N-Q 1 Contra_main.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-5511

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

245 Summer St., Boston, Massachusetts 02210
 (Address of principal executive offices)       (Zip code)

Scott C. Goebel, Secretary

245 Summer St.

Boston, Massachusetts 02210
(Name and address of agent for service)

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

Date of fiscal year end:

December 31

 

 

Date of reporting period:

March 31, 2015

This report on Form N-Q relates solely to the Registrant's Contrafund Portfolio series (a "Fund").

Item 1. Schedule of Investments

Investments March 31, 2015 (Unaudited)

Quarterly Holdings Report

for

Fidelity ® Variable Insurance Products:
Contrafund ® Portfolio

March 31, 2015 

1.799865.111

VIPCON-QTLY-0515

Investments March 31, 2015 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 99.0%

Shares

Value

CONSUMER DISCRETIONARY - 14.6%

Automobiles - 0.2%

Harley-Davidson, Inc.

636,000

$ 38,630,640

Diversified Consumer Services - 0.6%

2U, Inc.

34,958

894,226

H&R Block, Inc.

3,368,157

108,016,795

 

108,911,021

Hotels, Restaurants & Leisure - 3.8%

ARAMARK Holdings Corp.

862,000

27,265,060

Extended Stay America, Inc. unit

6,480,927

126,572,504

McDonald's Corp.

2,273,484

221,528,281

Panera Bread Co. Class A (a)

845,997

135,355,290

Starbucks Corp.

2,068,400

195,877,480

Wynn Resorts Ltd.

456,400

57,451,632

 

764,050,247

Internet & Catalog Retail - 2.7%

Amazon.com, Inc. (a)

157,900

58,754,590

Ctrip.com International Ltd. sponsored ADR (a)

791,734

46,411,447

Liberty Interactive Corp. Series A (a)

6,815,006

198,930,025

Priceline Group, Inc. (a)

144,148

167,809,894

Travelport Worldwide Ltd. (d)

3,618,840

60,434,628

 

532,340,584

Media - 3.6%

Comcast Corp. Class A

630,006

35,576,439

DIRECTV (a)

717,619

61,069,377

DreamWorks Animation SKG, Inc. Class A (a)(d)

3,099,117

74,998,631

Legend Pictures LLC (a)(f)(g)

2,062

4,953,563

Liberty Media Corp. Class C (a)

3,836,800

146,565,760

Manchester United PLC (a)

1,849,700

29,428,727

The Madison Square Garden Co.Class A (a)

2,576,357

218,088,620

Time Warner Cable, Inc.

43,800

6,564,744

Twenty-First Century Fox, Inc. Class A

4,111,107

139,119,861

Weinstein Co. Holdings LLC Class A-1 (a)(f)(g)

11,499

3,035,736

 

719,401,458

Multiline Retail - 1.5%

B&M European Value Retail S.A.

16,384,767

75,953,635

Dollar General Corp.

2,991,820

225,523,392

Poundland Group PLC

385,222

2,084,607

 

303,561,634

Specialty Retail - 0.8%

GameStop Corp. Class A

53,300

2,023,268

Michaels Companies, Inc.

1,518,272

41,084,440

TJX Companies, Inc.

1,764,807

123,624,730

 

166,732,438

Textiles, Apparel & Luxury Goods - 1.4%

lululemon athletica, Inc. (a)

807,962

51,725,727

 

Shares

Value

NIKE, Inc. Class B

1,984,835

$ 199,138,496

PVH Corp.

205,000

21,844,800

 

272,709,023

TOTAL CONSUMER DISCRETIONARY

2,906,337,045

CONSUMER STAPLES - 9.2%

Beverages - 1.8%

Anheuser-Busch InBev SA NV

230,171

28,118,930

Coca-Cola Icecek Sanayi A/S

325,515

5,504,890

Diageo PLC sponsored ADR

204,942

22,660,437

Embotelladora Andina SA sponsored ADR

403,527

6,073,081

Monster Beverage Corp. (a)

330,310

45,713,252

Pernod Ricard SA

118,079

13,985,134

Remy Cointreau SA

50,045

3,686,046

The Coca-Cola Co.

5,487,106

222,502,148

 

348,243,918

Food & Staples Retailing - 2.3%

CVS Health Corp.

