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Previous: NATIONWIDE VLI SEPARATE ACCOUNT 2, 485BPOS, 1997-04-24 |
Next: INSURED MUNICIPALS INC TR & INV QUAL TAX EX TR MULTI SER 69, 485BPOS, 1997-04-24 |
(2_FIDELITY_LOGOS)FIDELITY INVESTMENTS
VARIABLE ANNUITY ACCOUNT I
ANNUAL REPORT
DECEMBER 31, 1996
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
VARIABLE ANNUITY OWNERS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE
PROSPECTUS. NEITHER FIDELITY INVESTMENTS LIFE INSURANCE COMPANY NOR
FIDELITY BROKERAGE SERVICES, INC. IS A BANK, AND NEITHER THE ANNUITY NOR
MUTUAL FUND SHARES ARE BACKED OR GUARANTEED BY ANY BANK OR INSURED BY THE
FDIC.
STATEMENT OF ASSETS AND LIABILITIES
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C>
DECEMBER 31, 1996
ASSETS
Investments at Current Market Value:
Variable Insurance Products Fund (VIP)
Money Market Portfolio - 516,421,448 shares (cost $516,421,448) $ 516,421,448
High Income Portfolio - 20,350,982 shares (cost $237,197,853) 254,794,294
Equity-Income Portfolio - 65,552,276 shares (cost $1,058,931,535) 1,378,564,385
Growth Portfolio - 30,615,412 shares (cost $766,643,782) 953,363,919
Overseas Portfolio - 13,041,994 shares (cost $214,953,936) 245,711,153
Variable Insurance Products Fund II (VIP II)
Investment Grade Bond Portfolio - 6,800,548 shares (cost $81,300,775) 83,238,712
Asset Manager Portfolio - 41,464,924 shares (cost $605,056,011) 702,001,153
Index 500 Portfolio - 4,007,905 shares (cost $306,622,134) 357,224,531
Asset Manager Growth Portfolio - 14,139,054 shares (cost $172,034,926) 185,221,607
Contrafund Portfolio - 54,748,561 shares (cost $726,283,082) 906,636,168
Total Assets $ 5,583,177,370
LIABILITIES
Total Liabilities 0
NET ASSETS
Variable Annuity Contracts $ 5,442,772,112
Annuity Reserves 139,079,202
Retained in Variable Account by Fidelity Investments Life Insurance Company 1,326,056
Total Net Assets $ 5,583,177,370
</TABLE>
STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS
For the years ended December 31, 1996 and 1995
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP - VIP - VIP -
MONEY MARKET HIGH INCOME EQUITY-INCOME
12/31/96 12/31/95 12/31/96 12/31/95 12/31/96 12/31/95
INCOME:
Dividends $ 22,183,498 $ 20,938,185 $ 16,728,273 $ 7,310,462 $ 55,685,270 $ 54,694,031
EXPENSES:
Mortality, 3,678,351
expense risk
and adminis- 4,265,461 2,133,584 1,424,671 13,282,629 8,919,504
trative charges
Net investment 17,918,037 17,259,834 14,594,689 5,885,791 42,402,641 45,774,527
income (loss)
Realized gain 0 4,215,546 3,468,694 44,973,966 4,662,258
Unrealized
appreciation
(depreciation) 0 0 6,407,080 14,660,109 71,715,782 205,095,093
during the year
Net increase
in net assets
from operations 17,918,037 17,259,834 25,217,315 24,014,594 159,092,38 255,531,878
9
Payments
received from
contract owners 716,350,463 589,374,91 19,246,520 12,599,198 67,800,413 57,511,018
3 4
Transfers
between sub- (572,043,36 (541,618,26 39,372,795 46,531,837 8,556,850 249,534,173
accounts and the 5) 8)
fixed account, net
Transfers
for contract
benefits and (34,497,387 (22,256,309 (4,602,693) (2,760,110) (27,944,559 (19,939,132
terminations ) ) ) )
Other transfers
(to) from
Fidelity Invest-
ments Life (117,521) (165,577) (16,920) (80,197) (375,090) (608,712)
Insurance
Co., net
Net increase
(decrease) in
net assets 109,692,19 25,334,760 53,999,702 56,290,728 48,037,614 286,497,347
from contract 0
transactions
Retained in
(returned from)
Variable (279,345) 78,923 (113,623) 77,233 (734,182) 602,520
Annuity
Account I, net
