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 811-5361

Variable Insurance Products Fund V
(Exact name of registrant as specified in charter)

82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)

Eric D. Roiter, Secretary

82 Devonshire St.

Boston, Massachusetts 02109
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-563-7000

Date of fiscal year end:	December 31

Date of reporting period:	June 30, 2007

Item 1. Reports to Stockholders

Fidelity® Variable Insurance Products:
Money Market Portfolio

Semiannual Report

June 30, 2007

(2_fidelity_logos) (Registered_Trademark)

Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months and one year.
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.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

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

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

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

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

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

VIP Money Market Portfolio

VIP Money Market Portfolio

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2007 to June 30, 2007).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

	Beginning Account Value January 1, 2007	Ending Account Value June 30, 2007	Expenses Paid During Period* January 1, 2007 to June 30, 2007
Initial Class
Actual	$ 1,000.00	$ 1,025.60	$ 1.66
Hypothetical ^A	$ 1,000.00	$ 1,023.16	$ 1.66
Service Class
Actual	$ 1,000.00	$ 1,025.00	$ 2.21
Hypothetical ^A	$ 1,000.00	$ 1,022.61	$ 2.21
Service Class 2
Actual	$ 1,000.00	$ 1,024.30	$ 2.91
Hypothetical ^A	$ 1,000.00	$ 1,021.92	$ 2.91
Investor Class
Actual	$ 1,000.00	$ 1,025.30	$ 1.96
Hypothetical ^A	$ 1,000.00	$ 1,022.86	$ 1.96

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.33%
Service Class	.44%
Service Class 2	.58%
Investor Class	.39%

Semiannual Report

VIP Money Market Portfolio

Investment Changes

Maturity Diversification
Days	% of fund's investments 6/30/07	% of fund's investments 12/31/06	% of fund's investments 6/30/06
0 - 30	57.6	52.1	56.8
31 - 90	23.2	33.8	29.2
91 - 180	8.4	8.0	8.8
181 - 397	10.8	6.1	5.2
Weighted Average Maturity
	6/30/07	12/31/06	6/30/06
VIP Money Market Portfolio	63 Days	56 Days	48 Days
All Taxable Money Market Funds Average*	42 Days	41 Days	38 Days

Asset Allocation (% of fund's net assets)
As of June 30, 2007		As of December 31, 2006
	Corporate Bonds 0.6%		Corporate Bonds 1.0%
	Commercial Paper 15.0%		Commercial Paper 21.9%
	Bank CDs, BAs, TDs, and Notes 58.4%		Bank CDs, BAs, TDs, and Notes 62.0%
	Government Securities 0.0%		Government Securities 0.5%
	Repurchase Agreements 24.6%		Repurchase Agreements 14.8%
	Other Investments 1.7%		Other Investments 0.7%
	Net Other Assets** (0.3)%		Net Other Assets** (0.9)%

**Net Other Assets are not included in the pie chart.

*Source: iMoneyNet, Inc.

VIP Money Market Portfolio

VIP Money Market Portfolio

Investments June 30, 2007 (Unaudited)

Showing Percentage of Net Assets

Corporate Bonds - 0.6%
	Due Date	Yield (a)	Principal Amount	Value
Bell Trace Obligated Group
	7/30/07	5.38% (c)	$ 14,055,000	$ 14,055,000
Certificates of Deposit - 18.1%

Domestic Certificates Of Deposit - 0.0%
Huntington National Bank, Columbus
	10/29/07	5.35	1,500,000	1,500,000
London Branch, Eurodollar, Foreign Banks - 6.9%
Barclays Bank PLC
	3/4/08	5.35	23,000,000	23,000,000
Bayerische Hypo-und Vereinsbank AG
	11/5/07	5.35	14,000,000	14,000,000
Credit Agricole SA
	11/19/07	5.35	8,000,000	7,998,215
Credit Industriel et Commercial
	7/25/07 to 11/19/07	5.33 to 5.36	57,000,000	56,999,971
HBOS Treasury Services PLC
	2/11/08	5.30	11,000,000	11,000,000
ING Bank NV
	9/5/07 to 12/6/07	5.33 to 5.36	24,000,000	24,000,000
Landesbank Hessen-Thuringen
	7/23/07	5.36	17,000,000	17,000,000
Societe Generale
	10/2/07 to 1/3/08	5.30 to 5.32	19,000,000	19,000,000
				172,998,186
New York Branch, Yankee Dollar, Foreign Banks - 11.2%
Barclays Bank PLC
	4/16/08 to 5/22/08	5.31 to 5.36	54,000,000	54,000,000
BNP Paribas SA
	10/2/07	5.30	15,000,000	15,000,000
Credit Suisse First Boston
	7/23/07 to 9/17/07	5.33 to 5.34 (c)	45,000,000	45,000,000
Credit Suisse Group
	6/5/08	5.40	27,000,000	27,000,000
Deutsche Bank AG
	11/21/07 to 4/24/08	5.31 to 5.40	61,000,000	61,000,001
HBOS Treasury Services PLC
	2/11/08	5.30	11,000,000	11,000,000
Natexis Banques Populaires NY CD
	1/7/08 to 6/17/08	5.36 to 5.40	37,000,000	37,000,000
Societe Generale
	1/16/08 to 4/2/08	5.36 to 5.40	32,000,000	32,000,000
				282,000,001
TOTAL CERTIFICATES OF DEPOSIT				456,498,187
Commercial Paper - 15.0%
	Due Date	Yield (a)	Principal Amount	Value
Apache Corp.
	7/16/07	5.37% (b)	$ 4,000,000	$ 3,991,083
Aquifer Funding LLC
	7/5/07 to 7/6/07	5.33	24,000,000	23,983,195
AstraZeneca PLC
	9/10/07 to 9/28/07	5.34 to 5.36	35,000,000	34,580,592
Bavaria TRR Corp.
	7/2/07 to 7/11/07	5.34 to 5.36	8,000,000	7,990,837
Brahms Funding Corp.
	7/24/07 to 8/23/07	5.34 to 5.41	15,000,000	14,903,494
Burlington Northern Santa Fe Corp.
	7/16/07	5.38 (b)	1,000,000	997,783
Citigroup Funding, Inc.
	7/25/07 to 9/19/07	5.35	11,000,000	10,919,978
ConocoPhillips Qatar Funding Ltd.
	8/29/07	5.40 (b)	1,000,000	991,281
DaimlerChrysler NA Holding Corp.
	7/3/07 to 7/12/07	5.41	4,000,000	3,997,469
Davis Square Funding V Corp.
	8/10/07	5.36	4,000,000	3,976,356
Devon Energy Corp.
	7/20/07 to 9/14/07	5.37 to 5.44	11,993,000	11,927,737
Dominion Resources, Inc.
	7/2/07 to 7/3/07	5.40 to 5.42	2,500,000	2,499,324
Duke Energy Corp.
	7/20/07 to 9/27/07	5.40 to 5.44	8,000,000	7,966,947
Fortune Brands, Inc.
	7/12/07 to 8/24/07	5.38	7,000,000	6,973,537
Giro Funding US Corp.
	7/13/07 to 7/17/07	5.32 to 5.33	8,000,000	7,982,944
Grenadier Funding Corp.
	8/28/07	5.33	4,000,000	3,966,102
Harrier Finance Funding LLC
	10/17/07	5.32 (b)	13,000,000	12,798,175
Hypo Real Estate Bank International AG
	7/10/07	5.37	3,000,000	2,996,025
ITT Corp.
	7/30/07 to 8/9/07	5.39 to 5.40	2,000,000	1,989,951
Kellogg Co.
	7/13/07 to 8/9/07	5.35 to 5.39	8,000,000	7,970,370
Kestrel Funding (US) LLC
	10/29/07	5.32 (b)	22,000,000	21,620,133
Kraft Foods, Inc.
	7/2/07 to 8/10/07	5.33 to 5.42	14,000,000	13,951,973
Commercial Paper - continued
	Due Date	Yield (a)	Principal Amount	Value
Liberty Harbour II CDO Ltd.
	7/16/07 to 7/26/07	5.36 to 5.37% (b)	$ 3,500,000	$ 3,489,979
Michigan Gen. Oblig.
	10/4/07	5.41	4,100,000	4,100,000
Monsanto Co.
	8/28/07	5.39	8,000,000	7,931,431
Monument Gardens Funding
	8/3/07 to 9/27/07	5.33 to 5.35	24,168,000	23,968,255
National Grid USA
	7/20/07 to 9/28/07	5.38 to 5.40	3,000,000	2,970,844
Nationwide Building Society
	10/11/07	5.31	5,000,000	4,926,688
Nelnet Student Loan Funding LLC
	7/19/07 to 8/21/07	5.36 to 5.37	5,000,000	4,967,183
Nightingale Finance LLC
	8/24/07	5.35 (b)	1,000,000	992,058
Nissan Motor Acceptance Corp.
	8/1/07 to 9/10/07	5.37 to 5.40	6,000,000	5,961,779
Pacific Gas & Electric Co.
	7/31/07 to 8/6/07	5.39 to 5.40 (b)	2,000,000	1,990,163
Paradigm Funding LLC
	7/24/07	5.35	5,000,000	4,983,357
Park Granada LLC
	7/9/07	5.32	2,000,000	1,997,658
Park Sienna LLC
	7/6/07 to 7/11/07	5.33 to 5.34	4,000,000	3,994,865
Rockies Express Pipeline LLC
	7/2/07 to 9/27/07	5.40 to 5.50 (b)	9,500,000	9,456,270
SABMiller PLC
	7/3/07 to 8/24/07	5.39 to 5.41	3,000,000	2,991,369
Spectra Energy Capital LLC
	7/2/07 to 7/10/07	5.37 to 5.46 (b)	3,000,000	2,998,359
Stratford Receivables Co. LLC
	7/11/07 to 8/10/07	5.34 to 5.38	18,000,000	17,932,233
Textron Financial Corp.
	7/5/07 to 7/6/07	5.34	4,000,000	3,997,347
Textron, Inc.
	7/9/07	5.35	2,000,000	1,997,638
Time Warner Cable, Inc.
	7/9/07 to 9/24/07	5.39 to 5.45	13,000,000	12,889,442
Time Warner, Inc.
	7/9/07 to 9/26/07	5.40 to 5.45 (b)	19,000,000	18,846,490

	Due Date	Yield (a)	Principal Amount	Value
Virginia Electric & Power Co.
	7/3/07	5.38%	$ 3,000,000	$ 2,999,105
White Pine Finance LLC
	7/2/07	5.32 (b)	8,000,000	7,998,822
Wisconsin Energy Corp.
	7/13/07 to 9/21/07	5.36 to 5.46	5,750,000	5,706,056
Xcel Energy, Inc.
	10/10/07	5.49	2,000,000	1,970,037
XTO Energy, Inc.
	7/9/07	5.40	1,250,000	1,248,520
Zenith Funding Corp.
	9/5/07 to 9/7/07	5.34 (b)	6,000,000	5,941,737
TOTAL COMMERCIAL PAPER				378,222,971
Master Notes - 3.4%

Asset Funding Co. III LLC
	7/5/07	5.38 to 5.39 (c)(g)	26,000,000	26,000,000
Bear Stearns & Co., Inc.
	12/26/07	5.38 (c)	13,000,000	13,000,000
Countrywide Commercial Real Estate Finance, Inc.
	7/2/07	5.53 (c)	28,000,000	28,000,000
Lehman Brothers Holdings, Inc.
	7/11/07 to 10/29/07	5.43 to 5.53 (c)(g)	9,000,000	9,000,000
Lehman Commercial Paper, Inc.
	7/2/07	5.53 (c)(g)	9,000,000	9,000,000
TOTAL MASTER NOTES				85,000,000
Medium-Term Notes - 32.5%

AIG Matched Funding Corp.
	8/15/07	5.35 (c)	22,000,000	22,000,000
	9/17/07 to 11/15/07	5.35 to 5.37 (b)(c)	26,000,000	26,000,000
Allstate Life Global Funding II
	7/27/07	5.35 (b)(c)	1,000,000	1,000,000
Australia & New Zealand Banking Group Ltd.
	7/23/07	5.34 (b)(c)	5,000,000	5,000,000
Banco Santander Totta SA
	7/16/07	5.32 (b)(c)	15,000,000	15,000,000
Banesto SA
	7/18/07	5.33 (b)(c)	12,000,000	12,000,000
Bank of New York Co., Inc.
	7/27/07	5.38 (b)(c)	15,000,000	15,000,000
Banque Federative du Credit Mutuel (BFCM)
	7/13/07	5.32 (b)(c)	12,000,000	12,000,000
Medium-Term Notes - continued
	Due Date	Yield (a)	Principal Amount	Value
Bayerische Landesbank Girozentrale
	7/16/07 to 8/20/07	5.37 to 5.40% (c)	$ 25,000,000	$ 25,000,000
BMW U.S. Capital LLC
	7/16/07	5.34 (c)	2,000,000	2,000,000
	7/5/07	5.30 (b)(c)	2,000,000	2,000,000
BNP Paribas SA
	7/2/07	5.27 (c)	10,000,000	9,999,990
Caixa Catalunya
	9/7/07	5.37 (c)	8,000,000	8,000,000
Caja de Ahorros Pens Barcelona
	10/23/07	5.36 (b)(c)	19,000,000	19,000,000
Caja Madrid SA
	7/19/07	5.36 (c)	7,000,000	7,000,000
Calyon New York Branch
	7/2/07	5.26 (c)	8,000,000	7,999,991
	7/30/07	5.28 (c)	18,000,000	17,993,750
CIT Group, Inc.
	9/20/07	5.59 (c)	1,000,000	1,000,528
Commonwealth Bank of Australia
	7/24/07	5.32 (c)	21,430,000	21,431,926
Compagnie Financiere du Credit Mutuel
	9/10/07	5.35 (c)	7,000,000	7,000,000
Countrywide Bank, Alexandria Virginia
	7/16/07 to 7/23/07	5.33 (c)	7,000,000	6,999,866
Credit Agricole SA
	7/23/07	5.33 (c)	16,000,000	16,000,000
	9/24/07	5.33 (b)(c)	9,000,000	9,000,000
Cullinan Finance Corp.
	8/24/07 to 4/15/08	5.32 to 5.36 (b)(c)	31,000,000	30,999,395
Cullinan Finance Ltd./Corp.
	5/27/08 to 6/12/08	5.35 to 5.40 (b)	24,000,000	24,000,000
DnB NOR Bank ASA
	7/25/07	5.32 (b)(c)	27,000,000	26,999,957
Harrier Finance Funding LLC
	7/11/07	5.30 (b)(c)	1,000,000	999,838
HBOS Treasury Services PLC
	7/9/07	5.31 (b)(c)	10,600,000	10,599,434
	9/24/07	5.43 (c)	20,000,000	20,000,000
HSBC Finance Corp.
	7/6/07 to 7/24/07	5.33 to 5.37 (c)	26,000,000	26,000,000
HSBC USA, Inc.
	7/16/07	5.32 (c)	5,000,000	5,000,000
HSH Nordbank AG
	7/23/07	5.33 to 5.38 (b)(c)	20,000,000	19,999,992

	Due Date	Yield (a)	Principal Amount	Value
ING USA Annuity & Life Insurance Co.
	9/24/07	5.45% (c)(g)	$ 3,000,000	$ 3,000,000
Intesa Bank Ireland PLC
	7/25/07	5.32 (b)(c)	20,000,000	20,000,000
K2 (USA) LLC
	9/10/07	5.32 (b)(c)	6,000,000	5,999,885
Kestrel Funding PLC/US LLC
	7/2/07	5.34 (b)(c)	1,000,000	1,000,000
Merrill Lynch & Co., Inc.
	7/5/07 to 7/16/07	5.33 to 5.57 (c)	28,000,000	28,002,772
Metropolitan Life Global Funding I
	7/6/07 to 7/30/07	5.35 to 5.43 (b)(c)	8,884,000	8,884,000
Morgan Stanley
	7/2/07 to 9/7/07	5.38 to 5.44 (c)	29,073,000	29,076,153
National Rural Utils. Coop. Finance Corp.
	7/5/07	5.30 (c)	1,000,000	1,000,000
Nightingale Finance Ltd./LLC
	3/18/08	5.45 (b)	3,000,000	2,999,791
Nordea Bank AB
	7/2/07	5.26 (c)	13,000,000	12,999,986
Pacific Life Global Funding
	7/5/07	5.39 (b)(c)	3,000,000	3,000,822
RACERS
	7/23/07	5.37 (b)(c)	15,000,000	15,000,000
Royal Bank of Scotland PLC
	7/23/07	5.33 (b)(c)	10,000,000	10,000,000
Security Life of Denver Insurance Co.
	8/28/07	5.45 (c)(g)	2,000,000	2,000,000
Sigma Finance, Inc.
	7/13/07 to 9/28/07	5.32 to 5.33 (b)(c)	40,000,000	39,997,450
Skandinaviska Enskilda Banken AB
	7/6/07 to 9/24/07	5.27 to 5.34 (c)	40,000,000	39,997,082
Societe Generale
	7/2/07	5.27 (c)	20,000,000	19,999,985
	7/2/07	5.31 (b)(c)	9,000,000	9,000,333
Southern Co.
	9/20/07	5.37 (c)	2,000,000	2,000,000
UniCredito Italiano Bank (Ireland) PLC
	7/9/07 to 7/16/07	5.33 to 5.34 (b)(c)	39,500,000	39,499,979
UniCredito Italiano SpA, New York
	8/20/07 to 9/13/07	5.33 to 5.36 (c)	34,000,000	33,999,415
Verizon Communications, Inc.
	9/17/07	5.36 (c)	14,000,000	14,000,000
Medium-Term Notes - continued
	Due Date	Yield (a)	Principal Amount	Value
Washington Mutual Bank
	8/16/07 to 8/20/07	5.34 to 5.40% (c)	$ 11,500,000	$ 11,500,740
	8/24/07	5.34 (b)(c)	20,000,000	20,000,000
WestLB AG
	7/10/07 to 9/28/07	5.38 to 5.41 (b)(c)	13,000,000	13,000,000
TOTAL MEDIUM-TERM NOTES				818,983,060
Short-Term Notes - 2.8%

Jackson National Life Insurance Co.
	7/1/07	5.40 (c)(g)	7,000,000	7,000,000
Metropolitan Life Insurance Co.
	7/2/07 to 8/1/07	5.45 to 5.48 (c)(g)	15,000,000	15,000,000
Monumental Life Insurance Co.
	7/2/07	5.46 to 5.49 (c)(g)	10,000,000	10,000,000
New York Life Insurance Co.
	6/30/07	5.43 (c)(g)	30,000,000	30,000,000
Transamerica Occidental Life Insurance Co.
	8/1/07	5.53 (c)(g)	10,000,000	10,000,000
TOTAL SHORT-TERM NOTES				72,000,000
Asset-Backed Securities - 1.7%

Aardvark ABS CDO
	7/6/07	5.40 (b)(c)	9,000,000	9,000,000
Le Monde CDO I PLC / LLC
	7/5/07	5.35 (b)(c)	10,000,000	9,999,000
Master Funding Trust I
	7/25/07 to 7/26/07	5.35 (c)	9,000,000	9,000,000
	7/25/07	5.35 (b)(c)	2,000,000	2,000,000
PASA Funding 2007 Ltd.
	7/9/07	5.33 (b)(c)	12,000,000	12,000,000
Wind Trust
	7/25/07	5.32 (b)(c)	1,000,000	1,000,000
TOTAL ASSET-BACKED SECURITIES				42,999,000
Municipal Securities - 1.6%

California Gen. Oblig. Participating VRDN
	7/6/07	3.75 (c)(e)	2,000,000	2,000,000
Catholic Health Initiatives
	8/8/07 to 9/6/07	5.34 to 5.37	10,700,000	10,700,000
Gainesville & Hall County Hosp. Auth. Rev., VRDN
	7/6/07	3.74 (c)	3,000,000	3,000,000
Massachusetts Bay Trans. Auth. Sales Tax Rev. Participating VRDN Series PT 2459
	7/6/07	3.76 (c)(e)	7,000,000	6,999,999

	Due Date	Yield (a)	Principal Amount	Value
New York City Hsg. Dev. Corp. Multi-family Mortgage Rev. Series A, VRDN
	7/6/07	3.77% (c)(d)	$ 4,300,000	$ 4,300,000
Texas Gen. Oblig. Series E, VRDN
	7/6/07	5.38 (c)	13,560,000	13,560,000
TOTAL MUNICIPAL SECURITIES				40,559,999

Repurchase Agreements - 24.6%
	Maturity Amount
In a joint trading account at 5.4% dated 6/29/07 due 7/2/07 (Collateralized by U.S. Government Obligations) #	$ 620,279		620,000
With:
Banc of America Securities LLC at:
5.43%, dated 6/29/07 due 7/2/07 (Collateralized by Commercial Paper Obligations valued at $104,040,001, 0%, 7/2/07 - 9/25/07)	102,046,155		102,000,000
5.51%, dated 6/29/07 due 7/2/07 (Collateralized by Mortgage Loan Obligations valued at $22,050,000, 6.52% - 9.32%, 4/25/35 - 10/25/46)	21,009,643		21,000,000
Citigroup Global Markets, Inc. at 5.43%, dated 6/29/07 due 7/2/07 (Collateralized by Commercial Paper Obligations valued at $116,280,000, 0%, 7/2/07 - 9/21/07)	114,051,538		114,000,000
Deutsche Bank Securities, Inc. at 5.36%, dated:
4/19/07 due 7/19/07 (Collateralized by Mortgage Loan Obligations valued at $6,300,000, 7.38%, 9/19/35)	6,081,293		6,000,000
4/30/07 due 7/30/07 (Collateralized by Equity Securities valued at $9,450,008)	9,121,940		9,000,000
5/2/07 due 8/7/07 (Collateralized by Mortgage Loan Obligations valued at $9,450,000, 5.54%, 6/10/46)	9,129,980		9,000,000
5/14/07 due 8/13/07 (Collateralized by Mortgage Loan Obligations valued at $12,600,001, 4.91% - 5.5%, 11/25/35 - 8/13/42)	12,162,587		12,000,000
5/15/07 due 8/14/07 (Collateralized by Mortgage Loan Obligations valued at $12,600,000, 5.5% - 6.8%, 11/25/35 - 7/25/46)	12,162,587		12,000,000
Repurchase Agreements - continued
	Maturity Amount		Value
With: - continued
Deutsche Bank Securities, Inc. at 5.36%, dated:
6/11/07 due 7/11/07 (Collateralized by Mortgage Loan Obligations valued at $7,350,001, 6.19% - 6.38%, 12/18/10 - 3/25/47)	$ 7,031,267		$ 7,000,000
Goldman Sachs & Co. at:
5.47%, dated 5/25/07 due 8/29/07 (Collateralized by Corporate Obligations valued at $6,120,001, 5.51%, 6/2/42) (c)(f)	6,087,520		6,000,000
5.48%, dated 5/24/07 due 8/31/07 (Collateralized by Corporate Obligations valued at $24,150,000, 7.38% - 7.63%, 5/15/11 - 6/1/16) (c)(f)	23,346,610		23,000,000
J.P. Morgan Securities, Inc. at 5.48%, dated 6/29/07 due 8/8/07 (Collateralized by Mortgage Loan Obligations valued at $19,047,086, 5.44% - 6.13%, 8/25/34 - 7/12/44) (c)(f)	18,109,600		18,000,000
Lehman Brothers, Inc. at:
5.32%, dated 4/30/07 due 7/30/07 (Collateralized by Mortgage Loan Obligations valued at $7,350,121, 0.41% - 2.78%, 8/25/16 - 2/15/35)	7,094,134		7,000,000
5.36%, dated 4/30/07 due 7/30/07 (Collateralized by Mortgage Loan Obligations valued at $5,253,425, 8.23%, 12/19/36)	5,067,744		5,000,000
5.41%, dated 3/15/07 due 9/13/07 (Collateralized by Corporate Obligations valued at $6,120,140, 6.63% - 9.5%, 2/1/13 - 1/15/18) (c)(f)	6,164,103		6,000,000
5.5%, dated 6/29/07 due 7/2/07 (Collateralized by Commercial Paper Obligations valued at $76,446,755, 0%, 7/12/07 - 2/25/36)	74,033,917		74,000,000
Merrill Lynch, Pierce, Fenner & Smith at:
5.43%, dated 6/29/07 due 7/2/07 (Collateralized by Corporate Obligations valued at $85,684,576, 5.25% - 7%, 6/25/12 - 9/1/22)	84,037,975		84,000,000
5.49%, dated 4/17/07 due 7/17/07 (Collateralized by Corporate Obligations valued at $13,696,551, 3.5% - 10.13%, 4/15/08 - 8/1/34) (c)(f)	13,180,408		13,000,000

	Maturity Amount		Value
With: - continued
Morgan Stanley & Co. at:
5.36%, dated 6/29/07 due 8/8/07 (Collateralized by Mortgage Loan Obligations valued at $19,047,086, 5.04% - 6.13%, 8/25/34 - 7/12/44)	$ 18,107,200		$ 18,000,000
5.45%, dated 6/29/07 due 7/2/07 (Collateralized by Commercial Paper Obligations valued at $76,446,755, 0%, 7/12/07 - 2/25/36)	74,033,608		74,000,000
TOTAL REPURCHASE AGREEMENTS		620,620,000
TOTAL INVESTMENT PORTFOLIO - 100.3% (Cost $2,528,938,217)			2,528,938,217
NET OTHER ASSETS - (0.3)%			(6,912,827)
NET ASSETS - 100%		$ 2,522,025,390

Security Type Abbreviation

VRDN - VARIABLE RATE DEMAND NOTE

Legend

(a) Yield represents either the annualized yield at the date of purchase, or the stated coupon rate, or, for floating rate securities, 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 end of the period, the value of these securities amounted to $544,092,209 or 21.6% of net assets.

(c) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end. Due dates for these security types are the next interest rate reset date or, when applicable, the final maturity date.

(d) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.

(e) Provides evidence of ownership in one or more underlying municipal bonds.

(f) The maturity amount is based on the rate at period end.

(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $121,000,000 or 4.8% of net assets.

Additional information on each holding is as follows:

Security	Acquisition Date	Cost
Asset Funding Co. III LLC: 5.38%, 7/5/07	11/7/06	$ 13,000,000
5.39%, 7/5/07	8/29/06	$ 13,000,000
ING USA Annuity & Life Insurance Co. 5.45%, 9/24/07	6/23/05	$ 3,000,000
Jackson National Life Insurance Co. 5.40%, 7/1/07	3/31/03	$ 7,000,000
Lehman Brothers Holdings, Inc.: 5.43%, 7/11/07	1/10/07	$ 6,000,000
5.53%, 10/29/07	12/11/06	$ 3,000,000
Lehman Commercial Paper, Inc. 5.53%, 7/2/07	3/29/07	$ 9,000,000
Metropolitan Life Insurance Co.: 5.45%, 7/2/07	3/26/02	$ 10,000,000
5.48%, 8/1/07	2/24/03	$ 5,000,000
Monumental Life Insurance Co.: 5.46%, 7/2/07	9/17/98	$ 5,000,000
5.49%, 7/2/07	3/12/99	$ 5,000,000
New York Life Insurance Co. 5.43%, 6/30/07	2/28/02 - 12/19/02	$ 30,000,000
Security Life of Denver Insurance Co. 5.45%, 8/28/07	8/26/05	$ 2,000,000
Transamerica Occidental Life Insurance Co. 5.53%, 8/1/07	4/28/00	$ 10,000,000

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

Repurchase Agreement / Counterparty	Value
$620,000 due 7/02/07 at 5.40%
ABN AMRO Bank N.V., New York Branch	$ 95,951
Bank of America, NA	143,929
Barclays Capital, Inc.	73,302
Bear Stearns & Co., Inc.	14,163
Citigroup Global Markets, Inc.	143,929
Countrywide Securities Corp.	76,762
Greenwich Capital Markets, Inc.	23,988
HSBC Securities (USA), Inc.	47,976
	$ 620,000

Income Tax Information

At December 31, 2006, the fund had a capital loss carryforward of approximately $342,158 of which $61,748, $174,987 and $105,423 will expire on December 31, 2011, 2012 and 2013, respectively.

