		$ 0
Hotels, Restaurants & Leisure - 0.2%
McDonald's Corp.	250,500		5,526,030
Media - 4.3%
AOL Time Warner, Inc. (a)	2,477,700		39,866,193
Clear Channel Communications, Inc. (a)	1,994,300		84,538,377
McGraw-Hill Companies, Inc.	50,500		3,131,000
			127,535,570
Specialty Retail - 2.3%
Home Depot, Inc.	1,826,100		60,480,432
Limited Brands, Inc.	132,200		2,049,100
Office Depot, Inc. (a)	103,300		1,498,883
Staples, Inc. (a)	127,100		2,332,285
			66,360,700
Textiles Apparel & Luxury Goods - 0.0%
Arena Brands Holding Corp. Class B	8,445		162,566
TOTAL CONSUMER DISCRETIONARY			199,584,866
CONSUMER STAPLES - 4.3%
Beverages - 1.5%
PepsiCo, Inc.	472,300		21,017,350
The Coca-Cola Co.	483,200		22,425,312
			43,442,662
Food & Staples Retailing - 1.1%
CVS Corp.	827,300		23,189,219
Safeway, Inc. (a)	431,400		8,826,444
			32,015,663
Food Products - 0.2%
Kraft Foods, Inc. Class A	46,500		1,513,575
Unilever NV (NY Shares)	104,700		5,653,800
			7,167,375
Personal Products - 0.6%
Alberto-Culver Co. Class B	326,300		16,673,930
Tobacco - 0.9%
Altria Group, Inc.	602,900		27,395,776
TOTAL CONSUMER STAPLES			126,695,406
ENERGY - 3.8%
Energy Equipment & Services - 1.4%
BJ Services Co. (a)	46,100		1,722,296
Cooper Cameron Corp. (a)	36,960		1,862,045
Diamond Offshore Drilling, Inc.	323,800		6,796,562
ENSCO International, Inc.	263,300		7,082,770
GlobalSantaFe Corp.	413,100		9,641,754

	Shares		Value (Note 1)
Grant Prideco, Inc. (a)	73,100		$ 858,925
Nabors Industries Ltd. (a)	85,600		3,385,480
Rowan Companies, Inc.	85,836		1,922,726
Transocean, Inc.	407,600		8,954,972
			42,227,530
Oil & Gas - 2.4%
ChevronTexaco Corp.	263,400		19,017,480
ConocoPhillips	669,752		36,702,410
Exxon Mobil Corp.	394,400		14,162,904
			69,882,794
TOTAL ENERGY			112,110,324
FINANCIALS - 10.4%
Capital Markets - 2.1%
Merrill Lynch & Co., Inc.	740,000		34,543,200
Morgan Stanley	642,800		27,479,700
			62,022,900
Commercial Banks - 0.8%
Bank One Corp.	240,600		8,945,508
Synovus Financial Corp.	191,200		4,110,800
Wachovia Corp.	290,903		11,624,484
			24,680,792
Diversified Financial Services - 2.2%
Citigroup, Inc.	1,490,400		63,789,120
Insurance - 3.2%
AFLAC, Inc.	86,400		2,656,800
Allmerica Financial Corp. (a)	216,100		3,887,639
American International Group, Inc.	1,297,300		71,585,014
Hartford Financial Services Group, Inc.	242,600		12,217,336
PartnerRe Ltd.	39,300		2,008,623
Travelers Property Casualty Corp. Class B	136,210		2,148,032
			94,503,444
Real Estate - 0.1%
Apartment Investment & Management Co. Class A	56,800		1,965,280
Thrifts & Mortgage Finance - 2.0%
Fannie Mae	861,700		58,113,048
MGIC Investment Corp.	25,200		1,175,328
			59,288,376
TOTAL FINANCIALS			306,249,912
HEALTH CARE - 10.8%
Health Care Equipment & Supplies - 0.6%
Baxter International, Inc.	649,300		16,881,800
Health Care Providers & Services - 3.6%
Cardinal Health, Inc.	1,678,500		107,927,530
Pharmaceuticals - 6.6%
Johnson & Johnson	1,162,200		60,085,740
Merck & Co., Inc.	1,247,400		75,530,070
Pfizer, Inc.	671,800		22,941,970
Common Stocks - continued
	Shares		Value (Note 1)
HEALTH CARE - continued
Pharmaceuticals - continued
Recordati Spa	45,653		$ 818,488
Schering-Plough Corp.	750,000		13,950,000
Wyeth	472,200		21,508,710
			194,834,978
TOTAL HEALTH CARE			319,644,308
INDUSTRIALS - 4.1%
Aerospace & Defense - 0.1%
United Technologies Corp.	48,800		3,456,504
Commercial Services & Supplies - 0.2%
Aramark Corp. Class B (a)	68,100		1,526,802
Avery Dennison Corp.	17,800		893,560
ChoicePoint, Inc. (a)	117,633		4,060,691
			6,481,053
Industrial Conglomerates - 3.3%
3M Co.	20,900		2,695,682
General Electric Co.	2,410,000		69,118,800
Tyco International Ltd.	1,364,600		25,900,108
			97,714,590
Machinery - 0.4%
Ingersoll-Rand Co. Ltd. Class A	201,200		9,520,784
Road & Rail - 0.1%
CSX Corp.	38,200		1,149,438
Union Pacific Corp.	19,300		1,119,786
			2,269,224
TOTAL INDUSTRIALS			119,442,155
INFORMATION TECHNOLOGY - 5.4%
Communications Equipment - 0.8%
Cisco Systems, Inc. (a)	235,500		3,930,495
Comverse Technology, Inc. (a)	381,600		5,735,448
Motorola, Inc.	1,331,500		12,556,045
			22,221,988
Computers & Peripherals - 1.3%
Dell Computer Corp. (a)	342,800		10,955,888
Hewlett-Packard Co.	816,200		17,385,060
Sun Microsystems, Inc. (a)	2,485,200		11,431,920
			39,772,868
Electronic Equipment & Instruments - 0.4%
Celestica, Inc. (sub. vtg.) (a)	119,800		1,877,264
Flextronics International Ltd. (a)	184,000		1,911,760
Jabil Circuit, Inc. (a)	84,700		1,871,870
Sanmina-SCI Corp. (a)	190,800		1,203,948
Solectron Corp. (a)	906,100		3,388,814
Thermo Electron Corp. (a)	72,700		1,528,154
			11,781,810

	Shares		Value (Note 1)
IT Services - 0.4%
Affiliated Computer Services, Inc. Class A (a)	18,100		$ 827,713
First Data Corp.	247,200		10,243,968
			11,071,681
Semiconductors & Semiconductor Equipment - 0.7%
Intel Corp.	242,900		5,048,434
KLA-Tencor Corp. (a)	67,800		3,152,022
Lam Research Corp. (a)	136,500		2,485,665
Linear Technology Corp.	21,100		679,631
Micron Technology, Inc. (a)	117,200		1,363,036
Novellus Systems, Inc. (a)	74,200		2,717,278
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	275,000		2,772,000
United Microelectronics Corp. sponsored ADR (a)	554,990		2,081,213
Xilinx, Inc. (a)	14,400		364,464
			20,663,743
Software - 1.8%
Activision, Inc. (a)	153,150		1,978,698
Microsoft Corp.	1,815,790		46,502,382
VERITAS Software Corp. (a)	162,500		4,658,875
			53,139,955
TOTAL INFORMATION TECHNOLOGY			158,652,045
MATERIALS - 0.5%
Chemicals - 0.1%
Dow Chemical Co.	147,890		4,578,674
Metals & Mining - 0.3%
Alcan, Inc.	112,500		3,506,548
Alcoa, Inc.	202,000		5,151,000
			8,657,548
Paper & Forest Products - 0.1%
Bowater, Inc.	27,700		1,037,365
International Paper Co.	21,600		771,768
			1,809,133
TOTAL MATERIALS			15,045,355
TELECOMMUNICATION SERVICES - 2.5%
Diversified Telecommunication Services - 2.5%
NTL, Inc. (a)	80,942		2,761,741
Ono Finance PLC rights 5/31/09 (a)(f)	1,740		17
Qwest Communications International, Inc. (a)	2,423,200		11,582,896
SBC Communications, Inc.	907,900		23,196,845
Verizon Communications, Inc.	938,000		37,004,100
			74,545,599
UTILITIES - 0.4%
Electric Utilities - 0.4%
FirstEnergy Corp.	198,100		7,616,945
Common Stocks - continued
	Shares		Value (Note 1)
UTILITIES - continued
Electric Utilities - continued
Southern Co.	49,800		$ 1,551,768
Wisconsin Energy Corp.	55,700		1,615,300
			10,784,013
Gas Utilities - 0.0%
NiSource, Inc.	69,100		1,312,900
TOTAL UTILITIES			12,096,913
TOTAL COMMON STOCKS (Cost $1,453,296,113)		1,444,066,883
Preferred Stocks - 0.3%

Convertible Preferred Stocks - 0.0%
TELECOMMUNICATION SERVICES - 0.0%
Diversified Telecommunication Services - 0.0%
Cincinnati Bell, Inc. Series B, 6.75%	7,700		314,545
Wireless Telecommunication Services - 0.0%
Digitalglobe, Inc. Series C, 8.5% pay-in-kind	3,245		2,434
TOTAL TELECOMMUNICATION SERVICES			316,979
Nonconvertible Preferred Stocks - 0.3%
FINANCIALS - 0.0%
Insurance - 0.0%
American Annuity Group Capital Trust II 8.875%	1,490		1,574,930
TELECOMMUNICATION SERVICES - 0.3%
Diversified Telecommunication Services - 0.1%
Broadwing Communications, Inc. Series B, 12.5% pay-in-kind	8,239		1,730,190
NTL Europe, Inc. Series A, 10%	76		228
			1,730,418
Wireless Telecommunication Services - 0.2%
Nextel Communications, Inc. Series E, 11.125%	5,431		5,784,015
TOTAL TELECOMMUNICATION SERVICES			7,514,433
TOTAL NONCONVERTIBLE PREFERRED STOCKS			9,089,363
TOTAL PREFERRED STOCKS (Cost $14,107,968)		9,406,342

Corporate Bonds - 17.4%
	Principal Amount		Value (Note 1)
Convertible Bonds - 0.7%
CONSUMER DISCRETIONARY - 0.3%
Hotels, Restaurants & Leisure - 0.1%
Hilton Hotels Corp. 3.375% 4/15/23 (f)	$ 1,620,000		$ 1,583,550
Media - 0.1%
Interpublic Group of Companies, Inc. 4.5% 3/15/23 (f)	940,000		1,317,128
Liberty Media Corp. 3.25% 3/15/31	2,760,000		2,859,056
			4,176,184
Specialty Retail - 0.1%
Gap, Inc. 5.75% 3/15/09 (f)	1,214,000		1,640,418
TOTAL CONSUMER DISCRETIONARY			7,400,152
FINANCIALS - 0.0%
Diversified Financial Services - 0.0%
IOS Capital LLC 5% 5/1/07 (f)	1,390,000		1,358,725
HEALTH CARE - 0.1%
Health Care Providers & Services - 0.1%
Total Renal Care Holdings 7% 5/15/09 (f)	2,340,000		2,439,450
INFORMATION TECHNOLOGY - 0.3%
Communications Equipment - 0.1%
Brocade Communications Systems, Inc. 2% 1/1/07	2,010,000		1,685,888
CIENA Corp. 3.75% 2/1/08	3,000,000		2,520,000
			4,205,888
Semiconductors & Semiconductor Equipment - 0.2%
Atmel Corp. 0% 5/23/21	3,510,000		1,320,462
Micron Technology, Inc. 2.5% 2/1/10 (f)	340,000		408,000
Vitesse Semiconductor Corp. 4% 3/15/05	3,310,000		3,111,400
			4,839,862
TOTAL INFORMATION TECHNOLOGY			9,045,750
TELECOMMUNICATION SERVICES - 0.0%
Wireless Telecommunication Services - 0.0%
Millicom International Cellular SA 2% 6/1/06 pay-in-kind	100,000		225,000
TOTAL CONVERTIBLE BONDS			20,469,077
Nonconvertible Bonds - 16.7%
CONSUMER DISCRETIONARY - 3.7%
Auto Components - 0.3%
ArvinMeritor, Inc. 8.75% 3/1/12	1,800,000		1,998,000
DaimlerChrysler NA Holding Corp. 7.2% 9/1/09	2,500,000		2,841,713
Dana Corp.:
9% 8/15/11	570,000		612,750
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Auto Components - continued
Dana Corp.: - continued
10.125% 3/15/10	$ 1,570,000		$ 1,727,000
Lear Corp. 8.11% 5/15/09	240,000		274,800
Stoneridge, Inc. 11.5% 5/1/12	45,000		50,400
United Components, Inc. 9.375% 6/15/13 (f)	260,000		267,800
			7,772,463
Automobiles - 0.1%
General Motors Corp.:
7.125% 7/15/13	245,000		244,054
8.25% 7/15/23	820,000		815,903
8.375% 7/15/33	1,010,000		1,007,071
			2,067,028
Hotels, Restaurants & Leisure - 1.0%
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	1,270,000		1,162,050
10.5% 7/15/11 (f)	1,200,000		1,206,000
Domino's, Inc. 8.25% 7/1/11 (f)	470,000		482,925
Florida Panthers Holdings, Inc. 9.875% 4/15/09	3,440,000		3,698,000
Herbst Gaming, Inc. 10.75% 9/1/08	350,000		385,875
Hilton Hotels Corp.:
7.625% 12/1/12	940,000		1,026,950
8.25% 2/15/11	1,220,000		1,360,300
Horseshoe Gaming LLC 8.625% 5/15/09	2,055,000		2,188,575
Morton's Restaurant Group, Inc. 7.5% 7/1/10 (f)	250,000		216,250
Penn National Gaming, Inc. 8.875% 3/15/10	2,270,000		2,406,200
Speedway Motorsports, Inc. 6.75% 6/1/13 (f)	560,000		576,800
Starwood Hotels & Resorts Worldwide, Inc.:
7.375% 5/1/07	1,540,000		1,617,000
7.875% 5/1/12	780,000		850,200
Station Casinos, Inc. 8.375% 2/15/08	1,835,000		1,972,625
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	2,745,000		2,957,738
Town Sports International, Inc. 9.625% 4/15/11 (f)	590,000		618,025
Tricon Global Restaurants, Inc.:
8.5% 4/15/06	1,070,000		1,198,400
8.875% 4/15/11	3,030,000		3,575,400
Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (f)	340,000		353,600
Wheeling Island Gaming, Inc. 10.125% 12/15/09	705,000		699,713
Wynn Las Vegas LLC/ Wynn Las Vegas Capital Corp. 12% 11/1/10	1,890,000		2,079,000
			30,631,626

	Principal Amount		Value (Note 1)
Household Durables - 0.1%
Beazer Homes USA, Inc. 8.625% 5/15/11	$ 840,000		$ 928,200
D.R. Horton, Inc.:
7.875% 8/15/11	420,000		459,900
8% 2/1/09	1,040,000		1,149,200
KB Home 8.625% 12/15/08	1,070,000		1,219,800
Standard Pacific Corp. 9.25% 4/15/12	725,000		801,125
			4,558,225
Leisure Equipment & Products - 0.1%
The Hockey Co. 11.25% 4/15/09	2,255,000		2,503,050
Media - 2.0%
AMC Entertainment, Inc. 9.5% 2/1/11	975,000		1,009,125
American Media Operations, Inc. 10.25% 5/1/09	1,870,000		2,014,925
AOL Time Warner, Inc. 6.75% 4/15/11	3,500,000		3,984,883
British Sky Broadcasting Group PLC (BSkyB) yankee 8.2% 7/15/09	3,740,000		4,431,900
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.:
0% 1/15/10 (d)	565,000		324,875
0% 4/1/11 (d)	2,395,000		1,568,725
0% 5/15/11 (d)	1,460,000		730,000
8.625% 4/1/09	2,025,000		1,478,250
9.625% 11/15/09	725,000		532,875
10% 5/15/11	1,595,000		1,164,350
10.75% 10/1/09	3,355,000		2,616,900
Cinemark USA, Inc. 9.625% 8/1/08	1,625,000		1,633,125
Clear Channel Communications, Inc. 7.65% 9/15/10	1,750,000		2,105,947
Comcast Corp. 7.05% 3/15/33	1,235,000		1,371,650
Corus Entertainment, Inc. 8.75% 3/1/12	1,975,000		2,118,188
Cox Communications, Inc. 7.125% 10/1/12	1,565,000		1,868,818
CSC Holdings, Inc.:
7.625% 4/1/11	780,000		787,800
7.625% 7/15/18	545,000		539,550
7.875% 2/15/18	205,000		212,175
EchoStar DBS Corp.:
9.125% 1/15/09	2,170,000		2,424,975
9.375% 2/1/09	680,000		725,900
10.375% 10/1/07	1,240,000		1,373,300
Entravision Communications Corp. 8.125% 3/15/09	1,885,000		1,965,113
Houghton Mifflin Co.:
8.25% 2/1/11 (f)	1,870,000		1,963,500
9.875% 2/1/13 (f)	720,000		777,600
Lamar Media Corp. 7.25% 1/1/13	470,000		495,850
News America Holdings, Inc. 7.75% 12/1/45	3,500,000		4,163,229
Nextmedia Operating, Inc. 10.75% 7/1/11	600,000		672,000
PEI Holdings, Inc. 11% 3/15/10 (f)	1,045,000		1,154,725
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - continued
Penton Media, Inc. 11.875% 10/1/07	$ 240,000		$ 228,000
Radio One, Inc. 8.875% 7/1/11	3,290,000		3,643,675
Regal Cinemas Corp. 9.375% 2/1/12	2,465,000		2,723,825
Telewest PLC 11% 10/1/07 (c)	2,600,000		949,000
Vertis, Inc. 9.75% 4/1/09 (f)	910,000		925,925
Vivendi Universal SA 9.25% 4/15/10 (f)	2,420,000		2,734,600
Yell Finance BV 10.75% 8/1/11	185,000		209,513
			57,624,791
Multiline Retail - 0.0%
Barneys, Inc. 9% 4/1/08 unit (f)	1,130,000		1,017,000
Specialty Retail - 0.0%
Hollywood Entertainment Corp. 9.625% 3/15/11	460,000		501,400
Textiles Apparel & Luxury Goods - 0.1%
Dan River, Inc. 12.75% 4/15/09 (f)	1,130,000		1,017,000
Levi Strauss & Co. 12.25% 12/15/12	910,000		755,300
			1,772,300
TOTAL CONSUMER DISCRETIONARY			108,447,883
CONSUMER STAPLES - 0.5%
Food & Staples Retailing - 0.1%
Kroger Co. 6.8% 4/1/11	2,230,000		2,544,120
The Great Atlantic & Pacific Tea Co. 9.125% 12/15/11	1,395,000		1,304,325
			3,848,445
Food Products - 0.3%
Central Garden & Pet Co. 9.125% 2/1/13	290,000		310,300
Chiquita Brands International, Inc. 10.56% 3/15/09	1,099,000		1,186,920
Corn Products International, Inc.:
8.25% 7/15/07	2,090,000		2,340,800
8.45% 8/15/09	285,000		321,338
Dean Foods Co.:
6.625% 5/15/09	180,000		191,700
6.9% 10/15/17	540,000		534,600
8.15% 8/1/07	1,730,000		1,920,300
Doane Pet Care Co.:
9.75% 5/15/07	1,160,000		1,102,000
10.75% 3/1/10	840,000		915,600
Michael Foods, Inc. 11.75% 4/1/11	105,000		120,750
			8,944,308
Personal Products - 0.1%
Revlon Consumer Products Corp. 12% 12/1/05	1,520,000		1,482,000

	Principal Amount		Value (Note 1)
Tobacco - 0.0%
RJ Reynolds Tobacco Holdings, Inc. 6.5% 6/1/07	$ 385,000		$ 385,676
TOTAL CONSUMER STAPLES			14,660,429
ENERGY - 1.1%
Energy Equipment & Services - 0.1%
Grant Prideco, Inc.:
9% 12/15/09	250,000		279,375
9.625% 12/1/07	1,020,000		1,152,600
Key Energy Services, Inc. 8.375% 3/1/08	1,460,000		1,576,800
Kinder Morgan, Inc. 6.5% 9/1/12	1,165,000		1,335,437
SESI LLC 8.875% 5/15/11	120,000		129,000
			4,473,212
Oil & Gas - 1.0%
Chesapeake Energy Corp.:
8.125% 4/1/11	450,000		483,750
8.375% 11/1/08	610,000		663,375
8.5% 3/15/12	1,040,000		1,099,800
Encore Acquisition Co. 8.375% 6/15/12	1,325,000		1,417,750
Forest Oil Corp. 8% 12/15/11	1,030,000		1,107,250
General Maritime Corp. 10% 3/15/13 (f)	1,430,000		1,565,850
GulfTerra Energy Partners LP/GulfTerra Energy Finance Corp. 10.625% 12/1/12	360,000		417,600
Pemex Project Funding Master Trust 6.125% 8/15/08 (f)	2,770,000		2,963,900
Petro-Canada yankee 7% 11/15/28	1,290,000		1,515,896
Plains All American Pipeline LP 7.75% 10/15/12	680,000		758,200
Plains Exploration & Production Co. LP 8.75% 7/1/12	2,295,000		2,455,650
Teekay Shipping Corp. 8.875% 7/15/11	3,640,000		3,990,350
The Coastal Corp.:
6.375% 2/1/09	485,000		424,375
6.5% 5/15/06	895,000		836,825
6.5% 6/1/08	650,000		581,750
6.95% 6/1/28	70,000		55,650
7.5% 8/15/06	2,990,000		2,885,350
7.625% 9/1/08	375,000		352,500
7.75% 6/15/10	1,680,000		1,566,600
7.75% 10/15/35	355,000		298,200
9.625% 5/15/12	2,050,000		2,055,125
Vintage Petroleum, Inc. 8.25% 5/1/12	1,015,000		1,103,813
			28,599,559
TOTAL ENERGY			33,072,771
FINANCIALS - 4.0%
Capital Markets - 0.5%
Amvescap PLC yankee 5.9% 1/15/07	1,015,000		1,107,694
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Capital Markets - continued
Credit Suisse First Boston (USA), Inc. 6.5% 1/15/12	$ 1,520,000		$ 1,744,285
Goldman Sachs Group, Inc. 6.6% 1/15/12	4,075,000		4,735,069
J.P. Morgan Chase & Co. 5.35% 3/1/07	2,000,000		2,189,986
Merrill Lynch & Co., Inc. 4% 11/15/07	2,500,000		2,596,315
Morgan Stanley:
5.3% 3/1/13	500,000		531,422
6.6% 4/1/12	1,750,000		2,021,924
			14,926,695
Commercial Banks - 0.2%
Bank of America Corp. 4.875% 1/15/13	620,000		654,040
Bank One NA, Chicago 3.7% 1/15/08	2,020,000		2,100,394
Fleet Financial Group, Inc. 7.125% 4/15/06	1,190,000		1,334,290
Korea Development Bank 7.375% 9/17/04	615,000		652,858
Popular North America, Inc. 4.25% 4/1/08	2,000,000		2,081,350
			6,822,932
Consumer Finance - 0.7%
Capital One Bank:
4.875% 5/15/08	1,070,000		1,091,944
6.5% 6/13/13	1,120,000		1,108,576
Ford Motor Credit Co.:
7.25% 10/25/11	2,300,000		2,364,568
7.875% 6/15/10	2,500,000		2,679,020
General Motors Acceptance Corp.:
4.5% 7/15/06	140,000		140,882
6.125% 2/1/07	120,000		125,388
6.125% 8/28/07	120,000		124,698
6.75% 1/15/06	910,000		966,094
6.875% 9/15/11	3,240,000		3,250,812
Household Finance Corp.:
6.375% 10/15/11	1,120,000		1,273,511
6.375% 11/27/12	1,000,000		1,139,126
7% 5/15/12	180,000		213,057
Household International, Inc. 8.875% 2/15/08	1,125,000		1,307,025
MBNA America Bank NA 6.625% 6/15/12	1,565,000		1,767,226
MBNA Corp. 7.5% 3/15/12	2,035,000		2,412,124
			19,964,051
Diversified Financial Services - 1.7%
Ahold Finance USA, Inc.:
6.25% 5/1/09	1,245,000		1,157,850
8.25% 7/15/10	2,225,000		2,247,250

	Principal Amount		Value (Note 1)
American Airlines, Inc. pass thru trust certificates 7.8% 4/1/08	$ 420,000		$ 294,000
Arch Western Finance LLC 6.75% 7/1/13 (f)	1,785,000		1,820,700
Chukchansi Economic Development Authority 14.5% 6/15/09 (f)	770,000		847,000
CIT Group, Inc. 7.75% 4/2/12	1,500,000		1,788,528
Continental Airlines, Inc. pass thru trust certificates:
6.795% 8/2/18	768,765		599,637
6.9% 1/2/17	622,864		473,377
8.312% 10/2/12	449,690		355,255
8.388% 5/1/22	39,792		31,038
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	170,000		142,800
7.57% 11/18/10	805,000		827,992
7.711% 9/18/11	85,000		71,400
7.779% 11/18/05	345,000		296,700
7.92% 5/18/12	1,385,000		1,196,360
10.06% 1/2/16	410,000		319,800
Details Capital Corp. 12.5% 11/15/07 (c)	505,000		5,050
Deutsche Telekom International Finance BV 8.75% 6/15/30	2,500,000		3,185,225
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp.:
8.5% 6/1/10 (f)	750,000		802,500
8.5% 6/1/11	1,330,000		1,423,100
Entercom Radio LLC/Entercom Capital, Inc. 7.625% 3/1/14	1,055,000		1,155,225
FIMEP SA 10.5% 2/15/13 (f)	2,325,000		2,604,000
Fresenius Medical Care Capital Trust IV 7.875% 6/15/11	165,000		173,250
Gemstone Investor Ltd./Gemstone Investor, Inc. 7.71% 10/31/04 (f)	330,000		326,700
Huntsman Advanced Materials LLC:
9.1% 7/15/08 (f)(h)	530,000		535,300
11% 7/15/10 (f)	400,000		416,000
IOS Capital LLC 7.25% 6/30/08	840,000		827,400
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10 (f)	170,000		175,100
NiSource Finance Corp. 7.875% 11/15/10	2,485,000		2,934,040
Northwest Airlines, Inc. pass thru trust certificates:
6.81% 2/1/20	512,477		443,575
7.248% 7/2/14	721,710		433,026
7.575% 3/1/19	359,129		362,721
7.691% 4/1/17	77,882		61,527
7.95% 9/1/16	56,016		44,812
8.304% 9/1/10	592,669		474,135
Pemex Project Funding Master Trust 7.875% 2/1/09 (h)	3,000,000		3,427,500
Petronas Capital Ltd. 7% 5/22/12 (f)	5,865,000		6,784,515
Sprint Capital Corp. 6.875% 11/15/28	2,495,000		2,503,071
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
TRW Automotive Acquisition Corp.:
9.375% 2/15/13 (f)	$ 1,420,000		$ 1,544,250
11% 2/15/13 (f)	1,510,000		1,653,450
U.S. Airways pass thru trust certificates 6.85% 7/30/19	315,393		296,470
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10 (f)	3,750,000		4,125,000
Verizon Wireless Capital LLC 5.375% 12/15/06	985,000		1,081,869
			50,268,498
Insurance - 0.1%
Principal Life Global Funding I 6.25% 2/15/12 (f)	850,000		961,519
Travelers Property Casualty Corp. 6.375% 3/15/33	650,000		710,415
			1,671,934
Real Estate - 0.6%
Arden Realty LP 7% 11/15/07	4,000,000		4,541,512
Boston Properties, Inc. 6.25% 1/15/13	1,200,000		1,314,070
CenterPoint Properties Trust 6.75% 4/1/05	1,590,000		1,698,193
Crescent Real Estate Equities LP/Crescent Finance Co. 9.25% 4/15/09	1,970,000		2,107,900
Duke Realty LP New 6.875% 3/15/05	2,950,000		3,163,480
EOP Operating LP 7.75% 11/15/07	820,000		960,418
Regency Centers LP 6.75% 1/15/12	1,990,000		2,261,768
Senior Housing Properties Trust 8.625% 1/15/12	1,640,000		1,738,400
			17,785,741
Thrifts & Mortgage Finance - 0.2%
Countrywide Home Loans, Inc. 5.5% 8/1/06	2,590,000		2,830,766
Washington Mutual Bank 6.875% 6/15/11	2,000,000		2,386,182
			5,216,948
TOTAL FINANCIALS			116,656,799
HEALTH CARE - 0.5%
Health Care Equipment & Supplies - 0.1%
Fisher Scientific International, Inc. 8.125% 5/1/12	1,190,000		1,273,300
Health Care Providers & Services - 0.3%
AmeriPath, Inc. 10.5% 4/1/13 (f)	2,320,000		2,482,400
Fountain View, Inc. 11.25% 4/15/08 (c)	2,330,000		1,980,500
PacifiCare Health Systems, Inc. 10.75% 6/1/09	1,310,000		1,496,675

	Principal Amount		Value (Note 1)
Psychiatric Solutions, Inc. 10.625% 6/15/13 (f)	$ 230,000		$ 236,325
Tenet Healthcare Corp.:
5.375% 11/15/06	175,000		168,000
6.375% 12/1/11	390,000		360,750
6.5% 6/1/12	505,000		467,125
7.375% 2/1/13	820,000		791,300
Triad Hospitals, Inc. 8.75% 5/1/09	1,425,000		1,524,750
			9,507,825
Pharmaceuticals - 0.1%
aaiPharma, Inc. 11% 4/1/10	1,005,000		1,105,500
Biovail Corp. yankee 7.875% 4/1/10	1,935,000		2,046,263
			3,151,763
TOTAL HEALTH CARE			13,932,888
INDUSTRIALS - 1.5%
Aerospace & Defense - 0.5%
Alliant Techsystems, Inc. 8.5% 5/15/11	3,465,000		3,785,513
BE Aerospace, Inc.:
8% 3/1/08	165,000		128,700
8.875% 5/1/11	1,565,000		1,220,700
9.5% 11/1/08	810,000		648,000
Raytheon Co. 6.75% 8/15/07	4,875,000		5,518,222
Transdigm, Inc. 10.375% 12/1/08	1,185,000		1,279,800
Vought Aircraft Industries, Inc. 8% 7/15/11 (f)	600,000		606,000
			13,186,935
Airlines - 0.1%
Delta Air Lines, Inc.:
equipment trust certificates 8.54% 1/2/07	241,538		188,400
7.9% 12/15/09	155,000		122,450
8.3% 12/15/29	2,305,000		1,648,075
NWA Trust 10.23% 6/21/14	377,585		302,068
			2,260,993
Building Products - 0.0%
Jacuzzi Brands, Inc. 9.625% 7/1/10 (f) (i)	280,000		280,000
Commercial Services & Supplies - 0.3%
Allied Waste North America, Inc.:
7.625% 1/1/06	4,370,000		4,522,950
7.875% 1/1/09	210,000		219,450
8.875% 4/1/08	190,000		205,675
American Color Graphics, Inc.:
10% 6/15/10 (f) (i)	950,000		954,750
12.75% 8/1/05	1,055,000		1,060,275
Browning-Ferris Industries, Inc. 6.375% 1/15/08	1,220,000		1,195,600
Danka Business Systems PLC 11% 6/15/10 (f)	1,190,000		1,172,150
Pierce Leahy Command Co. yankee 8.125% 5/15/08	320,000		330,400
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Commercial Services & Supplies - continued
World Color Press, Inc. 8.375% 11/15/08	$ 110,000		$ 115,500
Worldspan LP 9.625% 6/15/11 (f)	260,000		267,800
			10,044,550
Industrial Conglomerates - 0.2%
Tyco International Group SA yankee:
6.125% 11/1/08	60,000		62,700
6.375% 10/15/11	1,605,000		1,693,275
6.75% 2/15/11	4,500,000		4,770,000
			6,525,975
Machinery - 0.0%
AGCO Corp. 9.5% 5/1/08	330,000		363,000
Cummins, Inc. 9.5% 12/1/10 (f)	450,000		506,250
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	290,000		313,200
			1,182,450
Marine - 0.1%
Transport Maritima Mexicana SA de CV yankee:
9.5% 8/15/03 (c)	750,000		611,250
10.25% 11/15/06 (c)	1,570,000		1,240,300
			1,851,550
Road & Rail - 0.3%
Kansas City Southern Railway Co.:
7.5% 6/15/09	2,100,000		2,152,500
9.5% 10/1/08	180,000		194,400
TFM SA de CV yankee 11.75% 6/15/09	5,180,000		5,270,650
			7,617,550
TOTAL INDUSTRIALS			42,950,003
INFORMATION TECHNOLOGY - 0.6%
Communications Equipment - 0.4%
Motorola, Inc. 6.5% 11/15/28	1,125,000		1,141,875
Nortel Networks Corp. 6.125% 2/15/06	770,000		743,050
Qwest Services Corp.:
13.5% 12/15/10 (f)	6,010,000		6,791,300
14% 12/15/14 (f)	2,535,000		2,953,275
			11,629,500
Computers & Peripherals - 0.0%
Seagate Technology HDD Holdings 8% 5/15/09	1,080,000		1,166,400
Electronic Equipment & Instruments - 0.0%
Flextronics International Ltd. yankee 9.875% 7/1/10	25,000		27,313
IT Services - 0.0%
Digitalnet, Inc. 9% 7/15/10 (f)	410,000		410,000

	Principal Amount		Value (Note 1)
Electronic Data Systems Corp. 6% 8/1/13 (f)	$ 1,315,000		$ 1,283,940
Iron Mountain, Inc. 8.625% 4/1/13	75,000		80,250
			1,774,190
Office Electronics - 0.1%
Xerox Corp.:
7.125% 6/15/10	1,190,000		1,192,975
7.625% 6/15/13	1,190,000		1,192,975
			2,385,950
Semiconductors & Semiconductor Equipment - 0.1%
AMI Semiconductor, Inc. 10.75% 2/1/13 (f)	890,000		1,005,700
ON Semiconductor Corp./Semiconductor Components Industries LLC 12% 3/15/10	800,000		872,000
			1,877,700
TOTAL INFORMATION TECHNOLOGY			18,861,053
MATERIALS - 1.0%
Chemicals - 0.2%
Avecia Group PLC 11% 7/1/09	1,780,000		1,602,000
Compass Minerals Group, Inc. 10% 8/15/11	2,250,000		2,497,500
Geon Co. 6.875% 12/15/05	130,000		120,900
Lyondell Chemical Co.:
9.5% 12/15/08 (f)	750,000		708,750
9.875% 5/1/07	500,000		487,500
PolyOne Corp.:
8.875% 5/1/12	620,000		551,800
10.625% 5/15/10 (f)	310,000		300,700
			6,269,150
Containers & Packaging - 0.4%
BWAY Corp. 10% 10/15/10 (f)	310,000		316,200
Crown Cork & Seal, Inc.:
7.375% 12/15/26	745,000		569,925
8% 4/15/23	520,000		416,000
Crown European Holdings SA 9.5% 3/1/11 (f)	810,000		874,800
Jefferson Smurfit Corp. U.S. 8.25% 10/1/12	1,015,000		1,088,588
Owens-Brockway Glass Container, Inc.:
8.75% 11/15/12	935,000		1,014,475
8.875% 2/15/09	3,515,000		3,804,988
Owens-Illinois, Inc.:
7.15% 5/15/05	770,000		783,475
7.35% 5/15/08	330,000		325,050
7.5% 5/15/10	310,000		303,800
7.8% 5/15/18	140,000		131,600
8.1% 5/15/07	630,000		645,750
Sealed Air Corp.:
5.625% 7/15/13 (f)	245,000		247,308
6.875% 7/15/33 (f)	510,000		519,853
			11,041,812
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
MATERIALS - continued
Metals & Mining - 0.3%
Falconbridge Ltd. yankee 7.35% 6/5/12	$ 2,750,000		$ 3,098,585
Luscar Coal Ltd. 9.75% 10/15/11	1,180,000		1,345,200
Phelps Dodge Corp. 9.5% 6/1/31	1,545,000		1,849,829
Salt Holdings Corp., Inc. 0% 12/15/12 (d)(f)	1,560,000		1,056,900
Steel Dynamics, Inc. 9.5% 3/15/09	195,000		204,750
			7,555,264
Paper & Forest Products - 0.1%
Norske Skog Canada Ltd. 8.625% 6/15/11	190,000		198,550
Stone Container Corp.:
8.375% 7/1/12	1,010,000		1,070,600
9.75% 2/1/11	1,270,000		1,384,300
Weyerhaeuser Co. 6.75% 3/15/12	1,250,000		1,419,001
			4,072,451
TOTAL MATERIALS			28,938,677
TELECOMMUNICATION SERVICES - 1.5%
Diversified Telecommunication Services - 0.9%
AT&T Corp. 7.8% 11/15/11	1,055,000		1,205,983
Citizens Communications Co. 8.5% 5/15/06	1,190,000		1,380,175
France Telecom SA:
9.25% 3/1/11 (e)	1,500,000		1,887,848
10% 3/1/31 (e)	2,000,000		2,767,470
Mobifon Holdings BV 12.5% 7/31/10 (f)	1,520,000		1,573,200
NTL, Inc. 19% 1/1/10 (f)	1,995,000		2,014,950
Qwest Communications International, Inc. 7.25% 11/1/08	890,000		809,900
Qwest Corp. 8.875% 3/15/12 (f)	2,215,000		2,475,263
Telecomunicaciones de Puerto Rico, Inc. 6.65% 5/15/06	1,965,000		2,173,634
Telewest Communications PLC yankee:
0% 4/15/09 (c)(d)	1,285,000		391,925
0% 2/1/10 (c)(d)	1,955,000		547,400
9.875% 2/1/10 (c)	1,085,000		379,750
11.25% 11/1/08 (c)	1,490,000		540,125
TELUS Corp. yankee 8% 6/1/11	3,000,000		3,465,000
U.S. West Communications:
7.2% 11/10/26	315,000		302,400
7.25% 9/15/25	310,000		291,400
Verizon New York, Inc. 6.875% 4/1/12	2,000,000		2,354,328
WorldCom, Inc.:
6.4% 8/15/05 (c)	1,475,000		442,500
7.5% 5/15/11 (c)	3,415,000		1,024,500
			26,027,751
Wireless Telecommunication Services - 0.6%
AT&T Wireless Services, Inc.:
7.875% 3/1/11	1,500,000		1,771,533

	Principal Amount		Value (Note 1)
8.75% 3/1/31	$ 1,000,000		$ 1,236,065
Centennial Cellular Operating Co./Centennial Communications Corp. 10.125% 6/15/13 (f)	420,000		417,900
Crown Castle International Corp.:
9.375% 8/1/11	2,065,000		2,142,438
9.5% 8/1/11	205,000		211,150
10.75% 8/1/11	385,000		413,875
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375% 3/15/13 (f)	2,130,000		2,369,625
Millicom International Cellular SA 11% 6/1/06 (f)	885,000		873,938
Nextel Communications, Inc.:
9.375% 11/15/09	2,590,000		2,777,775
9.5% 2/1/11	595,000		660,450
9.75% 10/31/07	3,670,000		3,816,800
Rogers Wireless, Inc. 9.625% 5/1/11	2,320,000		2,621,600
			19,313,149
TOTAL TELECOMMUNICATION SERVICES			45,340,900
UTILITIES - 2.3%
Electric Utilities - 1.0%
AES Drax Holdings Ltd. 10.41% 12/31/20	2,400,000		1,512,000
CMS Energy Corp.:
7.5% 1/15/09	985,000		970,225
8.375% 7/1/03	1,755,000		1,755,000
8.5% 4/15/11	555,000		574,425
8.9% 7/15/08	175,000		182,000
9.875% 10/15/07	1,480,000		1,576,200
Constellation Energy Group, Inc. 7% 4/1/12	1,180,000		1,374,499
Dominion Resources, Inc. 8.125% 6/15/10	2,145,000		2,658,075
DTE Energy Co. 7.05% 6/1/11	650,000		760,212
Duke Capital Corp. 6.75% 2/15/32	100,000		100,798
FirstEnergy Corp. 6.45% 11/15/11	1,635,000		1,794,184
Illinois Power Co.:
7.5% 6/15/09	1,880,000		1,898,800
11.5% 12/15/10 (f)	1,475,000		1,681,500
Nevada Power Co. 10.875% 10/15/09	305,000		343,125
Pacific Gas & Electric Co.:
6.75% 10/1/23	675,000		675,000
7.05% 3/1/24	340,000		346,800
10% 11/1/05 (f)(h)	2,300,000		2,369,000
PG&E Corp. 6.875% 7/15/08 (f)	650,000		674,375
PSI Energy, Inc. 6.65% 6/15/06	2,450,000		2,693,611
Public Service Co. of Colorado 7.875% 10/1/12	1,080,000		1,359,687
Sierra Pacific Power Co. 8% 6/1/08	1,495,000		1,539,850
Southern California Edison Co.:
7.125% 7/15/25	95,000		95,950
7.25% 3/1/26	285,000		288,563
7.625% 1/15/10	1,472,000		1,567,680
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
UTILITIES - continued
Electric Utilities - continued
Southern California Edison Co.: - continued
8% 2/15/07 (f)	$ 1,355,000		$ 1,490,500
TECO Energy, Inc. 7% 5/1/12	1,140,000		1,111,500
			31,393,559
Gas Utilities - 0.7%
ANR Pipeline, Inc. 8.875% 3/15/10 (f)	450,000		492,750
CMS Panhandle Holding Co. 6.5% 7/15/09	1,010,000		1,113,525
Consolidated Natural Gas Co. 6.85% 4/15/11	885,000		1,051,811
El Paso Energy Corp.:
6.75% 5/15/09	1,695,000		1,550,925
6.95% 12/15/07	1,095,000		1,023,825
7.375% 12/15/12	200,000		179,000
7.8% 8/1/31	380,000		313,500
8.05% 10/15/30	245,000		211,925
Kinder Morgan Energy Partners LP 7.3% 8/15/33	2,250,000		2,701,933
Northwest Pipeline Corp.:
6.625% 12/1/07	485,000		499,550
8.125% 3/1/10	420,000		453,600
Panhandle Eastern Pipe Line Co.:
7.2% 8/15/24	150,000		153,000
8.25% 4/1/10	425,000		506,813
Ras Laffan Liquid Natural Gas Co. Ltd. yankee 8.294% 3/15/14 (f)	1,680,000		1,940,400
Southern Natural Gas Co.:
7.35% 2/15/31	2,305,000		2,328,050
8% 3/1/32	50,000		53,000
8.875% 3/15/10 (f)	530,000		580,350
Tennessee Gas Pipeline Co.:
7% 10/15/28	190,000		180,738
7.5% 4/1/17	95,000		97,613
8.375% 6/15/32	285,000		309,938
Transcontinental Gas Pipe Line Corp.:
6.125% 1/15/05	650,000		650,000
6.25% 1/15/08	1,335,000		1,328,325
8.875% 7/15/12	1,475,000		1,663,063
Williams Holdings of Delaware, Inc. 6.25% 2/1/06	265,000		259,700
			19,643,334
Multi-Utilities & Unregulated Power - 0.6%
AES Corp.:
8.75% 6/15/08	53,000		52,205
8.75% 5/15/13 (f)	2,410,000		2,506,400
8.875% 2/15/11	308,000		300,300
9.375% 9/15/10	294,000		295,470
9.5% 6/1/09	112,000		112,560
El Paso Corp. 7.875% 6/15/12 (f)	2,185,000		2,023,856

	Principal Amount		Value (Note 1)
Western Resources, Inc.:
7.125% 8/1/09	$ 315,000		$ 318,150
7.875% 5/1/07	1,110,000		1,221,000
9.75% 5/1/07	1,125,000		1,260,000
Williams Companies, Inc.:
6.5% 8/1/06	905,000		886,900
6.75% 1/15/06	1,125,000		1,099,688
7.125% 9/1/11	1,995,000		1,945,125
7.5% 1/15/31	635,000		600,075
7.625% 7/15/19	1,000,000		970,000
8.125% 3/15/12	1,260,000		1,291,500
8.625% 6/1/10	1,030,000		1,077,638
9.25% 3/15/04	1,000,000		1,025,000
			16,985,867
TOTAL UTILITIES			68,022,760
TOTAL NONCONVERTIBLE BONDS			490,884,163
TOTAL CORPORATE BONDS (Cost $463,842,166)		511,353,240
U.S. Government and Government Agency Obligations - 5.5%

U.S. Government Agency Obligations - 1.1%
Fannie Mae:
2.5% 6/15/08	2,740,000		2,726,862
6.25% 2/1/11	4,285,000		4,941,565
Farm Credit Systems Financial Assistance Corp. 8.8% 6/10/05	2,000,000		2,281,952
Federal Home Loan Bank:
2.25% 5/15/06	4,125,000		4,181,294
2.625% 7/15/08	2,800,000		2,795,912
Freddie Mac:
5.875% 3/21/11	9,265,000		10,421,911
6.875% 9/15/10	1,400,000		1,712,381
U.S. Department of Housing and Urban Development Government guaranteed participation certificates Series 1996-A, 7.63% 8/1/14	2,825,000		3,139,177
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			32,201,054
U.S. Treasury Obligations - 4.4%
U.S. Treasury Bills, yield at date of purchase 0.78% to 1.12% 7/3/03 to 9/18/03 (g)	6,150,000		6,146,415
U.S. Treasury Bonds:
6.25% 5/15/30	25,765,000		32,075,415
8% 11/15/21	3,287,000		4,761,913
11.75% 2/15/10	19,445,000		22,685,334
U.S. Treasury Notes:
1.625% 3/31/05	5,335,000		5,371,678
3.25% 8/15/07	11,070,000		11,553,017
4.375% 5/15/07	4,125,000		4,481,425
U.S. Government and Government Agency Obligations - continued
	Principal Amount		Value (Note 1)
U.S. Treasury Obligations - continued
U.S. Treasury Notes: - continued
6.5% 2/15/10	$ 19,520,000		$ 23,680,961
6.75% 5/15/05	17,420,000		19,184,454
TOTAL U.S. TREASURY OBLIGATIONS			129,940,612
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $152,568,814)		162,141,666
U.S. Government Agency - Mortgage Securities - 9.1%

Fannie Mae - 7.9%
5% 7/1/18 (i)	31,482,000		32,505,165
5.5% 11/1/16 to 6/1/18 (i)	2,253,969		2,341,548
5.5% 7/1/18 (i)	969,695		1,001,210
5.5% 7/1/33 (i)	6,000,000		6,200,625
5.5% 7/1/33 (i)	2,500,000		2,583,594
5.5% 7/1/33 (i)	4,000,000		4,133,750
5.5% 7/1/33 (i)	20,000,000		20,668,750
6% 6/1/13 to 1/1/29	47,623,390		49,728,349
6% 7/1/33 (i)	5,913,659		6,142,813
6.5% 6/1/13 to 9/1/32	64,593,449		67,528,143
6.5% 7/1/18 (i)	7,670,000		8,089,453
6.5% 7/1/18 (i)	985,000		1,038,867
7% 8/1/13 to 8/1/32	20,819,088		21,983,470
7.5% 7/1/16 to 11/1/31	6,978,496		7,426,547
8% 1/1/30 to 6/1/30	831,739		896,908
TOTAL FANNIE MAE			232,269,192
Freddie Mac - 0.1%
7.5% 5/1/17 to 11/1/31	2,283,622		2,432,144
8% 7/1/17 to 5/1/27	146,285		158,100
8.5% 7/1/22	17,868		19,430
TOTAL FREDDIE MAC			2,609,674
Government National Mortgage Association - 1.1%
6% 12/15/08 to 6/15/09	1,008,173		1,063,537
6.5% 6/15/08 to 8/15/27	13,930,274		14,720,800
7% 7/15/28 to 7/15/32	9,781,352		10,338,818
7.5% 9/15/22 to 8/15/28	4,896,563		5,220,343
8% 5/15/25 to 1/15/31	1,715,638		1,851,415
8.5% 12/15/16 to 12/15/30	774,350		834,784
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			34,029,697
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $261,056,970)		268,908,563
Asset-Backed Securities - 0.4%
	Principal Amount		Value (Note 1)
Capital One Master Trust Series 2001-7A Class A, 3.85% 8/15/07	$ 810,000		$ 829,767
DaimlerChrysler Auto Trust Series 2001-A Class A3, 5.16% 1/6/05	2,074,926		2,091,148
Ford Credit Auto Owner Trust Series 2001-B Class B, 5.71% 9/15/05	1,055,000		1,096,957
Household Private Label Credit Card Master Note Trust I Series 2002-1 Class A, 5.5% 1/18/11	5,000,000		5,466,992
Sears Credit Account Master Trust II Series 2000-1 Class B, 7.5% 11/15/07	2,650,000		2,703,822
TOTAL ASSET-BACKED SECURITIES (Cost $11,589,840)		12,188,686
Collateralized Mortgage Obligations - 0.2%

U.S. Government Agency - 0.2%
Fannie Mae planned amortization class:
Series 1999-54 Class PH, 6.5% 11/18/29	3,300,000		3,546,097
Series 1999-57 Class PH, 6.5% 12/25/29	2,600,000		2,776,568
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $5,372,290)		6,322,665
Commercial Mortgage Securities - 1.4%

Berkeley Federal Bank & Trust FSB Series 1994-1 Class B, 2.381% 8/1/24 (f)(h)	1,197,806		970,223
CBM Funding Corp. sequential pay Series 1996-1:
Class A3PI, 7.08% 11/1/07	2,505,910		2,736,003
Class B, 7.48% 2/1/08	2,320,000		2,657,367
CS First Boston Mortgage Securities Corp. Series 1998-C1 Class D, 7.17% 5/17/40	580,000		635,335
Deutsche Mortgage & Asset Receiving Corp. sequential pay Series 1998-C1 Class D, 7.231% 6/15/31	4,260,000		4,487,477
Equitable Life Assurance Society of the United States Series 174:
Class B1, 7.33% 5/15/06 (f)	3,500,000		3,960,503
Class C1, 7.52% 5/15/06 (f)	2,300,000		2,609,829
Class D1, 7.77% 5/15/06 (f)	2,200,000		2,476,753
First Chicago/Lennar Trust I Series 1997-CHL1 Class E, 7.9752% 4/29/39 (f)(h)	1,600,000		1,404,250
FMAC Loan Receivables Trust weighted average coupon Series 1997-A Class E, 0% 4/15/19 (c)(f)(h)	500,000		0
Commercial Mortgage Securities - continued
	Principal Amount		Value (Note 1)
GAFCO Franchisee Loan Trust Series 1998-1 Class D, 13.5% 6/1/16 (f)(h)	$ 1,300,000		$ 885,371
GS Mortgage Securities Corp. II Series 1998-GLII Class E, 7.1904% 4/13/31 (h)	1,205,000		1,188,412
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A:
Class B, 4.13% 11/20/37 (f)	1,050,000		1,045,406
Class C, 4.13% 11/20/37 (f)	1,050,000		1,012,348
LTC Commercial Mortgage pass thru certificates sequential pay Series 1998-1 Class A, 6.029% 5/28/30 (f)	1,685,201		1,693,627
Structured Asset Securities Corp. Series 1996-CFL Class E, 7.75% 2/25/28	223,500		223,157
Thirteen Affiliates of General Growth Properties, Inc.:
sequential pay Series 1 Class A2, 6.602% 11/15/07 (f)	4,200,000		4,770,246
Series 1:
Class D2, 6.992% 11/15/07 (f)	4,120,000		4,647,707
Class E2, 7.224% 11/15/07 (f)	2,450,000		2,740,305
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $37,319,968)		40,144,319
Municipal Securities - 0.0%

Illinois Gen. Oblig. 5.1% 6/1/33 (Cost $1,445,000)	1,445,000		1,420,970
Foreign Government and Government Agency Obligations - 0.4%

Chilean Republic:
5.625% 7/23/07	1,205,000		1,307,425
6.875% 4/28/09	1,630,000		1,875,315
7.125% 1/11/12	1,590,000		1,854,338
Polish Government 6.25% 7/3/12	2,505,000		2,899,538
State of Israel 4.625% 6/15/13	1,210,000		1,188,069
United Mexican States 4.625% 10/8/08	1,270,000		1,296,670
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $9,382,282)		10,421,355
Floating Rate Loans - 0.2%

CONSUMER DISCRETIONARY - 0.0%
Hotels, Restaurants & Leisure - 0.0%
Hilton Head Communications LP Tranche B term loan 0% 3/31/08 (h) (i)	1,250,000		1,025,000

	Principal Amount		Value (Note 1)
FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
Olympus Cable Holdings LLC Tranche B term loan 6% 9/30/10 (h)	$ 2,260,000		$ 2,011,400
UTILITIES - 0.1%
Electric Utilities - 0.1%
Centerpoint Energy House Electric LLC term loan 12.75% 11/11/05 (h)	875,000		1,015,000
CMS Energy Corp.:
Tranche B term loan 7.5% 4/30/04 (h)	230,814		231,391
Tranche C term loan 9% 9/30/04 (h)	410,811		413,892
			1,660,283
TOTAL FLOATING RATE LOANS (Cost $4,368,208)		4,696,683

Money Market Funds - 18.9%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	433,661,360		433,661,360
Fidelity Money Market Central Fund, 1.25% (b)	123,860,162		123,860,162
TOTAL MONEY MARKET FUNDS (Cost $557,521,522)		557,521,522
TOTAL INVESTMENT PORTFOLIO - 102.8% (Cost $2,971,871,141)			3,028,592,894
NET OTHER ASSETS - (2.8)%			(82,487,013)
NET ASSETS - 100%		$ 2,946,105,881

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Gain/(Loss)
Purchased
Equity Index Contracts
406 S&P 500 Index Contracts	Sept. 2003	$ 98,789,950	$ (2,254,057)

The face value of futures purchased as a percentage of net assets - 3.4%

Swap Agreements
Interest Rate Swap
Receive quarterly a fixed rate equal to 3.0732% and pay quarterly a floating rate based on 3-month LIBOR with Morgan Stanley, Inc.	April 2007	$ 14,530,000	$ 413,781

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(e) Debt obligation initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(f) 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 period end, the value of these securities amounted to $123,859,798 or 4.2% of net assets.

(g) 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 $6,146,415.

(h) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(i) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

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	14.6%
AAA,AA,A	3.1%
BBB	5.0%
BB	3.4%
B	6.4%
CCC,CC,C	1.7%
D	0.0%
Not Rated	0.4%
Equities	52.7%
Short-Term Investments and Net Other Assets	12.7%

We have used ratings from Moody's Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ratings. Percentages are adjusted for the effect of futures contracts, if applicable.

The fund invested in loans and loan participations, trade claims or other receivables. At period end the value of these investments amounted to $4,696,683 or 0.2% of net assets.

Purchases and sales of securities, other than short-term securities, aggregated $1,013,559,015 and $1,342,609,495, respectively, of which long-term U.S. government and government agency obligations aggregated $423,778,335 and $516,911,292, respectively.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $201,976,000 of which $168,073,000 and $33,903,000 will expire on December 31, 2009 and 2010, respectively.

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

Semiannual Report

Fidelity Variable Insurance Products: Asset Manager Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (cost $2,971,871,141) - See accompanying schedule		$ 3,028,592,894
Cash		1,267,842
Receivable for investments sold		9,919,493
Receivable for fund shares sold		828,389
Dividends receivable		1,890,661
Interest receivable		13,522,949
Unrealized gain on swap agreements		413,781
Other receivables		470,442
Total assets		3,056,906,451

Liabilities
Payable for investments purchased Regular delivery	$ 22,743,064
Delayed delivery	84,931,642
Payable for fund shares redeemed	1,589,046
Accrued management fee	1,319,376
Distribution fees payable	6,291
Other payables and accrued expenses	211,151
Total liabilities		110,800,570

Net Assets		$ 2,946,105,881
Net Assets consist of:
Paid in capital		$ 3,104,333,270
Undistributed net investment income		48,307,761
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(261,414,389)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		54,879,239
Net Assets		$ 2,946,105,881

Initial Class: Net Asset Value, offering price and redemption price per share ($2,899,085,714 ÷ 214,805,775 shares)		$ 13.50

Service Class: Net Asset Value, offering price and redemption price per share ($28,247,732 ÷ 2,104,572 shares)		$ 13.42

Service Class 2: Net Asset Value, offering price and redemption price per share ($18,772,435 ÷ 1,406,697 shares)		$ 13.35

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 12,113,020
Interest		37,403,491
Security lending		6,089
Total income		49,522,600

Expenses
Management fee	$ 7,510,326
Transfer agent fees	974,225
Distribution fees	34,494
Accounting and security lending fees	285,855
Non-interested trustees' compensation	5,717
Depreciation in deferred trustee compensation account	(4,588)
Custodian fees and expenses	46,831
Audit	28,194
Legal	4,932
Miscellaneous	54,711
Total expenses before reductions	8,940,697
Expense reductions	(400,806)	8,539,891
Net investment income (loss)		40,982,709
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(50,026,571)
Foreign currency transactions	55
Futures contracts	7,192,611
Swap agreements	90,049
Total net realized gain (loss)		(42,743,856)
Change in net unrealized appreciation (depreciation) on: Investment securities	276,182,415
Assets and liabilities in foreign currencies	17
Futures contracts	(1,585,859)
Swap agreements	413,781
Total change in net unrealized appreciation (depreciation)		275,010,354
Net gain (loss)		232,266,498
Net increase (decrease) in net assets resulting from operations		$ 273,249,207

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

Semiannual Report

Fidelity Variable Insurance Products: Asset Manager Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 40,982,709	$ 109,768,266
Net realized gain (loss)	(42,743,856)	(46,561,077)
Change in net unrealized appreciation (depreciation)	275,010,354	(377,907,555)
Net increase (decrease) in net assets resulting from operations	273,249,207	(314,700,366)
Distributions to shareholders from net investment income	(104,597,799)	(130,190,101)
Share transactions - net increase (decrease)	(49,548,950)	(319,152,869)
Total increase (decrease) in net assets	119,102,458	(764,043,336)

Net Assets
Beginning of period	2,827,003,423	3,591,046,759
End of period (including undistributed net investment income of $48,307,761 and undistributed net investment income of $119,686,292, respectively)	$ 2,946,105,881	$ 2,827,003,423

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
Shares Sold	5,373,939	165,991	199,206
Reinvested	8,641,306	77,907	49,303
Redeemed	(17,714,760)	(167,969)	(141,444)
Net increase (decrease)	(3,699,515)	75,929	107,065

Dollars Sold	$ 68,882,741	$ 2,110,308	$ 2,490,006
Reinvested	103,090,780	924,753	582,266
Redeemed	(223,723,064)	(2,128,414)	(1,778,326)
Net increase (decrease)	$ (51,749,543)	$ 906,647	$ 1,293,946

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
Shares Sold	11,802,258	630,505	749,638
Reinvested	9,394,979	82,195	33,492
Redeemed	(47,257,499)	(857,386)	(318,829)
Net increase (decrease)	(26,060,262)	(144,686)	464,301

Dollars Sold	$ 156,258,651	$ 8,087,879	$ 9,704,552
Reinvested	128,617,266	1,118,681	454,154
Redeemed	(608,503,126)	(10,914,840)	(3,976,086)
Net increase (decrease)	$ (323,627,209)	$ (1,708,280)	$ 6,182,620

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 103,090,780	$ 924,753	$ 582,266
From net realized gain	-	-	-
Total	$ 103,090,780	$ 924,753	$ 582,266

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 128,617,266	$ 1,118,681	$ 454,154
From net realized gain	-	-	-
Total	$ 128,617,266	$ 1,118,681	$ 454,154

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

Asset Manager Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 12.75	$ 14.51	$ 16.01	$ 18.67	$ 18.16	$ 18.01
Income from Investment Operations
Net investment income (loss)^E	.19	.46	.51	.62	.59	.59
Net realized and unrealized gain (loss)	1.04	(1.69)	(1.13)	(1.30)	1.28	1.84
Total from investment operations	1.23	(1.23)	(.62)	(.68)	1.87	2.43
Distributions from net investment income	(.48)	(.53)	(.64)	(.60)	(.60)	(.57)
Distributions from net realized gain	-	-	(.24)	(1.38)	(.76)	(1.71)
Total distributions	(.48)	(.53)	(.88)	(1.98)	(1.36)	(2.28)
Net asset value, end of period	$ 13.50	$ 12.75	$ 14.51	$ 16.01	$ 18.67	$ 18.16
Total Return^B,C,D	10.14%	(8.73)%	(4.15)%	(3.87)%	11.09%	15.05%
Ratios to Average Net Assets^F
Expenses before expense reductions	.63%^A	.63%	.64%	.61%	.63%	.64%
Expenses net of voluntary waivers, if any	.63%^A	.63%	.64%	.61%	.63%	.64%
Expenses net of all reductions	.60%^A	.61%	.63%	.61%	.62%	.63%
Net investment income (loss)	2.92%^A	3.49%	3.53%	3.73%	3.36%	3.46%
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,899,086	$ 2,784,945	$ 3,547,730	$ 4,128,169	$ 4,936,926	$ 4,905,468
Portfolio turnover rate	82%^A	140%	108%	76%	94%	113%

^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.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 12.66	$ 14.41	$ 15.91	$ 18.59	$ 18.10	$ 17.99
Income from Investment Operations
Net investment income (loss)^E	.18	.44	.49	.60	.56	.57
Net realized and unrealized gain (loss)	1.04	(1.68)	(1.12)	(1.31)	1.29	1.82
Total from investment operations	1.22	(1.24)	(.63)	(.71)	1.85	2.39
Distributions from net investment income	(.46)	(.51)	(.63)	(.59)	(.60)	(.57)
Distributions from net realized gain	-	-	(.24)	(1.38)	(.76)	(1.71)
Total distributions	(.46)	(.51)	(.87)	(1.97)	(1.36)	(2.28)
Net asset value, end of period	$ 13.42	$ 12.66	$ 14.41	$ 15.91	$ 18.59	$ 18.10
Total Return^B,C,D	10.11%	(8.85)%	(4.24)%	(4.06)%	11.01%	14.82%
Ratios to Average Net Assets^F
Expenses before expense reductions	.74%^A	.74%	.74%	.72%	.74%	.78%
Expenses net of voluntary waivers, if any	.74%^A	.74%	.74%	.72%	.74%	.78%
Expenses net of all reductions	.71%^A	.72%	.73%	.71%	.73%	.77%
Net investment income (loss)	2.80%^A	3.38%	3.43%	3.62%	3.25%	3.49%
Supplemental Data
Net assets, end of period (000 omitted)	$ 28,248	$ 25,692	$ 31,324	$ 30,583	$ 23,677	$ 5,801
Portfolio turnover rate	82%^A	140%	108%	76%	94%	113%

^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.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 12.59	$ 14.36	$ 15.89	$ 18.17
Income from Investment Operations
Net investment income (loss)^E	.17	.41	.46	.53
Net realized and unrealized gain (loss)	1.04	(1.67)	(1.11)	(.84)
Total from investment operations	1.21	(1.26)	(.65)	(.31)
Distributions from net investment income	(.45)	(.51)	(.64)	(.59)
Distributions from net realized gain	-	-	(.24)	(1.38)
Total distributions	(.45)	(.51)	(.88)	(1.97)
Net asset value, end of period	$ 13.35	$ 12.59	$ 14.36	$ 15.89
Total Return^B,C,D	10.08%	(9.03)%	(4.38)%	(1.97)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.91%^A	.90%	.90%	.88%^A
Expenses net of voluntary waivers, if any	.91%^A	.90%	.90%	.88%^A
Expenses net of all reductions	.88%^A	.88%	.89%	.88%^A
Net investment income (loss)	2.64%^A	3.22%	3.27%	3.46%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 18,772	$ 16,367	$ 11,993	$ 4,785
Portfolio turnover rate	82%^A	140%	108%	76%

^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 For the period January 12, 2000 (commencement of operations) to December 31, 2001.

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

Asset Manager Portfolio

Fidelity Variable Insurance Products: Contrafund Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Colgate-Palmolive Co.	3.4
3M Co.	3.2
Berkshire Hathaway, Inc. Class A	3.0
Avon Products, Inc.	2.7
Lockheed Martin Corp.	2.6
	14.9
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Consumer Discretionary	17.5
Financials	15.6
Health Care	14.9
Industrials	12.7
Consumer Staples	10.4

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks and Equity Futures	94.4%
	Bonds	0.6%
	Short-Term Investments and Net Other Assets	5.0%

* Foreign investments

21.2%

Semiannual Report

Fidelity Variable Insurance Products: Contrafund Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 93.4%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 17.3%
Auto Components - 0.3%
BorgWarner, Inc.	26,200		$ 1,687,280
Gentex Corp. (a)	652,100		19,960,781
			21,648,061
Automobiles - 1.5%
Harley-Davidson, Inc.	78,200		3,117,052
Honda Motor Co. Ltd.	827,100		31,512,510
Nissan Motor Co. Ltd.	3,880,200		36,764,896
Toyota Motor Corp.	2,000,500		51,812,951
			123,207,409
Hotels, Restaurants & Leisure - 2.1%
Applebee's International, Inc.	29,000		911,470
Brinker International, Inc. (a)	106,500		3,836,130
CBRL Group, Inc.	115,700		4,496,102
Friendly Ice Cream Corp. (a)	204,600		1,293,072
GTECH Holdings Corp.	178,400		6,716,760
Harrah's Entertainment, Inc. (a)	18,600		748,464
Hilton Group PLC	1,148,200		3,496,816
International Game Technology	155,700		15,932,781
Kerzner International Ltd. (a)	44,900		1,446,229
Krispy Kreme Doughnuts, Inc. (a)	268,100		11,040,358
Mandalay Resort Group	43,400		1,382,290
McDonald's Corp.	146,000		3,220,760
MGM MIRAGE (a)	135,600		4,634,808
P.F. Chang's China Bistro, Inc. (a)	639,200		31,455,032
Panera Bread Co. Class A (a)	546,200		21,848,000
Red Robin Gourmet Burgers, Inc.	73,300		1,389,768
Ryan's Family Steak Houses, Inc. (a)	282,750		3,958,500
Stanley Leisure PLC	500,798		2,644,178
Starbucks Corp. (a)	901,900		22,114,588
Station Casinos, Inc. (a)	414,500		10,466,125
The Cheesecake Factory, Inc. (a)	295,700		10,612,673
Wendy's International, Inc.	55,500		1,607,835
William Hill PLC	2,963,263		14,002,761
Wynn Resorts Ltd.	23,000		406,870
			179,662,370
Household Durables - 1.3%
Blyth, Inc.	69,000		1,876,800
D.R. Horton, Inc.	1,516,370		42,609,997
Fortune Brands, Inc.	364,900		19,047,780
Garmin Ltd. (a)	290,709		11,590,568
Harman International Industries, Inc.	350,400		27,730,656
Mohawk Industries, Inc. (a)	151,820		8,430,565
			111,286,366
Internet & Catalog Retail - 2.8%
Amazon.com, Inc. (a)	132,100		4,820,329
eBay, Inc. (a)	741,400		77,239,052
InterActiveCorp (a)	3,766,542		149,042,067

	Shares		Value (Note 1)
NetFlix, Inc. (a)	235,600		$ 6,019,580
Overstock.com, Inc. (a)	117,300		1,702,023
			238,823,051
Leisure Equipment & Products - 0.4%
Leapfrog Enterprises, Inc. Class A	77,400		2,462,094
Mattel, Inc.	1,703,100		32,222,652
Mega Bloks, Inc. (a)	40,250		627,133
			35,311,879
Media - 3.0%
AOL Time Warner, Inc. (a)	286,080		4,603,027
British Sky Broadcasting Group PLC (BSkyB) (a)	258,300		2,870,832
British Sky Broadcasting Group PLC (BSkyB) sponsored ADR (a)	130,800		5,899,080
Comcast Corp. Class A (special) (a)	538,000		15,510,540
Cox Communications, Inc. Class A (a)	22,300		711,370
E.W. Scripps Co. Class A	439,500		38,992,440
Entercom Communications Corp. Class A (a)	119,600		5,861,596
Fox Entertainment Group, Inc. Class A (a)	1,123,600		32,337,208
Getty Images, Inc. (a)	218,500		9,024,050
Lee Enterprises, Inc.	53,700		2,015,361
Liberty Media Corp. Class A (a)	195,000		2,254,200
LIN TV Corp. Class A (a)	232,000		5,463,600
McGraw-Hill Companies, Inc.	62,700		3,887,400
Meredith Corp.	70,700		3,110,800
Pearson PLC sponsored ADR	381,800		3,665,280
Pixar (a)	336,700		20,484,828
Reed Elsevier PLC	655,100		5,467,526
SBS Broadcasting SA (a)	1,100		19,635
The New York Times Co. Class A	87,900		3,999,450
Tribune Co.	496,400		23,976,120
Viacom, Inc. Class B (non-vtg.) (a)	777,236		33,934,124
Vivendi Universal SA sponsored ADR	411,800		7,593,592
Washington Post Co. Class B	29,200		21,400,680
Westwood One, Inc. (a)	3,300		111,969
			253,194,708
Multiline Retail - 1.0%
99 Cents Only Stores (a)	1,539,666		52,841,337
Debenhams PLC	1,029,287		7,159,481
Dollar General Corp.	173,300		3,164,458
JCPenney Co., Inc.	450,900		7,597,665
Marks & Spencer Group PLC	2,173,800		11,360,575
Tuesday Morning Corp. (a)	57,600		1,514,880
			83,638,396
Specialty Retail - 3.9%
Abercrombie & Fitch Co. Class A (a)	21,700		616,497
Advance Auto Parts, Inc. (a)	374,200		22,788,780
AnnTaylor Stores Corp. (a)	205,200		5,940,540
AutoZone, Inc. (a)	52,500		3,988,425
Bed Bath & Beyond, Inc. (a)	1,618,000		62,794,580
Best Buy Co., Inc. (a)	21,700		953,064
CarMax, Inc. (a)	86,700		2,614,005
Common Stocks - continued
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - continued
Specialty Retail - continued
Chico's FAS, Inc. (a)	430,800		$ 9,068,340
Claire's Stores, Inc.	150,500		3,816,680
Dick's Sporting Goods, Inc.	25,400		931,672
Gap, Inc.	817,800		15,341,928
Guitar Center, Inc. (a)	90,900		2,636,100
Hennes & Mauritz AB (H&M) (B Shares)	229,200		5,282,297
Hot Topic, Inc. (a)	160,000		4,305,600
Lowe's Companies, Inc.	1,632,500		70,115,875
Pacific Sunwear of California, Inc. (a)	878,250		21,157,043
PETCO Animal Supplies, Inc. (a)	521,100		11,328,714
PETsMART, Inc.	886,700		14,781,289
Pier 1 Imports, Inc.	540,800		11,032,320
Ross Stores, Inc.	166,380		7,111,081
Select Comfort Corp. (a)	44,800		733,824
TJX Companies, Inc.	1,116,800		21,040,512
Urban Outfitters, Inc. (a)	62,900		2,258,110
Weight Watchers International, Inc. (a)	559,500		25,451,655
			326,088,931
Textiles Apparel & Luxury Goods - 1.0%
Burberry Ltd.	3,105,373		12,746,848
Coach, Inc. (a)	718,562		35,741,274
Columbia Sportswear Co. (a)	9,800		503,818
Delta Woodside Industries, Inc. (a)	22,175		63,199
Fossil, Inc. (a)	13,700		322,772
Gildan Activewear, Inc. Class A (sub. vtg.) (a)	54,600		1,437,072
K-Swiss, Inc. Class A	161,200		5,564,624
Liz Claiborne, Inc.	97,000		3,419,250
Puma AG	118,631		11,815,185
Quiksilver, Inc. (a)	468,700		7,728,863
			79,342,905
TOTAL CONSUMER DISCRETIONARY			1,452,204,076
CONSUMER STAPLES - 10.4%
Beverages - 1.0%
Anheuser-Busch Companies, Inc.	735,300		37,537,065
Cott Corp. (a)	251,100		5,192,282
Diageo PLC	1,145,123		12,527,640
Molson, Inc. Class A	456,200		12,351,045
PepsiCo, Inc.	160,110		7,124,895
The Coca-Cola Co.	204,800		9,504,768
			84,237,695
Food & Staples Retailing - 1.6%
Costco Wholesale Corp. (a)	118,800		4,348,080
George Weston Ltd.	49,260		3,742,927
Koninklijke Ahold NV sponsored ADR	74,400		622,728
Loblaw Companies Ltd.	52,990		2,437,587
Safeway PLC	679,698		2,896,881
Sysco Corp.	1,738,500		52,224,540

	Shares		Value (Note 1)
Tesco PLC	6,263,787		$ 22,730,759
Wal-Mart Stores, Inc.	29,400		1,577,898
Whole Foods Market, Inc. (a)	819,107		38,932,156
William Morrison Supermarkets PLC	2,039,734		6,203,521
			135,717,077
Food Products - 0.5%
Bunge Ltd.	19,800		566,280
Dean Foods Co. (a)	351,750		11,080,125
Hershey Foods Corp.	120,300		8,380,098
Horizon Organic Holding Corp. (a)	110,600		2,635,598
Kraft Foods, Inc. Class A	91,940		2,992,647
Saputo, Inc.	149,300		2,905,579
Wm. Wrigley Jr. Co.	283,700		15,952,451
			44,512,778
Household Products - 3.5%
Colgate-Palmolive Co.	4,934,730		285,967,594
Procter & Gamble Co.	40,400		3,602,872
			289,570,466
Personal Products - 3.8%
Avon Products, Inc.	3,682,028		229,022,142
Gillette Co.	2,822,300		89,918,478
			318,940,620
TOTAL CONSUMER STAPLES			872,978,636
ENERGY - 4.7%
Energy Equipment & Services - 0.5%
Baker Hughes, Inc.	64,500		2,165,265
BJ Services Co. (a)	69,100		2,581,576
Carbo Ceramics, Inc.	25,400		946,150
ENSCO International, Inc.	1,790		48,151
Halliburton Co.	368,100		8,466,300
National-Oilwell, Inc. (a)	63,672		1,400,784
Noble Corp. (a)	167,000		5,728,100
Schlumberger Ltd. (NY Shares)	18,700		889,559
Smith International, Inc. (a)	427,675		15,712,780
Willbros Group, Inc. (a)	57,500		597,425
			38,536,090
Oil & Gas - 4.2%
Apache Corp.	299,490		19,484,819
BP PLC sponsored ADR	410,232		17,237,949
Burlington Resources, Inc.	230,300		12,452,321
Canadian Natural Resources Ltd.	21,700		865,392
Chesapeake Energy Corp.	61,700		623,170
China Petroleum & Chemical Corp. sponsored ADR	175,840		4,246,536
EnCana Corp.	5,024,512		192,734,286
EOG Resources, Inc.	68,600		2,870,224
Evergreen Resources, Inc. (a)	14,500		787,495
Exxon Mobil Corp.	78,542		2,820,443
Murphy Oil Corp.	601,800		31,654,680
Noble Energy, Inc.	83,200		3,144,960
Common Stocks - continued
	Shares		Value (Note 1)
ENERGY - continued
Oil & Gas - continued
Occidental Petroleum Corp.	20,500		$ 687,775
Petro-Canada	289,300		11,582,303
PetroChina Co. Ltd. sponsored ADR	252,300		7,619,460
Pioneer Natural Resources Co. (a)	49,600		1,294,560
Pogo Producing Co.	171,700		7,340,175
Premcor, Inc. (a)	731,700		15,768,135
Progress Energy Ltd. (a)	112,700		827,816
Suncor Energy, Inc.	332,080		6,243,439
Talisman Energy, Inc.	152,370		6,952,630
Total SA sponsored ADR	47,300		3,585,340
Valero Energy Corp.	2,100		76,293
YUKOS Corp. sponsored ADR	21,700		1,207,605
			352,107,806
TOTAL ENERGY			390,643,896
FINANCIALS - 15.3%
Capital Markets - 0.1%
Merrill Lynch & Co., Inc.	122,200		5,704,296
UBS AG (NY Shares)	40,100		2,221,540
			7,925,836
Commercial Banks - 4.2%
Allied Irish Banks PLC	324,755		4,864,737
Australia & New Zealand Banking Group Ltd.	686,261		8,602,121
Bank of America Corp.	75,300		5,950,959
Bank of Ireland	2,080,540		25,177,060
Bank One Corp.	126,100		4,688,398
Charter One Financial, Inc.	37,800		1,178,604
Commerce Bancorp, Inc., New Jersey	1,122,617		41,649,091
Danske Bank AS	70,200		1,370,860
Fifth Third Bancorp	1,612,740		92,474,512
First Bancorp, Puerto Rico	5,400		148,230
First Community Bancorp, California	25,700		801,069
M&T Bank Corp.	527,600		44,434,472
National Australia Bank Ltd.	263,000		5,934,312
North Fork Bancorp, Inc., New York	701,200		23,882,872
Popular, Inc.	45,000		1,736,550
Royal Bank of Canada	53,300		2,269,145
Royal Bank of Scotland Group PLC	2,035,166		57,264,585
SouthTrust Corp.	805,900		21,920,480
Texas Regional Bancshares, Inc. Class A	91,490		3,174,703
UCBH Holdings, Inc.	220,330		6,319,064
UnionBanCal Corp.	1		41
Valley National Bancorp	7,980		210,273
Wells Fargo & Co.	21,300		1,073,520
			355,125,658
Consumer Finance - 1.2%
MBNA Corp.	212,400		4,426,416

	Shares		Value (Note 1)
SLM Corp.	2,415,300		$ 94,607,301
WFS Financial, Inc. (a)	12,600		422,226
			99,455,943
Diversified Financial Services - 0.7%
CIT Group, Inc.	216,500		5,336,725
Citigroup, Inc.	249,300		10,670,040
Moody's Corp.	844,300		44,503,053
			60,509,818
Insurance - 7.8%
ACE Ltd.	233,200		7,996,428
AFLAC, Inc.	396,500		12,192,375
Allstate Corp.	698,600		24,905,090
American International Group, Inc.	1,469,114		81,065,711
Aon Corp.	349,000		8,403,920
Arch Capital Group Ltd. (a)	175,100		6,081,223
Berkshire Hathaway, Inc. Class A (a)	3,456		250,560,000
Brit Insurance Holdings PLC (a)	2,520,400		3,285,167
Brown & Brown, Inc.	44,500		1,446,250
Cincinnati Financial Corp.	97,400		3,612,566
Everest Re Group Ltd.	682,180		52,186,770
Fidelity National Financial, Inc.	27,100		833,596
HCC Insurance Holdings, Inc.	155,700		4,604,049
IPC Holdings Ltd.	151,600		5,078,600
Markel Corp. (a)	36,750		9,408,000
MetLife, Inc.	75,700		2,143,824
Montpelier Re Holdings Ltd.	1,120,400		35,404,640
Old Republic International Corp.	86,300		2,957,501
PartnerRe Ltd.	415,400		21,231,094
Progressive Corp.	125,200		9,152,120
RenaissanceRe Holdings Ltd.	683,965		31,134,087
SAFECO Corp.	478,500		16,881,480
StanCorp Financial Group, Inc.	25,800		1,347,276
USI Holdings Corp.	444,487		5,227,167
W.R. Berkley Corp.	71,400		3,762,780
White Mountains Insurance Group Ltd.	7,400		2,923,000
Willis Group Holdings Ltd.	847,400		26,057,550
XL Capital Ltd. Class A	313,400		26,012,200
			655,894,464
Real Estate - 0.1%
American Financial Realty Trust (SBI)	46,700		696,297
Corrections Corp. of America (a)	893		22,620
Equity Residential (SBI)	2,100		54,495
General Growth Properties, Inc.	10,000		624,400
ResortQuest International, Inc. (a)	192,100		847,161
Simon Property Group, Inc.	59,100		2,306,673
			4,551,646
Thrifts & Mortgage Finance - 1.2%
Astoria Financial Corp.	43,000		1,200,990
Doral Financial Corp.	500,450		22,345,093
Golden West Financial Corp., Delaware	879,700		70,384,797
NetBank, Inc.	8,300		109,228
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Thrifts & Mortgage Finance - continued
New York Community Bancorp, Inc.	221,700		$ 6,449,253
W Holding Co., Inc.	171,500		2,901,780
			103,391,141
TOTAL FINANCIALS			1,286,854,506
HEALTH CARE - 14.9%
Biotechnology - 1.7%
Amgen, Inc. (a)	118,400		7,866,496
Amylin Pharmaceuticals, Inc. (a)	718,400		15,725,776
Celgene Corp. (a)	9,700		294,880
Charles River Laboratories International, Inc. (a)	2,100		67,578
Gen-Probe, Inc. (a)	50,400		2,059,848
Genentech, Inc. (a)	737,200		53,166,864
Gilead Sciences, Inc. (a)	813,880		45,235,450
ICOS Corp. (a)	5,400		198,450
IDEXX Laboratories, Inc. (a)	180,650		6,059,001
MedImmune, Inc. (a)	203,900		7,415,843
Neurocrine Biosciences, Inc. (a)	102,100		5,098,874
			143,189,060
Health Care Equipment & Supplies - 6.0%
Advanced Medical Optics, Inc. (a)	64,500		1,099,725
Advanced Neuromodulation Systems, Inc. (a)	139,700		7,232,269
Alcon, Inc.	1,099,000		50,224,300
Becton, Dickinson & Co.	86,100		3,344,985
Bio-Rad Laboratories, Inc. Class A (a)	115,500		6,392,925
Biomet, Inc.	587,800		16,846,348
Biosite, Inc. (a)	104,600		5,031,260
Boston Scientific Corp. (a)	414,100		25,301,510
C.R. Bard, Inc.	56,500		4,029,015
Centerpulse AG (Reg.) (a)	59,934		16,167,809
Cooper Companies, Inc.	43,300		1,505,541
CTI Molecular Imaging, Inc.	630,300		11,918,973
DENTSPLY International, Inc.	1,351,662		55,282,976
Edwards Lifesciences Corp. (a)	107,900		3,467,906
Guidant Corp.	62,100		2,756,619
Medtronic, Inc.	453,600		21,759,192
Mentor Corp.	120,000		2,325,600
Nobel Biocare Holding AG (Switzerland)	61,120		4,091,403
ResMed, Inc. (a)	28,300		1,109,360
Smith & Nephew PLC	10,737,553		61,891,898
St. Jude Medical, Inc. (a)	292,676		16,828,870
Stryker Corp.	380,900		26,423,033
Synthes-Stratec, Inc.	3,629		2,613,245
Varian Medical Systems, Inc. (a)	495,600		28,531,692

	Shares		Value (Note 1)
Wilson Greatbatch Technologies, Inc. (a)	133,000		$ 4,801,300
Zimmer Holdings, Inc. (a)	2,723,312		122,685,206
			503,662,960
Health Care Providers & Services - 2.7%
Advisory Board Co. (a)	133,800		5,421,576
Aetna, Inc.	301,500		18,150,300
American Healthways, Inc. (a)	63,500		2,293,620
Caremark Rx, Inc. (a)	314,964		8,088,276
Health Management Associates, Inc. Class A	1,287,090		23,746,811
ICON PLC sponsored ADR (a)	2,000		63,640
IMPAC Medical Systems, Inc. (a)	139,762		2,918,231
Odyssey Healthcare, Inc. (a)	174,550		6,458,350
Patterson Dental Co. (a)	1,654,000		75,058,520
PDI, Inc. (a)	9,500		96,520
UnitedHealth Group, Inc.	1,303,800		65,515,950
VistaCare, Inc. Class A	146,200		3,554,122
WebMD Corp. (a)	1,322,900		14,327,007
WellPoint Health Networks, Inc. (a)	25,200		2,124,360
			227,817,283
Pharmaceuticals - 4.5%
Altana AG	388,877		24,599,549
AstraZeneca PLC sponsored ADR	237,000		9,662,490
Barr Laboratories, Inc. (a)	70,400		4,611,200
Biovail Corp. (a)	19,290		900,811
Bristol-Myers Squibb Co.	108,000		2,932,200
Forest Laboratories, Inc. (a)	2,200		120,450
IVAX Corp. (a)	65,000		1,160,250
Johnson & Johnson	1,606,050		83,032,785
Kyorin Pharmaceutical Co. Ltd.	27,000		370,407
Merck & Co., Inc.	793,300		48,034,315
Novartis AG sponsored ADR	820,200		32,652,162
Novo Nordisk AS Series B	624,200		21,911,768
Pfizer, Inc.	1,717,065		58,637,770
Pharmaceutical Resources, Inc. (a)	76,900		3,741,954
Roche Holding AG (participation certificate)	158,060		12,428,860
Schering AG	74,900		3,672,093
Stada Arzneimittel AG	70,434		4,492,813
Teva Pharmaceutical Industries Ltd. sponsored ADR	1,111,900		63,300,467
Wyeth	119,200		5,429,560
			381,691,904
TOTAL HEALTH CARE			1,256,361,207
INDUSTRIALS - 12.7%
Aerospace & Defense - 3.1%
Bombardier, Inc. Class B (sub. vtg.)	4,092,700		13,877,162
Honeywell International, Inc.	21,700		582,645
L-3 Communications Holdings, Inc. (a)	200		8,698
Lockheed Martin Corp.	4,564,540		217,135,168
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Aerospace & Defense - continued
United Defense Industries, Inc. (a)	251,200		$ 6,516,128
Veridian Corp.	664,800		23,194,872
			261,314,673
Air Freight & Logistics - 0.7%
C.H. Robinson Worldwide, Inc.	1,058,061		37,624,649
FedEx Corp.	64,700		4,013,341
United Parcel Service, Inc. Class B	327,000		20,829,900
			62,467,890
Airlines - 2.2%
Continental Airlines, Inc. Class B (a)	357,900		5,357,763
JetBlue Airways Corp. (a)	1,073,536		45,399,837
Ryanair Holdings PLC:
warrants (UBS Warrant Programme) 2/25/04 (a)	192,400		1,388,989
sponsored ADR (a)	2,679,857		120,325,579
Southwest Airlines Co.	539,500		9,279,400
			181,751,568
Commercial Services & Supplies - 1.3%
Apollo Group, Inc. Class A (a)	670,800		41,428,608
Aramark Corp. Class B (a)	613,950		13,764,759
Avery Dennison Corp.	120,500		6,049,100
Carlisle Holdings Ltd. (non-vtg.) (a)	205,500		678,150
Central Parking Corp.	57,700		713,172
Cintas Corp.	43,897		1,555,710
Corinthian Colleges, Inc. (a)	383,141		18,609,158
Corporate Executive Board Co. (a)	23,400		948,402
Dun & Bradstreet Corp. (a)	44,700		1,837,170
Education Management Corp. (a)	86,700		4,610,706
H&R Block, Inc.	273,300		11,820,225
Hewitt Associates, Inc. Class A	32,600		767,730
Hudson Highland Group, Inc. (a)	9,675		183,922
Kroll, Inc. (a)	75,700		2,048,442
Monster Worldwide, Inc.	349,700		6,899,581
Robert Half International, Inc. (a)	21,700		410,998
Stericycle, Inc. (a)	21,600		831,168
			113,157,001
Construction & Engineering - 0.3%
Granite Construction, Inc.	31,900		611,204
Jacobs Engineering Group, Inc. (a)	554,020		23,351,943
			23,963,147
Electrical Equipment - 0.1%
American Power Conversion Corp.	308,600		4,811,074
Cooper Industries Ltd. Class A	38,100		1,573,530
Rockwell Automation, Inc.	64,500		1,537,680
			7,922,284
Industrial Conglomerates - 3.4%
3M Co.	2,103,610		271,323,618

	Shares		Value (Note 1)
Tomkins PLC	813,300		$ 3,055,723
Tyco International Ltd.	491,900		9,336,262
			283,715,603
Machinery - 1.3%
CUNO, Inc. (a)	1,000		36,120
Danaher Corp.	962,122		65,472,402
Dionex Corp. (a)	14,600		580,350
Donaldson Co., Inc.	141,200		6,276,340
ESCO Technologies, Inc. (a)	56,900		2,503,600
PACCAR, Inc.	451,370		30,494,557
Pall Corp.	90,700		2,040,750
Wabash National Corp. (a)	167,500		2,350,025
			109,754,144
Marine - 0.0%
CP Ships Ltd.	39,000		649,614
Road & Rail - 0.3%
Canadian National Railway Co.	84,150		4,063,275
Canadian Pacific Railway Ltd.	59,050		1,327,946
Heartland Express, Inc. (a)	411,900		9,164,775
Knight Transportation, Inc. (a)	182,100		4,534,290
Landstar System, Inc. (a)	86,516		5,437,531
Norfolk Southern Corp.	2,100		40,320
P.A.M. Transportation Services, Inc. (a)	21,398		537,518
			25,105,655
Trading Companies & Distributors - 0.0%
Fastenal Co.	15,912		540,053
MSC Industrial Direct Co., Inc. Class A (a)	36,400		651,560
			1,191,613
TOTAL INDUSTRIALS			1,070,993,192
INFORMATION TECHNOLOGY - 10.0%
Communications Equipment - 1.0%
Adtran, Inc. (a)	63,530		3,258,454
Avocent Corp. (a)	204,800		6,129,664
Cisco Systems, Inc. (a)	21,400		357,166
Comverse Technology, Inc. (a)	450,500		6,771,015
NetScreen Technologies, Inc. (a)	732,400		16,515,620
Nokia Corp. sponsored ADR	2,100		34,503
QUALCOMM, Inc.	113,800		4,068,350
SafeNet, Inc. (a)	10,600		296,588
Scientific-Atlanta, Inc.	760,300		18,125,552
Sycamore Networks, Inc. (a)	1,025,100		3,926,133
Telefonaktiebolaget LM Ericsson ADR (a)	1,132,609		12,039,634
UTStarcom, Inc. (a)	231,100		8,220,227
			79,742,906
Computers & Peripherals - 1.0%
Apple Computer, Inc. (a)	557,500		10,659,400
ATI Technologies, Inc. (a)	260,500		2,589,924
Avid Technology, Inc. (a)	65,100		2,283,057
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Computers & Peripherals - continued
Cray, Inc. (a)	133,500		$ 1,054,650
Dell Computer Corp. (a)	310,700		9,929,972
Electronics for Imaging, Inc. (a)	204,479		4,148,879
Hutchinson Technology, Inc. (a)	37,000		1,216,930
Lexmark International, Inc. Class A (a)	71,300		5,045,901
Logitech International SA (Reg.) (a)	55,452		2,084,785
M-Systems Flash Disk Pioneers Ltd. (a)	300,000		3,339,000
SanDisk Corp. (a)	21,900		883,665
Seagate Technology	1,198,700		21,157,055
Storage Technology Corp. (a)	106,300		2,736,162
Western Digital Corp. (a)	1,999,000		20,589,700
			87,719,080
Electronic Equipment & Instruments - 0.6%
CDW Corp. (a)	10,800		494,640
Flextronics International Ltd. (a)	573,300		5,956,587
Flir Systems, Inc. (a)	791,000		23,848,650
Lexar Media, Inc. (a)	131,200		1,251,648
National Instruments Corp. (a)	22,700		857,606
Roper Industries, Inc.	12,700		472,440
Symbol Technologies, Inc.	1,151,900		14,986,219
Thermo Electron Corp. (a)	93,200		1,959,064
Waters Corp. (a)	87,000		2,534,310
			52,361,164
Internet Software & Services - 1.0%
DoubleClick, Inc. (a)	92,432		854,996
Expedia, Inc. (a)	69,900		5,338,962
FindWhat.com (a)	91,900		1,740,586
Open Text Corp. (a)	37,800		1,069,102
United Online, Inc. (a)	139,600		3,537,464
WebEx Communications, Inc. (a)	331,630		4,626,239
webMethods, Inc. (a)	185,200		1,505,676
Yahoo!, Inc. (a)	1,937,586		63,475,317
			82,148,342
IT Services - 2.1%
Affiliated Computer Services, Inc. Class A (a)	283,400		12,959,882
Anteon International Corp. (a)	439,900		12,277,609
CheckFree Corp. (a)	2,200		61,248
Cognizant Technology Solutions Corp. Class A (a)	549,080		13,375,589
First Data Corp.	2,666,000		110,479,040
Iron Mountain, Inc. (a)	365,700		13,563,813
ManTech International Corp. Class A	107,100		2,054,178
Paychex, Inc.	118,700		3,479,097
SRA International, Inc. Class A (a)	215,200		6,886,400
The BISYS Group, Inc. (a)	151,400		2,781,218
			177,918,074
Office Electronics - 0.3%
Canon, Inc.	180,600		8,244,390

	Shares		Value (Note 1)
Xerox Corp. (a)	620,500		$ 6,571,095
Zebra Technologies Corp. Class A (a)	122,920		9,242,355
			24,057,840
Semiconductors & Semiconductor Equipment - 2.6%
Analog Devices, Inc. (a)	1,142,300		39,774,886
ARM Holdings PLC sponsored ADR (a)	21,700		73,997
Broadcom Corp. Class A (a)	263,100		6,553,821
Cabot Microelectronics Corp. (a)	21,500		1,085,105
Cree, Inc. (a)	169,100		2,752,948
Infineon Technologies AG sponsored ADR (a)	202,300		1,940,057
Integrated Circuit Systems, Inc. (a)	436,400		13,716,052
Intersil Corp. Class A (a)	339,100		9,023,451
KLA-Tencor Corp. (a)	308,500		14,342,165
Lam Research Corp. (a)	359,300		6,542,853
Linear Technology Corp.	419,500		13,512,095
Marvell Technology Group Ltd. (a)	380,800		13,088,096
Maxim Integrated Products, Inc.	200		6,838
Microchip Technology, Inc.	200		4,926
NVIDIA Corp. (a)	194,736		4,480,875
O2Micro International Ltd. (a)	118,200		1,904,202
Omnivision Technologies, Inc. (a)	65,900		2,056,080
Samsung Electronics Co. Ltd.	188,700		56,057,317
Silicon Laboratories, Inc. (a)	461,490		12,294,094
STMicroelectronics NV (NY Shares)	73,000		1,517,670
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	501,100		5,051,088
Teradyne, Inc. (a)	327,900		5,675,949
Texas Instruments, Inc.	10,800		190,080
Xilinx, Inc. (a)	391,700		9,913,927
			221,558,572
Software - 1.4%
Adobe Systems, Inc.	1,056,309		33,875,830
Agile Software Corp. (a)	31,100		300,115
Altiris, Inc. (a)	338,633		6,789,592
Amdocs Ltd. (a)	139,300		3,343,200
Autodesk, Inc.	64,800		1,047,168
BEA Systems, Inc. (a)	479,747		5,210,052
Business Objects SA sponsored ADR (a)	107,700		2,364,015
Citrix Systems, Inc. (a)	372,600		7,586,136
Computer Associates International, Inc.	65,100		1,450,428
Electronic Arts, Inc. (a)	54,200		4,010,258
Hyperion Solutions Corp. (a)	74,143		2,503,068
Intuit, Inc. (a)	21,700		966,301
Kronos, Inc. (a)	18,900		960,309
Mercury Interactive Corp. (a)	362,329		13,989,523
Network Associates, Inc. (a)	275,100		3,488,268
Red Hat, Inc. (a)	173,700		1,314,909
Symantec Corp. (a)	168,485		7,389,752
Synopsys, Inc. (a)	110,221		6,817,169
Verint Systems, Inc. (a)	93,900		2,385,999
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Software - continued
Verisity Ltd. (a)	31,200		$ 372,528
VERITAS Software Corp. (a)	416,752		11,948,280
			118,112,900
TOTAL INFORMATION TECHNOLOGY			843,618,878
MATERIALS - 5.8%
Chemicals - 1.1%
Cytec Industries, Inc. (a)	127,600		4,312,880
Dow Chemical Co.	54,000		1,671,840
Ecolab, Inc.	1,628,000		41,676,800
Methanex Corp.	1,407,770		15,009,389
Praxair, Inc.	149,100		8,960,910
Sigma Aldrich Corp.	13,600		736,848
The Scotts Co. Class A (a)	164,500		8,142,750
Valspar Corp.	337,700		14,257,694
			94,769,111
Construction Materials - 0.1%
Florida Rock Industries, Inc.	100,800		4,161,024
Containers & Packaging - 0.0%
Ball Corp.	102		4,642
Peak International Ltd. (a)	200,000		889,800
			894,442
Metals & Mining - 4.5%
Aber Diamond Corp. (a)	322,550		6,609,906
Agnico-Eagle Mines Ltd.	255,220		2,944,555
Alcoa, Inc.	95,400		2,432,700
Anglo American PLC ADR	1,078,800		16,570,368
Anglogold Ltd. sponsored ADR	141,800		4,523,420
BHP Billiton PLC	316,879		1,673,098
Companhia Vale do Rio Doce sponsored ADR	159,300		4,724,838
Compania de Minas Buenaventura SA sponsored ADR	750,900		22,594,581
Freeport-McMoRan Copper & Gold, Inc. Class B	1,476,292		36,169,154
Gold Fields Ltd.	2,369,872		28,397,249
Goldcorp, Inc.	4,033,560		48,481,727
Harmony Gold Mining Co. Ltd.	394,694		5,200,984
Impala Platinum Holdings Ltd.	108,700		6,485,645
Ivanhoe Mines Ltd. (a)	324,400		803,900
JSC MMC 'Norilsk Nickel' sponsored ADR	86,100		2,981,213
Kinross Gold Corp. (a)	1,575,888		10,628,299
Kumba Resources Ltd.	1,657,635		6,674,891
Liquidmetal Technologies (a)	365,500		1,875,015
Meridian Gold, Inc. (a)	318,880		3,643,532
Newcrest Mining Ltd.	745,700		3,842,337
Newmont Mining Corp. Holding Co.	2,818,501		91,488,542
Newmont Mining Corp. Holding Co. Chess Depository Interests	1,309,031		4,364,404
Pechiney SA (a)	55,120		1,983,921

	Shares		Value (Note 1)
Rio Tinto PLC (Reg.)	3,227,300		$ 61,762,474
SouthernEra Resources Ltd. (a)	502,800		1,973,447
			378,830,200
Paper & Forest Products - 0.1%
Sappi Ltd.	782,013		9,446,926
TOTAL MATERIALS			488,101,703
TELECOMMUNICATION SERVICES - 1.6%
Diversified Telecommunication Services - 0.2%
CenturyTel, Inc.	128,500		4,478,225
Koninklijke KPN NV (a)	366,600		2,604,377
Sprint Corp. - FON Group	216,800		3,121,920
Swisscom AG sponsored ADR	169,400		4,800,796
Telecom Italia Spa sponsored ADR	27,100		2,456,344
			17,461,662
Wireless Telecommunication Services - 1.4%
AT&T Wireless Services, Inc. (a)	303,600		2,492,556
Mobile TeleSystems OJSC sponsored ADR (a)	155,300		9,162,700
Nextel Communications, Inc. Class A (a)	2,718,900		49,157,712
Nextel Partners, Inc. Class A (a)	206,300		1,505,990
Sprint Corp. - PCS Group Series 1 (a)	216,800		1,246,600
Vimpel Communications sponsored ADR (a)	470,100		21,831,444
Vodafone Group PLC sponsored ADR	1,644,300		32,310,495
			117,707,497
TOTAL TELECOMMUNICATION SERVICES			135,169,159
UTILITIES - 0.7%
Electric Utilities - 0.6%
Ameren Corp.	86,700		3,823,470
Cinergy Corp.	108,400		3,988,036
Dominion Resources, Inc.	86,500		5,559,355
Entergy Corp.	242,680		12,808,650
FirstEnergy Corp.	65,000		2,499,250
FPL Group, Inc.	65,000		4,345,250
PG&E Corp. (a)	324,300		6,858,945
Southern Co.	230,840		7,192,974
			47,075,930
Multi-Utilities & Unregulated Power - 0.1%
AES Corp. (a)	117,769		747,833
Equitable Resources, Inc.	104,000		4,236,960
SCANA Corp.	110,700		3,794,796
			8,779,589
TOTAL UTILITIES			55,855,519
TOTAL COMMON STOCKS (Cost $6,431,692,168)		7,852,780,772
Convertible Preferred Stocks - 0.3%
	Shares		Value (Note 1)
FINANCIALS - 0.3%
Diversified Financial Services - 0.2%
Xerox Capital Trust II 7.5% (c)	246,100		$ 16,772,699
Insurance - 0.1%
St. Paul Companies, Inc. 9%	89,300		6,217,513
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $20,464,028)		22,990,212

Convertible Bonds - 0.5%
	Principal Amount
CONSUMER DISCRETIONARY - 0.2%
Internet & Catalog Retail - 0.1%
Amazon.com, Inc. 4.75% 2/1/09	$ 8,000,000		7,620,000
Media - 0.1%
Interpublic Group of Companies, Inc.:
1.8% 9/16/04	1,130,000		1,076,382
1.87% 6/1/06	1,250,000		1,090,625
4.5% 3/15/23 (c)	760,000		1,064,912
			3,231,919
TOTAL CONSUMER DISCRETIONARY			10,851,919
INFORMATION TECHNOLOGY - 0.0%
Communications Equipment - 0.0%
Brocade Communications Systems, Inc. 2% 1/1/07	1,160,000		972,950
Semiconductors & Semiconductor Equipment - 0.0%
TriQuint Semiconductor, Inc. 4% 3/1/07	1,300,000		1,108,250
TOTAL INFORMATION TECHNOLOGY			2,081,200
MATERIALS - 0.2%
Metals & Mining - 0.2%
Freeport-McMoRan Copper & Gold, Inc.:
8.25% 1/31/06 (c)	5,025,000		8,982,188
8.25% 1/31/06	4,470,000		7,990,125
			16,972,313
TELECOMMUNICATION SERVICES - 0.1%
Wireless Telecommunication Services - 0.1%
Nextel Communications, Inc. 5.25% 1/15/10	9,550,000		9,000,875
TOTAL CONVERTIBLE BONDS (Cost $28,748,785)		38,906,307
U.S. Treasury Obligations - 0.2%
	Principal Amount		Value (Note 1)
U.S. Treasury Bills, yield at date of purchase 0.79% to 1.11% 7/3/03 to 9/18/03 (d)	$ 3,800,000		$ 3,796,673
U.S. Treasury Bonds 6.875% 8/15/25	8,800,000		11,594,686
TOTAL U.S. TREASURY OBLIGATIONS (Cost $13,232,654)		15,391,359
Floating Rate Loans - 0.0%

CONSUMER DISCRETIONARY - 0.0%
Media - 0.0%
Mediacom Broadband LLC/Mediacom Broadband Corp. Tranche B term loan 3.8% 9/30/10 (e)	2,000,000		2,010,000
TOTAL FLOATING RATE LOANS (Cost $1,934,568)		2,010,000

Money Market Funds - 6.8%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	486,909,396		486,909,396
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	84,118,200		84,118,200
TOTAL MONEY MARKET FUNDS (Cost $571,027,596)		571,027,596
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $7,067,099,799)			8,503,106,246
NET OTHER ASSETS - (1.2)%			(96,884,719)
NET ASSETS - 100%		$ 8,406,221,527

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Gain/(Loss)
Equity Index Contracts
246 S&P 500 Index Contracts	Sept. 2003	$ 59,857,950	$ (1,388,839)

The face value of futures purchased as a percentage of net assets - 0.7%

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) 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 $3,796,673.

