Blu Giant, LLC

N-CSR 1 fvitncsr.htm N-CSR Blu Giant, LLC

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 811-22865

Forethought Variable Insurance Trust

(Exact name of registrant as specified in charter)

17605 Wright Street, Omaha, Nebraska 68130

(Address of principal executive offices) (Zip code)

James Ash, Gemini Fund Services, LLC.

80 Arkay Drive Suite 110, Hauppauge, NY 11788

(Name and address of agent for service)

Registrant's telephone number, including area code: 631-470-2619

Date of fiscal year end: 12/31

Date of reporting period: 12/31/15

Item 1. Reports to Stockholders.

Annual Report

December 31, 2015

FVIT Portfolios

FVIT American Funds® Managed Risk Portfolio

FVIT Balanced Managed Risk Portfolio

FVIT BlackRock Global Allocation Managed Risk Portfolio

FVIT Franklin Dividend and Income Managed Risk Portfolio

FVIT Growth Managed Risk Portfolio

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio

FVIT Moderate Growth Managed Risk Portfolio

FVIT PIMCO Tactical Allocation Portfolio

FVIT Select Advisor Managed Risk Portfolio

FVIT Wellington Research Managed Risk Portfolio

(formerly FVIT WMC Research Managed Risk Portfolio)

Class II shares

Each a series of the Forethought Variable Insurance Trust

Distributed by Northern Lights Distributors, LLC
Member FINRA

Dear Shareholders/Contract Owners:

January 21, 2016

Thank you for investing in the FVIT Portfolios. We are pleased to present our annual shareholder letter which highlights your fund’s performance and other pertinent information for the year ended December 31, 2015.

A year ago at this time we wrote that we expected volatility in 2015 to remain higher than it had been in recent years due to a combination of several factors: (a) valuation levels at the higher end of their historic range, (b) diverging monetary policies of global central banks, (c) global growth concerns, and (d) adjustments to lower energy prices. These issues significantly impacted financial markets in 2015; the U.S. began to tighten in December while the European Central Bank, Bank of Japan, and People’s Bank of China remained in quantitative easing mode. Global growth concerns and significant foreign currency moves sparked reductions in GDP forecasts globally, putting pressure on company earnings. The presence of higher levels of volatility is a good reminder of the benefits of portfolio diversification, particularly in a year where month-to-month returns by region and asset class were highly variable.

These aforementioned issues contributed to slower than expected GDP growth in the U.S. in 2015. That said, unemployment continued to improve, which led to modest wage pressure toward the end of the year. Overall, while U.S. economic data was somewhat weaker than expected in 2015, the improvement was sufficient for the Federal Reserve to raise interest rates for the first time since 2006.

Domestic equity returns were mixed in 2015. The S&P 500 eked out a positive return of 1.38%, however mid and small capitalization stocks, as measured by the S&P MidCap 400 and Russell 2000, turned in modestly negative returns of -2.18% and -4.41% respectively for the year. International equity markets, like U.S. domestic indices, were mixed but given the substantial strengthening of the U.S. dollar (U.S. Dollar Index rose 9.3% in 2015), the disparity between local currency and USD returns in foreign equity markets is worth noting. The EuroStoxx 50 returned positive 6.42% in Euro terms, however lost 4.47% in USD terms. The FTSE 100 lost 1.32% in British Pound terms, but 6.7% in USD terms. The USD/Yen exchange rate did not move as significantly, hence the Nikkei 225 returns were comparable in Yen and USD terms. Emerging markets were also affected by the significant strengthening of the USD, as well as global growth concerns (most notably in China), losing -14.9% in 2015, as measured by the MSCI Emerging Markets.

(BAR CHART)

Domestic fixed income markets had mixed returns during the period, with investment grade outperforming high yield as investors grew concerned about the Energy sector of high yield as oil prices plummeted throughout 2015. OPEC’s decision to maintain production and remove formal output targets, together with lower demand for commodities in general from China and Europe, resulted in a 32.9% decline in the S&P GSCI in 2015.

As we look to 2016, we expect many of the same factors that influenced returns in 2015 to be prevalent again: diverging monetary policies, continued global growth concerns (particularly in China), and the impact of significantly lower energy prices and a stronger U.S. dollar. At the time of writing, the S&P 500 is in a correction (down 10% or more) while most major global equity indices are in, or near, a bear market (down 20% or more) from their 52-week highs. While valuations remain above long-term historical averages, the recent pullback in the equity markets has resulted in valuation multiples that are at, or below, the lows of 2014 and 2015. This may provide attractive relative valuation opportunities in 2016.

The following pages contain management’s discussion of recent Portfolio performance.

Sincerely,


Eric D. Todd, CFA	Cameron Jeffreys, CFA
President and Co-Portfolio Manager	Vice President, Co-Portfolio Manager
Forethought Investment Advisors, LLC	Forethought Investment Advisors, LLC

	Portfolio	Benchmark
	FVIT American Funds^® Managed Risk Portfolio	S&P Target Risk Moderate Index
	FVIT Balanced Managed Risk Portfolio	S&P Target Risk Conservative Index
	FVIT BlackRock Global Allocation Managed Risk Portfolio	S&P Target Risk Moderate Index
	FVIT Franklin Dividend and Income Managed Risk Portfolio	S&P Target Risk Moderate Index
	FVIT Goldman Sachs Dynamic Trends Allocation Portfolio	S&P Target Risk Conservative Index
	FVIT Growth Managed Risk Portfolio	S&P Target Risk Growth Index
	FVIT Moderate Growth Managed Risk Portfolio	S&P Target Risk Moderate Index
	FVIT PIMCO Tactical Allocation Portfolio	S&P Target Risk Moderate Index
	FVIT Select Advisor Managed Risk Portfolio	S&P Target Risk Moderate Index
	FVIT Wellington Research Managed Risk Portfolio (formerly, FVIT	S&P Target Risk Moderate Index
	WMC Research Managed Risk Portfolio)

The indices shown are for informational purposes only and are not reflective of any investment. As it is not possible to invest in the indices, the data shown does not reflect or compare features of an actual investment, such as its objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, or tax features. Past performance is no guarantee of future results.

This report contains the current opinions of Forethought Investment Advisors, LLC and/or sub-advisers at the time of its publication and should not be considered to be investment advice or a recommendation of any particular security, strategy or investment product. Such opinions are subject to change without notice and securities described herein may no longer be included in, or may at any time be removed from, a Portfolio’s portfolio. This report is distributed for informational purposes only. Information contained herein has been obtained from sources believed reliable, but not guaranteed.

Index Definitions:

S&P Target Risk Conservative Index emphasizes exposure to fixed income in order to produce a consistent income stream and avoid excessive volatility of return

S&P Target Risk Moderate Index offers significant exposure to fixed income, while also providing increased opportunity for capital growth through equities.

S&P Target Risk Growth Index increases exposure to equities, while also providing limited fixed income exposure to diversify risk.

Barclays US Aggregate Bond Index (“Barclays US Agg Bond”). An index weighted according to market capitalization and includes, among other categories, Treasury securities, mortgage backed securities, government agency bonds and corporate bonds. To be included in the index, bonds must be rated investment grade by Moody’s and Standard and Poor’s.

BofA ML High Yield Cash Pay MV USI Index (“BofA ML US High Yield”). An index that tracks the performance of US dollar denominated, below investment grade corporate debt, currently in a coupon paying period, which is publically issued in the US domestic market.

Euro Stoxx 50 Index. (“Euro Stoxx 50”) An index of 50 blue-chip stocks representing supersector leaders from 12 Eurozone countries.

FTSE 100 Index. (“FTSE 100”) A share index of the 100 companies listed on the London Stock Exchange with the highest market capitalization. The index is maintained by the FTSE Group, a subsidiary of the London Stock Exchange Group. The index is unmanaged and not available for direct investment.

MSCI EAFE Total Return Index (“MSCI EAFE”). An index created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australasia and the Far East.

MSCI Emerging Markets Total Return Index (“MSCI Emerging Markets”). An index created by Morgan Stanley Capital International (MSCI) that is designed to measure equity market performance in global emerging markets. The index is unmanaged and not available for direct investment. The Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 21 emerging economies: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.

Nikkei 225 Index. (“Nikkei 225”) A price-weighted average of the 225 top-rated Japanese companies listed in the First Section of the Tokyo Stock Exchange.

Russell 2000 Total Return Index (“Russell 2000”). An index measuring the performance approximately 2,000 small-cap companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States.

S&P Midcap 400 Total Return Index (“S&P MidCap 400”). A capitalization-weighted index which measures the performance of the mid-range sector of the U.S. stock market.

S&P 500 Total Return Index (“S&P 500”). A market capitalization weighted price index composed of 500 widely held US common stocks. Frequently used as a measure of US stock market performance.

S&P GSCI Total Return Index (“S&P GSCI”). A broad based, production weighted index meant to be representative of the global commodity market beta. The S&P Goldman Sachs Commodity Index (GSCI) consists of 24 commodity futures on physical commodities across five sectors; energy, agriculture, livestock, industrial metals, and precious metals.

U.S. Dollar Index indicates the general international value of the U.S. Dollar by averaging the exchange rates between the U.S. Dollar and major world currencies.

Table of Contents

■	FVIT Portfolio Reviews	5-31

■	Financial Statements:

	Portfolio of Investments	32-67

	Statements of Assets and Liabilities	68-71

	Statements of Operations	72-75

	Statements of Changes in Net Assets	76-80

■	Financial Highlights	83-92

■	Notes to Financial Statements	93-114

■	Audit Opinion	115-116

■	Expense Examples	117-118

■	Supplemental Information	119-128

■	Proxy Voting Policy	132

■	Portfolio Holdings	132

FVIT American Funds^® Managed Risk Portfolio

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the period?

During 2015, the Portfolio underperformed its reference benchmark, the S&P Target Risk Moderate Index. The Portfolio posted a return of -1.84% compared to a benchmark return of -1.06%, a negative difference of 78 basis points. Notwithstanding the positive contribution that the factors and allocation decisions discussed below had on Portfolio performance - resulting in the Portfolio outperforming the benchmark on a gross of fees basis -it was not sufficient to offset the effect of the Portfolio’s fees on relative performance. The following discussion of relative performance pertains to this benchmark.

What factors and allocation decisions influenced the Portfolio’s performance?

An overweight to U.S. equities versus the benchmark contributed positively to performance in 2015. International and emerging market equity returns were negative in U.S. dollar (USD) terms in 2015, so while the Portfolio’s underweight in these two areas positively impacted relative performance versus the benchmark, the allocation to international equity detracted from absolute performance. Furthermore, the underweight to international equity was reduced during the first half of the year, which negatively impacted performance during the second half of the year as international equity weakened relative to U.S. large capitalization equity.

Within fixed income, the American Funds Insurance Series Bond Fund contributed positively to performance versus the fixed income portion of the benchmark.

In 2015, volatility exhibited several spikes followed by rapid reversals, an environment that may require greater levels of hedging to meet the Portfolio’s investment objective of managing volatility and downside risk. During the third quarter as volatility increased, the managed risk strategy materially reduced net equity exposure of the Portfolio. As a result, the managed risk strategy was a meaningful benefit in the quarter as equity markets declined significantly during this period. Entering the fourth quarter, while volatility remained high, equity markets rallied significantly. For example, the S&P 500 rose 8.4% in October, a monthly return the magnitude of which has only occurred 2.7% of the time since 1950. While heightened levels of volatility are typically associated with market declines, October was an illustration that markets can rally, albeit less often, in such circumstances. While the managed risk strategy reduced the overall performance of the Portfolio in the fourth quarter and in 2015 as a whole, it performed as designed, managing the downside risk to the Portfolio during periods of heightened volatility.

How was the Portfolio positioned at period end?

At period end, the Portfolio remained overweight equities relative to the benchmark. Within equities, the Portfolio continued to be overweight U.S. large caps, modestly underweight international and only had nominal exposure to emerging market equities versus the benchmark.

FVIT American Funds^® Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The equity portion of the Portfolio was positioned, at the margin, more defensively (i.e., overweight U.S. large caps) owing to marginally positive global growth rates driven in large part by a slowdown in growth in China, and valuations that are at the higher end of their historic range. The U.S. economy continues to be amongst the healthiest of developed markets and is less dependent on China’s growth than most developed international and emerging market economies. Additionally, international economies are currently growing more slowly, and are therefore at greater risk of a recession than the U.S. That said, over the medium term, lower commodity prices, most notably in energy, the potential for greater margin expansion than U.S. companies due to a rising U.S. dollar and already high margins, and continued monetary stimulus programs may serve as support for potentially higher returns in international equities. As a result, we are keeping a close eye on these factors for potential increased opportunities outside the U.S.

The Portfolio remained underweight fixed income vis-à-vis the benchmark. Within fixed income, we continued to underweight high yield given its exposure to the decline in energy prices.

FVIT American Funds^®Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures^* for the periods ended December 31, 2015 as compared to its benchmark:

		Annualized
	One	Performance
	Year	Since Inception^**
FVIT American Funds® Managed Risk Portfolio
Class II	(1.84)%	3.03%
S&P Target Risk^®Moderate Index (Total Return)	(1.06)%	2.33%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 1.19% for Class II shares per the April 30, 2015 prospectus.

^**

Commencement of operations is October 31, 2013.

The S&P Target Risk® Moderate Index (Total Return) provides significant exposure to fixed income, while also providing increased opportunity for capital growth through equities.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Variable Insurance Trusts - Equity Funds		59.8	%
Variable Insurance Trusts - Debt Fund		29.9	%
Money Market Fund		5.5	%
Other Assets Less Liabilities - Net		4.8	%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015.

FVIT Balanced Managed Risk Portfolio

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the year?

During 2015, the Portfolio modestly underperformed its reference benchmark, the S&P Target Risk Conservative Index. The Portfolio posted a return of -1.10% compared to a benchmark return of -1.06%, a negative difference of 4 basis points. Notwithstanding the positive contribution that the factors and allocation decisions discussed below had on Portfolio performance - resulting in the Portfolio outperforming the benchmark on a gross of fees basis -it was not sufficient to offset the effect of the Portfolio’s fees on relative performance. The following discussion of relative performance pertains to this benchmark.

What factors and allocation decisions influenced the Portfolio’s performance?

An overweight to U.S. equities versus the benchmark contributed positively to performance in 2015. An overweight to U.S. large capitalization equities contributed positively during the year, while an overweight to U.S. mid and small capitalization equity were modest detractors to performance in 2015. International and emerging market equity returns were negative in U.S. dollar (USD) terms in 2015, so while the Portfolio’s underweight in these two areas positively impacted relative performance versus the benchmark, the allocation to international equity detracted from absolute performance. Furthermore, the reduction in the underweight to international equity in the first half of the year negatively impacted performance in the second half of the year when international equities weakened relative to U.S. large capitalization equities.

Within fixed income, being underweight intermediate and long duration investment grade credit risk contributed positively relative to the fixed income portion of the benchmark.

How was the Portfolio positioned at period end?

At period end, the Portfolio remained overweight equities relative to the benchmark. Within equities, the Portfolio continued to be overweight U.S. large caps, modestly overweight midcaps and small caps, modestly underweight international and had only nominal exposure to emerging market equities versus the benchmark.

FVIT Balanced Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio remained underweight fixed income vis-à-vis the benchmark. Within fixed income, we continued to underweight high yield given its exposure to the decline in energy prices.

FVIT Balanced Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures* for the periods ended December 31, 2015 as compared to its benchmark:

		Annualized
	One	Performance
	Year	Since Inception^**
FVIT Balanced Managed Risk Portfolio
Class II	(1.10)%	3.18%
S&P Target Risk^®Conservative Index (Total Return)	(1.06)%	1.79%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 1.04% for Class II shares per the April 30, 2015 prospectus.

Commencement of operations is October 31, 2013.

The S&P Target Risk^® Conservative Index (Total Return) emphasizes exposure to fixed income in order to produce a consistent income stream and avoid excessive volatility of returns.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Exchange Traded Equity Funds		45.4	%
Exchange Traded Debt Funds		47.9	%
Money Market Fund		2.6	%
Other Assets Less Liabilities - Net		4.1	%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015.

FVIT BlackRock Global Allocation Managed Risk Portfolio

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the year?

During 2015, the Portfolio underperformed its reference benchmark, the S&P Target Risk Moderate Index. The Portfolio posted a return of -3.44% compared to a benchmark return of -1.06%, a negative difference of 238 basis points. The following discussion of relative performance pertains to this benchmark.

What factors and allocation decisions influenced the Portfolio’s performance?

The Portfolio seeks to achieve its objective by investing under normal market conditions, at least 80% of its net assets, plus any borrowings for investment purposes, in the BlackRock Global Allocation V.I. Fund. The Portfolio’s other holdings include cash, a money market fund, and futures contracts. BlackRock Global Allocation V.I. Fund underperformed the S&P Target Risk Moderate Index during the period.

How was the Portfolio positioned at period end?

At period end, the Portfolio’s primary investment remained the BlackRock Global Allocation V.I. Fund.

FVIT BlackRock Global Allocation Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures* for the periods ended December 31, 2015 as compared to its benchmark:

		Annualized
	One	Performance
	Year	Since Inception^**
FVIT BlackRock Global Allocation Managed Risk Portfolio
Class II	(3.44)%	(0.29)%
S&P Target Risk^®Moderate Index (Total Return)	(1.06)%	2.33%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 1.25% for Class II shares per the April 30, 2015 prospectus.

^**

Commencement of operations is October 31, 2013.

The S&P Target Risk® Moderate Index (Total Return) provides significant exposure to fixed income, while also providing increased opportunity for capital growth through equities.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Variable Insurance Trusts - Asset Allocation Fund		95.0	%
Money Market Fund		0.2	%
Other Assets Less Liabilities - Net		4.8	%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015.

FVIT Franklin Dividend and Income Managed Risk Portfolio

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the year?

During 2015, the Portfolio underperformed its reference benchmark, the S&P Target Risk Moderate Index. The Portfolio posted a return of -7.09% compared to a benchmark return of -1.06%, a negative difference of 603 basis points.

What factors and allocation decisions influenced the Portfolio’s performance?

Dividend stocks underperformed the domestic and international equity developed markets in 2015, which is the primary driver of underperformance versus the benchmark.

The equity sleeve of this Portfolio is managed pursuant to a rising dividends strategy which seeks to invest in equity securities that have paid consistently rising dividends. Companies that have paid consistently rising dividends include those companies that currently pay dividends on their common stock and have maintained or increased their dividend rate during the last four consecutive years. The equity sleeve of the Portfolio seeks to invest in securities of companies that have: (1) consistently increased dividends in at least 8 out of the last 10 years and have not decreased dividends during that time; (2) increased dividends substantially (at least 100%) over the last 10 years; (3) reinvested earnings, paying out less than 65% of current earnings in dividends (except for utility companies); and (4) either long-term debt that is no more than 50% of total capitalization (except for utility companies) or senior debt that has been rated investment grade by at least one of the major bond rating organizations.

With respect to the equity portion of the Portfolio’s underperformance versus the S&P 500 (gross of fees), stock selection in industrials, consumer staples, and consumer discretionary, as well as an overweight to industrials detracted from performance. Specific equity positions that hurt performance were Wal-Mart, Praxair, and Pentair. Positive contributions to performance during the year were attributable to stock selection, underweighting the energy and financials sectors, and the equity sleeve’s cash position. As it relates to specific equity positions, shares in Roper Technologies, Nike, and McDonalds contributed positively to performance.

The Franklin Templeton Total Return Fund, the primary investment for the fixed income sleeve of the Portfolio, underperformed the fixed income portion of the benchmark during the period.

In 2015, volatility exhibited several spikes followed by rapid reversals, an environment that may require greater levels of hedging to meet the Portfolio’s investment objective of managing volatility and downside risk. Additionally, dividend stocks experienced a higher level of volatility during 2015 than one might normally expect relative to other equities. During the third quarter as volatility increased, the managed risk strategy materially reduced net equity exposure of the Portfolio. As a result, the managed risk strategy was a meaningful benefit in the quarter as equity markets declined significantly during this period. Entering the fourth quarter, while volatility remained high, equity markets rallied significantly. For example, the S&P 500 rose 8.4% in October, a monthly return the magnitude of which has only occurred 2.7% of the time since 1950. While heightened levels of volatility are typically associated with market declines, October was an illustration that markets can rally, albeit less often, in such circumstances. While the managed risk strategy reduced the overall performance of the Portfolio in the fourth quarter and in 2015 as a whole, it performed as designed, managing the downside risk to the Portfolio during periods of heightened volatility.

FVIT Franklin Dividend and Income Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

How was the Portfolio positioned at period end?

At period end, the Portfolio remained overweight equities relative to the benchmark. The largest sector concentrations for the equity sleeve of the Portfolio were industrials, healthcare, and consumer staples. From a company standpoint, the equity sleeve’s largest holdings were Roper Technologies Inc. (3.26%), Microsoft Corp. (2.59%), Honeywell International, Inc. (2.38%), and Medtronic PLC (2.34%). Positions in Qualcomm (0.47%), United Technologies (2.04%), and Pentair (1.69%) were reduced during 2015, while positions in IBM and California Resources were exited (Portfolio holdings are subject to change at any time and should not be considered investment advice).

The Portfolio remained underweight fixed income vis-à-vis the benchmark and the fixed income sleeve of the Portfolio was primarily invested in fixed income investment grade securities through the Franklin Templeton Total Return Fund.

FVIT Franklin Dividend and Income Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures* for the periods ended December 31, 2015 as compared to its benchmark:

		Annualized
	One	Performance
	Year	Since Inception^**
FVIT Franklin Dividend and Income Managed Risk Portfolio
Class II	(7.09)%	(1.07)%
S&P Target Risk® Moderate Index (Total Return)	(1.06)%	0.83%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 1.16% for Class II shares per the April 30, 2015 prospectus.

Commencement of operations is April 30, 2014.

The S&P Target Risk® Moderate Index (Total Return) provides significant exposure to fixed income, while also providing increased opportunity for capital growth through equities.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Common Stocks		71.9	%
Mutual Fund - Debt Fund		23.6	%
Money Market Fund		0.6	%
Other Assets Less Liabilities - Net		3.9	%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015.

Derivative exposure is included in “Other Assets Less Liabilities - Net”.

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the year?

The Portfolio’s inception date was April 30, 2015. For the 8 months ended December 31, 2015, the Portfolio underperformed its reference benchmark, the S&P Target Risk Conservative Index. The Portfolio posted a return of -5.17% compared to a benchmark return of -2.86%, a negative difference of 231 basis points. The following discussion of relative performance pertains to this benchmark.

What factors and allocation decisions influenced the Portfolio’s performance?

Using a momentum-based methodology to dynamically allocate across global asset classes, the Portfolio seeks to manage risk and enhance long-term returns in changing market environments. Momentum investing seeks growth of capital by gaining exposure to asset classes that have exhibited trends in price performance over selected time periods. During 2015, highly variable month-to-month asset class returns generally made trend-following less profitable.

Relative to the S&P Target Risk Conservative benchmark, the Portfolio’s greater allocation to equities detracted from returns. More specifically, the Portfolio’s exposure to global equities was the main detractor from Portfolio performance, particularly in the second half of 2015 as concerns escalated regarding China’s economic weakness. This was exacerbated by China’s surprise devaluation of its Renminbi in August 2015, sparking broader global growth worries. Geopolitical tensions - from Greece’s negotiations with its creditors, to disputes between Russia and the Ukraine - also contributed negatively to market confidence.

Of the Portfolio’s equity exposures, European and U.S. equity positions detracted most significantly. The Portfolio’s options holdings also detracted from Portfolio performance in 2015. This stemmed primarily from options on U.S. equity indices, specifically, written call options that detracted during the month of October as domestic markets rebounded. For example, the S&P 500 rose 8.4% in October, a monthly return the magnitude of which has only occurred 2.7% of the time since 1950. While heightened levels of volatility are typically associated with market declines, October was an illustration that markets can rally, albeit less often, in such circumstances. These written call options offset part of the Portfolio’s upside. The Portfolio’s options on international indices were largely flat in aggregate.

How was the Portfolio positioned at period end?

At the end of 2015, the Portfolio had approximately 35.0% of its assets invested in U.S. equities with an additional 21.3% in international equities. Furthermore, the Portfolio was allocated 4 0.0% to U.S. fixed income and 3.7% in cash. Going forward, we intend to position the Portfolio to provide exposure to price momentum from underlying asset classes, while dynamically managing the volatility, or risk, of the overall Portfolio. In general, the Portfolio seeks to maintain between 50% - 70% of its assets in developed equity investments and 30%-50% of its assets in U.S. fixed income investments. The Portfolio may make allocations at the higher-end of asset allocation ranges to those asset classes with strong momentum, and at the lower-end to those asset classes with weak momentum. The portfolio manager aims to reduce return volatility by employing a hedge overlay within the Portfolio. The overlay consists of using hedge instruments to reduce the downside risk of the Portfolio’s equity and fixed income investments. As of year-end, we maintained a hedge overlay across the Portfolio’s U.S., Japan, Europe and U.K. equity exposures.

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures* for the period ended December 31, 2015 as compared to its benchmark:

	Performance
	Since Inception^**
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio
Class II	(5.17)%
S&P Target Risk® Conservative Index (Total Return)	(2.86)%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 1.20% for Class II shares per the April 30, 2015 prospectus.

Commencement of operations is April 30, 2015.

The S&P Target Risk® Conservative Index (Total Return) provides significant exposure to fixed income in order to produce a consistent income stream and avoid excessive volatility of returns.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Exchange Traded Equity Funds		32.4	%
U.S Treasury Note		47.7	%
Purchased Options		0.3	%
Money Market Fund		29.4	%
Other Assets Less Liabilities - Net		(9.8	)%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015.

Derivative exposure is included in “Other Assets Less Liabilities - Net”.

FVIT Growth Managed Risk Portfolio

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the year?

During 2015, the Portfolio underperformed its reference benchmark, the S&P Target Risk Growth Index. The Portfolio posted a return of -5.23% compared to a benchmark return of -0.94%, a negative difference of 429 basis points. The following discussion of relative performance pertains to this benchmark.

What factors and allocation decisions influenced the Portfolio’s performance?

An overweight to U.S. equities versus the benchmark contributed positively to performance in 2015. An overweight to U.S. large capitalization equities contributed positively during the year, while an overweight to U.S. mid and small capitalization equity detracted from performance in 2015. International and emerging market equity returns were negative in U.S. dollar (USD) terms in 2015, so while the Portfolio’s underweight in these two areas positively impacted relative performance versus the benchmark, the allocation to international equity detracted from absolute performance. Furthermore, the reduction in the underweight to international equity in the first half of the year negatively impacted performance in the second half of the year when international equities weakened relative to U.S. large capitalization equities.

Within fixed income, being underweight intermediate and long duration investment grade credit risk contributed positively relative to the fixed income portion of the benchmark.

How was the Portfolio positioned at period end?

At period end, the Portfolio remained overweight equities relative to the benchmark. Within equities, the Portfolio continued to be overweight U.S. equities, mid cap and small cap equities, modestly underweight international equities and had only nominal exposure to emerging market equities versus the benchmark.

FVIT Growth Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The equity portion of the Portfolio, at the margin, was positioned more defensively (i.e., overweight U.S. large caps) owing to marginally positive global growth rates driven in large part by a slowdown in growth in China, and valuations that are at the higher end of their historic range. The U.S. economy continues to be amongst the healthiest of developed markets and is less dependent on China’s growth than most developed international and emerging market economies. Additionally, international economies are currently growing more slowly, and are therefore at greater risk of a recession than the U.S. That said, over the medium term, lower commodity prices, most notably in energy, the potential for greater margin expansion than U.S. companies due to a rising U.S. dollar and already high margins, and continued monetary stimulus programs may serve as support for potentially higher returns in international equities. As a result, we are keeping a close eye on these factors for potential increased opportunities outside the U.S.

The Portfolio remained underweight fixed income vis-à-vis the benchmark. Within fixed income, we continued to underweight high yield given its exposure to the decline in energy prices.

FVIT Growth Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures* for the periods ended December 31, 2015 as compared to its benchmark:

		Annualized
	One	Performance
	Year	Since Inception^**
FVIT Growth Managed Risk Portfolio
Class II	(5.23)%	(0.35)%
S&P Target Risk® Growth Index (Total Return)	(0.94)%	1.81%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 0.99% for Class II shares per the April 30, 2015 prospectus.

Commencement of operations is April 30, 2014.

The S&P Target Risk® Growth Index (Total Return) which offers increased exposure to equities, while also using some fixed income exposure to diversify risk.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Exchange Traded Debt Funds		14.5	%
Exchange Traded Equity Funds		79.3	%
Money Market Fund		2.0	%
Other Assets Less Liabilities - Net		4.2	%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015.

Derivative exposure is included in “Other Assets Less Liabilities - Net”.

FVIT Moderate Growth Managed Risk Portfolio

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the year?

During 2015, the Portfolio underperformed its reference benchmark, the S&P Target Risk Moderate Index. The Portfolio posted a return of -2.57% compared to a benchmark return of -1.06%, a negative difference of 151 basis points. The following discussion of relative performance pertains to this benchmark.

What factors and allocation decisions influenced the Portfolio’s performance?

An overweight to U.S. equities versus the benchmark contributed positively to performance in 2015. An overweight to U.S. large capitalization equities contributed positively during the year, while an overweight to U.S. mid and small capitalization equities detracted from performance in 2015. International and emerging market equity returns were negative in U.S. dollar (USD) terms in 2015, so while the Portfolio’s underweight in these two areas positively impacted relative performance versus the benchmark, the allocation to international equities detracted from absolute performance. Furthermore, the reduction in the underweight to international equities in the first half of the year negatively impacted performance in the second half of the year when international equities weakened relative to U.S. large capitalization equities.

Within fixed income, being underweight intermediate and long duration investment grade credit risk contributed positively relative to the fixed income portion of the benchmark.

How was the Portfolio positioned at period end?

At period end, the Portfolio remained overweight equities relative to the benchmark. Within equities, the Portfolio continued to be overweight U.S. equities, mid cap equities, and small cap equities, modestly underweight international equities and had only nominal exposure to emerging market equities versus the benchmark.

FVIT Moderate Growth Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The equity portion of the Portfolio, at the margin, more defensively (i.e., overweight U.S. large caps) owing to marginally positive global growth rates driven in large part by a slowdown in growth in China, and valuations that are at the higher end of their historic range. The U.S. economy continues to be amongst the healthiest of developed markets and is less dependent on China’s growth than most developed international and emerging market economies. Additionally, international economies are currently growing more slowly, and are therefore at greater risk of a recession than the U.S. That said, over the medium term, lower commodity prices, most notably in energy, the potential for greater margin expansion than U.S. companies due to a rising U.S. dollar and already high margins, and continued monetary stimulus programs may serve as support for potentially higher returns in international equities. As a result, we are keeping a close eye on these factors for potential increased opportunities outside the U.S.

The Portfolio remained underweight fixed income vis-à-vis the benchmark. Within fixed income, we continued to underweight high yield given its exposure to the decline in energy prices.

FVIT Moderate Growth Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures* for the periods ended December 31, 2015 as compared to its benchmark:

		Annualized
	One	Performance
	Year	Since Inception^**
FVIT Moderate Growth Managed Risk Portfolio
Class II	(2.57)%	1.37%
S&P Target Risk® Moderate Index (Total Return)	(1.06)%	0.83%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 0.99% for Class II shares per the April 30, 2015 prospectus.

Commencement of operations is April 30, 2014.

The S&P Target Risk® Moderate Index (Total Return) provides significant exposure to fixed income, while also providing increased opportunity for capital growth through equities.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Exchange Traded Debt Funds		33.7	%
Exchange Traded Equity Funds		59.6	%
Money Market Fund		2.6	%
Other Assets Less Liabilities - Net		4.1	%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015.

FVIT PIMCO Tactical Allocation Portfolio

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the year?

The Portfolio’s inception date was April 30, 2015. For the eight months ended December 31, 2015, the Portfolio underperformed its reference benchmark, the S&P Target Risk Moderate Index. The Portfolio posted a return of -4.72% compared to a benchmark return of -3.35%, a difference of negative 137 basis points. The following discussion of relative performance pertains to this benchmark.

What factors and allocation decisions influenced the Portfolio’s performance?

For most of the period between its inception and December 31, 2015, the Portfolio remained overweight equities relative to the benchmark. This drove most of the underperformance, as equities lagged in developed and emerging markets over the period. The Portfolio’s risk levels were reduced in August when the CBOE Volatility Index (VIX), a measure of implied volatility of the S&P 500, spiked to levels not seen since 2011. It remained below or at benchmark equity exposure until early October. Over the course of October, the Portfolio’s risk levels were increased to maximum equity exposure, which contributed to the Portfolio’s performance, as U.S. equities recorded their strongest month in four years. The Portfolio’s risk levels were reduced again in mid-December, as volatility increased due to falling crude oil prices, but finished the year near maximum equity exposure. In sum, tactical equity exposure detracted from performance, as the Portfolio shifted to a more defensive posture when volatility increased. This repositioning sought to protect the Portfolio in case of further downside, but ultimately prevented it from capturing as much upside when equities bounced back sharply. The Portfolio’s investment in S&P 500 put options, used to hedge against equity market shocks, was positive for performance as equities generally trended down over the period.

The Portfolio’s underweight duration exposure in fixed income contributed to performance during the period, as Treasury yields rose across the curve (with 10-year Treasury rates rising 25 basis points over the period). In addition, a tactical allocation to sovereign exposure in the Eurozone added to performance, as interest rates declined on the heels of accommodative European Central Bank policy. Sector and security selection, as well as an underweight to credit spread, added to performance, as index spreads widened. A tactical short to the Japanese Yen was positive for performance, as accommodative monetary policy continued to drive the currency lower versus the dollar. Exposure to Treasury Inflation-Protected Securities (TIPS) detracted from returns, as expectations for future inflation fell on the heels of declining oil prices. Exposure to non-agency mortgages added to performance, as the sector continued to benefit from the ongoing housing recovery.

How was the Portfolio positioned at period end?

