Table of Contents
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 811-02224
MML Series Investment Fund
(Exact name of registrant as specified in charter)
100 Bright Meadow Blvd., Enfield, CT 06082
(Address of principal executive offices) (Zip code)
Eric Wietsma
100 Bright Meadow Blvd., Enfield, CT 06082
(Name and address of agent for service)
Registrant’s telephone number, including area code: (860) 562-1000
Date of fiscal year end: 12/31/19
Date of reporting period: 6/30/19
Table of Contents
Item 1. Reports to Stockholders.
Table of Contents
Table of Contents
1 | ||||
3 | ||||
8 | ||||
9 | ||||
10 | ||||
11 | ||||
12 | ||||
13 | ||||
14 | ||||
15 | ||||
16 | ||||
20 | ||||
22 | ||||
26 | ||||
34 | ||||
49 | ||||
49 | ||||
49 | ||||
51 |
This material must be preceded or accompanied by a current prospectus (or summary prospectus, if available) for the MML Series Investment Fund. Investors should consider a Fund’s investment objective, risks, and charges and expenses carefully before investing. This and other information about the investment company is available in the prospectus (or summary prospectus, if available). Read it carefully before investing.
Table of Contents
To Our Shareholders
Eric Wietsma
“As always, we recommend that you work with a personal financial professional, who can help you define an investment strategy that aligns with your comfort level with respect to market volatility, how long you have to save and invest, and your specific financial goals.”
June 30, 2019
Welcome to the MML Series Investment Fund Semiannual Report, covering thesix-month period from January 1, 2019 to June 30, 2019.
Market Highlights
• | During the period, U.S. stock prices enjoyed some of their best returns for the first six months since the late 1990s. |
• | Data throughout the period pointed to more uneven global economic growth with markets only rebounding after assurances by the Federal Reserve Board (the Fed) that it would hold off on raising interest rates in 2019. |
• | Developed-market and emerging-market foreign stocks trailed U.S. stock returns for the period, though both developed-market and emerging-market foreign stocks were up for the period and delivered solid returns. |
• | U.S. bonds benefited from declining U.S. Treasury yields and the Fed’s pause in rate hikes. As a result, bond markets enjoyed broad positive returns for the period. |
Market Commentary
Following one of the worst fourth quarters they had ever experienced, stock markets rebounded to enjoy some of the best first half returns since the late 1990s. The rebound gained momentum during the first quarter on expectations that the Fed would not raise interest rates in 2019. The previous year had seen four rate hikes. The rebound accelerated through turbulence caused by ongoing trade tensions and geopolitical sabre rattling as markets came to expect that the Fed might even reduce the federal funds rate (the interest rate that banks and financial institutions charge each other for borrowing funds overnight). By the end of the period, the market anticipated two possible rate reductions in what remains of 2019 and stock market growth accelerated to new records in major stock indexes.
Global growth remains positive, but less synchronized and more restrained than in the recent past. We believe the U.S. economy is showing signs that it may be in the late stages of the current business cycle. For example, a tightening labor market yields low unemployment rates but tends to drive up wage growth, putting pressure on corporate earnings. In addition, declining claims for unemployment benefits may point to a nearer plateau in employment growth. Lastly, we believe recent softness in housing data tends to be consistent with late cycle trends. While talk of recession naturally follows evidence of late cycle indicators, we agree with the general consensus that the risk of near-term recession appears to be low.
The broad market S&P 500® Index* delivered a strong 18.54% gain for the first half of 2019. The technology-heavy NASDAQ Composite Index outperformed for the same period, returning 21.33% growth. The Dow Jones Industrial Average is also up 14.99% so far this year. Small- andmid-cap stocks slightly underperformed their larger peers and value stocks widely underperformed their
* | Indexes referenced, other than the MSCI Indexes, are unmanaged, do not incur fees, expenses, or taxes, and cannot be purchased directly for investment. The MSCI Indexes are unmanaged, do not incur fees or expenses, and cannot be purchased directly for investment. |
(Continued)
1
Table of Contents
MML Series Investment Fund – President’s Letter to Shareholders (Unaudited)(Continued)
growth peers. The positive momentum carried broadly across all market sectors for the period with all sectors delivering double-digit returns. The technology, communications services, and industrials sectors led during the period, while healthcare, utilities, and energy brought up the rear.
Developed international stock markets, as measured by the MSCI EAFE® Index, trailed their domestic peers, but delivered 14.03% returns for the first half of 2019. Central banks voiced unanimous willingness to continue monetary stimulus in support of the current expansion. In addition, the G20 summit towards the end of June seemed to encourage confidence in a resolution, or at leastde-escalation, of trade tensions between the U.S. and China. Emerging-market stock markets, as measured by the MSCI Emerging Markets Index, fared a little worse than developed markets, returning 10.58% for the period.
The Fed once again asserted its influence on markets during this reporting period. This time it was not what they did, but what they did not do that helped. The year started with an expectation of multiple rate hikes in 2019, following the trend set in 2018. As markets began to show signs of bogging down, Fed chair Jerome Powell expressed the Fed’s intent to support ongoing growth through delaying planned rate hikes. Market concerns eased when the Fed set expectations for no more rate hikes in 2019. Optimism returned as the options market began forecasting the possibilities of rate cuts before the end of the year.
The Fed’s inaction, along with prospects of dropping rates, boosted bond markets during the first half of 2019. Bond yields fell, lifting returns on high-quality fixed income assets. The10-year U.S. Treasury bond ended June at 2.00%, down .66% from the first of the year. Since falling yields drive bond prices up, the Bloomberg Barclays U.S. Aggregate Bond Index ended the period with a positive return of 6.11%. Investment-grade and high-yield corporate bonds also fared well in the falling yield environment. The Bloomberg Barclays U.S. Corporate Bond Index, which tracks investment-grade corporate bonds, ended the period up 9.85%. The Bloomberg Barclays U.S. Corporate High Yield Index fared slightly better, ending the period up 9.94%.
Review and maintain your strategy
MassMutual remains committed to helping people secure their long-term future and protect the ones they love. While investors enjoyed broad positive returns over the first half of 2019, we’d like to remind you that, as a retirement investor, it’s important to maintain perspective and have realistic expectations about the future performance of your investment accounts. Optimism about continued economic expansion should be balanced with the constant reminder that past performance does not guarantee future results. Our multi-managed andsub-advised mutual funds tap into the deep expertise of seasoned asset managers who are committed to helping long-term investors prepare for retirement – in all market conditions. As always, we recommend the value a personal financial professional can bring you by helping you define an investment strategy that aligns with your risk tolerance comfort level, how long you have to save and invest, and your specific financial goals. Thank you for your confidence in MassMutual.
Sincerely,
Eric Wietsma
President
© 2019 Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA. All rights reserved. www.massmutual.com Underwriter: MML Distributors, LLC. (MMLD) Member FINRA and SIPC (www.FINRA.org and www.SIPC.org), 100 Bright Meadow Blvd., Enfield, CT 06082. MMLD is a wholly-owned subsidiary of MassMutual. Investment advisory services provided to the Funds by MML Investment Advisers, LLC (MML Advisers), a wholly-owned subsidiary of MassMutual. The information provided is the opinion of MML Advisers as of 7/1/19 and is subject to change without notice. It is not to be construed as tax, legal, or investment advice. Of course, past performance does not guarantee future results.
2
Table of Contents
What are the investment approaches of the Funds that constitute the MML Allocation Series (the “Series”), and who is the Series’ investment adviser?
The MML Allocation Series comprises five Funds – each of which has a “fund of funds” structure. The five Funds in the Series are MML Conservative Allocation Fund, MML Balanced Allocation Fund, MML Moderate Allocation Fund, MML Growth Allocation Fund, and MML Aggressive Allocation Fund.
Each Fund seeks to achieve as high a total return over time as is considered consistent with prudent investment risk, preservation of capital, and recognition of the Fund’s stated asset allocation. Each Fund invests in a combination of U.S. domestic and international mutual funds (“MML Underlying Funds”) using an asset allocation strategy. MML Underlying Funds will include a combination of series of the MML Series Investment Fund and MML Series Investment Fund II (advised by MML Investment Advisers, LLC (MML Advisers), a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual)), and may also include other,non-affiliated mutual funds. The Series’ investment adviser is MML Advisers.
Through their investment in MML Underlying Funds, the Funds will be exposed to a wide range of securities and other instruments with differing characteristics (such as credit quality, duration, geography, industry, and market capitalization), which may include without limitation equity securities of small-,mid-, or large-capitalization U.S. ornon-U.S. issuers, fixed income securities of U.S. ornon-U.S. private or governmental issuers (including “junk” or “high-yield” bonds, including securities in default), inflation-protected securities, bank loans, and short-term investments of any kind.
