quarterly portfolio guide - massmutual quarterly portfolio guide december 31, 2013 gain insight into...

Click here to load reader

Post on 09-Jun-2020




0 download

Embed Size (px)


  • Insight into the underlying funds of Variable Universal Life III (VUL III) Insurance

    An Educational Guide for Individuals

    Investment Strategies

    Quarterly Portfolio Guide December 31, 2013

  • Gain insight into your investment choices The Variable Universal Life III (VUL III) insurance policy offers a broad range of investment choices so you and your financial professional can develop an investment strategy that fits your risk tolerance, time horizon and investment objectives. This brochure provides important information so you can gain a true insight into these investment choices and select the investment choices that best suit you.

    VUL III is a permanent life insurance policy that combines death benefit protection with the opportunity to accumulate policy value through investments in a separate account with underlying investment funds, and a guaranteed principal account. This report gives information only about the performance of the investment options available through the policy. It does not give, and should not be understood to give, information about the overall performance of any VUL III policy. Before purchasing a VUL III policy, you should request a personalized illustration from your financial representative to see examples of how policy charges can impact the performance of your policy. The illustration will reflect the deduction of asset charges, premium expense charges, surrender charges, and the monthly administrative, face amount, and insurance charges, as well as any applicable rider charges specific to the policy. If you currently own a policy, you can obtain current illustrations of policy values by contacting your personal financial representative, or by clicking on “contact us” on our web site, or by calling the MassMutual Customer Service Center at 800-272-2216, Monday - Friday, 8 a.m. to 8 p.m. eastern time.

    The investment performance figures in this report are based on actual historical performance of the investment options for the periods shown, including for those time periods that begin prior to a policy’s availability date. In most states, the first policy became available on November 3, 2008. For periods of one year or less, the total return is not annualized. For periods greater than one year, the average annual total return for the time periods is shown.

    This material must be preceded or accompanied by the current prospectus for the VUL III insurance policy and the prospectuses (or summary prospectuses, if available) for its underlying investment choices. Before purchasing a policy, investors should carefully consider the investment objectives, risks, charges and expenses of the policy and its underlying investment choices. Please read the prospectuses carefully before investing or sending money.

    Not FDIC or NCUA Insured Not a Bank or Credit Union Deposit or Obligation May Go Down in Value Not Insured by any Federal Government Agency

    Not Guaranteed by any Bank or Credit Union

    1 of 78


  • Brand-name investment management

    VUL III offers some of the most recognizable names in money management today. Massachusetts Mutual Life Insurance Company (MassMutual) strives to provide policyowners with access to high-caliber investment managers who offer consistent, quality investment strategies. The ability to invest in investment choices managed by these types of experienced investment management companies may help you attain your desired investment results over the long term.

    As of May 1, 2013, subject to change.

    2 of 78

  • Broad range of investment choices* (Fund sub-adviser as noted in parenthesis)

    * Investment choices listed are available as of the date of this brochure.

    Investing involves risk, including the loss of principal.  Each investment choice underlying the variable life insurance policy has broad risks that apply to all investment choices, such as market risk, as well as specific risks inherent in particular types of investment choices that may subject your variable life insurance policy to greater risk and volatility than the general market. 

    1 Formerly known as MML Small/Mid Cap Equity. 2 Formerly known as Oppenheimer Small- & Mid-Cap Growth.

    Value Blend Growth

    Large Cap • MML Equity (Oppenheimer/ Loomis Sayles)

    • MML Equity Income (T. Rowe Price)

    • MML Income & Growth (BlackRock)

    • Fidelity® VIP Contrafund®

    • Invesco V.I. Diversified Dividend

    • MML Equity Index (Northern Trust)

    • MML Growth & Income (MFS®)

    • Oppenheimer Main Street

    • MML Blue Chip Growth (T. Rowe Price)

    • Oppenheimer Capital Appreciation

    Small/Mid Cap • MML Mid Cap Value (American Century)

    • MML Small/Mid Cap Value (AllianceBernstein)

    • MML Small Cap Equity (Oppenheimer) 1

    • MML Mid Cap Growth (T. Rowe Price)

    • MML Small Cap Growth Equity (Waddell & Reed and Wellington)

    • Oppenheimer Discovery Mid Cap Growth2

    3 of 78

  • Fixed Income Other Categories Global/International

    Money Market • MML Money Market (Babson) 3

    Inflation-Protected Bond • MML Inflation-Protected and Income


    Investment Grade Bond • MML Managed Bond (Babson)

    Multi Sector • Oppenheimer Global Strategic Income

    Asset Allocation4

    • MML Conservative Allocation

    • MML Balanced Allocation

    • MML Moderate Allocation

    • MML Growth Allocation

    • MML Aggressive Allocation


    • ING Clarion Global Real Estate

    • Invesco V.I. Global Health Care

    • Invesco V.I. Technology

    • MML Managed Volatility (Gateway) 5

    • PIMCO CommodityRealReturn® Strategy

    Global Equity • MML Global (MFS®)

    • Oppenheimer Global6

    International Equity • MML Foreign (Templeton)

    • Oppenheimer International Growth

    3 An investment in the Fund is neither insured or guaranteed by the Federal Deposit Insurance Corporation or by any other government agency. Although the Fund seeks to maintain a stable net asset value per share, it is possible to lose money by investing in these funds.

    4 Funds offered in a fund-of-funds structure may have higher expenses than a direct investment in the underlying funds because a fund-of-funds bears its own expenses and indirectly bears its proportionate share of expenses of the underlying funds in which it invests.

    5 Formerly known as MML Large Cap Value. 6 Formerly known as Oppenheimer Global Securities.

    4 of 78

  • The fact sheets included in this brochure provide detailed information about the historical performance of the investment choices in your VUL III policy. They also provide valuable information about the underlying funds that the investment choices (divisions) invest in. Please refer to these important definitions and concepts as you review the fact sheets. They will help you gain a better understanding of the investment choices you have elected, or the investment choices you may elect in the future. Important note: the fact sheets cannot be printed separately.

    Performance The performance numbers for each investment choice varies by the level of fees and charges deducted. Fees and charges will reduce your investment return.

    Past performance is no indication of future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. For the most recent month end performance, please visit our Web site at www.massmutual.com or by calling our customer service center at (800) 272-2216, 8:00 a.m. to 8:00 p.m. (ET).

    Total Returns for each fund are the actual historical rates and are net of all fund management fees and other operating expenses. These returns do not reflect the Separate Account Mortality and Expense Charges or policy charges. Policy charges include: premium charges (i.e. sales load, state premium tax and DAC tax charges), and the monthly administrative, face amount, and insurance charges. If these charges were deducted, the returns would be significantly lower.

    Fund Expenses Gross Fund Expenses are the total operating expenses charged by any of the funds, expressed as a percentage of average net assets, for the prior year end. More detail concerning each fund’s fees and expenses that you may pay periodically during the time that you own the policy, is contained in each fund prospectus.

    Net Fund Expenses are the Total Annual Fund Operating Expenses, minus any waivers or reimbursements put in place by the fund company.

    Fundamental Characteristics (Fixed Income and Equity) Coupon is the dollar-weighted average of all the current coupons of the bonds in a portfolio.

    Credit Quality represents the grading of a debt security with respect to the issuer’s ability to meet interest and principal requirements in a timely manner. Issues rated AAA, AA, A and BBB are considered investment grade, while issues rated BB, B and below are considered below investment grade or high yield bonds. Higher rated bonds generally provide lower yields and greater safety relative to below investment grade bonds.

    Dividend Yield is the yield a company pays out to its shareholders in the form of dividends. It is calculated by

View more