(e) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $3,061,526,320 and $2,664,799,946.

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

United States of America	78.8%
United Kingdom	4.5
Canada	3.9
Bermuda	2.4
Ireland	1.8
Japan	1.6
Switzerland	1.5
Others (individually less than 1%)	5.5
	100.0%

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $1,338,657,000 of which $675,098,000 and $663,559,000 will expire on December 31, 2009 and 2010, respectively.

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

Semiannual Report

Fidelity Variable Insurance Products: Contrafund Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $80,539,062) (cost $7,067,099,799) - See accompanying schedule		$ 8,503,106,246
Cash		1,058,727
Receivable for investments sold		25,369,843
Receivable for fund shares sold		10,772,982
Dividends receivable		5,362,206
Interest receivable		1,464,214
Redemption fees receivable		10
Other receivables		853,387
Total assets		8,547,987,615

Liabilities
Payable for investments purchased	$ 50,125,841
Payable for fund shares redeemed	2,859,237
Accrued management fee	4,074,702
Distribution fees payable	239,992
Other payables and accrued expenses	348,116
Collateral on securities loaned, at value	84,118,200
Total liabilities		141,766,088

Net Assets		$ 8,406,221,527
Net Assets consist of:
Paid in capital		$ 8,435,214,293
Undistributed net investment income		15,048,725
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(1,478,734,376)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		1,434,692,885
Net Assets		$ 8,406,221,527

Initial Class: Net Asset Value, offering price and redemption price per share ($6,424,372,629÷ 325,624,879 shares)		$ 19.73

Service Class: Net Asset Value, offering price and redemption price per share ($1,347,877,754 ÷ 68,493,767 shares)		$ 19.68

Service Class 2: Net Asset Value, offering price and redemption price per share ($633,353,070 ÷ 32,347,930 shares)		$ 19.58

Service Class 2R: Net Asset Value, offering price and redemption price per share ($618,074 ÷ 31,607 shares)		$ 19.55

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 36,836,397
Interest		5,533,346
Security lending		759,460
Total income		43,129,203

Expenses
Management fee	$ 22,361,475
Transfer agent fees	2,650,443
Distribution fees	1,247,035
Accounting and security lending fees	398,677
Non-interested trustees' compensation	15,392
Appreciation in deferred trustee compensation account	966
Custodian fees and expenses	299,976
Registration fees	3,178
Audit	41,644
Legal	10,691
Miscellaneous	147,895
Total expenses before reductions	27,177,372
Expense reductions	(1,224,543)	25,952,829
Net investment income (loss)		17,176,374
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(116,264,908)
Foreign currency transactions	(78,331)
Futures contracts	6,248,258
Total net realized gain (loss)		(110,094,981)
Change in net unrealized appreciation (depreciation) on: Investment securities	814,300,916
Assets and liabilities in foreign currencies	50,384
Futures contracts	(163,699)
Total change in net unrealized appreciation (depreciation)		814,187,601
Net gain (loss)		704,092,620
Net increase (decrease) in net assets resulting from operations		$ 721,268,994

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

Semiannual Report

Fidelity Variable Insurance Products: Contrafund Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 17,176,374	$ 38,078,167
Net realized gain (loss)	(110,094,981)	(637,510,720)
Change in net unrealized appreciation (depreciation)	814,187,601	(207,088,852)
Net increase (decrease) in net assets resulting from operations	721,268,994	(806,521,405)
Distributions to shareholders from net investment income	(35,507,037)	(65,347,191)
Share transactions - net increase (decrease)	140,781,743	46,140,066
Redemption fees	559	49
Total increase (decrease) in net assets	826,544,259	(825,728,481)

Net Assets
Beginning of period	7,579,677,268	8,405,405,749
End of period (including undistributed net investment income of $15,048,725 and undistributed net investment income of $34,847,840, respectively)	$ 8,406,221,527	$ 7,579,677,268

Other Information:
Share Transactions	Six months ended June 30, 2003 - (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
Shares Sold	18,993,595	7,416,680	10,866,958	13,395
Reinvested	1,718,846	269,021	92,062	161
Redeemed	(24,166,864)	(4,802,601)	(3,071,719)	(27,045)
Net increase (decrease)	(3,454,423)	2,883,100	7,887,301	(13,489)

Dollars Sold	$ 349,932,388	$ 135,860,035	$ 197,878,054	$ 248,534
Reinvested	29,357,892	4,584,117	1,562,295	2,733
Redeemed	(436,575,900)	(86,262,835)	(55,332,079)	(473,491)
Net increase (decrease)	$ (57,285,620)	$ 54,181,317	$ 144,108,270	$ (222,224)

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
Shares Sold	56,833,322	17,332,750	16,787,773	45,893
Reinvested	2,820,242	432,111	91,835	-
Redeemed	(77,031,143)	(12,025,142)	(4,005,858)	(797)
Net increase (decrease)	(17,377,579)	5,739,719	12,873,750	45,096

Dollars Sold	$ 1,102,958,554	$ 329,197,923	$ 318,907,897	$ 843,220
Reinvested	55,135,751	8,426,160	1,785,280	-
Redeemed	(1,469,720,893)	(226,436,407)	(74,942,997)	(14,422)
Net increase (decrease)	$ (311,626,588)	$ 111,187,676	$ 245,750,180	$ 828,798

Distributions	Six months ended June 30, 2003 - (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
From net investment income	$ 29,357,892	$ 4,584,117	$ 1,562,295	$ 2,733
From net realized gain	-	-	-	-
Total	$ 29,357,892	$ 4,584,117	$ 1,562,295	$ 2,733
	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
From net investment income	$ 55,135,751	$ 8,426,160	$ 1,785,280	$ -
From net realized gain	-	-	-	-
Total	$ 55,135,751	$ 8,426,160	$ 1,785,280	$ -

^A For the period April 24, 2002 (commencement of sale of share) to December 31, 2002.

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

Semiannual Report

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.10	$ 20.13	$ 23.75	$ 29.15	$ 24.44	$ 19.94
Income from Investment Operations
Net investment income (loss)^E	.04	.10	.16	.17	.12	.13
Net realized and unrealized gain (loss)	1.68	(1.97)	(3.01)	(1.84)	5.59	5.54
Total from investment operations	1.72	(1.87)	(2.85)	(1.67)	5.71	5.67
Distributions from net investment income	(.09)	(.16)	(.17)	(.11)	(.12)	(.14)
Distributions from net realized gain	-	-	(.60)	(3.62)	(.88)	(1.03)
Total distributions	(.09)	(.16)	(.77)	(3.73)	(1.00)	(1.17)
Redemption fees added to paid in capital^E,G	-	-	-	-	-	-
Net asset value, end of period	$ 19.73	$ 18.10	$ 20.13	$ 23.75	$ 29.15	$ 24.44
Total Return^{B, C, D}	9.58%	(9.35)%	(12.28)%	(6.58)%	24.25%	29.98%
Ratios to Average Net Assets^F
Expenses before expense reductions	.68%^A	.68%	.68%	.66%	.67%	.70%
Expenses net of voluntary waivers, if any	.68%^A	.68%	.68%	.66%	.67%	.70%
Expenses net of all reductions	.64%^A	.64%	.64%	.63%	.65%	.66%
Net investment income (loss)	.48%^A	.50%	.77%	.69%	.48%	.62%
Supplemental Data
Net assets, end of period (000 omitted)	$ 6,424,373	$ 5,956,028	$ 6,972,615	$ 8,516,464	$ 9,005,129	$ 6,388,592
Portfolio turnover rate	74%^A	84%	140%	177%	172%	201%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FExpense 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 any voluntary 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. ^GAmount represents less than $.01 per-share.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.04	$ 20.06	$ 23.67	$ 29.10	$ 24.42	$ 19.93
Income from Investment Operations
Net investment income (loss)^E	.03	.08	.14	.15	.10	.11
Net realized and unrealized gain (loss)	1.68	(1.96)	(3.00)	(1.85)	5.58	5.55
Total from investment operations	1.71	(1.88)	(2.86)	(1.70)	5.68	5.66
Distributions from net investment income	(.07)	(.14)	(.15)	(.11)	(.12)	(.14)
Distributions from net realized gain	-	-	(.60)	(3.62)	(.88)	(1.03)
Total distributions	(.07)	(.14)	(.75)	(3.73)	(1.00)	(1.17)
Redemption fees added to paid in capital^E,G	-	-	-	-	-	-
Net asset value, end of period	$ 19.68	$ 18.04	$ 20.06	$ 23.67	$ 29.10	$ 24.42
Total Return^{B, C, D}	9.54%	(9.42)%	(12.36)%	(6.71)%	24.15%	29.94%
Ratios to Average Net Assets^F
Expenses before expense reductions	.78%^A	.78%	.78%	.76%	.78%	.80%
Expenses net of voluntary waivers, if any	.78%^A	.78%	.78%	.76%	.78%	.80%
Expenses net of all reductions	.74%^A	.74%	.74%	.74%	.75%	.75%
Net investment income (loss)	.38%^A	.39%	.67%	.59%	.37%	.53%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,347,878	$ 1,183,683	$ 1,201,105	$ 1,245,222	$ 775,216	$ 152,553
Portfolio turnover rate	74%^A	84%	140%	177%	172%	201%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FExpense 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 any voluntary 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. ^GAmount represents less than $.01 per-share.

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

Contrafund Portfolio

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.95	$ 20.00	$ 23.64	$ 28.20
Income from Investment Operations
Net investment income (loss)^E	.02	.05	.10	.10
Net realized and unrealized gain (loss)	1.67	(1.96)	(2.98)	(.93)
Total from investment operations	1.69	(1.91)	(2.88)	(.83)
Distributions from net investment income	(.06)	(.14)	(.16)	(.11)
Distributions from net realized gain	-	-	(.60)	(3.62)
Total distributions	(.06)	(.14)	(.76)	(3.73)
Redemption fees added to paid in capital^E,H	-	-	-	-
Net asset value, end of period	$ 19.58	$ 17.95	$ 20.00	$ 23.64
Total Return^{B, C, D}	9.47%	(9.60)%	(12.47)%	(3.86)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.93%^A	.93%	.94%	.92%^A
Expenses net of voluntary waivers, if any	.93%^A	.93%	.94%	.92%^A
Expenses net of all reductions	.90%^A	.90%	.90%	.90%^A
Net investment income (loss)	.23%^A	.24%	.52%	.43%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 633,353	$ 439,157	$ 231,686	$ 81,950
Portfolio turnover rate	74%^A	84%	140%	177%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFor the period January 12, 2000 (commencement of sale of shares) to December 31, 2000. ^GExpense 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 any voluntary 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. ^HAmount represents less than $.01 per-share.

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.95	$ 20.49
Income from Investment Operations
Net investment income (loss)^E	.02	.03
Net realized and unrealized gain (loss)	1.66	(2.57)
Total from investment operations	1.68	(2.54)
Distributions from net investment income	(.08)	-
Redemption fees added to paid in capital^E,H	-	-
Net asset value, end of period	$ 19.55	$ 17.95
Total Return^{B, C, D}	9.43%	(12.40)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.93%^A	.96%^A
Expenses net of voluntary waivers, if any	.93%^A	.96%^A
Expenses net of all reductions	.89%^A	.92%^A
Net investment income (loss)	.23%^A	.23%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 618	$ 810
Portfolio turnover rate	74%^A	84%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFor the period April 24, 2002 (commencement of sale of shares) to December 31, 2002. ^GExpense 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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. ^HAmount represents less than $.01 per-share.

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

Contrafund Portfolio

Fidelity Variable Insurance Products: Equity-Income Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Citigroup, Inc.	3.1
Exxon Mobil Corp.	3.0
Fannie Mae	2.5
Bank of America Corp.	2.4
Total SA	2.2
	13.2
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	29.0
Consumer Discretionary	12.4
Industrials	11.8
Energy	11.4
Health Care	7.7

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks	97.7%
	Bonds	1.5%
	Short-Term Investments and Net Other Assets	0.8%

* Foreign investments

9.7%

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 96.3%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 11.6%
Automobiles - 0.3%
General Motors Corp.	628,100		$ 22,611,600
Hotels, Restaurants & Leisure - 1.7%
Hilton Hotels Corp.	366,700		4,690,093
Mandalay Resort Group	314,500		10,016,825
McDonald's Corp.	2,636,000		58,150,160
MGM MIRAGE (a)	1,243,570		42,505,223
Park Place Entertainment Corp. (a)	2,509,000		22,806,810
Six Flags, Inc. (a)	1,408,356		9,548,654
			147,717,765
Household Durables - 1.3%
Black & Decker Corp.	595,500		25,874,475
Fortune Brands, Inc.	84,200		4,395,240
Maytag Corp.	829,320		20,251,994
Newell Rubbermaid, Inc.	1,000,400		28,011,200
Snap-On, Inc.	366,300		10,633,689
Whirlpool Corp.	377,700		24,059,490
			113,226,088
Media - 5.3%
AOL Time Warner, Inc. (a)	7,015,850		112,885,027
Clear Channel Communications, Inc. (a)	1,358,300		57,578,337
Comcast Corp. Class A (a)	2,852,091		86,076,106
Liberty Media Corp. Class A (a)	2,193,776		25,360,051
News Corp. Ltd.:
ADR	234,034		7,084,209
sponsored ADR	303,867		7,602,752
Reader's Digest Association, Inc. (non-vtg.)	1,243,903		16,767,812
Viacom, Inc. Class B (non-vtg.) (a)	2,413,218		105,361,098
Vivendi Universal SA sponsored ADR	717,200		13,225,168
Walt Disney Co.	1,532,100		30,258,975
			462,199,535
Multiline Retail - 0.9%
Big Lots, Inc. (a)	1,028,756		15,472,494
Federated Department Stores, Inc.	749,900		27,633,815
Target Corp.	862,300		32,629,432
			75,735,741
Specialty Retail - 2.0%
Charming Shoppes, Inc. (a)	1,290,400		6,413,288
Gap, Inc.	2,073,900		38,906,364
Home Depot, Inc.	589,900		19,537,488
Limited Brands, Inc.	2,528,000		39,184,000
Office Depot, Inc. (a)	1,235,500		17,927,105
RadioShack Corp.	1,296,800		34,118,808
Staples, Inc. (a)	1,198,562		21,993,613
			178,080,666

	Shares		Value (Note 1)
Textiles Apparel & Luxury Goods - 0.1%
Jones Apparel Group, Inc. (a)	422,100		$ 12,350,646
TOTAL CONSUMER DISCRETIONARY			1,011,922,041
CONSUMER STAPLES - 6.0%
Beverages - 0.4%
The Coca-Cola Co.	746,100		34,626,501
Food & Staples Retailing - 0.9%
Albertson's, Inc.	1,092,200		20,970,240
CVS Corp.	2,041,100		57,212,033
			78,182,273
Food Products - 1.0%
Fresh Del Monte Produce, Inc.	544,388		13,985,328
Kraft Foods, Inc. Class A	752,900		24,506,895
Tyson Foods, Inc. Class A	1,161,000		12,329,820
Unilever PLC sponsored ADR	1,116,200		35,830,020
			86,652,063
Household Products - 1.4%
Colgate-Palmolive Co.	466,300		27,022,085
Kimberly-Clark Corp.	1,273,400		66,395,076
Procter & Gamble Co.	319,400		28,484,092
The Dial Corp.	236,600		4,601,870
			126,503,123
Personal Products - 1.2%
Gillette Co.	3,227,920		102,841,531
Tobacco - 1.1%
Altria Group, Inc.	1,980,200		89,980,288
Loews Corp. - Carolina Group	215,200		5,810,400
			95,790,688
TOTAL CONSUMER STAPLES			524,596,179
ENERGY - 11.4%
Energy Equipment & Services - 2.5%
Baker Hughes, Inc.	1,593,600		53,497,152
BJ Services Co. (a)	520,145		19,432,617
Noble Corp. (a)	511,800		17,554,740
Schlumberger Ltd. (NY Shares)	2,713,900		129,100,223
			219,584,732
Oil & Gas - 8.9%
Anadarko Petroleum Corp.	263,400		11,713,398
Apache Corp.	345,240		22,461,314
BP PLC sponsored ADR	2,530,242		106,320,769
ChevronTexaco Corp.	882,171		63,692,746
ConocoPhillips	553,070		30,308,236
Exxon Mobil Corp.	7,261,536		260,761,758
Royal Dutch Petroleum Co. (NY Shares)	1,910,300		89,058,186
Common Stocks - continued
	Shares		Value (Note 1)
ENERGY - continued
Oil & Gas - continued
Total SA:
Series B	391,400		$ 59,336,241
sponsored ADR	1,724,096		130,686,477
			774,339,125
TOTAL ENERGY			993,923,857
FINANCIALS - 28.3%
Capital Markets - 6.2%
Bank of New York Co., Inc.	3,033,500		87,213,125
Charles Schwab Corp.	3,853,600		38,882,824
Credit Suisse Group sponsored ADR	735,200		19,350,464
J.P. Morgan Chase & Co.	3,733,850		127,622,993
Janus Capital Group, Inc.	780,400		12,798,560
Lehman Brothers Holdings, Inc.	380,500		25,295,640
Mellon Financial Corp.	1,716,500		47,632,875
Merrill Lynch & Co., Inc.	1,658,000		77,395,440
Morgan Stanley	1,890,800		80,831,700
Nomura Holdings, Inc.	1,853,000		23,594,052
			540,617,673
Commercial Banks - 8.2%
Bank of America Corp.	2,639,390		208,590,992
Bank One Corp.	2,487,438		92,482,945
Comerica, Inc.	926,900		43,100,850
FleetBoston Financial Corp.	1,850,700		54,984,297
Huntington Bancshares, Inc.	510,200		9,959,104
PNC Financial Services Group, Inc.	617,200		30,125,532
State Bank of India	463,175		3,834,342
U.S. Bancorp, Delaware	2,893,738		70,896,581
Wachovia Corp.	2,033,475		81,257,661
Wells Fargo & Co.	2,278,400		114,831,360
			710,063,664
Consumer Finance - 1.4%
American Express Co.	2,231,496		93,298,848
MBNA Corp.	1,456,400		30,351,376
			123,650,224
Diversified Financial Services - 3.5%
CIT Group, Inc.	1,371,500		33,807,475
Citigroup, Inc.	6,271,419		268,416,726
			302,224,201
Insurance - 5.7%
ACE Ltd.	1,631,815		55,954,936
Allianz AG sponsored ADR	567,200		4,690,744
Allstate Corp.	1,459,600		52,034,740
American International Group, Inc.	3,301,250		182,162,975
Hartford Financial Services Group, Inc.	1,334,400		67,200,384
Lincoln National Corp.	95,000		3,384,850
Marsh & McLennan Companies, Inc.	364,500		18,615,015
MBIA, Inc.	241,300		11,763,375
The Chubb Corp.	634,000		38,040,000

	Shares		Value (Note 1)
Travelers Property Casualty Corp.:
Class A	2,327,467		$ 37,006,725
Class B	622,257		9,812,993
UnumProvident Corp.	1,270,300		17,034,723
			497,701,460
Real Estate - 0.4%
Equity Office Properties Trust	317,100		8,564,871
Equity Residential (SBI)	1,127,400		29,256,030
			37,820,901
Thrifts & Mortgage Finance - 2.9%
Fannie Mae	3,241,000		218,573,040
Freddie Mac	717,900		36,447,783
			255,020,823
TOTAL FINANCIALS			2,467,098,946
HEALTH CARE - 7.6%
Health Care Equipment & Supplies - 0.8%
Baxter International, Inc.	1,570,900		40,843,400
Becton, Dickinson & Co.	611,100		23,741,235
			64,584,635
Health Care Providers & Services - 1.2%
HCA, Inc.	913,100		29,255,724
IMS Health, Inc.	1,455,099		26,177,231
McKesson Corp.	1,015,700		36,301,118
Tenet Healthcare Corp. (a)	1,266,700		14,757,055
			106,491,128
Pharmaceuticals - 5.6%
Abbott Laboratories	857,000		37,502,320
Bristol-Myers Squibb Co.	3,292,400		89,388,660
Eli Lilly & Co.	338,800		23,367,036
Johnson & Johnson	1,137,600		58,813,920
Merck & Co., Inc.	2,458,700		148,874,285
Pfizer, Inc.	959,100		32,753,265
Roche Holding AG (participation certificate)	105,300		8,280,140
Schering-Plough Corp.	2,190,730		40,747,578
Wyeth	1,107,200		50,432,960
			490,160,164
TOTAL HEALTH CARE			661,235,927
INDUSTRIALS - 11.7%
Aerospace & Defense - 2.6%
Boeing Co.	997,800		34,244,496
Bombardier, Inc. Class B (sub. vtg.)	1,053,500		3,572,114
Honeywell International, Inc.	3,013,825		80,921,201
Lockheed Martin Corp.	546,500		25,997,005
Northrop Grumman Corp.	451,500		38,959,935
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Aerospace & Defense - continued
Raytheon Co.	586,400		$ 19,257,376
United Technologies Corp.	379,520		26,881,402
			229,833,529
Building Products - 0.5%
Masco Corp.	2,041,200		48,682,620
Commercial Services & Supplies - 0.6%
Viad Corp.	1,061,700		23,771,463
Waste Management, Inc.	1,286,100		30,982,149
			54,753,612
Electrical Equipment - 0.4%
Emerson Electric Co.	421,400		21,533,540
Rockwell Automation, Inc.	498,300		11,879,472
			33,413,012
Industrial Conglomerates - 3.2%
3M Co.	171,200		22,081,376
General Electric Co.	3,538,440		101,482,459
Hutchison Whampoa Ltd.	2,171,000		13,223,715
Siemens AG sponsored ADR	412,500		20,150,625
Textron, Inc.	879,800		34,329,796
Tyco International Ltd.	4,439,946		84,270,175
			275,538,146
Machinery - 3.1%
Caterpillar, Inc.	968,200		53,890,012
Cummins, Inc.	126,500		4,540,085
Deere & Co.	435,050		19,881,785
Eaton Corp.	434,800		34,179,628
Illinois Tool Works, Inc.	353,600		23,284,560
Ingersoll-Rand Co. Ltd. Class A	1,467,444		69,439,450
Kennametal, Inc.	230,039		7,784,520
Navistar International Corp. (a)	265,900		8,676,317
Parker Hannifin Corp.	610,500		25,634,895
SPX Corp. (a)	337,400		14,865,844
Timken Co.	400,600		7,014,506
			269,191,602
Road & Rail - 1.3%
Burlington Northern Santa Fe Corp.	2,245,600		63,864,864
Union Pacific Corp.	807,900		46,874,358
			110,739,222
TOTAL INDUSTRIALS			1,022,151,743
INFORMATION TECHNOLOGY - 5.9%
Communications Equipment - 0.3%
Motorola, Inc.	2,536,200		23,916,366
Computers & Peripherals - 1.6%
Hewlett-Packard Co.	3,622,911		77,168,004

	Shares		Value (Note 1)
International Business Machines Corp.	640,900		$ 52,874,250
Sun Microsystems, Inc. (a)	2,455,800		11,296,680
			141,338,934
Electronic Equipment & Instruments - 1.7%
Agilent Technologies, Inc. (a)	945,300		18,480,615
Arrow Electronics, Inc. (a)	799,100		12,178,284
Avnet, Inc. (a)	1,317,330		16,703,744
PerkinElmer, Inc.	2,206,000		30,464,860
Sanmina-SCI Corp. (a)	1,101,200		6,948,572
Tektronix, Inc. (a)	1,310,800		28,313,280
Thermo Electron Corp. (a)	1,539,600		32,362,392
			145,451,747
IT Services - 0.5%
Ceridian Corp. (a)	1,582,200		26,849,934
Electronic Data Systems Corp.	416,800		8,940,360
First Data Corp.	252,700		10,471,888
			46,262,182
Semiconductors & Semiconductor Equipment - 1.0%
Intel Corp.	2,173,600		45,176,102
Micron Technology, Inc. (a)	1,484,400		17,263,572
National Semiconductor Corp. (a)	440,975		8,696,027
Rohm Co. Ltd.	63,100		6,900,986
Teradyne, Inc. (a)	421,971		7,304,318
			85,341,005
Software - 0.8%
Microsoft Corp.	2,642,800		67,682,108
TOTAL INFORMATION TECHNOLOGY			509,992,342
MATERIALS - 6.4%
Chemicals - 2.6%
Arch Chemicals, Inc.	442,400		8,449,840
BOC Group PLC	423,497		5,449,895
Dow Chemical Co.	2,262,600		70,050,096
Hercules Trust II unit	15,700		9,086,375
Hercules, Inc. (a)	649,700		6,432,030
LG Chemical Ltd.	216,900		8,712,300
Lyondell Chemical Co.	1,202,700		16,272,531
Millennium Chemicals, Inc.	853,650		8,118,212
Olin Corp.	572,700		9,793,170
PolyOne Corp.	1,239,100		5,513,995
PPG Industries, Inc.	390,300		19,803,822
Praxair, Inc.	821,212		49,354,841
Solutia, Inc.	2,067,100		4,506,278
			221,543,385
Containers & Packaging - 0.4%
Owens-Illinois, Inc. (a)	349,500		4,812,615
Smurfit-Stone Container Corp. (a)	2,375,253		30,949,547
			35,762,162
Metals & Mining - 2.3%
Alcan, Inc.	955,100		29,769,811
Alcoa, Inc.	3,000,416		76,510,608
Common Stocks - continued
	Shares		Value (Note 1)
MATERIALS - continued
Metals & Mining - continued
Dofasco, Inc.	926,300		$ 17,875,844
Nucor Corp.	283,400		13,844,090
Pechiney SA (a)	706,090		25,414,131
Phelps Dodge Corp. (a)	994,700		38,136,798
			201,551,282
Paper & Forest Products - 1.1%
Bowater, Inc.	474,100		17,755,045
Georgia-Pacific Corp.	1,646,101		31,193,614
International Paper Co.	368,200		13,155,786
Weyerhaeuser Co.	645,900		34,878,600
			96,983,045
TOTAL MATERIALS			555,839,874
TELECOMMUNICATION SERVICES - 4.4%
Diversified Telecommunication Services - 4.4%
BellSouth Corp.	4,818,499		128,316,628
SBC Communications, Inc.	4,711,593		120,381,201
Verizon Communications, Inc.	3,435,902		135,546,334
			384,244,163
UTILITIES - 3.0%
Electric Utilities - 2.5%
Cinergy Corp.	475,200		17,482,608
Dominion Resources, Inc.	584,600		37,572,242
DPL, Inc.	1,010,054		16,100,261
Entergy Corp.	1,008,200		53,212,796
FirstEnergy Corp.	1,020,000		39,219,000
Northeast Utilities	1,648,400		27,594,216
TXU Corp.	1,059,220		23,779,489
			214,960,612
Gas Utilities - 0.1%
NiSource, Inc.	568,730		10,805,870
Multi-Utilities & Unregulated Power - 0.4%
SCANA Corp.	911,600		31,249,648
TOTAL UTILITIES			257,016,130
TOTAL COMMON STOCKS (Cost $7,597,732,395)		8,388,021,202
Preferred Stocks - 1.4%
	Shares		Value (Note 1)
Convertible Preferred Stocks - 1.4%
CONSUMER DISCRETIONARY - 0.2%
Automobiles - 0.1%
General Motors Corp.:
Series B, 5.25%	412,200		$ 9,175,572
Series C, 6.25%	253,100		6,243,977
			15,419,549
Hotels, Restaurants & Leisure - 0.1%
Six Flags, Inc. 7.25% PIERS	388,400		7,612,640
TOTAL CONSUMER DISCRETIONARY			23,032,189
FINANCIALS - 0.5%
Capital Markets - 0.1%
State Street Corp. 6.75%	24,900		5,132,562
Consumer Finance - 0.2%
Ford Motor Co. Capital Trust II 6.5%	461,500		19,983,873
Insurance - 0.2%
Hartford Financial Services Group, Inc. 6%	54,300		2,843,691
The Chubb Corp.:
7%	167,700		4,342,424
Series B, 7%	120,100		3,086,570
Travelers Property Casualty Corp. 4.50%	240,200		5,807,796
			16,080,481
TOTAL FINANCIALS			41,196,916
HEALTH CARE - 0.1%
Health Care Equipment & Supplies - 0.1%
Baxter International, Inc. 7%	156,900		7,688,100
INDUSTRIALS - 0.1%
Aerospace & Defense - 0.1%
Raytheon Co. 8.25%	177,700		10,028,944
INFORMATION TECHNOLOGY - 0.3%
Communications Equipment - 0.2%
Motorola, Inc. 7%	441,100		14,165,485
IT Services - 0.1%
Electronic Data Systems Corp. 7.625% PRIDES	475,600		10,486,980
Office Electronics - 0.0%
Xerox Corp. 6.25%	25,300		2,657,689
TOTAL INFORMATION TECHNOLOGY			27,310,154
Preferred Stocks - continued
	Shares		Value (Note 1)
Convertible Preferred Stocks - continued
UTILITIES - 0.2%
Electric Utilities - 0.2%
Cinergy Corp. 9.5% PRIDES	105,900		$ 6,273,516
TXU Corp. 8.75%	226,400		7,386,300
			13,659,816
Multi-Utilities & Unregulated Power - 0.0%
El Paso Corp. 9%	133,400		4,002,000
TOTAL UTILITIES			17,661,816
TOTAL CONVERTIBLE PREFERRED STOCKS			126,918,119
Nonconvertible Preferred Stocks - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Media - 0.0%
CSC Holdings, Inc.:
Series H, 11.75%	1,110		114,053
Series M, 11.125%	400		40,900
			154,953
TOTAL PREFERRED STOCKS (Cost $157,279,838)		127,073,072
Corporate Bonds - 1.5%
	Principal Amount
Convertible Bonds - 1.0%
CONSUMER DISCRETIONARY - 0.5%
Hotels, Restaurants & Leisure - 0.1%
Royal Caribbean Cruises Ltd. liquid yield option note 0% 2/2/21	$ 15,369,000		6,627,881
Media - 0.4%
Cox Communications, Inc. 0.4259% 4/19/20	26,600,000		13,333,250
Liberty Media Corp.3.5% 1/15/31 (d)	11,400,000		8,550,000
News America, Inc. liquid yield option note 0% 2/28/21 (d)	22,670,000		12,638,525
			34,521,775
Multiline Retail - 0.0%
JCPenney Co., Inc. 5% 10/15/08 (d)	2,670,000		2,588,245
TOTAL CONSUMER DISCRETIONARY			43,737,901
FINANCIALS - 0.1%
Diversified Financial Services - 0.0%
Navistar Financial Corp. 4.75% 4/1/09 (d)	2,760,000		2,612,257
Insurance - 0.1%
Loews Corp. 3.125% 9/15/07	5,340,000		5,019,600
TOTAL FINANCIALS			7,631,857

	Principal Amount		Value (Note 1)
INFORMATION TECHNOLOGY - 0.3%
Communications Equipment - 0.2%
Corning, Inc. 3.5% 11/1/08	$ 13,700,000		$ 14,805,316
Computers & Peripherals - 0.0%
Quantum Corp. 7% 8/1/04	5,350,000		5,376,750
Electronic Equipment & Instruments - 0.1%
Agilent Technologies, Inc. 3% 12/1/21	6,670,000		6,537,667
Celestica, Inc. liquid yield option note 0% 8/1/20	620,000		322,400
			6,860,067
TOTAL INFORMATION TECHNOLOGY			27,042,133
MATERIALS - 0.1%
Metals & Mining - 0.1%
Freeport-McMoRan Copper & Gold, Inc. 8.25% 1/31/06 (d)	4,220,000		7,543,250
TOTAL CONVERTIBLE BONDS			85,955,141
Nonconvertible Bonds - 0.5%
CONSUMER DISCRETIONARY - 0.1%
Auto Components - 0.0%
ArvinMeritor, Inc. 8.75% 3/1/12	35,000		38,850
Dana Corp.:
6.25% 3/1/04	80,000		80,400
6.5% 3/1/09	45,000		43,650
9% 8/15/11	125,000		134,375
Navistar International Corp. 8% 2/1/08	55,000		54,725
Stoneridge, Inc. 11.5% 5/1/12	25,000		28,000
United Components, Inc. 9.375% 6/15/13 (d)	40,000		41,200
			421,200
Hotels, Restaurants & Leisure - 0.0%
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	325,000		297,375
10.5% 7/15/11 (d)	220,000		221,100
Domino's, Inc. 8.25% 7/1/11 (d)	70,000		71,925
Florida Panthers Holdings, Inc. 9.875% 4/15/09	35,000		37,625
Friendly Ice Cream Corp. 10.5% 12/1/07	135,000		138,038
Mohegan Tribal Gaming Authority 8.375% 7/1/11	30,000		32,250
Morton's Restaurant Group, Inc. 7.5% 7/1/10 (d)(e)	40,000		34,600
MTR Gaming Group, Inc. 9.75% 4/1/10 (d)	60,000		62,100
Premier Parks, Inc. 9.75% 6/15/07	65,000		64,675
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	$ 95,000		$ 102,363
Town Sports International, Inc. 9.625% 4/15/11 (d)	70,000		73,325
Tricon Global Restaurants, Inc. 7.65% 5/15/08	65,000		73,450
Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (d)	50,000		52,000
Wheeling Island Gaming, Inc. 10.125% 12/15/09	670,000		664,975
			1,925,801
Household Durables - 0.0%
Beazer Homes USA, Inc. 8.375% 4/15/12	30,000		33,150
D.R. Horton, Inc.:
8% 2/1/09	310,000		342,550
8.5% 4/15/12	30,000		33,600
Juno Lighting, Inc. 11.875% 7/1/09	135,000		145,800
K. Hovnanian Enterprises, Inc. 8.875% 4/1/12	40,000		43,200
Lyon William Homes, Inc. 10.75% 4/1/13	165,000		174,900
Ryland Group, Inc.:
8.25% 4/1/08	65,000		67,600
9.125% 6/15/11	95,000		107,825
Standard Pacific Corp. 7.75% 3/15/13	280,000		296,800
			1,245,425
Leisure Equipment & Products - 0.0%
The Hockey Co. 11.25% 4/15/09	45,000		49,950
Media - 0.1%
AMC Entertainment, Inc.:
9.5% 3/15/09	60,000		61,500
9.875% 2/1/12	60,000		64,200
CBD Media LLC/ CBD Finance, Inc. 8.625% 6/1/11 (d)	30,000		30,825
Comcast UK Cable Partners Ltd. yankee 11.2% 11/15/07	160,000		154,400
Corus Entertainment, Inc. 8.75% 3/1/12	790,000		847,275
CSC Holdings, Inc.:
7.875% 2/15/18	125,000		129,375
9.875% 2/15/13	100,000		103,000
Diamond Holdings PLC yankee 9.125% 2/1/08	80,000		74,000
EchoStar DBS Corp. 10.375% 10/1/07	900,000		996,750
Lamar Media Corp. 7.25% 1/1/13 (d)	110,000		116,050
LBI Media, Inc. 10.125% 7/15/12	925,000		1,017,500
LodgeNet Entertainment Corp. 9.5% 6/15/13	30,000		30,750

	Principal Amount		Value (Note 1)
Nextmedia Operating, Inc. 10.75% 7/1/11	$ 720,000		$ 806,400
PEI Holdings, Inc. 11% 3/15/10 (d)	70,000		77,350
PRIMEDIA, Inc.:
7.625% 4/1/08	25,000		25,375
8.875% 5/15/11	25,000		26,500
Rogers Cablesystems Ltd. yankee 11% 12/1/15	15,000		16,950
Rogers Communications, Inc. yankee 8.875% 7/15/07	65,000		66,950
Shaw Communications, Inc. yankee 7.2% 12/15/11	35,000		37,713
XM Satellite Radio, Inc. 12% 6/15/10 (d)	95,000		94,288
			4,777,151
Multiline Retail - 0.0%
Barneys, Inc. 9% 4/1/08 unit (d)	200,000		180,000
Specialty Retail - 0.0%
Asbury Automotive Group, Inc. 9% 6/15/12	80,000		78,400
Gap, Inc. 10.55% 12/15/08	20,000		24,200
Toys 'R' US, Inc. 7.875% 4/15/13	110,000		117,700
United Auto Group, Inc. 9.625% 3/15/12	295,000		315,650
			535,950
Textiles Apparel & Luxury Goods - 0.0%
Dan River, Inc. 12.75% 4/15/09 (d)	205,000		184,500
Levi Strauss & Co.:
7% 11/1/06	45,000		36,000
11.625% 1/15/08	25,000		21,375
12.25% 12/15/12	40,000		33,200
			275,075
TOTAL CONSUMER DISCRETIONARY			9,410,552
CONSUMER STAPLES - 0.0%
Beverages - 0.0%
Canandaigua Brands, Inc. 8.5% 3/1/09	315,000		331,538
Food & Staples Retailing - 0.0%
Rite Aid Corp.:
6% 12/15/05 (d)	115,000		108,100
6.875% 8/15/13	90,000		77,850
7.625% 4/15/05	25,000		24,875
8.125% 5/1/10 (d)	110,000		114,400
9.5% 2/15/11 (d)	110,000		118,250
The Great Atlantic & Pacific Tea Co.:
7.75% 4/15/07	340,000		317,900
9.125% 12/15/11	115,000		107,525
			868,900
Food Products - 0.0%
Corn Products International, Inc. 8.25% 7/15/07	605,000		677,600
Del Monte Corp. 9.25% 5/15/11	45,000		49,050
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER STAPLES - continued
Food Products - continued
Doane Pet Care Co. 9.75% 5/15/07	$ 205,000		$ 194,750
Dole Food Co., Inc. 7.25% 6/15/10 (d)	100,000		100,750
			1,022,150
Household Products - 0.0%
Fort James Corp. 6.875% 9/15/07	35,000		35,525
Personal Products - 0.0%
Jafra Cosmetics International, Inc./Distribuidora Comercial Jafra SA de CV 10.75% 5/15/11 (d)	60,000		62,400
TOTAL CONSUMER STAPLES			2,320,513
ENERGY - 0.0%
Energy Equipment & Services - 0.0%
Grant Prideco, Inc. 9% 12/15/09	40,000		44,700
Universal Compression, Inc. 7.25% 5/15/10 (d)	320,000		334,400
			379,100
Oil & Gas - 0.0%
Chesapeake Energy Corp. 7.5% 9/15/13 (d)	110,000		117,150
General Maritime Corp. 10% 3/15/13 (d)	210,000		229,950
GulfTerra Energy Partners LP/GulfTerra Energy Finance Corp. 10.625% 12/1/12	50,000		58,000
Houston Exploration Co. 7% 6/15/13 (d)	50,000		51,625
NGC Corp. 6.75% 12/15/05	80,000		75,600
Nuevo Energy Co.:
9.375% 10/1/10	30,000		32,325
9.5% 6/1/08	31,000		32,473
Overseas Shipholding Group, Inc. 8.25% 3/15/13 (d)	205,000		213,200
Plains Exploration & Production Co. LP 8.75% 7/1/12 (d)	80,000		85,600
Tesoro Petroleum Corp. 8% 4/15/08 (d)	40,000		41,000
The Coastal Corp.:
6.375% 2/1/09	10,000		8,750
6.5% 5/15/06	40,000		37,400
6.5% 6/1/08	30,000		26,850
6.95% 6/1/28	65,000		51,675
7.5% 8/15/06	120,000		115,800
7.75% 6/15/10	65,000		60,613
7.75% 10/15/35	40,000		33,600
			1,271,611
TOTAL ENERGY			1,650,711
FINANCIALS - 0.1%
Consumer Finance - 0.0%
AmeriCredit Corp. 9.875% 4/15/06	45,000		42,750

	Principal Amount		Value (Note 1)
Capital One Financial Corp.:
7.25% 12/1/03	$ 40,000		$ 40,800
8.75% 2/1/07	80,000		88,800
			172,350
Diversified Financial Services - 0.1%
Ahold Finance USA, Inc.:
6.25% 5/1/09	100,000		93,000
6.875% 5/1/29	75,000		63,375
8.25% 7/15/10	260,000		262,600
Arch Western Finance LLC 6.75% 7/1/13 (d)	215,000		219,300
BRL Universal Equipment 2001 A LP/BRL Universal Equipment Corp. 8.875% 2/15/08	650,000		702,000
CMS Energy X-TRAS pass thru trust I 7% 1/15/05	40,000		39,700
Continental Airlines, Inc. pass thru trust certificates:
6.748% 9/15/18	11,889		9,036
6.9% 1/2/17	23,773		18,068
7.73% 9/15/12	24,669		18,502
8.321% 11/1/06	10,000		8,400
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	35,000		29,400
7.779% 1/2/12	751,351		601,080
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp. 8.5% 6/1/11	45,000		48,150
FIMEP SA 10.5% 2/15/13 (d)	120,000		134,400
Gemstone Investor Ltd./Gemstone Investor, Inc. 7.71% 10/31/04 (d)	235,000		232,650
Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11 (d)	160,000		156,000
Huntsman Advanced Materials LLC 11% 7/15/10 (d)	60,000		62,400
IOS Capital LLC 7.25% 6/30/08	110,000		108,350
Leucadia National Corp. 7% 8/15/13 (d)	130,000		130,325
Moore North America Finance, Inc. 7.875% 1/15/11 (d)	90,000		94,050
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10 (d)	30,000		30,900
Northern Telecom Capital Corp. 7.875% 6/15/26	75,000		68,250
Northwest Airlines, Inc. pass thru trust certificates:
7.068% 7/2/17	37,818		29,498
7.67% 1/2/15	39,608		32,875
7.691% 4/1/17	126,559		99,981
Qwest Capital Funding, Inc.:
5.875% 8/3/04	220,000		212,300
7% 8/3/09	100,000		82,000
7.25% 2/15/11	115,000		93,150
7.625% 8/3/21	70,000		55,300
7.75% 8/15/06	310,000		288,300
7.75% 2/15/31	120,000		93,600
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
TRW Automotive Acquisition Corp.:
9.375% 2/15/13 (d)	$ 130,000		$ 141,375
11% 2/15/13 (d)	30,000		32,850
U.S. West Capital Funding, Inc. 6.375% 7/15/08	85,000		69,275
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10 (d)	190,000		209,000
Western Financial Bank 9.625% 5/15/12	40,000		43,200
			4,612,640
Insurance - 0.0%
Crum & Forster Holdings Corp. 10.375% 6/15/13 (d)	130,000		131,950
Real Estate - 0.0%
CBRE Escrow, Inc. 9.75% 5/15/10 (d)	265,000		280,900
LNR Property Corp.:
7.625% 7/15/13 (d)	90,000		90,900
9.375% 3/15/08	10,000		10,400
10.5% 1/15/09	40,000		42,400
Senior Housing Properties Trust 7.875% 4/15/15	60,000		61,200
			485,800
TOTAL FINANCIALS			5,402,740
HEALTH CARE - 0.0%
Health Care Providers & Services - 0.0%
AmeriPath, Inc. 10.5% 4/1/13 (d)	100,000		107,000
PacifiCare Health Systems, Inc. 10.75% 6/1/09	620,000		708,350
Psychiatric Solutions, Inc. 10.625% 6/15/13 (d)	40,000		41,100
Rotech Healthcare, Inc. 9.5% 4/1/12	120,000		123,000
Tenet Healthcare Corp.:
6.375% 12/1/11	75,000		69,375
6.5% 6/1/12	10,000		9,250
7.375% 2/1/13	215,000		207,475
			1,265,550
Pharmaceuticals - 0.0%
aaiPharma, Inc. 11% 4/1/10	515,000		566,500
TOTAL HEALTH CARE			1,832,050
INDUSTRIALS - 0.0%
Aerospace & Defense - 0.0%
Aviall, Inc. 7.625% 7/1/11 (d)	110,000		110,550
Esterline Technologies Corp. 7.75% 6/15/13 (d)	30,000		31,050
			141,600
Airlines - 0.0%
Delta Air Lines, Inc. 7.9% 12/15/09	25,000		19,750

	Principal Amount		Value (Note 1)
Northwest Airlines, Inc.:
7.875% 3/15/08	$ 25,000		$ 19,250
9.875% 3/15/07	45,000		35,550
			74,550
Building Products - 0.0%
FastenTech, Inc. 11.5% 5/1/11 (d)	80,000		80,600
Jacuzzi Brands, Inc. 9.625% 7/1/10 (d)(e)	40,000		40,000
Nortek, Inc.:
9.125% 9/1/07	20,000		20,600
9.25% 3/15/07	30,000		30,825
			172,025
Commercial Services & Supplies - 0.0%
Allied Waste North America, Inc.:
7.875% 4/15/13	140,000		146,475
9.25% 9/1/12 (d)	115,000		127,075
10% 8/1/09	15,000		16,013
American Color Graphics, Inc. 10% 6/15/10 (d)(e)	130,000		130,650
Mobile Mini, Inc. 9.5% 7/1/13 (d)	120,000		124,200
National Waterworks, Inc. 10.5% 12/1/12	60,000		66,600
			611,013
Construction & Engineering - 0.0%
Shaw Group, Inc. 10.75% 3/15/10 (d)	140,000		140,700
Industrial Conglomerates - 0.0%
Tyco International Group SA yankee:
5.8% 8/1/06	5,000		5,163
6.375% 2/15/06	120,000		125,100
7% 6/15/28	85,000		85,850
			216,113
Machinery - 0.0%
Cummins, Inc.:
5.65% 3/1/98	110,000		74,800
9.5% 12/1/10 (d)	75,000		84,375
Dresser, Inc. 9.375% 4/15/11	125,000		128,750
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	170,000		183,600
JLG Industries, Inc. 8.25% 5/1/08 (d)	110,000		112,200
Terex Corp. 8.875% 4/1/08	60,000		62,400
TriMas Corp. 9.875% 6/15/12 (d)	90,000		91,800
			737,925
TOTAL INDUSTRIALS			2,093,926
INFORMATION TECHNOLOGY - 0.0%
Communications Equipment - 0.0%
Nortel Networks Corp. 6.125% 2/15/06	130,000		125,450
Northern Telecom Ltd. yankee 6.875% 9/1/23	70,000		59,500
Qwest Services Corp.:
13% 12/15/07 (d)	75,000		82,500
13.5% 12/15/10 (d)	130,000		146,900
14% 12/15/14 (d)	472,000		549,880
			964,230
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INFORMATION TECHNOLOGY - continued
Computers & Peripherals - 0.0%
Seagate Technology HDD Holdings 8% 5/15/09	$ 25,000		$ 27,000
Electronic Equipment & Instruments - 0.0%
Avnet, Inc. 9.75% 2/15/08	110,000		124,300
Ingram Micro, Inc. 9.875% 8/15/08	40,000		43,600
PerkinElmer, Inc. 8.875% 1/15/13	140,000		152,950
Solectron Corp. 7.375% 3/1/06	255,000		253,725
			574,575
IT Services - 0.0%
Digitalnet, Inc. 9% 7/15/10 (d)	60,000		60,000
Iron Mountain, Inc. 6.625% 1/1/16	220,000		216,700
Titan Corp. 8% 5/15/11 (d)	110,000		116,050
			392,750
Office Electronics - 0.0%
Xerox Corp.:
7.125% 6/15/10	120,000		120,300
7.15% 8/1/04	15,000		15,338
7.2% 4/1/16	200,000		190,000
7.625% 6/15/13	120,000		120,300
			445,938
Semiconductors & Semiconductor Equipment - 0.0%
AMI Semiconductor, Inc. 10.75% 2/1/13 (d)	40,000		45,200
Amkor Technology, Inc. 7.75% 5/15/13 (d)	80,000		75,600
SCG Holding Corp./Semiconductor Components Industries LLC 12% 8/1/09	125,000		105,625
			226,425
TOTAL INFORMATION TECHNOLOGY			2,630,918
MATERIALS - 0.1%
Chemicals - 0.0%
Geon Co. 6.875% 12/15/05	25,000		23,250
HMP Equity Holdings Corp. 0% 5/15/08 unit (d)	190,000		95,000
Huntsman International LLC 9.875% 3/1/09 (d)	105,000		108,675
Methanex Corp. yankee 7.75% 8/15/05	290,000		305,950
Millennium America, Inc.:
9.25% 6/15/08	75,000		81,000
9.25% 6/15/08 (d)	40,000		43,200
OMNOVA Solutions, Inc. 11.25% 6/1/10 (d)	100,000		109,000
PolyOne Corp. 8.875% 5/1/12	105,000		93,450

	Principal Amount		Value (Note 1)
Resolution Performance Products LLC:
9.5% 4/15/10	$ 100,000		$ 104,500
13.5% 11/15/10	30,000		30,000
			994,025
Construction Materials - 0.0%
Texas Industries, Inc. 10.25% 6/15/11 (d)	240,000		252,000
Containers & Packaging - 0.1%
Anchor Glass Container Corp. 11% 2/15/13 (d)	120,000		129,600
BWAY Corp. 10% 10/15/10 (d)	40,000		40,800
Jefferson Smurfit Corp. U.S. 7.5% 6/1/13 (d)	230,000		234,025
Owens-Brockway Glass Container, Inc.:
7.75% 5/15/11 (d)	70,000		73,675
8.25% 5/15/13 (d)	130,000		136,500
8.75% 11/15/12	65,000		70,525
8.875% 2/15/09	550,000		595,375
Owens-Illinois, Inc.:
7.15% 5/15/05	360,000		366,300
7.35% 5/15/08	175,000		172,375
7.5% 5/15/10	35,000		34,300
7.8% 5/15/18	235,000		220,900
			2,074,375
Metals & Mining - 0.0%
Peabody Energy Corp. 6.875% 3/15/13 (d)	150,000		156,750
Phelps Dodge Corp. 8.75% 6/1/11	730,000		851,764
Salt Holdings Corp., Inc.:
0% 12/15/12 (c)(d)	140,000		94,850
0% 6/1/13 (c)(d)	220,000		123,200
Steel Dynamics, Inc. 9.5% 3/15/09	55,000		57,750
			1,284,314
Paper & Forest Products - 0.0%
Georgia-Pacific Corp.:
7.375% 12/1/25	25,000		22,000
7.5% 5/15/06	285,000		292,125
8.125% 5/15/11	130,000		133,575
8.875% 5/15/31	10,000		9,800
Norske Skog Canada Ltd. 8.625% 6/15/11 (d)	150,000		156,563
			614,063
TOTAL MATERIALS			5,218,777
TELECOMMUNICATION SERVICES - 0.1%
Diversified Telecommunication Services - 0.0%
Qwest Corp. 8.875% 3/15/12 (d)	430,000		480,525
Rogers Cantel, Inc. yankee:
8.8% 10/1/07	150,000		153,000
9.375% 6/1/08	20,000		20,900
Triton PCS, Inc.:
8.75% 11/15/11	120,000		119,400
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
Triton PCS, Inc.: - continued
9.375% 2/1/11	$ 175,000		$ 178,500
U.S. West Communications 6.875% 9/15/33	60,000		54,900
			1,007,225
Wireless Telecommunication Services - 0.1%
American Tower Corp. 9.375% 2/1/09	170,000		170,000
Crown Castle International Corp.:
9.375% 8/1/11	90,000		93,375
9.5% 8/1/11	295,000		303,850
10.75% 8/1/11	85,000		91,375
Nextel Communications, Inc.:
9.375% 11/15/09	170,000		182,325
9.5% 2/1/11	40,000		44,400
9.75% 10/31/07	625,000		650,000
9.95% 2/15/08	180,000		189,000
Nextel Partners, Inc. 8.125% 7/1/11 (d)	125,000		124,375
Rogers Wireless, Inc. 9.625% 5/1/11	60,000		67,800
SBA Communications Corp. 10.25% 2/1/09	50,000		45,000
			1,961,500
TOTAL TELECOMMUNICATION SERVICES			2,968,725
UTILITIES - 0.1%
Electric Utilities - 0.0%
Allegheny Energy Supply Co. LLC:
Series A, 10.25% 11/15/07 (d)	114,496		117,931
Series B, 10.25% 11/15/07 (d)(f)	10,500		10,080
7.8% 3/15/11	250,000		207,500
8.75% 4/15/12 (d)	280,000		239,400
CMS Energy Corp. 8.5% 4/15/11	890,000		921,150
Edison International 6.875% 9/15/04	55,000		55,550
Illinois Power Co. 11.5% 12/15/10 (d)	210,000		239,400
Midland Funding Corp. II 11.75% 7/23/05	55,000		59,125
Nevada Power Co. 10.875% 10/15/09	115,000		129,375
Pacific Gas & Electric Co. 6.25% 3/1/04	375,000		375,000
PG&E Corp. 6.875% 7/15/08 (d)	90,000		93,375
Southern California Edison Co.:
7.25% 3/1/26	115,000		116,438
8% 2/15/07 (d)	80,000		88,000
TECO Energy, Inc. 10.5% 12/1/07	160,000		184,000
			2,836,324

	Principal Amount		Value (Note 1)
Gas Utilities - 0.0%
ANR Pipeline, Inc. 9.625% 11/1/21	$ 135,000		$ 159,300
Dynegy Holdings, Inc.:
7.45% 7/15/06	75,000		71,250
8.125% 3/15/05	65,000		63,050
El Paso Energy Corp.:
6.75% 5/15/09	65,000		59,475
6.95% 12/15/07	175,000		163,625
7.375% 12/15/12	10,000		8,950
7.75% 1/15/32	60,000		50,550
7.8% 8/1/31	50,000		41,250
8.05% 10/15/30	380,000		328,700
SEMCO Energy, Inc.:
7.125% 5/15/08 (d)	30,000		31,200
7.75% 5/15/13 (d)	30,000		31,800
Sonat, Inc.:
6.625% 2/1/08	130,000		116,350
6.75% 10/1/07	70,000		63,263
6.875% 6/1/05	470,000		455,900
Southern Natural Gas Co. 8.875% 3/15/10 (d)	60,000		65,700
Transcontinental Gas Pipe Line Corp.:
6.125% 1/15/05	35,000		35,000
8.875% 7/15/12	20,000		22,550
Williams Holdings of Delaware, Inc. 6.25% 2/1/06	15,000		14,700
			1,782,613
Multi-Utilities & Unregulated Power - 0.1%
AES Corp.:
8.375% 8/15/07	75,000		70,125
8.5% 11/1/07	55,000		51,425
8.75% 6/15/08	40,000		39,400
8.75% 5/15/13 (d)	285,000		296,400
8.875% 2/15/11	81,000		78,975
9% 5/15/15 (d)	150,000		156,375
9.375% 9/15/10	19,000		19,095
9.5% 6/1/09	161,000		161,805
10% 12/12/05 (d)	50,000		51,250
10.25% 7/15/06	60,000		59,100
El Paso Corp.:
7% 5/15/11	140,000		127,400
7.875% 6/15/12 (d)	45,000		41,681
El Paso Production Holding Co. 7.75% 6/1/13 (d)	320,000		320,400
Reliant Resources, Inc.:
9.25% 7/15/10 (d)	100,000		100,500
9.5% 7/15/13 (d)	90,000		90,675
Western Resources, Inc. 9.75% 5/1/07	155,000		173,600
Williams Companies, Inc.:
6.5% 8/1/06	100,000		98,000
6.75% 1/15/06	125,000		122,188
7.125% 9/1/11	775,000		755,625
7.625% 7/15/19	175,000		169,750
7.75% 6/15/31	40,000		38,800
7.875% 9/1/21	140,000		137,550
8.125% 3/15/12	85,000		87,125
8.625% 6/1/10	150,000		156,938
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
UTILITIES - continued
Multi-Utilities & Unregulated Power - continued
Williams Companies, Inc.: - continued
8.75% 3/15/32	$ 40,000		$ 41,600
9.25% 3/15/04	100,000		102,500
			3,548,282
TOTAL UTILITIES			8,167,219
TOTAL NONCONVERTIBLE BONDS			41,696,131
TOTAL CORPORATE BONDS (Cost $121,886,913)		127,651,272
Money Market Funds - 1.1%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	60,326,080		60,326,080
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	32,303,550		32,303,550
TOTAL MONEY MARKET FUNDS (Cost $92,629,630)		92,629,630

TOTAL INVESTMENT PORTFOLIO - 100.3%

(Cost $7,969,528,776)

8,735,375,176

NET OTHER ASSETS - (0.3)%			(25,414,714)
NET ASSETS - 100%		$ 8,709,960,462

Security Type Abbreviations

PIERS - Preferred Income Equity Redeemable Securities

PRIDES - Preferred Redeemable Increased Dividend Equity Securities

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(c) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $1,029,757,674 and $1,202,846,718, respectively.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $127,840,000 all of which will expire on December 31, 2010.

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

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $30,978,451) (cost $7,969,528,776) - See accompanying schedule		$ 8,735,375,176
Cash		276,744
Receivable for investments sold		17,100,070
Receivable for fund shares sold		4,762,996
Dividends receivable		12,443,826
Interest receivable		1,618,385
Redemption fees receivable		10
Other receivables		57,320
Total assets		8,771,634,527

Liabilities
Payable for investments purchased Regular delivery	$ 14,066,644
Delayed delivery	204,000
Payable for fund shares redeemed	10,926,627
Accrued management fee	3,552,359
Distribution fees payable	194,119
Other payables and accrued expenses	426,766
Collateral on securities loaned, at value	32,303,550
Total liabilities		61,674,065

Net Assets		$ 8,709,960,462
Net Assets consist of:
Paid in capital		$ 7,986,611,076
Undistributed net investment income		76,409,653
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(118,909,772)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		765,849,505
Net Assets		$ 8,709,960,462
Initial Class: Net Asset Value, offering price and redemption price per share ($7,244,489,053 ÷ 367,912,682 shares)		$ 19.69
Service Class: Net Asset Value, offering price and redemption price per share ($880,794,139 ÷ 44,857,125 shares)		$ 19.64
Service Class 2: Net Asset Value, offering price and redemption price per share ($583,761,981 ÷ 29,900,210 shares)		$ 19.52
Service Class 2R: Net Asset Value, offering price and redemption price per share ($915,289 ÷ 46,982 shares)		$ 19.48

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)
Investment Income
Dividends		$ 97,852,702
Interest		4,036,717
Security lending		124,537
Total income		102,013,956

Expenses
Management fee	$ 19,332,228
Transfer agent fees	2,742,609
Distribution fees	972,967
Accounting and security lending fees	399,253
Non-interested trustees' compensation	16,114
Depreciation in deferred trustee compensation account	(22,360)
Custodian fees and expenses	80,861
Audit	47,943
Legal	12,220
Interest	21,208
Miscellaneous	169,601
Total expenses before reductions	23,772,644
Expense reductions	(478,976)	23,293,668
Net investment income (loss)		78,720,288
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	16,944,528
Foreign currency transactions	29,074
Total net realized gain (loss)		16,973,602
Change in net unrealized appreciation (depreciation) on: Investment securities	728,855,641
Assets and liabilities in foreign currencies	(23,730)
Total change in net unrealized appreciation (depreciation)		728,831,911
Net gain (loss)		745,805,513
Net increase (decrease) in net assets resulting from operations		$ 824,525,801

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

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003	Year ended December 31,
Increase (Decrease) in Net Assets	(Unaudited)	2002
Operations
Net investment income (loss)	$ 78,720,288	$ 156,904,928
Net realized gain (loss)	16,973,602	(136,493,863)
Change in net unrealized appreciation (depreciation)	728,831,911	(1,811,259,080)
Net increase (decrease) in net assets resulting from operations	824,525,801	(1,790,848,015)
Distributions to shareholders from net investment income	(152,426,442)	(162,342,476)
Distributions to shareholders from net realized gain	-	(222,300,466)
Total distributions	(152,426,442)	(384,642,942)
Share transactions - net increase (decrease)	(33,697,536)	(71,251,438)
Redemption fees	906	259
Total increase (decrease) in net assets	638,402,729	(2,246,742,136)

Net Assets
Beginning of period	8,071,557,733	10,318,299,869
End of period (including undistributed net investment income of $76,409,653 and undistributed net investment income of $154,882,636, respectively)	$ 8,709,960,462	$ 8,071,557,733

Other Information:
Share Transactions	Six months ended June 30, 2003
	Initial Class	Service Class	Service Class 2	Service Class 2R
Shares Sold	16,976,465	6,193,408	9,178,141	54,310
Reinvested	7,869,268	847,723	452,997	1,082
Redeemed	(36,646,287)	(4,812,738)	(2,154,576)	(34,576)
Net increase (decrease)	(11,800,554)	2,228,393	7,476,562	20,816

Dollars Sold	$ 312,325,235	$ 113,561,617	$ 165,872,414	$ 1,024,730
Reinvested	130,865,933	14,063,717	7,478,977	17,815
Redeemed	(653,424,428)	(86,066,956)	(38,852,327)	(564,263)
Net increase (decrease)	$ (210,233,260)	$ 41,558,378	$ 134,499,064	$ 478,282

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R^A
Shares Sold	55,802,238	11,112,619	17,439,374	30,522
Reinvested	16,371,256	1,504,858	437,787	-
Redeemed	(99,410,660)	(6,864,417)	(5,462,708)	(4,356)
Net increase (decrease)	(27,237,166)	5,753,060	12,414,453	26,166

Dollars Sold	$ 1,171,193,465	$ 231,985,655	$ 345,877,938	$ 576,334
Reinvested	343,960,099	31,541,832	9,140,991	-
Redeemed	(1,967,582,454)	(132,366,206)	(105,497,795)	(81,297)
Net increase (decrease)	$ (452,428,890)	$ 131,161,281	$ 249,521,134	$ 495,037

Distributions	Six months ended June 30, 2003
	Initial Class	Service Class	Service Class 2	Service Class 2R
From net investment income	$ 130,865,933	$ 14,063,717	$ 7,478,977	$ 17,815
From net realized gain	-	-	-	-
Total	$ 130,865,933	$ 14,063,717	$ 7,478,977	$ 17,815

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R^A
From net investment income	$ 145,677,218	$ 12,920,750	$ 3,744,508	$ -
From net realized gain	198,282,881	18,621,082	5,396,503	-
Total	$ 343,960,099	$ 31,541,832	$ 9,141,011	$ -

^A For the period April 24, 2002 (commencement of sales of shares) to December 31, 2002.

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

Equity-Income Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.16	$ 22.75	$ 25.52	$ 25.71	$ 25.42	$ 24.28
Income from Investment Operations
Net investment income (loss)^E	.18	.34	.34	.40	.41	.38
Net realized and unrealized gain (loss)	1.70	(4.08)	(1.51)	1.46	1.10	2.31
Total from investment operations	1.88	(3.74)	(1.17)	1.86	1.51	2.69
Distributions from net investment income	(.35)	(.36)	(.42)	(.44)	(.38)	(.34)
Distributions from net realized gain	-	(.49)	(1.18)	(1.61)	(.84)	(1.21)
Total distributions	(.35)	(.85)	(1.60)	(2.05)	(1.22)	(1.55)
Redemption fees added to paid in capital	- ^E,G	- ^E,G	-	-	-	-
Net asset value, end of period	$ 19.69	$ 18.16	$ 22.75	$ 25.52	$ 25.71	$ 25.42
Total Return^B,C,D	10.71%	(16.95)%	(4.96)%	8.42%	6.33%	11.63%
Ratios to Average Net Assets^F
Expenses before expense reductions	.57%^A	.57%	.58%	.56%	.57%	.58%
Expenses net of voluntary waivers, if any	.57%^A	.57%	.58%	.56%	.57%	.58%
Expenses net of all reductions	.56%^A	.56%	.57%	.55%	.56%	.57%
Net investment income (loss)	1.99%^A	1.70%	1.47%	1.68%	1.57%	1.58%
Supplemental Data
Net assets, end of period (000 omitted)	$ 7,244,489	$ 6,895,940	$ 9,256,205	$ 9,969,086	$ 11,014,291	$ 11,409,912
Portfolio turnover rate	26%^A	25%	24%	22%	27%	28%

^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.

^GAmount represents less than $.01 per-share.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.10	$ 22.67	$ 25.45	$ 25.66	$ 25.39	$ 24.27
Income from Investment Operations
Net investment income (loss)^E	.17	.32	.31	.37	.38	.36
Net realized and unrealized gain (loss)	1.70	(4.06)	(1.51)	1.46	1.11	2.31
Total from investment operations	1.87	(3.74)	(1.20)	1.83	1.49	2.67
Distributions from net investment income	(.33)	(.34)	(.40)	(.43)	(.38)	(.34)
Distributions from net realized gain	-	(.49)	(1.18)	(1.61)	(.84)	(1.21)
Total distributions	(.33)	(.83)	(1.58)	(2.04)	(1.22)	(1.55)
Redemption fees added to paid in capital	- ^E,G	- ^E,G	-	-	-	-
Net asset value, end of period	$ 19.64	$ 18.10	$ 22.67	$ 25.45	$ 25.66	$ 25.39
Total Return^B,C,D	10.67%	(17.00)%	(5.09)%	8.30%	6.25%	11.54%
Ratios to Average Net Assets^F
Expenses before expense reductions	.67%^A	.67%	.68%	.66%	.67%	.68%
Expenses net of voluntary waivers, if any	.67%^A	.67%	.68%	.66%	.67%	.68%
Expenses net of all reductions	.66%^A	.66%	.67%	.65%	.66%	.67%
Net investment income (loss)	1.89%^A	1.60%	1.37%	1.58%	1.47%	1.51%
Supplemental Data
Net assets, end of period (000 omitted)	$ 880,794	$ 771,516	$ 836,017	$ 634,897	$ 437,332	$ 225,145
Portfolio turnover rate	26%^A	25%	24%	22%	27%	28%

^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.

^GAmount represents less than $.01 per-share.

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

Equity-Income Portfolio

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 18.00	$ 22.59	$ 25.41	$ 25.18
Income from Investment Operations
Net investment income (loss)^E	.16	.28	.27	.32
Net realized and unrealized gain (loss)	1.68	(4.04)	(1.50)	1.95
Total from investment operations	1.84	(3.76)	(1.23)	2.27
Distributions from net investment income	(.32)	(.34)	(.41)	(.43)
Distributions from net realized gain	-	(.49)	(1.18)	(1.61)
Total distributions	(.32)	(.83)	(1.59)	(2.04)
Redemption fees added to paid in capital	- ^E,G	- ^E,G	-	-
Net asset value, end of period	$ 19.52	$ 18.00	$ 22.59	$ 25.41
Total Return^B,C,D	10.55%	(17.15)%	(5.23)%	10.19%
Ratios to Average Net Assets^F
Expenses before expense reductions	.82%^A	.83%	.84%	.83%^A
Expenses net of voluntary waivers, if any	.82%^A	.83%	.84%	.83%^A
Expenses net of all reductions	.81%^A	.82%	.83%	.82%^A
Net investment income (loss)	1.74%^A	1.44%	1.21%	1.41%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 583,762	$ 403,632	$ 226,078	$ 39,911
Portfolio turnover rate	26%^A	25%	24%	22%

^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 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 any voluntary 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.

^GAmount represents less than $.01 per-share.

^HFor the period January 12, 2000 (commencement of sales of shares) to December 31, 2000.

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.99	$ 21.82
Income from Investment Operations
Net investment income (loss)^E	.15	.18
Net realized and unrealized gain (loss)	1.69	(4.01)
Total from investment operations	1.84	(3.83)
Distributions from net investment income	(.35)	-
Redemption fees added to paid in capital ^E,H	-	-
Net asset value, end of period	$ 19.48	$ 17.99
Total Return^B,C,D	10.58%	(17.55)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.82%^A	.85%^A
Expenses net of voluntary waivers, if any	.82%^A	.85%^A
Expenses net of all reductions	.81%^A	.84%^A
Net investment income (loss)	1.74%^A	1.45%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 915	$ 471
Portfolio turnover rate	26%^A	25%

^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 For the period April 24, 2002 (commencement of sale of shares) to December 31, 2002.

^HAmount represents less than $.01 per-share.

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

Equity-Income Portfolio

Fidelity Variable Insurance Products: Growth Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Pfizer, Inc.	4.2
Microsoft Corp.	3.8
Johnson & Johnson	3.1
Merck & Co., Inc.	2.6
Wal-Mart Stores, Inc.	2.5
	16.2
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Information Technology	33.2
Health Care	22.4
Consumer Discretionary	12.9
Financials	12.0
Consumer Staples	5.8

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks	99.5%
	Short-Term Investments and Net Other Assets	0.5%

* Foreign investments

7.0%

Semiannual Report

Fidelity Variable Insurance Products: Growth Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.5%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 12.9%
Hotels, Restaurants & Leisure - 0.5%
Brinker International, Inc. (a)	991,850		$ 35,726,437
Darden Restaurants, Inc.	462,900		8,785,842
			44,512,279
Household Durables - 0.8%
Centex Corp.	91,600		7,125,564
KB Home	106,100		6,576,078
Leggett & Platt, Inc.	856,400		17,556,200
Maytag Corp.	241,970		5,908,907
Pulte Homes, Inc.	98,000		6,042,680
Whirlpool Corp.	487,400		31,047,380
			74,256,809
Internet & Catalog Retail - 0.3%
eBay, Inc. (a)	296,600		30,899,788
Leisure Equipment & Products - 0.4%
Mattel, Inc.	1,760,600		33,310,552
Media - 6.7%
AOL Time Warner, Inc. (a)	7,776,900		125,130,321
Comcast Corp.:
Class A (a)	643,124		19,409,482
Class A (special) (a)	1,843,900		53,159,637
Cox Communications, Inc. Class A (a)	1,319,700		42,098,430
E.W. Scripps Co. Class A	495,500		43,960,760
Fox Entertainment Group, Inc. Class A (a)	1,772,500		51,012,550
General Motors Corp. Class H (a)	3,571,700		45,753,477
Interpublic Group of Companies, Inc.	1,705,600		22,820,928
Lamar Advertising Co. Class A (a)	848,700		29,882,727
Pixar (a)	450,000		27,378,000
Scholastic Corp. (a)	308,015		9,172,687
Tribune Co.	544,500		26,299,350
Univision Communications, Inc. Class A (a)	1,220,600		37,106,240
Viacom, Inc. Class B (non-vtg.) (a)	1,081,430		47,215,234
Walt Disney Co.	1,344,200		26,547,950
			606,947,773
Multiline Retail - 0.3%
Saks, Inc. (a)	2,452,800		23,792,160
Specialty Retail - 3.9%
AutoZone, Inc. (a)	103,200		7,840,104
Best Buy Co., Inc. (a)	1,529,000		67,153,680
Borders Group, Inc. (a)	556,400		9,798,204
Gap, Inc.	1,299,500		24,378,620
Home Depot, Inc.	3,996,400		132,360,768
Limited Brands, Inc.	1,965,700		30,468,350
Lowe's Companies, Inc.	1,333,430		57,270,819
Weight Watchers International, Inc. (a)	472,700		21,503,123
			350,773,668
TOTAL CONSUMER DISCRETIONARY			1,164,493,029

	Shares		Value (Note 1)
CONSUMER STAPLES - 5.8%
Beverages - 1.4%
PepsiCo, Inc.	945,500		$ 42,074,750
The Coca-Cola Co.	1,858,300		86,243,703
			128,318,453
Food & Staples Retailing - 3.1%
Sysco Corp.	1,600,100		48,067,004
Wal-Mart Stores, Inc.	4,238,800		227,496,396
			275,563,400
Household Products - 0.8%
Procter & Gamble Co.	784,860		69,993,815
Personal Products - 0.5%
Gillette Co.	1,370,100		43,651,386
TOTAL CONSUMER STAPLES			517,527,054
ENERGY - 5.4%
Energy Equipment & Services - 4.6%
Baker Hughes, Inc.	1,181,770		39,672,019
BJ Services Co. (a)	1,200,360		44,845,450
Cooper Cameron Corp. (a)	720,600		36,303,828
ENSCO International, Inc.	784,700		21,108,430
Global Industries Ltd. (a)	2,926,465		14,105,561
Grant Prideco, Inc. (a)	504,400		5,926,700
Nabors Industries Ltd. (a)	594,610		23,516,826
National-Oilwell, Inc. (a)	1,114,600		24,521,200
Noble Corp. (a)	908,400		31,158,120
Schlumberger Ltd. (NY Shares)	807,300		38,403,261
Smith International, Inc. (a)	887,300		32,599,402
Tidewater, Inc.	765,200		22,473,924
Transocean, Inc.	404,400		8,884,668
Varco International, Inc. (a)	1,266,100		24,815,560
Weatherford International Ltd. (a)	1,042,440		43,678,236
			412,013,185
Oil & Gas - 0.8%
Apache Corp.	445,410		28,978,375
Burlington Resources, Inc.	272,800		14,750,296
YUKOS Corp. sponsored ADR	458,625		25,522,481
			69,251,152
TOTAL ENERGY			481,264,337
FINANCIALS - 12.0%
Capital Markets - 2.3%
Bank of New York Co., Inc.	957,300		27,522,375
Charles Schwab Corp.	4,444,750		44,847,528
Goldman Sachs Group, Inc.	508,000		42,545,000
Merrill Lynch & Co., Inc.	964,600		45,027,528
Morgan Stanley	853,300		36,478,575
Nomura Holdings, Inc.	983,000		12,516,434
			208,937,440
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Commercial Banks - 2.3%
Bank of America Corp.	622,500		$ 49,196,175
Bank One Corp.	2,207,690		82,081,914
Fifth Third Bancorp	1,026,300		58,848,042
UCBH Holdings, Inc.	673,700		19,321,716
			209,447,847
Consumer Finance - 1.9%
American Express Co.	1,210,900		50,627,729
MBNA Corp.	3,775,730		78,686,213
SLM Corp.	1,086,300		42,550,371
			171,864,313
Diversified Financial Services - 0.8%
Citigroup, Inc.	1,634,710		69,965,588
Insurance - 3.4%
ACE Ltd.	1,202,200		41,223,438
AFLAC, Inc.	1,573,720		48,391,890
American International Group, Inc.	3,373,366		186,142,336
Travelers Property Casualty Corp.:
Class A	145,447		2,312,607
Class B	1,867,830		29,455,679
			307,525,950
Real Estate - 0.0%
Corrections Corp. of America (a)	7,453		188,784
Thrifts & Mortgage Finance - 1.3%
Fannie Mae	1,654,600		111,586,224
TOTAL FINANCIALS			1,079,516,146
HEALTH CARE - 22.4%
Biotechnology - 3.5%
Amgen, Inc. (a)	2,114,200		140,467,448
Biogen, Inc. (a)	16,600		630,800
Cephalon, Inc. (a)	567,700		23,366,532
CSL Ltd.	917,900		7,388,106
Genentech, Inc. (a)	626,400		45,175,968
Geneprot, Inc. (d)	826,000		2,891,000
Genzyme Corp. - General Division (a)	501,500		20,962,700
IDEC Pharmaceuticals Corp. (a)	725,900		24,680,600
ImClone Systems, Inc. (a)	653,447		20,661,994
MedImmune, Inc. (a)	602,600		21,916,562
Tanox, Inc. (a)	523,600		8,403,780
			316,545,490
Health Care Equipment & Supplies - 3.1%
Alcon, Inc.	1,302,700		59,533,390
Boston Scientific Corp. (a)	1,117,700		68,291,470
Medtronic, Inc.	1,929,700		92,567,709
Orthologic Corp. (a)	3,336		15,312
St. Jude Medical, Inc. (a)	1,019,400		58,615,500
			279,023,381

	Shares		Value (Note 1)
Health Care Providers & Services - 0.6%
McKesson Corp.	1,209,600		$ 43,231,104
WebMD Corp. (a)	884,060		9,574,370
			52,805,474
Pharmaceuticals - 15.2%
Abbott Laboratories	2,938,100		128,571,256
Barr Laboratories, Inc. (a)	779,550		51,060,525
Eli Lilly & Co.	645,770		44,538,757
Johnson & Johnson	5,467,620		282,675,954
Merck & Co., Inc.	3,810,860		230,747,573
Pfizer, Inc.	11,090,325		378,734,594
Schering-Plough Corp.	3,851,900		71,645,340
Teva Pharmaceutical Industries Ltd. sponsored ADR	708,577		40,339,289
Wyeth	3,049,000		138,881,950
			1,367,195,238
TOTAL HEALTH CARE			2,015,569,583
INDUSTRIALS - 5.3%
Aerospace & Defense - 1.1%
Goodrich Corp.	1,061,300		22,287,300
Lockheed Martin Corp.	786,220		37,400,485
Northrop Grumman Corp.	465,200		40,142,108
			99,829,893
Airlines - 0.6%
Delta Air Lines, Inc.	2,001,800		29,386,424
Northwest Airlines Corp. (a)	2,108,986		23,810,452
			53,196,876
Commercial Services & Supplies - 1.1%
ChoicePoint, Inc. (a)	242,300		8,364,196
Corinthian Colleges, Inc. (a)	462,600		22,468,482
Monster Worldwide, Inc.	1,282,889		25,311,400
Robert Half International, Inc. (a)	2,212,700		41,908,538
			98,052,616
Industrial Conglomerates - 2.4%
3M Co.	201,100		25,937,878
General Electric Co.	3,635,440		104,264,419
Tyco International Ltd.	4,780,300		90,730,094
			220,932,391
Machinery - 0.1%
Joy Global, Inc. (a)	385,600		5,695,312
TOTAL INDUSTRIALS			477,707,088
INFORMATION TECHNOLOGY - 33.2%
Communications Equipment - 4.6%
3Com Corp. (a)	2,736,300		12,805,884
Advanced Fibre Communications, Inc. (a)	991,100		16,125,197
Cisco Systems, Inc. (a)	5,544,920		92,544,715
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Communications Equipment - continued
Emulex Corp. (a)	149,500		$ 3,404,115
Foundry Networks, Inc. (a)	1,539,100		22,163,040
Harris Corp.	1,192,900		35,846,645
Juniper Networks, Inc. (a)	2,984,900		36,923,213
Motorola, Inc.	5,924,050		55,863,792
Nortel Networks Corp. (a)	17,706,000		47,806,200
QUALCOMM, Inc.	668,800		23,909,600
Scientific-Atlanta, Inc.	958,300		22,845,872
Telefonaktiebolaget LM Ericsson ADR (a)	4,073,400		43,300,242
			413,538,515
Computers & Peripherals - 4.0%
Apple Computer, Inc. (a)	1,614,100		30,861,592
ATI Technologies, Inc. (a)	1,222,400		12,153,257
Dell Computer Corp. (a)	5,549,500		177,362,020
EMC Corp. (a)	919,300		9,625,071
International Business Machines Corp.	316,570		26,117,025
Lexmark International, Inc. Class A (a)	702,400		49,708,848
Network Appliance, Inc. (a)	1,440,300		23,347,263
Sun Microsystems, Inc. (a)	6,957,500		32,004,500
			361,179,576
Electronic Equipment & Instruments - 2.1%
Agilent Technologies, Inc. (a)	3,235,860		63,261,063
Amphenol Corp. Class A (a)	511,691		23,957,373
Celestica, Inc. (sub. vtg.) (a)	1,222,530		19,157,022
Flextronics International Ltd. (a)	856,400		8,897,996
National Instruments Corp. (a)	472,451		17,849,199
Sanmina-SCI Corp. (a)	4,656,200		29,380,622
Waters Corp. (a)	832,300		24,244,899
			186,748,174
Internet Software & Services - 1.1%
EarthLink, Inc. (a)	1,541,175		12,159,871
Overture Services, Inc. (a)	1,500,637		27,206,549
Yahoo!, Inc. (a)	1,922,788		62,990,535
			102,356,955
IT Services - 1.8%
Concord EFS, Inc. (a)	589,900		8,683,328
First Data Corp.	2,202,400		91,267,456
Paychex, Inc.	2,171,900		63,658,389
			163,609,173
Semiconductors & Semiconductor Equipment - 12.5%
Advanced Micro Devices, Inc. (a)	3,202,400		20,527,384
Agere Systems, Inc.:
Class A (a)	10,101,845		23,537,299
Class B (a)	11,223,709		25,814,531
Altera Corp. (a)	1,352,100		22,174,440
Analog Devices, Inc. (a)	1,550,700		53,995,374
Applied Materials, Inc. (a)	4,140,600		65,669,916
ASML Holding NV (NY Shares) (a)	7,007,587		66,992,532

	Shares		Value (Note 1)
Atmel Corp. (a)	7,940,400		$ 20,089,212
Broadcom Corp. Class A (a)	2,142,700		53,374,657
Cabot Microelectronics Corp. (a)	183,200		9,246,104
Chartered Semiconductor Manufacturing Ltd. ADR (a)	1,653,600		8,516,040
Cypress Semiconductor Corp. (a)	1,827,700		21,932,400
Integrated Circuit Systems, Inc. (a)	410,800		12,911,444
Integrated Device Technology, Inc. (a)	2,430,100		26,852,605
Intel Corp.	7,907,700		164,353,637
Intersil Corp. Class A (a)	1,431,301		38,086,920
KLA-Tencor Corp. (a)	953,920		44,347,741
Lam Research Corp. (a)	2,537,800		46,213,338
LSI Logic Corp. (a)	2,769,000		19,604,520
Marvell Technology Group Ltd. (a)	1,155,400		39,711,098
Micron Technology, Inc. (a)	4,519,400		52,560,622
National Semiconductor Corp. (a)	582,200		11,480,984
NVIDIA Corp. (a)	1,970,283		45,336,212
QLogic Corp. (a)	524,437		25,346,040
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	5,423,232		54,666,179
Teradyne, Inc. (a)	2,072,400		35,873,244
Texas Instruments, Inc.	4,084,650		71,889,840
United Microelectronics Corp. sponsored ADR (a)	5,672,400		21,271,500
Xilinx, Inc. (a)	739,500		18,716,745
			1,121,092,558
Software - 7.1%
Adobe Systems, Inc.	1,295,600		41,549,892
Business Objects SA sponsored ADR (a)	396,100		8,694,395
Cadence Design Systems, Inc. (a)	1,955,800		23,586,948
Compuware Corp. (a)	3,338,056		19,260,583
Electronic Arts, Inc. (a)	913,884		67,618,277
Hyperion Solutions Corp. (a)	287,607		9,709,612
Microsoft Corp.	13,295,677		340,502,288
Nintendo Co. Ltd.	139,900		10,204,086
Synopsys, Inc. (a)	662,478		40,974,264
Take-Two Interactive Software, Inc. (a)	1,168,500		33,115,290
VERITAS Software Corp. (a)	1,482,331		42,498,430
			637,714,065
TOTAL INFORMATION TECHNOLOGY			2,986,239,016
MATERIALS - 1.8%
Chemicals - 0.7%
Dow Chemical Co.	846,900		26,220,024
Lyondell Chemical Co.	3,010,600		40,733,418
			66,953,442
Construction Materials - 0.3%
Florida Rock Industries, Inc.	582,600		24,049,728
Containers & Packaging - 0.2%
Owens-Illinois, Inc. (a)	1,034,200		14,240,934
Common Stocks - continued
	Shares		Value (Note 1)
MATERIALS - continued
Metals & Mining - 0.6%
Arch Coal, Inc.	949,500		$ 21,819,510
CONSOL Energy, Inc.	384,500		8,743,530
Massey Energy Co.	1,174,400		15,443,360
Peabody Energy Corp.	264,200		8,874,478
			54,880,878
TOTAL MATERIALS			160,124,982
TELECOMMUNICATION SERVICES - 0.7%
Wireless Telecommunication Services - 0.7%
Nextel Communications, Inc. Class A (a)	1,386,500		25,067,920
Vodafone Group PLC sponsored ADR	1,826,400		35,888,760
			60,956,680
TOTAL COMMON STOCKS (Cost $7,536,439,726)		8,943,397,915
Convertible Preferred Stocks - 0.0%

INFORMATION TECHNOLOGY - 0.0%
Communications Equipment - 0.0%
Chorum Technologies Series E (d)	88,646		88,646
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $1,528,257)		88,646

Convertible Bonds - 0.0%
	Principal Amount
INFORMATION TECHNOLOGY - 0.0%
Semiconductors & Semiconductor Equipment - 0.0%
Micron Technology, Inc. 2.5% 2/1/10 (c)	$ 1,523,000		1,827,600
TOTAL CONVERTIBLE BONDS (Cost $1,523,000)		1,827,600

Money Market Funds - 1.3%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	105,859,455		105,859,455
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	13,809,300		13,809,300
TOTAL MONEY MARKET FUNDS (Cost $119,668,755)		119,668,755
TOTAL INVESTMENT PORTFOLIO - 100.8% (Cost $7,659,159,738)			9,064,982,916
NET OTHER ASSETS - (0.8)%			(73,873,673)
NET ASSETS - 100%		$ 8,991,109,243

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost
Chorum Technologies Series E	9/19/00	$ 1,528,257
Geneprot, Inc.	7/7/00	$ 4,543,000

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $2,452,653,342 and $2,679,967,996, respectively.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $4,287,791,000 of which $2,090,079,000 and $2,197,712,000 will expire on December 31, 2009 and 2010, respectively.