Each Fund’s assets are allocated to its MML Underlying Funds according to an asset allocation strategy stated below.
• | MML Conservative Allocation Fund:Approximately 35% to 45% in equity funds and 55% to 65% in fixed income funds, including money market funds. |
• | MML Balanced Allocation Fund:Approximately 45% to 55% in equity funds and 45% to 55% in fixed income funds, including money market funds. |
• | MML Moderate Allocation Fund:Approximately 55% to 65% in equity funds and 35% to 45% in fixed income funds, including money market funds. |
• | MML Growth Allocation Fund:Approximately 70% to 80% in equity funds and 20% to 30% in fixed income funds, including money market funds. |
• | MML Aggressive Allocation Fund:Approximately 85% to 95% in equity funds and 5% to 15% in fixed income funds, including money market funds. |
3
Table of Contents
MML Allocation Series – Portfolio Summaries (Unaudited)(Continued)
MML Conservative Allocation Fund Asset Allocation (% of Net Assets) on 6/30/19 | ||||
Fixed Income Funds | 63.4 | % | ||
Equity Funds | 36.7 | % | ||
|
| |||
Total Long-Term Investments | 100.1 | % | ||
Other Assets & Liabilities | (0.1 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
MML Balanced Allocation Fund Asset Allocation (% of Net Assets) on 6/30/19 | ||||
Fixed Income Funds | 53.2 | % | ||
Equity Funds | 46.9 | % | ||
|
| |||
Total Long-Term Investments | 100.1 | % | ||
Other Assets & Liabilities | (0.1 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
MML Moderate Allocation Fund Asset Allocation (% of Net Assets) on 6/30/19 | ||||
Equity Funds | 56.8 | % | ||
Fixed Income Funds | 43.3 | % | ||
|
| |||
Total Long-Term Investments | 100.1 | % | ||
Other Assets & Liabilities | (0.1 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
MML Growth Allocation Fund Asset Allocation (% of Net Assets) on 6/30/19 | ||||
Equity Funds | 71.9 | % | ||
Fixed Income Funds | 28.2 | % | ||
|
| |||
Total Long-Term Investments | 100.1 | % | ||
Other Assets & Liabilities | (0.1 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
MML Aggressive Allocation Fund Asset Allocation (% of Net Assets) on 6/30/19 | ||||
Equity Funds | 86.9 | % | ||
Fixed Income Funds | 13.2 | % | ||
|
| |||
Total Long-Term Investments | 100.1 | % | ||
Other Assets & Liabilities | (0.1 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
4
Table of Contents
MML American Funds Growth Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML American Funds Growth Fund, and who is the Fund’s investment adviser?
The Fund seeks to provide investors with growth of capital through a “master feeder” relationship. (See page 34 of this report for information about the “master feeder” relationship.) The Fund invests all of its assets in Class 1 shares of the American Funds Insurance Series – Growth Fund (the “Master Growth Fund”), a series of the American Funds Insurance Series, a registeredopen-end investment company, managed by Capital Research and Management Company (Capital Research) with substantially the same investment objective. The Master Growth Fund invests primarily in common stocks and seeks to invest in companies that appear to offer superior opportunities for growth of capital. The Master Growth Fund may invest up to 25% of its assets in common stocks and other securities of issuers domiciled outside the United States. The Master Growth Fund may hold a portion of its assets in cash or cash equivalents. The Fund’s investment adviser is MML Investment Advisers, LLC (MML Advisers).
MML American Funds Growth Fund Asset Allocation (% of Net Assets) on 6/30/19 | ||||
Equity Funds | 100.1 | % | ||
|
| |||
Total Long-Term Investments | 100.1 | % | ||
Other Assets & Liabilities | (0.1 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
5
Table of Contents
MML American Funds International Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML American Funds International Fund, and who is the Fund’s investment adviser?
The Fund seeks long-term capital growth of assets through a “master-feeder” relationship. (See page 34 of this report for information about the “master feeder” relationship.) The Fund invests all of its assets in Class 1 shares of the American Funds Insurance Series – International Fund (the “Master International Fund”), a series of the American Funds Insurance Series, a registeredopen-end investment company managed by Capital Research and Management Company (Capital Research) with substantially the same investment objective. The Master International Fund invests primarily in common stocks of companies domiciled outside the United States, including companies domiciled in emerging markets, that Capital Research believes have the potential for growth. The Master International Fund may hold a portion of its assets in cash or cash equivalents. The Fund’s investment adviser is MML Investment Advisers, LLC (MML Advisers).
MML American Funds International Fund Asset Allocation (% of Net Assets) on 6/30/19 | ||||
Mutual Funds | 100.1 | % | ||
|
| |||
Total Long-Term Investments | 100.1 | % | ||
Other Assets and Liabilities | (0.1 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
6
Table of Contents
MML American Funds Core Allocation Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML American Funds Core Allocation Fund, and who is the Fund’s investment adviser?
The Fund seeks to achieve as high a total return over time as is considered consistent with prudent investment risk, preservation of capital, and recognition of the Fund’s stated asset allocation. The Fund is a “fund of funds” and seeks to achieve its investment objective by principally investing in a combination of series of the American Funds Insurance Series (the “American Underlying Funds”), managed by Capital Research and Management Company (Capital Research), using a flexible asset allocation approach. The Fund’s investment adviser invests the Fund’s assets in a combination of U.S. domestic and international American Underlying Funds. As of the date of this report, it is expected that the American Underlying Funds will include Class 1 shares of the American Funds Insurance Series – Bond Fund, the American Funds Insurance Series – Blue Chip Income and Growth Fund, the American Funds Insurance Series – Growth-Income Fund, and the American Funds Insurance Series – International Fund. The Fund’s investment adviser allocates the Fund’s assets among a variety of different asset classes through investing in American Underlying Funds in response to changing market, economic, and investment conditions. The Fund’s investment adviser is MML Investment Advisers, LLC (MML Advisers).
MML American Funds Core Allocation Fund Asset Allocation (% of Net Assets) on 6/30/19 | ||||
Equity Funds | 64.3 | % | ||
Fixed Income Funds | 35.8 | % | ||
|
| |||
Total Long-Term Investments | 100.1 | % | ||
Other Assets & Liabilities | (0.1 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
7
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
MUTUAL FUNDS — 100.1% | ||||||||
Equity Funds — 36.7% | ||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | 26,868 | $ | 2,101,040 | |||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 163,116 | 6,397,415 | ||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 673,412 | 1,508,444 | ||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | 181,031 | 4,893,278 | ||||||
MML Blue Chip Growth Fund, Initial Class (a) | 592,691 | 10,455,072 | ||||||
MML Equity Income Fund, Initial Class (a) | 988,932 | 11,491,394 | ||||||
MML Equity Index Fund, Class III (a) | 26,946 | 894,864 | ||||||
MML Focused Equity Fund, Class II (a) | 2,554,818 | 16,427,478 | ||||||
MML Foreign Fund, Initial Class (a) | 727,975 | 7,250,632 | ||||||
MML Fundamental Growth Fund, Class II (a) | 596,905 | 6,762,935 | ||||||
MML Fundamental Value Fund, Class II (a) | 761,782 | 10,565,909 | ||||||
MML Global Fund, Class I (a) | 1,556,479 | 19,315,901 | ||||||
MML Income & Growth Fund, Initial Class (a) | 1,319,420 | 12,864,344 | ||||||
MML International Equity Fund, Class II (a) | 938,675 | 9,461,849 | ||||||
MML Large Cap Growth Fund, Initial Class (a) | 258,312 | 3,053,245 | ||||||
MML Mid Cap Growth Fund, Initial Class (a) | 605,492 | 10,481,066 | ||||||
MML Mid Cap Value Fund, Initial Class (a) | 785,823 | 8,612,623 | ||||||
MML Small Cap Growth Equity Fund, Initial Class (a) | 113,336 | 1,817,594 | ||||||
MML Small Company Value Fund, Class II (a) | 254,157 | 4,127,506 | ||||||