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

VIP Money Market Portfolio

VIP Money Market Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2007 (Unaudited)

Assets
Investment in securities, at value (including repurchase agreements of $620,620,000) - See accompanying schedule: Unaffiliated issuers (cost $2,528,938,217)		$ 2,528,938,217
Cash		22,680
Receivable for fund shares sold		4,048,840
Interest receivable		12,008,212
Prepaid expenses		4,937
Total assets		2,545,022,886

Liabilities
Payable for investments purchased	$ 19,000,000
Payable for fund shares redeemed	2,821,115
Distributions payable	347,156
Accrued management fee	475,441
Distribution fees payable	21,498
Other affiliated payables	195,603
Other payables and accrued expenses	136,683
Total liabilities		22,997,496

Net Assets		$ 2,522,025,390
Net Assets consist of:
Paid in capital		$ 2,522,302,065
Undistributed net investment income		55,840
Accumulated undistributed net realized gain (loss) on investments		(332,515)
Net Assets		$ 2,522,025,390

Statement of Assets and Liabilities - continued

	June 30, 2007 (Unaudited)

Initial Class: Net Asset Value, offering price and redemption price per share ($1,444,751,143 ÷ 1,445,058,206 shares)		$ 1.00

Service Class: Net Asset Value, offering price and redemption price per share ($42,133,246 ÷ 42,136,629 shares)		$ 1.00

Service Class 2: Net Asset Value, offering price and redemption price per share ($88,184,270 ÷ 88,186,826 shares)		$ 1.00

Investor Class: Net Asset Value, offering price and redemption price per share ($946,956,731 ÷ 946,895,118 shares)		$ 1.00

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

Semiannual Report

VIP Money Market Portfolio
Financial Statements - continued

Statement of Operations

	Six months ended June 30, 2007 (Unaudited)

Investment Income
Interest (including $94,782 from affiliated interfund lending)		$ 61,701,348

Expenses
Management fee	$ 2,692,818
Transfer agent fees	973,939
Distribution fees	129,408
Accounting fees and expenses	109,143
Custodian fees and expenses	21,457
Independent trustees' compensation	3,570
Audit	26,249
Legal	2,392
Miscellaneous	151,926
Total expenses before reductions	4,110,902
Expense reductions	(3,752)	4,107,150
Net investment income		57,594,198
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers		9,643
Net increase in net assets resulting from operations		$ 57,603,841

Statement of Changes in Net Assets

	Six months ended June 30, 2007 (Unaudited)	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 57,594,198	$ 94,771,310
Net realized gain (loss)	9,643	46,850
Net increase in net assets resulting from operations	57,603,841	94,818,160
Distributions to shareholders from net investment income	(57,585,371)	(94,777,417)
Share transactions - net increase (decrease)	165,403,681	810,408,342
Total increase (decrease) in net assets	165,422,151	810,449,085

Net Assets
Beginning of period	2,356,603,239	1,546,154,154
End of period (including undistributed net investment income of $55,840 and undistributed net investment income of $47,013, respectively)	$ 2,522,025,390	$ 2,356,603,239

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

VIP Money Market Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
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	.025	.048	.030	.012	.010	.017
Distributions from net investment income	(.025)	(.048)	(.030)	(.012)	(.010)	(.017)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	2.56%	4.87%	3.03%	1.21%	1.00%	1.69%
Ratios to Average Net Assets^E
Expenses before reductions	.33%^A	.33%	.29%	.29%	.29%	.29%
Expenses net of fee waivers, if any	.33%^A	.33%	.29%	.29%	.29%	.29%
Expenses net of all reductions	.33%^A	.33%	.29%	.29%	.29%	.29%
Net investment income	5.07%^A	4.84%	3.00%	1.18%	1.00%	1.68%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,444,751	$ 1,634,441	$ 1,347,642	$ 1,392,449	$ 1,817,440	$ 2,705,069
^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 expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

Financial Highlights - Service Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
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	.025	.047	.029	.011	.009	.016
Distributions from net investment income	(.025)	(.047)	(.029)	(.011)	(.009)	(.016)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	2.50%	4.76%	2.92%	1.10%	.90%	1.61%
Ratios to Average Net Assets^E
Expenses before reductions	.44%^A	.43%	.40%	.40%	.38%	.39%
Expenses net of fee waivers, if any	.44%^A	.43%	.40%	.40%	.38%	.39%
Expenses net of all reductions	.44%^A	.43%	.40%	.40%	.38%	.39%
Net investment income	4.96%^A	4.73%	2.88%	1.08%	.91%	1.58%
Supplemental Data
Net assets, end of period (000 omitted)	$ 42,133	$ 56,502	$ 20,987	$ 13,905	$ 19,606	$ 8,017
^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 expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
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	.024	.045	.027	.009	.007	.014
Distributions from net investment income	(.024)	(.045)	(.027)	(.009)	(.007)	(.014)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	2.43%	4.61%	2.77%	.95%	.75%	1.45%
Ratios to Average Net Assets^E
Expenses before reductions	.58%^A	.58%	.54%	.55%	.54%	.54%
Expenses net of fee waivers, if any	.58%^A	.58%	.54%	.55%	.54%	.54%
Expenses net of all reductions	.58%^A	.58%	.54%	.55%	.54%	.54%
Net investment income	4.82%^A	4.59%	2.90%	.93%	.75%	1.43%
Supplemental Data
Net assets, end of period (000 omitted)	$ 88,184	$ 85,647	$ 51,301	$ 20,899	$ 3,068	$ 47,604
^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 expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

Financial Highlights - Investor Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005 ^E
Selected Per-Share Data
Net asset value, beginning of period	$ 1.00	$ 1.00	$ 1.00
Income from Investment Operations
Net investment income	.025	.047	.016
Distributions from net investment income	(.025)	(.047)	(.016)
Net asset value, end of period	$ 1.00	$ 1.00	$ 1.00
Total Return^{B, C, D}	2.53%	4.81%	1.58%
Ratios to Average Net Assets^F
Expenses before reductions	.39% ^A	.39%	.36% ^A
Expenses net of fee waivers, if any	.39% ^A	.39%	.36% ^A
Expenses net of all reductions	.39% ^A	.39%	.36% ^A
Net investment income	5.02% ^A	4.78%	3.72% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 946,957	$ 580,013	$ 126,224
^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 21, 2005 (commencement of sale of shares) to December 31, 2005. ^F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

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

VIP Money Market Portfolio

Notes to Financial Statements

For the period ended June 30, 2007 (Unaudited)

1. Organization.

VIP Money Market Portfolio (the Fund) is a fund of Variable Insurance Products Fund V (the trust) (formerly of Variable Insurance Products Fund) and is authorized to issue an unlimited number of shares. Effective April 19, 2007, the Board of Trustees approved an Agreement and Plan of Reorganization whereby the Fund reorganized into Variable Insurance Products Fund V effective June 29, 2007 (Trust Reorganization). The Trust Reorganization does not impact the Fund's investment strategies or Fidelity Management & Research Company's (FMR) management of the Fund. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Significant Accounting Policies.

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

Security Valuation. 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 by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates value.

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 is accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.

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

Income Tax Information and Distributions to Shareholders. The Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.

Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, if any, are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to deferred trustees compensation and capital loss carryforwards.

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

Unrealized appreciation	$ -
Unrealized depreciation	-
Net unrealized appreciation (depreciation)	$ -
Cost for federal income tax purposes	$ 2,528,938,217

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

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. 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 which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

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

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 calculated on the basis of a group fee rate plus a total income-based component. The group fee rate averaged .12% 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 $1,355,426 or an annualized rate of .12% of the Fund's average net assets. For the period, the Fund's total annualized management fee rate was .24% 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	$ 23,671
Service Class 2	105,737
	$ 129,408

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class with the exception of Investor Class pays a transfer agent fee, excluding out of pocket expenses, equal to an annual rate of .07% of their month end net assets. Investor Class pays a monthly asset-based transfer agent fee of .12% of its month end net assets. The total transfer agent fees paid by each class to FIIOC, including out of pocket expenses, were as follows:

Initial Class	$ 487,696
Service Class	18,265
Service Class 2	28,592
Investor Class	439,386
	$ 973,939

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.

VIP Money Market Portfolio

4. Fees and Other Transactions with Affiliates - continued

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

Borrower or Lender	Average Daily Loan Balance	Weighted Average Interest Rate
Lender	$ 17,090,054	5.40%

5. Expense Reductions.

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 expenses by $3,752.

6. Other.

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

At the end of the period, FMR or its affiliates were the owners of record of 74% of the total outstanding shares of the Fund.

7. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended June 30, 2007	Year ended December 31, 2006
From net investment income
Initial Class	$ 36,372,035	$ 73,972,014
Service Class	1,171,196	1,192,586
Service Class 2	2,026,214	3,206,476
Investor Class	18,015,926	16,406,341
Total	$ 57,585,371	$ 94,777,417

8. Share Transactions.

Transactions for each class of shares at a $1.00 per share were as follows:

	Six months ended June 30, 2007	Year ended December 31, 2006
Initial Class Shares sold	278,663,181	805,545,671
Reinvestment of distributions	36,428,949	73,673,472
Shares redeemed	(504,785,530)	(592,412,576)
Net increase (decrease)	(189,693,400)	286,806,567
Service Class Shares sold	32,599,506	99,908,819
Reinvestment of distributions	1,180,992	1,179,497
Shares redeemed	(48,147,448)	(65,574,755)
Net increase (decrease)	(14,366,950)	35,513,561

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

8. Share Transactions - continued

	Six months ended June 30, 2007	Year ended December 31, 2006
Service Class 2 Shares sold	41,139,424	87,110,784
Reinvestment of distributions	2,037,328	3,189,428
Shares redeemed	(40,638,364)	(55,956,973)
Net increase (decrease)	2,538,388	34,343,239
Investor Class Shares sold	394,817,760	560,339,731
Reinvestment of distributions	18,046,172	16,261,969
Shares redeemed	(45,938,289)	(122,856,725)
Net increase (decrease)	366,925,643	453,744,975

VIP Money Market Portfolio

Board Approval of Investment Advisory Contracts and Management Fees

VIP Money Market Portfolio

On April 19, 2007, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract and subadvisory agreements (together, the Advisory Contracts) for the fund in connection with reorganizing the fund from one Trust to another. The Board reached this determination because the contractual terms of and fees payable under the fund's Advisory Contracts are identical to those in the fund's current Advisory Contracts. The Advisory Contracts involve no changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the nature or level of services provided under the fund's Advisory Contracts; or (iii) the day-to-day management of the fund or the persons primarily responsible for such management. The Board considered that it approved the Advisory Contracts for the fund during the past year and that it will again consider renewal of the Advisory Contracts in June 2007.

Because the Board was approving Advisory Contracts with terms identical to the current Advisory Contracts, it did not consider the fund's investment performance, competitiveness of management fee and total expenses, costs of services and profitability, or economies of scale to be significant factors in its decision.

In connection with its future renewal of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent, and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the fund's management fee and total expenses; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders; and (iv) whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be approved, without modification, as part of the process of reorganizing the fund from one Trust to another.

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

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

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

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

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

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

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

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

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

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

VIP Money Market Portfolio

VIP Money Market Portfolio

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Initial Class of the fund was in the first quartile for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.

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

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 3% means that 97% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board. The Board also recognized that the income-based component of the fund's management fee varies depending on the level of the fund's monthly gross income, providing for higher fees at higher income levels, and for lower fees at lower income levels.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Money Market Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006. Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

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

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

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

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

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

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

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

VIP Money Market Portfolio

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

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

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

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

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

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on several topics, including (i) Fidelity's fund profitability methodology, profitability by investment discipline, and profitability trends within certain funds; (ii) Fidelity's compensation structure relative to competitors and its effect on profitability; (iii) funds and accounts managed by Fidelity other than the Fidelity funds, including fee arrangements; (iv) the total expenses of certain funds and classes relative to competitors; (v) fund performance trends; (vi) fall-out benefits received by certain Fidelity affiliates; and (vii) Fidelity's fee structures.

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

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Adviser

Fidelity Investments Money Management, Inc.

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

Fidelity Research & Analysis Company

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agents

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

Fidelity Service Company, Inc.
Boston, MA

Custodian

The Bank of New York
New York, NY

VIPMM-SANN-0807
1.705628.109

Fidelity® Variable Insurance Products:

Asset Manager^SM Portfolio

Semiannual Report

June 30, 2007

(2_fidelity_logos) (Registered_Trademark)

Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

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

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

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

VIP Asset Manager Portfolio

VIP Asset Manager Portfolio

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2007 to June 30, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value January 1, 2007	Ending Account Value June 30, 2007	Expenses Paid During Period* January 1, 2007 to June 30, 2007
Initial Class
Actual	$ 1,000.00	$ 1,075.40	$ 3.24
Hypothetical^A	$ 1,000.00	$ 1,021.67	$ 3.16
Service Class
Actual	$ 1,000.00	$ 1,074.00	$ 3.81
Hypothetical^A	$ 1,000.00	$ 1,021.12	$ 3.71
Service Class 2
Actual	$ 1,000.00	$ 1,073.20	$ 4.57
Hypothetical^A	$ 1,000.00	$ 1,020.38	$ 4.46
Investor Class
Actual	$ 1,000.00	$ 1,074.20	$ 3.86
Hypothetical^A	$ 1,000.00	$ 1,021.08	$ 3.76

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.

	Annualized Expense Ratio
Initial Class	.63%
Service Class	.74%
Service Class 2	.89%
Investor Class	.75%

Semiannual Report

VIP Asset Manager Portfolio

Investment Changes

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

Top Five Stocks as of June 30, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Research In Motion Ltd.	1.2	0.7
Valero Energy Corp.	1.2	0.8
Monsanto Co.	1.2	0.8
AT&T, Inc.	1.0	1.0
Ultra Petroleum Corp.	0.9	0.8
	5.5
Top Five Bond Issuers as of June 30, 2007
(with maturities greater than one year)	% of fund's net assets	% of fund's net assets 6 months ago
U.S. Treasury Obligations	9.7	5.7
Fannie Mae	9.4	10.2
Freddie Mac	2.7	2.4
Government National Mortgage Association	0.8	0.9
Morgan Stanley Capital I Trust	0.4	0.0
	23.0
Top Five Market Sectors as of June 30, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Energy	10.8	9.1
Financials	8.9	12.6
Information Technology	7.7	6.9
Consumer Discretionary	6.0	7.5
Materials	5.7	3.4

Asset Allocation (% of fund's net assets)
As of June 30, 2007 *			As of December 31, 2006 **
	Stock Class and Equity Futures 49.0%			Stock Class and Equity Futures 50.1%
	Bond Class 47.4%			Bond Class 44.4%
	Short-Term Class 3.6%			Short-Term Class 5.5%
* Foreign investments		17.2%	** Foreign investments		18.3%

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

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

VIP Asset Manager Portfolio

VIP Asset Manager Portfolio

Investments June 30, 2007 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 45.1%
	Shares		Value
CONSUMER DISCRETIONARY - 4.1%
Diversified Consumer Services - 0.3%
Sotheby's Class A (ltd. vtg.)	138,800		$ 6,387,576
Hotels, Restaurants & Leisure - 1.3%
Burger King Holdings, Inc.	252,000		6,637,680
CKE Restaurants, Inc.	77,000		1,545,390
Hilton Hotels Corp.	109,900		3,678,353
McDonald's Corp.	148,200		7,522,632
Nissin Healthcare Food Service Co.	29,700		385,840
Starwood Hotels & Resorts Worldwide, Inc.	42,100		2,823,647
Vail Resorts, Inc. (a)	48,700		2,964,369
			25,557,911
Household Durables - 0.1%
Koninklijke Philips Electronics NV	38,100		1,612,392
Internet & Catalog Retail - 0.6%
Priceline.com, Inc. (a)	161,100		11,074,014
Media - 0.3%
Comcast Corp. Class A (special) (non-vtg.)	77,450		2,165,502
SES SA FDR unit	63,862		1,382,893
Virgin Media, Inc.	103,650		2,525,951
			6,074,346
Multiline Retail - 0.3%
Kohl's Corp. (a)	36,800		2,613,904
Saks, Inc.	151,600		3,236,660
			5,850,564
Specialty Retail - 0.3%
PETsMART, Inc.	99,700		3,235,265
Tiffany & Co., Inc.	41,500		2,201,990
			5,437,255
Textiles, Apparel & Luxury Goods - 0.9%
Burberry Group PLC	124,100		1,712,040
Coach, Inc. (a)	86,000		4,075,540
Crocs, Inc. (a)(d)	77,000		3,313,310
Polo Ralph Lauren Corp. Class A	32,300		3,168,953
VF Corp.	59,700		5,467,326
			17,737,169
TOTAL CONSUMER DISCRETIONARY			79,731,227
CONSUMER STAPLES - 1.6%
Food Products - 0.7%
Cresud S.A.C.I.F. y A. sponsored ADR	44,500		951,855
Nestle SA sponsored ADR	19,200		1,836,480
Nutreco Holding NV	21,900		1,604,977
Saskatchewan Wheat Pool, Inc. (a)	7,300		75,313
Saskatchewan Wheat Pool, Inc. (a)(e)	204,600		2,110,823
Tyson Foods, Inc. Class A	309,700		7,135,488
			13,714,936

	Shares		Value
Personal Products - 0.3%
Avon Products, Inc.	30,700		$ 1,128,225
Bare Escentuals, Inc.	87,600		2,991,540
Kose Corp.	80,600		2,283,972
			6,403,737
Tobacco - 0.6%
Altria Group, Inc.	138,500		9,714,390
Philip Morris CR AS	3,205		1,666,286
			11,380,676
TOTAL CONSUMER STAPLES			31,499,349
ENERGY - 9.2%
Energy Equipment & Services - 2.1%
GlobalSantaFe Corp.	21,500		1,553,375
Nabors Industries Ltd. (a)	113,800		3,798,644
Oceaneering International, Inc. (a)	90,100		4,742,864
Schlumberger Ltd. (NY Shares)	97,800		8,307,132
Smith International, Inc.	88,100		5,166,184
Transocean, Inc. (a)	80,500		8,531,390
W-H Energy Services, Inc. (a)	23,600		1,461,076
Weatherford International Ltd. (a)	111,900		6,181,356
			39,742,021
Oil, Gas & Consumable Fuels - 7.1%
Apache Corp.	48,900		3,989,751
Cabot Oil & Gas Corp.	205,000		7,560,400
Cameco Corp.	227,700		11,542,643
Canadian Natural Resources Ltd.	30,800		2,046,491
China Coal Energy Co. Ltd. (H Shares)	182,000		272,795
DMCI Holdings, Inc.	2,135,000		434,206
EOG Resources, Inc.	76,300		5,574,478
Exxon Mobil Corp.	187,400		15,719,112
Marathon Oil Corp.	160,000		9,593,600
NuVista Energy Ltd. (a)	43,100		586,670
Petroplus Holdings AG	118,710		12,224,720
ProEx Energy Ltd. (a)	55,800		785,731
Quicksilver Resources, Inc. (a)	19,700		878,226
Range Resources Corp.	14,200		531,222
Semirara Mining Corp.	814,700		511,171
Suncor Energy, Inc.	14,100		1,270,158
Sunoco, Inc.	115,200		9,179,136
Tesoro Corp.	93,700		5,354,955
Ultra Petroleum Corp. (a)	327,700		18,102,148
Uranium One, Inc.	225,900		2,877,694
Valero Energy Corp.	304,700		22,505,142
Williams Companies, Inc.	163,300		5,163,546
			136,703,995
TOTAL ENERGY			176,446,016
FINANCIALS - 4.2%
Capital Markets - 1.1%
Charles Schwab Corp.	154,100		3,162,132
Common Stocks - continued
	Shares		Value
FINANCIALS - continued
Capital Markets - continued
Franklin Resources, Inc.	55,500		$ 7,352,085
Goldman Sachs Group, Inc.	20,800		4,508,400
Julius Baer Holding AG (Bearer)	38,904		2,799,330
Pampa Holding SA (a)	765,827		686,074
T. Rowe Price Group, Inc.	38,800		2,013,332
			20,521,353
Commercial Banks - 1.2%
Banco Bradesco SA (PN) sponsored ADR	277,800		6,697,758
Banco Daycoval SA	95,600		862,337
Banco Itau Holding Financeira SA sponsored ADR (non-vtg.)	199,800		8,879,112
Raiffeisen International Bank Holding AG	9,200		1,465,516
Shinsei Bank Ltd.	470,000		1,900,455
Uniao de Bancos Brasileiros SA (Unibanco) GDR	30,100		3,397,387
			23,202,565
Consumer Finance - 0.2%
SFCG Co. Ltd.	7,340		1,229,492
Takefuji Corp.	55,120		1,852,848
			3,082,340
Insurance - 1.5%
Aioi Insurance Co. Ltd.	192,000		1,248,717
Benfield Group PLC	253,400		1,644,866
MetLife, Inc.	138,200		8,911,136
Millea Holdings, Inc.	36,930		1,517,260
Mitsui Sumitomo Insurance Co. Ltd.	86,000		1,104,677
Prudential Financial, Inc.	149,200		14,506,716
			28,933,372
Real Estate Investment Trusts - 0.2%
Annaly Capital Management, Inc.	344,700		4,970,574
Real Estate Management & Development - 0.0%
Inversiones y Representaciones SA sponsored GDR (a)	21,500		397,750
TOTAL FINANCIALS			81,107,954
HEALTH CARE - 4.7%
Biotechnology - 1.6%
Actelion Ltd. (Reg.) (a)	31,410		1,405,171
Celgene Corp. (a)	283,700		16,264,521
CSL Ltd.	11,100		828,278
Gilead Sciences, Inc. (a)	306,000		11,863,620
			30,361,590
Health Care Equipment & Supplies - 0.9%
Beckman Coulter, Inc.	63,900		4,133,052
Becton, Dickinson & Co.	73,800		5,498,100
Cytyc Corp. (a)	155,800		6,716,538
Synthes, Inc.	17,205		2,068,938
			18,416,628

	Shares		Value
Health Care Providers & Services - 0.7%
Humana, Inc. (a)	136,500		$ 8,314,215
Medco Health Solutions, Inc. (a)	72,900		5,685,471
			13,999,686
Pharmaceuticals - 1.5%
Elan Corp. PLC sponsored ADR (a)	486,800		10,675,524
Merck & Co., Inc.	251,600		12,529,680
Sanofi-Aventis sponsored ADR	42,600		1,715,502
Takeda Pharamaceutical Co. Ltd.	51,000		3,296,200
			28,216,906
TOTAL HEALTH CARE			90,994,810
INDUSTRIALS - 3.8%
Aerospace & Defense - 0.7%
DRS Technologies, Inc.	25,000		1,431,750
General Dynamics Corp.	46,800		3,660,696
L-3 Communications Holdings, Inc.	89,600		8,726,144
			13,818,590
Airlines - 0.2%
Ryanair Holdings PLC sponsored ADR (a)	117,000		4,416,750
Construction & Engineering - 0.0%
Samwhan Corp.	13,510		475,267
Electrical Equipment - 0.5%
ABB Ltd. sponsored ADR	445,700		10,072,820
Industrial Conglomerates - 0.9%
Hutchison Whampoa Ltd.	397,000		3,942,481
McDermott International, Inc. (a)	150,100		12,476,312
			16,418,793
Machinery - 1.2%
Caterpillar, Inc.	143,800		11,259,540
CNH Global NV	7,200		367,848
Cummins, Inc.	51,700		5,232,557
Deere & Co.	11,700		1,412,658
Kubota Corp.	262,000		2,127,314
MAN AG	18,600		2,687,495
			23,087,412
Road & Rail - 0.3%
Burlington Northern Santa Fe Corp.	30,700		2,613,798
Kansas City Southern	83,700		3,142,098
			5,755,896
TOTAL INDUSTRIALS			74,045,528
INFORMATION TECHNOLOGY - 7.2%
Communications Equipment - 2.1%
Cisco Systems, Inc. (a)	208,700		5,812,295
Harris Corp.	48,200		2,629,310
Infinera Corp.	84,600		2,108,232
QUALCOMM, Inc.	123,000		5,336,970
Common Stocks - continued
	Shares		Value
INFORMATION TECHNOLOGY - continued
Communications Equipment - continued
Research In Motion Ltd. (a)	114,700		$ 22,938,853
Sonus Networks, Inc. (a)	258,100		2,199,012
			41,024,672
Computers & Peripherals - 1.4%
Apple, Inc. (a)	129,400		15,791,976
Data Domain, Inc.	7,500		172,500
Dell, Inc. (a)	230,200		6,572,210
EMC Corp. (a)	246,700		4,465,270
			27,001,956
Electronic Equipment & Instruments - 0.1%
IPG Photonics Corp.	64,600		1,288,770
Internet Software & Services - 1.2%
Akamai Technologies, Inc. (a)	129,900		6,318,336
comScore, Inc.	2,000		46,300
Google, Inc. Class A (sub. vtg.) (a)	25,500		13,346,190
SAVVIS, Inc. (a)	73,900		3,658,789
			23,369,615
IT Services - 0.9%
Fidelity National Information Services, Inc.	115,600		6,274,768
Mastercard, Inc. Class A	70,000		11,610,900
			17,885,668
Office Electronics - 0.0%
Canon, Inc.	10,900		639,176
Semiconductors & Semiconductor Equipment - 0.7%
Applied Materials, Inc.	401,900		7,985,753
ASML Holding NV (NY Shares) (a)	157,100		4,312,395
			12,298,148
Software - 0.8%
Adobe Systems, Inc. (a)	77,900		3,127,685
EPIQ Systems, Inc. (a)	174,900		2,826,384
Glu Mobile, Inc.	49,500		688,050
Nintendo Co. Ltd.	21,000		7,702,800
Solera Holdings, Inc.	79,900		1,548,462
			15,893,381
TOTAL INFORMATION TECHNOLOGY			139,401,386
MATERIALS - 5.3%
Chemicals - 2.7%
Lanxess AG	18,900		1,058,470
Monsanto Co.	331,600		22,396,264
Potash Corp. of Saskatchewan, Inc.	182,400		14,221,729
The Mosaic Co. (a)	363,800		14,195,476
			51,871,939
Metals & Mining - 2.1%
Anglo American PLC ADR	14,000		410,760
Anglo Platinum Ltd.	4,700		774,074
Aquiline Resources, Inc. (a)	125,000		1,290,777

	Shares		Value
Aquiline Resources, Inc. (a)(e)	70,300		$ 725,933
Arcelor Mittal	197,500		12,324,000
Companhia Vale do Rio Doce sponsored ADR	101,800		4,535,190
European Goldfields Ltd. (a)	278,100		1,472,409
Freeport-McMoRan Copper & Gold, Inc. Class B	115,300		9,549,146
Gold Fields Ltd.	34,400		540,080
Gold Fields Ltd. sponsored ADR	187,900		2,950,030
Guyana Goldfields, Inc.	41,300		394,681
IAMGOLD Corp.	205,000		1,578,033
Impala Platinum Holdings Ltd.	101,200		3,092,875
Meridian Gold, Inc. (a)	14,200		391,636
Tokyo Steel Manufacturing Co. Ltd.	25,500		400,430
			40,430,054
Paper & Forest Products - 0.5%
Abitibi-Consolidated, Inc.	529,000		1,544,417
Bowater, Inc. (d)	75,500		1,883,725
Canfor Corp. New (a)	53,500		676,503
Catalyst Paper Corp. (a)	789,300		2,511,830
Nine Dragons Paper (Holdings) Ltd.	1,155,300		2,692,036
			9,308,511
TOTAL MATERIALS			101,610,504
TELECOMMUNICATION SERVICES - 3.1%
Diversified Telecommunication Services - 1.0%
AT&T, Inc.	461,000		19,131,500
Wireless Telecommunication Services - 2.1%
America Movil SAB de CV Series L sponsored ADR	205,600		12,732,808
American Tower Corp. Class A (a)	203,300		8,538,600
China Mobile (Hong Kong) Ltd. sponsored ADR	63,400		3,417,260
NII Holdings, Inc. (a)	172,000		13,887,280
Taiwan Cellular Co. Ltd.	1,193,000		1,466,654
			40,042,602
TOTAL TELECOMMUNICATION SERVICES			59,174,102
UTILITIES - 1.9%
Electric Utilities - 0.9%
E.ON AG	14,600		2,437,032
Enernoc, Inc.	13,800		526,194
Entergy Corp.	102,600		11,014,110
Reliant Energy, Inc. (a)	119,200		3,212,440
			17,189,776
Independent Power Producers & Energy Traders - 1.0%
Constellation Energy Group, Inc.	97,500		8,499,075
Common Stocks - continued
	Shares		Value
UTILITIES - continued
Independent Power Producers & Energy Traders - continued
Dynegy, Inc. Class A (a)	166,700		$ 1,573,648
NRG Energy, Inc. (a)	239,900		9,972,643
			20,045,366
TOTAL UTILITIES			37,235,142
TOTAL COMMON STOCKS (Cost $716,545,041)		871,246,018
Nonconvertible Preferred Stocks - 0.1%

FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
Istituto Finanziario Industriale SpA (IFI) (a)	27,600		1,109,783
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $1,059,339)		1,109,783
U.S. Treasury Obligations - 0.2%
	Principal Amount
U.S. Treasury Bills, yield at date of purchase 4.87% to 4.94% 7/12/07 (f) (Cost $4,767,336)	$ 4,775,000		4,770,531
Fixed-Income Funds - 42.9%
	Shares
Fidelity Floating Rate Central Fund (g)	579,100		58,170,590
Fidelity High Income Central Fund 1 (g)	328,353		32,914,143
Fidelity VIP Investment Grade Central Fund (g)	7,286,469		737,099,182
TOTAL FIXED-INCOME FUNDS (Cost $838,362,700)		828,183,915
Money Market Funds - 10.5%
	Shares		Value
Fidelity Cash Central Fund, 5.32% (b)	124,350,317		$ 124,350,317
Fidelity Money Market Central Fund, 5.43% (b)	73,860,162		73,860,162
Fidelity Securities Lending Cash Central Fund, 5.4% (b)(c)	3,577,450		3,577,450
TOTAL MONEY MARKET FUNDS (Cost $201,787,929)		201,787,929
TOTAL INVESTMENT PORTFOLIO - 98.8% (Cost $1,762,522,345)			1,907,098,176
NET OTHER ASSETS - 1.2%			23,819,546
NET ASSETS - 100%		$ 1,930,917,722

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Appreciation/ (Depreciation)
Purchased
Equity Index Contracts
170 Dow Jones Euro Stoxx 50 Index Contracts (Germany)	Sept. 2007	$ 10,388,022	$ 199,547
56 FTSE 100 Index Contracts (United Kingdom)	Sept. 2007	7,464,670	115,042
130 S&P 500 Index Contracts	Sept. 2007	49,250,500	(317,525)
47 TOPIX 150 Index Contracts (Japan)	Sept. 2007	6,773,709	(15,051)
TOTAL EQUITY INDEX CONTRACTS		$ 73,876,901	$ (17,987)

The face value of futures purchased as a percentage of net assets - 3.8%

Legend

(a) Non-income producing

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

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

(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,836,756 or 0.1% of net assets.