At period end, the Portfolio remained overweight equities relative to the benchmark. Within equities, the Portfolio was overweight U.S. large cap, equal weight international developed, and underweight emerging markets. Within fixed income, the Portfolio remained underweight interest rate risk relative to the benchmark. The Portfolio continued to emphasize diversified sources of return, including positions in TIPS and agency mortgage-backed securities. Lastly, the Portfolio also held short Euro and Japanese Yen currency positions versus the U.S. dollar to benefit from divergent global monetary policies.

FVIT PIMCO Tactical Allocation Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures* for the period ended December 31, 2015 as compared to its benchmark:

	Performance
	Since Inception^**
FVIT PIMCO Tactical Allocation Portfolio
Class II	(4.72)%
S&P Target Risk® Moderate Index (Total Return)	(3.35)%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 1.20% for Class II shares per the April 30, 2015 prospectus.

Commencement of operations is April 30, 2015.

The S&P Target Risk® Moderate Index (Total Return) provides significant exposure to fixed income, while also providing increased opportunity for capital growth through equities.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Exchange Traded Equity Funds		29.6	%
U.S. Treasury Securities		21.8	%
Corporate Bonds		16.8	%
Mortgage Backed Securities		15.0	%
Collateralized Mortgage Obligations		7.5	%
Sovereign Debt		4.6	%
Asset Backed Securities		4.4	%
Mortgage Backed Securities		3.3	%
Purchased Options on indices		1.5	%
Purchased Options on futures		0.0	%
Short-Term Investments		9.0	%
Other Assets Less Liabilities - Net		(13.5	)%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015.

Derivative exposure is included in “Other Assets Less Liabilities - Net”.

FVIT Select Advisor Managed Risk Portfolio

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the year?

During 2015, the Portfolio underperformed its reference benchmark, the S&P Target Risk Moderate Index. The Portfolio posted a return of -2.81% compared to a benchmark return of -1.06%, a negative difference of 175 basis points. The following discussion of relative performance pertains to this benchmark.

What factors and allocation decisions influenced the Portfolio’s performance?

An overweight to U.S. equities versus the benchmark contributed positively to performance in 2015. Within equities, an overweight to U.S. large capitalization equities contributed positively during the year. More specifically, the decision to eliminate an allocation to the Invesco V.I. Core Equity Fund was a meaningful contributor to performance. An overweight to U.S. mid and small capitalization equities detracted slightly from performance in 2015. While international equities were negative in U.S. dollar (USD) terms in 2015, the Portfolio’s allocation to the MFS VIT II International Value Portfolio contributed positively to performance.

Within fixed income, the MFS Total Return Bond Fund contributed negatively to performance versus the fixed income portion of the benchmark and was a primary driver of the underperformance of the Portfolio relative to its benchmark.

How was the Portfolio positioned at period end?

At period end, the Portfolio remained overweight equities relative to the benchmark. Within equities, the Portfolio continued to be overweight U.S. equities, mid cap, and small cap equities, modestly underweight international and had only nominal exposure to emerging market equities versus the benchmark.

FVIT Select Advisor Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio remained underweight fixed income vis-à-vis the benchmark. Within fixed income, we continued to underweight high yield given its exposure to the decline in energy prices.

FVIT Select Advisor Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures* for the periods ended December 31, 2015 as compared to its benchmark:

		Annualized
	One	Performance
	Year	Since Inception^**
FVIT Select Advisor Managed Risk Portfolio
Class II	(2.81)%	(3.01)%
S&P Target Risk^®Moderate Index (Total Return)	(1.06)%	2.33%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 1.18% for Class II shares per the April 30, 2015 prospectus.

Commencement of operations is October 31, 2013.

The S&P Target Risk® Moderate Index (Total Return) provides significant exposure to fixed income, while also providing increased opportunity for capital growth through equities.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Variable Insurance Trusts - Equity Funds		54.5	%
Variable Insurance Trusts - Debt Fund		21.1	%
Exchange Traded Equity Funds		14.6	%
Money Market Fund		4.9	%
Other Assets Less Liabilities - Net		4.9	%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015. Derivative exposure is included in “Other Assets Less Liabilities - Net”.

FVIT Wellington Research Managed Risk Portfolio

(formerly FVIT WMC Research Managed Risk Portfolio)

Portfolio Review (Unaudited)

December 31, 2015

Investment Objective

The Portfolio seeks to provide capital appreciation and income while seeking to manage volatility.

Management Review

How did the Portfolio perform during the year?

During 2015, the Portfolio outperformed its reference benchmark, the S&P Target Risk Moderate Index. The Portfolio posted a return of 0.75% compared to a benchmark return of -1.06%, a positive difference of 181 basis points.

What factors and allocation decisions influenced the Portfolio’s performance?

An overweight to equities versus the benchmark contributed positively to performance in 2015. During the period, the equity portion of the Portfolio’s outperformance versus the S&P 500 (gross of fees) was driven by security selection within the information technology, consumer staples, and financials sectors. Relative returns within the information technology sector were particularly driven by stock selection within IT services and semiconductor companies. Within the consumer staples sector, holdings in food & staples retailing added positively to relative results. This was partially offset by weaker selection in the utilities sector.

Top contributors to relative performance of the equity portion of the Portfolio during the period included US-based provider of embedded processing solutions, Freescale Semiconductor (information technology) (0.15%) and US-based global e-commerce retailer, Amazon (consumer discretionary) (1.30%). Freescale Semiconductor’s stock rose following the announcement of a merger with NXP Semiconductor in the first quarter of the period. The Freescale position was absorbed into the combined company of NXP towards the end of period. The sub-adviser believes the combination is a positive with dominant positions in end-markets such as automobiles and microcontrollers. Amazon’s stock was driven higher after the company reported improving profitability and margin trends, driven by Amazon Web Services usage and the forward benefits of the Prime membership promotions.

Top detractors from relative performance of the equity portion of the Portfolio during the period included General Electric (industrials) (0.21%) and Enbridge (energy) (0.31%). A relative underweight position to General Electric, a U.S.-based provider of embedded processing solutions, detracted from relative results, as the stock price rose following the company’s announcement to refocus on growing its industrial business. After having zero exposure to General Electric since inception, the Portfolio gradually closed out that underweight in 2015. With more of a push to self-help sooner than later in a low growth environment for industrials, General Electric becomes more attractive and the sub-adviser may evaluate our position going forward. Canadian pipeline company, Enbridge also detracted from relative performance as its shares tumbled against the backdrop of oil prices hitting the lowest levels seen in over a decade. The sub-adviser believes Enbridge has a relatively stable business model and added to the position during the period (Portfolio holdings are subject to change at any time and should not be considered investment advice).

The fixed income portion of the Portfolio outperformed the Barclays U.S. Aggregate Bond Index (gross of fees) during the period. Security selection and sector allocation both contributed to outperformance. Security selection within the investment grade credit sector, particularly within industrials issuers, contributed most to relative results. The Portfolio’s underweight to the investment grade credit sector was also additive. An overweight positioning to the asset backed securities sector also contributed positively. The fixed income sleeve’s duration and yield curve positioning detracted from relative results as Treasury yields increased across the curve during the period.

FVIT Wellington Research Managed Risk Portfolio

(formerly FVIT WMC Research Managed Risk Portfolio)

Portfolio Review (Unaudited) (Continued)

December 31, 2015

How was the Portfolio positioned at period end?

At period end, the Portfolio remained overweight equities relative to the benchmark. The equity portion of the Portfolio was industry-neutral, designed to add value through fundamental, bottom-up security analysis. The Portfolio consists of multiple sub-portfolios, with each sub-portfolio actively managed by one or more of Wellington Management’s global industry analysts. The allocation of assets to each sub-portfolio corresponds to the relative weight of the analysts’ coverage universe within the index. However, within in an industry, an analyst’s stock selection may result in an overweight or underweight to certain sub-industries in his or her area of coverage.

The fixed income portion of the Portfolio was positioned with a slightly short duration bias as the stronger state of the U.S. economy led the Federal Reserve (Fed) to raise the Federal Funds rate for the first time since 2006, from a target range of 0 to 25 basis points to 25 to 50 basis points. The Portfolio continued to be moderately pro-cyclical positioned in credit markets based on supportive monetary policy, positive credit fundamentals and attractive valuations. Within spread sectors, we are positioned with an overweight to the securitized sector, particularly asset-backed and commercial mortgage-backed securities, as the consumer benefits from improving labor and housing market, as well as lower energy prices. The Portfolio continued to be positioned with an underweight to agency mortgage-backed securities as we expect more volatility in the sector with a diminished role for the Fed in that sector.

3091-NLD-1/27/2016

FVIT Wellington Research Managed Risk Portfolio

Portfolio Review (Unaudited) (Continued)

December 31, 2015

The Portfolio’s performance figures* for the periods ended December 31, 2015 as compared to its benchmark:

		Annualized
	One	Performance
	Year	Since Inception^**
FVIT Wellington Research Managed Risk Portfolio
Class II	0.75%	6.03%
S&P Target Risk^® Moderate Index (Total Return)	(1.06)%	2.33%

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or on the redemption of Portfolio shares, as well as other charges and expenses of the insurance contract or separate account. The Portfolio’s total annual operating expenses, after fee waiver and/or reimbursement, were 1.21% for Class II shares per the April 30, 2015 prospectus.

Commencement of operations is October 31, 2013.

The S&P Target Risk® Moderate Index (Total Return) provides significant exposure to fixed income, while also providing increased opportunity for capital growth through equities.

Comparison of the Change in Value of a $10,000 Investment

(LINE GRAPH)

Holdings by Asset Class	% of Net Assets
Common Stocks		60.3	%
U.S. Treasury Securities		10.8	%
Mortgage Backed Securities		6.9	%
Corporate Bonds		9.0	%
Asset Backed Securities		2.9	%
Exchange Traded Equity Fund		1.5	%
Commercial Mortgage Backed Securities		0.8	%
Municipal Securities		0.6	%
Money Market Fund		5.1	%
U.S. Government Agencies		1.8	%
Preferred Stocks		0.0	%
Other Assets Less Liabilities - Net		0.3	%
		100.0	%

Please refer to the Portfolio of Investments in this annual report for more information regarding the Portfolio’s holdings as of December 31, 2015.

Derivative exposure is included in “Other Assets Less Liabilities - Net”.

FVIT American Funds^® Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares			Value
		VARIABLE INSURANCE TRUSTS - 89.7%
		DEBT FUND - 29.9%
	5,346,464	American Funds Insurance Series - Bond Fund - Class 1	$	57,207,168

		EQUITY FUNDS - 59.8%
	2,612,184	American Funds Insurance Series - Blue Chip Income and Growth Fund - Class 1		32,965,758
	1,759,513	American Funds Insurance Series - Global Growth and Income Fund - Class 1		21,729,981
	272,087	American Funds Insurance Series - Growth Fund - Class 1		18,507,340
	906,133	American Funds Insurance Series - Growth-Income Fund - Class 1		41,138,447
				114,341,526
		TOTAL VARIABLE INSURANCE TRUSTS (Cost - $183,662,364)		171,548,694

		SHORT-TERM INVESTMENTS - 5.5%
		MONEY MARKET FUND - 5.5%
	10,489,128	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (a)(Cost - $10,489,128)		10,489,128

		TOTAL INVESTMENTS - 95.2% (Cost - $194,151,492)(b)	$	182,037,822
		OTHER ASSETS LESS LIABILITIES - NET - 4.8%		9,124,158
		TOTAL NET ASSETS - 100.0%	$	191,161,980

(a)

Money market rate shown represents the rate at December 31, 2015.

(b)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $195,760,552 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	—
Unrealized Depreciation:		(13,722,730	)
Net Unrealized Depreciation:	$	(13,722,730	)

See accompanying notes to financial statements.

FVIT Balanced Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares			Value
		EXCHANGE TRADED FUNDS - 93.3%
		DEBT FUNDS - 47.9%
	221,567	iShares Core U.S. Aggregate Bond ETF	$	23,931,452
	150,126	iShares Floating Rate Bond ETF		7,572,355
	78,012	iShares Intermediate Credit Bond ETF		8,369,127
				39,872,934
		EQUITY FUNDS - 45.4%
	143,881	iShares Core S&P 500 ETF		29,476,900
	13,572	iShares Core S&P Mid-Cap ETF		1,891,665
	85,654	iShares MSCI EAFE ETF		5,032,173
	12,572	iShares Russell 2000 ETF		1,414,476
				37,815,214
		TOTAL EXCHANGE TRADED FUNDS (Cost - $77,720,767)		77,688,148

		SHORT-TERM INVESTMENT - 2.6%
		MONEY MARKET FUND - 2.6%
	2,175,825	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (a)(Cost - $2,175,825)		2,175,825

		TOTAL INVESTMENTS - 95.9% (Cost - $79,896,592)(b)	$	79,863,973
		OTHER ASSETS LESS LIABILITIES - NET - 4.1%		3,446,293
		TOTAL NET ASSETS - 100.0%	$	83,310,266

(a)

Money market rate shown represents the rate at December 31, 2015.

(b)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $80,146,836 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	827,049
Unrealized Depreciation:		(1,109,912	)
Net Unrealized Depreciation:	$	(282,863	)

See accompanying notes to financial statements.

FVIT BlackRock Global Allocation Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares			Value
		VARIABLE INSURANCE TRUSTS - 95.0%
		ASSET ALLOCATION FUND - 95.0%
	17,159,660	BlackRock Global Allocation V.I. Fund - Class 1 (Cost - $294,383,013)	$	258,939,276

		SHORT-TERM INVESTMENTS - 0.2%
		MONEY MARKET FUND - 0.2%
	503,096	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (a)(Cost - $503,096)		503,096

		TOTAL INVESTMENTS - 95.2% (Cost - $294,886,109)(b)	$	259,442,372
		OTHER ASSETS LESS LIABILITIES -NET - 4.8%		13,155,689
		TOTAL NET ASSETS - 100.0%	$	272,598,061

(a)

Money market rate shown represents the rate at December 31, 2015.

(b)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $295,150,821 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	—
Unrealized Depreciation:		(35,708,449	)
Net Unrealized Depreciation:	$	(35,708,449	)

See accompanying notes to financial statements.

FVIT Franklin Dividend and Income Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares			Value
		COMMON STOCKS - 71.9%
		AEROSPACE/DEFENSE - 3.4%
	17,180	General Dynamics Corp.	$	2,359,845
	33,100	United Technologies Corp.		3,179,917
				5,539,762
		AGRICULTURE - 2.9%
	57,860	Archer-Daniels-Midland Co.		2,122,305
	38,100	Bunge Ltd.		2,601,468
				4,723,773
		APPAREL - 1.3%
	33,300	Nike, Inc.		2,081,250

		AUTO PARTS & EQUIPMENT - 1.8%
	73,900	Johnson Controls, Inc.		2,918,311

		BEVERAGES - 1.5%
	25,000	PepsiCo, Inc.		2,498,000

		CHEMICALS - 7.2%
	27,100	Air Products & Chemicals, Inc.		3,525,981
	56,000	Albemarle Corp.		3,136,560
	14,800	Ecolab, Inc.		1,692,824
	32,850	Praxair, Inc.		3,363,840
				11,719,205
		COMMERCIAL SERVICES - 1.3%
	11,400	Cintas Corp.		1,037,970
	20,400	Matthews International Corp.		1,090,380
				2,128,350
		COMPUTERS - 1.8%
	28,100	Accenture PLC		2,936,450

		COSMETICS/PERSONAL CARE - 2.7%
	30,700	Colgate-Palmolive Co.		2,045,234
	29,400	The Procter & Gamble Co.		2,334,654
				4,379,888
		DISTRIBUTION/WHOLESALE - 1.0%
	8,300	WW Grainger, Inc.		1,681,497

		ELECTRONICS - 2.3%
	35,860	Honeywell International, Inc.		3,714,020

See accompanying notes to financial statements.

FVIT Franklin Dividend and Income Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Shares			Value

		FOOD - 0.8%
	14,960	McCormick & Co., Inc.	$	1,279,978

		HEALTHCARE-PRODUCTS - 7.6%
	22,900	Becton Dickinson and Co.		3,528,661
	13,500	DENTSPLY International, Inc.		821,475
	47,400	Medtronic PLC		3,646,008
	34,700	Stryker Corp.		3,225,018
	18,800	West Pharmaceutical Services, Inc.		1,132,136
				12,353,298
		HOME FURNISHINGS- 0.4%
	15,900	Legget & Platt, Inc.		668,118

		INSURANCE - 1.3%
	14,100	Aflac, Inc.		844,590
	4,600	RLI Corp.		284,050
	7,300	The Chubb Corp.		968,272
				2,096,912
		IRON/STEEL - 0.4%
	14,510	Nucor Corp.		584,753

		MACHINERY-DIVERSIFIED - 3.1%
	26,740	Roper Technologies, Inc.		5,074,985

		MEDIA - 0.8%
	29,040	John Wiley & Sons, Inc.		1,307,671

		MISCELLANEOUS MANUFACTURING - 4.9%
	18,180	Carlisle Cos., Inc.		1,612,384
	39,500	Donaldson Co., Inc.		1,132,070
	40,700	Dover Corp.		2,495,317
	53,170	Pentair PLC		2,633,510
				7,873,281
		OIL & GAS - 2.5%
	9,900	Chevron Corp.		890,604
	6,500	EOG Resources, Inc.		460,135
	22,300	ExxonMobil Corp.		1,738,285
	13,500	Occidental Petroleum Corp.		912,735
				4,001,759
		OIL & GAS SERVICES - 1.6%
	37,500	Schlumberger Ltd.		2,615,625

See accompanying notes to financial statements.

FVIT Franklin Dividend and Income Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Shares			Value

		PHARMACEUTICALS - 5.4%
	38,700	Abbott Laboratories	$	1,738,017
	21,360	AbbVie, Inc.		1,265,366
	33,800	Johnson & Johnson		3,471,936
	8,900	Perrigo Co. PLC		1,287,830
	26,900	Roche Holding AG - ADR		927,243
				8,690,392
		RETAIL - 9.0%
	21,190	CVS Health Corp.		2,071,746
	12,900	McDonald’s Corp.		1,524,006
	28,700	Ross Stores, Inc.		1,544,347
	27,800	Target Corp.		2,018,558
	46,390	The Gap, Inc.		1,145,833
	13,000	Tiffany & Co.		991,770
	21,570	Walgreens Boots Alliance, Inc.		1,836,793
	31,600	Wal-Mart Stores, Inc.		1,937,080
	19,800	Yum! Brands, Inc.		1,446,390
				14,516,523
		SEMICONDUCTORS - 3.1%
	42,200	Linear Technology Corp.		1,792,234
	14,700	QUALCOMM, Inc.		734,780
	45,700	Texas Instruments, Inc.		2,504,817
				5,031,831
		SOFTWARE - 2.5%
	72,800	Microsoft Corp.		4,038,944

		TRANSPORTATION - 1.3%
	21,210	United Parcel Service, Inc.		2,041,038

		TOTAL COMMON STOCKS (Cost - $118,797,798)		116,495,614

See accompanying notes to financial statements.

FVIT Franklin Dividend and Income Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Shares			Value
		MUTUAL FUND - 23.6%
		DEBT FUND - 23.6%
	3,997,969	Franklin Templeton Total Return Fund - R6 Shares (Cost - $40,370,632)	$	38,340,521

		SHORT-TERM INVESTMENT - 0.6%
		MONEY MARKET FUND - 0.6%
	974,017	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (a)(Cost - $974,017)		974,017

		TOTAL INVESTMENTS - 96.1% (Cost - $160,142,447)(b)	$	155,810,152
		OTHER ASSETS LESS LIABILITIES - NET - 3.9%		6,333,977
		TOTAL NET ASSETS - 100.0%	$	162,144,129

ADR - American Depositary Receipt

(a)

Money market rate shown represents the rate at December 31, 2015.

(b)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $160,276,851 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	6,905,331
Unrealized Depreciation:		(11,372,030	)
Net Unrealized Depreciation:	$	(4,466,699	)

Contracts			Unrealized Depreciation
		SHORT FUTURES CONTRACTS
	12	MSCI EAFE Index Mini Future March 2016
		(Underlying Face Amount at Value $1,018,920)	$	(19,135	)
	19	MSCI Emerging Market E-Mini Future March 2016
		(Underlying Face Amount at Value $748,125)		(26,510	)
	2	S&P Midcap 400 E-Mini Future March 2016
		(Underlying Face Amount at Value $278,700)		(2,320	)
		NET UNREALIZED DEPRECIATION ON SHORT FUTURES CONTRACTS	$	(47,965	)

See accompanying notes to financial statements.

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares			Value
		EXCHANGE TRADED FUNDS - 32.4%
		EQUITY FUNDS - 32.4%
	8,317	iShares Core S&P 500 ETF	$	1,703,904
	8,363	SPDR S&P 500 ETF Trust		1,705,132
	9,953	Vanguard S&P 500 ETF		1,860,514
		TOTAL EXCHANGE TRADED FUNDS (Cost $5,187,608)		5,269,550

Principal
Amount			Coupon Rate (%)	Maturity
		U.S. TREASURY NOTE - 47.7%
$	7,425,000	United States Treasury Note (Cost $7,819,901)	2.75	11/15/2023		7,748,975

Contracts
		PURCHASED OPTIONS - 0.3%
	2	Euro Stoxx, January 2016, Put @ 3,050 Euro				582
	1	Euro Stoxx, January 2016, Put @ 3,075 Euro				89
	34	Euro Stoxx, February 2016, Put @ 3,125 Euro				18,138
	7	Euro Stoxx, March 2016, Put @ 2,925 Euro				2,624
	6	Nikkei 225 Index (OSE), January 2016, Put @ 17,000 Yen				200
	1	Nikkei 225 Index (OSE), March 2016, Put @ 17,000 Yen				1,164
	1	S&P 500 Index, January 2016, Put @ $1,850				130
	6	S&P 500 Index, January 2016, Put @ $1,875				945
	18	S&P 500 Index, February 2016, Put @ $1,875				22,230
	3	S&P 500 Index, March 2016, Put @ $1,800				4,305
	1	S&P 500 Index, March 2016, Put @ $1,850				1,940
		TOTAL PURCHASED OPTIONS (Cost - $76,236)				52,347

Shares
		SHORT-TERM INVESTMENTS - 29.7%
		MONEY MARKET FUND - 29.7%
	4,833,760	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (Cost $4,833,760) (a)				4,833,760

		TOTAL INVESTMENTS - 110.2% (Cost - $17,917,505)(b)			$	17,904,632
		OTHER ASSETS LESS LIABILITIES - NET - (10.2)%				(1,656,103	)
		TOTAL NET ASSETS - 100.0%			$	16,248,529

(a)

Money market rate shown represents the rate at December 31, 2015.

(b)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes including options written is $17,901,392 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	84,376
Unrealized Depreciation:		(87,152	)
Net Unrealized Depreciation:	$	(2,776	)

See accompanying notes to financial statements.

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Contracts		Options Written	Value
	7	Euro Stoxx, February 2016, Call @ 3,475 Euro	$	2,038
	37	Euro Stoxx, June 2016, Call @ 3,725 Euro		121
	6	Nikkei 225 Index (OSE), January 2016, Call @ 21,250 Yen		50
	1	Nikkei 225 Index (OSE), February 2016, Call @ 20,250 Yen		582
	25	S&P 500 Index, January 2016, Call @ $2,225		500
	3	S&P 500 Index, February 2016, Call @ $2,125		2,640
	1	S&P 500 Index, February 2016, Call @ $2,200		85
		TOTAL OPTIONS WRITTEN (Premiums received - $17,291)	$	6,016

			Unrealized Appreciation/
Contracts			(Depreciation)
		LONG FUTURES CONTRACTS
	41	Euro STOXX 50 Future March 2016
		(Underlying Face Amount at Value 1,390,698 Euro)	$	26,217
	7	Nikkei 225 Index (OSE) Future March 2016
		(Underlying Face Amount at Value 1,107,498 Yen)		(25,225	)
	4	S&P Midcap 400 Emini Future March 2016
		(Underlying Face Amount at Value $557,400)		(4,240	)
		NET UNREALIZED DEPRECIATION ON LONG FUTURES CONTRACTS	$	(3,248	)

See accompanying notes to financial statements.

FVIT Growth Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares			Value
		EXCHANGE TRADED FUNDS - 93.8%
		DEBT FUNDS - 14.5%
	368,647	iShares Core U.S. Aggregate Bond ETF	$	39,817,562
	246,405	iShares Floating Rate Bond ETF		12,428,668
	134,641	iShares Intermediate Credit Bond ETF		14,444,286
				66,690,516
		EQUITY FUNDS - 79.3%
	1,049,350	iShares Core S&P 500 ETF		214,980,335
	315,114	iShares Core S&P Mid-Cap ETF		43,920,589
	1,252,906	iShares MSCI EAFE ETF		73,608,228
	172,663	iShares Russell 1000 ETF		19,564,445
	124,501	iShares Russell 2000 ETF		14,007,608
				366,081,205
		TOTAL EXCHANGE TRADED FUNDS (Cost - $438,140,885)		432,771,721

		SHORT-TERM INVESTMENT - 2.0%
		MONEY MARKET FUND - 2.0%
	9,436,779	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (a)(Cost - $9,436,779)		9,436,779

		TOTAL INVESTMENTS - 95.8% (Cost - $447,577,664)(b)	$	442,208,500
		OTHER ASSETS LESS LIABILITIES - NET - 4.2%		19,146,614
		TOTAL NET ASSETS - 100.0%	$	461,355,114

(a)

Money market rate shown represents the rate at December 31, 2015.

(b)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $448,969,100 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	3,700,538
Unrealized Depreciation:		(10,461,138	)
Net Unrealized Depreciation:	$	(6,760,600	)

Contracts			Unrealized Appreciation
		SHORT FUTURES CONTRACTS
	56	MSCI EAFE Index Mini Future March 2016
		(Underlying Face Amount at Value $4,754,960)	$	14,840
	8	Russell 2000 Mini March 2016
		(Underlying Face Amount at Value $905,200)		2,320
	148	S&P 500 E-Mini March 2016
		(Underlying Face Amount at Value $15,062,700)		18,500
	20	S&P Midcap 400 E-Mini Future March 2016
		(Underlying Face Amount at Value $2,787,000)		7,800
		NET UNREALIZED APPRECIATION ON SHORT FUTURES CONTRACTS	$	43,460

See accompanying notes to financial statements.

FVIT Moderate Growth^®Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares			Value
		EXCHANGE TRADED FUNDS - 93.3%
		DEBT FUNDS - 33.7%
	238,989	iShares Core U.S. Aggregate Bond ETF	$	25,813,202
	162,917	iShares Floating Rate Bond ETF		8,217,533
	83,558	iShares Intermediate Credit Bond ETF		8,964,102
				42,994,837
		EQUITY FUNDS - 59.6%
	255,286	iShares Core S&P 500 ETF		52,300,443
	55,724	iShares Core S&P Mid-Cap ETF		7,766,811
	232,937	iShares MSCI EAFE ETF		13,685,049
	21,580	iShares Russell 2000 ETF		2,427,966
				76,180,269
		TOTAL EXCHANGE TRADED FUNDS (Cost - $120,486,243)		119,175,106

		SHORT-TERM INVESTMENT - 2.6%
		MONEY MARKET FUND - 2.6%
	3,358,160	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (a)(Cost - $3,358,160)		3,358,160

		TOTAL INVESTMENTS - 95.9% (Cost - $123,844,403)(b)	$	122,533,266
		OTHER ASSETS LESS LIABILITIES - NET - 3.2%		5,192,012
		TOTAL NET ASSETS - 100.0%	$	127,725,278

(a)

Money market rate shown represents the rate at December 31, 2015.

(b)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $124,147,233 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	739,209
Unrealized Depreciation:		(2,353,176	)
Net Unrealized Depreciation:	$	(1,613,967	)

See accompanying notes to financial statements.

FVIT PIMCO Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares					Value
		EXCHANGE TRADED FUNDS - 29.6%
		EQUITY FUNDS - 29.6%
	33,287	iShares MSCI EAFE ETF			$	1,955,611
	9,621	SPDR S&P 500 ETF Trust				1,961,626
		TOTAL EXCHANGE TRADED FUNDS (Cost - $3,816,200)				3,917,237

Principal
Amount			Coupon Rate (%)	Maturity
		ASSET BACKED SECURITIES - 4.4%
$	23,449	ACE Securities Corp. Home Equity Loan Trust Series 2002-HE2 (b)	1.70	8/25/2032		22,435
	53,968	ACE Securities Corp. Home Equity Loan Trust Series 2006-OP1 (b)	0.57	4/25/2036		50,708
	15,348	Ally Auto Receivables Trust 2015-1	0.39	8/15/2016		15,340
	40,644	Citigroup Mortgage Loan Trust 2007-AMC1 (a)(b)	0.58	12/25/2036		26,622
	24,163	Countrywide Asset-Backed Certificates (b)	0.55	12/25/2036		21,613
	37,825	Countrywide Asset-Backed Certificates (b)	0.56	6/25/2047		29,047
	26,430	CWABS Asset-Backed Certificates Trust 2006-17 (b)	0.57	3/25/2047		23,399
	50,000	Ford Credit Floorplan Master Owner Trust A (b)	0.93	8/15/2020		49,879
	21,992	Fremont Home Loan Trust 2005-E (b)	0.66	1/25/2036		21,337
	34,972	GSAMP Trust 2006-HE4 (b)	0.56	6/25/2036		29,748
	11,563	Long Beach Mortgage Loan Trust 2004-2 (b)	2.04	6/25/2034		10,941
	37,016	Long Beach Mortgage Loan Trust 2005-3 (b)	0.68	8/25/2045		28,714
	14,588	Mercedes-Benz Auto Receivables Trust 2015-1	0.39	8/15/2016		14,585
	18,722	RASC Series 2004-KS10 Trust (b)	2.15	11/25/2034		16,302
	100,000	SLC Student Loan Trust 2006-2 (b)	0.61	9/15/2026		96,086
	65,390	SLM Student Loan Trust 2005-3 (b)	0.41	10/25/2024		64,007
	18,900	Soundview Home Loan Trust 2007-WMC1 (b)	0.53	2/25/2037		7,892
	23,703	Structured Asset Investment Loan Trust 2004-7 (b)	1.47	8/25/2034		22,013
	32,771	Structured Asset Securities Corp. Mortgage Loan Trust 2006-BC2 (b)	0.57	9/25/2036		27,525
		TOTAL ASSET BACKED SECURITIES (Cost - $585,948)				578,193

		CORPORATE BONDS - 16.8%
		AGRICULTURE - 0.3%
	25,000	Reynolds American, Inc.	4.45	6/12/2025		26,146
	10,000	Reynolds American, Inc.	5.85	8/15/2045		11,117
						37,263
		AIRLINE - 0.4%
	50,000	Spirit Airlines 2015-1 Pass Through Trust A	4.10	4/1/2028		49,250

		AUTO MANUFACTURER - 0.1%
	20,000	General Motors Financial Co., Inc.	3.20	7/13/2020		19,692

		BANKS - 3.9%
	50,000	Bank of America Corp.	3.30	1/11/2023		49,216
	25,000	Bank of America Corp.	4.00	4/1/2024		25,568
	50,000	Bank of America Corp.	5.65	5/1/2018		53,765
	45,000	The Bank of Nova Scotia	1.10	12/13/2016		44,973
	50,000	The Goldman Sachs Group, Inc. (b)	1.05	5/22/2017		49,930
	10,000	The Goldman Sachs Group, Inc.	3.75	5/22/2025		10,067
	15,000	The Goldman Sachs Group, Inc.	6.00	6/15/2020		16,952
	50,000	HSBC USA, Inc. (b)	1.11	8/7/2018		49,962
	25,000	JPMorgan Chase & Co.	3.88	2/1/2024		25,702
	35,000	KeyCorp.	2.90	9/15/2020		34,868

See accompanying notes to financial statements.

FVIT PIMCO Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal
Amount			Coupon Rate (%)	Maturity	Value
		BANKS - 3.9% (Continued)
$	26,000	Morgan Stanley	2.13	4/25/2018	$	26,035
	20,000	Royal Bank Scotland Group PLC	9.50	3/16/2022		21,575
	60,000	Wells Fargo & Co.	2.63	12/15/2016		60,815
	50,000	Wells Fargo & Co.	3.00	2/19/2025		48,633
						518,061
		BEVERAGES - 0.3%
	40,000	PepsiCo., Inc.	2.50	5/10/2016		40,244

		COMMERCIAL SERVICES - 0.6%
	50,000	Automatic Data Processing, Inc.	2.25	9/15/2020		50,189
	30,000	McGraw Hill Financial, Inc.	2.50	8/15/2018		30,187
						80,376
		CONSUMER FINANCE - 5.2%
	2,700,000	Realkredit Danmark	1.00	1/1/2017		396,828
	2,000,000	NYKREDIT AS	1.00	1/1/2017		293,868
						690,696
		DIVERSIFIED FINANCIAL SERVICES - 0.6%
	50,000	American Express Credit Corp. (b)	1.55	9/14/2020		50,427
	9,640	Granite Mortgages 03-2 PLC (b)	1.06	7/20/2043		14,211
	11,000	Navient Corp.	6.25	1/25/2016		11,019
						75,657
		ENVIRONMENTAL CONTROL - 0.2%
	25,000	Republic Services, Inc.	3.55	6/1/2022		25,530

		FOOD - 0.4%
	50,000	General Mills, Inc.	0.88	1/29/2016		49,994

		HEALTHCARE PRODUCTS - 0.8%
	75,000	Danaher Corp.	2.30	6/23/2016		75,422
	35,000	Medtronic, Inc.	3.50	3/15/2025		35,286
						110,708
		HEALTHCARE SERVICES - 0.3%
	35,000	UnitedHealth Group, Inc.	3.75	7/15/2025		36,081

		INSURANCE - 0.4%
	60,000	MetLife, Inc.	6.75	6/1/2016		61,374

		OIL & GAS - 0.9%
	35,000	BP Capital Markets PLC	3.51	3/17/2025		33,894
	20,000	Ecopetrol SA	5.38	6/26/2026		17,050
	100,000	Petrobras Global Finance BV	4.38	5/20/2023		66,000
						116,944
		OIL & GAS SERVICES - 0.4%
	50,000	Halliburton Co.	1.00	8/1/2016		49,923

		PHARMACUTICALS - 0.4%
	50,000	AbbVie, Inc.	1.80	5/14/2018		49,770

		PIPELINES - 0.3%
	25,000	MPLX LP (a)	4.88	6/1/2025		22,375
	23,000	Regency Energy Partners LP / Regency Energy Finance Corp.	4.50	11/1/2023		19,898
						42,273

See accompanying notes to financial statements.