MML Small/Mid Cap Value Fund, Initial Class (a) | 211,835 | 2,567,446 | ||||||
MML Strategic Emerging Markets Fund, Class II (a) | 47,770 | 560,824 | ||||||
|
| |||||||
151,610,859 | ||||||||
|
| |||||||
Fixed Income Funds — 63.4% | ||||||||
Invesco Oppenheimer V.I. Global Strategic Income Fund/VA, Series I | 2,227,463 | 10,847,747 | ||||||
MML Dynamic Bond Fund, Class II (a) | 5,730,641 | 57,994,089 |
Number of Shares | Value | |||||||
MML High Yield Fund, Class II (a) | 1,240,680 | $ | 11,984,965 | |||||
MML Inflation-Protected and Income Fund, Initial Class (a) | 1,708,688 | 17,616,570 | ||||||
MML Managed Bond Fund, Initial Class (a) | 7,089,900 | 89,474,540 | ||||||
MML Short-Duration Bond Fund, Class II (a) | 2,422,760 | 23,646,140 | ||||||
MML Total Return Bond Fund, Class II (a) | 4,672,879 | 50,513,822 | ||||||
|
| |||||||
262,077,873 | ||||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $405,700,242) | 413,688,732 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $405,700,242) | 413,688,732 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $405,700,242) (b) | 413,688,732 | |||||||
Other Assets/(Liabilities) — (0.1)% | (329,268 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 413,359,464 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers. |
(b) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
8
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
MUTUAL FUNDS — 100.1% | ||||||||
Equity Funds — 46.9% | ||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | 44,749 | $ | 3,499,352 | |||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 251,566 | 9,866,404 | ||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 1,206,059 | 2,701,573 | ||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | 364,949 | 9,864,559 | ||||||
MML Blue Chip Growth Fund, Initial Class (a) | 908,070 | 16,018,362 | ||||||
MML Equity Income Fund, Initial Class (a) | 1,545,072 | 17,953,737 | ||||||
MML Equity Index Fund, Class III (a) | 39,292 | 1,304,872 | ||||||
MML Focused Equity Fund, Class II (a) | 3,197,249 | 20,558,310 | ||||||
MML Foreign Fund, Initial Class (a) | 1,490,553 | 14,845,908 | ||||||
MML Fundamental Growth Fund, Class II (a) | 895,777 | 10,149,155 | ||||||
MML Fundamental Value Fund, Class II (a) | 1,134,877 | 15,740,744 | ||||||
MML Global Fund, Class I (a) | 3,222,512 | 39,991,373 | ||||||
MML Income & Growth Fund, Initial Class (a) | 1,887,053 | 18,398,770 | ||||||
MML International Equity Fund, Class II (a) | 1,466,304 | 14,780,345 | ||||||
MML Large Cap Growth Fund, Initial Class (a) | 532,051 | 6,288,841 | ||||||
MML Mid Cap Growth Fund, Initial Class (a) | 1,028,735 | 17,807,406 | ||||||
MML Mid Cap Value Fund, Initial Class (a) | 1,475,803 | 16,174,797 | ||||||
MML Small Cap Growth Equity Fund, Initial Class (a) | 243,959 | 3,912,408 | ||||||
MML Small Company Value Fund, Class II (a) | 389,133 | 6,319,527 | ||||||
MML Small/Mid Cap Value Fund, Initial Class (a) | 341,541 | 4,139,471 | ||||||
MML Strategic Emerging Markets Fund, Class II (a) | 144,603 | 1,697,635 | ||||||
|
| |||||||
252,013,549 | ||||||||
|
| |||||||
Fixed Income Funds — 53.2% | ||||||||
Invesco Oppenheimer V.I. Global Strategic Income Fund/VA, Series I | 2,115,774 | 10,303,820 | ||||||
MML Dynamic Bond Fund, Class II (a) | 6,145,929 | 62,196,803 |
Number of Shares | Value | |||||||
MML High Yield Fund, Class II (a) | 1,336,381 | $ | 12,909,439 | |||||
MML Inflation-Protected and Income Fund, Initial Class (a) | 1,962,000 | 20,228,221 | ||||||
MML Managed Bond Fund, Initial Class (a) | 7,926,361 | 100,030,678 | ||||||
MML Short-Duration Bond Fund, Class II (a) | 2,636,907 | 25,736,215 | ||||||
MML Total Return Bond Fund, Class II (a) | 5,049,102 | 54,580,791 | ||||||
|
| |||||||
285,985,967 | ||||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $529,994,367) | 537,999,516 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $529,994,367) | 537,999,516 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $529,994,367) (b) | 537,999,516 | |||||||
Other Assets/(Liabilities) — (0.1)% | (407,842 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 537,591,674 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers. |
(b) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
9
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
MUTUAL FUNDS — 100.1% | ||||||||
Equity Funds — 56.8% | ||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | 225,235 | $ | 17,613,345 | |||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 1,024,292 | 40,172,729 | ||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 5,641,642 | 12,637,278 | ||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | 1,094,282 | 29,578,447 | ||||||
MML Blue Chip Growth Fund, Initial Class (a) | 4,299,478 | 75,842,791 | ||||||
MML Equity Income Fund, Initial Class (a) | 7,236,232 | 84,085,021 | ||||||
MML Equity Index Fund, Class III (a) | 168,743 | 5,603,942 | ||||||
MML Focused Equity Fund, Class II (a) | 17,930,454 | 115,292,817 | ||||||
MML Foreign Fund, Initial Class (a) | 7,199,390 | 71,705,925 | ||||||
MML Fundamental Growth Fund, Class II (a) | 3,802,132 | 43,078,158 | ||||||
MML Fundamental Value Fund, Class II (a) | 5,385,770 | 74,700,626 | ||||||
MML Global Fund, Class I (a) | 13,418,796 | 166,527,258 | ||||||
MML Income & Growth Fund, Initial Class (a) | 8,748,930 | 85,302,069 | ||||||
MML International Equity Fund, Class II (a) | 7,374,639 | 74,336,360 | ||||||
MML Large Cap Growth Fund, Initial Class (a) | 1,915,147 | 22,637,037 | ||||||
MML Mid Cap Growth Fund, Initial Class (a) | 5,110,748 | 88,467,049 | ||||||
MML Mid Cap Value Fund, Initial Class (a) | 6,957,273 | 76,251,713 | ||||||
MML Small Cap Growth Equity Fund, Initial Class (a) | 999,454 | 16,028,392 | ||||||
MML Small Company Value Fund, Class II (a) | 1,922,758 | 31,225,593 | ||||||
MML Small/Mid Cap Value Fund, Initial Class (a) | 2,126,215 | 25,769,728 | ||||||
MML Strategic Emerging Markets Fund, Class II (a) | 5,170,917 | 60,706,565 | ||||||
|
| |||||||
1,217,562,843 | ||||||||
|
| |||||||
Fixed Income Funds — 43.3% | ||||||||
Invesco Oppenheimer V.I. Global Strategic Income Fund/VA, Series I | 6,962,667 | 33,908,190 |
Number of Shares | Value | |||||||
MML Dynamic Bond Fund, Class II (a) | 20,227,700 | $ | 204,704,322 | |||||
MML High Yield Fund, Class II (a) | 4,042,257 | 39,048,202 | ||||||
MML Inflation-Protected and Income Fund, Initial Class (a) | 6,495,378 | 66,967,350 | ||||||
MML Managed Bond Fund, Initial Class (a) | 25,738,561 | 324,820,666 | ||||||
MML Short-Duration Bond Fund, Class II (a) | 8,294,439 | 80,953,722 | ||||||
MML Total Return Bond Fund, Class II (a) | 16,296,279 | 176,162,781 | ||||||
|
| |||||||
926,565,233 | ||||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $2,110,268,599) | 2,144,128,076 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $2,110,268,599) | 2,144,128,076 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $2,110,268,599) (b) | 2,144,128,076 | |||||||
Other Assets/(Liabilities) — (0.1)% | (1,561,808 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 2,142,566,268 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers. |
(b) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
10
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
MUTUAL FUNDS — 100.1% | ||||||||
Equity Funds — 71.9% | ||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | 203,599 | $ | 15,921,460 | |||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 838,362 | 32,880,538 | ||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 5,065,941 | 11,347,708 | ||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | 967,241 | 26,144,519 | ||||||
MML Blue Chip Growth Fund, Initial Class (a) | 3,803,737 | 67,097,927 | ||||||
MML Equity Income Fund, Initial Class (a) | 6,424,824 | 74,656,455 | ||||||
MML Equity Index Fund, Class III (a) | 148,649 | 4,936,646 | ||||||
MML Focused Equity Fund, Class II (a) | 17,396,392 | 111,858,801 | ||||||
MML Foreign Fund, Initial Class (a) | 6,532,468 | 65,063,381 | ||||||
MML Fundamental Growth Fund, Class II (a) | 2,894,957 | 32,799,861 | ||||||
MML Fundamental Value Fund, Class II (a) | 4,824,483 | 66,915,575 | ||||||
MML Global Fund, Class I (a) | 11,967,564 | 148,517,472 | ||||||
MML Income & Growth Fund, Initial Class (a) | 7,760,292 | 75,662,843 | ||||||
MML International Equity Fund, Class II (a) | 6,834,683 | 68,893,607 | ||||||
MML Large Cap Growth Fund, Initial Class (a) | 1,845,969 | 21,819,351 | ||||||
MML Mid Cap Growth Fund, Initial Class (a) | 4,727,845 | 81,838,998 | ||||||