(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $4,221,045.

(g) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds is available at advisor.fidelity.com. In addition, each Fidelity Central Fund's financial statements are available on the SEC's web site, or upon request.

Affiliated Central Funds

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

Fund	Income earned
Fidelity Cash Central Fund	$ 2,012,396
Fidelity Floating Rate Central Fund	2,471,239
Fidelity High Income Central Fund 1	2,422,953
Fidelity Money Market Central Fund	2,689,869
Fidelity Securities Lending Cash Central Fund	27,904
Fidelity VIP Investment Grade Central Fund	20,245,613
Total	$ 29,869,974

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

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Floating Rate Central Fund	$ 70,731,860	$ -	$ 12,504,160	$ 58,170,590	2.4%
Fidelity High Income Central Fund 1	80,596,646	-	48,155,663	32,914,143	10.9%
Fidelity VIP Investment Grade Central Fund	791,098,507	49,061,216	89,965,060	737,099,182	24.1%
Total	$ 942,427,103	$ 49,061,216	$ 150,624,883	$ 828,183,915	100.0%

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	23.2%
AAA,AA,A	11.1%
BBB	6.6%
BB	2.6%
B	1.4%
CCC,CC,C	0.5%
Not Rated	1.4%
Equities	49.1%
Short-Term Investments and Net Other Assets	4.1%
	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. Percentages are adjusted for the effect of futures contracts, if applicable.

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

United States of America	82.8%
Canada	4.5%
Switzerland	1.5%
United Kingdom	1.5%
Japan	1.3%
Brazil	1.2%
Netherlands	1.1%
Others (individually less than 1%)	6.1%
	100.0%

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 funds.

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

Semiannual Report

VIP Asset Manager Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2007 (Unaudited)
Assets
Investment in securities, at value (including securities loaned of $3,578,100) - See accompanying schedule: Unaffiliated issuers (cost $722,371,716)	$ 877,126,332
Fidelity Central Funds (cost $1,040,150,629)	1,029,971,844
Total Investments (cost $1,762,522,345)		$ 1,907,098,176
Foreign currency held at value (cost $119)		92
Receivable for investments sold		27,356,023
Receivable for fund shares sold		79,181
Dividends receivable		669,527
Distributions receivable from Fidelity Central Funds		4,505,366
Receivable for daily variation on futures contracts		137,621
Prepaid expenses		5,128
Other receivables		105,457
Total assets		1,939,956,571

Liabilities
Payable for investments purchased	$ 2,615,639
Payable for fund shares redeemed	1,584,273
Accrued management fee	822,575
Distribution fees payable	13,139
Other affiliated payables	177,962
Other payables and accrued expenses	247,811
Collateral on securities loaned, at value	3,577,450
Total liabilities		9,038,849

Net Assets		$ 1,930,917,722
Net Assets consist of:
Paid in capital		$ 1,678,393,509
Undistributed net investment income		25,018,271
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		82,949,668
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		144,556,274
Net Assets		$ 1,930,917,722

Statement of Assets and Liabilities - continued

	June 30, 2007 (Unaudited)

Initial Class: Net Asset Value, offering price and redemption price per share ($1,822,704,338 ÷ 114,659,793 shares)		$ 15.90

Service Class: Net Asset Value, offering price and redemption price per share ($16,261,945 ÷ 1,029,638 shares)		$ 15.79

Service Class 2: Net Asset Value, offering price and redemption price per share ($55,939,574 ÷ 3,573,277 shares)		$ 15.65

Investor Class: Net Asset Value, offering price and redemption price per share ($36,011,865 ÷ 2,271,492 shares)		$ 15.85

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

VIP Asset Manager Portfolio

Statement of Operations

	Six months ended June 30, 2007 (Unaudited)
Investment Income
Dividends		$ 4,455,439
Interest		113,281
Income from Fidelity Central Funds		29,869,974
Total income		34,438,694

Expenses
Management fee	$ 5,317,306
Transfer agent fees	719,429
Distribution fees	79,335
Accounting and security lending fees	403,337
Custodian fees and expenses	40,627
Independent trustees' compensation	3,335
Appreciation in deferred trustee compensation account	266
Audit	37,975
Legal	4,256
Miscellaneous	58,980
Total expenses before reductions	6,664,846
Expense reductions	(51,725)	6,613,121
Net investment income (loss)		27,825,573
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	78,098,361
Fidelity Central Funds	5,462,207
Foreign currency transactions	(62,794)
Futures contracts	4,615,350
Capital gain distributions from Fidelity Central Funds	594,304
Total net realized gain (loss)		88,707,428
Change in net unrealized appreciation (depreciation) on: Investment securities	35,103,192
Assets and liabilities in foreign currencies	9,142
Futures contracts	(537,745)
Total change in net unrealized appreciation (depreciation)		34,574,589
Net gain (loss)		123,282,017
Net increase (decrease) in net assets resulting from operations		$ 151,107,590

Statement of Changes in Net Assets

	Six months ended June 30, 2007 Unaudited)	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 27,825,573	$ 66,787,201
Net realized gain (loss)	88,707,428	162,523,758
Change in net unrealized appreciation (depreciation)	34,574,589	(68,032,199)
Net increase (decrease) in net assets resulting from operations	151,107,590	161,278,760
Distributions to shareholders from net investment income	(66,845,425)	(65,774,370)
Distributions to shareholders from net realized gain	(61,310,603)	-
Total distributions	(128,156,028)	(65,774,370)
Share transactions - net increase (decrease)	(279,276,825)	(405,651,778)
Total increase (decrease) in net assets	(256,325,263)	(310,147,388)

Net Assets
Beginning of period	2,187,242,985	2,497,390,373
End of period (including undistributed net investment income of $25,018,271 and undistributed net investment income of $61,631,634, respectively)	$ 1,930,917,722	$ 2,187,242,985

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

Semiannual Report

Financial Highlights - Initial Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
Selected Per-Share Data
Net asset value, beginning of period	$ 15.71	$ 15.04	$ 14.85	$ 14.46	$ 12.75	$ 14.51
Income from Investment Operations
Net investment income (loss)^E	.21	.44	.38	.36^H	.36	.46
Net realized and unrealized gain (loss)	.92	.64	.21	.42	1.83	(1.69)
Total from investment operations	1.13	1.08	.59	.78	2.19	(1.23)
Distributions from net investment income	(.49)	(.41)	(.39)	(.39)	(.48)	(.53)
Distributions from net realized gain	(.45)	-	(.01)	-	-	-
Total distributions	(.94)	(.41)	(.40) ^J	(.39)	(.48)	(.53)
Net asset value, end of period	$ 15.90	$ 15.71	$ 15.04	$ 14.85	$ 14.46	$ 12.75
Total Return^{B, C, D}	7.54%	7.32%	4.04%	5.47%	17.97%	(8.73)%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.63%^A	.65%	.64%	.66%	.63%	.63%
Expenses net of fee waivers, if any	.63%^A	.65%	.64%	.66%	.63%	.63%
Expenses net of all reductions	.63%^A	.63%	.63%	.65%	.62%	.61%
Net investment income (loss)	2.68%^A	2.90%	2.60%	2.53%	2.71%	3.49%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,822,704	$ 2,080,545	$ 2,407,113	$ 2,751,094	$ 3,011,837	$ 2,784,945
Portfolio turnover rate^G	99%^A	173%	44%	66%	82%	140%
^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. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HInvestment income per share reflects a special dividend which amounted to $.04 per share. ^IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^JTotal distributions of $.40 per share is comprised of distributions from net investment income of $.39 and distributions from net realized gain of $.005 per share.

Financial Highlights - Service Class

	Six months ended June 30, 2007	Years ended December 31,
	Unaudited)	2006	2005	2004	2003	2002
Selected Per-Share Data
Net asset value, beginning of period	$ 15.61	$ 14.94	$ 14.75	$ 14.37	$ 12.66	$ 14.41
Income from Investment Operations
Net investment income (loss)^E	.20	.42	.36	.34^H	.34	.44
Net realized and unrealized gain (loss)	.90	.64	.21	.42	1.83	(1.68)
Total from investment operations	1.10	1.06	.57	.76	2.17	(1.24)
Distributions from net investment income	(.47)	(.39)	(.37)	(.38)	(.46)	(.51)
Distributions from net realized gain	(.45)	-	(.01)	-	-	-
Total distributions	(.92)	(.39)	(.38)^J	(.38)	(.46)	(.51)
Net asset value, end of period	$ 15.79	$ 15.61	$ 14.94	$ 14.75	$ 14.37	$ 12.66
Total Return^{B, C, D}	7.40%	7.24%	3.93%	5.36%	17.91%	(8.85)%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.74%^A	.76%	.74%	.77%	.74%	.74%
Expenses net of fee waivers, if any	.74%^A	.76%	.74%	.77%	.74%	.74%
Expenses net of all reductions	.74%^A	.74%	.73%	.76%	.73%	.72%
Net investment income (loss)	2.57%^A	2.79%	2.50%	2.41%	2.59%	3.38%
Supplemental Data
Net assets, end of period (000 omitted)	$ 16,262	$ 24,021	$ 29,382	$ 33,118	$ 32,087	$ 25,692
Portfolio turnover rate^G	99%^A	173%	44%	66%	82%	140%
^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. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HInvestment income per share reflects a special dividend which amounted to $.04 per share. ^IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^JTotal distributions of $.38 per share is comprised of distributions from net investment income of $.37 and distributions from net realized gain of $.005 per share.

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

VIP Asset Manager Portfolio

Financial Highlights - Service Class 2

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
Selected Per-Share Data
Net asset value, beginning of period	$ 15.47	$ 14.82	$ 14.64	$ 14.27	$ 12.59	$ 14.36
Income from Investment Operations
Net investment income (loss)^E	.19	.39	.34	.32^H	.32	.41
Net realized and unrealized gain (loss)	.89	.63	.21	.41	1.81	(1.67)
Total from investment operations	1.08	1.02	.55	.73	2.13	(1.26)
Distributions from net investment income	(.45)	(.37)	(.37)	(.36)	(.45)	(.51)
Distributions from net realized gain	(.45)	-	(.01)	-	-	-
Total distributions	(.90)	(.37)	(.37)^J	(.36)	(.45)	(.51)
Net asset value, end of period	$ 15.65	$ 15.47	$ 14.82	$ 14.64	$ 14.27	$ 12.59
Total Return^{B, C, D}	7.32%	7.06%	3.85%	5.18%	17.66%	(9.03)%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.89%^A	.92%	.90%	.93%	.91%	.90%
Expenses net of fee waivers, if any	.89%^A	.92%	.90%	.93%	.91%	.90%
Expenses net of all reductions	.89%^A	.90%	.89%	.92%	.89%	.88%
Net investment income (loss)	2.42%^A	2.64%	2.34%	2.25%	2.43%	3.22%
Supplemental Data
Net assets, end of period (000 omitted)	$ 55,940	$ 55,585	$ 51,574	$ 36,763	$ 22,456	$ 16,367
Portfolio turnover rate^G	99%^A	173%	44%	66%	82%	140%
^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. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HInvestment income per share reflects a special dividend which amounted to $.04 per share. ^IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^JTotal distributions of $.37 per share is comprised of distributions from net investment income of $.365 and distributions from net realized gain of $.005 per share.

Financial Highlights - Investor Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 15.67	$ 15.03	$ 14.63
Income from Investment Operations
Net investment income (loss)^E	.20	.42	.16
Net realized and unrealized gain (loss)	.91	.63	.24
Total from investment operations	1.11	1.05	.40
Distributions from net investment income	(.48)	(.41)	-
Distributions from net realized gain	(.45)	-	-
Total distributions	(.93)	(.41)	-
Net asset value, end of period	$ 15.85	$ 15.67	$ 15.03
Total Return^{B, C, D}	7.42%	7.16%	2.73%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.75%^A	.78%	.82%^A
Expenses net of fee waivers, if any	.75%^A	.78%	.82%^A
Expenses net of all reductions	.74%^A	.76%	.81%^A
Net investment income (loss)	2.56%^A	2.77%	2.52%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 36,012	$ 27,092	$ 9,322
Portfolio turnover rate^G	99%^A	173%	44%

^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. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HFor the period July 21, 2005 (commencement of sale of shares) to December 31, 2005. ^IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2007 (Unaudited)

1. Organization.

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

2. Investments in Fidelity Central Funds.

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

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

A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of any securities and other investments held indirectly through its fund's investment in underlying non-money market Fidelity Central Funds is available at advisor.fidelity.com. A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.

VIP Asset Manager Portfolio

3. Significant Accounting Policies.

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

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

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

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

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

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

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

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

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.

Book-tax differences are primarily due to swap agreements, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), prior period premium and discount on debt securities, market discount, partnerships (including allocations from Fidelity Central Funds), financing transactions, and losses deferred due to wash sales.

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

Unrealized appreciation	$ 172,436,813
Unrealized depreciation	(7,984,191)
Net unrealized appreciation (depreciation)	$ 164,452,622
Cost for federal income tax purposes Cost	$ 1,742,645,554

4. Operating Policies.

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

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

VIP Asset Manager Portfolio

4. Operating Policies - continued

Mortgage Dollar Rolls. To earn additional income, the Fund 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 may 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 sale 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, a fund's right to repurchase or sell securities may be limited.

5. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities and U.S. government securities, aggregated $929,364,004 and $1,303,352,197, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .51% 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	$ 9,734
Service Class 2	69,601
	$ 79,335

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

Initial Class	$ 661,904
Service Class	7,466
Service Class 2	21,800
Investor Class	28,259
	$ 719,429

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

6. Fees and Other Transactions with Affiliates - continued

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

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $5,143 for the period.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $2,689 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $27,904.

9. Expense Reductions.

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $49,564 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 $1,657.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 27% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 20% of the total outstanding shares of the Fund.

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

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

VIP Asset Manager Portfolio

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended June 30, 2007	Year ended December 31, 2006
From net investment income
Initial Class	$ 63,693,572	$ 63,434,414
Service Class	724,316	706,426
Service Class 2	1,592,037	1,331,968
Investor Class	835,500	301,562
Total	$ 66,845,425	$ 65,774,370
From net realized gain
Initial Class	$ 58,256,317	$ -
Service Class	687,641	-
Service Class 2	1,584,992	-
Investor Class	781,653	-
Total	$ 61,310,603	$ -

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended June 30, 2007	Year ended December 31, 2006	Six months ended June 30, 2007	Year ended December 31, 2006
Initial Class
Shares sold	842,533	2,117,965	$ 13,049,429	$ 31,923,801
Reinvestment of distributions	8,102,983	4,291,909	121,949,889	63,434,414
Shares redeemed	(26,685,241)	(34,074,425)	(414,582,823)	(513,616,796)
Net increase (decrease)	(17,739,725)	(27,664,551)	$ (279,583,505)	$ (418,258,581)
Service Class
Shares sold	105,125	138,220	$ 1,638,985	$ 2,085,823
Reinvestment of distributions	94,382	48,056	1,411,957	706,426
Shares redeemed	(708,700)	(614,188)	(10,683,955)	(9,243,261)
Net increase (decrease)	(509,193)	(427,912)	$ (7,633,013)	$ (6,451,012)
Service Class 2
Shares sold	205,096	2,616,207	$ 3,117,456	$ 38,570,263
Reinvestment of distributions	214,230	91,356	3,177,029	1,331,968
Shares redeemed	(439,205)	(2,595,506)	(6,711,226)	(37,521,668)
Net increase (decrease)	(19,879)	112,057	$ (416,741)	$ 2,380,563
Investor Class
Shares sold	542,909	1,227,221	$ 8,423,514	$ 18,486,890
Reinvestment of distributions	107,738	20,431	1,617,153	301,562
Shares redeemed	(107,815)	(139,388)	(1,684,233)	(2,111,200)
Net increase (decrease)	542,832	1,108,264	$ 8,356,434	$ 16,677,252

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Asset Manager Portfolio

VIP Asset Manager Portfolio

Semiannual Report

VIP Asset Manager Portfolio

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

Fidelity Research & Analysis Company

Fidelity Investments Money Management, Inc.

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

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

Fidelity Service Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VIPAM-SANN-0807
1.705701.109

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

Semiannual Report

June 30, 2007

(2_fidelity_logos) (Registered_Trademark)

Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

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

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

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

VIP Asset Manager: Growth Portfolio

VIP Asset Manager: Growth Portfolio

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2007 to June 30, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value January 1, 2007	Ending Account Value June 30, 2007	Expenses Paid During Period* January 1, 2007 to June 30, 2007
Initial Class
Actual	$ 1,000.00	$ 1,097.60	$ 3.85
Hypothetical^A	$ 1,000.00	$ 1,021.12	$ 3.71
Service Class
Actual	$ 1,000.00	$ 1,097.10	$ 4.37
Hypothetical^A	$ 1,000.00	$ 1,020.63	$ 4.21
Service Class 2
Actual	$ 1,000.00	$ 1,096.20	$ 5.30
Hypothetical^A	$ 1,000.00	$ 1,019.74	$ 5.11
Investor Class
Actual	$ 1,000.00	$ 1,097.00	$ 4.52
Hypothetical^A	$ 1,000.00	$ 1,020.48	$ 4.36

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.74%
Service Class	.84%
Service Class 2	1.02%
Investor Class	.87%

Semiannual Report

VIP Asset Manager: Growth Portfolio

Investment Changes

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

Top Ten Stocks as of June 30, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Research In Motion Ltd.	1.6	1.0
Valero Energy Corp.	1.6	1.2
Monsanto Co.	1.5	1.2
AT&T, Inc.	1.3	1.5
Celgene Corp.	1.1	1.0
Apple, Inc.	1.1	0.3
Exxon Mobil Corp.	1.1	2.1
Ultra Petroleum Corp.	1.1	1.2
Prudential Financial, Inc.	1.0	1.2
Potash Corp. of Saskatchewan, Inc.	1.0	0.0
	12.4
Market Sectors as of June 30, 2007
(stocks only)	% of fund's net assets	% of fund's net assets 6 months ago
Energy	12.1	10.1
Information Technology	9.5	8.6
Materials	6.9	4.0
Health Care	6.2	6.7
Financials	5.6	12.1
Consumer Discretionary	5.5	6.9
Industrials	5.1	7.8
Telecommunication Services	4.1	4.0
Utilities	2.6	0.7
Consumer Staples	2.1	3.8

Asset Allocation (% of fund's net assets)
As of June 30, 2007 *			As of December 31, 2006 **
	Stock Class and Equity Futures 68.5%			Stock Class and Equity Futures 70.5%
	Bond Class 28.3%			Bond Class 28.6%
	Short-Term Class 3.2%			Short-Term Class 0.9%
* Foreign investments		20.2%	** Foreign investments		19.7%

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

VIP Asset Manager: Growth Portfolio

VIP Asset Manager: Growth Portfolio

Investments June 30, 2007 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 59.6%
	Shares		Value
CONSUMER DISCRETIONARY - 5.5%
Diversified Consumer Services - 0.4%
Sotheby's Class A (ltd. vtg.)	22,400		$ 1,030,848
Hotels, Restaurants & Leisure - 1.8%
Burger King Holdings, Inc.	40,700		1,072,038
CKE Restaurants, Inc.	12,200		244,854
Hilton Hotels Corp.	17,200		575,684
McDonald's Corp.	23,900		1,213,164
Nissin Healthcare Food Service Co.	4,500		58,460
Starwood Hotels & Resorts Worldwide, Inc.	6,700		449,369
Vail Resorts, Inc. (a)	7,800		474,786
			4,088,355
Household Durables - 0.1%
Koninklijke Philips Electronics NV	5,900		249,688
Internet & Catalog Retail - 0.8%
Priceline.com, Inc. (a)(d)	26,000		1,787,240
Media - 0.4%
Comcast Corp. Class A (special) (non-vtg.)	12,050		336,918
SES SA FDR unit	10,011		216,782
Virgin Media, Inc.	15,950		388,702
			942,402
Multiline Retail - 0.4%
Kohl's Corp. (a)	5,700		404,871
Saks, Inc.	23,700		505,995
			910,866
Specialty Retail - 0.4%
PETsMART, Inc.	15,800		512,710
Tiffany & Co., Inc.	6,700		355,502
			868,212
Textiles, Apparel & Luxury Goods - 1.2%
Burberry Group PLC	19,600		270,395
Coach, Inc. (a)	13,600		644,504
Crocs, Inc. (a)(d)	12,000		516,360
Polo Ralph Lauren Corp. Class A	5,100		500,361
VF Corp.	9,600		879,168
			2,810,788
TOTAL CONSUMER DISCRETIONARY			12,688,399
CONSUMER STAPLES - 2.1%
Food Products - 0.9%
Cresud S.A.C.I.F. y A. sponsored ADR	7,000		149,730
Nestle SA sponsored ADR	3,300		315,645
Nutreco Holding NV	3,400		249,174
Saskatchewan Wheat Pool, Inc. (a)	800		8,253
Saskatchewan Wheat Pool, Inc. (a)(e)	31,300		322,917
Tyson Foods, Inc. Class A	50,000		1,152,000
			2,197,719

	Shares		Value
Personal Products - 0.4%
Avon Products, Inc.	4,700		$ 172,725
Bare Escentuals, Inc.	12,000		409,800
Kose Corp.	12,200		345,713
			928,238
Tobacco - 0.8%
Altria Group, Inc.	22,300		1,564,122
Philip Morris CR AS	500		259,951
			1,824,073
TOTAL CONSUMER STAPLES			4,950,030
ENERGY - 12.1%
Energy Equipment & Services - 2.8%
GlobalSantaFe Corp.	3,300		238,425
Nabors Industries Ltd. (a)	18,600		620,868
Oceaneering International, Inc. (a)	14,100		742,224
Schlumberger Ltd. (NY Shares)	15,800		1,342,052
Smith International, Inc.	14,300		838,552
Transocean, Inc. (a)	13,100		1,388,338
W-H Energy Services, Inc. (a)	3,800		235,258
Weatherford International Ltd. (a)	18,100		999,844
			6,405,561
Oil, Gas & Consumable Fuels - 9.3%
Apache Corp.	8,000		652,720
Cabot Oil & Gas Corp.	28,800		1,062,144
Cameco Corp.	36,700		1,860,408
Canadian Natural Resources Ltd.	4,700		312,289
China Coal Energy Co. Ltd. (H Shares)	19,000		28,479
DMCI Holdings, Inc.	339,000		68,944
EOG Resources, Inc.	12,500		913,250
Exxon Mobil Corp.	30,200		2,533,176
Marathon Oil Corp.	25,800		1,546,968
NuVista Energy Ltd. (a)	6,500		88,477
Petroplus Holdings AG	19,152		1,972,267
ProEx Energy Ltd. (a)	8,600		121,098
Quicksilver Resources, Inc. (a)	3,800		169,404
Range Resources Corp.	1,600		59,856
Semirara Mining Corp.	155,100		97,315
Suncor Energy, Inc.	2,200		198,181
Sunoco, Inc.	18,600		1,482,048
Tesoro Corp.	15,100		862,965
Ultra Petroleum Corp. (a)	45,700		2,524,468
Uranium One, Inc.	35,800		456,049
Valero Energy Corp.	49,200		3,633,912
Williams Companies, Inc.	24,400		771,528
			21,415,946
TOTAL ENERGY			27,821,507
FINANCIALS - 5.5%
Capital Markets - 1.4%
Charles Schwab Corp.	24,400		500,688
Common Stocks - continued
	Shares		Value
FINANCIALS - continued
Capital Markets - continued
Franklin Resources, Inc.	8,300		$ 1,099,501
Goldman Sachs Group, Inc.	3,200		693,600
Julius Baer Holding AG (Bearer)	6,200		446,120
Pampa Holding SA (a)	115,043		103,062
T. Rowe Price Group, Inc.	5,300		275,017
			3,117,988
Commercial Banks - 1.6%
Banco Bradesco SA (PN) sponsored ADR	44,800		1,080,128
Banco Daycoval SA	15,100		136,206
Banco Itau Holding Financeira SA sponsored ADR (non-vtg.)	32,200		1,430,968
Raiffeisen International Bank Holding AG	1,400		223,013
Shinsei Bank Ltd.	71,000		287,090
Uniao de Bancos Brasileiros SA (Unibanco) GDR	4,200		474,054
			3,631,459
Consumer Finance - 0.2%
SFCG Co. Ltd.	1,130		189,281
Takefuji Corp.	8,360		281,020
			470,301
Insurance - 2.0%
Aioi Insurance Co. Ltd.	29,000		188,608
Benfield Group PLC	39,000		253,156
MetLife, Inc.	22,300		1,437,904
Millea Holdings, Inc.	5,579		229,212
Mitsui Sumitomo Insurance Co. Ltd.	13,000		166,986
Prudential Financial, Inc.	24,100		2,343,243
			4,619,109
Real Estate Investment Trusts - 0.3%
Annaly Capital Management, Inc.	53,800		775,796
Real Estate Management & Development - 0.0%
Inversiones y Representaciones SA sponsored GDR (a)	3,000		55,500
TOTAL FINANCIALS			12,670,153
HEALTH CARE - 6.2%
Biotechnology - 2.1%
Actelion Ltd. (Reg.) (a)	4,835		216,301
Celgene Corp. (a)	45,800		2,625,714
CSL Ltd.	1,200		89,544
Gilead Sciences, Inc. (a)	49,400		1,915,238
			4,846,797
Health Care Equipment & Supplies - 1.3%
Beckman Coulter, Inc.	10,000		646,800
Becton, Dickinson & Co.	11,900		886,550
Cytyc Corp. (a)	25,200		1,086,372
Synthes, Inc.	2,649		318,548
			2,938,270