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

Growth Portfolio

Fidelity Variable Insurance Products: Growth Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $13,280,873) (cost $7,659,159,738) - See accompanying schedule		$ 9,064,982,916
Foreign currency held at value (cost $160,261)		160,140
Receivable for investments sold		6,892,466
Receivable for fund shares sold		5,213,511
Dividends receivable		6,189,174
Interest receivable		56,806
Redemption fees receivable		10
Other receivables		1,148,940
Total assets		9,084,643,963

Liabilities
Payable for investments purchased	$ 53,159,380
Payable for fund shares redeemed	21,581,186
Accrued management fee	4,435,200
Distribution fees payable	173,693
Other payables and accrued expenses	375,961
Collateral on securities loaned, at value	13,809,300
Total liabilities		93,534,720

Net Assets		$ 8,991,109,243
Net Assets consist of:
Paid in capital		$ 12,320,315,028
Undistributed net investment income		12,944,578
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(4,747,970,767)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		1,405,820,404
Net Assets		$ 8,991,109,243

Initial Class: Net Asset Value, offering price and redemption price per share ($7,444,464,668 ÷ 280,856,552 shares)		$ 26.51

Service Class: Net Asset Value, offering price and redemption price per share ($1,184,483,129 ÷ 44,846,953 shares)		$ 26.41

Service Class 2: Net Asset Value, offering price and redemption price per share ($361,651,753 ÷ 13,770,302 shares)		$ 26.26

Service Class 2R: Net Asset Value, offering price and redemption price per share ($509,693 ÷ 19,453 shares)		$ 26.20

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 39,738,324
Interest		714,237
Security lending		130,432
Total income		40,582,993

Expenses
Management fee	$ 24,297,641
Transfer agent fees	2,859,164
Distribution fees	889,189
Accounting and security lending fees	408,147
Non-interested trustees' compensation	15,819
Depreciation in deferred trustee compensation account	(36,778)
Custodian fees and expenses	65,677
Audit	46,742
Legal	14,849
Interest	10,486
Miscellaneous	161,416
Total expenses before reductions	28,732,352
Expense reductions	(1,413,315)	27,319,037
Net investment income (loss)		13,263,956
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(313,113,971)
Foreign currency transactions	(56,481)
Total net realized gain (loss)		(313,170,452)
Change in net unrealized appreciation (depreciation) on: Investment securities	1,361,132,642
Assets and liabilities in foreign currencies	(619)
Total change in net unrealized appreciation (depreciation)		1,361,132,023
Net gain (loss)		1,047,961,571
Net increase (decrease) in net assets resulting from operations		$ 1,061,225,527

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

Semiannual Report

Fidelity Variable Insurance Products: Growth Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 13,263,956	$ 24,471,733
Net realized gain (loss)	(313,170,452)	(2,263,336,460)
Change in net unrealized appreciation (depreciation)	1,361,132,023	(1,669,661,651)
Net increase (decrease) in net assets resulting from operations	1,061,225,527	(3,908,526,378)
Distributions to shareholders from net investment income	(23,104,405)	(25,839,894)
Share transactions - net increase (decrease)	(360,651,094)	(1,057,887,768)
Redemption fees	435	134
Total increase (decrease) in net assets	677,470,463	(4,992,253,906)
Net Assets
Beginning of period	8,313,638,780	13,305,892,686
End of period (including undistributed net investment income of $12,944,578 and undistributed net investment income of $22,669,639, respectively)	$ 8,991,109,243	$ 8,313,638,780

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
Shares Sold	12,260,756	4,550,069	5,828,400	14,693
Reinvested	941,499	102,591	14,708	31
Redeemed	(31,718,625)	(5,161,367)	(2,350,846)	(4,340)
Net increase (decrease)	(18,516,370)	(508,707)	3,492,262	10,384
Dollars Sold	$ 297,648,018	$ 110,622,660	$ 140,187,600	$ 371,400
Reinvested	20,552,932	2,232,378	318,424	671
Redeemed	(755,505,403)	(121,473,153)	(55,502,416)	(104,205)
Net increase (decrease)	$ (437,304,453)	$ (8,618,115)	$ 85,003,608	$ 267,866
Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
Shares Sold	27,701,250	7,846,255	8,720,137	9,679
Reinvested	745,326	62,377	7,951	-
Redeemed	(69,998,416)	(12,009,200)	(4,193,267)	(610)
Net increase (decrease)	(41,551,840)	(4,100,568)	4,534,821	9,069
Dollars Sold	$ 783,515,852	$ 225,005,883	$ 237,415,474	$ 256,038
Reinvested	23,619,367	1,970,483	250,044	-
Redeemed	(1,899,343,201)	(321,589,917)	(108,973,421)	(14,370)
Net increase (decrease)	$ (1,092,207,982)	$ (94,613,551)	$ 128,692,097	$ 241,668
Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
From net investment income	$ 20,552,932	$ 2,232,378	$ 318,424	$ 671
From net realized gain	-	-	-	-
Total	$ 20,552,932	$ 2,232,378	$ 318,424	$ 671
	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
From net investment income	$ 23,619,367	$ 1,970,483	$ 250,044	$ -
From net realized gain	-	-	-	-
Total	$ 23,619,367	$ 1,970,483	$ 250,044	$ -

^AFor the period April 24, 2002 (commencement of sale of shares) to December 31, 2002.

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

Semiannual Report

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 23.44	$ 33.61	$ 43.66	$ 54.93	$ 44.87	$ 37.10
Income from Investment Operations
Net investment income (loss) ^E	.04	.07	.07	.03	.07	.08
Net realized and unrealized gain (loss)	3.10	(10.17)	(7.27)	(5.27)	15.10	12.85
Total from investment operations	3.14	(10.10)	(7.20)	(5.24)	15.17	12.93
Distributions from net investment income	(.07)	(.07)	(.03)	(.06)	(.08)	(.19)
Distributions from net realized gain	-	-	(2.82)	(5.97)	(5.03)	(4.97)
Total distributions	(.07)	(.07)	(2.85)	(6.03)	(5.11)	(5.16)
Redemption fees added to paid in capital^{E, G}	-	-	-	-	-	-
Net asset value, end of period	$ 26.51	$ 23.44	$ 33.61	$ 43.66	$ 54.93	$ 44.87
Total Return ^{B, C, D}	13.46%	(30.10)%	(17.67)%	(10.96)%	37.44%	39.49%
Ratios to Average Net Assets ^F
Expenses before expense reductions	.67% ^A	.67%	.68%	.65%	.66%	.68%
Expenses net of voluntary waivers, if any	.67% ^A	.67%	.68%	.65%	.66%	.68%
Expenses net of all reductions	.63% ^A	.61%	.65%	.64%	.65%	.66%
Net investment income (loss)	.34% ^A	.25%	.19%	.07%	.14%	.21%
Supplemental Data
Net assets, end of period (000 omitted)	$ 7,444,465	$ 7,016,147	$ 11,458,659	$ 15,517,271	$ 17,142,411	$ 11,243,824
Portfolio turnover rate	60% ^A	90%	105%	103%	84%	123%

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 23.34	$ 33.48	$ 43.51	$ 54.80	$ 44.82	$ 37.09
Income from Investment Operations
Net investment income (loss) ^E	.03	.04	.03	(.02)	.02	.06
Net realized and unrealized gain (loss)	3.09	(10.14)	(7.24)	(5.25)	15.07	12.83
Total from investment operations	3.12	(10.10)	(7.21)	(5.27)	15.09	12.89
Distributions from net investment income	(.05)	(.04)	-	(.05)	(.08)	(.19)
Distributions from net realized gain	-	-	(2.82)	(5.97)	(5.03)	(4.97)
Total distributions	(.05)	(.04)	(2.82)	(6.02)	(5.11)	(5.16)
Redemption fees added to paid in capital^{E, G}	-	-	-	-	-	-
Net asset value, end of period	$ 26.41	$ 23.34	$ 33.48	$ 43.51	$ 54.80	$ 44.82
Total Return ^{B, C, D}	13.41%	(30.20)%	(17.74)%	(11.05)%	37.29%	39.38%
Ratios to Average Net Assets ^F
Expenses before expense reductions	.77% ^A	.77%	.78%	.76%	.77%	.80%
Expenses net of voluntary waivers, if any	.77% ^A	.77%	.78%	.76%	.77%	.80%
Expenses net of all reductions	.73% ^A	.71%	.75%	.74%	.75%	.75%
Net investment income (loss)	.24% ^A	.15%	.09%	(.04)%	.04%	.15%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,184,483	$ 1,058,738	$ 1,655,758	$ 1,847,051	$ 916,330	$ 136,142
Portfolio turnover rate	60% ^A	90%	105%	103%	84%	123%

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000 ^F
Selected Per-Share Data
Net asset value, beginning of period	$ 23.21	$ 33.34	$ 43.43	$ 53.40
Income from Investment Operations
Net investment income (loss) ^E	.01	- ^H	(.02)	(.09)
Net realized and unrealized gain (loss)	3.07	(10.09)	(7.22)	(3.86)
Total from investment operations	3.08	(10.09)	(7.24)	(3.95)
Distributions from net investment income	(.03)	(.04)	(.03)	(.05)
Distributions from net realized gain	-	-	(2.82)	(5.97)
Total distributions	(.03)	(.04)	(2.85)	(6.02)
Redemption fees added to paid in capital^{E, H}	-	-	-	-
Net asset value, end of period	$ 26.26	$ 23.21	$ 33.34	$ 43.43
Total Return ^{B, C, D}	13.30%	(30.30)%	(17.87)%	(8.88)%
Ratios to Average Net Assets ^G
Expenses before expense reductions	.92% ^A	.93%	.93%	.91% ^A
Expenses net of voluntary waivers, if any	.92% ^A	.93%	.93%	.91% ^A
Expenses net of all reductions	.89% ^A	.87%	.90%	.90% ^A
Net investment income (loss)	.08% ^A	(.01)%	(.06)%	(.19)% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 361,652	$ 238,543	$ 191,475	$ 57,095
Portfolio turnover rate	60% ^A	90%	105%	103%

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002 ^F
Selected Per-Share Data
Net asset value, beginning of period	$ 23.20	$ 31.05
Income from Investment Operations
Net investment income (loss) ^E	.01	(.01)
Net realized and unrealized gain (loss)	3.06	(7.84)
Total from investment operations	3.07	(7.85)
Distributions from net investment income	(.07)	-
Redemption fees added to paid in capital^{E, H}	-	-
Net asset value, end of period	$ 26.20	$ 23.20
Total Return ^{B, C, D}	13.30%	(25.28)%
Ratios to Average Net Assets ^G
Expenses before expense reductions	.93% ^A	.96% ^A
Expenses net of voluntary waivers, if any	.93% ^A	.96% ^A
Expenses net of all reductions	.89% ^A	.90% ^A
Net investment income (loss)	.08% ^A	(.03)% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 510	$ 210
Portfolio turnover rate	60% ^A	90%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFor the period April 24, 2002 (commencement of sale of shares) to December 31, 2002. ^GExpense 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 any voluntary waivers reflects 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. ^HAmount represents less than $.01 per-share.

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

Semiannual Report

Fidelity Variable Insurance Products: High Income Portfolio

Investment Summary

Top Five Holdings as of June 30, 2003
(by issuer, excluding cash equivalents)	% of fund's net assets
Nextel Communications, Inc.	3.2
Qwest Services Corp.	2.9
The Coastal Corp.	2.7
Williams Companies, Inc.	2.4
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.	2.2
	13.4
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Energy	13.1
Telecommunications	10.6
Cable TV	9.4
Electric Utilities	7.3
Healthcare	5.1

Quality Diversification (% of fund's net assets)
as of June 30, 2003

(% of fund's net assets)

	AAA,AA,A	0.0%
	BBB	2.5%
	BB	23.6%
	B	49.1%
	CCC,CC,C	14.8%
	D	0.2%
	Not Rated	2.3%
	Equities	4.5%
	Short-Term Investments and Net Other Assets	3.0%

We have used ratings from Moody's Investors Services, Inc. Where Moody's ratings are not available, we have used S&P ® ratings.

Semiannual Report

Fidelity Variable Insurance Products: High Income Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 91.0%
	Principal Amount		Value (Note 1)
Convertible Bonds - 0.9%
Cable TV - 0.2%
EchoStar Communications Corp. 4.875% 1/1/07 (e)	$ 3,425,000		$ 3,442,125
Healthcare - 0.6%
Total Renal Care Holdings:
7% 5/15/09 (e)	1,370,000		1,428,225
7% 5/15/09	9,030,000		9,413,775
			10,842,000
Technology - 0.1%
Atmel Corp. 0% 5/23/21	5,000,000		1,881,000
Telecommunications - 0.0%
Millicom International Cellular SA 2% 6/1/06 pay-in-kind	347,000		780,750
TOTAL CONVERTIBLE BONDS			16,945,875
Nonconvertible Bonds - 90.1%
Aerospace - 1.6%
Alliant Techsystems, Inc. 8.5% 5/15/11	9,585,000		10,471,613
BE Aerospace, Inc.:
8% 3/1/08	3,325,000		2,593,500
8.875% 5/1/11	6,465,000		5,042,700
9.5% 11/1/08	4,220,000		3,376,000
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	960,000		1,036,800
Transdigm, Inc. 10.375% 12/1/08	4,105,000		4,433,400
Vought Aircraft Industries, Inc. 8% 7/15/11 (e)	3,320,000		3,353,200
			30,307,213
Air Transportation - 2.1%
American Airlines, Inc. pass thru trust certificates 7.8% 4/1/08	1,480,000		1,036,000
Continental Airlines, Inc. 8% 12/15/05	3,010,000		2,693,950
Continental Airlines, Inc. pass thru trust certificates:
6.541% 9/15/09	557,623		468,404
6.748% 9/15/18	380,458		289,148
6.795% 8/2/18	2,393,877		1,867,224
6.8% 7/2/07	376,464		323,759
6.9% 1/2/17	3,413,867		2,594,539
8.312% 10/2/12	2,424,869		1,915,647
8.321% 11/1/06	240,000		201,600
8.388% 5/1/22	194,539		151,740
Delta Air Lines, Inc.:
equipment trust certificates 8.54% 1/2/07	748,768		584,039
7.9% 12/15/09	710,000		560,900
8.3% 12/15/29	10,905,000		7,797,075

	Principal Amount		Value (Note 1)
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	$ 615,000		$ 516,600
7.57% 11/18/10	750,000		771,422
7.711% 9/18/11	680,000		571,200
7.779% 11/18/05	4,055,000		3,487,300
7.92% 5/18/12	5,380,000		4,647,231
10.06% 1/2/16	1,260,000		982,800
Northwest Airlines, Inc.:
7.875% 3/15/08	1,240,000		954,800
8.875% 6/1/06	1,180,000		955,800
9.875% 3/15/07	505,000		398,950
Northwest Airlines, Inc. pass thru trust certificates:
6.81% 2/1/20	1,475,582		1,277,190
7.248% 7/2/14	2,150,838		1,290,503
7.575% 3/1/19	1,185,127		1,196,978
7.691% 4/1/17	233,647		184,581
7.95% 9/1/16	205,390		164,312
8.304% 9/1/10	1,853,079		1,482,463
NWA Trust 10.23% 6/21/14	1,390,708		1,112,566
U.S. Airways pass thru trust certificates 6.85% 7/30/19	1,114,981		1,048,082
			41,526,803
Automotive - 3.1%
ArvinMeritor, Inc. 8.75% 3/1/12	8,695,000		9,651,450
Cummins, Inc. 9.5% 12/1/10 (e)	1,710,000		1,923,750
Dana Corp.:
9% 8/15/11	2,515,000		2,703,625
10.125% 3/15/10	9,760,000		10,736,000
Lear Corp.:
7.96% 5/15/05	920,000		989,000
8.11% 5/15/09	8,075,000		9,245,875
Stoneridge, Inc. 11.5% 5/1/12	160,000		179,200
TRW Automotive Acquisition Corp.:
9.375% 2/15/13 (e)	6,280,000		6,829,500
11% 2/15/13 (e)	14,305,000		15,663,975
United Components, Inc. 9.375% 6/15/13 (e)	1,410,000		1,452,300
			59,374,675
Broadcasting - 1.5%
Entercom Radio LLC/Entercom Capital, Inc. 7.625% 3/1/14	8,125,000		8,896,875
Radio One, Inc. 8.875% 7/1/11	15,400,000		17,055,500
Susquehanna Media Co. 7.375% 4/15/13	3,320,000		3,502,600
			29,454,975
Building Materials - 0.9%
American Standard, Inc. 7.375% 2/1/08	1,180,000		1,303,900
FIMEP SA 10.5% 2/15/13 (e)	12,815,000		14,352,800
Jacuzzi Brands, Inc. 9.625% 7/1/10 (e)(h)	1,500,000		1,500,000
			17,156,700
Cable TV - 7.6%
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.:
8.25% 4/1/07	7,000,000		5,460,000
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Cable TV - continued
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.: - continued
8.625% 4/1/09	$ 12,120,000		$ 8,847,600
9.625% 11/15/09	7,790,000		5,725,650
10% 4/1/09	6,775,000		5,216,750
10% 5/15/11	16,255,000		11,866,150
10.75% 10/1/09	2,440,000		1,903,200
11.125% 1/15/11	5,670,000		4,422,600
CSC Holdings, Inc.:
7.625% 4/1/11	6,970,000		7,039,700
9.875% 2/15/13	5,260,000		5,417,800
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375% 3/15/13 (e)	17,310,000		19,257,375
EchoStar DBS Corp.:
9.125% 1/15/09	6,400,000		7,152,000
9.375% 2/1/09	3,695,000		3,944,413
10.375% 10/1/07	5,495,000		6,085,713
NTL, Inc. 19% 1/1/10 (e)	9,425,000		9,519,250
PanAmSat Corp. 8.5% 2/1/12	7,408,000		8,037,680
Pegasus Satellite Communications, Inc.:
0% 3/1/07 (d)	8,665,000		7,408,575
11.25% 1/15/10 (e)	1,410,000		1,325,400
Rogers Cable, Inc.:
6.25% 6/15/13 (e)	4,490,000		4,456,325
yankee 7.875% 5/1/12	6,000,000		6,390,000
Telewest Communications PLC yankee:
0% 4/15/09 (c)(d)	2,885,000		879,925
0% 2/1/10 (c)(d)	5,165,000		1,446,200
9.875% 2/1/10 (c)	4,080,000		1,428,000
11.25% 11/1/08 (c)	3,900,000		1,413,750
Telewest PLC:
11% 10/1/07 (c)	20,390,000		7,442,350
yankee 9.625% 10/1/06 (c)	16,690,000		6,008,400
			148,094,806
Capital Goods - 1.4%
AGCO Corp. 9.5% 5/1/08	1,020,000		1,122,000
Danka Business Systems PLC 11% 6/15/10 (e)	6,740,000		6,638,900
Kansas City Southern Railway Co.:
7.5% 6/15/09	10,260,000		10,516,500
9.5% 10/1/08	590,000		637,200
Tyco International Group SA yankee:
6.125% 11/1/08	195,000		203,775
6.375% 10/15/11	7,810,000		8,239,550
			27,357,925
Chemicals - 2.5%
Avecia Group PLC 11% 7/1/09	13,970,000		12,573,000
Geon Co. 6.875% 12/15/05	570,000		530,100
Huntsman Advanced Materials LLC:
9.1% 7/15/08 (e)(f)	2,970,000		2,999,700

	Principal Amount		Value (Note 1)
11% 7/15/10 (e)	$ 2,220,000		$ 2,308,800
Lyondell Chemical Co.:
9.5% 12/15/08 (e)	2,880,000		2,721,600
9.875% 5/1/07	1,775,000		1,730,625
OMNOVA Solutions, Inc. 11.25% 6/1/10 (e)	11,950,000		13,025,500
PolyOne Corp.:
8.875% 5/1/12	2,695,000		2,398,550
10.625% 5/15/10 (e)	11,310,000		10,970,700
			49,258,575
Consumer Products - 0.9%
Revlon Consumer Products Corp. 12% 12/1/05	9,640,000		9,399,000
The Hockey Co. 11.25% 4/15/09	7,215,000		8,008,650
			17,407,650
Containers - 3.5%
BWAY Corp. 10% 10/15/10 (e)	5,000,000		5,100,000
Crown Cork & Seal, Inc.:
7.375% 12/15/26	5,414,000		4,141,710
8% 4/15/23	7,305,000		5,844,000
Crown European Holdings SA 9.5% 3/1/11 (e)	6,665,000		7,198,200
Owens-Brockway Glass Container, Inc.:
7.75% 5/15/11 (e)	2,720,000		2,862,800
8.25% 5/15/13 (e)	4,680,000		4,914,000
8.75% 11/15/12	9,510,000		10,318,350
8.875% 2/15/09	10,655,000		11,534,038
Owens-Illinois, Inc.:
7.35% 5/15/08	440,000		433,400
7.5% 5/15/10	640,000		627,200
7.8% 5/15/18	480,000		451,200
8.1% 5/15/07	6,000,000		6,150,000
Sealed Air Corp.:
6.95% 5/15/09 (e)	5,355,000		5,949,780
8.75% 7/1/08 (e)	1,305,000		1,550,340
			67,075,018
Diversified Media - 2.4%
Corus Entertainment, Inc. 8.75% 3/1/12	7,140,000		7,657,650
Entravision Communications Corp. 8.125% 3/15/09	5,955,000		6,208,088
Lamar Media Corp. 7.25% 1/1/13	1,650,000		1,740,750
PEI Holdings, Inc. 11% 3/15/10 (e)	10,505,000		11,608,025
Penton Media, Inc. 11.875% 10/1/07	1,915,000		1,819,250
Vivendi Universal SA 9.25% 4/15/10 (e)	16,000,000		18,080,000
			47,113,763
Electric Utilities - 6.8%
AES Corp.:
8.75% 6/15/08	583,000		574,255
8.75% 5/15/13 (e)	7,830,000		8,143,200
8.875% 2/15/11	4,791,000		4,671,225
9% 5/15/15 (e)	5,860,000		6,109,050
9.375% 9/15/10	1,348,000		1,354,740
9.5% 6/1/09	1,499,000		1,506,495
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Electric Utilities - continued
AES Drax Holdings Ltd. 10.41% 12/31/20	$ 9,140,000		$ 5,758,200
CMS Energy Corp.:
7.5% 1/15/09	6,745,000		6,643,825
8.5% 4/15/11	4,645,000		4,807,575
8.9% 7/15/08	5,165,000		5,371,600
9.875% 10/15/07	8,990,000		9,574,350
Edison International 6.875% 9/15/04	4,325,000		4,368,250
Illinois Power Co. 11.5% 12/15/10 (e)	9,365,000		10,676,100
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10 (e)	890,000		916,700
Nevada Power Co. 10.875% 10/15/09	1,255,000		1,411,875
Pacific Gas & Electric Co.:
6.25% 8/1/03	3,625,000		3,625,000
6.25% 3/1/04	2,875,000		2,875,000
8.375% 5/1/25	1,390,000		1,424,750
10% 11/1/05 (e)(f)	3,790,000		3,903,700
PG&E Corp. 6.875% 7/15/08 (e)	3,610,000		3,745,375
Reliant Energy Resources Corp. 7.75% 2/15/11	1,725,000		1,938,469
Reliant Resources, Inc. 9.25% 7/15/10 (e)	8,080,000		8,120,400
SEMCO Energy, Inc.:
7.125% 5/15/08 (e)	800,000		832,000
7.75% 5/15/13 (e)	930,000		985,800
Sierra Pacific Power Co. 8% 6/1/08	2,615,000		2,693,450
Southern California Edison Co.:
7.125% 7/15/25	330,000		333,300
7.25% 3/1/26	1,020,000		1,032,750
7.625% 1/15/10	4,530,000		4,824,450
8% 2/15/07 (e)	7,340,000		8,074,000
Western Resources, Inc.:
7.875% 5/1/07	7,030,000		7,733,000
9.75% 5/1/07	7,000,000		7,840,000
			131,868,884
Energy - 13.1%
ANR Pipeline, Inc. 8.875% 3/15/10 (e)	1,790,000		1,960,050
Chesapeake Energy Corp.:
7.75% 1/15/15	2,345,000		2,491,563
8.125% 4/1/11	7,000,000		7,525,000
CMS Panhandle Holding Co. 6.5% 7/15/09	3,420,000		3,770,550
DI Industries, Inc. 8.875% 7/1/07	3,720,000		3,836,250
El Paso Corp.:
7% 5/15/11	11,525,000		10,487,750
7.875% 6/15/12 (e)	8,880,000		8,225,100
El Paso Energy Corp.:
6.75% 5/15/09	7,925,000		7,251,375
6.95% 12/15/07	4,980,000		4,656,300
7.375% 12/15/12	955,000		854,725
7.8% 8/1/31	1,420,000		1,171,500

	Principal Amount		Value (Note 1)
8.05% 10/15/30	$ 910,000		$ 787,150
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp.:
8.5% 6/1/10 (e)	3,380,000		3,616,600
8.5% 6/1/11	5,625,000		6,018,750
Encore Acquisition Co. 8.375% 6/15/12	4,325,000		4,627,750
Forest Oil Corp. 8% 12/15/11	3,450,000		3,708,750
Gemstone Investor Ltd./Gemstone Investor, Inc. 7.71% 10/31/04 (e)	1,260,000		1,247,400
Grant Prideco, Inc.:
9% 12/15/09	930,000		1,039,275
9.625% 12/1/07	3,220,000		3,638,600
GulfTerra Energy Partners LP/GulfTerra Energy Finance Corp. 10.625% 12/1/12	1,370,000		1,589,200
Key Energy Services, Inc. 8.375% 3/1/08	1,700,000		1,836,000
Northwest Pipeline Corp.:
6.625% 12/1/07	1,655,000		1,704,650
8.125% 3/1/10	1,680,000		1,814,400
Panhandle Eastern Pipe Line Co.:
7.2% 8/15/24	485,000		494,700
8.25% 4/1/10	1,555,000		1,854,338
Plains Exploration & Production Co. LP 8.75% 7/1/12	7,725,000		8,265,750
SESI LLC 8.875% 5/15/11	390,000		419,250
Southern Natural Gas Co.:
7.35% 2/15/31	8,335,000		8,418,350
8% 3/1/32	165,000		174,900
8.875% 3/15/10 (e)	2,120,000		2,321,400
Teekay Shipping Corp. 8.875% 7/15/11	22,888,000		25,090,970
Tennessee Gas Pipeline Co.:
7% 10/15/28	670,000		637,338
7.5% 4/1/17	325,000		333,938
8.375% 6/15/32	975,000		1,060,313
The Coastal Corp.:
6.2% 5/15/04	3,810,000		3,771,900
6.375% 2/1/09	1,985,000		1,736,875
6.5% 5/15/06	4,430,000		4,142,050
6.5% 6/1/08	7,165,000		6,412,675
6.95% 6/1/28	245,000		194,775
7.5% 8/15/06	20,590,000		19,869,350
7.625% 9/1/08	1,955,000		1,837,700
7.75% 6/15/10	14,424,000		13,450,380
7.75% 10/15/35	1,295,000		1,087,800
Transcontinental Gas Pipe Line Corp.:
6.125% 1/15/05	2,220,000		2,220,000
6.25% 1/15/08	6,310,000		6,278,450
7% 8/15/11	1,740,000		1,774,800
8.875% 7/15/12	1,490,000		1,679,975
Vintage Petroleum, Inc. 8.25% 5/1/12	4,145,000		4,507,688
Williams Companies, Inc.:
6.5% 8/1/06	3,345,000		3,278,100
6.625% 11/15/04	5,080,000		5,080,000
6.75% 1/15/06	4,260,000		4,164,150
7.125% 9/1/11	13,480,000		13,143,000
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Energy - continued
Williams Companies, Inc.: - continued
7.625% 7/15/19	$ 3,810,000		$ 3,695,700
8.125% 3/15/12	6,145,000		6,298,625
8.625% 6/1/10	5,680,000		5,942,700
9.25% 3/15/04	2,825,000		2,895,625
Williams Holdings of Delaware, Inc. 6.25% 2/1/06	8,460,000		8,290,800
			254,683,053
Entertainment/Film - 0.7%
Cinemark USA, Inc. 8.5% 8/1/08	5,515,000		5,694,238
Regal Cinemas Corp. 9.375% 2/1/12	7,620,000		8,420,100
			14,114,338
Environmental - 1.6%
Allied Waste North America, Inc.:
7.875% 1/1/09	2,553,000		2,667,885
8.5% 12/1/08	9,090,000		9,771,750
8.875% 4/1/08	3,080,000		3,334,100
9.25% 9/1/12 (e)	12,965,000		14,326,325
			30,100,060
Food and Drug Retail - 1.7%
Ahold Finance USA, Inc.:
6.25% 5/1/09	11,755,000		10,932,150
8.25% 7/15/10	12,415,000		12,539,150
The Great Atlantic & Pacific Tea Co.:
7.75% 4/15/07	3,170,000		2,963,950
9.125% 12/15/11	6,325,000		5,913,875
			32,349,125
Food/Beverage/Tobacco - 2.0%
Chiquita Brands International, Inc. 10.56% 3/15/09	5,465,000		5,902,200
Corn Products International, Inc.:
8.25% 7/15/07	7,235,000		8,103,200
8.45% 8/15/09	1,055,000		1,189,513
Dean Foods Co.:
6.625% 5/15/09	220,000		234,300
6.9% 10/15/17	4,680,000		4,633,200
8.15% 8/1/07	6,205,000		6,887,550
Del Monte Corp. 8.625% 12/15/12 (e)	2,530,000		2,726,075
Doane Pet Care Co.:
9.75% 5/15/07	5,076,000		4,822,200
10.75% 3/1/10	3,250,000		3,542,500
Michael Foods, Inc. 11.75% 4/1/11	330,000		379,500
			38,420,238
Gaming - 3.7%
Bally Total Fitness Holding Corp. 10.5% 7/15/11 (e)	6,740,000		6,773,700
Chukchansi Economic Development Authority 14.5% 6/15/09 (e)	2,735,000		3,008,500
Herbst Gaming, Inc. 10.75% 9/1/08	1,390,000		1,532,475
MGM MIRAGE 8.5% 9/15/10	2,030,000		2,387,788

	Principal Amount		Value (Note 1)
Mirage Resorts, Inc.:
6.625% 2/1/05	$ 930,000		$ 964,875
7.25% 10/15/06	230,000		245,525
Penn National Gaming, Inc. 8.875% 3/15/10	8,455,000		8,962,300
Station Casinos, Inc. 8.375% 2/15/08	10,000,000		10,750,000
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	17,485,000		18,840,088
Venetian Casino Resort LLC/Las Vegas Sands, Inc. 11% 6/15/10	1,275,000		1,437,563
Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (e)	1,810,000		1,882,400
Wheeling Island Gaming, Inc. 10.125% 12/15/09	2,830,000		2,808,775
Wynn Las Vegas LLC/ Wynn Las Vegas Capital Corp. 12% 11/1/10	11,805,000		12,985,500
			72,579,489
Healthcare - 4.1%
aaiPharma, Inc. 11% 4/1/10	6,920,000		7,612,000
AmeriPath, Inc. 10.5% 4/1/13 (e)	12,540,000		13,417,800
Apogent Technologies, Inc. 6.5% 5/15/13 (e)	4,100,000		4,223,000
Biovail Corp. yankee 7.875% 4/1/10	11,945,000		12,631,838
Fisher Scientific International, Inc. 8.125% 5/1/12	3,940,000		4,215,800
Fresenius Medical Care Capital Trust IV 7.875% 6/15/11	610,000		640,500
HCA, Inc. 6.3% 10/1/12	3,500,000		3,587,500
PacifiCare Health Systems, Inc. 10.75% 6/1/09	5,330,000		6,089,525
Psychiatric Solutions, Inc. 10.625% 6/15/13 (e)	1,240,000		1,274,100
Senior Housing Properties Trust:
7.875% 4/15/15	2,320,000		2,366,400
8.625% 1/15/12	5,900,000		6,254,000
Tenet Healthcare Corp.:
5% 7/1/07	2,520,000		2,368,800
5.375% 11/15/06	635,000		609,600
6.375% 12/1/11	1,415,000		1,308,875
6.5% 6/1/12	1,875,000		1,734,375
7.375% 2/1/13	7,120,000		6,870,800
Triad Hospitals, Inc. 8.75% 5/1/09	3,520,000		3,766,400
			78,971,313
Homebuilding/Real Estate - 1.8%
Beazer Homes USA, Inc. 8.625% 5/15/11	6,775,000		7,486,375
Crescent Real Estate Equities LP/Crescent Finance Co. 9.25% 4/15/09	6,245,000		6,682,150
D.R. Horton, Inc.:
7.875% 8/15/11	3,470,000		3,799,650
8% 2/1/09	3,630,000		4,011,150
KB Home 7.75% 2/1/10	5,000,000		5,375,000
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Homebuilding/Real Estate - continued
Ryland Group, Inc. 9.125% 6/15/11	$ 5,000,000		$ 5,675,000
Standard Pacific Corp. 9.25% 4/15/12	2,295,000		2,535,975
			35,565,300
Hotels - 1.9%
Hilton Hotels Corp.:
7.625% 12/1/12	3,630,000		3,965,775
8.25% 2/15/11	5,530,000		6,165,950
ITT Corp. 7.375% 11/15/15	3,740,000		3,861,550
La Quinta Properties, Inc. 8.875% 3/15/11 (e)	7,980,000		8,498,700
Starwood Hotels & Resorts Worldwide, Inc.:
7.375% 5/1/07	9,490,000		9,964,500
7.875% 5/1/12	4,155,000		4,528,950
			36,985,425
Leisure - 2.5%
Bally Total Fitness Holding Corp. 9.875% 10/15/07	5,975,000		5,467,125
Florida Panthers Holdings, Inc. 9.875% 4/15/09	11,000,000		11,825,000
Speedway Motorsports, Inc. 6.75% 6/1/13 (e)	3,010,000		3,100,300
Town Sports International, Inc. 9.625% 4/15/11 (e)	8,195,000		8,584,263
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10 (e)	16,860,000		18,546,000
			47,522,688
Metals/Mining - 2.7%
Arch Western Finance LLC 6.75% 7/1/13 (e)	10,135,000		10,337,700
Compass Minerals Group, Inc. 10% 8/15/11	4,800,000		5,328,000
Freeport-McMoRan Copper & Gold, Inc. 10.125% 2/1/10	10,025,000		11,177,875
Luscar Coal Ltd. 9.75% 10/15/11	3,770,000		4,297,800
Peabody Energy Corp. 6.875% 3/15/13 (e)	5,740,000		5,998,300
Phelps Dodge Corp.:
8.75% 6/1/11	345,000		402,546
9.5% 6/1/31	5,230,000		6,261,879
Salt Holdings Corp., Inc.:
0% 12/15/12 (d)(e)	5,580,000		3,780,450
0% 6/1/13 (d)(e)	9,470,000		5,303,200
			52,887,750
Paper - 1.1%
Norampac, Inc. 6.75% 6/1/13 (e)	3,480,000		3,636,600
Norske Skog Canada Ltd. 8.625% 6/15/11 (e)	6,000,000		6,262,500
Packaging Corp. of America 9.625% 4/1/09	4,000,000		4,400,000

	Principal Amount		Value (Note 1)
Stone Container Corp.:
8.375% 7/1/12	$ 3,350,000		$ 3,551,000
9.75% 2/1/11	2,525,000		2,752,250
			20,602,350
Publishing/Printing - 3.1%
American Color Graphics, Inc.:
10% 6/15/10 (e)(h)	5,360,000		5,386,800
12.75% 8/1/05	21,340,000		21,446,700
American Media Operations, Inc.:
8.875% 1/15/11 (e)	1,220,000		1,314,550
10.25% 5/1/09	220,000		237,050
Houghton Mifflin Co.:
8.25% 2/1/11 (e)	10,550,000		11,077,500
9.875% 2/1/13 (e)	5,970,000		6,447,600
R. H. Donnelley Finance Corp. I 10.875% 12/15/12 (e)	3,070,000		3,561,200
Vertis, Inc. 9.75% 4/1/09 (e)	5,010,000		5,097,675
World Color Press, Inc.:
7.75% 2/15/09	4,855,000		5,097,750
8.375% 11/15/08	350,000		367,500
Yell Finance BV 10.75% 8/1/11	465,000		526,613
			60,560,938
Railroad - 1.3%
TFM SA de CV yankee:
10.25% 6/15/07	4,670,000		4,734,213
11.75% 6/15/09	20,690,000		21,052,075
			25,786,288
Restaurants - 1.5%
Domino's, Inc. 8.25% 7/1/11 (e)	2,590,000		2,661,225
Morton's Restaurant Group, Inc. 7.5% 7/1/10 (e)	1,380,000		1,193,700
Tricon Global Restaurants, Inc. 8.875% 4/15/11	21,230,000		25,051,400
			28,906,325
Services - 0.2%
Fluor Corp. 6.95% 3/1/07	2,000,000		1,980,000
Iron Mountain, Inc.:
8.25% 7/1/11	520,000		548,600
8.625% 4/1/13	95,000		101,650
Pierce Leahy Command Co. yankee 8.125% 5/15/08	475,000		490,438
Worldspan LP 9.625% 6/15/11 (e)	1,410,000		1,452,300
			4,572,988
Shipping - 0.7%
General Maritime Corp. 10% 3/15/13 (e)	6,310,000		6,909,450
Transport Maritima Mexicana SA de CV yankee:
9.5% 8/15/03 (c)	2,310,000		1,882,650
10.25% 11/15/06 (c)	4,980,000		3,934,200
			12,726,300
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Steels - 0.1%
California Steel Industries, Inc. 8.5% 4/1/09	$ 640,000		$ 648,000
Steel Dynamics, Inc. 9.5% 3/15/09	655,000		687,750
			1,335,750
Super Retail - 0.5%
Barneys, Inc. 9% 4/1/08 unit (e)	5,020,000		4,518,000
Hollywood Entertainment Corp. 9.625% 3/15/11	1,630,000		1,776,700
Jafra Cosmetics International, Inc./Distribuidora Comercial Jafra SA de CV 10.75% 5/15/11 (e)	2,530,000		2,631,200
			8,925,900
Technology - 2.0%
AMI Semiconductor, Inc. 10.75% 2/1/13 (e)	5,020,000		5,672,600
Digitalnet, Inc. 9% 7/15/10 (e)	2,230,000		2,230,000
Flextronics International Ltd. yankee 9.875% 7/1/10	140,000		152,950
IOS Capital LLC 7.25% 6/30/08	4,670,000		4,599,950
ON Semiconductor Corp./Semiconductor Components Industries LLC 12% 3/15/10	4,555,000		4,964,950
Seagate Technology HDD Holdings 8% 5/15/09	7,800,000		8,424,000
Xerox Corp.:
7.125% 6/15/10	6,740,000		6,756,850
7.625% 6/15/13	6,740,000		6,756,850
			39,558,150
Telecommunications - 9.1%
Centennial Cellular Operating Co./Centennial Communications Corp. 10.125% 6/15/13 (e)	2,340,000		2,328,300
Crown Castle International Corp.:
9.375% 8/1/11	5,900,000		6,121,250
9.5% 8/1/11	700,000		721,000
10.75% 8/1/11	6,700,000		7,202,500
Millicom International Cellular SA 11% 6/1/06 (e)	3,060,000		3,021,750
Mobifon Holdings BV 12.5% 7/31/10 (e)	8,540,000		8,838,900
Nextel Communications, Inc.:
9.375% 11/15/09	19,635,000		21,058,538
9.5% 2/1/11	14,385,000		15,967,350
12% 11/1/08	2,495,000		2,694,600
Orbital Imaging Corp.:
11.625% 3/1/05 (c)	7,110,000		1,350,900
11.625% 3/1/05 (c)	3,680,000		699,200
PTC International Finance BV yankee 10.75% 7/1/07	1,580,000		1,647,150
Qwest Communications International, Inc. 7.25% 11/1/08	3,435,000		3,125,850
Qwest Corp. 8.875% 3/15/12 (e)	14,845,000		16,589,288
Qwest Services Corp.:
13.5% 12/15/10 (e)	31,285,000		35,352,037
14% 12/15/14 (e)	18,050,000		21,028,250

	Principal Amount		Value (Note 1)
Rogers Wireless, Inc. 9.625% 5/1/11	$ 7,345,000		$ 8,299,850
Satelites Mexicanos SA de CV 5.82% 6/30/04 (e)(f)	10,408,000		9,263,120
U.S. West Communications 8.875% 6/1/31	4,500,000		4,736,250
WorldCom, Inc.:
6.4% 8/15/05 (c)	2,120,000		636,000
7.5% 5/15/11 (c)	16,195,000		4,858,500
8% 5/15/06 (c)	6,065,000		1,819,500
			177,360,083
Textiles & Apparel - 0.4%
Dan River, Inc. 12.75% 4/15/09 (e)	5,090,000		4,581,000
Levi Strauss & Co. 12.25% 12/15/12	3,720,000		3,087,600
			7,668,600
TOTAL NONCONVERTIBLE BONDS			1,748,179,438
TOTAL CORPORATE BONDS (Cost $1,634,786,404)		1,765,125,313
Commercial Mortgage Securities - 0.0%

LB Multi-family Mortgage Trust Series 1991-4 Class A1, 6.9814% 4/25/21 (e)(f) (Cost $260,782)	346,957		308,792

Common Stocks - 2.4%
	Shares
Aerospace - 0.4%
Goodrich Corp.	410,000		8,610,000
Cable TV - 0.6%
NTL, Inc. (a)	363,220		12,393,066
Diversified Financial Services - 0.0%
Delta Financial Corp. warrants 12/21/10 (a)	14,310		143
Delta Funding Residual Exchange Co. LLC Class A (membership interest) (a)	1,350		243,000
Delta Funding Residual Management, Inc. (a)	1,350		14
ECM Corp. LP (e)	3,000		258,000
			501,157
Energy - 0.0%
Tokheim Corp. (a)	135,835		1,358
Healthcare - 0.3%
Mariner Health Care, Inc. (a)	9,583		42,165
Mariner Health Care, Inc. warrants 5/1/04 (a)	9,049		49,770
Common Stocks - continued
	Shares		Value (Note 1)
Healthcare - continued
Quest Diagnostics, Inc. (a)	100,000		$ 6,380,000
Wright Medical Technology, Inc. warrants 6/30/03 (a)	3,212		32
			6,471,967
Homebuilding/Real Estate - 0.3%
Swerdlow Real Estate Group LLC (g)	159,600		5,660,453
Hotels - 0.0%
MOA Hospitality, Inc.	3,000		11,625
Publishing/Printing - 0.2%
R.H. Donnelley Corp. (a)	88,800		3,238,536
Shipping - 0.5%
General Maritime Corp. (a)	919,600		9,333,940
Technology - 0.0%
Ampex Corp. Class A (a)	480		9,360
Textiles & Apparel - 0.1%
Arena Brands Holding Corp. Class B	48,889		941,113
TOTAL COMMON STOCKS (Cost $79,049,813)		47,172,575
Preferred Stocks - 2.1%

Convertible Preferred Stocks - 0.1%
Telecommunications - 0.1%
Cincinnati Bell, Inc. Series B, 6.75%	27,900		1,139,715
Nonconvertible Preferred Stocks - 2.0%
Cable TV - 0.0%
NTL Europe, Inc. Series A, 10%	397		1,191
Diversified Financial Services - 0.5%
American Annuity Group Capital Trust II 8.875%	8,910		9,417,870
Delta Financial Corp. Series A, 10%	1,350		27,000
			9,444,870
Healthcare - 0.1%
Fresenius Medical Care Capital Trust II 7.875%	2,760		2,975,711
Technology - 0.0%
Ampex Corp. 8% non-cumulative (redeemable preferred)	278		216,840
Telecommunications - 1.4%
Broadwing Communications, Inc. Series B, 12.5% pay-in-kind	15,265		3,205,650
Nextel Communications, Inc.:
Series D, 13%	4,649		4,933,751
Series E, 11.125%	17,223		18,342,495
			26,481,896
TOTAL NONCONVERTIBLE PREFERRED STOCKS			39,120,508
TOTAL PREFERRED STOCKS (Cost $42,241,273)		40,260,223

Floating Rate Loans - 1.5%
	Principal Amount		Value (Note 1)
Cable TV - 1.0%
Hilton Head Communications LP Tranche B term loan 0% 3/31/08 (f)	$ 7,000,000		$ 5,740,000
Olympus Cable Holdings LLC:
Tranche A term loan 5.25% 6/30/10 (f)	5,500,000		4,812,500
Tranche B term loan 6% 9/30/10 (f)	10,350,000		9,211,500
			19,764,000
Electric Utilities - 0.5%
Centerpoint Energy House Electric LLC term loan 12.75% 11/11/05 (f)	3,260,000		3,781,600
CMS Energy Corp.:
Tranche B term loan 7.5% 4/30/04 (f)	1,081,183		1,083,886
Tranche C term loan 9% 9/30/04 (f)	1,924,324		1,938,757
Sierra Pacific Power Co. term loan 10.5% 10/31/05 (f)	2,786,000		2,855,650
			9,659,893
TOTAL FLOATING RATE LOANS (Cost $28,028,816)		29,423,893

Money Market Funds - 1.9%
	Shares
Fidelity Cash Central Fund, 1.18% (b) (Cost $35,912,647)	35,912,647		35,912,647
Cash Equivalents - 0.2%
	Maturity Amount
Investments in repurchase agreements (Collateralized by U.S. Treasury Obligations, in a joint trading account at 1.08%, dated 6/30/03 due 7/1/03) (Cost $4,493,000)	$ 4,493,135		4,493,000
TOTAL INVESTMENT PORTFOLIO - 99.1% (Cost $1,824,772,735)			1,922,696,443
NET OTHER ASSETS - 0.9%			16,879,957
NET ASSETS - 100%		$ 1,939,576,400

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost
Swerdlow Real Estate Group LLC	1/15/99	$ 7,697,348

(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $1,033,063,886 and $710,100,009, respectively.

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 $167 for the period.

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

United States of America	86.7%
Canada	2.7
Mexico	2.1
United Kingdom	2.1
France	2.0
Marshall Islands	1.8
Bahamas (Nassau)	1.0
Others (individually less than 1%)	1.6
	100.0%

The fund invested in loans and loan participations, trade claims or other receivables. At period end the value of these investments amounted to $29,423,893 or 1.5% of net assets.

Income Tax Information

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

High Income Portfolio

Fidelity Variable Insurance Products: High Income Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including repurchase agreements of $4,493,000) (cost $1,824,772,735) - See accompanying schedule		$ 1,922,696,443
Cash		2,920
Receivable for investments sold		33,096,493
Receivable for fund shares sold		6,018,248
Dividends receivable		500,922
Interest receivable		34,343,115
Other receivables		28,080
Total assets		1,996,686,221

Liabilities
Payable for investments purchased
Regular delivery	$ 47,864,271
Delayed delivery	6,860,000
Payable for fund shares redeemed	1,220,550
Accrued management fee	922,706
Distribution fees payable	43,777
Other payables and accrued expenses	198,517
Total liabilities		57,109,821

Net Assets		$ 1,939,576,400
Net Assets consist of:
Paid in capital		$ 3,016,533,030
Undistributed net investment income		87,528,966
Accumulated undistributed net realized gain (loss) on investments		(1,262,409,581)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		97,923,985
Net Assets		$ 1,939,576,400

Initial Class: Net Asset Value, offering price and redemption price per share ($1,486,583,592 ÷ 232,031,211 shares)		$ 6.41

Service Class: Net Asset Value, offering price and redemption price per share ($390,704,728 ÷ 61,216,443 shares)		$ 6.38

Service Class 2: Net Asset Value, offering price and redemption price per share ($62,288,080 ÷ 9,822,497 shares)		$ 6.34

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 1,986,574
Interest		74,070,060
Total income		76,056,634

Expenses
Management fee	$ 4,816,741
Transfer agent fees	588,970
Distribution fees	213,121
Accounting fees and expenses	243,112
Non-interested trustees' compensation	3,331
Custodian fees and expenses	27,017
Audit	37,771
Legal	16,345
Miscellaneous	25,527
Total expenses before reductions	5,971,935
Expense reductions	(14,872)	5,957,063
Net investment income (loss)		70,099,571
Realized and Unrealized Gain (Loss) Net realized gain (loss) on investment securities		55,327,276
Change in net unrealized appreciation (depreciation) on: Investment securities	141,607,811
Assets and liabilities in foreign currencies	78
Total change in net unrealized appreciation (depreciation)		141,607,889
Net gain (loss)		196,935,165
Net increase (decrease) in net assets resulting from operations		$ 267,034,736

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

Semiannual Report

Fidelity Variable Insurance Products: High Income Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002^A
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 70,099,571	$ 118,831,777
Net realized gain (loss)	55,327,276	(126,983,382)
Change in net unrealized appreciation (depreciation)	141,607,889	58,036,531
Net increase (decrease) in net assets resulting from operations	267,034,736	49,884,926
Distributions to shareholders from net investment income	(110,937,981)	(146,986,706)
Share transactions - net increase (decrease)	344,929,163	83,855,103
Total increase (decrease) in net assets	501,025,918	(13,246,677)

Net Assets
Beginning of period	1,438,550,482	1,451,797,159
End of period (including undistributed net investment income of $87,528,966 and undistributed net investment income of $171,722,555, respectively)	$ 1,939,576,400	$ 1,438,550,482

^A Certain amounts have been reclassified. See Note 1 of the Notes to Financial Statements.

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
Shares Sold	107,561,625	29,001,001	7,218,746
Reinvested	15,863,053	3,574,368	424,961
Redeemed	(84,437,060)	(15,461,814)	(3,361,165)
Net increase (decrease)	38,987,618	17,113,555	4,282,542

Dollars Sold	$ 642,565,633	$ 173,504,673	$ 42,719,411
Reinvested	88,674,463	19,909,232	2,354,286
Redeemed	(511,276,518)	(93,162,614)	(20,359,403)
Net increase (decrease)	$ 219,963,578	$ 100,251,291	$ 24,714,294

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
Shares Sold	161,830,537	33,051,621	6,046,991
Reinvested	21,420,774	4,185,869	334,655
Redeemed	(177,635,347)	(29,816,724)	(3,438,673)
Net increase (decrease)	5,615,964	7,420,766	2,942,973

Dollars Sold	$ 928,948,274	$ 187,453,912	$ 33,996,291
Reinvested	121,455,787	23,650,162	1,880,757
Redeemed	(1,024,045,741)	(170,105,252)	(19,379,087)
Net increase (decrease)	$ 26,358,320	$ 40,998,822	$ 16,497,961

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 88,674,463	$ 19,909,232	$ 2,354,286
From net realized gain	-	-	-
Total	$ 88,674,463	$ 19,909,232	$ 2,354,286

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 121,455,786	$ 23,650,162	$ 1,880,758
From net realized gain	-	-	-
Total	$ 121,455,786	$ 23,650,162	$ 1,880,758

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

Semiannual Report

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 5.93	$ 6.41	$ 8.18	$ 11.32	$ 11.53	$ 13.58
Income from Investment Operations
Net investment income (loss)^E	.254	.496^H	.774^G,H	1.123	1.095	1.111
Net realized and unrealized gain (loss)	.706	(.306)^H	(1.544)^G,H	(3.513)	(.195)	(1.591)
Total from investment operations	.960	.190	(.770)	(2.390)	.900	(.480)
Distributions from net investment income	(.480)	(.670)	(1.000)	(.750)	(1.075)	(.970)
Distributions from net realized gain	-	-	-	-	(.030)	(.600)
Distributions in excess of net realized gain	-	-	-	-	(.005)	-
Total distributions	(.480)	(.670)	(1.000)	(.750)	(1.110)	(1.570)
Net asset value, end of period	$ 6.41	$ 5.93	$ 6.41	$ 8.18	$ 11.32	$ 11.53
Total Return^B,C,D	17.19%	3.44%	(11.73)%	(22.54)%	8.25%	(4.33)%
Ratios to Average Net Assets^F
Expenses before expense reductions	.71%^A	.70%	.71%	.68%	.69%	.70%
Expenses net of voluntary waivers, if any	.71%^A	.70%	.71%	.68%	.69%	.70%
Expenses net of all reductions	.71%^A	.70%	.70%	.68%	.69%	.70%
Net investment income (loss)	8.65%^A	8.65%^H	11.00%^G,H	11.38%	9.80%	9.14%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,486,584	$ 1,145,562	$ 1,201,085	$ 1,467,250	$ 2,257,610	$ 2,348,954
Portfolio turnover rate	91%^A	96%	138%	68%	82%	92%

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 5.91	$ 6.38	$ 8.15	$ 11.29	$ 11.52	$ 13.57
Income from Investment Operations
Net investment income (loss)^E	.250	.488^H	.758^G,H	1.102	1.074	1.082
Net realized and unrealized gain (loss)	.690	(.288)^H	(1.538)^G,H	(3.502)	(.194)	(1.562)
Total from investment operations	.940	.200	(.780)	(2.400)	.880	(.480)
Distributions from net investment income	(.470)	(.670)	(.990)	(.740)	(1.075)	(.970)
Distributions from net realized gain	-	-	-	-	(.030)	(.600)
Distributions in excess of net realized gain	-	-	-	-	(.005)	-
Total distributions	(.470)	(.670)	(.990)	(.740)	(1.110)	(1.570)
Net asset value, end of period	$ 6.38	$ 5.91	$ 6.38	$ 8.15	$ 11.29	$ 11.52
Total Return^B,C,D	17.06%	3.62%	(11.90)	(22.68)%	8.08%	(4.34)%
Ratios to Average Net Assets^F
Expenses before expense reductions	.81%^A	.80%	.81%	.78%	.79%	.82%
Expenses net of voluntary waivers, if any	.81%^A	.80%	.81%	.78%	.79%	.82%
Expenses net of all reductions	.81%^A	.80%	.81%	.78%	.79%	.82%
Net investment income (loss)	8.55%^A	8.55%^H	10.90%^G,H	11.28%	9.69%	9.51%
Supplemental Data
Net assets, end of period (000 omitted)	$ 390,705	$ 260,489	$ 234,204	$ 227,549	$ 253,972	$ 129,587
Portfolio turnover rate	91%^A	96%	138%	68%	82%	92%

^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FExpense 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 any voluntary 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. ^GEffective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. Per share data and ratios for periods prior to adoption have not been restated to reflect this change. ^H As a result of a revision to reflect accretion of market discount using the interest method, certain amounts for the years ended December 31, 2002 and 2001 have been reclassified from what was previously reported. The impact of this change for the years ended December 31, 2002 and 2001 was a decrease to net investment income of $0.017 and $0.075 per share with a corresponding increase to net realized and unrealized gain (loss) per share, respectively. The ratio of net investment income to average net assets decreased from 8.85% and 11.97% to 8.55% and 10.90%, respectively. The reclassification has no impact on the net assets of the fund.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 5.87	$ 6.36	$ 8.13	$ 11.14
Income from Investment Operations
Net investment income (loss)^E	.243	.472^I	.716^H,I	.936
Net realized and unrealized gain (loss)	.687	(.292)^I	(1.496)^H,I	(3.206)
Total from investment operations	.930	.180	(.780)	(2.270)
Distributions from net investment income	(.460)	(.670)	(.990)	(.740)
Net asset value, end of period	$ 6.34	$ 5.87	$ 6.36	$ 8.13
Total Return^B,C,D	16.97%	3.30%	(11.93)%	(21.83)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.97%^A	.97%	.98%	1.01%^A
Expenses net of voluntary waivers, if any	.97%^A	.97%	.98%	1.01%^A
Expenses net of all reductions	.97%^A	.97%	.98%	1.01%^A
Net investment income (loss)	8.38%^A	8.38%^I	10.73%^H,I	11.04%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 62,288	$ 32,499	$ 16,508	$ 4,742
Portfolio turnover rate	91%^A	96%	138%	68%

^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFor the period January 12, 2000 (commencement of operations) to December 31, 2000. ^GExpense 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 any voluntary 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. ^HEffective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. Per share data and ratios for periods prior to adoption have not been restated to reflect this change. ^I As a result of a revision to reflect accretion of market discount using the interest method, certain amounts for the years ended December 31, 2002 and 2001 have been reclassified from what was previously reported. The impact of this change for the years ended December 31, 2002 and 2001 was a decrease to net investment income of $0.017 and $0.072 per share with a corresponding increase to net realized and unrealized gain (loss) per share, respectively. The ratio of net investment income to average net assets decreased from 8.68% and 11.81% to 8.38% and 10.73%, respectively. The reclassification has no impact on the net assets of the fund.

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

Semiannual Report

Fidelity Variable Insurance Products: Index 500 Portfolio

Investment Summary

Top Ten Stocks as of June 30, 2003
	% of fund's net assets
General Electric Co.	3.1
Microsoft Corp.	3.0
Pfizer, Inc.	3.0
Exxon Mobil Corp.	2.6
Wal-Mart Stores, Inc.	2.6
Citigroup, Inc.	2.4
Johnson & Johnson	1.7
American International Group, Inc.	1.6
International Business Machines Corp.	1.6
Intel Corp.	1.5
	23.1
Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	20.2
Information Technology	16.0
Health Care	14.7
Consumer Staples	11.5
Consumer Discretionary	10.9
Industrials	10.3
Energy	5.7
Telecommunication Services	3.9
Utilities	3.0
Materials	2.6

Semiannual Report

Fidelity Variable Insurance Products: Index 500 Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.8%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 10.9%
Auto Components - 0.2%
Cooper Tire & Rubber Co.	22,599		$ 397,516
Dana Corp.	45,658		527,806
Delphi Corp.	172,127		1,485,456
Goodyear Tire & Rubber Co.	53,858		282,755
Johnson Controls, Inc.	27,392		2,344,755
Visteon Corp.	40,156		275,872
			5,314,160
Automobiles - 0.6%
Ford Motor Co.	562,309		6,179,776
General Motors Corp.	172,235		6,200,460
Harley-Davidson, Inc.	92,884		3,702,356
			16,082,592
Distributors - 0.0%
Genuine Parts Co.	53,409		1,709,622
Hotels, Restaurants & Leisure - 1.2%
Carnival Corp. unit	193,113		6,278,104
Darden Restaurants, Inc.	51,709		981,437
Harrah's Entertainment, Inc. (a)	33,696		1,355,927
Hilton Hotels Corp.	115,757		1,480,532
International Game Technology	26,239		2,685,037
Marriott International, Inc. Class A	71,235		2,736,849
McDonald's Corp.	390,876		8,622,725
Starbucks Corp. (a)	119,978		2,941,861
Starwood Hotels & Resorts Worldwide, Inc. unit	61,637		1,762,202
Wendy's International, Inc.	34,857		1,009,807
Yum! Brands, Inc. (a)	89,855		2,656,114
			32,510,595
Household Durables - 0.5%
American Greetings Corp. Class A (a)	20,249		397,690
Black & Decker Corp.	23,838		1,035,761
Centex Corp.	19,125		1,487,734
Fortune Brands, Inc.	44,644		2,330,417
KB Home	14,611		905,590
Leggett & Platt, Inc.	59,257		1,214,769
Maytag Corp.	24,065		587,667
Newell Rubbermaid, Inc.	84,239		2,358,692
Pulte Homes, Inc.	18,766		1,157,112
Snap-On, Inc.	17,877		518,969
The Stanley Works	26,236		724,114
Tupperware Corp.	17,931		257,489
Whirlpool Corp.	21,075		1,342,478
			14,318,482
Internet & Catalog Retail - 0.4%
eBay, Inc. (a)	97,541		10,161,821
Leisure Equipment & Products - 0.2%
Brunswick Corp.	27,735		693,930
Eastman Kodak Co.	88,013		2,407,156

	Shares		Value (Note 1)
Hasbro, Inc.	53,214		$ 930,713
Mattel, Inc.	135,083		2,555,770
			6,587,569
Media - 4.1%
AOL Time Warner, Inc. (a)	1,381,589		22,229,767
Clear Channel Communications, Inc. (a)	188,672		7,997,806
Comcast Corp. Class A (a)	690,893		20,851,151
Dow Jones & Co., Inc.	24,999		1,075,707
Gannett Co., Inc.	82,520		6,338,361
Interpublic Group of Companies, Inc.	119,704		1,601,640
Knight-Ridder, Inc.	25,100		1,730,143
McGraw-Hill Companies, Inc.	58,586		3,632,332
Meredith Corp.	15,280		672,320
Omnicom Group, Inc.	57,917		4,152,649
The New York Times Co. Class A	46,320		2,107,560
Tribune Co.	94,927		4,584,974
Univision Communications, Inc. Class A (a)	70,420		2,140,768
Viacom, Inc. Class B (non-vtg.) (a)	539,454		23,552,562
Walt Disney Co.	627,708		12,397,233
			115,064,973
Multiline Retail - 1.1%
Big Lots, Inc. (a)	35,863		539,380
Dillard's, Inc. Class A	26,039		350,745
Dollar General Corp.	102,477		1,871,230
Family Dollar Stores, Inc.	52,849		2,016,189
Federated Department Stores, Inc.	57,550		2,120,718
JCPenney Co., Inc.	82,641		1,392,501
Kohl's Corp. (a)	104,094		5,348,350
Nordstrom, Inc.	41,730		814,570
Sears, Roebuck & Co.	94,359		3,174,237
Target Corp.	279,799		10,587,594
The May Department Stores Co.	88,621		1,972,703
			30,188,217
Specialty Retail - 2.3%
AutoNation, Inc. (a)	86,432		1,358,711
AutoZone, Inc. (a)	27,491		2,088,491
Bed Bath & Beyond, Inc. (a)	90,714		3,520,610
Best Buy Co., Inc. (a)	98,998		4,347,992
Circuit City Stores, Inc.	63,654		560,155
Gap, Inc.	273,607		5,132,867
Home Depot, Inc.	705,864		23,378,216
Limited Brands, Inc.	160,373		2,485,782
Lowe's Companies, Inc.	239,567		10,289,403
Office Depot, Inc. (a)	94,865		1,376,491
RadioShack Corp.	51,738		1,361,227
Sherwin-Williams Co.	45,107		1,212,476
Staples, Inc. (a)	149,592		2,745,013
Tiffany & Co., Inc.	44,603		1,457,626
TJX Companies, Inc.	156,835		2,954,771
Toys 'R' Us, Inc. (a)	65,454		793,302
			65,063,133
Common Stocks - continued
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - continued
Textiles Apparel & Luxury Goods - 0.3%
Jones Apparel Group, Inc. (a)	39,298		$ 1,149,859
Liz Claiborne, Inc.	32,982		1,162,616
NIKE, Inc. Class B	81,100		4,338,039
Reebok International Ltd. (a)	18,204		612,201
VF Corp.	33,184		1,127,260
			8,389,975
TOTAL CONSUMER DISCRETIONARY			305,391,139
CONSUMER STAPLES - 11.5%
Beverages - 2.8%
Adolph Coors Co. Class B	11,165		546,862
Anheuser-Busch Companies, Inc.	256,326		13,085,442
Brown-Forman Corp. Class B (non-vtg.)	18,513		1,455,492
Coca-Cola Enterprises, Inc.	138,899		2,521,017
Pepsi Bottling Group, Inc.	84,232		1,686,325
PepsiCo, Inc.	527,831		23,488,480
The Coca-Cola Co.	756,754		35,120,953
			77,904,571
Food & Staples Retailing - 3.8%
Albertson's, Inc.	112,687		2,163,590
Costco Wholesale Corp. (a)	140,134		5,128,904
CVS Corp.	121,044		3,392,863
Kroger Co. (a)	231,796		3,866,357
Safeway, Inc. (a)	135,605		2,774,478
SUPERVALU, Inc.	41,100		876,252
Sysco Corp.	199,577		5,995,293
Wal-Mart Stores, Inc.	1,345,275		72,200,909
Walgreen Co.	314,868		9,477,527
Winn-Dixie Stores, Inc.	43,263		532,568
			106,408,741
Food Products - 1.3%
Archer-Daniels-Midland Co.	197,980		2,548,003
Campbell Soup Co.	126,119		3,089,916
ConAgra Foods, Inc.	164,983		3,893,599
General Mills, Inc.	113,536		5,382,742
H.J. Heinz Co.	107,957		3,560,422
Hershey Foods Corp.	40,298		2,807,159
Kellogg Co.	124,895		4,292,641
McCormick & Co., Inc. (non-vtg.)	42,759		1,163,045
Sara Lee Corp.	238,751		4,490,906
Wm. Wrigley Jr. Co.	69,142		3,887,855
			35,116,288
Household Products - 2.0%
Clorox Co.	66,584		2,839,808
Colgate-Palmolive Co.	165,293		9,578,729
Kimberly-Clark Corp.	156,289		8,148,908
Procter & Gamble Co.	397,754		35,471,702
			56,039,147

	Shares		Value (Note 1)
Personal Products - 0.5%
Alberto-Culver Co. Class B	18,022		$ 920,924
Avon Products, Inc.	72,141		4,487,170
Gillette Co.	313,719		9,995,087
			15,403,181
Tobacco - 1.1%
Altria Group, Inc.	622,065		28,266,634
RJ Reynolds Tobacco Holdings, Inc.	25,903		963,851
UST, Inc.	51,372		1,799,561
			31,030,046
TOTAL CONSUMER STAPLES			321,901,974
ENERGY - 5.7%
Energy Equipment & Services - 0.8%
Baker Hughes, Inc.	103,423		3,471,910
BJ Services Co. (a)	48,559		1,814,164
Halliburton Co.	134,301		3,088,923
Nabors Industries Ltd. (a)	44,744		1,769,625
Noble Corp. (a)	41,047		1,407,912
Rowan Companies, Inc.	28,768		644,403
Schlumberger Ltd. (NY Shares)	178,885		8,509,559
Transocean, Inc.	98,239		2,158,311
			22,864,807
Oil & Gas - 4.9%
Amerada Hess Corp.	27,627		1,358,696
Anadarko Petroleum Corp.	76,640		3,408,181
Apache Corp.	49,647		3,230,034
Ashland, Inc.	20,965		643,206
Burlington Resources, Inc.	61,683		3,335,200
ChevronTexaco Corp.	328,210		23,696,762
ConocoPhillips	208,520		11,426,896
Devon Energy Corp.	70,901		3,786,113
EOG Resources, Inc.	35,201		1,472,810
Exxon Mobil Corp.	2,052,018		73,687,966
Kerr-McGee Corp.	30,983		1,388,038
Marathon Oil Corp.	95,197		2,508,441
Occidental Petroleum Corp.	116,515		3,909,078
Sunoco, Inc.	23,548		888,702
Unocal Corp.	79,269		2,274,228
			137,014,351
TOTAL ENERGY			159,879,158
FINANCIALS - 20.2%
Capital Markets - 3.5%
Bank of New York Co., Inc.	236,878		6,810,243
Bear Stearns Companies, Inc.	30,434		2,204,030
Charles Schwab Corp.	403,569		4,072,011
Federated Investors, Inc. Class B (non-vtg.)	33,497		918,488
Franklin Resources, Inc.	77,870		3,042,381
Goldman Sachs Group, Inc.	144,264		12,082,110
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Capital Markets - continued
J.P. Morgan Chase & Co.	624,030		$ 21,329,345
Janus Capital Group, Inc.	73,513		1,205,613
Lehman Brothers Holdings, Inc.	74,518		4,953,957
Mellon Financial Corp.	132,556		3,678,429
Merrill Lynch & Co., Inc.	285,810		13,341,611
Morgan Stanley	334,033		14,279,911
Northern Trust Corp.	67,715		2,829,810
State Street Corp.	102,117		4,023,410
T. Rowe Price Group, Inc.	37,509		1,415,965
			96,187,314
Commercial Banks - 6.2%
AmSouth Bancorp.	107,863		2,355,728
Bank of America Corp.	460,222		36,371,345
Bank One Corp.	350,951		13,048,358
BB&T Corp.	144,788		4,966,228
Charter One Financial, Inc.	69,125		2,155,318
Comerica, Inc.	53,814		2,502,351
Fifth Third Bancorp	176,419		10,115,865
First Tennessee National Corp.	38,801		1,703,752
FleetBoston Financial Corp.	323,046		9,597,697
Huntington Bancshares, Inc.	70,239		1,371,065
KeyCorp	129,891		3,282,346
Marshall & Ilsley Corp.	69,639		2,129,561
National City Corp.	187,918		6,146,798
North Fork Bancorp, Inc., New York	48,128		1,639,240
PNC Financial Services Group, Inc.	86,888		4,241,003
Regions Financial Corp.	68,235		2,304,978
SouthTrust Corp.	104,522		2,842,998
SunTrust Banks, Inc.	86,049		5,106,148
Synovus Financial Corp.	93,274		2,005,391
U.S. Bancorp, Delaware	589,773		14,449,439
Union Planters Corp.	60,990		1,892,520
Wachovia Corp.	413,260		16,513,870
Wells Fargo & Co.	514,621		25,936,898
Zions Bancorp	27,693		1,401,543
			174,080,440
Consumer Finance - 1.2%
American Express Co.	398,447		16,659,069
Capital One Financial Corp.	69,567		3,421,305
MBNA Corp.	392,522		8,180,158
Providian Financial Corp. (a)	89,044		824,547
SLM Corp.	138,927		5,441,771
			34,526,850
Diversified Financial Services - 2.6%
Citigroup, Inc.	1,581,562		67,690,854
Moody's Corp.	45,560		2,401,468
Principal Financial Group, Inc.	100,553		3,242,834
			73,335,156

	Shares		Value (Note 1)
Insurance - 4.5%
ACE Ltd.	81,320		$ 2,788,463
AFLAC, Inc.	157,716		4,849,767
Allstate Corp.	216,261		7,709,705
AMBAC Financial Group, Inc.	32,646		2,162,798
American International Group, Inc.	801,342		44,218,052
Aon Corp.	95,906		2,309,416
Cincinnati Financial Corp.	49,379		1,831,467
Hartford Financial Services Group, Inc.	85,967		4,329,298
Jefferson-Pilot Corp.	43,657		1,810,019
John Hancock Financial Services, Inc.	88,781		2,728,240
Lincoln National Corp.	54,529		1,942,868
Loews Corp.	56,972		2,694,206
Marsh & McLennan Companies, Inc.	164,487		8,400,351
MBIA, Inc.	44,199		2,154,701
MetLife, Inc.	233,537		6,613,768
Progressive Corp.	66,869		4,888,124
Prudential Financial, Inc.	168,875		5,682,644
SAFECO Corp.	42,514		1,499,894
St. Paul Companies, Inc.	69,917		2,552,670
The Chubb Corp.	56,870		3,412,200
Torchmark Corp.	35,663		1,328,447
Travelers Property Casualty Corp. Class B	309,194		4,875,989
UnumProvident Corp.	88,392		1,185,337
XL Capital Ltd. Class A	41,965		3,483,095
			125,451,519
Real Estate - 0.4%
Apartment Investment & Management Co. Class A	28,626		990,460
Equity Office Properties Trust	123,715		3,341,542
Equity Residential (SBI)	83,729		2,172,768
Plum Creek Timber Co., Inc.	56,208		1,458,598
Simon Property Group, Inc.	58,063		2,266,199
			10,229,567
Thrifts & Mortgage Finance - 1.8%
Countrywide Financial Corp.	40,127		2,791,635
Fannie Mae	301,018		20,300,654
Freddie Mac	211,173		10,721,253
Golden West Financial Corp., Delaware	46,893		3,751,909
MGIC Investment Corp.	30,322		1,414,218
Washington Mutual, Inc.	285,861		11,806,059
			50,785,728
TOTAL FINANCIALS			564,596,574
HEALTH CARE - 14.7%
Biotechnology - 1.3%
Amgen, Inc. (a)	386,944		25,708,559
Biogen, Inc. (a)	45,609		1,733,142
Chiron Corp. (a)	57,272		2,503,932
Genzyme Corp. - General Division (a)	66,294		2,771,089
MedImmune, Inc. (a)	77,442		2,816,566
			35,533,288
Common Stocks - continued
	Shares		Value (Note 1)
HEALTH CARE - continued
Health Care Equipment & Supplies - 1.9%
Applera Corp. - Applied Biosystems Group	64,198		$ 1,221,688
Bausch & Lomb, Inc.	16,349		613,088
Baxter International, Inc.	183,564		4,772,664
Becton, Dickinson & Co.	78,252		3,040,090
Biomet, Inc.	79,262		2,271,649
Boston Scientific Corp. (a)	126,010		7,699,211
C.R. Bard, Inc.	15,989		1,140,176
Guidant Corp.	95,023		4,218,071
Medtronic, Inc.	374,658		17,972,344
Millipore Corp. (a)	14,894		660,847
St. Jude Medical, Inc. (a)	55,279		3,178,543
Stryker Corp.	60,992		4,231,015
Zimmer Holdings, Inc. (a)	60,355		2,718,993
			53,738,379
Health Care Providers & Services - 1.8%
Aetna, Inc.	46,654		2,808,571
AmerisourceBergen Corp.	33,913		2,351,867
Anthem, Inc. (a)	42,477		3,277,101
Cardinal Health, Inc.	137,156		8,819,131
CIGNA Corp.	43,071		2,021,753
HCA, Inc.	157,171		5,035,759
Health Management Associates, Inc. Class A	73,327		1,352,883
Humana, Inc. (a)	49,627		749,368
IMS Health, Inc.	74,670		1,343,313
Manor Care, Inc. (a)	27,652		691,577
McKesson Corp.	88,947		3,178,966
Quest Diagnostics, Inc. (a)	32,360		2,064,568
Quintiles Transnational Corp. (a)	36,339		515,650
Tenet Healthcare Corp. (a)	143,355		1,670,086
UnitedHealth Group, Inc.	182,055		9,148,264
WellPoint Health Networks, Inc. (a)	44,697		3,767,957
			48,796,814
Pharmaceuticals - 9.7%
Abbott Laboratories	479,554		20,985,283
Allergan, Inc.	40,010		3,084,771
Bristol-Myers Squibb Co.	595,486		16,167,445
Eli Lilly & Co.	345,164		23,805,961
Forest Laboratories, Inc. (a)	111,520		6,105,720
Johnson & Johnson	912,070		47,154,019
King Pharmaceuticals, Inc. (a)	73,963		1,091,694
Merck & Co., Inc.	688,880		41,711,684
Pfizer, Inc.	2,425,463		82,829,561
Schering-Plough Corp.	451,268		8,393,585
Watson Pharmaceuticals, Inc. (a)	32,890		1,327,769
Wyeth	407,973		18,583,170
			271,240,662
TOTAL HEALTH CARE			409,309,143

	Shares		Value (Note 1)
INDUSTRIALS - 10.3%
Aerospace & Defense - 1.7%
Boeing Co.	258,301		$ 8,864,890
General Dynamics Corp.	60,634		4,395,965
Goodrich Corp.	36,111		758,331
Honeywell International, Inc.	263,561		7,076,613
Lockheed Martin Corp.	138,277		6,577,837
Northrop Grumman Corp.	56,193		4,848,894
Raytheon Co.	126,131		4,142,142
Rockwell Collins, Inc.	54,698		1,347,212
United Technologies Corp.	143,745		10,181,458
			48,193,342
Air Freight & Logistics - 1.0%
FedEx Corp.	91,655		5,685,360
Ryder System, Inc.	19,278		493,902
United Parcel Service, Inc. Class B	345,706		22,021,472
			28,200,734
Airlines - 0.2%
Delta Air Lines, Inc.	37,899		556,357
Southwest Airlines Co.	239,290		4,115,788
			4,672,145
Building Products - 0.2%
American Standard Companies, Inc. (a)	22,064		1,631,192
Masco Corp.	146,417		3,492,045
			5,123,237
Commercial Services & Supplies - 1.0%
Allied Waste Industries, Inc. (a)	64,224		645,451
Apollo Group, Inc. Class A (a)	53,830		3,324,541
Avery Dennison Corp.	33,938		1,703,688
Cendant Corp. (a)	312,906		5,732,438
Cintas Corp.	52,369		1,855,957
Deluxe Corp.	16,983		760,838
Equifax, Inc.	43,316		1,126,216
H&R Block, Inc.	55,026		2,379,875
Monster Worldwide, Inc.	34,349		677,706
Pitney Bowes, Inc.	71,957		2,763,868
R.R. Donnelley & Sons Co.	34,808		909,881
Robert Half International, Inc. (a)	52,270		989,994
Waste Management, Inc.	181,680		4,376,671
			27,247,124
Construction & Engineering - 0.0%
Fluor Corp.	25,044		842,480
McDermott International, Inc. (a)	20,097		127,214
			969,694
Electrical Equipment - 0.4%
American Power Conversion Corp.	60,397		941,589
Cooper Industries Ltd. Class A	28,651		1,183,286
Emerson Electric Co.	129,323		6,608,405
Power-One, Inc. (a)	25,427		181,803
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Electrical Equipment - continued
Rockwell Automation, Inc.	56,936		$ 1,357,354
Thomas & Betts Corp. (a)	17,962		259,551
			10,531,988
Industrial Conglomerates - 4.2%
3M Co.	120,071		15,486,758
General Electric Co.	3,070,431		88,059,951
Textron, Inc.	41,503		1,619,447
Tyco International Ltd.	613,476		11,643,774
			116,809,930
Machinery - 1.2%
Caterpillar, Inc.	105,822		5,890,053
Crane Co.	18,211		412,115
Cummins, Inc.	12,749		457,562
Danaher Corp.	46,950		3,194,948
Deere & Co.	73,542		3,360,869
Dover Corp.	62,219		1,864,081
Eaton Corp.	22,918		1,801,584
Illinois Tool Works, Inc.	94,488		6,222,035
Ingersoll-Rand Co. Ltd. Class A	52,038		2,462,438
ITT Industries, Inc.	28,226		1,847,674
Navistar International Corp. (a)	20,964		684,055
PACCAR, Inc.	35,713		2,412,770
Pall Corp.	37,790		850,275
Parker Hannifin Corp.	36,291		1,523,859
			32,984,318
Road & Rail - 0.4%
Burlington Northern Santa Fe Corp.	114,484		3,255,925
CSX Corp.	65,658		1,975,649
Norfolk Southern Corp.	119,752		2,299,238
Union Pacific Corp.	78,056		4,528,809
			12,059,621
Trading Companies & Distributors - 0.0%
W.W. Grainger, Inc.	28,151		1,316,341
TOTAL INDUSTRIALS			288,108,474
INFORMATION TECHNOLOGY - 16.0%
Communications Equipment - 2.3%
ADC Telecommunications, Inc. (a)	246,366		573,540
Andrew Corp. (a)	30,209		277,923
Avaya, Inc. (a)	117,149		756,783
CIENA Corp. (a)	144,726		751,128
Cisco Systems, Inc. (a)	2,156,273		35,988,196
Comverse Technology, Inc. (a)	57,815		868,959
Corning, Inc. (a)	388,888		2,873,882
JDS Uniphase Corp. (a)	439,374		1,542,203
Lucent Technologies, Inc. (a)	1,270,967		2,580,063
Motorola, Inc.	711,325		6,707,795
QUALCOMM, Inc.	242,519		8,670,054

	Shares		Value (Note 1)
Scientific-Atlanta, Inc.	45,772		$ 1,091,204
Tellabs, Inc. (a)	126,656		832,130
			63,513,860
Computers & Peripherals - 3.9%
Apple Computer, Inc. (a)	112,322		2,147,597
Dell Computer Corp. (a)	789,019		25,217,047
EMC Corp. (a)	671,881		7,034,594
Gateway, Inc. (a)	99,560		363,394
Hewlett-Packard Co.	937,768		19,974,458
International Business Machines Corp.	530,870		43,796,775
Lexmark International, Inc. Class A (a)	39,169		2,771,990
NCR Corp. (a)	29,308		750,871
Network Appliance, Inc. (a)	104,249		1,689,876
Sun Microsystems, Inc. (a)	992,199		4,564,115
			108,310,717
Electronic Equipment & Instruments - 0.4%
Agilent Technologies, Inc. (a)	144,792		2,830,684
Jabil Circuit, Inc. (a)	61,023		1,348,608
Molex, Inc.	58,715		1,584,718
PerkinElmer, Inc.	38,744		535,055
Sanmina-SCI Corp. (a)	156,690		988,714
Solectron Corp. (a)	254,927		953,427
Symbol Technologies, Inc.	70,833		921,537
Tektronix, Inc. (a)	26,060		562,896
Thermo Electron Corp. (a)	49,692		1,044,526
Waters Corp. (a)	38,173		1,111,979
			11,882,144
Internet Software & Services - 0.2%
Yahoo!, Inc. (a)	185,320		6,071,083
IT Services - 1.2%
Automatic Data Processing, Inc.	183,724		6,220,895
Computer Sciences Corp. (a)	57,518		2,192,586
Concord EFS, Inc. (a)	149,490		2,200,493
Convergys Corp. (a)	45,454		727,264
Electronic Data Systems Corp.	146,966		3,152,421
First Data Corp.	229,785		9,522,290
Fiserv, Inc. (a)	59,353		2,113,560
Paychex, Inc.	115,645		3,389,555
Sabre Holdings Corp. Class A	44,017		1,085,019
SunGard Data Systems, Inc. (a)	87,371		2,263,783
Unisys Corp. (a)	100,698		1,236,571
			34,104,437
Office Electronics - 0.1%
Xerox Corp. (a)	240,113		2,542,797
Semiconductors & Semiconductor Equipment - 3.2%
Advanced Micro Devices, Inc. (a)	106,238		680,986
Altera Corp. (a)	117,632		1,929,165
Analog Devices, Inc. (a)	112,231		3,907,883
Applied Materials, Inc. (a)	509,177		8,075,547
Applied Micro Circuits Corp. (a)	93,419		565,185
Broadcom Corp. Class A (a)	86,049		2,143,481
Intel Corp.	2,007,351		41,720,783
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Semiconductors & Semiconductor Equipment - continued
KLA-Tencor Corp. (a)	58,467		$ 2,718,131
Linear Technology Corp.	96,155		3,097,153
LSI Logic Corp. (a)	115,278		816,168
Maxim Integrated Products, Inc.	99,744		3,410,247
Micron Technology, Inc. (a)	186,985		2,174,636
National Semiconductor Corp. (a)	56,054		1,105,385
Novellus Systems, Inc. (a)	46,055		1,686,580
NVIDIA Corp. (a)	48,868		1,124,453
PMC-Sierra, Inc. (a)	51,907		608,869
QLogic Corp. (a)	28,826		1,393,161
Teradyne, Inc. (a)	56,816		983,485
Texas Instruments, Inc.	531,264		9,350,246
Xilinx, Inc. (a)	103,658		2,623,584
			90,115,128
Software - 4.7%
Adobe Systems, Inc.	71,229		2,284,314
Autodesk, Inc.	34,347		555,048
BMC Software, Inc. (a)	71,672		1,170,404
Citrix Systems, Inc. (a)	50,788		1,034,044
Computer Associates International, Inc.	177,596		3,956,839
Compuware Corp. (a)	116,145		670,157
Electronic Arts, Inc. (a)	44,733		3,309,795
Intuit, Inc. (a)	63,049		2,807,572
Mercury Interactive Corp. (a)	26,227		1,012,624
Microsoft Corp.	3,298,354		84,470,846
Novell, Inc. (a)	113,164		348,545
Oracle Corp. (a)	1,610,734		19,361,023
Parametric Technology Corp. (a)	81,243		247,791
PeopleSoft, Inc. (a)	97,260		1,710,803
Siebel Systems, Inc. (a)	150,396		1,434,778
Symantec Corp. (a)	45,379		1,990,323
VERITAS Software Corp. (a)	127,430		3,653,418
			130,018,324
TOTAL INFORMATION TECHNOLOGY			446,558,490
MATERIALS - 2.6%
Chemicals - 1.4%
Air Products & Chemicals, Inc.	69,819		2,904,470
Dow Chemical Co.	281,270		8,708,119
E.I. du Pont de Nemours & Co.	305,983		12,741,132
Eastman Chemical Co.	23,774		752,923
Ecolab, Inc.	80,734		2,066,790
Engelhard Corp.	38,688		958,302
Great Lakes Chemical Corp.	15,431		314,792
Hercules, Inc. (a)	33,768		334,303
International Flavors & Fragrances, Inc.	28,831		920,574
Monsanto Co.	80,313		1,737,973
PPG Industries, Inc.	52,141		2,645,634
Praxair, Inc.	49,912		2,999,711

	Shares		Value (Note 1)
Rohm & Haas Co.	68,211		$ 2,116,587
Sigma Aldrich Corp.	21,773		1,179,661
			40,380,971
Construction Materials - 0.0%
Vulcan Materials Co.	31,196		1,156,436
Containers & Packaging - 0.2%
Ball Corp.	17,516		797,153
Bemis Co., Inc.	16,313		763,448
Pactiv Corp. (a)	48,990		965,593
Sealed Air Corp.	25,930		1,235,824
Temple-Inland, Inc.	16,603		712,435
			4,474,453
Metals & Mining - 0.5%
Alcoa, Inc.	259,674		6,621,687
Allegheny Technologies, Inc.	24,873		164,162
Freeport-McMoRan Copper & Gold, Inc. Class B	44,666		1,094,317
Newmont Mining Corp. Holding Co.	123,562		4,010,823
Nucor Corp.	24,020		1,173,377
Phelps Dodge Corp. (a)	27,338		1,048,139
United States Steel Corp.	31,688		518,733
Worthington Industries, Inc.	26,399		353,747
			14,984,985
Paper & Forest Products - 0.5%
Boise Cascade Corp.	17,908		428,001
Georgia-Pacific Corp.	76,892		1,457,103
International Paper Co.	147,137		5,257,205
Louisiana-Pacific Corp. (a)	32,131		348,300
MeadWestvaco Corp.	61,562		1,520,581
Weyerhaeuser Co.	67,290		3,633,660
			12,644,850
TOTAL MATERIALS			73,641,695
TELECOMMUNICATION SERVICES - 3.9%
Diversified Telecommunication Services - 3.4%
ALLTEL Corp.	95,628		4,611,182
AT&T Corp.	241,551		4,649,857
BellSouth Corp.	567,381		15,109,356
CenturyTel, Inc.	43,969		1,532,320
Citizens Communications Co. (a)	87,080		1,122,461
Qwest Communications International, Inc. (a)	520,841		2,489,620
SBC Communications, Inc.	1,020,697		26,078,808
Sprint Corp. - FON Group	276,207		3,977,381
Verizon Communications, Inc.	844,922		33,332,173
			92,903,158
Wireless Telecommunication Services - 0.5%
AT&T Wireless Services, Inc. (a)	833,134		6,840,030
Common Stocks - continued
	Shares		Value (Note 1)
TELECOMMUNICATION SERVICES - continued
Wireless Telecommunication Services - continued
Nextel Communications, Inc. Class A (a)	315,840		$ 5,710,387
Sprint Corp. - PCS Group Series 1 (a)	314,410		1,807,858
			14,358,275
TOTAL TELECOMMUNICATION SERVICES			107,261,433
UTILITIES - 3.0%
Electric Utilities - 2.3%
Allegheny Energy, Inc. (a)	38,613		326,280
Ameren Corp.	49,529		2,184,229
American Electric Power Co., Inc.	121,348		3,619,811
CenterPoint Energy, Inc.	93,848		764,861
Cinergy Corp.	54,098		1,990,265
CMS Energy Corp.	44,269		358,579
Consolidated Edison, Inc.	68,594		2,968,748
Constellation Energy Group, Inc.	50,794		1,742,234
Dominion Resources, Inc.	95,484		6,136,757
DTE Energy Co.	51,604		1,993,979
Edison International (a)	100,094		1,644,544
Entergy Corp.	69,366		3,661,137
Exelon Corp.	99,610		5,957,674
FirstEnergy Corp.	91,439		3,515,830
FPL Group, Inc.	56,309		3,764,257
PG&E Corp. (a)	125,710		2,658,767
Pinnacle West Capital Corp.	28,035		1,049,911
PPL Corp.	51,785		2,226,755
Progress Energy, Inc.	73,978		3,247,634
Public Service Enterprise Group, Inc.	69,396		2,931,981
Southern Co.	221,729		6,909,076
TECO Energy, Inc.	54,226		650,170
TXU Corp.	99,004		2,222,640
Xcel Energy, Inc.	122,491		1,842,265
			64,368,384
Gas Utilities - 0.3%
KeySpan Corp.	48,332		1,713,369
Kinder Morgan, Inc.	37,503		2,049,539
Nicor, Inc.	13,524		501,876
NiSource, Inc.	80,665		1,532,635
Peoples Energy Corp.	11,076		475,050
Sempra Energy	63,731		1,818,245
			8,090,714
Multi-Utilities & Unregulated Power - 0.4%
AES Corp. (a)	188,216		1,195,172
Calpine Corp. (a)	117,101		772,867
Duke Energy Corp.	276,847		5,523,098
Dynegy, Inc. Class A	114,486		480,841
El Paso Corp.	184,056		1,487,172

	Shares		Value (Note 1)
Mirant Corp. (a)	124,131		$ 359,980
Williams Companies, Inc.	159,052		1,256,511
			11,075,641
TOTAL UTILITIES			83,534,739
TOTAL COMMON STOCKS (Cost $2,295,352,677)		2,760,182,819
U.S. Treasury Obligations - 0.1%
	Principal Amount
U.S. Treasury Bills, yield at date of purchase 0.82% to 1.09% 8/21/03 (c) (Cost $2,496,346)	$ 2,500,000		2,497,118
Money Market Funds - 2.1%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	28,236,303		28,236,303
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	29,926,103		29,926,103
TOTAL MONEY MARKET FUNDS (Cost $58,162,406)		58,162,406
TOTAL INVESTMENT PORTFOLIO - 101.0% (Cost $2,356,011,429)			2,820,842,343
NET OTHER ASSETS - (1.0)%			(26,849,276)
NET ASSETS - 100%		$ 2,793,993,067

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Gain/(Loss)
Purchased
Equity Index Contracts
75 S&P 500 E-Mini Index Contracts	Sept. 2003	$ 3,649,875	$ (52,847)
122 S&P 500 Index Contracts	Sept. 2003	29,685,650	(327,023)
		$ 33,335,525	$ (379,870)

The face value of futures purchased as a percentage of net assets - 1.2%

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(c) 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 $2,497,118.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $121,000,886 and $141,658,912, respectively.