MML Mid Cap Value Fund, Initial Class (a) | 6,309,204 | 69,148,874 | ||||||
MML Small Cap Growth Equity Fund, Initial Class (a) | 921,124 | 14,772,215 | ||||||
MML Small Company Value Fund, Class II (a) | 1,813,598 | 29,452,832 | ||||||
MML Small/Mid Cap Value Fund, Initial Class (a) | 1,953,487 | 23,676,257 | ||||||
MML Strategic Emerging Markets Fund, Class II (a) | 5,082,131 | 59,664,217 | ||||||
|
| |||||||
1,103,069,537 | ||||||||
|
| |||||||
Fixed Income Funds — 28.2% | ||||||||
Invesco Oppenheimer V.I. Global Strategic Income Fund/VA, Series I | 3,291,673 | 16,030,446 |
Number of Shares | Value | |||||||
MML Dynamic Bond Fund, Class II (a) | 8,640,550 | $ | 87,442,365 | |||||
MML High Yield Fund, Class II (a) | 1,884,067 | 18,200,084 | ||||||
MML Inflation-Protected and Income Fund, Initial Class (a) | 5,714,141 | 58,912,798 | ||||||
MML Managed Bond Fund, Initial Class (a) | 11,112,219 | 140,236,218 | ||||||
MML Short-Duration Bond Fund, Class II (a) | 4,070,091 | 39,724,089 | ||||||
MML Total Return Bond Fund, Class II (a) | 6,663,801 | 72,035,690 | ||||||
|
| |||||||
432,581,690 | ||||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $1,504,160,337) | 1,535,651,227 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $1,504,160,337) | 1,535,651,227 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $1,504,160,337) (b) | 1,535,651,227 | |||||||
Other Assets/(Liabilities) — (0.1)% | (965,938 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 1,534,685,289 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers. |
(b) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
11
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
MUTUAL FUNDS — 100.1% | ||||||||
Equity Funds — 86.9% | ||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | 25,264 | $ | 1,975,655 | |||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 97,998 | 3,843,468 | ||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 626,852 | 1,404,148 | ||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | 129,705 | 3,505,930 | ||||||
MML Blue Chip Growth Fund, Initial Class (a) | 475,704 | 8,391,420 | ||||||
MML Equity Income Fund, Initial Class (a) | 753,680 | 8,757,758 | ||||||
MML Equity Index Fund, Class III (a) | 18,616 | 618,235 | ||||||
MML Focused Equity Fund, Class II (a) | 2,047,291 | 13,164,078 | ||||||
MML Foreign Fund, Initial Class (a) | 786,653 | 7,835,068 | ||||||
MML Fundamental Growth Fund, Class II (a) | 345,298 | 3,912,221 | ||||||
MML Fundamental Value Fund, Class II (a) | 590,850 | 8,195,088 | ||||||
MML Global Fund, Class I (a) | 1,433,705 | 17,792,279 | ||||||
MML Income & Growth Fund, Initial Class (a) | 880,025 | 8,580,246 | ||||||
MML International Equity Fund, Class II (a) | 886,978 | 8,940,741 | ||||||
MML Large Cap Growth Fund, Initial Class (a) | 248,466 | 2,936,874 | ||||||
MML Mid Cap Growth Fund, Initial Class (a) | 620,801 | 10,746,058 | ||||||
MML Mid Cap Value Fund, Initial Class (a) | 752,346 | 8,245,711 | ||||||
MML Small Cap Growth Equity Fund, Initial Class (a) | 117,927 | 1,891,216 | ||||||
MML Small Company Value Fund, Class II (a) | 232,885 | 3,782,053 | ||||||
MML Small/Mid Cap Value Fund, Initial Class (a) | 219,805 | 2,664,032 | ||||||
MML Strategic Emerging Markets Fund, Class II (a) | 663,604 | 7,790,705 | ||||||
|
| |||||||
134,972,984 | ||||||||
|
| |||||||
Fixed Income Funds — 13.2% | ||||||||
Invesco Oppenheimer V.I. Global Strategic Income Fund/VA, Series I | 153,836 | 749,182 | ||||||
MML Dynamic Bond Fund, Class II (a) | 352,629 | 3,568,606 |
Number of Shares | Value | |||||||
MML High Yield Fund, Class II (a) | 50,970 | $ | 492,371 | |||||
MML Inflation-Protected and Income Fund, Initial Class (a) | 330,122 | 3,403,554 | ||||||
MML Managed Bond Fund, Initial Class (a) | 543,711 | 6,861,637 | ||||||
MML Short-Duration Bond Fund, Class II (a) | 297,886 | 2,907,372 | ||||||
MML Total Return Bond Fund, Class II (a) | 230,888 | 2,495,903 | ||||||
|
| |||||||
20,478,625 | ||||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $152,750,722) | 155,451,609 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $152,750,722) | 155,451,609 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $152,750,722) (b) | 155,451,609 | |||||||
Other Assets/(Liabilities) — (0.1)% | (128,418 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 155,323,191 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Affiliated issuer. See Note 7 for a summary of transactions in the investments of affiliated issuers. |
(b) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
12
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
MUTUAL FUNDS — 100.1% | ||||||||
Equity Funds — 100.1% | ||||||||
American Funds Growth Fund, Class 1 | 2,539,487 | $ | 185,052,418 | |||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $181,743,611) | 185,052,418 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $181,743,611) | 185,052,418 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $181,743,611) (a) | 185,052,418 | |||||||
Other Assets/(Liabilities) — (0.1)% | (205,349 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 184,847,069 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
13
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
MUTUAL FUNDS — 100.1% | ||||||||
Equity Funds — 100.1% | ||||||||
American Funds International Fund, Class 1 | 3,167,463 | $ | 62,557,397 | |||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $59,723,546) | 62,557,397 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $59,723,546) | 62,557,397 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $59,723,546) (a) | 62,557,397 | |||||||
Other Assets/(Liabilities) — (0.1)% | (84,326 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 62,473,071 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
14
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
MUTUAL FUNDS — 100.1% | ||||||||
Equity Funds — 64.3% | ||||||||
American Funds Blue Chip Income and Growth Fund, Class 1 | 20,108,637 | $ | 253,569,910 | |||||
American Funds Growth-Income Fund, Class 1 | 5,487,012 | 259,480,813 | ||||||
American Funds International Fund, Class 1 | 6,583,958 | 130,033,165 | ||||||
|
| |||||||
643,083,888 | ||||||||
|
| |||||||
Fixed Income Funds — 35.8% | ||||||||
American Funds Bond Fund, Class 1 | 32,144,852 | 357,450,753 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $1,003,172,582) | 1,000,534,641 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $1,003,172,582) | 1,000,534,641 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $1,003,172,582) (a) | 1,000,534,641 | |||||||
Other Assets/(Liabilities) — (0.1)% | (1,087,372 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 999,447,269 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
15
Table of Contents
MML Series Investment Fund – Financial Statements
Statements of Assets and Liabilities
June 30, 2019 (Unaudited)
MML Conservative Allocation Fund | MML Balanced Allocation Fund | |||||||
Assets: |
| |||||||
Investments, at value — unaffiliated issuers(Note 2) (a) | $ | 25,747,924 | $ | 36,235,708 | ||||
Investments, at value — affiliated issuers(Note 2 & 7) (b) | 387,940,808 | 501,763,808 | ||||||
|
|
|
| |||||
Total investments | 413,688,732 | 537,999,516 | ||||||
|
|
|
| |||||
Receivables from: |
| |||||||
Investments sold | - | 593,347 | ||||||
Fund shares sold | 564,566 | 68,635 | ||||||
|
|
|
| |||||
Total assets | 414,253,298 | 538,661,498 | ||||||
|
|
|
| |||||
Liabilities: |
| |||||||
Payables for: |
| |||||||
Investments purchased | 405,251 | - | ||||||
Fund shares repurchased | 152,237 | 653,222 | ||||||
Trustees’ fees and expenses(Note 3) | 48,487 | 59,395 | ||||||
Affiliates(Note 3): |
| |||||||
Investment advisory fees | 31,401 | 40,719 | ||||||
Administration fees | - | - | ||||||
Service fees | 198,631 | 255,223 | ||||||
Accrued expense and other liabilities | 57,827 | 61,265 | ||||||
|
|
|
| |||||
Total liabilities | 893,834 | 1,069,824 | ||||||
|
|
|
| |||||
Net assets | $ | 413,359,464 | $ | 537,591,674 | ||||
|
|
|
| |||||
Net assets consist of: |
| |||||||
Paid-in capital | $ | 386,160,758 | $ | 497,714,293 | ||||
Accumulated Gain (Loss) | 27,198,706 | 39,877,381 | ||||||
|
|
|
| |||||
Net assets | $ | 413,359,464 | $ | 537,591,674 | ||||
|
|
|
| |||||
(a) Cost of investments — unaffiliated issuers: | $ | 25,991,755 | $ | 37,022,261 | ||||
(b) Cost of investments — affiliated issuers: | $ | 379,708,487 | $ | 492,972,106 |
The accompanying notes are an integral part of the financial statements.
