quarterly review as of 03/31/2020 massmutual select mid ... · -1.50-0.75 0.00 0.75 1.50 value...

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Fund Russell MidCap® Growth Index Sector Weightings: Defines what % of each sector this fund holds compared to its benchmark listed here. QTD YTD Portfolio Attribution: Describes how fund manager sector and stock weighting decisions affected returns. Sector Attribution Details: S e c t o r F u n d W e i g h t Q T D Y T D Communication Services 2.75 0.25 0.25 Consumer Discretionary 13.68 -1.45 -1.45 Consumer Staples 1.63 -0.19 -0.19 Energy 1.52 -0.27 -0.27 Financials 8.73 -0.33 -0.33 Health Care 19.36 -0.68 -0.68 Industrials 17.84 -0.04 -0.04 Information Technology 22.03 -1.17 -1.17 Materials 6.17 0.13 0.13 Real Estate 0.73 -0.16 -0.16 Utilities 1.47 0.07 0.07 Cash 3.77 0.85 0.85 Quarterly Portfolio Commentary: Jason Marino, CFA, CAIA Investment Director Investment Experience: 18 Years HIGHLIGHTS • The Russell Midcap® Growth Index closed out the first quarter on a down note as March was its third worst monthly return in the past 15 years and worst month since October 2008. • All sectors, except consumer staples, delivered double-digit negative returns in the quarter. • Stock selection detracted from relative Fund performance with particular weakness in the consumer discretionary and health care sectors. • Sector allocation was modestly positive, driven by an overweight to the health care sector and holding cash as the index declined nearly 20% in the period. Fund Objective: This Fund seeks growth of capital over the long-term. These materials and the platform of investments made available by MassMutual are offered without regard to the individualized needs of any plan, its participants, or beneficiaries. These materials are not intended as impartial investment advice or to give advice in a fiduciary capacity to any plan. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE Quarterly Review I SHARE CLASS TICKER: MEFZX As of 03/31/2020 MassMutual Select Mid Cap Growth Fund T. Rowe Price Associates, Inc. | Frontier Capital Management Company, LLC Comm. Services Consumer Discr. Consumer Staples Energy Financials Health Care Industrials Information Tech. Materials Real Estate Utilities Cash 0 10 20 30 40 Percent of Portfolio Comm. Services Consumer Discr. Consumer Staples Energy Financials Health Care Industrials Information Tech. Materials Real Estate Utilities Cash -1.50 -0.75 0.00 0.75 1.50 Value Added vs. Benchmark (%)

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Page 1: Quarterly Review As of 03/31/2020 MassMutual Select Mid ... · -1.50-0.75 0.00 0.75 1.50 Value Added vs. Benchmark (%) Quarterly Portfolio Commentary: The Russell Midcap Growth Index

Fund Russell MidCap® Growth Index

Sector Weightings: Defines what % of each sector this fund holdscompared to its benchmark listed here.

QTD YTD

Portfolio Attribution: Describes how fund manager sector and stockweighting decisions affected returns.

Sector Attribution Details: Sector Fund Weight Q T D Y T D

Communication Services 2.75 0.25 0.25

Consumer Discretionary 13.68 -1.45 -1.45

Consumer Staples 1.63 -0.19 -0.19

Energy 1.52 -0.27 -0.27

Financials 8.73 -0.33 -0.33

Health Care 19.36 -0.68 -0.68

Industrials 17.84 -0.04 -0.04

Information Technology 22.03 -1.17 -1.17

Materials 6.17 0.13 0.13

Real Estate 0.73 -0.16 -0.16

Utilities 1.47 0.07 0.07

Cash 3.77 0.85 0.85

Quarterly Portfolio Commentary:

Jason Marino, CFA, CAIA Investment DirectorInvestment Experience: 18 Years

HIGHLIGHTS• The Russell Midcap® Growth Index closed out the first quarter on adown note as March was its third worst monthly return in the past 15years and worst month since October 2008.• All sectors, except consumer staples, delivered double-digit negativereturns in the quarter. • Stock selection detracted from relative Fund performance withparticular weakness in the consumer discretionary and health caresectors. • Sector allocation was modestly positive, driven by an overweight to thehealth care sector and holding cash as the index declined nearly 20% inthe period.

Fund Objective: This Fund seeks growth of capital over the long-term.

These materials and the platform of investments made available by MassMutual are offered without regard to the individualized needs of any plan, itsparticipants, or beneficiaries. These materials are not intended as impartial investment advice or to give advice in a fiduciary capacity to any plan.

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

Quarterly Review

I SHARE CLASS TICKER: MEFZX

As of 03/31/2020

MassMutual Select Mid Cap Growth FundT. Rowe Price Associates, Inc. | Frontier Capital Management Company, LLC

Com

m. Services

Consumer Discr.