	Shares		Value
Health Care Providers & Services - 0.9%
Humana, Inc. (a)	19,700		$ 1,199,927
Medco Health Solutions, Inc. (a)	11,800		920,282
			2,120,209
Pharmaceuticals - 1.9%
Elan Corp. PLC sponsored ADR (a)	78,400		1,719,312
Merck & Co., Inc.	40,700		2,026,860
Sanofi-Aventis sponsored ADR	6,400		257,728
Takeda Pharamaceutical Co. Ltd.	7,700		497,662
			4,501,562
TOTAL HEALTH CARE			14,406,838
INDUSTRIALS - 5.1%
Aerospace & Defense - 1.0%
DRS Technologies, Inc.	3,900		223,353
General Dynamics Corp.	7,700		602,294
L-3 Communications Holdings, Inc.	14,500		1,412,155
			2,237,802
Airlines - 0.3%
Ryanair Holdings PLC sponsored ADR (a)	18,300		690,825
Construction & Engineering - 0.0%
Samwhan Corp.	1,940		68,247
Electrical Equipment - 0.7%
ABB Ltd. sponsored ADR	71,700		1,620,420
Industrial Conglomerates - 1.1%
Hutchison Whampoa Ltd.	60,000		595,841
McDermott International, Inc. (a)	24,300		2,019,816
			2,615,657
Machinery - 1.6%
Caterpillar, Inc.	23,100		1,808,730
CNH Global NV	900		45,981
Cummins, Inc.	8,200		829,922
Deere & Co.	1,800		217,332
Kubota Corp.	39,000		316,661
MAN AG	2,900		419,018
			3,637,644
Road & Rail - 0.4%
Burlington Northern Santa Fe Corp.	4,700		400,158
Kansas City Southern (d)	13,200		495,528
			895,686
TOTAL INDUSTRIALS			11,766,281
INFORMATION TECHNOLOGY - 9.5%
Communications Equipment - 2.9%
Cisco Systems, Inc. (a)	33,700		938,545
Harris Corp.	7,600		414,580
Infinera Corp.	12,600		313,992
QUALCOMM, Inc.	20,100		872,139
Common Stocks - continued
	Shares		Value
INFORMATION TECHNOLOGY - continued
Communications Equipment - continued
Research In Motion Ltd. (a)	18,500		$ 3,699,817
Sonus Networks, Inc. (a)	41,000		349,320
			6,588,393
Computers & Peripherals - 1.9%
Apple, Inc. (a)	20,900		2,550,636
Data Domain, Inc.	900		20,700
Dell, Inc. (a)	37,100		1,059,205
EMC Corp. (a)	36,200		655,220
			4,285,761
Electronic Equipment & Instruments - 0.1%
IPG Photonics Corp.	8,900		177,555
Internet Software & Services - 1.6%
Akamai Technologies, Inc. (a)	19,800		963,072
comScore, Inc.	200		4,630
Google, Inc. Class A (sub. vtg.) (a)	4,000		2,093,520
SAVVIS, Inc. (a)	11,800		584,218
			3,645,440
IT Services - 1.2%
Fidelity National Information Services, Inc.	18,700		1,015,036
Mastercard, Inc. Class A (d)	11,300		1,874,331
			2,889,367
Office Electronics - 0.0%
Canon, Inc.	1,700		99,688
Semiconductors & Semiconductor Equipment - 0.8%
Applied Materials, Inc.	64,900		1,289,563
ASML Holding NV (NY Shares) (a)	24,500		672,525
			1,962,088
Software - 1.0%
Adobe Systems, Inc. (a)	12,300		493,845
EPIQ Systems, Inc. (a)	24,300		392,688
Glu Mobile, Inc.	5,200		72,280
Nintendo Co. Ltd.	3,000		1,100,400
Solera Holdings, Inc.	9,500		184,110
			2,243,323
TOTAL INFORMATION TECHNOLOGY			21,891,615
MATERIALS - 6.9%
Chemicals - 3.6%
Lanxess AG	2,900		162,411
Monsanto Co.	53,300		3,599,882
Potash Corp. of Saskatchewan, Inc.	28,900		2,253,333
The Mosaic Co.(a)	57,400		2,239,748
			8,255,374
Metals & Mining - 2.7%
Anglo American PLC ADR	2,200		64,548
Anglo Platinum Ltd.	700		115,288
Aquiline Resources, Inc.(a)	20,300		209,622

	Shares		Value
Aquiline Resources, Inc. (a)(e)	8,600		$ 88,805
Arcelor Mittal	31,200		1,946,880
Companhia Vale do Rio Doce sponsored ADR	16,000		712,800
European Goldfields Ltd. (a)	41,100		217,605
Freeport-McMoRan Copper & Gold, Inc. Class B	18,700		1,548,734
Gold Fields Ltd.	3,500		54,950
Gold Fields Ltd. sponsored ADR	30,200		474,140
Guyana Goldfields, Inc.	6,100		58,294
IAMGOLD Corp.	31,600		243,248
Impala Platinum Holdings Ltd.	16,200		495,104
Meridian Gold, Inc. (a)	2,200		60,676
Tokyo Steel Manufacturing Co. Ltd.	3,600		56,531
			6,347,225
Paper & Forest Products - 0.6%
Abitibi-Consolidated, Inc.	81,500		237,939
Bowater, Inc.	11,600		289,420
Canfor Corp. New (a)	6,700		84,721
Catalyst Paper Corp. (a)	120,000		381,882
Nine Dragons Paper (Holdings) Ltd.	159,600		371,894
			1,365,856
TOTAL MATERIALS			15,968,455
TELECOMMUNICATION SERVICES - 4.1%
Diversified Telecommunication Services - 1.3%
AT&T, Inc.	74,400		3,087,600
Wireless Telecommunication Services - 2.8%
America Movil SAB de CV Series L sponsored ADR	33,200		2,056,076
American Tower Corp. Class A (a)	32,800		1,377,600
China Mobile (Hong Kong) Ltd. sponsored ADR	10,000		539,000
NII Holdings, Inc. (a)	27,700		2,236,498
Taiwan Cellular Co. Ltd.	177,000		217,601
			6,426,775
TOTAL TELECOMMUNICATION SERVICES			9,514,375
UTILITIES - 2.6%
Electric Utilities - 1.2%
E.ON AG	2,200		367,224
Enernoc, Inc.	1,700		64,821
Entergy Corp.	16,600		1,782,010
Reliant Energy, Inc. (a)	18,500		498,575
			2,712,630
Independent Power Producers & Energy Traders - 1.4%
Constellation Energy Group, Inc.	15,800		1,377,286
Common Stocks - continued
	Shares		Value
UTILITIES - continued
Independent Power Producers & Energy Traders - continued
Dynegy, Inc. Class A (a)	26,400		$ 249,216
NRG Energy, Inc.(a)	38,900		1,617,073
			3,243,575
TOTAL UTILITIES			5,956,205
TOTAL COMMON STOCKS (Cost $113,673,028)		137,633,858
Nonconvertible Preferred Stocks - 0.1%

FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
Istituto Finanziario Industriale SpA (IFI) (a)	4,100		164,859
TOTAL NONCONVERTIBLE PREFERRED STOCKS (Cost $157,785)		164,859
U.S. Treasury Obligations - 0.4%
	Principal Amount
U.S. Treasury Bills, yield at date of purchase 4.74% to 4.94% 7/12/07 to 9/6/07 (f) (Cost $966,832)	$ 975,000		967,121
Fixed-Income Funds - 25.9%
	Shares
Fidelity Floating Rate Central Fund (g)	70,521		7,083,834
Fidelity High Income Central Fund 1 (g)	39,175		3,926,866
Fidelity VIP Investment Grade Central Fund (g)	482,473		48,807,013
TOTAL FIXED-INCOME FUNDS (Cost $59,883,644)		59,817,713
Money Market Funds - 13.5%
Fidelity Cash Central Fund, 5.32% (b)	28,388,858		28,388,858
Fidelity Securities Lending Cash Central Fund, 5.4% (b)(c)	2,755,900		2,755,900
TOTAL MONEY MARKET FUNDS (Cost $31,144,758)		31,144,758

TOTAL INVESTMENT PORTFOLIO - 99.5%

(Cost $205,826,047)

229,728,309

NET OTHER ASSETS - 0.5%			1,187,801
NET ASSETS - 100%		$ 230,916,110

Futures Contracts
	Expiration Date	Underlying Face Amount at Value	Unrealized Appreciation/ (Depreciation)
Purchased
Equity Index Contracts
77 Dow Jones Euro Stoxx 50 Index Contracts (Germany)	Sept. 2007	$ 4,705,163	$ 90,383
29 FTSE 100 Index Contracts (United Kingdom)	Sept. 2007	3,865,633	59,575
7 S&P 500 E-Mini Index Contracts	Sept. 2007	530,390	(3,413)
20 S&P 500 Index Contracts	Sept. 2007	7,577,000	(48,850)
27 TOPIX 150 Index Contracts (Japan)	Sept. 2007	3,891,279	(8,653)
TOTAL EQUITY INDEX CONTRACTS		$ 20,569,465	$ 89,042

The face value of futures purchased as a percentage of net
assets -8.9%

Legend

(a) Non-income producing

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

(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $942,316.

(g) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at advisor.fidelity.com. In addition, each Fidelity Central Fund's financial statements are available on the SEC's web site or upon request.

Affiliated Central Funds

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

Fund	Income earned
Fidelity Cash Central Fund	$ 601,329
Fidelity Floating Rate Central Fund	265,220
Fidelity High Income Central Fund 1	239,045
Fidelity Securities Lending Cash Central Fund	7,649
Fidelity VIP Investment Grade Central Fund	1,278,528
Total	$ 2,391,771

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

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Floating Rate Central Fund	$ 7,094,413	$ -	$ -	$ 7,083,834	0.3%
Fidelity High Income Central Fund 1	5,260,980	2,502,684	3,868,187	3,926,866	1.3%
Fidelity VIP Investment Grade Central Fund	51,656,430	1,751,942	3,698,155	48,807,013	1.6%
Total	$ 64,011,823	$ 4,254,626	$ 7,566,342	$ 59,817,713

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	12.8%
AAA,AA,A	6.2%
BBB	3.7%
BB	2.1%
B	1.4%
CCC,CC,C	0.5%
Not Rated	1.3%
Equities	66.6%
Short-Term Investments and Net Other Assets	5.4%
	100.0%

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

United States of America	79.8%
Canada	5.7%
Switzerland	2.0%
Brazil	1.7%
Japan	1.5%
Netherlands	1.4%
United Kingdom	1.1%
Ireland	1.0%
Others (individually less than 1%)	5.8%
	100.0%

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 funds.

Income Tax Information

At December 31, 2006, the fund had a capital loss carryforward of approximately $39,474,862 of which $19,718,609, $11,142,366 and $8,613,887 will expire on December 31, 2009, 2010 and 2011, respectively.

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

VIP Asset Manager: Growth Portfolio

VIP Asset Manager: Growth Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2007 (Unaudited)

Assets
Investment in securities, at value (including securities loaned of $2,819,131) - See accompanying schedule: Unaffiliated issuers (cost $114,797,645)	$ 138,765,838
Fidelity Central Funds (cost $91,028,402)	90,962,471
Total Investments (cost $205,826,047)		$ 229,728,309
Receivable for investments sold		4,223,988
Receivable for fund shares sold		695
Dividends receivable		110,267
Distributions receivable from Fidelity Central Funds		392,565
Receivable for daily variation on futures contracts		91,055
Prepaid expenses		544
Other receivables		3,350
Total assets		234,550,773

Liabilities
Payable to custodian bank	$ 37,933
Payable for investments purchased	361,069
Payable for fund shares redeemed	282,209
Accrued management fee	107,965
Distribution fees payable	1,759
Other affiliated payables	23,283
Other payables and accrued expenses	64,545
Collateral on securities loaned, at value	2,755,900
Total liabilities		3,634,663

Net Assets		$ 230,916,110
Net Assets consist of:
Paid in capital		$ 233,555,251
Undistributed net investment income		2,381,806
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(29,012,564)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		23,991,617
Net Assets		$ 230,916,110

Statement of Assets and Liabilities - continued

	June 30, 2007 (Unaudited)

Initial Class: Net Asset Value, offering price and redemption price per share ($209,041,602 ÷ 14,325,220 shares)		$ 14.59

Service Class: Net Asset Value, offering price and redemption price per share ($4,891,714 ÷ 337,471 shares)		$ 14.50

Service Class 2: Net Asset Value, offering price and redemption price per share ($6,525,135 ÷ 452,427 shares)		$ 14.42

Investor Class: Net Asset Value, offering price and redemption price per share ($10,457,659 ÷ 718,726 shares)		$ 14.55

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

Semiannual Report

VIP Asset Manager: Growth Portfolio
Financial Statements - continued

Statement of Operations

	Six months ended June 30, 2007 (Unaudited)
Investment Income
Dividends		$ 627,463
Interest		20,364
Income from Fidelity Central Funds		2,391,771
Total income		3,039,598

Expenses
Management fee	$ 642,911
Transfer agent fees	86,309
Distribution fees	10,033
Accounting and security lending fees	56,649
Custodian fees and expenses	27,858
Independent trustees' compensation	359
Audit	32,970
Legal	456
Miscellaneous	10,096
Total expenses before reductions	867,641
Expense reductions	(7,113)	860,528
Net investment income (loss)		2,179,070
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	9,914,917
Fidelity Central Funds	162,188
Foreign currency transactions	(30,399)
Futures contracts	1,282,642
Capital gain distributions from Fidelity Central Funds	35,641
Total net realized gain (loss)		11,364,989
Change in net unrealized appreciation (depreciation) on: Investment securities	8,103,216
Assets and liabilities in foreign currencies	564
Futures contracts	(200,247)
Total change in net unrealized appreciation (depreciation)		7,903,533
Net gain (loss)		19,268,522
Net increase (decrease) in net assets resulting from operations		$ 21,447,592

Statement of Changes in Net Assets

	Six months ended June 30, 2007 (Unaudited)	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 2,179,070	$ 4,942,223
Net realized gain (loss)	11,364,989	20,416,971
Change in net unrealized appreciation (depreciation)	7,903,533	(8,351,251)
Net increase (decrease) in net assets resulting from operations	21,447,592	17,007,943
Distributions to shareholders from net investment income	(5,174,407)	(5,395,505)
Share transactions - net increase (decrease)	(15,643,195)	(55,081,737)
Total increase (decrease) in net assets	629,990	(43,469,299)

Net Assets
Beginning of period	230,286,120	273,755,419
End of period (including undistributed net investment income of $2,381,806 and undistributed net investment income of $4,929,195, respectively)	$ 230,916,110	$ 230,286,120

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

VIP Asset Manager: Growth Portfolio

Financial Highlights - Initial Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
Selected Per-Share Data
Net asset value, beginning of period	$ 13.60	$ 12.97	$ 12.78	$ 12.33	$ 10.33	$ 12.56
Income from Investment Operations
Net investment income (loss)^E	.13	.26	.24	.26^H	.26	.32
Net realized and unrealized gain (loss)	1.17	.63	.25	.47	2.06	(2.23)
Total from investment operations	1.30	.89	.49	.73	2.32	(1.91)
Distributions from net investment income	(.31)	(.26)	(.30)	(.28)	(.32)	(.32)
Net asset value, end of period	$ 14.59	$ 13.60	$ 12.97	$ 12.78	$ 12.33	$ 10.33
Total Return^B,C,D	9.76%	6.99%	3.89%	5.98%	23.34%	(15.53)%
Ratios to Average Net Assets^F,I
Expenses before reductions	.74%^A	.77%	.74%	.75%	.73%	.73%
Expenses net of fee waivers, if any	.74%^A	.77%	.74%	.75%	.73%	.73%
Expenses net of all reductions	.74%^A	.73%	.72%	.74%	.72%	.69%
Net investment income (loss)	1.91%^A	2.01%	1.93%	2.15%	2.33%	2.88%
Supplemental Data
Net assets, end of period (000 omitted)	$ 209,042	$ 212,222	$ 260,968	$ 306,137	$ 335,285	$ 284,298
Portfolio turnover rate^G	128%^A	233%	43%	57%	65%	149%
^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. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HInvestment income per share reflects a special dividend which amounted to $.04 per share. ^IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

Financial Highlights - Service Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
Selected Per-Share Data
Net asset value, beginning of period	$ 13.51	$ 12.88	$ 12.69	$ 12.25	$ 10.27	$ 12.47
Income from Investment Operations
Net investment income (loss)^E	.13	.25	.23	.25^H	.24	.30
Net realized and unrealized gain (loss)	1.16	.63	.24	.46	2.05	(2.20)
Total from investment operations	1.29	.88	.47	.71	2.29	(1.90)
Distributions from net investment income	(.30)	(.25)	(.28)	(.27)	(.31)	(.30)
Net asset value, end of period	$ 14.50	$ 13.51	$ 12.88	$ 12.69	$ 12.25	$ 10.27
Total Return^B,C,D	9.71%	6.93%	3.79%	5.85%	23.15%	(15.54)%
Ratios to Average Net Assets^F,I
Expenses before reductions	.84%^A	.87%	.84%	.88%	.85%	.84%
Expenses net of fee waivers, if any	.84%^A	.87%	.84%	.88%	.85%	.84%
Expenses net of all reductions	.84%^A	.83%	.82%	.87%	.84%	.80%
Net investment income (loss)	1.81%^A	1.91%	1.83%	2.02%	2.21%	2.77%
Supplemental Data
Net assets, end of period (000 omitted)	$ 4,892	$ 4,977	$ 5,604	$ 5,907	$ 6,692	$ 6,105
Portfolio turnover rate^G	128%^A	233%	43%	57%	65%	149%
^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. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HInvestment income per share reflects a special dividend which amounted to $.04 per share. ^IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

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

Semiannual Report

Financial Highlights - Service Class 2

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
Selected Per-Share Data
Net asset value, beginning of period	$ 13.42	$ 12.81	$ 12.61	$ 12.19	$ 10.21	$ 12.43
Income from Investment Operations
Net investment income (loss)^E	.11	.22	.20	.22^H	.22	.28
Net realized and unrealized gain (loss)	1.16	.62	.25	.46	2.05	(2.21)
Total from investment operations	1.27	.84	.45	.68	2.27	(1.93)
Distributions from net investment income	(.27)	(.23)	(.25)	(.26)	(.29)	(.29)
Net asset value, end of period	$ 14.42	$ 13.42	$ 12.81	$ 12.61	$ 12.19	$ 10.21
Total Return^B,C,D	9.62%	6.64%	3.65%	5.63%	23.03%	(15.83)%
Ratios to Average Net Assets^F,I
Expenses before reductions	1.02%^A	1.05%	1.03%	1.06%	1.05%	1.03%
Expenses net of fee waivers, if any	1.02%^A	1.05%	1.03%	1.06%	1.05%	1.03%
Expenses net of all reductions	1.02%^A	1.02%	1.02%	1.05%	1.04%	.99%
Net investment income (loss)	1.63%^A	1.73%	1.64%	1.84%	2.01%	2.58%
Supplemental Data
Net assets, end of period (000 omitted)	$ 6,525	$ 6,205	$ 5,854	$ 6,399	$ 6,694	$ 4,044
Portfolio turnover rate^G	128%^A	233%	43%	57%	65%	149%
^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. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HInvestment income per share reflects a special dividend which amounted to $.04 per share. ^IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

Financial Highlights - Investor Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 13.56	$ 12.96	$ 12.60
Income from Investment Operations
Net investment income (loss)^E	.12	.24	.10
Net realized and unrealized gain (loss)	1.17	.63	.26
Total from investment operations	1.29	.87	.36
Distributions from net investment income	(.30)	(.27)	-
Net asset value, end of period	$ 14.55	$ 13.56	$ 12.96
Total Return^B,C,D	9.70%	6.80%	2.86%
Ratios to Average Net Assets^F,I
Expenses before reductions	.87%^A	.92%	.96%^A
Expenses net of fee waivers, if any	.87%^A	.92%	.96%^A
Expenses net of all reductions	.87%^A	.89%	.94%^A
Net investment income (loss)	1.78%^A	1.86%	1.83%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 10,458	$ 6,882	$ 1,330
Portfolio turnover rate^G	128%^A	233%	43%

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

VIP Asset Manager: Growth Portfolio

Notes to Financial Statements

For the period ended June 30, 2007 (Unaudited)

1. Organization.

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

2. Investments in Fidelity Central Funds.

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

A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds is available at advisor.fidelity.com. A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

3. Significant Accounting Policies - continued

Security Valuation - continued

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

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

Book-tax differences are primarily due to futures transactions, swap agreements, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), prior period premium and discount on debt securities, defaulted bonds, market discount, partnerships, deferred trustees compensation, financing transactions, capital loss carryforwards and losses deferred due to wash sales.

VIP Asset Manager: Growth Portfolio

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

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

Unrealized appreciation	$ 25,777,971
Unrealized depreciation	(1,317,092)
Net unrealized appreciation (depreciation)	$ 24,460,879
Cost for federal income tax purposes	$ 205,267,430

4. Operating Policies.

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

5. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities, aggregated $131,078,325 and $164,731,788, respectively.

6. Fees and Other Transactions with Affiliates.

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

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

6. Fees and Other Transactions with Affiliates - continued

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	$ 2,484
Service Class 2	7,549
	$ 10,033

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

Initial Class	$ 72,713
Service Class	1,737
Service Class 2	3,092
Investor Class	8,767
	$ 86,309

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $284 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

9. Expense Reductions.

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $6,577 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 $482.

VIP Asset Manager: Growth Portfolio

10. Other.

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

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended June 30, 2007	Year ended December 31, 2006
From net investment income
Initial Class	$ 4,782,900	$ 5,133,316
Service Class	110,233	109,477
Service Class 2	109,490	111,371
Investor Class	171,784	41,341
Total	$ 5,174,407	$ 5,395,505

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended June 30, 2007	Year ended December 31, 2006	Six months ended June 30, 2007	Year ended December 31, 2006
Initial Class
Shares sold	101,756	471,898	$ 1,417,116	$ 6,042,415
Reinvestment of distributions	352,202	399,480	4,782,899	5,133,316
Shares redeemed	(1,732,523)	(5,386,526)	(24,160,152)	(70,711,679)
Net increase (decrease)	(1,278,565)	(4,515,148)	$ (17,960,137)	$ (59,535,948)
Service Class
Shares sold	13,514	20,643	$ 183,723	$ 268,081
Reinvestment of distributions	8,171	8,573	110,233	109,477
Shares redeemed	(52,731)	(95,735)	(733,674)	(1,232,677)
Net increase (decrease)	(31,046)	(66,519)	$ (439,718)	$ (855,119)
Service Class 2
Shares sold	73,472	122,361	$ 990,505	$ 1,590,518
Reinvestment of distributions	8,147	8,762	109,490	111,371
Shares redeemed	(91,540)	(125,933)	(1,240,665)	(1,612,989)
Net increase (decrease)	(9,921)	5,190	$ (140,670)	$ 88,900
Investor Class
Shares sold	356,578	550,642	$ 4,983,942	$ 7,124,044
Reinvestment of distributions	12,678	3,225	171,784	41,341
Shares redeemed	(158,037)	(148,989)	(2,258,396)	(1,944,955)
Net increase (decrease)	211,219	404,878	$ 2,897,330	$ 5,220,430

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Asset Manager: Growth Portfolio

VIP Asset Manager: Growth Portfolio

Semiannual Report

VIP Asset Manager: Growth Portfolio

Semiannual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

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

Fidelity Research & Analysis Company

Fidelity Investments Money Management, Inc.

Fidelity Investments Japan Limited

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

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VIPAMG-SANN-0807
1.705700.109

Fidelity® Variable Insurance Products:
Investment Grade Bond Portfolio

Semiannual Report

June 30, 2007

(2_fidelity_logos) (Registered_Trademark)

Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>
Fidelity VIP Investment Grade Central Fund Financial Statements	<Click Here>	Complete list of investments and financial statements for Fidelity VIP Investment Grade Central Fund.

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.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

VIP Investment Grade Bond Portfolio

VIP Investment Grade Bond Portfolio

Shareholder Expense Example

The Fund invests in Fidelity Central Funds, which are open-end investment companies with similar investment objectives to those of the Fund, available only to other mutual funds and accounts managed by Fidelity Management & Research Company, (FMR) and its affiliates. In addition to the direct expenses incurred by the Fund presented in the table, as a shareholder of the underlying Fidelity Central Funds, the Fund also indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds. These expenses are not included in the Fund's annualized expense ratio used to calculate either the actual or hypothetical expense estimates presented in the table but are summarized in a footnote to the table.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2007 to June 30, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value January 1, 2007	Ending Account Value June 30, 2007	Expenses Paid During Period* January 1, 2007 to June 30, 2007
Initial Class
Actual	$ 1,000.00	$ 1,005.90	$ 2.19
Hypothetical ^A	$ 1,000.00	$ 1,022.61	$ 2.21
Service Class
Actual	$ 1,000.00	$ 1,005.10	$ 2.68
Hypothetical ^A	$ 1,000.00	$ 1,022.12	$ 2.71
Service Class 2
Actual	$ 1,000.00	$ 1,004.30	$ 3.43
Hypothetical ^A	$ 1,000.00	$ 1,021.37	$ 3.46
Investor Class
Actual	$ 1,000.00	$ 1,005.10	$ 2.39
Hypothetical ^A	$ 1,000.00	$ 1,022.41	$ 2.41

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.44%
Service Class	.54%
Service Class 2	.69%
Investor Class	.48%

In addition to the expenses noted above, the Fund also indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of Fidelity VIP Investment Grade Central Fund and Fidelity Specialized High Income Central Fund as of their most recent fiscal half-year were both less than .01%.

Semiannual Report

VIP Investment Grade Bond Portfolio

Investment Changes

The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity VIP Investment Grade Central Fund and Fidelity Specialized High Income Central Fund.

Quality Diversification (% of fund's net assets)
As of June 30, 2007		As of December 31, 2006
	U.S. Government and U.S. Government Agency Obligations 58.1%		U.S. Government and U.S. Government Agency Obligations 51.0%
	AAA 16.4%		AAA 14.0%
	AA 6.1%		AA 5.2%
	A 5.8%		A 6.3%
	BBB 17.1%		BBB 17.2%
	BB and Below 3.3%		BB and Below 2.6%
	Not Rated 0.7%		Not Rated 0.5%
	Short-Term Investments and Net Other Assets*** (7.5)%		Short-Term Investments and Net Other Assets 3.2%

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

Weighted Average Maturity as of June 30, 2007
		6 months ago
Years	5.6	5.4

The weighted average maturity is based on the dollar-weighted average length of time until principal payments are expected or until securities reach maturity, taking into account any maturity shortening feature such as a call, refunding or redemption provision.

Duration as of June 30, 2007
		6 months ago
Years	4.5	4.0

Duration shows how much a bond fund's price fluctuates with changes in comparable interest rates. If rates rise 1%, for example, a fund with a five-year duration is likely to lose about 5% of its value. Other factors also can influence a bond fund's performance and share price. Accordingly, a bond fund's actual performance may differ from this example.

Asset Allocation (% of fund's net assets)
As of June 30, 2007 *			As of December 31, 2006 **
	Corporate Bonds 23.6%			Corporate Bonds 23.2%
	U.S. Government and U.S. Government Agency Obligations 58.1%			U.S. Government and U.S. Government Agency Obligations 51.0%
	Asset-Backed Securities 11.3%			Asset-Backed Securities 10.7%
	CMOs and Other Mortgage Related Securities 14.3%			CMOs and Other Mortgage Related Securities 11.1%
	Other Investments 0.2%			Other Investments 0.8%
	Short-Term Investments and Net Other Assets*** (7.5)%			Short-Term Investments and Net Other Assets 3.2%
* Foreign investments		6.9%	** Foreign investments		8.8%
* Futures and Swaps		15.3%	** Futures and Swaps		17.8%

***Short-Term Investments and Net Other Assets are not included in the pie chart.

VIP Investment Grade Bond Portfolio

VIP Investment Grade Bond Portfolio

Investments June 30, 2007 (Unaudited)

Showing Percentage of Net Assets

Fixed-Income Central Funds - 97.1%
	Shares		Value
INVESTMENT GRADE FIXED-INCOME FUNDS - 96.2%
Fidelity VIP Investment Grade Central Fund (e)	20,783,179		$ 2,102,426,410
HIGH YIELD FIXED-INCOME FUNDS - 0.9%
Fidelity Specialized High Income Central Fund (d)	200,090		19,954,976
TOTAL FIXED-INCOME CENTRAL FUNDS (Cost $2,171,058,115)		2,122,381,386
Nonconvertible Bonds - 0.2%
	Principal Amount
CONSUMER STAPLES - 0.0%
Tobacco - 0.0%
Reynolds American, Inc. 6.75% 6/15/17	$ 75,000		75,870
FINANCIALS - 0.1%
Real Estate Management & Development - 0.1%
Realogy Corp. 7.5% 10/15/16 (a)	2,540,000		2,540,000
UTILITIES - 0.1%
Multi-Utilities - 0.1%
CMS Energy Corp. 6.55% 7/17/17 (b)	1,875,000		1,849,929
TOTAL NONCONVERTIBLE BONDS (Cost $4,515,632)		4,465,799
Asset-Backed Securities - 0.3%

Advanta Business Card Master Trust Series 2007-D1 Class D, 6.72% 1/22/13 (a)(c)	1,800,000		1,799,979
AmeriCredit Prime Automobile Receivables Trust Series 2007-1 Class E, 6.96% 3/31/16 (a)	1,045,000		1,041,395
Ford Credit Auto Owner Trust:
Series 2006-C Class D, 6.89% 5/15/13 (a)	725,000		722,136
Series 2007-A Class D, 7.05% 12/15/13 (a)	425,000		424,452
GS Auto Loan Trust Series 2006-1 Class D, 6.25% 1/15/14 (a)	1,245,000		1,235,365
Wachovia Auto Loan Trust Series 2006-2A Class E, 7.05% 5/20/14 (a)	1,175,000		1,165,663
WaMu Asset-Backed Certificates Series 2006-HE5 Class B1, 7.82% 10/25/36 (a)(c)	1,025,000		512,500
TOTAL ASSET-BACKED SECURITIES (Cost $7,272,986)		6,901,490
Collateralized Mortgage Obligations - 0.2%
	Principal Amount		Value
Private Sponsor - 0.1%
Nomura Home Equity Loan, Inc. floater Series 2006-FM2 Class B1, 7.62% 7/25/36 (a)(c)	$ 3,535,000		$ 1,237,250
Structured Asset Securities Corp. floater Series 2006-BC5 Class B, 7.82% 12/25/36 (a)(c)	810,000		403,542
TOTAL PRIVATE SPONSOR			1,640,792
U.S. Government Agency - 0.1%
Fannie Mae subordinate REMIC pass-thru certificates planned amortization class Series 2003-128 Class NE, 4% 12/25/16	3,576,143		3,377,892
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $7,243,382)		5,018,684

Cash Equivalents - 1.8%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at 5.36%, dated 6/29/07 due 7/2/07 (Collateralized by U.S. Government Obligations) # (Cost $39,000,000)	$ 39,017,404		39,000,000
TOTAL INVESTMENT PORTFOLIO - 99.6% (Cost $2,229,090,115)			2,177,767,359
NET OTHER ASSETS - 0.4%			9,190,579
NET ASSETS - 100%		$ 2,186,957,938

Swap Agreements
	Expiration Date	Notional Amount	Value
Credit Default Swaps
Receive quarterly notional amount multiplied by .72% and pay Bank of America upon credit event of Alleghany Energy Supply Co. LLC, par value of the notional amount of Alleghany Energy Supply Co. LLC 8.25% 4/15/12	June 2012	$ 1,900,000	$ (12,461)
Receive quarterly notional amount multiplied by .78% and pay Deutsche Bank upon credit event of Allegheny Energy Supply Co. LLC, par value of the notional amount of Allegheny Energy Supply Co. LLC 8.25% 4/15/12	June 2012	1,865,000	(8,118)
		$ 3,765,000	$ (20,579)

Legend

(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $11,082,282 or 0.5% of net assets.