The fund placed a portion of its portfolio transactions with brokerage firms with are affiliates of the sub-adviser. The commissions paid to these affiliated firms were $600 for the period.

The fund participated in the interfund lending program as a borrower. The average daily loan balance during the period for which loans were outstanding amounted to $9,886,000. The weighted average interest rate was 1.38%. At period end there were no interfund loans outstanding.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $178,357,000 of which $12,929,000, $42,621,000 and $122,807,000 will expire on December 31, 2008, 2009 and 2010, respectively.

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

Index 500 Portfolio

Fidelity Variable Insurance Products: Index 500 Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $27,527,748) (cost $2,356,011,429) - See accompanying schedule		$ 2,820,842,343
Receivable for investments sold		148,304
Receivable for fund shares sold		2,366,336
Dividends receivable		3,401,251
Interest receivable		27,374
Receivable from investment adviser for expense reductions		125,996
Other receivables		8,713
Total assets		2,826,920,317

Liabilities
Payable for investments purchased	$ 203,201
Payable for fund shares redeemed	1,933,745
Accrued management fee	564,770
Distribution fees payable	9,946
Other payables and accrued expenses	289,485
Collateral on securities loaned, at value	29,926,103
Total liabilities		32,927,250

Net Assets		$ 2,793,993,067
Net Assets consist of:
Paid in capital		$ 2,513,384,093
Undistributed net investment income		18,952,198
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(202,794,099)
Net unrealized appreciation (depreciation) on investments		464,450,875
Net Assets		$ 2,793,993,067

Initial Class: Net Asset Value, offering price and redemption price per share ($2,738,890,083 ÷ 24,968,044 shares)		$ 109.70

Service Class: Net Asset Value, offering price and redemption price per share ($10,722,219 ÷ 97,904 shares)		$ 109.52

Service Class 2: Net Asset Value, offering price and redemption price per share ($44,380,765 ÷ 406,710 shares)		$ 109.12

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 22,532,544
Interest		172,970
Security lending		50,675
Total income		22,756,189

Expenses
Management fee	$ 3,061,884
Transfer agent fees	885,038
Distribution fees	47,791
Accounting and security lending fees	256,325
Non-interested trustees' compensation	5,141
Depreciation in deferred trustee compensation account	(7,840)
Custodian fees and expenses	26,656
Audit	31,475
Legal	3,309
Interest	1,134
Miscellaneous	63,813
Total expenses before reductions	4,374,726
Expense reductions	(747,774)	3,626,952
Net investment income (loss)		19,129,237
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(29,916,597)
Foreign currency transactions	588
Futures contracts	6,433,282
Swap agreements	118,320
Total net realized gain (loss)		(23,364,407)
Change in net unrealized appreciation (depreciation) on: Investment securities	290,333,986
Futures contracts	(132,578)
Total change in net unrealized appreciation (depreciation)		290,201,408
Net gain (loss)		266,837,001
Net increase (decrease) in net assets resulting from operations		$ 285,966,238

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

Semiannual Report

Fidelity Variable Insurance Products: Index 500
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 19,129,237	$ 39,711,750
Net realized gain (loss)	(23,364,407)	(104,818,443)
Change in net unrealized appreciation (depreciation)	290,201,408	(705,886,007)
Net increase (decrease) in net assets resulting from operations	285,966,238	(770,992,700)
Distributions to shareholders from net investment income	(39,819,617)	(39,813,740)
Share transactions - net increase (decrease)	12,065,775	(151,386,548)
Total increase (decrease) in net assets	258,212,396	(962,192,988)

Net Assets
Beginning of period	2,535,780,671	3,497,973,659
End of period (including undistributed net investment income of $18,952,198 and undistributed net investment income of $39,666,152, respectively)	$ 2,793,993,067	$ 2,535,780,671

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
Shares	Initial Class	Service Class	Service Class 2
Sold	1,890,937	30,485	263,625
Reinvested	423,444	1,303	4,503
Redeemed	(2,339,033)	(9,021)	(173,974)
Net increase (decrease)	(24,652)	22,767	94,154
Dollars
Sold	$ 193,264,345	$ 3,047,651	$ 26,399,459
Reinvested	39,282,914	120,726	415,977
Redeemed	(232,181,703)	(903,034)	(17,380,560)
Net increase (decrease)	$ 365,556	$ 2,265,343	$ 9,434,876

Share Transactions	Year ended December 31, 2002
Shares	Initial Class	Service Class	Service Class 2
Sold	3,790,969	60,557	570,859
Reinvested	321,923	354	1,841
Redeemed	(5,838,189)	(11,000)	(409,561)
Net increase (decrease)	(1,725,297)	49,911	163,139
Dollars
Sold	$ 431,128,827	$ 6,939,815	$ 60,711,481
Reinvested	39,545,037	43,491	225,252
Redeemed	(645,993,552)	(1,271,169)	(42,715,730)
Net increase (decrease)	$ (175,319,688)	$ 5,712,137	$ 18,221,003

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 39,282,914	$ 120,726	$ 415,977
From net realized gain	-	-	-
Total	$ 39,282,914	$ 120,726	$ 415,977

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 39,544,997	$ 43,491	$ 225,252
From net realized gain	-	-	-
Total	$ 39,544,997	$ 43,491	$ 225,252

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

Index 500 Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 99.92	$ 130.08	$ 149.53	$ 167.41	$ 141.24	$ 114.40
Income from Investment Operations
Net investment income (loss)^E	.76	1.51	1.48	1.51	1.64	1.65
Net realized and unrealized gain (loss)	10.62	(30.18)	(19.34)	(16.99)	26.88	29.70
Total from investment operations	11.38	(28.67)	(17.86)	(15.48)	28.52	31.35
Distributions from net investment income	(1.60)	(1.49)	(1.59)	(1.67)	(1.40)	(1.36)
Distributions from net realized gain	-	-	-	(.73)	(.95)	(3.15)
Total distributions	(1.60)	(1.49)	(1.59)	(2.40)	(2.35)	(4.51)
Net asset value, end of period	$ 109.70	$ 99.92	$ 130.08	$ 149.53	$ 167.41	$ 141.24
Total Return^B,C,D	11.68%	(22.25)%	(12.09)%	(9.30)%	20.52%	28.31%
Ratios to Average Net Assets^F
Expenses before expense reductions	.34%^A	.33%	.35%	.33%	.34%	.35%
Expenses net of voluntary waivers, if any	.28%^A	.28%	.28%	.28%	.28%	.28%
Expenses net of all reductions	.28%^A	.28%	.28%	.28%	.28%	.28%
Net investment income (loss)	1.50%^A	1.34%	1.09%	.94%	1.09%	1.33%
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,738,890	$ 2,497,252	$ 3,475,357	$ 4,148,728	$ 5,538,735	$ 3,772,068
Portfolio turnover rate	10%^A	7%	9%	10%	8%	4%

^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.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 99.74	$ 129.94	$ 149.46	$ 166.69
Income from Investment Operations
Net investment income (loss)^E	.71	1.34	1.24	.65
Net realized and unrealized gain (loss)	10.60	(30.07)	(19.23)	(17.88)
Total from investment operations	11.31	(28.73)	(17.99)	(17.23)
Distributions from net investment income	(1.53)	(1.47)	(1.53)	-
Net asset value, end of period	$ 109.52	$ 99.74	$ 129.94	$ 149.46
Total Return^B,C,D	11.62%	(22.32)%	(12.18)%	(10.34)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.46%^A	.47%	.56%	.43%^A
Expenses net of voluntary waivers, if any	.38%^A	.38%	.38%	.38%^A
Expenses net of all reductions	.38%^A	.38%	.38%	.38%^A
Net investment income (loss)	1.40%^A	1.24%	.99%	.84%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 10,722	$ 7,494	$ 3,278	$ 90
Portfolio turnover rate	10%^A	7%	9%	10%

^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 For the period July 7, 2000 (commencement of sale of shares) to December 31, 2000.

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 99.29	$ 129.43	$ 149.18	$ 163.25
Income from Investment Operations
Net investment income (loss)^E	.63	1.19	1.09	1.04
Net realized and unrealized gain (loss)	10.58	(30.00)	(19.23)	(12.71)
Total from investment operations	11.21	(28.81)	(18.14)	(11.67)
Distributions from net investment income	(1.38)	(1.33)	(1.61)	(1.67)
Distributions from net realized gain	-	-	-	(.73)
Total distributions	(1.38)	(1.33)	(1.61)	(2.40)
Net asset value, end of period	$ 109.12	$ 99.29	$ 129.43	$ 149.18
Total Return^B,C,D	11.54%	(22.45)%	(12.31)%	(7.21)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.60%^A	.60%	.61%	.76%^A
Expenses net of voluntary waivers, if any	.53%^A	.53%	.53%	.53%^A
Expenses net of all reductions	.53%^A	.53%	.53%	.53%^A
Net investment income (loss)	1.25%^A	1.09%	.84%	.69%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 44,381	$ 31,035	$ 19,338	$ 323
Portfolio turnover rate	10%^A	7%	9%	10%

^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 For the period January 12, 2000 (commencement of sale of shares) to December 31, 2000.

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

Index 500 Portfolio

Fidelity Variable Insurance Products: Overseas Portfolio

>Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Nikko Cordial Corp. (Japan)	4.4
Nomura Holdings, Inc. (Japan)	4.0
Daiwa Securities Group, Inc. (Japan)	3.0
Total SA Series B (France)	2.4
Infineon Technologies AG (Germany)	2.4
	16.2
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	32.3
Information Technology	17.2
Health Care	9.0
Energy	9.1
Consumer Discretionary	9.0
Top Five Countries as of June 30, 2003
(excluding cash equivalents)	% of fund's net assets
Japan	24.6
United Kingdom	12.9
France	7.9
Germany	7.3
Switzerland	6.8

Percentages are adjusted for the effect of open futures contracts, if applicable.

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 92.2%
	Shares		Value (Note 1)
Australia - 1.1%
News Corp. Ltd. sponsored ADR	608,000		$ 15,212,160
Belgium - 0.2%
Fortis	131,300		2,285,824
Canada - 3.3%
Alcan, Inc.	138,300		4,310,716
Canadian Natural Resources Ltd.	137,000		5,463,533
EnCana Corp.	262,300		10,061,515
Precision Drilling Corp. (a)	99,600		3,755,507
Talisman Energy, Inc.	445,300		20,319,001
Tembec, Inc. (a)	200,800		1,214,216
TOTAL CANADA			45,124,488
Cayman Islands - 0.5%
Noble Corp. (a)	186,100		6,383,230
Denmark - 0.7%
Coloplast AS Series B	28,000		2,169,769
Novo Nordisk AS Series B	219,100		7,691,234
TOTAL DENMARK			9,861,003
Finland - 1.5%
Nokia Corp.	1,307,300		21,478,932
France - 7.9%
Alcatel SA sponsored ADR (a)	378,000		3,383,100
Aventis SA (France)	75,730		4,142,431
AXA SA	640,704		9,966,416
BNP Paribas SA	374,102		19,060,291
Credit Agricole SA	113,400		2,160,913
L'Air Liquide SA	17,900		2,660,759
Pechiney SA (a)	94,200		3,390,518
Pernod-Ricard	67,700		6,056,698
Sanofi-Synthelabo SA	53,800		3,159,211
Suez SA (France)	126,000		2,010,759
Television Francaise 1 SA	431,400		13,311,934
Total SA Series B	220,300		33,397,480
Vivendi Universal SA sponsored ADR	355,500		6,555,420
TOTAL FRANCE			109,255,930
Germany - 7.3%
Allianz AG (Reg.)	186,500		15,542,599
Altana AG sponsored ADR	59,900		3,713,800
BASF AG	87,400		3,743,524
Bayer AG	120,900		2,809,142
Deutsche Boerse AG	418,731		22,240,513
Deutsche Telekom AG sponsored ADR	570,300		8,668,560
Infineon Technologies AG (a)	3,417,200		33,129,030
Muenchener Rueckversicherungs-Gesellschaft AG (Reg.)	110,000		11,244,342
TOTAL GERMANY			101,091,510

	Shares		Value (Note 1)
Hong Kong - 1.5%
China Mobile (Hong Kong) Ltd.	1,667,000		$ 3,924,118
CNOOC Ltd.	1,550,500		2,286,492
Hong Kong Exchanges & Clearing Ltd.	2,602,000		3,737,020
Hutchison Whampoa Ltd.	1,411,600		8,598,156
Techtronic Industries Co.	1,336,000		2,244,284
TOTAL HONG KONG			20,790,070
India - 0.8%
Dr. Reddy's Laboratories Ltd.	151,900		3,582,955
Housing Development Finance Corp. Ltd.	213,800		1,884,858
Infosys Technologies Ltd.	17,000		1,195,916
Ranbaxy Laboratories Ltd.	223,600		3,781,350
Satyam Computer Services Ltd.	294,600		1,220,994
TOTAL INDIA			11,666,073
Italy - 1.7%
Banca Intesa Spa	1,077,275		3,454,443
Telecom Italia Spa	1,601,324		14,534,395
Unicredito Italiano Spa	1,144,300		5,467,820
TOTAL ITALY			23,456,658
Japan - 24.6%
Advantest Corp.	138,600		6,160,515
Canon, Inc.	459,000		20,953,350
Credit Saison Co. Ltd.	284,900		4,686,842
Daikin Industries Ltd.	71,000		1,308,004
Daiwa Securities Group, Inc.	7,207,000		41,547,582
Fuji Photo Film Co. Ltd.	82,000		2,377,308
Ito-Yokado Co. Ltd.	569,000		13,667,600
JAFCO Co. Ltd.	199,800		11,351,324
KDDI Corp.	3,372		13,100,343
Konica Corp.	251,000		2,866,714
Kyocera Corp.	122,000		7,002,590
Kyorin Pharmaceutical Co. Ltd.	19,000		260,657
Matsushita Electric Industrial Co. Ltd.	306,000		3,075,300
Mitsubishi Securities Co. Ltd.	247,000		1,502,348
Mitsubishi Tokyo Financial Group, Inc. (MTFG)	1,441		6,599,780
Mizuho Financial Group, Inc. (a)	1,509		1,196,458
Murata Manufacturing Co. Ltd.	104,700		4,128,866
Nikko Cordial Corp.	15,261,000		61,457,117
Nikon Corp. (a)	373,000		3,082,104
Nissan Motor Co. Ltd.	962,300		9,117,793
Nomura Holdings, Inc.	4,341,000		55,273,491
ORIX Corp.	254,000		14,091,069
Rohm Co. Ltd.	101,500		11,100,635
Seiko Epson Corp.	10,300		307,219
Shin-Etsu Chemical Co. Ltd.	177,600		6,083,716
SMC Corp.	15,900		1,343,045
Sony Corp.	224,600		6,288,800
Sumitomo Electric Industries Ltd.	683,000		5,004,520
Sumitomo Mitsui Financial Group, Inc.	3,185		6,971,928
Common Stocks - continued
	Shares		Value (Note 1)
Japan - continued
Tokyo Electron Ltd.	281,000		$ 13,358,593
Toyota Motor Corp.	209,700		5,431,230
TOTAL JAPAN			340,696,841
Korea (South) - 2.1%
Kookmin Bank	25,810		777,540
Samsung Electronics Co. Ltd.	95,810		28,462,382
TOTAL KOREA (SOUTH)			29,239,922
Mexico - 1.3%
Grupo Televisa SA de CV sponsored ADR	268,600		9,266,700
Telefonos de Mexico SA de CV sponsored ADR	188,900		5,935,238
TV Azteca SA de CV sponsored ADR	334,000		2,171,000
TOTAL MEXICO			17,372,938
Netherlands - 5.3%
Akzo Nobel NV	141,800		3,768,237
ASML Holding NV (a)	2,522,400		24,114,157
ING Groep NV (Certificaten Van Aandelen)	1,166,524		20,449,161
Koninklijke Ahold NV (a)	357,900		2,979,382
Koninklijke Philips Electronics NV	312,500		5,971,876
STMicroelectronics NV (NY Shares)	75,500		1,569,645
VNU NV	344,700		10,648,494
Wolters Kluwer NV (Certificaten Van Aandelen)	263,100		3,180,800
TOTAL NETHERLANDS			72,681,752
Portugal - 0.2%
Banco Comercial Portugues SA (Reg.)	1,257,000		2,214,384
Russia - 0.8%
JSC MMC 'Norilsk Nickel' sponsored ADR	114,800		3,974,950
YUKOS Corp. sponsored ADR	123,000		6,844,950
TOTAL RUSSIA			10,819,900
Singapore - 0.5%
Flextronics International Ltd. (a)	732,300		7,608,597
South Africa - 0.3%
Harmony Gold Mining Co. Ltd. sponsored ADR	172,600		2,324,922
Sappi Ltd.	171,000		2,065,726
TOTAL SOUTH AFRICA			4,390,648
Spain - 2.6%
Altadis SA (Spain)	271,800		6,985,056
Banco Popular Espanol SA (Reg.)	164,200		8,318,635
Banco Santander Central Hispano SA	1,476,868		12,974,554
Inditex SA	152,575		3,847,279
Telefonica SA	356,284		4,105,581
TOTAL SPAIN			36,231,105

	Shares		Value (Note 1)
Sweden - 2.1%
Hennes & Mauritz AB (H&M) (B Shares)	100,000		$ 2,304,667
Nordea AB	1,077,600		5,209,970
Securitas AB (B Shares)	208,400		2,140,434
Telefonaktiebolaget LM Ericsson ADR (a)	1,808,800		19,227,544
TOTAL SWEDEN			28,882,615
Switzerland - 6.8%
Compagnie Financiere Richemont unit	130,930		2,122,089
Converium Holding AG	72,080		3,334,073
Credit Suisse Group (Reg.)	950,866		25,087,606
Novartis AG (Reg.)	677,650		26,977,245
Roche Holding AG (participation certificate)	220,010		17,300,224
Swiss Reinsurance Co. (Reg.)	114,517		6,360,643
UBS AG (Reg.)	173,934		9,699,472
Zurich Financial Services AG	20,970		2,506,405
TOTAL SWITZERLAND			93,387,757
Taiwan - 0.3%
Hon Hai Precision Industries Co. Ltd.	437,400		1,588,359
Taiwan Semiconductor Manufacturing Co. Ltd. (a)	1,643,782		2,711,099
TOTAL TAIWAN			4,299,458
United Kingdom - 12.9%
3i Group PLC	824,700		7,712,262
Abbey National PLC	960,800		7,482,212
AstraZeneca PLC (United Kingdom)	470,400		19,178,209
BHP Billiton PLC	821,100		4,335,349
BP PLC	1,673,300		11,718,684
Carlton Communications PLC	915,000		2,294,410
Centrica PLC	877,900		2,553,746
GlaxoSmithKline PLC	1,170,794		23,731,986
HBOS PLC	494,656		6,422,936
HSBC Holdings PLC (United Kingdom) (Reg.)	897,400		10,609,070
Kingfisher PLC	1,449,744		6,652,735
Lloyds TSB Group PLC	497,750		3,544,619
Man Group PLC	353,400		6,995,763
Prudential PLC	1,374,000		8,346,226
Reckitt Benckiser PLC	211,200		3,887,193
Reed Elsevier PLC	477,500		3,985,260
Rio Tinto PLC (Reg.)	408,200		7,811,930
Shire Pharmaceuticals Group PLC sponsored ADR (a)	196,300		3,867,110
Tesco PLC	1,949,778		7,075,581
Vodafone Group PLC	14,790,003		29,062,268
William Hill PLC	189,500		895,473
TOTAL UNITED KINGDOM			178,163,022
United States of America - 5.9%
Baker Hughes, Inc.	197,300		6,623,361
ENSCO International, Inc.	251,800		6,773,420
Common Stocks - continued
	Shares		Value (Note 1)
United States of America - continued
Freeport-McMoRan Copper & Gold, Inc. Class B	138,700		$ 3,398,150
Grant Prideco, Inc. (a)	373,900		4,393,325
Micron Technology, Inc. (a)	508,900		5,918,507
Motorola, Inc.	2,294,400		21,636,192
NTL, Inc. (a)	170,500		5,817,460
Smith International, Inc. (a)	23,900		878,086
Synthes-Stratec, Inc.	7,630		5,494,368
Transocean, Inc.	145,600		3,198,832
Tyco International Ltd.	826,000		15,677,480
Weatherford International Ltd. (a)	50,300		2,107,570
TOTAL UNITED STATES OF AMERICA			81,916,751
TOTAL COMMON STOCKS (Cost $1,192,538,495)		1,274,511,568
Investment Companies - 0.0%

Multi-National - 0.0%
European Warrant Fund, Inc. (Cost $1,867,790)	126,720		250,906
Money Market Funds - 7.7%

Fidelity Cash Central Fund, 1.18% (b)	86,546,907		86,546,907
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	19,136,267		19,136,267
TOTAL MONEY MARKET FUNDS (Cost $105,683,174)		105,683,174
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $1,300,089,459)			1,380,445,648
NET OTHER ASSETS - 0.1%			1,989,057
NET ASSETS - 100%		$ 1,382,434,705

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $439,949,301 and $509,450,883, respectively.

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 $1,325 for the period.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $559,394,000 of which $367,608,000 and $191,786,000 will expire on December 31, 2009 and 2010, respectively.

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

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $18,402,673) (cost $1,300,089,459) - See accompanying schedule		$ 1,380,445,648
Cash		6,898
Foreign currency held at value (cost $23,105,143)		23,056,141
Receivable for investments sold		146,583
Receivable for fund shares sold		6,211,537
Dividends receivable		2,277,638
Interest receivable		55,235
Redemption fees receivable		52
Other receivables		299,227
Total assets		1,412,498,959
Liabilities
Payable for investments purchased	$ 922,175
Payable for fund shares redeemed	8,839,331
Accrued management fee	865,544
Distribution fees payable	36,025
Other payables and accrued expenses	264,912
Collateral on securities loaned, at value	19,136,267
Total liabilities		30,064,254
Net Assets		$ 1,382,434,705
Net Assets consist of:
Paid in capital		$ 1,985,903,310
Undistributed net investment income		7,507,317
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(691,325,538)
Net unrealized appreciation (de- preciation) on investments and assets and liabilities in foreign currencies		80,349,616
Net Assets		$ 1,382,434,705
Initial Class: Net Asset Value, offering price and redemption price per share ($1,053,227,835 ÷ 87,782,326 shares)		$ 12.00
Service Class: Net Asset Value, offering price and redemption price per share ($190,562,947 ÷ 15,932,960 shares)		$ 11.96
Service Class 2: Net Asset Value, offering price and redemption price per share ($81,081,902 ÷ 6,789,004 shares)		$ 11.94
Initial Class R: Net Asset Value, offering price and redemption price per share ($22,702,948 ÷ 1,894,524 shares)		$ 11.98
Service Class R: Net Asset Value, offering price and redemption price per share ($29,817,155 ÷ 2,495,641 shares)		$ 11.95
Service Class 2R: Net Asset Value, offering price and redemption price per share ($5,041,918 ÷ 424,347 shares)		$ 11.88

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 17,838,642
Interest		540,140
Security lending		571,598
		18,950,380
Less foreign taxes withheld		(1,941,369)
Total income		17,009,011

Expenses
Management fee	$ 4,673,426
Transfer agent fees	455,200
Distribution fees	183,770
Accounting and security lending fees	331,104
Non-interested trustees' compensation	2,570
Depreciation in deferred trustee compensation account	(5,311)
Custodian fees and expenses	240,146
Audit	38,342
Legal	1,290
Interest	7,888
Miscellaneous	29,547
Total expenses before reductions	5,957,972
Expense reductions	(228,066)	5,729,906
Net investment income (loss)		11,279,105
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(95,209,723)
Foreign currency transactions	(241,917)
Total net realized gain (loss)		(95,451,640)
Change in net unrealized appreciation (depreciation) on: Investment securities	223,413,736
Assets and liabilities in foreign currencies	189,361
Total change in net unrealized appreciation (depreciation)		223,603,097
Net gain (loss)		128,151,457
Net increase (decrease) in net assets resulting from operations		$ 139,430,562

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

Semiannual Report

Fidelity Variable Insurance Products: Overseas Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 11,279,105	$ 12,214,036
Net realized gain (loss)	(95,451,640)	(174,115,283)
Change in net unrealized appreciation (depreciation)	223,603,097	(167,568,490)
Net increase (decrease) in net assets resulting from operations	139,430,562	(329,469,737)
Distributions to shareholders from net investment income	(11,225,102)	(12,564,381)
Share transactions - net increase (decrease)	(37,679,479)	(152,413,852)
Redemption fees	12,326	102,940
Total increase (decrease) in net assets	90,538,307	(494,345,030)

Net Assets
Beginning of period	1,291,896,398	1,786,241,428
End of period (including undistributed net investment income of $7,507,317 and undistributed net investment income of $5,142,046, respectively)	$ 1,382,434,705	$ 1,291,896,398

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
Shares	Initial Class	Service Class	Service Class 2	Initial Class R	Service Class R	Service Class 2R
Sold	80,264,567	28,729,931	34,523,817	628,568	929,310	277,652
Reinvested	891,621	140,448	26,238	15,499	17,531	2,278
Redeemed	(87,306,164)	(29,142,086)	(32,149,368)	(174,921)	(96,162)	(3,869)
Net increase (decrease)	(6,149,976)	(271,707)	2,400,687	469,146	850,679	276,061
Dollars
Sold	$ 867,955,197	$ 308,701,957	$ 365,448,719	$ 6,593,640	$ 9,771,885	$ 2,921,054
Reinvested	9,156,952	1,438,187	268,410	159,020	179,341	23,192
Redeemed	(951,198,138)	(314,422,120)	(341,701,212)	(1,894,882)	(1,040,087)	(40,594)
Net increase (decrease)	$ (74,085,989)	$ (4,281,976)	$ 24,015,917	$ 4,857,778	$ 8,911,139	$ 2,903,652

Share Transactions	Year ended December 31, 2002
Shares	Initial Class	Service Class	Service Class 2	Initial Class R^A	Service Class R^A	Service Class 2R^A
Sold	155,379,548	83,280,851	56,191,820	1,731,891	1,927,754	148,296
Reinvested	824,761	120,846	30,335	-	-	-
Redeemed	(170,119,744)	(84,583,414)	(55,371,184)	(306,513)	(282,792)	(10)
Net increase (decrease)	(13,915,435)	(1,181,717)	850,971	1,425,378	1,644,962	148,286
Dollars
Sold	$ 1,967,649,782	$ 1,080,032,631	$ 680,275,000	$ 22,005,065	$ 24,459,961	$ 1,672,814
Reinvested	10,622,916	1,552,870	388,594	-	-	-
Redeemed	(2,163,169,922)	(1,102,393,299)	(668,279,318)	(3,557,947)	(3,672,885)	(114)
Net increase (decrease)	$ (184,897,224)	$ (20,807,798)	$ 12,384,276	$ 18,447,118	$ 20,787,076	$ 1,672,700

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2	Initial Class R	Service Class R	Service Class 2R
From net investment income	$ 9,156,952	$ 1,438,187	$ 268,410	$ 159,020	$ 179,341	$ 23,192
From net realized gain	-	-	-	-	-	-
Total	$ 9,156,952	$ 1,438,187	$ 268,410	$ 159,020	$ 179,341	$ 23,192

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Initial Class R^A	Service Class R^A	Service Class 2R^A
From net investment income	$ 10,622,916	$ 1,552,871	$ 388,594	$ -	$ -	$ -
From net realized gain	-	-	-	-	-	-
Total	$ 10,622,916	$ 1,552,871	$ 388,594	$ -	$ -	$ -

^A For the period April 24, 2002 (commencement of sale of shares) to December 31, 2002.

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

Overseas Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.98	$ 13.88	$ 20.00	$ 27.44	$ 20.06	$ 19.20
Income from Investment Operations
Net investment income (loss)^E	.10	.10	.14	.19^F	.24	.23
Net realized and unrealized gain (loss)	1.02	(2.90)	(3.86)	(4.93)	7.95	2.13
Total from investment operations	1.12	(2.80)	(3.72)	(4.74)	8.19	2.36
Distributions from net investment income	(.10)	(.10)	(.93)	(.31)	(.31)	(.38)
Distributions in excess of net investment income	-	-	-	(.06)	-	-
Distributions from net realized gain	-	-	(1.47)	(2.33)	(.50)	(1.12)
Total distributions	(.10)	(.10)	(2.40)	(2.70)	(.81)	(1.50)
Redemption fees added to paid in capital^E,H	-	-	-	-	-	-
Net asset value, end of period	$ 12.00	$ 10.98	$ 13.88	$ 20.00	$ 27.44	$ 20.06
Total Return^B,C,D	10.35%	(20.28)%	(21.21)%	(19.07)%	42.55%	12.81%
Ratios to Average Net Assets^G
Expenses before expense reductions	.91%^A	.90%	.92%	.89%	.91%	.91%
Expenses net of voluntary waivers, if any	.91%^A	.90%	.92%	.89%	.91%	.91%
Expenses net of all reductions	.87%^A	.86%	.87%	.87%	.87%	.89%
Net investment income (loss)	1.80%^A	.79%	.91%	.84%	1.10%	1.19%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,053,228	$ 1,031,489	$ 1,496,873	$ 2,267,507	$ 2,736,851	$ 2,074,843
Portfolio turnover rate	72%^A	77%	98%	136%	78%	84%

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.94	$ 13.83	$ 19.94	$ 27.39	$ 20.04	$ 19.20
Income from Investment Operations
Net investment income (loss)^E	.09	.09	.12	.17^F	.22	.15
Net realized and unrealized gain (loss)	1.02	(2.89)	(3.84)	(4.93)	7.94	2.19
Total from investment operations	1.11	(2.80)	(3.72)	(4.76)	8.16	2.34
Distributions from net investment income	(.09)	(.09)	(.92)	(.30)	(.31)	(.38)
Distributions in excess of net investment income	-	-	-	(.06)	-	-
Distributions from net realized gain	-	-	(1.47)	(2.33)	(.50)	(1.12)
Total distributions	(.09)	(.09)	(2.39)	(2.69)	(.81)	(1.50)
Redemption fees added to paid in capital^E,H	-	-	-	-	-	-
Net asset value, end of period	$ 11.96	$ 10.94	$ 13.83	$ 19.94	$ 27.39	$ 20.04
Total Return^B,C,D	10.28%	(20.34)%	(21.27)%	(19.18)%	42.44%	12.69%
Ratios to Average Net Assets^G
Expenses before expense reductions	1.01%^A	1.00%	1.03%	.99%	1.01%	1.01%
Expenses net of voluntary waivers, if any	1.01%^A	1.00%	1.03%	.99%	1.01%	1.01%
Expenses net of all reductions	.97%^A	.96%	.97%	.97%	.98%	.97%
Net investment income (loss)	1.70%^A	.69%	.81%	.74%	1.00%	.80%
Supplemental Data
Net assets, end of period (000 omitted)	$ 190,563	$ 177,322	$ 240,525	$ 257,257	$ 144,371	$ 34,720
Portfolio turnover rate	72%^A	77%	98%	136%	78%	84%

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.90	$ 13.81	$ 19.91	$ 26.16
Income from Investment Operations
Net investment income (loss)^E	.08	.07	.10	.12^F
Net realized and unrealized gain (loss)	1.02	(2.88)	(3.80)	(3.68)
Total from investment operations	1.10	(2.81)	(3.70)	(3.56)
Distributions from net investment income	(.06)	(.10)	(.93)	(.30)
Distributions in excess of net investment income	-	-	-	(.06)
Distributions from net realized gain	-	-	(1.47)	(2.33)
Total distributions	(.06)	(.10)	(2.40)	(2.69)
Redemption fees added to paid in capital^E,I	-	-	-	-
Net asset value, end of period	$ 11.94	$ 10.90	$ 13.81	$ 19.91
Total Return^B,C,D	10.18%	(20.46)%	(21.20)%	(15.50)%
Ratios to Average Net Assets^H
Expenses before expense reductions	1.17%^A	1.16%	1.18%	1.15%^A
Expenses net of voluntary waivers, if any	1.17%^A	1.16%	1.18%	1.15%^A
Expenses net of all reductions	1.13%^A	1.12%	1.12%	1.13%^A
Net investment income (loss)	1.54%^A	.53%	.65%	.58%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 81,082	$ 47,824	$ 48,843	$ 12,351
Portfolio turnover rate	72%^A	77%	98%	136%

Financial Highlights - Initial Class R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.98	$ 14.05
Income from Investment Operations
Net investment income (loss)^E	.10	.06
Net realized and unrealized gain (loss)	1.01	(3.13)
Total from investment operations	1.11	(3.07)
Distributions from net investment income	(.11)	-
Redemption fees added to paid in capital^E,H	-	-
Net asset value, end of period	$ 11.98	$ 10.98
Total Return^B,C,D	10.28%	(21.85)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.90%^A	.91%^A
Expenses net of voluntary waivers, if any	.90%^A	.91%^A
Expenses net of all reductions	.87%^A	.87%^A
Net investment income (loss)	1.80%^A	.79%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 22,703	$ 15,649
Portfolio turnover rate	72%^A	77%

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

Semiannual Report

Financial Highlights - Service Class R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.94	$ 14.01
Income from Investment Operations
Net investment income (loss)^E	.09	.05
Net realized and unrealized gain (loss)	1.02	(3.12)
Total from investment operations	1.11	(3.07)
Distributions from net investment income	(.10)	-
Redemption fees added to paid in capital^E,H	-	-
Net asset value, end of period	$ 11.95	$ 10.94
Total Return^B,C,D	10.30%	(21.91)%
Ratios to Average Net Assets^G
Expenses before expense reductions	1.00%^A	1.01%^A
Expenses net of voluntary waivers, if any	1.00%^A	1.01%^A
Expenses net of all reductions	.97%^A	.97%^A
Net investment income (loss)	1.70%^A	.69%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 29,817	$ 17,997
Portfolio turnover rate	72%^A	77%

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.90	$ 13.96
Income from Investment Operations
Net investment income (loss)^E	.08	.04
Net realized and unrealized gain (loss)	1.01	(3.10)
Total from investment operations	1.09	(3.06)
Distributions from net investment income	(.11)	-
Redemption fees added to paid in capital^{E, H}	-	-
Net asset value, end of period	$ 11.88	$ 10.90
Total Return^B,C,D	10.17%	(21.92)%
Ratios to Average Net Assets^G
Expenses before expense reductions	1.16%^A	1.17%^A
Expenses net of voluntary waivers, if any	1.16%^A	1.17%^A
Expenses net of all reductions	1.12%^A	1.14%^A
Net investment income (loss)	1.55%^A	.52%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 5,042	$ 1,616
Portfolio turnover rate	72%^A	77%

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

Overseas Portfolio

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

Equity-Income Portfolio, Growth Portfolio, High Income Portfolio, and Overseas Portfolio (the funds) are funds of Variable Insurance Products Fund. Asset Manager Portfolio, Contrafund Portfolio and Index 500 Portfolio (the funds) are funds of Variable Insurance Products Fund II. The Variable Insurance Products Fund and Variable Insurance Products Fund II (the trusts) (referred to in this report as Fidelity Variable Insurance Products) are registered under the Investment Company Act of 1940, as amended (the 1940 Act), as open-end management investment companies organized as Massachusetts business trusts. Each fund is authorized to issue an unlimited number of shares. 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 the following classes of shares: Initial Class shares, Service Class shares and Service Class 2 shares. VIP Equity-Income, VIP Growth and VIP Contrafund Portfolios also offer Service Class 2R shares. VIP Overseas Portfolio also offers Initial Class R, Service Class R, and Service Class 2R 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.

Foreign Currency. Certain funds may use 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.

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 funds are 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. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

Reclassification of Financial Information. As a result of a revision to reflect accretion of market discount using the interest method for the High Income Portfolio, certain amounts for the year ended December 31, 2002, have been reclassified from what was previously reported. Net investment income for the fund decreased by $4,105,765 with a corresponding increase (decrease) to realized and unrealized gain (loss) of $7,408,020 and $(3,302,255) respectively. The reclassification has no impact on the net assets of the fund.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Income Tax Information and Distributions to Shareholders. Each year each fund intends to qualify as a regulated investment company by distributing all of their taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Income dividends and capital gain distributions are declared separately for each class. 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. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), prior period premium and discount on debt securities, defaulted bonds, market discount, contingent interest, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows for each fund:

	Cost for Federal Income Tax Purposes	Unrealized Appreciation	Unrealized Depreciation	Net Unrealized Appreciation/ (Depreciation)
Asset Manager	$ 2,989,144,194	$ 212,641,139	$ (173,192,439)	$ 39,448,700
Contrafund	7,092,646,687	1,527,489,742	(117,030,183)	1,410,459,559
Equity-Income	7,982,621,107	1,703,193,152	(950,439,083)	752,754,069
Growth	7,749,432,530	1,767,464,895	(451,914,509)	1,315,550,386
High Income	1,816,872,680	175,399,585	(69,575,822)	105,823,763
Index 500	2,364,179,105	833,864,733	(377,201,495)	456,663,238
Overseas	1,320,195,948	212,315,773	(152,066,073)	60,249,700

Trading (Redemption) Fees. Initial Class R shares, Service Class R shares and Service Class 2R shares held less than 60 days are subject to a short-term trading fee equal to 1% of the proceeds of the redeemed shares. The fee, which is retained by the applicable fund, is accounted for as an addition to paid in capital.

2. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the funds and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. Certain funds may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).

Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked to market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Operating Policies - continued

Futures Contracts. Certain funds may use futures contracts to manage their 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. The underlying face amount at value of any open futures contracts at period end is shown in each applicable fund's 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 contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. 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. Certain funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included under the captions "Legend" and/or "Other Information" at the end of each applicable fund's Schedule of Investments.

Loans and Other Direct Debt Instruments. Certain funds may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments that obligate the fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. Information regarding loans and other direct debt instruments is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

Swap Agreements. Certain funds may invest in swaps for the purpose of managing their interest rate risk or market exposure. A swap is an agreement to exchange one payment stream for another, for a set period of time.

During the period, Asset Manager Portfolio entered into interest rate swaps. Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The net receivable or payable is accrued daily and is included in interest income in the accompanying Statement of Operations. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact Asset Manager Portfolio. Gains or losses are realized upon early termination of the swap agreement.

During the period, Index 500 Portfolio entered into total return swaps. Total return swaps usually involve commitments to pay interest in exchange for the return of an equity security. Index 500 Portfolio will make periodic payments based on a notional principal amount to the counterparty and will receive payments from the counterparty representing dividends of the underlying security. Payments made and received by Index 500 Portfolio are recorded in the Statement of Operations as income. Gains or losses are realized upon expiration or termination of the swap agreement based on the change in value of the underlying equity security.

Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the fluctuation of interest rates or in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in each applicable fund's Schedule of Investments under the caption "Swap Agreements".

Financing Transactions. To earn additional income, certain funds may employ trading strategies which involve the sale and simultaneous agreement to repurchase similar securities ("mortgage dollar rolls") or the purchase and simultaneous agreement to sell similar securities ("reverse mortgage dollar rolls"). The securities traded are mortgage securities and bear the same interest rate but will be collateralized by different pools of mortgages. During the period between the sale and repurchase in a mortgage dollar roll transaction, a fund will not be entitled to receive interest and principal payments on the securities sold but will invest the proceeds of the sale in other securities which may enhance the yield and total return. In addition, the difference between the sales price and the future purchase price is recorded as an adjustment to investment income. During the period between the purchase and subsequent sale in a reverse mortgage dollar roll transaction a fund is entitled to interest and principal payments on the securities purchased. The price differential between the purchase and sale is recorded as an adjustment to investment income. Losses may arise due to changes in the value of the securities or if the counterparty does not perform under the terms of the agreement. If the counterparty files for bankruptcy or becomes insolvent, the fund's right to repurchase or sell securities may be limited.

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

Semiannual Report

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the funds with investment management related services for which the funds pay a monthly management fee.

For all funds except the Index 500 Portfolio, the management fee is the sum of an individual fund fee rate applied to the average net assets of each fund and a group fee rate. The group fee rates differ for equity and fixed-income funds and are each based upon the average net assets of all the mutual funds advised by FMR. The group fee rates decrease as assets under management increase and increase as assets under management decrease. The annual individual fund fee rate is .45% of the fund's average net assets for High Income and Overseas Portfolios, .30% for Contrafund and Growth Portfolios, .25% for Asset Manager Portfolio, and .20% for Equity-Income Portfolio. The group fee rates averaged .28% for the equity funds and .13% for the fixed-income funds during the period.

For Index 500 Portfolio, FMR receives a fee that is computed at an annual rate of .24% of the fund's average net assets.

For the period each fund's total annualized management fee rate, expressed as a percentage of each fund's average net assets, was as follows:

Asset Manager	.53%
Contrafund	.58%
Equity-Income	.48%
Growth	.58%
High Income	.59%
Index 500	.24%
Overseas	.73%

Sub-Adviser Fee. Prior to January 13, 2003, FMR and Index 500 Portfolio entered into a sub-advisory agreement with Deutsche Asset Management Inc. (DAMI). DAMI is a registered investment advisor and a wholly-owned, indirect subsidiary of Deutsche Bank AG. DAMI received a sub-advisory fee from FMR for providing discretionary investment advisory services to the fund. Effective January 13, 2003, DAMI no longer served as sub-adviser. FMR has assumed responsibility for all investment management decisions. Effective August 4, 2003, Geode Capital Management, LLC (Geode) will serve as sub-adviser for the fund. Geode will provide discretionary investment advisory services to the fund and will be paid by FMR for providing these services.

Prior to January 13, 2003, Deutsche Bank Trust Company Americas (DBTCA), also a wholly-owned, indirect subsidiary of Deutsche Bank AG, was responsible for providing securities lending services. DBTCA retained up to 20% of the annual revenues for providing securities lending services. For the period, DBTCA retained $151. Effective January 13, 2003, the fund has entered into a securities lending agreement under the same terms with Mellon Bank, N.A.

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 and Service Class R's average net assets and .25% of Service Class 2 and Service Class 2 R'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	Service Class 2	Service Class R	Service Class 2R
Asset Manager	$ 13,137	$ 21,357	-	-
Contrafund	$ 604,568	$ 641,849	-	$ 618
Equity-Income	$ 393,406	$ 578,824	-	$ 737
Growth	$ 536,213	$ 352,647	-	$ 329
High Income	$ 156,109	$ 57,012	-	-
Index 500	$ 4,411	$ 43,380	-	-
Overseas	$ 87,478	$ 81,034	$ 11,183	$ 4,075

Transfer Agent Fees. Fidelity Investment Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays a portion of the expenses related to the typesetting, printing and mailing of shareholder reports, except proxy statements.

For the period, each fund's transfer agent fees were equivalent to an annualized rate of .07% of average net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, each class paid FIIOC the following amounts:

Asset Manager
Initial Class	$ 955,884
Service Class	10,498
Service Class 2	7,843
	$ 974,225
Contrafund
Initial Class	$ 2,040,189
Service Class	420,618
Service Class 2	189,465
Service Class 2R	171
	$ 2,650,443
Equity-Income
Initial Class	$ 2,302,677
Service Class	269,551
Service Class 2	170,175
Service Class 2R	206
	$ 2,742,609
Growth
Initial Class	$ 2,382,969
Service Class	371,290
Service Class 2	104,799
Service Class 2R	106
	$ 2,859,164
High Income
Initial Class	$ 460,238
Service Class	109,938
Service Class 2	18,794
	$ 588,970
Index 500
Initial Class	$ 866,528
Service Class	4,052
Service Class 2	14,458
	$ 885,038
Overseas
Initial Class	$ 350,246
Service Class	63,373
Service Class 2	26,334
Initial Class R	6,227
Service Class R	7,837
Service Class 2R	1,183
	$ 455,200

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains each fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses.

Semiannual Report

4. Fees and Other Transactions with Affiliates - continued

Central Funds. The funds may invest in affiliated Central Funds managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR. The Central Funds are open-end investment companies available only to investment companies and other accounts managed by FMR and its affiliates. The Central Funds seek preservation of capital and current income and do not pay a management fee. Income distributions earned by the funds are recorded as income in the accompanying financial statements. Distributions from the Central Funds are noted in the table below:

	Income Distributions
Asset Manager	$ 2,839,218
Contrafund	$ 3,203,284
Equity-Income	$ 171,761
Growth	$ 697,576
High Income	$ 438,314
Index 500	$ 166,828
Overseas	$ 251,001

Brokerage Commissions. Certain funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms are shown under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the funds, 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 funds. Information regarding each applicable fund's participation in the program is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

5. Committed Line of Credit.

Certain funds participate with other funds managed by FMR in a $3.5 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 funds have agreed to pay commitment fees on their pro rata portion of the line of credit. During the period, there were no borrowings on this line of credit.

6. Security Lending.

Certain funds lend portfolio securities from time to time in order to earn additional income. Each applicable 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 funds and any additional required collateral is delivered to the funds 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. Cash collateral is invested in cash equivalents. The value of loaned securities and cash collateral at period end are disclosed on each applicable fund's Statement of Assets and Liabilities.

7. Bank Borrowings.

Each fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. Each fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Information regarding each applicable fund's participation in the program is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

8. Expense Reductions.

FMR agreed to reimburse certain funds to the extent 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.

	Expense Limitations	Reimbursement from adviser

Index 500
Initial Class	.28%	$ 728,262
Service Class	.38%	3,561
Service Class 2	.53%	12,493
		$ 744,316

Many of the brokers with whom FMR places trades on behalf of certain funds provided services to these funds in addition to trade execution. These services included payments of expenses on behalf of each applicable fund. In addition, through arrangements with each applicable fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the fund's expenses. All of the applicable expense reductions are noted in the table below.

	Brokerage Service Arrangement	Custody expense reduction

Asset Manager	$ 398,520	$ 2,286
Contrafund	$ 1,222,024	$ 2,519
Equity Income	$ 477,996	$ 980
Growth	$ 1,413,315	$ -
High Income	$ 10,276	$ 4,596
Index 500	$ -	$ 3,458
Overseas	$ 226,906	$ 1,160

9. Other Information.

At the end of the period, FMR or its affiliates and certain 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 %
Asset Manager	22%	1	19%
Contrafund	15%	2	33%
Equity-Income	11%	1	27%
Growth	12%	2	37%
High Income	19%	2	53%
Index 500	29%	-	-
Overseas	12%	2	40%

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.
Asset Manager, Contrafund, Equity-Income, Growth,
High Income, Index 500, and Overseas Portfolios

Fidelity Investments Money Management, Inc.
Asset Manager Portfolio

Fidelity Management & Research (U.K.) Inc.
Asset Manager, Contrafund, High Income, and
Overseas Portfolios

Fidelity Management & Research (Far East) Inc.
Asset Manager, Contrafund, High Income, and
Overseas Portfolios

Fidelity International Investment Advisors
Overseas Portfolio

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

Fidelity Investments Japan Limited
Asset Manager, Contrafund, High Income, and
Overseas Portfolios

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Custodian

The Bank of New York, New York, NY
High Income Portfolio

JPMorgan Chase Bank, New York, NY
Asset Manager, Equity-Income, and Overseas Portfolios

Brown Brothers Harriman & Co., Boston, MA
Contrafund Portfolio

Mellon Bank, N.A., Pittsburgh, PA
Growth and Index 500 Portfolios

VIPGRP1-SANN-0803
1.790133.100

Fidelity® Variable Insurance Products

Asset Manager: Growth® Portfolio

Balanced Portfolio

Growth & Income Portfolio

Growth Opportunities Portfolio

Investment Grade Bond Portfolio

Mid Cap Portfolio

Money Market Portfolio

Semiannual Report

June 30, 2003

(2_fidelity_logos) (Registered_Trademark)

Asset Manager: Growth Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Balanced Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Growth & Income Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Growth Opportunities Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Investment Grade Bond Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Mid Cap Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Money Market Portfolio	<Click Here>	Investments
	<Click Here>	Financial Statements
Notes to Financial Statements	<Click Here>	Notes to the Financial Statements

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.

Semiannual Report

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 Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC,
Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the funds nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Fidelity Variable Insurance Products: Asset Manager: Growth Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Cardinal Health, Inc.	5.1
Clear Channel Communications, Inc.	3.9
Merck & Co., Inc.	3.5
American International Group, Inc.	3.4
General Electric Co.	3.2
	19.1
Top Five Market Sectors as of June 30, 2003
(stocks only)	% of fund's net assets
Health Care	15.0
Financials	14.4
Consumer Discretionary	9.3
Information Technology	7.5
Consumer Staples	5.9

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks and Equity Futures	72.1%
	Bonds	20.3%
	Short-Term Investments and Net Other Assets	7.6%

* Foreign investments

3.7%

Semiannual Report

Fidelity Variable Insurance Products: Asset Manager: Growth Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 67.5%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 9.3%
Auto Components - 0.0%
Exide Technologies warrants 3/18/06 (a)	5		$ 0
Hotels, Restaurants & Leisure - 0.2%
McDonald's Corp.	37,700		831,662
Media - 6.0%
AOL Time Warner, Inc. (a)	377,300		6,070,757
Clear Channel Communications, Inc. (a)	296,500		12,568,635
McGraw-Hill Companies, Inc.	7,600		471,200
			19,110,592
Specialty Retail - 3.1%
Home Depot, Inc.	269,400		8,922,528
Limited Brands, Inc.	19,500		302,250
Office Depot, Inc. (a)	15,200		220,552
Staples, Inc. (a)	19,000		348,650
			9,793,980
TOTAL CONSUMER DISCRETIONARY			29,736,234
CONSUMER STAPLES - 5.9%
Beverages - 2.0%
PepsiCo, Inc.	69,700		3,101,650
The Coca-Cola Co.	72,700		3,374,007
			6,475,657
Food & Staples Retailing - 1.5%
CVS Corp.	121,600		3,408,448
Safeway, Inc. (a)	63,500		1,299,210
			4,707,658
Food Products - 0.3%
Kraft Foods, Inc. Class A	7,000		227,850
Unilever NV (NY Shares)	15,600		842,400
			1,070,250
Personal Products - 0.8%
Alberto-Culver Co.:
Class A	20,000		995,600
Class B	28,600		1,461,460
			2,457,060
Tobacco - 1.3%
Altria Group, Inc.	88,800		4,035,072
TOTAL CONSUMER STAPLES			18,745,697
ENERGY - 5.2%
Energy Equipment & Services - 2.0%
BJ Services Co. (a)	6,700		250,312
Cooper Cameron Corp. (a)	5,400		272,052
Diamond Offshore Drilling, Inc.	48,500		1,018,015
ENSCO International, Inc.	39,400		1,059,860
GlobalSantaFe Corp.	61,900		1,444,746

	Shares		Value (Note 1)
Grant Prideco, Inc. (a)	10,700		$ 125,725
Nabors Industries Ltd. (a)	12,800		506,240
Rowan Companies, Inc.	12,700		284,480
Transocean, Inc.	61,000		1,340,170
			6,301,600
Oil & Gas - 3.2%
ChevronTexaco Corp.	38,900		2,808,580
ConocoPhillips	99,323		5,442,900
Exxon Mobil Corp.	58,100		2,086,371
			10,337,851
TOTAL ENERGY			16,639,451
FINANCIALS - 14.4%
Capital Markets - 2.9%
Merrill Lynch & Co., Inc.	111,100		5,186,148
Morgan Stanley	96,700		4,133,925
			9,320,073
Commercial Banks - 1.1%
Bank One Corp.	36,300		1,349,634
Synovus Financial Corp.	28,200		606,300
Wachovia Corp.	41,437		1,655,823
			3,611,757
Diversified Financial Services - 3.0%
Citigroup, Inc.	226,500		9,694,200
Insurance - 4.5%
AFLAC, Inc.	13,000		399,750
Allmerica Financial Corp. (a)	31,800		572,082
American International Group, Inc.	195,200		10,771,136
Hartford Financial Services Group, Inc.	36,400		1,833,104
PartnerRe Ltd.	5,200		265,772
Travelers Property Casualty Corp. Class B	20,140		317,608
			14,159,452
Real Estate - 0.1%
Apartment Investment & Management Co. Class A	8,500		294,100
Thrifts & Mortgage Finance - 2.8%
Fannie Mae	128,500		8,666,040
MGIC Investment Corp.	3,800		177,232
			8,843,272
TOTAL FINANCIALS			45,922,854
HEALTH CARE - 15.0%
Health Care Equipment & Supplies - 0.8%
Baxter International, Inc.	95,400		2,480,400
Health Care Providers & Services - 5.1%
Cardinal Health, Inc.	250,750		16,123,213
Pharmaceuticals - 9.1%
Johnson & Johnson	174,900		9,042,330
Merck & Co., Inc.	185,100		11,207,805
Pfizer, Inc.	101,100		3,452,565
Common Stocks - continued
	Shares		Value (Note 1)
HEALTH CARE - continued
Pharmaceuticals - continued
Recordati Spa	5,813		$ 104,218
Schering-Plough Corp.	111,200		2,068,320
Wyeth	71,100		3,238,605
			29,113,843
TOTAL HEALTH CARE			47,717,456
INDUSTRIALS - 5.6%
Aerospace & Defense - 0.2%
United Technologies Corp.	7,300		517,059
Commercial Services & Supplies - 0.3%
Aramark Corp. Class B (a)	9,900		221,958
Avery Dennison Corp.	2,700		135,540
ChoicePoint, Inc. (a)	17,700		611,004
			968,502
Industrial Conglomerates - 4.6%
3M Co.	3,100		399,838
General Electric Co.	357,700		10,258,836
Tyco International Ltd.	202,000		3,833,960
			14,492,634
Machinery - 0.4%
Ingersoll-Rand Co. Ltd. Class A	28,900		1,367,548
Road & Rail - 0.1%
CSX Corp.	5,600		168,504
Union Pacific Corp.	2,900		168,258
			336,762
TOTAL INDUSTRIALS			17,682,505
INFORMATION TECHNOLOGY - 7.5%
Communications Equipment - 1.0%
Cisco Systems, Inc. (a)	35,186		587,254
Comverse Technology, Inc. (a)	56,100		843,183
Motorola, Inc.	198,900		1,875,627
			3,306,064
Computers & Peripherals - 1.8%
Dell Computer Corp. (a)	50,300		1,607,588
Hewlett-Packard Co.	120,200		2,560,260
Sun Microsystems, Inc. (a)	369,900		1,701,540
			5,869,388
Electronic Equipment & Instruments - 0.6%
Celestica, Inc. (sub. vtg.) (a)	18,000		282,060
Flextronics International Ltd. (a)	27,800		288,842
Jabil Circuit, Inc. (a)	12,800		282,880
Sanmina-SCI Corp. (a)	28,700		181,097
Solectron Corp. (a)	143,400		536,316
Thermo Electron Corp. (a)	10,700		224,914
			1,796,109

	Shares		Value (Note 1)
IT Services - 0.5%
Affiliated Computer Services, Inc. Class A (a)	2,700		$ 123,471
First Data Corp.	36,300		1,504,272
			1,627,743
Semiconductors & Semiconductor Equipment - 1.0%
Intel Corp.	36,000		748,224
KLA-Tencor Corp. (a)	10,200		474,198
Lam Research Corp. (a)	20,600		375,126
Linear Technology Corp.	3,100		99,851
Micron Technology, Inc. (a)	17,500		203,525
Novellus Systems, Inc. (a)	10,600		388,183
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	47,300		476,784
United Microelectronics Corp. sponsored ADR (a)	97,980		367,425
Xilinx, Inc. (a)	2,100		53,151
			3,186,467
Software - 2.6%
Activision, Inc. (a)	22,350		288,762
Microsoft Corp.	278,400		7,129,824
VERITAS Software Corp. (a)	24,300		696,681
			8,115,267
TOTAL INFORMATION TECHNOLOGY			23,901,038
MATERIALS - 0.7%
Chemicals - 0.2%
Dow Chemical Co.	21,800		674,928
Metals & Mining - 0.4%
Alcan, Inc.	16,500		514,294
Alcoa, Inc.	30,400		775,200
			1,289,494
Paper & Forest Products - 0.1%
Bowater, Inc.	4,100		153,545
International Paper Co.	3,200		114,336
			267,881
TOTAL MATERIALS			2,232,303
TELECOMMUNICATION SERVICES - 3.3%
Diversified Telecommunication Services - 3.3%
NTL, Inc. (a)	2,250		76,770
Ono Finance PLC rights 5/31/09 (a)(f)	310		3
Qwest Communications International, Inc. (a)	361,700		1,728,926
SBC Communications, Inc.	133,400		3,408,370
Verizon Communications, Inc.	138,400		5,459,880
			10,673,949
UTILITIES - 0.6%
Electric Utilities - 0.5%
FirstEnergy Corp.	29,800		1,145,810
Common Stocks - continued
	Shares		Value (Note 1)
UTILITIES - continued
Electric Utilities - continued
Southern Co.	7,100		$ 221,236
Wisconsin Energy Corp.	8,200		237,800
			1,604,846
Gas Utilities - 0.1%
NiSource, Inc.	10,200		193,800
TOTAL UTILITIES			1,798,646
TOTAL COMMON STOCKS (Cost $218,570,890)		215,050,133
Preferred Stocks - 0.4%

Convertible Preferred Stocks - 0.0%
TELECOMMUNICATION SERVICES - 0.0%
Diversified Telecommunication Services - 0.0%
Cincinnati Bell, Inc. Series B, 6.75%	1,300		53,105
Wireless Telecommunication Services - 0.0%
Digitalglobe, Inc. Series C, 8.5% pay-in-kind	550		413
TOTAL TELECOMMUNICATION SERVICES			53,518
Nonconvertible Preferred Stocks - 0.4%
FINANCIALS - 0.0%
Insurance - 0.0%
American Annuity Group Capital Trust II 8.875%	160		169,120
TELECOMMUNICATION SERVICES - 0.4%
Diversified Telecommunication Services - 0.1%
Broadwing Communications, Inc. Series B, 12.5% pay-in-kind	1,273		267,330
NTL Europe, Inc. Series A, 10%	11		33
			267,363
Wireless Telecommunication Services - 0.3%
Nextel Communications, Inc. Series E, 11.125%	826		879,690
TOTAL TELECOMMUNICATION SERVICES			1,147,053
TOTAL NONCONVERTIBLE PREFERRED STOCKS			1,316,173
TOTAL PREFERRED STOCKS (Cost $2,069,448)		1,369,691

Corporate Bonds - 16.0%
	Principal Amount		Value (Note 1)
Convertible Bonds - 0.9%
CONSUMER DISCRETIONARY - 0.3%
Hotels, Restaurants & Leisure - 0.0%
Hilton Hotels Corp. 3.375% 4/15/23 (f)	$ 240,000		$ 234,600
Media - 0.2%
Interpublic Group of Companies, Inc. 4.5% 3/15/23 (f)	134,000		187,761
Liberty Media Corp. 3.25% 3/15/31	410,000		424,715
			612,476
Specialty Retail - 0.1%
Gap, Inc. 5.75% 3/15/09 (f)	180,000		243,225
TOTAL CONSUMER DISCRETIONARY			1,090,301
FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
IOS Capital LLC 5% 5/1/07 (f)	205,000		200,388
HEALTH CARE - 0.1%
Health Care Providers & Services - 0.1%
Total Renal Care Holdings 7% 5/15/09 (f)	200,000		208,500
INFORMATION TECHNOLOGY - 0.4%
Communications Equipment - 0.2%
Brocade Communications Systems, Inc. 2% 1/1/07	290,000		243,238
CIENA Corp. 3.75% 2/1/08	430,000		361,200
			604,438
Semiconductors & Semiconductor Equipment - 0.2%
Atmel Corp. 0% 5/23/21	530,000		199,386
Micron Technology, Inc. 2.5% 2/1/10 (f)	50,000		60,000
Vitesse Semiconductor Corp. 4% 3/15/05	470,000		441,800
			701,186
TOTAL INFORMATION TECHNOLOGY			1,305,624
TELECOMMUNICATION SERVICES - 0.0%
Wireless Telecommunication Services - 0.0%
Millicom International Cellular SA 2% 6/1/06 pay-in-kind	17,000		38,250
TOTAL CONVERTIBLE BONDS			2,843,063
Nonconvertible Bonds - 15.1%
CONSUMER DISCRETIONARY - 3.9%
Auto Components - 0.2%
Arvin Industries, Inc. 6.75% 3/15/08	100,000		103,500
ArvinMeritor, Inc. 8.75% 3/1/12	155,000		172,050
DaimlerChrysler NA Holding Corp. 7.2% 9/1/09	50,000		56,834
Dana Corp.:
9% 8/15/11	95,000		102,125
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Auto Components - continued
Dana Corp.: - continued
10.125% 3/15/10	$ 190,000		$ 209,000
Lear Corp. 8.11% 5/15/09	40,000		45,800
Stoneridge, Inc. 11.5% 5/1/12	10,000		11,200
United Components, Inc. 9.375% 6/15/13 (f)	50,000		51,500
			752,009
Automobiles - 0.0%
General Motors Corp.:
7.125% 7/15/13	5,000		4,981
8.25% 7/15/23	20,000		19,900
8.375% 7/15/33	25,000		24,928
			49,809
Hotels, Restaurants & Leisure - 1.4%
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	215,000		196,725
10.5% 7/15/11 (f)	180,000		180,900
Domino's, Inc. 8.25% 7/1/11 (f)	70,000		71,925
Florida Panthers Holdings, Inc. 9.875% 4/15/09	410,000		440,750
Herbst Gaming, Inc. 10.75% 9/1/08	60,000		66,150
Hilton Hotels Corp.:
7.625% 12/1/12	150,000		163,875
8.25% 2/15/11	195,000		217,425
Horseshoe Gaming LLC 8.625% 5/15/09	275,000		292,875
Morton's Restaurant Group, Inc. 7.5% 7/1/10 (f)(g)	40,000		34,600
Penn National Gaming, Inc. 8.875% 3/15/10	265,000		280,900
Speedway Motorsports, Inc. 6.75% 6/1/13 (f)	90,000		92,700
Starwood Hotels & Resorts Worldwide, Inc.:
7.375% 5/1/07	265,000		278,250
7.875% 5/1/12	145,000		158,050
Station Casinos, Inc. 8.375% 2/15/08	205,000		220,375
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	360,000		387,900
Town Sports International, Inc. 9.625% 4/15/11 (f)	100,000		104,750
Tricon Global Restaurants, Inc.:
8.5% 4/15/06	80,000		89,600
8.875% 4/15/11	510,000		601,800
Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (f)	60,000		62,400
Wheeling Island Gaming, Inc. 10.125% 12/15/09	90,000		89,325
Wynn Las Vegas LLC/ Wynn Las Vegas Capital Corp. 12% 11/1/10	290,000		319,000
			4,350,275

	Principal Amount		Value (Note 1)
Household Durables - 0.2%
Beazer Homes USA, Inc. 8.625% 5/15/11	$ 120,000		$ 132,600
D.R. Horton, Inc. 8% 2/1/09	200,000		221,000
KB Home 8.625% 12/15/08	180,000		205,200
Standard Pacific Corp. 9.25% 4/15/12	120,000		132,600
			691,400
Leisure Equipment & Products - 0.1%
The Hockey Co. 11.25% 4/15/09	255,000		283,050
Media - 1.8%
AMC Entertainment, Inc. 9.5% 2/1/11	195,000		201,825
American Media Operations, Inc. 10.25% 5/1/09	20,000		21,550
AOL Time Warner, Inc. 7.625% 4/15/31	50,000		57,705
British Sky Broadcasting Group PLC (BSkyB) yankee 8.2% 7/15/09	110,000		130,350
Charter Communications Holdings LLC/Charter Communications Holdings Capital Corp.:
0% 1/15/10 (d)	110,000		63,250
0% 4/1/11 (d)	160,000		104,800
0% 5/15/11 (d)	230,000		115,000
8.625% 4/1/09	335,000		244,550
10% 4/1/09	425,000		327,250
10.75% 10/1/09	385,000		300,300
Cinemark USA, Inc. 9% 2/1/13 (f)	90,000		97,875
Clear Channel Communications, Inc. 7.65% 9/15/10	50,000		60,170
Comcast Corp. 7.05% 3/15/33	30,000		33,319
Corus Entertainment, Inc. 8.75% 3/1/12	260,000		278,850
Cox Communications, Inc. 7.125% 10/1/12	40,000		47,765
CSC Holdings, Inc.:
7.625% 4/1/11	90,000		90,900
7.625% 7/15/18	90,000		89,100
7.875% 2/15/18	35,000		36,225
EchoStar DBS Corp.:
9.125% 1/15/09	400,000		447,000
9.375% 2/1/09	100,000		106,750
10.375% 10/1/07	135,000		149,513
Entravision Communications Corp. 8.125% 3/15/09	275,000		286,688
Houghton Mifflin Co.:
8.25% 2/1/11 (f)	280,000		294,000
9.875% 2/1/13 (f)	110,000		118,800
Lamar Media Corp. 7.25% 1/1/13	80,000		84,400
News America Holdings, Inc. 7.75% 12/1/45	100,000		118,949
Nextmedia Operating, Inc. 10.75% 7/1/11	100,000		112,000
PEI Holdings, Inc. 11% 3/15/10 (f)	165,000		182,325
Penton Media, Inc. 11.875% 10/1/07	40,000		38,000
Radio One, Inc. 8.875% 7/1/11	335,000		371,013
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Media - continued
Regal Cinemas Corp. 9.375% 2/1/12	$ 335,000		$ 370,175
Telewest PLC 11% 10/1/07 (c)	425,000		155,125
Vertis, Inc. 9.75% 4/1/09 (f)	130,000		132,275
Vivendi Universal SA 9.25% 4/15/10 (f)	370,000		418,100
Yell Finance BV 10.75% 8/1/11	25,000		28,313
			5,714,210
Multiline Retail - 0.1%
Barneys, Inc. 9% 4/1/08 unit (f)	170,000		153,000
Specialty Retail - 0.0%
Hollywood Entertainment Corp. 9.625% 3/15/11	70,000		76,300
Textiles Apparel & Luxury Goods - 0.1%
Dan River, Inc. 12.75% 4/15/09 (f)	170,000		153,000
Levi Strauss & Co. 12.25% 12/15/12	100,000		83,000
			236,000
TOTAL CONSUMER DISCRETIONARY			12,306,053
CONSUMER STAPLES - 0.6%
Food & Staples Retailing - 0.1%
Kroger Co. 6.8% 4/1/11	65,000		74,156
The Great Atlantic & Pacific Tea Co. 9.125% 12/15/11	225,000		210,375
			284,531
Food Products - 0.4%
Central Garden & Pet Co. 9.125% 2/1/13	50,000		53,500
Chiquita Brands International, Inc. 10.56% 3/15/09	130,000		140,400
Corn Products International, Inc.:
8.25% 7/15/07	235,000		263,200
8.45% 8/15/09	50,000		56,375
Dean Foods Co.:
6.625% 5/15/09	50,000		53,250
6.9% 10/15/17	40,000		39,600
8.15% 8/1/07	231,000		256,410
Doane Pet Care Co.:
9.75% 5/15/07	190,000		180,500
10.75% 3/1/10	130,000		141,700
Michael Foods, Inc. 11.75% 4/1/11	20,000		23,000
			1,207,935
Personal Products - 0.1%
Revlon Consumer Products Corp. 12% 12/1/05	245,000		238,875

	Principal Amount		Value (Note 1)
Tobacco - 0.0%
Philip Morris Companies, Inc. 7% 7/15/05	$ 70,000		$ 74,244
RJ Reynolds Tobacco Holdings, Inc. 6.5% 6/1/07	10,000		10,018
			84,262
TOTAL CONSUMER STAPLES			1,815,603
ENERGY - 1.1%
Energy Equipment & Services - 0.1%
Grant Prideco, Inc.:
9% 12/15/09	50,000		55,875
9.625% 12/1/07	110,000		124,300
Key Energy Services, Inc. 8.375% 3/1/08	100,000		108,000
Kinder Morgan, Inc. 6.5% 9/1/12	25,000		28,657
SESI LLC 8.875% 5/15/11	30,000		32,250
			349,082
Oil & Gas - 1.0%
Chesapeake Energy Corp.:
8.125% 4/1/11	75,000		80,625
8.5% 3/15/12	175,000		185,063
Encore Acquisition Co. 8.375% 6/15/12	245,000		262,150
Forest Oil Corp. 8% 12/15/11	120,000		129,000
General Maritime Corp. 10% 3/15/13 (f)	220,000		240,900
GulfTerra Energy Partners LP/GulfTerra Energy Finance Corp. 10.625% 12/1/12	60,000		69,600
Pemex Project Funding Master Trust 6.125% 8/15/08 (f)	50,000		53,500
Petro-Canada yankee 7% 11/15/28	50,000		58,756
Plains All American Pipeline LP 7.75% 10/15/12	120,000		133,800
Plains Exploration & Production Co. LP 8.75% 7/1/12	265,000		283,550
Teekay Shipping Corp. 8.875% 7/15/11	505,000		553,606
The Coastal Corp.:
6.375% 2/1/09	65,000		56,875
6.5% 5/15/06	162,000		151,470
6.5% 6/1/08	75,000		67,125
6.95% 6/1/28	15,000		11,925
7.5% 8/15/06	530,000		511,450
7.75% 6/15/10	230,000		214,475
7.75% 10/15/35	55,000		46,200
9.625% 5/15/12	55,000		55,138
Vintage Petroleum, Inc. 8.25% 5/1/12	90,000		97,875
			3,263,083
TOTAL ENERGY			3,612,165
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - 2.2%
Capital Markets - 0.1%
Amvescap PLC yankee 5.9% 1/15/07	$ 25,000		$ 27,283
Credit Suisse First Boston (USA), Inc. 6.5% 1/15/12	20,000		22,951
Goldman Sachs Group, Inc. 6.6% 1/15/12	125,000		145,248
J.P. Morgan Chase & Co. 5.35% 3/1/07	50,000		54,750
Merrill Lynch & Co., Inc. 4% 11/15/07	100,000		103,853
Morgan Stanley:
5.3% 3/1/13	25,000		26,571
6.6% 4/1/12	40,000		46,215
			426,871
Commercial Banks - 0.1%
Bank of America Corp. 4.875% 1/15/13	70,000		73,843
Bank One NA, Chicago 3.7% 1/15/08	50,000		51,990
Fleet Financial Group, Inc. 7.125% 4/15/06	40,000		44,850
Popular North America, Inc. 4.25% 4/1/08	50,000		52,034
			222,717
Consumer Finance - 0.2%
American General Finance Corp.:
2.75% 6/15/08	5,000		4,932
5.875% 7/14/06	95,000		104,825
Capital One Bank:
4.875% 5/15/08	50,000		51,025
6.5% 6/13/13	30,000		29,694
Ford Motor Credit Co. 7.25% 10/25/11	125,000		128,509
General Motors Acceptance Corp.:
4.5% 7/15/06	5,000		5,032
6.125% 2/1/07	5,000		5,225
6.125% 8/28/07	5,000		5,196
6.75% 1/15/06	25,000		26,541
6.875% 9/15/11	60,000		60,200
Household Finance Corp.:
6.375% 10/15/11	15,000		17,056
6.375% 11/27/12	50,000		56,956
7% 5/15/12	5,000		5,918
Household International, Inc. 8.875% 2/15/08	25,000		29,045
MBNA America Bank NA 6.625% 6/15/12	30,000		33,877
MBNA Corp. 7.5% 3/15/12	45,000		53,339
			617,370

	Principal Amount		Value (Note 1)
Diversified Financial Services - 1.4%
Ahold Finance USA, Inc.:
6.25% 5/1/09	$ 165,000		$ 153,450
8.25% 7/15/10	325,000		328,250
American Airlines, Inc. pass thru trust certificates 7.8% 4/1/08	70,000		49,000
Arch Western Finance LLC 6.75% 7/1/13 (f)	255,000		260,100
Chukchansi Economic Development Authority 14.5% 6/15/09 (f)	125,000		137,500
CIT Group, Inc. 7.75% 4/2/12	20,000		23,847
Continental Airlines, Inc. pass thru trust certificates:
6.795% 8/2/18	175,162		136,626
6.9% 1/2/17	47,547		36,136
8.312% 10/2/12	69,183		54,655
8.388% 5/1/22	8,843		6,897
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	30,000		25,200
7.57% 11/18/10	55,000		56,571
7.711% 9/18/11	15,000		12,600
7.779% 11/18/05	70,000		60,200
7.92% 5/18/12	275,000		237,544
10.06% 1/2/16	80,000		62,400
Details Capital Corp. 12.5% 11/15/07 (c)	85,000		850
Deutsche Telekom International Finance BV 8.75% 6/15/30	75,000		95,557
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp. 8.5% 6/1/11	230,000		246,100
Entercom Radio LLC/Entercom Capital, Inc. 7.625% 3/1/14	30,000		32,850
FIMEP SA 10.5% 2/15/13 (f)	370,000		414,400
Fresenius Medical Care Capital Trust IV 7.875% 6/15/11	30,000		31,500
Gemstone Investor Ltd./Gemstone Investor, Inc. 7.71% 10/31/04 (f)	60,000		59,400
Huntsman Advanced Materials LLC:
9.1% 7/15/08 (f)(i)	80,000		80,800
11% 7/15/10 (f)	60,000		62,400
IOS Capital LLC 7.25% 6/30/08	130,000		128,050
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10 (f)	30,000		30,900
NiSource Finance Corp. 7.875% 11/15/10	80,000		94,456
Northwest Airlines, Inc. pass thru trust certificates:
7.248% 7/2/14	128,622		77,173
7.691% 4/1/17	19,471		15,382
7.95% 9/1/16	18,672		14,937
8.304% 9/1/10	102,729		82,183
Pemex Project Funding Master Trust 7.875% 2/1/09 (i)	100,000		114,250
Petronas Capital Ltd. 7% 5/22/12 (f)	105,000		121,462
Sprint Capital Corp. 6.875% 11/15/28	75,000		75,243
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
TRW Automotive Acquisition Corp.:
9.375% 2/15/13 (f)	$ 135,000		$ 146,813
11% 2/15/13 (f)	275,000		301,125
U.S. Airways pass thru trust certificates 6.85% 7/30/19	57,748		54,283
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10 (f)	460,000		506,000
Verizon Wireless Capital LLC 5.375% 12/15/06	30,000		32,950
			4,460,040
Insurance - 0.0%
Principal Life Global Funding I 6.25% 2/15/12 (f)	25,000		28,280
Travelers Property Casualty Corp. 6.375% 3/15/33	15,000		16,394
			44,674
Real Estate - 0.3%
Boston Properties, Inc. 6.25% 1/15/13	30,000		32,852
CenterPoint Properties Trust 6.75% 4/1/05	100,000		106,805
Crescent Real Estate Equities LP/Crescent Finance Co. 9.25% 4/15/09	320,000		342,400
Duke Realty LP New 6.875% 3/15/05	100,000		107,237
EOP Operating LP 7.75% 11/15/07	50,000		58,562
Regency Centers LP 6.75% 1/15/12	45,000		51,146
Senior Housing Properties Trust 8.625% 1/15/12	245,000		259,700
			958,702
Thrifts & Mortgage Finance - 0.1%
Countrywide Home Loans, Inc. 5.5% 8/1/06	80,000		87,437
Washington Mutual, Inc. 5.625% 1/15/07	50,000		55,110
			142,547
TOTAL FINANCIALS			6,872,921
HEALTH CARE - 0.7%
Health Care Equipment & Supplies - 0.0%
Fisher Scientific International, Inc. 8.125% 5/1/12	140,000		149,800
Health Care Providers & Services - 0.5%
AmeriPath, Inc. 10.5% 4/1/13 (f)	390,000		417,300
Fountain View, Inc. 11.25% 4/15/08 (c)	460,000		391,000
PacifiCare Health Systems, Inc. 10.75% 6/1/09	205,000		234,213
Psychiatric Solutions, Inc. 10.625% 6/15/13 (f)	40,000		41,100

	Principal Amount		Value (Note 1)
Tenet Healthcare Corp.:
5.375% 11/15/06	$ 35,000		$ 33,600
6.375% 12/1/11	70,000		64,750
6.5% 6/1/12	85,000		78,625
7.375% 2/1/13	130,000		125,450
Triad Hospitals, Inc. 8.75% 5/1/09	205,000		219,350
			1,605,388
Pharmaceuticals - 0.2%
aaiPharma, Inc. 11% 4/1/10	125,000		137,500
Biovail Corp. yankee 7.875% 4/1/10	320,000		338,400
			475,900
TOTAL HEALTH CARE			2,231,088
INDUSTRIALS - 1.4%
Aerospace & Defense - 0.3%
Alliant Techsystems, Inc. 8.5% 5/15/11	395,000		431,538
BE Aerospace, Inc.:
8% 3/1/08	40,000		31,200
8.875% 5/1/11	130,000		101,400
9.5% 11/1/08	150,000		120,000
Raytheon Co. 6.75% 8/15/07	125,000		141,493
Transdigm, Inc. 10.375% 12/1/08	120,000		129,600
Vought Aircraft Industries, Inc. 8% 7/15/11 (f)	90,000		90,900
			1,046,131
Airlines - 0.1%
Delta Air Lines, Inc.:
equipment trust certificates 8.54% 1/2/07	48,308		37,680
7.9% 12/15/09	30,000		23,700
8.3% 12/15/29	190,000		135,850
NWA Trust 10.23% 6/21/14	59,815		47,852
			245,082
Building Products - 0.0%
Jacuzzi Brands, Inc. 9.625% 7/1/10 (f)(g)	50,000		50,000
Commercial Services & Supplies - 0.4%
Allied Waste North America, Inc.:
7.625% 1/1/06	85,000		87,975
7.875% 1/1/09	40,000		41,800
8.875% 4/1/08	390,000		422,175
American Color Graphics, Inc.:
10% 6/15/10 (f)(g)	140,000		140,700
12.75% 8/1/05	210,000		211,050
Browning-Ferris Industries, Inc. 6.375% 1/15/08	220,000		215,600
Danka Business Systems PLC 11% 6/15/10 (f)	180,000		177,300
Pierce Leahy Command Co. yankee 8.125% 5/15/08	55,000		56,788
World Color Press, Inc. 8.375% 11/15/08	30,000		31,500
Worldspan LP 9.625% 6/15/11 (f)	40,000		41,200
			1,426,088
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Industrial Conglomerates - 0.1%
Tyco International Group SA yankee:
6.125% 11/1/08	$ 15,000		$ 15,675
6.375% 10/15/11	235,000		247,925
6.75% 2/15/11	100,000		106,000
			369,600
Machinery - 0.1%
AGCO Corp. 9.5% 5/1/08	60,000		66,000
Cummins, Inc. 9.5% 12/1/10 (f)	80,000		90,000
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	55,000		59,400
			215,400
Marine - 0.1%
Transport Maritima Mexicana SA de CV yankee:
9.5% 8/15/03 (c)	170,000		138,550
10.25% 11/15/06 (c)	320,000		252,800
			391,350
Road & Rail - 0.3%
Kansas City Southern Railway Co.:
7.5% 6/15/09	290,000		297,250
9.5% 10/1/08	40,000		43,200
TFM SA de CV yankee 11.75% 6/15/09	560,000		569,800
			910,250
TOTAL INDUSTRIALS			4,653,901
INFORMATION TECHNOLOGY - 0.8%
Communications Equipment - 0.5%
Motorola, Inc. 6.5% 11/15/28	25,000		25,375
Nortel Networks Corp. 6.125% 2/15/06	145,000		139,925
Qwest Services Corp.:
13.5% 12/15/10 (f)	800,000		904,000
14% 12/15/14 (f)	415,000		483,475
			1,552,775
Computers & Peripherals - 0.1%
Seagate Technology HDD Holdings 8% 5/15/09	180,000		194,400
Electronic Equipment & Instruments - 0.0%
Flextronics International Ltd. yankee 9.875% 7/1/10	10,000		10,925
IT Services - 0.0%
Digitalnet, Inc. 9% 7/15/10 (f)	60,000		60,000
Electronic Data Systems Corp. 6% 8/1/13 (f)	35,000		34,173
Iron Mountain, Inc. 8.625% 4/1/13	10,000		10,700
			104,873

	Principal Amount		Value (Note 1)
Office Electronics - 0.1%
Xerox Corp.:
7.125% 6/15/10	$ 180,000		$ 180,450
7.625% 6/15/13	180,000		180,450
			360,900
Semiconductors & Semiconductor Equipment - 0.1%
AMI Semiconductor, Inc. 10.75% 2/1/13 (f)	140,000		158,200
ON Semiconductor Corp./Semiconductor Components Industries LLC 12% 3/15/10	130,000		141,700
			299,900
TOTAL INFORMATION TECHNOLOGY			2,523,773
MATERIALS - 1.1%
Chemicals - 0.3%
Avecia Group PLC 11% 7/1/09	340,000		306,000
Compass Minerals Group, Inc. 10% 8/15/11	250,000		277,500
Geon Co. 6.875% 12/15/05	25,000		23,250
Lyondell Chemical Co. 9.875% 5/1/07	80,000		78,000
PolyOne Corp.:
8.875% 5/1/12	120,000		106,800
10.625% 5/15/10 (f)	50,000		48,500
			840,050
Containers & Packaging - 0.4%
BWAY Corp. 10% 10/15/10 (f)	60,000		61,200
Crown Cork & Seal, Inc.:
7.375% 12/15/26	115,000		87,975
8% 4/15/23	80,000		64,000
Crown European Holdings SA 9.5% 3/1/11 (f)	130,000		140,400
Owens-Brockway Glass Container, Inc.:
8.75% 11/15/12	145,000		157,325
8.875% 2/15/09	435,000		470,888
Owens-Illinois, Inc.:
7.15% 5/15/05	170,000		172,975
7.5% 5/15/10	70,000		68,600
7.8% 5/15/18	30,000		28,200
8.1% 5/15/07	150,000		153,750
Sealed Air Corp.:
5.625% 7/15/13 (f)	5,000		5,047
6.875% 7/15/33 (f)	15,000		15,290
			1,425,650
Metals & Mining - 0.2%
Falconbridge Ltd. yankee 7.35% 6/5/12	50,000		56,338
Luscar Coal Ltd. 9.75% 10/15/11	125,000		142,500
Phelps Dodge Corp. 9.5% 6/1/31	240,000		287,352
Salt Holdings Corp., Inc. 0% 12/15/12 (d)(f)	230,000		155,825
Steel Dynamics, Inc. 9.5% 3/15/09	35,000		36,750
			678,765
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
MATERIALS - continued
Paper & Forest Products - 0.2%
Norske Skog Canada Ltd. 8.625% 6/15/11	$ 40,000		$ 41,800
Stone Container Corp.:
8.375% 7/1/12	170,000		180,200
9.75% 2/1/11	205,000		223,450
Weyerhaeuser Co. 6.75% 3/15/12	25,000		28,380
			473,830
TOTAL MATERIALS			3,418,295
TELECOMMUNICATION SERVICES - 1.2%
Diversified Telecommunication Services - 0.6%
AT&T Corp. 7.8% 11/15/11	25,000		28,578
Citizens Communications Co. 8.5% 5/15/06	45,000		52,192
France Telecom SA:
9.25% 3/1/11 (e)	25,000		31,464
10% 3/1/31 (e)	50,000		69,187
Mobifon Holdings BV 12.5% 7/31/10 (f)	220,000		227,700
NTL, Inc. 19% 1/1/10 (f)	300,000		303,000
Qwest Communications International, Inc. 7.25% 11/1/08	140,000		127,400
Qwest Corp. 8.875% 3/15/12 (f)	310,000		346,425
Telecomunicaciones de Puerto Rico, Inc. 6.65% 5/15/06	55,000		60,840
Telewest Communications PLC yankee:
0% 2/1/10 (c)(d)	315,000		88,200
9.875% 2/1/10 (c)	220,000		77,000
11.25% 11/1/08 (c)	260,000		94,250
TELUS Corp. yankee 8% 6/1/11	100,000		115,500
U.S. West Communications:
7.2% 11/10/26	55,000		52,800
7.25% 9/15/25	60,000		56,400
Verizon New York, Inc. 6.875% 4/1/12	50,000		58,858
WorldCom, Inc.:
6.4% 8/15/05 (c)	230,000		69,000
7.5% 5/15/11	435,000		130,500
			1,989,294
Wireless Telecommunication Services - 0.6%
AT&T Wireless Services, Inc. 8.75% 3/1/31	60,000		74,164
Centennial Cellular Operating Co./Centennial Communications Corp. 10.125% 6/15/13 (f)	70,000		69,650
Crown Castle International Corp.:
9.5% 8/1/11	35,000		36,050
10.75% 8/1/11	110,000		118,250
DirecTV Holdings LLC/DirecTV Financing, Inc. 8.375% 3/15/13 (f)	330,000		367,125
Millicom International Cellular SA 11% 6/1/06 (f)	158,000		156,025

	Principal Amount		Value (Note 1)
Nextel Communications, Inc.:
9.375% 11/15/09	$ 30,000		$ 32,175
9.5% 2/1/11	65,000		72,150
9.75% 10/31/07	625,000		650,000
Rogers Wireless, Inc. 9.625% 5/1/11	320,000		361,600
			1,937,189
TOTAL TELECOMMUNICATION SERVICES			3,926,483
UTILITIES - 2.1%
Electric Utilities - 0.9%
AES Drax Holdings Ltd. 10.41% 12/31/20	315,000		198,450
CMS Energy Corp.:
7.5% 1/15/09	160,000		157,600
8.375% 7/1/03	305,000		305,000
8.9% 7/15/08	30,000		31,200
9.875% 10/15/07	205,000		218,325
Dominion Resources, Inc. 6.25% 6/30/12	35,000		39,627
DTE Energy Co. 7.05% 6/1/11	15,000		17,543
Duke Capital Corp. 6.75% 2/15/32	55,000		55,439
FirstEnergy Corp. 6.45% 11/15/11	65,000		71,328
Illinois Power Co.:
7.5% 6/15/09	60,000		60,600
11.5% 12/15/10 (f)	225,000		256,500
Nevada Power Co. 10.875% 10/15/09	50,000		56,250
Pacific Gas & Electric Co.:
7.05% 3/1/24	55,000		56,100
10% 11/1/05 (f)(i)	430,000		442,900
PG&E Corp. 6.875% 7/15/08 (f)	100,000		103,750
PSI Energy, Inc. 6.65% 6/15/06	75,000		82,457
Public Service Co. of Colorado 7.875% 10/1/12	25,000		31,474
Sierra Pacific Power Co. 8% 6/1/08	205,000		211,150
Southern California Edison Co.:
7.125% 7/15/25	20,000		20,200
7.25% 3/1/26	50,000		50,625
7.625% 1/15/10	120,000		127,800
8% 2/15/07 (f)	230,000		253,000
TECO Energy, Inc. 7% 5/1/12	20,000		19,500
			2,866,818
Gas Utilities - 0.6%
ANR Pipeline, Inc. 8.875% 3/15/10 (f)	70,000		76,650
CMS Panhandle Holding Co. 6.5% 7/15/09	175,000		192,938
Consolidated Natural Gas Co. 6.85% 4/15/11	25,000		29,712
El Paso Energy Corp.:
6.75% 5/15/09	200,000		183,000
6.95% 12/15/07	130,000		121,550
7.375% 12/15/12	10,000		8,950
7.8% 8/1/31	70,000		57,750
8.05% 10/15/30	40,000		34,600
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
UTILITIES - continued
Gas Utilities - continued
Kinder Morgan Energy Partners LP 7.3% 8/15/33	$ 50,000		$ 60,043
Northwest Pipeline Corp.:
6.625% 12/1/07	80,000		82,400
8.125% 3/1/10	70,000		75,600
Panhandle Eastern Pipe Line Co.:
7.2% 8/15/24	30,000		30,600
8.25% 4/1/10	70,000		83,475
Southern Natural Gas Co.:
7.35% 2/15/31	310,000		313,100
8% 3/1/32	10,000		10,600
8.875% 3/15/10 (f)	90,000		98,550
Tennessee Gas Pipeline Co. 7% 10/15/28	20,000		19,025
Transcontinental Gas Pipe Line Corp.:
6.125% 1/15/05	100,000		100,000
6.25% 1/15/08	215,000		213,925
8.875% 7/15/12	105,000		118,388
Williams Holdings of Delaware, Inc. 6.25% 2/1/06	40,000		39,200
			1,950,056
Multi-Utilities & Unregulated Power - 0.6%
AES Corp.:
8.75% 5/15/13 (f)	340,000		353,600
8.875% 2/15/11	46,000		44,850
9.375% 9/15/10	46,000		46,230
9.5% 6/1/09	18,000		18,090
El Paso Corp. 7.875% 6/15/12 (f)	290,000		268,613
Western Resources, Inc.:
7.125% 8/1/09	50,000		50,500
9.75% 5/1/07	180,000		201,600
Williams Companies, Inc.:
6.5% 8/1/06	140,000		137,200
6.75% 1/15/06	180,000		175,950
7.125% 9/1/11	190,000		185,250
7.5% 1/15/31	10,000		9,450
7.625% 7/15/19	180,000		174,600
8.125% 3/15/12	195,000		199,875
9.25% 3/15/04	160,000		164,000
			2,029,808
TOTAL UTILITIES			6,846,682
TOTAL NONCONVERTIBLE BONDS			48,206,964
TOTAL CORPORATE BONDS (Cost $46,748,351)		51,050,027
U.S. Government and Government Agency Obligations - 1.3%
	Principal Amount		Value (Note 1)
U.S. Government Agency Obligations - 0.2%
Fannie Mae:
2.5% 6/15/08	$ 410,000		$ 408,034
6.25% 2/1/11	130,000		149,919
Federal Home Loan Bank 2.625% 7/15/08	75,000		74,891
Freddie Mac 5.875% 3/21/11	205,000		230,598
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			863,442
U.S. Treasury Obligations - 1.1%
U.S. Treasury Bills, yield at date of purchase 0.78% to 1.1% 7/3/03 to 9/11/03 (h)	900,000		899,601
U.S. Treasury Bonds:
6.25% 5/15/30	395,000		491,744
6.625% 2/15/27	50,000		64,350
8% 11/15/21	364,000		527,331
U.S. Treasury Notes:
1.625% 3/31/05	1,295,000		1,303,903
6.5% 2/15/10	150,000		181,975
TOTAL U.S. TREASURY OBLIGATIONS			3,468,904
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $4,176,448)		4,332,346
U.S. Government Agency - Mortgage Securities - 2.4%

Fannie Mae - 2.1%
5% 7/1/18 (g)	1,140,000		1,177,050
5.5% 7/1/33 (g)	500,000		516,719
5.5% 7/1/33 (g)	500,000		516,719
5.5% 7/1/33 (g)	250,000		258,359
5.5% 7/1/33 (g)	100,000		103,344
6% 4/1/13 to 2/1/17	1,089,799		1,138,426
6% 7/1/33 (g)	52,729		54,772
6.5% 4/1/16 to 4/1/33	2,300,533		2,404,507
6.5% 7/1/18 (g)	205,000		216,211
6.5% 7/1/18 (g)	25,000		26,367
7.5% 5/1/24 to 2/1/28	123,128		131,485
TOTAL FANNIE MAE			6,543,959
Freddie Mac - 0.0%
7.5% 8/1/28	24,305		25,974
Government National Mortgage Association - 0.3%
6.5% 8/15/27	229,914		242,243
7% 7/15/28 to 7/15/32	409,118		432,475
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value (Note 1)
Government National Mortgage Association - continued
7.5% 1/15/26 to 8/15/28	$ 205,291		$ 218,491
8.5% 11/15/30	54,844		59,096
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			952,305
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $7,377,728)		7,522,238
Asset-Backed Securities - 0.1%

DaimlerChrysler Auto Trust Series 2001-A Class A3, 5.16% 1/6/05	62,950		63,442
Ford Credit Auto Owner Trust Series 2001-B Class B, 5.71% 9/15/05	35,000		36,392
Household Private Label Credit Card Master Note Trust I Series 2002-1 Class A, 5.5% 1/18/11	125,000		136,675
Sears Credit Account Master Trust II Series 2000-1 Class B, 7.5% 11/15/07	50,000		51,016
TOTAL ASSET-BACKED SECURITIES (Cost $273,050)		287,525
Collateralized Mortgage Obligations - 0.1%

U.S. Government Agency - 0.1%
Fannie Mae planned amortization class:
Series 1999-54 Class PH, 6.5% 11/18/29	100,000		107,457
Series 1999-57 Class PH, 6.5% 12/25/29	100,000		106,791
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $182,089)		214,248
Commercial Mortgage Securities - 0.5%

Asset Securitization Corp. sequential pay Series 1995-MD4 Class A1, 7.1% 8/13/29	122,790		133,741
CBM Funding Corp. sequential pay Series 1996-1:
Class A3PI, 7.08% 11/1/07	83,530		91,200
Class B, 7.48% 2/1/08	80,000		91,633
CS First Boston Mortgage Securities Corp. Series 1998-C1 Class D, 7.17% 5/17/40	15,000		16,431
Deutsche Mortgage & Asset Receiving Corp. sequential pay Series 1998-C1 Class D, 7.231% 6/15/31	140,000		147,476
First Chicago/Lennar Trust I Series 1997-CHL1 Class E, 7.9752% 4/29/39 (f)(i)	320,000		280,850

	Principal Amount		Value (Note 1)
FMAC Loan Receivables Trust weighted average coupon Series 1997-A Class E, 0% 4/15/19 (c)(f)(i)	$ 250,000		$ 0
GS Mortgage Securities Corp. II Series 1998-GLII Class E, 7.1904% 4/13/31 (i)	45,000		44,381
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A Class B, 4.13% 11/20/37 (f)	100,000		99,563
LTC Commercial Mortgage pass thru certificates:
sequential pay Series 1998-1 Class A, 6.029% 5/28/30 (f)	57,929		58,218
Series 1996-1 Class E, 9.16% 4/15/28	500,000		353,535
Structured Asset Securities Corp. Series 1996-CFL Class E, 7.75% 2/25/28	7,481		7,470
Thirteen Affiliates of General Growth Properties, Inc. Series 1:
Class D2, 6.992% 11/15/07 (f)	140,000		157,932
Class E2, 7.224% 11/15/07 (f)	100,000		111,849
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $1,886,736)		1,594,279
Municipal Securities - 0.0%

Illinois Gen. Oblig. 5.1% 6/1/33 (Cost $40,000)	40,000		39,335
Foreign Government and Government Agency Obligations - 0.1%

Chilean Republic:
5.5% 1/15/13	25,000		26,450
6.875% 4/28/09	50,000		57,525
7.125% 1/11/12	40,000		46,650
Polish Government 6.25% 7/3/12	50,000		57,875
State of Israel 4.625% 6/15/13	30,000		29,456
United Mexican States 4.625% 10/8/08	35,000		35,735
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $228,879)		253,691
Floating Rate Loans - 0.2%

FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
Olympus Cable Holdings LLC Tranche B term loan 6% 9/30/10 (i)	355,000		315,950
UTILITIES - 0.1%
Electric Utilities - 0.1%
Centerpoint Energy House Electric LLC term loan 12.75% 11/11/05 (i)	130,000		150,800
Floating Rate Loans - continued
	Principal Amount		Value (Note 1)
UTILITIES - continued
Electric Utilities - continued
CMS Energy Corp.:
Tranche B term loan 7.5% 4/30/04 (i)	$ 34,926		$ 35,013
Tranche C term loan 9% 9/30/04 (i)	62,162		62,628
			248,441
TOTAL FLOATING RATE LOANS (Cost $513,602)		564,391

Money Market Funds - 12.3%
	Shares
Fidelity Cash Central Fund, 1.18% (b) (Cost $39,094,904)	39,094,904		39,094,904
TOTAL INVESTMENT PORTFOLIO - 100.9% (Cost $321,162,125)			321,372,808
NET OTHER ASSETS - (0.9)%			(2,955,349)
NET ASSETS - 100%		$ 318,417,459

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Gain/(Loss)
Purchased
Equity Index Contracts
59 S&P 500 Index Contracts	Sept. 2003	$ 14,356,175	$ (320,988)

The face value of futures purchased as a percentage of net assets - 4.5%

Swap Agreements
		Notional Amount	Unrealized Appreciation/(Depreciation)
Interest Rate Swap
Receive quarterly a fixed rate equal to 3% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	April 2007	$ 500,000	$ 13,394

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(e) Debt obligation initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(h) 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 $899,601.