Total increase
(decrease) in 127,330,88 42,673,517 79,103,394 80,382,555 206,395,82 542,631,745
net assets 2 1
Net assets at
beginning 389,090,56 346,417,04 175,690,90 95,308,345 1,172,168,5 629,536,819
of period 6 9 0 64
Net assets at end
of period $ 516,421,4 $ 389,090,5 $ 254,794,2 $ 175,690,9 $ 1,378,564, $ 1,172,168,
48 66 94 00 385 564
VIP -
VIP - GROWTH OVERSEAS
12/31/96 12/31/95 12/31/96 12/31/95
INCOME:
Dividends $ 52,408,31 $ 2,257,895 $ 5,076,103 $ 1,831,239
1
EXPENSES:
Mortality,
expense risk
and adminis- 8,895,743 5,588,458 2,325,480
trative charges 2,035,083
Net investment 43,512,568 (3,330,563) 2,750,623
income (loss) (203,844)
Realized gain 34,665,280 11,540,837 4,977,991 12,959,632
Unrealized
appreciation
(depreciation) 25,231,481 132,834,43 17,808,822
during the year 6 2,395,325
Net increase
in net assets
from operations 103,409,32 141,044,71 25,537,436 15,151,113
9 0
Payments
received from
contract owners 65,624,862 45,108,759 15,310,022 8,380,232
Transfers
between sub- 88,618,608 138,179,18 27,187,801
accounts and the 1 (87,240,272
)
fixed account, net
Transfers
for contract
benefits and (19,664,847 (12,065,908 (5,076,410)
terminations ) ) (5,160,163)
Other transfers
(to) from
Fidelity Invest-
ments Life (325,787) (319,611) (58,320)
Insurance
Co., net (100,463)
Net increase
(decrease) in
net assets 134,252,83 170,902,42 37,363,093
from contract 6 1 (84,120,666
transactions )
Retained in
(returned from)
Variable (385,048) 338,618 (91,969)
Annuity
Account I, net (48,579)
Total increase
(decrease) in 237,277,11 312,285,74 62,808,560
net assets 7 9 (69,018,132
)
Net assets at
beginning 716,086,80 403,801,05 182,902,59
of period 2 3 3 251,920,72
5
Net assets at end
of period $ 953,363,9 $ 716,086,8 $ 245,711,1 $ 182,902,5
19 02 53 93
VIP II -
INVESTMENT VIP II - VIP II -
GRADE BOND ASSET MANAGER INDEX 500
12/31/96 12/31/95 12/31/96 12/31/95 12/31/95
12/31/96
INCOME:
Dividends $ 3,861,311 $ 1,682,779 $ 47,469,96 $ 17,964,09 $ 5,677,684 $ 502,158
3 3
EXPENSES:
Mortality,
expense risk
and adminis- 565,912 7,112,472 7,872,594 2,166,085 599,028
trative charges 785,033
Net investment 1,116,867 40,357,491 10,091,499 3,511,599 (96,870)
income (loss) 3,076,278
Realized gain 888,717 681,765 20,343,996 35,055,886 4,975,965 1,070,836
Unrealized
appreciation
(depreciation) 6,589,640 27,445,480 68,350,367 33,991,964 15,941,637
during the year (2,329,345)
Net increase
in net assets
from operations 1,635,650 8,388,272 88,146,967 113,497,75 42,479,528 16,915,603
2
Payments
received from
contract owners 4,922,193 3,797,513 13,647,683 14,616,755 33,319,804 9,671,827
Transfers
between sub- 12,837,639 (114,227,0 (264,298,1 167,661,29 67,965,310
accounts and the 37) 70) 1
9,167,153
fixed account, net
Transfers
for contract
benefits and (2,319,156) (25,764,39 (26,861,42 (3,781,296) (1,614,181)
terminations (2,141,175) 1) 4)
Other transfers
(to) from
Fidelity Invest-
ments Life (48,775) (237,492) (582,886) (64,159) (147,556)
Insurance
Co., net 56,907
Net increase
(decrease) in
net assets 14,267,221 (126,581,2 (277,125,7 197,135,64 75,875,400
from contract 37) 25) 0
transactions 12,005,078
Retained in
(returned from)
Variable 14,585 (616,502) (63,314) (30,838) 108,453
Annuity
Account I, net (109,244)
Total increase
(decrease) in 22,670,078 (39,050,77 (163,691,2 239,584,33 92,899,456
net assets 13,531,484 2) 87) 0
Net assets at
beginning 47,037,150 741,051,92 904,743,21 117,640,20 24,740,745
of period 69,707,228 5 2 1
Net assets at end
of period $ 83,238,71 $ 69,707,22 $ 702,001,1 $ 741,051,9 $ 357,224,5 $ 117,640,2