2,000,464

206,467,889

Kroger Co.

1,543,482

118,323,330

Sysco Corp.

1,389,396

52,421,911

Wal-Mart Stores, Inc.

623,091

51,249,235

Whole Foods Market, Inc.

674,200

35,112,336

 

463,574,701

Food Products - 1.4%

Bunge Ltd.

488,512

40,233,848

Keurig Green Mountain, Inc.

380,419

42,504,215

Mead Johnson Nutrition Co. Class A

1,031,689

103,715,695

Mondelez International, Inc.

744,500

26,869,005

Nestle SA

255,697

19,254,608

The Hershey Co.

489,290

49,374,254

 

281,951,625

Household Products - 1.4%

Colgate-Palmolive Co.

674,300

46,755,962

Procter & Gamble Co.

2,774,484

227,341,219

 

274,097,181

Personal Products - 0.2%

Estee Lauder Companies, Inc. Class A

482,000

40,083,120

L'Oreal SA

31,600

5,822,113

 

45,905,233

Tobacco - 2.1%

Altria Group, Inc.

4,013,854

200,772,977

British American Tobacco PLC sponsored ADR

1,985,379

206,022,779

Souza Cruz SA

703,000

5,594,836

 

412,390,592

TOTAL CONSUMER STAPLES

1,826,163,250

Common Stocks - continued

Shares

Value

ENERGY - 8.0%

Energy Equipment & Services - 1.1%

Baker Hughes, Inc.

280,300

$ 17,821,474

C&J Energy Services Ltd. (a)

1,211,739

13,486,655

Dril-Quip, Inc. (a)

255,392

17,466,259

Halliburton Co.

2,047,082

89,825,958

Independence Contract Drilling, Inc.

1,223,029

8,524,512

Oceaneering International, Inc.

547,362

29,519,233

Schlumberger Ltd.

668,300

55,762,952

 

232,407,043

Oil, Gas & Consumable Fuels - 6.9%

Anadarko Petroleum Corp.

1,666,252

137,982,328

Apache Corp.

640,300

38,629,299

BG Group PLC

1,962,636

24,088,880

Cabot Oil & Gas Corp.

1,512,135

44,653,347

Chevron Corp.

2,762,400

289,996,752

Cimarex Energy Co.

610,400

70,250,936

Columbia Pipeline Partners LP

495,706

13,726,099

EOG Resources, Inc.

955,874

87,644,087

EP Energy Corp. (a)(d)

1,744,389

18,281,197

Exxon Mobil Corp.

2,049,702

174,224,670

Kinder Morgan, Inc.

2,818,143

118,531,095

Memorial Resource Development Corp.

1,397,200

24,786,328

Noble Energy, Inc.

2,065,200

100,988,280

Parsley Energy, Inc. Class A (d)

1,032,551

16,500,165

Phillips 66 Co.

1,261,439

99,149,105

PrairieSky Royalty Ltd. (d)

715,750

16,885,721

SM Energy Co.

181,000

9,354,080

Suncor Energy, Inc.

2,405,495

70,291,240

Valero Energy Partners LP

365,900

17,709,560

 

1,373,673,169

TOTAL ENERGY

1,606,080,212

FINANCIALS - 15.8%

Banks - 7.1%

Bank of America Corp.

22,522,114

346,615,334

Citigroup, Inc.

7,622,350

392,703,472

Huntington Bancshares, Inc.

8,023,981

88,664,990

JPMorgan Chase & Co.

5,054,106

306,177,741

SunTrust Banks, Inc.

1,135,425

46,654,613

Synovus Financial Corp.

964,323

27,010,687

U.S. Bancorp

4,653,444

203,215,899

 

1,411,042,736

Capital Markets - 2.4%

Ameriprise Financial, Inc.

323,043

42,266,946

Artisan Partners Asset Management, Inc.

224,900

10,223,954

BlackRock, Inc. Class A

273,013

99,879,076

E*TRADE Financial Corp. (a)

1,553,878

44,370,986

Goldman Sachs Group, Inc.

804,400

151,203,068

 

Shares

Value

Invesco Ltd.

565,857

$ 22,458,864

Northern Trust Corp.

510,764

35,574,713

Oaktree Capital Group LLC Class A

331,134

17,106,382

State Street Corp.