(i) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

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	3.8%
AAA,AA,A	0.8%
BBB	1.2%
BB	4.1%
B	7.5%
CCC,CC,C	2.6%
D	0.0%
Not Rated	0.7%
Equities	72.4%
Short-Term Investments and Net Other Assets	6.9%

The fund invested in loans and loan participations, trade claims or other receivables. At period end the value of these investments amounted to $564,391 or 0.2% of net assets.

Purchases and sales of securities, other than short-term securities, aggregated $91,095,567 and $119,644,253, respectively, of which long-term U.S. government and government agency obligations aggregated $14,763,198 and $17,105,993, respectively.

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 $6,841 for the period.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $65,872,000 of which $54,731,000 and $11,141,000 will expire on December 31, 2009 and 2010, respectively.

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

Asset Manager: Growth Portfolio

Fidelity Variable Insurance Products: Asset Manager: Growth Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (cost $321,162,125) - See accompanying schedule		$ 321,372,808
Cash		29,957
Receivable for investments sold		1,801,361
Receivable for fund shares sold		97,149
Dividends receivable		277,501
Interest receivable		1,091,334
Unrealized gain on swap agreements		13,394
Other receivables		62,476
Total assets		324,745,980

Liabilities
Payable for investments purchased Regular delivery	$ 2,661,036
Delayed delivery	3,108,417
Payable for fund shares redeemed	346,162
Accrued management fee	155,147
Distribution fees payable	1,669
Other payables and accrued expenses	56,090
Total liabilities		6,328,521

Net Assets		$ 318,417,459
Net Assets consist of:
Paid in capital		$ 391,843,265
Undistributed net investment income		5,215,377
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(78,544,286)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		(96,897)
Net Assets		$ 318,417,459

Initial Class: Net Asset Value, offering price and redemption price per share ($306,619,176 ÷ 27,234,090 shares)		$ 11.26

Service Class: Net Asset Value, offering price and redemption price per share ($6,432,493 ÷ 574,633 shares)		$ 11.19

Service Class 2: Net Asset Value, offering price and redemption price per share ($5,365,790 ÷ 481,311 shares)		$ 11.15

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 1,787,338
Interest		3,030,487
Total income		4,817,825

Expenses
Management fee	$ 861,712
Transfer agent fees	107,723
Distribution fees	8,684
Accounting fees and expenses	56,653
Non-interested trustees' compensation	597
Custodian fees and expenses	14,398
Audit	23,357
Legal	682
Miscellaneous	21,760
Total expenses before reductions	1,095,566
Expense reductions	(22,796)	1,072,770
Net investment income (loss)		3,745,055
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(8,243,107)
Foreign currency transactions	(32)
Futures contracts	1,051,082
Total net realized gain (loss)		(7,192,057)
Change in net unrealized appreciation (depreciation) on: Investment securities	38,998,746
Assets and liabilities in foreign currencies	(196)
Futures contracts	(252,804)
Swap agreements	13,394
Total change in net unrealized appreciation (depreciation)		38,759,140
Net gain (loss)		31,567,083
Net increase (decrease) in net assets resulting from operations		$ 35,312,138

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

Semiannual Report

Asset Manager: Growth Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 3,745,055	$ 9,879,530
Net realized gain (loss)	(7,192,057)	(13,307,507)
Change in net unrealized appreciation (depreciation)	38,759,140	(59,841,478)
Net increase (decrease) in net assets resulting from operations	35,312,138	(63,269,455)
Distributions to shareholders from net investment income	(8,995,679)	(10,416,607)
Share transactions - net increase (decrease)	(2,345,823)	(45,895,376)
Total increase (decrease) in net assets	23,970,636	(119,581,438)

Net Assets
Beginning of period	294,446,823	414,028,261
End of period (including undistributed net investment income of $5,215,377 and undistributed net investment income of $11,827,058, respectively)	$ 318,417,459	$ 294,446,823

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
Shares Sold	1,255,248	7,523	122,471
Reinvested	904,884	18,903	12,490
Redeemed	(2,453,815)	(46,470)	(49,581)
Net increase (decrease)	(293,683)	(20,044)	85,380

Dollars Sold	$ 13,505,920	$ 81,322	$ 1,286,162
Reinvested	8,695,938	180,711	119,030
Redeemed	(25,232,212)	(475,703)	(506,991)
Net increase (decrease)	$ (3,030,354)	$ (213,670)	$ 898,201

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
Shares Sold	2,002,299	59,590	86,311
Reinvested	852,581	19,176	10,444
Redeemed	(7,128,518)	(249,039)	(120,333)
Net increase (decrease)	(4,273,638)	(170,273)	(23,578)

Dollars Sold	$ 22,203,801	$ 701,545	$ 952,932
Reinvested	10,068,980	225,322	122,305
Redeemed	(76,233,884)	(2,697,681)	(1,238,696)
Net increase (decrease)	$ (43,961,103)	$ (1,770,814)	$ (163,459)

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 8,695,938	$ 180,711	$ 119,030
From net realized gain	-	-	-
Total	$ 8,695,938	$ 180,711	$ 119,030

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 10,068,980	$ 225,322	$ 122,305
From net realized gain	-	-	-
Total	$ 10,068,980	$ 225,322	$ 122,305

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

Asset Manager: Growth Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.33	$ 12.56	$ 14.41	$ 18.38	$ 17.03	$ 16.36
Income from Investment Operations
Net investment income (loss)^E	.13	.32	.32	.42	.40	.41
Net realized and unrealized gain (loss)	1.12	(2.23)	(1.31)	(2.52)	2.04	2.19
Total from investment operations	1.25	(1.91)	(.99)	(2.10)	2.44	2.60
Distributions from net investment income	(.32)	(.32)	(.39)	(.37)	(.41)	(.34)
Distributions from net realized gain	-	-	(.47)	(1.50)	(.68)	(1.59)
Total distributions	(.32)	(.32)	(.86)	(1.87)	(1.09)	(1.93)
Net asset value, end of period	$ 11.26	$ 10.33	$ 12.56	$ 14.41	$ 18.38	$ 17.03
Total Return^B,C,D	12.63%	(15.53)%	(7.39)%	(12.47)%	15.26%	17.57%
Ratios to Average Net Assets^F
Expenses before expense reductions	.73%^A	.73%	.73%	.69%	.71%	.73%
Expenses net of voluntary waivers, if any	.73%^A	.73%	.73%	.69%	.71%	.73%
Expenses net of all reductions	.72%^A	.69%	.72%	.68%	.70%	.72%
Net investment income (loss)	2.54%^A	2.88%	2.55%	2.61%	2.38%	2.60%
Supplemental Data
Net assets, end of period (000 omitted)	$ 306,619	$ 284,298	$ 399,273	$ 482,165	$ 580,555	$ 528,874
Portfolio turnover rate	67%^A	149%	111%	147%	92%	98%

^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.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.27	$ 12.47	$ 14.32	$ 18.28	$ 16.96	$ 16.35
Income from Investment Operations
Net investment income (loss)^E	.13	.30	.31	.40	.38	.40
Net realized and unrealized gain (loss)	1.10	(2.20)	(1.32)	(2.50)	2.03	2.14
Total from investment operations	1.23	(1.90)	(1.01)	(2.10)	2.41	2.54
Distributions from net investment income	(.31)	(.30)	(.37)	(.36)	(.41)	(.34)
Distributions from net realized gain	-	-	(.47)	(1.50)	(.68)	(1.59)
Total distributions	(.31)	(.30)	(.84)	(1.86)	(1.09)	(1.93)
Net asset value, end of period	$ 11.19	$ 10.27	$ 12.47	$ 14.32	$ 18.28	$ 16.96
Total Return^B,C,D	12.49%	(15.54)%	(7.57)%	(12.54)%	15.13%	17.18%
Ratios to Average Net Assets^F
Expenses before expense reductions	.85%^A	.84%	.83%	.80%	.82%	.89%
Expenses net of voluntary waivers, if any	.85%^A	.84%	.83%	.80%	.82%	.89%
Expenses net of all reductions	.83%^A	.80%	.82%	.79%	.81%	.88%
Net investment income (loss)	2.43%^A	2.77%	2.44%	2.50%	2.27%	2.65%
Supplemental Data
Net assets, end of period (000 omitted)	$ 6,432	$ 6,105	$ 9,542	$ 12,449	$ 10,825	$ 3,165
Portfolio turnover rate	67%^A	149%	111%	147%	92%	98%

^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.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.21	$ 12.43	$ 14.30	$ 17.78
Income from Investment Operations
Net investment income (loss)^E	.11	.28	.28	.34
Net realized and unrealized gain (loss)	1.12	(2.21)	(1.30)	(1.96)
Total from investment operations	1.23	(1.93)	(1.02)	(1.62)
Distributions from net investment income	(.29)	(.29)	(.38)	(.36)
Distributions from net realized gain	-	-	(.47)	(1.50)
Total distributions	(.29)	(.29)	(.85)	(1.86)
Net asset value, end of period	$ 11.15	$ 10.21	$ 12.43	$ 14.30
Total Return^B,C,D	12.53%	(15.83)%	(7.66)%	(10.21)%
Ratios to Average Net Assets^F
Expenses before expense reductions	1.05%^A	1.03%	1.00%	.97%^A
Expenses net of voluntary waivers, if any	1.05%^A	1.03%	1.00%	.97%^A
Expenses net of all reductions	1.04%^A	.99%	.99%	.95%^A
Net investment income (loss)	2.23%^A	2.58%	2.28%	2.33%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 5,366	$ 4,044	$ 5,213	$ 3,091
Portfolio turnover rate	67%^A	149%	111%	147%

^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 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 start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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.

^G For the period January 12, 2000 (commencement of sale of shares) to December 31, 2000.

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

Semiannual Report

Fidelity Variable Insurance Products: Balanced Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Omnicom Group, Inc.	3.2
Gillette Co.	3.2
BellSouth Corp.	2.9
Merrill Lynch & Co., Inc.	2.8
Morgan Stanley	2.6
	14.7
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	16.6
Consumer Discretionary	13.5
Consumer Staples	10.3
Telecommunication Services	6.1
Industrials	5.2

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks	52.2%
	Bonds	34.0%
	Short-Term Investments and Net Other Assets	13.8%

* Foreign investments

3.0%

Semiannual Report

Fidelity Variable Insurance Products: Balanced Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 52.2%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 10.8%
Hotels, Restaurants & Leisure - 0.2%
Starwood Hotels & Resorts Worldwide, Inc. unit	15,100		$ 431,709
Household Durables - 0.0%
Garmin Ltd. (a)	1,700		67,779
Media - 7.8%
Comcast Corp. Class A (special) (a)	43,600		1,256,988
E.W. Scripps Co. Class A	50,300		4,462,616
EchoStar Communications Corp. Class A (a)	222,500		7,702,950
Omnicom Group, Inc.	138,600		9,937,608
Pegasus Communications Corp. Class A (a)	25,600		757,248
			24,117,410
Multiline Retail - 1.7%
Dollar Tree Stores, Inc. (a)	44,100		1,399,293
Kohl's Corp. (a)	75,400		3,874,052
			5,273,345
Specialty Retail - 0.6%
Hollywood Entertainment Corp. (a)	114,200		1,964,240
Textiles Apparel & Luxury Goods - 0.5%
Liz Claiborne, Inc.	42,400		1,494,600
TOTAL CONSUMER DISCRETIONARY			33,349,083
CONSUMER STAPLES - 9.7%
Beverages - 0.6%
The Coca-Cola Co.	40,800		1,893,528
Food & Staples Retailing - 2.9%
Sysco Corp.	27,500		826,100
Wal-Mart Stores, Inc.	121,300		6,510,171
Walgreen Co.	55,800		1,679,580
			9,015,851
Food Products - 0.6%
McCormick & Co., Inc. (non-vtg.)	62,400		1,697,280
Unilever PLC sponsored ADR	10,400		333,840
			2,031,120
Household Products - 1.7%
Colgate-Palmolive Co.	41,200		2,387,540
Kimberly-Clark Corp.	52,800		2,752,992
			5,140,532
Personal Products - 3.2%
Gillette Co.	306,900		9,777,834
Tobacco - 0.7%
Altria Group, Inc.	45,250		2,056,160
TOTAL CONSUMER STAPLES			29,915,025

	Shares		Value (Note 1)
ENERGY - 1.7%
Oil & Gas - 1.7%
Exxon Mobil Corp.	142,432		$ 5,114,733
FINANCIALS - 12.3%
Capital Markets - 6.7%
Goldman Sachs Group, Inc.	49,300		4,128,875
Merrill Lynch & Co., Inc.	181,700		8,481,756
Morgan Stanley	189,500		8,101,125
			20,711,756
Commercial Banks - 2.9%
Bank One Corp.	30,500		1,133,990
Wells Fargo & Co.	156,200		7,872,480
			9,006,470
Consumer Finance - 0.5%
American Express Co.	33,300		1,392,273
Insurance - 2.0%
Allstate Corp.	42,200		1,504,430
American International Group, Inc.	60,450		3,335,631
PartnerRe Ltd.	19,200		981,312
Travelers Property Casualty Corp. Class B	22,800		359,556
			6,180,929
Real Estate - 0.2%
Equity Office Properties Trust	28,000		756,280
TOTAL FINANCIALS			38,047,708
HEALTH CARE - 4.1%
Biotechnology - 1.7%
Amgen, Inc. (a)	79,800		5,301,912
Health Care Equipment & Supplies - 0.8%
Alcon, Inc.	20,800		950,560
Medtronic, Inc.	33,200		1,592,604
			2,543,164
Pharmaceuticals - 1.6%
Allergan, Inc.	16,500		1,272,150
Pfizer, Inc.	104,900		3,582,335
			4,854,485
TOTAL HEALTH CARE			12,699,561
INDUSTRIALS - 4.4%
Aerospace & Defense - 0.9%
Lockheed Martin Corp.	19,500		927,615
Northrop Grumman Corp.	13,900		1,199,431
United Technologies Corp.	10,200		722,466
			2,849,512
Airlines - 0.8%
Continental Airlines, Inc. Class B (a)	95,800		1,434,126
Mesaba Holdings, Inc. (a)	2,493		15,382
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Airlines - continued
Northwest Airlines Corp. (a)	47,800		$ 539,662
Southwest Airlines Co.	31,200		536,640
			2,525,810
Building Products - 0.3%
American Standard Companies, Inc. (a)	13,700		1,012,841
Commercial Services & Supplies - 0.3%
Avery Dennison Corp.	15,600		783,120
Industrial Conglomerates - 2.1%
General Electric Co.	218,800		6,275,184
TOTAL INDUSTRIALS			13,446,467
INFORMATION TECHNOLOGY - 3.6%
Communications Equipment - 0.9%
Cisco Systems, Inc. (a)	156,000		2,603,640
Nokia Corp. sponsored ADR	4,200		69,006
			2,672,646
Computers & Peripherals - 0.0%
Lexmark International, Inc. Class A (a)	2,400		169,848
IT Services - 0.7%
First Data Corp.	27,500		1,139,600
Paychex, Inc.	39,600		1,160,676
			2,300,276
Software - 2.0%
Microsoft Corp.	238,900		6,118,229
TOTAL INFORMATION TECHNOLOGY			11,260,999
MATERIALS - 0.0%
Chemicals - 0.0%
Praxair, Inc.	400		24,040
TELECOMMUNICATION SERVICES - 5.0%
Diversified Telecommunication Services - 5.0%
BellSouth Corp.	338,500		9,014,255
SBC Communications, Inc.	107,870		2,756,079
Verizon Communications, Inc.	94,300		3,720,135
			15,490,469
UTILITIES - 0.6%
Electric Utilities - 0.6%
Entergy Corp.	32,100		1,694,238
FPL Group, Inc.	400		26,740
			1,720,978
TOTAL COMMON STOCKS (Cost $148,184,415)		161,069,063
Preferred Stocks - 0.0%
	Shares		Value (Note 1)
Convertible Preferred Stocks - 0.0%
TELECOMMUNICATION SERVICES - 0.0%
Wireless Telecommunication Services - 0.0%
Digitalglobe, Inc. Series C, 8.5% pay-in-kind	163		$ 122
Nonconvertible Preferred Stocks - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Media - 0.0%
CSC Holdings, Inc.:
Series H, 11.75%	620		63,705
Series M, 11.125%	230		23,518
			87,223
TOTAL PREFERRED STOCKS (Cost $87,442)		87,345
Corporate Bonds - 14.3%
	Principal Amount
Convertible Bonds - 0.1%
INFORMATION TECHNOLOGY - 0.1%
Electronic Equipment & Instruments - 0.1%
Celestica, Inc. liquid yield option note 0% 8/1/20	$ 410,000		213,200
TELECOMMUNICATION SERVICES - 0.0%
Wireless Telecommunication Services - 0.0%
Nextel Communications, Inc. 5.25% 1/15/10	150,000		141,375
TOTAL CONVERTIBLE BONDS			354,575
Nonconvertible Bonds - 14.2%
CONSUMER DISCRETIONARY - 2.7%
Auto Components - 0.2%
ArvinMeritor, Inc. 8.75% 3/1/12	20,000		22,200
DaimlerChrysler NA Holding Corp.:
4.05% 6/4/08	150,000		148,547
7.2% 9/1/09	150,000		170,503
Dana Corp.:
6.25% 3/1/04	50,000		50,250
6.5% 3/1/09	30,000		29,100
9% 8/15/11	30,000		32,250
Navistar International Corp. 8% 2/1/08	35,000		34,825
Stoneridge, Inc. 11.5% 5/1/12	15,000		16,800
United Components, Inc. 9.375% 6/15/13 (e)	30,000		30,900
			535,375
Automobiles - 0.1%
General Motors Corp.:
7.125% 7/15/13	30,000		29,884
8.25% 7/15/23	100,000		99,500
8.375% 7/15/33	120,000		119,652
			249,036
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
Hotels, Restaurants & Leisure - 0.4%
Alliance Gaming Corp. 10% 8/1/07	$ 100,000		$ 103,500
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	210,000		192,150
10.5% 7/15/11 (e)	130,000		130,650
Domino's, Inc. 8.25% 7/1/11 (e)	40,000		41,100
Florida Panthers Holdings, Inc. 9.875% 4/15/09	25,000		26,875
Friendly Ice Cream Corp. 10.5% 12/1/07	170,000		173,825
Herbst Gaming, Inc. 10.75% 9/1/08	60,000		66,150
Mohegan Tribal Gaming Authority 8.375% 7/1/11	20,000		21,500
Morton's Restaurant Group, Inc. 7.5% 7/1/10 (e)(f)	30,000		25,950
MTR Gaming Group, Inc. 9.75% 4/1/10 (e)	40,000		41,400
Premier Parks, Inc. 9.75% 6/15/07	40,000		39,800
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	55,000		59,263
Town Sports International, Inc. 9.625% 4/15/11 (e)	40,000		41,900
Tricon Global Restaurants, Inc. 7.65% 5/15/08	40,000		45,200
Venetian Casino Resort LLC/Las Vegas Sands, Inc. 11% 6/15/10	125,000		140,938
Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (e)	30,000		31,200
Wheeling Island Gaming, Inc. 10.125% 12/15/09	100,000		99,250
			1,280,651
Household Durables - 0.2%
Beazer Homes USA, Inc. 8.375% 4/15/12	20,000		22,100
D.R. Horton, Inc.:
8% 2/1/09	75,000		82,875
8.5% 4/15/12	20,000		22,400
Juno Lighting, Inc. 11.875% 7/1/09	30,000		32,400
K. Hovnanian Enterprises, Inc. 8.875% 4/1/12	25,000		27,000
Lyon William Homes, Inc. 10.75% 4/1/13	95,000		100,700
Ryland Group, Inc.:
8.25% 4/1/08	40,000		41,600
9.125% 6/15/11	185,000		209,975
Standard Pacific Corp. 7.75% 3/15/13	150,000		159,000
			698,050
Internet & Catalog Retail - 0.1%
J. Crew Operating Corp. 10.375% 10/15/07	120,000		116,400
Leisure Equipment & Products - 0.0%
The Hockey Co. 11.25% 4/15/09	100,000		111,000
Media - 1.5%
AMC Entertainment, Inc.:
9.5% 3/15/09	35,000		35,875
9.875% 2/1/12	35,000		37,450
American Media Operations, Inc. 10.25% 5/1/09	60,000		64,650

	Principal Amount		Value (Note 1)
AOL Time Warner, Inc.:
7.625% 4/15/31	$ 200,000		$ 230,821
7.7% 5/1/32	105,000		122,580
British Sky Broadcasting Group PLC (BSkyB) yankee 8.2% 7/15/09	650,000		770,250
CBD Media LLC/ CBD Finance, Inc. 8.625% 6/1/11 (e)	20,000		20,550
Clear Channel Communications, Inc. 7.65% 9/15/10	200,000		240,680
Comcast Corp. 7.05% 3/15/33	150,000		166,597
Comcast UK Cable Partners Ltd. yankee 11.2% 11/15/07	90,000		86,850
Continental Cablevision, Inc. 9% 9/1/08	200,000		248,572
Corus Entertainment, Inc. 8.75% 3/1/12	240,000		257,400
Cox Communications, Inc. 7.125% 10/1/12	195,000		232,856
CSC Holdings, Inc.:
7.875% 2/15/18	75,000		77,625
9.875% 2/15/13	60,000		61,800
Diamond Holdings PLC yankee 9.125% 2/1/08	50,000		46,250
EchoStar DBS Corp. 10.375% 10/1/07	375,000		415,313
Lamar Media Corp. 7.25% 1/1/13 (e)	60,000		63,300
LBI Media, Inc. 10.125% 7/15/12	230,000		253,000
LodgeNet Entertainment Corp. 9.5% 6/15/13	20,000		20,500
News America Holdings, Inc.:
7.375% 10/17/08	200,000		236,249
7.75% 12/1/45	200,000		237,899
Nextmedia Operating, Inc. 10.75% 7/1/11	270,000		302,400
PEI Holdings, Inc. 11% 3/15/10 (e)	40,000		44,200
PRIMEDIA, Inc.:
7.625% 4/1/08	15,000		15,225
8.875% 5/15/11	15,000		15,900
Rogers Cablesystems Ltd. yankee 11% 12/1/15	10,000		11,300
Rogers Communications, Inc. yankee 8.875% 7/15/07	75,000		77,250
Shaw Communications, Inc. yankee 7.2% 12/15/11	15,000		16,163
Yell Finance BV 0% 8/1/11 (c)	130,000		107,900
			4,517,405
Multiline Retail - 0.0%
Barneys, Inc. 9% 4/1/08 unit (e)	120,000		108,000
Specialty Retail - 0.1%
Asbury Automotive Group, Inc. 9% 6/15/12	50,000		49,000
Gap, Inc. 10.55% 12/15/08	15,000		18,150
Toys 'R' US, Inc. 7.875% 4/15/13	60,000		64,200
United Auto Group, Inc. 9.625% 3/15/12	90,000		96,300
			227,650
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Automobiles - continued
Textiles Apparel & Luxury Goods - 0.1%
Dan River, Inc. 12.75% 4/15/09 (e)	$ 60,000		$ 54,000
Levi Strauss & Co.:
7% 11/1/06	25,000		20,000
11.625% 1/15/08	15,000		12,825
12.25% 12/15/12	25,000		20,750
The William Carter Co. 10.875% 8/15/11	200,000		228,000
			335,575
TOTAL CONSUMER DISCRETIONARY			8,179,142
CONSUMER STAPLES - 0.6%
Beverages - 0.0%
Canandaigua Brands, Inc. 8.5% 3/1/09	110,000		115,775
Le Natures, Inc. 9% 6/15/13 (e)	40,000		41,300
			157,075
Food & Staples Retailing - 0.2%
Kroger Co. 6.8% 4/1/11	195,000		222,468
Rite Aid Corp.:
6% 12/15/05 (e)	35,000		32,900
8.125% 5/1/10 (e)	60,000		62,400
9.5% 2/15/11 (e)	60,000		64,500
The Great Atlantic & Pacific Tea Co.:
7.75% 4/15/07	220,000		205,700
9.125% 12/15/11	75,000		70,125
			658,093
Food Products - 0.2%
Corn Products International, Inc. 8.25% 7/15/07	175,000		196,000
Del Monte Corp. 9.25% 5/15/11	145,000		158,050
Doane Pet Care Co. 9.75% 5/15/07	125,000		118,750
			472,800
Household Products - 0.0%
Fort James Corp. 6.875% 9/15/07	20,000		20,300
Personal Products - 0.0%
Jafra Cosmetics International, Inc./Distribuidora Comercial Jafra SA de CV 10.75% 5/15/11 (e)	40,000		41,600
Tobacco - 0.2%
Philip Morris Companies, Inc. 6.95% 6/1/06	500,000		538,202
RJ Reynolds Tobacco Holdings, Inc. 6.5% 6/1/07	35,000		35,061
			573,263
TOTAL CONSUMER STAPLES			1,923,131

	Principal Amount		Value (Note 1)
ENERGY - 0.7%
Energy Equipment & Services - 0.1%
DI Industries, Inc. 8.875% 7/1/07	$ 35,000		$ 36,094
Grant Prideco, Inc. 9% 12/15/09	20,000		22,350
Kinder Morgan, Inc. 6.5% 9/1/12	100,000		114,630
Universal Compression, Inc. 7.25% 5/15/10 (e)	175,000		182,875
			355,949
Oil & Gas - 0.6%
Chesapeake Energy Corp. 7.5% 9/15/13 (e)	70,000		74,550
General Maritime Corp. 10% 3/15/13 (e)	125,000		136,875
GulfTerra Energy Partners LP/GulfTerra Energy Finance Corp. 10.625% 12/1/12	30,000		34,800
Houston Exploration Co. 7% 6/15/13 (e)	30,000		30,975
NGC Corp. 6.75% 12/15/05	50,000		47,250
Nuevo Energy Co.:
9.375% 10/1/10	20,000		21,550
9.5% 6/1/08	18,000		18,855
Overseas Shipholding Group, Inc. 8.25% 3/15/13 (e)	110,000		114,400
Pemex Project Funding Master Trust 6.125% 8/15/08 (e)	400,000		428,000
Plains Exploration & Production Co. LP:
8.75% 7/1/12	60,000		64,200
8.75% 7/1/12 (e)	50,000		53,500
Teekay Shipping Corp. 8.875% 7/15/11	200,000		219,250
Tesoro Petroleum Corp. 8% 4/15/08 (e)	30,000		30,750
The Coastal Corp.:
6.375% 2/1/09	10,000		8,750
6.5% 5/15/06	30,000		28,050
6.5% 6/1/08	25,000		22,375
6.95% 6/1/28	45,000		35,775
7.5% 8/15/06	80,000		77,200
7.75% 6/15/10	45,000		41,963
7.75% 10/15/35	30,000		25,200
Western Oil Sands, Inc. 8.375% 5/1/12	225,000		250,875
			1,765,143
TOTAL ENERGY			2,121,092
FINANCIALS - 4.3%
Capital Markets - 0.7%
Amvescap PLC yankee 6.6% 5/15/05	100,000		107,842
BankAmerica Corp. 5.875% 2/15/09	500,000		568,702
Credit Suisse First Boston (USA), Inc.:
5.875% 8/1/06	170,000		188,046
6.5% 1/15/12	30,000		34,427
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Capital Markets - continued
Goldman Sachs Group, Inc. 6.6% 1/15/12	$ 410,000		$ 476,412
J.P. Morgan Chase & Co. 5.35% 3/1/07	200,000		218,999
Merrill Lynch & Co., Inc.:
4% 11/15/07	150,000		155,779
6.15% 1/26/06	150,000		165,036
Morgan Stanley:
5.3% 3/1/13	100,000		106,284
6.6% 4/1/12	160,000		184,862
			2,206,389
Commercial Banks - 0.4%
Bank of America Corp. 4.875% 1/15/13	125,000		131,863
Bank One NA, Chicago 3.7% 1/15/08	220,000		228,756
Fleet Financial Group, Inc. 7.125% 4/15/06	140,000		156,975
Korea Development Bank 7.375% 9/17/04	160,000		169,849
PNC Funding Corp. 5.75% 8/1/06	155,000		171,018
Popular North America, Inc. 6.125% 10/15/06	220,000		244,896
			1,103,357
Consumer Finance - 1.0%
American General Finance Corp.:
2.75% 6/15/08	20,000		19,726
5.875% 7/14/06	480,000		529,643
AmeriCredit Corp. 9.875% 4/15/06	25,000		23,750
Capital One Bank:
4.875% 5/15/08	125,000		127,564
6.5% 6/13/13	135,000		133,623
Capital One Financial Corp.:
7.25% 12/1/03	120,000		122,400
8.75% 2/1/07	60,000		66,600
Ford Motor Credit Co.:
6.875% 2/1/06	150,000		159,090
7.375% 10/28/09	450,000		471,740
General Motors Acceptance Corp. 7.5% 7/15/05	500,000		535,823
Household Finance Corp.:
6.375% 10/15/11	260,000		295,636
6.375% 11/27/12	50,000		56,956
7% 5/15/12	40,000		47,346
Household International, Inc. 8.875% 2/15/08	125,000		145,225
MBNA Corp.:
6.25% 1/17/07	120,000		131,952
7.5% 3/15/12	175,000		207,431
			3,074,505

	Principal Amount		Value (Note 1)
Diversified Financial Services - 1.6%
Ahold Finance USA, Inc.:
6.25% 5/1/09	$ 65,000		$ 60,450
6.875% 5/1/29	50,000		42,250
8.25% 7/15/10	160,000		161,600
Alliance Capital Management LP 5.625% 8/15/06	150,000		164,312
Arch Western Finance LLC 6.75% 7/1/13 (e)	125,000		127,500
BRL Universal Equipment 2001 A LP/BRL Universal Equipment Corp. 8.875% 2/15/08	120,000		129,600
CIT Group, Inc. 7.75% 4/2/12	150,000		178,853
CMS Energy X-TRAS pass thru trust I 7% 1/15/05	75,000		74,438
Continental Airlines, Inc. pass thru trust certificates:
6.748% 9/15/18	7,926		6,024
6.9% 1/2/17	14,264		10,841
7.73% 9/15/12	14,802		11,101
8.321% 11/1/06	10,000		8,400
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	20,000		16,800
7.57% 11/18/10	45,000		46,285
7.779% 1/2/12	308,837		247,070
7.92% 5/18/12	50,000		43,190
Deutsche Telekom International Finance BV 8.75% 6/15/30	250,000		318,523
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp. 8.5% 6/1/11	25,000		26,750
FIMEP SA 10.5% 2/15/13 (e)	60,000		67,200
Gemstone Investor Ltd./Gemstone Investor, Inc. 7.71% 10/31/04 (e)	140,000		138,600
Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11 (e)	90,000		87,750
Huntsman Advanced Materials LLC 11% 7/15/10 (e)	40,000		41,600
IOS Capital LLC 7.25% 6/30/08	70,000		68,950
Leucadia National Corp. 7% 8/15/13 (e)	80,000		80,200
Moore North America Finance, Inc. 7.875% 1/15/11 (e)	60,000		62,700
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10 (e)	20,000		20,600
NiSource Finance Corp.:
7.625% 11/15/05	200,000		218,670
7.875% 11/15/10	195,000		230,237
Northern Telecom Capital Corp. 7.875% 6/15/26	45,000		40,950
Northwest Airlines, Inc. pass thru trust certificates:
7.068% 7/2/17	25,212		19,666
7.67% 1/2/15	22,004		18,264
Pemex Project Funding Master Trust 7.875% 2/1/09 (g)	180,000		205,650
Petronas Capital Ltd. 7% 5/22/12 (e)	495,000		572,606
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
Qwest Capital Funding, Inc.:
5.875% 8/3/04	$ 120,000		$ 115,800
7% 8/3/09	60,000		49,200
7.25% 2/15/11	60,000		48,600
7.625% 8/3/21	45,000		35,550
7.75% 8/15/06	270,000		251,100
7.75% 2/15/31	75,000		58,500
Sprint Capital Corp. 6.875% 11/15/28	295,000		295,954
TRW Automotive Acquisition Corp.:
9.375% 2/15/13 (e)	80,000		87,000
11% 2/15/13 (e)	20,000		21,900
U.S. West Capital Funding, Inc. 6.375% 7/15/08	45,000		36,675
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10 (e)	110,000		121,000
Verizon Wireless Capital LLC 5.375% 12/15/06	140,000		153,768
Western Financial Bank 9.625% 5/15/12	25,000		27,000
			4,849,677
Insurance - 0.1%
Crum & Forster Holdings Corp. 10.375% 6/15/13 (e)	80,000		81,200
Principal Life Global Funding I:
5.125% 6/28/07 (e)	100,000		107,559
6.25% 2/15/12 (e)	85,000		96,152
Travelers Property Casualty Corp. 6.375% 3/15/33	70,000		76,506
			361,417
Real Estate - 0.4%
Boston Properties, Inc. 6.25% 1/15/13	125,000		136,882
BRE Properties, Inc. 5.95% 3/15/07	250,000		273,921
CBRE Escrow, Inc. 9.75% 5/15/10 (e)	150,000		159,000
CenterPoint Properties Trust 6.75% 4/1/05	100,000		106,805
EOP Operating LP 6.625% 2/15/05	200,000		213,944
ERP Operating LP 7.1% 6/23/04	200,000		210,121
LNR Property Corp.:
7.625% 7/15/13 (e)	50,000		50,500
10.5% 1/15/09	25,000		26,500
ProLogis 6.7% 4/15/04	55,000		57,434
Senior Housing Properties Trust:
7.875% 4/15/15	40,000		40,800
8.625% 1/15/12	80,000		84,800
			1,360,707

	Principal Amount		Value (Note 1)
Thrifts & Mortgage Finance - 0.1%
Countrywide Home Loans, Inc. 5.5% 8/1/06	$ 170,000		$ 185,803
Washington Mutual, Inc. 5.625% 1/15/07	250,000		275,548
			461,351
TOTAL FINANCIALS			13,417,403
HEALTH CARE - 0.2%
Health Care Providers & Services - 0.1%
AmeriPath, Inc. 10.5% 4/1/13 (e)	65,000		69,550
PacifiCare Health Systems, Inc. 10.75% 6/1/09	145,000		165,663
Psychiatric Solutions, Inc. 10.625% 6/15/13 (e)	30,000		30,825
Rotech Healthcare, Inc. 9.5% 4/1/12	75,000		76,875
Tenet Healthcare Corp.:
6.375% 12/1/11	45,000		41,625
6.5% 6/1/12	10,000		9,250
7.375% 2/1/13	75,000		72,375
			466,163
Pharmaceuticals - 0.1%
aaiPharma, Inc. 11% 4/1/10	190,000		209,000
TOTAL HEALTH CARE			675,163
INDUSTRIALS - 0.8%
Aerospace & Defense - 0.1%
Aviall, Inc. 7.625% 7/1/11 (e)	65,000		65,325
Esterline Technologies Corp. 7.75% 6/15/13 (e)	20,000		20,700
Raytheon Co. 8.3% 3/1/10	250,000		307,132
			393,157
Airlines - 0.1%
Continental Airlines, Inc. 8% 12/15/05	50,000		44,750
Delta Air Lines, Inc. 7.9% 12/15/09	10,000		7,900
Northwest Airlines, Inc.:
7.875% 3/15/08	255,000		196,350
9.875% 3/15/07	30,000		23,700
			272,700
Building Products - 0.0%
FastenTech, Inc. 11.5% 5/1/11 (e)	50,000		50,375
Jacuzzi Brands, Inc. 9.625% 7/1/10 (e)(f)	30,000		30,000
Nortek, Inc.:
9.125% 9/1/07	10,000		10,300
9.25% 3/15/07	20,000		20,550
			111,225
Commercial Services & Supplies - 0.1%
Allied Waste North America, Inc.:
7.625% 1/1/06	30,000		31,050
7.875% 4/15/13	80,000		83,700
9.25% 9/1/12 (e)	60,000		66,300
10% 8/1/09	10,000		10,675
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INDUSTRIALS - continued
Commercial Services & Supplies - continued
American Color Graphics, Inc. 10% 6/15/10 (e)(f)	$ 80,000		$ 80,400
Mobile Mini, Inc. 9.5% 7/1/13 (e)	70,000		72,450
National Waterworks, Inc. 10.5% 12/1/12	40,000		44,400
			388,975
Construction & Engineering - 0.1%
Shaw Group, Inc. 10.75% 3/15/10 (e)	115,000		115,575
Industrial Conglomerates - 0.2%
Tyco International Group SA yankee:
5.8% 8/1/06	55,000		56,788
6.375% 2/15/06	65,000		67,763
6.75% 2/15/11	400,000		424,000
7% 6/15/28	35,000		35,350
			583,901
Machinery - 0.2%
Cummins, Inc.:
5.65% 3/1/98	60,000		40,800
9.5% 12/1/10 (e)	50,000		56,250
Dresser, Inc. 9.375% 4/15/11	30,000		30,900
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	170,000		183,600
JLG Industries, Inc. 8.25% 5/1/08 (e)	70,000		71,400
Terex Corp.:
8.875% 4/1/08	35,000		36,400
9.25% 7/15/11	150,000		160,500
TriMas Corp. 9.875% 6/15/12 (e)	50,000		51,000
			630,850
Road & Rail - 0.0%
TFM SA de CV yankee:
10.25% 6/15/07	20,000		20,275
11.75% 6/15/09	60,000		61,050
			81,325
TOTAL INDUSTRIALS			2,577,708
INFORMATION TECHNOLOGY - 0.6%
Communications Equipment - 0.2%
Motorola, Inc. 6.5% 11/15/28	110,000		111,650
Nortel Networks Corp. 6.125% 2/15/06	80,000		77,200
Northern Telecom Ltd. yankee 6.875% 9/1/23	30,000		25,500
Qwest Services Corp.:
13% 12/15/07 (e)	45,000		49,500
13.5% 12/15/10 (e)	75,000		84,750
14% 12/15/14 (e)	166,000		193,390
			541,990

	Principal Amount		Value (Note 1)
Computers & Peripherals - 0.0%
Seagate Technology HDD Holdings 8% 5/15/09	$ 85,000		$ 91,800
Electronic Equipment & Instruments - 0.1%
Avnet, Inc. 9.75% 2/15/08	60,000		67,800
Ingram Micro, Inc. 9.875% 8/15/08	15,000		16,350
PerkinElmer, Inc. 8.875% 1/15/13	70,000		76,475
Solectron Corp. 7.375% 3/1/06	115,000		114,425
			275,050
IT Services - 0.1%
Digitalnet, Inc. 9% 7/15/10 (e)	40,000		40,000
Electronic Data Systems Corp. 6% 8/1/13 (e)	155,000		151,339
Iron Mountain, Inc. 6.625% 1/1/16	130,000		128,050
Titan Corp. 8% 5/15/11 (e)	60,000		63,300
			382,689
Office Electronics - 0.1%
Xerox Corp.:
7.125% 6/15/10	70,000		70,175
7.15% 8/1/04	5,000		5,113
7.2% 4/1/16	120,000		114,000
7.625% 6/15/13	70,000		70,175
			259,463
Semiconductors & Semiconductor Equipment - 0.1%
AMI Semiconductor, Inc. 10.75% 2/1/13 (e)	100,000		113,000
Amkor Technology, Inc. 7.75% 5/15/13 (e)	50,000		47,250
SCG Holding Corp./Semiconductor Components Industries LLC 12% 8/1/09	80,000		67,600
			227,850
TOTAL INFORMATION TECHNOLOGY			1,778,842
MATERIALS - 1.0%
Chemicals - 0.2%
Geon Co. 6.875% 12/15/05	15,000		13,950
HMP Equity Holdings Corp. 0% 5/15/08 unit (e)	110,000		55,000
Huntsman International LLC 9.875% 3/1/09 (e)	60,000		62,100
Methanex Corp. yankee 7.75% 8/15/05	155,000		163,525
Millennium America, Inc.:
9.25% 6/15/08	40,000		43,200
9.25% 6/15/08 (e)	30,000		32,400
OMNOVA Solutions, Inc. 11.25% 6/1/10 (e)	60,000		65,400
PolyOne Corp. 8.875% 5/1/12	65,000		57,850
Resolution Performance Products LLC:
9.5% 4/15/10	65,000		67,925
13.5% 11/15/10	20,000		20,000
			581,350
Construction Materials - 0.0%
Texas Industries, Inc. 10.25% 6/15/11 (e)	140,000		147,000
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
MATERIALS - continued
Containers & Packaging - 0.4%
Anchor Glass Container Corp. 11% 2/15/13 (e)	$ 60,000		$ 64,800
BWAY Corp. 10% 10/15/10 (e)	30,000		30,600
Jefferson Smurfit Corp. U.S. 7.5% 6/1/13 (e)	130,000		132,275
Owens-Brockway Glass Container, Inc.:
7.75% 5/15/11 (e)	50,000		52,625
8.25% 5/15/13 (e)	80,000		84,000
8.75% 11/15/12	25,000		27,125
8.875% 2/15/09	185,000		200,263
Owens-Illinois, Inc.:
7.15% 5/15/05	45,000		45,788
7.35% 5/15/08	295,000		290,575
7.5% 5/15/10	20,000		19,600
7.8% 5/15/18	45,000		42,300
Sealed Air Corp.:
5.625% 7/15/13 (e)	30,000		30,283
6.875% 7/15/33 (e)	60,000		61,159
			1,081,393
Metals & Mining - 0.2%
Falconbridge Ltd. yankee 7.35% 6/5/12	200,000		225,352
Peabody Energy Corp. 6.875% 3/15/13 (e)	90,000		94,050
Phelps Dodge Corp. 8.75% 6/1/11	200,000		233,360
Salt Holdings Corp., Inc. 0% 12/15/12 (c)(e)	80,000		54,200
Steel Dynamics, Inc. 9.5% 3/15/09	35,000		36,750
			643,712
Paper & Forest Products - 0.2%
Georgia-Pacific Corp.:
7.375% 12/1/25	10,000		8,800
7.5% 5/15/06	95,000		97,375
8.125% 5/15/11	105,000		107,888
8.875% 5/15/31	5,000		4,900
Millar Western Forest Products Ltd. yankee 9.875% 5/15/08	95,000		99,275
Norske Skog Canada Ltd. 8.625% 6/15/11 (e)	90,000		93,938
Weyerhaeuser Co. 6.75% 3/15/12	100,000		113,520
			525,696
TOTAL MATERIALS			2,979,151
TELECOMMUNICATION SERVICES - 1.1%
Diversified Telecommunication Services - 0.7%
AT&T Corp. 7.8% 11/15/11	100,000		114,311
Citizens Communications Co. 8.5% 5/15/06	100,000		115,981
France Telecom SA:
9.25% 3/1/11 (d)	150,000		188,785
10% 3/1/31 (d)	200,000		276,747

	Principal Amount		Value (Note 1)
Qwest Corp. 8.875% 3/15/12 (e)	$ 185,000		$ 206,738
Rogers Cantel, Inc. yankee:
8.8% 10/1/07	95,000		96,900
9.375% 6/1/08	25,000		26,125
Telecomunicaciones de Puerto Rico, Inc. 6.65% 5/15/06	120,000		132,741
TELUS Corp. yankee 7.5% 6/1/07	310,000		345,650
Triton PCS, Inc.:
8.75% 11/15/11	60,000		59,700
9.375% 2/1/11	280,000		285,600
U.S. West Communications 6.875% 9/15/33	40,000		36,600
Verizon New York, Inc. 6.875% 4/1/12	200,000		235,433
			2,121,311
Wireless Telecommunication Services - 0.4%
American Tower Corp. 9.375% 2/1/09	35,000		35,000
AT&T Wireless Services, Inc. 8.75% 3/1/31	290,000		358,459
Crown Castle International Corp.:
9.375% 8/1/11	55,000		57,063
9.5% 8/1/11	155,000		159,650
10.75% 8/1/11	45,000		48,375
Nextel Communications, Inc.:
9.375% 11/15/09	95,000		101,888
9.5% 2/1/11	50,000		55,500
9.75% 10/31/07	230,000		239,200
9.95% 2/15/08	100,000		105,000
Nextel Partners, Inc. 8.125% 7/1/11 (e)	70,000		69,650
Rogers Wireless, Inc. 9.625% 5/1/11	50,000		56,500
SBA Communications Corp. 10.25% 2/1/09	40,000		36,000
			1,322,285
TOTAL TELECOMMUNICATION SERVICES			3,443,596
UTILITIES - 2.2%
Electric Utilities - 0.9%
Allegheny Energy Supply Co. LLC:
Series A, 10.25% 11/15/07 (e)	68,792		70,856
Series B, 10.25% 11/15/07 (e)(g)	6,204		5,956
7.8% 3/15/11	155,000		128,650
8.75% 4/15/12 (e)	330,000		282,150
CMS Energy Corp.:
8.375% 7/1/03	120,000		120,000
8.5% 4/15/11	85,000		87,975
Detroit Edison Co. 6.125% 10/1/10	165,000		188,404
Dominion Resources, Inc. 6.25% 6/30/12	160,000		181,151
Duke Capital Corp. 6.75% 2/15/32	210,000		211,675
Edison International 6.875% 9/15/04	35,000		35,350
FirstEnergy Corp. 6.45% 11/15/11	145,000		159,117
Illinois Power Co.:
7.5% 6/15/09	150,000		151,500
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
UTILITIES - continued
Electric Utilities - continued
Illinois Power Co.: - continued
11.5% 12/15/10 (e)	$ 115,000		$ 131,100
Midland Funding Corp. II 11.75% 7/23/05	60,000		64,500
Nevada Power Co. 10.875% 10/15/09	65,000		73,125
Niagara Mohawk Power Corp. 8.875% 5/15/07	75,000		90,218
Pacific Gas & Electric Co. 6.25% 3/1/04	60,000		60,000
PG&E Corp. 6.875% 7/15/08 (e)	60,000		62,250
Public Service Co. of Colorado 7.875% 10/1/12	115,000		144,781
Southern California Edison Co.:
7.25% 3/1/26	65,000		65,813
8% 2/15/07 (e)	250,000		275,000
TECO Energy, Inc.:
7% 5/1/12	95,000		92,625
10.5% 12/1/07	80,000		92,000
			2,774,196
Gas Utilities - 0.6%
ANR Pipeline, Inc. 9.625% 11/1/21	80,000		94,400
Consolidated Natural Gas Co. 6.85% 4/15/11	70,000		83,194
Dynegy Holdings, Inc.:
7.45% 7/15/06	50,000		47,500
8.125% 3/15/05	35,000		33,950
El Paso Energy Corp.:
6.75% 5/15/09	50,000		45,750
6.95% 12/15/07	125,000		116,875
7.375% 12/15/12	5,000		4,475
7.75% 1/15/32	35,000		29,488
7.8% 8/1/31	30,000		24,750
8.05% 10/15/30	225,000		194,625
Kinder Morgan Energy Partners LP 7.3% 8/15/33	250,000		300,215
SEMCO Energy, Inc.:
7.125% 5/15/08 (e)	20,000		20,800
7.75% 5/15/13 (e)	20,000		21,200
Sonat, Inc.:
6.625% 2/1/08	65,000		58,175
6.75% 10/1/07	40,000		36,150
6.875% 6/1/05	280,000		271,600
Southern Natural Gas Co. 8.875% 3/15/10 (e)	40,000		43,800
Texas Eastern Transmission Corp. 7.3% 12/1/10	185,000		213,682
Transcontinental Gas Pipe Line Corp.:
6.125% 1/15/05	20,000		20,000
8.875% 7/15/12	15,000		16,913
Williams Holdings of Delaware, Inc. 6.25% 2/1/06	10,000		9,800
			1,687,342

	Principal Amount		Value (Note 1)
Multi-Utilities & Unregulated Power - 0.7%
AES Corp.:
8.375% 8/15/07	$ 50,000		$ 46,750
8.5% 11/1/07	29,000		27,115
8.75% 6/15/08	30,000		29,550
8.75% 5/15/13 (e)	170,000		176,800
8.875% 2/15/11	54,000		52,650
9% 5/15/15 (e)	90,000		93,825
9.375% 9/15/10	16,000		16,080
9.5% 6/1/09	14,000		14,070
10% 12/12/05 (e)	30,000		30,750
10.25% 7/15/06	29,000		28,565
El Paso Corp.:
7% 5/15/11	90,000		81,900
7.875% 6/15/12 (e)	35,000		32,419
El Paso Production Holding Co. 7.75% 6/1/13 (e)	180,000		180,225
Reliant Resources, Inc.:
9.25% 7/15/10 (e)	60,000		60,300
9.5% 7/15/13 (e)	50,000		50,375
Western Resources, Inc. 9.75% 5/1/07	90,000		100,800
Williams Companies, Inc.:
6.5% 8/1/06	60,000		58,800
6.75% 1/15/06	70,000		68,425
7.125% 9/1/11	260,000		253,500
7.5% 1/15/31	10,000		9,450
7.625% 7/15/19	105,000		101,850
7.75% 6/15/31	25,000		24,250
7.875% 9/1/21	80,000		78,600
8.125% 3/15/12	380,000		389,500
8.625% 6/1/10	80,000		83,700
8.75% 3/15/32	25,000		26,000
9.25% 3/15/04	55,000		56,375
			2,172,624
TOTAL UTILITIES			6,634,162
TOTAL NONCONVERTIBLE BONDS			43,729,390
TOTAL CORPORATE BONDS (Cost $39,915,614)		44,083,965
U.S. Government and Government Agency Obligations - 5.3%

U.S. Government Agency Obligations - 1.4%
Fannie Mae:
2.5% 6/15/08	1,845,000		1,836,153
6.25% 2/1/11	345,000		397,862
7.125% 6/15/10	320,000		395,559
Federal Home Loan Bank:
2.25% 5/15/06	375,000		380,118
2.625% 7/15/08	335,000		334,511
Freddie Mac:
6.25% 7/15/32	166,000		195,320
U.S. Government and Government Agency Obligations - continued
	Principal Amount		Value (Note 1)
U.S. Government Agency Obligations - continued
Freddie Mac: - continued
6.625% 9/15/09	$ 475,000		$ 570,084
6.75% 3/15/31	244,000		303,781
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			4,413,388
U.S. Treasury Obligations - 3.9%
U.S. Treasury Bonds:
6.25% 5/15/30	3,395,000		4,226,510
6.625% 2/15/27	50,000		64,350
8% 11/15/21	100,000		144,871
U.S. Treasury Notes:
1.625% 3/31/05	1,480,000		1,490,175
4.375% 5/15/07	375,000		407,402
6.5% 2/15/10	2,720,000		3,299,806
6.75% 5/15/05	2,090,000		2,301,694
TOTAL U.S. TREASURY OBLIGATIONS			11,934,808
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $15,634,830)		16,348,196
U.S. Government Agency - Mortgage Securities - 11.1%

Fannie Mae - 8.9%
4.5% 7/1/18 (f)	1,500,000		1,530,000
5% 7/1/18 (f)	5,738,000		5,924,485
5.5% 2/1/11 to 11/1/17	345,609		359,373
5.5% 7/1/33 (f)	4,500,000		4,650,469
6% 4/1/09 to 1/1/29	3,900,611		4,071,981
6% 7/1/33	467,714		485,838
6.5% 9/1/16 to 8/1/32	6,966,205		7,275,805
6.5% 7/1/18 (f)	1,725,000		1,819,336
7% 12/1/24 to 2/1/28	337,165		356,682
7.5% 10/1/26 to 8/1/28	981,316		1,044,887
TOTAL FANNIE MAE			27,518,856
Freddie Mac - 0.0%
7.5% 1/1/27	79,081		84,418
Government National Mortgage Association - 2.2%
6% 7/1/33 (f)	1,999,993		2,094,368
6.5% 10/15/27 to 8/15/32	2,427,243		2,551,238
7% 1/15/28 to 7/15/32	1,612,083		1,702,970
7.5% 6/15/27 to 3/15/28	313,568		333,635
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			6,682,211
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $33,817,774)		34,285,485

Asset-Backed Securities - 1.2%
	Principal Amount		Value (Note 1)
American Express Credit Account Master Trust:
Series 1999-2 Class B, 6.1% 12/15/06	$ 200,000		$ 208,300
Series 2001-6 Class B, 1.53% 12/15/08 (g)	200,000		200,576
Capital One Master Trust:
Series 2001-3A Class A, 5.45% 3/16/09	400,000		432,263
Series 2001-4 Class B, 1.55% 4/16/07 (g)	200,000		199,272
Chase Manhattan Auto Owner Trust Series 2001-A:
Class A4, 5.07% 2/15/08	430,000		452,010
Class CTFS, 5.06% 2/15/08	45,602		46,927
Discover Card Master Trust I Series 2001-6 Class A, 5.75% 12/15/08	600,000		662,763
Ford Credit Auto Owner Trust:
Series 2001-B Class B, 5.71% 9/15/05	90,000		93,579
Series 2001-C Class B, 5.54% 12/15/05	100,000		103,467
Honda Auto Receivables Owner Trust Series 2001-2:
Class A3, 4.67% 3/18/05	131,270		133,108
Class A4, 5.09% 10/18/06	145,000		149,336
MBNA Credit Card Master Note Trust Series 2001-A1 Class A1, 5.75% 10/15/08	200,000		220,374
Sears Credit Account Master Trust II:
Series 2000-1 Class B, 7.5% 11/15/07	200,000		204,062
Series 2000-2 Class A, 6.75% 9/16/09	365,000		403,772
Series 2001-2 Class B, 1.47% 6/16/08 (g)	200,000		199,563
TOTAL ASSET-BACKED SECURITIES (Cost $3,501,911)		3,709,372

Commercial Mortgage Securities - 0.9%

CS First Boston Mortgage Securities Corp.:
sequential pay Series 2000-C1 Class A2, 7.545% 4/14/62	500,000		609,121
Series 1997-C2 Class D, 7.27% 1/17/35	105,000		118,288
DLJ Commercial Mortgage Corp. sequential pay Series 2000-CF1 Class A1B, 7.62% 6/10/33	500,000		611,381
GS Mortgage Securities Corp. II:
Series 1998-GLII Class E, 7.1904% 4/13/31 (g)	120,000		118,348
Series 2003-C1 Class A2A, 3.59% 1/10/40	125,000		128,037
J.P. Morgan Commercial Mortgage Finance Corp. sequential pay Series 2000-C9 Class A2, 7.77% 10/15/32	225,000		272,320
Commercial Mortgage Securities - continued
	Principal Amount		Value (Note 1)
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A:
Class B, 4.13% 11/20/37 (e)	$ 110,000		$ 109,519
Class C, 4.13% 11/20/37 (e)	110,000		106,055
Thirteen Affiliates of General Growth Properties, Inc. sequential pay Series 1 Class A2, 6.602% 11/15/07 (e)	500,000		567,886
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $2,305,396)		2,640,955

Municipal Securities - 0.0%

Illinois Gen. Oblig. 5.1% 6/1/33 (Cost $170,000)	170,000		167,173
Foreign Government and Government Agency Obligations - 0.3%

Chilean Republic:
5.5% 1/15/13	150,000		158,700
6.875% 4/28/09	150,000		172,575
7.125% 1/11/12	160,000		186,600
Polish Government 6.25% 7/3/12	225,000		260,438
State of Israel 4.625% 6/15/13	145,000		142,372
United Mexican States 4.625% 10/8/08	150,000		153,150
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $973,697)		1,073,835

Money Market Funds - 20.9%
	Shares
Fidelity Cash Central Fund, 1.18% (b) (Cost $64,403,295)	64,403,295	64,403,295

TOTAL INVESTMENT PORTFOLIO - 106.2%

(Cost $308,994,374)

327,868,684

NET OTHER ASSETS - (6.2)%			(19,085,290)
NET ASSETS - 100%		$ 308,783,394

Swap Agreements
	Expiration Date	Notional Amount	Unrealized Appreciation/ (Depreciation)
Interest Rate Swap
Receive quarterly a fixed rate equal to 3.0732% and pay quarterly a floating rate based on 3-month LIBOR with Morgan Stanley, Inc.	April 2007	$ 2,830,000	$ 80,592

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(c) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(d) Debt obligation initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(g) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

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	16.4%
AAA,AA,A	4.9
BBB	4.5
BB	2.5
B	3.9
CCC,CC,C	0.9
Equities	52.2
Short-Term Investments and Net Other Assets	14.7
Total	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.

Purchases and sales of securities, other than short-term securities, aggregated $142,661,369 and $145,757,929, respectively, of which long-term U.S. government and government agency obligations aggregated $87,008,475 and $92,966,760, respectively.

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 $4,303 for the period.

Income Tax Information

At December 31, 2002 the fund had a capital loss carryforward of approximately $22,278,000 of which $1,350,000, $11,276,000 and $9,652,000 will expire on December 31, 2008, 2009, 2010, respectively.

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

Semiannual Report

Fidelity Variable Insurance Products: Balanced Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (cost $308,994,374) - See accompanying schedule		$ 327,868,684
Cash		186,954
Receivable for investments sold		381,505
Receivable for fund shares sold		458,486
Dividends receivable		177,885
Interest receivable		1,174,468
Unrealized gain on swap agreements		80,592
Total assets		330,328,574

Liabilities
Payable for investments purchased Regular delivery	$ 4,418,172
Delayed delivery	16,727,911
Payable for fund shares redeemed	215,471
Accrued management fee	110,779
Distribution fees payable	6,712
Other payables and accrued expenses	66,135
Total liabilities		21,545,180

Net Assets		$ 308,783,394
Net Assets consist of:
Paid in capital		$ 308,790,922
Undistributed net investment income		3,636,661
Accumulated undistributed net realized gain (loss) on investments		(22,599,525)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		18,955,336
Net Assets		$ 308,783,394
Initial Class: Net Asset Value, offering price and redemption price per share ($263,865,568 ÷ 20,339,756 shares)		$ 12.97
Service Class: Net Asset Value, offering price and redemption price per share ($21,108,166 ÷ 1,633,558 shares)		$ 12.92
Service Class 2: Net Asset Value, offering price and redemption price per share ($23,809,660 ÷ 1,850,029 shares)		$ 12.87

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 1,220,154
Interest		3,098,120
Total income		4,318,274

Expenses
Management fee	$ 609,270
Transfer agent fees	100,262
Distribution fees	35,839
Accounting fees and expenses	55,145
Non-interested trustees' compensation	564
Custodian fees and expenses	14,463
Audit	28,573
Legal	363
Miscellaneous	42,278
Total expenses before reductions	886,757
Expense reductions	(7,991)	878,766
Net investment income (loss)		3,439,508
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	1,000,975
Swap agreements	8,186
Total net realized gain (loss)		1,009,161
Change in net unrealized appreciation (depreciation) on: Investment securities	22,250,556
Assets and liabilities in foreign currencies	114
Swap agreements	80,592
Total change in net unrealized appreciation (depreciation)		22,331,262
Net gain (loss)		23,340,423
Net increase (decrease) in net assets resulting from operations		$ 26,779,931

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

Semiannual Report

Fidelity Variable Insurance Products: Balanced Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003	Year ended December 31,
Increase (Decrease) in Net Assets	(Unaudited)	2002
Operations
Net investment income (loss)	$ 3,439,508	$ 8,209,006
Net realized gain (loss)	1,009,161	(9,031,439)
Change in net unrealized appreciation (depreciation)	22,331,262	(27,890,095)
Net increase (decrease) in net assets resulting from operations	26,779,931	(28,712,528)
Distributions to shareholders from net investment income	(7,974,845)	(8,837,001)
Share transactions - net increase (decrease)	16,318,448	4,349,125
Total increase (decrease) in net assets	35,123,534	(33,200,404)

Net Assets
Beginning of period	273,659,860	306,860,264
End of period (including undistributed net investment income of $3,636,661 and undistributed net investment income of $8,300,210, respectively)	$ 308,783,394	$ 273,659,860

Other Information:
Share Transactions	Six months ended June 30, 2003
	Initial Class	Service Class	Service Class 2
Shares Sold	2,065,200	43,828	452,474
Reinvested	599,512	50,167	45,486
Redeemed	(1,656,108)	(113,689)	(189,528)
Net increase (decrease)	1,008,604	(19,694)	308,432

Dollars Sold	$ 25,985,865	$ 529,502	$ 5,561,138
Reinvested	6,882,396	573,909	518,540
Redeemed	(20,018,237)	(1,377,975)	(2,336,690)
Net increase (decrease)	$ 12,850,024	$ (274,564)	$ 3,742,988

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
Shares Sold	3,458,033	233,061	650,930
Reinvested	586,697	54,643	37,261
Redeemed	(4,004,430)	(497,329)	(380,772)
Net increase (decrease)	40,300	(209,625)	307,419

Dollars Sold	$ 44,057,181	$ 3,005,489	$ 8,292,512
Reinvested	7,644,656	709,812	482,533
Redeemed	(49,132,561)	(6,145,338)	(4,565,159)
Net increase (decrease)	$ 2,569,276	$ (2,430,037)	$ 4,209,886

Distributions	Six months ended June 30, 2003
	Initial Class	Service Class	Service Class 2
From net investment income	$ 6,882,396	$ 573,909	$ 518,540
	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 7,644,656	$ 709,812	$ 482,533

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

Balanced Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 12.16	$ 13.72	$ 14.45	$ 16.00	$ 16.11	$ 14.58
Income from Investment Operations
Net investment income (loss)^E	.15	.36	.42	.48	.45	.44
Net realized and unrealized gain (loss)	1.02	(1.53)	(.63)	(1.15)	.24	2.00
Total from investment operations	1.17	(1.17)	(.21)	(.67)	.69	2.44
Distributions from net investment income	(.36)	(.39)	(.52)	(.48)	(.37)	(.36)
Distributions from net realized gain	-	-	-	(.35)	(.43)	(.55)
Distributions in excess of net realized gain	-	-	-	(.05)	-	-
Total distributions	(.36)	(.39)	(.52)	(.88)	(.80)	(.91)
Net asset value, end of period	$ 12.97	$ 12.16	$ 13.72	$ 14.45	$ 16.00	$ 16.11
Total Return^B,C,D	10.01%	(8.72)%	(1.58)%	(4.30)%	4.55%	17.64%
Ratios to Average Net Assets^F
Expenses before expense reductions	.60%^A	.57%	.57%	.58%	.57%	.59%
Expenses net of voluntary waivers, if any	.60%^A	.57%	.57%	.58%	.57%	.59%
Expenses net of all reductions	.60%^A	.55%	.55%	.56%	.55%	.58%
Net investment income (loss)	2.47%^A	2.84%	3.11%	3.18%	2.87%	2.94%
Supplemental Data
Net assets, end of period (000 omitted)	$ 263,866	$ 235,064	$ 264,608	$ 250,802	$ 325,371	$ 307,681
Portfolio turnover rate	113%^A	134%	126%	126%	108%	94%

^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.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 12.11	$ 13.66	$ 14.39	$ 15.94	$ 16.07	$ 14.59
Income from Investment Operations
Net investment income (loss)^E	.15	.34	.41	.46	.43	.41
Net realized and unrealized gain (loss)	1.01	(1.51)	(.64)	(1.14)	.24	1.98
Total from investment operations	1.16	(1.17)	(.23)	(.68)	.67	2.39
Distributions from net investment income	(.35)	(.38)	(.50)	(.47)	(.37)	(.36)
Distributions from net realized gain	-	-	-	(.35)	(.43)	(.55)
Distributions in excess of net realized gain	-	-	-	(.05)	-	-
Total distributions	(.35)	(.38)	(.50)	(.87)	(.80)	(.91)
Net asset value, end of period	$ 12.92	$ 12.11	$ 13.66	$ 14.39	$ 15.94	$ 16.07
Total Return^B,C,D	9.95%	(8.75)%	(1.72)%	(4.38)%	4.43%	17.27%
Ratios to Average Net Assets^F
Expenses before expense reductions	.71%^A	.67%	.67%	.68%	.67%	.70%
Expenses net of voluntary waivers, if any	.71%^A	.67%	.67%	.68%	.67%	.70%
Expenses net of all reductions	.70%^A	.65%	.65%	.66%	.66%	.69%
Net investment income (loss)	2.37%^A	2.74%	3.01%	3.08%	2.77%	2.79%
Supplemental Data
Net assets, end of period (000 omitted)	$ 21,108	$ 20,019	$ 25,455	$ 27,563	$ 27,054	$ 9,562
Portfolio turnover rate	113%^A	134%	126%	126%	108%	94%

^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.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 12.05	$ 13.61	$ 14.37	$ 15.59
Income from Investment Operations
Net investment income (loss)^E	.13	.32	.38	.40
Net realized and unrealized gain (loss)	1.02	(1.51)	(.63)	(.75)
Total from investment operations	1.15	(1.19)	(.25)	(.35)
Distributions from net investment income	(.33)	(.37)	(.51)	(.47)
Distributions from net realized gain	-	-	-	(.35)
Distributions in excess of net realized gain	-	-	-	(.05)
Total distributions	(.33)	(.37)	(.51)	(.87)
Net asset value, end of period	$ 12.87	$ 12.05	$ 13.61	$ 14.37
Total Return^B,C,D	9.90%	(8.93)%	(1.87)%	(2.37)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.86%^A	.83%	.83%	.85%^A
Expenses net of voluntary waivers, if any	.86%^A	.83%	.83%	.85%^A
Expenses net of all reductions	.86%^A	.81%	.81%	.83%^A
Net investment income (loss)	2.22%^A	2.58%	2.85%	2.91%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 23,810	$ 18,577	$ 16,798	$ 4,797
Portfolio turnover rate	113%^A	134%	126%	126%

^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 For the period January 12, 2000 (commencement of sale of shares) to December 31, 2000.

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

Semiannual Report

Fidelity Variable Insurance Products: Growth & Income Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Omnicom Group, Inc.	5.4
EchoStar Communications Corp. Class A	5.4
Gillette Co.	5.1
BellSouth Corp.	4.7
Merrill Lynch & Co., Inc.	4.5
	25.1
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	19.8
Consumer Discretionary	18.9
Consumer Staples	15.4
Telecommunication Services	8.1
Industrials	7.0

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks	85.2%
	Short-Term Investments and Net Other Assets	14.8%

* Foreign investments

1.0%

Semiannual Report

Fidelity Variable Insurance Products: Growth & Income Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 85.2%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 18.9%
Hotels, Restaurants & Leisure - 0.2%
Starwood Hotels & Resorts Worldwide, Inc. unit	96,100		$ 2,747,499
Household Durables - 0.0%
Garmin Ltd. (a)	11,010		438,969
Media - 14.2%
Comcast Corp. Class A (special) (a)	283,000		8,158,890
E.W. Scripps Co. Class A	326,600		28,975,952
EchoStar Communications Corp. Class A (a)	1,918,800		66,428,856
Omnicom Group, Inc.	935,600		67,082,519
Pegasus Communications Corp. Class A (a)	142,909		4,227,248
			174,873,465
Multiline Retail - 2.8%
Dollar Tree Stores, Inc. (a)	286,300		9,084,299
Kohl's Corp. (a)	487,000		25,022,060
			34,106,359
Specialty Retail - 1.0%
Hollywood Entertainment Corp. (a)	698,800		12,019,360
Textiles Apparel & Luxury Goods - 0.7%
Liz Claiborne, Inc.	249,800		8,805,450
TOTAL CONSUMER DISCRETIONARY			232,991,102
CONSUMER STAPLES - 15.4%
Beverages - 1.0%
The Coca-Cola Co.	261,800		12,150,138
Food & Staples Retailing - 4.7%
Sysco Corp.	164,700		4,947,588
Wal-Mart Stores, Inc.	783,600		42,055,812
Walgreen Co.	358,000		10,775,800
			57,779,200
Food Products - 0.8%
McCormick & Co., Inc. (non-vtg.)	384,200		10,450,240
Household Products - 2.7%
Colgate-Palmolive Co.	264,000		15,298,800
Kimberly-Clark Corp.	342,400		17,852,736
			33,151,536
Personal Products - 5.1%
Gillette Co.	1,982,100		63,149,706
Tobacco - 1.1%
Altria Group, Inc.	284,460		12,925,862
TOTAL CONSUMER STAPLES			189,606,682
ENERGY - 2.7%
Oil & Gas - 2.7%
Exxon Mobil Corp.	919,956		33,035,620

	Shares		Value (Note 1)
FINANCIALS - 19.8%
Capital Markets - 10.9%
Goldman Sachs Group, Inc.	319,600		$ 26,766,500
Merrill Lynch & Co., Inc.	1,178,600		55,017,048
Morgan Stanley	1,229,200		52,548,300
			134,331,848
Commercial Banks - 4.7%
Bank One Corp.	180,300		6,703,554
Wells Fargo & Co.	1,008,600		50,833,440
			57,536,994
Consumer Finance - 0.7%
American Express Co.	216,000		9,030,960
Insurance - 3.1%
Allstate Corp.	263,200		9,383,080
American International Group, Inc.	390,405		21,542,548
PartnerRe Ltd.	111,600		5,703,876
Travelers Property Casualty Corp. Class B	141,300		2,228,301
			38,857,805
Real Estate - 0.4%
Equity Office Properties Trust	165,800		4,478,258
TOTAL FINANCIALS			244,235,865
HEALTH CARE - 6.6%
Biotechnology - 2.8%
Amgen, Inc. (a)	514,800		34,203,312
Health Care Equipment & Supplies - 1.3%
Advanced Medical Optics, Inc. (a)	1		17
Alcon, Inc.	124,300		5,680,510
Medtronic, Inc.	207,300		9,944,181
			15,624,708
Pharmaceuticals - 2.5%
Allergan, Inc.	98,500		7,594,350
Pfizer, Inc.	680,700		23,245,905
			30,840,255
TOTAL HEALTH CARE			80,668,275
INDUSTRIALS - 7.0%
Aerospace & Defense - 1.3%
Lockheed Martin Corp.	115,500		5,494,335
Northrop Grumman Corp.	83,100		7,170,699
United Technologies Corp.	58,500		4,143,555
			16,808,589
Airlines - 1.5%
Continental Airlines, Inc. Class B (a)	619,600		9,275,412
Mesaba Holdings, Inc. (a)	435,200		2,685,184
Northwest Airlines Corp. (a)	320,000		3,612,800
Southwest Airlines Co.	179,500		3,087,400
			18,660,796
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Building Products - 0.5%
American Standard Companies, Inc. (a)	81,100		$ 5,995,723
Commercial Services & Supplies - 0.4%
Avery Dennison Corp.	92,400		4,638,480
Industrial Conglomerates - 3.3%
General Electric Co.	1,413,000		40,524,840
TOTAL INDUSTRIALS			86,628,428
INFORMATION TECHNOLOGY - 5.8%
Communications Equipment - 1.4%
Cisco Systems, Inc. (a)	1,001,100		16,708,359
Nokia Corp. sponsored ADR	27,900		458,397
			17,166,756
Computers & Peripherals - 0.1%
Lexmark International, Inc. Class A (a)	14,000		990,780
IT Services - 1.1%
First Data Corp.	178,400		7,392,896
Paychex, Inc.	237,719		6,967,544
			14,360,440
Software - 3.2%
Microsoft Corp.	1,542,800		39,511,108
TOTAL INFORMATION TECHNOLOGY			72,029,084
MATERIALS - 0.0%
Chemicals - 0.0%
Praxair, Inc.	2,300		138,230
Containers & Packaging - 0.0%
Ball Corp.	6		273
TOTAL MATERIALS			138,503
TELECOMMUNICATION SERVICES - 8.1%
Diversified Telecommunication Services - 8.1%
BellSouth Corp.	2,196,500		58,492,795
SBC Communications, Inc.	699,630		17,875,547
Verizon Communications, Inc.	609,300		24,036,885
			100,405,227
UTILITIES - 0.9%
Electric Utilities - 0.9%
Entergy Corp.	208,300		10,994,074
FPL Group, Inc.	2,800		187,180
			11,181,254
TOTAL COMMON STOCKS (Cost $1,048,508,646)		1,050,920,040
Money Market Funds - 15.6%
	Shares		Value (Note 1)
Fidelity Cash Central Fund, 1.18% (b)	181,397,127		$ 181,397,127
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	10,672,000		10,672,000
TOTAL MONEY MARKET FUNDS (Cost $192,069,127)		192,069,127
TOTAL INVESTMENT PORTFOLIO - 100.8% (Cost $1,240,577,773)			1,242,989,167
NET OTHER ASSETS - (0.8)%			(9,292,248)
NET ASSETS - 100%		$ 1,233,696,919

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $227,073,299 and $166,276,369, respectively.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $156,531,000 of which $49,149,000 and $107,382,000 will expire on December 31, 2009 and 2010, respectively.

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

Growth & Income Portfolio

Fidelity Variable Insurance Products: Growth & Income Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $9,977,470) (cost $1,240,577,773) - See accompanying schedule		$ 1,242,989,167
Receivable for fund shares sold		928,994
Dividends receivable		1,089,737
Interest receivable		168,917
Other receivables		2,876
Total assets		1,245,179,691

Liabilities
Payable for fund shares redeemed	$ 143,168
Accrued management fee	496,589
Distribution fees payable	69,228
Other payables and accrued expenses	101,787
Collateral on securities loaned, at value	10,672,000
Total liabilities		11,482,772

Net Assets		$ 1,233,696,919
Net Assets consist of:
Paid in capital		$ 1,380,963,197
Undistributed net investment income		5,982,042
Accumulated undistributed net realized gain (loss) on investments		(155,659,714)
Net unrealized appreciation (depreciation) on investments		2,411,394
Net Assets		$ 1,233,696,919
Initial Class: Net Asset Value, offering price and redemption price per share ($718,184,532 ÷ 59,614,721 shares)		$ 12.05

Service Class: Net Asset Value, offering price and redemption price per share ($297,131,341 ÷ 24,799,252 shares)		$ 11.98

Service Class 2: Net Asset Value, offering price and redemption price per share ($218,381,046 ÷ 18,341,629 shares)		$ 11.91

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 7,482,890
Interest		1,671,994
Security lending		6,583
Total income		9,161,467

Expenses
Management fee	$ 2,624,216
Transfer agent fees	379,811
Distribution fees	344,563
Accounting and security lending fees	137,721
Non-interested trustees' compensation	2,155
Custodian fees and expenses	9,255
Audit	16,966
Legal	1,868
Miscellaneous	138,549
Total expenses before reductions	3,655,104
Expense reductions	(12,064)	3,643,040
Net investment income (loss)		5,518,427
Realized and Unrealized Gain (Loss) Net realized gain (loss) on investment securities		4,634,501
Change in net unrealized appreciation (depreciation) on investment securities		118,233,941
Net gain (loss)		122,868,442
Net increase (decrease) in net assets resulting from operations		$ 128,386,869

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

Semiannual Report

Fidelity Variable Insurance Prodcuts: Growth & Income Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 5,518,427	$ 14,033,270
Net realized gain (loss)	4,634,501	(105,954,322)
Change in net unrealized appreciation (depreciation)	118,233,941	(123,219,077)
Net increase (decrease) in net assets resulting from operations	128,386,869	(215,140,129)
Distributions to shareholders from net investment income	(12,772,749)	(15,060,404)
Share transactions - net increase (decrease)	88,909,313	8,584,266
Total increase (decrease) in net assets	204,523,433	(221,616,267)

Net Assets
Beginning of period	1,029,173,486	1,250,789,753
End of period (including undistributed net investment income of $5,982,042 and undistributed net investment income of $13,960,647, respectively)	$ 1,233,696,919	$ 1,029,173,486

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
Shares Sold	4,737,097	2,013,931	5,709,430
Reinvested	791,445	298,276	164,516
Redeemed	(4,665,824)	(680,760)	(664,236)
Net increase (decrease)	862,718	1,631,447	5,209,710

Dollars Sold	$ 54,406,937	$ 22,704,364	$ 63,949,398
Reinvested	8,080,656	3,030,479	1,661,614
Redeemed	(50,412,458)	(7,259,374)	(7,252,303)
Net increase (decrease)	$ 12,075,135	$ 18,475,469	$ 58,358,709

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
Shares Sold	5,547,232	3,741,835	8,546,664
Reinvested	858,112	262,919	83,941
Redeemed	(15,376,984)	(2,273,174)	(1,333,545)
Net increase (decrease)	(8,971,640)	1,731,580	7,297,060

Dollars Sold	$ 65,703,944	$ 44,246,058	$ 98,819,591
Reinvested	10,743,568	3,275,965	1,040,871
Redeemed	(175,367,574)	(25,009,314)	(14,868,843)
Net increase (decrease)	$ (98,920,062)	$ 22,512,709	$ 84,991,619

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 8,080,656	$ 3,030,479	$ 1,661,614
From net realized gain	-	-	-
Total	$ 8,080,656	$ 3,030,479	$ 1,661,614

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 10,743,568	$ 3,275,965	$ 1,040,871
From net realized gain	-	-	-
Total	$ 10,743,568	$ 3,275,965	$ 1,040,871

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

Growth & Income Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.86	$ 13.19	$ 15.26	$ 17.30	$ 16.15	$ 12.53
Income from Investment Operations
Net investment income (loss)^E	.06	.15	.18	.20	.18	.15
Net realized and unrealized gain (loss)	1.27	(2.32)	(1.45)	(.81)	1.27	3.54
Total from investment operations	1.33	(2.17)	(1.27)	(.61)	1.45	3.69
Distributions from net investment income	(.14)	(.16)	(.19)	(.19)	(.10)	-
Distributions from net realized gain	-	-	(.61)	(1.24)	(.20)	(.07)
Total distributions	(.14)	(.16)	(.80)	(1.43)	(.30)	(.07)
Net asset value, end of period	$ 12.05	$ 10.86	$ 13.19	$ 15.26	$ 17.30	$ 16.15
Total Return^B,C,D	12.48%	(16.61)%	(8.75)%	(3.62)%	9.17%	29.59%
Ratios to Average Net Assets^F
Expenses before expense reductions	.61%^A	.59%	.58%	.58%	.60%	.61%
Expenses net of voluntary waivers, if any	.61%^A	.59%	.58%	.58%	.60%	.61%
Expenses net of all reductions	.61%^A	.58%	.56%	.57%	.59%	.60%
Net investment income (loss)	1.08%^A	1.30%	1.34%	1.26%	1.08%	1.08%
Supplemental Data
Net assets, end of period (000 omitted)	$ 718,185	$ 638,124	$ 893,359	$ 1,011,393	$ 1,259,396	$ 1,141,806
Portfolio turnover rate	35%^A	43%	58%	72%	58%	66%

^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.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 10.80	$ 13.12	$ 15.19	$ 17.24	$ 16.11	$ 12.53
Income from Investment Operations
Net investment income (loss)^E	.05	.14	.16	.18	.16	.15
Net realized and unrealized gain (loss)	1.26	(2.31)	(1.44)	(.80)	1.27	3.50
Total from investment operations	1.31	(2.17)	(1.28)	(.62)	1.43	3.65
Distributions from net investment income	(.13)	(.15)	(.18)	(.19)	(.10)	-
Distributions from net realized gain	-	-	(.61)	(1.24)	(.20)	(.07)
Total distributions	(.13)	(.15)	(.79)	(1.43)	(.30)	(.07)
Net asset value, end of period	$ 11.98	$ 10.80	$ 13.12	$ 15.19	$ 17.24	$ 16.11
Total Return^B,C,D	12.35%	(16.69)%	(8.85)%	(3.69)%	9.06%	29.27%
Ratios to Average Net Assets^F
Expenses before expense reductions	.71%^A	.69%	.68%	.69%	.70%	.71%
Expenses net of voluntary waivers, if any	.71%^A	.69%	.68%	.69%	.70%	.71%
Expenses net of all reductions	.71%^A	.68%	.66%	.68%	.69%	.70%
Net investment income (loss)	.98%^A	1.20%	1.24%	1.16%	.98%	1.05%
Supplemental Data
Net assets, end of period (000 omitted)	$ 297,131	$ 250,160	$ 281,194	$ 212,994	$ 95,600	$ 18,375
Portfolio turnover rate	35%^A	43%	58%	72%	58%	66%

^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.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 10.73	$ 13.07	$ 15.17	$ 16.94
Income from Investment Operations
Net investment income (loss)^E	.05	.12	.14	.15
Net realized and unrealized gain (loss)	1.25	(2.30)	(1.44)	(.49)
Total from investment operations	1.30	(2.18)	(1.30)	(.34)
Distributions from net investment income	(.12)	(.16)	(.19)	(.19)
Distributions from net realized gain	-	-	(.61)	(1.24)
Total distributions	(.12)	(.16)	(.80)	(1.43)
Net asset value, end of period	$ 11.91	$ 10.73	$ 13.07	$ 15.17
Total Return^B,C,D	12.32%	(16.84)%	(9.01)%	(2.11)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.86%^A	.85%	.84%	.85%^A
Expenses net of voluntary waivers, if any	.86%^A	.85%	.84%	.85%^A
Expenses net of all reductions	.86%^A	.84%	.82%	.84%^A
Net investment income (loss)	.83%^A	1.05%	1.08%	1.00%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 218,381	$ 140,890	$ 76,237	$ 13,025
Portfolio turnover rate	35%^A	43%	58%	72%

^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 For the period January 12, 2000 (commencement of operations) to December 31, 2000.