2 8 53 25 31 01
VIP II -
ASSET MANAGER: VIP II -
GROWTH CONTRAFUND TOTAL
12/31/96 12/31/95* 12/31/96 12/31/95* 12/31/95
12/31/96
INCOME:
Dividends $ 9,328,581 $ 2,142,569 $ 4,625,874 $ 5,839,546 $ 223,044,8 $ 115,162,9
68 57
EXPENSES:
Mortality,
expense risk
and adminis- 1,063,876 285,667 6,890,563 2,454,097 48,920,926 33,423,365
trative charges
Net investment 8,264,705 1,856,902 (2,264,689) 3,385,449 174,123,94 81,739,592
income (loss) 2
Realized gain 673,453 327,488 8,702,452 1,396,988 124,417,36 71,164,384
6
Unrealized
appreciation
(depreciation) 9,972,956 3,213,726 123,250,95 57,102,130 313,495,17 506,182,46
during the year 6 6 3
Net increase
in net assets
from operations 18,911,114 5,398,116 129,688,71 61,884,567 612,036,48 659,086,43
9 4 9
Payments
received from
contract owners 15,662,363 7,219,229 81,653,439 66,578,676 1,033,537, 814,858,12
762 1
Transfers
between sub- 101,765,22 38,869,985 248,553,82 331,463,99 4,613,143 (7,774,589)
accounts and the 4 3 6
fixed account, net
Transfers
for contract
benefits and (2,189,943) (418,914) (10,123,89 (2,955,853) (135,786,6 (96,351,150
terminations 9) 00) )
Other transfers
(to) from
Fidelity Invest-
ments Life (38,727) (6,713) (261,226) (51,336) (1,438,335) (2,111,826)
Insurance
Co., net
Net increase
(decrease) in
net assets 115,198,91 45,663,587 319,822,13 395,035,48 900,925,97 708,620,55
from contract 7 7 3 0 6
transactions
Retained in
(returned from)
Variable 4,437 45,436 (180,555) 385,817 (2,536,869) 1,539,692
Annuity
Account I, net
Total increase
(decrease) in 134,114,46 51,107,139 449,330,30 457,305,86 1,510,425, 1,369,246,6
net assets 8 1 7 585 87
Net assets at
beginning 51,107,139 0 457,305,86 0 4,072,751, 2,703,505,0
of period 7 785 98
Net assets at end
of period $ 185,221,6 $ 51,107,13 $ 906,636,1 $ 457,305,8 $5,583,177 $ 4,072,751,
07 9 68 67 ,370 785
</TABLE>
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1995.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1996 and 1995
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
1. ORGANIZATION.
Fidelity Investments Variable Annuity Account I (the Account), a unit
investment trust registered under the Investment Company Act of 1940 as
amended, was established by Fidelity Investments Life Insurance Company
(FILI) on July 22, 1987 and exists in accordance with the regulations of
the Utah Insurance Department. The Account is a funding vehicle for
individual Fidelity Retirement Reserves and Fidelity Income Advantage
variable annuity contracts. FILI is a wholly-owned subsidiary of FMR Corp.
Beginning in 1995, FILI added two new subaccounts to the Account; Asset
Manager: Growth and Contrafund.
2. SIGNIFICANT ACCOUNTING POLICIES.
Investments are made in the portfolios of the Variable Insurance Products
Fund and the Variable Insurance Products Fund II and are valued at the
reported net asset values of such portfolios. Transactions are recorded on
the trade date. Income from dividends is recorded on the ex-dividend date.
Realized gains and losses on the sales of investments are computed on the
basis of the identified cost of the investment sold.
In addition to the Account, a contractholder may also allocate funds to the
Fixed Account, which is part of FILI's general account. Because of
exemptive and exclusionary provisions, interests in the Fixed Account have
not been registered under the Securities Act of 1933 and FILI's general
account has not been registered as an investment company under the
Investment Company Act of 1940.