FVIT PIMCO Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal
Amount			Coupon Rate (%)	Maturity	Value
		REAL ESTATE INVESTMENT TRUSTS - 0.3%
$	25,000	Digital Realty Trust LP	3.95	7/1/2022	$	24,825
	10,000	Host Hotels & Resorts LP	4.00	6/15/2025		9,586
						34,411
		SOFTWARE - 0.4%
	50,000	Fidelity National Information Services, Inc.	2.85	10/15/2018		50,177

		TELECOMMUNICATION - 0.4%
	50,000	Verizon Communications, Inc.	5.15	9/15/2023		54,966

		TRANSPORTATION - 0.2%
	25,000	Burlington Northern Santa Fe LLC	3.05	9/1/2022		24,978

		TOTAL CORPORATE BONDS (Cost - $2,224,527)				2,218,368

		SOVEREIGN DEBT - 4.6%
	100,000	Japan Bank for International Cooperation	2.50	1/21/2016		100,074
	30,000	Mexico Cetes	0.00	3/3/2016		1,728
	9,000,000	Mexico Cetes	0.00	6/23/2016		512,582
		TOTAL SOVEREIGN DEBT (Cost - $610,204)				614,384

		MORTGAGE BACKED SECURITIES - 15.0%
		FEDERAL NATIONAL MORTGAGE ASSOCIATION - 15.0%
	300,000	Fannie Mae TBA +	3.00	2/1/2042		300,003
	600,000	Fannie Mae TBA +	3.50	1/15/2045		619,034
	800,000	Fannie Mae TBA +	4.00	1/1/2045		846,537
	200,000	Fannie Mae TBA +	4.50	1/1/2044		215,975
		TOTAL MORTGAGE BACKED SECURITIES (Cost - $1,980,547)				1,981,549

		COLLATERALIZED MORTGAGE OBLIGATIONS - 7.5%
		AGENCY COLLATERAL - 3.7%
	97,604	Government National Mortgage Association (b)	0.69	3/20/2065		97,521
	98,751	Government National Mortgage Association (b)	0.79	5/20/2065		97,788
	99,909	Government National Mortgage Association (b)	0.81	8/20/2065		99,017
	98,590	Government National Mortgage Association (b)	0.89	10/20/2065		98,819
	100,000	Government National Mortgage Association (b)	1.25	12/20/2065		99,547
						492,692
		WHOLE LOAN COLLATERAL - 3.8%
	43,901	Alternative Loan Trust 2005-J12 (b)	0.69	8/25/2035		29,307
	27,253	Alternative Loan Trust 2006-OA9 (b)	0.61	7/20/2046		19,799
	24,068	Bear Stearns ARM Trust 2005-5 (b)	2.32	8/25/2035		24,284
	30,002	Chevy Chase Funding LLC Mortgage-Backed Certificates Series 2004-3 (a,b)	0.67	8/25/2035		26,856
	28,354	Chevy Chase Funding LLC Mortgage-Backed Certificates Series 2004-4 (a,b)	0.65	10/25/2035		26,131
	50,881	Credit Suisse First Boston Mortgage Securities Corp.	4.50	7/25/2020		51,505
	28,271	First Horizon Mortgage Pass-Through Trust 2005-AR2 (b)	2.71	6/25/2035		26,817
	49,870	Great Hall Mortgages No 1 PLC (a,b)	0.66	6/18/2039		46,990
	32,084	GSR Mortgage Loan Trust 2005-AR6 (b)	2.81	9/25/2035		32,779
	20,034	Impac CMB Trust Series 2005-8 (b)	0.77	2/25/2036		19,656
	26,752	IndyMac INDX Mortgage Loan Trust 2006-AR4 (b)	0.63	5/25/2046		21,916
	17,517	JP Morgan Resecuritization Trust Series 2009-7 (a,b)	2.73	8/27/2037		17,632
	16,653	Merrill Lynch Mortgage Investors Trust Series MLCC 2005-3 (b)	0.67	11/25/2035		15,573

See accompanying notes to financial statements.

FVIT PIMCO Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal
Amount			Coupon Rate (%)	Maturity	Value
		WHOLE LOAN COLLATERAL - 3.8% (Continued)
$	28,178	MortgageIT Trust 2005-4 (b)	0.70	10/25/2035	$	25,728
	29,951	RALI Series 2005-QR1 Trust	6.00	10/25/2034		31,346
	29,956	Structured Adjustable Rate Mortgage Loan Trust (b)	0.72	10/25/2035		27,854
	15,995	Structured Adjustable Rate Mortgage Loan Trust (b)	2.54	9/25/2034		15,856
	15,477	Structured Adjustable Rate Mortgage Loan Trust (b)	2.59	2/25/2034		15,382
	30,149	WaMu Mortgage Pass-Through Certificates Series 2007-HY4 Trust (b)	1.97	4/25/2037		25,492
						500,903

		TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost - $991,177)				993,595

		COMMERCIAL MORTGAGE BACKED SECURITIES - 3.3%
	200,000	FHLMC Multifamily Structured Pass Through Certificates (b)	0.94	9/25/2022		199,288
	75,731	JP Morgan Chase Commercial Mortgage Securities Trust 2007-CIBC18	5.44	6/12/2047		77,548
	100,000	RFTI 2015-FL1 Issuer Ltd. (a,b)	2.08	6/15/2018		99,400
	55,752	Wachovia Bank Commercial Mortgage Trust Series 2006-C27 (b)	5.75	7/15/2045		56,214
		TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost - $433,890)				432,450

		U.S. TREASURY SECURITIES - 21.8%
	300,000	United States Treasury Inflation Indexed Note	0.13	4/15/2017		313,516
	300,000	United States Treasury Inflation Indexed Note	0.13	1/15/2022		305,489
	200,000	United States Treasury Inflation Indexed Note	0.13	7/15/2022		200,562
	100,000	United States Treasury Inflation Indexed Note	0.38	7/15/2025		97,101
	25,000	United States Treasury Inflation Indexed Bond	0.75	2/15/2045		21,803
	100,000	United States Treasury Inflation Indexed Bond	1.75	1/15/2028		124,047
	100,000	United States Treasury Inflation Indexed Bond	2.38	1/15/2027		136,339
	100,000	United States Treasury Inflation Indexed Bond	2.50	1/15/2029		131,233
	200,000	United States Treasury Note	0.25	2/29/2016		199,984
	100,000	United States Treasury Note	0.38	1/31/2016		100,005
	100,000	United States Treasury Note	0.38	2/15/2016		100,000
	50,000	United States Treasury Note	2.25	11/15/2024		49,975
	200,000	United States Treasury Note	2.50	8/15/2023		205,195
	200,000	United States Treasury Bond	2.88	8/15/2045		194,242
	100,000	United States Treasury Bond	3.00	5/15/2045		99,543
	550,000	United States Treasury Bond	3.00	11/15/2045		548,346
	50,000	United States Treasury Bond	3.13	8/15/2044		51,100
		TOTAL U.S. TREASURY SECURITIES (Cost - $2,912,910)				2,878,480

Contracts
		PURCHASED OPTIONS ON INDICES - 1.5%
	14	S&P 500 Index, December 2016, Put @ $1,400				30,730
	14	S&P 500 Index, December 2016, Put @ $1,600				57,960
	14	S&P 500 Index, December 2016, Put @ $1,825				113,050
		TOTAL PURCHASED OPTIONS ON INDICES (Cost - $237,187)				201,740

		PURCHASED OPTIONS ON FUTURES - 0.0%*
	1	EURO-BOBL, March 2016, Put @ $126.25				5
	1	US 5Yr Future, March 2016, Put @ $110.75				8
	2	US 5Yr Future, March 2016, Put @ $111				16
		PURCHASED OPTIONS ON FUTURES (Cost - $32)				29

See accompanying notes to financial statements.

FVIT PIMCO Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Shares					Value
		SHORT-TERM INVESTMENTS - 8.7%
		MONEY MARKET FUND - 1.1%
	151,076	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (c)			$	151,076

Principal
Amount			Coupon Rate (%)	Maturity
		FEDERAL NATIONAL MORTGAGE ASSOCIATION - 1.5%
$	100,000	Fannie Mae Discount Notes	0.26	2/8/2016		99,973
	100,000	Fannie Mae Discount Notes	0.14	2/16/2016		99,978
						199,951

		FEDERAL HOME LOAN MORTGAGE CORP. - 4.6%
	100,000	Federal Home Loan Bank Discount Notes	0.12	1/22/2016		99,993
	100,000	Federal Home Loan Bank Discount Notes	0.24	1/25/2016		99,984
	100,000	Federal Home Loan Bank Discount Notes	0.17	1/29/2016		99,989
	100,000	Federal Home Loan Bank Discount Notes	0.17	2/8/2016		99,982
	200,000	Federal Home Loan Bank Discount Notes	0.29	2/19/2016		199,921
						599,869
		U.S. TREASURY BILL - 1.5%
	200,000	United States Treasury Bill	0.14 - 0.19	1/14/2016		199,988

		TOTAL SHORT-TERM INVESTMENTS (Cost - $1,150,884)				1,150,884

		TOTAL INVESTMENTS - 113.2% (Cost - $14,943,506)(d)			$	14,966,909
		OTHER ASSETS LESS LIABILITIES - NET - (13.2)%				(1,751,756	)
		TOTAL NET ASSETS - 100.0%			$	13,215,153

TBA - To Be Announced Security

Represents less than 0.05%.

All or a portion of these TBAs are subject to dollar-roll transactions.

(a)

144(a) - Security was purchased pursuant to Rule 144a under the Securities Act of 1933 and may not be resold subject to that rule, except to qualified institutional buyers. As of December 31, 2015, these securities amounted to $266,006 or 2.0% of net assets.

(b)

Variable Rate Security - interest rate subject to periodic change.

(c)

Money market rate shown represents the rate at December 31, 2015.

(d)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $15,106,347 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	210,911
Unrealized Depreciation:		(350,349	)
Net Unrealized Depreciation:	$	(139,438	)

See accompanying notes to financial statements.

FVIT PIMCO Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

			Unrealized Appreciation/
Contracts			(Depreciation)
		SHORT FUTURES CONTRACTS
	9	3 MO Sterling (Short Sterling ) March 2017
		(Underlying Face Amount at Value $1,639,350)	$	(1,216	)
	6	3 MO Sterling (Short Sterling ) December 2016
		(Underlying Face Amount at Value $1,094,445)		977
	4	3 MO Sterling (Short Sterling ) June 2017
		(Underlying Face Amount at Value $727,565)		(2,138	)
	1	3 MO Sterling (Short Sterling) September 2017
		(Underlying Face Amount at Value $181,689)		405
	7	US 10Yr NOTE (CBT) March 2016
		(Underlying Face Amount at Value $881,342)		301
				(1,671	)
		LONG FUTURES CONTRACTS
	1	Euro-BOBL Future March 2016
		(Underlying Face Amount at Value $141,973)		(282	)
	1	Euro Schatz March 2016
		(Underlying Face Amount at Value $121,156)		27
	49	S&P 500 E-Mini March 2016
		(Underlying Face Amount at Value $4,986,975)		(27,432	)
	14	US Long Bond Future March 2016
		(Underlying Face Amount at Value $1,656,480)		(3,601	)
				(31,288	)

		TOTAL UNREALIZED DEPRECIATION OF FUTURES CONTRACTS	$	(32,959	)

Notional						Unrealized Appreciation/
Amount $						(Depreciation)
			Swaption Written
	500,000		IRS 5Y Put Swaption, Strike Price 1.90, Expiration 2/16/16			$	(269	)

Notional				Fixed Received		Unrealized Appreciation/
Amount $				Rate (%)	Expiration	(Depreciation)
			Interest Rate Swaps
	700,000		Goldman Sachs	6.53	6/5/2025	$	141
	7,000,000		Goldman Sachs	5.62	6/2/2020		4,320
	1,100,000		Goldman Sachs	5.94	7/13/2022		245
	5,800,000		Goldman Sachs	4.06	8/24/2016		221
	(100,000	)	Goldman Sachs	1.02	12/16/2020		(1,315	)
	(400,000	)	Goldman Sachs	1.02	12/16/2045		(10,901	)
						$	(7,289	)

See accompanying notes to financial statements.

FVIT PIMCO Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Notional				Fixed Received		Unrealized Appreciation/
Amount $				Rate (%)	Expiration	(Depreciation)
			Credit Default Swaps

	100,000		United Mexican States - Counterparty “Barclays Bank, PLC”	1.00	9/20/2020	$	(2,702	)
	100,000		United Mexican States - Counterparty “Barclays Bank, PLC”	1.00	12/20/2020		(3,081	)
	(800,000	)	North American Investment Grade CDX Index	1.00	6/20/2020		(8,517	)
	(600,000	)	North American Investment Grade CDX Index	1.00	12/20/2020		3,456
	(200,000	)	North American High Yield CDX Index	5.00	12/20/2020		2,718
						$	(8,126	)

See accompanying notes to financial statements.

FVIT PIMCO Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Schedule of Forward Foreign Currency Contracts

Settlement		Currency Units to								Unrealized Appreciation
Date	Counterparty	Receive/Deliver			In Exchange For			U.S. $ Value		(Depreciation)
To Buy:
1/4/2016	Goldman Sachs		2,022,000	DKK		289,482	USD	$	294,408	$	4,927
1/5/2016	Goldman Sachs		152,301	BRL		40,000	USD		38,385		(1,615	)
2/11/2016	Goldman Sachs		63,000	EUR		67,208	USD		68,519		1,311
2/11/2016	Goldman Sachs		33,000	EUR		35,865	USD		35,891		26
2/11/2016	Goldman Sachs		57,000	EUR		61,779	USD		61,993		214
2/11/2016	Goldman Sachs		31,000	EUR		34,109	USD		33,716		(393	)
2/12/2016	Goldman Sachs		2,600,000	JAP		21,148	USD		21,636		488
2/12/2016	Goldman Sachs		2,700,000	JAP		21,980	USD		22,468		488
2/12/2016	Goldman Sachs		11,100,000	JAP		90,740	USD		92,368		1,628
2/12/2016	Goldman Sachs		23,700,000	JAP		193,764	USD		197,217		3,453
2/12/2016	Goldman Sachs		2,300,000	JAP		18,717	USD		19,139		422
2/12/2016	Goldman Sachs		1,100,000	JAP		8,955	USD		9,153		198
2/12/2016	Goldman Sachs		1,400,000	JAP		11,462	USD		11,650		188
2/12/2016	Goldman Sachs		3,200,000	JAP		26,363	USD		26,629		266
3/14/2016	Goldman Sachs		210,000	MXN		12,141	USD		12,097		(44	)
4/1/2016	Goldman Sachs		25,000	DKK		3,673	USD		3,650		(23	)
											11,534

To Sell:
1/5/2016	Goldman Sachs		152,608	BRL		40,688	USD		38,462		2,226
1/15/2016	Goldman Sachs		1,661,479	THB		46,000	USD		46,066		(66	)
2/11/2016	Goldman Sachs		17,000	GBP		25,810	USD		25,065		745
2/11/2016	Goldman Sachs		31,000	EUR		33,492	USD		33,716		(224	)
2/11/2016	Goldman Sachs		16,000	EUR		17,188	USD		17,401		(213	)
2/11/2016	Goldman Sachs		259,000	EUR		280,342	USD		281,690		(1,348	)
2/11/2016	Goldman Sachs		45,000	EUR		49,027	USD		48,942		85
2/11/2016	Goldman Sachs		19,000	EUR		20,648	USD		20,664		(16	)
2/11/2016	Goldman Sachs		8,000	EUR		8,770	USD		8,701		69
2/11/2016	Goldman Sachs		2,700,000	JPY		22,012	USD		22,467		(455	)
2/12/2016	Goldman Sachs		3,400,000	JPY		27,596	USD		28,293		(697	)
2/12/2016	Goldman Sachs		40,700,000	JPY		331,273	USD		338,681		(7,408	)
2/12/2016	Goldman Sachs		19,200,000	JPY		155,809	USD		159,771		(3,962	)
2/12/2016	Goldman Sachs		1,400,000	JPY		11,386	USD		11,650		(264	)
2/12/2016	Goldman Sachs		800,000	JPY		6,583	USD		6,657		(74	)
2/12/2016	Goldman Sachs		900,000	JPY		7,420	USD		7,489		(69	)
2/12/2016	Goldman Sachs		5,900,000	JPY		48,679	USD		49,096		(417	)
2/26/2016	Goldman Sachs		170,400	MYR		40,000	USD		39,513		487
2/26/2016	Goldman Sachs		98,670	MYR		23,000	USD		22,880		120
2/26/2016	Goldman Sachs		57,000	SGD		40,018	USD		40,134		(116	)
2/26/2016	Goldman Sachs		1,083,555	TWD		33,000	USD		32,813		187
2/26/2016	Goldman Sachs		216,840	THB		6,000	USD		5,997		3

See accompanying notes to financial statements.

FVIT PIMCO Tactical Allocation Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Schedule of Forward Foreign Currency Contracts

Settlement		Currency Units to								Unrealized Appreciation
Date	Counterparty	Receive/Deliver			In Exchange For			U.S. $ Value		(Depreciation)
To Sell:
3/3/2016	Goldman Sachs		29,773	MXN		1,740	USD		1,716	$	24
3/14/2016	Goldman Sachs		356,324	MXN		20,440	USD		20,525		(85	)
6/23/2016	Goldman Sachs		8,834,019	MXN		502,905	USD		505,339		(2,434	)
1/3/2017	Goldman Sachs		2,022,000	DKK		293,771	USD		298,688		(4,917	)
1/3/2017	Goldman Sachs		2,756,940	DKK		411,656	USD		407,253		4,403
											(14,416	)

	Net unrealized depreciation on forward foreign currency contracts									$	(2,882	)

See accompanying notes to financial statements.

FVIT Select Advisor Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares			Value
		EXCHANGE TRADED FUNDS - 14.6%
		EQUITY FUNDS - 14.6%
	63,749	iShares Core S&P 500 ETF	$	13,060,258
	21,274	iShares Russell 2000 ETF		2,393,538
		TOTAL EXCHANGE TRADED FUNDS (Cost - $15,129,975)		15,453,796

		VARIABLE INSURANCE TRUSTS - 75.6%
		DEBT FUND - 21.1%
	1,719,884	MFS Research Bond Series		22,358,285

		EQUITY FUNDS - 54.5%
	372,287	American Century VP Mid Cap Value - Class 1		6,846,359
	1,124,422	American Century VP Value Fund - Investor Class		9,951,136
	109,854	Invesco VI International Growth Fund - Class 1		3,678,996
	367,074	MFS Growth Series		14,745,358
	322,719	MFS VIT II International Value Portfolio		7,248,262
	695,632	Putnam VT Equity Income - Class 1A		15,116,084
				57,586,195
		TOTAL VARIABLE INSURANCE TRUSTS (Cost - $81,483,530)		79,944,480

		SHORT-TERM INVESTMENTS - 4.8%
		MONEY MARKET FUND - 4.8%
	5,042,553	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (a)(Cost - $5,042,553)		5,042,553

		TOTAL INVESTMENTS - 95.0% (Cost - $101,656,058)(b)	$	100,440,829
		OTHER ASSETS LESS LIABILITIES -NET - 5.0%		5,275,266
		TOTAL NET ASSETS - 100.0%	$	105,716,095

(a)

Money market rate shown represents the rate at December 31, 2015.

(b)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $101,916,886 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:	$	669,899
Unrealized Depreciation:		(2,145,956	)
Net Unrealized Depreciation:	$	(1,476,057	)

See accompanying notes to financial statements.

FVIT Select Advisor Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

			Unrealized
Contracts			Appreciation
		SHORT FUTURES CONTRACTS
	2	MSCI Emerging Market E-Mini Future March 2016
		(Underlying Face Amount at Value $78,750)	$	40

		UNREALIZED APPRECIATION ON SHORT FUTURES CONTRACT	$	40

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS

December 31, 2015

Shares			Value
		COMMON STOCKS - 60.3%
		ADVERTISING - 0.4%
	16,946	The Interpublic Group of Cos., Inc.	$	394,503
	18,445	Nielsen Holdings PLC		859,537
				1,254,040
		AEROSPACE/DEFENSE - 1.5%
	10,939	The Boeing Co.		1,581,670
	8,738	Lockheed Martin Corp.		1,897,457
	11,262	Raytheon Co.		1,402,457
				4,881,584
		AGRICULTURE - 0.7%
	39,848	Altria Group, Inc.		2,319,552
	2,290	Philip Morris International, Inc.		201,314
				2,520,866
		AIRLINES - 0.2%
	8,680	American Airlines Group, Inc.		367,598
	4,285	United Continental Holdings, Inc. *		245,530
				613,128
		APPAREL - 0.6%
	17,990	NIKE, Inc.		1,124,375
	2,030	Ralph Lauren Corp.		226,304
	8,800	VF Corp.		547,800
				1,898,479
		BANKS - 3.9%
	236,282	Bank of America Corp.		3,976,626
	56,652	Citizens Financial Group, Inc.		1,483,716
	11,019	Northern Trust Corp.		794,360
	23,832	The PNC Financial Services Group, Inc.		2,271,428
	85,535	Wells Fargo & Co.		4,649,683
				13,175,813
		BEVERAGES - 2.6%
	9,343	Anheuser-Busch InBev - ADR		1,167,875
	10,087	Dr. Pepper Snapple Group, Inc.		940,108
	11,612	Monster Beverage Corp. *		1,729,724
	26,666	PepsiCo, Inc.		2,664,467
	53,668	The Coca-Cola Co.		2,305,577
				8,807,751
		BIOTECHNOLOGY - 0.7%
	1,621	Alnylam Pharmaceuticals, Inc. *		152,601
	10,124	BioCryst Pharmaceuticals, Inc. *		104,480
	6,859	Gilead Sciences, Inc.		694,062
	9,720	GlycoMimetics, Inc. *		55,598
	820	Incyte Corp. *		88,929
	185	Karyopharm Therapeutics, Inc. *		2,451
	1,500	Nivalis Therapeutics, Inc. *		11,610
	10,721	Novavax, Inc. *		89,949
	3,762	Otonomy, Inc. *		104,396
	1,242	PTC Therapeutics, Inc. *		40,241
	83	Puma Biotechnology, Inc. *		6,507
	1,535	Regeneron Pharmaceuticals, Inc. *		833,305
	2,040	Ultragenyx Pharmaceutical, Inc. *		228,847
				2,412,976
		BUILDING MATERIALS - 0.8%
	19,471	Boise Cascade Co. *		497,095
	11,760	CRH PLC - ADR		338,923
	7,290	Fortune Brands Home & Security, Inc.		404,595
	2,160	Martin Marietta Materials, Inc.		295,013
	12,610	Owens Corning		593,048
	11,236	Summit Materials, Inc. *		225,169
	4,290	Vulcan Materials Co.		407,421
				2,761,264

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Shares			Value
		CHEMICALS - 1.0%
	9,511	Cabot Corp.	$	388,810
	12,783	Celanese Corp.		860,679
	3,211	LyondellBasell Industries NV		279,036
	13,632	The Dow Chemical Co.		701,775
	9,400	The Mosaic Co.		259,346
	3,487	The Sherwin-Williams Co.		905,225
				3,394,871
		COMMERCIAL SERVICES - 1.3%
	10,697	Automatic Data Processing, Inc.		906,250
	6,215	Equifax, Inc.		692,165
	10,568	Global Payments, Inc.		681,742
	6,893	Heartland Payment Systems, Inc.		653,594
	5,427	ManpowerGroup, Inc.		457,442
	11,690	TransUnion *		322,293
	7,005	WEX, Inc. *		619,242
				4,332,728
		COMPUTERS - 2.1%
	12,044	Accenture PLC - Cl. A		1,258,598
	29,684	Apple, Inc.		3,124,538
	11,342	Cognizant Technology Solutions Corp. - Cl. A *		680,747
	47,928	Genpact Ltd. *		1,197,241
	40,920	Pure Storeage, Inc. *		637,124
				6,898,248
		COSMETICS/PERSONAL CARE - 1.5%
	150,898	Avon Products, Inc.		611,137
	37,677	Colgate-Palmolive Co.		2,510,042
	23,418	The Estee Lauder Cos., Inc.		2,062,189
				5,183,368
		DIVERSIFIED FINANCIAL SERVICES - 2.7%
	1,852	Alliance Data Systems Corp. *		512,208
	26,386	American Express Co.		1,835,146
	6,077	Ameriprise Financial, Inc.		646,714
	1,891	BlackRock, Inc. - Cl. A		643,923
	11,639	Invesco Ltd.		389,674
	930	MarketAxess Holdings, Inc.		103,779
	6,055	Raymond James Financial, Inc.		351,008
	91,624	Santander Consumer USA Holdings, Inc. *		1,452,240
	35,529	Visa, Inc. - Cl. A		2,755,274
	12,364	WisdomTree Investments, Inc.		193,867
				8,883,833
		ELECTRIC - 2.3%
	11,834	Ameren Corp.		511,584
	12,660	Avangrid, Inc. *		486,144
	16,048	Dominion Resources, Inc.		1,085,487
	4,071	DTE Energy Co.		326,453
	8,839	Duke Energy Corp.		631,016
	10,203	Edison International		604,120
	7,008	Eversource Energy		357,899
	18,878	Exelon Corp.		524,242
	7,224	ITC Holdings Corp.		283,542
	17,194	NextEra Energy, Inc.		1,786,285
	11,788	PG&E Corp.		627,004
	4,222	Pinnacle West Capital Corp.		272,235
	4,623	Public Service Enterprise Group, Inc.		178,864
				7,674,875
		ELECTRICAL COMPONENTS & EQUIPMENT - 0.2%
	11,160	AMETEK, Inc.		598,064
	1,880	SunPower Corp. *		56,419
				654,483

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Shares			Value
		ELECTRONICS - 0.8%
	25,102	Honeywell International, Inc.	$	2,599,814

		ENERGY - ALTERNATE SOURCES - 0.0% **
	2,169	First Solar, Inc. *		143,132

		ENTERTAINMENT - 0.1%
	18,610	DreamWorks Animation SKG, Inc. *		479,580

		ENVIRONMENTAL CONTROL - 0.2%
	15,580	Waste Management, Inc.		831,505

		FOOD - 0.9%
	67,006	Mondelez International, Inc. - Cl. A		3,004,549

		FOREST PRODUCTS & PAPER - 0.2%
	19,064	International Paper Co.		718,713

		GAS - 0.2%
	4,190	Sempra Energy		393,902
	10,820	UGI Corp.		365,283
				759,185
		HEALTHCARE-PRODUCTS - 3.6%
	19,255	Baxter International, Inc.		734,578
	5,698	Becton Dickinson and Co.		878,005
	30,600	Boston Scientific Corp. *		564,264
	12,290	ConforMIS, Inc. *		212,494
	28,007	Danaher Corp.		2,601,290
	47,859	Medtronic, PLC		3,681,314
	4,076	Ocular Therapeutix, Inc. *		38,192
	22,421	St. Jude Medical, Inc.		1,384,945
	10,863	Stryker Corp.		1,009,607
	6,142	Thermo Fisher Scientific, Inc.		871,243
				11,975,932
		HEALTHCARE-SERVICES - 1.3%
	9,325	Aetna, Inc.		1,008,219
	14,924	HCA Holdings, Inc. *		1,009,310
	21,372	UnitedHealth Group, Inc.		2,514,202
				4,531,731
		INSURANCE - 3.1%
	42,467	American International Group, Inc.		2,631,680
	37,949	Assured Guaranty Ltd.		1,002,992
	33,645	Marsh & McLennan Cos., Inc.		1,865,615
	23,373	Principal Financial Group, Inc.		1,051,318
	13,290	Prudential Financial, Inc.		1,081,939
	26,895	The Hartford Financial Services Group, Inc.		1,168,857
	39,165	XL Group PLC		1,534,485
				10,336,886
		INTERNET - 5.1%
	8,191	Alphabet, Inc. - Cl. A *		6,372,680
	2,639	Alphabet, Inc. - Cl.C *		2,002,684
	6,400	Amazon.com, Inc. *		4,325,696
	1,100	Expedia, Inc.		136,730
	22,336	Facebook, Inc. - Cl. A *		2,337,686
	1,417	The Priceline Group, Inc.*		1,806,604
				16,982,080
		IRON/STEEL - 0.1%
	3,450	Reliance Steel & Aluminum Co.		199,790

		LEISURE TIME - 0.2%
	11,271	Norwegian Cruise Line Holdings Ltd. *		660,481

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Shares			Value
		LODGING - 0.2%
	5,118	Las Vegas Sands Corp.	$	224,373
	6,895	Wyndham Worldwide Corp.		500,922
				725,295
		MEDIA - 2.0%
	51,006	Comcast Corp.		2,878,269
	3,414	Markit Ltd. *		103,000
	12,333	Time Warner Cable, Inc.		2,288,881
	50,146	Twenty-First Century Fox, Inc.		1,361,965
				6,632,115
		METAL FABRICATE/HARDWARE - 0.1%
	5,020	Tenaris SA - ADR		119,476

		MISCELLANEOUS MANUFACTURING - 1.3%
	8,485	Dover Corp.		520,215
	14,419	Eaton Corp. PLC		750,365
	22,980	General Electric Co.		715,827
	15,946	Illinois Tool Works, Inc.		1,477,875
	15,777	Pentair - PLC		781,435
				4,245,717
		OIL & GAS - 2.3%
	4,204	Anadarko Petroleum Corp.		204,230
	23,470	Cabot Oil & Gas Corp.		415,184
	97,781	Cobalt International Energy, Inc. *		528,017
	12,740	ConocoPhillips		594,831
	33,807	Continental Resources, Inc. *		776,885
	3,350	Ensco PLC		51,557
	830	EOG Resources, Inc.		58,756
	7,059	Hess Corp.		342,220
	12,260	Marathon Oil Corp.		635,558
	43,630	Newfield Exploration Co. *		1,420,593
	28,680	Oasis Petroleum, Inc. *		211,372
	12,247	Patterson-UTI Energy, Inc.		184,685
	21,919	PBF Energy, Inc.		806,838
	3,520	PDC Energy, Inc. *		187,898
	8,136	Pioneer Natural Resources Co.		1,020,092
	54,290	WPX Energy, Inc. *		311,625
				7,750,341
		OIL & GAS SERVICES - 0.3%
	700	Baker Hughes, Inc.		32,305
	12,310	Forum Energy Technologies, Inc. *		153,383
	17,907	Halliburton Co.		609,554
	17,450	Tesco Corp.		126,338
				921,580
		PACKAGING & CONTAINERS - 0.3%
	13,219	Ball Corp.		961,418
	10,732	Owens-Illinois, Inc. *		186,951
				1,148,369
		PHARMACEUTICALS - 4.5%
	13,454	Abbott Laboratories		604,219
	3,423	Aerie Pharmaceuticals, Inc. *		83,350
	8,231	Alkermes PLC *		653,377
	8,502	Allergan PLC *		2,656,875
	30,709	AstraZeneca PLC - ADR		1,042,571
	32,785	Bristol-Myers Squibb Co.		2,255,280
	7,513	Cardinal Health, Inc.		670,686
	1,100	Chiasma, Inc. *		21,527
	7,130	Dicerna Pharmaceuticals, Inc. *		84,633
	5,790	Eli Lilly & Co		487,865
	14,966	Ironwood Pharmaceuticals, Inc. - Cl. A *		173,456
	15,370	Johnson & Johnson		1,578,806
	7,366	McKesson Corp.		1,452,796
	35,415	Merck & Co., Inc.		1,870,620
	15,289	Mylan NV *		826,676
	5,900	MyoKardia, Inc. *		86,494

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Shares			Value
		PHARMACEUTICALS (Continued) - 4.5%
	3,055	Regulus Therapeutics, Inc. *	$	26,640
	1,767	Relypsa, Inc. *		50,077
	3,504	TESARO, Inc. *		183,329
	7,361	Tetraphase Pharmaceuticals, Inc. *		73,831
	15,851	Trevena, Inc. *		166,435
	1,800	Voyager Therapeutics, Inc. *		39,420
				15,088,963
		PIPELINES - 0.4%
	31,177	Enbridge, Inc.		1,034,765
	3,728	ONEOK, Inc.		91,932
	10,530	TransCanada Corp.		343,173
				1,469,870
		REAL ESTATE INVESTMENT TRUSTS - 2.1%
	16,216	American Tower Corp.		1,572,141
	10,107	AvalonBay Communities, Inc.		1,861,002
	5,142	Public Storage		1,273,673
	6,264	Simon Property Group, Inc.		1,217,972
	9,497	SL Green Realty Corp.		1,072,971
				6,997,759
		RETAIL - 3.2%
	12,218	Advance Auto Parts, Inc.		1,838,931
	6,379	Costco Wholesale Corp.		1,030,209
	18,941	CVS Health Corp.		1,851,862
	5,990	L Brands, Inc.		573,962
	16,869	McDonald’s Corp.		1,992,904
	3,234	Ross Stores, Inc.		174,022
	9,473	Signet Jewelers Ltd.		1,171,715
	16,299	Starbucks Corp.		978,429
	12,973	Walgreens Boots Alliance, Inc.		1,104,716
	300	Wingstop, Inc. *		6,843
				10,723,593
		SEMICONDUCTORS - 1.1%
	63,380	Applied Materials, Inc.		1,183,305
	7,020	Avago Technologies Ltd.		1,018,953
	1,780	Lam Research Corp.		141,368
	8,620	Linear Technology Corp.		366,091
	6,050	Microchip Technology, Inc.		281,567
	6,013	NXP Semiconductors NV *		506,595
	10,010	ON Semiconductor Corp. *		98,098
	900	Skyworks Solutions, Inc.		69,147
	13,750	SunEdison Semiconductor Ltd. *		107,800
				3,772,924
		SOFTWARE - 2.0%
	2,129	Envestnet, Inc. *		63,551
	96,672	Microsoft Corp.		5,363,363
	5,411	MSCI, Inc.		390,295
	5,950	ServiceNow, Inc. *		515,032
	5,427	SS&C Technologies Holdings, Inc.		370,501
				6,702,742
		TELECOMMUNICATIONS - 1.2%
	8,300	Arista Networks, Inc. *		646,072
	118,202	Cisco Systems, Inc.		3,209,775
				3,855,847
		TEXTILES - 0.5%
	8,348	Mohawk Industries, Inc. *		1,581,028