16
Table of Contents
MML Moderate Allocation Fund | MML Growth Allocation Fund | MML Aggressive Allocation Fund | MML American Funds Growth Fund | MML American Funds International Fund | MML American Funds Core Allocation Fund | |||||||||||||||||
$ | 133,909,989 | $ | 102,324,671 | $ | 11,478,382 | $ | 185,052,418 | $ | 62,557,397 | $ | 1,000,534,641 | |||||||||||
2,010,218,087 | 1,433,326,556 | 143,973,227 | - | - | - | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
2,144,128,076 | 1,535,651,227 | 155,451,609 | 185,052,418 | 62,557,397 | 1,000,534,641 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,213,852 | 1,396,804 | 38,911 | 197,420 | 74,960 | - | |||||||||||||||||
84,181 | 53,579 | 13,668 | 158,568 | 1,160 | 157,161 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
2,145,426,109 | 1,537,101,610 | 155,504,188 | 185,408,406 | 62,633,517 | 1,000,691,802 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
- | - | - | - | - | 2,135 | |||||||||||||||||
1,266,048 | 1,427,145 | 49,294 | 352,432 | 74,151 | 140,197 | |||||||||||||||||
221,483 | 178,367 | 13,270 | 13,658 | 6,177 | 88,230 | |||||||||||||||||
162,517 | 116,204 | 11,714 | 20,856 | 7,006 | 147,018 | |||||||||||||||||
- | - | - | 34,760 | 11,677 | 189,478 | |||||||||||||||||
1,097,682 | 601,963 | 56,164 | 114,120 | 38,524 | 623,065 | |||||||||||||||||
112,111 | 92,642 | 50,555 | 25,511 | 22,911 | 54,410 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
2,859,841 | 2,416,321 | 180,997 | 561,337 | 160,446 | 1,244,533 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 2,142,566,268 | $ | 1,534,685,289 | $ | 155,323,191 | $ | 184,847,069 | $ | 62,473,071 | $ | 999,447,269 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 1,944,304,871 | $ | 1,341,377,539 | $ | 137,623,812 | $ | 136,331,757 | $ | 52,736,037 | $ | 858,772,581 | |||||||||||
198,261,397 | 193,307,750 | 17,699,379 | 48,515,312 | 9,737,034 | 140,674,688 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 2,142,566,268 | $ | 1,534,685,289 | $ | 155,323,191 | $ | 184,847,069 | $ | 62,473,071 | $ | 999,447,269 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 134,691,024 | $ | 102,367,199 | $ | 11,691,310 | $ | 181,743,611 | $ | 59,723,546 | $ | 1,003,172,582 | |||||||||||
$ | 1,975,577,575 | $ | 1,401,793,138 | $ | 141,059,412 | $ | - | $ | - | $ | - |
17
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Assets and Liabilities
June 30, 2019 (Unaudited)
MML Conservative Allocation Fund | MML Balanced Allocation Fund | |||||||
Initial Class shares: |
| |||||||
Net assets | $ | 93,709,310 | $ | 124,253,077 | ||||
|
|
|
| |||||
Shares outstanding (a) | 9,215,429 | 12,256,348 | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | 10.17 | $ | 10.14 | ||||
|
|
|
| |||||
Service Class shares: |
| |||||||
Net assets | $ | 319,650,154 | $ | 413,338,597 | ||||
|
|
|
| |||||
Shares outstanding (a) | 31,806,561 | 41,200,298 | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | 10.05 | $ | 10.03 | ||||
|
|
|
| |||||
Service Class I shares: |
| |||||||
Net assets | $ | - | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | - | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | - | $ | - | ||||
|
|
|
|
(a) | Authorized unlimited number of shares with no par value. |
The accompanying notes are an integral part of the financial statements.
18
Table of Contents
MML Moderate Allocation Fund | MML Growth Allocation Fund | MML Aggressive Allocation Fund | MML American Funds Growth Fund | MML American Funds International Fund | MML American Funds Core Allocation Fund | |||||||||||||||||
$ | 376,853,918 | $ | 566,327,670 | $ | 65,137,403 | $ | - | $ | - | $ | - | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
34,577,697 | 59,568,116 | 6,132,502 | - | - | - | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 10.90 | $ | 9.51 | $ | 10.62 | $ | - | $ | - | $ | - | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 1,765,712,350 | $ | 968,357,619 | $ | 90,185,788 | $ | - | $ | - | $ | - | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
164,067,119 | 102,870,227 | 8,626,995 | - | - | - | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 10.76 | $ | 9.41 | $ | 10.45 | $ | - | $ | - | $ | - | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | - | $ | - | $ | - | $ | 184,847,069 | $ | 62,473,071 | $ | 999,447,269 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
- | - | - | 12,497,265 | 6,015,757 | 81,958,821 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | - | $ | - | $ | - | $ | 14.79 | $ | 10.38 | $ | 12.19 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
19
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
For the Six Months Ended June 30, 2019 (Unaudited)
MML Conservative Allocation Fund | MML Balanced Allocation Fund | |||||||
Investment income (Note 2): |
| |||||||
Dividends — unaffiliated issuers | $ | 523,525 | $ | 598,227 | ||||
Dividends — affiliated issuers(Note 7) | 2,267,248 | 2,541,150 | ||||||
|
|
|
| |||||
Total investment income | 2,790,773 | 3,139,377 | ||||||
|
|
|
| |||||
Expenses (Note 3): |
| |||||||
Investment advisory fees | 201,096 | 258,485 | ||||||
Custody fees | 12,036 | 12,042 | ||||||
Audit fees | 15,781 | 15,865 | ||||||
Legal fees | 12,188 | 15,483 | ||||||
Proxy fees | 1,069 | 1,069 | ||||||
Shareholder reporting fees | 7,939 | 9,025 | ||||||
Trustees’ fees | 9,823 | 12,546 | ||||||
|
|
|
| |||||
259,932 | 324,515 | |||||||
Administration fees: | ||||||||
Service Class I | - | - | ||||||
Service fees: | ||||||||
Service Class | 388,660 | 498,104 | ||||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Total expenses | 648,592 | 822,619 | ||||||
Expenses waived(Note 3): | ||||||||
Service Class I fees reimbursed by adviser | - | - | ||||||
|
|
|
| |||||
Net expenses: | 648,592 | 822,619 | ||||||
|
|
|
| |||||
Net investment income (loss) | 2,142,181 | 2,316,758 | ||||||
|
|
|
| |||||
Realized and unrealized gain (loss): |
| |||||||
Net realized gain (loss) on: | ||||||||
Investment transactions — unaffiliated issuers | 8,334 | (7,253 | ) | |||||
Investment transactions — affiliated issuers(Note 7) | (2,525,368 | ) | (3,623,736 | ) | ||||
Realized gain distributions — unaffiliated issuers | 1,981,774 | 3,480,540 | ||||||
|
|
|
| |||||
Net realized gain (loss) | (535,260 | ) | (150,449 | ) | ||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investment transactions — unaffiliated issuers | (243,831 | ) | (786,553 | ) | ||||
Investment transactions — affiliated issuers(Note 7) | 37,798,181 | 53,791,200 | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) | 37,554,350 | 53,004,647 | ||||||
|
|
|
| |||||
Net realized gain (loss) and change in unrealized appreciation (depreciation) | 37,019,090 | 52,854,198 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | $ | 39,161,271 | $ | 55,170,956 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
20
Table of Contents