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

Growth & Income Portfolio

Fidelity Variable Insurance Products: Growth Opportunities Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Gillette Co.	3.6
Microsoft Corp.	3.4
Pfizer, Inc.	3.1
The Coca-Cola Co.	2.9
Citigroup, Inc.	2.9
	15.9
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Information Technology	17.1
Health Care	16.7
Consumer Discretionary	16.3
Financials	12.7
Consumer Staples	11.1

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks and Equity Futures	97.2%
	Short-Term Investments and Net Other Assets	2.8%

* Foreign investments

5.7%

Semiannual Report

Fidelity Variable Insurance Products: Growth Opportunities Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 91.1%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 16.3%
Hotels, Restaurants & Leisure - 0.9%
Darden Restaurants, Inc.	21,300		$ 404,274
Hilton Hotels Corp.	59,200		757,168
Mandalay Resort Group	21,500		684,775
Panera Bread Co. Class A (a)	31,100		1,244,000
Starwood Hotels & Resorts Worldwide, Inc. unit	102,500		2,930,475
			6,020,692
Internet & Catalog Retail - 0.6%
Amazon.com, Inc. (a)	104,000		3,794,960
Media - 12.1%
AOL Time Warner, Inc. (a)	816,500		13,137,485
Cablevision Systems Corp. - NY Group Class A (a)	63,100		1,309,956
Clear Channel Communications, Inc. (a)	111,500		4,726,485
Comcast Corp.:
Class A (a)	24,359		735,155
Class A (special) (a)	295,500		8,519,265
Fox Entertainment Group, Inc. Class A (a)	433,400		12,473,252
General Motors Corp. Class H (a)	85,100		1,090,131
Interpublic Group of Companies, Inc.	63,100		844,278
Liberty Media Corp. Class A (a)	335,800		3,881,848
McGraw-Hill Companies, Inc.	6,400		396,800
Meredith Corp.	69,700		3,066,800
News Corp. Ltd. ADR	164,800		4,988,496
Omnicom Group, Inc.	73,300		5,255,610
Univision Communications, Inc. Class A (a)	169,700		5,158,880
Viacom, Inc. Class B (non-vtg.) (a)	322,820		14,094,321
Walt Disney Co.	85,600		1,690,600
			81,369,362
Multiline Retail - 0.1%
Dollar General Corp.	21,000		383,460
Kohl's Corp. (a)	10,600		544,628
			928,088
Specialty Retail - 1.8%
Home Depot, Inc.	231,100		7,654,032
Lowe's Companies, Inc.	16,600		712,970
Staples, Inc. (a)	225,900		4,145,265
			12,512,267
Textiles Apparel & Luxury Goods - 0.8%
Adidas-Salomon AG	16,087		1,379,376
Coach, Inc. (a)	26,800		1,333,032
NIKE, Inc. Class B	47,100		2,519,379
			5,231,787
TOTAL CONSUMER DISCRETIONARY			109,857,156

	Shares		Value (Note 1)
CONSUMER STAPLES - 11.1%
Beverages - 3.3%
PepsiCo, Inc.	52,900		$ 2,354,050
The Coca-Cola Co.	422,100		19,589,661
			21,943,711
Food & Staples Retailing - 1.3%
Costco Wholesale Corp. (a)	35,900		1,313,940
Sysco Corp.	43,000		1,291,720
Wal-Mart Stores, Inc.	119,900		6,435,033
			9,040,693
Food Products - 1.7%
Dean Foods Co. (a)	142,500		4,488,750
Kraft Foods, Inc. Class A	68,400		2,226,420
The J.M. Smucker Co.	80,078		3,194,311
Tyson Foods, Inc. Class A	155,800		1,654,596
			11,564,077
Household Products - 0.4%
Colgate-Palmolive Co.	26,900		1,558,855
Procter & Gamble Co.	10,820		964,928
			2,523,783
Personal Products - 3.8%
Avon Products, Inc.	23,222		1,444,408
Gillette Co.	758,870		24,177,597
			25,622,005
Tobacco - 0.6%
Altria Group, Inc.	90,320		4,104,141
TOTAL CONSUMER STAPLES			74,798,410
ENERGY - 6.0%
Energy Equipment & Services - 2.7%
Baker Hughes, Inc.	88,100		2,957,517
Cooper Cameron Corp. (a)	38,500		1,939,630
Helmerich & Payne, Inc.	25,200		735,840
Schlumberger Ltd. (NY Shares)	265,900		12,648,863
			18,281,850
Oil & Gas - 3.3%
BP PLC sponsored ADR	171,290		7,197,606
ChevronTexaco Corp.	21,000		1,516,200
ConocoPhillips	53,530		2,933,444
Exxon Mobil Corp.	301,400		10,823,274
			22,470,524
TOTAL ENERGY			40,752,374
FINANCIALS - 12.7%
Capital Markets - 4.2%
Bank of New York Co., Inc.	15,700		451,375
Charles Schwab Corp.	119,100		1,201,719
Goldman Sachs Group, Inc.	53,500		4,480,625
Janus Capital Group, Inc.	81,500		1,336,600
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Capital Markets - continued
Lehman Brothers Holdings, Inc.	10,700		$ 711,336
Merrill Lynch & Co., Inc.	250,300		11,684,004
Morgan Stanley	192,000		8,208,000
			28,073,659
Commercial Banks - 0.6%
Bank of America Corp.	38,100		3,011,043
Bank One Corp.	33,700		1,252,966
			4,264,009
Consumer Finance - 1.5%
American Express Co.	213,800		8,938,978
SLM Corp.	31,200		1,222,104
			10,161,082
Diversified Financial Services - 2.9%
Citigroup, Inc.	452,507		19,367,300
Insurance - 1.9%
American International Group, Inc.	202,062		11,149,781
Travelers Property Casualty Corp.:
Class A	65,709		1,044,773
Class B	60,423		952,871
			13,147,425
Thrifts & Mortgage Finance - 1.6%
Fannie Mae	70,000		4,720,800
Freddie Mac	116,900		5,935,013
			10,655,813
TOTAL FINANCIALS			85,669,288
HEALTH CARE - 16.7%
Biotechnology - 0.7%
Celgene Corp. (a)	48,900		1,486,560
CV Therapeutics, Inc. (a)	16,000		474,560
Genentech, Inc. (a)	21,300		1,536,156
IDEC Pharmaceuticals Corp. (a)	26,700		907,800
Vertex Pharmaceuticals, Inc. (a)	28,000		408,800
			4,813,876
Health Care Equipment & Supplies - 3.9%
Alcon, Inc.	98,400		4,496,880
Bausch & Lomb, Inc.	48,000		1,800,000
Beckman Coulter, Inc.	42,500		1,727,200
Becton, Dickinson & Co.	159,800		6,208,230
Boston Scientific Corp. (a)	37,400		2,285,140
C.R. Bard, Inc.	37,200		2,652,732
Medtronic, Inc.	103,800		4,979,286
St. Jude Medical, Inc. (a)	44,280		2,546,100
			26,695,568
Health Care Providers & Services - 1.2%
Cardinal Health, Inc.	48,005		3,086,722

	Shares		Value (Note 1)
McKesson Corp.	122,700		$ 4,385,298
WebMD Corp. (a)	59,700		646,551
			8,118,571
Pharmaceuticals - 10.9%
Abbott Laboratories	201,830		8,832,081
Barr Laboratories, Inc. (a)	54,745		3,585,798
Bristol-Myers Squibb Co.	41,400		1,124,010
Eli Lilly & Co.	42,900		2,958,813
Johnson & Johnson	124,400		6,431,480
Merck & Co., Inc.	310,600		18,806,830
Novartis AG sponsored ADR	51,600		2,054,196
Pfizer, Inc.	619,793		21,165,931
Schering-Plough Corp.	107,600		2,001,360
Wyeth	141,000		6,422,550
			73,383,049
TOTAL HEALTH CARE			113,011,064
INDUSTRIALS - 7.7%
Aerospace & Defense - 0.5%
Lockheed Martin Corp.	10,370		493,301
Northrop Grumman Corp.	34,100		2,942,489
			3,435,790
Air Freight & Logistics - 0.8%
FedEx Corp.	63,000		3,907,890
United Parcel Service, Inc. Class B	21,300		1,356,810
			5,264,700
Airlines - 1.0%
Alaska Air Group, Inc. (a)	42,100		903,045
Delta Air Lines, Inc.	61,200		898,416
Southwest Airlines Co.	267,450		4,600,140
			6,401,601
Industrial Conglomerates - 4.1%
3M Co.	44,900		5,791,202
General Electric Co.	587,850		16,859,538
Tyco International Ltd.	260,100		4,936,698
			27,587,438
Machinery - 1.0%
Caterpillar, Inc.	58,100		3,233,846
Danaher Corp.	53,600		3,647,480
			6,881,326
Road & Rail - 0.3%
CSX Corp.	34,290		1,031,786
Union Pacific Corp.	19,740		1,145,315
			2,177,101
TOTAL INDUSTRIALS			51,747,956
INFORMATION TECHNOLOGY - 17.1%
Communications Equipment - 3.7%
CIENA Corp. (a)	63,800		331,122
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Communications Equipment - continued
Cisco Systems, Inc. (a)	510,460		$ 8,519,577
Corning, Inc. (a)	137,000		1,012,430
Juniper Networks, Inc. (a)	191,400		2,367,618
Motorola, Inc.	509,800		4,807,414
Nokia Corp. sponsored ADR	111,400		1,830,302
Nortel Networks Corp. (a)	833,800		2,251,260
QUALCOMM, Inc.	31,900		1,140,425
Scientific-Atlanta, Inc.	87,000		2,074,080
Sonus Networks, Inc. (a)	181,100		910,933
			25,245,161
Computers & Peripherals - 3.8%
Dell Computer Corp. (a)	238,600		7,625,656
Diebold, Inc.	63,000		2,724,750
EMC Corp. (a)	201,500		2,109,705
Hewlett-Packard Co.	165,200		3,518,760
International Business Machines Corp.	63,400		5,230,500
SanDisk Corp. (a)	63,000		2,542,050
Sun Microsystems, Inc. (a)	374,600		1,723,160
			25,474,581
Electronic Equipment & Instruments - 0.1%
Agilent Technologies, Inc. (a)	26,800		523,940
Internet Software & Services - 1.1%
Yahoo!, Inc. (a)	224,800		7,364,448
IT Services - 0.5%
First Data Corp.	64,200		2,660,448
Paychex, Inc.	22,166		649,685
			3,310,133
Semiconductors & Semiconductor Equipment - 3.5%
Analog Devices, Inc. (a)	126,000		4,387,320
Applied Materials, Inc. (a)	69,600		1,103,856
Intel Corp.	166,710		3,464,901
KLA-Tencor Corp. (a)	8,600		399,814
Lam Research Corp. (a)	42,800		779,388
Marvell Technology Group Ltd. (a)	37,500		1,288,875
National Semiconductor Corp. (a)	168,500		3,322,820
NVIDIA Corp. (a)	37,200		855,972
Omnivision Technologies, Inc. (a)	5,300		165,360
Teradyne, Inc. (a)	53,100		919,161
Texas Instruments, Inc.	309,100		5,440,160
Xilinx, Inc. (a)	72,900		1,845,099
			23,972,726
Software - 4.4%
Adobe Systems, Inc.	154,400		4,951,608
Microsoft Corp.	904,720		23,169,879

	Shares		Value (Note 1)
Red Hat, Inc. (a)	23,300		$ 176,381
VERITAS Software Corp. (a)	52,600		1,508,042
			29,805,910
TOTAL INFORMATION TECHNOLOGY			115,696,899
MATERIALS - 1.8%
Chemicals - 1.4%
Dow Chemical Co.	153,200		4,743,072
International Flavors & Fragrances, Inc.	21,300		680,109
Monsanto Co.	63,000		1,363,320
Praxair, Inc.	38,700		2,325,870
			9,112,371
Metals & Mining - 0.4%
Alcoa, Inc.	106,600		2,718,300
TOTAL MATERIALS			11,830,671
TELECOMMUNICATION SERVICES - 1.6%
Diversified Telecommunication Services - 1.6%
BellSouth Corp.	42,800		1,139,764
SBC Communications, Inc.	60,160		1,537,088
Verizon Communications, Inc.	199,000		7,850,550
			10,527,402
Wireless Telecommunication Services - 0.0%
Nextel Communications, Inc. Class A (a)	21,300		385,104
TOTAL TELECOMMUNICATION SERVICES			10,912,506
UTILITIES - 0.1%
Electric Utilities - 0.1%
PG&E Corp. (a)	21,600		456,840
TOTAL COMMON STOCKS (Cost $560,180,269)		614,733,164

U.S. Treasury Obligations - 0.5%
	Principal Amount
U.S. Treasury Bills, yield at date of purchase 1.1% 7/3/03 (c) (Cost $3,499,679)	$ 3,500,000	3,499,853

Money Market Funds - 9.4%
Fidelity Cash Central Fund, 1.18% (b) (Cost $63,298,284)	63,298,284		63,298,284
TOTAL INVESTMENT PORTFOLIO - 101.0% (Cost $626,978,232)			681,531,301
NET OTHER ASSETS - (1.0)%			(6,552,366)
NET ASSETS - 100%		$ 674,978,935

Futures Contracts
Purchased	Expiration Date	Underlying Face Amount at Value	Unrealized Gain/(Loss)
Equity Index Contracts
169 S&P 500 Index Contracts	Sept. 2003	41,121,925	(1,165,001)

The face value of futures purchased as a percentage of net assets - 6.1%

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(c) 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 $3,499,853.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $176,238,108 and $175,895,807, respectively.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $296,046,000 of which $30,553,000, $149,878,000 and $115,615,000 will expire on December 31, 2008, 2009 and 2010, respectively.

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

Growth Opportunities Portfolio

Fideltiy Variable Insurance Products: Growth Opportunities Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (cost $626,978,232) - See accompanying schedule		$ 681,531,301
Foreign currency held at value (cost $5,724)		5,495
Receivable for fund shares sold		726,859
Dividends receivable		653,112
Interest receivable		60,770
Other receivables		44,716
Total assets		683,022,253

Liabilities
Payable for investments purchased	$ 7,008,232
Payable for fund shares redeemed	592,777
Accrued management fee	332,056
Distribution fees payable	27,044
Other payables and accrued expenses	83,209
Total liabilities		8,043,318

Net Assets		$ 674,978,935
Net Assets consist of:
Paid in capital		$ 923,643,722
Undistributed net investment income		1,632,963
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(303,689,871)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		53,392,121
Net Assets		$ 674,978,935

Initial Class: Net Asset Value, offering price and redemption price per share ($426,272,603 ÷ 32,503,232 shares)		$ 13.11

Service Class: Net Asset Value, offering price and redemption price per share ($199,053,254÷ 15,177,719 shares)		$ 13.11

Service Class 2: Net Asset Value, offering price and redemption price per share ($49,653,078 ÷ 3,803,114 shares)		$ 13.06

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 3,983,086
Interest		421,335
Security lending		8,918
Total income		4,413,339

Expenses
Management fee	$ 1,841,889
Transfer agent fees	227,902
Distribution fees	146,783
Accounting and security lending fees	102,562
Non-interested trustees' compensation	1,280
Custodian fees and expenses	9,711
Audit	30,078
Legal	1,202
Reports to shareholders	173,786
Miscellaneous	1,738
Total expenses before reductions	2,536,931
Expense reductions	(71,844)	2,465,087
Net investment income (loss)		1,948,252
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(7,296,603)
Foreign currency transactions	3,836
Futures contracts	4,157,821
Total net realized gain (loss)		(3,134,946)
Change in net unrealized appreciation (depreciation) on: Investment securities	76,929,413
Assets and liabilities in foreign currencies	315
Futures contracts	798,684
Total change in net unrealized appreciation (depreciation)		77,728,412
Net gain (loss)		74,593,466
Net increase (decrease) in net assets resulting from operations		$ 76,541,718

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

Semiannual Report

Fidelity Variable Insurance Products: Growth Opportunities
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,948,252	$ 4,975,875
Net realized gain (loss)	(3,134,946)	(113,552,394)
Change in net unrealized appreciation (depreciation)	77,728,412	(95,136,556)
Net increase (decrease) in net assets resulting from operations	76,541,718	(203,713,075)
Distributions to shareholders from net investment income	(4,842,328)	(8,515,304)
Share transactions - net increase (decrease)	(29,999,687)	(130,074,012)
Total increase (decrease) in net assets	41,699,703	(342,302,391)

Net Assets
Beginning of period	633,279,232	975,581,623
End of period (including undistributed net investment income of $1,632,963 and undistributed net investment income of $4,525,392, respectively)	$ 674,978,935	$ 633,279,232

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
Shares	Initial Class	Service Class	Service Class 2
Sold	2,458,425	822,622	777,356
Reinvested	309,123	114,933	19,452
Redeemed	(4,707,264)	(1,856,550)	(559,256)
Net increase (decrease)	(1,939,716)	(918,995)	237,552
Dollars
Sold	$ 30,126,962	$ 10,142,604	$ 9,543,304
Reinvested	3,375,626	1,255,069	211,633
Redeemed	(56,171,412)	(21,884,792)	(6,598,681)
Net increase (decrease)	$ (22,668,824)	$ (10,487,119)	$ 3,156,256

Share Transactions	Year ended December 31, 2002
Shares	Initial Class	Service Class	Service Class 2
Sold	4,073,344	2,148,249	2,793,837
Reinvested	418,938	154,434	23,984
Redeemed	(13,173,878)	(4,639,853)	(2,220,662)
Net increase (decrease)	(8,681,596)	(2,337,170)	597,159
Dollars
Sold	$ 53,351,268	$ 28,729,746	$ 36,310,489
Reinvested	5,974,043	2,200,701	340,561
Redeemed	(170,612,111)	(58,753,780)	(27,614,929)
Net increase (decrease)	$ (111,286,800)	$ (27,823,333)	$ 9,036,121

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 3,375,626	$ 1,255,069	$ 211,633
From net realized gain	-	-	-
Total	$ 3,375,626	$ 1,255,069	$ 211,633

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 5,974,042	$ 2,200,701	$ 340,561
From net realized gain	-	-	-
Total	$ 5,974,042	$ 2,200,701	$ 340,561

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

Growth Opportunities Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 11.71	$ 15.13	$ 17.74	$ 23.15	$ 22.88	$ 19.27
Income from Investment Operations
Net investment income (loss)^E	.04	.09	.12	.06	.27	.26
Net realized and unrealized gain (loss)	1.46	(3.37)	(2.67)	(3.77)	.66	4.29
Total from investment operations	1.50	(3.28)	(2.55)	(3.71)	.93	4.55
Distributions from net investment income	(.10)	(.14)	(.06)	(.29)	(.23)	(.21)
Distributions from net realized gain	-	-	-	(1.41)	(.43)	(.73)
Total distributions	(.10)	(.14)	(.06)	(1.70)	(.66)	(.94)
Net asset value, end of period	$ 13.11	$ 11.71	$ 15.13	$ 17.74	$ 23.15	$ 22.88
Total Return^B,C,D	12.98%	(21.84)%	(14.42)%	(17.07)%	4.27%	24.61%
Ratios to Average Net Assets^F
Expenses before expense reductions	.76%^A	.70%	.69%	.68%	.69%	.71%
Expenses net of voluntary waivers, if any	.76%^A	.70%	.69%	.68%	.69%	.71%
Expenses net of all reductions	.73%^A	.66%	.67%	.66%	.68%	.70%
Net investment income (loss)	.67%^A	.68%	.79%	.31%	1.20%	1.27%
Supplemental Data
Net assets, end of period (000 omitted)	$ 426,273	$ 403,476	$ 652,493	$ 951,875	$ 1,541,587	$ 1,570,011
Portfolio turnover rate	62%^A	60%	89%	117%	42%	29%

^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.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 11.70	$ 15.11	$ 17.71	$ 23.12	$ 22.86	$ 19.27
Income from Investment Operations
Net investment income (loss)^E	.03	.08	.11	.04	.25	.23
Net realized and unrealized gain (loss)	1.46	(3.37)	(2.67)	(3.76)	.66	4.30
Total from investment operations	1.49	(3.29)	(2.56)	(3.72)	.91	4.53
Distributions from net investment income	(.08)	(.12)	(.04)	(.28)	(.22)	(.21)
Distributions from net realized gain	-	-	-	(1.41)	(.43)	(.73)
Total distributions	(.08)	(.12)	(.04)	(1.69)	(.65)	(.94)
Net asset value, end of period	$ 13.11	$ 11.70	$ 15.11	$ 17.71	$ 23.12	$ 22.86
Total Return^B,C,D	12.87%	(21.92)%	(14.49)%	(17.13)%	4.18%	24.51%
Ratios to Average Net Assets^F
Expenses before expense reductions	.86%^A	.80%	.79%	.79%	.79%	.80%
Expenses net of voluntary waivers, if any	.86%^A	.80%	.79%	.79%	.79%	.80%
Expenses net of all reductions	.83%^A	.77%	.77%	.76%	.78%	.79%
Net investment income (loss)	.56%^A	.58%	.69%	.21%	1.09%	1.16%
Supplemental Data
Net assets, end of period (000 omitted)	$ 199,053	$ 188,318	$ 278,446	$ 345,960	$ 344,778	$ 149,496
Portfolio turnover rate	62%^A	60%	89%	117%	42%	29%

^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.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^G
Selected Per-Share Data
Net asset value, beginning of period	$ 11.64	$ 15.04	$ 17.68	$ 22.70
Income from Investment Operations
Net investment income (loss)^E	.02	.05	.08	.01
Net realized and unrealized gain (loss)	1.46	(3.34)	(2.66)	(3.34)
Total from investment operations	1.48	(3.29)	(2.58)	(3.33)
Distributions from net investment income	(.06)	(.11)	(.06)	(.28)
Distributions from net realized gain	-	-	-	(1.41)
Total distributions	(.06)	(.11)	(.06)	(1.69)
Net asset value, end of period	$ 13.06	$ 11.64	$ 15.04	$ 17.68
Total Return^B,C,D	12.82%	(22.01)%	(14.64)%	(15.74)%
Ratios to Average Net Assets^F
Expenses before expense reductions	1.03%^A	.97%	.95%	.95%^A
Expenses net of voluntary waivers, if any	1.03%^A	.97%	.95%	.95%^A
Expenses net of all reductions	1.00%^A	.94%	.93%	.93%^A
Net investment income (loss)	.39%^A	.41%	.53%	.04%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 49,653	$ 41,486	$ 44,643	$ 25,827
Portfolio turnover rate	62%^A	60%	89%	117%

^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 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 any voluntary 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.

^G For the period January 12, 2000 (commencement of sale of shares) to December 31, 2000.

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

Growth Opportunities Portfolio

Fidelity Variable Insurance Products: Investment Grade Bond Portfolio

Investment Summary

Quality Diversification (% of fund's net assets)

As of June 30, 2003

	U.S.Government and U.S.Government Agency Obligations	60.1%
	AAA	6.9%
	AA	4.9%
	A	11.1%
	BBB	16.5%
	BB and Below	1.6%
	Not Rated	0.1%
	Short-Term Investments and Net Other Assets*	(1.2)%

* Short-Term Investments and Net Other Assets are not included in the pie chart.

We have used ratings from Moody's® Investors Services, Inc. Where Moody's ratings are not available, we have used S&P® ratings. Securities rated BB or below were rated investment grade at the time of acquisition.

Average Years to Maturity as of June 30, 2003
Years	5.6

Average years to maturity is based on the average time remaining until principal payments are expected from each of the fund's bonds, weighted by dollar amount.

Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	13.8
Consumer Discretionary	3.6
Telecommunication Services	3.3
Utilities	2.8
Industrials	1.2

The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's fixed-income central fund.

Semiannual Report

Fidelity Variable Insurance Products: Investment Grade Bond Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 26.2%
	Principal Amount		Value (Note 1)
CONSUMER DISCRETIONARY - 3.5%
Auto Components - 0.4%
DaimlerChrysler NA Holding Corp.:
4.05% 6/4/08	$ 3,000,000		$ 2,970,942
7.2% 9/1/09	4,645,000		5,279,902
			8,250,844
Automobiles - 0.3%
General Motors Corp.:
7.125% 7/15/13	745,000		742,124
8.25% 7/15/23	2,510,000		2,497,458
8.375% 7/15/33	3,080,000		3,071,068
			6,310,650
Media - 2.8%
AOL Time Warner, Inc.:
6.875% 5/1/12	7,141,000		8,152,280
7.625% 4/15/31	2,500,000		2,885,263
7.7% 5/1/32	1,745,000		2,037,169
British Sky Broadcasting Group PLC (BSkyB) yankee 8.2% 7/15/09	2,100,000		2,488,500
Clear Channel Communications, Inc. 7.65% 9/15/10	5,000,000		6,016,990
Comcast Cable Communications, Inc. 6.875% 6/15/09	5,000,000		5,780,670
Comcast Corp. 7.05% 3/15/33	3,805,000		4,226,016
Continental Cablevision, Inc. 9% 9/1/08	4,000,000		4,971,448
Cox Communications, Inc. 7.75% 11/1/10	6,350,000		7,767,352
News America Holdings, Inc. 7.75% 12/1/45	12,500,000		14,868,675
			59,194,363
TOTAL CONSUMER DISCRETIONARY			73,755,857
CONSUMER STAPLES - 0.8%
Food & Staples Retailing - 0.2%
Kroger Co. 6.8% 4/1/11	2,285,000		2,606,867
Food Products - 0.2%
ConAgra Foods, Inc. 6.75% 9/15/11	3,870,000		4,530,733
Tobacco - 0.4%
Philip Morris Companies, Inc.:
7% 7/15/05	1,500,000		1,590,945
7.65% 7/1/08	5,000,000		5,587,945
7.75% 1/15/27	1,000,000		1,071,822
RJ Reynolds Tobacco Holdings, Inc. 6.5% 6/1/07	595,000		596,044
			8,846,756
TOTAL CONSUMER STAPLES			15,984,356
ENERGY - 0.6%
Energy Equipment & Services - 0.1%
Kinder Morgan, Inc. 6.5% 9/1/12	1,740,000		1,994,559
Oil & Gas - 0.5%
Duke Energy Field Services LLC 7.875% 8/16/10	4,000,000		4,814,304

	Principal Amount		Value (Note 1)
Pemex Project Funding Master Trust:
6.125% 8/15/08 (b)	$ 3,630,000		$ 3,884,100
7.375% 12/15/14 (b)	2,000,000		2,197,080
			10,895,484
TOTAL ENERGY			12,890,043
FINANCIALS - 13.2%
Capital Markets - 3.0%
Amvescap PLC yankee 6.6% 5/15/05	5,100,000		5,499,962
BankBoston Corp. 6.625% 12/1/05	4,420,000		4,874,880
Credit Suisse First Boston (USA), Inc.:
4.625% 1/15/08	3,400,000		3,630,775
5.875% 8/1/06	2,000,000		2,212,308
6.5% 1/15/12	1,520,000		1,744,285
Goldman Sachs Group, Inc.:
4.125% 1/15/08	3,270,000		3,436,286
5.7% 9/1/12	2,935,000		3,224,476
6.6% 1/15/12	12,425,000		14,437,602
J.P. Morgan Chase & Co.:
4% 2/1/08	1,065,000		1,113,487
5.35% 3/1/07	2,415,000		2,644,408
5.75% 1/2/13	3,500,000		3,826,487
Merita Bank Ltd. yankee 6.5% 1/15/06	1,500,000		1,657,287
Merrill Lynch & Co., Inc. 4% 11/15/07	7,475,000		7,762,982
Morgan Stanley 6.6% 4/1/12	5,695,000		6,579,918
			62,645,143
Commercial Banks - 1.3%
Bank of America Corp. 4.875% 1/15/13	3,600,000		3,797,651
Bank One Corp. 6.5% 2/1/06	1,245,000		1,382,073
Bank One NA, Chicago 3.7% 1/15/08	5,075,000		5,276,980
Corporacion Andina de Fomento 5.2% 5/21/13	1,560,000		1,580,366
Fleet Financial Group, Inc. 7.125% 4/15/06	980,000		1,098,827
Korea Development Bank 7.375% 9/17/04	1,320,000		1,401,257
PNC Funding Corp. 5.75% 8/1/06	4,440,000		4,898,852
Popular North America, Inc.:
4.25% 4/1/08	3,000,000		3,122,025
6.125% 10/15/06	3,235,000		3,601,086
Wells Fargo Bank NA, San Francisco 7.55% 6/21/10	900,000		1,109,453
			27,268,570
Consumer Finance - 3.3%
American General Finance Corp.:
2.75% 6/15/08	205,000		202,192
5.875% 7/14/06	5,195,000		5,732,282
Capital One Bank:
4.875% 5/15/08	6,295,000		6,424,098
6.5% 6/13/13	3,475,000		3,439,555
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
FINANCIALS - continued
Consumer Finance - continued
Ford Motor Credit Co.:
5.8% 1/12/09	$ 5,065,000		$ 5,033,886
6.875% 2/1/06	2,600,000		2,757,560
7.25% 10/25/11	2,000,000		2,056,146
7.875% 6/15/10	6,350,000		6,804,711
General Motors Acceptance Corp.:
4.5% 7/15/06	505,000		508,182
6.125% 2/1/07	430,000		449,308
6.125% 8/28/07	430,000		446,833
6.75% 1/15/06	3,295,000		3,498,110
7.5% 7/15/05	500,000		535,823
7.75% 1/19/10	5,650,000		6,080,649
Household Finance Corp.:
6.375% 10/15/11	5,290,000		6,015,063
6.375% 11/27/12	2,635,000		3,001,597
6.75% 5/15/11	4,000,000		4,645,476
7% 5/15/12	840,000		994,266
Household International, Inc. 8.875% 2/15/08	3,450,000		4,008,210
MBNA Corp.:
6.25% 1/17/07	1,905,000		2,094,730
7.5% 3/15/12	3,005,000		3,561,884
			68,290,561
Diversified Financial Services - 3.1%
Alliance Capital Management LP 5.625% 8/15/06	2,475,000		2,711,145
Bell Atlantic Financial Service, Inc. 7.6% 3/15/07	1,100,000		1,285,318
CIT Group, Inc. 7.75% 4/2/12	2,350,000		2,802,027
Citigroup, Inc. 3.5% 2/1/08	4,370,000		4,494,960
Delta Air Lines, Inc. pass thru trust certificates:
7.57% 11/18/10	315,000		323,997
7.92% 5/18/12	3,700,000		3,196,051
Deutsche Telekom International Finance BV:
8.25% 6/15/05	4,000,000		4,460,512
8.75% 6/15/30	5,750,000		7,326,018
NiSource Finance Corp.:
7.625% 11/15/05	3,745,000		4,094,596
7.875% 11/15/10	4,360,000		5,147,852
Pemex Project Funding Master Trust 7.875% 2/1/09 (d)	1,200,000		1,371,000
Petronas Capital Ltd. 7% 5/22/12 (b)	14,170,000		16,391,573
Sprint Capital Corp. 6.875% 11/15/28	2,040,000		2,046,599
Verizon Global Funding Corp. 7.25% 12/1/10	5,500,000		6,605,143
Verizon Wireless Capital LLC 5.375% 12/15/06	2,395,000		2,630,534
			64,887,325

	Principal Amount		Value (Note 1)
Insurance - 0.7%
New York Life Insurance Co. 5.875% 5/15/33 (b)	$ 5,500,000		$ 5,772,162
Principal Life Global Funding I:
2.8% 6/26/08 (b)	1,850,000		1,828,830
5.125% 6/28/07 (b)	3,000,000		3,226,761
6.25% 2/15/12 (b)	1,350,000		1,527,119
Travelers Property Casualty Corp. 6.375% 3/15/33	1,745,000		1,907,191
			14,262,063
Real Estate - 1.1%
Arden Realty LP 7% 11/15/07	5,000,000		5,676,890
AvalonBay Communities, Inc. 5% 8/1/07	2,315,000		2,471,494
Boston Properties, Inc. 6.25% 1/15/13	3,000,000		3,285,174
CenterPoint Properties Trust 6.75% 4/1/05	510,000		544,703
EOP Operating LP:
6.5% 1/15/04	1,610,000		1,648,912
6.625% 2/15/05	4,500,000		4,813,749
ERP Operating LP 7.1% 6/23/04	1,000,000		1,050,607
Mack-Cali Realty LP 7.75% 2/15/11	2,700,000		3,237,462
ProLogis 6.7% 4/15/04	460,000		480,359
			23,209,350
Thrifts & Mortgage Finance - 0.7%
Countrywide Home Loans, Inc.:
5.5% 8/1/06	4,500,000		4,918,320
5.5% 2/1/07	2,500,000		2,737,030
Washington Mutual Bank 6.875% 6/15/11	3,000,000		3,579,273
Washington Mutual, Inc. 5.625% 1/15/07	3,955,000		4,359,165
			15,593,788
TOTAL FINANCIALS			276,156,800
INDUSTRIALS - 1.2%
Aerospace & Defense - 0.2%
Lockheed Martin Corp. 8.2% 12/1/09	2,000,000		2,529,232
Raytheon Co. 5.5% 11/15/12	1,500,000		1,604,066
			4,133,298
Industrial Conglomerates - 0.6%
Tyco International Group SA yankee 6.75% 2/15/11	11,000,000		11,660,000
Road & Rail - 0.4%
CSX Corp. 7.95% 5/1/27	4,000,000		5,121,084
Norfolk Southern Corp. 7.25% 2/15/31	2,800,000		3,343,858
			8,464,942
TOTAL INDUSTRIALS			24,258,240
Nonconvertible Bonds - continued
	Principal Amount		Value (Note 1)
INFORMATION TECHNOLOGY - 0.6%
Communications Equipment - 0.4%
Motorola, Inc.:
6.5% 11/15/28	$ 6,685,000		$ 6,785,275
6.75% 2/1/06	2,000,000		2,180,000
			8,965,275
IT Services - 0.2%
Electronic Data Systems Corp. 6% 8/1/13 (b)	4,025,000		3,929,930
TOTAL INFORMATION TECHNOLOGY			12,895,205
MATERIALS - 0.3%
Containers & Packaging - 0.1%
Sealed Air Corp.:
5.625% 7/15/13 (b)	745,000		752,018
6.875% 7/15/33 (b)	1,565,000		1,595,236
			2,347,254
Metals & Mining - 0.1%
Falconbridge Ltd. yankee 7.35% 6/5/12	1,900,000		2,140,840
Paper & Forest Products - 0.1%
Weyerhaeuser Co. 6.75% 3/15/12	1,675,000		1,901,462
TOTAL MATERIALS			6,389,556
TELECOMMUNICATION SERVICES - 3.2%
Diversified Telecommunication Services - 2.9%
AT&T Corp. 7.8% 11/15/11	3,915,000		4,475,283
Cable & Wireless Optus Finance Property Ltd. 8.125% 6/15/09 (b)	1,700,000		1,946,072
Citizens Communications Co. 8.5% 5/15/06	4,600,000		5,335,131
France Telecom SA:
9.25% 3/1/11 (a)	4,625,000		5,820,863
10% 3/1/31 (a)	6,550,000		9,063,464
Koninklijke KPN NV yankee 8% 10/1/10	9,500,000		11,760,649
Telecomunicaciones de Puerto Rico, Inc. 6.65% 5/15/06	965,000		1,067,459
Telefonica Europe BV 7.75% 9/15/10	5,000,000		6,169,580
Telefonos de Mexico SA de CV 8.25% 1/26/06	2,565,000		2,872,800
TELUS Corp. yankee:
7.5% 6/1/07	4,830,000		5,385,450
8% 6/1/11	3,150,000		3,638,250
Verizon New York, Inc. 6.875% 4/1/12	2,335,000		2,748,678
			60,283,679

	Principal Amount		Value (Note 1)
Wireless Telecommunication Services - 0.3%
AT&T Wireless Services, Inc.:
7.875% 3/1/11	$ 2,580,000		$ 3,047,037
8.75% 3/1/31	3,455,000		4,270,605
			7,317,642
TOTAL TELECOMMUNICATION SERVICES			67,601,321
UTILITIES - 2.8%
Electric Utilities - 1.9%
Constellation Energy Group, Inc. 7% 4/1/12	1,740,000		2,026,804
Detroit Edison Co. 6.125% 10/1/10	2,350,000		2,683,329
Dominion Resources, Inc. 6.25% 6/30/12	2,825,000		3,198,440
DTE Energy Co. 7.05% 6/1/11	2,004,000		2,343,792
Duke Capital Corp.:
6.25% 2/15/13	805,000		855,746
6.75% 2/15/32	4,610,000		4,646,774
FirstEnergy Corp. 6.45% 11/15/11	2,930,000		3,215,265
MidAmerican Energy Holdings, Inc.:
4.625% 10/1/07	1,795,000		1,886,920
5.875% 10/1/12	1,955,000		2,144,088
Monongahela Power Co. 5% 10/1/06	2,260,000		2,245,875
Ohio Edison Co. 4% 5/1/08 (b)	6,125,000		6,282,523
Public Service Co. of Colorado 7.875% 10/1/12	2,470,000		3,109,653
TECO Energy, Inc. 7% 5/1/12	4,765,000		4,645,875
			39,285,084
Gas Utilities - 0.7%
Consolidated Natural Gas Co.:
5.375% 11/1/06	2,190,000		2,374,260
6.85% 4/15/11	445,000		528,877
Kinder Morgan Energy Partners LP 7.3% 8/15/33	5,950,000		7,145,111
Ras Laffan Liquid Natural Gas Co. Ltd. yankee 8.294% 3/15/14 (b)	4,370,000		5,047,350
			15,095,598
Multi-Utilities & Unregulated Power - 0.2%
Williams Companies, Inc.:
7.125% 9/1/11	2,470,000		2,408,250
7.5% 1/15/31	505,000		477,225
			2,885,475
TOTAL UTILITIES			57,266,157
TOTAL NONCONVERTIBLE BONDS (Cost $490,742,122)		547,197,535
U.S. Government and Government Agency Obligations - 12.7%
	Principal Amount		Value (Note 1)
U.S. Government Agency Obligations - 3.0%
Federal Home Loan Bank:
2.25% 5/15/06	$ 16,250,000		$ 16,471,764
2.625% 7/15/08	8,565,000		8,552,495
Freddie Mac:
1.75% 5/15/05	4,020,000		4,050,902
2.75% 3/15/08	10,200,000		10,286,139
5.75% 1/15/12	7,740,000		8,905,381
5.875% 3/21/11	7,205,000		8,104,681
6.25% 7/15/32	1,001,000		1,177,802
6.625% 9/15/09	3,000,000		3,600,528
6.75% 3/15/31	1,479,000		1,841,361
Government Loan Trusts (assets of Trust guaranteed by U.S. Government through Agency for International Development) Series 1-B, 8.5% 4/1/06	871,774		967,085
Guaranteed Export Trust Certificates (assets of Trust guaranteed by U.S. Government through Export-Import Bank):
Series 1993-C, 5.2% 10/15/04	1,333		1,376
Series 1993-D, 5.23% 5/15/05	3,404		3,500
Series 1994-A, 7.12% 4/15/06	3,340		3,569
Guaranteed Trade Trust Certificates (assets of Trust guaranteed by U.S. Government through Export-Import Bank) Series 1994-B, 7.5% 1/26/06	3,220		3,488
Private Export Funding Corp. secured 6.86% 4/30/04	229,183		239,526
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			64,209,597
U.S. Treasury Obligations - 9.7%
U.S. Treasury Bonds:
6.25% 5/15/30	92,195,000		114,775,584
8% 11/15/21	890,000		1,289,353
U.S. Treasury Notes:
3.25% 8/15/07	2,600,000		2,713,446
4.375% 5/15/07	16,250,000		17,654,098
5% 8/15/11	40,000,000		44,868,760
6.125% 8/15/07	10,000,000		11,567,580
6.5% 2/15/10	8,000,000		9,705,312
TOTAL U.S. TREASURY OBLIGATIONS			202,574,133
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $252,437,103)		266,783,730
U.S. Government Agency - Mortgage Securities - 45.8%
	Principal Amount		Value (Note 1)
Fannie Mae - 39.6%
4% 9/1/18 (c)	$ 10,000,000		$ 9,953,125
4.5% 7/1/18 (c)	50,000,000		51,000,000
4.5% 7/1/33 (c)	10,000,000		9,950,000
5% 7/1/18 (c)	62,043,000		64,059,398
5% 7/1/33 (c)	50,000,000		50,796,875
5.5% 6/1/11 to 5/1/18	136,276,901		141,635,327
5.5% 7/1/18 (c)	2,339,309		2,415,337
5.5% 7/1/33 (c)	104,847,261		108,353,091
6% 2/1/13 to 1/1/29	17,997,442		18,787,289
6% 7/1/33 (c)	747,269		776,226
6.5% 2/1/10 to 2/1/33	257,645,183		268,957,382
6.5% 7/1/18 (c)	83,155,000		87,702,539
7% 3/1/15 to 8/1/32	5,086,811		5,373,511
7.5% 7/1/07 to 11/1/31	8,954,653		9,536,179
8% 3/1/30	8,485		9,150
8.5% 3/1/25 to 6/1/25	6,671		7,247
TOTAL FANNIE MAE			829,312,676
Freddie Mac - 0.0%
8.5% 3/1/20 to 1/1/28	727,687		788,955
Government National Mortgage Association - 6.2%
6% 8/15/08 to 5/15/33	40,320,120		42,304,902
6% 7/1/33 (c)	15,925,601		16,677,090
6.5% 10/15/27 to 8/15/32	6,147,239		6,466,404
7% 1/15/28 to 8/15/32	57,574,271		60,827,560
7% 7/1/33 (c)	15,997		16,902
7.5% 3/15/06 to 10/15/28	2,139,868		2,284,506
8% 2/15/17	53,458		58,456
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			128,635,820
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $951,680,349)		958,737,451
Asset-Backed Securities - 3.3%

American Express Credit Account Master Trust Series 1999-2 Class B, 6.1% 12/15/06	1,500,000		1,562,252
AmeriCredit Automobile Receivables Trust:
Series 2003-AM Class A4A, 3.121% 11/6/09	1,705,000		1,736,031
Series 2003-BX:
Class A4A, 2.72% 1/6/10	2,115,000		2,125,787
Class A4B, 1.69% 1/6/10 (d)	1,570,000		1,570,000
Capital One Master Trust Series 2001-3A Class A, 5.45% 3/16/09	4,000,000		4,322,626
Chase Manhattan Auto Owner Trust Series 2001-A:
Class A4, 5.07% 2/15/08	4,900,000		5,150,816
Class CTFS, 5.06% 2/15/08	515,656		530,641
Citibank Credit Card Issuance Trust Series 2001-A8 Class A8, 4.1% 12/7/06	5,000,000		5,194,507
Asset-Backed Securities - continued
	Principal Amount		Value (Note 1)
Discover Card Master Trust I Series 2001-6 Class A, 5.75% 12/15/08	$ 7,000,000		$ 7,732,239
Ford Credit Auto Owner Trust:
Series 2001-B Class B, 5.71% 9/15/05	755,000		785,026
Series 2001-C Class B, 5.54% 12/15/05	1,400,000		1,448,532
Honda Auto Receivables Owner Trust Series 2001-2:
Class A3, 4.67% 3/18/05	1,497,456		1,518,420
Class A4, 5.09% 10/18/06	1,640,000		1,689,045
Household Private Label Credit Card Master Note Trust I Series 2002-1 Class A, 5.5% 1/18/11	4,875,000		5,330,317
JCPenney Master Credit Card Trust Series E Class A, 5.5% 6/15/07	7,000,000		7,114,667
MBNA Credit Card Master Note Trust:
Series 2001-A1 Class A1, 5.75% 10/15/08	1,800,000		1,983,370
Series 2001-B2 Class B2, 1.54% 1/15/09 (d)	12,100,000		12,137,829
Railcar Trust Series 1992-1 Class A, 7.75% 6/1/04	143,140		147,948
Residential Finance LP/Residential Finance Development Corp. Series 2003-CB1:
Class B3, 2.563% 2/10/24 (b)(d)	1,235,000		1,235,000
Class B4, 2.763% 2/10/24 (b)(d)	1,105,000		1,105,000
Class B5, 3.363% 2/10/24 (b)(d)	755,000		755,000
Class B6, 3.863% 2/10/24 (b)(d)	445,000		445,000
Sears Credit Account Master Trust II:
Series 2000-1 Class B, 7.5% 11/15/07	1,300,000		1,326,403
Series 2000-2 Class A, 6.75% 9/16/09	2,255,000		2,494,539
TOTAL ASSET-BACKED SECURITIES (Cost $66,524,870)		69,440,995
Commercial Mortgage Securities - 3.0%

Chase Manhattan Bank-First Union National Bank Commercial Mortgage Trust sequential pay Series 1999-1 Class A2, 7.439% 8/15/31	5,000,000		6,028,501
Commercial Resecuritization Trust sequential pay Series 1999-ABC1 Class A, 6.74% 1/27/09 (b)	3,343,287		3,632,690
CS First Boston Mortgage Securities Corp.:
sequential pay:
Series 1997-C2 Class A3, 6.55% 1/17/35	2,075,000		2,363,773
Series 2000-C1 Class A2, 7.545% 4/14/62	1,100,000		1,340,065
Series 1997-C2 Class D, 7.27% 1/17/35	720,000		811,117
Series 1998-C1 Class C, 6.78% 5/17/40	5,000,000		5,735,522
Series 2001-CKN5 Class AX, 1.3187% 9/15/34 (b)(d)(f)	32,136,554		2,375,058

	Principal Amount		Value (Note 1)
Deutsche Mortgage & Asset Receiving Corp. sequential pay Series 1998-C1 Class D, 7.231% 6/15/31	$ 925,000		$ 974,394
DLJ Commercial Mortgage Corp. sequential pay Series 2000-CF1 Class A1B, 7.62% 6/10/33	3,000,000		3,668,286
Equitable Life Assurance Society of the United States Series 174:
Class B1, 7.33% 5/15/06 (b)	500,000		565,786
Class C1, 7.52% 5/15/06 (b)	500,000		567,354
GGP Mall Properties Trust sequential pay Series 2001-C1A Class A2, 5.007% 11/15/11 (b)	3,454,733		3,677,214
Ginnie Mae guaranteed REMIC pass thru securities sequential pay:
Series 2002-83 Class B, 4.6951% 12/16/24	1,860,000		1,980,024
Series 2003-22 Class B, 3.963% 5/16/32	3,295,000		3,330,395
GS Mortgage Securities Corp. II:
Series 1998-GLII Class E, 7.1904% 4/13/31 (d)	245,000		241,627
Series 2003-C1 Class A2A, 3.59% 1/10/40	3,220,000		3,298,237
J.P. Morgan Commercial Mortgage Finance Corp. sequential pay Series 2000-C9 Class A2, 7.77% 10/15/32	3,745,000		4,532,611
LB-UBS Commercial Mortgage Trust sequential pay:
Series 2000-C3 Class A2, 7.95% 1/15/10	2,180,000		2,701,156
Series 2001-C3 Class A1, 6.058% 6/15/20	5,627,102		6,182,316
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A:
Class B, 4.13% 11/20/37 (b)	2,600,000		2,588,625
Class C, 4.13% 11/20/37 (b)	2,600,000		2,506,766
Thirteen Affiliates of General Growth Properties, Inc. sequential pay Series 1 Class A2, 6.602% 11/15/07 (b)	2,500,000		2,839,432
Trizechahn Office Properties Trust 7.253% 3/15/13 (b)	1,390,000		1,499,199
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $58,304,739)		63,440,148
Municipal Securities - 0.2%

Illinois Gen. Oblig. 5.1% 6/1/33 (Cost $4,395,000)	4,395,000		4,321,911
Foreign Government and Government Agency Obligations - 1.9%
	Principal Amount		Value (Note 1)

Chilean Republic:
5.5% 1/15/13	$ 3,275,000		$ 3,464,950
6.875% 4/28/09	2,300,000		2,646,150
7.125% 1/11/12	8,520,000		9,936,450
Polish Government 6.25% 7/3/12	4,405,000		5,098,788
Quebec Province 7% 1/30/07	1,000,000		1,162,262
State of Israel 4.625% 6/15/13	3,760,000		3,691,850
United Mexican States:
4.625% 10/8/08	3,835,000		3,915,535
8% 9/24/22	8,000,000		8,960,000
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $35,007,667)		38,875,985
Supranational Obligations - 0.1%

Corporacion Andina de Fomento 6.875% 3/15/12 (Cost $1,706,548)	1,725,000		1,963,807
Fixed-Income Funds - 11.0%
	Shares
Fidelity Ultra-Short Central Fund (e) (Cost $230,000,006)	2,311,526		229,742,559
Cash Equivalents - 15.3%
	Maturity Amount
Investments in repurchase agreements (Collateralized by U.S. Government Obligations, in a joint trading account at 1.28%, dated 6/30/03 due 7/1/03) (Cost $319,122,000)	$ 319,133,355		319,122,000

TOTAL INVESTMENT
PORTFOLIO - 119.5%

(Cost $2,409,920,404)

2,499,626,121

NET OTHER ASSETS - (19.5)%

(407,589,444)

NET ASSETS - 100%

$ 2,092,036,677

Swap Agreements
	Expiration Date	Notional Amount	Unrealized Appreciation/ (Depreciation)
Credit Default Swap
Receive quarterly notional amount multiplied by .87% and pay Merrill Lynch, Inc. upon default of Raytheon Co., par value of the notional amount of Raytheon Co. 5.375% 4/1/13	June 2008	$ 5,000,000	$ 16,161
TOTAL CREDIT DEFAULT SWAP		5,000,000	16,161
Interest Rate Swap
Receive quarterly a fixed rate equal to 3.0732% and pay quarterly a floating rate based on 3-month LIBOR with Morgan Stanley, Inc.	April 2007	23,290,000	663,246
Receive quarterly a fixed rate equal to 3.273% and pay quarterly a floating rate based on 3-month LIBOR with Goldman Sachs	April 2008	19,000,000	525,456
TOTAL INTEREST RATE SWAP		42,290,000	1,188,702
		$ 47,290,000	$ 1,204,863

Legend

(a) Debt obligation initially issued at one coupon which converts to a higher coupon at a specified date. The rate shown is the rate at period end.

(b) 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 period end, the value of these securities amounted to $78,172,878 or 3.7% of net assets.

(d) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(e) A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(f) Security represents right to receive monthly interest payments on an underlying pool of mortgages. Principal shown is the par amount of the mortgage pool.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $3,036,545,127 and $2,883,079,909, respectively, of which long-term U.S. government and government agency obligations aggregated $2,731,522,837 and $2,614,166,910, respectively.

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

Investment Grade Bond Portfolio

Fidelity Variable Insurance Products: Investment Grade Bond Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including repurchase agreements of $319,122,000) (cost $2,409,920,404) - See accompanying schedule		$ 2,499,626,121
Cash		9,047
Receivable for investments sold		2,243,651
Receivable for fund shares sold		1,938,325
Interest receivable		15,724,343
Unrealized gain on swap agreements		1,204,863
Total assets		2,520,746,350

Liabilities
Payable for investments purchased Regular delivery	$ 19,513,474
Delayed delivery	404,060,667
Payable for fund shares redeemed	4,091,400
Accrued management fee	764,568
Distribution fees payable	20,585
Other payables and accrued expenses	258,979
Total liabilities		428,709,673

Net Assets		$ 2,092,036,677
Net Assets consist of:
Paid in capital		$ 1,927,227,602
Undistributed net investment income		38,761,967
Accumulated undistributed net realized gain (loss) on investments		35,136,528
Net unrealized appreciation (depreciation) on investments		90,910,580
Net Assets		$ 2,092,036,677

Initial Class: Net Asset Value, offering price and redemption price per share ($1,991,043,773 ÷ 146,667,571 shares)		$ 13.58

Service Class: Net Asset Value, offering price and redemption price per share ($1,995,576 ÷ 147,336 shares)		$ 13.54

Service Class 2: Net Asset Value, offering price and redemption price per share ($98,997,328 ÷ 7,364,617 shares)		$ 13.44

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Interest		$ 43,555,851
Security lending		25,120
Total income		43,580,971

Expenses
Management fee	$ 4,579,731
Transfer agent fees	729,868
Distribution fees	106,625
Accounting and security lending fees	228,429
Non-interested trustees' compensation	4,371
Custodian fees and expenses	53,698
Audit	33,769
Legal	2,084
Miscellaneous	72,128
Total expenses before reductions	5,810,703
Expense reductions	(1,129)	5,809,574
Net investment income (loss)		37,771,397
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	36,723,435
Swap agreements	401,134
Total net realized gain (loss)		37,124,569
Change in net unrealized appreciation (depreciation) on: Investment securities	19,923,256
Swap agreements	1,204,863
Total change in net unrealized appreciation (depreciation)		21,128,119
Net gain (loss)		58,252,688
Net increase (decrease) in net assets resulting from operations		$ 96,024,085

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

Semiannual Report

Fidelity Variable Insurance Products: Investment Grade Bond Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 37,771,397	$ 81,834,457
Net realized gain (loss)	37,124,569	32,349,066
Change in net unrealized appreciation (depreciation)	21,128,119	59,508,829
Net increase (decrease) in net assets resulting from operations	96,024,085	173,692,352
Distributions to shareholders from net investment income	(82,217,412)	(58,817,521)
Distributions to shareholders from net realized gain	(28,967,100)	-
Total distributions	(111,184,512)	(58,817,521)
Share transactions - net increase (decrease)	69,555,157	458,501,562
Total increase (decrease) in net assets	54,394,730	573,376,393

Net Assets
Beginning of period	2,037,641,947	1,464,265,554
End of period (including undistributed net investment income of $38,761,967 and undistributed net investment income of $82,446,651, respectively)	$ 2,092,036,677	$ 2,037,641,947

Other Information: Share Transactions	Six months ended June 30, 2003 (Unaudited)
Shares	Initial Class	Service Class	Service Class 2
Sold	18,451,861	163,072	3,856,365
Reinvested	8,213,994	2,020	300,110
Redeemed	(23,422,621)	(89,162)	(2,070,112)
Net increase (decrease)	3,243,234	75,930	2,086,363

Dollars Sold	$ 246,886,881	$ 2,205,888	$ 51,160,162
Reinvested	107,274,755	26,323	3,883,433
Redeemed	(313,087,942)	(1,204,580)	(27,589,763)
Net increase (decrease)	$ 41,073,694	$ 1,027,631	$ 27,453,832

Share Transactions	Year ended December 31, 2002
Shares	Initial Class	Service Class	Service Class 2
Sold	65,347,675	145,315	7,935,513
Reinvested	4,614,396	357	68,663
Redeemed	(38,454,755)	(83,223)	(4,147,148)
Net increase (decrease)	31,507,316	62,449	3,857,028

Dollars Sold	$ 848,704,131	$ 1,843,036	$ 102,465,637
Reinvested	57,956,815	4,479	856,227
Redeemed	(498,597,688)	(1,048,248)	(53,682,827)
Net increase (decrease)	$ 408,063,258	$ 799,267	$ 49,639,037

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 79,353,928	$ 19,279	$ 2,844,205
From net realized gain	27,920,827	7,044	1,039,229
Total	$ 107,274,755	$ 26,323	$ 3,883,434

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 57,956,815	$ 4,479	$ 856,227

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

Investment Grade Bond Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 13.70	$ 12.92	$ 12.59	$ 12.16	$ 12.96	$ 12.56
Income from Investment Operations
Net investment income (loss)^E	.239	.610	.685^G	.771	.743	.725
Net realized and unrealized gain (loss)	.371	.680	.335^G	.499	(.873)	.335
Total from investment operations	.610	1.290	1.020	1.270	(.130)	1.060
Distributions from net investment income	(.540)	(.510)	(.690)	(.840)	(.510)	(.590)
Distributions from net realized gain	(.190)	-	-	-	(.160)	(.070)
Total distributions	(.730)	(.510)	(.690)	(.840)	(.670)	(.660)
Net asset value, end of period	$ 13.58	$ 13.70	$ 12.92	$ 12.59	$ 12.16	$ 12.96
Total Return^{B, C, D}	4.66%	10.34%	8.46%	11.22%	(1.05)%	8.85%
Ratios to Average Net Assets^F
Expenses before expense reductions	.55%^A	.54%	.54%	.54%	.54%	.57%
Expenses net of voluntary waivers, if any	.55%^A	.54%	.54%	.54%	.54%	.57%
Expenses net of all reductions	.55%^A	.53%	.54%	.54%	.54%	.57%
Net investment income (loss)	3.64%^A	4.71%	5.47%^G	6.50%	6.07%	5.85%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,991,044	$ 1,965,036	$ 1,445,925	$ 739,911	$ 658,852	$ 674,813
Portfolio turnover rate	276%^A	192%	278%	154%	87%	239%

^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 Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. Per share data and ratios for periods prior to adoption have not been restated to reflect this change.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 13.66	$ 12.89	$ 12.58	$ 11.80
Income from Investment Operations
Net investment income (loss)^E	.228	.591	.674^H	.377
Net realized and unrealized gain (loss)	.362	.679	.326^H	.403
Total from investment operations	.590	1.270	1.000	.780
Distributions from net investment income	(.520)	(.500)	(.690)	-
Distributions from net realized gain	(.190)	-	-	-
Total distributions	(.710)	(.500)	(.690)	-
Net asset value, end of period	$ 13.54	$ 13.66	$ 12.89	$ 12.58
Total Return^{B, C, D}	4.52%	10.20%	8.30%	6.61%
Ratios to Average Net Assets^G
Expenses before expense reductions	.66%^A	.64%	.64%	.64%^A
Expenses net of voluntary waivers, if any	.66%^A	.64%	.64%	.64%^A
Expenses net of all reductions	.66%^A	.64%	.64%	.64%^A
Net investment income (loss)	3.52%^A	4.60%	5.37%^H	6.40%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,996	$ 975	$ 115	$ 107
Portfolio turnover rate	276%^A	192%	278%	154%

^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 For the period July 7, 2000 (commencement of sale of shares) to December 31, 2000.

^H Effective January 1, 2001, the fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began amortizing premium and discount on all debt securities, as required. Per share data and ratios for periods prior to adoption have not been restated to reflect this change.

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

Investment Grade Bond Portfolio

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 13.57	$ 12.82	$ 12.54	$ 12.06
Income from Investment Operations
Net investment income (loss)^E	.219	.571	.643^H	.686
Net realized and unrealized gain (loss)	.361	.679	.327^H	.634
Total from investment operations	.580	1.250	.970	1.320
Distributions from net investment income	(.520)	(.500)	(.690)	(.840)
Distributions from net realized gain	(.190)	-	-	-
Total distributions	(.710)	(.500)	(.690)	(.840)
Net asset value, end of period	$ 13.44	$ 13.57	$ 12.82	$ 12.54
Total Return^{B, C, D}	4.48%	10.09%	8.08%	11.69%
Ratios to Average Net Assets^G
Expenses before expense reductions	.81%^A	.79%	.82%	1.75%^A
Expenses net of voluntary waivers, if any	.81%^A	.79%	.82%	1.05%^A
Expenses net of all reductions	.81%^A	.79%	.82%	1.05%^A
Net investment income (loss)	3.38%^A	4.45%	5.19%^H	5.99%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 98,997	$ 71,631	$ 18,225	$ 229
Portfolio turnover rate	276%^A	192%	278%	154%

^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 For the period January 12, 2000 (commencement of sale of shares) to December 31, 2000.

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

Semiannual Report

Fidelity Variable Insurance Products: Mid Cap Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Newmont Mining Corp. Holding Co.	5.7
Invitrogen Corp.	2.8
Symbol Technologies, Inc.	2.7
Meridian Gold, Inc.	2.5
IMS Health, Inc.	2.0
	15.7
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Health Care	22.4
Materials	16.0
Energy	11.5
Information Technology	10.1
Consumer Discretionary	9.4

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks and Equity Futures	88.5%
	Short-Term Investments and Net Other Assets	11.5%

* Foreign investments

17.4%

Semiannual Report

Fidelity Variable Insurance Products: Mid Cap Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 88.5%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 9.4%
Auto Components - 0.6%
Gentex Corp. (a)	172,300		$ 5,274,103
IMPCO Technologies, Inc.	203,100		1,251,096
Superior Industries International, Inc.	66,900		2,789,730
			9,314,929
Automobiles - 0.0%
Monaco Coach Corp. (a)	100		1,533
Thor Industries, Inc.	46		1,878
			3,411
Distributors - 0.2%
Advanced Marketing Services, Inc.	279,400		3,632,200
Hotels, Restaurants & Leisure - 2.1%
Krispy Kreme Doughnuts, Inc. (a)	100		4,118
Outback Steakhouse, Inc.	456,400		17,799,600
P.F. Chang's China Bistro, Inc. (a)	100		4,921
Panera Bread Co. Class A (a)	100		4,000
Sonic Corp. (a)	593,250		15,086,348
Starbucks Corp. (a)	100		2,452
The Cheesecake Factory, Inc. (a)	100		3,589
			32,905,028
Household Durables - 0.4%
CFM, Inc. (a)	100		705
Clayton Homes, Inc.	100		1,255
Garmin Ltd. (a)	161,300		6,431,031
Harman International Industries, Inc.	100		7,914
Helen of Troy Ltd. (a)	41,700		632,172
Lennar Corp.:
Class A	100		7,150
Class B	10		687
Mohawk Industries, Inc. (a)	100		5,553
Techtronic Industries Co.	2,000		3,360
The Stanley Works	100		2,760
			7,092,587
Internet & Catalog Retail - 0.0%
1-800-FLOWERS.com, Inc. Class A (a)	100		824
eBay, Inc. (a)	1,900		197,942
GSI Commerce, Inc. (a)	100		668
InterActiveCorp (a)	100		3,957
J. Jill Group, Inc. (a)	100		1,684
NetFlix, Inc. (a)	200		5,110
			210,185
Leisure Equipment & Products - 0.0%
Leapfrog Enterprises, Inc. Class A	100		3,181
Oakley, Inc. (a)	100		1,177
Polaris Industries, Inc.	100		6,140
SHIMANO, Inc.	100		1,577
			12,075
Media - 1.3%
Astral Media, Inc. Class A (non-vtg.)	100		1,692

	Shares		Value (Note 1)
Catalina Marketing Corp. (a)	324,100		$ 5,720,365
E.W. Scripps Co. Class A	100		8,872
EchoStar Communications Corp. Class A (a)	100		3,462
Entercom Communications Corp. Class A (a)	100		4,901
Entravision Communications Corp. Class A (a)	100		1,135
General Motors Corp. Class H (a)	100		1,281
Getty Images, Inc. (a)	100		4,130
Grupo Televisa SA de CV sponsored ADR	191,900		6,620,550
Harris Interactive, Inc. (a)	100		659
Omnicom Group, Inc.	100		7,170
Pixar (a)	3,500		212,940
Radio One, Inc. Class A (a)	100		1,786
Reader's Digest Association, Inc. (non-vtg.)	652,900		8,801,092
Scholastic Corp. (a)	100		2,978
TiVo, Inc. (a)	100		1,218
Torstar Corp. Class B	100		2,044
Univision Communications, Inc. Class A (a)	100		3,040
Washington Post Co. Class B	100		73,290
Westwood One, Inc. (a)	100		3,393
			21,475,998
Multiline Retail - 0.3%
99 Cents Only Stores (a)	143,700		4,931,784
Big Lots, Inc. (a)	100		1,504
Kohl's Corp. (a)	100		5,138
			4,938,426
Specialty Retail - 3.1%
AC Moore Arts & Crafts, Inc. (a)	507,300		10,161,219
AutoZone, Inc. (a)	100		7,597
Bed Bath & Beyond, Inc. (a)	100		3,881
Best Buy Co., Inc. (a)	200		8,784
Cache, Inc. (a)	100		1,540
CarMax, Inc. (a)	435,300		13,124,295
Chico's FAS, Inc. (a)	100		2,105
Christopher & Banks Corp. (a)	22,100		817,479
Claire's Stores, Inc.	148,900		3,776,104
Cost Plus, Inc. (a)	26,900		959,254
Forzani Group Ltd. Class A (a)	100		1,439
Gart Sports Co. (a)	100		2,836
Group 1 Automotive, Inc. (a)	100		3,241
Hot Topic, Inc. (a)	504,300		13,570,713
KOMERI Co. Ltd.	100		1,830
Michaels Stores, Inc. (a)	3,500		133,210
PETsMART, Inc.	100		1,667
Ross Stores, Inc.	156,300		6,680,262
Shimamura Co. Ltd.	100		5,539
Staples, Inc. (a)	100		1,835
Talbots, Inc.	100		2,945
The Bombay Company, Inc. (a)	98,000		1,041,740
Tiffany & Co., Inc.	100		3,268
Common Stocks - continued
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - continued
Specialty Retail - continued
TJX Companies, Inc.	100		$ 1,884
Too, Inc. (a)	100		2,025
Weight Watchers International, Inc. (a)	100		4,549
Williams-Sonoma, Inc. (a)	200		5,840
			50,327,081
Textiles Apparel & Luxury Goods - 1.4%
Adidas-Salomon AG	100		8,574
Brown Shoe Co., Inc.	100		2,980
Coach, Inc. (a)	100		4,974
Columbia Sportswear Co. (a)	359,000		18,456,190
DHB Industries, Inc. (a)	100		409
Fossil, Inc. (a)	145,300		3,423,268
Liz Claiborne, Inc.	100		3,525
Quiksilver, Inc. (a)	200		3,298
Vans, Inc. (a)	100		898
			21,904,116
TOTAL CONSUMER DISCRETIONARY			151,816,036
CONSUMER STAPLES - 2.8%
Beverages - 0.0%
Boston Beer Co., Inc. Class A (a)	100		1,440
Companhia de Bebidas das Americas (AmBev) sponsored ADR	100		2,035
Grupo Modelo SA de CV Series C	100		228
			3,703
Food & Staples Retailing - 0.4%
Companhia Brasileira de Distribuicao Grupo Pao de Acucar sponsored ADR	100		1,534
Costco Wholesale Corp. (a)	86,500		3,165,900
United Natural Foods, Inc. (a)	100		2,814
Whole Foods Market, Inc. (a)	51,200		2,433,536
			5,603,784
Food Products - 2.4%
Central Garden & Pet Co. Class A (a)	100		2,385
Delta & Pine Land Co.	124,300		2,732,114
Fresh Del Monte Produce, Inc.	291,800		7,496,342
Green Mountain Coffee Roasters, Inc. (a)	186,400		3,541,600
Hershey Foods Corp.	176,700		12,308,922
Horizon Organic Holding Corp. (a)	40,600		967,498
McCormick & Co., Inc. (non-vtg.)	327,500		8,908,000
PT Indofood Sukses Makmur	26,677,500		2,744,438
Sensient Technologies Corp.	100		2,299
Yakult Honsha Co. Ltd.	1,000		13,451
			38,717,049
Personal Products - 0.0%
Alberto-Culver Co. Class A	100		4,978
TOTAL CONSUMER STAPLES			44,329,514

	Shares		Value (Note 1)
ENERGY - 11.5%
Energy Equipment & Services - 6.7%
BJ Services Co. (a)	529,810		$ 19,793,702
Carbo Ceramics, Inc.	101,100		3,765,975
GlobalSantaFe Corp.	131,050		3,058,707
National-Oilwell, Inc. (a)	588,600		12,949,200
Oceaneering International, Inc. (a)	772,900		19,747,595
Pride International, Inc. (a)	519,500		9,776,990
Smith International, Inc. (a)	233,890		8,593,119
Tidewater, Inc.	468,050		13,746,629
Varco International, Inc. (a)	656,648		12,870,291
W-H Energy Services, Inc. (a)	192,300		3,746,004
			108,048,212
Oil & Gas - 4.8%
Apache Corp.	323,820		21,067,729
Devon Energy Corp.	70,800		3,780,720
OAO Gazprom sponsored ADR	100		1,880
PetroKazakhstan, Inc. Class A (a)	1,292,100		16,057,779
Petroleo Brasileiro SA Petrobras sponsored ADR	100		1,976
Pioneer Natural Resources Co. (a)	107,200		2,797,920
Pogo Producing Co.	72,800		3,112,200
Suncor Energy, Inc.	958,500		18,020,767
Surgutneftegaz JSC sponsored ADR	100		2,075
Talisman Energy, Inc.	152,400		6,953,999
YUKOS Corp. sponsored ADR	104,250		5,801,513
			77,598,558
TOTAL ENERGY			185,646,770
FINANCIALS - 5.8%
Capital Markets - 0.6%
A.G. Edwards, Inc.	100		3,420
Charles Schwab Corp.	100		1,009
Franklin Resources, Inc.	100		3,907
Investment Technology Group, Inc. (a)	365,800		6,803,880
Investors Financial Services Corp.	100		2,901
Mitsubishi Securities Co. Ltd.	538,000		3,272,320
T. Rowe Price Group, Inc.	100		3,775
			10,091,212
Commercial Banks - 0.5%
Banco Itau Holding Financeira SA sponsored ADR	100		3,390
Boston Private Financial Holdings, Inc.	142,900		3,012,332
Bryn Mawr Bank Corp.	10		371
Cathay Bancorp, Inc.	10		446
Commerce Bancorp, Inc., New Jersey	100		3,710
Hancock Holding Co.	150		7,059
Kookmin Bank sponsord ADR	100		3,025
Marshall & Ilsley Corp.	100		3,058
Sterling Bancshares, Inc.	10		131
Sumitomo Trust & Banking Ltd.	1,412,000		4,895,814
TCF Financial Corp.	100		3,984
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Commercial Banks - continued
UCBH Holdings, Inc.	100		$ 2,868
Wintrust Financial Corp.	100		2,960
			7,939,148
Consumer Finance - 0.0%
Student Loan Corp.	100		12,600
Diversified Financial Services - 0.0%
Deutsche Boerse AG	100		5,311
Moody's Corp.	100		5,271
Principal Financial Group, Inc.	100		3,225
			13,807
Insurance - 2.1%
AFLAC, Inc.	2,800		86,100
Great-West Lifeco, Inc.	100		2,894
MBIA, Inc.	100		4,875
Mercury General Corp. New	34,500		1,574,925
MetLife, Inc.	100		2,832
Old Republic International Corp.	122,000		4,180,940
Progressive Corp.	63,900		4,671,090
Protective Life Corp.	45,900		1,227,825
Reinsurance Group of America, Inc.	273,600		8,782,560
StanCorp Financial Group, Inc.	100		5,222
UnumProvident Corp.	100		1,341
W.R. Berkley Corp.	254,250		13,398,975
Zenith National Insurance Corp.	300		8,550
			33,948,129
Real Estate - 2.5%
Equity Residential (SBI)	100		2,595
Pan Pacific Retail Properties, Inc.	200,000		7,870,000
ProLogis	298,200		8,140,860
Simon Property Group, Inc.	595,700		23,250,171
			39,263,626
Thrifts & Mortgage Finance - 0.1%
Doral Financial Corp.	2,100		93,765
Farmer Mac Class C (non-vtg.) (a)	86,300		1,928,805
			2,022,570
TOTAL FINANCIALS			93,291,092
HEALTH CARE - 22.4%
Biotechnology - 7.6%
Actelion Ltd. (Reg.) (a)	100		6,676
Affymetrix, Inc. (a)	100		1,971
Biogen, Inc. (a)	100		3,800
BioSource International, Inc. (a)	100		690
Caliper Technologies Corp. (a)	100		455
Celltech Group PLC sponsored ADR (a)	100		1,112
Charles River Laboratories International, Inc. (a)	925,400		29,779,372
Connetics Corp. (a)	100		1,497
Digene Corp. (a)	100		2,723

	Shares		Value (Note 1)
Enzon Pharmaceuticals, Inc. (a)	100		$ 1,252
Genentech, Inc. (a)	100		7,212
Gilead Sciences, Inc. (a)	100		5,558
Harvard Bioscience, Inc. (a)(c)	2,802,200		10,648,360
IDEC Pharmaceuticals Corp. (a)	200		6,800
IDEXX Laboratories, Inc. (a)	138,400		4,641,936
Invitrogen Corp. (a)	1,187,700		45,572,049
Martek Biosciences (a)	100		4,294
MedImmune, Inc. (a)	100		3,637
QIAGEN NV (a)	3,071,400		24,939,768
Techne Corp. (a)	242,300		7,351,382
United Therapeutics Corp. (a)	100		2,178
			122,982,722
Health Care Equipment & Supplies - 2.4%
Advanced Neuromodulation Systems, Inc. (a)	100		5,177
Align Technology, Inc. (a)	100		1,255
Amersham PLC	1,320,600		9,939,885
Apogent Technologies, Inc. (a)	100		2,000
Becton, Dickinson & Co.	100		3,885
Biacore International AB sponsored ADR	100		2,140
Biomet, Inc.	100		2,866
Biosite, Inc. (a)	100		4,810
Bruker AXS, Inc. (a)	100		307
Bruker Daltonics, Inc. (a)	100		533
C.R. Bard, Inc.	100		7,131
Closure Medical Corp. (a)	13,300		251,104
CNS., Inc. (a)	100		850
CTI Molecular Imaging, Inc.	100		1,891
Cyberonics, Inc. (a)	100		2,151
DENTSPLY International, Inc.	100		4,090
Edwards Lifesciences Corp. (a)	475,500		15,282,570
Guidant Corp.	3,800		168,682
HealthTronics Surgical Services, Inc. (a)	100		900
ICU Medical, Inc. (a)	100		3,115
Integra Lifesciences Holdings Corp. (a)	100		2,638
Kensey Nash Corp. (a)	100		2,600
Millipore Corp. (a)	74,300		3,296,691
Molecular Devices Corp. (a)	100		1,591
Nutraceutical International Corp. (a)	100		1,075
Schick Technologies, Inc. (a)	52,700		363,630
St. Jude Medical, Inc. (a)	100		5,750
SurModics, Inc. (a)	100		3,050
Tecan Group AG	100		2,872
Therasense, Inc. (a)	100		1,000
TriPath Imaging, Inc. (a)	100		683
Varian Medical Systems, Inc. (a)	157,700		9,078,789
Wilson Greatbatch Technologies, Inc. (a)	100		3,610
Wright Medical Group, Inc. (a)	100		1,900
			38,451,221
Health Care Providers & Services - 10.1%
Accredo Health, Inc. (a)	810,750		17,674,350
AdvancePCS Class A (a)	670,400		25,629,392
Common Stocks - continued
	Shares		Value (Note 1)
HEALTH CARE - continued
Health Care Providers & Services - continued
American Healthways, Inc. (a)	100		$ 3,612
AmSurg Corp. (a)	167,000		5,093,500
Anthem, Inc. (a)	100		7,715
Caremark Rx, Inc. (a)	734,100		18,851,688
Cerner Corp. (a)	967,200		22,197,240
Coventry Health Care, Inc. (a)	81,800		3,775,888
Eclipsys Corp. (a)	100		1,044
Express Scripts, Inc. (a)	46,200		3,156,384
First Health Group Corp. (a)	9,800		270,480
Health Management Associates, Inc. Class A	481,500		8,883,675
IMS Health, Inc.	1,757,800		31,622,822
Laboratory Corp. of America Holdings (a)	100		3,015
McKesson Corp.	3,500		125,090
MIM Corp. (a)	100		653
NDCHealth Corp.	100		1,835
Omnicare, Inc.	240,500		8,126,495
Oxford Health Plans, Inc. (a)	100		4,203
Patterson Dental Co. (a)	100		4,538
Pharmaceutical Product Development, Inc. (a)	100		2,873
Priority Healthcare Corp. Class B (a)	669,000		12,409,950
Quest Diagnostics, Inc. (a)	100		6,380
ResCare, Inc. (a)	802,973		3,669,587
Tripos, Inc. (a)	100		795
WebMD Corp. (a)	41,600		450,528
			161,973,732
Pharmaceuticals - 2.3%
Alpharma, Inc. Class A	100		2,160
Altana AG sponsored ADR	100		6,200
Dr. Reddy's Laboratories Ltd. ADR	238,300		5,554,773
Endo Pharmaceuticals Holdings, Inc. (a)	100		1,692
Forest Laboratories, Inc. (a)	200		10,950
ICN Pharmaceuticals, Inc.	95,700		1,603,932
Mylan Laboratories, Inc.	203,000		7,058,310
Novo Nordisk AS Series B	100		3,510
Perrigo Co.	14,200		222,088
Pharmaceutical Resources, Inc. (a)	7,700		374,682
Ranbaxy Laboratories Ltd. sponsored GDR	270,300		5,238,414
SICOR, Inc. (a)	473,400		9,628,956
Stada Arzneimittel AG	111,796		7,131,194
Watson Pharmaceuticals, Inc. (a)	5,200		209,924
			37,046,785
TOTAL HEALTH CARE			360,454,460

	Shares		Value (Note 1)
INDUSTRIALS - 6.6%
Aerospace & Defense - 1.8%
Alliant Techsystems, Inc. (a)	100		$ 5,191
Applied Signal Technology, Inc.	100		1,700
DRS Technologies, Inc. (a)	204,900		5,720,808
Embraer - Empresa Brasileira de Aeronautica SA sponsored ADR	100		1,910
Engineered Support Systems, Inc.	150		6,278
Herley Industries, Inc. (a)	93,300		1,584,234
L-3 Communications Holdings, Inc. (a)	202,800		8,819,772
Veridian Corp.	391,100		13,645,479
			29,785,372
Air Freight & Logistics - 0.0%
C.H. Robinson Worldwide, Inc.	3,250		115,570
Expeditors International of Washington, Inc.	4,400		152,416
FedEx Corp.	100		6,203
UTI Worldwide, Inc.	100		3,119
			277,308
Airlines - 0.0%
Southwest Airlines Co.	100		1,720
Building Products - 0.0%
Simpson Manufacturing Co. Ltd. (a)	100		3,660
Commercial Services & Supplies - 3.1%
Apollo Group, Inc. Class A (a)	200		12,352
Avery Dennison Corp.	100		5,020
Bright Horizons Family Solutions, Inc. (a)(c)	670,900		22,515,404
Career Education Corp. (a)	100		6,842
ChoicePoint, Inc. (a)	579,900		20,018,148
Cintas Corp.	100		3,544
Corinthian Colleges, Inc. (a)	100		4,857
Danka Business Systems PLC sponsored ADR (a)	17,000		65,603
DeVry, Inc. (a)	3,900		90,831
Education Management Corp. (a)	100		5,318
FTI Consulting, Inc. (a)	150		3,746
H&R Block, Inc.	3,300		142,725
Headwaters, Inc. (a)	100		1,469
Herman Miller, Inc.	100		2,021
HON Industries, Inc.	131,500		4,010,750
Ionics, Inc. (a)	100		2,237
Princeton Review, Inc. (a)	200		1,180
Right Management Consultants, Inc. (a)	100		1,265
Robert Half International, Inc. (a)	100		1,894
Stericycle, Inc. (a)	100		3,848
Strayer Education, Inc.	100		7,945
Tetra Tech, Inc. (a)	182,800		3,131,364
West Corp. (a)	100		2,665
			50,041,028
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Construction & Engineering - 0.0%
Granite Construction, Inc.	100		$ 1,916
Jacobs Engineering Group, Inc. (a)	100		4,215
			6,131
Electrical Equipment - 0.2%
Johnson Electric Holdings Ltd.	500		619
REPower Systems AG	121,500		2,890,233
			2,890,852
Industrial Conglomerates - 0.4%
Alleghany Corp.	32,778		6,260,598
Teleflex, Inc.	100		4,255
			6,264,853
Machinery - 1.1%
AGCO Corp. (a)	100		1,708
CNH Global NV	100		954
CUNO, Inc. (a)	86,000		3,106,320
Dionex Corp. (a)	100		3,975
ESCO Technologies, Inc. (a)	100		4,400
Graco, Inc.	445,800		14,265,600
Husky Injection Molding Systems Ltd. (a)	100		434
Joy Global, Inc. (a)	100		1,477
PACCAR, Inc.	100		6,756
Pentair, Inc.	100		3,906
Quixote Corp.	100		2,553
Trinity Industries, Inc.	100		1,851
			17,399,934
Road & Rail - 0.0%
Canadian National Railway Co.	100		4,829
Heartland Express, Inc. (a)	100		2,225
			7,054
Trading Companies & Distributors - 0.0%
Fastenal Co.	200		6,788
TOTAL INDUSTRIALS			106,684,700
INFORMATION TECHNOLOGY - 10.1%
Communications Equipment - 0.0%
3Com Corp. (a)	100		468
Avocent Corp. (a)	100		2,993
Black Box Corp.	100		3,620
Emulex Corp. (a)	100		2,277
Harris Corp.	100		3,005
InterDigital Communication Corp. (a)	100		2,337
Loral Space & Communications Ltd. (a)	67,810		206,821
NetScreen Technologies, Inc. (a)	200		4,510
Packeteer, Inc. (a)	10		156
PC-Tel, Inc. (a)	100		1,186
Polycom, Inc. (a)	200		2,772
QUALCOMM, Inc.	100		3,575

	Shares		Value (Note 1)
Scientific-Atlanta, Inc.	5,100		$ 121,584
UTStarcom, Inc. (a)	100		3,557
			358,861
Computers & Peripherals - 0.8%
ATI Technologies, Inc. (a)	100		994
Avid Technology, Inc. (a)	100		3,507
Drexler Technology Corp. (a)(c)	850,126		13,176,953
Lexmark International, Inc. Class A (a)	100		7,077
			13,188,531
Electronic Equipment & Instruments - 5.5%
Anritsu Corp.	633,000		3,464,074
CDW Corp. (a)	60,600		2,775,480
Flir Systems, Inc. (a)	200		6,030
INFICON Holding AG (a)	100		6,439
Mettler-Toledo International, Inc. (a)	173,000		6,340,450
MOCON, Inc.	100		725
Nam Tai Electronics, Inc.	111,800		4,740,320
National Instruments Corp. (a)	100		3,778
Symbol Technologies, Inc.	3,312,400		43,094,324
Trimble Navigation Ltd. (a)	100		2,293
Waters Corp. (a)	978,720		28,510,114
			88,944,027
Internet Software & Services - 0.5%
Aquantive, Inc. (a)	125,792		1,320,816
Ariba, Inc. (a)	100		297
AsiaInfo Holdings, Inc. (a)	100		820
Autobytel, Inc. (a)	100		624
CNET Networks, Inc. (a)	100		623
Digital Impact, Inc. (a)	100		185
Digital Insight Corp. (a)	10		191
Expedia, Inc. (a)	200		15,276
FreeMarkets, Inc. (a)	100		696
j2 Global Communications, Inc. (a)	100		4,598
LookSmart Ltd. (a)	100		283
Netease.com, Inc. sponsored ADR (a)	23,200		845,872
NetRatings, Inc. (a)	10		91
NIC, Inc. (a)	10		29
Overture Services, Inc. (a)	180,900		3,279,717
PEC Solutions, Inc. (a)	100		1,610
Quovadx, Inc. (a)	10		30
Raindance Communications, Inc. (a)	10		25
Retek, Inc. (a)	92,800		593,920
SINA.com (a)	45,000		914,850
Sohu.com, Inc. (a)	24,800		847,168
Supportsoft, Inc. (a)	10		65
ValueClick, Inc. (a)	100		603
Yahoo!, Inc. (a)	100		3,276
			7,831,665
IT Services - 1.4%
Affiliated Computer Services, Inc. Class A (a)	101,300		4,632,449
CACI International, Inc. Class A (a)	300		10,290
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
IT Services - continued
CheckFree Corp. (a)	100		$ 2,784
Cognizant Technology Solutions Corp. Class A (a)	300		7,308
Concord EFS, Inc. (a)	1,139,000		16,766,080
DST Systems, Inc. (a)	100		3,800
infoUSA, Inc. (a)	100		810
Paychex, Inc.	100		2,931
SRA International, Inc. Class A (a)	100		3,200
SunGard Data Systems, Inc. (a)	100		2,591
			21,432,243
Office Electronics - 0.7%
Zebra Technologies Corp. Class A (a)	153,900		11,571,741
Semiconductors & Semiconductor Equipment - 0.0%
Analog Devices, Inc. (a)	100		3,482
ASM Pacific Technology Ltd.	500		1,462
Broadcom Corp. Class A (a)	100		2,491
International Rectifier Corp. (a)	100		2,682
Intersil Corp. Class A (a)	100		2,661
KLA-Tencor Corp. (a)	100		4,649
Lam Research Corp. (a)	100		1,821
Linear Technology Corp.	100		3,221
Micrel, Inc. (a)	100		1,039
Microchip Technology, Inc.	100		2,463
Novellus Systems, Inc. (a)	100		3,662
NVIDIA Corp. (a)	5,000		115,050
Omnivision Technologies, Inc. (a)	100		3,120
QLogic Corp. (a)	81		3,915
RF Micro Devices, Inc. (a)	100		602
Standard Microsystems Corp. (a)	100		1,517
Tundra Semiconductor Corp. Ltd. (a)	100		827
			154,664
Software - 1.2%
Activision, Inc. (a)	150		1,938
Adobe Systems, Inc.	100		3,207
Ansys, Inc. (a)	100		3,110
BEA Systems, Inc. (a)	100		1,086
Borland Software Corp. (a)	100		977
Business Objects SA sponsored ADR (a)	100		2,195
Check Point Software Technologies Ltd. (a)	100		1,955
Cognos, Inc. (a)	100		2,706
Dassault Systemes SA sponsored ADR	100		3,290
Digimarc Corp. (a)	100		1,570
Electronic Arts, Inc. (a)	107,800		7,976,122
Kronos, Inc. (a)	100		5,081
Legato Systems, Inc. (a)	7,000		58,730
Magma Design Automation, Inc. (a)	100		1,715
Manhattan Associates, Inc. (a)	100		2,597
Mercury Interactive Corp. (a)	100		3,861
Network Associates, Inc. (a)	100		1,268

	Shares		Value (Note 1)
PeopleSoft, Inc. (a)	100		$ 1,759
Red Hat, Inc. (a)	100		757
Renaissance Learning, Inc. (a)	182,070		3,987,333
Secure Computing Corp. (a)	100		873
Symantec Corp. (a)	50,100		2,197,386
Synopsys, Inc. (a)	100		6,185
Trend Micro, Inc. sponsored ADR (a)	100		1,560
Vastera, Inc. (a)	771,999		4,608,834
WatchGuard Technologies, Inc. (a)	10		46
			18,876,141
TOTAL INFORMATION TECHNOLOGY			162,357,873
MATERIALS - 16.0%
Chemicals - 0.3%
BOC Group PLC	100		1,287
Ecolab, Inc.	200		5,120
International Flavors & Fragrances, Inc.	154,800		4,942,764
Potash Corp. of Saskatchewan	100		6,381
Praxair, Inc.	100		6,010
Sigma Aldrich Corp.	100		5,418
Sinopec Shanghai Petrochemical Co. Ltd. (H Shares)	2,000		390
Spartech Corp.	100		2,121
Terra Nitrogen Co. LP	100		510
Valspar Corp.	100		4,222
			4,974,223
Construction Materials - 0.0%
Florida Rock Industries, Inc.	100		4,128
James Hardie Industries NV	100		474
Vulcan Materials Co.	100		3,707
			8,309
Containers & Packaging - 0.0%
IPL, Inc. Class A	100		668
Metals & Mining - 15.6%
Agnico-Eagle Mines Ltd.	1,119,130		12,911,761
Agnico-Eagle Mines Ltd. warrants 11/14/07 (a)	23,350		65,380
Apex Silver Mines Ltd. (a)	100		1,475
AUR Resources, Inc. (a)	3,015,100		7,494,127
Barrick Gold Corp.	100		1,780
Companhia Vale do Rio Doce sponsored ADR	100		2,966
Compania de Minas Buenaventura SA sponsored ADR	701,800		21,117,162
Freeport-McMoRan Copper & Gold, Inc. Class B	884,300		21,665,350
Goldcorp, Inc.	50,000		600,979
Harmony Gold Mining Co. Ltd.	1,146,300		15,105,090
High River Gold Mines Ltd. (a)	982,300		1,246,278
Kinross Gold Corp. (a)	3,621,966		24,427,713
Meridian Gold, Inc. (a)	3,489,000		39,865,410
Newmont Mining Corp. Holding Co.	2,814,180		91,348,276
Nucor Corp.	100		4,885
Common Stocks - continued
	Shares		Value (Note 1)
MATERIALS - continued
Metals & Mining - continued
Placer Dome, Inc.	100		$ 1,224
POSCO sponsored ADR	100		2,619
Sons of Gwalia Ltd. ADR	100		775
Steel Dynamics, Inc. (a)	129,000		1,767,300
Teck Cominco Ltd. Class B (sub. vtg.)	1,550,900		12,715,125
			250,345,675
Paper & Forest Products - 0.1%
Aracruz Celulose SA sponsored ADR	100		2,106
Sino-Forest Corp. Class A (sub. vtg.) (a)	937,400		1,592,704
			1,594,810
TOTAL MATERIALS			256,923,685
TELECOMMUNICATION SERVICES - 0.3%
Diversified Telecommunication Services - 0.2%
BCE, Inc.	100		2,305
Golden Telecom, Inc. (a)	100		2,244
ITXC Corp. (a)	10		26
Matav Rt. sponsored ADR	100		1,720
PT Telkomunikasi Indonesia Tbk sponsored ADR	252,300		2,825,760
Rostelecom sponsored ADR	100		1,039
			2,833,094
Wireless Telecommunication Services - 0.1%
Advanced Info Service PCL (For. Reg.)	100		146
America Movil SA de CV sponsored ADR	100		1,875
At Road, Inc. (a)	128,500		1,403,220
Mobile TeleSystems OJSC sponsored ADR (a)	100		5,900
Vimpel Communications sponsored ADR (a)	100		4,644
			1,415,785
TOTAL TELECOMMUNICATION SERVICES			4,248,879
UTILITIES - 3.6%
Electric Utilities - 0.2%
Ameren Corp.	100		4,410
Black Hills Corp.	100		3,070
Cinergy Corp.	100		3,679
Empire District Electric Co.	100		2,175
Otter Tail Corp.	100		2,698
Wisconsin Energy Corp.	109,500		3,175,500
			3,191,532
Gas Utilities - 1.1%
KeySpan Corp.	498,700		17,678,915
Southwestern Energy Co. (a)	100		1,501
			17,680,416

	Shares		Value (Note 1)
Multi-Utilities & Unregulated Power - 2.3%
Energy East Corp.	100		$ 2,076
Equitable Resources, Inc.	92,600		3,772,524
Questar Corp.	5,600		187,432
SCANA Corp.	894,000		30,646,320
Sierra Pacific Resources (a)	393,700		2,338,578
			36,946,930
TOTAL UTILITIES			57,818,878
TOTAL COMMON STOCKS (Cost $1,239,018,524)		1,423,571,887

U.S. Treasury Obligations - 0.0%
	Principal Amount
U.S. Treasury Bills, yield at date of purchase 1.1% 7/3/03 (d) (Cost $24,998)	$ 25,000	24,999

Money Market Funds - 16.5%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	178,266,610		178,266,610
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	86,930,752		86,930,752
TOTAL MONEY MARKET FUNDS (Cost $265,197,362)		265,197,362
TOTAL INVESTMENT PORTFOLIO - 105.0% (Cost $1,504,240,884)			1,688,794,248
NET OTHER ASSETS - (5.0)%			(80,537,204)
NET ASSETS - 100%		$ 1,608,257,044

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Gain/(Loss)
Purchased
Equity Index Contracts
1 S&P MidCap 400 Index Contracts	Sept. 2003	$ 240,100	$ 87

The face value of futures purchased as a percentage of net assets 0.0%

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) 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 $24,999.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $414,289,322 and $341,313,289, respectively.

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

United States of America	82.6%
Canada	8.8%
Netherlands	1.5%
Peru	1.3%
Others (individually less than 1%)	5.8%
	100.0%

Transactions during the period with companies which are or were affiliates are as follows:

Affiliate	Purchase Cost	Sales Cost	Dividend Income	Value
Bright Horizons Family Solutions, Inc.	$ 452,775	$ -	$ -	$ 22,515,404
Drexler Technology Corp.	4,314,828	-	-	13,176,953
Harvard Bioscience, Inc.	3,124,014	-	-	10,648,360
TOTALS	$ 7,891,617	$ -	$ -	$46,340,717

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $158,631,000 of which $15,428,000, $42,786,000 and $100,417,000 will expire on December 31, 2008, 2009 and 2010, respectively.