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

(d) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at advisor.fidelity.com. In addition, each Fidelity Central Fund's financial statements are available on the SEC's web site or upon request.

(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. Fidelity VIP Investment Grade Central Fund's investment and financial statements are included at the end of this report as an attachment.

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

Repurchase Agreement / Counterparty	Value
$39,000,000 due 7/02/07 at 5.36%
ABN AMRO Bank N.V., New York Branch	$ 2,387,773
BNP Paribas Securities Corp.	1,552,052
Banc of America Securities LLC	11,758,189
Bank of America, NA	4,775,546
Barclays Capital, Inc.	4,669,714
Bear Stearns & Co., Inc.	5,897,483
UBS Securities LLC	7,959,243
	$ 39,000,000

Affiliated Central Funds

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

Fund	Income earned
Fidelity Specialized High Income Central Fund	$ 706,792
Fidelity VIP Investment Grade Central Fund	51,350,533
Total	$ 52,057,325

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

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Specialized High Income Central Fund	$ 20,241,104	$ -	$ -	$ 19,954,976	9.5%
Fidelity VIP Investment Grade Central Fund	1,824,890,441	315,251,127	-	2,102,426,410	68.6%
Total	$ 1,845,131,545	$ 315,251,127	$ -	$ 2,122,381,386

Income Tax Information

At December 31, 2006, the fund had a capital loss carryforward of approximately $6,570,319 all of which will expire on December 31, 2014.

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

Semiannual Report

VIP Investment Grade Bond Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2007 (Unaudited)

Assets
Investment in securities, at value (including repurchase agreements of $39,000,000) - See accompanying schedule: Unaffiliated issuers (cost $58,032,000)	$ 55,385,973
Fidelity Central Funds (cost $2,171,058,115)	2,122,381,386
Total Investments (cost $2,229,090,115)		$ 2,177,767,359
Cash		635
Receivable for fund shares sold		4,066,367
Interest receivable		74,032
Distributions receivable from Fidelity Central Funds		8,800,610
Prepaid expenses		4,068
Total assets		2,190,713,071

Liabilities
Payable for investments purchased on a delayed delivery basis	$ 1,870,163
Payable for fund shares redeemed	853,158
Swap agreements, at value	20,579
Accrued management fee	575,416
Distribution fees payable	149,163
Other affiliated payables	185,741
Other payables and accrued expenses	100,913
Total liabilities		3,755,133

Net Assets		$ 2,186,957,938
Net Assets consist of:
Paid in capital		$ 2,196,028,942
Undistributed net investment income		47,447,126
Accumulated undistributed net realized gain (loss) on investments		(5,174,795)
Net unrealized appreciation (depreciation) on investments		(51,343,335)
Net Assets		$ 2,186,957,938

Statement of Assets and Liabilities - continued

	June 30, 2007 (Unaudited)

Initial Class: Net Asset Value, offering price and redemption price per share ($1,165,459,636 ÷ 94,662,660 shares)		$ 12.31

Service Class: Net Asset Value, offering price and redemption price per share ($123,515,421 ÷ 10,097,473 shares)		$ 12.23

Service Class 2: Net Asset Value, offering price and redemption price per share ($669,372,518 ÷ 55,256,418 shares)		$ 12.11

Investor Class: Net Asset Value, offering price and redemption price per share ($228,610,363 ÷ 18,609,509 shares)		$ 12.28

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

VIP Investment Grade Bond Portfolio

Statement of Operations

	Six months ended June 30, 2007 (Unaudited)

Investment Income
Interest		$ 1,315,384
Income from Fidelity Central Funds		52,057,325
Total income		53,372,709

Expenses
Management fee	$ 3,268,251
Transfer agent fees	738,678
Distribution fees	774,670
Accounting fees and expenses	338,890
Custodian fees and expenses	645
Independent trustees' compensation	3,148
Audit	27,892
Legal	2,927
Miscellaneous	143,459
Total expenses before reductions	5,298,560
Expense reductions	(374)	5,298,186
Net investment income		48,074,523
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	(298)
Capital gain distributions from Fidelity Central Funds	1,401,757
Total net realized gain (loss)		1,401,459
Change in net unrealized appreciation (depreciation) on: Investment securities	(40,619,926)
Swap agreements	(20,579)
Total change in net unrealized appreciation (depreciation)		(40,640,505)
Net gain (loss)		(39,239,046)
Net increase (decrease) in net assets resulting from operations		$ 8,835,477

Statement of Changes in Net Assets

	Six months ended June 30, 2007 (Unaudited)	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 48,074,523	$ 83,673,466
Net realized gain (loss)	1,401,459	(4,151,411)
Change in net unrealized appreciation (depreciation)	(40,640,505)	(2,243,592)
Net increase (decrease) in net assets resulting from operations	8,835,477	77,278,463
Distributions to shareholders from net investment income	(80,210,403)	(66,380,131)
Distributions to shareholders from net realized gain	-	(4,008,845)
Total distributions	(80,210,403)	(70,388,976)
Share transactions - net increase (decrease)	307,798,023	251,368,493
Total increase (decrease) in net assets	236,423,097	258,257,980

Net Assets
Beginning of period	1,950,534,841	1,692,276,861
End of period (including undistributed net investment income of $47,447,126 and undistributed net investment income of $80,623,359, respectively)	$ 2,186,957,938	$ 1,950,534,841

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

Semiannual Report

Financial Highlights - Initial Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
Selected Per-Share Data
Net asset value, beginning of period	$ 12.76	$ 12.76	$ 13.25	$ 13.65	$ 13.70	$ 12.92
Income from Investment Operations
Net investment income^E	.296	.591	.523	.476	.467	.610
Net realized and unrealized gain (loss)	(.222)	(.060)	(.243)	.104	.213	.680
Total from investment operations	.074	.531	.280	.580	.680	1.290
Distributions from net investment income	(.524)	(.501)	(.480)	(.570)	(.540)	(.510)
Distributions from net realized gain	-	(.030)	(.290)	(.410)	(.190)	-
Total distributions	(.524)	(.531)	(.770)	(.980)	(.730)	(.510)
Net asset value, end of period	$ 12.31	$ 12.76	$ 12.76	$ 13.25	$ 13.65	$ 13.70
Total Return^{B, C, D}	.59%	4.35%	2.19%	4.46%	5.20%	10.34%
Ratios to Average Net Assets^{F, H}
Expenses before reductions	.44%^A	.44%	.49%	.56%	.54%	.54%
Expenses net of fee waivers, if any	.44%^A	.44%	.49%	.56%	.54%	.54%
Expenses net of all reductions	.44%^A	.44%	.49%	.56%	.54%	.53%
Net investment income	4.78%^A	4.75%	4.12%	3.65%	3.48%	4.71%
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,165,460	$ 1,184,942	$ 1,284,600	$ 1,374,972	$ 1,528,417	$ 1,965,036
Portfolio turnover rate^G	0%^A	34%	157%	170%	218%	192%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

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

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

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

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

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

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratios. The Fund indirectly bears its proportionate share of the expenses of any Fidelity Central Funds. Based on their most recent shareholder report date, the annualized expenses for Fidelity VIP Investment Grade Central Fund and Fidelity Specialized High Income Central Fund were less than .01%.

Financial Highlights - Service Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
Selected Per-Share Data
Net asset value, beginning of period	$ 12.68	$ 12.68	$ 13.18	$ 13.61	$ 13.66	$ 12.89
Income from Investment Operations
Net investment income^E	.287	.575	.511	.456	.448	.591
Net realized and unrealized gain (loss)	(.223)	(.053)	(.246)	.104	.212	.679
Total from investment operations	.064	.522	.265	.560	.660	1.270
Distributions from net investment income	(.514)	(.492)	(.475)	(.580)	(.520)	(.500)
Distributions from net realized gain	-	(.030)	(.290)	(.410)	(.190)	-
Total distributions	(.514)	(.522)	(.765)	(.990)	(.710)	(.500)
Net asset value, end of period	$ 12.23	$ 12.68	$ 12.68	$ 13.18	$ 13.61	$ 13.66
Total Return^{B, C, D}	.51%	4.30%	2.08%	4.32%	5.06%	10.20%
Ratios to Average Net Assets^{F, H}
Expenses before reductions	.54%^A	.54%	.58%	.66%	.64%	.64%
Expenses net of fee waivers, if any	.54%^A	.54%	.58%	.66%	.64%	.64%
Expenses net of all reductions	.54%^A	.54%	.58%	.66%	.64%	.64%
Net investment income	4.68%^A	4.65%	4.06%	3.54%	3.38%	4.60%
Supplemental Data
Net assets, end of period (000 omitted)	$ 123,515	$ 99,633	$ 79,205	$ 50,143	$ 18,305	$ 975
Portfolio turnover rate^G	0%^A	34%	157%	170%	218%	192%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

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

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

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

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

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

VIP Investment Grade Bond Portfolio

Financial Highlights - Service Class 2

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005	2004	2003	2002
Selected Per-Share Data
Net asset value, beginning of period	$ 12.56	$ 12.57	$ 13.08	$ 13.50	$ 13.57	$ 12.82
Income from Investment Operations
Net investment income^E	.275	.551	.488	.435	.427	.571
Net realized and unrealized gain (loss)	(.221)	(.053)	(.248)	.105	.213	.679
Total from investment operations	.054	.498	.240	.540	.640	1.250
Distributions from net investment income	(.504)	(.478)	(.460)	(.550)	(.520)	(.500)
Distributions from net realized gain	-	(.030)	(.290)	(.410)	(.190)	-
Total distributions	(.504)	(.508)	(.750)	(.960)	(.710)	(.500)
Net asset value, end of period	$ 12.11	$ 12.56	$ 12.57	$ 13.08	$ 13.50	$ 13.57
Total Return^{B, C, D}	.43%	4.14%	1.89%	4.19%	4.94%	10.09%
Ratios to Average Net Assets^{F, H}
Expenses before reductions	.69%^A	.69%	.73%	.81%	.79%	.79%
Expenses net of fee waivers, if any	.69%^A	.69%	.73%	.81%	.79%	.79%
Expenses net of all reductions	.69%^A	.69%	.73%	.81%	.79%	.79%
Net investment income	4.53%^A	4.50%	3.90%	3.39%	3.23%	4.45%
Supplemental Data
Net assets, end of period (000 omitted)	$ 669,373	$ 497,504	$ 285,528	$ 186,302	$ 115,411	$ 71,631
Portfolio turnover rate^G	0%^A	34%	157%	170%	218%	192%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

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

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

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

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

Financial Highlights - Investor Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 12.74	$ 12.75	$ 12.65
Income from Investment Operations
Net investment income^E	.292	.583	.242
Net realized and unrealized gain (loss)	(.228)	(.055)	(.142)
Total from investment operations	.064	.528	.100
Distributions from net investment income	(.524)	(.508)	-
Distributions from net realized gain	-	(.030)	-
Total distributions	(.524)	(.538)	-
Net asset value, end of period	$ 12.28	$ 12.74	$ 12.75
Total Return^{B, C, D}	.51%	4.33%	.79%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.48%^A	.48%	.49%^A
Expenses net of fee waivers, if any	.48%^A	.48%	.49%^A
Expenses net of all reductions	.48%^A	.48%	.49%^A
Net investment income	4.75%^A	4.72%	4.40%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 228,610	$ 168,456	$ 42,944
Portfolio turnover rate^G	0%^A	34%	157%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

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

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

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

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

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

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratios. The Fund indirectly bears its proportionate share of the expenses of any Fidelity Central Funds. Based on their most recent shareholder report date, the annualized expenses for Fidelity VIP Investment Grade Central Fund and Fidelity Specialized High Income Central Fund were less than .01%.

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

Semiannual Report

Notes to Financial Statements

For the period ended June 30, 2007 (Unaudited)

1. Organization.

VIP Investment Grade Bond Portfolio (the Fund) is a fund of Variable Insurance Products Fund V (the trust) (formerly of Variable Insurance Products Fund II) and is authorized to issue an unlimited number of shares. Effective April 19, 2007, the Board of Trustees approved an Agreement and Plan of Reorganization whereby the Fund reorganized into Variable Insurance Products Fund V effective June 29, 2007 (Trust Reorganization). The Trust Reorganization does not impact the Fund's investment strategies or Fidelity Management & Research Company's (FMR) management of the Fund. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by FMR and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. The Fund invests substantially all of its assets in VIP Investment Grade Central Fund which is managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR and seeks a high level of income by normally investing in investment-grade debt securities. VIP Investment Grade Central Fund's operating and accounting policies are outlined in its financial statements, included at the end of this report as an attachment.

Fidelity Central Fund

Investment Manager

Investment Objective

Investment Practices

VIP Investment Grade Central Fund

FIMM

Seeks a high level of current income by normally investing in investment-grade debt securities and repurchase agreements.

Delayed Delivery & When Issued Securities

Mortgage Dollar Rolls

Repurchase Agreements

Restricted Securities

Swap Agreements

Fidelity Specialized High Income Central Fund

Fidelity Management & Research Company, Inc. (FMRC)

Seeks a high level of current income by normally investing in income-producing debt securities, with an emphasis on lower-quality debt securities.

Loans & Direct Debt Instruments

Repurchase Agreements

Restricted Securities

A holdings listing for the Fund, which presents direct holdings as well as the pro rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds is available at advisor.fidelity.com. A complete list of holdings for the Fidelity Specialized High Income Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Specialized High Income Central Fund are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices.

VIP Investment Grade Bond Portfolio

3. Significant Accounting Policies - continued

Security Valuation - continued

When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, swap agreements, market discount, partnerships (including allocations from Fidelity Central Funds), deferred trustees compensation, financing transactions, capital loss carryforwards, and prior period premium and discount on debt securities.

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

Unrealized appreciation	$ 16,952,920
Unrealized depreciation	(9,049,231)
Net unrealized appreciation (depreciation)	$ 7,903,689
Cost for federal income tax purposes	$ 2,169,863,670

4. Operating Policies.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

4. Operating Policies - continued

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's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Swap Agreements. The Fund may invest in swaps for the purpose of managing its exposure to interest rate, credit or market risk.

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. The Fund may enter into credit default swaps in which either it or its counterparty act as guarantors. By acting as the guarantor of a swap, a fund assumes the market and credit risk of the underlying instrument including liquidity and loss of value. Periodic payments and premiums received or made by the Fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively

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. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with a fund's custodian in compliance with swap contracts. 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 the Fund's Schedule of Investments under the caption "Swap Agreements."

5. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities and U.S. government securities, aggregated $319,676,731 and $982,232, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and a group fee rate that averaged .12% 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 .32% 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	$ 56,133
Service Class 2	718,537
	$ 774,670

VIP Investment Grade Bond Portfolio

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class with the exception of Investor Class pays a transfer agent fee, excluding out of pocket expenses, equal to an annual rate of .07% of average net assets. Investor Class pays a monthly asset-based transfer agent fee of .10% of average net assets. The total transfer agent fees paid by each class to FIIOC, including out of pocket expenses, were as follows:

Initial Class	$ 404,766
Service Class	37,911
Service Class 2	193,624
Investor Class	102,377
	$ 738,678

7. 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.

8. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $2,389 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

9. Expense Reductions.

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 expenses by $374.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 38% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 22% of the total outstanding shares of the Fund.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Six months ended June 30, 2007	Year ended December 31, 2006
From net investment income
Initial Class	$ 47,987,238	$ 49,399,358
Service Class	4,104,985	3,145,302
Service Class 2	20,916,153	11,428,030
Investor Class	7,202,027	2,407,441
Total	$ 80,210,403	$ 66,380,131
From net realized gain
Initial Class	$ -	$ 2,958,053
Service Class	-	191,787
Service Class 2	-	717,240
Investor Class	-	141,765
Total	$ -	$ 4,008,845

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Six months ended June 30, 2007	Year ended December 31, 2006	Six months ended June 30, 2007	Year ended December 31, 2006
Initial Class
Shares sold	8,634,314	10,837,814	$ 107,476,294	$ 135,193,195
Reinvestment of distributions	3,904,576	4,287,542	47,987,238	52,350,889
Shares redeemed	(10,707,765)	(22,975,071)	(133,638,724)	(284,993,124)
Net increase (decrease)	1,831,125	(7,849,715)	$ 21,824,808	$ (97,449,040)
Service Class
Shares sold	3,149,346	3,518,243	$ 38,940,160	$ 43,182,084
Reinvestment of distributions	336,199	274,884	4,104,985	3,337,089
Shares redeemed	(1,244,462)	(2,181,355)	(15,346,882)	(26,768,294)
Net increase (decrease)	2,241,083	1,611,772	$ 27,698,263	$ 19,750,879
Service Class 2
Shares sold	15,927,241	19,973,590	$ 195,221,377	$ 244,806,904
Reinvestment of distributions	1,728,608	1,008,743	20,916,153	12,145,271
Shares redeemed	(1,998,521)	(4,090,898)	(24,616,410)	(50,132,793)
Net increase (decrease)	15,657,328	16,891,435	$ 191,521,120	$ 206,819,382
Investor Class
Shares sold	5,578,111	10,523,797	$ 69,321,718	$ 130,549,386
Reinvestment of distributions	587,441	208,558	7,202,027	2,542,317
Shares redeemed	(778,762)	(878,446)	(9,769,913)	(10,844,431)
Net increase (decrease)	5,386,790	9,853,909	$ 66,753,832	$ 122,247,272

VIP Investment Grade Bond Portfolio

Board Approval of Investment Advisory Contracts and Management Fees

VIP Investment Grade Bond Portfolio

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

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

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

VIP Investment Grade Bond Portfolio

VIP Investment Grade Bond Portfolio

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Initial Class of the fund was in the first quartile for the one- and five-year periods and the second quartile for the three-year period. The Board also stated that the relative investment performance of Initial Class of the fund compared favorably to its benchmark for the one- and five-year periods, although the fund's three-year cumulative total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.

Semiannual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Investment Grade Bond Portfolio

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

Furthermore, the Board considered that it had approved an amendment (effective June 1, 2005) to the fund's management contract that lowered the fund's individual fund fee rate from 30 basis points to 20 basis points. The Board considered that the chart reflects the fund's lower management fee for 2005, as if the lower rate were in effect for the entire year.

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

The Board noted that the total expenses of each class ranked below its competitive median for 2006.

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

VIP Investment Grade Bond Portfolio

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

Semiannual Report

The following are the financial statements for the Fidelity VIP Investment
Grade Central Fund as of June 30, 2007 which is a direct investment of
VIP Investment Grade Bond Portfolio.

Not Part of Financial Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2007 to June 30, 2007).

Actual Expenses

The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

	Beginning Account Value January 1, 2007	Ending Account Value June 30, 2007	Expenses Paid During Period* January 1, 2007 to June 30, 2007
Actual	$ 1,000.00	$ 1,008.30	$ .02
Hypothetical (5% return per year before expenses)	$ 1,000.00	$ 1,024.78	$ .02

* Expenses are equal to the Fund's annualized expense ratio of .0032%; multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio.

Not Part of Financial Report

Investment Changes

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

Quality Diversification (% of fund's net assets)
As of June 30, 2007		As of December 31, 2006
	U.S. Government and U.S. Government Agency Obligations 60.4%		U.S. Government and U.S. Government Agency Obligations 54.6%
	AAA 17.3%		AAA 14.7%
	AA 6.3%		AA 5.5%
	A 6.0%		A 6.8%
	BBB 17.6%		BBB 18.5%
	BB and Below 2.0%		BB and Below 1.3%
	Not Rated 0.7%		Not Rated 0.5%
	Short-Term Investments and Net Other Assets*** (10.3)%		Short-Term Investments and Net Other Assets*** (1.9)%

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

Weighted Average Maturity as of June 30, 2007
		6 months ago
Years	5.8	5.7

Duration as of June 30, 2007
		6 months ago
Years	4.5	4.2

Asset Allocation (% of fund's net assets)
As of June 30, 2007 *			As of December 31, 2006 **
	Corporate Bonds 23.4%			Corporate Bonds 23.7%
	U.S. Government and U.S. Government Agency Obligations 60.4%			U.S. Government and U.S. Government Agency Obligations 54.6%
	Asset-Backed Securities 11.5%			Asset-Backed Securities 11.2%
	CMOs and Other Mortgage Related Securities 14.8%			CMOs and Other Mortgage Related Securities 11.5%
	Other Investments 0.2%			Other Investments 0.9%
	Short-Term Investments and Net Other Assets*** (10.3)%			Short-Term Investments and Net Other Assets*** (1.9)%
* Foreign investments		6.9%	** Foreign investments		9.0%
* Futures and Swaps		16.0%	** Futures and Swaps		19.0%

***Short-Term Investments and Net Other Assets are not included in the pie chart.

Not Part of Financial Report

Investments June 30, 2007 (Unaudited)

Showing Percentage of Net Assets

Nonconvertible Bonds - 20.6%
	Principal Amount		Value
CONSUMER DISCRETIONARY - 1.4%
Household Durables - 0.2%
Fortune Brands, Inc.:
5.125% 1/15/11	$ 4,010,000		$ 3,912,998
5.875% 1/15/36	1,035,000		896,541
			4,809,539
Media - 1.2%
AOL Time Warner, Inc.:
6.75% 4/15/11	100,000		103,409
6.875% 5/1/12	290,000		302,548
7.625% 4/15/31	1,625,000		1,740,978
Comcast Corp.:
4.95% 6/15/16	2,975,000		2,729,194
5.5% 3/15/11	2,675,000		2,661,545
Cox Communications, Inc.:
4.625% 1/15/10	3,350,000		3,272,089
4.625% 6/1/13	3,475,000		3,254,671
6.45% 12/1/36 (a)	1,560,000		1,500,383
News America Holdings, Inc. 7.75% 12/1/45	1,905,000		2,089,366
News America, Inc. 6.2% 12/15/34	6,695,000		6,241,012
Time Warner Cable, Inc.:
5.85% 5/1/17 (a)	2,467,000		2,399,523
6.55% 5/1/37 (a)	9,000,000		8,698,563
Time Warner, Inc. 5.875% 11/15/16	400,000		389,040
Viacom, Inc. 5.75% 4/30/11	1,410,000		1,407,958
			36,790,279
TOTAL CONSUMER DISCRETIONARY			41,599,818
CONSUMER STAPLES - 0.8%
Beverages - 0.1%
FBG Finance Ltd. 5.125% 6/15/15 (a)	2,185,000		2,047,773
Food & Staples Retailing - 0.3%
CVS Caremark Corp.:
6.036% 12/10/28 (a)	7,365,787		7,148,717
6.302% 6/1/37 (d)	3,895,000		3,833,961
			10,982,678
Food Products - 0.1%
H.J. Heinz Co. 6.428% 12/1/08 (a)(d)	2,935,000		2,964,291
Tobacco - 0.3%
Altria Group, Inc. 7% 11/4/13	505,000		535,627
Philip Morris Companies, Inc. 7.65% 7/1/08	2,500,000		2,547,595

	Principal Amount		Value
Reynolds American, Inc.:
6.75% 6/15/17	$ 3,885,000		$ 3,930,066
7.25% 6/15/37	3,055,000		3,144,948
			10,158,236
TOTAL CONSUMER STAPLES			26,152,978
ENERGY - 2.3%
Energy Equipment & Services - 0.2%
Petronas Capital Ltd. 7% 5/22/12 (a)	6,135,000		6,494,180
Oil, Gas & Consumable Fuels - 2.1%
Amerada Hess Corp. 6.65% 8/15/11	1,045,000		1,079,689
Devon Financing Corp. U.L.C. 6.875% 9/30/11	3,000,000		3,131,805
Duke Capital LLC:
4.37% 3/1/09	3,575,000		3,510,314
6.25% 2/15/13	855,000		867,346
6.75% 2/15/32	4,255,000		4,188,082
Duke Energy Field Services 6.45% 11/3/36 (a)	3,300,000		3,259,809
El Paso Natural Gas Co. 5.95% 4/15/17 (a)	3,330,000		3,225,458
Empresa Nacional de Petroleo 6.75% 11/15/12 (a)	6,135,000		6,391,099
EnCana Holdings Finance Corp. 5.8% 5/1/14	320,000		318,459
Kinder Morgan Energy Partners LP 5.125% 11/15/14	6,045,000		5,701,596
Nakilat, Inc. 6.067% 12/31/33 (a)	4,615,000		4,324,532
National Gas Co. of Trinidad & Tobago Ltd. 6.05% 1/15/36 (a)	925,000		881,266
Nexen, Inc. 5.875% 3/10/35	1,655,000		1,485,242
Pemex Project Funding Master Trust:
5.75% 12/15/15	1,825,000		1,790,325
5.96% 12/3/12 (a)(d)	410,000		415,330
6.125% 8/15/08	6,850,000		6,891,100
6.66% 6/15/10 (a)(d)	4,480,000		4,600,960
Plains All American Pipeline LP:
6.125% 1/15/17 (a)	1,705,000		1,692,201
6.65% 1/15/37 (a)	3,190,000		3,145,206
Ras Laffan Liquid Natural Gas Co. Ltd. III:
5.832% 9/30/16 (a)	2,375,000		2,334,886
6.332% 9/30/27 (a)	2,415,000		2,363,222
Transcontinental Gas Pipe Line Corp. 6.4% 4/15/16	1,380,000		1,390,350
			62,988,277
TOTAL ENERGY			69,482,457
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - 8.9%
Capital Markets - 1.8%
Goldman Sachs Group, Inc.:
5.25% 10/15/13	$ 3,770,000		$ 3,654,766
5.625% 1/15/17	3,000,000		2,875,239
5.7% 9/1/12	2,935,000		2,933,221
6.6% 1/15/12	4,610,000		4,773,738
Janus Capital Group, Inc.:
5.875% 9/15/11	2,041,000		2,044,760
6.25% 6/15/12	6,015,000		6,055,349
JPMorgan Chase Capital XX 6.55% 9/29/36	3,090,000		2,975,812
Lazard Group LLC:
6.85% 6/15/17 (a)	3,230,000		3,232,229
7.125% 5/15/15	5,585,000		5,761,062
Lehman Brothers Holdings, Inc. 6% 5/3/32 (d)	2,960,000		2,791,955
Merrill Lynch & Co., Inc. 4.25% 2/8/10	7,275,000		7,073,679
Morgan Stanley:
4.75% 4/1/14	1,500,000		1,400,759
6.6% 4/1/12	7,695,000		7,980,215
			53,552,784
Commercial Banks - 0.7%
Bank of America NA:
5.3% 3/15/17	1,480,000		1,413,230
6% 10/15/36	1,480,000		1,428,475
Credit Suisse (Guernsey) Ltd. 5.86%	4,785,000		4,610,166
Korea Development Bank 3.875% 3/2/09	5,775,000		5,616,476
SouthTrust Corp. 5.8% 6/15/14	1,440,000		1,437,608
Wachovia Bank NA:
4.875% 2/1/15	4,405,000		4,161,148
5.85% 2/1/37	3,000,000		2,838,939
Wachovia Corp. 4.875% 2/15/14	785,000		748,943
			22,254,985
Consumer Finance - 0.7%
American Express Co. 6.8% 9/1/66 (d)	1,625,000		1,675,568
Capital One Financial Corp. 5.7% 9/15/11	1,375,000		1,368,197
Discover Financial Services 5.89% 6/11/10 (a)(d)	7,050,000		7,049,069
HSBC Finance Corp. 5% 6/30/15	3,525,000		3,301,645
MBNA America Bank NA 7.125% 11/15/12	1,075,000		1,147,285
MBNA Corp. 7.5% 3/15/12	1,860,000		2,003,458
SLM Corp.:
4.5% 7/26/10	645,000		596,376
5.515% 7/26/10 (d)	4,082,000		3,872,001
			21,013,599