Consumer Staples

Energy

Financials

Health Care

Industrials

Information Tech.

Materials

Real Estate

Utilities

Cash

0

10

20

30

40

Percent of P

ortfolio

Percent of P

ortfolio

Com

m. Services

Consumer Discr.

Consumer Staples

Energy

Financials

Health Care

Industrials

Information Tech.

Materials

Real Estate

Utilities

Cash

-1.50

-0.75

0.00

0.75

1.50

Value Added vs. Benchmark (%

)Value Added vs. Benchmark (%

)

Page 2: Quarterly Review As of 03/31/2020 MassMutual Select Mid ... · -1.50-0.75 0.00 0.75 1.50 Value Added vs. Benchmark (%) Quarterly Portfolio Commentary: The Russell Midcap Growth Index

Quarterly Portfolio Commentary:

The Russell Midcap Growth Index began the year with gains in January; however, concerns around the economic impact of the COVID-19 pandemic drovethe index lower in February and March. March’s return was the worst monthly return since October 2008 and third worst monthly return in the last 15years. All sectors of the index delivered negative returns in the quarter. The steepest declines were in the energy sector as the one-two punch of a pricewar pushing up supply and demand destruction due to COVID-19 contributed to a substantial decline in oil prices. The consumer discretionary sector wasthe second worst performing sector in the quarter. While auto component makers and leisure products were the hardest hit industries, hotels, restaurantsand leisure delivered the largest negative contribution in the sector as the share price of hoteliers and casinos posted substantial price declines. The onlysector without a double-digit decline was the consumer staples sector. Within the sector, shares of Clorox posted healthy price gains as the companystands to benefit from increased sales due to COVID-19. Information technology, the largest sector by weight in the index, benefitted from relativestrength in software names such as Citrix and RingCentral.

The Fund underperformed the index in the quarter as investor sentiment violently shifted due to concerns around the economic impact of COVID-19.When the quarter began, investors continued their preference for companies exhibiting higher levels of growth, which continued to push valuationshigher as both managers maintained their valuation discipline. As investors began to process the potential economic impact of COVID-19, both the indexand Fund experienced losses. In an interesting turn of events, companies with some of the highest price-to-earnings ratios held up better than thoseexhibiting lower valuations.

Stock selection was the primary driver of relative underperformance. The consumer discretionary sector, particularly Fund holdings in hotels, casinos andcruise lines, were among the hardest hit by restrictions on travel and large public gatherings. Indeed, three of the four top overall detractors to Fundperformance – Norwegian Cruise Lines, MGM Resorts International and Eldorado Resorts Inc. – came from the sector as the black swan event disruptedtheir businesses almost overnight. Just last quarter, MGM produced strong share price gains as the company stood to benefit from easing trade tensionswith China. The share price of Norwegian Cruise Lines declined more than 80% in the quarter as the company suspended cruises for 30-days in responseto the pandemic. Stock selection within the health care sector also detracted from relative returns. Medical device company Hologic reported a morethan 5% increase in earnings per share; however, the company’s stock price declined more than 30% in the quarter.

Fund management added value in the communication services and materials sectors. Within communication services, shares of video game makerElectronic Arts Inc. held up much better than both the sector and benchmark. In the materials sector, top three Fund holding Ball Corp posted a slightgain in share price. Management continues to find the company’s position in the aluminum packaging industry and secular growth as attractive.

The Fund’s largest underweight allocations remain the information technology and real estate sectors, while the largest overweight allocations are to thehealth care and financials sectors. Both managers continue to maintain their price disciplined approach to investing in stock of mid-cap companies.

TICKER: MEFZX Fund Inception: 5/31/2000Morningstar Category: Mid-Cap Growth

Average Annual Total Return

Q T D Y T D 1 Year 3 Year 5 Year 10 year

MassMutual Select Mid Cap Growth I -23.01% -23.01% -13.22% 4.39% 5.31% 10.99%

Russell MidCap® Growth Index -20.04% -20.04% -9.45% 6.53% 5.61% 10.89%

Category Average Returns -- -- -11.17% 4.66% 4.33% 9.46%

Category Rank -- -- 68 57 39 23

# of Funds in Category -- -- 611 567 498 386

Performance shown is for class I shares. Gross expenses = 0.71%, Net expense = 0.71%. Max Sales charge for I is 0.00%Performance shown is past performance. Past performance does not guarantee future results . You can lose money, includingloss of principal , by invest ing in this fund. Investors should careful ly consider investment objectives, r isks , charges andexpenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can beobtained from www.massmutualfunds.com and should be read careful ly before invest ing. A l ist of the Fund’s holdings can alsobe obtained from www.massmutualfunds.com. Current performance may be lower or higher than return data quoted herein. Formore current information, including month-end performance, please cal l 1-866-444-2601. You cannot invest directly in an index.Pre-Inception Returns - The inception date listed is that of the oldest share class of the Fund. Performance shown subsequent to the inception date