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

Mid Cap Portfolio

Fidelity Variable Insurance Products: Mid Cap Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $82,459,787) (cost $1,504,240,884) - See accompanying schedule		$ 1,688,794,248
Receivable for investments sold		6,305,985
Receivable for fund shares sold		1,232,130
Dividends receivable		726,197
Interest receivable		222,250
Other receivables		189,768
Total assets		1,697,470,578

Liabilities
Payable to custodian bank	$ 83,308
Payable for investments purchased	120,678
Payable for fund shares redeemed	1,012,357
Accrued management fee	778,285
Distribution fees payable	180,698
Payable for daily variation on futures contracts	800
Other payables and accrued expenses	106,656
Collateral on securities loaned, at value	86,930,752
Total liabilities		89,213,534

Net Assets		$ 1,608,257,044
Net Assets consist of:
Paid in capital		$ 1,603,377,354
Accumulated net investment loss		(820,569)
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(178,856,492)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		184,556,751
Net Assets		$ 1,608,257,044

Initial Class: Net Asset Value, offering price and redemption price per share ($485,537,863 ÷ 25,587,308 shares)		$ 18.98

Service Class: Net Asset Value, offering price and redemption price per share ($412,982,974 ÷ 21,807,628 shares)		$ 18.94

Service Class 2: Net Asset Value, offering price and redemption price per share ($709,736,207 ÷ 37,638,380 shares)		$ 18.86

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 3,414,512
Interest		1,146,985
Security lending		691,436
Total income		5,252,933

Expenses
Management fee	$ 4,151,159
Transfer agent fees	500,364
Distribution fees	918,869
Accounting and security lending fees	171,125
Non-interested trustees' compensation	2,834
Custodian fees and expenses	49,119
Audit	17,856
Legal	1,478
Miscellaneous	257,923
Total expenses before reductions	6,070,727
Expense reductions	(208,343)	5,862,384
Net investment income (loss)		(609,451)
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(17,980,179)
Foreign currency transactions	(110)
Futures contracts	20,901
Total net realized gain (loss)		(17,959,388)
Change in net unrealized appreciation (depreciation) on: Investment securities	146,933,167
Assets and liabilities in foreign currencies	1,949
Futures contracts	4,268
Total change in net unrealized appreciation (depreciation)		146,939,384
Net gain (loss)		128,979,996
Net increase (decrease) in net assets resulting from operations		$ 128,370,545

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

Semiannual Report

Fidelity Variable Insurance Products: Mid Cap Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ (609,451)	$ 5,367,275
Net realized gain (loss)	(17,959,388)	(100,092,133)
Change in net unrealized appreciation (depreciation)	146,939,384	(54,350,719)
Net increase (decrease) in net assets resulting from operations	128,370,545	(149,075,577)
Distributions to shareholders from net investment income	(5,082,393)	(10,315,464)
Share transactions - net increase (decrease)	86,214,894	406,189,773
Total increase (decrease) in net assets	209,503,046	246,798,732

Net Assets
Beginning of period	1,398,753,998	1,151,955,266
End of period (including accumulated net investment loss of $820,569 and undistributed net investment income of $4,928,520, respectively)	$ 1,608,257,044	$ 1,398,753,998

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
Shares	Initial Class	Service Class	Service Class 2
Sold	791,168	1,685,646	10,521,376
Reinvested	131,528	76,717	95,288
Redeemed	(3,866,493)	(1,616,633)	(2,932,933)
Net increase (decrease)	(2,943,797)	145,730	7,683,731
Dollars
Sold	$ 13,943,431	$ 29,471,153	$ 182,327,647
Reinvested	2,207,036	1,285,007	1,590,350
Redeemed	(66,155,199)	(27,544,480)	(50,910,051)
Net increase (decrease)	$ (50,004,732)	$ 3,211,680	$ 133,007,946

Share Transactions	Year ended December 31, 2002
Shares	Initial Class	Service Class	Service Class 2
Sold	7,049,981	6,655,084	22,666,360
Reinvested	277,413	161,340	101,720
Redeemed	(8,136,461)	(3,917,197)	(3,604,685)
Net increase (decrease)	(809,067)	2,899,227	19,163,395
Dollars
Sold	$ 134,875,925	$ 125,174,947	$ 416,253,061
Reinvested	5,301,369	3,078,362	1,935,732
Redeemed	(145,105,795)	(70,148,866)	(65,174,962)
Net increase (decrease)	$ (4,928,501)	$ 58,104,443	$ 353,013,831

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 2,207,036	$ 1,285,007	$ 1,590,350
From net realized gain	-	-	-
Total	$ 2,207,036	$ 1,285,007	$ 1,590,350

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 5,301,369	$ 3,078,362	$ 1,935,733
From net realized gain	-	-	-
Total	$ 5,301,369	$ 3,078,362	$ 1,935,733

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

Mid Cap Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.51	$ 19.60	$ 20.26	$ 15.25	$ 10.31	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	-^H	.09	.20	.19	-^H	-^H
Net realized and unrealized gain (loss)	1.55	(2.00)	(.86)	4.95	5.05	.31
Total from investment operations	1.55	(1.91)	(.66)	5.14	5.05	.31
Distributions from net investment income	(.08)	(.18)	-	(.08)	-	-
Distributions from net realized gain	-	-	-	-	(.09)	-
Distributions in excess of net realized gain	-	-	-	(.05)	(.02)	-
Total distributions	(.08)	(.18)	-	(.13)	(.11)	-
Net asset value, end of period	$ 18.98	$ 17.51	$ 19.60	$ 20.26	$ 15.25	$ 10.31
Total Return^B,C,D	8.91%	(9.82)%	(3.26)%	33.78%	49.04%	3.10%
Ratios to Average Net Assets^G
Expenses before expense reductions	.72%^A	.70%	.69%	.74%	3.34%	115.88%^A
Expenses net of voluntary waivers, if any	.72%^A	.70%	.69%	.74%	1.00%	1.00%^A
Expenses net of all reductions	.69%^A	.63%	.62%	.69%	.97%	1.00%^A
Net investment income (loss)	.04%^A	.51%	1.06%	1.01%	.01%	(.27)%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 485,538	$ 499,557	$ 574,934	$ 589,026	$ 1,744	$ 516
Portfolio turnover rate	54%^A	135%	144%	245%	163%	125%^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 For the period December 28, 1998 (commencement of operations) to December 31, 1998.

^HAmount represents less than $.01 per-share.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.46	$ 19.54	$ 20.22	$ 15.24	$ 10.31	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	-^H	.08	.18	.17	(.01)	-^H
Net realized and unrealized gain (loss)	1.54	(2.00)	(.86)	4.93	5.05	.31
Total from investment operations	1.54	(1.92)	(.68)	5.10	5.04	.31
Distributions from net investment income	(.06)	(.16)	-	(.07)	-	-
Distributions from net realized gain	-	-	-	-	(.09)	-
Distributions in excess of net realized gain	-	-	-	(.05)	(.02)	-
Total distributions	(.06)	(.16)	-	(.12)	(.11)	-
Net asset value, end of period	$ 18.94	$ 17.46	$ 19.54	$ 20.22	$ 15.24	$ 10.31
Total Return^B,C,D	8.87%	(9.90)%	(3.36)%	33.54%	48.94%	3.10%
Ratios to Average Net Assets^G
Expenses before expense reductions	.82%^A	.80%	.79%	.84%	3.41%	115.96%^A
Expenses net of voluntary waivers, if any	.82%^A	.80%	.79%	.84%	1.10%	1.10%^A
Expenses net of all reductions	.79%^A	.73%	.72%	.79%	1.07%	1.10%^A
Net investment income (loss)	(.06)%^A	.41%	.96%	.92%	(.09)%	(.35)%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 412,983	$ 378,264	$ 366,665	$ 282,941	$ 25,908	$ 516
Portfolio turnover rate	54%^A	135%	144%	245%	163%	125%^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 For the period December 28, 1998 (commencement of operations) to December 31, 1998.

^H Amount represents less than $.01 per-share.

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

Mid Cap Portfolio

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000 ^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.39	$ 19.49	$ 20.20	$ 14.82
Income from Investment Operations
Net investment income (loss)^E	(.02)	.05	.15	.14
Net realized and unrealized gain (loss)	1.54	(1.99)	(.86)	5.35
Total from investment operations	1.52	(1.94)	(.71)	5.49
Distributions from net investment income	(.05)	(.16)	-	(.06)
Distributions in excess of net realized gain	-	-	-	(.05)
Total distributions	(.05)	(.16)	-	(.11)
Net asset value, end of period	$ 18.86	$ 17.39	$ 19.49	$ 20.20
Total Return^B,C,D	8.78%	(10.02)%	(3.51)%	37.12%
Ratios to Average Net Assets^G
Expenses before expense reductions	.98%^A	.95%	.94%	.99%^A
Expenses net of voluntary waivers, if any	.98%^A	.95%	.94%	.99%^A
Expenses net of all reductions	.95%^A	.88%	.88%	.94%^A
Net investment income (loss)	(.21)%^A	.25%	.81%	.76%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 709,736	$ 520,933	$ 210,356	$ 73,039
Portfolio turnover rate	54%^A	135%	144%	245%

^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 For the period January 12, 2000 (commencement of operations) to December 31, 2000.

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

Semiannual Report

Fidelity Variable Insurance Products: Money Market Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 1.0%
Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Bell Trace Obligated Group
7/11/03	1.34% (b)	$ 11,800,000		$ 11,800,000
Conoco, Inc.
4/15/04	1.51	12,335,000		12,753,657
TOTAL CORPORATE BONDS			24,553,657
Certificates of Deposit - 23.7%

London Branch, Eurodollar, Foreign Banks - 14.3%
BNP Paribas SA
8/26/03	1.25%	25,000,000		25,000,000
Deutsche Bank AG
7/14/03	1.25	50,000,000		50,000,000
Dresdner Bank AG
8/21/03	1.24	10,000,000		10,000,000
HBOS Treasury Services PLC
7/3/03	1.21	15,000,000		15,000,000
7/31/03	1.26	50,000,000		50,000,000
8/21/03	1.21	10,000,000		10,000,000
9/15/03	0.94	10,000,000		10,002,101
ING Bank NV
7/7/03	1.25	35,000,000		35,000,000
10/1/03	1.05 (d)	50,000,000		50,000,000
Norddeutsche Landesbank Girozentrale
7/1/03	1.27	50,000,000		50,000,000
Societe Generale
8/22/03	1.26	50,000,000		50,000,000
				355,002,101
New York Branch, Yankee Dollar, Foreign Banks - 9.4%
BNP Paribas SA
7/1/03	1.04 (b)	50,000,000		49,991,766
8/11/03	1.35	5,000,000		5,000,000
9/19/03	1.43	25,000,000		25,000,000
Canadian Imperial Bank of Commerce
7/15/03	1.20 (b)	20,000,000		20,000,000
Credit Agricole Indosuez
7/1/03	1.04 (b)	10,000,000		9,997,734
7/1/03	1.07 (b)	10,000,000		9,999,232
Royal Bank of Canada
7/1/03	1.04 (b)	15,000,000		14,998,481
Royal Bank of Scotland PLC
7/7/03	1.24	15,000,000		15,000,000
Societe Generale
7/1/03	1.04 (b)	20,000,000		19,997,898
7/1/03	1.05 (b)	20,000,000		19,998,585
Svenska Handelsbanken AB
7/1/03	1.24 (b)	10,000,000		10,000,000

Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Toronto-Dominion Bank
7/7/03	1.25%	$ 10,000,000		$ 10,000,025
WestLB AG
8/26/03	1.28	25,000,000		25,000,000
				234,983,721
TOTAL CERTIFICATES OF DEPOSIT			589,985,822
Commercial Paper - 24.5%

Citibank Credit Card Master Trust I (Dakota Certificate Program)
7/18/03	1.27	5,000,000		4,997,001
7/21/03	1.25	40,000,000		39,972,222
8/6/03	1.25	50,000,000		49,937,500
8/12/03	1.15	15,000,000		14,979,875
DaimlerChrysler NA Holding Corp.
7/15/03	1.57	5,000,000		4,996,967
8/13/03	1.53	5,000,000		4,990,922
8/18/03	1.51	9,000,000		8,982,000
9/22/03	1.23	6,000,000		5,982,985
Edison Asset Securitization LLC
7/10/03	1.27	10,000,000		9,996,850
Emerald (MBNA Credit Card Master Note Trust)
7/30/03	1.25	20,000,000		19,979,861
Ford Motor Credit Co.
8/19/03	1.51	11,000,000		10,977,542
9/3/03	1.50	5,000,000		4,986,756
9/4/03	1.51	3,000,000		2,991,875
9/9/03	1.44	6,000,000		5,983,317
GE Capital International Funding, Inc.
8/15/03	1.24	10,000,000		9,984,500
9/18/03	1.27	5,000,000		4,986,175
General Electric Capital Corp.
8/15/03	1.23	10,000,000		9,984,625
General Electric Co.
10/23/03	1.20	10,000,000		9,962,317
General Mills, Inc.
7/10/03	1.32	5,000,000		4,998,350
Goldman Sachs Group, Inc.
7/15/03	1.28	50,000,000		49,975,306
Hatteras Funding Corp.
8/19/03	1.20	5,000,000		4,991,833
ING U.S. Funding LLC
7/15/03	1.30	25,000,000		24,987,410
Morgan Stanley
7/1/03	1.46 (b)	30,000,000		30,000,000
Motown Notes Program
9/10/03	1.06	5,000,000		4,989,547
9/10/03	1.18	5,000,000		4,988,364
9/16/03	1.11	10,000,000		9,976,258
Commercial Paper - continued
Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Newcastle (Discover Card Master Trust)
7/24/03	1.26%	$ 5,000,000		$ 4,995,975
7/25/03	1.25	5,000,000		4,995,833
8/22/03	1.07	60,000,000		59,907,267
Paradigm Funding LLC
7/25/03	1.25	60,000,000		59,950,000
8/5/03	1.20	5,000,000		4,994,167
8/21/03	0.99	5,000,000		4,992,988
Park Granada LLC
8/12/03	1.09	5,000,000		4,993,642
8/18/03	1.01	50,000,000		49,932,667
8/18/03	1.02	25,000,000		24,966,000
9/4/03	1.18	5,000,000		4,989,347
Transamerica Finance Corp.
8/22/03	1.07	25,000,000		24,961,361
TOTAL COMMERCIAL PAPER			609,259,605
Federal Agencies - 21.3%

Fannie Mae - 11.1%
Agency Coupons - 4.1%
6/29/04	1.29	30,000,000		30,000,000
7/20/04	1.06	45,000,000		45,000,000
7/23/04	1.08 (d)	25,000,000		25,000,000
				100,000,000
Discount Notes - 7.0%
7/25/03	1.33	25,000,000		24,978,000
8/25/03	1.15	50,000,000		49,912,153
11/21/03	1.04	100,000,000		99,586,885
				174,477,038
				274,477,038
Federal Home Loan Bank - 7.0%
Agency Coupons - 7.0%
2/24/04	1.40	50,000,000		49,999,050
3/5/04	1.41	25,000,000		25,000,000
3/10/04	1.44	25,000,000		25,000,000
6/28/04	1.30	25,000,000		25,000,000
7/6/04	1.23	50,000,000		50,000,000
				174,999,050
Freddie Mac - 3.2%
Agency Coupons - 1.0%
7/27/04	1.20 (d)	25,000,000		25,000,000

Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Discount Notes - 2.2%
10/31/03	1.03%	$ 49,000,000		$ 48,828,963
12/4/03	1.14	5,000,000		4,975,517
				53,804,480
				78,804,480
TOTAL FEDERAL AGENCIES			528,280,568
Bank Notes - 1.2%

Bank One NA, Chicago
9/8/03	1.16	20,000,000		20,000,000
National City Bank, Indiana
7/1/03	1.04 (b)	10,000,000		9,997,974
TOTAL BANK NOTES			29,997,974
Master Notes - 2.7%

Goldman Sachs Group, Inc.
7/1/03	1.52 (b)(c)	23,000,000		23,000,000
7/7/03	1.35 (c)	15,000,000		15,000,000
8/12/03	1.38 (c)	30,000,000		30,000,000
TOTAL MASTER NOTES			68,000,000
Medium-Term Notes - 16.3%

American Express Credit Corp.
7/7/03	1.35 (b)	10,000,000		10,001,962
Bank of New York Co., Inc.
7/28/03	1.01 (a)(b)	15,000,000		15,000,000
Bank of Scotland Treasury Services PLC
7/23/03	1.33 (b)	10,000,000		10,003,441
Bank One NA, Chicago
7/1/03	1.03 (b)	50,000,000		49,986,721
7/1/03	1.04 (b)	10,000,000		9,999,325
GE Capital Assurance Co.
7/1/03	1.43 (b)(c)	5,000,000		5,000,000
General Electric Capital Corp.
7/1/03	1.58 (b)	20,000,000		20,008,056
7/9/03	1.32 (b)	25,000,000		25,000,000
7/17/03	1.17 (b)	20,000,000		20,000,000
7/28/03	1.11 (b)	15,000,000		15,002,656
General Motors Acceptance Corp. Mortgage Credit
7/1/03	1.82 (b)(c)	30,000,000		30,000,000
Harwood Street Funding I LLC
7/21/03	1.22 (a)(b)	10,000,000		10,000,000
HBOS Treasury Services PLC
9/24/03	1.27 (b)	20,000,000		20,000,000
Medium-Term Notes - continued
Due Date	Annualized Yield at Time of Purchase	Principal Amount		Value (Note 1)
Landesbank Baden-Wuerttemberg
7/15/03	1.18% (b)	$ 25,000,000		$ 25,001,879
Montauk Funding Corp.
7/15/03	1.14 (b)	15,000,000		15,000,000
Morgan Stanley
7/1/03	1.46 (b)	25,000,000		25,000,000
7/15/03	1.28 (b)	20,000,000		20,000,000
National City Bank, Indiana
7/1/03	1.05 (b)	25,000,000		24,995,442
Verizon Global Funding Corp.
9/15/03	1.57 (b)	30,000,000		30,000,000
9/17/03	1.21 (b)	15,000,000		15,000,703
Wachovia Bank NA
7/28/03	1.32 (b)	10,000,000		10,003,456
TOTAL MEDIUM-TERM NOTES			405,003,641
Short-Term Notes - 3.3%

Jackson National Life Insurance Co.
7/1/03	1.42 (b)(c)	7,000,000		7,000,000
Metropolitan Life Insurance Co.
7/1/03	1.48 (b)(c)	10,000,000		10,000,000
7/28/03	1.12 (b)	5,000,000		5,000,000
8/1/03	1.47 (b)(c)	5,000,000		5,000,000
Monumental Life Insurance Co.
7/1/03	1.46 (b)(c)	5,000,000		5,000,000
7/1/03	1.49 (b)(c)	5,000,000		5,000,000
New York Life Insurance Co.
7/1/03	1.42 (b)(c)	30,000,000		30,000,000
Pacific Life Insurance Co.
9/11/03	1.36 (b)(c)	5,000,000		5,000,000
Transamerica Occidental Life Insurance Co.
8/1/03	1.48 (b)(c)	10,000,000		10,000,000
TOTAL SHORT-TERM NOTES			82,000,000
Municipal Securities - 0.1%

West Baton Rouge Parish Indl. District #3 Rev. Bonds (Dow Chemical Co. Proj.) 1.65% tender 7/1/03, CP mode
7/1/03	1.65	2,000,000		2,000,000

Repurchase Agreements - 9.9%
	Maturity Amount		Value (Note 1)
In a joint trading account (Collateralized by U.S. Government Obligations dated 6/30/03 due 7/1/03 At 1.28%)	$ 753,027		$ 753,000
With:
Banc of America Securities LLC At:
1.05%, dated 6/26/03 due 7/28/03 (Collateralized by Mortgage Loan Obligations with principal amounts of $15,750,000, 4.5%, 7/25/33)	15,014,000		15,000,000
1.51%, dated 6/30/03 due 7/1/03 (Collateralized by Corporate Obligations with principal amounts of $154,035,472, 0% - 9%, 2/15/04 - 12/10/37)	100,004,194		100,000,000
Citigroup Global Markets, Inc. At 1.44%, dated 6/30/03 due 7/1/03 (Collateralized by Corporate Obligations with principal amounts of $60,772,000, 5.88% - 7.7%, 12/1/05 - 5/15/33)	54,002,160		54,000,000
J.P. Morgan Securities, Inc. At:
1.09%, dated 6/26/03 due 7/25/03 (Collateralized by Corporate Obligations with principal amounts of $1,750,500, 6.38% - 6.6%, 2/15/08 - 1/15/12)	2,001,756		2,000,000
1.13%, dated 6/26/03 due 7/25/03 (Collateralized by Corporate Obligations with principal amounts of $33,446,000, 5.3% - 7.35%, 7/3/06 - 6/1/28)	35,031,860		35,000,000
Lehman Brothers, Inc. At 1.15%, dated 6/26/03 due 7/29/03 (Collateralized by Corporate Obligations with principal amounts of $14,441,000, 6% - 9.5%, 12/15/05 - 8/01/29)	15,015,813		15,000,000
Morgan Stanley & Co. At 1.11%, dated 6/26/03 due 7/31/03 (Collateralized by Corporate Obligations with principal amounts of $30,210,132, 9.01% - 9.07%, 6/20/31 - 10/25/33)	25,026,979		25,000,000
TOTAL REPURCHASE AGREEMENTS		246,753,000

TOTAL INVESTMENT PORTFOLIO - 104.0%		2,585,834,267
NET OTHER ASSETS - (4.0)%		(99,330,919)
NET ASSETS - 100%	$ 2,486,503,348

Total Cost for Income Tax Purposes $ 2,585,834,267

Legend

Additional information on each holding is as follows:

Security	Acquisition Date	Cost
GE Capital Assurance Co. 1.43%, 7/1/03	7/30/02	$ 5,000,000
General Motors Acceptance Corp. Mortgage Credit 1.82%, 7/1/03	6/2/03	$ 30,000,000
Goldman Sachs Group, Inc.: 1.35%, 7/7/03	3/3/03	$ 15,000,000
1.38%, 8/12/03	2/11/03	$ 30,000,000
1.52%, 7/1/03	3/19/03 - 5/27/03	$ 23,000,000
Jackson National Life Insurance Co. 1.42%, 7/1/03	3/31/03	$ 7,000,000
Metropolitan Life Insurance Co.: 1.47%, 8/1/03	2/24/03	$ 5,000,000
1.48%, 7/1/03	3/26/02	$ 10,000,000
Monumental Life Insurance Co.: 1.46%, 7/1/03	9/17/98	$ 5,000,000
1.49%, 7/1/03	3/12/99	$ 5,000,000
New York Life Insurance Co. 1.42%, 7/1/03	2/28/02 - 12/19/02	$ 30,000,000
Pacific Life Insurance Co. 1.36%, 9/11/03	3/10/03	$ 5,000,000
Transamerica Occidental Life Insurance Co. 1.48%, 8/1/03	4/28/00	$ 10,000,000

(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

Other Information

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

Money Market Portfolio

Fidelity Variable Insurance Products: Money Market Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including repurchase agreements of $246,753,000) - See accompanying schedule		$ 2,585,834,267
Cash		52,810
Receivable for fund shares sold		4,276,205
Interest receivable		2,891,780
Total assets		2,593,055,062

Liabilities
Payable for investments purchased on a delayed delivery basis	$ 100,000,000
Payable for fund shares redeemed	5,837,396
Distributions payable	12,584
Accrued management fee	414,848
Distribution fees payable	11,006
Other payables and accrued expenses	275,880
Total liabilities		106,551,714

Net Assets		$ 2,486,503,348
Net Assets consist of:
Paid in capital		$ 2,486,553,445
Accumulated net realized gain (loss) on investments		(50,097)
Net Assets		$ 2,486,503,348

Initial Class: Net Asset Value, offering price and redemption price per share ($2,428,485,521 ÷ 2,428,432,000 shares)		$ 1.00

Service Class: Net Asset Value, offering price and redemption price per share ($8,566,463 ÷ 8,564,720 shares)		$ 1.00

Service Class 2: Net Asset Value, offering price and redemption price per share ($49,451,364 ÷ 49,452,930 shares)		$ 1.00

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Interest		$ 18,093,265

Expenses
Management fee	$ 2,664,601
Transfer agent fees	907,063
Distribution fees	64,391
Accounting fees and expenses	122,124
Non-interested trustees' compensation	5,570
Custodian fees and expenses	26,876
Audit	27,503
Legal	2,868
Miscellaneous	91,885
Total expenses before reductions	3,912,881
Expense reductions	(225)	3,912,656
Net investment income		14,180,609
Net realized gain (loss) on investment securities		(50,097)
Net increase in net assets resulting from operations		$ 14,130,512

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

Semiannual Report

Fidelity Variable Insurance Products: Money Market Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 14,180,609	$ 46,410,100
Net realized gain (loss)	(50,097)	87,888
Net increase (decrease) in net assets resulting from operations	14,130,512	46,497,988
Distributions to shareholders from net investment income	(14,180,609)	(46,410,100)
Share transactions - net increase (decrease)	(274,135,942)	(39,187,088)
Total increase (decrease) in net assets	(274,186,039)	(39,099,200)

Net Assets
Beginning of period	2,760,689,387	2,799,788,587
End of period	$ 2,486,503,348	$ 2,760,689,387

Other Information:
Share Transactions at a net asset value of $1.00 per share	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
Sold	4,180,185,892	3,515,483	67,426,377
Reinvested	13,934,846	39,209	193,387
Redeemed	(4,470,656,035)	(3,004,806)	(65,770,295)
Net increase (decrease)	(276,535,297)	549,886	1,849,469

Share Transactions at a net asset value of $1.00 per share	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
Sold	6,692,494,433	8,278,271	505,243,362
Reinvested	45,541,480	125,174	705,271
Redeemed	(6,786,431,592)	(6,531,366)	(498,612,121)
Net increase (decrease)	(48,395,679)	1,872,079	7,336,512

Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2
From net investment income	$ 13,942,252	$ 39,209	$ 199,148

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2
From net investment income	$ 45,579,655	$ 125,174	$ 705,271

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

Money Market Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.005	.017	.041	.062	.050	.053
Distributions from net investment income	(.005)	(.017)	(.041)	(.062)	(.050)	(.053)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	.54%	1.69%	4.18%	6.30%	5.17%	5.46%
Ratios to Average Net Assets^E
Expenses before expense reductions	.30%^A	.29%	.28%	.33%	.27%	.30%
Expenses net of voluntary waivers, if any	.30%^A	.29%	.28%	.33%	.27%	.30%
Expenses net of all reductions	.30%^A	.29%	.28%	.33%	.27%	.30%
Net investment income	1.10%^A	1.68%	3.99%	6.18%	5.06%	5.33%
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,428,486	$ 2,705,069	$ 2,753,379	$ 2,233,342	$ 1,939,491	$ 1,507,489

^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.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^E
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.005	.016	.040	.031
Distributions from net investment income	(.005)	(.016)	(.040)	(.031)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	.49%	1.61%	4.10%	3.06%
Ratios to Average Net Assets^F
Expenses before expense reductions	.40%^A	.39%	.39%	.47%^A
Expenses net of voluntary waivers, if any	.40%^A	.39%	.39%	.45%^A
Expenses net of all reductions	.40%^A	.39%	.39%	.45%^A
Net investment income	.99%^A	1.58%	3.87%	6.28%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 8,566	$ 8,017	$ 6,143	$ 103

^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 For the period July 7, 2000 (commencement of sale of shares) to December 31, 2000.

^F 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 any voluntary 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.

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^E
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.004	.014	.039	.058
Distributions from net investment income	(.004)	(.014)	(.039)	(.058)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	.41%	1.45%	3.96%	5.89%
Ratios to Average Net Assets^F
Expenses before expense reductions	.55%^A	.54%	.55%	.96%^A
Expenses net of voluntary waivers, if any	.55%^A	.54%	.55%	.60%^A
Expenses net of all reductions	.55%^A	.54%	.55%	.60%^A
Net investment income	.84%^A	1.43%	3.71%	5.94%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 49,451	$ 47,604	$ 40,267	$ 108

^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 For the period January 12, 2000 (commencement of sale of shares) to December 31, 2000.

^F 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 any voluntary 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.

Money Market Portfolio

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

Money Market Portfolio (the fund) is a fund of Variable Insurance Products Fund. Asset Manager: Growth Portfolio and Investment Grade Bond Portfolio (the funds) are funds of Variable Insurance Products Fund II. Balanced Portfolio, Growth & Income Portfolio, Growth Opportunities Portfolio, and Mid Cap Portfolio (the funds) are funds of Variable Insurance Products Fund III. The Variable Insurance Products Fund, Variable Insurance Products Fund II, and Variable Insurance Products Fund III (the trusts) (referred to in this report as Fidelity Variable Insurance Products) are registered under the Investment Company Act of 1940, as amended (the 1940 Act), as open-end management investment companies organized as Massachusetts business trusts. Each fund is authorized to issue an unlimited number of shares. 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.

As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein, securities owned by the Money Market Portfolio are valued initially at cost and thereafter assume a constant amortization to maturity of any discount or premium.

Investment Transactions and Income. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 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 funds are 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. Mid Cap Portfolio estimates the components of distributions received from Real Estate Investment Trusts (REITs). Distributions received in excess of income are recorded as a reduction of cost of investments and/or realized gain. Interest income, which includes amortization of premium and accretion of discount on debt securities, as required, is accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Income Tax Information and Distributions to Shareholders. Each year the funds intend to qualify as regulated investment companies by distributing all of their taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements. Foreign taxes are provided for based on each fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. For the Money Market Portfolio, dividends are declared daily and paid monthly from net investment income and distributions from realized gains, if any, are recorded on the ex-dividend date. Distributions from net investment income and realized gains are recorded on the ex-dividend date for all other funds. 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. There were no significant book-to-tax differences for the Money Market Portfolio. Capital accounts within the financial statements are adjusted for permanent and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, prior period premium and discount on debt securities, defaulted bonds, market discount, non-taxable dividends, capital loss carryforwards, and losses deferred due to wash sales.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows for each fund:

	Cost for Federal Income Tax Purposes	Unrealized Appreciation	Unrealized Depreciation	Net Unrealized Appreciation/ (Depreciation)
Asset Manager: Growth	$ 326,768,089	$ 24,244,350	$ (29,639,631)	$ (5,395,281)
Balanced	309,556,253	27,291,077	(8,978,646)	18,312,431
Growth & Income	1,243,948,750	117,638,662	(118,598,245)	(959,583)
Growth Opportunities	631,932,504	87,821,917	(38,223,120)	49,598,797
Investment Grade Bond	2,410,180,481	92,904,764	(3,459,124)	89,445,640
Mid Cap	1,506,596,142	246,407,248	(64,209,142)	182,198,106

2. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the funds and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. Certain funds may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).

Delayed Delivery Transactions and When-Issued Securities. Each fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. During the time a delayed delivery sell is outstanding, the contract is marked to market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in each applicable fund's Schedule of Investments. Each fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, each fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. The payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in each applicable fund's Statement of Assets and Liabilities under the caption "Delayed delivery." Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic, or other factors.

Futures Contracts. Certain funds may use futures contracts to manage their 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. Futures contracts involve, to varying degrees, risk of loss in excess of the futures variation margin reflected in each applicable fund's Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in each applicable fund's 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 contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Operating Policies - continued

Swap Agreements. Certain funds may invest in swaps for the purpose of managing their exposure to interest rate, credit or market risk.

Interest rate swaps are agreements to exchange cash flows periodically based on a notional principal amount, for example, the exchange of fixed rate interest payments for floating rate interest payments. The net receivable or payable is accrued daily and is included in interest income in the accompanying Statement of Operations. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact each applicable fund.

Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying debt instrument in the event of a defined credit event (such as payment default or bankruptcy). Under the terms of the swap, one party acts as a "guarantor" receiving a periodic payment that is a fixed percentage applied to a notional principal amount. In return the party agrees to purchase the notional amount of the underlying instrument, at par, if a credit event occurs during the term of the swap. Each applicable fund may enter into credit default swaps in which the fund or its counterparty act as guarantors. By acting as the guarantor of a swap, the fund assumes the market and credit risk of the underlying instrument including liquidity and loss of value. Premiums paid to or by each applicable fund are accrued daily and included in interest income in the accompanying Statement of Operations.

Swaps are marked-to-market daily based on dealer-supplied valuations and changes in value are recorded as unrealized appreciation (depreciation). Gains or losses are realized upon early termination of the swap agreement. Risks may exceed amounts recognized on the Statement of Assets and Liabilities. These risks include changes in the returns of the underlying instruments, failure of the counterparties to perform under the contracts' terms and the possible lack of liquidity with respect to the swap agreements. Details of swap agreements open at period end are included in each applicable fund's Schedule of Investments under the caption "Swap Agreements".

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

Semiannual Report

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the funds with investment management related services for which the funds pay a monthly management fee.

For all funds except the Money Market Portfolio, the management fee is the sum of an individual fund fee rate applied to the average net assets of each fund and a group fee rate. The group fee rates differ for equity and fixed-income funds and are each based upon the average net assets of all the mutual funds advised by FMR. The group fee rates decrease as assets under management increase and increase as assets under management decrease. The annual individual fund fee rate is .30% of the fund's average net assets for Asset Manager: Growth, Growth Opportunities, Investment Grade Bond, and Mid Cap Portfolios, .20% for Growth & Income Portfolio, and .15% for Balanced Portfolio. The group fee rates averaged .28% for the equity funds and .13% for the fixed-income funds during the period.

For the Money Market Portfolio the management fee is calculated on the basis of a group fee rate plus a total income-based component. The group fee rate averaged .13% during the period. The total income-based component is calculated according to a graduated schedule providing for different rates based on the fund's gross annualized yield. The rate increases as the fund's gross yield increases. During the period the income-based portion of the management fee was $926,498 or an annualized rate of .07% of the fund's average net assets.

For the period each fund's total annualized management fee rate, expressed as a percentage of each fund's average net assets, was as follows:

Asset Manager: Growth	.58%	\|
Balanced	.43%
Growth & Income	.48%
Growth Opportunities	.58%
Investment Grade Bond	.44%
Mid Cap	.58%
Money Market	.20%

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
Asset Manager: Growth	$ 3,026	$ 5,658	$ 8,684
Balanced	$ 10,123	$ 25,716	$ 35,839
Growth & Income	$ 132,392	$ 212,171	$ 344,563
Growth Opportunities	$ 92,979	$ 53,804	$ 146,783
Investment Grade Bond	$ 330	$ 106,295	$ 106,625
Mid Cap	$ 186,362	$ 732,507	$ 918,869
Money Market	$ 4,047	$ 60,344	$ 64,391

For the period, each fund's transfer agent fees were equivalent to an annualized rate of .07% of average net assets.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, each class paid FIIOC the following amounts:

Asset Manager: Growth		\|
Initial Class	$ 102,049
Service Class	2,541
Service Class 2	3,133
	$ 107,723
Balanced
Initial Class	$ 84,879
Service Class	7,273
Service Class 2	8,110
	$ 100,262
Growth & Income
Initial Class	$ 226,035
Service Class	91,892
Service Class 2	61,884
	$ 379,811
Growth Opportunities
Initial Class	$ 142,032
Service Class	66,063
Service Class 2	19,807
	$ 227,902
Investment Grade Bond
Initial Class	$ 698,613
Service Class	268
Service Class 2	30,987
	$ 729,868
Mid Cap
Initial Class	$ 160,379
Service Class	130,648
Service Class 2	209,337
	$ 500,364
Money Market
Initial Class	$ 886,552
Service Class	2,907
Service Class 2	17,604
	$ 907,063

	Income Distributions
Asset Manager: Growth	$ 156,277
Balanced	$ 277,295
Growth & Income	$ 850,074
Growth Opportunities	$ 399,385
Investment Grade Bond	$ 1,912,498
Mid Cap	$ 1,140,049

Semiannual Report

4. Fees and Other Transactions with Affiliates - continued

5. Committed Line of Credit.

6. Security Lending.

7. Expense Reductions.

	Brokerage Service Arrangement	Custody expense reduction

Asset Manager: Growth	$ 22,376	$ 420
Balanced	7,641	350
Growth & Income	12,035	29
Growth Opportunities	71,798	46
Investment Grade Bond	-	1,129
Mid Cap	206,697	1,646
Money Market	-	225

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

8. Other Information.

At the end of the period, FMR or its affiliates and certain 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 %
Asset Manager: Growth	66%	-	-
Balanced	56%	1	29%
Growth & Income	27%	2	45%
Growth Opportunities	18%	1	51%
Investment Grade Bond	55%	-	-
Mid Cap	25%	2	45%
Money Market	54%	-	-

9. Transactions with Affiliated Companies.

An affiliated company is a company which the fund has ownership of at least 5% of the voting securities. Information regarding transactions with affiliated companies is included in "Other Information" at the end of each applicable fund's Schedule of Investments.

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.
Asset Manager: Growth, Balanced,
Growth & Income, Growth Opportunities,
and Mid Cap Portfolios

Fidelity Investments Money Management, Inc.
Asset Manager: Growth, Balanced,
Investment Grade Bond, and Money Market Portfolios

Fidelity Management & Research (U.K.) Inc.
Asset Manager: Growth, Balanced, Growth & Income,
Growth Opportunities, and Mid Cap Portfolios

Fidelity Management & Research (Far East) Inc.
Asset Manager: Growth, Balanced, Growth & Income,
Growth Opportunities, and Mid Cap Portfolios

Fidelity Investments Japan Limited
Asset Manager: Growth, Balanced, Growth & Income,
Growth Opportunities, and Mid Cap Portfolios

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Custodian

The Bank of New York, New York, NY
Investment Grade Bond and Money Market Portfolios

JPMorgan Chase Bank, New York, NY
Asset Manager: Growth, Balanced,
and Growth & Income Portfolios
Brown Brothers Harriman & Co., Boston, MA
Mid Cap Portfolio

Mellon Bank, N.A., Pittsburgh, PA
Growth Opportunities Portfolio

VIPGRP2-SANN-0803
1.790134.100

Fidelity® Variable Insurance Products
Service Class 2R

Contrafund^® Portfolio

Equity-Income Portfolio

Growth Portfolio

Semiannual Report

June 30, 2003

(2_fidelity_logos) (Registered_Trademark)

Contrafund Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Equity-Income Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Growth Portfolio	<Click Here>	Investment Summary
	<Click Here>	Investments
	<Click Here>	Financial Statements
Notes to Financial Statements	<Click Here>	Notes to the Financial Statements

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 Corp. or an affiliated company.

(Recycle graphic) This report is printed on recycled paper using soy-based inks.

Mutual fund shares are not deposits or obligations of, or guaranteed by, any depository institution. Shares are not insured by the FDIC,
Federal Reserve Board or any other agency, and are subject to investment risks, including possible loss of principal amount invested.

Neither the funds nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Fidelity Variable Insurance Products: Contrafund Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Colgate-Palmolive Co.	3.4
3M Co.	3.2
Berkshire Hathaway, Inc. Class A	3.0
Avon Products, Inc.	2.7
Lockheed Martin Corp.	2.6
	14.9
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Consumer Discretionary	17.5
Financials	15.6
Health Care	14.9
Industrials	12.7
Consumer Staples	10.4

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks and Equity Futures	94.4%
	Bonds	0.6%
	Short-Term Investments and Net Other Assets	5.0%

* Foreign investments

21.2%

Semiannual Report

Fidelity Variable Insurance Products: Contrafund Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 93.4%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 17.3%
Auto Components - 0.3%
BorgWarner, Inc.	26,200		$ 1,687,280
Gentex Corp. (a)	652,100		19,960,781
			21,648,061
Automobiles - 1.5%
Harley-Davidson, Inc.	78,200		3,117,052
Honda Motor Co. Ltd.	827,100		31,512,510
Nissan Motor Co. Ltd.	3,880,200		36,764,896
Toyota Motor Corp.	2,000,500		51,812,951
			123,207,409
Hotels, Restaurants & Leisure - 2.1%
Applebee's International, Inc.	29,000		911,470
Brinker International, Inc. (a)	106,500		3,836,130
CBRL Group, Inc.	115,700		4,496,102
Friendly Ice Cream Corp. (a)	204,600		1,293,072
GTECH Holdings Corp.	178,400		6,716,760
Harrah's Entertainment, Inc. (a)	18,600		748,464
Hilton Group PLC	1,148,200		3,496,816
International Game Technology	155,700		15,932,781
Kerzner International Ltd. (a)	44,900		1,446,229
Krispy Kreme Doughnuts, Inc. (a)	268,100		11,040,358
Mandalay Resort Group	43,400		1,382,290
McDonald's Corp.	146,000		3,220,760
MGM MIRAGE (a)	135,600		4,634,808
P.F. Chang's China Bistro, Inc. (a)	639,200		31,455,032
Panera Bread Co. Class A (a)	546,200		21,848,000
Red Robin Gourmet Burgers, Inc.	73,300		1,389,768
Ryan's Family Steak Houses, Inc. (a)	282,750		3,958,500
Stanley Leisure PLC	500,798		2,644,178
Starbucks Corp. (a)	901,900		22,114,588
Station Casinos, Inc. (a)	414,500		10,466,125
The Cheesecake Factory, Inc. (a)	295,700		10,612,673
Wendy's International, Inc.	55,500		1,607,835
William Hill PLC	2,963,263		14,002,761
Wynn Resorts Ltd.	23,000		406,870
			179,662,370
Household Durables - 1.3%
Blyth, Inc.	69,000		1,876,800
D.R. Horton, Inc.	1,516,370		42,609,997
Fortune Brands, Inc.	364,900		19,047,780
Garmin Ltd. (a)	290,709		11,590,568
Harman International Industries, Inc.	350,400		27,730,656
Mohawk Industries, Inc. (a)	151,820		8,430,565
			111,286,366
Internet & Catalog Retail - 2.8%
Amazon.com, Inc. (a)	132,100		4,820,329
eBay, Inc. (a)	741,400		77,239,052
InterActiveCorp (a)	3,766,542		149,042,067

	Shares		Value (Note 1)
NetFlix, Inc. (a)	235,600		$ 6,019,580
Overstock.com, Inc. (a)	117,300		1,702,023
			238,823,051
Leisure Equipment & Products - 0.4%
Leapfrog Enterprises, Inc. Class A	77,400		2,462,094
Mattel, Inc.	1,703,100		32,222,652
Mega Bloks, Inc. (a)	40,250		627,133
			35,311,879
Media - 3.0%
AOL Time Warner, Inc. (a)	286,080		4,603,027
British Sky Broadcasting Group PLC (BSkyB) (a)	258,300		2,870,832
British Sky Broadcasting Group PLC (BSkyB) sponsored ADR (a)	130,800		5,899,080
Comcast Corp. Class A (special) (a)	538,000		15,510,540
Cox Communications, Inc. Class A (a)	22,300		711,370
E.W. Scripps Co. Class A	439,500		38,992,440
Entercom Communications Corp. Class A (a)	119,600		5,861,596
Fox Entertainment Group, Inc. Class A (a)	1,123,600		32,337,208
Getty Images, Inc. (a)	218,500		9,024,050
Lee Enterprises, Inc.	53,700		2,015,361
Liberty Media Corp. Class A (a)	195,000		2,254,200
LIN TV Corp. Class A (a)	232,000		5,463,600
McGraw-Hill Companies, Inc.	62,700		3,887,400
Meredith Corp.	70,700		3,110,800
Pearson PLC sponsored ADR	381,800		3,665,280
Pixar (a)	336,700		20,484,828
Reed Elsevier PLC	655,100		5,467,526
SBS Broadcasting SA (a)	1,100		19,635
The New York Times Co. Class A	87,900		3,999,450
Tribune Co.	496,400		23,976,120
Viacom, Inc. Class B (non-vtg.) (a)	777,236		33,934,124
Vivendi Universal SA sponsored ADR	411,800		7,593,592
Washington Post Co. Class B	29,200		21,400,680
Westwood One, Inc. (a)	3,300		111,969
			253,194,708
Multiline Retail - 1.0%
99 Cents Only Stores (a)	1,539,666		52,841,337
Debenhams PLC	1,029,287		7,159,481
Dollar General Corp.	173,300		3,164,458
JCPenney Co., Inc.	450,900		7,597,665
Marks & Spencer Group PLC	2,173,800		11,360,575
Tuesday Morning Corp. (a)	57,600		1,514,880
			83,638,396
Specialty Retail - 3.9%
Abercrombie & Fitch Co. Class A (a)	21,700		616,497
Advance Auto Parts, Inc. (a)	374,200		22,788,780
AnnTaylor Stores Corp. (a)	205,200		5,940,540
AutoZone, Inc. (a)	52,500		3,988,425
Bed Bath & Beyond, Inc. (a)	1,618,000		62,794,580
Best Buy Co., Inc. (a)	21,700		953,064
CarMax, Inc. (a)	86,700		2,614,005
Common Stocks - continued
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - continued
Specialty Retail - continued
Chico's FAS, Inc. (a)	430,800		$ 9,068,340
Claire's Stores, Inc.	150,500		3,816,680
Dick's Sporting Goods, Inc.	25,400		931,672
Gap, Inc.	817,800		15,341,928
Guitar Center, Inc. (a)	90,900		2,636,100
Hennes & Mauritz AB (H&M) (B Shares)	229,200		5,282,297
Hot Topic, Inc. (a)	160,000		4,305,600
Lowe's Companies, Inc.	1,632,500		70,115,875
Pacific Sunwear of California, Inc. (a)	878,250		21,157,043
PETCO Animal Supplies, Inc. (a)	521,100		11,328,714
PETsMART, Inc.	886,700		14,781,289
Pier 1 Imports, Inc.	540,800		11,032,320
Ross Stores, Inc.	166,380		7,111,081
Select Comfort Corp. (a)	44,800		733,824
TJX Companies, Inc.	1,116,800		21,040,512
Urban Outfitters, Inc. (a)	62,900		2,258,110
Weight Watchers International, Inc. (a)	559,500		25,451,655
			326,088,931
Textiles Apparel & Luxury Goods - 1.0%
Burberry Ltd.	3,105,373		12,746,848
Coach, Inc. (a)	718,562		35,741,274
Columbia Sportswear Co. (a)	9,800		503,818
Delta Woodside Industries, Inc. (a)	22,175		63,199
Fossil, Inc. (a)	13,700		322,772
Gildan Activewear, Inc. Class A (sub. vtg.) (a)	54,600		1,437,072
K-Swiss, Inc. Class A	161,200		5,564,624
Liz Claiborne, Inc.	97,000		3,419,250
Puma AG	118,631		11,815,185
Quiksilver, Inc. (a)	468,700		7,728,863
			79,342,905
TOTAL CONSUMER DISCRETIONARY			1,452,204,076
CONSUMER STAPLES - 10.4%
Beverages - 1.0%
Anheuser-Busch Companies, Inc.	735,300		37,537,065
Cott Corp. (a)	251,100		5,192,282
Diageo PLC	1,145,123		12,527,640
Molson, Inc. Class A	456,200		12,351,045
PepsiCo, Inc.	160,110		7,124,895
The Coca-Cola Co.	204,800		9,504,768
			84,237,695
Food & Staples Retailing - 1.6%
Costco Wholesale Corp. (a)	118,800		4,348,080
George Weston Ltd.	49,260		3,742,927
Koninklijke Ahold NV sponsored ADR	74,400		622,728
Loblaw Companies Ltd.	52,990		2,437,587
Safeway PLC	679,698		2,896,881
Sysco Corp.	1,738,500		52,224,540

	Shares		Value (Note 1)
Tesco PLC	6,263,787		$ 22,730,759
Wal-Mart Stores, Inc.	29,400		1,577,898
Whole Foods Market, Inc. (a)	819,107		38,932,156
William Morrison Supermarkets PLC	2,039,734		6,203,521
			135,717,077
Food Products - 0.5%
Bunge Ltd.	19,800		566,280
Dean Foods Co. (a)	351,750		11,080,125
Hershey Foods Corp.	120,300		8,380,098
Horizon Organic Holding Corp. (a)	110,600		2,635,598
Kraft Foods, Inc. Class A	91,940		2,992,647
Saputo, Inc.	149,300		2,905,579
Wm. Wrigley Jr. Co.	283,700		15,952,451
			44,512,778
Household Products - 3.5%
Colgate-Palmolive Co.	4,934,730		285,967,594
Procter & Gamble Co.	40,400		3,602,872
			289,570,466
Personal Products - 3.8%
Avon Products, Inc.	3,682,028		229,022,142
Gillette Co.	2,822,300		89,918,478
			318,940,620
TOTAL CONSUMER STAPLES			872,978,636
ENERGY - 4.7%
Energy Equipment & Services - 0.5%
Baker Hughes, Inc.	64,500		2,165,265
BJ Services Co. (a)	69,100		2,581,576
Carbo Ceramics, Inc.	25,400		946,150
ENSCO International, Inc.	1,790		48,151
Halliburton Co.	368,100		8,466,300
National-Oilwell, Inc. (a)	63,672		1,400,784
Noble Corp. (a)	167,000		5,728,100
Schlumberger Ltd. (NY Shares)	18,700		889,559
Smith International, Inc. (a)	427,675		15,712,780
Willbros Group, Inc. (a)	57,500		597,425
			38,536,090
Oil & Gas - 4.2%
Apache Corp.	299,490		19,484,819
BP PLC sponsored ADR	410,232		17,237,949
Burlington Resources, Inc.	230,300		12,452,321
Canadian Natural Resources Ltd.	21,700		865,392
Chesapeake Energy Corp.	61,700		623,170
China Petroleum & Chemical Corp. sponsored ADR	175,840		4,246,536
EnCana Corp.	5,024,512		192,734,286
EOG Resources, Inc.	68,600		2,870,224
Evergreen Resources, Inc. (a)	14,500		787,495
Exxon Mobil Corp.	78,542		2,820,443
Murphy Oil Corp.	601,800		31,654,680
Noble Energy, Inc.	83,200		3,144,960
Common Stocks - continued
	Shares		Value (Note 1)
ENERGY - continued
Oil & Gas - continued
Occidental Petroleum Corp.	20,500		$ 687,775
Petro-Canada	289,300		11,582,303
PetroChina Co. Ltd. sponsored ADR	252,300		7,619,460
Pioneer Natural Resources Co. (a)	49,600		1,294,560
Pogo Producing Co.	171,700		7,340,175
Premcor, Inc. (a)	731,700		15,768,135
Progress Energy Ltd. (a)	112,700		827,816
Suncor Energy, Inc.	332,080		6,243,439
Talisman Energy, Inc.	152,370		6,952,630
Total SA sponsored ADR	47,300		3,585,340
Valero Energy Corp.	2,100		76,293
YUKOS Corp. sponsored ADR	21,700		1,207,605
			352,107,806
TOTAL ENERGY			390,643,896
FINANCIALS - 15.3%
Capital Markets - 0.1%
Merrill Lynch & Co., Inc.	122,200		5,704,296
UBS AG (NY Shares)	40,100		2,221,540
			7,925,836
Commercial Banks - 4.2%
Allied Irish Banks PLC	324,755		4,864,737
Australia & New Zealand Banking Group Ltd.	686,261		8,602,121
Bank of America Corp.	75,300		5,950,959
Bank of Ireland	2,080,540		25,177,060
Bank One Corp.	126,100		4,688,398
Charter One Financial, Inc.	37,800		1,178,604
Commerce Bancorp, Inc., New Jersey	1,122,617		41,649,091
Danske Bank AS	70,200		1,370,860
Fifth Third Bancorp	1,612,740		92,474,512
First Bancorp, Puerto Rico	5,400		148,230
First Community Bancorp, California	25,700		801,069
M&T Bank Corp.	527,600		44,434,472
National Australia Bank Ltd.	263,000		5,934,312
North Fork Bancorp, Inc., New York	701,200		23,882,872
Popular, Inc.	45,000		1,736,550
Royal Bank of Canada	53,300		2,269,145
Royal Bank of Scotland Group PLC	2,035,166		57,264,585
SouthTrust Corp.	805,900		21,920,480
Texas Regional Bancshares, Inc. Class A	91,490		3,174,703
UCBH Holdings, Inc.	220,330		6,319,064
UnionBanCal Corp.	1		41
Valley National Bancorp	7,980		210,273
Wells Fargo & Co.	21,300		1,073,520
			355,125,658
Consumer Finance - 1.2%
MBNA Corp.	212,400		4,426,416

	Shares		Value (Note 1)
SLM Corp.	2,415,300		$ 94,607,301
WFS Financial, Inc. (a)	12,600		422,226
			99,455,943
Diversified Financial Services - 0.7%
CIT Group, Inc.	216,500		5,336,725
Citigroup, Inc.	249,300		10,670,040
Moody's Corp.	844,300		44,503,053
			60,509,818
Insurance - 7.8%
ACE Ltd.	233,200		7,996,428
AFLAC, Inc.	396,500		12,192,375
Allstate Corp.	698,600		24,905,090
American International Group, Inc.	1,469,114		81,065,711
Aon Corp.	349,000		8,403,920
Arch Capital Group Ltd. (a)	175,100		6,081,223
Berkshire Hathaway, Inc. Class A (a)	3,456		250,560,000
Brit Insurance Holdings PLC (a)	2,520,400		3,285,167
Brown & Brown, Inc.	44,500		1,446,250
Cincinnati Financial Corp.	97,400		3,612,566
Everest Re Group Ltd.	682,180		52,186,770
Fidelity National Financial, Inc.	27,100		833,596
HCC Insurance Holdings, Inc.	155,700		4,604,049
IPC Holdings Ltd.	151,600		5,078,600
Markel Corp. (a)	36,750		9,408,000
MetLife, Inc.	75,700		2,143,824
Montpelier Re Holdings Ltd.	1,120,400		35,404,640
Old Republic International Corp.	86,300		2,957,501
PartnerRe Ltd.	415,400		21,231,094
Progressive Corp.	125,200		9,152,120
RenaissanceRe Holdings Ltd.	683,965		31,134,087
SAFECO Corp.	478,500		16,881,480
StanCorp Financial Group, Inc.	25,800		1,347,276
USI Holdings Corp.	444,487		5,227,167
W.R. Berkley Corp.	71,400		3,762,780
White Mountains Insurance Group Ltd.	7,400		2,923,000
Willis Group Holdings Ltd.	847,400		26,057,550
XL Capital Ltd. Class A	313,400		26,012,200
			655,894,464
Real Estate - 0.1%
American Financial Realty Trust (SBI)	46,700		696,297
Corrections Corp. of America (a)	893		22,620
Equity Residential (SBI)	2,100		54,495
General Growth Properties, Inc.	10,000		624,400
ResortQuest International, Inc. (a)	192,100		847,161
Simon Property Group, Inc.	59,100		2,306,673
			4,551,646
Thrifts & Mortgage Finance - 1.2%
Astoria Financial Corp.	43,000		1,200,990
Doral Financial Corp.	500,450		22,345,093
Golden West Financial Corp., Delaware	879,700		70,384,797
NetBank, Inc.	8,300		109,228
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Thrifts & Mortgage Finance - continued
New York Community Bancorp, Inc.	221,700		$ 6,449,253
W Holding Co., Inc.	171,500		2,901,780
			103,391,141
TOTAL FINANCIALS			1,286,854,506
HEALTH CARE - 14.9%
Biotechnology - 1.7%
Amgen, Inc. (a)	118,400		7,866,496
Amylin Pharmaceuticals, Inc. (a)	718,400		15,725,776
Celgene Corp. (a)	9,700		294,880
Charles River Laboratories International, Inc. (a)	2,100		67,578
Gen-Probe, Inc. (a)	50,400		2,059,848
Genentech, Inc. (a)	737,200		53,166,864
Gilead Sciences, Inc. (a)	813,880		45,235,450
ICOS Corp. (a)	5,400		198,450
IDEXX Laboratories, Inc. (a)	180,650		6,059,001
MedImmune, Inc. (a)	203,900		7,415,843
Neurocrine Biosciences, Inc. (a)	102,100		5,098,874
			143,189,060
Health Care Equipment & Supplies - 6.0%
Advanced Medical Optics, Inc. (a)	64,500		1,099,725
Advanced Neuromodulation Systems, Inc. (a)	139,700		7,232,269
Alcon, Inc.	1,099,000		50,224,300
Becton, Dickinson & Co.	86,100		3,344,985
Bio-Rad Laboratories, Inc. Class A (a)	115,500		6,392,925
Biomet, Inc.	587,800		16,846,348
Biosite, Inc. (a)	104,600		5,031,260
Boston Scientific Corp. (a)	414,100		25,301,510
C.R. Bard, Inc.	56,500		4,029,015
Centerpulse AG (Reg.) (a)	59,934		16,167,809
Cooper Companies, Inc.	43,300		1,505,541
CTI Molecular Imaging, Inc.	630,300		11,918,973
DENTSPLY International, Inc.	1,351,662		55,282,976
Edwards Lifesciences Corp. (a)	107,900		3,467,906
Guidant Corp.	62,100		2,756,619
Medtronic, Inc.	453,600		21,759,192
Mentor Corp.	120,000		2,325,600
Nobel Biocare Holding AG (Switzerland)	61,120		4,091,403
ResMed, Inc. (a)	28,300		1,109,360
Smith & Nephew PLC	10,737,553		61,891,898
St. Jude Medical, Inc. (a)	292,676		16,828,870
Stryker Corp.	380,900		26,423,033
Synthes-Stratec, Inc.	3,629		2,613,245
Varian Medical Systems, Inc. (a)	495,600		28,531,692

	Shares		Value (Note 1)
Wilson Greatbatch Technologies, Inc. (a)	133,000		$ 4,801,300
Zimmer Holdings, Inc. (a)	2,723,312		122,685,206
			503,662,960
Health Care Providers & Services - 2.7%
Advisory Board Co. (a)	133,800		5,421,576
Aetna, Inc.	301,500		18,150,300
American Healthways, Inc. (a)	63,500		2,293,620
Caremark Rx, Inc. (a)	314,964		8,088,276
Health Management Associates, Inc. Class A	1,287,090		23,746,811
ICON PLC sponsored ADR (a)	2,000		63,640
IMPAC Medical Systems, Inc. (a)	139,762		2,918,231
Odyssey Healthcare, Inc. (a)	174,550		6,458,350
Patterson Dental Co. (a)	1,654,000		75,058,520
PDI, Inc. (a)	9,500		96,520
UnitedHealth Group, Inc.	1,303,800		65,515,950
VistaCare, Inc. Class A	146,200		3,554,122
WebMD Corp. (a)	1,322,900		14,327,007
WellPoint Health Networks, Inc. (a)	25,200		2,124,360
			227,817,283
Pharmaceuticals - 4.5%
Altana AG	388,877		24,599,549
AstraZeneca PLC sponsored ADR	237,000		9,662,490
Barr Laboratories, Inc. (a)	70,400		4,611,200
Biovail Corp. (a)	19,290		900,811
Bristol-Myers Squibb Co.	108,000		2,932,200
Forest Laboratories, Inc. (a)	2,200		120,450
IVAX Corp. (a)	65,000		1,160,250
Johnson & Johnson	1,606,050		83,032,785
Kyorin Pharmaceutical Co. Ltd.	27,000		370,407
Merck & Co., Inc.	793,300		48,034,315
Novartis AG sponsored ADR	820,200		32,652,162
Novo Nordisk AS Series B	624,200		21,911,768
Pfizer, Inc.	1,717,065		58,637,770
Pharmaceutical Resources, Inc. (a)	76,900		3,741,954
Roche Holding AG (participation certificate)	158,060		12,428,860
Schering AG	74,900		3,672,093
Stada Arzneimittel AG	70,434		4,492,813
Teva Pharmaceutical Industries Ltd. sponsored ADR	1,111,900		63,300,467
Wyeth	119,200		5,429,560
			381,691,904
TOTAL HEALTH CARE			1,256,361,207
INDUSTRIALS - 12.7%
Aerospace & Defense - 3.1%
Bombardier, Inc. Class B (sub. vtg.)	4,092,700		13,877,162
Honeywell International, Inc.	21,700		582,645
L-3 Communications Holdings, Inc. (a)	200		8,698
Lockheed Martin Corp.	4,564,540		217,135,168
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Aerospace & Defense - continued
United Defense Industries, Inc. (a)	251,200		$ 6,516,128
Veridian Corp.	664,800		23,194,872
			261,314,673
Air Freight & Logistics - 0.7%
C.H. Robinson Worldwide, Inc.	1,058,061		37,624,649
FedEx Corp.	64,700		4,013,341
United Parcel Service, Inc. Class B	327,000		20,829,900
			62,467,890
Airlines - 2.2%
Continental Airlines, Inc. Class B (a)	357,900		5,357,763
JetBlue Airways Corp. (a)	1,073,536		45,399,837
Ryanair Holdings PLC:
warrants (UBS Warrant Programme) 2/25/04 (a)	192,400		1,388,989
sponsored ADR (a)	2,679,857		120,325,579
Southwest Airlines Co.	539,500		9,279,400
			181,751,568
Commercial Services & Supplies - 1.3%
Apollo Group, Inc. Class A (a)	670,800		41,428,608
Aramark Corp. Class B (a)	613,950		13,764,759
Avery Dennison Corp.	120,500		6,049,100
Carlisle Holdings Ltd. (non-vtg.) (a)	205,500		678,150
Central Parking Corp.	57,700		713,172
Cintas Corp.	43,897		1,555,710
Corinthian Colleges, Inc. (a)	383,141		18,609,158
Corporate Executive Board Co. (a)	23,400		948,402
Dun & Bradstreet Corp. (a)	44,700		1,837,170
Education Management Corp. (a)	86,700		4,610,706
H&R Block, Inc.	273,300		11,820,225
Hewitt Associates, Inc. Class A	32,600		767,730
Hudson Highland Group, Inc. (a)	9,675		183,922
Kroll, Inc. (a)	75,700		2,048,442
Monster Worldwide, Inc.	349,700		6,899,581
Robert Half International, Inc. (a)	21,700		410,998
Stericycle, Inc. (a)	21,600		831,168
			113,157,001
Construction & Engineering - 0.3%
Granite Construction, Inc.	31,900		611,204
Jacobs Engineering Group, Inc. (a)	554,020		23,351,943
			23,963,147
Electrical Equipment - 0.1%
American Power Conversion Corp.	308,600		4,811,074
Cooper Industries Ltd. Class A	38,100		1,573,530
Rockwell Automation, Inc.	64,500		1,537,680
			7,922,284
Industrial Conglomerates - 3.4%
3M Co.	2,103,610		271,323,618

	Shares		Value (Note 1)
Tomkins PLC	813,300		$ 3,055,723
Tyco International Ltd.	491,900		9,336,262
			283,715,603
Machinery - 1.3%
CUNO, Inc. (a)	1,000		36,120
Danaher Corp.	962,122		65,472,402
Dionex Corp. (a)	14,600		580,350
Donaldson Co., Inc.	141,200		6,276,340
ESCO Technologies, Inc. (a)	56,900		2,503,600
PACCAR, Inc.	451,370		30,494,557
Pall Corp.	90,700		2,040,750
Wabash National Corp. (a)	167,500		2,350,025
			109,754,144
Marine - 0.0%
CP Ships Ltd.	39,000		649,614
Road & Rail - 0.3%
Canadian National Railway Co.	84,150		4,063,275
Canadian Pacific Railway Ltd.	59,050		1,327,946
Heartland Express, Inc. (a)	411,900		9,164,775
Knight Transportation, Inc. (a)	182,100		4,534,290
Landstar System, Inc. (a)	86,516		5,437,531
Norfolk Southern Corp.	2,100		40,320
P.A.M. Transportation Services, Inc. (a)	21,398		537,518
			25,105,655
Trading Companies & Distributors - 0.0%
Fastenal Co.	15,912		540,053
MSC Industrial Direct Co., Inc. Class A (a)	36,400		651,560
			1,191,613
TOTAL INDUSTRIALS			1,070,993,192
INFORMATION TECHNOLOGY - 10.0%
Communications Equipment - 1.0%
Adtran, Inc. (a)	63,530		3,258,454
Avocent Corp. (a)	204,800		6,129,664
Cisco Systems, Inc. (a)	21,400		357,166
Comverse Technology, Inc. (a)	450,500		6,771,015
NetScreen Technologies, Inc. (a)	732,400		16,515,620
Nokia Corp. sponsored ADR	2,100		34,503
QUALCOMM, Inc.	113,800		4,068,350
SafeNet, Inc. (a)	10,600		296,588
Scientific-Atlanta, Inc.	760,300		18,125,552
Sycamore Networks, Inc. (a)	1,025,100		3,926,133
Telefonaktiebolaget LM Ericsson ADR (a)	1,132,609		12,039,634
UTStarcom, Inc. (a)	231,100		8,220,227
			79,742,906
Computers & Peripherals - 1.0%
Apple Computer, Inc. (a)	557,500		10,659,400
ATI Technologies, Inc. (a)	260,500		2,589,924
Avid Technology, Inc. (a)	65,100		2,283,057
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Computers & Peripherals - continued
Cray, Inc. (a)	133,500		$ 1,054,650
Dell Computer Corp. (a)	310,700		9,929,972
Electronics for Imaging, Inc. (a)	204,479		4,148,879
Hutchinson Technology, Inc. (a)	37,000		1,216,930
Lexmark International, Inc. Class A (a)	71,300		5,045,901
Logitech International SA (Reg.) (a)	55,452		2,084,785
M-Systems Flash Disk Pioneers Ltd. (a)	300,000		3,339,000
SanDisk Corp. (a)	21,900		883,665
Seagate Technology	1,198,700		21,157,055
Storage Technology Corp. (a)	106,300		2,736,162
Western Digital Corp. (a)	1,999,000		20,589,700
			87,719,080
Electronic Equipment & Instruments - 0.6%
CDW Corp. (a)	10,800		494,640
Flextronics International Ltd. (a)	573,300		5,956,587
Flir Systems, Inc. (a)	791,000		23,848,650
Lexar Media, Inc. (a)	131,200		1,251,648
National Instruments Corp. (a)	22,700		857,606
Roper Industries, Inc.	12,700		472,440
Symbol Technologies, Inc.	1,151,900		14,986,219
Thermo Electron Corp. (a)	93,200		1,959,064
Waters Corp. (a)	87,000		2,534,310
			52,361,164
Internet Software & Services - 1.0%
DoubleClick, Inc. (a)	92,432		854,996
Expedia, Inc. (a)	69,900		5,338,962
FindWhat.com (a)	91,900		1,740,586
Open Text Corp. (a)	37,800		1,069,102
United Online, Inc. (a)	139,600		3,537,464
WebEx Communications, Inc. (a)	331,630		4,626,239
webMethods, Inc. (a)	185,200		1,505,676
Yahoo!, Inc. (a)	1,937,586		63,475,317
			82,148,342
IT Services - 2.1%
Affiliated Computer Services, Inc. Class A (a)	283,400		12,959,882
Anteon International Corp. (a)	439,900		12,277,609
CheckFree Corp. (a)	2,200		61,248
Cognizant Technology Solutions Corp. Class A (a)	549,080		13,375,589
First Data Corp.	2,666,000		110,479,040
Iron Mountain, Inc. (a)	365,700		13,563,813
ManTech International Corp. Class A	107,100		2,054,178
Paychex, Inc.	118,700		3,479,097
SRA International, Inc. Class A (a)	215,200		6,886,400
The BISYS Group, Inc. (a)	151,400		2,781,218
			177,918,074
Office Electronics - 0.3%
Canon, Inc.	180,600		8,244,390

	Shares		Value (Note 1)
Xerox Corp. (a)	620,500		$ 6,571,095
Zebra Technologies Corp. Class A (a)	122,920		9,242,355
			24,057,840
Semiconductors & Semiconductor Equipment - 2.6%
Analog Devices, Inc. (a)	1,142,300		39,774,886
ARM Holdings PLC sponsored ADR (a)	21,700		73,997
Broadcom Corp. Class A (a)	263,100		6,553,821
Cabot Microelectronics Corp. (a)	21,500		1,085,105
Cree, Inc. (a)	169,100		2,752,948
Infineon Technologies AG sponsored ADR (a)	202,300		1,940,057
Integrated Circuit Systems, Inc. (a)	436,400		13,716,052
Intersil Corp. Class A (a)	339,100		9,023,451
KLA-Tencor Corp. (a)	308,500		14,342,165
Lam Research Corp. (a)	359,300		6,542,853
Linear Technology Corp.	419,500		13,512,095
Marvell Technology Group Ltd. (a)	380,800		13,088,096
Maxim Integrated Products, Inc.	200		6,838
Microchip Technology, Inc.	200		4,926
NVIDIA Corp. (a)	194,736		4,480,875
O2Micro International Ltd. (a)	118,200		1,904,202
Omnivision Technologies, Inc. (a)	65,900		2,056,080
Samsung Electronics Co. Ltd.	188,700		56,057,317
Silicon Laboratories, Inc. (a)	461,490		12,294,094
STMicroelectronics NV (NY Shares)	73,000		1,517,670
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	501,100		5,051,088
Teradyne, Inc. (a)	327,900		5,675,949
Texas Instruments, Inc.	10,800		190,080
Xilinx, Inc. (a)	391,700		9,913,927
			221,558,572
Software - 1.4%
Adobe Systems, Inc.	1,056,309		33,875,830
Agile Software Corp. (a)	31,100		300,115
Altiris, Inc. (a)	338,633		6,789,592
Amdocs Ltd. (a)	139,300		3,343,200
Autodesk, Inc.	64,800		1,047,168
BEA Systems, Inc. (a)	479,747		5,210,052
Business Objects SA sponsored ADR (a)	107,700		2,364,015
Citrix Systems, Inc. (a)	372,600		7,586,136
Computer Associates International, Inc.	65,100		1,450,428
Electronic Arts, Inc. (a)	54,200		4,010,258
Hyperion Solutions Corp. (a)	74,143		2,503,068
Intuit, Inc. (a)	21,700		966,301
Kronos, Inc. (a)	18,900		960,309
Mercury Interactive Corp. (a)	362,329		13,989,523
Network Associates, Inc. (a)	275,100		3,488,268
Red Hat, Inc. (a)	173,700		1,314,909
Symantec Corp. (a)	168,485		7,389,752
Synopsys, Inc. (a)	110,221		6,817,169
Verint Systems, Inc. (a)	93,900		2,385,999
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Software - continued
Verisity Ltd. (a)	31,200		$ 372,528
VERITAS Software Corp. (a)	416,752		11,948,280
			118,112,900
TOTAL INFORMATION TECHNOLOGY			843,618,878
MATERIALS - 5.8%
Chemicals - 1.1%
Cytec Industries, Inc. (a)	127,600		4,312,880
Dow Chemical Co.	54,000		1,671,840
Ecolab, Inc.	1,628,000		41,676,800
Methanex Corp.	1,407,770		15,009,389
Praxair, Inc.	149,100		8,960,910
Sigma Aldrich Corp.	13,600		736,848
The Scotts Co. Class A (a)	164,500		8,142,750
Valspar Corp.	337,700		14,257,694
			94,769,111
Construction Materials - 0.1%
Florida Rock Industries, Inc.	100,800		4,161,024
Containers & Packaging - 0.0%
Ball Corp.	102		4,642
Peak International Ltd. (a)	200,000		889,800
			894,442
Metals & Mining - 4.5%
Aber Diamond Corp. (a)	322,550		6,609,906
Agnico-Eagle Mines Ltd.	255,220		2,944,555
Alcoa, Inc.	95,400		2,432,700
Anglo American PLC ADR	1,078,800		16,570,368
Anglogold Ltd. sponsored ADR	141,800		4,523,420
BHP Billiton PLC	316,879		1,673,098
Companhia Vale do Rio Doce sponsored ADR	159,300		4,724,838
Compania de Minas Buenaventura SA sponsored ADR	750,900		22,594,581
Freeport-McMoRan Copper & Gold, Inc. Class B	1,476,292		36,169,154
Gold Fields Ltd.	2,369,872		28,397,249
Goldcorp, Inc.	4,033,560		48,481,727
Harmony Gold Mining Co. Ltd.	394,694		5,200,984
Impala Platinum Holdings Ltd.	108,700		6,485,645
Ivanhoe Mines Ltd. (a)	324,400		803,900
JSC MMC 'Norilsk Nickel' sponsored ADR	86,100		2,981,213
Kinross Gold Corp. (a)	1,575,888		10,628,299
Kumba Resources Ltd.	1,657,635		6,674,891
Liquidmetal Technologies (a)	365,500		1,875,015
Meridian Gold, Inc. (a)	318,880		3,643,532
Newcrest Mining Ltd.	745,700		3,842,337
Newmont Mining Corp. Holding Co.	2,818,501		91,488,542
Newmont Mining Corp. Holding Co. Chess Depository Interests	1,309,031		4,364,404
Pechiney SA (a)	55,120		1,983,921

	Shares		Value (Note 1)
Rio Tinto PLC (Reg.)	3,227,300		$ 61,762,474
SouthernEra Resources Ltd. (a)	502,800		1,973,447
			378,830,200
Paper & Forest Products - 0.1%
Sappi Ltd.	782,013		9,446,926
TOTAL MATERIALS			488,101,703
TELECOMMUNICATION SERVICES - 1.6%
Diversified Telecommunication Services - 0.2%
CenturyTel, Inc.	128,500		4,478,225
Koninklijke KPN NV (a)	366,600		2,604,377
Sprint Corp. - FON Group	216,800		3,121,920
Swisscom AG sponsored ADR	169,400		4,800,796
Telecom Italia Spa sponsored ADR	27,100		2,456,344
			17,461,662
Wireless Telecommunication Services - 1.4%
AT&T Wireless Services, Inc. (a)	303,600		2,492,556
Mobile TeleSystems OJSC sponsored ADR (a)	155,300		9,162,700
Nextel Communications, Inc. Class A (a)	2,718,900		49,157,712
Nextel Partners, Inc. Class A (a)	206,300		1,505,990
Sprint Corp. - PCS Group Series 1 (a)	216,800		1,246,600
Vimpel Communications sponsored ADR (a)	470,100		21,831,444
Vodafone Group PLC sponsored ADR	1,644,300		32,310,495
			117,707,497
TOTAL TELECOMMUNICATION SERVICES			135,169,159
UTILITIES - 0.7%
Electric Utilities - 0.6%
Ameren Corp.	86,700		3,823,470
Cinergy Corp.	108,400		3,988,036
Dominion Resources, Inc.	86,500		5,559,355
Entergy Corp.	242,680		12,808,650
FirstEnergy Corp.	65,000		2,499,250
FPL Group, Inc.	65,000		4,345,250
PG&E Corp. (a)	324,300		6,858,945
Southern Co.	230,840		7,192,974
			47,075,930
Multi-Utilities & Unregulated Power - 0.1%
AES Corp. (a)	117,769		747,833
Equitable Resources, Inc.	104,000		4,236,960
SCANA Corp.	110,700		3,794,796
			8,779,589
TOTAL UTILITIES			55,855,519
TOTAL COMMON STOCKS (Cost $6,431,692,168)		7,852,780,772
Convertible Preferred Stocks - 0.3%
	Shares		Value (Note 1)
FINANCIALS - 0.3%
Diversified Financial Services - 0.2%
Xerox Capital Trust II 7.5% (c)	246,100		$ 16,772,699
Insurance - 0.1%
St. Paul Companies, Inc. 9%	89,300		6,217,513
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $20,464,028)		22,990,212

Convertible Bonds - 0.5%
	Principal Amount
CONSUMER DISCRETIONARY - 0.2%
Internet & Catalog Retail - 0.1%
Amazon.com, Inc. 4.75% 2/1/09	$ 8,000,000		7,620,000
Media - 0.1%
Interpublic Group of Companies, Inc.:
1.8% 9/16/04	1,130,000		1,076,382
1.87% 6/1/06	1,250,000		1,090,625
4.5% 3/15/23 (c)	760,000		1,064,912
			3,231,919
TOTAL CONSUMER DISCRETIONARY			10,851,919
INFORMATION TECHNOLOGY - 0.0%
Communications Equipment - 0.0%
Brocade Communications Systems, Inc. 2% 1/1/07	1,160,000		972,950
Semiconductors & Semiconductor Equipment - 0.0%
TriQuint Semiconductor, Inc. 4% 3/1/07	1,300,000		1,108,250
TOTAL INFORMATION TECHNOLOGY			2,081,200
MATERIALS - 0.2%
Metals & Mining - 0.2%
Freeport-McMoRan Copper & Gold, Inc.:
8.25% 1/31/06 (c)	5,025,000		8,982,188
8.25% 1/31/06	4,470,000		7,990,125
			16,972,313
TELECOMMUNICATION SERVICES - 0.1%
Wireless Telecommunication Services - 0.1%
Nextel Communications, Inc. 5.25% 1/15/10	9,550,000		9,000,875
TOTAL CONVERTIBLE BONDS (Cost $28,748,785)		38,906,307
U.S. Treasury Obligations - 0.2%
	Principal Amount		Value (Note 1)
U.S. Treasury Bills, yield at date of purchase 0.79% to 1.11% 7/3/03 to 9/18/03 (d)	$ 3,800,000		$ 3,796,673
U.S. Treasury Bonds 6.875% 8/15/25	8,800,000		11,594,686
TOTAL U.S. TREASURY OBLIGATIONS (Cost $13,232,654)		15,391,359
Floating Rate Loans - 0.0%

CONSUMER DISCRETIONARY - 0.0%
Media - 0.0%
Mediacom Broadband LLC/Mediacom Broadband Corp. Tranche B term loan 3.8% 9/30/10 (e)	2,000,000		2,010,000
TOTAL FLOATING RATE LOANS (Cost $1,934,568)		2,010,000

Money Market Funds - 6.8%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	486,909,396		486,909,396
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	84,118,200		84,118,200
TOTAL MONEY MARKET FUNDS (Cost $571,027,596)		571,027,596
TOTAL INVESTMENT PORTFOLIO - 101.2% (Cost $7,067,099,799)			8,503,106,246
NET OTHER ASSETS - (1.2)%			(96,884,719)
NET ASSETS - 100%		$ 8,406,221,527

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Gain/(Loss)
Equity Index Contracts
246 S&P 500 Index Contracts	Sept. 2003	$ 59,857,950	$ (1,388,839)

The face value of futures purchased as a percentage of net assets - 0.7%

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) 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 $3,796,673.

(e) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $3,061,526,320 and $2,664,799,946.

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

United States of America	78.8%
United Kingdom	4.5
Canada	3.9
Bermuda	2.4
Ireland	1.8
Japan	1.6
Switzerland	1.5
Others (individually less than 1%)	5.5
	100.0%

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $1,338,657,000 of which $675,098,000 and $663,559,000 will expire on December 31, 2009 and 2010, respectively.

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

Semiannual Report

Fidelity Variable Insurance Products: Contrafund Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $80,539,062) (cost $7,067,099,799) - See accompanying schedule		$ 8,503,106,246
Cash		1,058,727
Receivable for investments sold		25,369,843
Receivable for fund shares sold		10,772,982
Dividends receivable		5,362,206
Interest receivable		1,464,214
Redemption fees receivable		10
Other receivables		853,387
Total assets		8,547,987,615

Liabilities
Payable for investments purchased	$ 50,125,841
Payable for fund shares redeemed	2,859,237
Accrued management fee	4,074,702
Distribution fees payable	239,992
Other payables and accrued expenses	348,116
Collateral on securities loaned, at value	84,118,200
Total liabilities		141,766,088

Net Assets		$ 8,406,221,527
Net Assets consist of:
Paid in capital		$ 8,435,214,293
Undistributed net investment income		15,048,725
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(1,478,734,376)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		1,434,692,885
Net Assets		$ 8,406,221,527

Initial Class: Net Asset Value, offering price and redemption price per share ($6,424,372,629÷ 325,624,879 shares)		$ 19.73

Service Class: Net Asset Value, offering price and redemption price per share ($1,347,877,754 ÷ 68,493,767 shares)		$ 19.68

Service Class 2: Net Asset Value, offering price and redemption price per share ($633,353,070 ÷ 32,347,930 shares)		$ 19.58

Service Class 2R: Net Asset Value, offering price and redemption price per share ($618,074 ÷ 31,607 shares)		$ 19.55

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 36,836,397
Interest		5,533,346
Security lending		759,460
Total income		43,129,203

Expenses
Management fee	$ 22,361,475
Transfer agent fees	2,650,443
Distribution fees	1,247,035
Accounting and security lending fees	398,677
Non-interested trustees' compensation	15,392
Appreciation in deferred trustee compensation account	966
Custodian fees and expenses	299,976
Registration fees	3,178
Audit	41,644
Legal	10,691
Miscellaneous	147,895
Total expenses before reductions	27,177,372
Expense reductions	(1,224,543)	25,952,829
Net investment income (loss)		17,176,374
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(116,264,908)
Foreign currency transactions	(78,331)
Futures contracts	6,248,258
Total net realized gain (loss)		(110,094,981)
Change in net unrealized appreciation (depreciation) on: Investment securities	814,300,916
Assets and liabilities in foreign currencies	50,384
Futures contracts	(163,699)
Total change in net unrealized appreciation (depreciation)		814,187,601
Net gain (loss)		704,092,620
Net increase (decrease) in net assets resulting from operations		$ 721,268,994

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

Semiannual Report

Fidelity Variable Insurance Products: Contrafund Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 17,176,374	$ 38,078,167
Net realized gain (loss)	(110,094,981)	(637,510,720)
Change in net unrealized appreciation (depreciation)	814,187,601	(207,088,852)
Net increase (decrease) in net assets resulting from operations	721,268,994	(806,521,405)
Distributions to shareholders from net investment income	(35,507,037)	(65,347,191)
Share transactions - net increase (decrease)	140,781,743	46,140,066
Redemption fees	559	49
Total increase (decrease) in net assets	826,544,259	(825,728,481)

Net Assets
Beginning of period	7,579,677,268	8,405,405,749
End of period (including undistributed net investment income of $15,048,725 and undistributed net investment income of $34,847,840, respectively)	$ 8,406,221,527	$ 7,579,677,268

Other Information:
Share Transactions	Six months ended June 30, 2003 - (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
Shares Sold	18,993,595	7,416,680	10,866,958	13,395
Reinvested	1,718,846	269,021	92,062	161
Redeemed	(24,166,864)	(4,802,601)	(3,071,719)	(27,045)
Net increase (decrease)	(3,454,423)	2,883,100	7,887,301	(13,489)

Dollars Sold	$ 349,932,388	$ 135,860,035	$ 197,878,054	$ 248,534
Reinvested	29,357,892	4,584,117	1,562,295	2,733
Redeemed	(436,575,900)	(86,262,835)	(55,332,079)	(473,491)
Net increase (decrease)	$ (57,285,620)	$ 54,181,317	$ 144,108,270	$ (222,224)

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
Shares Sold	56,833,322	17,332,750	16,787,773	45,893
Reinvested	2,820,242	432,111	91,835	-
Redeemed	(77,031,143)	(12,025,142)	(4,005,858)	(797)
Net increase (decrease)	(17,377,579)	5,739,719	12,873,750	45,096

Dollars Sold	$ 1,102,958,554	$ 329,197,923	$ 318,907,897	$ 843,220
Reinvested	55,135,751	8,426,160	1,785,280	-
Redeemed	(1,469,720,893)	(226,436,407)	(74,942,997)	(14,422)
Net increase (decrease)	$ (311,626,588)	$ 111,187,676	$ 245,750,180	$ 828,798

Distributions	Six months ended June 30, 2003 - (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
From net investment income	$ 29,357,892	$ 4,584,117	$ 1,562,295	$ 2,733
From net realized gain	-	-	-	-
Total	$ 29,357,892	$ 4,584,117	$ 1,562,295	$ 2,733
	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
From net investment income	$ 55,135,751	$ 8,426,160	$ 1,785,280	$ -
From net realized gain	-	-	-	-
Total	$ 55,135,751	$ 8,426,160	$ 1,785,280	$ -

^A For the period April 24, 2002 (commencement of sale of share) to December 31, 2002.

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

Semiannual Report

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.10	$ 20.13	$ 23.75	$ 29.15	$ 24.44	$ 19.94
Income from Investment Operations
Net investment income (loss)^E	.04	.10	.16	.17	.12	.13
Net realized and unrealized gain (loss)	1.68	(1.97)	(3.01)	(1.84)	5.59	5.54
Total from investment operations	1.72	(1.87)	(2.85)	(1.67)	5.71	5.67
Distributions from net investment income	(.09)	(.16)	(.17)	(.11)	(.12)	(.14)
Distributions from net realized gain	-	-	(.60)	(3.62)	(.88)	(1.03)
Total distributions	(.09)	(.16)	(.77)	(3.73)	(1.00)	(1.17)
Redemption fees added to paid in capital^E,G	-	-	-	-	-	-
Net asset value, end of period	$ 19.73	$ 18.10	$ 20.13	$ 23.75	$ 29.15	$ 24.44
Total Return^{B, C, D}	9.58%	(9.35)%	(12.28)%	(6.58)%	24.25%	29.98%
Ratios to Average Net Assets^F
Expenses before expense reductions	.68%^A	.68%	.68%	.66%	.67%	.70%
Expenses net of voluntary waivers, if any	.68%^A	.68%	.68%	.66%	.67%	.70%
Expenses net of all reductions	.64%^A	.64%	.64%	.63%	.65%	.66%
Net investment income (loss)	.48%^A	.50%	.77%	.69%	.48%	.62%
Supplemental Data
Net assets, end of period (000 omitted)	$ 6,424,373	$ 5,956,028	$ 6,972,615	$ 8,516,464	$ 9,005,129	$ 6,388,592
Portfolio turnover rate	74%^A	84%	140%	177%	172%	201%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FExpense 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 any voluntary 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. ^GAmount represents less than $.01 per-share.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.04	$ 20.06	$ 23.67	$ 29.10	$ 24.42	$ 19.93
Income from Investment Operations
Net investment income (loss)^E	.03	.08	.14	.15	.10	.11
Net realized and unrealized gain (loss)	1.68	(1.96)	(3.00)	(1.85)	5.58	5.55
Total from investment operations	1.71	(1.88)	(2.86)	(1.70)	5.68	5.66
Distributions from net investment income	(.07)	(.14)	(.15)	(.11)	(.12)	(.14)
Distributions from net realized gain	-	-	(.60)	(3.62)	(.88)	(1.03)
Total distributions	(.07)	(.14)	(.75)	(3.73)	(1.00)	(1.17)
Redemption fees added to paid in capital^E,G	-	-	-	-	-	-
Net asset value, end of period	$ 19.68	$ 18.04	$ 20.06	$ 23.67	$ 29.10	$ 24.42
Total Return^{B, C, D}	9.54%	(9.42)%	(12.36)%	(6.71)%	24.15%	29.94%
Ratios to Average Net Assets^F
Expenses before expense reductions	.78%^A	.78%	.78%	.76%	.78%	.80%
Expenses net of voluntary waivers, if any	.78%^A	.78%	.78%	.76%	.78%	.80%
Expenses net of all reductions	.74%^A	.74%	.74%	.74%	.75%	.75%
Net investment income (loss)	.38%^A	.39%	.67%	.59%	.37%	.53%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,347,878	$ 1,183,683	$ 1,201,105	$ 1,245,222	$ 775,216	$ 152,553
Portfolio turnover rate	74%^A	84%	140%	177%	172%	201%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FExpense 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 any voluntary 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. ^GAmount represents less than $.01 per-share.

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

Contrafund Portfolio

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.95	$ 20.00	$ 23.64	$ 28.20
Income from Investment Operations
Net investment income (loss)^E	.02	.05	.10	.10
Net realized and unrealized gain (loss)	1.67	(1.96)	(2.98)	(.93)
Total from investment operations	1.69	(1.91)	(2.88)	(.83)
Distributions from net investment income	(.06)	(.14)	(.16)	(.11)
Distributions from net realized gain	-	-	(.60)	(3.62)
Total distributions	(.06)	(.14)	(.76)	(3.73)
Redemption fees added to paid in capital^E,H	-	-	-	-
Net asset value, end of period	$ 19.58	$ 17.95	$ 20.00	$ 23.64
Total Return^{B, C, D}	9.47%	(9.60)%	(12.47)%	(3.86)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.93%^A	.93%	.94%	.92%^A
Expenses net of voluntary waivers, if any	.93%^A	.93%	.94%	.92%^A
Expenses net of all reductions	.90%^A	.90%	.90%	.90%^A
Net investment income (loss)	.23%^A	.24%	.52%	.43%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 633,353	$ 439,157	$ 231,686	$ 81,950
Portfolio turnover rate	74%^A	84%	140%	177%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFor the period January 12, 2000 (commencement of sale of shares) to December 31, 2000. ^GExpense 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 any voluntary 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. ^HAmount represents less than $.01 per-share.

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.95	$ 20.49
Income from Investment Operations
Net investment income (loss)^E	.02	.03
Net realized and unrealized gain (loss)	1.66	(2.57)
Total from investment operations	1.68	(2.54)
Distributions from net investment income	(.08)	-
Redemption fees added to paid in capital^E,H	-	-
Net asset value, end of period	$ 19.55	$ 17.95
Total Return^{B, C, D}	9.43%	(12.40)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.93%^A	.96%^A
Expenses net of voluntary waivers, if any	.93%^A	.96%^A
Expenses net of all reductions	.89%^A	.92%^A
Net investment income (loss)	.23%^A	.23%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 618	$ 810
Portfolio turnover rate	74%^A	84%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFor the period April 24, 2002 (commencement of sale of shares) to December 31, 2002. ^GExpense 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. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of any voluntary 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. ^HAmount represents less than $.01 per-share.