MML Moderate Allocation Fund | MML Growth Allocation Fund | MML Aggressive Allocation Fund | MML American Funds Growth Fund | MML American Funds International Fund | MML American Funds Core Allocation Fund | |||||||||||||||||
$ | 2,064,415 | $ | 1,309,364 | $ | 112,253 | $ | 445,750 | $ | 108,551 | $ | 4,221,156 | |||||||||||
8,669,709 | 4,362,265 | 269,131 | - | - | - | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
10,734,124 | 5,671,629 | 381,384 | 445,750 | 108,551 | 4,221,156 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,042,614 | 749,235 | 73,783 | 132,132 | 45,020 | 945,986 | |||||||||||||||||
12,560 | 12,588 | 12,557 | 1,129 | 1,129 | 3,443 | |||||||||||||||||
17,057 | 16,602 | 15,584 | 15,600 | 15,516 | 16,205 | |||||||||||||||||
63,275 | 44,629 | 4,119 | 4,775 | 1,861 | 28,199 | |||||||||||||||||
1,069 | 1,069 | 1,069 | 1,069 | 1,069 | 1,069 | |||||||||||||||||
24,617 | 18,602 | 5,333 | 6,113 | 5,058 | 15,514 | |||||||||||||||||
51,000 | 36,320 | 3,422 | 3,950 | 1,398 | 23,310 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,212,192 | 879,045 | 115,867 | 164,768 | 71,051 | 1,033,726 | |||||||||||||||||
- | - | - | 220,221 | 75,033 | 1,220,049 | |||||||||||||||||
2,154,981 | 1,180,428 | 109,067 | - | - | - | |||||||||||||||||
- | - | - | 220,221 | 75,033 | 1,220,049 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
3,367,173 | 2,059,473 | 224,934 | 605,210 | 221,117 | 3,473,824 | |||||||||||||||||
- | - | - | - | (6,915 | ) | - | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
3,367,173 | 2,059,473 | 224,934 | 605,210 | 214,202 | 3,473,824 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
7,366,951 | 3,612,156 | 156,450 | (159,460 | ) | (105,651 | ) | 747,332 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(153,696 | ) | (384,409 | ) | 75,140 | 2,031,323 | 750,466 | 2,173,609 | |||||||||||||||
(8,923,586 | ) | 1,212,303 | (806,013 | ) | - | - | - | |||||||||||||||
13,313,162 | 11,789,688 | 1,394,680 | 19,248,199 | 1,554,763 | 48,192,208 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
4,235,880 | 12,617,582 | 663,807 | 21,279,522 | 2,305,229 | 50,365,817 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(781,035 | ) | (42,528 | ) | (212,928 | ) | 5,407,545 | 5,976,801 | 52,630,811 | ||||||||||||||
230,508,883 | 178,629,067 | 20,558,260 | - | - | - | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
229,727,848 | 178,586,539 | 20,345,332 | 5,407,545 | 5,976,801 | 52,630,811 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
233,963,728 | 191,204,121 | 21,009,139 | 26,687,067 | 8,282,030 | 102,996,628 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 241,330,679 | $ | 194,816,277 | $ | 21,165,589 | $ | 26,527,607 | $ | 8,176,379 | $ | 103,743,960 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
21
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Changes in Net Assets
MML Conservative Allocation Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
Increase (Decrease) in Net Assets: |
| |||||||
Operations: |
| |||||||
Net investment income (loss) | $ | 2,142,181 | $ | 8,942,002 | ||||
Net realized gain (loss) | (535,260 | ) | 14,650,602 | |||||
Net change in unrealized appreciation (depreciation) | 37,554,350 | (38,676,162 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 39,161,271 | (15,083,558 | ) | |||||
|
|
|
| |||||
Distributions to shareholders (Note 2): |
| |||||||
Initial Class | - | (4,578,931 | ) | |||||
Service Class | - | (14,533,651 | ) | |||||
|
|
|
| |||||
Total distributions | - | (19,112,582 | ) | |||||
|
|
|
| |||||
Net fund share transactions (Note 5): |
| |||||||
Initial Class | (6,089,970 | ) | (8,677,685 | ) | ||||
Service Class | (16,739,140 | ) | (36,235,951 | ) | ||||
|
|
|
| |||||
Increase (decrease) in net assets from fund share transactions | (22,829,110 | ) | (44,913,636 | ) | ||||
|
|
|
| |||||
Total increase (decrease) in net assets | 16,332,161 | (79,109,776 | ) | |||||
Net assets |
| |||||||
Beginning of period | 397,027,303 | 476,137,079 | ||||||
|
|
|
| |||||
End of period | $ | 413,359,464 | $ | 397,027,303 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
22
Table of Contents
MML Balanced Allocation Fund | MML Moderate Allocation Fund | MML Growth Allocation Fund | ||||||||||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||||||||||||
$ | 2,316,758 | $ | 10,343,559 | $ | 7,366,951 | $ | 36,852,395 | $ | 3,612,156 | $ | 21,702,965 | |||||||||||
(150,449 | ) | 23,266,475 | 4,235,880 | 126,757,835 | 12,617,582 | 130,745,975 | ||||||||||||||||
53,004,647 | (58,352,656 | ) | 229,727,848 | (286,045,480 | ) | 178,586,539 | (260,669,321 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
55,170,956 | (24,742,622 | ) | 241,330,679 | (122,435,250 | ) | 194,816,277 | (108,220,381 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
- | (8,016,875 | ) | - | (26,266,683 | ) | - | (49,457,550 | ) | ||||||||||||||
- | (25,727,972 | ) | - | (124,671,100 | ) | - | (81,733,948 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
- | (33,744,847 | ) | - | (150,937,783 | ) | - | (131,191,498 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(4,698,149 | ) | (10,129,837 | ) | (14,890,602 | ) | (21,673,573 | ) | (42,890,574 | ) | (22,368,057 | ) | |||||||||||
(20,288,646 | ) | (23,329,001 | ) | (123,808,332 | ) | (129,890,525 | ) | (69,325,032 | ) | (14,476,181 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(24,986,795 | ) | (33,458,838 | ) | (138,698,934 | ) | (151,564,098 | ) | (112,215,606 | ) | (36,844,238 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
30,184,161 | (91,946,307 | ) | 102,631,745 | (424,937,131 | ) | 82,600,671 | (276,256,117 | ) | ||||||||||||||
507,407,513 | 599,353,820 | 2,039,934,523 | 2,464,871,654 | 1,452,084,618 | 1,728,340,735 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 537,591,674 | $ | 507,407,513 | $ | 2,142,566,268 | $ | 2,039,934,523 | $ | 1,534,685,289 | $ | 1,452,084,618 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
23
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Changes in Net Assets
MML Aggressive Allocation Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
Increase (Decrease) in Net Assets: |
| |||||||
Operations: |
| |||||||
Net investment income (loss) | $ | 156,450 | $ | 1,491,704 | ||||
Net realized gain (loss) | 663,807 | 14,143,351 | ||||||
Net change in unrealized appreciation (depreciation) | 20,345,332 | (28,171,514 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 21,165,589 | (12,536,459 | ) | |||||
|
|
|
| |||||
Distributions to shareholders (Note 2): |
| |||||||
Initial Class | - | (4,023,507 | ) | |||||
Service Class | - | (5,643,220 | ) | |||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Total distributions | - | (9,666,727 | ) | |||||
|
|
|
| |||||
Net fund share transactions (Note 5): |
| |||||||
Initial Class | 230,483 | (1,349,671 | ) | |||||
Service Class | (5,480,219 | ) | 6,197,083 | |||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Increase (decrease) in net assets from fund share transactions | (5,249,736 | ) | 4,847,412 | |||||