Annuity reserves are computed for contracts in the income stage according
to the 1983 Individual Annuitant Mortality Table. The assumed investment
return is 3.5% unless the annuitant elects otherwise, in which case the
rate may vary from 3.5% to 7%, as regulated by the laws of the respective
states. The mortality risk is fully borne by FILI and may result in
additional amounts being transferred into the Account by FILI.
The operations of the Account are included in the federal income tax return
of FILI, which is taxed as a Life Insurance Company under the provisions of
the Internal Revenue Code (the Code).
The preparation of the statement of assets and liabilities and the
statements of operations and changes in net assets in accordance with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of liabilities
at the date of the financial statements and the reported amounts of income
and expense during the reporting period. Actual results could differ from
those estimates.
Certain amounts in the financial statements for 1995 have been reclassified
to correspond to the 1996 presentation.
3. EXPENSES.
FILI deducts a daily charge from the net assets of the Account (equivalent
to an effective annual rate of 1% of net assets) for administrative
expenses and for the assumption of mortality and expense risks. FILI also
deducts an annual maintenance charge of $30 from the Fidelity Retirement
Reserves contract value. The maintenance charge is waived on certain
contracts.
Under the current provisions of the Code, FILI does not expect to incur
federal income taxes on the earnings of the Account to the extent the
earnings are credited under the contracts. FILI incurs federal income taxes
on the difference between the financial statement carrying value of
reserves for contracts in the income stage and those reserves held for
federal income tax purposes. The tax effect of this temporary difference is
expected to be recovered by FILI. As such, no charge is being made
currently to the Account for federal income taxes. FILI will review
periodically the status of such decision based on changes in the tax law.
Such a charge may be made in future years for any federal income taxes that
would be attributable to the contracts.
4. AFFILIATED COMPANY TRANSACTIONS.
The contracts are distributed through Fidelity Brokerage Services, Inc.
(FBSI) and Fidelity Insurance Agency, Inc. (FIA), both of which are
affiliated with FMR Corp. FBSI and FIA are the distributors and FBSI is the
principal underwriter of the contracts. Fidelity Management & Research
Company, an affiliate of FMR Corp., acts as investment advisor to each
portfolio. Fidelity Investments Institutional Operations Co., an affiliate
of FMR Corp., is the transfer and shareholder servicing agent for the
portfolios.
5. PURCHASES AND SALES OF INVESTMENTS.
The following table shows aggregate cost of shares purchased and proceeds
from sales of each subaccount for the year ended December 31, 1996:
PURCHASES SALES
Money Market $ $
390,849,861 263,518,979
High Income 114,872,935 46,392,168
Equity-Income 206,042,181 116,336,110
Growth 262,760,096 85,379,737
Overseas 73,653,371 33,631,624
Investment Grade 36,182,001 21,209,887
Asset Manager 49,130,239 135,970,488
Index 500 216,167,690 15,551,289
Asset Manager: 127,250,459 3,782,400
Growth
Contrafund 344,642,466 27,265,571
6. UNIT VALUES.
A summary of changes in accumulation unit values and accumulation units
outstanding for variable annuity contracts at December 31, 1996 and 1995
are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PAYMENTS
BEGINNING RECEIVED TRANSFERS CONTRACT
BALANCE FROM CONTRACT BETWEEN TERMINATION
OWNERS SUBACCOUNTS, S
NET
UNITS
JANUARY 1, 1996 TO DECEMBER 31,
1996
Money Market Subaccount 26,268,846 42,913,398 (38,375,363) 2,586,683
High Income Subaccount 7,797,315 816,399 1,649,890 (406,652)
Equity-Income Subaccount 41,937,122 2,359,548 324,284 (1,547,837)
Growth Subaccount 23,019,869 1,987,476 2,629,901 (864,978)
Overseas Subaccount 9,560,376 770,514 1,400,639 (311,673)
Investment Grade Subaccount 3,993,107 291,738 528,603 (198,064)
Asset Manager Subaccount 39,821,641 708,287 (6,035,625) (1,431,676)
Index 500 Subaccount 7,333,800 1,943,169 9,613,725 (729,850)
Asset Manager: Growth 4,035,434 1,168,481 7,592,101 (534,078)
Subaccount
Contrafund Subaccount 32,421,946 5,482,352 16,672,452 (1,566,501)
JANUARY 1, 1995 TO DECEMBER 31,
1995
Money Market Subaccount 24,546,739 38,644,291 (35,319,303) (1,602,881)
High Income Subaccount 5,106,950 605,925 2,334,094 (249,654)
Equity-Income Subaccount 30,415,281 2,381,915 10,482,774 (1,342,848)
Growth Subaccount 17,470,386 1,561,974 4,557,411 (569,902)
Overseas Subaccount 14,336,196 467,953 (4,944,962) (298,811)
Investment Grade Subaccount 3,151,087 239,183 796,388 (193,551)
Asset Manager Subaccount 56,621,559 875,715 (15,993,891) (1,681,742)
Index 500 Subaccount 2,102,667 687,171 4,837,242 (293,280)
Asset Manager: Growth 0 646,949 3,573,788 (185,303)
Subaccount*
Contrafund Subaccount* 0 5,345,476 27,832,893 (756,423)
ENDING BALANCE
UNITS UNIT VALUE DOLLARS
JANUARY 1, 1996 TO DECEMBER 31,
1996
Money Market Subaccount 33,393,564 $15.30 $ 510,850,998
High Income Subaccount 9,856,952 $24.89 245,332,651
Equity-Income Subaccount 43,073,117 $31.05 1,337,348,204
Growth Subaccount 26,772,269 $34.97 936,189,066
Overseas Subaccount 11,419,855 $21.29 243,142,393
Investment Grade Subaccount 4,615,384 $17.36 80,112,903
Asset Manager Subaccount 33,062,627 $20.75 686,200,145
Index 500 Subaccount 18,160,844 $18.89 343,086,654
Asset Manager: Growth 12,261,937 $14.49 177,691,548
Subaccount
Contrafund Subaccount 53,010,249 $16.65 882,817,550
$ 5,442,772,11
2
JANUARY 1, 1995 TO DECEMBER 31,
1995
Money Market Subaccount 26,268,846 $14.66 $ 385,129,503
High Income Subaccount 7,797,315 $22.05 171,920,260
Equity-Income Subaccount 41,937,122 $27.44 1,150,938,872
Growth Subaccount 23,019,869 $30.80 708,919,066
Overseas Subaccount 9,560,376 $19.00 181,618,833
Investment Grade Subaccount 3,993,107 $16.99 67,854,942
Asset Manager Subaccount 39,821,641 $18.29 728,500,356
Index 500 Subaccount 7,333,800 $15.54 113,950,091
Asset Manager: Growth 4,035,434 $12.21 49,254,936
Subaccount*
Contrafund Subaccount* 32,421,946 $13.87 449,633,817
$ 4,007,720,67
6
</TABLE>
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS)
THROUGH DECEMBER 31, 1995.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Contract Owners of Fidelity Investments
Variable Annuity Account I:
We have audited the accompanying statement of assets and liabilities of
Fidelity Investments Variable Annuity Account I (comprised of Money Market
Subaccount, High Income Subaccount, Equity-Income Subaccount, Growth
Subaccount, Overseas Subaccount, Investment Grade Bond Subaccount, Asset
Manager Subaccount, Index 500 Subaccount, Asset Manager: Growth Subaccount
and Contrafund Subaccount) of Fidelity Investments Life Insurance Company
as of December 31, 1996, and the related statements of operations and
changes in net assets for each of the periods indicated therein. These
financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the aforementioned
subaccounts comprising Fidelity Investments Variable Annuity Account I of
Fidelity Investments Life Insurance Company as of December 31, 1996, and
the results of their operations and the changes in their net assets for
each of the periods indicated therein, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
January 29, 1997
(registered trademark)
America's largest privately-held investment management organization.
Fidelity Retirement Reserves (policy form FVA-88200), Fidelity Variable
Annuity and Fidelity Income Advantage (policy form FVIA-92100) are issued
by Fidelity Investments Life Insurance Company.
Fidelity Brokerage Services, Inc., member NYSE, SIPC, Fidelity Insurance
Agency, Inc. and Fidelity Investments Insurance
Agency of Texas, Inc. are the distributors.
82 Devonshire Street, Boston, MA 02109
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