Each Asset Allocation Portfolio is designed to provide investors diversification by investing broadly among various asset classes and sub-classes represented by the portfolio security holdings of certain other Portfolios (the “Underlying Portfolios”) of the Metropolitan Series Fund, Inc. (“MSF”) or of Met Investors Series Trust (“MIST”)1 according to each Asset Allocation Portfolio’s investment objective and risk profile. MetLife Advisers, LLC (“MetLife Advisers”), as investment adviser, selects the Underlying Portfolios in which each Asset Allocation Portfolio invests based on established principles of asset allocation and risk tolerance. The general public may not directly purchase MSF or MIST shares.2
MetLife Advisers establishes for each Asset Allocation Portfolio a specific target allocation between equity securities and fixed income securities. MetLife Advisers may also set target allocations among sub-classes of these asset classes (e.g., for equities, international equities, large cap, mid cap, small cap; for fixed income securities, investment grade, high yield, short term). MetLife Advisers determines these target allocations based on a variety of factors, including its outlook on the economy, interest rates and the financial markets.
In selecting the Underlying Portfolios in which each Asset Allocation Portfolio invests, MetLife Advisers considers an Underlying Portfolio’s historical investment performance and analyzes the Underlying Portfolio’s current holdings to determine its asset class and sub-class characteristics (e.g., for equities, large cap, mid cap, small cap, growth, value, blend; for fixed income, investment grade, high yield, duration, maturity). MetLife Advisers allocates investments among the Underlying Portfolios based on the holdings analysis in an attempt to approximate the asset class and sub-class target allocations of each Asset Allocation Portfolio. The amounts established by MetLife Advisers to be allocated to each Underlying Portfolio are referred to as the “Underlying Portfolio Target.” Because each Underlying Portfolio’s holdings can change from day to day, the actual asset allocation achieved by investing in particular Underlying Portfolios will not correspond exactly to the target allocations of a particular Asset Allocation Portfolio.3 |
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The Underlying Portfolios in which the Asset Allocation Portfolios may currently invest are:
| Asset Class |
MSF / MIST |
Portfolio Name |
|
Cash
|
MSF
|
BlackRock Money Market PortfolioB,F,X
|
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1 – 5 Year Fixed
|
MSF |
Western Asset Management U.S. Government PortfolioB
|
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Aggregate Bond
|
MSF
|
BlackRock Bond Income PortfolioB,F,H
|
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Aggregate Bond
|
MSF
|
Lehman Brothers® Aggregate Bond Index PortfolioB,F,I
|
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Global Aggregate Bond
|
MSF
|
Western Asset Managment Strategic Bond Opportunities PortfolioB,F,H
|
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Balanced - Domestic
|
MSF
|
BlackRock Diversified PortfolioB,F,H,L,M
|
|
Balanced - Domestic
|
MSF
|
MFS® Total Return PortfolioB,F,L,V
|
| Global |
MSF
|
Oppenheimer Global Equity PortfolioB,F,L,M,S
|
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Large Cap Value
|
MSF
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BlackRock Large Cap Value PortfolioF,L,M,S,V
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Large Cap Value
|
MSF
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Davis Venture Value PortfolioF,L,V
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Large Cap Value
|
MSF
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FI Value Leaders PortfolioB,F,L,V
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Large Cap Value
|
MSF
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MFS® Value PortfolioB,F,L,V
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Large Cap Blend
|
MSF
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MetLife Stock Index PortfolioG,I,L,V
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Mid Cap Value
|
MSF
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Harris Oakmark Focused Value PortfolioB,F,H,M,N,V
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Mid Cap Value
|
MSF |
Neuberger Berman Mid Cap Value PortfolioF,M,V
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Mid Cap Blend
|
MSF
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MetLife Mid Cap Stock Index PortfolioG,I,M,V
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International Equities
|
MSF
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Julius Baer International Stock PortfolioR,G,V,F,L
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International Equities
|
MSF
|
Morgan Stanley EAFE® Index PortfolioF,I,L,M,S
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Small Cap Value
|
MSF
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BlackRock Strategic Value PortfolioB,F,G,H,L,M,S,V
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Small Cap Blend
|
MSF
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Loomis Sayles Small Cap PortfolioF,G,L,M,R,S,V
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Small Cap Blend
|
MSF
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Russell 2000® Index PortfolioG,I,S,V
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Large Cap Growth
|
MSF
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BlackRock Legacy Large Cap Growth PortfolioB,F,G,L
|
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Large Cap Growth
|
MSF
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FI Large Cap PortfolioB,F,G,H,L
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Large Cap Growth
|
MSF
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Jennison Growth PortfolioB,F,G,L,M