345,200

25,382,556

The Blackstone Group LP

743,437

28,912,265

 

477,378,810

Consumer Finance - 2.2%

Capital One Financial Corp.

4,091,948

322,527,341

Navient Corp.

2,174,576

44,209,130

SLM Corp.

4,685,976

43,485,857

Springleaf Holdings, Inc. (a)

726,000

37,585,020

 

447,807,348

Diversified Financial Services - 0.8%

Berkshire Hathaway, Inc.:

Class A (a)

47

10,222,500

Class B (a)

555,400

80,155,328

IntercontinentalExchange Group, Inc.

209,509

48,872,164

KBC Ancora (a)

401,778

13,768,216

 

153,018,208

Insurance - 1.5%

Direct Line Insurance Group PLC

7,526,800

35,617,164

Fairfax Financial Holdings Ltd. (sub. vtg.)

50,586

28,357,396

Marsh & McLennan Companies, Inc.

1,098,070

61,590,746

MetLife, Inc.

892,387

45,110,163

Principal Financial Group, Inc.

688,800

35,383,656

The Chubb Corp.

809,200

81,810,120

Unum Group

627,800

21,175,694

 

309,044,939

Real Estate Investment Trusts - 1.4%

Altisource Residential Corp. Class B

1,891,182

39,450,057

American Tower Corp.

262,900

24,752,035

Boston Properties, Inc.

403,400

56,669,632

Digital Realty Trust, Inc.

835,700

55,122,772

Duke Realty LP

919,400

20,015,338

InfraReit, Inc.

197,600

5,649,384

Outfront Media, Inc.

420,614

12,584,771

Sun Communities, Inc.

772,269

51,525,788

The Macerich Co.

93,800

7,910,154

 

273,679,931

Real Estate Management & Development - 0.4%

CBRE Group, Inc. (a)

1,971,489

76,316,339

Thrifts & Mortgage Finance - 0.0%

Ocwen Financial Corp. (a)(d)

678,600

5,598,450

TOTAL FINANCIALS

3,153,886,761

HEALTH CARE - 15.3%

Biotechnology - 4.8%

Actelion Ltd.

29,477

3,415,425

Alexion Pharmaceuticals, Inc. (a)

589,332

102,131,236

Amgen, Inc.

1,118,120

178,731,482

Common Stocks - continued

Shares

Value

HEALTH CARE - continued

Biotechnology - continued

Biogen, Inc. (a)

420,831

$ 177,691,681

BioMarin Pharmaceutical, Inc. (a)

455,793

56,800,924

Celgene Corp. (a)

1,363,900

157,230,392

Cellectis SA sponsored ADR

59,900

2,071,941

Gilead Sciences, Inc. (a)

2,146,361

210,622,405

Vertex Pharmaceuticals, Inc. (a)

521,000

61,462,370

 

950,157,856

Health Care Equipment & Supplies - 2.9%

Boston Scientific Corp. (a)

7,889,349

140,035,945

Edwards Lifesciences Corp. (a)

266,242

37,928,835

Medtronic PLC

3,019,890

235,521,221

Quidel Corp. (a)(d)

439,231

11,850,452

The Cooper Companies, Inc.

352,420

66,050,556

Zimmer Holdings, Inc.

665,200

78,174,304

 

569,561,313

Health Care Providers & Services - 2.8%

Brookdale Senior Living, Inc. (a)

1,202,233

45,396,318

Cigna Corp.

1,031,526

133,520,725

HCA Holdings, Inc. (a)

931,814

70,100,367

Henry Schein, Inc. (a)

337,441

47,113,512

McKesson Corp.

786,700

177,951,540

UnitedHealth Group, Inc.

762,100

90,148,809

 

564,231,271

Life Sciences Tools & Services - 0.9%

Agilent Technologies, Inc.

1,253,700

52,091,235

Fluidigm Corp. (a)

312,345

13,149,725

Thermo Fisher Scientific, Inc.

875,113

117,562,680

 

182,803,640

Pharmaceuticals - 3.9%

AbbVie, Inc.

464,021

27,163,789

Actavis PLC (a)

829,052

246,742,456

Bristol-Myers Squibb Co.

2,849,405

183,786,623

Endo Health Solutions, Inc. (a)

316,600

28,399,020

Mallinckrodt PLC (a)

540,700

68,479,655

Merck & Co., Inc.