		TRANSPORTATION - 0.5%
	1,793	FedEx Corp.		267,139
	4,465	Genesee & Wyoming, Inc. *		239,726
	660	Kansas City Southern		49,282
	7,438	Knight Transportation, Inc.		180,223
	2,510	Norfolk Southern Corp.		212,321
	11,050	Swift Transportation Co. - Cl. A *		152,711

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Shares					Value
		TRANSPORTATION - 0.5% (Continued)
	4,040	United Parcel Service, Inc.			$	388,769
	7,800	XPO Logistics, Inc. *				212,550
						1,702,721
		TOTAL COMMON STOCKS (Cost - $193,436,921)				202,010,025

		PREFERRED STOCK - 0.0% **
		TELECOMMUNICATIONS - 0.0% **
	3,000	Verizon Communications, Inc. (Cost $75,000)				82,860

		EXCHANGE TRADED FUND - 1.5%
		EQUITY FUND - 1.5%
	23,876	SPDR S&P 500 ETF Trust (Cost - $4,737,354)				4,868,077

Principal Amount			Coupon Rate (%)	Maturity
		ASSET BACKED SECURITIES - 2.9%
$	101,000	Ally Master Owner Trust	1.33	3/15/2019		100,665
	100,000	Ally Master Owner Trust	1.60	10/15/2019		99,483
	116,000	AmeriCredit Automobile Receivables Trust 2013-5	1.52	1/8/2019		115,540
	45,819	AmeriCredit Automobile Receivables Trust 2014-1	0.90	2/8/2019		45,705
	120,000	AmeriCredit Automobile Receivables Trust 2014-1	2.15	3/9/2020		119,540
	145,000	AmeriCredit Automobile Receivables Trust 2014-2	1.60	7/8/2019		144,401
	250,000	Apidos CLO XXI (a)^	1.71	7/18/2027		246,937
	350,000	Apidos CLO XXII (a)^	2.39	10/20/2027		349,720
	300,000	Atrium XII (a)^	2.25	10/22/2026		299,013
	270,000	Babson CLO Ltd. 2015-I (a)^	1.75	4/20/2027		267,879
	325,000	BlueMountain CLO 2015-3 Ltd (a)^	1.81	10/20/2027		322,775
	225,000	Capital Auto Receivables Asset Trust 2015-3	1.72	1/22/2019		224,539
	225,000	CarMax Auto Owner Trust 2013-4	1.71	7/15/2019		223,983
	100,000	CarMax Auto Owner Trust 2013-4	1.95	9/16/2019		99,341
	150,000	Cent CLO 20 Ltd. (a)^	1.80	1/25/2026		148,039
	250,000	Cent CLO 21 Ltd. (a)^	1.81	7/27/2026		246,625
	250,000	Cent CLO 23 Ltd. (a)^	1.81	4/17/2026		248,057
	350,000	CIFC Funding 2014-II Ltd. (a)^	1.86	5/24/2026		346,201
	250,000	CNH Equipment Trust 2015-C	1.66	11/16/2020		249,370
	74,438	DB Master Finance LLC 2015-1 (a)	3.26	2/20/2045		73,655
	85,000	Drive Auto Receivables Trust 2015-B (a)	2.12	6/17/2019		84,811
	175,000	Drive Auto Receivables Trust 2015-D (a)	1.23	6/15/2018		174,820
	265,000	Dryden 41 Senior Loan Fund (a)^	2.49	1/15/2028		265,000
	86,152	Exeter Automobile Receivables Trust 2015-2 (a)	1.54	11/15/2019		85,769
	250,000	First Investors Auto Owner Trust 2014-1 (a)	1.49	1/15/2020		249,577
	65,000	First Investors Auto Owner Trust 2014-3 (a)	1.67	11/16/2020		64,596
	100,000	Ford Credit Auto Owner Trust 2012-A	1.88	8/15/2017		100,307
	100,000	Ford Credit Auto Owner Trust 2014-A	1.90	9/15/2019		100,101
	100,000	Ford Credit Floorplan Master Owner Trust A (a)	2.09	3/15/2022		99,777
	100,000	Ford Credit Floorplan Master Owner Trust A	2.31	2/15/2021		100,172
	145,000	Ford Credit Floorplan Master Owner Trust A	1.77	8/15/2020		144,915
	275,000	Galaxy XIX CLO Ltd. (a)^	1.87	1/24/2027		272,927
	190,000	Green Tree Agency Advance Funding Trust I Series 2015-T1 (a)	2.30	10/15/2046		189,666
	100,000	Hyundai Auto Receivables Trust 2013-A	1.13	9/17/2018		99,655
	60,000	Hyundai Auto Receivables Trust 2013-B	1.45	2/15/2019		59,884
	91,000	Hyundai Auto Receivables Trust 2013-B	1.71	2/15/2019		91,041
	92,000	Hyundai Auto Receivables Trust 2014-B	2.10	11/15/2019		91,079
	300,000	Madison Park Funding XI Ltd. (a)^	1.60	10/23/2025		294,690
	250,000	Madison Park Funding XV Ltd. (a)^	2.72	1/27/2026		250,326
	250,000	Magnetite XII Ltd. (a)^	1.82	4/15/2027		248,605
	225,000	NRZ Advance Receivables Trust Advance Receivables Backed 2015-T1 (a)	2.31	8/15/2046		225,038
	200,000	NRZ Advance Receivables Trust Advance Receivables Backed 2015-T3 (a)	2.54	11/15/2046		199,675
	225,000	Ocwen Master Advance Receivables Trust (a)	2.53	11/15/2046		224,978
	275,000	OZLM Funding V Ltd. (a)^	1.82	1/17/2026		273,536
	100,000	Prestige Auto Receivables Trust 2014-1 (a)	1.91	4/15/2020		98,979
	37,793	Santander Drive Auto Receivables Trust 2012-6	1.94	3/15/2018		37,844
	45,000	Santander Drive Auto Receivables Trust 2013-2	2.57	3/15/2019		45,288
	35,000	Santander Drive Auto Receivables Trust 2013-5	2.25	6/17/2019		35,125
	35,000	Santander Drive Auto Receivables Trust 2014-1	2.36	4/15/2020		35,055
	75,000	Santander Drive Auto Receivables Trust 2014-2	1.62	2/15/2019		75,009

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal Amount			Coupon Rate (%)	Maturity	Value
		ASSET BACKED SECURITIES - 2.9% (Continued)
$	35,000	Santander Drive Auto Receivables Trust 2014-4	1.82	5/15/2019	$	35,031
	80,000	Santander Drive Auto Receivables Trust 2015-1	1.97	11/15/2019		80,117
	125,000	Santander Drive Auto Receivables Trust 2015-4	1.20	12/17/2018		124,756
	325,000	Shackleton 2015-VIII CLO Ltd. (a)^	1.84	10/20/2027		321,999
	165,000	Springleaf Funding Trust 2015-A (a)	3.16	11/15/2024		163,823
	190,000	SPS Servicer Advance Receivables Trust Advance Receivables Backed Notes 2015-T3 (a)	2.92	7/15/2047		189,825
	250,000	Voya CLO 2014-2 Ltd. (a)^	1.77	7/17/2026		247,748
	300,000	Webster Park CLO Ltd. A-2 (a)	2.80	12/15/2026		297,900
	13,941	Westlake Automobile Receivables Trust 2014-2 (a)	0.97	10/16/2017		13,924
	105,000	Westlake Automobile Receivables Trust 2015-2 (a)	1.83	1/15/2021		104,030
		TOTAL ASSET BACKED SECURITIES (Cost - $9,896,898)				9,868,866

		CORPORATE BONDS - 9.0%
		AEROSPACE/DEFENSE - 0.2%
	100,000	BAE Systems Holdings, Inc. (a)	3.85	12/15/2025		98,997
	50,000	Lockheed Martin Corp.	2.50	11/23/2020		49,703
	147,000	Lockheed Martin Corp.	4.07	12/15/2042		136,037
	30,000	Lockheed Martin Corp.	4.50	5/15/2036		30,372
	75,000	Lockheed Martin Corp.	4.70	5/15/2046		76,828
	50,000	Lockheed Martin Corp.	4.85	9/15/2041		51,481
	125,000	Lockheed Martin Corp.	6.15	9/1/2036		149,062
						592,480
		AGRICULTURE - 0.3%
	230,000	BAT International Finance PLC (a)	2.75	6/15/2020		229,933
	20,000	BAT International Finance PLC (a)	3.50	6/15/2022		20,502
	216,000	Cargill, Inc. (a)	4.76	11/23/2045		219,174
	475,000	Imperial Tobacco Finance PLC (a)	3.75	7/21/2022		476,901
						946,510
		AUTO MANUFACTURERS - 0.3%
	450,000	Ford Motor Credit Co. LLC	3.16	8/4/2020		448,423
	100,000	Ford Motor Credit Co. LLC	6.63	8/15/2017		106,588
	275,000	General Motors Financial Co., Inc.	3.50	7/10/2019		275,921
	100,000	Nissan Motor Acceptance Corp. (a)	2.65	9/26/2018		101,257
						932,189
		BANKS - 2.4%
	300,000	Abbey National Treasury Services PLC	2.00	8/24/2018		299,533
	160,000	Bank of America Corp.	4.20	8/26/2024		158,748
	135,000	Bank of America Corp.	2.25	4/21/2020		131,742
	640,000	Bank of America Corp.	2.63	10/19/2020		631,949
	300,000	Banque Federative du Credit Mutuel SA (a)	2.75	10/15/2020		301,192
	100,000	Barclays Bank PLC	5.14	10/14/2020		108,520
	150,000	BB&T Corp.	2.45	1/15/2020		151,005
	50,000	BNP Paribas SA	2.38	9/14/2017		50,594
	200,000	BPCE SA (a)	5.15	7/21/2024		201,681
	300,000	Capital One Financial Corp.	3.20	2/5/2025		289,991
	105,000	Capital One Financial Corp.	4.20	10/29/2025		103,672
	50,000	Citigroup, Inc.	4.05	7/30/2022		51,143
	300,000	Citigroup, Inc.	3.50	5/15/2023		294,965
	55,000	Citigroup, Inc.	5.50	9/13/2025		59,702
	70,000	Citigroup, Inc.	3.30	4/27/2025		68,746
	185,000	Citizens Financial Group, Inc.	4.30	12/3/2025		185,973
	200,000	Credit Agricole SA (a)	4.38	3/17/2025		193,488
	50,000	Credit Suisse AG	5.40	1/14/2020		54,746
	395,000	Credit Suisse Group Funding Guernsey Ltd. (a)	3.80	9/15/2022		394,688
	250,000	Credit Suisse Group Funding Guernsey Ltd. (a)	3.13	12/10/2020		248,864
	45,000	Deutsche Bank AG	3.70	5/30/2024		44,819
	525,000	Discover Bank	3.10	6/4/2020		526,191
	300,000	Fifth Third Bank	2.15	8/20/2018		300,854
	60,000	HSBC Holdings PLC	4.00	3/30/2022		62,986
	200,000	Lloyds Bank PLC	3.50	5/14/2025		200,657
	110,000	Morgan Stanley	3.88	4/29/2024		112,132
	330,000	Morgan Stanley	3.95	4/23/2027		320,291

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal Amount			Coupon Rate (%)	Maturity	Value
		BANKS - 2.4% (Continued)
$	400,000	PNC Bank NA	2.60	7/21/2020	$	399,903
	120,000	Santander Holdings USA, Inc.	2.65	4/17/2020		117,728
	200,000	Santander Issuances SAU	5.18	11/19/2025		196,970
	200,000	Skandinaviska Enskilda Banken AB (a)	2.45	5/27/2020		198,668
	350,000	State Street Corp.	3.55	8/18/2025		360,999
	200,000	The Goldman Sachs Group, Inc.	3.50	1/23/2025		196,563
	85,000	The Goldman Sachs Group, Inc.	4.75	10/21/2045		84,437
	55,000	The Goldman Sachs Group, Inc.	4.80	7/8/2044		54,681
	50,000	The Goldman Sachs Group, Inc.	6.75	10/1/2037		58,447
	250,000	The Huntington National Bank	2.40	4/1/2020		246,744
	50,000	The PNC Financial Services Group, Inc.	3.90	4/29/2024		51,196
	250,000	UBS Group Funding Jersey Ltd. (a)	2.95	9/24/2020		247,666
	150,000	Wells Fargo & Co.	3.00	2/19/2025		145,899
	35,000	Wells Fargo & Co.	4.10	6/3/2026		35,329
						7,944,102
		BEVERAGES - 0.0% **
	55,000	Anheuser-Busch InBev Worldwide, Inc.	3.75	7/15/2042		47,256

		BIOTECHNOLOGY - 0.1%
	130,000	Biogen, Inc.	2.90	9/15/2020		129,658
	70,000	Celgene Corp.	3.55	8/15/2022		70,680
	50,000	Celgene Corp.	3.63	5/15/2024		49,175
	90,000	Gilead Sciences, Inc.	2.55	9/1/2020		89,966
	20,000	Gilead Sciences, Inc.	3.50	2/1/2025		20,167
	10,000	Gilead Sciences, Inc.	4.50	2/1/2045		9,782
						369,428
		CHEMICALS - 0.1%
	55,000	Agrium, Inc.	7.13	5/23/2036		66,079
	200,000	CF Industries, Inc.	7.13	5/1/2020		225,683
	150,000	LYB International Finance BV	4.88	3/15/2044		136,979
	40,000	Monsanto Co.	3.38	7/15/2024		38,136
						466,877
		COMMERCIAL SERVICES - 0.2%
	100,000	Catholic Health Initiatives	2.95	11/1/2022		97,538
	100,000	Catholic Health Initiatives	4.35	11/1/2042		93,531
	500,000	ERAC USA Finance, LLC (a)	3.30	10/15/2022		491,894
						682,963
		COMPUTERS - 0.0% **
	75,000	EMC Corp.	1.88	6/1/2018		69,981

		DIVERSIFIED FINANCIAL SERVICES - 0.4%
	50,000	American Express Co.	1.55	5/22/2018		49,610
	180,000	General Electric Capital Corp.	6.88	1/10/2039		245,353
	285,000	LeasePlan Corp NV (a)	2.88	1/22/2019		281,331
	350,000	Private Export Funding Corp.	3.25	6/15/2025		359,333
	155,000	Synchrony Financial	2.60	1/15/2019		154,443
	15,000	Synchrony Financial	2.70	2/3/2020		14,712
	205,000	Synchrony Financial	3.75	8/15/2021		204,776
						1,309,558
		ELECTRIC - 0.5%
	200,000	Appalachian Power Co.	3.40	6/1/2025		195,169
	150,000	Berkshire Hathaway Energy Co.	4.50	2/1/2045		144,119
	60,000	Consolidated Edison Co. of New York, Inc.	4.63	12/1/2054		59,037
	175,000	Duke Energy Carolinas LLC	6.10	6/1/2037		211,613
	225,000	Duke Energy Corp.	3.75	4/15/2024		227,969
	10,000	Eversource Energy	3.15	1/15/2025		9,761
	450,000	NextEra Energy Capital Holdings, Inc.	2.06	9/1/2017		450,419
	75,000	Pacific Gas & Electric Co.	3.40	8/15/2024		75,273
	50,000	PPL Capital Funding, Inc.	3.50	12/1/2022		50,371
	150,000	South Carolina Electric & Gas Co.	5.10	6/1/2065		156,343
	225,000	The Southern Co.	2.75	6/15/2020		222,713
						1,802,787

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal Amount			Coupon Rate (%)	Maturity	Value
		ENGINEERING & CONSTRUCTION - 0.1%
$	50,000	SBA Tower Trust (a)	2.90	10/15/2019	$	48,860
	255,000	SBA Tower Trust (a)	3.16	10/15/2020		250,861
						299,721
		FOOD - 0.2%
	165,000	HJ Heinz Co. (a)	3.50	7/15/2022		166,138
	375,000	The Kroger Co.	2.95	11/1/2021		371,168
	15,000	Tyson Foods, Inc.	2.65	8/15/2019		15,008
						552,314
		GAS - 0.0% **
	125,000	Dominion Gas Holdings LLC	3.60	12/15/2024		123,701

		HEALTHCARE-PRODUCTS - 0.2%
	325,000	Boston Scientific Corp.	3.38	5/15/2022		320,614
	205,000	Medtronic, Inc.	3.50	3/15/2025		206,675
	80,000	Medtronic, Inc.	4.38	3/15/2035		80,867
						608,156
		HEALTHCARE-SERVICES - 0.3%
	75,000	Anthem, Inc.	3.50	8/15/2024		73,229
	150,000	Anthem, Inc.	4.65	8/15/2044		142,964
	25,000	Dignity Health	3.81	11/1/2024		25,405
	75,000	Kaiser Foundation Hospitals	3.50	4/1/2022		76,205
	30,000	Memorial Sloan-Kettering Cancer Center	4.20	7/1/2055		28,881
	50,000	Memorial Sloan-Kettering Cancer Center	5.00	7/1/2042		53,548
	100,000	The City of Hope	5.62	11/15/2043		112,450
	35,000	The New York and Presbyterian Hospital	4.02	8/1/2045		33,089
	135,000	The Toledo Hospital	4.98	11/15/2045		141,900
	80,000	Trinity Health Corp.	4.13	12/1/2045		75,826
	300,000	United Health Group, Inc.	2.88	3/15/2023		296,812
	45,000	United Health Group, Inc.	3.35	7/15/2022		46,028
	75,000	United Health Group, Inc.	3.75	7/15/2025		77,316
						1,183,653
		INSURANCE - 0.3%
	50,000	ACE INA Holdings, Inc.	2.30	11/3/2020		49,581
	75,000	ACE INA Holdings, Inc.	3.35	5/15/2024		75,710
	140,000	ACE INA Holdings, Inc.	4.35	11/3/2045		142,258
	50,000	American International Group, Inc.	4.88	6/1/2022		53,997
	45,000	American International Group, Inc.	3.88	1/15/2035		39,691
	150,000	Principal Financial Group, Inc.	3.40	5/15/2025		147,043
	250,000	The Hartford Financial Services Group, Inc.	5.50	3/30/2020		276,748
	125,000	Teachers Insurance & Annuity Association of America (a)	4.90	9/15/2044		126,261
						911,289
		INTERNET - 0.2%
	400,000	Alibaba Group Holding Ltd.	2.50	11/28/2019		390,783
	265,000	Amazon.com, Inc.	4.80	12/5/2034		279,012
	195,000	Expedia, Inc. (a)	5.00	2/15/2026		190,308
						860,103
		LODGING - 0.1%
	225,000	Marriott International, Inc.	2.88	3/1/2021		223,232

		MACHINERY - CONSTRUCTION AND MINING - 0.0% **
	45,000	Caterpillar, Inc.	4.30	5/15/2044		43,457

		MEDIA - 0.3%
	50,000	21st Century Fox America, Inc.	3.70	9/15/2024		50,413
	60,000	CCO Safari II LLC (a)	6.48	10/23/2045		60,098
	100,000	Comcast Corp.	6.40	3/1/2040		124,112
	275,000	Cox Communications, Inc. (a)	4.80	2/1/2035		227,497
	30,000	DIRECTV Holdings, LLC / DIRECTV Financing Co., Inc.	3.95	1/15/2025		29,574
	100,000	NBCUniversal Media, LLC	2.88	1/15/2023		99,295
	250,000	Sky PLC (a)	3.75	9/16/2024		244,169
	275,000	Time Warner, Inc.	4.88	3/15/2020		297,325
	50,000	Viacom, Inc.	4.25	9/1/2023		48,339
						1,180,822

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal Amount			Coupon Rate (%)	Maturity	Value
		MINING - 0.1%
$	225,000	BHP Billiton Finance USA Ltd.	3.85	9/30/2023	$	213,034

		MISCELLANEOUS MANUFACTURING - 0.2%
	10,000	Parker-Hannifin Corp.	4.45	11/21/2044		10,393
	225,000	Pentair Finance SA	2.90	9/15/2018		223,993
	50,000	Pentair Finance SA	3.15	9/15/2022		47,037
	250,000	Siemens Financieringsmaatschappij NV (a)	2.90	5/27/2022		249,901
						531,324
		OIL & GAS - 0.5%
	105,000	BP Capital Markets PLC	2.32	2/13/2020		103,452
	75,000	BP Capital Markets PLC	3.51	3/17/2025		72,630
	50,000	Cenovus Energy, Inc.	3.80	9/15/2023		45,272
	70,000	ConocoPhillips Co.	2.88	11/15/2021		67,975
	45,000	ConocoPhillips Co.	3.35	5/15/2025		40,666
	100,000	Devon Energy Corp.	5.00	6/15/2045		75,790
	210,000	Devon Energy Corp.	5.85	12/15/2025		204,234
	50,000	Encana Corp.	6.50	5/15/2019		48,749
	50,000	Marathon Oil Corp.	5.90	3/15/2018		50,566
	170,000	Phillips 66	4.88	11/15/2044		151,668
	190,000	Pioneer Natural Resources Co.	4.45	1/15/2026		171,079
	225,000	Pioneer Natural Resources Co.	7.50	1/15/2020		238,974
	50,000	Rowan Cos., Inc.	4.75	1/15/2024		35,556
	225,000	Shell International Finance BV	4.13	5/11/2035		214,769
	230,000	Sinopec Group Overseas Development 2015 Ltd. (a)	2.50	4/28/2020		226,263
	60,000	Suncor Energy, Inc.	3.60	12/1/2024		56,513
						1,804,156
		OIL & GAS SERVICES - 0.1%
	120,000	Halliburton Co.	3.38	11/15/2022		118,096
	110,000	Schlumberger Holdings Corp. (a)	3.00	12/21/2020		108,579
						226,675
		PHARMACEUTICALS - 0.4%
	50,000	AbbVie, Inc.	3.20	11/6/2022		49,217
	35,000	Actavis Funding SCS	3.80	3/15/2025		34,821
	50,000	Actavis Funding SCS	3.85	6/15/2024		50,089
	100,000	Actavis Funding SCS	4.55	3/15/2035		97,186
	275,000	Bayer US Finance LLC (a)	2.38	10/8/2019		275,173
	170,000	Cardinal Health, Inc.	3.20	3/15/2023		167,840
	35,000	Cardinal Health, Inc.	4.50	11/15/2044		33,782
	95,000	EMD Finance LLC (a)	2.95	3/19/2022		91,661
	135,000	EMD Finance LLC (a)	3.25	3/19/2025		128,000
	150,000	Merck & Co., Inc.	2.75	2/10/2025		146,026
	220,000	Mylan NV (a)	3.00	12/15/2018		219,514
						1,293,309
		PIPELINES - 0.2%
	65,000	Columbia Pipeline Group, Inc. (a)	2.45	6/1/2018		63,552
	130,000	Enterprise Products Operating LLC	5.10	2/15/2045		108,893
	100,000	Phillips 66 Partners LP	3.61	2/15/2025		86,024
	125,000	Regency Energy Partners LP / Regency Energy Finance Corp.	5.88	3/1/2022		117,820
	275,000	Sunoco Logistics Partners Operations LP	4.40	4/1/2021		266,495
	200,000	Western Gas Partners LP	4.00	7/1/2022		176,903
						819,687
		REAL ESTATE - 0.1%
	275,000	WEA Finance LLC / Westfield UK & Europe Finance PLC (a)	3.25	10/5/2020		276,052

		REAL ESTATE INVESTMENT TRUSTS - 0.3%
	300,000	American Tower Corp.	3.45	9/15/2021		301,471
	50,000	AvalonBay Communities, Inc.	2.95	9/15/2022		49,570
	150,000	DDR Corp.	4.63	7/15/2022		154,967
	75,000	HCP, Inc.	3.88	8/15/2024		72,692
	200,000	HCP, Inc.	4.00	6/1/2025		195,283
	260,000	Scentre Group Trust 1/Scentre Group Trust 2 (a)	2.38	11/5/2019		256,490
						1,030,473

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal Amount			Coupon Rate (%)	Maturity	Value
		RETAIL - 0.3%
$	50,000	AutoZone, Inc.	2.88	1/15/2023	$	48,324
	300,000	Auto Zone, Inc.	3.13	7/15/2023		294,262
	250,000	CVS Health Corp.	4.00	12/5/2023		259,805
	115,000	CVS Health Corp.	4.88	7/20/2035		118,736
	130,000	CVS Health Corp.	5.13	7/20/2045		136,946
	200,000	O’Reilly Automotive, Inc.	3.80	9/1/2022		202,423
	100,000	The Home Depot, Inc.	2.00	6/15/2019		100,701
						1,161,197
		SOFTWARE - 0.1%
	225,000	Oracle Corp.	2.80	7/8/2021		227,904

		TELECOMMUNICATIONS - 0.3%
	20,000	AT&T, Inc.	4.50	5/15/2035		18,497
	150,000	Crown Castle Towers LLC (a)	3.22	5/15/2022		147,999
	120,000	GTP Acquisition Partners I LLC (a)	2.35	6/15/2020		116,369
	200,000	Orange SA	9.00	3/1/2031		282,286
	334,000	Verizon Communications, Inc.	4.52	9/15/2048		298,695
	4,000	Verizon Communications, Inc.	6.40	9/15/2033		4,557
						868,403
		TOYS/GAMES/HOBBIES - 0.0% **
	50,000	Mattel, Inc.	2.35	5/6/2019		49,576

		TRANSPORTATION - 0.1%
	225,000	FedEx Corp.	8.00	1/15/2019		261,928
	100,000	Kansas City Southern (a)	4.95	8/15/2045		97,924
						359,852
		TRUCKING & LEASING - 0.1%
	150,000	Penske Truck Leasing Co LP / PTL Finance Corp. (a)	3.20	7/15/2020		148,495
	50,000	Penske Truck Leasing Co LP / PTL Finance Corp. (a)	4.88	7/11/2022		52,005
						200,500

		TOTAL CORPORATE BONDS (Cost $30,662,282)				30,212,721

		COMMERCIAL MORTGAGE BACKED SECURITIES - 0.8%
	65,000	Banc of America Commercial Mortgage Trust 2015-UBS7	3.71	9/15/2048		66,417
	265,000	Citigroup Commercial Mortgage Trust 2015-GC35	3.82	11/10/2048		271,523
	130,000	COMM 2013-CCRE8 Mortgage Trust	3.33	6/10/2046		131,820
	125,000	CSAIL 2015-C1 Commercial Mortgage Trust	3.51	4/15/2050		125,745
	225,000	CSAIL 2015-C3 Commercial Mortgage Trust	3.72	8/15/2048		227,938
	465,000	Fannie Mae Multifamily Remic Trust 2015-M12 ^	2.79	5/25/2025		458,181
	300,000	GS Mortgage Securities Trust 2015-GS1	3.73	11/10/2048		305,749
	30,802	JP Morgan Chase Commercial Mortgage Securities Trust 2006-LDP8	5.40	5/15/2045		30,979
	96,307	JP Morgan Chase Commercial Mortgage Securities Trust 2007-CIBC19^	5.69	2/12/2049		99,333
	101,619	JP Morgan Chase Commercial Mortgage Securities Trust 2007-CIBC20^	5.79	2/12/2051		105,632
	98,896	LB-UBS Commercial Mortgage Trust 2006-C6	5.37	9/15/2039		100,329
	22,283	LB-UBS Commercial Mortgage Trust 2008-C1^	6.09	4/15/2041		23,470
	77,361	ML-CFC Commercial Mortgage Trust 2007-7^	5.74	6/12/2050		80,281
	116,653	ML-CFC Commercial Mortgage Trust 2007-9	5.70	9/12/2049		121,344
	90,000	Morgan Stanley Bank of America Merrill Lynch Trust 2015-C22	3.31	4/15/2048		88,648
	100,000	SFAVE Commerical Mortgage Securities Trust 2015-5AVE (a)^	4.14	1/5/2035		94,605
	95,095	Wachovia Bank Commercial Mortgage Trust Series 2006-C29	5.31	11/15/2048		96,394
	125,000	Wells Fargo Commercial Mortgage Trust 2015-LC22	3.84	9/15/2058		128,293
	250,000	Wells Fargo Commercial Mortgage Trust 2015-NXS1	3.15	5/15/2048		244,283
		TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES (Cost - $2,856,094)				2,800,964

		MORTGAGE BACKED SECURITIES - 6.9%
		FEDERAL HOME LOAN MORTGAGE CORP. - 3.1%
	100,000	Freddie Mac +	2.50	1/1/2030		100,887
	200,000	Freddie Mac +	3.00	1/1/2030		206,095
	1,425,000	Freddie Mac +	3.50	1/15/2045		1,466,873
	525,000	Freddie Mac +	4.00	1/15/2045		554,603
	175,000	Freddie Mac +	4.50	1/1/2044		188,519
	50,000	Freddie Mac +	5.00	1/1/2044		54,615
	50,000	Freddie Mac +	5.50	1/1/2044		55,299

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal Amount			Coupon Rate (%)	Maturity	Value
		FEDERAL HOME LOAN MORTGAGE CORP. - 3.1% (Continued)
$	32,094	Freddie Mac Gold Pool	2.50	10/1/2028	$	32,632
	590,723	Freddie Mac Gold Pool	3.00	3/1/2045		590,229
	3,146,451	Freddie Mac Gold Pool	3.00	9/1/2045		3,143,820
	2,007,486	Freddie Mac Gold Pool	3.00	7/1/2045		2,005,808
	1,528,038	Freddie Mac Gold Pool	3.00	8/1/2045		1,526,761
	18,006	Freddie Mac Gold Pool	3.00	9/1/2028		18,589
	58,143	Freddie Mac Gold Pool	3.00	2/1/2043		58,182
	49,849	Freddie Mac Gold Pool	3.50	10/1/2043		51,358
	176,214	Freddie Mac Gold Pool	3.50	11/1/2034		183,914
	40,790	Freddie Mac Gold Pool	4.00	8/1/2044		43,125
						10,281,309

		FEDERAL NATIONAL MORTGAGE ASSOCIATION - 3.2%
	650,000	Fannie Mae +	2.50	1/1/2030		654,914
	1,475,000	Fannie Mae +	3.00	1/1/2027		1,519,461
	200,000	Fannie Mae +	3.50	1/1/2026		209,445
	3,025,000	Fannie Mae +	3.50	1/15/2045		3,120,963
	100,000	Fannie Mae +	4.00	1/16/2030		104,266
	875,000	Fannie Mae +	4.00	1/1/2045		925,900
	675,000	Fannie Mae +	4.50	1/1/2044		728,916
	375,000	Fannie Mae +	5.00	1/1/2044		412,755
	300,000	Fannie Mae +	5.50	1/1/2044		334,417
	75,000	Fannie Mae +	6.00	1/1/2044		84,737
	158,225	Fannie Mae Pool	2.47	5/1/2025		153,782
	42,337	Fannie Mae Pool	2.50	4/1/2028		42,897
	310,000	Fannie Mae Pool	2.68	5/1/2025		303,399
	400,000	Fannie Mae Pool	2.81	7/1/2025		395,185
	110,000	Fannie Mae Pool	2.99	10/1/2025		110,305
	112,292	Fannie Mae Pool	3.00	7/1/2043		112,526
	1,279,791	Fannie Mae Pool	3.00	9/1/2045		1,280,902
	29,242	Fannie Mae Pool	3.00	10/1/2028		30,194
	54,864	Fannie Mae Pool	3.09	10/1/2025		55,532
	63,623	Fannie Mae Pool	4.00	11/1/2043		67,348
						10,647,844
		GOVERNMENT NATIONAL MORTGAGE ASSOCIATION - 0.6%
	675,000	Ginnie Mae +	3.50	1/1/2045		703,661
	425,000	Ginnie Mae +	4.00	1/15/2045		451,201
	350,000	Ginnie Mae +	4.50	1/1/2044		376,031
	50,000	Ginnie Mae +	5.00	1/1/2044		54,775
	100,000	Ginnie Mae +	5.00	1/15/2045		108,238
	67,985	Ginnie Mae II Pool	3.00	12/20/2042		69,173
	341,059	Ginnie Mae II Pool	3.00	4/20/2045		346,148
	79,001	Ginnie Mae II Pool	3.50	7/20/2043		82,575
	37,454	Ginnie Mae II Pool	4.00	12/20/2044		39,798
						2,231,600
		TOTAL MORTGAGE BACKED SECURITIES (Cost - $23,223,210)				23,160,753

		MUNICIPAL SECURITIES - 0.6%
	115,000	Bay Area Toll Authority	7.04	4/1/2050		158,513
	90,000	Chicago O’Hare International Airport	6.40	1/1/2040		113,323
	25,000	Chicago Transit Authority	6.90	12/1/2040		29,055
	45,000	Chicago Transit Authority	6.90	12/1/2040		52,300
	165,000	Kansas Development Finance Authority	4.93	4/15/2045		164,038
	120,000	Long Island Power Authority	3.88	9/1/2024		122,695
	60,000	Los Angeles Community College District	6.60	8/1/2042		81,275
	100,000	Metropolitan Transportation Authority	6.81	11/15/2040		132,466
	115,000	Municipal Electric Authority of Georgia	6.64	4/1/2057		138,013
	230,000	New Jersey Economic Development Authority	3.80	6/15/2018		228,882
	100,000	Port Authority of New York & New Jersey	5.65	11/1/2040		118,239
	70,000	Port Authority of New York & New Jersey	4.81	10/15/2065		71,171
	115,000	Regents of the University of California Medical Center Pooled Revenue	6.58	5/15/2049		148,572
	40,000	Regents of the University of California Medical Center Pooled Revenue	6.55	5/15/2048		51,340
	50,000	State of California	7.55	4/1/2039		72,625

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Principal Amount			Coupon Rate (%)	Maturity	Value
		MUNICIPAL SECURITIES - 0.6% (Continued)
$	35,000	State of California	7.60	11/1/2040	$	51,949
	370,000	State of Illinois	5.10	6/1/2033		349,890
	35,000	University of California	3.93	5/15/2045		33,909
		TOTAL MUNICIPAL SECURITIES (Cost - $2,127,192)				2,118,255

		U.S. TREASURY SECURITIES - 10.8%
	2,750,000	United States Treasury Note	0.50	1/31/2017		2,739,902
	990,300	United States Treasury Note	0.63	9/30/2017		983,453
	3,550,000	United States Treasury Note	0.63	11/30/2017		3,520,602
	3,080,000	United States Treasury Note	0.75	10/31/2017		3,063,639
	685,000	United States Treasury Note	0.75	12/31/2017		680,371
	700,000	United States Treasury Note	0.75	3/31/2018		693,739
	1,695,000	United States Treasury Note	0.88	4/30/2017		1,694,271
	2,640,000	United States Treasury Note	1.38	7/31/2018		2,650,106
	2,260,000	United States Treasury Note	1.38	12/31/2018		2,261,677
	2,220,000	United States Treasury Note	1.38	2/28/2019		2,218,526
	1,250,000	United States Treasury Note	1.38	9/30/2020		1,228,417
	1,465,000	United States Treasury Note	1.50	11/30/2019		1,459,163
	945,000	United States Treasury Note	1.63	6/30/2020		941,124
	3,790,000	United States Treasury Note	2.00	2/15/2025		3,704,873
	1,225,000	United States Treasury Note	2.13	5/15/2025		1,209,017
	1,770,000	United States Treasury Note	2.38	7/31/2017		1,807,336
	2,400	United States Treasury Note	2.38	8/15/2024		2,425
	2,800,000	United States Treasury Bond	2.50	2/15/2045		2,512,236
	1,125,000	United States Treasury Bond	3.00	11/15/2044		1,120,913
	1,580,000	United States Treasury Bond	3.38	5/15/2044		1,695,661
	5,000	United States Treasury Bond	3.63	8/15/2043		5,631
	5,000	United States Treasury Bond	3.75	11/15/2043		5,759
		TOTAL U.S. TREASURY SECURITIES (Cost - $36,410,206)				36,198,841

Shares
		SHORT-TERM INVESTMENTS - 6.9%
		MONEY MARKET FUND - 5.1%
	17,078,966	Fidelity Institutional Money Market - Money Market Portfolio, Institutional Class to yield 0.28% (b)				17,078,966

Principal Amount
		U.S. GOVERNMENT AGENCIES - 1.8%
$	3,700,000	Federal Home Loan Bank^#	0.00	1/13/2016		3,699,840
	2,200,000	Federal Home Loan Bank^#	0.00	1/14/2016		2,199,895
						5,899,735

		TOTAL SHORT-TERM INVESTMENTS (Cost - $22,978,701)				22,978,701

		TOTAL INVESTMENTS - 99.7% (Cost - $326,403,858)(c)			$	334,300,063
		OTHER ASSETS LESS LIABILITIES - NET - 0.3%				950,280
		TOTAL NET ASSETS - 100.0%			$	335,250,343

All or a portion of these To Be Announced Securities (TBAs) are subject to dollar-roll transactions.