|
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Large Cap Growth
|
MSF
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T. Rowe Price Large Cap Growth PortfolioB,F,G,L
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Small Cap Growth
|
MSF
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Franklin Templeton Small Cap Growth PortfolioB,G,L,M,S,T
|
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Small Cap Growth
|
MSF
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T. Rowe Price Small Cap Growth PortfolioB,F,G,S
|
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Mid Cap Growth
|
MSF
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BlackRock Aggressive Growth PortfolioB,F,G,L,M,S
|
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Mid Cap Growth
|
MSF
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FI Mid Cap Opportunities PortfolioB,F,G,L,M,S,V
|
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Aggregate Bond
|
MIST
|
PIMCO Total Return PortfolioB,D,F,H
|
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Treasury Inflation Protected Securities
|
MIST |
PIMCO Inflation Protected Bond PortfolioB,F,H
|
| High Yield Bond |
MIST |
BlackRock High Yield PortfolioB,F,H |
|
High Yield Bond
|
MIST
|
Lord Abbett Bond Debenture PortfolioB,F,H,V
|
| Balanced |
MIST |
Met/Franklin Income PortfolioB,F,H,L,M,S,V
|
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REITs
|
MIST |
Clarion Global Real Estate PortfolioF,L,M,N,R,S
|
| Global |
MIST |
Met/Templeton Growth PortfolioB,F,L,M,S,V
|
| Large Cap Value |
MIST |
Met/Franklin Mutual Shares PortfolioB,F,H,L,M,S,V
|
| Large Cap Blend |
MIST |
BlackRock Large Cap Core PortfolioG,J,L,V |
| Large Cap Blend |
MIST |
Legg Mason Value Equity PortfolioB,F,G,H,L,N,S,V |
|
Mid Cap Blend
|
MIST
|
Lazard Mid-Cap PortfolioF,G,L,M,S,V
|
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International Equities
|
MIST
|
Harris Oakmark International PortfolioF,L,M,N,S,V
|
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International Equities
|
MIST
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MFS Research International PortfolioF,G,L,M,S,V
|
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Small Cap Value
|
MIST
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Dreman Small-Cap Value PortfolioJ,R,S,V
|
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Large Cap Growth
|
MIST |
Janus Forty PortfolioB,F,G,H,L,M,S |
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Large Cap Growth
|
MIST |
Legg Mason Partners Aggressive Growth PortfolioB,F,G,H,L,N
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Large Cap Growth
|
MIST |
Oppenheimer Capital Appreciation PortfolioF,G,L,M,S
|
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Small Cap Growth
|
MIST
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Met/AIM Small Cap Growth PortfolioF,G,S
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Mid Cap Growth
|
MIST
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T. Rowe Price Mid-Cap Growth PortfolioF,G,M,N
|
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Sector/Technology
|
MIST
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RCM Technology PortfolioD,F,G,S,T
|
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Current Asset and Sub-Class Target Percentages
The following graphs set out for each Asset Allocation Portfolio the initial target allocations between equity and fixed income securities and among sub-classes of these two asset classes. These percentages will not directly correspond to investments in the Underlying Portfolios because an Underlying Portfolio may contain one or both asset classes (e.g., equity and fixed income) and one or more sub-classes of an asset class (e.g., small cap and mid cap equity securities). MetLife Advisers may invest in the Underlying Portfolios so that an Asset Allocation Portfolio’s actual allocation between equities and fixed income securities is within a range of plus or minus 10% of the Portfolio’s target allocation set out in the chart below. Deviations from the asset class target allocations will affect the sub-class target allocations.4 Equity is divided into sub-asset classes of International, Large Cap, Mid Cap and Small Cap. Fixed income is divided into sub-asset classes of High Yield, Investment Grade and Short Term.
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Underlying Portfolio Target Percentages
Click on the portfolio name to see the target percentages for the investments in the Underlying Portfolios for each Asset Allocation Portfolio:
Variable products are offered only by a prospectus, which are available from your representative. You should carefully consider the product’s features, risks, charges and expenses, and the investment objectives, risks and policies of the underlying portfolios, as well other information about the underlying funding choices. This and other information is available in the prospectus, which you should read carefully before investing. Product availability and features may vary by state. All product guarantees are based on the claims-paying ability of the issuing insurance company.
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1Met Investors Series Trust (MIST) is an open-end management investment company that currently offers a selection of managed investment portfolios or mutual funds. Each of the Portfolios has its own investment objective designed to meet different investment goals. Shares of the Portfolios are currently only sold to separate accounts of Metropolitan Life Insurance Company and certain of its affiliates to fund the benefits under certain individual flexible premium variable life insurance policies and individual and group variable annuity contracts. The Asset Allocation Portfolios invest in Class A shares of certain Portfolios in the Met Investors Series Trust.
