The new additions include:
- VIP Consumer Industries Portfolio,
- VIP Cyclical Industries Portfolio,
- VIP Financial Services Portfolio,
- VIP Health Care Portfolio,
- VIP Natural Resources Portfolio,
- VIP Technology Portfolio, and
- VIP Telecommunications & Utilities Growth Portfolio
The addition of the sector funds brings the total number of investment choices in FILI annuities to 35.
In conjunction with FILI’s sector fund offerings, Fidelity has developed a new investing methodology that assists annuity investors in maintaining a diversified portfolio that includes sector funds.
Since these funds focus more narrowly on specific industry sectors, and may be subject to more short-term volatility than funds that spread their investments across sectors, they tend to be more appropriate for experienced investors who are actively involved in managing their investments and who have a higher risk tolerance.
The methodology provides moderate to aggressive annuity owners with asset allocation strategies that could supplement or replace their equity mix with sector funds.