Non-income producing security.

Represents less than 0.01%

Variable rate security.

Represents discount rate at time of purchase.

ADR - American Depositary Receipt

LP - Limited Partnership

REIT - Real Estate Investment Trust

(a)

(b)

Money market rate shown represents the rate at December 31, 2015.

(c)

Represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $327,245,178 and differs from market value by net unrealized appreciation (depreciation) of securities as follows:

Unrealized Appreciation:		14,756,481
Unrealized Depreciation:		(7,701,596	)
Net Unrealized Appreciation:	$	7,054,885

See accompanying notes to financial statements.

FVIT Wellington Research Managed Risk Portfolio

PORTFOLIO OF INVESTMENTS (Continued)

December 31, 2015

Contracts			Unrealized Depreciation
		SHORT FUTURES CONTRACTS
	2	MSCI Emerging Market E-Mini Future March 2016
		(Underlying Face Amount at Value $78,750)	$	(2,800	)
		NET UNREALIZED DEPRECIATION ON SHORT FUTURES CONTRACTS	$	(2,800	)

			Fixed Received Rate
Notional Amount $		CREDIT DEFAULT SWAP	(%)	Expiration	Unrealized Depreciation
	670,000	CMBX.NA.AAA - Counterparty “Barclays Bank PLC”	0.50	10/17/2057	$	(8,753	)

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Assets and Liabilities

December 31, 2015

	FVIT American			FVIT Balanced			FVIT BlackRock
	Funds® Managed Risk			Managed Risk			Global Allocation
Assets:	Portfolio			Portfolio			Managed Risk Portfolio
Investments in securities, at cost	$	194,151,492		$	79,896,592		$	294,886,109
Investments in securities, at value	$	182,037,822		$	79,863,973		$	259,442,372
Deposits with broker +		9,389,820			4,101,745			13,359,418
Receivable for Portfolio shares sold		142,997			2,223			460,339
Interest and dividends receivable		317			27,275			22
Total Assets		191,570,956			83,995,216			273,262,151
Liabilities:
Payable for securities purchased		246,238			609,971			503,095
Payable for portfolio shares redeemed		11,758			7,868			11,600
Accrued investment advisory fees		88,510			40,450			62,948
Accrued distribution (12b-1) fees		40,361			17,662			57,022
Administrative service fees payable		22,109			8,999			29,425
Total Liabilities		408,976			684,950			664,090
Net Assets	$	191,161,980		$	83,310,266		$	272,598,061

Net Assets:
Paid in capital	$	194,392,267		$	83,677,472		$	298,920,511
Undistributed net investment income		2,759,817			819,686			3,758,376
Accumulated net realized gain/(loss) on investments and futures contracts		6,123,566			(1,154,273	)		5,362,911
Net unrealized appreciation (depreciation) on investments and futures contracts		(12,113,670	)		(32,619	)		(35,443,737	)
Net Assets	$	191,161,980		$	83,310,266		$	272,598,061
Class II Shares:
Net assets	$	191,161,980		$	83,310,266		$	272,598,061
Total shares outstanding at end of year ($0 par value, unlimited shares authorized)		18,080,442			7,812,187			29,154,124

Net asset value, offering and redemption price per share
(Net assets ÷ Total shares of beneficial interest outstanding)	$	10.57		$	10.66		$	9.35

Collateral for futures contracts.

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Assets and Liabilities (Continued)

December 31, 2015

	FVIT Franklin			FVIT Goldman Sachs			FVIT Growth
	Dividend and Income			Dynamic Trends Allocation			Managed Risk
Assets:	Managed Risk Portfolio			Portfolio			Portfolio
Investments in securities, at cost	$	160,142,447		$	17,917,505		$	447,577,664
Investments in securities, at value	$	155,810,152		$	17,904,632		$	442,208,500
Foreign cash (Cost $0, $130, $0, respectively)		—			129			—
Deposits with broker +		5,684,728			207,151			22,861,749
Unrealized appreciation on futures contracts		—			—			43,460
Receivable for Portfolio shares sold		389,856			52,911			370,207
Receivable for securities sold		—			455			—
Interest and dividends receivable		468,654			30,770			212,219
Total Assets		162,353,390			18,196,048			465,696,135
Liabilities:
Due to custodian - foreign cash (Cost $0, $11, $0, respectively)		—			11			—
Due to broker - options		—			491			—
Options written (Cost $0, $17,291, $0, respectively)		—			6,016			—
Unrealized depreciation on futures contracts		47,965			3,248			—
Payable for Portfolio shares redeemed		8,544			202			30,197
Payable for securities purchased		—			1,922,597			3,945,546
Accrued investment advisory fees		109,698			10,067			218,451
Accrued distribution (12b-1) fees		34,388			3,138			97,389
Administrative service fees payable		8,666			1,749			49,438
Total Liabilities		209,261			1,947,519			4,341,021
Net Assets	$	162,144,129		$	16,248,529		$	461,355,114

Net Assets:
Paid in capital	$	170,735,651		$	16,802,754		$	483,048,738
Undistributed net investment income		1,543,994			756			4,732,844
Accumulated net realized loss on investments, futures contracts, options and foreign currency translations		(5,755,256	)		(550,106	)		(21,100,764	)
Net unrealized depreciation on investments, futures contracts, options and foreign currency translations		(4,380,260	)		(4,875	)		(5,325,704	)
Net Assets	$	162,144,129		$	16,248,529		$	461,355,114

Class II Shares:
Net assets	$	162,144,129		$	16,248,529		$	461,355,114
Total shares outstanding at end of year ($0 par value, unlimited shares authorized)		16,573,557			1,713,437			46,560,570

Net asset value, offering and redemption price per share
(Net assets ÷ Total shares of beneficial interest outstanding)	$	9.78		$	9.48		$	9.91

Collateral for futures contracts and options contracts.

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Assets and Liabilities (Continued)

December 31, 2015

	FVIT Moderate Growth			FVIT PIMCO			FVIT Select Advisor
	Managed Risk			Tactical Allocation			Managed Risk
Assets:	Portfolio			Portfolio			Portfolio
Investments in securities, at cost	$	123,844,403		$	14,943,506		$	101,656,058
Investments in securities, at value	$	122,533,266		$	14,966,909		$	100,440,829
Cash	$	—		$	34,388
Foreign cash (Cost: $0, $77,981, $0, respectively)		—			21,635			—
Deposits with broker +		6,285,017			256,704			5,195,759
Unrealized appreciation on futures contracts		—			—			40
Interest and dividends receivable		48,370			41,813			88,220
Receivable for Portfolio shares sold		25,189			18,731			197,528
Receivable for securities sold		—			130,213			—
Premiums paid on open swap contracts		—			50,326			—
Receivable on swaps		—			23,540			—
Total Assets		128,891,842			15,544,259			105,922,376
Liabilities:
Unrealized depreciation on futures contracts		—			32,959			—
Unrealized depreciation on swaption and swap contract		—			15,684			—
Unrealized depreciation on forward foreign currency contracts		—			2,882			—
Payable for securities purchased		1,057,004			2,263,825			137,050
Payable for Portfolio shares redeemed		6,920			112			6,689
Accrued investment advisory fees		61,766			9,112			28,637
Accrued distribution (12b-1) fees		26,935			2,895			22,384
Administrative service fees payable		13,939			1,637			11,521
Total Liabilities		1,166,564			2,329,106			206,281
Net Assets	$	127,725,278		$	13,215,153		$	105,716,095

Net Assets:
Paid in capital	$	130,406,911		$	13,817,834		$	107,596,158
Undistributed net investment income (loss)		1,264,326			(2,455	)		1,256,183
Accumulated net realized loss on investments, futures contracts, options and swap contracts		(2,634,822	)		(571,775	)		(1,921,057	)
Net unrealized appreciation(depreciation) on investments, options written and swap contracts		(1,311,137	)		(28,451	)		(1,215,189	)
Net Assets	$	127,725,278		$	13,215,153		$	105,716,095

Class II Shares:
Net assets	$	127,725,278		$	13,215,153		$	105,716,095
Total shares outstanding at end of year ($0 par value, unlimited shares authorized)		12,516,218			1,397,928			9,955,886

Net asset value, offering and redemption price per share
(Net assets ÷ Total shares of beneficial interest outstanding)	$	10.20		$	9.45		$	10.62

Collateral for forward foreign currency contracts, futures contracts and options contracts.

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Assets and Liabilities (Continued)

December 31, 2015

	FVIT Wellington Research
	Managed Risk
Assets:	Portfolio
Investments in securities, at cost	$	326,403,858
Investments in securities, at value	$	334,300,063
Cash		7,225
Deposits with broker +		13,423,837
Interest and dividends receivable		761,203
Receivable for Portfolio shares sold		745,522
Receivable for securities sold		204,846
Total Assets		349,442,696
Liabilities:
Unrealized depreciation on swap contract		8,753
Unrealized depreciation on futures contracts		2,800
Payable for securities purchased		13,821,361
Payable for Portfolio shares redeemed		9,230
Accrued investment advisory fees		244,497
Accrued distribution (12b-1) fees		69,485
Administrative service fees payable		36,227
Total Liabilities		14,192,353
Net Assets	$	335,250,343

Net Assets:
Paid in capital	$	333,812,940
Undistributed net investment income		1,048,381
Accumulated net realized loss on investments and futures contracts		(7,495,576	)
Net unrealized appreciation on investments, futures contracts, and swap contract		7,884,598
Net Assets	$	335,250,343

Class II Shares:
Net assets	$	335,250,343
Total shares outstanding at end of year ($0 par value, unlimited shares authorized)		29,616,585

Net asset value, offering and redemption price per share
(Net assets ÷ Total shares of beneficial interest outstanding)	$	11.32

Collateral for futures contracts.

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Operations

For the Year Ended December 31, 2015

	FVIT American			FVIT Balanced			FVIT BlackRock Global
	Funds® Managed Risk			Managed Risk			Allocation Managed Risk
	Portfolio			Portfolio			Portfolio
Investment Income:
Dividend income	$	4,158,315		$	1,463,008		$	5,086,600
Interest income		8,138			1,742			922
Total Investment Income		4,166,453			1,464,750			5,087,522
Expenses:
Investment advisory fees		1,469,254			389,123			2,096,335
Distribution fees (12b-1) - Class II Shares		408,126			176,874			582,315
Administrative service fees		191,796			84,756			270,570
Total Expenses		2,069,176			650,753			2,949,220
Expenses waived		(663,769	)		(6,116	)		(1,620,149	)
Net Expenses		1,405,407			644,637			1,329,071
Net Investment Income		2,761,046			820,113			3,758,451
Net Realized and Unrealized Gain/(Loss) on Investments and Futures Contracts
Net realized gain/(loss) on:
Investments		(1,227,382	)		(119,756	)		(264,712	)
Futures contracts		(3,305,880	)		(726,927	)		(5,696,111	)
Distributions of realized gains by underlying investment companies		10,860,044			—			11,289,612
		6,326,782			(846,683	)		5,328,789
Net change in unrealized appreciation/(depreciation) on:
Investments		(13,312,753	)		(1,103,143	)		(20,099,759	)
Futures contracts		21,968			(21,753	)		35,223
		(13,290,785	)		(1,124,896	)		(20,064,536	)
Net Realized and Unrealized Loss on Investments and Futures Contracts		(6,964,003	)		(1,971,579	)		(14,735,747	)
Net Decrease in Net Assets Resulting from Operations	$	(4,202,957	)	$	(1,151,466	)	$	(10,977,296	)

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Operations (Continued)

For the Year or Period Ended December 31, 2015

	FVIT Franklin			FVIT Goldman Sachs			FVIT Growth
	Dividend and Income			Dynamic Trends			Managed Risk
	Managed Risk Portfolio			Allocation Portfolio *			Portfolio
Investment Income:
Dividend income	$	3,019,599	**	$	24,648		$	8,271,654
Interest income		1,833			66,048			8,651
Total Investment Income		3,021,432			90,696			8,280,305
Expenses:
Investment advisory fees		1,160,516			61,344			2,139,953
Distribution fees (12b-1) - Class II Shares		341,328			18,043			972,706
Administrative service fees		156,302			8,628			472,882
Total Expenses		1,658,146			88,015			3,585,541
Expenses waived		(181,292	)		(4,593	)		(39,670	)
Net Expenses		1,476,854			83,422			3,545,871
Net Investment Income		1,544,578			7,274			4,734,434
Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts, Options Written and Foreign Currency Translations
Net realized gain/(loss) on:
Investments		(216,466	)		(60,029	)		455,479
Futures contracts		(5,237,481	)		(351,108	)		(18,325,892	)
Options written		—			(138,969	)		—
Foreign currency translations		—			(1,819	)		—
		(5,453,947	)		(551,925	)		(17,870,413	)
Net change in unrealized appreciation/(depreciation) on:
Investments		(6,815,943	)		(12,873	)		(11,014,585	)
Futures contracts		8,228			(3,248	)		159,468
Options written		—			11,275			—
Foreign currency translations		—			(29	)		—
		(6,807,715	)		(4,875	)		(10,855,117	)
Net Realized and Unrealized Loss on Investments, Futures Contracts, Options Written and Foreign Currency Translations		(12,261,662	)		(556,800	)		(28,725,530	)
Net Decrease in Net Assets Resulting from Operations	$	(10,717,084	)	$	(549,526	)	$	(23,991,096	)

The FVIT Goldman Sachs Dynamic Trends Allocation Portfolio commenced operations on April 30, 2015.

Foreign Taxes Withheld $2,439

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Operations (Continued)

For the Year or Period Ended December 31, 2015

	FVIT Moderate Growth			FVIT PIMCO			FVIT Select Advisor
	Managed Risk			Tactical Allocation			Managed Risk
	Portfolio			Portfolio*			Portfolio
Investment Income:
Dividend income	$	2,211,186		$	70,734	^	$	1,812,364
Interest income		2,616			65,077			4,095
Total Investment Income		2,213,802			135,811			1,816,459
Expenses:
Investment advisory fees		572,417			66,130			798,173
Distribution fees (12b-1) - Class II Shares		260,190			19,450			221,715
Administrative service fees		125,208			9,282			103,586
Total Expenses		957,815			94,862			1,123,474
Expenses waived		(9,244	)		(6,514	)		(563,898	)
Net Expenses		948,571			88,348			559,576
Net Investment Income		1,265,231			47,463			1,256,883

Net Realized and Unrealized Gain/(Loss) on Investments, Futures Contracts, Options Written, Swap Contracts and Foreign Currency Translations
Net realized gain/(loss) on:
Investments		(47,044	)		(279,395	)		(97,191	)
Futures contracts		(2,220,909	)		(295,541	)		(2,725,639	)
Options written		—			7,156			—
Swap Contracts		—			47,566			—
Foreign currency translations		—			3,340			—
Distributions of realized gains by underlying investment companies		—			—			973,832
		(2,267,953	)		(516,874	)		(1,848,998	)
Net change in unrealized appreciation/(depreciation) on:
Investments		(2,469,665	)		23,403			(2,794,143	)
Futures contracts		(38,360	)		(32,959	)		295
Swap contracts		—			(15,684	)		—
Forward foreign currency contracts		—			(2,882	)		—
Foreign currency translations		—			(329	)		—
		(2,508,025	)		(28,451	)		(2,793,848	)
Net Realized and Unrealized Loss on Investments, Futures Contracts, Options Written Swap Contracts and Foreign Currency Translations		(4,775,978	)		(545,325	)		(4,642,846	)
Net Decrease in Net Assets Resulting from Operations	$	(3,510,747	)	$	(497,862	)	$	(3,385,963	)

The FVIT PIMCO Tactical Allocation Portfolio commenced operations on April 30, 2015.

Foreign taxes withheld of $41.

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Operations (Continued)

For the Year or Period Ended December 31, 2015

	FVIT Wellington Research
	Managed Risk
	Portfolio
Investment Income:
Dividend income	$	2,468,060	**
Interest income		1,281,830
Total Investment Income		3,749,890
Expenses:
Investment advisory fees		1,886,228
Distribution fees (12b-1) - Class II Shares		554,773
Administrative service fees		258,459
Total Expenses		2,699,460
Expenses waived		(29,627	)
Net Expenses		2,669,833
Net Investment Income		1,080,057

Net Realized and Unrealized Gain/(Loss) on Investments and Futures Contracts
Net Realized Gain (Loss) on:
Investments		(2,165,397	)
Futures contracts		(5,085,311	)
Swap contracts		(10,968	)
Foreign currency translations		(446	)
Total net realized loss		(7,262,122	)
Net change in unrealized appreciation/(depreciation) on:
Investments		3,681,810
Futures contracts		(73,390	)
Swap contracts		(8,753	)
Foreign currency translations		(54	)
		3,599,613
Net Realized and Unrealized Loss on Investments, Futures Contracts and Foreign Currency Translations		(3,662,509	)
Net Decrease in Net Assets Resulting from Operations	$	(2,582,452	)

Foreign taxes withheld of $13,378.

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Changes in Net Assets

	FVIT American Funds® Managed						FVIT Balanced Managed
	Risk Portfolio						Risk Portfolio

	Year Ended			Year Ended			Year Ended			Year Ended
	December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014

Increase (Decrease) in Net Assets:
From Operations:
Net investment income	$	2,761,046		$	1,454,810		$	820,113		$	295,284
Net realized loss on investments and futures contracts		(4,533,262	)		(962,163	)		(846,683	)		(307,590	)
Distributions of realized gains by underlying investment companies		10,860,044			762,322			—			—
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(13,290,785	)		1,140,198			(1,124,896	)		1,083,965
Net increase/(decrease) in net assets resulting from operations		(4,202,957	)		2,395,167			(1,151,466	)		1,071,659
From Distributions to Shareholders:
Net Investment Income		(1,455,718	)		(58,161	)		(295,453	)		(5,295	)
Net Realized Gains		—			(3,462	)		—			(265	)

Total distributions to shareholders		(1,455,718	)		(61,623	)		(295,453	)		(5,560	)

From Shares of Beneficial Interest:
Proceeds from shares sold		91,531,254			109,581,950			43,872,251			46,970,523
Reinvestment of distributions		1,455,718			61,623			295,453			5,560
Cost of shares redeemed		(12,655,128	)		(1,962,772	)		(6,810,830	)		(1,904,203	)
Net increase in net assets from share transactions of beneficial interest		80,331,844			107,680,801			37,356,874			45,071,880
Total increase in net assets		74,673,169			110,014,345			35,909,955			46,137,979

Net Assets:
Beginning of period		116,488,811			6,474,466			47,400,311			1,262,332
End of period	$	191,161,980		$	116,488,811		$	83,310,266		$	47,400,311
Undistributed net investment income at end of period	$	2,759,817		$	1,454,489		$	819,686		$	295,026

Share Activity:
Shares Sold		8,376,859			10,275,241			4,031,921			4,443,768
Shares Reinvested		141,745			5,754			28,436			524
Shares Redeemed		(1,167,094	)		(181,710	)		(627,332	)		(178,971	)
Net increase in shares of beneficial interest outstanding		7,351,510			10,099,285			3,433,025			4,255,321

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Changes in Net Assets (Continued)

	FVIT BlackRock Global Allocation						FVIT Franklin Dividend and Income
	Managed Risk Portfolio						Managed Risk Portfolio

	Year Ended			Year Ended			Year Ended			Period Ended
	December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014*

Increase (Decrease) in Net Assets:
From Operations:
Net investment income	$	3,758,451		$	4,170,247		$	1,544,578		$	615,409
Net realized loss on investments and futures contracts		(5,960,823	)		(693,564	)		(5,453,947	)		(301,309	)
Distributions of realized gains by underlying investment companies		11,289,612			10,818,251			—			—
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(20,064,536	)		(15,233,585	)		(6,807,715	)		2,427,455
Net increase (decrease) in net assets resulting from operations		(10,977,296	)		(938,651	)		(10,717,084	)		2,741,555
From Distributions to Shareholders:

Net Investment Income		(4,169,755	)		(134,130	)		(615,993	)		—
Net Realized Gains		(10,086,057	)		(117,364	)		—			—

Total distributions to shareholders		(14,255,812	)		(251,494	)		(615,993	)		—

From Shares of Beneficial Interest:
Proceeds from shares sold		126,084,683			170,779,754			91,639,072			111,540,238
Reinvestment of distributions		14,255,812			251,494			615,993			—
Cost of shares redeemed		(18,924,550	)		(1,853,864	)		(6,734,246	)		(26,325,406	)
Net increase in net assets from share transactions of beneficial interest		121,415,945			169,177,384			85,520,819			85,214,832
Total increase in net assets		96,182,837			167,987,239			74,187,742			87,956,387

Net Assets:
Beginning of period		176,415,224			8,427,985			87,956,387			—
End of period	$	272,598,061		$	176,415,224		$	162,144,129		$	87,956,387
Undistributed net investment income at end of period	$	3,758,376		$	4,169,680		$	1,543,994		$	615,409

Share Activity:
Shares Sold		12,296,915			16,508,733			8,851,238			10,900,403
Shares Reinvested		1,547,862			24,159			63,966			—
Shares Redeemed		(1,869,805	)		(178,366	)		(664,935	)		(2,577,115	)
Net increase in shares of beneficial interest outstanding		11,974,972			16,354,526			8,250,269			8,323,288

The FVIT Franklin Dividend and Income Managed Risk Portfolio commenced operations on April 30, 2014.

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Changes in Net Assets (Continued)

	FVIT Goldman Sachs Dynamic Trends			FVIT Growth
	Allocation Portfolio			Managed Risk Portfolio

	Period Ended			Year Ended			Period Ended
	December 31, 2015 *			December 31, 2015			December 31, 2014 **

Increase (Decrease) in Net Assets:
From Operations:
Net investment income	$	7,274		$	4,734,434		$	1,284,036
Net realized loss on investments, futures contracts options written, and foreign currency translations		(551,925	)		(17,870,413	)		(3,230,351	)
Net change in unrealized appreciation (depreciation) on investments, futures contracts options written and foreign currency translations		(4,875	)		(10,855,117	)		5,529,413
Net increase (decrease) in net assets resulting from operations		(549,526	)		(23,991,096	)		3,583,098

From Distributions to Shareholders:
Net Investment Income		(5,079	)		(1,298,520	)		—

From Shares of Beneficial Interest:
Proceeds from shares sold		24,900,545			240,370,771			258,983,148
Reinvestment of distributions		5,079			1,298,520			—
Cost of shares redeemed		(8,102,490	)		(15,782,081	)		(1,808,726	)
Net increase in net assets from share transactions of beneficial interest		16,803,134			225,887,210			257,174,422
Total increase in net assets		16,248,529			200,597,594			260,757,520

Net Assets:
Beginning of period		—			260,757,520			—
End of period	$	16,248,529		$	461,355,114		$	260,757,520
Undistributed net investment income at end of period	$	756		$	4,732,844		$	1,296,930

Share Activity:
Shares Sold		2,535,999			23,092,476			25,034,144
Shares Reinvested		536			133,593			—
Shares Redeemed		(823,098	)		(1,523,862	)		(175,781	)
Net increase in shares of beneficial interest outstanding		1,713,437			21,702,207			24,858,363

The FVIT Goldman Sachs Dynamic Trends Allocation Portfolio commenced operations on April 30, 2015.

The FVIT Growth Managed Risk Portfolio commenced operations on April 30, 2014.

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Changes in Net Assets (Continued)

	FVIT Moderate Growth						FVIT PIMCO Tactical
	Managed Risk Portfolio						Allocation Portfolio

	Year Ended			Period Ended			Period Ended
	December 31, 2015			December 31, 2014 *			December 31, 2015**

Increase (Decrease) in Net Assets:
From Operations:
Net investment income	$	1,265,231		$	332,455		$	47,463
Net realized loss on investments, futures contracts, options written, swap contracts and foreign currency translations		(2,267,953	)		(366,869	)		(516,874	)
Distributions of realized gains by underlying investment companies		—			—			—
Net change in unrealized appreciation (depreciation) on investments, futures contracts, options written, swap contracts and foreign currency translations		(2,508,025	)		1,196,888			(28,451	)

Net increase (decrease) in net assets resulting from operations		(3,510,747	)		1,162,474			(497,862	)

From Distributions to Shareholders:
From Net Investment Income		(337,034	)		—			(111,941	)

From Shares of Beneficial Interest:
Proceeds from shares sold		72,722,363			64,111,252			19,914,355
Reinvestment of distributions		337,034			—			72,485
Cost of shares redeemed		(6,473,579	)		(286,485	)		(6,161,884	)
Net increase in net assets from share transactions of beneficial interest		66,585,818			63,824,767			13,824,956
Total increase in net assets		62,738,037			64,987,241			13,215,153

Net Assets:
Beginning of period		64,987,241			—			—
End of period	$	127,725,278		$	64,987,241		$	13,215,153
Accumulated net investment income (loss) at end of period	$	1,264,326		$	336,129		$	(2,455	)

Share Activity:
Shares Sold		6,911,086			6,219,244			2,023,148
Shares Reinvested		33,839			—			7,662
Shares Redeemed		(619,921	)		(28,030	)		(632,882	)
Net increase in shares of beneficial interest outstanding		6,325,004			6,191,214			1,397,928

FVIT Moderate Growth Managed Risk Portfolio commenced operations on April 30, 2014.

FVIT PIMCO Tactical Allocation Portfolio commenced operations on April 30, 2015.

See accompanying notes to financial statements.

FVIT Portfolios

Statements of Changes in Net Assets (Continued)

	FVIT Select Advisor Managed						FVIT Wellington Research Managed
	Risk Portfolio						Risk Portfolio

	Year Ended			Year Ended			Year Ended			Year Ended
	December 31, 2015			December 31, 2014			December 31, 2015			December 31, 2014

Increase (Decrease) in Net Assets:
From Operations:
Net investment income	$	1,256,883		$	383,161		$	1,080,057		$	129,073
Net realized loss on investments, futures contracts, swap contracts and foreign currency translations		(2,822,830	)		(312,495	)		(7,262,122	)		(11,587	)
Distributions of realized gains by underlying investment companies		973,832			240,436			—			—
Net change in unrealized appreciation (depreciation) on investments, futures contracts, swap contracts and foreign currency translations		(2,793,848	)		1,548,221			3,599,613			3,686,905
Net increase (decrease) in net assets resulting from operations		(3,385,963	)		1,859,323			(2,582,452	)		3,804,391
From Distributions to Shareholders:
From Net Investment Income		(383,808	)		(4,652	)		(133,502	)		(33,657	)
From Net Realized Gains		—			—			(221,664	)		(41,525	)

Total distributions to shareholders		(383,808	)		(4,652	)		(355,166	)		(75,182	)

From Shares of Beneficial Interest:
Proceeds from shares sold		62,375,940			48,459,881			256,097,336			84,640,120
Reinvestment of distributions		383,808			4,652			355,166			75,182
Cost of shares redeemed		(4,870,435	)		(1,138,066	)		(7,173,964	)		(21,959,472	)
Net increase in net assets from share transactions of beneficial interest		57,889,313			47,326,467			249,278,538			62,755,830
Total increase in net assets		54,119,542			49,181,138			246,340,920			66,485,039

Net Assets:
Beginning of period		51,596,553			2,415,415			88,909,423			22,424,384
End of period	$	105,716,095		$	51,596,553		$	335,250,343		$	88,909,423
Undistributed net investment income at end of period	$	1,256,183		$	383,108		$	1,048,381		$	134,786

Share Activity:
Shares Sold		5,660,959			4,573,782			22,304,841			7,798,002
Shares Reinvested		37,191			435			32,554			6,968
Shares Redeemed		(444,566	)		(107,726	)		(627,162	)		(2,074,493	)
Net increase in shares of beneficial interest outstanding		5,253,584			4,466,491			21,710,233			5,730,477

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT American Funds® Managed Risk Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class II Shares

	Year Ended			Year Ended			Period Ended
	December 31, 2015			December 31, 2014			December 31, 2013(a)

Net asset value, beginning of period	$	10.86		$	10.28		$	10.00
Income from investment operations:
Net investment income (b) (c)		0.18			0.32			0.29
Net realized and unrealized gain/(loss) on investments		(0.38	)		0.27			(0.01	) (d)
Total income (loss) from investment operations		(0.20	)		0.59			0.28
Less distributions from:
Net investment income		(0.09	)		(0.01	)		—
Net realized gain		—			(0.00	) (k)		—
Total distributions from net investment income and net realized gains		(0.09	)		(0.01	)		—
Net asset value, end of period	$	10.57		$	10.86		$	10.28
Total return (e)		(1.84	)%		5.73	%		2.80	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	191,162		$	116,489		$	6,474
Ratio of net expenses to average net assets (f)		0.86	%		0.86	%		0.86	% (h)
Ratio of gross expenses to average net assets (f)(g)		1.27	%		1.35	%		5.00	% (h)
Ratio of net investment income to average net assets (c) (f)		1.69	%		2.96	%		17.33	% (h)
Portfolio turnover rate		23	%		35	%		0	% (i,j)

(a)

FVIT American Funds® Managed Risk Portfolio commenced operations on October 31, 2013.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Realized and unrealized losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with aggregate gains and losses in the statement of operations due to the share transactions for the period.

(e)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(f)

Does not include the expenses of the investment companies in which the Portfolio invests.

(g)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(h)

Annualized.

(i)

Not annualized

(j)

Amount represents less than 0.5%.

(k)

Amount represents less than $0.005.

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT Balanced Managed Risk Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class II Shares

	Year Ended			Year Ended			Period Ended
	December 31, 2015			December 31, 2014			December 31, 2013(a)

Net asset value, beginning of period	$	10.82		$	10.19		$	10.00
Income from investment operations:
Net investment income (b) (c)		0.13			0.18			0.09
Net realized and unrealized gain (loss) on investments		(0.25	)		0.45			0.10
Total income (loss) from investment operations		(0.12	)		0.63			0.19
Less distributions from:
Net investment income		(0.04	)		(0.00	) (i)		—
Net realized gain		—			(0.00	) (i)		—
Total distributions from net investment income and net realized gains		(0.04	)		(0.00	) (i)		—
Net asset value, end of period	$	10.66		$	10.82		$	10.19
Total return (d)		(1.10	)%		6.20	%		1.90	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	83,310		$	47,400		$	1,262
Ratio of net expenses to average net assets (e)		0.91	%		0.91	%		0.91	% (g)
Ratio of gross expenses to average net assets (e)(f)		0.92	%		0.97	%		30.74	% (g)
Ratio of net investment income to average net assets (c) (e)		1.16	%		1.70	%		5.12	% (g)
Portfolio turnover rate		32	%		34	%		1	% (h)

(a)

FVIT Balanced Managed Risk Portfolio commenced operations on October 31, 2013.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(e)

Does not include the expenses of the investment companies in which the Portfolio invests.