	Principal Amount		Value
Diversified Financial Services - 1.3%
Bank of America Corp. 7.4% 1/15/11	$ 9,125,000		$ 9,660,665
Citigroup, Inc.:
5% 9/15/14	2,325,000		2,211,684
6.125% 8/25/36	6,000,000		5,891,508
JPMorgan Chase & Co.:
4.891% 9/1/15 (d)	20,000		19,611
5.6% 6/1/11	127,000		127,298
5.75% 1/2/13	3,500,000		3,500,907
JPMorgan Chase Capital XVII 5.85% 8/1/35	6,975,000		6,340,498
Prime Property Funding, Inc.:
5.125% 6/1/15 (a)	3,375,000		3,190,256
5.5% 1/15/14 (a)	2,405,000		2,377,852
ZFS Finance USA Trust II 6.45% 12/15/65 (a)(d)	3,400,000		3,297,850
ZFS Finance USA Trust V 6.5% 5/9/67 (a)(d)	2,035,000		1,968,140
			38,586,269
Insurance - 0.6%
AMBAC Financial Group, Inc. 6.15% 2/15/37	2,680,000		2,401,988
Axis Capital Holdings Ltd. 5.75% 12/1/14	420,000		408,035
Lincoln National Corp. 7% 5/17/66 (d)	5,510,000		5,653,701
Marsh & McLennan Companies, Inc. 7.125% 6/15/09	4,259,000		4,365,696
Principal Life Global Funding I 6.25% 2/15/12 (a)	2,310,000		2,376,119
Symetra Financial Corp. 6.125% 4/1/16 (a)	3,855,000		3,812,279
			19,017,818
Real Estate Investment Trusts - 2.6%
AMB Property LP 5.9% 8/15/13	2,575,000		2,578,059
Archstone-Smith Operating Trust 5.25% 5/1/15	6,480,000		6,264,326
Arden Realty LP 5.25% 3/1/15	625,000		606,895
Brandywine Operating Partnership LP:
4.5% 11/1/09	1,365,000		1,333,316
5.625% 12/15/10	2,260,000		2,257,724
5.7% 5/1/17	5,000,000		4,841,875
5.75% 4/1/12	1,115,000		1,113,942
Camden Property Trust 5.375% 12/15/13	1,655,000		1,612,677
Colonial Properties Trust:
4.75% 2/1/10	615,000		601,811
5.5% 10/1/15	6,290,000		6,045,520
Developers Diversified Realty Corp.:
3.875% 1/30/09	1,010,000		983,909
4.625% 8/1/10	225,000		218,345
5% 5/3/10	2,435,000		2,392,302
Nonconvertible Bonds - continued
	Principal Amount		Value
FINANCIALS - continued
Real Estate Investment Trusts - continued
Developers Diversified Realty Corp.: - continued
5.25% 4/15/11	$ 1,395,000		$ 1,371,380
5.375% 10/15/12	1,240,000		1,215,126
Duke Realty LP:
4.625% 5/15/13	925,000		876,916
5.5% 3/1/16	1,270,000		1,233,536
5.625% 8/15/11	2,325,000		2,319,836
5.95% 2/15/17	685,000		682,351
6.95% 3/15/11	1,535,000		1,599,409
Equity One, Inc. 6% 9/15/17 (a)	1,760,000		1,721,562
Federal Realty Investment Trust 5.4% 12/1/13	1,390,000		1,350,527
Hospitality Properties Trust 5.625% 3/15/17	4,210,000		4,017,498
HRPT Properties Trust:
5.75% 11/1/15	670,000		655,052
6.25% 6/15/17	4,455,000		4,488,871
Liberty Property LP 5.5% 12/15/16	1,715,000		1,648,070
Mack-Cali Realty LP:
5.05% 4/15/10	1,735,000		1,704,429
7.25% 3/15/09	1,085,000		1,114,137
Reckson Operating Partnership LP:
5.15% 1/15/11	795,000		773,641
6% 3/31/16	3,099,000		2,955,045
Simon Property Group LP:
4.6% 6/15/10	2,965,000		2,887,065
4.875% 8/15/10	2,455,000		2,409,141
5% 3/1/12	2,060,000		2,005,698
5.1% 6/15/15	3,210,000		3,051,266
5.375% 6/1/11	2,020,000		2,004,852
7.75% 1/20/11	595,000		635,857
UDR, Inc. 5.5% 4/1/14	2,690,000		2,623,597
United Dominion Realty Trust, Inc. 5.25% 1/15/15	890,000		848,521
Washington (REIT) 5.95% 6/15/11	3,015,000		3,032,394
			80,076,478
Real Estate Management & Development - 0.5%
ERP Operating LP 5.5% 10/1/12	1,585,000		1,570,150
Post Apartment Homes LP 6.3% 6/1/13	2,655,000		2,702,933
Realogy Corp.:
7.15% 10/15/11 (a)	2,045,000		2,050,113
7.5% 10/15/16 (a)	4,620,000		4,620,000
Regency Centers LP:
5.875% 6/15/17	3,005,000		2,955,123
6.75% 1/15/12	2,035,000		2,115,049
			16,013,368

	Principal Amount		Value
Thrifts & Mortgage Finance - 0.7%
Capmark Financial Group, Inc.:
5.875% 5/10/12 (a)	$ 3,610,000		$ 3,562,691
6.3% 5/10/17 (a)	1,400,000		1,377,674
Independence Community Bank Corp. 3.75% 4/1/14 (d)	3,820,000		3,695,017
Residential Capital LLC 6.5% 6/1/12	6,000,000		5,854,758
Washington Mutual, Inc. 4.625% 4/1/14	7,200,000		6,617,642
			21,107,782
TOTAL FINANCIALS			271,623,083
HEALTH CARE - 0.1%
Pharmaceuticals - 0.1%
Teva Pharmaceutical Finance LLC 5.55% 2/1/16	2,940,000		2,817,067
INDUSTRIALS - 2.0%
Aerospace & Defense - 0.3%
BAE Systems Holdings, Inc. 4.75% 8/15/10 (a)	3,465,000		3,388,236
Bombardier, Inc.:
6.3% 5/1/14 (a)	4,515,000		4,289,250
7.45% 5/1/34 (a)	420,000		405,300
			8,082,786
Airlines - 1.3%
American Airlines, Inc. pass thru trust certificates:
6.855% 10/15/10	208,963		210,008
6.978% 10/1/12	673,976		681,559
7.024% 4/15/11	2,180,000		2,212,700
7.858% 4/1/13	3,480,000		3,680,100
Continental Airlines, Inc. pass thru trust certificates:
6.648% 3/15/19	2,200,921		2,217,428
6.795% 2/2/20	3,776,335		3,719,690
Delta Air Lines, Inc. pass thru trust certificates 7.57% 11/18/10	4,650,000		4,825,352
U.S. Airways pass thru trust certificates:
6.85% 7/30/19	1,552,668		1,610,893
8.36% 7/20/20	5,803,527		6,311,336
United Airlines pass thru trust certificates:
6.071% 9/1/14	741,407		745,114
6.201% 3/1/10	314,832		317,981
6.602% 9/1/13	948,785		955,901
7.032% 4/1/12	1,459,553		1,473,244
Nonconvertible Bonds - continued
	Principal Amount		Value
INDUSTRIALS - continued
Airlines - continued
United Airlines pass thru trust certificates: - continued
7.186% 10/1/12	$ 3,617,033		$ 3,698,417
United Air Lines, Inc. pass-thru certificates Class 1A, 6.636% 7/2/22	6,120,000		6,089,400
			38,749,123
Commercial Services & Supplies - 0.1%
R.R. Donnelley & Sons Co. 5.5% 5/15/15	3,395,000		3,144,415
Industrial Conglomerates - 0.3%
Hutchison Whampoa International 03/33 Ltd. 5.45% 11/24/10 (a)	3,600,000		3,576,758
Hutchison Whampoa International Ltd. 6.5% 2/13/13 (a)	6,485,000		6,671,042
			10,247,800
TOTAL INDUSTRIALS			60,224,124
INFORMATION TECHNOLOGY - 0.2%
IT Services - 0.0%
The Western Union Co. 5.4% 11/17/11	2,365,000		2,333,257
Semiconductors & Semiconductor Equipment - 0.2%
Chartered Semiconductor Manufacturing Ltd. 5.75% 8/3/10	195,000		195,316
National Semiconductor Corp. 6.15% 6/15/12	5,265,000		5,325,068
			5,520,384
TOTAL INFORMATION TECHNOLOGY			7,853,641
MATERIALS - 0.2%
Metals & Mining - 0.2%
United States Steel Corp. 6.65% 6/1/37	2,270,000		2,198,261
Vale Overseas Ltd. 6.25% 1/23/17	3,115,000		3,089,519
			5,287,780
Paper & Forest Products - 0.0%
International Paper Co. 4.25% 1/15/09	1,900,000		1,861,905
TOTAL MATERIALS			7,149,685
TELECOMMUNICATION SERVICES - 1.7%
Diversified Telecommunication Services - 1.4%
AT&T Broadband Corp. 8.375% 3/15/13	2,150,000		2,400,067
AT&T, Inc. 6.8% 5/15/36	3,550,000		3,676,721

	Principal Amount		Value
British Telecommunications plc 9.125% 12/15/30	$ 2,250,000		$ 2,944,766
Deutsche Telekom International Finance BV 5.25% 7/22/13	2,500,000		2,417,653
SBC Communications, Inc.:
6.15% 9/15/34	1,180,000		1,131,395
6.45% 6/15/34	3,620,000		3,577,440
Sprint Capital Corp.:
6.875% 11/15/28	2,610,000		2,484,362
8.75% 3/15/32	5,210,000		5,851,507
Telecom Italia Capital SA:
4.95% 9/30/14	2,000,000		1,853,052
7.2% 7/18/36	1,470,000		1,511,253
Telefonica Emisiones SAU:
6.221% 7/3/17 (b)	2,885,000		2,877,776
7.045% 6/20/36	3,645,000		3,774,678
Verizon Global Funding Corp. 7.75% 12/1/30	5,043,000		5,648,982
Verizon New York, Inc. 6.875% 4/1/12	1,095,000		1,141,656
			41,291,308
Wireless Telecommunication Services - 0.3%
America Movil SAB de CV 4.125% 3/1/09	1,755,000		1,720,993
AT&T Wireless Services, Inc.:
7.875% 3/1/11	740,000		795,632
8.125% 5/1/12	1,130,000		1,242,485
Sprint Nextel Corp. 6% 12/1/16	2,710,000		2,570,855
Vodafone Group PLC 5% 12/16/13	3,890,000		3,693,361
			10,023,326
TOTAL TELECOMMUNICATION SERVICES			51,314,634
UTILITIES - 3.0%
Electric Utilities - 1.5%
AmerenUE 6.4% 6/15/17	6,014,000		6,135,537
Cleveland Electric Illuminating Co. 5.65% 12/15/13	4,640,000		4,545,590
Commonwealth Edison Co. 5.4% 12/15/11	2,394,000		2,344,966
Exelon Corp.:
4.9% 6/15/15	5,075,000		4,670,314
6.75% 5/1/11	2,230,000		2,297,611
FirstEnergy Corp. 6.45% 11/15/11	2,980,000		3,055,731
Nevada Power Co. 6.5% 5/15/18	3,165,000		3,284,954
PPL Capital Funding, Inc. 6.7% 3/30/67 (d)	6,230,000		5,999,004
Progress Energy, Inc.:
5.625% 1/15/16	2,000,000		1,958,932
7.1% 3/1/11	3,277,000		3,433,827
TXU Energy Co. LLC 7% 3/15/13	7,275,000		7,504,090
			45,230,556
Nonconvertible Bonds - continued
	Principal Amount		Value
UTILITIES - continued
Gas Utilities - 0.2%
NiSource Finance Corp.:
5.4% 7/15/14	$ 3,885,000		$ 3,734,876
5.45% 9/15/20	2,135,000		1,931,167
7.875% 11/15/10	925,000		984,924
Texas Eastern Transmission Corp. 7.3% 12/1/10	185,000		194,600
			6,845,567
Independent Power Producers & Energy Traders - 0.4%
Constellation Energy Group, Inc. 7% 4/1/12	5,735,000		6,008,657
PPL Energy Supply LLC:
5.7% 10/15/35	3,030,000		2,926,080
6.2% 5/15/16	2,715,000		2,690,171
TXU Corp. 5.55% 11/15/14	980,000		852,600
			12,477,508
Multi-Utilities - 0.9%
Dominion Resources, Inc.:
4.75% 12/15/10	3,540,000		3,457,277
6.25% 6/30/12	3,230,000		3,354,297
6.3% 9/30/66 (d)	4,255,000		4,279,556
DTE Energy Co. 7.05% 6/1/11	3,500,000		3,656,891
MidAmerican Energy Holdings, Co. 5.875% 10/1/12	2,880,000		2,904,846
National Grid PLC 6.3% 8/1/16	7,060,000		7,188,838
TECO Energy, Inc. 7% 5/1/12	1,740,000		1,798,073
WPS Resources Corp. 6.11% 12/1/66 (d)	2,330,000		2,234,251
			28,874,029
TOTAL UTILITIES			93,427,660
TOTAL NONCONVERTIBLE BONDS (Cost $639,136,422)		631,645,147
U.S. Government and Government Agency Obligations - 27.7%

U.S. Government Agency Obligations - 2.4%
Fannie Mae:
3.25% 2/15/09	3,286,000		3,186,033
4.75% 12/15/10	9,565,000		9,430,306
5% 2/16/12	12,000,000		11,853,750
6.625% 9/15/09	3,020,000		3,108,900
Federal Home Loan Bank 5.375% 8/19/11	8,940,000		8,976,663
Freddie Mac:
4% 6/12/13	17,620,000		16,416,448
4.75% 3/5/09	5,462,000		5,421,035
5.25% 7/18/11	413,000		412,965
5.75% 1/15/12	6,410,000		6,533,476
6.625% 9/15/09	3,475,000		3,576,880

	Principal Amount		Value
Tennessee Valley Authority 5.375% 4/1/56	$ 2,375,000		$ 2,250,714
U.S. Department of Housing and Urban Development Government guaranteed participation certificates Series 1996-A, 7.63% 8/1/14	2,330,000		2,329,711
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS			73,496,881
U.S. Treasury Inflation Protected Obligations - 6.3%
U.S. Treasury Inflation-Indexed Notes:
0.875% 4/15/10	24,215,094		22,989,752
2% 4/15/12	10,183,300		9,877,293
2% 1/15/14 (c)	128,719,848		123,675,161
2% 7/15/14	5,481,300		5,260,746
2.375% 4/15/11	19,266,412		19,049,991
3.5% 1/15/11	11,872,900		12,217,150
TOTAL U.S. TREASURY INFLATION PROTECTED OBLIGATIONS			193,070,093
U.S. Treasury Obligations - 19.0%
U.S. Treasury Bonds 6.25% 5/15/30	46,558,000		53,214,351
U.S. Treasury Notes:
4.25% 8/15/13 (c)	49,752,000		48,037,894
4.25% 8/15/14	50,000,000		47,828,100
4.5% 9/30/11	20,000,000		19,671,880
4.5% 11/30/11	65,000,000		63,892,985
4.75% 1/31/12	110,000,000		109,175,000
4.75% 5/31/12 (b)	154,450,000		153,244,899
4.75% 5/15/14	86,307,000		85,228,163
TOTAL U.S. TREASURY OBLIGATIONS			580,293,272
TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $858,987,156)		846,860,246
U.S. Government Agency - Mortgage Securities - 27.9%

Fannie Mae - 23.3%
3.753% 10/1/33 (d)	276,382		275,926
3.786% 6/1/34 (d)	1,361,644		1,336,726
3.802% 6/1/33 (d)	236,887		237,975
3.836% 10/1/33 (d)	3,329,521		3,301,262
3.847% 10/1/33 (d)	6,677,236		6,670,111
3.947% 5/1/33 (d)	81,849		81,458
3.995% 10/1/18 (d)	202,064		200,397
4% 8/1/18 to 6/1/19	3,617,564		3,353,180
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Fannie Mae - continued
4.013% 4/1/33 (d)	$ 77,617		$ 77,878
4.076% 2/1/35 (d)	162,581		162,940
4.1% 1/1/35 (d)	462,954		464,449
4.166% 1/1/35 (d)	602,022		590,743
4.25% 2/1/35 (d)	289,319		284,327
4.267% 5/1/35 (d)	290,073		290,142
4.282% 10/1/33 (d)	113,015		112,327
4.291% 3/1/33 (d)	294,130		295,836
4.291% 8/1/33 (d)	510,599		511,620
4.294% 3/1/35 (d)	256,815		258,195
4.302% 6/1/33 (d)	142,521		143,731
4.303% 3/1/33 (d)	154,794		152,104
4.315% 4/1/35 (d)	131,283		131,190
4.345% 1/1/35 (d)	309,576		304,662
4.365% 2/1/34 (d)	572,159		568,107
4.396% 2/1/35 (d)	445,007		437,493
4.422% 5/1/35 (d)	223,922		224,228
4.432% 3/1/35 (d)	407,618		400,935
4.435% 5/1/35 (d)	780,812		780,264
4.443% 8/1/34 (d)	826,383		820,970
4.487% 3/1/35 (d)	922,574		908,572
4.498% 2/1/35 (d)	1,545,712		1,560,002
4.5% 4/1/18 to 10/1/35	97,534,987		90,981,813
4.5% 7/1/22 (b)	4,000,000		3,794,757
4.5% 7/1/22 (b)	12,000,000		11,384,272
4.503% 2/1/35 (d)	226,412		227,451
4.508% 3/1/35 (d)	902,067		888,945
4.509% 2/1/35 (d)	127,508		129,290
4.516% 10/1/35 (d)	76,079		75,760
4.518% 7/1/35 (d)	943,301		940,979
4.519% 2/1/35 (d)	4,074,942		4,049,985
4.567% 2/1/35 (d)	806,749		796,539
4.571% 7/1/35 (d)	1,044,617		1,048,897
4.574% 2/1/35 (d)	2,826,746		2,789,869
4.577% 9/1/34 (d)	882,121		873,542
4.579% 1/1/35 (d)	345,257		344,222
4.586% 11/1/34 (d)	806,985		798,253
4.63% 2/1/35 (d)	9,542,608		9,422,841
4.651% 3/1/35 (d)	1,865,384		1,875,108
4.658% 11/1/34 (d)	968,277		960,498
4.678% 5/1/35 (d)	4,153,866		4,165,500
4.701% 10/1/34 (d)	947,648		940,422
4.719% 3/1/35 (d)	86,106		86,778
4.721% 7/1/34 (d)	775,245		770,783
4.721% 12/1/34 (d)	611,390		606,194
4.783% 12/1/34 (d)	252,731		250,631
4.804% 6/1/35 (d)	1,238,605		1,242,175
4.807% 11/1/34 (d)	749,499		743,912
4.857% 10/1/34 (d)	3,110,258		3,092,253
4.87% 5/1/33 (d)	17,937		18,078
4.942% 8/1/34 (d)	222,836		223,258

	Principal Amount		Value
5% 10/1/17 to 8/1/35	$ 66,435,142		$ 63,616,531
5% 7/1/22 (b)	10,000,000		9,657,965
5% 7/1/22 (b)	23,000,000		22,213,320
5% 7/1/37 (b)	50,000,000		46,820,130
5% 7/1/37 (b)	40,000,000		37,456,104
5% 7/1/37 (b)	25,000,000		23,410,065
5.026% 7/1/34 (d)	119,882		119,609
5.051% 5/1/35 (d)	1,531,464		1,541,877
5.07% 9/1/34 (d)	2,301,375		2,296,181
5.092% 5/1/35 (d)	3,744,649		3,773,810
5.149% 5/1/35 (d)	947,721		942,909
5.161% 5/1/35 (d)	2,702,307		2,689,231
5.168% 6/1/35 (d)	1,081,526		1,086,037
5.17% 8/1/33 (d)	362,925		363,649
5.196% 5/1/35 (d)	3,043,978		3,031,468
5.29% 12/1/35 (d)	1,741,237		1,732,504
5.304% 2/1/36 (d)	3,489,666		3,472,679
5.315% 7/1/35 (d)	132,064		133,090
5.478% 2/1/36 (d)	5,003,198		4,999,382
5.5% 6/1/09 to 2/1/36	154,747,626		150,300,960
5.5% 7/1/37 (b)	45,000,000		43,374,816
5.561% 9/1/36 (d)	1,778,041		1,786,315
5.598% 1/1/36 (d)	1,453,529		1,456,168
5.709% 9/1/35 (d)	1,406,786		1,409,199
5.809% 2/1/36 (d)	800,323		804,109
5.816% 1/1/36 (d)	916,998		918,409
6% 6/1/14 to 6/1/36	30,298,871		30,287,317
6% 7/1/22 (b)	3,000,000		3,012,588
6% 8/1/37 (b)	25,000,000		24,748,795
6.5% 6/1/11 to 7/1/34	45,313,178		46,168,087
6.611% 9/1/36 (d)	4,489,677		4,557,135
7% 3/1/15 to 8/1/32	3,822,776		3,937,512
7.5% 8/1/08 to 11/1/31	3,015,493		3,154,731
8% 1/1/30 to 5/1/30	71,161		75,075
8.5% 3/1/25 to 6/1/25	1,333		1,422
TOTAL FANNIE MAE			713,809,934
Freddie Mac - 2.5%
4% 2/1/20	3,708,768		3,434,881
4.066% 1/1/35 (d)	972,230		972,540
4.288% 2/1/35 (d)	711,065		710,310
4.288% 3/1/35 (d)	303,087		302,532
4.302% 12/1/34 (d)	430,360		422,016
4.344% 3/1/35 (d)	670,934		657,490
4.378% 2/1/35 (d)	794,048		778,339
4.42% 6/1/35 (d)	458,398		456,059
4.426% 3/1/35 (d)	428,762		419,908
4.427% 2/1/34 (d)	339,451		336,138
4.445% 3/1/35 (d)	403,810		396,044
4.5% 5/1/19	41,797		39,794
U.S. Government Agency - Mortgage Securities - continued
	Principal Amount		Value
Freddie Mac - continued
4.541% 2/1/35 (d)	$ 708,225		$ 695,398
4.772% 10/1/34 (d)	1,236,353		1,223,176
4.777% 3/1/33 (d)	129,134		131,435
4.82% 9/1/34 (d)	608,277		602,680
4.989% 4/1/35 (d)	1,789,731		1,798,382
5.129% 4/1/35 (d)	1,666,076		1,652,523
5.216% 3/1/36 (d)	671,214		670,924
5.445% 11/1/35 (d)	811,328		807,223
5.536% 1/1/36 (d)	2,335,498		2,328,086
6% 5/1/33	3,667,573		3,659,065
6% 7/1/37 (b)	40,000,000		39,610,328
6.488% 10/1/36 (d)	4,466,771		4,521,968
6.577% 7/1/36 (d)	2,096,223		2,121,540
6.639% 7/1/36 (d)	5,773,465		5,848,019
6.698% 8/1/36 (d)	719,605		730,351
7.5% 5/1/17 to 11/1/31	343,784		360,068
8% 7/1/17 to 5/1/27	45,643		48,085
8.5% 3/1/20 to 1/1/28	193,784		206,859
TOTAL FREDDIE MAC			75,942,161
Government National Mortgage Association - 2.1%
4.25% 7/20/34 (d)	557,440		555,572
4.5% 2/20/37 (d)	8,045,282		7,865,608
4.75% 1/20/34 (d)	1,806,677		1,798,634
6% 8/15/08 to 8/15/29	793,660		794,482
6.5% 6/15/08 to 11/15/35	15,129,891		15,444,652
6.5% 7/1/37 (b)	9,000,000		9,137,594
6.5% 7/1/37 (b)	7,000,000		7,107,017
6.5% 7/1/37 (b)	12,000,000		12,183,458
7% 1/15/28 to 11/15/32	6,704,535		6,956,702
7.5% 4/15/22 to 10/15/28	1,471,312		1,542,191
8% 2/15/17 to 1/15/31	196,303		206,214
8.5% 12/15/16 to 3/15/30	61,140		65,298
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION			63,657,422
TOTAL U.S. GOVERNMENT AGENCY - MORTGAGE SECURITIES (Cost $867,793,035)		853,409,517
Asset-Backed Securities - 3.2%

ACE Securities Corp. Series 2005-SD1 Class A1, 5.72% 11/25/50 (d)	277,403		277,610
Aesop Funding II LLC Series 2005-1A Class A1, 3.95% 4/20/08 (a)	1,200,000		1,188,641
Airspeed Ltd. Series 2007-1A Class C1, 7.8324% 4/15/24 (a)(d)	3,065,000		3,065,000

	Principal Amount		Value
AmeriCredit Automobile Receivables Trust Series 2006-1:
Class A3, 5.11% 10/6/10	$ 97,000		$ 96,781
Class B1, 5.2% 3/6/11	305,000		303,717
Class C1, 5.28% 11/6/11	1,850,000		1,839,052
Class E1, 6.62% 5/6/13 (a)	1,075,467		1,070,337
Amortizing Residential Collateral Trust Series 2002-BC1 Class M2, 6.42% 1/25/32 (d)	146,891		137,402
ARG Funding Corp. Series 2005-1A Class A1, 4.02% 4/20/09 (a)	1,300,000		1,288,825
Argent Securities, Inc. Series 2004-W5 Class M1, 5.92% 4/25/34 (d)	1,730,000		1,738,547
Capital Auto Receivables Asset Trust:
Series 2006-1:
Class A3, 5.03% 10/15/09	995,000		991,990
Class B, 5.26% 10/15/10	945,000		941,543
Class C, 5.55% 1/18/11	5,965,000		5,964,227
Class D, 7.16% 1/15/13 (a)	645,000		645,428
Series 2006-SN1A:
Class B, 5.5% 4/20/10 (a)	445,000		444,058
Class C, 5.77% 5/20/10 (a)	430,000		430,640
Class D, 6.15% 4/20/11 (a)	725,000		729,282
Series 2007-SN1:
Class B, 5.52% 3/15/11	1,140,000		1,138,219
Class C, 5.73% 3/15/11	660,000		658,891
Class D, 6.05% 1/17/12	1,630,000		1,627,580
Capital One Multi-Asset Execution Trust Series 2004-6 Class B, 4.15% 7/16/12	4,465,000		4,348,497
CarMax Auto Owner Trust Series 2007-2 Class C, 5.61% 11/15/13	4,260,000		4,227,088
Carrington Mortgage Loan Trust Series 2006-NC3 Class M10, 7.32% 8/25/36 (a)(d)	255,000		132,600
Cendant Timeshare Receivables Funding LLC Series 2005-1A Class A1, 4.67% 5/20/17 (a)	761,032		748,538
CIT Equipment Collateral Trust Series 2006-VT1 Class A3, 5.13% 12/21/08	3,380,000		3,373,993
Citibank Credit Card Issuance Trust:
Series 2005-B1 Class B1, 4.4% 9/15/10	5,120,000		5,056,668
Series 2006-B2 Class B2, 5.15% 3/7/11	2,270,000		2,259,008
CNH Equipment Trust Series 2006-A Class A3, 5.2% 8/16/10	2,415,000		2,412,170
Crown Castle Towers LLC/Crown Atlantic Holdings Sub LLC/Crown Communication, Inc. Series 2005-1A:
Class B, 4.878% 6/15/35 (a)	2,052,000		2,005,510
Asset-Backed Securities - continued
	Principal Amount		Value
Crown Castle Towers LLC/Crown Atlantic Holdings Sub LLC/Crown Communication, Inc. Series 2005-1A: - continued
Class C, 5.074% 6/15/35 (a)	$ 1,862,000		$ 1,825,335
DB Master Finance LLC Series 2006-1 Class M1, 8.285% 6/20/31 (a)	840,000		848,381
Drive Auto Receivables Trust Series 2006-2 Class A3, 5.33% 4/15/14 (a)	4,995,000		4,989,289
DT Auto Owner Trust Series 2007-A Class A3, 5.6% 3/15/13 (a)	5,175,000		5,175,000
Ford Credit Auto Owner Trust:
Series 2006-A Class A3, 5.05% 11/15/09	2,335,000		2,329,265
Series 2006-B Class D, 7.26% 2/15/13 (a)	1,025,000		1,026,514
GSAMP Trust Series 2004-AR1 Class B4, 5% 6/25/34 (a)(d)	550,000		513,715
Hyundai Auto Receivables Trust:
Series 2004-1 Class A4, 5.26% 11/15/12	2,010,000		2,004,075
Series 2006-1:
Class A3, 5.13% 6/15/10	745,000		744,015
Class B, 5.29% 11/15/12	315,000		314,375
Class C, 5.34% 11/15/12	405,000		404,150
Leafs CMBS I Ltd./Leafs CMBS I Corp. Series 2002-1A:
Class B, 4.13% 11/20/37 (a)	3,860,000		3,622,058
Class C, 4.13% 11/20/37 (a)	3,760,000		3,388,430
Long Beach Mortgage Loan Trust Series 2004-2 Class M1, 5.85% 6/25/34 (d)	525,000		525,333
National Collegiate Student Loan Trust Series 2005-GT1 Class AIO, 6.75% 12/25/09 (f)	1,750,000		271,797
Onyx Acceptance Owner Trust Series 2005-A Class A3, 3.69% 5/15/09	87,664		87,501
Park Place Securities, Inc. Series 2005-WCH1 Class M2, 5.84% 1/25/35 (d)	1,700,000		1,704,329
Pinnacle Capital Asset Trust Series 2006-A:
Class B, 5.51% 9/25/09 (a)	1,460,000		1,457,707
Class C, 5.77% 5/25/10 (a)	1,355,000		1,352,177
Providian Master Note Trust Series 2006-B1A Class B1, 5.35% 3/15/13 (a)	4,570,000		4,557,504
Specialty Underwriting & Residential Finance Trust Series 2003-BC4 Class M1, 5.92% 11/25/34 (d)	685,000		687,002
Swift Master Auto Receivables Trust Series 2007-1:
Class B, 5.54% 6/15/12 (d)	2,235,000		2,235,000