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

Contrafund Portfolio

Fidelity Variable Insurance Products: Equity-Income Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Citigroup, Inc.	3.1
Exxon Mobil Corp.	3.0
Fannie Mae	2.5
Bank of America Corp.	2.4
Total SA	2.2
	13.2
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Financials	29.0
Consumer Discretionary	12.4
Industrials	11.8
Energy	11.4
Health Care	7.7

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks	97.7%
	Bonds	1.5%
	Short-Term Investments and Net Other Assets	0.8%

* Foreign investments

9.7%

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 96.3%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 11.6%
Automobiles - 0.3%
General Motors Corp.	628,100		$ 22,611,600
Hotels, Restaurants & Leisure - 1.7%
Hilton Hotels Corp.	366,700		4,690,093
Mandalay Resort Group	314,500		10,016,825
McDonald's Corp.	2,636,000		58,150,160
MGM MIRAGE (a)	1,243,570		42,505,223
Park Place Entertainment Corp. (a)	2,509,000		22,806,810
Six Flags, Inc. (a)	1,408,356		9,548,654
			147,717,765
Household Durables - 1.3%
Black & Decker Corp.	595,500		25,874,475
Fortune Brands, Inc.	84,200		4,395,240
Maytag Corp.	829,320		20,251,994
Newell Rubbermaid, Inc.	1,000,400		28,011,200
Snap-On, Inc.	366,300		10,633,689
Whirlpool Corp.	377,700		24,059,490
			113,226,088
Media - 5.3%
AOL Time Warner, Inc. (a)	7,015,850		112,885,027
Clear Channel Communications, Inc. (a)	1,358,300		57,578,337
Comcast Corp. Class A (a)	2,852,091		86,076,106
Liberty Media Corp. Class A (a)	2,193,776		25,360,051
News Corp. Ltd.:
ADR	234,034		7,084,209
sponsored ADR	303,867		7,602,752
Reader's Digest Association, Inc. (non-vtg.)	1,243,903		16,767,812
Viacom, Inc. Class B (non-vtg.) (a)	2,413,218		105,361,098
Vivendi Universal SA sponsored ADR	717,200		13,225,168
Walt Disney Co.	1,532,100		30,258,975
			462,199,535
Multiline Retail - 0.9%
Big Lots, Inc. (a)	1,028,756		15,472,494
Federated Department Stores, Inc.	749,900		27,633,815
Target Corp.	862,300		32,629,432
			75,735,741
Specialty Retail - 2.0%
Charming Shoppes, Inc. (a)	1,290,400		6,413,288
Gap, Inc.	2,073,900		38,906,364
Home Depot, Inc.	589,900		19,537,488
Limited Brands, Inc.	2,528,000		39,184,000
Office Depot, Inc. (a)	1,235,500		17,927,105
RadioShack Corp.	1,296,800		34,118,808
Staples, Inc. (a)	1,198,562		21,993,613
			178,080,666

	Shares		Value (Note 1)
Textiles Apparel & Luxury Goods - 0.1%
Jones Apparel Group, Inc. (a)	422,100		$ 12,350,646
TOTAL CONSUMER DISCRETIONARY			1,011,922,041
CONSUMER STAPLES - 6.0%
Beverages - 0.4%
The Coca-Cola Co.	746,100		34,626,501
Food & Staples Retailing - 0.9%
Albertson's, Inc.	1,092,200		20,970,240
CVS Corp.	2,041,100		57,212,033
			78,182,273
Food Products - 1.0%
Fresh Del Monte Produce, Inc.	544,388		13,985,328
Kraft Foods, Inc. Class A	752,900		24,506,895
Tyson Foods, Inc. Class A	1,161,000		12,329,820
Unilever PLC sponsored ADR	1,116,200		35,830,020
			86,652,063
Household Products - 1.4%
Colgate-Palmolive Co.	466,300		27,022,085
Kimberly-Clark Corp.	1,273,400		66,395,076
Procter & Gamble Co.	319,400		28,484,092
The Dial Corp.	236,600		4,601,870
			126,503,123
Personal Products - 1.2%
Gillette Co.	3,227,920		102,841,531
Tobacco - 1.1%
Altria Group, Inc.	1,980,200		89,980,288
Loews Corp. - Carolina Group	215,200		5,810,400
			95,790,688
TOTAL CONSUMER STAPLES			524,596,179
ENERGY - 11.4%
Energy Equipment & Services - 2.5%
Baker Hughes, Inc.	1,593,600		53,497,152
BJ Services Co. (a)	520,145		19,432,617
Noble Corp. (a)	511,800		17,554,740
Schlumberger Ltd. (NY Shares)	2,713,900		129,100,223
			219,584,732
Oil & Gas - 8.9%
Anadarko Petroleum Corp.	263,400		11,713,398
Apache Corp.	345,240		22,461,314
BP PLC sponsored ADR	2,530,242		106,320,769
ChevronTexaco Corp.	882,171		63,692,746
ConocoPhillips	553,070		30,308,236
Exxon Mobil Corp.	7,261,536		260,761,758
Royal Dutch Petroleum Co. (NY Shares)	1,910,300		89,058,186
Common Stocks - continued
	Shares		Value (Note 1)
ENERGY - continued
Oil & Gas - continued
Total SA:
Series B	391,400		$ 59,336,241
sponsored ADR	1,724,096		130,686,477
			774,339,125
TOTAL ENERGY			993,923,857
FINANCIALS - 28.3%
Capital Markets - 6.2%
Bank of New York Co., Inc.	3,033,500		87,213,125
Charles Schwab Corp.	3,853,600		38,882,824
Credit Suisse Group sponsored ADR	735,200		19,350,464
J.P. Morgan Chase & Co.	3,733,850		127,622,993
Janus Capital Group, Inc.	780,400		12,798,560
Lehman Brothers Holdings, Inc.	380,500		25,295,640
Mellon Financial Corp.	1,716,500		47,632,875
Merrill Lynch & Co., Inc.	1,658,000		77,395,440
Morgan Stanley	1,890,800		80,831,700
Nomura Holdings, Inc.	1,853,000		23,594,052
			540,617,673
Commercial Banks - 8.2%
Bank of America Corp.	2,639,390		208,590,992
Bank One Corp.	2,487,438		92,482,945
Comerica, Inc.	926,900		43,100,850
FleetBoston Financial Corp.	1,850,700		54,984,297
Huntington Bancshares, Inc.	510,200		9,959,104
PNC Financial Services Group, Inc.	617,200		30,125,532
State Bank of India	463,175		3,834,342
U.S. Bancorp, Delaware	2,893,738		70,896,581
Wachovia Corp.	2,033,475		81,257,661
Wells Fargo & Co.	2,278,400		114,831,360
			710,063,664
Consumer Finance - 1.4%
American Express Co.	2,231,496		93,298,848
MBNA Corp.	1,456,400		30,351,376
			123,650,224
Diversified Financial Services - 3.5%
CIT Group, Inc.	1,371,500		33,807,475
Citigroup, Inc.	6,271,419		268,416,726
			302,224,201
Insurance - 5.7%
ACE Ltd.	1,631,815		55,954,936
Allianz AG sponsored ADR	567,200		4,690,744
Allstate Corp.	1,459,600		52,034,740
American International Group, Inc.	3,301,250		182,162,975
Hartford Financial Services Group, Inc.	1,334,400		67,200,384
Lincoln National Corp.	95,000		3,384,850
Marsh & McLennan Companies, Inc.	364,500		18,615,015
MBIA, Inc.	241,300		11,763,375
The Chubb Corp.	634,000		38,040,000

	Shares		Value (Note 1)
Travelers Property Casualty Corp.:
Class A	2,327,467		$ 37,006,725
Class B	622,257		9,812,993
UnumProvident Corp.	1,270,300		17,034,723
			497,701,460
Real Estate - 0.4%
Equity Office Properties Trust	317,100		8,564,871
Equity Residential (SBI)	1,127,400		29,256,030
			37,820,901
Thrifts & Mortgage Finance - 2.9%
Fannie Mae	3,241,000		218,573,040
Freddie Mac	717,900		36,447,783
			255,020,823
TOTAL FINANCIALS			2,467,098,946
HEALTH CARE - 7.6%
Health Care Equipment & Supplies - 0.8%
Baxter International, Inc.	1,570,900		40,843,400
Becton, Dickinson & Co.	611,100		23,741,235
			64,584,635
Health Care Providers & Services - 1.2%
HCA, Inc.	913,100		29,255,724
IMS Health, Inc.	1,455,099		26,177,231
McKesson Corp.	1,015,700		36,301,118
Tenet Healthcare Corp. (a)	1,266,700		14,757,055
			106,491,128
Pharmaceuticals - 5.6%
Abbott Laboratories	857,000		37,502,320
Bristol-Myers Squibb Co.	3,292,400		89,388,660
Eli Lilly & Co.	338,800		23,367,036
Johnson & Johnson	1,137,600		58,813,920
Merck & Co., Inc.	2,458,700		148,874,285
Pfizer, Inc.	959,100		32,753,265
Roche Holding AG (participation certificate)	105,300		8,280,140
Schering-Plough Corp.	2,190,730		40,747,578
Wyeth	1,107,200		50,432,960
			490,160,164
TOTAL HEALTH CARE			661,235,927
INDUSTRIALS - 11.7%
Aerospace & Defense - 2.6%
Boeing Co.	997,800		34,244,496
Bombardier, Inc. Class B (sub. vtg.)	1,053,500		3,572,114
Honeywell International, Inc.	3,013,825		80,921,201
Lockheed Martin Corp.	546,500		25,997,005
Northrop Grumman Corp.	451,500		38,959,935
Common Stocks - continued
	Shares		Value (Note 1)
INDUSTRIALS - continued
Aerospace & Defense - continued
Raytheon Co.	586,400		$ 19,257,376
United Technologies Corp.	379,520		26,881,402
			229,833,529
Building Products - 0.5%
Masco Corp.	2,041,200		48,682,620
Commercial Services & Supplies - 0.6%
Viad Corp.	1,061,700		23,771,463
Waste Management, Inc.	1,286,100		30,982,149
			54,753,612
Electrical Equipment - 0.4%
Emerson Electric Co.	421,400		21,533,540
Rockwell Automation, Inc.	498,300		11,879,472
			33,413,012
Industrial Conglomerates - 3.2%
3M Co.	171,200		22,081,376
General Electric Co.	3,538,440		101,482,459
Hutchison Whampoa Ltd.	2,171,000		13,223,715
Siemens AG sponsored ADR	412,500		20,150,625
Textron, Inc.	879,800		34,329,796
Tyco International Ltd.	4,439,946		84,270,175
			275,538,146
Machinery - 3.1%
Caterpillar, Inc.	968,200		53,890,012
Cummins, Inc.	126,500		4,540,085
Deere & Co.	435,050		19,881,785
Eaton Corp.	434,800		34,179,628
Illinois Tool Works, Inc.	353,600		23,284,560
Ingersoll-Rand Co. Ltd. Class A	1,467,444		69,439,450
Kennametal, Inc.	230,039		7,784,520
Navistar International Corp. (a)	265,900		8,676,317
Parker Hannifin Corp.	610,500		25,634,895
SPX Corp. (a)	337,400		14,865,844
Timken Co.	400,600		7,014,506
			269,191,602
Road & Rail - 1.3%
Burlington Northern Santa Fe Corp.	2,245,600		63,864,864
Union Pacific Corp.	807,900		46,874,358
			110,739,222
TOTAL INDUSTRIALS			1,022,151,743
INFORMATION TECHNOLOGY - 5.9%
Communications Equipment - 0.3%
Motorola, Inc.	2,536,200		23,916,366
Computers & Peripherals - 1.6%
Hewlett-Packard Co.	3,622,911		77,168,004

	Shares		Value (Note 1)
International Business Machines Corp.	640,900		$ 52,874,250
Sun Microsystems, Inc. (a)	2,455,800		11,296,680
			141,338,934
Electronic Equipment & Instruments - 1.7%
Agilent Technologies, Inc. (a)	945,300		18,480,615
Arrow Electronics, Inc. (a)	799,100		12,178,284
Avnet, Inc. (a)	1,317,330		16,703,744
PerkinElmer, Inc.	2,206,000		30,464,860
Sanmina-SCI Corp. (a)	1,101,200		6,948,572
Tektronix, Inc. (a)	1,310,800		28,313,280
Thermo Electron Corp. (a)	1,539,600		32,362,392
			145,451,747
IT Services - 0.5%
Ceridian Corp. (a)	1,582,200		26,849,934
Electronic Data Systems Corp.	416,800		8,940,360
First Data Corp.	252,700		10,471,888
			46,262,182
Semiconductors & Semiconductor Equipment - 1.0%
Intel Corp.	2,173,600		45,176,102
Micron Technology, Inc. (a)	1,484,400		17,263,572
National Semiconductor Corp. (a)	440,975		8,696,027
Rohm Co. Ltd.	63,100		6,900,986
Teradyne, Inc. (a)	421,971		7,304,318
			85,341,005
Software - 0.8%
Microsoft Corp.	2,642,800		67,682,108
TOTAL INFORMATION TECHNOLOGY			509,992,342
MATERIALS - 6.4%
Chemicals - 2.6%
Arch Chemicals, Inc.	442,400		8,449,840
BOC Group PLC	423,497		5,449,895
Dow Chemical Co.	2,262,600		70,050,096
Hercules Trust II unit	15,700		9,086,375
Hercules, Inc. (a)	649,700		6,432,030
LG Chemical Ltd.	216,900		8,712,300
Lyondell Chemical Co.	1,202,700		16,272,531
Millennium Chemicals, Inc.	853,650		8,118,212
Olin Corp.	572,700		9,793,170
PolyOne Corp.	1,239,100		5,513,995
PPG Industries, Inc.	390,300		19,803,822
Praxair, Inc.	821,212		49,354,841
Solutia, Inc.	2,067,100		4,506,278
			221,543,385
Containers & Packaging - 0.4%
Owens-Illinois, Inc. (a)	349,500		4,812,615
Smurfit-Stone Container Corp. (a)	2,375,253		30,949,547
			35,762,162
Metals & Mining - 2.3%
Alcan, Inc.	955,100		29,769,811
Alcoa, Inc.	3,000,416		76,510,608
Common Stocks - continued
	Shares		Value (Note 1)
MATERIALS - continued
Metals & Mining - continued
Dofasco, Inc.	926,300		$ 17,875,844
Nucor Corp.	283,400		13,844,090
Pechiney SA (a)	706,090		25,414,131
Phelps Dodge Corp. (a)	994,700		38,136,798
			201,551,282
Paper & Forest Products - 1.1%
Bowater, Inc.	474,100		17,755,045
Georgia-Pacific Corp.	1,646,101		31,193,614
International Paper Co.	368,200		13,155,786
Weyerhaeuser Co.	645,900		34,878,600
			96,983,045
TOTAL MATERIALS			555,839,874
TELECOMMUNICATION SERVICES - 4.4%
Diversified Telecommunication Services - 4.4%
BellSouth Corp.	4,818,499		128,316,628
SBC Communications, Inc.	4,711,593		120,381,201
Verizon Communications, Inc.	3,435,902		135,546,334
			384,244,163
UTILITIES - 3.0%
Electric Utilities - 2.5%
Cinergy Corp.	475,200		17,482,608
Dominion Resources, Inc.	584,600		37,572,242
DPL, Inc.	1,010,054		16,100,261
Entergy Corp.	1,008,200		53,212,796
FirstEnergy Corp.	1,020,000		39,219,000
Northeast Utilities	1,648,400		27,594,216
TXU Corp.	1,059,220		23,779,489
			214,960,612
Gas Utilities - 0.1%
NiSource, Inc.	568,730		10,805,870
Multi-Utilities & Unregulated Power - 0.4%
SCANA Corp.	911,600		31,249,648
TOTAL UTILITIES			257,016,130
TOTAL COMMON STOCKS (Cost $7,597,732,395)		8,388,021,202
Preferred Stocks - 1.4%
	Shares		Value (Note 1)
Convertible Preferred Stocks - 1.4%
CONSUMER DISCRETIONARY - 0.2%
Automobiles - 0.1%
General Motors Corp.:
Series B, 5.25%	412,200		$ 9,175,572
Series C, 6.25%	253,100		6,243,977
			15,419,549
Hotels, Restaurants & Leisure - 0.1%
Six Flags, Inc. 7.25% PIERS	388,400		7,612,640
TOTAL CONSUMER DISCRETIONARY			23,032,189
FINANCIALS - 0.5%
Capital Markets - 0.1%
State Street Corp. 6.75%	24,900		5,132,562
Consumer Finance - 0.2%
Ford Motor Co. Capital Trust II 6.5%	461,500		19,983,873
Insurance - 0.2%
Hartford Financial Services Group, Inc. 6%	54,300		2,843,691
The Chubb Corp.:
7%	167,700		4,342,424
Series B, 7%	120,100		3,086,570
Travelers Property Casualty Corp. 4.50%	240,200		5,807,796
			16,080,481
TOTAL FINANCIALS			41,196,916
HEALTH CARE - 0.1%
Health Care Equipment & Supplies - 0.1%
Baxter International, Inc. 7%	156,900		7,688,100
INDUSTRIALS - 0.1%
Aerospace & Defense - 0.1%
Raytheon Co. 8.25%	177,700		10,028,944
INFORMATION TECHNOLOGY - 0.3%
Communications Equipment - 0.2%
Motorola, Inc. 7%	441,100		14,165,485
IT Services - 0.1%
Electronic Data Systems Corp. 7.625% PRIDES	475,600		10,486,980
Office Electronics - 0.0%
Xerox Corp. 6.25%	25,300		2,657,689
TOTAL INFORMATION TECHNOLOGY			27,310,154
Preferred Stocks - continued
	Shares		Value (Note 1)
Convertible Preferred Stocks - continued
UTILITIES - 0.2%
Electric Utilities - 0.2%
Cinergy Corp. 9.5% PRIDES	105,900		$ 6,273,516
TXU Corp. 8.75%	226,400		7,386,300
			13,659,816
Multi-Utilities & Unregulated Power - 0.0%
El Paso Corp. 9%	133,400		4,002,000
TOTAL UTILITIES			17,661,816
TOTAL CONVERTIBLE PREFERRED STOCKS			126,918,119
Nonconvertible Preferred Stocks - 0.0%
CONSUMER DISCRETIONARY - 0.0%
Media - 0.0%
CSC Holdings, Inc.:
Series H, 11.75%	1,110		114,053
Series M, 11.125%	400		40,900
			154,953
TOTAL PREFERRED STOCKS (Cost $157,279,838)		127,073,072
Corporate Bonds - 1.5%
	Principal Amount
Convertible Bonds - 1.0%
CONSUMER DISCRETIONARY - 0.5%
Hotels, Restaurants & Leisure - 0.1%
Royal Caribbean Cruises Ltd. liquid yield option note 0% 2/2/21	$ 15,369,000		6,627,881
Media - 0.4%
Cox Communications, Inc. 0.4259% 4/19/20	26,600,000		13,333,250
Liberty Media Corp.3.5% 1/15/31 (d)	11,400,000		8,550,000
News America, Inc. liquid yield option note 0% 2/28/21 (d)	22,670,000		12,638,525
			34,521,775
Multiline Retail - 0.0%
JCPenney Co., Inc. 5% 10/15/08 (d)	2,670,000		2,588,245
TOTAL CONSUMER DISCRETIONARY			43,737,901
FINANCIALS - 0.1%
Diversified Financial Services - 0.0%
Navistar Financial Corp. 4.75% 4/1/09 (d)	2,760,000		2,612,257
Insurance - 0.1%
Loews Corp. 3.125% 9/15/07	5,340,000		5,019,600
TOTAL FINANCIALS			7,631,857

	Principal Amount		Value (Note 1)
INFORMATION TECHNOLOGY - 0.3%
Communications Equipment - 0.2%
Corning, Inc. 3.5% 11/1/08	$ 13,700,000		$ 14,805,316
Computers & Peripherals - 0.0%
Quantum Corp. 7% 8/1/04	5,350,000		5,376,750
Electronic Equipment & Instruments - 0.1%
Agilent Technologies, Inc. 3% 12/1/21	6,670,000		6,537,667
Celestica, Inc. liquid yield option note 0% 8/1/20	620,000		322,400
			6,860,067
TOTAL INFORMATION TECHNOLOGY			27,042,133
MATERIALS - 0.1%
Metals & Mining - 0.1%
Freeport-McMoRan Copper & Gold, Inc. 8.25% 1/31/06 (d)	4,220,000		7,543,250
TOTAL CONVERTIBLE BONDS			85,955,141
Nonconvertible Bonds - 0.5%
CONSUMER DISCRETIONARY - 0.1%
Auto Components - 0.0%
ArvinMeritor, Inc. 8.75% 3/1/12	35,000		38,850
Dana Corp.:
6.25% 3/1/04	80,000		80,400
6.5% 3/1/09	45,000		43,650
9% 8/15/11	125,000		134,375
Navistar International Corp. 8% 2/1/08	55,000		54,725
Stoneridge, Inc. 11.5% 5/1/12	25,000		28,000
United Components, Inc. 9.375% 6/15/13 (d)	40,000		41,200
			421,200
Hotels, Restaurants & Leisure - 0.0%
Bally Total Fitness Holding Corp.:
9.875% 10/15/07	325,000		297,375
10.5% 7/15/11 (d)	220,000		221,100
Domino's, Inc. 8.25% 7/1/11 (d)	70,000		71,925
Florida Panthers Holdings, Inc. 9.875% 4/15/09	35,000		37,625
Friendly Ice Cream Corp. 10.5% 12/1/07	135,000		138,038
Mohegan Tribal Gaming Authority 8.375% 7/1/11	30,000		32,250
Morton's Restaurant Group, Inc. 7.5% 7/1/10 (d)(e)	40,000		34,600
MTR Gaming Group, Inc. 9.75% 4/1/10 (d)	60,000		62,100
Premier Parks, Inc. 9.75% 6/15/07	65,000		64,675
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER DISCRETIONARY - continued
Hotels, Restaurants & Leisure - continued
Sun International Hotels Ltd./Sun International North America, Inc. 8.875% 8/15/11	$ 95,000		$ 102,363
Town Sports International, Inc. 9.625% 4/15/11 (d)	70,000		73,325
Tricon Global Restaurants, Inc. 7.65% 5/15/08	65,000		73,450
Waterford Gaming LLC/Waterford Gaming Finance Corp. 8.625% 9/15/12 (d)	50,000		52,000
Wheeling Island Gaming, Inc. 10.125% 12/15/09	670,000		664,975
			1,925,801
Household Durables - 0.0%
Beazer Homes USA, Inc. 8.375% 4/15/12	30,000		33,150
D.R. Horton, Inc.:
8% 2/1/09	310,000		342,550
8.5% 4/15/12	30,000		33,600
Juno Lighting, Inc. 11.875% 7/1/09	135,000		145,800
K. Hovnanian Enterprises, Inc. 8.875% 4/1/12	40,000		43,200
Lyon William Homes, Inc. 10.75% 4/1/13	165,000		174,900
Ryland Group, Inc.:
8.25% 4/1/08	65,000		67,600
9.125% 6/15/11	95,000		107,825
Standard Pacific Corp. 7.75% 3/15/13	280,000		296,800
			1,245,425
Leisure Equipment & Products - 0.0%
The Hockey Co. 11.25% 4/15/09	45,000		49,950
Media - 0.1%
AMC Entertainment, Inc.:
9.5% 3/15/09	60,000		61,500
9.875% 2/1/12	60,000		64,200
CBD Media LLC/ CBD Finance, Inc. 8.625% 6/1/11 (d)	30,000		30,825
Comcast UK Cable Partners Ltd. yankee 11.2% 11/15/07	160,000		154,400
Corus Entertainment, Inc. 8.75% 3/1/12	790,000		847,275
CSC Holdings, Inc.:
7.875% 2/15/18	125,000		129,375
9.875% 2/15/13	100,000		103,000
Diamond Holdings PLC yankee 9.125% 2/1/08	80,000		74,000
EchoStar DBS Corp. 10.375% 10/1/07	900,000		996,750
Lamar Media Corp. 7.25% 1/1/13 (d)	110,000		116,050
LBI Media, Inc. 10.125% 7/15/12	925,000		1,017,500
LodgeNet Entertainment Corp. 9.5% 6/15/13	30,000		30,750

	Principal Amount		Value (Note 1)
Nextmedia Operating, Inc. 10.75% 7/1/11	$ 720,000		$ 806,400
PEI Holdings, Inc. 11% 3/15/10 (d)	70,000		77,350
PRIMEDIA, Inc.:
7.625% 4/1/08	25,000		25,375
8.875% 5/15/11	25,000		26,500
Rogers Cablesystems Ltd. yankee 11% 12/1/15	15,000		16,950
Rogers Communications, Inc. yankee 8.875% 7/15/07	65,000		66,950
Shaw Communications, Inc. yankee 7.2% 12/15/11	35,000		37,713
XM Satellite Radio, Inc. 12% 6/15/10 (d)	95,000		94,288
			4,777,151
Multiline Retail - 0.0%
Barneys, Inc. 9% 4/1/08 unit (d)	200,000		180,000
Specialty Retail - 0.0%
Asbury Automotive Group, Inc. 9% 6/15/12	80,000		78,400
Gap, Inc. 10.55% 12/15/08	20,000		24,200
Toys 'R' US, Inc. 7.875% 4/15/13	110,000		117,700
United Auto Group, Inc. 9.625% 3/15/12	295,000		315,650
			535,950
Textiles Apparel & Luxury Goods - 0.0%
Dan River, Inc. 12.75% 4/15/09 (d)	205,000		184,500
Levi Strauss & Co.:
7% 11/1/06	45,000		36,000
11.625% 1/15/08	25,000		21,375
12.25% 12/15/12	40,000		33,200
			275,075
TOTAL CONSUMER DISCRETIONARY			9,410,552
CONSUMER STAPLES - 0.0%
Beverages - 0.0%
Canandaigua Brands, Inc. 8.5% 3/1/09	315,000		331,538
Food & Staples Retailing - 0.0%
Rite Aid Corp.:
6% 12/15/05 (d)	115,000		108,100
6.875% 8/15/13	90,000		77,850
7.625% 4/15/05	25,000		24,875
8.125% 5/1/10 (d)	110,000		114,400
9.5% 2/15/11 (d)	110,000		118,250
The Great Atlantic & Pacific Tea Co.:
7.75% 4/15/07	340,000		317,900
9.125% 12/15/11	115,000		107,525
			868,900
Food Products - 0.0%
Corn Products International, Inc. 8.25% 7/15/07	605,000		677,600
Del Monte Corp. 9.25% 5/15/11	45,000		49,050
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
CONSUMER STAPLES - continued
Food Products - continued
Doane Pet Care Co. 9.75% 5/15/07	$ 205,000		$ 194,750
Dole Food Co., Inc. 7.25% 6/15/10 (d)	100,000		100,750
			1,022,150
Household Products - 0.0%
Fort James Corp. 6.875% 9/15/07	35,000		35,525
Personal Products - 0.0%
Jafra Cosmetics International, Inc./Distribuidora Comercial Jafra SA de CV 10.75% 5/15/11 (d)	60,000		62,400
TOTAL CONSUMER STAPLES			2,320,513
ENERGY - 0.0%
Energy Equipment & Services - 0.0%
Grant Prideco, Inc. 9% 12/15/09	40,000		44,700
Universal Compression, Inc. 7.25% 5/15/10 (d)	320,000		334,400
			379,100
Oil & Gas - 0.0%
Chesapeake Energy Corp. 7.5% 9/15/13 (d)	110,000		117,150
General Maritime Corp. 10% 3/15/13 (d)	210,000		229,950
GulfTerra Energy Partners LP/GulfTerra Energy Finance Corp. 10.625% 12/1/12	50,000		58,000
Houston Exploration Co. 7% 6/15/13 (d)	50,000		51,625
NGC Corp. 6.75% 12/15/05	80,000		75,600
Nuevo Energy Co.:
9.375% 10/1/10	30,000		32,325
9.5% 6/1/08	31,000		32,473
Overseas Shipholding Group, Inc. 8.25% 3/15/13 (d)	205,000		213,200
Plains Exploration & Production Co. LP 8.75% 7/1/12 (d)	80,000		85,600
Tesoro Petroleum Corp. 8% 4/15/08 (d)	40,000		41,000
The Coastal Corp.:
6.375% 2/1/09	10,000		8,750
6.5% 5/15/06	40,000		37,400
6.5% 6/1/08	30,000		26,850
6.95% 6/1/28	65,000		51,675
7.5% 8/15/06	120,000		115,800
7.75% 6/15/10	65,000		60,613
7.75% 10/15/35	40,000		33,600
			1,271,611
TOTAL ENERGY			1,650,711
FINANCIALS - 0.1%
Consumer Finance - 0.0%
AmeriCredit Corp. 9.875% 4/15/06	45,000		42,750

	Principal Amount		Value (Note 1)
Capital One Financial Corp.:
7.25% 12/1/03	$ 40,000		$ 40,800
8.75% 2/1/07	80,000		88,800
			172,350
Diversified Financial Services - 0.1%
Ahold Finance USA, Inc.:
6.25% 5/1/09	100,000		93,000
6.875% 5/1/29	75,000		63,375
8.25% 7/15/10	260,000		262,600
Arch Western Finance LLC 6.75% 7/1/13 (d)	215,000		219,300
BRL Universal Equipment 2001 A LP/BRL Universal Equipment Corp. 8.875% 2/15/08	650,000		702,000
CMS Energy X-TRAS pass thru trust I 7% 1/15/05	40,000		39,700
Continental Airlines, Inc. pass thru trust certificates:
6.748% 9/15/18	11,889		9,036
6.9% 1/2/17	23,773		18,068
7.73% 9/15/12	24,669		18,502
8.321% 11/1/06	10,000		8,400
Delta Air Lines, Inc. pass thru trust certificates:
7.299% 9/18/06	35,000		29,400
7.779% 1/2/12	751,351		601,080
El Paso Energy Partners LP/El Paso Energy Partners Finance Corp. 8.5% 6/1/11	45,000		48,150
FIMEP SA 10.5% 2/15/13 (d)	120,000		134,400
Gemstone Investor Ltd./Gemstone Investor, Inc. 7.71% 10/31/04 (d)	235,000		232,650
Gerdau AmeriSteel Corp./GUSAP Partners 10.375% 7/15/11 (d)	160,000		156,000
Huntsman Advanced Materials LLC 11% 7/15/10 (d)	60,000		62,400
IOS Capital LLC 7.25% 6/30/08	110,000		108,350
Leucadia National Corp. 7% 8/15/13 (d)	130,000		130,325
Moore North America Finance, Inc. 7.875% 1/15/11 (d)	90,000		94,050
MSW Energy Holding LLC/MSW Energy Finance Co., Inc. 8.5% 9/1/10 (d)	30,000		30,900
Northern Telecom Capital Corp. 7.875% 6/15/26	75,000		68,250
Northwest Airlines, Inc. pass thru trust certificates:
7.068% 7/2/17	37,818		29,498
7.67% 1/2/15	39,608		32,875
7.691% 4/1/17	126,559		99,981
Qwest Capital Funding, Inc.:
5.875% 8/3/04	220,000		212,300
7% 8/3/09	100,000		82,000
7.25% 2/15/11	115,000		93,150
7.625% 8/3/21	70,000		55,300
7.75% 8/15/06	310,000		288,300
7.75% 2/15/31	120,000		93,600
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
FINANCIALS - continued
Diversified Financial Services - continued
TRW Automotive Acquisition Corp.:
9.375% 2/15/13 (d)	$ 130,000		$ 141,375
11% 2/15/13 (d)	30,000		32,850
U.S. West Capital Funding, Inc. 6.375% 7/15/08	85,000		69,275
Universal City Development Partners Ltd./UCDP Finance, Inc. 11.75% 4/1/10 (d)	190,000		209,000
Western Financial Bank 9.625% 5/15/12	40,000		43,200
			4,612,640
Insurance - 0.0%
Crum & Forster Holdings Corp. 10.375% 6/15/13 (d)	130,000		131,950
Real Estate - 0.0%
CBRE Escrow, Inc. 9.75% 5/15/10 (d)	265,000		280,900
LNR Property Corp.:
7.625% 7/15/13 (d)	90,000		90,900
9.375% 3/15/08	10,000		10,400
10.5% 1/15/09	40,000		42,400
Senior Housing Properties Trust 7.875% 4/15/15	60,000		61,200
			485,800
TOTAL FINANCIALS			5,402,740
HEALTH CARE - 0.0%
Health Care Providers & Services - 0.0%
AmeriPath, Inc. 10.5% 4/1/13 (d)	100,000		107,000
PacifiCare Health Systems, Inc. 10.75% 6/1/09	620,000		708,350
Psychiatric Solutions, Inc. 10.625% 6/15/13 (d)	40,000		41,100
Rotech Healthcare, Inc. 9.5% 4/1/12	120,000		123,000
Tenet Healthcare Corp.:
6.375% 12/1/11	75,000		69,375
6.5% 6/1/12	10,000		9,250
7.375% 2/1/13	215,000		207,475
			1,265,550
Pharmaceuticals - 0.0%
aaiPharma, Inc. 11% 4/1/10	515,000		566,500
TOTAL HEALTH CARE			1,832,050
INDUSTRIALS - 0.0%
Aerospace & Defense - 0.0%
Aviall, Inc. 7.625% 7/1/11 (d)	110,000		110,550
Esterline Technologies Corp. 7.75% 6/15/13 (d)	30,000		31,050
			141,600
Airlines - 0.0%
Delta Air Lines, Inc. 7.9% 12/15/09	25,000		19,750

	Principal Amount		Value (Note 1)
Northwest Airlines, Inc.:
7.875% 3/15/08	$ 25,000		$ 19,250
9.875% 3/15/07	45,000		35,550
			74,550
Building Products - 0.0%
FastenTech, Inc. 11.5% 5/1/11 (d)	80,000		80,600
Jacuzzi Brands, Inc. 9.625% 7/1/10 (d)(e)	40,000		40,000
Nortek, Inc.:
9.125% 9/1/07	20,000		20,600
9.25% 3/15/07	30,000		30,825
			172,025
Commercial Services & Supplies - 0.0%
Allied Waste North America, Inc.:
7.875% 4/15/13	140,000		146,475
9.25% 9/1/12 (d)	115,000		127,075
10% 8/1/09	15,000		16,013
American Color Graphics, Inc. 10% 6/15/10 (d)(e)	130,000		130,650
Mobile Mini, Inc. 9.5% 7/1/13 (d)	120,000		124,200
National Waterworks, Inc. 10.5% 12/1/12	60,000		66,600
			611,013
Construction & Engineering - 0.0%
Shaw Group, Inc. 10.75% 3/15/10 (d)	140,000		140,700
Industrial Conglomerates - 0.0%
Tyco International Group SA yankee:
5.8% 8/1/06	5,000		5,163
6.375% 2/15/06	120,000		125,100
7% 6/15/28	85,000		85,850
			216,113
Machinery - 0.0%
Cummins, Inc.:
5.65% 3/1/98	110,000		74,800
9.5% 12/1/10 (d)	75,000		84,375
Dresser, Inc. 9.375% 4/15/11	125,000		128,750
Dunlop Standard Aerospace Holdings PLC yankee 11.875% 5/15/09	170,000		183,600
JLG Industries, Inc. 8.25% 5/1/08 (d)	110,000		112,200
Terex Corp. 8.875% 4/1/08	60,000		62,400
TriMas Corp. 9.875% 6/15/12 (d)	90,000		91,800
			737,925
TOTAL INDUSTRIALS			2,093,926
INFORMATION TECHNOLOGY - 0.0%
Communications Equipment - 0.0%
Nortel Networks Corp. 6.125% 2/15/06	130,000		125,450
Northern Telecom Ltd. yankee 6.875% 9/1/23	70,000		59,500
Qwest Services Corp.:
13% 12/15/07 (d)	75,000		82,500
13.5% 12/15/10 (d)	130,000		146,900
14% 12/15/14 (d)	472,000		549,880
			964,230
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
INFORMATION TECHNOLOGY - continued
Computers & Peripherals - 0.0%
Seagate Technology HDD Holdings 8% 5/15/09	$ 25,000		$ 27,000
Electronic Equipment & Instruments - 0.0%
Avnet, Inc. 9.75% 2/15/08	110,000		124,300
Ingram Micro, Inc. 9.875% 8/15/08	40,000		43,600
PerkinElmer, Inc. 8.875% 1/15/13	140,000		152,950
Solectron Corp. 7.375% 3/1/06	255,000		253,725
			574,575
IT Services - 0.0%
Digitalnet, Inc. 9% 7/15/10 (d)	60,000		60,000
Iron Mountain, Inc. 6.625% 1/1/16	220,000		216,700
Titan Corp. 8% 5/15/11 (d)	110,000		116,050
			392,750
Office Electronics - 0.0%
Xerox Corp.:
7.125% 6/15/10	120,000		120,300
7.15% 8/1/04	15,000		15,338
7.2% 4/1/16	200,000		190,000
7.625% 6/15/13	120,000		120,300
			445,938
Semiconductors & Semiconductor Equipment - 0.0%
AMI Semiconductor, Inc. 10.75% 2/1/13 (d)	40,000		45,200
Amkor Technology, Inc. 7.75% 5/15/13 (d)	80,000		75,600
SCG Holding Corp./Semiconductor Components Industries LLC 12% 8/1/09	125,000		105,625
			226,425
TOTAL INFORMATION TECHNOLOGY			2,630,918
MATERIALS - 0.1%
Chemicals - 0.0%
Geon Co. 6.875% 12/15/05	25,000		23,250
HMP Equity Holdings Corp. 0% 5/15/08 unit (d)	190,000		95,000
Huntsman International LLC 9.875% 3/1/09 (d)	105,000		108,675
Methanex Corp. yankee 7.75% 8/15/05	290,000		305,950
Millennium America, Inc.:
9.25% 6/15/08	75,000		81,000
9.25% 6/15/08 (d)	40,000		43,200
OMNOVA Solutions, Inc. 11.25% 6/1/10 (d)	100,000		109,000
PolyOne Corp. 8.875% 5/1/12	105,000		93,450

	Principal Amount		Value (Note 1)
Resolution Performance Products LLC:
9.5% 4/15/10	$ 100,000		$ 104,500
13.5% 11/15/10	30,000		30,000
			994,025
Construction Materials - 0.0%
Texas Industries, Inc. 10.25% 6/15/11 (d)	240,000		252,000
Containers & Packaging - 0.1%
Anchor Glass Container Corp. 11% 2/15/13 (d)	120,000		129,600
BWAY Corp. 10% 10/15/10 (d)	40,000		40,800
Jefferson Smurfit Corp. U.S. 7.5% 6/1/13 (d)	230,000		234,025
Owens-Brockway Glass Container, Inc.:
7.75% 5/15/11 (d)	70,000		73,675
8.25% 5/15/13 (d)	130,000		136,500
8.75% 11/15/12	65,000		70,525
8.875% 2/15/09	550,000		595,375
Owens-Illinois, Inc.:
7.15% 5/15/05	360,000		366,300
7.35% 5/15/08	175,000		172,375
7.5% 5/15/10	35,000		34,300
7.8% 5/15/18	235,000		220,900
			2,074,375
Metals & Mining - 0.0%
Peabody Energy Corp. 6.875% 3/15/13 (d)	150,000		156,750
Phelps Dodge Corp. 8.75% 6/1/11	730,000		851,764
Salt Holdings Corp., Inc.:
0% 12/15/12 (c)(d)	140,000		94,850
0% 6/1/13 (c)(d)	220,000		123,200
Steel Dynamics, Inc. 9.5% 3/15/09	55,000		57,750
			1,284,314
Paper & Forest Products - 0.0%
Georgia-Pacific Corp.:
7.375% 12/1/25	25,000		22,000
7.5% 5/15/06	285,000		292,125
8.125% 5/15/11	130,000		133,575
8.875% 5/15/31	10,000		9,800
Norske Skog Canada Ltd. 8.625% 6/15/11 (d)	150,000		156,563
			614,063
TOTAL MATERIALS			5,218,777
TELECOMMUNICATION SERVICES - 0.1%
Diversified Telecommunication Services - 0.0%
Qwest Corp. 8.875% 3/15/12 (d)	430,000		480,525
Rogers Cantel, Inc. yankee:
8.8% 10/1/07	150,000		153,000
9.375% 6/1/08	20,000		20,900
Triton PCS, Inc.:
8.75% 11/15/11	120,000		119,400
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
TELECOMMUNICATION SERVICES - continued
Diversified Telecommunication Services - continued
Triton PCS, Inc.: - continued
9.375% 2/1/11	$ 175,000		$ 178,500
U.S. West Communications 6.875% 9/15/33	60,000		54,900
			1,007,225
Wireless Telecommunication Services - 0.1%
American Tower Corp. 9.375% 2/1/09	170,000		170,000
Crown Castle International Corp.:
9.375% 8/1/11	90,000		93,375
9.5% 8/1/11	295,000		303,850
10.75% 8/1/11	85,000		91,375
Nextel Communications, Inc.:
9.375% 11/15/09	170,000		182,325
9.5% 2/1/11	40,000		44,400
9.75% 10/31/07	625,000		650,000
9.95% 2/15/08	180,000		189,000
Nextel Partners, Inc. 8.125% 7/1/11 (d)	125,000		124,375
Rogers Wireless, Inc. 9.625% 5/1/11	60,000		67,800
SBA Communications Corp. 10.25% 2/1/09	50,000		45,000
			1,961,500
TOTAL TELECOMMUNICATION SERVICES			2,968,725
UTILITIES - 0.1%
Electric Utilities - 0.0%
Allegheny Energy Supply Co. LLC:
Series A, 10.25% 11/15/07 (d)	114,496		117,931
Series B, 10.25% 11/15/07 (d)(f)	10,500		10,080
7.8% 3/15/11	250,000		207,500
8.75% 4/15/12 (d)	280,000		239,400
CMS Energy Corp. 8.5% 4/15/11	890,000		921,150
Edison International 6.875% 9/15/04	55,000		55,550
Illinois Power Co. 11.5% 12/15/10 (d)	210,000		239,400
Midland Funding Corp. II 11.75% 7/23/05	55,000		59,125
Nevada Power Co. 10.875% 10/15/09	115,000		129,375
Pacific Gas & Electric Co. 6.25% 3/1/04	375,000		375,000
PG&E Corp. 6.875% 7/15/08 (d)	90,000		93,375
Southern California Edison Co.:
7.25% 3/1/26	115,000		116,438
8% 2/15/07 (d)	80,000		88,000
TECO Energy, Inc. 10.5% 12/1/07	160,000		184,000
			2,836,324

	Principal Amount		Value (Note 1)
Gas Utilities - 0.0%
ANR Pipeline, Inc. 9.625% 11/1/21	$ 135,000		$ 159,300
Dynegy Holdings, Inc.:
7.45% 7/15/06	75,000		71,250
8.125% 3/15/05	65,000		63,050
El Paso Energy Corp.:
6.75% 5/15/09	65,000		59,475
6.95% 12/15/07	175,000		163,625
7.375% 12/15/12	10,000		8,950
7.75% 1/15/32	60,000		50,550
7.8% 8/1/31	50,000		41,250
8.05% 10/15/30	380,000		328,700
SEMCO Energy, Inc.:
7.125% 5/15/08 (d)	30,000		31,200
7.75% 5/15/13 (d)	30,000		31,800
Sonat, Inc.:
6.625% 2/1/08	130,000		116,350
6.75% 10/1/07	70,000		63,263
6.875% 6/1/05	470,000		455,900
Southern Natural Gas Co. 8.875% 3/15/10 (d)	60,000		65,700
Transcontinental Gas Pipe Line Corp.:
6.125% 1/15/05	35,000		35,000
8.875% 7/15/12	20,000		22,550
Williams Holdings of Delaware, Inc. 6.25% 2/1/06	15,000		14,700
			1,782,613
Multi-Utilities & Unregulated Power - 0.1%
AES Corp.:
8.375% 8/15/07	75,000		70,125
8.5% 11/1/07	55,000		51,425
8.75% 6/15/08	40,000		39,400
8.75% 5/15/13 (d)	285,000		296,400
8.875% 2/15/11	81,000		78,975
9% 5/15/15 (d)	150,000		156,375
9.375% 9/15/10	19,000		19,095
9.5% 6/1/09	161,000		161,805
10% 12/12/05 (d)	50,000		51,250
10.25% 7/15/06	60,000		59,100
El Paso Corp.:
7% 5/15/11	140,000		127,400
7.875% 6/15/12 (d)	45,000		41,681
El Paso Production Holding Co. 7.75% 6/1/13 (d)	320,000		320,400
Reliant Resources, Inc.:
9.25% 7/15/10 (d)	100,000		100,500
9.5% 7/15/13 (d)	90,000		90,675
Western Resources, Inc. 9.75% 5/1/07	155,000		173,600
Williams Companies, Inc.:
6.5% 8/1/06	100,000		98,000
6.75% 1/15/06	125,000		122,188
7.125% 9/1/11	775,000		755,625
7.625% 7/15/19	175,000		169,750
7.75% 6/15/31	40,000		38,800
7.875% 9/1/21	140,000		137,550
8.125% 3/15/12	85,000		87,125
8.625% 6/1/10	150,000		156,938
Corporate Bonds - continued
	Principal Amount		Value (Note 1)
Nonconvertible Bonds - continued
UTILITIES - continued
Multi-Utilities & Unregulated Power - continued
Williams Companies, Inc.: - continued
8.75% 3/15/32	$ 40,000		$ 41,600
9.25% 3/15/04	100,000		102,500
			3,548,282
TOTAL UTILITIES			8,167,219
TOTAL NONCONVERTIBLE BONDS			41,696,131
TOTAL CORPORATE BONDS (Cost $121,886,913)		127,651,272
Money Market Funds - 1.1%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	60,326,080		60,326,080
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	32,303,550		32,303,550
TOTAL MONEY MARKET FUNDS (Cost $92,629,630)		92,629,630

TOTAL INVESTMENT PORTFOLIO - 100.3%

(Cost $7,969,528,776)

8,735,375,176

NET OTHER ASSETS - (0.3)%			(25,414,714)
NET ASSETS - 100%		$ 8,709,960,462

Security Type Abbreviations

PIERS - Preferred Income Equity Redeemable Securities

PRIDES - Preferred Redeemable Increased Dividend Equity Securities

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(c) Debt obligation initially issued in zero coupon form which converts to coupon form at a specified rate and date. The rate shown is the rate at period end.

(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $1,029,757,674 and $1,202,846,718, respectively.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $127,840,000 all of which will expire on December 31, 2010.

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

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $30,978,451) (cost $7,969,528,776) - See accompanying schedule		$ 8,735,375,176
Cash		276,744
Receivable for investments sold		17,100,070
Receivable for fund shares sold		4,762,996
Dividends receivable		12,443,826
Interest receivable		1,618,385
Redemption fees receivable		10
Other receivables		57,320
Total assets		8,771,634,527

Liabilities
Payable for investments purchased Regular delivery	$ 14,066,644
Delayed delivery	204,000
Payable for fund shares redeemed	10,926,627
Accrued management fee	3,552,359
Distribution fees payable	194,119
Other payables and accrued expenses	426,766
Collateral on securities loaned, at value	32,303,550
Total liabilities		61,674,065

Net Assets		$ 8,709,960,462
Net Assets consist of:
Paid in capital		$ 7,986,611,076
Undistributed net investment income		76,409,653
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(118,909,772)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		765,849,505
Net Assets		$ 8,709,960,462
Initial Class: Net Asset Value, offering price and redemption price per share ($7,244,489,053 ÷ 367,912,682 shares)		$ 19.69
Service Class: Net Asset Value, offering price and redemption price per share ($880,794,139 ÷ 44,857,125 shares)		$ 19.64
Service Class 2: Net Asset Value, offering price and redemption price per share ($583,761,981 ÷ 29,900,210 shares)		$ 19.52
Service Class 2R: Net Asset Value, offering price and redemption price per share ($915,289 ÷ 46,982 shares)		$ 19.48

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)
Investment Income
Dividends		$ 97,852,702
Interest		4,036,717
Security lending		124,537
Total income		102,013,956

Expenses
Management fee	$ 19,332,228
Transfer agent fees	2,742,609
Distribution fees	972,967
Accounting and security lending fees	399,253
Non-interested trustees' compensation	16,114
Depreciation in deferred trustee compensation account	(22,360)
Custodian fees and expenses	80,861
Audit	47,943
Legal	12,220
Interest	21,208
Miscellaneous	169,601
Total expenses before reductions	23,772,644
Expense reductions	(478,976)	23,293,668
Net investment income (loss)		78,720,288
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	16,944,528
Foreign currency transactions	29,074
Total net realized gain (loss)		16,973,602
Change in net unrealized appreciation (depreciation) on: Investment securities	728,855,641
Assets and liabilities in foreign currencies	(23,730)
Total change in net unrealized appreciation (depreciation)		728,831,911
Net gain (loss)		745,805,513
Net increase (decrease) in net assets resulting from operations		$ 824,525,801

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

Semiannual Report

Fidelity Variable Insurance Products: Equity-Income Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003	Year ended December 31,
Increase (Decrease) in Net Assets	(Unaudited)	2002
Operations
Net investment income (loss)	$ 78,720,288	$ 156,904,928
Net realized gain (loss)	16,973,602	(136,493,863)
Change in net unrealized appreciation (depreciation)	728,831,911	(1,811,259,080)
Net increase (decrease) in net assets resulting from operations	824,525,801	(1,790,848,015)
Distributions to shareholders from net investment income	(152,426,442)	(162,342,476)
Distributions to shareholders from net realized gain	-	(222,300,466)
Total distributions	(152,426,442)	(384,642,942)
Share transactions - net increase (decrease)	(33,697,536)	(71,251,438)
Redemption fees	906	259
Total increase (decrease) in net assets	638,402,729	(2,246,742,136)

Net Assets
Beginning of period	8,071,557,733	10,318,299,869
End of period (including undistributed net investment income of $76,409,653 and undistributed net investment income of $154,882,636, respectively)	$ 8,709,960,462	$ 8,071,557,733

Other Information:
Share Transactions	Six months ended June 30, 2003
	Initial Class	Service Class	Service Class 2	Service Class 2R
Shares Sold	16,976,465	6,193,408	9,178,141	54,310
Reinvested	7,869,268	847,723	452,997	1,082
Redeemed	(36,646,287)	(4,812,738)	(2,154,576)	(34,576)
Net increase (decrease)	(11,800,554)	2,228,393	7,476,562	20,816

Dollars Sold	$ 312,325,235	$ 113,561,617	$ 165,872,414	$ 1,024,730
Reinvested	130,865,933	14,063,717	7,478,977	17,815
Redeemed	(653,424,428)	(86,066,956)	(38,852,327)	(564,263)
Net increase (decrease)	$ (210,233,260)	$ 41,558,378	$ 134,499,064	$ 478,282

Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R^A
Shares Sold	55,802,238	11,112,619	17,439,374	30,522
Reinvested	16,371,256	1,504,858	437,787	-
Redeemed	(99,410,660)	(6,864,417)	(5,462,708)	(4,356)
Net increase (decrease)	(27,237,166)	5,753,060	12,414,453	26,166

Dollars Sold	$ 1,171,193,465	$ 231,985,655	$ 345,877,938	$ 576,334
Reinvested	343,960,099	31,541,832	9,140,991	-
Redeemed	(1,967,582,454)	(132,366,206)	(105,497,795)	(81,297)
Net increase (decrease)	$ (452,428,890)	$ 131,161,281	$ 249,521,134	$ 495,037

Distributions	Six months ended June 30, 2003
	Initial Class	Service Class	Service Class 2	Service Class 2R
From net investment income	$ 130,865,933	$ 14,063,717	$ 7,478,977	$ 17,815
From net realized gain	-	-	-	-
Total	$ 130,865,933	$ 14,063,717	$ 7,478,977	$ 17,815

	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R^A
From net investment income	$ 145,677,218	$ 12,920,750	$ 3,744,508	$ -
From net realized gain	198,282,881	18,621,082	5,396,503	-
Total	$ 343,960,099	$ 31,541,832	$ 9,141,011	$ -

^A For the period April 24, 2002 (commencement of sales of shares) to December 31, 2002.

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

Equity-Income Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.16	$ 22.75	$ 25.52	$ 25.71	$ 25.42	$ 24.28
Income from Investment Operations
Net investment income (loss)^E	.18	.34	.34	.40	.41	.38
Net realized and unrealized gain (loss)	1.70	(4.08)	(1.51)	1.46	1.10	2.31
Total from investment operations	1.88	(3.74)	(1.17)	1.86	1.51	2.69
Distributions from net investment income	(.35)	(.36)	(.42)	(.44)	(.38)	(.34)
Distributions from net realized gain	-	(.49)	(1.18)	(1.61)	(.84)	(1.21)
Total distributions	(.35)	(.85)	(1.60)	(2.05)	(1.22)	(1.55)
Redemption fees added to paid in capital	- ^E,G	- ^E,G	-	-	-	-
Net asset value, end of period	$ 19.69	$ 18.16	$ 22.75	$ 25.52	$ 25.71	$ 25.42
Total Return^B,C,D	10.71%	(16.95)%	(4.96)%	8.42%	6.33%	11.63%
Ratios to Average Net Assets^F
Expenses before expense reductions	.57%^A	.57%	.58%	.56%	.57%	.58%
Expenses net of voluntary waivers, if any	.57%^A	.57%	.58%	.56%	.57%	.58%
Expenses net of all reductions	.56%^A	.56%	.57%	.55%	.56%	.57%
Net investment income (loss)	1.99%^A	1.70%	1.47%	1.68%	1.57%	1.58%
Supplemental Data
Net assets, end of period (000 omitted)	$ 7,244,489	$ 6,895,940	$ 9,256,205	$ 9,969,086	$ 11,014,291	$ 11,409,912
Portfolio turnover rate	26%^A	25%	24%	22%	27%	28%

^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.

^GAmount represents less than $.01 per-share.

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 18.10	$ 22.67	$ 25.45	$ 25.66	$ 25.39	$ 24.27
Income from Investment Operations
Net investment income (loss)^E	.17	.32	.31	.37	.38	.36
Net realized and unrealized gain (loss)	1.70	(4.06)	(1.51)	1.46	1.11	2.31
Total from investment operations	1.87	(3.74)	(1.20)	1.83	1.49	2.67
Distributions from net investment income	(.33)	(.34)	(.40)	(.43)	(.38)	(.34)
Distributions from net realized gain	-	(.49)	(1.18)	(1.61)	(.84)	(1.21)
Total distributions	(.33)	(.83)	(1.58)	(2.04)	(1.22)	(1.55)
Redemption fees added to paid in capital	- ^E,G	- ^E,G	-	-	-	-
Net asset value, end of period	$ 19.64	$ 18.10	$ 22.67	$ 25.45	$ 25.66	$ 25.39
Total Return^B,C,D	10.67%	(17.00)%	(5.09)%	8.30%	6.25%	11.54%
Ratios to Average Net Assets^F
Expenses before expense reductions	.67%^A	.67%	.68%	.66%	.67%	.68%
Expenses net of voluntary waivers, if any	.67%^A	.67%	.68%	.66%	.67%	.68%
Expenses net of all reductions	.66%^A	.66%	.67%	.65%	.66%	.67%
Net investment income (loss)	1.89%^A	1.60%	1.37%	1.58%	1.47%	1.51%
Supplemental Data
Net assets, end of period (000 omitted)	$ 880,794	$ 771,516	$ 836,017	$ 634,897	$ 437,332	$ 225,145
Portfolio turnover rate	26%^A	25%	24%	22%	27%	28%

^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.

^GAmount represents less than $.01 per-share.

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

Equity-Income Portfolio

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 18.00	$ 22.59	$ 25.41	$ 25.18
Income from Investment Operations
Net investment income (loss)^E	.16	.28	.27	.32
Net realized and unrealized gain (loss)	1.68	(4.04)	(1.50)	1.95
Total from investment operations	1.84	(3.76)	(1.23)	2.27
Distributions from net investment income	(.32)	(.34)	(.41)	(.43)
Distributions from net realized gain	-	(.49)	(1.18)	(1.61)
Total distributions	(.32)	(.83)	(1.59)	(2.04)
Redemption fees added to paid in capital	- ^E,G	- ^E,G	-	-
Net asset value, end of period	$ 19.52	$ 18.00	$ 22.59	$ 25.41
Total Return^B,C,D	10.55%	(17.15)%	(5.23)%	10.19%
Ratios to Average Net Assets^F
Expenses before expense reductions	.82%^A	.83%	.84%	.83%^A
Expenses net of voluntary waivers, if any	.82%^A	.83%	.84%	.83%^A
Expenses net of all reductions	.81%^A	.82%	.83%	.82%^A
Net investment income (loss)	1.74%^A	1.44%	1.21%	1.41%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 583,762	$ 403,632	$ 226,078	$ 39,911
Portfolio turnover rate	26%^A	25%	24%	22%

^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 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 any voluntary 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.

^GAmount represents less than $.01 per-share.

^HFor the period January 12, 2000 (commencement of sales of shares) to December 31, 2000.

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002^F
Selected Per-Share Data
Net asset value, beginning of period	$ 17.99	$ 21.82
Income from Investment Operations
Net investment income (loss)^E	.15	.18
Net realized and unrealized gain (loss)	1.69	(4.01)
Total from investment operations	1.84	(3.83)
Distributions from net investment income	(.35)	-
Redemption fees added to paid in capital ^E,H	-	-
Net asset value, end of period	$ 19.48	$ 17.99
Total Return^B,C,D	10.58%	(17.55)%
Ratios to Average Net Assets^G
Expenses before expense reductions	.82%^A	.85%^A
Expenses net of voluntary waivers, if any	.82%^A	.85%^A
Expenses net of all reductions	.81%^A	.84%^A
Net investment income (loss)	1.74%^A	1.45%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 915	$ 471
Portfolio turnover rate	26%^A	25%

^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 For the period April 24, 2002 (commencement of sale of shares) to December 31, 2002.

^HAmount represents less than $.01 per-share.

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

Equity-Income Portfolio

Fidelity Variable Insurance Products: Growth Portfolio

Investment Summary

Top Five Stocks as of June 30, 2003
	% of fund's net assets
Pfizer, Inc.	4.2
Microsoft Corp.	3.8
Johnson & Johnson	3.1
Merck & Co., Inc.	2.6
Wal-Mart Stores, Inc.	2.5
	16.2
Top Five Market Sectors as of June 30, 2003
	% of fund's net assets
Information Technology	33.2
Health Care	22.4
Consumer Discretionary	12.9
Financials	12.0
Consumer Staples	5.8

Asset Allocation as of June 30, 2003
% of fund's net assets *
	Stocks	99.5%
	Short-Term Investments and Net Other Assets	0.5%

* Foreign investments

7.0%

Semiannual Report

Fidelity Variable Insurance Products: Growth Portfolio

Investments June 30, 2003 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.5%
	Shares		Value (Note 1)
CONSUMER DISCRETIONARY - 12.9%
Hotels, Restaurants & Leisure - 0.5%
Brinker International, Inc. (a)	991,850		$ 35,726,437
Darden Restaurants, Inc.	462,900		8,785,842
			44,512,279
Household Durables - 0.8%
Centex Corp.	91,600		7,125,564
KB Home	106,100		6,576,078
Leggett & Platt, Inc.	856,400		17,556,200
Maytag Corp.	241,970		5,908,907
Pulte Homes, Inc.	98,000		6,042,680
Whirlpool Corp.	487,400		31,047,380
			74,256,809
Internet & Catalog Retail - 0.3%
eBay, Inc. (a)	296,600		30,899,788
Leisure Equipment & Products - 0.4%
Mattel, Inc.	1,760,600		33,310,552
Media - 6.7%
AOL Time Warner, Inc. (a)	7,776,900		125,130,321
Comcast Corp.:
Class A (a)	643,124		19,409,482
Class A (special) (a)	1,843,900		53,159,637
Cox Communications, Inc. Class A (a)	1,319,700		42,098,430
E.W. Scripps Co. Class A	495,500		43,960,760
Fox Entertainment Group, Inc. Class A (a)	1,772,500		51,012,550
General Motors Corp. Class H (a)	3,571,700		45,753,477
Interpublic Group of Companies, Inc.	1,705,600		22,820,928
Lamar Advertising Co. Class A (a)	848,700		29,882,727
Pixar (a)	450,000		27,378,000
Scholastic Corp. (a)	308,015		9,172,687
Tribune Co.	544,500		26,299,350
Univision Communications, Inc. Class A (a)	1,220,600		37,106,240
Viacom, Inc. Class B (non-vtg.) (a)	1,081,430		47,215,234
Walt Disney Co.	1,344,200		26,547,950
			606,947,773
Multiline Retail - 0.3%
Saks, Inc. (a)	2,452,800		23,792,160
Specialty Retail - 3.9%
AutoZone, Inc. (a)	103,200		7,840,104
Best Buy Co., Inc. (a)	1,529,000		67,153,680
Borders Group, Inc. (a)	556,400		9,798,204
Gap, Inc.	1,299,500		24,378,620
Home Depot, Inc.	3,996,400		132,360,768
Limited Brands, Inc.	1,965,700		30,468,350
Lowe's Companies, Inc.	1,333,430		57,270,819
Weight Watchers International, Inc. (a)	472,700		21,503,123
			350,773,668
TOTAL CONSUMER DISCRETIONARY			1,164,493,029

	Shares		Value (Note 1)
CONSUMER STAPLES - 5.8%
Beverages - 1.4%
PepsiCo, Inc.	945,500		$ 42,074,750
The Coca-Cola Co.	1,858,300		86,243,703
			128,318,453
Food & Staples Retailing - 3.1%
Sysco Corp.	1,600,100		48,067,004
Wal-Mart Stores, Inc.	4,238,800		227,496,396
			275,563,400
Household Products - 0.8%
Procter & Gamble Co.	784,860		69,993,815
Personal Products - 0.5%
Gillette Co.	1,370,100		43,651,386
TOTAL CONSUMER STAPLES			517,527,054
ENERGY - 5.4%
Energy Equipment & Services - 4.6%
Baker Hughes, Inc.	1,181,770		39,672,019
BJ Services Co. (a)	1,200,360		44,845,450
Cooper Cameron Corp. (a)	720,600		36,303,828
ENSCO International, Inc.	784,700		21,108,430
Global Industries Ltd. (a)	2,926,465		14,105,561
Grant Prideco, Inc. (a)	504,400		5,926,700
Nabors Industries Ltd. (a)	594,610		23,516,826
National-Oilwell, Inc. (a)	1,114,600		24,521,200
Noble Corp. (a)	908,400		31,158,120
Schlumberger Ltd. (NY Shares)	807,300		38,403,261
Smith International, Inc. (a)	887,300		32,599,402
Tidewater, Inc.	765,200		22,473,924
Transocean, Inc.	404,400		8,884,668
Varco International, Inc. (a)	1,266,100		24,815,560
Weatherford International Ltd. (a)	1,042,440		43,678,236
			412,013,185
Oil & Gas - 0.8%
Apache Corp.	445,410		28,978,375
Burlington Resources, Inc.	272,800		14,750,296
YUKOS Corp. sponsored ADR	458,625		25,522,481
			69,251,152
TOTAL ENERGY			481,264,337
FINANCIALS - 12.0%
Capital Markets - 2.3%
Bank of New York Co., Inc.	957,300		27,522,375
Charles Schwab Corp.	4,444,750		44,847,528
Goldman Sachs Group, Inc.	508,000		42,545,000
Merrill Lynch & Co., Inc.	964,600		45,027,528
Morgan Stanley	853,300		36,478,575
Nomura Holdings, Inc.	983,000		12,516,434
			208,937,440
Common Stocks - continued
	Shares		Value (Note 1)
FINANCIALS - continued
Commercial Banks - 2.3%
Bank of America Corp.	622,500		$ 49,196,175
Bank One Corp.	2,207,690		82,081,914
Fifth Third Bancorp	1,026,300		58,848,042
UCBH Holdings, Inc.	673,700		19,321,716
			209,447,847
Consumer Finance - 1.9%
American Express Co.	1,210,900		50,627,729
MBNA Corp.	3,775,730		78,686,213
SLM Corp.	1,086,300		42,550,371
			171,864,313
Diversified Financial Services - 0.8%
Citigroup, Inc.	1,634,710		69,965,588
Insurance - 3.4%
ACE Ltd.	1,202,200		41,223,438
AFLAC, Inc.	1,573,720		48,391,890
American International Group, Inc.	3,373,366		186,142,336
Travelers Property Casualty Corp.:
Class A	145,447		2,312,607
Class B	1,867,830		29,455,679
			307,525,950
Real Estate - 0.0%
Corrections Corp. of America (a)	7,453		188,784
Thrifts & Mortgage Finance - 1.3%
Fannie Mae	1,654,600		111,586,224
TOTAL FINANCIALS			1,079,516,146
HEALTH CARE - 22.4%
Biotechnology - 3.5%
Amgen, Inc. (a)	2,114,200		140,467,448
Biogen, Inc. (a)	16,600		630,800
Cephalon, Inc. (a)	567,700		23,366,532
CSL Ltd.	917,900		7,388,106
Genentech, Inc. (a)	626,400		45,175,968
Geneprot, Inc. (d)	826,000		2,891,000
Genzyme Corp. - General Division (a)	501,500		20,962,700
IDEC Pharmaceuticals Corp. (a)	725,900		24,680,600
ImClone Systems, Inc. (a)	653,447		20,661,994
MedImmune, Inc. (a)	602,600		21,916,562
Tanox, Inc. (a)	523,600		8,403,780
			316,545,490
Health Care Equipment & Supplies - 3.1%
Alcon, Inc.	1,302,700		59,533,390
Boston Scientific Corp. (a)	1,117,700		68,291,470
Medtronic, Inc.	1,929,700		92,567,709
Orthologic Corp. (a)	3,336		15,312
St. Jude Medical, Inc. (a)	1,019,400		58,615,500
			279,023,381

	Shares		Value (Note 1)
Health Care Providers & Services - 0.6%
McKesson Corp.	1,209,600		$ 43,231,104
WebMD Corp. (a)	884,060		9,574,370
			52,805,474
Pharmaceuticals - 15.2%
Abbott Laboratories	2,938,100		128,571,256
Barr Laboratories, Inc. (a)	779,550		51,060,525
Eli Lilly & Co.	645,770		44,538,757
Johnson & Johnson	5,467,620		282,675,954
Merck & Co., Inc.	3,810,860		230,747,573
Pfizer, Inc.	11,090,325		378,734,594
Schering-Plough Corp.	3,851,900		71,645,340
Teva Pharmaceutical Industries Ltd. sponsored ADR	708,577		40,339,289
Wyeth	3,049,000		138,881,950
			1,367,195,238
TOTAL HEALTH CARE			2,015,569,583
INDUSTRIALS - 5.3%
Aerospace & Defense - 1.1%
Goodrich Corp.	1,061,300		22,287,300
Lockheed Martin Corp.	786,220		37,400,485
Northrop Grumman Corp.	465,200		40,142,108
			99,829,893
Airlines - 0.6%
Delta Air Lines, Inc.	2,001,800		29,386,424
Northwest Airlines Corp. (a)	2,108,986		23,810,452
			53,196,876
Commercial Services & Supplies - 1.1%
ChoicePoint, Inc. (a)	242,300		8,364,196
Corinthian Colleges, Inc. (a)	462,600		22,468,482
Monster Worldwide, Inc.	1,282,889		25,311,400
Robert Half International, Inc. (a)	2,212,700		41,908,538
			98,052,616
Industrial Conglomerates - 2.4%
3M Co.	201,100		25,937,878
General Electric Co.	3,635,440		104,264,419
Tyco International Ltd.	4,780,300		90,730,094
			220,932,391
Machinery - 0.1%
Joy Global, Inc. (a)	385,600		5,695,312
TOTAL INDUSTRIALS			477,707,088
INFORMATION TECHNOLOGY - 33.2%
Communications Equipment - 4.6%
3Com Corp. (a)	2,736,300		12,805,884
Advanced Fibre Communications, Inc. (a)	991,100		16,125,197
Cisco Systems, Inc. (a)	5,544,920		92,544,715
Common Stocks - continued
	Shares		Value (Note 1)
INFORMATION TECHNOLOGY - continued
Communications Equipment - continued
Emulex Corp. (a)	149,500		$ 3,404,115
Foundry Networks, Inc. (a)	1,539,100		22,163,040
Harris Corp.	1,192,900		35,846,645
Juniper Networks, Inc. (a)	2,984,900		36,923,213
Motorola, Inc.	5,924,050		55,863,792
Nortel Networks Corp. (a)	17,706,000		47,806,200
QUALCOMM, Inc.	668,800		23,909,600
Scientific-Atlanta, Inc.	958,300		22,845,872
Telefonaktiebolaget LM Ericsson ADR (a)	4,073,400		43,300,242
			413,538,515
Computers & Peripherals - 4.0%
Apple Computer, Inc. (a)	1,614,100		30,861,592
ATI Technologies, Inc. (a)	1,222,400		12,153,257
Dell Computer Corp. (a)	5,549,500		177,362,020
EMC Corp. (a)	919,300		9,625,071
International Business Machines Corp.	316,570		26,117,025
Lexmark International, Inc. Class A (a)	702,400		49,708,848
Network Appliance, Inc. (a)	1,440,300		23,347,263
Sun Microsystems, Inc. (a)	6,957,500		32,004,500
			361,179,576
Electronic Equipment & Instruments - 2.1%
Agilent Technologies, Inc. (a)	3,235,860		63,261,063
Amphenol Corp. Class A (a)	511,691		23,957,373
Celestica, Inc. (sub. vtg.) (a)	1,222,530		19,157,022
Flextronics International Ltd. (a)	856,400		8,897,996
National Instruments Corp. (a)	472,451		17,849,199
Sanmina-SCI Corp. (a)	4,656,200		29,380,622
Waters Corp. (a)	832,300		24,244,899
			186,748,174
Internet Software & Services - 1.1%
EarthLink, Inc. (a)	1,541,175		12,159,871
Overture Services, Inc. (a)	1,500,637		27,206,549
Yahoo!, Inc. (a)	1,922,788		62,990,535
			102,356,955
IT Services - 1.8%
Concord EFS, Inc. (a)	589,900		8,683,328
First Data Corp.	2,202,400		91,267,456
Paychex, Inc.	2,171,900		63,658,389
			163,609,173
Semiconductors & Semiconductor Equipment - 12.5%
Advanced Micro Devices, Inc. (a)	3,202,400		20,527,384
Agere Systems, Inc.:
Class A (a)	10,101,845		23,537,299
Class B (a)	11,223,709		25,814,531
Altera Corp. (a)	1,352,100		22,174,440
Analog Devices, Inc. (a)	1,550,700		53,995,374
Applied Materials, Inc. (a)	4,140,600		65,669,916
ASML Holding NV (NY Shares) (a)	7,007,587		66,992,532

	Shares		Value (Note 1)
Atmel Corp. (a)	7,940,400		$ 20,089,212
Broadcom Corp. Class A (a)	2,142,700		53,374,657
Cabot Microelectronics Corp. (a)	183,200		9,246,104
Chartered Semiconductor Manufacturing Ltd. ADR (a)	1,653,600		8,516,040
Cypress Semiconductor Corp. (a)	1,827,700		21,932,400
Integrated Circuit Systems, Inc. (a)	410,800		12,911,444
Integrated Device Technology, Inc. (a)	2,430,100		26,852,605
Intel Corp.	7,907,700		164,353,637
Intersil Corp. Class A (a)	1,431,301		38,086,920
KLA-Tencor Corp. (a)	953,920		44,347,741
Lam Research Corp. (a)	2,537,800		46,213,338
LSI Logic Corp. (a)	2,769,000		19,604,520
Marvell Technology Group Ltd. (a)	1,155,400		39,711,098
Micron Technology, Inc. (a)	4,519,400		52,560,622
National Semiconductor Corp. (a)	582,200		11,480,984
NVIDIA Corp. (a)	1,970,283		45,336,212
QLogic Corp. (a)	524,437		25,346,040
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR (a)	5,423,232		54,666,179
Teradyne, Inc. (a)	2,072,400		35,873,244
Texas Instruments, Inc.	4,084,650		71,889,840
United Microelectronics Corp. sponsored ADR (a)	5,672,400		21,271,500
Xilinx, Inc. (a)	739,500		18,716,745
			1,121,092,558
Software - 7.1%
Adobe Systems, Inc.	1,295,600		41,549,892
Business Objects SA sponsored ADR (a)	396,100		8,694,395
Cadence Design Systems, Inc. (a)	1,955,800		23,586,948
Compuware Corp. (a)	3,338,056		19,260,583
Electronic Arts, Inc. (a)	913,884		67,618,277
Hyperion Solutions Corp. (a)	287,607		9,709,612
Microsoft Corp.	13,295,677		340,502,288
Nintendo Co. Ltd.	139,900		10,204,086
Synopsys, Inc. (a)	662,478		40,974,264
Take-Two Interactive Software, Inc. (a)	1,168,500		33,115,290
VERITAS Software Corp. (a)	1,482,331		42,498,430
			637,714,065
TOTAL INFORMATION TECHNOLOGY			2,986,239,016
MATERIALS - 1.8%
Chemicals - 0.7%
Dow Chemical Co.	846,900		26,220,024
Lyondell Chemical Co.	3,010,600		40,733,418
			66,953,442
Construction Materials - 0.3%
Florida Rock Industries, Inc.	582,600		24,049,728
Containers & Packaging - 0.2%
Owens-Illinois, Inc. (a)	1,034,200		14,240,934
Common Stocks - continued
	Shares		Value (Note 1)
MATERIALS - continued
Metals & Mining - 0.6%
Arch Coal, Inc.	949,500		$ 21,819,510
CONSOL Energy, Inc.	384,500		8,743,530
Massey Energy Co.	1,174,400		15,443,360
Peabody Energy Corp.	264,200		8,874,478
			54,880,878
TOTAL MATERIALS			160,124,982
TELECOMMUNICATION SERVICES - 0.7%
Wireless Telecommunication Services - 0.7%
Nextel Communications, Inc. Class A (a)	1,386,500		25,067,920
Vodafone Group PLC sponsored ADR	1,826,400		35,888,760
			60,956,680
TOTAL COMMON STOCKS (Cost $7,536,439,726)		8,943,397,915
Convertible Preferred Stocks - 0.0%

INFORMATION TECHNOLOGY - 0.0%
Communications Equipment - 0.0%
Chorum Technologies Series E (d)	88,646		88,646
TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $1,528,257)		88,646

Convertible Bonds - 0.0%
	Principal Amount
INFORMATION TECHNOLOGY - 0.0%
Semiconductors & Semiconductor Equipment - 0.0%
Micron Technology, Inc. 2.5% 2/1/10 (c)	$ 1,523,000		1,827,600
TOTAL CONVERTIBLE BONDS (Cost $1,523,000)		1,827,600

Money Market Funds - 1.3%
	Shares
Fidelity Cash Central Fund, 1.18% (b)	105,859,455		105,859,455
Fidelity Securities Lending Cash Central Fund, 1.19% (b)	13,809,300		13,809,300
TOTAL MONEY MARKET FUNDS (Cost $119,668,755)		119,668,755
TOTAL INVESTMENT PORTFOLIO - 100.8% (Cost $7,659,159,738)			9,064,982,916
NET OTHER ASSETS - (0.8)%			(73,873,673)
NET ASSETS - 100%		$ 8,991,109,243

Legend

(a) Non-income producing

(b) The rate quoted is the annualized seven-day yield of the fund at period end. A complete listing of the fund's holdings as of its most recent fiscal year end is available upon request.

(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost
Chorum Technologies Series E	9/19/00	$ 1,528,257
Geneprot, Inc.	7/7/00	$ 4,543,000

Other Information

Purchases and sales of securities, other than short-term securities, aggregated $2,452,653,342 and $2,679,967,996, respectively.

Income Tax Information

At December 31, 2002, the fund had a capital loss carryforward of approximately $4,287,791,000 of which $2,090,079,000 and $2,197,712,000 will expire on December 31, 2009 and 2010, respectively.

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

Growth Portfolio

Fidelity Variable Insurance Products: Growth Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2003 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $13,280,873) (cost $7,659,159,738) - See accompanying schedule		$ 9,064,982,916
Foreign currency held at value (cost $160,261)		160,140
Receivable for investments sold		6,892,466
Receivable for fund shares sold		5,213,511
Dividends receivable		6,189,174
Interest receivable		56,806
Redemption fees receivable		10
Other receivables		1,148,940
Total assets		9,084,643,963

Liabilities
Payable for investments purchased	$ 53,159,380
Payable for fund shares redeemed	21,581,186
Accrued management fee	4,435,200
Distribution fees payable	173,693
Other payables and accrued expenses	375,961
Collateral on securities loaned, at value	13,809,300
Total liabilities		93,534,720

Net Assets		$ 8,991,109,243
Net Assets consist of:
Paid in capital		$ 12,320,315,028
Undistributed net investment income		12,944,578
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(4,747,970,767)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		1,405,820,404
Net Assets		$ 8,991,109,243

Initial Class: Net Asset Value, offering price and redemption price per share ($7,444,464,668 ÷ 280,856,552 shares)		$ 26.51

Service Class: Net Asset Value, offering price and redemption price per share ($1,184,483,129 ÷ 44,846,953 shares)		$ 26.41

Service Class 2: Net Asset Value, offering price and redemption price per share ($361,651,753 ÷ 13,770,302 shares)		$ 26.26

Service Class 2R: Net Asset Value, offering price and redemption price per share ($509,693 ÷ 19,453 shares)		$ 26.20

Statement of Operations

	Six months ended June 30, 2003 (Unaudited)

Investment Income
Dividends		$ 39,738,324
Interest		714,237
Security lending		130,432
Total income		40,582,993

Expenses
Management fee	$ 24,297,641
Transfer agent fees	2,859,164
Distribution fees	889,189
Accounting and security lending fees	408,147
Non-interested trustees' compensation	15,819
Depreciation in deferred trustee compensation account	(36,778)
Custodian fees and expenses	65,677
Audit	46,742
Legal	14,849
Interest	10,486
Miscellaneous	161,416
Total expenses before reductions	28,732,352
Expense reductions	(1,413,315)	27,319,037
Net investment income (loss)		13,263,956
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities	(313,113,971)
Foreign currency transactions	(56,481)
Total net realized gain (loss)		(313,170,452)
Change in net unrealized appreciation (depreciation) on: Investment securities	1,361,132,642
Assets and liabilities in foreign currencies	(619)
Total change in net unrealized appreciation (depreciation)		1,361,132,023
Net gain (loss)		1,047,961,571
Net increase (decrease) in net assets resulting from operations		$ 1,061,225,527

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

Semiannual Report

Fidelity Variable Insurance Products: Growth Portfolio
Financial Statements - continued

Statement of Changes in Net Assets

	Six months ended June 30, 2003 (Unaudited)	Year ended December 31, 2002
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 13,263,956	$ 24,471,733
Net realized gain (loss)	(313,170,452)	(2,263,336,460)
Change in net unrealized appreciation (depreciation)	1,361,132,023	(1,669,661,651)
Net increase (decrease) in net assets resulting from operations	1,061,225,527	(3,908,526,378)
Distributions to shareholders from net investment income	(23,104,405)	(25,839,894)
Share transactions - net increase (decrease)	(360,651,094)	(1,057,887,768)
Redemption fees	435	134
Total increase (decrease) in net assets	677,470,463	(4,992,253,906)
Net Assets
Beginning of period	8,313,638,780	13,305,892,686
End of period (including undistributed net investment income of $12,944,578 and undistributed net investment income of $22,669,639, respectively)	$ 8,991,109,243	$ 8,313,638,780

Other Information:
Share Transactions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
Shares Sold	12,260,756	4,550,069	5,828,400	14,693
Reinvested	941,499	102,591	14,708	31
Redeemed	(31,718,625)	(5,161,367)	(2,350,846)	(4,340)
Net increase (decrease)	(18,516,370)	(508,707)	3,492,262	10,384
Dollars Sold	$ 297,648,018	$ 110,622,660	$ 140,187,600	$ 371,400
Reinvested	20,552,932	2,232,378	318,424	671
Redeemed	(755,505,403)	(121,473,153)	(55,502,416)	(104,205)
Net increase (decrease)	$ (437,304,453)	$ (8,618,115)	$ 85,003,608	$ 267,866
Share Transactions	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
Shares Sold	27,701,250	7,846,255	8,720,137	9,679
Reinvested	745,326	62,377	7,951	-
Redeemed	(69,998,416)	(12,009,200)	(4,193,267)	(610)
Net increase (decrease)	(41,551,840)	(4,100,568)	4,534,821	9,069
Dollars Sold	$ 783,515,852	$ 225,005,883	$ 237,415,474	$ 256,038
Reinvested	23,619,367	1,970,483	250,044	-
Redeemed	(1,899,343,201)	(321,589,917)	(108,973,421)	(14,370)
Net increase (decrease)	$ (1,092,207,982)	$ (94,613,551)	$ 128,692,097	$ 241,668
Distributions	Six months ended June 30, 2003 (Unaudited)
	Initial Class	Service Class	Service Class 2	Service Class 2R
From net investment income	$ 20,552,932	$ 2,232,378	$ 318,424	$ 671
From net realized gain	-	-	-	-
Total	$ 20,552,932	$ 2,232,378	$ 318,424	$ 671
	Year ended December 31, 2002
	Initial Class	Service Class	Service Class 2	Service Class 2R ^A
From net investment income	$ 23,619,367	$ 1,970,483	$ 250,044	$ -
From net realized gain	-	-	-	-
Total	$ 23,619,367	$ 1,970,483	$ 250,044	$ -

^AFor the period April 24, 2002 (commencement of sale of shares) to December 31, 2002.

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

Semiannual Report

Financial Highlights - Initial Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 23.44	$ 33.61	$ 43.66	$ 54.93	$ 44.87	$ 37.10
Income from Investment Operations
Net investment income (loss) ^E	.04	.07	.07	.03	.07	.08
Net realized and unrealized gain (loss)	3.10	(10.17)	(7.27)	(5.27)	15.10	12.85
Total from investment operations	3.14	(10.10)	(7.20)	(5.24)	15.17	12.93
Distributions from net investment income	(.07)	(.07)	(.03)	(.06)	(.08)	(.19)
Distributions from net realized gain	-	-	(2.82)	(5.97)	(5.03)	(4.97)
Total distributions	(.07)	(.07)	(2.85)	(6.03)	(5.11)	(5.16)
Redemption fees added to paid in capital^{E, G}	-	-	-	-	-	-
Net asset value, end of period	$ 26.51	$ 23.44	$ 33.61	$ 43.66	$ 54.93	$ 44.87
Total Return ^{B, C, D}	13.46%	(30.10)%	(17.67)%	(10.96)%	37.44%	39.49%
Ratios to Average Net Assets ^F
Expenses before expense reductions	.67% ^A	.67%	.68%	.65%	.66%	.68%
Expenses net of voluntary waivers, if any	.67% ^A	.67%	.68%	.65%	.66%	.68%
Expenses net of all reductions	.63% ^A	.61%	.65%	.64%	.65%	.66%
Net investment income (loss)	.34% ^A	.25%	.19%	.07%	.14%	.21%
Supplemental Data
Net assets, end of period (000 omitted)	$ 7,444,465	$ 7,016,147	$ 11,458,659	$ 15,517,271	$ 17,142,411	$ 11,243,824
Portfolio turnover rate	60% ^A	90%	105%	103%	84%	123%

Financial Highlights - Service Class

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000	1999	1998
Selected Per-Share Data
Net asset value, beginning of period	$ 23.34	$ 33.48	$ 43.51	$ 54.80	$ 44.82	$ 37.09
Income from Investment Operations
Net investment income (loss) ^E	.03	.04	.03	(.02)	.02	.06
Net realized and unrealized gain (loss)	3.09	(10.14)	(7.24)	(5.25)	15.07	12.83
Total from investment operations	3.12	(10.10)	(7.21)	(5.27)	15.09	12.89
Distributions from net investment income	(.05)	(.04)	-	(.05)	(.08)	(.19)
Distributions from net realized gain	-	-	(2.82)	(5.97)	(5.03)	(4.97)
Total distributions	(.05)	(.04)	(2.82)	(6.02)	(5.11)	(5.16)
Redemption fees added to paid in capital^{E, G}	-	-	-	-	-	-
Net asset value, end of period	$ 26.41	$ 23.34	$ 33.48	$ 43.51	$ 54.80	$ 44.82
Total Return ^{B, C, D}	13.41%	(30.20)%	(17.74)%	(11.05)%	37.29%	39.38%
Ratios to Average Net Assets ^F
Expenses before expense reductions	.77% ^A	.77%	.78%	.76%	.77%	.80%
Expenses net of voluntary waivers, if any	.77% ^A	.77%	.78%	.76%	.77%	.80%
Expenses net of all reductions	.73% ^A	.71%	.75%	.74%	.75%	.75%
Net investment income (loss)	.24% ^A	.15%	.09%	(.04)%	.04%	.15%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,184,483	$ 1,058,738	$ 1,655,758	$ 1,847,051	$ 916,330	$ 136,142
Portfolio turnover rate	60% ^A	90%	105%	103%	84%	123%

Financial Highlights - Service Class 2

	Six months ended June 30, 2003	Years ended December 31,
	(Unaudited)	2002	2001	2000 ^F
Selected Per-Share Data
Net asset value, beginning of period	$ 23.21	$ 33.34	$ 43.43	$ 53.40
Income from Investment Operations
Net investment income (loss) ^E	.01	- ^H	(.02)	(.09)
Net realized and unrealized gain (loss)	3.07	(10.09)	(7.22)	(3.86)
Total from investment operations	3.08	(10.09)	(7.24)	(3.95)
Distributions from net investment income	(.03)	(.04)	(.03)	(.05)
Distributions from net realized gain	-	-	(2.82)	(5.97)
Total distributions	(.03)	(.04)	(2.85)	(6.02)
Redemption fees added to paid in capital^{E, H}	-	-	-	-
Net asset value, end of period	$ 26.26	$ 23.21	$ 33.34	$ 43.43
Total Return ^{B, C, D}	13.30%	(30.30)%	(17.87)%	(8.88)%
Ratios to Average Net Assets ^G
Expenses before expense reductions	.92% ^A	.93%	.93%	.91% ^A
Expenses net of voluntary waivers, if any	.92% ^A	.93%	.93%	.91% ^A
Expenses net of all reductions	.89% ^A	.87%	.90%	.90% ^A
Net investment income (loss)	.08% ^A	(.01)%	(.06)%	(.19)% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 361,652	$ 238,543	$ 191,475	$ 57,095
Portfolio turnover rate	60% ^A	90%	105%	103%

Financial Highlights - Service Class 2R

	Six months ended June 30, 2003	Year ended December 31,
	(Unaudited)	2002 ^F
Selected Per-Share Data
Net asset value, beginning of period	$ 23.20	$ 31.05
Income from Investment Operations
Net investment income (loss) ^E	.01	(.01)
Net realized and unrealized gain (loss)	3.06	(7.84)
Total from investment operations	3.07	(7.85)
Distributions from net investment income	(.07)	-
Redemption fees added to paid in capital^{E, H}	-	-
Net asset value, end of period	$ 26.20	$ 23.20
Total Return ^{B, C, D}	13.30%	(25.28)%
Ratios to Average Net Assets ^G
Expenses before expense reductions	.93% ^A	.96% ^A
Expenses net of voluntary waivers, if any	.93% ^A	.96% ^A
Expenses net of all reductions	.89% ^A	.90% ^A
Net investment income (loss)	.08% ^A	(.03)% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 510	$ 210
Portfolio turnover rate	60% ^A	90%
^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFor the period April 24, 2002 (commencement of sale of shares) to December 31, 2002. ^GExpense 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 any voluntary waivers reflects 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. ^HAmount represents less than $.01 per-share.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2003 (Unaudited)

1. Significant Accounting Policies.

Equity-Income Portfolio and Growth Portfolio (the funds) are funds of Variable Insurance Products Fund. Contrafund Portfolio (the fund) is a fund of Variable Insurance Products Fund II. The Variable Insurance Products Fund and Variable Insurance Products Fund II (the trusts) (referred to in this report as Fidelity Variable Insurance Products) are registered under the Investment Company Act of 1940, as amended (the 1940 Act), as open-end management investment companies organized as Massachusetts business trusts. Each fund is authorized to issue an unlimited number of shares. 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 the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, and Service Class 2R 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.

Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among the funds in the trust.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

1. Significant Accounting Policies - continued

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 and temporary book and tax differences. These adjustments have no impact on net assets or the results of operations. Temporary differences will reverse in a subsequent period. These differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), defaulted bonds, market discount, contingent interest, non-taxable dividends, capital loss carryforwards and losses deferred due to wash sales.

The federal tax cost of investments including unrealized appreciation (depreciation) as of period end was as follows for each fund:

	Cost for Federal Income Tax Purposes	Unrealized Appreciation	Unrealized Depreciation	Net Unrealized Appreciation/ (Depreciation)
Contrafund	$ 7,092,646,687	$ 1,527,489,742	$ (117,030,183)	$ 1,410,459,559
Equity-Income	7,982,621,107	1,703,193,152	(950,439,083)	752,754,069
Growth	7,749,432,530	1,767,464,895	(451,914,509)	1,315,550,386

Trading (Redemption) Fees. Service Class 2R shares held less than 60 days are subject to a short-term trading fee equal to 1% of the proceeds of the redeemed shares. The fee, which is retained by the applicable fund, is accounted for as an addition to paid in capital.

2. Operating Policies.

Repurchase Agreements. Fidelity Management & Research Company (FMR) has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the funds and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts. These accounts are then invested in repurchase agreements that are collateralized by U.S. Treasury or Government obligations. Certain funds may also invest directly with institutions, in repurchase agreements that are collateralized by commercial paper obligations and corporate obligations. The custodian bank receives the collateral, which is marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest).

Futures Contracts. Certain funds may use futures contracts to manage their 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. 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 contracts' terms. Gains (losses) are realized upon the expiration or closing of the futures contracts. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Semiannual Report

2. Operating Policies - continued

3. Purchases and Sales of Investments.

Information regarding purchases and sales of securities is included under the caption "Other Information" at the end of each applicable fund's Schedule of Investments.

4. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the funds with investment management related services for which the funds pay a monthly management fee.

For all funds the management fee is the sum of an individual fund fee rate applied to the average net assets of each fund and a group fee rate. The group fee rates for equity funds are based upon the average net assets of all the mutual funds advised by FMR. The group fee rates decrease as assets under management increase and increase as assets under management decrease. The annual individual fund fee rate is .30% for Contrafund and Growth Portfolios and .20% for Equity-Income Portfolio. The group fee rates averaged .28% for the period.

For the period each fund's total annualized management fee rate, expressed as a percentage of each fund's average net assets, was as follows:

Contrafund	.58%
Equity-Income	.48%
Growth	.58%

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's average net assets and .25% of Service Class 2 and Service Class 2R'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	Service Class 2	Service Class 2R
Contrafund	$ 604,568	$ 641,849	$ 618
Equity-Income	$ 393,406	$ 578,824	$ 737
Growth	$ 536,213	$ 352,647	$ 329

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, each fund's transfer agent fees were equivalent to an annualized rate of .07% of average net assets.

For the period, each class paid FIIOC the following amounts:

Contrafund
Initial Class	$ 2,040,189
Service Class	420,618
Service Class 2	189,465
Service Class 2R	171
	$ 2,650,443
Equity-Income
Initial Class	$ 2,302,677
Service Class	269,551
Service Class 2	170,175
Service Class 2R	206
	$ 2,742,609
Growth
Initial Class	$ 2,382,969
Service Class	371,290
Service Class 2	104,799
Service Class 2R	106
	$ 2,859,164

	Income Distributions
Contrafund	$ 3,203,284
Equity-Income	$ 171,761
Growth	$ 697,576

5. Committed Line of Credit.

Semiannual Report

6. Security Lending.

7. Bank Borrowings.

8. Expense Reductions.

	Brokerage Service Arrangement	Custody expense reduction

Contrafund	$ 1,222,024	$ 2,519
Equity-Income	$ 477,996	$ 980
Growth	$ 1,413,315	-

9. Other Information.

At the end of the period, FMR or its affiliates and certain 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 %
Contrafund	15%	2	33%
Equity-Income	11%	1	27%
Growth	12%	2	37%

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

Fidelity Management & Research (Far East) Inc.
Contrafund Portfolio

Fidelity Investments Japan Limited
Contrafund Portfolio

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank, New York, NY
Equity-Income Portfolio

Brown Brothers Harriman & Co., Boston, MA
Contrafund Portfolio

Mellon Bank, N.A., Pittsburgh, PA
Growth Portfolio

VIP2R-SANN-0803
1.774934.101

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Reserved

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Reserved

Item 9. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Variable Insurance Products Fund's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Trust's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 10. Exhibits

(a)	(1)	Not applicable.
(a)	(2)	Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(b)		Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Variable Insurance Products Fund

By:	/s/Maria Dwyer
	Maria Dwyer
	President and Treasurer

Date:	August 28, 2003

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/Maria Dwyer
	Maria Dwyer
	President and Treasurer

Date:	August 28, 2003

By:	/s/Timothy F. Hayes
	Timothy F. Hayes
	Chief Financial Officer

Date:	August 28, 2003

Fidelity® Variable Insurance Products:

Contents

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Notes to Financial Statements

Fidelity® Variable Insurance Products:

Contents

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Notes to Financial Statements

Fidelity® Variable Insurance Products:

Contents

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Notes to Financial Statements

Fidelity® Variable Insurance Products:

Contents

Investments June 30, 2003 (Unaudited)

Financial Statements

Notes to Financial Statements

Fidelity® Variable Insurance Products:

Contents

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Notes to Financial Statements

Fidelity® Variable Insurance Products:

Contents

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Notes to Financial Statements

Fidelity® Variable Insurance Products:

Contents

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Notes to Financial Statements

Fidelity® Variable Insurance Products

Contents

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

>Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Notes to Financial Statements

Fidelity® Variable Insurance Products

Contents

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Investment Summary

Investments June 30, 2003 (Unaudited)

Financial Statements

Investment Summary

Fidelity® Variable Insurance Products
Service Class 2R