(f)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(g)

Annualized.

(h)

Not annualized.

(i)

Amount represents less than $0.005.

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT BlackRock Global Allocation Managed Risk Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class II Shares

	Year Ended			Year Ended			Period Ended
	December 31, 2015			December 31, 2014			December 31, 2013(a)

Net asset value, beginning of period	$	10.27		$	10.22		$	10.00
Income from investment operations:
Net investment income (b) (c)		0.16			0.54			0.60
Net realized and unrealized loss on investments		(0.52	)		(0.47	)		(0.38	)
Total income (loss) from investment operations		(0.36	)		0.07			0.22
Less distributions from:
Net investment income		(0.16	)		(0.01	)		—
Net realized gain		(0.40	)		(0.01	)		—
Total distributions from net investment income and net realized gains		(0.56	)		(0.02	)		—
Net asset value, end of period	$	9.35		$	10.27		$	10.22
Total return (d)		(3.44	)%		0.69	%		2.20	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	272,598		$	176,415		$	8,428
Ratio of net expenses to average net assets (e)		0.57	%		0.57	%		0.57	% (g)
Ratio of gross expenses to average net assets (e)(f)		1.26	%		1.35	%		4.43	% (g)
Ratio of net investment income to average net assets (c) (e)		1.61	%		5.20	%		35.20	% (g)
Portfolio turnover rate		1	%		0	% (i)		0	% (h,i)

(a)

FVIT BlackRock Global Allocation Managed Risk Portfolio commenced operations on October 31, 2013.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(e)

Does not include the expenses of the investment companies in which the Portfolio invests.

(f)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(g)

Annualized.

(h)

Not annualized.

(i)

Amount represents less than 0.5%.

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT Franklin Dividend and Income Managed Risk Portfolio

Selected data based on a share outstanding throughout the period indicated.

	Class II Shares

	Year Ended			Period Ended
	December 31, 2015			December 31, 2014 (a)

Net asset value, beginning of period	$	10.57		$	10.00
Income from investment operations:
Net investment income (b) (c)		0.12			0.15
Net realized and unrealized gain (loss) on investments		(0.87	)		0.42
Total income (loss) from investment operations		(0.75	)		0.57
Less distributions from:
Net investment income		(0.04	)		—
Net asset value, end of period	$	9.78		$	10.57
Total return (d)		(7.09	)%		5.70	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	162,144		$	87,956
Ratio of net expenses to average net assets (e)		1.08	%		1.08	% (g)
Ratio of gross expenses to average net assets (e)(f)		1.21	%		1.24	% (g)
Ratio of net investment income to average net assets (c) (e)		1.13	%		2.22	% (g)
Portfolio turnover rate		3	%		2	% (h)

(a)

FVIT Franklin Dividend and Income Managed Risk Portfolio commenced operations on April 30, 2014.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(e)

Does not include the expenses of the investment companies in which the Portfolio invests.

(f)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(g)

Annualized.

(h)

Not annualized.

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio

Selected data based on a share outstanding throughout the period indicated.

	Class II Shares

	Period Ended
	December 31, 2015 (a)

Net asset value, beginning of period	$	10.00
Income from investment operations:
Net investment income (b) (c)		0.01
Net realized and unrealized loss on investments		(0.53	)
Total loss from investment operations		(0.52	)
Less distributions from:
Net investment income		0.00	(d)
Net asset value, end of period	$	9.48
Total return (e)		(5.17	)%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	16,249
Ratio of expenses to average net assets (f)		1.16	% (h)
Ratio of gross expenses to average net assets (f) (g)		1.22	% (h)
Ratio of net investment income to average net assets (c) (f)		0.10	% (h)
Portfolio turnover rate		14	% (i)

(a)

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio commenced operations on April 30, 2015.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Amount represents less than $0.005.

(e)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(f)

Does not include the expenses of the investment companies in which the Portfolio invests.

(g)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(h)

Annualized.

(i)

Not annualized.

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT Growth Managed Risk Portfolio

Selected data based on a share outstanding throughout the period indicated.

	Class II Shares

	Year Ended			Period Ended
	December 31, 2015			December 31, 2014 (a)

Net asset value, beginning of period	$	10.49		$	10.00
Income from investment operations:
Net investment income (b) (c)		0.13			0.13
Net realized and unrealized gain (loss) on investments		(0.68	)		0.36
Total income (loss) from investment operations		(0.55	)		0.49
Less distributions from:
Net investment income		(0.03	)		—
Net asset value, end of period	$	9.91		$	10.49
Total return (d)		(5.23	)%		4.90	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	461,355		$	260,758
Ratio of net expenses to average net assets (e)		0.91	%		0.90	% (f)
Ratio of gross expenses to average net assets (e)		0.92	% (g)		0.90	% (f)
Ratio of net investment income to average net assets (c) (e)		1.22	%		1.83	% (f)
Portfolio turnover rate		23	%		9	% (h)

(a)

FVIT Growth Managed Risk Portfolio commenced operations on April 30, 2014.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(e)

Does not include the expenses of the investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(h)

Not annualized.

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT Moderate Growth Managed Risk Portfolio

Selected data based on a share outstanding throughout the period indicated.

	Class II Shares

	Year Ended			Period Ended
	December 31, 2015			December 31, 2014 (a)

Net asset value, beginning of period	$	10.50		$	10.00
Income from investment operations:
Net investment income (b) (c)		0.13			0.13
Net realized and unrealized gain (loss) on investments		(0.40	)		0.37
Total income (loss) from investment operations		(0.27	)		0.50
Less distributions from:
Net investment income		(0.03	)		—
Net asset value, end of period	$	10.20		$	10.50
Total return (d)		(2.57	)%		5.00	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	127,725		$	64,987
Ratio of net expenses to average net assets (e)		0.91	%		0.91	% (f)
Ratio of gross expenses to average net assets (e)		0.92	% (g)		0.91	% (f)
Ratio of net investment income to average net assets (c) (e)		1.21	%		1.82	% (f)
Portfolio turnover rate		21	%		11	% (h)

(a)

FVIT Growth Managed Risk Portfolio commenced operations on April 30, 2014.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(e)

Does not include the expenses of the investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(h)

Not annualized.

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT PIMCO Tactical Allocation Portfolio

Selected data based on a share outstanding throughout the period indicated.

	Class II Shares

	Period Ended
	December 31, 2015 (a)

Net asset value, beginning of period	$	10.00
Income from investment operations:
Net investment income (b) (c)		0.04
Net realized and unrealized loss on investments		(0.51	)
Total loss from investment operations		(0.47	)
Less distributions from:
Net investment income		(0.08	)
Net asset value, end of period	$	9.45
Total return (d)		(4.72	)%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	13,215
Ratio of net expenses to average net assets (e)		1.14	% (f)
Ratio of gross expenses to average net assets (e) (g)		1.22	% (f)
Ratio of net investment income to average net assets (c) (e)		0.61	% (f)
Portfolio turnover rate		128	% (h,i)

(a)

FVIT PIMCO Tactical Allocation Portfolio commenced operations on April 30, 2015.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(e)

Does not include the expenses of the investment companies in which the Portfolio invests.

(f)

Annualized.

(g)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(h)

Not annualized.

(i)

The portfolio turnover rates excludes dollar roll transactions for the period ended December 31, 2015. If these were included in the calculation the turnover percentage would be 220%. See Note 3 in the accompanying notes to financial statements.

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT Select Advisor Managed Risk Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class II Shares

	Year Ended			Year Ended			Period Ended
	December 31, 2015			December 31, 2014			December 31, 2013(a)

Net asset value, beginning of period	$	10.97		$	10.24		$	10.00
Income from investment operations:
Net investment income (b) (c)		0.15			0.17			0.04
Net realized and unrealized gain (loss) on investments		(0.46	)		0.56			0.20
Total income (loss) from investment operations		(0.31	)		0.73			0.24
Less distributions from:
Net investment income		(0.04	)		(0.00	) (j)		—
Net asset value, end of period	$	10.62		$	10.97		$	10.24
Total return (d)		(2.81	)%		7.14	%		2.40	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	105,716		$	51,597		$	2,415
Ratio of net expenses to average net assets (e)		0.63	%		0.63	%		0.63	% (g)
Ratio of gross expenses to average net assets (e)(f)		1.26	%		1.37	%		14.77	% (g)
Ratio of net investment income to average net assets (c) (e)		1.42	%		1.59	%		2.06	% (g)
Portfolio turnover rate		21	%		18	%		0	% (h,i)

(a)

FVIT Select Advisor Managed Risk Portfolio commenced operations on October 31, 2013.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(e)

Does not include the expenses of the investment companies in which the Portfolio invests.

(f)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(g)

Annualized.

(h)

Not annualized.

(i)

Amount represents less than 0.5%.

(j)

Amount represents less than $0.005.

See accompanying notes to financial statements.

FVIT Portfolios

Financial Highlights

FVIT Wellington Research Managed Risk Portfolio

Selected data based on a share outstanding throughout each period indicated.

	Class II Shares

	Year Ended			Year Ended			Period Ended
	December 31, 2015			December 31, 2014			December 31, 2013(a)

Net asset value, beginning of period	$	11.25		$	10.31		$	10.00
Income from investment operations:
Net investment income (b) (c)		0.06			0.04			0.01
Net realized and unrealized gain on investments		0.03	(d)		0.92			0.30
Total income from investment operations		0.09			0.96			0.31
Less distributions from:
Net investment income		(0.01	)		(0.01	)		—
Net realized gain		(0.01	)		(0.01	)		—
Total distributions from net investment income and net realized gains		(0.02	)		(0.02	)		—
Net asset value, end of period	$	11.32		$	11.25		$	10.31
Total return (e)		0.75	%		9.29	%		3.10	%
Ratios and Supplemental Data:
Net assets, end of period (in 000’s)	$	335,250		$	88,909		$	22,424
Ratio of net expenses to average net assets (f)		1.20	%		1.20	%		1.20	% (h)
Ratio of gross expenses to average net assets (f)(g)		1.21	%		1.38	%		1.62	% (h)
Ratio of net investment income to average net assets (c) (f)		0.49	%		0.35	%		0.66	% (h)
Portfolio turnover rate (j)		91	%		120	%		14	% (i)

(a)

FVIT Wellington Research Managed Risk Portfolio commenced operations on October 31, 2013.

(b)

Net investment income has been calculated using the average shares method, which more appropriately presents the per share data for the period.

(c)

Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests.

(d)

(e)

Total returns are historical and assume changes in share price and reinvestment of dividends and capital gains distributions. Total returns for periods of less than one year are not annualized.

(f)

Does not include the expenses of the investment companies in which the Portfolio invests.

(g)

Represents the ratio of expenses to average net assets absent fee waivers and/or expense reimbursements by the Adviser.

(h)

Annualized.

(i)

Not annualized.

(j)

The portfolio turnover rates excludes dollar roll transactions for the years ended December 31, 2015, December 31, 2014 and December 31, 2013. If these were included in the calculation the turnover percentage would be 175%, 188% and 19%, respectively. See Note 3 in the accompanying notes to financial statements.

See accompanying notes to financial statements.

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS

December 31, 2015

ORGANIZATION

The FVIT Portfolios (each a “Portfolio”, collectively the “Portfolios”) are comprised of ten different actively managed portfolios. Each Portfolio is a series of shares of beneficial interest of Forethought Variable Insurance Trust (the “Trust”), a statutory trust organized under the laws of the State of Delaware, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The FVIT Goldman Sachs Dynamic Trends Allocation Portfolio and FVIT PIMCO Tactical Allocation Portfolio commenced operations on April 30, 2015. The FVIT Franklin Dividend and Income Managed Risk Portfolio, FVIT Growth Managed Risk Portfolio, and FVIT Moderate Growth Managed Risk Portfolio commenced operations on April 30, 2014. All other Portfolios commenced operations on October 31, 2013. FVIT Franklin Dividend and Income Managed Risk Portfolio, FVIT PIMCO Tactical Allocation Portfolio and FVIT Wellington Research Managed Risk Portfolio (formerly FVIT WMC Research Managed Risk Portfolio) are diversified series of the Trust; all other Portfolios are non-diversified. The Portfolios are intended to be funding vehicles for variable annuity contracts offered by the separate accounts of Forethought Life Insurance Company. The assets of each Portfolio are segregated and a shareholder’s interest is limited to the Portfolio in which shares are held. Each Portfolio pays its own expenses. The investment objective of each Portfolio is capital appreciation and income while seeking to manage volatility.

The Portfolios currently offer Class II shares at net asset value.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies followed by the Portfolios in the preparation of their financial statements. The policies are in conformity with U.S. generally accepted accounting principles. (“GAAP”). The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. The Portfolios follow the specialized accounting and reporting requirements under GAAP that are applicable to investment companies.

Securities Valuation – Securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the primary exchange on the business day the value is being determined, or in the case of securities listed on NASDAQ at the NASDAQ Official Closing Price (“NOCP”). In the absence of a sale such securities shall be valued at the mean between the current bid and ask prices on the day of valuation. Futures and future options are valued at the final settle price or, in the absence of a settle price, at the last sale price on the day of valuation. Short-term debt obligations having 60 days or less remaining until maturity, at time of purchase, may be valued at amortized cost to the extent it is determined that amortized cost approximates fair value. Investments in open-end investment companies are valued at net asset value.

Valuation of Investment Companies – The Portfolios may invest in portfolios of open-end investment companies (the “underlying funds”). The underlying funds are valued at their respective net asset values as reported by such investment companies. The underlying funds value securities in their portfolios for which market quotations are readily available at their market values (generally the last reported sale price) and all other securities and assets at their fair value based on the methods established by the board(s) of directors of the underlying funds.

Exchange Traded Funds – The Portfolios may invest in exchange traded funds (“ETFs”). ETFs are a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and represents a fixed portfolio of securities designed to track the performance and dividend yield of a particular domestic or foreign market index. The Portfolios may purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market. The risks of owning an ETF generally reflect the risks of owning the underlying securities they are designed to track, although the lack of liquidity in an ETF could result in it being more volatile than the underlying securities. Additionally, ETFs have fees and expenses that increase their costs versus the costs of owning the underlying securities directly.

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Illiquid Securities – The Portfolios may hold securities, such as private placements, interests in commodity pools, other non-traded securities or temporarily illiquid securities, for which market quotations are not readily available or are determined to be unreliable. These securities will be valued at their fair market value as determined using the “fair value” procedures approved by the Board of Trustees (the “Board”). The Board has delegated execution of these procedures to a fair value team composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) Adviser and/or Sub-Adviser. The team may also enlist third party consultants such as an audit firm, valuation consultant, or financial officer of a security issuer on an as-needed basis to assist in determining a security-specific fair value. The Board reviews and ratifies the execution of this process and the resultant fair value prices at least quarterly to assure the process produces reliable results.

Fair Valuation Process – As noted above, the fair valuation team is composed of one or more representatives from each of the (i) Trust, (ii) administrator, and (iii) Forethought Investment Advisors, LLC (the “Adviser”) and/or sub-adviser. The applicable investments are valued collectively via inputs from each of these groups. For example, fair value determinations are required for the following securities: (i) securities for which market quotations are not readily available on a particular business day (including, without limitation, securities for which there is a short and temporary lapse in the provision of a price by the regular pricing source); (ii) securities for which, in the opinion of the Adviser or sub-adviser, the prices or values available do not represent the fair value of the instrument. Factors which may cause the Adviser or sub-adviser to make such a judgment include, but are not limited to, the following: the availability of only a bid price or an ask price; the spread between bid and ask prices; the frequency of sales; the thinness of the market; the size of reported trades; and actions of the securities markets or regulators, such as the suspension or limitation of trading; (iii) securities determined to be illiquid; (iv) securities with respect to which an event that will affect the value thereof has occurred (a “significant event”) subsequent to the determination of the closing price reported on the principal exchange on which the securities are traded, but prior to the relevant Portfolio’s calculation of its net asset value (“NAV”); and (v) mutual funds that do not provide timely NAV information. Specifically, interests in commodity pools or managed futures pools are valued on a daily basis by reference to the closing market prices of each futures contract or other asset held by a pool, as adjusted for pool expenses. Restricted or illiquid securities, such as private placements or non-traded securities are valued via inputs from the Adviser or sub-adviser valuation based upon the current bid for the security from two or more independent dealers or other parties reasonably familiar with the facts and circumstances of the security (who should take into consideration all relevant factors as may be appropriate under the circumstances). If the Adviser or sub-adviser is unable to obtain a current bid from such independent dealers or other independent parties, the fair value team shall determine the fair value of restricted or illiquid securities using the following factors: (i) the type of security; (ii) the cost at date of purchase; (iii) the size and nature of the Portfolio’s holdings; (iv) the discount from market value of unrestricted securities of the same class at the time of purchase and subsequent thereto; (v) information as to any transactions or offers with respect to the security; (vi) the nature and duration of restrictions on disposition of the security and the existence of any registration rights as well as any estimation of the cost of registration or otherwise qualifying the security for public sale, including commissions; (vii) how the yield of the security compares to similar securities of companies of similar or equal creditworthiness; (viii) the level of recent trades of similar or comparable securities; (ix) the liquidity characteristics of the security; (x) current market conditions; (xi) the market value of any securities into which the security is convertible or exchangeable; and (xii) the security’s embedded option values; and (xiii) information about the financial condition of the issuer and its prospects.

Each Portfolio utilizes various methods to measure the fair value of all of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Portfolio has the ability to access.

Level 2 – Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Portfolio’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of December 31, 2015 for each Portfolio’s investments measured at fair value:

FVIT American Funds® Managed Risk Portfolio

Assets	Level 1		Level 2		Level 3		Total
Variable Insurance Trusts	$	171,548,694	$	—	$	—	$	171,548,694
Short-Term Investments		10,489,128		—		—		10,489,128
Total	$	182,037,822	$	—	$	—	$	182,037,822

FVIT Balanced Managed Risk Portfolio

Assets	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	77,688,148	$	—	$	—	$	77,688,148
Short-Term Investment		2,175,825		—		—		2,175,825
Total	$	79,863,973	$	—	$	—	$	79,863,973

FVIT BlackRock Global Allocation Managed Risk Portfolio

Assets	Level 1		Level 2		Level 3		Total
Variable Insurance Trusts	$	258,939,276	$	—	$	—	$	258,939,276
Short-Term Investment		503,096		—		—		503,096
Total	$	259,442,372	$	—	$	—	$	259,442,372

FVIT Franklin Dividend and Income Managed Risk Portfolio

Assets	Level 1		Level 2		Level 3		Total
Common Stocks	$	116,495,614	$	—	$	—	$	116,495,614
Mutual Fund		38,340,521		—		—		38,340,521
Short-Term Investment		974,017		—		—		974,017
Total	$	155,810,152	$	—	$	—	$	155,810,152

Liabilities	Level 1		Level 2		Level 3		Total
Futures Contracts *	$	47,965	$	—	$	—	$	47,965
Total	$	47,965	$	—	$	—	$	47,965

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio

Assets	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	5,269,550	$	—	$	—	$	5,269,550
U.S. Treasury Note		—		7,748,975		—		7,748,975
Purchased Options		52,347		—		—		52,347
Short-Term Investment		4,833,760		—		—		4,833,760
Total	$	10,155,657	$	7,748,975	$	—	$	17,904,632

Liabilities	Level 1		Level 2		Level 3		Total
Written Options	$	6,016	$	—	$	—	$	6,016
Futures Contracts*		3,248		—		—		3,248
Total	$	9,264	$	—	$	—	$	9,264

FVIT Growth Managed Risk Portfolio

Assets	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	432,771,721	$	—	$	—	$	432,771,721
Short-Term Investment		9,436,779		—		—		9,436,779
Futures Contracts*		43,460		—		—		43,460
Total	$	442,251,960	$	—	$	—	$	442,251,960

FVIT Moderate Growth Managed Risk Portfolio

Assets	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	119,175,106	$	—	$	—	$	119,175,106
Short-Term Investment		3,358,160		—		—		3,358,160
Total	$	122,533,266	$	—	$	—	$	122,533,266

FVIT PIMCO Tactical Allocation Portfolio

Assets	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	3,917,237	$	—	$	—	$	3,917,237
Corporate Bonds		—		2,218,368		—		2,218,368
Asset Backed Securities		—		578,193		—		578,193
Mortgage Backed Securities		—		1,981,549		—		1,981,549
Collateralized Mortgage Obligations		—		993,595		—		993,595
Sovereign Debt		—		614,384		—		614,384
Commercial Mortgage Backed Securities		—		432,450		—		432,450
U.S. Treasury Securities		—		2,878,480		—		2,878,480
Purchased Options		201,769		—		—		201,769
Short-Term Investments		151,076		999,808		—		1,150,884
Total	$	4,270,082	$	10,696,827	$	—	$	14,966,909

Liabilities	Level 1		Level 2		Level 3		Total
Futures Contracts*	$	32,959	$	—	$	—	$	32,959
Written Swaptions		—		269		—		269
Swap Contracts		—		15,415		—		15,415
Total	$	32,959	$	15,684	$	—	$	48,643

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

FVIT Select Advisor Managed Risk Portfolio

Assets	Level 1		Level 2		Level 3		Total
Exchange Traded Funds	$	15,453,796	$	—	$	—	$	15,453,796
Variable Insurance Trusts		79,944,480		—		—		79,944,480
Short-Term Investment		5,042,553		—		—		5,042,553
Futures Contracts*		40		—		—		40
Total	$	100,440,869	$	—	$	—	$	100,440,869

FVIT Wellington Research Managed Risk Portfolio

Assets	Level 1		Level 2		Level 3		Total
Common Stocks	$	202,010,025	$	—	$	—	$	202,010,025
Preferred Stock		82,860		—		—		82,860
Exchange Traded Fund		4,868,077		—		—		4,868,077
Asset Backed Securities		—		9,868,866		—		9,868,866
Corporate Bonds		—		30,212,721		—		30,212,721
Commercial Mortgage Backed Securities		—		2,800,964		—		2,800,964
Mortgage Backed Securities		—		23,160,753		—		23,160,753
Municipal Securities		—		2,118,255		—		2,118,255
U.S. Treasury Securities		—		36,198,841		—		36,198,841
Short-Term Investments		17,078,966		5,899,735		—		22,978,701
Total	$	224,039,928	$	110,260,135	$	—	$	334,300,063

Liabilities	Level 1		Level 2		Level 3		Total
Credit Default Swap	$	—	$	7,695	$	—	$	7,695
Futures Contracts*		2,800		—		—		2,800
Total	$	2,800	$	7,695	$	—	$	10,495

Net appreciation (depreciation) on futures contracts is reported in the above table.

The Portfolios did not hold any Level 3 securities during the period.

There were no transfers between levels for any Portfolio. It is the Portfolios’ policy to record transfers between Level 1 and Level 2 at the end of the reporting period.

Security Transactions and Related Income – Security transactions are accounted for on a trade date basis. Interest income is recognized on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

Dividends and Distributions to Shareholders – Dividends from net investment income and distributions from net realized capital gains, if any, are declared and paid annually. Dividends and distributions to shareholders are recorded on ex-date and are determined in accordance with Federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either temporary (e.g., deferred losses, capital loss carryforwards) or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their Federal tax-basis treatment; temporary differences do not require reclassification. These reclassifications have no effect on net assets, results from operations or net asset values per share of the Portfolios.

Cash and Cash Equivalents – Cash and cash equivalents include cash and overnight investments in interest-bearing demand deposits with a financial institution with original maturities of three months or less. The Portfolios maintain deposits with a financial institution which are generally an amount that is in excess of federally insured limits.

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Federal Income Tax – It is each Portfolio’s policy to qualify as a regulated investment company by complying with the provisions of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of their taxable income and net realized gains to shareholders. Therefore, no Federal income tax provision is required.

Each Portfolio will recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed each Portfolio’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken in each Portfolio’s 2013 and 2014 tax returns or is expected to be taken in each Portfolio’s 2015 tax returns. Each Portfolio identified its major tax jurisdictions as U.S. Federal and foreign jurisdictions where the Portfolios make significant investments; however, the Portfolios are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

Foreign Currency Translation – The accounting records of the Portfolios’ are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Net realized gains and losses on foreign currency transactions represent net gains and losses from currency realized between the trade and settlement dates on securities transactions and the difference between income accrued versus income received. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investments.

Forward Foreign Currency Contracts – As foreign securities are purchased, a Portfolio generally enters into forward currency exchange contracts in order to hedge against foreign currency exchange rate risks. A forward involves an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. The market value of the contract fluctuates with changes in currency exchange rates. The contract is marked-to-market daily and the change in market value is recorded by the Portfolio as an unrealized gain or loss. As foreign securities are sold, a portion of the contract is generally closed and the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Realized gains and losses from contract transactions are included as a component of net realized gains (losses) from forward foreign currency contracts in the statements of operations.

Options Transactions – The FVIT Goldman Sachs Dynamic Trends Allocation Portfolio and FVIT PIMCO Tactical Allocation Portfolio are subject to equity price risk, interest rate risk and foreign currency risk in the normal course of pursuing their investment objective and may purchase or sell options to help hedge against this risk.

A Portfolio may purchase and write (i.e., sell) put and call options. Such options may relate to particular securities, futures or stock indices, and may or may not be listed on a domestic or foreign securities exchange and may or may not be issued by the Options Clearing Corporation. Options trading is a highly specialized activity that entails greater than ordinary investment risk. Options may be more volatile than the underlying instruments, and therefore, on a percentage basis, an investment in options may be subject to greater fluctuation than an investment in the underlying instruments themselves. A call option for a particular security gives the purchaser of the option the right to buy, and the writer (seller) the obligation to sell, the underlying security at the stated exercise price at any time prior to the expiration of the option, regardless of the market price of the security. The premium paid to the writer is in consideration for undertaking the obligation under the option contract. A put option for a particular security gives the purchaser the right to sell the security and the writer (seller) the obligation to buy the underlying security at the stated exercise price at any time prior to the expiration date of the option, regardless of the market price of the security.

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Stock index options are put options and call options on various stock indices. In most respects, they are identical to listed options on common stocks. The primary difference between stock options and index options occurs when index options are exercised. In the case of stock options, the underlying security, common stock, is delivered. However, upon the exercise of an index option, settlement does not occur by delivery of the securities comprising the index. The option holder who exercises the index option receives an amount of cash if the closing level of the stock index upon which the option is based is greater than, in the case of a call, or less than, in the case of a put, the exercise price of the option. This amount of cash is equal to the difference between the closing price of the stock index and the exercise price of the option expressed in dollars times a specified multiple. A stock index fluctuates with changes in the market value of the stocks included in the index.

The Portfolios may purchase and sell options on the same types of futures in which it may invest. Options on futures are similar to options on underlying instruments except that options on futures give the purchaser the right, in return for the premium paid, to assume a position in a futures contract (a long position if the option is a call and a short position if the option is a put), rather than to purchase or sell the futures contract, at a specified exercise price at any time during the period of the option. Upon exercise of the option, the delivery of the futures position by the writer of the option to the holder of the option will be accompanied by the delivery of the accumulated balance in the writer’s futures margin account which represents the amount by which the market price of the futures contract, at exercise, exceeds (in the case of a call) or is less than (in the case of a put) the exercise price of the option on the futures contract. Purchasers of options who fail to exercise their options prior to the exercise date suffer a loss of the premium paid.

For the period ended December 31, 2015, the FVIT Goldman Sachs Dynamic Trends Allocation Portfolio and the FVIT PIMCO Tactical Allocation Portfolio had unrealized gains of $11,275 and $0, respectively from option contracts written. For the period ended December 31, 2015, the FVIT Goldman Sachs Dynamic Trends Allocation Portfolio and the FVIT PIMCO Tactical Allocation Portfolio had realized gains/(losses) of $(138,969) and $7,156, respectively from option contracts written.

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio

	Number of Contracts			Premiums Received
Options outstanding, beginning of period		—		$	—
Options written		430			168,188
Options closed		(350	)		(150,897	)
Options outstanding, end of period		80		$	17,291

FVIT PIMCO Tactical Allocation Portfolio

	Number of Contracts			Premiums Received
Options outstanding, beginning of period		—		$	—
Options written		22			7,738
Options expired		(20	)		(7,160	)
Options closed		(2	)		(578	)
Options outstanding, end of period		—		$	—

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Futures Contracts – The Portfolios are subject to equity price risk in the normal course of pursuing their investment objectives. The Portfolios may sell futures contracts to hedge against market risk and to reduce return volatility. A futures contract provides for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument (e.g., units of a stock index) for a specified price, date, time and place designated at the time the contract is made. Brokerage fees are incurred when a futures contract is bought or sold and initial and variation margin deposits must be maintained. Entering into a contract to buy is commonly referred to as buying or purchasing a contract or holding a long position. Entering into a contract to sell is commonly referred to as selling a contract or holding a short position. The Portfolios may also buy or sell hedge instruments based on one or more market indices in an attempt to maintain the Portfolios’ volatility at a targeted level. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral for the account of the broker (the Portfolio’s agent in acquiring the futures position). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by “marking to market” on a daily basis to reflect the market value of the contracts at the end of each day’s trading. Variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. When the contracts are closed, a Portfolio recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Portfolio’s basis in the contract. If a Portfolio were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Portfolio would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Each Portfolio segregates liquid securities having a value at least equal to the amount of the current obligation under any open futures contract. These amounts are disclosed on the Statements of Assets and Liabilities as Deposits with Brokers. Risks may exceed amounts recognized in the Statements of Assets and Liabilities. With futures, there is minimal counterparty credit risk to a Portfolio since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

For the period ended December 31, 2015, realized gains (losses) and the change in unrealized appreciation (depreciation) on futures contracts subject to equity price risk, as disclosed in the Statements of Operations, is as follows:

				Change in Unrealized
				Appreciation
	Realized Gain (Loss)			(Depreciation)
FVIT American Funds® Managed Risk Portfolio	$	(3,305,880	)	$	21,968
FVIT Balanced Managed Risk Portfolio	$	(726,927	)	$	(21,753	)
FVIT BlackRock Global Allocation Managed Risk Portfolio	$	(5,696,111	)	$	35,223
FVIT Franklin Dividend and Income Managed Risk Portfolio	$	(5,237,481	)	$	8,228
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio	$	(351,108	)	$	(3,248	)
FVIT Growth Managed Risk Portfolio	$	(18,325,892	)	$	159,468
FVIT Moderate Growth Managed Risk Portfolio	$	(2,220,909	)	$	(38,360	)
FVIT PIMCO Tactical Allocation Portfolio	$	(295,541	)	$	(32,959	)
FVIT Select Advisor Managed Risk Portfolio	$	(2,725,639	)	$	295
FVIT Wellington Research Managed Risk Portfolio	$	(5,085,311	)	$	(73,390	)

Swap Agreements – The FVIT Wellington Research Managed Risk Portfolio and the FVIT PIMCO Tactical Allocation Portfolio are subject to equity price risk and/or interest rate risk in the normal course of pursuing their investment objectives. The Portfolios may enter into various swap transactions for investment purposes or to manage interest rate, equity, foreign exchange (currency), or credit risk. These are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular pre-determined investments or instruments.

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index or market segment. Changes in the value of swap agreements are recognized as unrealized gains or losses in the Statement of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. A Portfolio amortizes upfront payments and/or accrues for the fixed payment stream on swap agreements on a daily basis with the net amount recorded as a component of unrealized gain or loss on the Statement of Operations. Realized gains and losses from the decrease in notional value of the swap are recognized on trade date. A liquidation payment received or made at the termination of the swap agreement is recorded as a realized gain or loss on the Statement of Operations. A Portfolio segregates cash or liquid securities having a value at least equal to the amount of its current obligation under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market and counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Each Portfolio’s maximum risk of loss from the counterparty credit risk is the discounted net value of the cash flow to be received from the counterparty over the contract’s remaining life, to be the extent that amount is positive. For the period ended December 31, 2015, the FVIT PIMCO Tactical Allocation Portfolio and the FVIT Wellington Research Managed Risk Portfolio had unrealized losses of $(15,684) and $(8,753), respectively from swap contracts. For the period ended December 31, 2015, the FVIT PIMCO Tactical Allocation Portfolio and the FVIT Wellington Research Managed Risk Portfolio had realized gains/(losses) of $47,566 and $(10,968), respectively from swap contracts.

Offsetting of Financial Assets/Liabilities and Derivative Assets/Liabilities

The following tables present each Portfolio’s asset/liability derivatives available for offset under a master netting arrangement net of collateral pledged as of December 31, 2015.

FVIT Franklin Dividend and Income Managed Risk Portfolio

Liabilities
									Gross Amounts Not Offset in
									the Statement of Assets &
									Liabilities
				Gross Amounts			Net Amounts of Liabilities
	Gross Amounts			Offset in the			Presented in the				Cash
	of Recognized			Statement of Assets &			Statement of Assets &		Financial		Collateral
Description	Liabilities			Liabilities			Liabilities		Instruments		Pledged			Net Amount
Futures Contracts	$	47,965	(1)	$	—	(1)	$	47,965	$	—	$	47,965	(2)	$	—
Total	$	47,965		$	—		$	47,965	$	—	$	47,965		$	—

(1)

Gross unrealized appreciation and depreciation as presented in the Portfolio of Investments.

(2)

The amount is limited to the net derivative balance and, accordingly, does not include excess collateral pledged of $5,636,763.

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio

Liabilities
									Gross Amounts Not Offset in
									the Statement of Assets &
									Liabilities
				Gross Amounts			Net Amounts of Liabilities
	Gross Amounts			Offset in the			Presented in the				Cash
	of Recognized			Statement of Assets &			Statement of Assets &		Financial		Collateral
Description	Liabilities			Liabilities			Liabilities		Instruments		Pledged			Net Amount
Futures Contracts	$	3,826	(1)	$	—	(1)	$	3,826	$	—	$	3,826	(2)	$	—
Options Written		6,016			—			6,016		—		6,016			—
Total	$	9,842		$	—		$	9,842	$	—	$	9,842		$	—

(1)

Gross unrealized appreciation and depreciation as presented in the Portfolio of Investments.