|
|
|
| |||||
Total increase (decrease) in net assets | 15,915,853 | (17,355,774 | ) | |||||
Net assets |
| |||||||
Beginning of period | 139,407,338 | 156,763,112 | ||||||
|
|
|
| |||||
End of period | $ | 155,323,191 | $ | 139,407,338 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
24
Table of Contents
MML American Funds Growth Fund | MML American Funds International Fund | MML American Funds Core Allocation Fund | ||||||||||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||||||||||||
$ | (159,460 | ) | $ | 11,374 | $ | (105,651 | ) | $ | 781,870 | $ | 747,332 | $ | 15,009,554 | |||||||||
21,279,522 | 24,089,387 | 2,305,229 | 3,966,820 | 50,365,817 | 77,288,807 | |||||||||||||||||
5,407,545 | (24,719,323 | ) | 5,976,801 | (13,493,195 | ) | 52,630,811 | (140,549,710 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
26,527,607 | (618,562 | ) | 8,176,379 | (8,744,505 | ) | 103,743,960 | (48,251,349 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
- | - | - | - | - | - | |||||||||||||||||
- | - | - | - | - | - | |||||||||||||||||
- | (20,518,506 | ) | - | (2,601,370 | ) | - | (91,047,579 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
- | (20,518,506 | ) | - | (2,601,370 | ) | - | (91,047,579 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
- | - | - | - | - | - | |||||||||||||||||
- | - | - | - | - | - | |||||||||||||||||
(4,040,422 | ) | 11,600,753 | (2,415,555 | ) | 1,126,970 | (60,347,734 | ) | 1,076,141 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(4,040,422 | ) | 11,600,753 | (2,415,555 | ) | 1,126,970 | (60,347,734 | ) | 1,076,141 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
22,487,185 | (9,536,315 | ) | 5,760,824 | (10,218,905 | ) | 43,396,226 | (138,222,787 | ) | ||||||||||||||
162,359,884 | 171,896,199 | 56,712,247 | 66,931,152 | 956,051,043 | 1,094,273,830 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 184,847,069 | $ | 162,359,884 | $ | 62,473,071 | $ | 56,712,247 | $ | 999,447,269 | $ | 956,051,043 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
25
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Conservative Allocation Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assetsw | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.23 | $ | 0.06 | $ | 0.88 | $ | 0.94 | $ | - | $ | - | $ | - | $ | 10.17 | 10.18% | b | $ | 93,709 | 0.13% | a | 1.25% | a | ||||||||||||||||||||||||
12/31/18 | 10.01 | 0.22 | (0.55 | ) | (0.33 | ) | (0.25 | ) | (0.20 | ) | (0.45 | ) | 9.23 | (3.50% | ) | 90,797 | 0.12% | 2.22% | ||||||||||||||||||||||||||||||
12/31/17 | 9.63 | 0.22 | 0.70 | 0.92 | (0.23 | ) | (0.31 | ) | (0.54 | ) | 10.01 | 9.62% | 107,294 | 0.12% | 2.23% | |||||||||||||||||||||||||||||||||
12/31/16 | 9.83 | 0.20 | 0.37 | 0.57 | (0.24 | ) | (0.53 | ) | (0.77 | ) | 9.63 | 5.78% | 112,989 | 0.12% | 2.01% | |||||||||||||||||||||||||||||||||
12/31/15 | 10.94 | 0.21 | (0.25 | ) | (0.04 | ) | (0.32 | ) | (0.75 | ) | (1.07 | ) | 9.83 | (0.38% | ) | 117,636 | 0.12% | 1.96% | ||||||||||||||||||||||||||||||
12/31/14 | 11.40 | 0.25 | 0.33 | 0.58 | (0.29 | ) | (0.75 | ) | (1.04 | ) | 10.94 | 5.13% | 131,214 | 0.13% | 2.22% | |||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.13 | $ | 0.05 | $ | 0.87 | $ | 0.92 | $ | - | $ | - | $ | - | $ | 10.05 | 10.08% | b | $ | 319,650 | 0.38% | a | 1.01% | a | ||||||||||||||||||||||||
12/31/18 | 9.90 | 0.19 | (0.53 | ) | (0.34 | ) | (0.23 | ) | (0.20 | ) | (0.43 | ) | 9.13 | (3.70% | ) | 306,230 | 0.37% | 1.94% | ||||||||||||||||||||||||||||||
12/31/17 | 9.53 | 0.20 | 0.68 | 0.88 | (0.20 | ) | (0.31 | ) | (0.51 | ) | 9.90 | 9.33% | 368,843 | 0.37% | 2.00% | |||||||||||||||||||||||||||||||||
12/31/16 | 9.74 | 0.18 | 0.35 | 0.53 | (0.21 | ) | (0.53 | ) | (0.74 | ) | 9.53 | 5.48% | 364,364 | 0.37% | 1.80% | |||||||||||||||||||||||||||||||||
12/31/15 | 10.85 | 0.19 | (0.26 | ) | (0.07 | ) | (0.29 | ) | (0.75 | ) | (1.04 | ) | 9.74 | (0.63% | ) | 338,677 | 0.37% | 1.76% | ||||||||||||||||||||||||||||||
12/31/14 | 11.32 | 0.23 | 0.31 | 0.54 | (0.26 | ) | (0.75 | ) | (1.01 | ) | 10.85 | 4.83% | 342,234 | 0.38% | 2.01% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover ratex | 20 | % | 18 | % | 14 | % | 24 | % | 29 | % | 33 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
w | Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund. |
x | Amount does not include the portfolio activity of any underlying fund. |
The accompanying notes are an integral part of the financial statements.
26
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Balanced Allocation Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assetsw | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.12 | $ | 0.05 | $ | 0.97 | $ | 1.02 | $ | - | $ | - | $ | - | $ | 10.14 | 11.18% | b | $ | 124,253 | 0.13% | a | 1.09% | a | ||||||||||||||||||||||||
12/31/18 | 10.16 | 0.20 | (0.61 | ) | (0.41 | ) | (0.24 | ) | (0.39 | ) | (0.63 | ) | 9.12 | (4.47% | ) | 116,177 | 0.12% | 2.00% | ||||||||||||||||||||||||||||||
12/31/17 | 9.70 | 0.21 | 0.88 | 1.09 | (0.20 | ) | (0.43 | ) | (0.63 | ) | 10.16 | 11.48% | 139,773 | 0.12% | 2.06% | |||||||||||||||||||||||||||||||||
12/31/16 | 10.05 | 0.18 | 0.43 | 0.61 | (0.24 | ) | (0.72 | ) | (0.96 | ) | 9.70 | 6.15% | 134,716 | 0.12% | 1.84% | |||||||||||||||||||||||||||||||||
12/31/15 | 11.23 | 0.19 | (0.23 | ) | (0.04 | ) | (0.31 | ) | (0.83 | ) | (1.14 | ) | 10.05 | (0.36% | ) | 144,084 | 0.12% | 1.77% | ||||||||||||||||||||||||||||||
12/31/14 | 11.58 | 0.24 | 0.38 | 0.62 | (0.25 | ) | (0.72 | ) | (0.97 | ) | 11.23 | 5.35% | 167,530 | 0.12% | 2.05% | |||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.03 | $ | 0.04 | $ | 0.96 | $ | 1.00 | $ | - | $ | - | $ | - | $ | 10.03 | 11.07% | b | $ | 413,339 | 0.38% | a | 0.84% | a | ||||||||||||||||||||||||
12/31/18 | 10.07 | 0.17 | (0.61 | ) | (0.44 | ) | (0.21 | ) | (0.39 | ) | (0.60 | ) | 9.03 | (4.76% | ) | 391,230 | 0.37% | 1.76% | ||||||||||||||||||||||||||||||
12/31/17 | 9.62 | 0.18 | 0.88 | 1.06 | (0.18 | ) | (0.43 | ) | (0.61 | ) | 10.07 | 11.21% | 459,581 | 0.37% | 1.82% | |||||||||||||||||||||||||||||||||
12/31/16 | 9.98 | 0.16 | 0.42 | 0.58 | (0.22 | ) | (0.72 | ) | (0.94 | ) | 9.62 | 5.82% | 438,996 | 0.37% | 1.62% | |||||||||||||||||||||||||||||||||
12/31/15 | 11.16 | 0.17 | (0.23 | ) | (0.06 | ) | (0.29 | ) | (0.83 | ) | (1.12 | ) | 9.98 | (0.61% | ) | 427,682 | 0.37% | 1.56% | ||||||||||||||||||||||||||||||
12/31/14 | 11.52 | 0.21 | 0.37 | 0.58 | (0.22 | ) | (0.72 | ) | (0.94 | ) | 11.16 | 5.07% | 430,872 | 0.37% | 1.81% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover ratex | 20 | % | 17 | % | 15 | % | 18 | % | 26 | % | 23 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
w | Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund. |
x | Amount does not include the portfolio activity of any underlying fund. |
The accompanying notes are an integral part of the financial statements.