619,105

35,586,155

Roche Holding AG (participation certificate)

138,596

38,085,086

Shire PLC

815,774

65,036,046

Teva Pharmaceutical Industries Ltd. sponsored ADR

1,375,300

85,681,190

 

778,960,020

TOTAL HEALTH CARE

3,045,714,100

 

Shares

Value

INDUSTRIALS - 9.1%

Aerospace & Defense - 1.3%

Meggitt PLC

9,866,973

$ 80,282,122

TransDigm Group, Inc.

844,036

184,607,554

 

264,889,676

Air Freight & Logistics - 0.6%

FedEx Corp.

652,892

108,020,981

Electrical Equipment - 1.3%

AMETEK, Inc.

5,064,449

266,086,150

Industrial Conglomerates - 2.8%

Danaher Corp.

3,275,221

278,066,263

Roper Industries, Inc.

1,571,256

270,256,032

 

548,322,295

Machinery - 1.4%

Deere & Co.

1,322,400

115,961,256

Pall Corp.

938,600

94,226,054

WABCO Holdings, Inc. (a)

532,900

65,482,752

 

275,670,062

Professional Services - 0.3%

Verisk Analytics, Inc. (a)

866,249

61,850,179

Road & Rail - 0.9%

J.B. Hunt Transport Services, Inc.

2,152,433

183,807,016

Trading Companies & Distributors - 0.5%

HD Supply Holdings, Inc. (a)

3,342,897

104,147,956

TOTAL INDUSTRIALS

1,812,794,315

INFORMATION TECHNOLOGY - 18.4%

Communications Equipment - 1.7%

Cisco Systems, Inc.

3,612,139

99,424,126

QUALCOMM, Inc.

3,310,335

229,538,629

 

328,962,755

Electronic Equipment & Components - 0.4%

Samsung SDI Co. Ltd.

90,320

11,117,636

TE Connectivity Ltd.

776,064

55,581,704

Trimble Navigation Ltd. (a)

880,900

22,198,680

 

88,898,020

Internet Software & Services - 4.7%

58.com, Inc. ADR (a)

347,537

18,377,757

Alibaba Group Holding Ltd. sponsored ADR (d)

1,798,700

149,723,788

ChannelAdvisor Corp. (a)

932,595

9,036,846

Cvent, Inc. (a)

1,811,413

50,792,021

Demandware, Inc. (a)

82,460

5,021,814

Facebook, Inc. Class A (a)

2,821,976

232,008,757

Five9, Inc.

1,354,600

7,531,576

Google, Inc. Class C (a)

699,184

383,152,832

HomeAway, Inc. (a)

1,066,362

32,172,142

Opower, Inc. (d)

2,242,240

22,713,891

Twitter, Inc. (a)

170,600

8,543,648

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Internet Software & Services - continued

Wix.com Ltd. (a)

421,665

$ 8,079,101

Zoopla Property Group PLC (d)

3,840,858

10,295,434

 

937,449,607

IT Services - 0.6%

Fidelity National Information Services, Inc.

187,600

12,768,056

Lionbridge Technologies, Inc. (a)

796,595

4,556,523

Sabre Corp.

2,905,086

70,593,590

Total System Services, Inc.

852,700

32,530,505

 

120,448,674

Semiconductors & Semiconductor Equipment - 3.1%

Altera Corp.

799,400

34,302,254

Analog Devices, Inc.

409,100

25,773,300

Broadcom Corp. Class A

336,000

14,547,120

Intel Corp.

2,863,400

89,538,518

Marvell Technology Group Ltd.

12,024,100

176,754,270

Maxim Integrated Products, Inc.

344,100

11,978,121

Micron Technology, Inc. (a)

1,101,400

29,880,982

NVIDIA Corp.

1,555,200

32,542,560

NXP Semiconductors NV (a)

831,659

83,465,297

Qorvo, Inc. (a)

1,458,857

116,270,903

 

615,053,325

Software - 3.0%

Activision Blizzard, Inc.

485,200

11,026,170

Adobe Systems, Inc. (a)

1,688,129

124,820,258

Autodesk, Inc. (a)

557,300

32,680,072

Citrix Systems, Inc. (a)

128,800

8,226,456

Fleetmatics Group PLC (a)

384,494

17,244,556

Imperva, Inc. (a)

1,345,847

57,467,667

Intuit, Inc.

