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Fidelity Investments® Announces New Fund Options for Fidelity Personal Retirement Annuity®
New Funds Broaden Investment Choice, Increase Opportunities for Tax-Efficiency within One of the Industry’s Lowest Priced Deferred Variable AnnuitiesBOSTON – Fidelity Investments®, the leader in helping Americans save for retirement1, today announced the addition of new investment options for purchase within its Fidelity Personal Retirement Annuity®2. The four new funds, available now to all investors, include: the BlackRock Global Allocation V.I. Fund, Franklin U.S. Government Fund, Templeton Global Bond Securities Fund, and PIMCO VIT CommodityRealReturn® Strategy Portfolio.
The Fidelity Personal Retirement Annuity is a low-cost, tax-efficient3 retirement savings product that offers a broad selection of investment options from Fidelity and other reputable providers. A key benefit of the product is tax-deferred savings, which can complement an investor’s retirement savings in 401(k)s and individual retirement accounts (IRA). With an annual annuity cost of 25 basis points (bps) for all new contracts with an initial purchase payment below $1 million, the product is one of the lowest priced deferred variable annuities in the industry4. Unlike most variable annuities, it is also sold without a sales charge or a surrender period. (Note: The product does not have a guaranteed minimum death benefit.)
“Fidelity research shows that working American households may experience a potential income drop of 28 percent in retirement5,” said Jeffrey K. Cimini, president of Fidelity Investments Life Insurance Company. “To help take control of their personal economy and avoid a potential income shortfall in retirement, investors should consider increasing their savings and using tax-deferred savings vehicles, such as the Fidelity Personal Retirement Annuity -- especially if they do not have a workplace plan and/or have maxed out other savings vehicles such as 401(k)s and IRAs.”
To help investors further diversify their assets based on their investment style, the new investment options offer a variety of investment objectives and strategies:
• BlackRock Global Allocation V.I. Fund – Managed by the team of Dennis Stattman, Dan Chamby and Aldo Roldan, Ph.D., the fund seeks to provide high total return through a fully managed investment policy using U.S. and foreign equity, debt and money market instruments, the combination of which will vary from time to time with respect to types of securities and markets in response to changing market and economic trends.
• Franklin U.S. Government Fund – Managed by Paul Varunok and Patrick Klein, Ph.D., the fund’s investment goal is income, and it normally invests at least 80 percent of its net assets in U.S. government securities. It generally invests primarily in fixed and variable rate mortgage-backed securities, a substantial amount of which is in securities issued by the Government National Mortgage Association (Ginnie Mae).
• Templeton Global Bond Securities Fund – Managed by Michael Hasenstab, Ph.D. and Sonal Desai, Ph.D., the funds seek high current income, consistent with preservation of capital, with capital appreciation as a secondary consideration. The fund normally invests at least 80 percent of its net assets in bonds, which include debt securities of any maturity, and at least 40 percent of its net assets in foreign securities. The fund also may invest a portion of its total assets in bonds rated below investment grade and invests a significant portion of its assets in emerging markets.
• PIMCO VIT CommodityRealReturn Strategy Portfolio – Managed by Mihir Worah, the CommodityRealReturn Strategy Portfolio is an actively managed portfolio that provides investors commodities exposure across various sectors including energy, industrial and precious metals, livestock and agriculture. The portfolio manages the exposure to commodity futures and collateralizes those positions with a portfolio of intermediate duration Treasury Inflation-Protection Securities. The Portfolio’s benchmark is the Dow Jones-UBS Commodity Total Return Index.
The four new investment options increase the total number of investment options available through the Fidelity Personal Retirement Annuity to 59. For additional guidance on annuity investing and more information about the Fidelity Personal Retirement Annuity, investors can call 800-544-3274, visit one of Fidelity’s 171 investor centers across the United States, or visit: www.fidelity.com/fpra or www.fidelity.com/annuities. Advisors can also call 800-910-7899 to speak directly with a Fidelity representative, or visit: advisor.fidelity.com.
About the Fidelity Personal Retirement Annuity
Launched in 2005, the Fidelity Personal Retirement Annuity offers investors nearly 60 investment options, including many 4- and 5-star Morningstar-rated funds6 and single fund solutions. It is sold directly to the consumer and, unlike many other annuities, contains no surrender charges. Because the product is directly sold with no loadiii, it can also fit well in a fee-based advisor sales model. Additional product benefits include:
• Tax deferred growth potential
• No IRS contribution limits
• Flexible withdrawal options7
• No mandatory withdrawals at age 70½
• Automatic rebalancing and dollar cost averaging8
About Fidelity Investments & Fidelity Investments Life Insurance Company (FILI)
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.7 trillion, including managed assets of $1.6 trillion, as of March 31, 2012. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.
Established in 1987, Fidelity Investments Life Insurance Company (FILI), and for New York residents, Empire Fidelity Investments Life Insurance Company®, New York, N.Y., develop and market their own insurance products, in addition to offering access to a number of insurance products from other from well-known carriers.9 FILI currently holds an A+ (Superior) from AM Best and an A+ (Strong) rating from Standard & Poor’s10.
Before investing, consider the investment objectives, risks, charges and expenses of the variable annuity and its investment options. Call or write to Fidelity or visit Fidelity.com for a free prospectus and, if available, summary prospectus containing this information. Read it carefully.