(2)

The amount is limited to the net derivative balance and, accordingly, does not include excess collateral pledged of $197,309.

FVIT Growth Managed Risk Portfolio

Assets
									Gross Amounts Not Offset in
									the Statement of Assets &
									Liabilities
				Gross Amounts			Net Amounts of Liabilities
	Gross Amounts			Offset in the			Presented in the				Cash
	of Recognized			Statement of Assets &			Statement of Assets &		Financial		Collateral
Description	Assets			Liabilities			Liabilities		Instruments		Pledged			Net Amount
Futures Contracts	$	43,460	(1)	$	—	(1)	$	43,460	$	—	$	43,460	(2)	$	—
Total	$	43,460		$	—		$	43,460	$	—	$	43,460		$	—

(1)

Gross unrealized appreciation and depreciation as presented in the Portfolio of Investments.

(2)

The amount is limited to the net derivative balance and, accordingly, does not include excess collateral pledged of $22,818,289.

FVIT PIMCO Tactical Allocation Portfolio

Liabilities
									Gross Amounts Not Offset in
									the Statement of Assets &
									Liabilities
				Gross Amounts			Net Amounts of Liabilities
	Gross Amounts			Offset in the			Presented in the				Cash
	of Recognized			Statement of Assets			Statement of Assets &		Financial		Collateral
Description	Liabilities			& Liabilities			Liabilities		Instruments		Pledged			Net Amount
Futures Contracts	$	32,959	(1)	$	—	(1)	$	31,959	$	—	$	31,959	(2)	$	—
Swap Contracts		15,684			—			15,684		—		15,684			—
Total	$	48,643		$	—		$	47,643	$	—	$	47,643		$	—

(1)

Gross unrealized appreciation and depreciation as presented in the Portfolio of Investments.

(2)

The amount is limited to the net derivative balance and, accordingly, does not include excess collateral pledged of $209,061.

100

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

FVIT Select Advisor Managed Risk Portfolio

Assets
									Gross Amounts Not Offset in
									the Statement of Assets &
									Liabilities
				Gross Amounts			Net Amounts of Liabilities
	Gross Amounts			Offset in the			Presented in the				Cash
	of Recognized			Statement of Assets &			Statement of Assets &		Financial		Collateral
Description	Assets			Liabilities			Liabilities		Instruments		Pledged			Net Amount
Futures Contracts	$	40	(1)	$	—	(1)	$	40	$	—	$	40	(2)	$	—
Total	$	40		$	—		$	40	$	—	$	40		$	—

(1)

Gross unrealized appreciation and depreciation as presented in the Portfolio of Investments.

(2)

The amount is limited to the net derivative balance and, accordingly, does not include excess collateral pledged of $5,195,719.

FVIT Wellington Research Managed Risk Portfolio

Liabilities
									Gross Amounts Not Offset in
									the Statement of Assets &
									Liabilities
				Gross Amounts			Net Amounts of Liabilities
	Gross Amounts			Offset in the			Presented in the				Cash
	of Recognized			Statement of Assets &			Statement of Assets &		Financial		Collateral
Description	Liabilities			Liabilities			Liabilities		Instruments		Pledged			Net Amount
Futures Contracts	$	2,800	(1)	$	—	(1)	$	2,800	$	—	$	2,800	(2)	$	—
Swap Contracts		8,753			—			8,753		—		8,753			—
Total	$	11,553		$	—		$	11,553	$	—	$	11,553		$	—

(1)

Gross unrealized appreciation and depreciation as presented in the Portfolio of Investments.

(2)

The amount is limited to the net derivative balance and, accordingly, does not include excess collateral pledged of $13,423,837.

101

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Impact of Derivatives on the Statement of Assets and Liabilities and Statement of Operations

The following is a summary of the location of derivative investments on the FVIT PIMCO Tactical Allocation Portfolio’s Statement of Assets and Liabilities as of December 31, 2015:

Location on the Statement of Assets and Liabilities
Derivatives Investment Type		Asset Derivatives
Equity/Interest Rate/Currency Contracts		Investments in securities, at value
		Unrealized depreciation on futures contracts
		Unrealized depreciation on swap contracts
		Unrealized depreciation on forward foreign currency contracts

The following table sets forth the fair value of the FVIT PIMCO Tactical Allocation Portfolio’s and FVIT Wellington Research Managed Risk Portfolio’s derivative contracts by primary risk exposure as of December 31, 2015:

FVIT PIMCO Tactical Allocation Portfolio

Derivatives Investment Fair Value

										Total as of
	Equity			Interest Rate			Currency			December 31, 2015
Options Purchased on Indices	$	201,740		$	—		$	—		$	201,740
Options Purchased on Futures		—			29			—			29
Futures Contracts		(27,432	)		(2,555	)		(1,972	)		(31,959	)
Swap Contracts		—			(15,415	)		—			(15,415	)
Swaption		—			(269	)
Forward Foreign Currency Contracts		—			(2,882	)		—			(2,882	)
Total	$	174,308		$	(21,092	)	$	(1,972	)	$	151,513

FVIT Wellington Research Managed Risk Portfolio

Derivatives Investment Fair Value

										Total as of
	Equity			Interest Rate			Currency			December 31, 2015
Futures Contracts	$	(2,800	)	$	—		$	—		$	(2,800	)
Swap Contracts		—			(8,753	)		—			(8,753	)
Total	$	(2,800	)	$	(8,753	)	$	—		$	(11,553	)

102

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

The following is a summary of the location of derivative investments on the FVIT PIMCO Tactical Allocation Portfolio’s Statement of Operations for the period ended December 31, 2015:

Derivative Investment Type		Location of Gain (Loss) on Derivatives
Equity/Interest Rate/ Currency Contracts		Net realized gain (loss) on:
		Investments
		Futures contracts
		Swap contracts
		Options written
		Foreign currency translations
		Net change in unrealized appreciation/(depreciation) on:
		Investments
		Futures contracts
		Swap contracts
		Foreign currency translations

The following is a summary of the FVIT PIMCO Tactical Allocation Portfolio’s realized and unrealized gain (loss) on derivative investments recognized in the Statement of Operations categorized by primary risk exposure for the period ended December 31, 2015:

Net change in unrealized appreciation/(depreciation) on derivatives recognized in the
Statement of Operations

										Total as of
	Equity			Interest Rate			Currency			December 31, 2015
Options Purchased	$	(35,447	)	$	—		$	—		$	(35,447	)
Options Written		—			(3	)		—			(3	)
Futures Contracts		(27,432	)		(2,555	)		(1,972	)		(31,959	)
Swap Contracts		—			(15,415	)		—			(15,415	)
Swaption Contract		—			(269	)		—			(269	)
Forward Foreign Currency Contracts		—			(2,882	)		—			(2,882	)
Total	$	(62,879	)	$	(21,124	)	$	(1,972	)	$	(85,706	)

Realized gain/(loss) on derivatives recognized in the Statement of Operations

										Total for the period ended
	Equity			Interest Rate			Currency			December 31, 2015
Options Written	$	—		$	7,132		$	—		$	7,156
Futures Contracts		(189,543	)		(105,802	)		—			(295,541	)
Options Purchased		47,026			—			—			47,026
Swap Contracts		—			47,642			—			47,566
Forward Foreign Currency Contracts		—			—			(6,379	)		(6,379	)
Total	$	(142,517	)	$	(51,028	)	$	(6,379	)	$	(200,172	)

103

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

The following is a summary of the location of derivative investments on the FVIT Wellington Research Managed Risk Portfolio’s Statement of Operations for the year ended December 31, 2015:

Derivative Investment Type		Location of Gain (Loss) on Derivatives
Equity/Interest Rate/ Currency Contracts		Net realized gain (loss) on:
		Futures contracts
		Swap contracts
		Net change in unrealized appreciation/(depreciation) on:
		Futures contracts
		Swap contracts

The following is a summary of the FVIT Wellington Research Managed Risk Portfolio’s realized and unrealized gain (loss) on derivative investments recognized in the Statement of Operations categorized by primary risk exposure for the year ended December 31, 2015:

Net change in unrealized appreciation/(depreciation) on derivatives recognized in the
Statement of Operations

									Total as of
	Equity			Interest Rate			Currency		December 31, 2015
Futures Contracts	$	(73,390	)	$	—		$	—	$	(73,390	)
Swap Contracts		—			(8,753	)		—		(8,753	)
Total	$	(73,390	)	$	(8,753	)	$	—	$	(82,143	)

Realized gain/(loss) on derivatives recognized in the Statement of Operations

									Total for the period ended
	Equity			Interest Rate			Currency		December 31, 2015
Futures Contracts	$	(5,085,311	)	$	—		$	—	$	(5,085,311	)
Swap Contracts		—			(10,968	)		—		(10,968	)
Total	$	(5,085,311	)	$	(10,968	)	$	—	$	(5,096,279	)

The notional value of the derivative instruments outstanding as of December 31, 2015 as disclosed in the Portfolios of Investments and the amounts of realized and changes in unrealized gains and losses on derivative instruments during the period as disclosed above and within in the Statements of Operations serve as indicators of the volume of derivative activity for the Portfolios.

When-Issued and Delayed-Delivery Transactions – The Portfolios may engage in when-issued or delayed-delivery transactions. The Portfolios record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

104

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Dollar Roll Transactions – A mortgage dollar roll transaction involves a sale by the portfolio of mortgage related securities that it holds with an agreement by the Portfolios to repurchase similar securities at an agreed upon price and date. The securities purchased will bear the same interest rate as those sold, but generally will be collateralized by pools of mortgages with different prepayment histories than those securities sold. The Portfolios account for mortgage dollar rolls as purchases and sales transactions.

Credit Risk – There is a risk that security issuers will not make interest and/or principal payments on their securities. In addition, the credit quality of securities may be lowered if an issuer’s financial condition changes. Lower credit quality will lead to greater volatility in the price of a security and in shares of the Portfolio. Lower credit quality also will affect liquidity and make it difficult for the Portfolio to sell the security. This means that, compared to issuers of higher rated securities, issuers of lower rated securities are less likely to have the capacity to pay interest and repay principal when due in the event of adverse business, financial or economic conditions and/or may be in default or not current in the payment of interest or principal. Default, or the market’s perception that an issuer is likely to default, tends to reduce the value and liquidity of securities held by the Portfolio, thereby reducing the value of your investment in Portfolio shares. In addition, default may cause the Portfolio to incur expenses in seeking recovery of principal or interest on its portfolio holdings.

Derivatives Risk – The Portfolio’s use of derivatives may reduce the Portfolio’s returns and/or increase volatility. Volatility is defined as the characteristic of a security, an index or a market to fluctuate significantly in price within a short time period. Many types of derivatives are also subject to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. A risk of the Portfolio’s use of derivatives is that the fluctuations in their values may not correlate perfectly with the overall securities markets. The possible lack of a liquid secondary market for derivatives and the resulting inability of the Portfolio to sell or otherwise close-out a derivatives position could expose the Portfolio to losses and could make derivatives more difficult for the Portfolio to value accurately.

Market Risk – The market prices of the Portfolio’s securities may go up or down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes in interest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Each Portfolio invests in instruments that may be more volatile and carry more risk than some other forms of investment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. Market prices of securities also may go down due to events or conditions that affect particular sectors, industries or issuers. When market prices fall, the value of your investment will go down. The Portfolio may experience a substantial or complete loss on any individual security. The global financial crisis that began in 2008 has caused a significant decline in the value and liquidity of many securities and unprecedented volatility in the markets. Governmental and non-governmental issuers (notably in Europe) have defaulted on, or been forced to restructure their debts; and many other issuers have faced difficulties obtaining credit or refinancing existing obligations. These market conditions may continue, worsen or spread, including in the United States, Europe and elsewhere. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In response to the crisis, the U.S. government and the Federal Reserve, as well as certain foreign governments and their central banks have taken steps to support financial markets, including by keeping interest rates low. More recently, the Federal Reserve has reduced its market support activities. Further reduction or withdrawal of this support, failure of efforts in response to the crisis, or investor perception that such efforts are not succeeding could negatively affect financial markets generally and increase market volatility as well as reduce the value and liquidity of certain securities. This environment could make identifying investment risks and opportunities especially difficult for the sub-adviser. Whether or not the Portfolio invests in securities of issuers located in or with significant exposure to countries experiencing economic and financial difficulties, the value and liquidity of the Portfolio’s investments may be negatively affected. In addition, policy and legislative changes in the United States and in other countries are affecting many aspects of financial regulation. The impact of these changes on the markets, and the practical implications for market participants, may not be fully known for some time. In addition, market prices of securities in broad market segments may be adversely affected by a prominent issuer having experienced losses or by the lack of earnings or such an issuer’s failure to meet the market’s expectations with respect to new products or services, or even by factors wholly unrelated to the value or condition of the issuer, such as changes in interest rates.

105

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Expenses – Expenses of the Trust that are directly identifiable to a specific Portfolio are charged to that Portfolio. Expenses, which are not readily identifiable to a specific Portfolio, are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative sizes of the Portfolios in the Trust.

Indemnification – The Trust indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their duties to the Trust. Additionally, in the normal course of business, the Portfolios enter into contracts that contain a variety of representations and warranties and which provide general indemnities. Each Portfolio’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolios that have not yet occurred. However, the Portfolios expect the risk of loss due to these warranties and indemnities to be remote.

INVESTMENT TRANSACTIONS

For the year ended December 31, 2015, cost of purchases and proceeds from sales of portfolio securities, other than short-term investments, were as follows:

Portfolio	Purchases		Sales
FVIT American Funds® Managed Risk Portfolio	$	111,074,693	$	33,839,478
FVIT Balanced Managed Risk Portfolio		54,801,564		20,994,331
FVIT BlackRock Global Allocation Managed Risk Portfolio		127,556,246		1,905,696
FVIT Franklin Dividend and Income Managed Risk Portfolio		82,569,124		3,337,999
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio		13,991,543		957,890
FVIT Growth Managed Risk Portfolio		278,381,718		84,072,520
FVIT Moderate Growth Managed Risk Portfolio		80,157,193		20,045,506
FVIT PIMCO Tactical Allocation Portfolio		35,253,477		21,382,227
FVIT Select Advisor Managed Risk Portfolio		66,302,981		17,116,412
FVIT Wellington Research Managed Risk Portfolio		587,717,110		362,232,230

The aggregate amount of purchases and sales for FVIT Wellington Research Managed Risk Portfolio (including paydowns) of investment securities, excluding short-term securities and financial futures during the year ended December 31, 2015, amounted to $587,764,017 and $362,479,422 respectively of which $190,849,653 in purchases and $185,630,889 in sales were from mortgage dollar roll transactions.

The aggregate amount of purchases and sales for FVIT PIMCO Tactical Allocation Portfolio (including paydowns) of investment securities, excluding short-term securities and financial futures during the period ended December 31, 2015, amounted to $35,253,477 and $21,832,227 respectively of which $13,376,625 in purchases and $11,412,182 in sales were from mortgage dollar roll transactions.

INVESTMENT ADVISORY AGREEMENT / TRANSACTIONS WITH AFFILIATES

Forethought Investment Advisors, LLC (the “Adviser”) serves as the Portfolios’ investment adviser. The Adviser has engaged Milliman Financial Risk Management, LLC (“Milliman”) as a sub-adviser for each Portfolio other than FVIT Goldman Sachs Dynamic Trends Allocation Portfolio and FVIT PIMCO Tactical Allocation Portfolio. The Adviser has also engaged Wellington Management Company, LLP (“Wellington”) as the sub-adviser for FVIT Wellington Research Managed Risk Portfolio, Franklin Advisory Services, LLC (“Franklin”) as the sub-adviser for FVIT Franklin Dividend and Income Managed Risk Portfolio, Goldman Sachs Asset Management, L.P. (“GSAM”) as the sub-adviser for FVIT Goldman Sachs Dynamic Trends Allocation Portfolio, and Pacific Investment Management Company LLC (“PIMCO”), as the sub-adviser for FVIT PIMCO Tactical Allocation Portfolio. The Portfolios have employed Gemini Fund Services, LLC (“GFS”) to provide administration, fund accounting and transfer agent services. Certain officers of the Trust are also officers of GFS.

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FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Pursuant to an Advisory Agreement with the Trust, on behalf of the Portfolios, the Adviser, under the oversight of the Board, directs the daily investment operations of the Portfolios and supervises the performance of administrative and professional services provided by others. As compensation for its services and the related expenses borne by the Adviser, the Portfolios pay the Adviser a management fee, computed on average daily net assets and accrued daily and paid monthly. The following chart details the annual fee for each Portfolio. Pursuant to sub-advisory agreements, the Adviser pays Milliman, Franklin (with respect to the FVIT Franklin Dividend and Income Managed Risk Portfolio), GSAM (with respect to the FVIT Goldman Sachs Dynamic Trends Allocation Portfolio), PIMCO (with respect to the FVIT PIMCO Tactical Allocation Portfolio and Wellington (with respect to the FVIT Wellington Research Managed Risk Portfolio) each a fee, which is computed and paid monthly.

Portfolio	Advisory Fee*
FVIT American Funds® Managed Risk Portfolio ¹	0.900% of the first $500 million,
	0.875% of the next $500 million
	and 0.850% over $1 billion

FVIT Balanced Managed Risk Portfolio ²	0.550% of the first $500 million,
	0.525% of the next $500 million
	and 0.500% over $1 billion

FVIT BlackRock Global Allocation Managed Risk Portfolio	0.90%
FVIT Franklin Dividend and Income Managed Risk Portfolio	0.850% of the first $500 million,
	0.825% of the next $500 million
	and 0.800% over $1 billion

FVIT Goldman Sachs Dynamic Trends Allocation Portfolio	0.850% of the first $500 million,
	0.825% of the next $500 million
	and 0.800% over $1 billion

FVIT Growth Managed Risk Portfolio	0.550% of the first $500 million,
	0.525% of the next $500 million
	and 0.500% over $1 billion

FVIT Moderate Growth Managed Risk Portfolio	0.550% of the first $500 million,
	0.525% of the next $500 million
	and 0.500% over $1 billion

FVIT PIMCO Tactical Allocation Portfolio	0.850% of the first $500 million,
	0.825% of the next $500 million
	and 0.800% over $1 billion

FVIT Select Advisor Managed Risk Portfolio	0.900% of the first $500 million,
	0.875% of the next $500 million
	and 0.850% over $1 billion

FVIT Wellington Research Managed Risk Portfolio ³	0.850% of the first $500 million,
	0.825% of the next $500 million
	and 0.800% over $1 billion

Calculated daily based on the prior day’s net assets.

1 – Prior to February 11, 2014, the Portfolio’s advisory fee was 0.90%.

2 – Prior to February 11, 2014, the Portfolio’s advisory fee was 0.55%.

3 – Prior to February 11, 2014, the Portfolio’s advisory fee was 0.85%.

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FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

With respect to each Portfolio, the Adviser has contractually agreed to waive its fees and to reimburse expenses, at least until April 30, 2016, to ensure that total annual portfolio operating expenses after fee waiver and/or reimbursement (exclusive of any front-end or contingent deferred loads, brokerage fees and commissions, acquired fund fees and expenses, borrowing costs (such as interest and dividend expense on securities sold short), taxes and extraordinary expenses, such as litigation) will not exceed the average daily net asset percentages attributable to the Portfolio’s shares listed below (“Waiver Agreement”). The expense reimbursement is subject to possible recoupment from the Portfolio in future years on a rolling three year basis (within the three years after the fees have been waived or reimbursed) if such recoupment can be achieved within the foregoing expense limit. The agreements may be terminated only by the Portfolio’s Board of Trustees, on 60 days’ written notice to the Adviser.

In addition, the Adviser has agreed to waive 0.40% of its fees for FVIT American Funds® Managed Risk Portfolio, FVIT BlackRock Global Allocation Managed Risk Portfolio and FVIT Select Advisor Managed Risk Portfolio for as long as each Portfolio relies primarily on investments in underlying funds to achieve its principal investment strategy. This waiver is not subject to recoupment.

Portfolio	Expense Limitation
FVIT American Funds® Managed Risk Portfolio	0.86%
FVIT Balanced Managed Risk Portfolio	0.91%
FVIT BlackRock Global Allocation Managed Risk Portfolio	0.57%
FVIT Franklin Dividend and Income Managed Risk Portfolio	1.08%
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio	1.16%
FVIT Growth Managed Risk Portfolio	0.91%
FVIT Moderate Growth Managed Risk Portfolio	0.91%
FVIT PIMCO Tactical Allocation Portfolio	1.14%
FVIT Select Advisor Managed Risk Portfolio	0.63%
FVIT Wellington Research Managed Risk Portfolio	1.20%

For the year ended December 31, 2015, the Adviser waived fees as follows:

Portfolio	Waiver
FVIT American Funds® Managed Risk Portfolio	$	663,769
FVIT Balanced Managed Risk Portfolio	$	6,116
FVIT BlackRock Global Allocation Managed Risk Portfolio	$	1,620,149
FVIT Franklin Dividend and Income Managed Risk Portfolio	$	181,292
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio	$	4,593
FVIT Growth Managed Risk Portfolio	$	39,670
FVIT Moderate Growth Managed Risk Portfolio	$	9,244
FVIT PIMCO Tactical Allocation Portfolio	$	6,514
FVIT Select Advisor Managed Risk Portfolio	$	563,898
FVIT Wellington Research Managed Risk Portfolio	$	29,627

If the Adviser waives any fee or reimburses any expense pursuant to the Waiver Agreement, and the Portfolio’s operating expenses are subsequently less than the expense limitation, the Adviser shall be entitled to reimbursement by the Portfolio for such waived fees or reimbursed expenses provided that such reimbursement does not cause the Portfolio’s expenses to exceed the amount of the expense limitation. If Portfolio operating expenses subsequently exceed the expense limitation, the reimbursements shall be suspended.

108

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

The Adviser may recapture the following amounts by the following dates:

Portfolio	December 31, 2016		December 31, 2017		December 31, 2018
FVIT American Funds® Managed Risk Portfolio	$	11,939	$	43,219	$	10,091
FVIT Balanced Managed Risk Portfolio	$	11,885	$	10,495	$	6,116
FVIT BlackRock Global Allocation Managed Risk Portfolio	$	13,004	$	302,097	$	687,468
FVIT Franklin Dividend and Income Managed Risk Portfolio		N/A	$	43,581	$	181,292
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio		N/A		N/A	$	4,593
FVIT Growth Managed Risk Portfolio		N/A	$	—	$	39,670
FVIT Moderate Growth Managed Risk Portfolio		N/A	$	—	$	9,244
FVIT PIMCO Tactical Allocation Portfolio		N/A		N/A	$	6,514
FVIT Select Advisor Managed Risk Portfolio	$	12,066	$	80,814	$	208,612
FVIT Wellington Research Managed Risk Portfolio	$	14,217	$	67,806	$	29,627

The Trust, on behalf of the Portfolios, has adopted a distribution and shareholder servicing plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act for Class II shares. The fee charged under the Plan is calculated at an annual rate of 0.25% of the average daily net assets attributable to each Portfolio’s Class II shares and is paid to Northern Lights Distributors, LLC (the “Distributor”), to provide compensation for ongoing distribution-related activities or services and/or maintenance of the Portfolios’ shareholder accounts, not otherwise required to be provided by the Adviser. The Distributor is an affiliate of GFS.

Pursuant to the terms of an administrative servicing agreement with GFS, each Portfolio pays to GFS a monthly fee for all operating expenses of the Portfolio, which is calculated by each Portfolio on its average daily net assets. Operating expenses include but are not limited to fund accounting, fund administration, transfer agency, legal fees, audit fees, compliance services, shareholder reporting expenses, trustees’ fees and custody fees. The approved entities may be affiliates of GFS. GFS provides a Principal Financial Officer to the Portfolios.

For the year ended December 31, 2015, the Trustees received fees as follows:

	Fees
Portfolio	Received
FVIT American Funds® Managed Risk Portfolio	$	17,531
FVIT Balanced Managed Risk Portfolio		17,531
FVIT BlackRock Global Allocation Managed Risk Portfolio		17,531
FVIT Franklin Dividend and Income Managed Risk Portfolio		17,531
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio		12,376
FVIT Growth Managed Risk Portfolio		17,531
FVIT Moderate Growth Managed Risk Portfolio		17,531
FVIT PIMCO Tactical Allocation Portfolio		12,376
FVIT Select Advisor Managed Risk Portfolio		17,531
FVIT Wellington Research Managed Risk Portfolio		17,531

Certain affiliates of the Distributor and GFS provide ancillary services to the Portfolios as follows:

Blu Giant, LLC (“Blu Giant”) – Blu Giant, an affiliate of GFS and the Distributor, provides EDGAR conversion and filing services as well as print management services for the Portfolios on an ad-hoc basis. For the provision of these services, Blu Giant receives customary fees from GFS under the administrative servicing agreement.

109

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

CONTROL OWNERSHIP

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a Portfolio creates a presumption of the control of the Portfolio, under section 2(a)(9) of the 1940 Act. As of December 31, 2015, Forethought Life Insurance Company Separate Account A held 100% of the voting securities of each Portfolio for the benefit of others. The Trust has no knowledge as to whether all or any portion of the shares owned of record are also owned beneficially.

Shareholder Concentration Risk — Forethought Life Insurance Company, certain accounts, or the Adviser’s affiliates may from time to time own (beneficially or of record) or control a significant percentage of a Portfolio’s shares. Redemptions by these entities of their holdings in the Portfolio may impact the Portfolio’s liquidity and NAV. These redemptions may also force a Portfolio to sell securities.

DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL

The tax character of distributions paid during the periods ended December 31, 2015 and December 31, 2014 was as follows:

	For the period ended December 31, 2015
	Ordinary		Long-Term		Return of
Fund	Income		Capital Gains		Capital		Total
FVIT American Funds Managed Risk Portfolio	$	1,455,718	$	—	$	—	$	1,455,718
FVIT Balanced Managed Risk Portfolio		295,453		—		—		295,453
FVIT BlackRock Global Allocation Managed Risk Portfolio		4,169,755		10,086,057		—		14,255,812
FVIT Franklin Dividend and Income Managed Risk Portfolio		615,993		—		—		615,993
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio		5,079		—		—		5,079
FVIT Growth Managed Risk Portfolio		1,298,520		—		—		1,298,520
FVIT Moderate Growth Managed Risk Portfolio		337,034		—		—		337,034
FVIT PIMCO Tactical Allocation Portfolio		104,819		—		7,122		111,941
FVIT Select Advisor Managed Risk Portfolio		383,808		—		—		383,808
FVIT Wellington Research Managed Risk Portfolio		355,166		—		—		355,166

	For the period ended December 31, 2014
	Ordinary		Long-Term		Return of
Fund	Income		Capital Gains		Capital		Total
FVIT American Funds Managed Risk Portfolio	$	59,598	$	2,025	$	—	$	61,623
FVIT Balanced Managed Risk Portfolio		5,557		3		—		5,560
FVIT BlackRock Global Allocation Managed Risk Portfolio		135,328		116,166		—		251,494
FVIT Franklin Dividend and Income Managed Risk Portfolio		—		—		—		—
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio		—		—		—		—
FVIT Growth Managed Risk Portfolio		—		—		—		—
FVIT Moderate Growth Managed Risk Portfolio		—		—		—		—
FVIT PIMCO Tactical Allocation Portfolio		—		—		—		—
FVIT Select Advisor Managed Risk Portfolio		4,652		—		—		4,652
FVIT Wellington Research Managed Risk Portfolio		62,178		13,004		—		75,182

110

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

As of December 31, 2015, the components of accumulated earnings/(deficit) on a tax basis were as follows

	Undistributed		Undistributed		Capital Loss			Post October Loss			Unrealized			Total
	Ordinary		Long-Term		Carry			and			Appreciation/			Accumulated
Fund	Income		Capital Gains		Forwards			Late Year Loss			(Depreciation)			Earnings/(Deficits)
FVIT American Funds Managed Risk Portfolio	$	2,759,817	$	7,732,626	$	—		$	—		$	(13,722,730	)	$	(3,230,287	)
FVIT Balanced Managed Risk Portfolio		819,686		—		(904,029	)		—			(282,863	)		(367,206	)
FVIT BlackRock Global Allocation Managed		3,758,376		5,627,623		—			—			(35,708,449	)		(26,322,450	)
FVIT Franklin Dividend and Income Managed Risk Portfolio		1,543,994		—		(5,668,817	)		—			(4,466,699	)		(8,591,522	)
FVIT Goldman Sachs Dynamic Trends		756		—		(467,474	)		(59,477	)		(28,030	)		(554,225	)
FVIT Growth Managed Risk Portfolio		4,732,844		—		(19,665,868	)		—			(6,760,600	)		(21,693,624	)
FVIT Moderate Growth Managed Risk		1,264,326		—		(2,331,992	)		—			(1,613,967	)		(2,681,633	)
FVIT PIMCO Tactical Allocation Portfolio		—		—		(246,756	)		(215,903	)		(140,022	)		(602,681	)
FVIT Select Advisor Managed Risk Portfolio		1,256,183		—		(1,660,189	)		—			(1,476,057	)		(1,880,063	)
FVIT Wellington Research Managed Risk		1,017,261		—		(6,634,689	)		—			7,054,831			1,437,403

The difference between book basis and tax basis unrealized appreciation (depreciation), undistributed ordinary income (loss) and accumulated net realized gain (loss) from investments is primarily attributable to the tax deferral of losses on wash sales, adjustments for Treasury Inflation Protected Securities, return of capital distributions from C-Corporations and the mark-to-market on open futures contracts, forward foreign currency contracts and swaps.

Capital losses incurred after October 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Portfolios incurred and elected to defer such capital losses as follows:

	Post October
Fund	Losses
FVIT American Funds Managed Risk Portfolio	$	—
FVIT Balanced Managed Risk Portfolio		—
FVIT BlackRock Global Allocation Managed Risk Portfolio		—
FVIT Franklin Dividend and Income Managed Risk Portfolio		—
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio		59,477
FVIT Growth Managed Risk Portfolio		—
FVIT Moderate Growth Managed Risk Portfolio		—
FVIT PIMCO Tactical Allocation Portfolio		195,941
FVIT Select Advisor Managed Risk Portfolio		—
FVIT Wellington Research Managed Risk Portfolio		—

111

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Late year losses incurred after December 31 within the fiscal year are deemed to arise on the first business day of the following fiscal year for tax purposes. The Portfolios incurred and elected to defer such late year losses as follows:

	Late Year
Fund	Losses
FVIT American Funds Managed Risk Portfolio	$	—
FVIT Balanced Managed Risk Portfolio		—
FVIT BlackRock Global Allocation Managed Risk Portfolio		—
FVIT Franklin Dividend and Income Managed Risk Portfolio		—
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio		—
FVIT Growth Managed Risk Portfolio		—
FVIT Moderate Growth Managed Risk Portfolio		—
FVIT PIMCO Tactical Allocation Portfolio		19,962
FVIT Select Advisor Managed Risk Portfolio		—
FVIT Wellington Research Managed Risk Portfolio		—

At December 31, 2015, the Portfolios had capital loss carry forwards for federal income tax purposes available to offset future capital gains as follows:

Fund	Short-Term		Long-Term		Total		Expiration
FVIT American Funds Managed Risk Portfolio	$	—	$	—	$	—
FVIT Balanced Managed Risk Portfolio		409,160		494,869		904,029	Non-Expiring
FVIT BlackRock Global Allocation Managed Risk Portfolio		—		—		—
FVIT Franklin Dividend and Income Managed Risk Portfolio		2,278,850		3,389,967		5,668,817	Non-Expiring
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio		230,239		237,235		467,474	Non-Expiring
FVIT Growth Managed Risk Portfolio		7,137,411		12,528,457		19,665,868	Non-Expiring
FVIT Moderate Growth Managed Risk Portfolio		918,226		1,413,766		2,331,992	Non-Expiring
FVIT PIMCO Tactical Allocation Portfolio		173,375		73,381		246,756	Non-Expiring
FVIT Select Advisor Managed Risk Portfolio		1,006,855		653,334		1,660,189	Non-Expiring
FVIT Wellington Research Managed Risk Portfolio		4,179,166		2,455,523		6,634,689	Non-Expiring

112

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

Permanent book and tax differences, primarily attributable to the book/ tax basis treatment of non-deductible expenses, paydowns and foreign currency losses, the reclassification of Portfolio distributions, and adjustments related to real estate investment trusts and swaps, resulted in reclassification for the following Portfolios for the period ended December 31, 2015 as follows:

	Paid			Undistributed			Accumulated
	In			Ordinary			Net Realized
Fund	Capital			Income (Loss)			Gains (Loss)
FVIT American Funds Managed Risk Portfolio	$	—		$	—		$	—
FVIT Balanced Managed Risk Portfolio		—			—			—
FVIT BlackRock Global Allocation Managed Risk Portfolio		—			—			—
FVIT Franklin Dividend and Income Managed Risk Portfolio		—			—			—
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio		(380	)		(1,439	)		1,819
FVIT Growth Managed Risk Portfolio		—			—			—
FVIT Moderate Growth Managed Risk Portfolio		—			—			—
FVIT PIMCO Tactical Allocation Portfolio		(7,122	)		62,023			(54,901	)
FVIT Select Advisor Managed Risk Portfolio		—			—			—
FVIT Wellington Research Managed Risk Portfolio		—			(32,960	)		32,960

UNDERLYING INVESTMENTS IN OTHER INVESTMENT COMPANIES

The FVIT American Funds® Managed Risk Portfolio currently invests a portion of its assets in American Funds Insurance Series – Bond Fund. The American Funds Insurance Series – Bond Fund is registered under the 1940 Act as an open-end management investment company. The Portfolio may redeem its investment from the American Funds Insurance Series – Bond Fund at any time if the Adviser determines that it is in the best interest of the Portfolio and its shareholders to do so.