877,802

85,111,682

Oracle Corp.

1,360,793

58,718,218

RealPage, Inc. (a)

1,316,927

26,522,910

salesforce.com, Inc. (a)

1,798,857

120,181,636

Xero Ltd. (a)(d)

1,272,305

22,923,323

Yodlee, inc. (d)

511,243

6,881,331

Zendesk, Inc.

1,100,200

24,963,538

 

596,767,817

Technology Hardware, Storage & Peripherals - 4.9%

Apple, Inc.

6,452,092

802,833,813

Electronics for Imaging, Inc. (a)

720,106

30,064,426

Hewlett-Packard Co.

3,260,500

101,597,180

SanDisk Corp.

327,500

20,835,550

Western Digital Corp.

295,700

26,911,657

 

982,242,626

TOTAL INFORMATION TECHNOLOGY

3,669,822,824

 

Shares

Value

MATERIALS - 4.1%

Chemicals - 3.5%

Airgas, Inc.

1,412,755

$ 149,907,433

CF Industries Holdings, Inc.

116,100

32,935,248

E.I. du Pont de Nemours & Co.

1,297,800

92,753,766

Eastman Chemical Co.

704,641

48,803,436

Ecolab, Inc.

1,285,400

147,024,052

FMC Corp.

679,432

38,897,482

LyondellBasell Industries NV Class A

520,124

45,666,887

Methanex Corp.

378,877

20,284,749

Monsanto Co.

693,876

78,088,805

W.R. Grace & Co. (a)

379,322

37,503,566

 

691,865,424

Construction Materials - 0.1%

Eagle Materials, Inc.

343,400

28,694,504

Containers & Packaging - 0.3%

Graphic Packaging Holding Co.

1,425,733

20,730,158

Rock-Tenn Co. Class A

686,796

44,298,342

 

65,028,500

Metals & Mining - 0.2%

Nucor Corp.

829,700

39,435,641

TOTAL MATERIALS

825,024,069

TELECOMMUNICATION SERVICES - 1.7%

Diversified Telecommunication Services - 1.5%

Cogent Communications Group, Inc.

308,538

10,900,648

inContact, Inc. (a)

1,403,117

15,293,975

Level 3 Communications, Inc. (a)

567,086

30,531,910

Verizon Communications, Inc.

5,090,468

247,549,459

 

304,275,992

Wireless Telecommunication Services - 0.2%

SoftBank Corp.

80,200

4,670,804

T-Mobile U.S., Inc. (a)

999,598

31,677,261

Telephone & Data Systems, Inc.

274,133

6,825,912

 

43,173,977

TOTAL TELECOMMUNICATION SERVICES

347,449,969

UTILITIES - 2.8%

Electric Utilities - 1.3%

Edison International

536,126

33,491,791

Exelon Corp.

2,059,292

69,212,804

NextEra Energy, Inc.

937,800

97,578,090

PPL Corp.

1,881,400

63,327,924

 

263,610,609

Gas Utilities - 0.1%

National Fuel Gas Co.

325,175

19,617,808

Common Stocks - continued

Shares

Value

UTILITIES - continued

Independent Power and Renewable Electricity Producers - 0.2%

Calpine Corp. (a)

94,200

$ 2,154,354

NRG Energy, Inc.

1,485,452

37,418,536

 

39,572,890

Multi-Utilities - 1.2%

Dominion Resources, Inc.

1,079,031

76,470,927

NiSource, Inc.

963,277

42,538,312

PG&E Corp.

740,034

39,273,604

Sempra Energy

705,550

76,919,061

 

235,201,904

TOTAL UTILITIES

558,003,211

TOTAL COMMON STOCKS

(Cost $15,091,114,489)


19,751,275,756

Preferred Stocks - 0.2%

 

 

 

 

Convertible Preferred Stocks - 0.1%

ENERGY - 0.1%

Oil, Gas & Consumable Fuels - 0.1%

Southwestern Energy Co. Series B 6.25%

452,200

22,786,358

INFORMATION TECHNOLOGY - 0.0%

Software - 0.0%

MongoDB, Inc. Series F, 8.00% (a)(g)