is the actual performance of the share class. Other share classes of the investment itself have existed longer, which accounts for any pre-inceptionperformance shown. The pre-inception performance of Class I for the periods prior to its inception date of (11/15/2010) is based on the performance of anolder share class, Class R5, using the expenses and fees of Class R5 (inception date 06/01/2000). If the expenses of the newer share class was used ratherthan the expenses of the old share class (due to lower expenses of the new share class), it would have resulted in better performance.The Fund’s Princ ipa l R isks include - Cash Position Risk, Convertible Securities Risk, Equity Securities Risk, Foreign Investment Risk; Emerging MarketsRisk; Currency Risk, Growth Company Risk, Liquidity Risk, Management Risk, Market Risk, Preferred Stock Risk, Sector Risk, Small and Mid-Cap CompanyRisk, Valuation Risk. Please refer to the summary prospectus (a copy can be obtained by sending an email to [email protected]) for moreinformation on the specific risksThe Morningstar percenti le ranking is based on the fund’s total-return percenti le rank relat ive to al l funds that have the same

category for the same t ime period. The highest (or most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank is 100%.Morningstar total return includes both income and capital gains or losses and is not adjusted for sales charges. © 2020 Morningstar, Inc. All RightsReserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) isnot warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from anyuse of this information.

MassMutual Select Mid-Cap Growth Fund

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Page 3: Quarterly Review As of 03/31/2020 MassMutual Select Mid ... · -1.50-0.75 0.00 0.75 1.50 Value Added vs. Benchmark (%) Quarterly Portfolio Commentary: The Russell Midcap Growth Index

Quarter to Date:

Top 5 Contributors F u n dW e i g h t

AbsoluteReturn*

Portfol ioContr ibut ion

DocuSign Inc 0.69 24.68 0.14

Clarivate Analytics PLCOrdinary Shares 0.43 23.51 0.08

Atlassian Corporation PLC A 0.55 14.06 0.06

SBA Communications Corp 0.57 12.22 0.06

Veeva Systems Inc Class A 0.48 11.17 0.05

 

Top 5 Detractors F u n dW e i g h t

AbsoluteReturn*

Portfol ioContr ibut ion

Norwegian Cruise LineHoldings Ltd 0.74 -81.24 -0.87

MGM Resorts International 0.85 -64.24 -0.69

Microchip Technology Inc 1.76 -35.04 -0.65

Eldorado Resorts Inc 0.52 -75.86 -0.57

Teleflex Inc 2.35 -22.12 -0.53

Year to Date:

Top 5 Contributors F u n dW e i g h t

AbsoluteReturn*

Portfol ioContr ibut ion

DocuSign Inc 0.69 24.68 0.14

Clarivate Analytics PLCOrdinary Shares 0.43 23.51 0.08

Atlassian Corporation PLC A 0.55 14.06 0.06

SBA Communications Corp 0.57 12.22 0.06

Veeva Systems Inc Class A 0.48 11.17 0.05

Top 5 Detractors F u n dW e i g h t

AbsoluteReturn*

Portfol ioContr ibut ion

Norwegian Cruise LineHoldings Ltd 0.74 -81.24 -0.87

MGM Resorts International 0.85 -64.24 -0.69

Microchip Technology Inc 1.76 -35.04 -0.65

Eldorado Resorts Inc 0.52 -75.86 -0.57

Teleflex Inc 2.35 -22.12 -0.53

RS9093b RS-49114-00

Portfolio Holdings:

 Fund Weightings are shown as an average for the time period.*Absolute Return is the return that an asset achieves over a certain period of time. This measure looks at the appreciation or depreciation (expressed as apercentage) that a holding achieves over a given period of time.For a complete listing of fund holdings, visit massmutualfunds.com or please call 1-866-444-2601. The mention of individual stocks and other securities inthis document does not constitute investment advice.

© 2020 Massachusetts Mutual Life Insurance Company (MassMutual® ), Springfield, MA. All rights reserved. www.MassMutual.com Principal Underwriter:MML Distributors, LLC. (MMLD) Member FINRA and SIPC (www.FINRA.org and www.SIPC.org) MMLD is a subsidiary of Massachusetts Mutual LifeInsurance Company, 100 Bright Meadow Blvd., Enfield, CT 06082. Investment advisory services provided to the Funds by MML Investment Advisers, LLC.

MassMutual Select Mid-Cap Growth Fund

Page 4: Quarterly Review As of 03/31/2020 MassMutual Select Mid ... · -1.50-0.75 0.00 0.75 1.50 Value Added vs. Benchmark (%) Quarterly Portfolio Commentary: The Russell Midcap Growth Index

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