BBond and other fixed-income securities involve both credit risk and market risk, which includes interest rate risk. Credit risk is the risk that the security’s issuer will not pay the interest, dividends or principal that it has promised to pay. Market risk is the risk that the value of the security will fall because of changes in market rates of interest or other factors. Interest rate risk reflects the fact that the values of fixed-income securities tend to fall as interest rates rise. When interest rates go down, interest earned on fixed-income securities will tend to decline.
FForeign securities pose additional risks that are not associated with U.S. domestic issues, such as changes in currency exchange rates and different governmental regulations, economic conditions and accounting standards.
GInvests in growth stocks, the prices of which may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general.
HLower rated high yield, high risk securities generally involve more credit risk. These securities may also be subject to greater market price fluctuations than lower yielding, higher rated debt securities.
IMorgan Stanley sponsors the MSCI EAFE® Index, Lehman Brothers sponsors the Lehman Brothers® Aggregate Bond Index, Standard & Poor’s sponsors the S&P 500® Index and the S&P MidCap 400® Index, and Frank Russell Company sponsors the Russell 2000® Index (together referred to as “index sponsors”). Direct investment in an index is not possible. The index sponsors do not sponsor, endorse, sell or promote the portfolios or make any representation regarding the advisability of investing in the portfolios. The index sponsors have no responsibility for and do not participate in the management of portfolio assets or sale of portfolio shares. Each index and its associated trademarks and service marks are the exclusive property of the respective index sponsors. The Metropolitan Series Fund, Inc. Statement of Additional Information contains a more detailed description of the limited relationship the index sponsors have with MetLife and the Fund.
LInvests in the common stock of large capitalization companies. These investments may not be able to attain the growth rates as high as those of successful smaller capitalization companies, especially during extended periods of economic expansion.
MThe common stocks of medium-sized companies may be more volatile than those of larger, more established companies.
NThe portfolio is classified as “nondiversified”, meaning it has the ability to take larger positions in a smaller number of issuers than a “diversified” fund. Nondiversified funds may experience greater price volatility.
RInvesting in real estate involves special risks, which may not be associated with investing in stocks, including possible declines in real estate values, adverse economic conditions, and changes in interest rates.
SInvestments in small capitalization and emerging growth companies involve greater than average risk. Such securities may have limited marketability and the issuers may have limited product lines, markets and financial resources. The value of such investments may fluctuate more widely than investments in larger, more established companies.
TThe technology industry can be significantly affected by obsolescence, short product cycles, falling prices and profits, and competition from new market participants. Funding choices that primarily invest in one sector are more volatile than those that diversify across many industry sectors and companies.
VInvests in stocks that tend to trade at lower prices relative to their fundamental financial characteristics and are therefore considered undervalued. Value stocks can perform differently than other categories of stocks (e.g., growth stocks) and can continue to be undervalued by the market for long periods of time.
XAn investment in the BlackRock Money Market Portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $100.00 per share, it is possible to lose money by investing in the Portfolio.
AAThe Asset Allocation Portfolios may invest in all the asset classes of the underlying portfolios. Consequently, all the risks and other information listed in the footnotes above may apply.
The Asset Allocation Portfolios may invest in all the asset classes of the underlying portfolios. Consequently, all the risks listed on the Disclosure Portfolio may apply. MetLife Advisers LLC, the investment advisor to the asset allocation portfolios, chooses the underlying funding options for each Portfolio and the proportions of each underlying funding option within the Portfolio. Standard & Poor's Investment Advisory Services, LLC (SPIAS) serves as consultant to MetLife Advisers, LLC for the Asset Allocation Portfolios. SPIAS does not provide advice to MetLife’s underlying clients or have any discretionary authority or control with respect to purchasing or selling securities, and does not act as a “fiduciary” or “investment manager” as defined under ERISA, to any investor. SPIAS makes no warranties, express or implied, as to results to be obtained from the information provided by it, and neither SPIAS nor its affiliates endorse, sell or promote this product or make any recommendations as to advisability or investing in it.
The asset allocation portfolios are “fund of funds” portfolios. Because of this two tier structure, each asset allocation portfolio bears its own investment management fee and expenses as well as its pro-rata share of the investment management fee and expenses of the underlying portfolios. The Contract Owner may be able to realize lower aggregate expenses by investing directly in the underlying portfolios instead of investing in the asset allocation portfolios. In that case, you would not receive the asset allocation services of MetLife Advisers, LLC.
Note:
While diversification through an asset allocation strategy is a useful technique that can help to manage overall portfolio risk and volatility, there is no certainty or assurance that a diversified portfolio will enhance overall return or outperform one that is not diversified. An investment made according to one of these asset allocation models neither guarantees a profit nor prevents the possibility of loss.
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