	Principal Amount		Value
Class C, 5.82% 6/15/12 (d)	$ 1,335,000		$ 1,335,000
Volkswagen Auto Lease Trust Series 2005-A Class A4, 3.94% 10/20/10	2,195,000		2,188,192
Wachovia Auto Loan Trust Series 2006-2A Class A4, 5.23% 3/20/12 (a)	4,000,000		3,987,378
World Omni Auto Receivables Trust Series 2006-A Class A3, 5.01% 10/15/10	2,193,515		2,188,745
TOTAL ASSET-BACKED SECURITIES (Cost $99,305,633)		98,904,109
Collateralized Mortgage Obligations - 5.8%

Private Sponsor - 2.4%
Banc of America Commercial Mortgage Trust Series 2007-2:
Class B, 5.6984% 4/10/17	485,000		473,006
Class C, 5.6984% 4/10/17	1,290,000		1,250,834
Class D, 5.6984% 5/10/17	650,000		630,952
Banc of America Mortgage Securities, Inc.:
Series 2004-J Class 2A1, 4.7773% 11/25/34 (d)	1,758,842		1,736,962
Series 2005-E Class 2A7, 4.6041% 6/25/35 (d)	2,680,000		2,612,544
GSR Mortgage Loan Trust Series 2007-AR2 Class 2A1, 4.8489% 4/25/35 (d)	1,825,691		1,800,019
Holmes Master Issuer PLC floater Series 2007-2A Class 2C1, 5.77% 7/15/21 (d)	1,950,000		1,950,000
JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-CB18 Class A3, 5.447% 6/12/47 (d)	6,185,000		6,039,300
JPMorgan Mortgage Trust:
sequential payer Series 2006-A3 Class 3A3, 5.7519% 5/25/36 (d)	7,815,000		7,741,734
Series 2005-A8 Class 2A3, 4.9508% 11/25/35 (d)	760,000		741,961
Series 2006-A3 Class 6A1, 3.7672% 8/25/34 (d)	2,781,437		2,711,806
Series 2007-A1 Class 3A2, 5.0084% 7/25/35 (d)	7,436,830		7,340,518
MASTR Alternative Loan Trust Series 2004-3 Class 3A1, 6% 4/25/34	455,119		445,661
Merrill Lynch/Countrywide Commercial Mortgage Trust Series 2006-3 Class ASB, 5.382% 7/12/46 (d)	4,570,000		4,473,653
RESI Finance LP/RESI Finance DE Corp. floater Series 2003-CB1:
Class B4, 6.97% 6/10/35 (a)(d)	1,022,466		1,036,525
Class B5, 7.57% 6/10/35 (a)(d)	698,608		709,960
Class B6, 8.07% 6/10/35 (a)(d)	411,762		419,998
Collateralized Mortgage Obligations - continued
	Principal Amount		Value
Private Sponsor - continued
Residential Asset Mortgage Products, Inc. sequential payer Series 2004-SL2 Class A1, 6.5% 10/25/16	$ 262,492		$ 265,571
Wachovia Mortgage Loan Trust LLC Series 2005-B Class 2A4, 5.1709% 10/20/35 (d)	605,000		598,455
WaMu Mortgage pass-thru certificates Series 2007-HY1 Class 4A1, 5.482% 2/25/37 (d)	4,797,351		4,761,884
Wells Fargo Mortgage Backed Securities Trust:
sequential payer:
Series 2006-AR10 Class 5A5, 5.5981% 7/25/36 (d)	5,435,000		5,419,486
Series 2006-AR13 Class A4, 5.5705% 9/25/36 (d)	2,890,000		2,892,473
Series 2005-AR10 Class 2A2, 4.11% 6/25/35 (d)	4,308,681		4,244,744
Series 2005-AR12 Class 2A6, 4.319% 7/25/35 (d)	4,558,876		4,474,064
Series 2005-AR4 Class 2A2, 4.5245% 4/25/35 (d)	3,557,493		3,494,035
Series 2006-AR8 Class 2A6, 5.2404% 4/25/36 (d)	6,240,000		6,148,416
TOTAL PRIVATE SPONSOR			74,414,561
U.S. Government Agency - 3.4%
Fannie Mae planned amortization class:
Series 1999-54 Class PH, 6.5% 11/18/29	3,400,000		3,456,836
Series 1999-57 Class PH, 6.5% 12/25/29	2,552,940		2,588,160
Fannie Mae Grantor Trust floater Series 2005-90 Class FG, 5.57% 10/25/35 (d)	2,748,923		2,747,157
Fannie Mae subordinate REMIC pass-thru certificates:
planned amortization class Series 2004-81:
Class KC, 4.5% 4/25/17	11,215,000		10,933,812
Class KD, 4.5% 7/25/18	2,625,000		2,503,299
sequential payer:
Series 2004-3 Class BA, 4% 7/25/17	225,836		216,233
Series 2004-86 Class KC, 4.5% 5/25/19	1,026,223		991,242
Series 2004-91 Class AH, 4.5% 5/25/29	2,147,291		2,077,815
Freddie Mac planned amortization class Series 3033 Class UD, 5.5% 10/15/30	1,910,000		1,899,712

	Principal Amount		Value
Freddie Mac Multi-class participation certificates guaranteed:
planned amortization class:
Series 2500 Class TE, 5.5% 9/15/17	$ 10,275,186		$ 10,290,849
Series 2677 Class LD, 4.5% 3/15/17	8,800,218		8,464,485
Series 2695 Class GC, 4.5% 11/15/18	7,215,000		7,003,054
Series 2702 Class WB, 5% 4/15/17	2,947,632		2,924,072
Series 2770 Class UD, 4.5% 5/15/17	7,473,000		7,187,206
Series 2885 Class PC, 4.5% 3/15/18	2,560,000		2,492,283
Series 3018 Class UD, 5.5% 9/15/30	2,825,000		2,808,069
Series 3049 Class DB, 5.5% 6/15/31	4,440,000		4,413,983
sequential payer:
Series 2508 Class CK, 5% 10/15/17	10,000,000		9,712,359
Series 2750 Class ZT, 5% 2/15/34	2,291,046		1,970,945
Series 3117 Class PC, 5% 6/15/31	20,000,000		19,519,252
Ginnie Mae guaranteed REMIC pass-thru securities Series 2007-35 SC Class 4020, 8.28% 6/16/37 (b)(d)	295,683		293,003
TOTAL U.S. GOVERNMENT AGENCY			104,493,826
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost $180,393,000)		178,908,387
Commercial Mortgage Securities - 7.4%

Asset Securitization Corp.:
sequential payer Series 1995-MD4 Class A1, 7.1% 8/13/29	695		696
Series 1997-D5:
Class A2, 6.7553% 2/14/43 (d)	1,435,000		1,514,761
Class A3, 6.8053% 2/14/43 (d)	1,545,000		1,630,699
Banc of America Commercial Mortgage Trust sequential payer:
Series 2006-2 Class AAB, 5.7223% 5/10/45 (d)	2,100,000		2,105,304
Series 2006-5:
Class A2, 5.317% 10/10/11	8,745,000		8,629,424
Class A3, 5.39% 2/10/14	1,985,000		1,945,611
Commercial Mortgage Securities - continued
	Principal Amount		Value
Banc of America Commercial Mortgage Trust sequential payer: - continued
Series 2007-2 Class A1, 5.421% 1/10/12	$ 2,370,000		$ 2,365,758
Banc of America Commercial Mortgage, Inc. sequential payer Series 2005-1 Class A3, 4.877% 11/10/42	3,855,000		3,803,647
Bayview Commercial Asset Trust floater:
Series 2007-2A:
Class B1, 6.92% 7/25/37 (a)(d)	219,560		222,305
Class B2, 7.57% 7/25/37 (a)(d)	189,620		192,465
Class B3, 8.67% 7/25/37 (a)(d)	214,570		213,498
Class M2, 5.73% 7/25/37 (a)(d)	129,740		130,105
Class M3, 5.81% 7/25/37 (a)(d)	129,740		130,227
Class M4, 5.97% 7/25/37 (a)(d)	274,451		275,651
Class M5, 6.07% 7/25/37 (a)(d)	244,510		245,580
Class M6, 6.32% 7/25/37 (a)(d)	304,391		305,913
Series 2007-3:
Class B1, 6.27% 7/25/37 (a)(d)	218,610		218,610
Class B2, 6.92% 7/25/37 (a)(d)	576,336		576,336
Class B3, 9.32% 7/25/37 (a)(d)	293,136		293,136
Class M1, 5.63% 7/25/37 (a)(d)	193,768		193,768
Class M2, 5.66% 7/25/37 (a)(d)	203,705		203,705
Class M3, 5.69% 7/25/37 (a)(d)	332,884		332,884
Class M4, 5.82% 7/25/37 (a)(d)	526,652		526,652
Class M5, 5.92% 7/25/37 (a)(d)	263,326		263,326
Class M6, 6.12% 7/25/37 (a)(d)	198,736		198,736
Bear Stearns Commercial Mortgage Securities, Inc.:
Series 2006-PW13 Class A3, 5.518% 9/11/41	2,010,000		1,985,073
Series 2007-PW15:
Class A1, 5.016% 2/11/44	2,087,095		2,060,355
Class X2, 0.5582% 2/11/44 (a)(d)(f)	146,305,000		2,966,085

	Principal Amount		Value
Series 2007-PW16:
Class B, 5.713% 6/11/40 (a)	$ 1,405,000		$ 1,380,193
Class C, 5.713% 6/11/40 (a)	1,170,000		1,146,783
Class D, 5.713% 6/11/40 (a)	1,170,000		1,140,933
Chase Commercial Mortgage Securities Corp. Series 2001-245 Class A2, 6.275% 2/12/16 (a)(d)	1,345,000		1,378,693
Chase Manhattan Bank-First Union National Bank Commercial Mortgage Trust sequential payer Series 1999-1 Class A2, 7.439% 8/15/31	4,867,466		5,024,544
Citigroup/Deutsche Bank Commercial Mortgage Trust Series 2007-CD4 Class A3, 5.293% 12/11/49	5,940,000		5,780,838
COMM Series 2004-LBN2 Class X2, 0.9563% 3/10/39 (a)(d)(f)	6,234,989		148,276
Commercial Mortgage pass-thru certificates sequential payer Series 2006-CN2A Class A2FX, 5.449% 2/5/19	2,745,000		2,734,965
Credit Suisse Commercial Mortgage Trust Series 2006-C4 Class AAB, 5.439% 9/15/39	5,350,000		5,256,763
Credit Suisse First Boston Mortgage Securities Corp.:
sequential payer:
Series 1997-C2 Class A3, 6.55% 1/17/35	729,302		730,101
Series 1999-C1 Class A2, 7.29% 9/15/41	4,941,353		5,076,964
Series 2000-C1 Class A2, 7.545% 4/15/62	1,600,000		1,665,014
Series 2004-C1:
Class A3, 4.321% 1/15/37	2,235,000		2,161,129
Class A4, 4.75% 1/15/37	3,035,000		2,871,744
Series 1997-C2 Class D, 7.27% 1/17/35	1,900,000		1,928,834
Series 1998-C1:
Class C, 6.78% 5/17/40	5,000,000		5,072,449
Class D, 7.17% 5/17/40	595,000		621,135
Series 2001-CKN5 Class AX, 0.7723% 9/15/34 (a)(d)(f)	27,396,412		1,407,693
Series 2002-CP3 Class G, 6.639% 7/15/35 (a)	250,000		256,262
Series 2004-C1 Class ASP, 0.7919% 1/15/37 (a)(d)(f)	29,710,838		734,948
Series 2006-C1 Class A3, 5.5549% 2/15/39 (d)	3,895,000		3,877,267
Credit Suisse Mortgage Capital Certificates sequential payer Series 2007-C1 Class A1, 5.227% 2/15/40	1,539,028		1,528,378
Deutsche Mortgage & Asset Receiving Corp. sequential payer Series 1998-C1 Class D, 7.231% 6/15/31	4,940,000		4,976,844
Commercial Mortgage Securities - continued
	Principal Amount		Value
DLJ Commercial Mortgage Corp. sequential payer Series 2000-CF1 Class A1B, 7.62% 6/10/33	$ 3,468,623		$ 3,634,407
General Growth Properties, Inc.:
sequential payer Series 1 Class A2, 6.602% 11/15/07 (a)	7,200,000		7,228,867
Series 1:
Class D2, 6.992% 11/15/07 (a)	4,260,000		4,275,190
Class E2, 7.224% 11/15/07 (a)	2,550,000		2,556,152
Ginnie Mae guaranteed REMIC pass-thru securities sequential payer Series 2003-22 Class B, 3.963% 5/16/32	3,295,000		3,172,917
Greenwich Capital Commercial Funding Corp.:
sequential payer: Series 2004-GG1 Class A4, 4.755% 6/10/36	1,615,000		1,588,255
Series 2007-GG9 Class A1, 5.233% 3/10/39	1,919,742		1,900,545
Series 2006-GG7 Class A3, 6.1101% 7/10/38	3,460,000		3,505,624
GS Mortgage Securities Corp. II:
floater Series 2007-EOP:
Class C, 5.64% 3/1/20 (a)(d)	1,335,000		1,335,000
Class D, 5.69% 3/1/20 (a)(d)	400,000		400,000
Class E, 5.76% 3/1/20 (a)(d)	670,000		670,000
Class F, 5.8% 3/1/20 (a)(d)	335,000		335,000
Class G, 5.84% 3/1/20 (a)(d)	165,000		165,000
Class H, 5.97% 3/1/20 (a)(d)	275,000		275,000
Class J:
6.17% 3/1/20 (a)(d)	395,000		395,123
6.37% 3/1/20 (a)(d)	275,000		275,000
sequential payer Series 2003-C1 Class A2A, 3.59% 1/10/40	3,345,000		3,312,301
Series 1998-GLII Class E, 6.9707% 4/13/31 (d)	1,615,000		1,633,593
Series 2006-GG6 Class A2, 5.506% 4/10/38 (d)	2,990,000		2,984,998
GS Mortgage Securities Trust Series 2007-GG10 Class A1, 5.69% 8/10/45	2,000,000		2,004,615
JPMorgan Chase Commercial Mortgage Securities Corp. sequential payer:
Series 2006-CB14 Class A3B, 5.4859% 12/12/44 (d)	4,625,000		4,573,885
Series 2006-CB15 Class A3, 5.819% 6/12/43 (d)	5,840,000		5,854,244
Series 2006-LDP9 Class A2, 5.134% 5/15/47 (d)	5,065,000		4,849,435

	Principal Amount		Value
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2007-CB19:
Class B, 5.7442% 2/12/49	$ 755,000		$ 739,077
Class C, 5.7462% 2/12/49	1,971,000		1,924,800
Class D, 5.7462% 2/12/49	2,075,000		2,017,294
Series 2007-LDP10:
Class A1, 5.122% 5/15/49	1,436,922		1,423,706
Class BS, 5.437% 1/15/49 (d)	1,725,000		1,675,367
Class CS, 5.466% 1/15/49 (d)	745,000		722,790
Class ES, 5.5459% 1/15/49 (a)(d)	4,663,000		4,503,182
LB-UBS Commercial Mortgage Trust:
sequential payer:
Series 2000-C3 Class A2, 7.95% 1/15/10	2,172,155		2,282,778
Series 2001-C3 Class A1, 6.058% 6/15/20	1,785,333		1,802,420
Series 2005-C3 Class A2, 4.553% 7/15/30	1,746,000		1,705,919
Series 2006-C1 Class A2, 5.084% 2/15/31	1,495,000		1,475,162
Series 2006-C7 Class A1, 5.279% 11/15/38	830,611		827,382
Series 2007-C1 Class A1, 5.391% 2/15/40 (d)	1,258,794		1,256,192
Series 2001-C3 Class B, 6.512% 6/15/36	1,810,000		1,866,974
Merrill Lynch Mortgage Trust sequential payer:
Series 2004-KEY2 Class A2, 4.166% 8/12/39	215,000		208,363
Series 2005-MCP1 Class A2, 4.556% 6/12/43	2,120,000		2,066,138
Merrill Lynch/Countrywide Commercial Mortgage Trust sequential payer Series 2007-5 Class A1, 4.275% 12/12/11	1,121,366		1,091,899
ML-CFC Commerical Mortgage Trust Series 2007-7 Class B, 5.75% 6/25/50	770,000		754,638
Morgan Stanley Capital I Trust:
sequential payer:
Series 2006-HQ10 Class A1, 5.131% 11/12/41	4,390,907		4,351,227
Series 2006-T23 Class A1, 5.682% 8/12/41	1,400,214		1,407,519
Series 2007-HQ11 Class A31, 5.439% 2/20/44 (d)	4,745,000		4,642,606
Series 2007-IQ13 Class A1, 5.05% 3/15/44	1,930,222		1,901,349
Series 2007-IQ14 Class A1, 5.38% 4/15/49	4,090,201		4,063,519
Series 2007-T25 Class A2, 5.507% 11/12/49	10,320,000		10,175,757
Series 2007-IQ14 Class B, 5.914% 4/15/49	2,175,000		2,121,390
Commercial Mortgage Securities - continued
	Principal Amount		Value
Morgan Stanley Capital I, Inc.:
sequential payer Series 2004-HQ3 Class A2, 4.05% 1/13/41	$ 2,235,000		$ 2,168,196
Series 2005-IQ9 Class X2, 1.0452% 7/15/56 (a)(d)(f)	26,053,614		938,110
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28	2,298,274		2,638,627
TrizecHahn Office Properties Trust Series 2001-TZHA Class E3, 7.253% 3/15/13 (a)	752,838		759,598
Wachovia Bank Commercial Mortgage Trust:
sequential payer:
Series 2003-C6 Class A2, 4.498% 8/15/35	3,595,000		3,530,662
Series 2003-C7 Class A1, 4.241% 10/15/35 (a)	1,291,081		1,254,174
Series 2007-C30 Class A3, 5.246% 12/15/43	5,940,000		5,826,522
Series 2007-C31 Class A1, 5.14% 4/15/47	1,617,317		1,597,582
Series 2007-C31 Class C, 5.877% 4/15/47 (d)	2,455,000		2,369,465
TOTAL COMMERCIAL MORTGAGE SECURITIES (Cost $229,054,091)		225,446,595
Foreign Government and Government Agency Obligations - 0.1%

Israeli State 4.625% 6/15/13	525,000		496,736
United Mexican States 5.875% 1/15/14	1,665,000		1,673,325
TOTAL FOREIGN GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS (Cost $2,164,120)		2,170,061
Supranational Obligations - 0.0%

Corporacion Andina de Fomento:
5.2% 5/21/13	630,000		612,270
6.875% 3/15/12	425,000		445,090
TOTAL SUPRANATIONAL OBLIGATIONS (Cost $1,047,687)		1,057,360

Fixed-Income Funds - 21.3%
	Shares
Fidelity Ultra-Short Central Fund (e) (Cost $656,703,705)	6,607,907		652,596,895
Preferred Securities - 0.1%
	Principal Amount		Value
FINANCIALS - 0.1%
Diversified Financial Services - 0.1%
MUFG Capital Finance 1 Ltd. 6.346% (d) (Cost $3,520,000)	$ 3,520,000		$ 3,540,291
Cash Equivalents - 0.3%
	Maturity Amount
Investments in repurchase agreements in a joint trading account at 5.36%, dated 6/29/07 due 7/2/07 (Collateralized by U.S. Government Obligations) # (Cost $8,660,000)	$ 8,663,865		8,660,000
TOTAL INVESTMENT PORTFOLIO - 114.4% (Cost $3,546,764,849)			3,503,198,608
NET OTHER ASSETS - (14.4)%			(440,230,932)
NET ASSETS - 100%		$ 3,062,967,676

Swap Agreements
	Expiration Date	Notional Amount
Credit Default Swaps
Receive monthly notional amount multiplied by 3.86% and pay Morgan Stanley Capital Services Inc. upon default event of Merrill Lynch Home Equity Loan Trust, par value of the notional amount of Merrill Lynch Home Equity Loan Trust, Series 2006-HE5 Class B3, 7.32% 8/25/37	Sept. 2037	$ 1,600,000	(660,730)
Receive monthly notional amount multiplied by 1.32% and pay Goldman Sachs upon default event of Securitized Asset Backed Receivables LLC Trust, par value of the notional amount of Securitized Asset Backed Receivables LLC Trust Series 2006-OP1 Class B2, 6.72% 10/25/35	Nov. 2035	1,900,000	(426,985)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE8 Class B3, 7.3913% 9/25/34	Oct. 2034	$ 465,000	$ (47,243)
Receive monthly notional amount multiplied by 3.3% and pay Morgan Stanley, Inc. upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R11 Class M9, 7.2253% 11/25/34	Dec. 2034	775,000	(189,924)
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-HE7 Class B3, 8.85% 8/25/34	Sept. 2034	465,000	(31,074)
Receive monthly notional amount multiplied by 3.35% and pay Morgan Stanley, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC7 Class B3, 8.85% 7/25/34	August 2034	465,000	(125,396)

	Expiration Date	Notional Amount	Value
Receive monthly notional amount multiplied by 2.7% and pay Lehman Brothers, Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2006-WMC1 Class B3, 7.5% 12/25/35	Jan. 2036	$ 1,600,000	$ (480,304)
Receive from Bank of America upon credit event of Bristol-Myers Squibb Co., par value of the notional amount of Bristol-Myers Squibb Co. 5.25% 8/15/13, and pay quarterly notional amount multiplied by .30%	Sept. 2017	2,300,000	(189)
Receive from Bank of America upon credit event of Eli Lilly & Co., par value of the notional amount of Eli Lilly & Co. 6.57% 1/1/16, and pay quarterly notional amount multiplied by .22%	Sept. 2017	1,855,000	(3,007)
Receive from Citibank upon credit event of Bristol-Myers Squibb Co., par value of the notional amount of Bristol-Myers Squibb Co. 5.25% 8/15/13, and pay quarterly notional amount multiplied by .32%	Sept. 2017	1,000,000	(1,678)
Receive from Citibank upon credit event of Schering-Plough Corp., par value of the notional amount of Schering-Plough Corp. 5.55% 12/1/13, and pay quarterly notional amount multiplied by .4%	Sept. 2017	1,600,000	(7,705)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive from Citibank upon credit event of Schering-Plough Corp., par value of the notional amount of Schering-Plough Corp. 5.55% 12/1/13, and pay quarterly notional amount multiplied by .42%	Sept. 2017	$ 2,800,000	$ (17,816)
Receive from Goldman Sachs upon credit event of CSX Corp., par value of the notional amount of CSX Corp. 5.30% 2/15/14, and pay quarterly notional amount multiplied by .77%	Sept. 2017	3,200,000	18,663
Receive from Goldman Sachs upon credit event of Eli Lilly & Co., par value of the notional amount of Eli Lilly & Co. 6.57% 1/1/16, and pay quarterly notional amount multiplied by .24%	Sept. 2017	1,600,000	(4,525)
Receive from Merrill Lynch, Inc. upon credit event of R.R. Donnelley & Sons Co., par value of the notional amount of R.R. Donnelley & Sons Co. 5.5% 5/15/15, and pay quarterly notional amount multiplied by 2.12%	Sept. 2013	1,360,000	(85,654)
Receive from Merrill Lynch, Inc., upon credit event of R.R. Donnelley & Sons Co., par value of the notional amount of R.R. Donnelley & Sons Co. 5.5% 5/15/15 and pay quarterly notional amount multiplied by 1.68%	Sept. 2013	2,035,000	(81,360)

	Expiration Date	Notional Amount	Value
Receive monthly notional amount multiplied by 2.6% and pay Merrill Lynch, Inc. upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R8 Class M9, 8.10% 9/25/34	Oct. 2034	$ 1,800,000	$ (496,388)
Receive monthly notional amount multiplied by 3.05% and pay Morgan Stanley Capital Services Inc. upon default event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2006-HE3 Class B3, 7.22% 4/25/36	May 2036	1,300,000	(649,736)
Receive monthly notional amount multiplied by 2.5% and pay Credit Suisse International upon default event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R11 Class M9, 8.03% 11/25/34	Dec. 2034	1,075,000	(272,225)
Receive monthly notional amount multiplied by .82% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC6 Class M3, 5.6413% 7/25/34	August 2034	465,000	(4,258)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R9 Class M5, 5.5913% 10/25/34	Nov. 2034	$ 465,000	$ (6,335)
Receive monthly notional amount multiplied by .85% and pay UBS upon credit event of Morgan Stanley ABS Capital I, Inc., par value of the notional amount of Morgan Stanley ABS Capital I, Inc. Series 2004-NC8 Class M6, 5.4413% 9/25/34	Oct. 2034	465,000	(5,218)
Receive monthly notional amount multiplied by 1.6% and pay Morgan Stanley Capital Services Inc. upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	640,000	(103,151)
Receive monthly notional amount multiplied by 1.66% and pay Morgan Stanley, Inc. upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M7, 5.4413% 5/25/35	June 2035	465,000	(74,318)

	Expiration Date	Notional Amount	Value
Receive monthly notional amount multiplied by 2.36% and pay Morgan Stanley Capital Services Inc. upon credit event of GE-WMC Mortgage Securities, LLC, par value of the notional amount of GE-WMC Mortgage Securities, LLC Series 2006-01 Class B3, 7.13% 8/25/36	Sept. 2036	$ 3,700,000	$ (1,921,561)
Receive monthly notional amount multiplied by 2.39% and pay UBS upon credit event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-1 Class M9, 7.73% 2/25/34	March 2034	515,880	(137,436)
Receive monthly notional amount multiplied by 2.4% and pay Deutsche Bank upon credit event of Fremont Home Loan Trust, par value of the notional amount of Fremont Home Loan Trust Series 2004-A Class B3, 7.2288% 1/25/34	Feb. 2034	307,210	(230,441)
Receive monthly notional amount multiplied by 2.5% and pay Bank of America upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R11 Class M9, 6.102% 11/25/34	Dec. 2034	1,800,000	(455,818)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive monthly notional amount multiplied by 2.5% and pay Bank of America upon credit event of Ameriquest Mortgage Securities, Inc., par value of the notional amount of Ameriquest Mortgage Securities, Inc. Series 2004-R8 Class M9, 8.07% 9/25/34	Oct. 2034	$ 1,800,000	$ (499,504)
Receive monthly notional amount multiplied by 2.54% and pay Merrill Lynch upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. Series 2003-BC1 Class B1, 7.6913% 3/25/32	April 2032	40,946	(437)
Receive monthly notional amount multiplied by 2.7% and pay Morgan Stanley Capital Services Inc. upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M9, 6.41% 5/25/35	June 2035	770,000	(206,920)
Receive monthly notional amount multiplied by 2.79% and pay Merrill Lynch, Inc. upon credit event of New Century Home Equity Loan Trust, par value of the notional amount of New Century Home Equity Loan Trust Series 2004-4 Class M9, 7.0788% 2/25/35	March 2035	1,715,000	(552,257)
Receive monthly notional amount multiplied by 3% and pay JPMorgan Chase, Inc. upon credit event of GSAMP Trust, par value of the notional amount of GSAMP Trust Series 2006-NC2 Class M9, 7.3744% 6/25/36	July 2036	1,900,000	(1,200,960)