The performance of the Portfolio may be directly affected by the performance of the American Funds Insurance Series – Bond Fund. The financial statements of the American Funds Insurance Series – Bond Fund, including the portfolio of investments, can be found at the Securities and Exchange Commission’s website www.sec.gov and should be read in conjunction with the Portfolio’s financial statements. As of December 31, 2015, the Portfolio invested 29.9% of its net assets in the American Funds Insurance Series – Bond Fund.

The FVIT Balanced Managed Risk Portfolio currently invests a portion of its assets in iShares Core U.S. Aggregate Bond ETF. The iShares Core U.S. Aggregate Bond ETF is registered under the 1940 Act as an open-end management investment company. The Portfolio may redeem its investment from the iShares Core U.S. Aggregate Bond ETF at any time if the Adviser determines that it is in the best interest of the Portfolio and its shareholders to do so.

The performance of the Portfolio may be directly affected by the performance of the iShares Core U.S. Aggregate Bond ETF. The financial statements of the iShares Core U.S. Aggregate Bond ETF, including the portfolio of investments, can be found at the Securities and Exchange Commission’s website www.sec.gov and should be read in conjunction with the Portfolio’s financial statements. As of December 31, 2015, the Portfolio invested 28.7% of its net assets in the iShares Core U.S. Aggregate Bond ETF.

113

FVIT Portfolios

NOTES TO FINANCIAL STATEMENTS (Continued)

December 31, 2015

The FVIT BlackRock Global Allocation Managed Risk Portfolio currently invests a portion of its assets in BlackRock Global Allocation V.I. Fund. The BlackRock Global Allocation V.I. Fund is registered under the 1940 Act as an open-end management investment company. The Portfolio may redeem its investment from the BlackRock Global Allocation V.I. Fund at any time if the Adviser determines that it is in the best interest of the Portfolio and its shareholders to do so.

The performance of the Portfolio may be directly affected by the performance of the BlackRock Global Allocation V.I. Fund. The financial statements of the BlackRock Global Allocation V.I. Fund, including the portfolio of investments, can be found at the Securities and Exchange Commission’s website www.sec.gov and should be read in conjunction with the Portfolio’s financial statements. As of December 31, 2015, the Portfolio invested 95.0% of its net assets in the BlackRock Global Allocation V.I. Fund.

The FVIT Balanced Managed Risk Portfolio, FVIT Growth Managed Risk Portfolio, and FVIT Moderate Growth Managed Risk Portfolio currently invest a portion of their assets in iShares Core S&P 500 ETF. The iShares Core S&P 500 ETF is registered under the 1940 Act as an open-end management investment company. The Portfolio may redeem its investment from the iShares Core S&P 500 ETF at any time if the Adviser determines that it is in the best interest of the Portfolio and its shareholders to do so.

The performance of the Portfolios may be directly affected by the performance of the iShares Core S&P 500 ETF. The financial statements of the iShares Core S&P 500 ETF, including the portfolio of investments, can be found at the Securities and Exchange Commission’s website www.sec.gov and should be read in conjunction with the Portfolio’s financial statements. As of December 31, 2015, the Portfolios invested the following of percentages of their respective net assets in the iShares Core S&P 500 ETF:

FVIT Balanced Managed Risk Portfolio		35.4%
FVIT Growth Managed Risk Portfolio		46.6%
FVIT Moderate Growth Managed Risk Portfolio		40.9%

The FVIT Goldman Sachs Dynamic Trends Allocation Portfolio currently invests a portion of its assets in the Fidelity Institutional Money Market - Money Market Portfolio (the “Fidelity Portfolio”). The Fidelity Portfolio is registered under the 1940 Act as an open-end management investment company. The Portfolio may redeem its investment from the Fidelity Portfolio at any time if the Adviser determines that it is in the best interest of the Portfolio and its shareholders to do so.

The performance of the Portfolio may be directly affected by the performance of the Fidelity Portfolio. The financial statements of the Fidelity Portfolio, including the portfolio of investments, can be found at the Securities and Exchange Commission’s website www.sec.gov and should be read in conjunction with the Portfolio’s financial statements. As of December 31, 2015, the Portfolio invested 29.7% of its net assets in the Fidelity Portfolio.

NEW ACCOUNTING PRONOUNCEMENT

In May 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-07 “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).” Investment companies are permitted to measure the fair value of certain privately offered investments using the NAV per share of the investment. Measuring the fair value of an investment this way is called using the NAV practical expedient. Prior to the amendments in ASU No. 2015-07, investments valued using the NAV practical expedient were required to be categorized within the fair value hierarchy. The amendments in ASU No. 2015-07 remove the requirement to categorize within the fair value hierarchy investments measured using the NAV practical expedient. The ASU also removes certain disclosure requirements for investments that qualify, but do not utilize, the NAV practical expedient. The amendments in the ASU are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is allowed. Management is currently evaluating the impact these changes will have on the Portfolio’s financial statements and related disclosures.

SUBSEQUENT EVENTS

Subsequent events after the date of the statements of assets and liabilities have been evaluated through the date the financial statements were issued. Management has concluded that no events or transactions occurred requiring adjustment or disclosure in the financial statements.

114

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Forethought Variable Insurance Trust

and the Shareholders of FVIT American Funds® Managed Risk Portfolio, FVIT Balanced Managed Risk Portfolio, FVIT BlackRock Global Allocation Managed Risk Portfolio, FVIT Franklin Dividend and Income Managed Risk Portfolio, FVIT Growth Managed Risk Portfolio, FVIT Goldman Sachs Dynamic Trends Allocation Portfolio, FVIT Moderate Growth Managed Risk Portfolio, FVIT PIMCO Tactical Allocation Portfolio, FVIT Select Advisor Managed Risk Portfolio, FVIT Wellington Research Managed Risk Portfolio (formerly FVIT WMC Research Managed Risk Portfolio)

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of FVIT American Funds® Managed Risk Portfolio, FVIT Balanced Managed Risk Portfolio, FVIT BlackRock Global Allocation Managed Risk Portfolio, FVIT Select Advisor Managed Risk Portfolio, and FVIT Wellington Research Managed Risk Portfolio (formerly FVIT WMC Research Managed Risk Portfolio), each a separate series of the Forethought Variable Insurance Trust, as of December 31, 2015, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the two years in the period then ended and for the period from October 31, 2013 (commencement of operations) through December 31, 2013. We have also audited the accompanying statements of assets and liabilities, including the portfolios of investments, of FVIT Franklin Dividend and Income Managed Risk Portfolio, FVIT Growth Managed Risk Portfolio, and FVIT Moderate Growth Managed Risk Portfolio, each a separate series of the Forethought Variable Insurance Trust, as of December 31, 2015, and the related statements of operations for the year then ended, and the statements of changes in net assets and the financial highlights for the year then ended and for the period from April 30, 2014 (commencement of operations) through December 31, 2014. We have also audited the accompanying statements of assets and liabilities, including the portfolios of investments, of FVIT Goldman Sachs Dynamic Trends Allocation Portfolio and FVIT PIMCO Tactical Allocation Portfolio, each a separate series of the Forethought Variable Insurance Trust (collectively, the Portfolios), as of December 31, 2015, and the related statements of operations, statements of changes in net assets and the financial highlights for the period from April 30, 2015 (commencement of operations) through December 31, 2015. These financial statements and financial highlights are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolios’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. 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.

115

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of FVIT American Funds® Managed Risk Portfolio, FVIT Balanced Managed Risk Portfolio, FVIT BlackRock Global Allocation Managed Risk Portfolio, FVIT Select Advisor Managed Risk Portfolio, and FVIT Wellington Research Managed Risk Portfolio (formerly FVIT WMC Research Managed Risk Portfolio) as of December 31, 2015, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended and their financial highlights for each of the two years in the period then ended and for the period from October 31, 2013 (commencement of operations) through December 31, 2013, the financial position of FVIT Franklin Dividend and Income Managed Risk Portfolio, FVIT Growth Managed Risk Portfolio, and FVIT Moderate Growth Managed Risk Portfolio as of December 31, 2015, and the results of their operations for the year then ended, the changes in their net assets and the financial highlights for the year then ended and for the period from April 30, 2014 (commencement of operations) through December 31, 2014, and the financial position of FVIT Goldman Sachs Dynamic Trends Allocation Portfolio and FVIT PIMCO Tactical Allocation Portfolio as of December 31, 2015, and the results of their operations, changes in their net assets and their financial highlights for the period from April 30, 2015 (commencement of operations) through December 31, 2015, in conformity with accounting principles generally accepted in the United States of America.

/s/ RSM US LLP

Denver, Colorado
February 17, 2016

116

FVIT Portfolios

EXPENSE EXAMPLES (Unaudited)

December 31, 2015

As a shareholder of the Portfolios, you incur ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in each Portfolio 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 from July 1, 2015 through December 31, 2015.

Actual Expenses

The “Actual” expenses set of columns in the table below provides information about actual account values and actual expenses. You may use the information below together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The “Hypothetical” expenses set of columns in the table below provides information about hypothetical account values and hypothetical expenses based on each Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example for a specific Portfolio with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or redemption fees or other expenses charged by your insurance contract or separate account. Therefore, the Hypothetical columns of the table are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

					*Hypothetical*
					(5% return before
			*Actual*		expenses)

			Ending	Expenses	Ending	Expenses
	Portfolio’s	Beginning	Account	Paid	Account	Paid
	Annualized	Account Value	Value	During	Value	During
Class II Shares	Expense Ratio	7-1-15	12-31-15	Period*	12-31-15	Period*
FVIT American Funds® Managed Risk Portfolio	0.86%	$1,000.00	$971.70	$4.27	$1,020.87	$4.38
FVIT Balanced Managed Risk Portfolio	0.91%	$1,000.00	$982.60	$4.55	$1,020.62	$4.63
FVIT BlackRock Global Allocation Managed Risk Portfolio	0.57%	$1,000.00	$943.60	$2.79	$1,022.33	$2.91
FVIT Franklin Dividend and Income Managed Risk Portfolio	1.08%	$1,000.00	$940.70	$5.28	$1,019.76	$5.50
FVIT Goldman Sachs Dynamic Trends Allocation Portfolio	1.16%	$1,000.00	$960.80	$5.73	$1,019.36	$5.90

Expenses are equal to the Portfolio’s annualized expense ratio, multiplied by the number of days in the period (184) divided by the number of days in the fiscal year (365).

117

FVIT Portfolios

EXPENSE EXAMPLES (Unaudited) (Continued)

December 31, 2015

					*Hypothetical*
					(5% return before
			*Actual*		expenses)

			Ending	Expenses	Ending	Expenses
	Portfolio’s	Beginning	Account	Paid	Account	Paid
	Annualized	Account Value	Value	During	Value	During
Class II Shares	Expense Ratio	7-1-15	12-31-15	Period*	12-31-15	Period*

FVIT Growth Managed Risk Portfolio	0.91%	$1,000.00	$950.40	$4.47	$1,020.62	$4.63
FVIT Moderate Growth Managed Risk Portfolio	0.91%	$1,000.00	$968.80	$4.52	$1,020.62	$4.63
FVIT PIMCO Tactical Allocation Portfolio	1.14%	$1,000.00	$969.30	$5.66	$1,019.46	$5.80
FVIT Select Advisor Managed Risk Portfolio	0.63%	$1,000.00	$965.70	$3.12	$1,022.03	$3.21
FVIT Wellington Research Managed Risk Portfolio	1.20%	$1,000.00	$986.50	$6.01	$1,019.16	$6.11

Expenses are equal to the Portfolio’s annualized expense ratio, multiplied by the number of days in the period (184) divided by the number of days in the fiscal year (365).

118

FVIT Portfolios

SUPPLEMENTAL INFORMATION (Unaudited)

December 31, 2015

Approval of Investment Advisory Agreement and Sub-Advisory Agreements for FVIT American Funds® Managed Risk Portfolio, FVIT Balanced Managed Risk Portfolio, FVIT BlackRock Global Allocation Managed Risk Portfolio, FVIT Franklin Dividend and Income Managed Risk Portfolio, FVIT Growth Managed Risk Portfolio, FVIT Moderate Growth Managed Risk Portfolio, FVIT Select Advisor Managed Risk Portfolio and FVIT Wellington Research Managed Risk Portfolio

At an in-person meeting held on August 11, 2015, the Board of Trustees (the “Trustees” or the “Board”) of Forethought Variable Insurance Trust (the “Trust”), including a majority of the Trustees who are not “interested persons,” as that term is defined in the Investment Company Act of 1940, as amended (the “Independent Trustees”), considered the renewal of: (i) an investment advisory agreement between Forethought Investment Advisors, LLC (the “Adviser”) and the Trust, on behalf of FVIT American Funds® Managed Risk Portfolio (“FVIT American Funds Portfolio”), FVIT Balanced Managed Risk Portfolio (“FVIT Balanced Portfolio”), FVIT BlackRock Global Allocation Managed Risk Portfolio (“FVIT BlackRock Portfolio”), FVIT Franklin Dividend and Income Managed Risk Portfolio (“FVIT Franklin Portfolio”), FVIT Growth Managed Risk Portfolio (“FVIT Growth Portfolio”), FVIT Moderate Growth Managed Risk Portfolio (“FVIT Moderate Portfolio”), FVIT Select Advisor Managed Risk Portfolio (“FVIT Select Portfolio”) and FVIT Wellington Research Managed Risk Portfolio (“FVIT Wellington Portfolio”) (each a “Fund” and collectively the “Funds) (the “Advisory Agreement”); (ii) a sub-advisory agreement between the Adviser and Milliman Financial Risk Management, LLC (“Milliman”), on behalf of the FVIT American Funds Portfolio, FVIT Balanced Portfolio, FVIT BlackRock Portfolio, FVIT Franklin Portfolio, FVIT Growth Portfolio, FVIT Moderate Growth Portfolio, FVIT Select Portfolio and FVIT Wellington Portfolio (the “Milliman Sub-Advisory Agreement”); (iii) a sub-advisory agreement between the Adviser and Franklin Advisory Services, LLC (“Franklin”), on behalf of FVIT Franklin Portfolio (the “Franklin Sub-Advisory Agreement”); and (iv) the sub-advisory agreement between the Adviser and Wellington Management Company, LLP (“Wellington” and together with Milliman and Franklin, the “Sub-Advisers”), on behalf of FVIT Wellington Portfolio (the “Wellington Sub-Advisory Agreement” and together with the Milliman Sub-Advisory Agreement and the Franklin Sub-Advisory Agreement, the “Sub-Advisory Agreements”). The Trustees also met telephonically with the Adviser on August 3, 2015 in advance of the in-person meeting to discuss and review materials relating to the proposed renewal of the Advisory Agreement and the Sub-Advisory Agreements

Prior to the meetings, the Trustees requested, received and reviewed written responses from the Adviser and the Sub-Advisers to questions posed to the Adviser and the Sub-Advisers on behalf of the Trustees. The Trustees also received a memorandum from counsel to the Trust describing the legal standards for their consideration of the approval of the Advisory and Sub-Advisory Agreements. During the meetings, the Board and the Adviser discussed information relating to the Board’s consideration of the Gartenberg factors with respect to each Fund. The Trustees also received in-person presentations concerning the Advisory and Sub-Advisory Agreements from personnel of the Adviser at the August 11, 2015 meeting. Prior to voting on the renewal of the Advisory and Sub-Advisory Agreements, the Independent Trustees met in executive session with counsel to the Trust.

The Trustees relied upon the advice of counsel and their own business judgment in determining the material factors to be considered in evaluating the Advisory and Sub-Advisory Agreements and the weight to be given to each such factor. The conclusions reached by the Trustees were based on a comprehensive evaluation of all of the information provided and were not the result of any one factor. Moreover, each Trustee may have afforded different weight to the various factors in reaching his or her conclusions with respect to the Advisory and Sub-Advisory Agreements.

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FVIT Portfolios

SUPPLEMENTAL INFORMATION (Continued) (Unaudited)

December 31, 2015

Nature, Extent, and Quality of Services. The Trustees requested and considered information regarding the nature, extent, and quality of services provided by the Adviser and the Sub-Advisers, as well as their expertise, resources, and capabilities. The Trustees considered, among other things, the terms of the Advisory and Sub-Advisory Agreements and the range of services provided by the Adviser and Sub-Advisers, including the complexity of the Funds’ managed risk strategies. The Trustees also considered the financial industry experience as well as portfolio management, compliance, and operations experience of the Adviser’s and Sub-Advisers’ personnel. The Trustees reviewed the Adviser’s practices for monitoring compliance with the Funds’ investment limitations, noting that such practices continue to be adequate. The Trustees also reviewed information regarding the financial condition of the Adviser and the Sub-Advisers related to their ongoing ability to provide services specified under the Advisory Agreement and Sub-Advisory Agreements, respectively. Based on their analysis of the data presented, the Trustees concluded that they were generally satisfied with the nature and quality of the services being provided under the Advisory and Sub-Advisory Agreements.

Performance. The Trustees requested and reviewed specific information regarding the investment performance of the Funds as compared to the performance of their respective benchmark indices and peer groups for the 1-year and since inception periods. The Trustees noted that the short time period since the Funds’ inception did not support any significant conclusion about performance. With respect to FVIT BlackRock Portfolio, the Trustees considered that the Fund had underperformed its benchmark for the 1-year and since inception periods and discussed with the Adviser the steps being taken to improve the Fund’s performance. The Trustees concluded that they were generally satisfied with the Adviser’s and the Sub-Advisers’ investment performance to date.

Fees and Expenses. The Trustees reviewed the Funds’ fees and expenses, including the fees paid to the Adviser and the Sub-Advisers. The Trustees reviewed reports describing both the advisory fees charged by the Adviser and the total expense ratios of the Funds in comparison to those of peer groups selected by the Adviser that were comprised of similarly situated funds. The Trustees also reviewed information provided by each of the Sub-Advisers as to fees they charge to other clients. The Trustees considered the complexity of the Funds’ managed risk strategies. The Trustees also considered the “spread” between the advisory and sub-advisory fees at various asset levels. The Trustees also noted the ongoing efforts of the Adviser to reduce expenses charged to shareholders by voluntarily waiving certain fees payable to the Adviser. The Trustees considered that the Adviser has agreed to contractually waive a portion of its advisory fee for each of FVIT American Funds Portfolio, FVIT BlackRock Portfolio, and FVIT Select Portfolio as long as the respective Fund relies primarily on investment in other underlying funds to achieve its principal investment strategy, noting that the Adviser expects that this arrangement will continue until the Funds have sufficient assets to allow for efficient management by sub-advisers other than Milliman. The Trustees also considered that the Adviser has agreed to waive the portion of its advisory fee for FVIT BlackRock Portfolio and FVIT Select Portfolio that corresponds to payments the Adviser or its affiliates receives from sponsors of underlying funds in which the Funds may invest for certain administrative, distribution and/or marketing services. The Trustees also considered that the Adviser has agreed to limit each Fund’s total annual operating expenses by waiving a portion of its advisory fee and/or reimbursing a Fund to the extent that its expenses exceed a specified amount. Based on their review, the Trustees concluded that the fees and expenses changed to the Funds were not unreasonable in light of the services provided to the Funds.

Profitability. The Trustees reviewed information regarding the Adviser’s cost to provide investment advisory and related services to the Funds and the Adviser’s profitability, both overall and with respect to each Fund. The Trustees also reviewed information about the profitability to the Adviser and its affiliates from all services provided to the Funds and all aspects of their relationship with the Funds. The Trustees concluded that the profitability levels for the Adviser were not excessive. The Trustees were not provided with information regarding the Sub-Advisers’ profitability with respect to managing each relevant Fund. The Trustees considered, however, the information provided by the Sub-Advisers regarding fees charged to other clients and the Funds’ advisory and sub-advisory fees and total expense ratios relative to their peer groups.

120

FVIT Portfolios

SUPPLEMENTAL INFORMATION (Continued) (Unaudited)

December 31, 2015

Economies of Scale. The Trustees considered information regarding the Adviser’s and Sub-Advisers’ realization of economies of scale with respect to the Funds and whether the fee levels reflect these economies of scale for the benefit of the Funds’ shareholders. The Trustees noted the breakpoints in the advisory fee schedule for each Fund, except FVIT BlackRock Portfolio, which reduce fee rates as the Fund assets grow over time. The Trustees considered that with respect to each Fund, expense limitations and/or fee waivers that reduce the Funds’ overall expenses at all asset levels can have the same effect as breakpoints and provide protection from an increase in expenses if a Fund’s assets decline. The Trustees concluded that they were satisfied with the extent to which economies of scale, if any, would be shared for the benefit of the Funds’ shareholders based on currently available information and the effective advisory fee and expense ratios for the Funds and their current and reasonably anticipated asset levels. The Trustees noted, however, that they would continue to monitor the Funds’ growth and consider any additional opportunities to realize benefits from economies of scale for shareholders in the future.

Other Benefits. The Trustees considered other benefits to the Adviser and its affiliates from their relationships with the Funds, including the role of the Funds in supporting the variable annuity products offered by Forethought Life Insurance Company (“FLIC”) and the fact that FLIC receives 12b-1 fees from the Funds. The Trustees also considered other benefits to the Sub-Advisers and their affiliates from their relationships with the Funds, noting that although Milliman would not receive soft dollar benefits in connection with its sub-advisory relationship with each Fund, Franklin and Wellington may receive soft dollar benefits in connection with their sub-advisory relationships with FVIT Franklin Portfolio and FVIT Wellington Portfolio, respectively.

Conclusion. Having requested and received such information from the Adviser and Sub-Advisers as the Trustees believed to be reasonably necessary to evaluate the terms of the Advisory and Sub-Advisory Agreements, and as assisted by the advice of counsel, the Trustees, including the Independent Trustees voting separately, unanimously concluded that renewing the Advisory and Sub-Advisory Agreements was in the best interests of the Funds and their shareholders. They noted that in considering the Advisory and Sub-Advisory Agreements, the Independent Trustees did not identify any one factor as all important. Moreover, each Trustee may have afforded different weight to the various factors in reaching a conclusion with respect to the Advisory and Sub-Advisory Agreements.

121

FVIT Portfolios

SUPPLEMENTAL INFORMATION (Continued) (Unaudited)

December 31, 2015

Independent Trustees

Name, Address and Age	Position/ Term of Office¹	Principal Occupation During the Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Directorships held by Trustee During the Past Five Years
Mark Garbin Year of Birth: 1951	Trustee since 2013	Managing Principal, Coherent Capital Management LLC (since 2007).	10	Altegris KKR Commitments Fund and Altegris KKR Commitments Master Fund (since 2014); Oak Hill Advisors Mortgage Strategies Fund (offshore) (since 2014); Two Roads Shared Trust (since 2012); Northern Lights Fund Trust (since 2013); Northern Lights Variable Trust (since 2013)
Mitchell E. Appel Year of Birth: 1970	Trustee since 2013	President, Value Line Funds (since 2008); Chief Financial Officer, Value Line, Inc. (from April 2008 to December 2010 and from September 2005 to November 2007); Chief Financial Officer, EULAV Securities (since April 2008); Chief Executive Officer, EULAV Asset Management (since 2010); President, EULAV Securities (since 2009).	10	Value Line Funds (since 2010); EULAV Asset Management (since 2010)
Joseph E. Breslin Year of Birth: 1953	Trustee since 2013	Consultant to Investment Managers (since 2009)	10	BlueArc Multi-Strategy Fund (since 2014); Kinetics Mutual Funds, Inc. (since 2000); Kinetics Portfolios Trust (since 2000); Hatteras Trust (since 2004)

122

FVIT Portfolios

SUPPLEMENTAL INFORMATION (Continued) (Unaudited)

December 31, 2015

Interested Trustees and Officers of the Trust

Name, Address and Age	Position/ Term of Office¹	Principal Occupation During the Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Directorships held by Trustee During the Past Five Years
Robert M. Arena, Jr. Year of Birth: 1968 ²	Trustee and President/Chief Executive Officer since 2013	Executive Vice President, Forethought Financial Group, Inc. (since 2013); Managing Director, Global Atlantic Financial Group Limited (since January 2014); President, Forethought Variable Insurance Trust (since 2013); Director and Co-President, Hartford Securities Distribution Company, Inc. (2010-2012); Executive Vice President, Global Annuity, The Hartford,(September 2010 - December 2012); Executive Vice President, Retail Product Management, The Hartford, (January 2008-September 2010); Senior Vice President, Retail Product Management, The Hartford, (May 2007-January 2008); Vice President, Individual Annuity, Product Management, The Hartford, (January 2006-May 2007).	10	None
Kathleen Redgate Year of Birth 1964³	Trustee since 2014	Chief Operating Officer of Global Atlantic Financial Group Limited, (since May 2013); Chief Operating Officer, GS Reinsurance Group (September 2006-May 2013); Vice President and Managing Director of Goldman Sachs (2000-2013).	10	Epoch Securities, Inc. (since October 2013)
Deborah Schunder Year of Birth: 1967	Vice President since 2014	Vice President, Investment Product Management, Forethought Life Insurance Company and Vice President of Forethought Investment Advisors, LLC (since December 2013); Director of Investment Management with Forethought Life Insurance Company (January 2013 – December 2013). From 2004 to 2012, Ms. Schunder was with The Hartford, where she held roles as Director, Investment Platform Management and Director, Mutual Funds.	N/A	N/A

123

FVIT Portfolios

SUPPLEMENTAL INFORMATION (Continued) (Unaudited)

December 31, 2015

Name, Address and Age	Position/ Term of Office¹	Principal Occupation During the Past Five Years	Number of Portfolios in Fund Complex Overseen by Trustee	Other Directorships held by Trustee During the Past Five Years
Laura Szalyga Year of Birth: 1978	Treasurer/Chief Financial Officer since 2013	Vice President, Gemini Fund Services, LLC (since January 2015); Assistant Vice President, Gemini Fund Services, LLC (June 2011- December 2014); Assistant Vice President of Fund Administration, BNY Mellon (May 2006-June 2011).	N/A	N/A
Sarah M. Patterson Year of Birth: 1976	Secretary/Chief Legal Officer since 2013	Vice President, Assistant General Counsel and Assistant Secretary, Global Atlantic Financial Group Limited (since January 2014) and Forethought Financial Group, Inc. (since January 2013); Assistant Vice President and Assistant General Counsel, The Hartford (July 2004-December 2012).	N/A	N/A
Mary Cavanaugh Year of Birth: 1951	Chief Compliance Officer since 2013	Chief Compliance Officer, Global Atlantic Financial Group Limited (since 2014); Executive Vice President, Secretary and General Counsel, Forethought Financial Group, Inc.(since 2006); Senior Vice President and Chief Legal Officer, AIG Retirement Services (from 2001 –2006); Executive Vice President and General Counsel, American General Retirement Services (1999-2001).	N/A	N/A

*¹

The term of office for each Trustee and officer listed above will continue indefinitely until the individual resigns or is removed.

*²

Mr. Arena is an interested person of the Trust because he is an officer of Forethought Investment Advisors, LLC.

*³

Ms. Redgate is an interested person of the Trust because she is an officer of Global Atlantic Financial Group Limited.

The Fund’s Statement of Additional Information includes additional information about the Trustees and is available free of charge, upon request, by calling toll-free at 1-877-881-7735.

124

PRIVACY NOTICE

FVIT

FACTS

WHAT DOES FVIT DO WITH YOUR PERSONAL INFORMATION?

Why?

Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some, but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.

What?

The types of personal information we collect and share depends on the product or service that you have with us. This information can include:

● Social Security number and wire transfer instructions

● account transactions and transaction history

● investment experience and purchase history

When you are no longer our customer, we continue to share your information as described in this notice.

How?

All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons FVIT chooses to share; and whether you can limit this sharing.

Reasons we can share your personal information:	Does FVIT share information?	Can you limit this sharing?
For our everyday business purposes - such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus.	YES	NO
For our marketing purposes - to offer our products and services to you.	NO	We don’t share
For joint marketing with other financial companies.	NO	We don’t share
For our affiliates’ everyday business purposes - information about your transactions and records.	NO	We don’t share
For our affiliates’ everyday business purposes - information about your credit worthiness.	NO	We don’t share
For nonaffiliates to market to you	NO	We don’t share

QUESTIONS?

Call 1-877-881-7735

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PRIVACY NOTICE

FVIT

Page 2

What we do:

How does FVIT protect my personal information?

To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

Our service providers are held accountable for adhering to strict policies and procedures to prevent any misuse of your nonpublic personal information.

How does FVIT collect my personal information?

We collect your personal information, for example, when you

● open an account or deposit money

● direct us to buy securities or direct us to sell your securities

● seek advice about your investments

We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.

Why can’t I limit all sharing?

Federal law gives you the right to limit only:

● sharing for affiliates’ everyday business purposes – information about your creditworthiness.

● affiliates from using your information to market to you.

● sharing for nonaffiliates to market to you.

State laws and individual companies may give you additional rights to limit sharing.

Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies. ● FVIT has no affiliates.
Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies. ● FVIT does not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ● FVIT doesn’t jointly market.

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129

PROXY VOTING

Information regarding how the Portfolios voted proxies relating to portfolio securities for the most recent twelve month period ended June 30 (disclosed on Form N-PX) as well as information regarding the policies and procedures that the Portfolios use to determine how to vote proxies (disclosed in the Portfolios’ Statement of Additional Information) is available without charge, upon request, by calling 1-877-881-7735 or by referring to the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

PORTFOLIO HOLDINGS

Each Portfolio files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Portfolios’ Form N-Qs are available: (i) on the SEC’s website at http://www.sec.gov; (ii) on the Portfolios’ website at www.geminifund.com/ForethoughtDocuments; and (iii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

INVESTMENT ADVISOR

Forethought Investment Advisors, LLC

300 North Meridian Street, Suite 1800

Indianapolis, IN 46204

INVESTMENT SUB-ADVISORS

Franklin Advisory Services, LLC

55 Challenger Road, Suite 501

Ridgefield Park, NJ 07660

Goldman Sachs Asset Management, L.P.

200 West Street

New York, NY 10282

Milliman Financial Risk Management, LLC

71 S. Wacker Drive, 31st Floor

Chicago, IL 60606

Pacific Investment Management Company LLC

650 Newport Center Drive

Newport Beach, CA 92660

Wellington Management Company LLP

280 Congress Street

Boston, MA 02210

ADMINISTRATOR

Gemini Fund Services, LLC

80 Arkay Drive Suite 110

Hauppauge, NY 11788

Item 2. Code of Ethics.

(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(b) For purposes of this item, “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote:

(1)

Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

(2)

Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant;

(3)

Compliance with applicable governmental laws, rules, and regulations;

(4)

The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and

(5)

Accountability for adherence to the code.

(c) Amendments: During the period covered by the report, there have not been any amendments to the provisions of the code of ethics.

(d) Waivers: During the period covered by the report, the registrant has not granted any express or implicit waivers from the provisions of the code of ethics.

(e) The Code of Ethics is not posted on Registrant’ website.

(f) A copy of the Code of Ethics is attached as an exhibit.

Item 3. Audit Committee Financial Expert. (a)(1)ii The board of directors of the fund has determined that the fund does not have an audit committee financial expert serving on its audit committee.

(a)(2) Not applicable.

(a)(3) In this regard, no member of the audit committee was identified as having all of the required technical attributes identified in instruction 2 (b) to item 3 of Form N-CSR to qualify as an “audit committee financial expert,” whether through the type of specialized education or experience required by that instruction. At this time, the board believes the experience provided by each member of the audit committee collectively offers the fund adequate oversight by its audit committee given the fund’s level of financial complexity. The board will from time to time reexamine such belief.

Item 4. Principal Accountant Fees and Services.

(a)

Audit Fees

FYE 2015 - $160,000

FYE 2014 - $125,000

FYE 2013 - $85,000

(b)

Audit-Related Fees

FYE 2015 - None

FYE 2014 - None

FYE 2013 - None

(c)

Tax Fees

FYE 2015 - $20,000

FYE 2014 - $16,000

FYE 2013 - $10,500

Preparation of Federal & State income tax returns, assistance with calculation of required income, capital gain and excise distributions and preparation of Federal excise tax returns.

(d)

All Other Fees

FYE 2015 - None

FYE 2014 - None

FYE 2013 - None

(e) (1) Audit Committee’s Pre-Approval Policies

The registrant’s Audit Committee is required to pre-approve all audit services and, when appropriate, any non-audit services (including audit-related, tax and all other services) to the registrant. The registrant’s Audit Committee also is required to pre-approve, when

appropriate, any non-audit services (including audit-related, tax and all other services) to its adviser, or any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant, to the extent that the services may be determined to have an impact on the operations or financial reporting of the registrant. Services are reviewed on an engagement by engagement basis by the Audit Committee.

(2)

Percentages of Services Approved by the Audit Committee

	2013	2014	2015
Audit-Related Fees:	0.00%	0.00%	0.00%
Tax Fees:	0.00%	0.00%	0.00%
All Other Fees:	0.00%	0.00%	0.00%

(f)

During the audit of registrant's financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant's engagement were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

(g)

The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant:

(h) The registrant's audit committee has considered whether the provision of non-audit services to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence.

Item 5. Audit Committee of Listed Companies. Not applicable to open-end investment companies.

Item 6. Schedule of Investments. Schedule of investments in securities of unaffiliated issuers is included under Item 1.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Funds. Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Funds. Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders. None

Item 11. Controls and Procedures.

(a) Based on an evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of filing date of this Form N-CSR, the principal executive officer and principal financial officer of the Registrant have concluded that the disclosure controls and procedures of the Registrant are reasonably designed to ensure that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported by the filing date, including that information required to be disclosed is accumulated and communicated to the Registrant’s management, including the Registrant’s principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no significant changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable.

(a)(2) Certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (and Item 11(a)(2) of Form N-CSR) are filed herewith.

(a)(3) Not applicable for open-end investment companies.

(b)

Certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 (and Item 11(b) of Form N-CSR) are filed herewith.

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.

(Registrant) Forethought Variable Insurance Trust

By (Signature and Title)

/s/ Robert Arena

Robert Arena, President

Date 2/22/16

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 (Signature and Title)

/s/ Robert Arena

Robert Arena, President

Date 2/22/16

By (Signature and Title)

/s/ Laura Szalyga

Laura Szalyga, Treasurer

Date 2/22/16