299,866

2,470,896

TOTAL CONVERTIBLE PREFERRED STOCKS

25,257,254

Nonconvertible Preferred Stocks - 0.1%

CONSUMER STAPLES - 0.1%

Beverages - 0.1%

Ambev SA sponsored ADR

1,523,650

8,776,224

TOTAL PREFERRED STOCKS

(Cost $33,501,852)


34,033,478

U.S. Treasury Obligations - 0.0%

 

Principal Amount

 

U.S. Treasury Bills, yield at date of purchase 0.01% to 0.02% 4/9/15 to 6/4/15 (e)
(Cost $6,849,916)

$ 6,850,000


6,849,878

Money Market Funds - 2.4%

Shares

Value

Fidelity Cash Central Fund, 0.14% (b)

325,674,093

$ 325,674,093

Fidelity Securities Lending Cash Central Fund, 0.15% (b)(c)

161,872,525

161,872,525

TOTAL MONEY MARKET FUNDS

(Cost $487,546,618)


487,546,618

TOTAL INVESTMENT PORTFOLIO - 101.6%

(Cost $15,619,012,875)



20,279,705,730

NET OTHER ASSETS (LIABILITIES) - (1.6)%

(325,690,270)

NET ASSETS - 100%

$ 19,954,015,460

Futures Contracts

Expiration Date

Underlying Face Amount at Value

Unrealized Appreciation/(Depreciation)

Purchased

Equity Index Contracts

778 CME E-mini S&P 500 Index Contracts (United States)

June 2015

$ 80,165,120

$ 166,064

The face value of futures purchased as a percentage of net assets is 0.4%

Legend

(a) Non-income producing

(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.

(c) Investment made with cash collateral received from securities on loan.

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

(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $3,776,899.

(f) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund.

(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 $10,460,195 or 0.1% of net assets.

Additional information on each restricted holding is as follows:

Security

Acquisition Date

Acquisition Cost

Legend Pictures LLC

9/23/10

$ 1,546,500

MongoDB, Inc. Series F, 8.00%

10/2/13

$ 5,014,998

Weinstein Co. Holdings LLC Class A-1

10/19/05

$ 11,499,000

Affiliated Central Funds

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

Fund

Income earned

Fidelity Cash Central Fund

$ 120,394

Fidelity Securities Lending Cash Central Fund

338,546

Total

$ 458,940

Other Information

The following is a summary of the inputs used, as of March 31, 2015, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 2,906,337,045

$ 2,898,347,746

$ -

$ 7,989,299

Consumer Staples

1,834,939,474

1,787,565,936

47,373,538

-

Energy

1,628,866,570

1,604,777,690

24,088,880

-

Financials

3,153,886,761

3,153,886,761

-

-

Health Care

3,045,714,100

2,942,592,968

103,121,132

-

Industrials

1,812,794,315

1,812,794,315

-

-

Information Technology

3,672,293,720

3,669,822,824

-

2,470,896

Materials

825,024,069

825,024,069

-

-

Telecommunication Services

347,449,969

342,779,165

4,670,804

-

Utilities

558,003,211

558,003,211

-

-

U.S. Government and Government Agency Obligations

6,849,878

-

6,849,878

-

Money Market Funds

487,546,618

487,546,618

-

-

Total Investments in Securities:

$ 20,279,705,730

$ 20,083,141,303

$ 186,104,232

$ 10,460,195

Derivative Instruments:

Assets

Futures Contracts

$ 166,064

$ 166,064

$ -

$ -

Income Tax Information

At March 31, 2015, the cost of investment securities for income tax purposes was $15,647,841,160. Net unrealized appreciation aggregated $4,631,864,570, of which $5,046,220,228 related to appreciated investment securities and $414,355,658 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels: Level 1 - quoted prices in active markets for identical investments: Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds etc.): Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available). Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund's investments by major category are as follows:

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy.

For additional information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

Quarterly Report

The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please see the fund's most recent prospectus and annual report.

Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliate.

Quarterly Report

Item 2. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Variable Insurance Products Fund II's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the Trust's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 3. Exhibits

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Variable Insurance Products Fund II

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

May 29, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

May 29, 2015

By:

/s/Howard J. Galligan III

 

Howard J. Galligan III

 

Chief Financial Officer

 

 

Date:

May 29, 2015