	Expiration Date	Notional Amount	Value
Receive monthly notional amount multiplied by 3.66% and pay Deutsche Bank upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M9, 7.2% 5/25/35	June 2035	$ 1,900,000	$ (486,265)
Receive monthly notional amount multiplied by 3.83% and pay Morgan Stanley Capital Services Inc. upon credit event of Park Place Securities, Inc., par value of the notional amount of Park Place Securities, Inc. Series 2005-WHQ2 Class M9, 7.2% 5/25/35	June 2035	600,000	(152,198)
Receive monthly notional amount multiplied by 5% and pay Deutsche Bank AG upon credit event of MASTR Asset Backed Securities Trust, par value of the notional amount of MASTR Asset Backed Securities Trust Series 2003-NC1 Class M6, 8.1913% 4/25/33	May 2033	465,000	(103,571)
Receive monthly notional amount multiplied by 5.12% and pay Bank of America upon credit event of Structured Asset Securities Corp., par value of the notional amount of Structured Asset Securities Corp. Series 2005-AR1 Class M8, 7.32% 9/25/35	Oct. 2036	2,000,000	(704,174)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Credit Default Swaps - continued
Receive quarterly notional amount multiplied by .35% and pay Goldman Sachs upon credit event of Southern California Edison Co., par value of the notional amount of Southern California Edison Co. 7.625% 1/15/10	Sept. 2010	$ 1,900,000	$ 9,805
Receive quarterly notional amount multiplied by .41% and pay Merrill Lynch, Inc. upon credit event of Talisman Energy, Inc., par value of the notional amount of Talisman Energy, Inc. 7.25% 10/15/27	March 2009	1,400,000	6,881
Receive quarterly notional amount multiplied by .62% and pay UBS upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. 4% 3/22/11	March 2012	1,070,000	(1,203)
Receive quarterly notional amount multiplied by .68% and pay Lehman Brothers, Inc. upon credit event of Countrywide Home Loans, Inc., par value of the notional amount of Countrywide Home Loans, Inc. 4% 3/22/11	March 2012	840,000	1,150
Receive semi-annually notional amount multiplied by .5% and pay Credit Suisse First Boston upon credit event of Russian Federation, par value of the notional amount of Russian Federation 7.5% 3/31/30 (Reg. S)	June 2008	1,885,000	4,400

	Expiration Date	Notional Amount	Value
Receive semi-annually notional amount multiplied by .5% and pay Deutsche Bank upon credit event of Russian Federation, par value of the notional amount of Russian Federation 7.5% 3/31/30 (Reg. S)	June 2008	$ 3,395,000	$ 7,924
Receive semi-annually notional amount multiplied by .61% and pay JPMorgan Chase, Inc. upon credit event of United Mexican States, par value of the notional amount of United Mexican States 7.5% 4/8/33	May 2011	4,290,000	46,535
Receive semi-annually notional amount multiplied by .625% and pay Deutsche Bank upon credit event of United Mexican States, par value of the notional amount of United Mexican States 7.5% 4/8/33	May 2011	2,260,000	25,710
TOTAL CREDIT DEFAULT SWAPS		66,249,036	(10,306,896)
Interest Rate Swaps
Receive quarterly a fixed rate equal to 4% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	July 2009	42,000,000	(1,196,915)
Receive quarterly a fixed rate equal to 4.3875% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	March 2010	11,825,000	(290,128)
Receive quarterly a fixed rate equal to 4.774% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	March 2015	11,825,000	(583,383)
Swap Agreements - continued
	Expiration Date	Notional Amount	Value
Interest Rate Swaps - continued
Receive semi-annually a fixed rate equal to 4.492% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Sept. 2010	$ 1,500,000	$ (23,962)
Receive semi-annually a fixed rate equal to 4.93% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Nov. 2010	1,000,000	(15,685)
Receive semi-annually a fixed rate equal to 5.095% and pay quarterly a floating rate based on 3-month LIBOR with Bank of America	Feb. 2012	50,000,000	(159,370)
Receive semi-annually a fixed rate equal to 5.145% and pay quarterly a floating rate based on 3-month LIBOR with Credit Suisse First Boston	Feb. 2012	30,000,000	(23,826)
Receive semi-annually a fixed rate equal to 5.186% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	Sept. 2011	20,000,000	54,352
Receive semi-annually a fixed rate equal to 5.276% and pay quarterly a floating rate based on 3-month LIBOR with Deutsche Bank	April 2011	52,500,000	(301,429)
Receive semi-annually a fixed rate equal to 5.312% and pay quarterly a floating rate based on the 3-month LIBOR with Lehman Brothers, Inc.	April 2011	105,000,000	(433,923)

	Expiration Date	Notional Amount	Value
Receive semi-annually a fixed rate equal to 5.3315% and pay quarterly a floating rate based on 3-month LIBOR with JPMorgan Chase, Inc.	April 2011	$ 15,000,000	$ (56,607)
Receive semi-annually a fixed rate equal to 4.378% and pay quarterly a floating rate based on 3-month LIBOR with Lehman Brothers, Inc.	Sept. 2008	25,400,000	(25,718)
Receive semi-annually a fixed rate equal to 5.354% and pay quarterly a floating rate based on 3-month LIBOR with Deutsche Bank	May 2011	32,000,000	(96,698)
TOTAL INTEREST RATE SWAPS		398,050,000	(3,153,292)
Total Return Swaps
Receive monthly a return equal to Lehman Brothers CMBS U.S. Aggregate Index and pay monthly a floating rate based on 1-month LIBOR minus 7.5 basis points with Lehman Brothers, Inc.	July 2007	50,000,000	(406,150)
		$ 514,299,036	$ (13,866,338)

Legend

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

(c) Security or a portion of the security has been segregated as collateral for open swap agreements. At the period end, the value of securities pledged amounted to $4,336,346.

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

(e) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. A complete schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-Q and is available upon request or at the SEC's web site at www.sec.gov. In addition, each Fidelity Central Fund's financial statements are available on the SEC's web site or upon request.

(f) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool held as of the end of the period.

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

Repurchase Agreement / Counterparty	Value
$8,660,000 due 7/02/07 at 5.36%
ABN AMRO Bank N.V., New York Branch	$ 530,208
BNP Paribas Securities Corp.	344,635
Banc of America Securities LLC	2,610,921
Bank of America, NA	1,060,416
Barclays Capital, Inc.	1,036,916
Bear Stearns & Co., Inc.	1,309,544
UBS Securities LLC	1,767,360
	$ 8,660,000

Affiliated Central Funds

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

Fund	Income earned
Fidelity Ultra-Short Central Fund	$ 15,946,441

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

Fund	Value, beginning of period	Purchases	Sales Proceeds	Value, end of period	% ownership, end of period
Fidelity Ultra-Short Central Fund	$ 528,129,201	$ 128,603,122	$ -	$ 652,596,895	4.3%

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

Not Part of Financial Report

Financial Statements

Statement of Assets and Liabilities

	June 30, 2007 (Unaudited)

Assets
Investment in securities, at value (including repurchase agreements of $8,660,000) - See accompanying schedule: Unaffiliated issuers (cost $2,890,061,144)	$ 2,850,601,713
Fidelity Central Funds (cost $656,703,705)	652,596,895
Total Investments (cost $3,546,764,849)		$ 3,503,198,608
Cash		294,792
Receivable for investments sold		15,123,411
Receivable for swap agreements		101,464
Interest receivable		22,527,493
Distributions receivable from Fidelity Central Funds		3,066,814
Total assets		3,544,312,582

Liabilities
Payable for investments purchased Regular delivery	$ 4,587,085
Delayed delivery	450,199,060
Distributions payable	12,639,214
Swap agreements, at value	13,866,338
Other payables and accrued expenses	53,209
Total liabilities		481,344,906

Net Assets		$ 3,062,967,676
Net Assets consist of:
Paid in capital		$ 3,125,182,340
Undistributed net investment income		8,128,604
Accumulated undistributed net realized gain (loss) on investments		(12,910,689)
Net unrealized appreciation (depreciation) on investments		(57,432,579)
Net Assets, for 30,277,680 shares outstanding		$ 3,062,967,676
Net Asset Value, offering price and redemption price per share ($3,062,967,676 ÷ 30,277,680 shares)		$ 101.16

Statement of Operations

	Six months ended June 30, 2007 (Unaudited)

Investment Income
Dividends		$ 111,690
Interest		65,774,518
Income from Fidelity Central Funds		15,946,441
Total income		81,832,649

Expenses
Custodian fees and expenses	$ 46,816
Expense reductions	(4,260)	42,556
Net investment income		81,790,093
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	(2,954,568)
Swap agreements	(2,698,827)
Total net realized gain (loss)		(5,653,395)
Change in net unrealized appreciation (depreciation) on: Investment securities	(39,499,900)
Swap agreements	(13,193,635)
Total change in net unrealized appreciation (depreciation)		(52,693,535)
Net gain (loss)		(58,346,930)
Net increase (decrease) in net assets resulting from operations		$ 23,443,163

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

Not Part of Financial Report

Statement of Changes in Net Assets

	Six months ended June 30, 2007 (Unaudited)	For the period June 23, 2006 (commencement of operations) to December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income	$ 81,790,093	$ 75,243,878
Net realized gain (loss)	(5,653,395)	(585,352)
Change in net unrealized appreciation (depreciation)	(52,693,535)	82,658,962
Net increase (decrease) in net assets resulting from operations	23,443,163	157,317,488
Distributions to shareholders from net investment income	(76,813,024)	(74,679,073)
Distributions to shareholders from net realized gain	(2,131,039)	(2,712,938)
Total distributions	(78,944,063)	(77,392,011)
Affiliated share transactions Proceeds from sales of shares	417,183,628	357,378,602
Contributions in kind	-	2,367,627,479
Cost of shares redeemed	(93,663,215)	(9,983,395)
Net increase (decrease) in net assets resulting from share transactions	323,520,413	2,715,022,686
Total increase (decrease) in net assets	268,019,513	2,794,948,163

Net Assets
Beginning of period	2,794,948,163	-
End of period (including undistributed net investment income of $8,128,604 and undistributed net investment income of $3,151,535, respectively)	$ 3,062,967,676	$ 2,794,948,163
Other Information Shares
Sold	4,056,969	3,550,542
Issued for in-kind contributions	-	23,676,275
Redeemed	(908,669)	(97,437)
Net increase (decrease)	3,148,300	27,129,380

Financial Highlights

	Six months ended June 30, 2007	Year ended December 31,
	(Unaudited)	2006^H
Selected Per-Share Data
Net asset value, beginning of period	$ 103.02	$ 100.00
Income from Investment Operations
Net investment income^D	2.818	2.814
Net realized and unrealized gain (loss)	(1.951)	3.132
Total from investment operations	.867	5.946
Distributions from net investment income	(2.652)	(2.826)
Distributions from net realized gain	(.075)	(.100)
Total distributions	(2.727)	(2.926)
Net asset value, end of period	$ 101.16	$ 103.02
Total Return^{B, C}	.83%	5.95%
Ratios to Average Net Assets^{E, I}
Expenses before reductions	-%^{A, G}	-%^{A, G}
Expenses net of fee waivers, if any	-%^{A, G}	-%^{A, G}
Expenses net of all reductions	-%^{A, G}	-%^{A, G}
Net investment income	5.54%	5.23%
Supplemental Data
Net assets, end of period (000 omitted)	$ 3,062,968	$ 2,794,948
Portfolio turnover rate^F	123%^A	99%^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

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

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

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

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

^G Amount represents less than .01%.

^H For the period June 23, 2006 (commencement of operations) to December 31, 2006.

^I Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

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

Not Part of Financial Report

Notes to Financial Statements

For the period ended June 30, 2007 (Unaudited)

1. Organization.

Fidelity VIP Investment Grade Central Fund (the Fund) is a fund of Fidelity Garrison Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund are only offered to other investment companies and accounts managed by Fidelity Management & Research Company (FMR), or its affiliates.

2. Investments in Fidelity Central Funds.

Fidelity Central Fund

Investment Manager

Investment Objective

Investment Practices

Fidelity Ultra-Short Central Fund

Fidelity Investments Money Management, Inc. (FIMM)

Seeks to obtain a high level of current income consistent with preservation of capital by investing in U.S. dollar denominated money market and investment-grade debt securities.

Delayed Delivery & When Issued Securities

Futures

Mortgage Dollar Rolls

Repurchase Agreements

Restricted Securities

Swap Agreements

A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.

On April 26, 2007, the Fund purchased 793,730 shares of Fidelity Ultra-Short Central Fund, an affiliated entity, valued at $78,603,082 by transferring securities of equal value, including accrued interest. This is considered taxable for federal income tax purposes, and the Fund recognized a gain of $79,985.

3. Significant Accounting Policies.

Security Valuation. Investments are valued and net asset value per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Directors to value its investments. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices.

When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Directors. The frequency of when fair value pricing is used is unpredictable. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

Not Part of Financial Report

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

and amortization of premium and accretion of discount on debt securities. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. Interest is accrued based on the principal value, which is adjusted for inflation. Any increase in the principal amount of an inflation-indexed bond is recorded as interest income, even though principal is not received until maturity. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Expenses. Most expenses of the Trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the Trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Partners. The Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes, on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the tax years in the three year period ended June 29, 2007, remains subject to examination by the Internal Revenue Service.

Book-tax differences are primarily due to the short-term capital gains, swap agreements, market discount, financing transactions, and losses deferred due to wash sales and excise tax regulations.

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

Unrealized appreciation	$ 10,700,850
Unrealized depreciation	(50,591,071)
Net unrealized appreciation (depreciation)	$ (39,890,221)
Cost for federal income tax purposes	$ 3,543,088,829

4. Operating Policies.

Not Part of Financial Report

Notes to Financial Statements (Unaudited) - continued

4. Operating Policies - continued

Swap Agreements. The Fund may invest in swaps for the purpose of managing its 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. Periodic payments received or made by the Fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively. The primary risk associated with interest rate swaps is that unfavorable changes in the fluctuation of interest rates could adversely impact a fund.

Total return swaps are agreements to exchange the return generated by one instrument or index for the return generated by another instrument, for example, the agreement to pay interest in exchange for a market-linked return based on a notional amount. To the extent the total return of the index exceeds the offsetting interest obligation, a fund will receive a payment from the counterparty. To the extent it is less, a fund will make a payment to the counterparty. Periodic payments received or made by the Fund are recorded in the accompanying Statement of Operations as realized gains or losses, respectively.

5. Purchases and Sales of Investments.

Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities and U.S. government securities, aggregated $517,880,226 and $291,661,028, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FIMM provides the Fund with investment management services. The Fund does not pay any fees for these services. Pursuant to the Fund's management contract with FIMM, FMR pays FIMM a portion of the management fees it receives from the Investing Funds. In addition, under an expense contract, FMR also pays all other expenses of the Fund, excluding custody fees, the compensation of the independent Trustees, and certain exceptions such as interest expense.

Not Part of Financial Report

7. Expense Reductions.

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 expenses by $4,260.

8. Other.

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

At the end of the period mutual funds managed by FMR or an FMR affiliate were the owners of record of all of the outstanding shares of the Fund according to the following schedule:

Fund	Ownership %
VIP Asset Manager Portfolio	24.1%
VIP Asset Manager: Growth Portfolio	1.6%
VIP Balanced Portfolio	5.7%
VIP Investment Grade Bond Portfolio	68.6%

Not Part of Financial Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Investment Grade Central Fund

At its June 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant and ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.

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

Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures.

Based on its review, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered that FMR pays the fund's management fee on behalf of the fund. The Board also noted that FMR bears all expenses of the fund, except expenses related to the fund's investment activities (primarily custody expenses). Based on its review, the Board concluded that the fund's net management fee and total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

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

Not Part of Financial Report

The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR bears all expenses of the fund, except expenses related to the fund's investment activities.

Economies of Scale. The Board concluded that the realization of economies of scale was not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR bears all expenses of the fund, except expenses related to the fund's investment activities.

Not Part of Financial Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Adviser

Fidelity Investments Money Management, Inc.

Fidelity Research & Analysis Company

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

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

Fidelity Service Company, Inc.
Boston, MA

Custodian

The Bank of New York
New York, NY

VIPIGB-SANN-0807
1.705629.109

Fidelity® Variable Insurance Products:

Freedom Funds -
Income, 2005, 2010, 2015, 2020, 2025, 2030

Semiannual Report

June 30, 2007

(2_fidelity_logos) (Registered_Trademark)

Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Freedom Income Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2005 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2010 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2015 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2020 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2025 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Freedom 2030 Portfolio	<Click Here>	Investment Changes
	<Click Here>	Investments
	<Click Here>	Financial Statements
Notes	<Click Here>	Notes to the financial statements.
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

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

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

This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

VIP Freedom Funds Portfolio

Shareholder Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2007 to June 30, 2007).

Actual Expenses

The first line of the accompanying table for each class of each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of each fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, each Fund, as a shareholder in underlying Fidelity Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Funds. These fees and expenses are not included in each Fund's annualized expense ratio used to calculate the expense estimates in the table below.

	Beginning Account Value January 1, 2007	Ending Account Value June 30, 2007	Expenses Paid During Period * January 1, 2007 to June 30, 2007
VIP Freedom Income
Initial Class
Actual	$ 1,000.00	$ 1,033.70	$ .00
Hypothetical^A	$ 1,000.00	$ 1,024.79	$ .00
Service Class
Actual	$ 1,000.00	$ 1,033.70	$ .50
Hypothetical^A	$ 1,000.00	$ 1,024.30	$ .50
Service Class 2
Actual	$ 1,000.00	$ 1,033.30	$ 1.26
Hypothetical^A	$ 1,000.00	$ 1,023.55	$ 1.25
VIP Freedom 2005
Initial Class
Actual	$ 1,000.00	$ 1,060.50	$ .00
Hypothetical^A	$ 1,000.00	$ 1,024.79	$ .00
Service Class
Actual	$ 1,000.00	$ 1,059.60	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.30	$ .50
Service Class 2
Actual	$ 1,000.00	$ 1,058.70	$ 1.28
Hypothetical^A	$ 1,000.00	$ 1,023.55	$ 1.25
	Beginning Account Value January 1, 2007	Ending Account Value June 30, 2007	Expenses Paid During Period * January 1, 2007 to June 30, 2007
VIP Freedom 2010
Initial Class
Actual	$ 1,000.00	$ 1,060.80	$ .00
Hypothetical^A	$ 1,000.00	$ 1,024.79	$ .00
Service Class
Actual	$ 1,000.00	$ 1,060.00	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.30	$ .50
Service Class 2
Actual	$ 1,000.00	$ 1,059.20	$ 1.28
Hypothetical^A	$ 1,000.00	$ 1,023.55	$ 1.25
VIP Freedom 2015
Initial Class
Actual	$ 1,000.00	$ 1,068.20	$ .00
Hypothetical^A	$ 1,000.00	$ 1,024.79	$ .00
Service Class
Actual	$ 1,000.00	$ 1,067.30	$ .51
Hypothetical^A	$ 1,000.00	$ 1,024.30	$ .50
Service Class 2
Actual	$ 1,000.00	$ 1,066.60	$ 1.28
Hypothetical^A	$ 1,000.00	$ 1,023.55	$ 1.25
VIP Freedom 2020
Initial Class
Actual	$ 1,000.00	$ 1,078.80	$ .00
Hypothetical^A	$ 1,000.00	$ 1,024.79	$ .00
Service Class
Actual	$ 1,000.00	$ 1,078.00	$ .52
Hypothetical^A	$ 1,000.00	$ 1,024.30	$ .50
Service Class 2
Actual	$ 1,000.00	$ 1,077.20	$ 1.29
Hypothetical^A	$ 1,000.00	$ 1,023.55	$ 1.25
VIP Freedom 2025
Initial Class
Actual	$ 1,000.00	$ 1,082.20	$ .00
Hypothetical^A	$ 1,000.00	$ 1,024.79	$ .00
Service Class
Actual	$ 1,000.00	$ 1,081.40	$ .52
Hypothetical^A	$ 1,000.00	$ 1,024.30	$ .50
Service Class 2
Actual	$ 1,000.00	$ 1,080.60	$ 1.29
Hypothetical^A	$ 1,000.00	$ 1,023.55	$ 1.25
VIP Freedom 2030
Initial Class
Actual	$ 1,000.00	$ 1,093.40	$ .00
Hypothetical^A	$ 1,000.00	$ 1,024.79	$ .00
Service Class
Actual	$ 1,000.00	$ 1,091.70	$ .52
Hypothetical^A	$ 1,000.00	$ 1,024.30	$ .50
Service Class 2
Actual	$ 1,000.00	$ 1,091.90	$ 1.30
Hypothetical^A	$ 1,000.00	$ 1,023.55	$ 1.25

^A 5% return per year before expenses

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

* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 181/ 365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Funds in which the Fund invests are not included in each Class' annualized expense ratio.

VIP Freedom Funds Portfolio

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

Semiannual Report

VIP Freedom Income Portfolio

Investment Changes

Fund Holdings as of June 30, 2007
	% of fund's investments	% of fund's investments 6 months ago
Domestic Equity Funds
VIP Contrafund Portfolio Initial Class	3.2	3.2
VIP Equity-Income Portfolio Initial Class	3.6	3.8
VIP Growth & Income Portfolio Initial Class	3.6	3.7
VIP Growth Portfolio Initial Class	3.7	3.7
VIP Mid Cap Portfolio Initial Class	1.3	1.3
VIP Value Portfolio Initial Class	3.1	3.2
VIP Value Strategies Portfolio Initial Class	1.3	1.3
	19.8	20.2
High Yield Fixed-Income Funds
VIP High Income Portfolio Initial Class	4.9	5.1
Investment Grade Fixed-Income Funds
VIP Investment Grade Bond Portfolio Initial Class	34.9	34.8
Short-Term Funds
VIP Money Market Portfolio Initial Class	40.4	39.9
	100.0	100.0

Asset Allocation (% of fund's investments)
Current
	Domestic Equity Funds	19.8%
	Investment Grade Fixed-Income Funds	34.9%
	High Yield Fixed-Income Funds	4.9%
	Short-Term Funds	40.4%

Six months ago
	Domestic Equity Funds	20.2%
	Investment Grade Fixed-Income Funds	34.8%
	High Yield Fixed-Income Funds	5.1%
	Short-Term Funds	39.9%

The six months ago allocation is based on the fund's holdings as of
December 31, 2006. The current allocation is based on the fund's holdings as of June 30, 2007.

VIP Freedom Funds Portfolio

VIP Freedom Income Portfolio

Investments June 30, 2007 (Unaudited)

Showing Percentage of Total Value of Investment in Securities

Equity Funds - 19.8%
	Shares		Value
Domestic Equity Funds - 19.8%
VIP Contrafund Portfolio Initial Class	13,619		$ 461,147
VIP Equity-Income Portfolio Initial Class	18,694		531,290
VIP Growth & Income Portfolio Initial Class	32,161		532,589
VIP Growth Portfolio Initial Class	13,576		544,551
VIP Mid Cap Portfolio Initial Class	5,460		192,733
VIP Value Portfolio Initial Class	30,650		454,544
VIP Value Strategies Portfolio Initial Class	13,719		189,600
TOTAL EQUITY FUNDS (Cost $2,536,458)		2,906,454
Fixed-Income Funds - 39.8%

High Yield Fixed-Income Funds - 4.9%
VIP High Income Portfolio Initial Class	110,643		723,603
Investment Grade Fixed-Income Funds - 34.9%
VIP Investment Grade Bond Portfolio Initial Class	416,002		5,120,988
TOTAL FIXED-INCOME FUNDS (Cost $5,906,892)		5,844,591
Short-Term Funds - 40.4%

VIP Money Market Portfolio Initial Class (Cost $5,921,286)	5,921,286		5,921,286
TOTAL INVESTMENT IN SECURITIES - 100% (Cost $14,364,636)		$ 14,672,331

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

Semiannual Report

VIP Freedom Income Portfolio

Financial Statements

Statement of Assets and Liabilities

	June 30, 2007 (Unaudited)

Assets
Investment in securities, at value (cost $14,364,636) - See accompanying schedule		$ 14,672,331
Cash		35
Receivable for fund shares sold		105,353
Total assets		14,777,719

Liabilities
Payable for investments purchased	$ 104,294
Payable for fund shares redeemed	263
Distribution fees payable	590
Total liabilities		105,147

Net Assets		$ 14,672,572
Net Assets consist of:
Paid in capital		$ 14,001,882
Undistributed net investment income		300,848
Accumulated undistributed net realized gain (loss) on investments		62,147
Net unrealized appreciation (depreciation) on investments		307,695
Net Assets		$ 14,672,572

Initial Class: Net Asset Value, offering price and redemption price per share ($11,416,719 ÷ 1,035,569 shares)		$ 11.02

Service Class: Net Asset Value, offering price and redemption price per share ($404,030 ÷ 36,658 shares)		$ 11.02

Service Class 2: Net Asset Value, offering price and redemption price per share ($2,851,823 ÷ 259,368 shares)		$ 11.00

Statement of Operations

	Six months ended June 30, 2007 (Unaudited)

Investment Income
Income distributions from underlying funds		$ 310,506

Expenses
Distribution fees	$ 2,955
Independent trustees' compensation	19
Total expenses before reductions	2,974
Expense reductions	(19)	2,955
Net investment income (loss)		307,551
Realized and Unrealized Gain (Loss) Realized gain (loss) on sale of underlying fund shares	(18,328)
Capital gain distributions from underlying funds	83,674	65,346
Change in net unrealized appreciation (depreciation) on underlying funds		51,169
Net gain (loss)		116,515
Net increase (decrease) in net assets resulting from operations		$ 424,066

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

VIP Freedom Funds Portfolio

Statement of Changes in Net Assets

	Six months ended June 30, 2007 (Unaudited)	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 307,551	$ 313,672
Net realized gain (loss)	65,346	91,629
Change in net unrealized appreciation (depreciation)	51,169	167,067
Net increase (decrease) in net assets resulting from operations	424,066	572,368
Distributions to shareholders from net investment income	(11,201)	(309,765)
Distributions to shareholders from net realized gain	(44,806)	(49,069)
Total distributions	(56,007)	(358,834)
Share transactions - net increase (decrease)	3,454,654	3,951,196
Total increase (decrease) in net assets	3,822,713	4,164,730

Net Assets
Beginning of period	10,849,859	6,685,129
End of period (including undistributed net investment income of $300,848 and undistributed net investment income of $4,498, respectively)	$ 14,672,572	$ 10,849,859

Financial Highlights - Initial Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.71	$ 10.36	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.26	.40	.16
Net realized and unrealized gain (loss)	.10	.32	.30
Total from investment operations	.36	.72	.46
Distributions from net investment income	(.01)	(.32)	(.10)
Distributions from net realized gain	(.04)	(.05)	-
Total distributions	(.05)	(.37)	(.10)
Net asset value, end of period	$ 11.02	$ 10.71	$ 10.36
Total Return^{B, C, D}	3.37%	6.94%	4.58%
Ratios to Average Net Assets^{F, H}
Expenses before reductions	.00%^A	.00%	.00%^A
Expenses net of fee waivers, if any	.00%^A	.00%	.00%^A
Expenses net of all reductions	.00%^A	.00%	.00%^A
Net investment income (loss)	4.79%^A	3.75%	2.34%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 11,417	$ 9,398	$ 5,954
Portfolio turnover rate	33%^A	44%	12%^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

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

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

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

^F Amounts do not include the activity of the underlying funds.

^G For the period April 26, 2005 (commencement of operations) to December 31, 2005.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.

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

Semiannual Report

Financial Highlights - Service Class

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005 ^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.71	$ 10.36	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.26	.39	.16
Net realized and unrealized gain (loss)	.10	.32	.29
Total from investment operations	.36	.71	.45
Distributions from net investment income	(.01)	(.31)	(.09)
Distributions from net realized gain	(.04)	(.05)	-
Total distributions	(.05)	(.36)	(.09)
Net asset value, end of period	$ 11.02	$ 10.71	$ 10.36
Total Return^{B, C, D}	3.37%	6.83%	4.51%
Ratios to Average Net Assets^{F, H}
Expenses before reductions	.10%^A	.10%	.10%^A
Expenses net of fee waivers, if any	.10%^A	.10%	.10%^A
Expenses net of all reductions	.10%^A	.10%	.10%^A
Net investment income (loss)	4.69%^A	3.65%	2.24%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 404	$ 391	$ 366
Portfolio turnover rate	33%^A	44%	12%^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

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

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

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

^F Amounts do not include the activity of the underlying funds.

^G For the period April 26, 2005 (commencement of operations) to December 31, 2005.

^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class but do not include expenses of the investment companies in which the Fund invests.

Financial Highlights - Service Class 2

	Six months ended June 30, 2007	Years ended December 31,
	(Unaudited)	2006	2005 ^G
Selected Per-Share Data
Net asset value, beginning of period	$ 10.69	$ 10.36	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.25	.37	.15
Net realized and unrealized gain (loss)	.11	.32	.29
Total from investment operations	.36	.69	.44
Distributions from net investment income	(.01)	(.31)	(.08)
Distributions from net realized gain	(.04)	(.05)	-
Total distributions	(.05)	(.36)	(.08)
Net asset value, end of period	$ 11.00	$ 10.69	$ 10.36
Total Return^{B, C, D}	3.33%	6.61%	4.41%
Ratios to Average Net Assets^{F, H}
Expenses before reductions	.25%^A	.25%	.25%^A
Expenses net of fee waivers, if any	.25%^A	.25%	.25%^A
Expenses net of all reductions	.25%^A	.25%	.25%^A
Net investment income (loss)	4.54%^A	3.50%	2.09%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,852	$ 1,061	$ 365
Portfolio turnover rate	33%^A	44%	12%^A