27
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Moderate Allocation Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assetsw | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.71 | $ | 0.05 | $ | 1.14 | $ | 1.19 | $ | - | $ | - | $ | - | $ | 10.90 | 12.26% | b | $ | 376,854 | 0.12% | a | 0.92% | a | ||||||||||||||||||||||||
12/31/18 | 11.00 | 0.19 | (0.73 | ) | (0.54 | ) | (0.24 | ) | (0.51 | ) | (0.75 | ) | 9.71 | (5.48% | ) | 349,719 | 0.11% | 1.79% | ||||||||||||||||||||||||||||||
12/31/17 | 10.38 | 0.20 | 1.15 | 1.35 | (0.20 | ) | (0.53 | ) | (0.73 | ) | 11.00 | 13.33% | 417,670 | 0.11% | 1.84% | |||||||||||||||||||||||||||||||||
12/31/16 | 10.66 | 0.18 | 0.54 | 0.72 | (0.23 | ) | (0.77 | ) | (1.00 | ) | 10.38 | 6.89% | 411,730 | 0.11% | 1.69% | |||||||||||||||||||||||||||||||||
12/31/15 | 11.83 | 0.18 | (0.26 | ) | (0.08 | ) | (0.28 | ) | (0.81 | ) | (1.09 | ) | 10.66 | (0.64% | ) | 416,556 | 0.11% | 1.59% | ||||||||||||||||||||||||||||||
12/31/14 | 12.10 | 0.21 | 0.47 | 0.68 | (0.21 | ) | (0.74 | ) | (0.95 | ) | 11.83 | 5.61% | 465,943 | 0.11% | 1.76% | |||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.60 | $ | 0.03 | $ | 1.13 | $ | 1.16 | $ | - | $ | - | $ | - | $ | 10.76 | 12.08% | b | $ | 1,765,712 | 0.37% | a | 0.66% | a | ||||||||||||||||||||||||
12/31/18 | 10.88 | 0.16 | (0.72 | ) | (0.56 | ) | (0.21 | ) | (0.51 | ) | (0.72 | ) | 9.60 | (5.70% | ) | 1,690,215 | 0.36% | 1.54% | ||||||||||||||||||||||||||||||
12/31/17 | 10.28 | 0.17 | 1.14 | 1.31 | (0.18 | ) | (0.53 | ) | (0.71 | ) | 10.88 | 12.99% | 2,047,202 | 0.36% | 1.60% | |||||||||||||||||||||||||||||||||
12/31/16 | 10.57 | 0.15 | 0.53 | 0.68 | (0.20 | ) | (0.77 | ) | (0.97 | ) | 10.28 | 6.59% | 1,968,981 | 0.36% | 1.45% | |||||||||||||||||||||||||||||||||
12/31/15 | 11.74 | 0.16 | (0.26 | ) | (0.10 | ) | (0.26 | ) | (0.81 | ) | (1.07 | ) | 10.57 | (0.86% | ) | 1,922,174 | 0.36% | 1.38% | ||||||||||||||||||||||||||||||
12/31/14 | 12.02 | 0.19 | 0.46 | 0.65 | (0.19 | ) | (0.74 | ) | (0.93 | ) | 11.74 | 5.37% | 1,790,903 | 0.36% | 1.55% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover ratex | 17 | % | 15 | % | 13 | % | 14 | % | 19 | % | 19 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
w | Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund. |
x | Amount does not include the portfolio activity of any underlying fund. |
The accompanying notes are an integral part of the financial statements.
28
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Growth Allocation Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assetsw | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 8.35 | $ | 0.03 | $ | 1.13 | $ | 1.16 | $ | - | $ | - | $ | - | $ | 9.51 | 13.89% | b | $ | 566,328 | 0.12% | a | 0.64% | a | ||||||||||||||||||||||||
12/31/18 | 9.75 | 0.14 | (0.73 | ) | (0.59 | ) | (0.18 | ) | (0.63 | ) | (0.81 | ) | 8.35 | (6.90% | ) | 536,767 | 0.11% | 1.47% | ||||||||||||||||||||||||||||||
12/31/17 | 9.16 | 0.15 | 1.28 | 1.43 | (0.15 | ) | (0.69 | ) | (0.84 | ) | 9.75 | 16.07% | 647,613 | 0.11% | 1.53% | |||||||||||||||||||||||||||||||||
12/31/16 | 9.69 | 0.13 | 0.58 | 0.71 | (0.19 | ) | (1.05 | ) | (1.24 | ) | 9.16 | 7.57% | 607,088 | 0.11% | 1.38% | |||||||||||||||||||||||||||||||||
12/31/15 | 11.28 | 0.13 | (0.21 | ) | (0.08 | ) | (0.28 | ) | (1.23 | ) | (1.51 | ) | 9.69 | (0.71% | ) | 605,993 | 0.11% | 1.22% | ||||||||||||||||||||||||||||||
12/31/14 | 11.80 | 0.16 | 0.52 | 0.68 | (0.19 | ) | (1.01 | ) | (1.20 | ) | 11.28 | 5.77% | 660,986 | 0.11% | 1.39% | |||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 8.28 | $ | 0.02 | $ | 1.11 | $ | 1.13 | $ | - | $ | - | $ | - | $ | 9.41 | 13.65% | b | $ | 968,358 | 0.37% | a | 0.39% | a | ||||||||||||||||||||||||
12/31/18 | 9.67 | 0.12 | (0.73 | ) | (0.61 | ) | (0.15 | ) | (0.63 | ) | (0.78 | ) | 8.28 | (7.10% | ) | 915,318 | 0.36% | 1.22% | ||||||||||||||||||||||||||||||
12/31/17 | 9.09 | 0.12 | 1.28 | 1.40 | (0.13 | ) | (0.69 | ) | (0.82 | ) | 9.67 | 15.81% | 1,080,728 | 0.36% | 1.27% | |||||||||||||||||||||||||||||||||
12/31/16 | 9.63 | 0.11 | 0.56 | 0.67 | (0.16 | ) | (1.05 | ) | (1.21 | ) | 9.09 | 7.23% | 1,001,718 | 0.36% | 1.13% | |||||||||||||||||||||||||||||||||
12/31/15 | 11.22 | 0.11 | (0.22 | ) | (0.11 | ) | (0.25 | ) | (1.23 | ) | (1.48 | ) | 9.63 | (0.97% | ) | 1,003,111 | 0.36% | 0.98% | ||||||||||||||||||||||||||||||
12/31/14 | 11.74 | 0.13 | 0.52 | 0.65 | (0.16 | ) | (1.01 | ) | (1.17 | ) | 11.22 | 5.56% | 1,034,580 | 0.36% | 1.14% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover ratex | 19 | % | 17 | % | 16 | % | 17 | % | 22 | % | 25 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
w | Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund. |
x | Amount does not include the portfolio activity of any underlying fund. |
The accompanying notes are an integral part of the financial statements.
29
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Aggressive Allocation Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assetsw | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.20 | $ | 0.02 | $ | 1.40 | $ | 1.42 | $ | - | $ | - | $ | - | $ | 10.62 | 15.43% | b | $ | 65,137 | 0.16% | a | 0.37% | a | ||||||||||||||||||||||||
12/31/18 | 10.68 | 0.12 | (0.90 | ) | (0.78 | ) | (0.15 | ) | (0.55 | ) | (0.70 | ) | 9.20 | (8.12% | ) | 56,195 | 0.15% | 1.10% | ||||||||||||||||||||||||||||||
12/31/17 | 9.67 | 0.12 | 1.65 | 1.77 | (0.12 | ) | (0.64 | ) | (0.76 | ) | 10.68 | 18.77% | 66,517 | 0.15% | 1.17% | |||||||||||||||||||||||||||||||||
12/31/16 | 10.10 | 0.11 | 0.72 | 0.83 | (0.16 | ) | (1.10 | ) | (1.26 | ) | 9.67 | 8.54% | 58,438 | 0.15% | 1.09% | |||||||||||||||||||||||||||||||||
12/31/15 | 11.86 | 0.10 | (0.20 | ) | (0.10 | ) | (0.25 | ) | (1.41 | ) | (1.66 | ) | 10.10 | (0.84% | ) | 55,420 | 0.16% | 0.92% | ||||||||||||||||||||||||||||||
12/31/14 | 12.38 | 0.12 | 0.60 | 0.72 | (0.14 | ) | (1.10 | ) | (1.24 | ) | 11.86 | 5.85% | 57,996 | 0.17% | 0.98% | |||||||||||||||||||||||||||||||||
Service Class | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.06 | $ | 0.01 | $ | 1.38 | $ | 1.39 | $ | - | $ | - | $ | - | $ | 10.45 | 15.34% | b | $ | 90,186 | 0.41% | a | 0.10% | a | ||||||||||||||||||||||||
12/31/18 | 10.54 | 0.09 | (0.90 | ) | (0.81 | ) | (0.12 | ) | (0.55 | ) | (0.67 | ) | 9.06 | (8.44% | ) | 83,212 | 0.40% | 0.87% | ||||||||||||||||||||||||||||||
12/31/17 | 9.56 | 0.10 | 1.62 | 1.72 | (0.10 | ) | (0.64 | ) | (0.74 | ) | 10.54 | 18.44% | 90,246 | 0.40% | 0.95% | |||||||||||||||||||||||||||||||||
12/31/16 | 10.00 | 0.08 | 0.72 | 0.80 | (0.14 | ) | (1.10 | ) | (1.24 | ) | 9.56 | 8.28% | 73,617 | 0.40% | 0.84% | |||||||||||||||||||||||||||||||||
12/31/15 | 11.76 | 0.08 | (0.21 | ) | (0.13 | ) | (0.22 | ) | (1.41 | ) | (1.63 | ) | 10.00 | (1.07% | ) | 67,973 | 0.41% | 0.69% | ||||||||||||||||||||||||||||||
12/31/14 | 12.29 | 0.09 | 0.59 | 0.68 | (0.11 | ) | (1.10 | ) | (1.21 | ) | 11.76 | 5.61% | 62,711 | 0.42% | 0.77% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover ratex | 22 | % | 19 | % | 20 | % | 19 | % | 22 | % | 31 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
w | Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund. |
x | Amount does not include the portfolio activity of any underlying fund. |
The accompanying notes are an integral part of the financial statements.
30
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML American Funds Growth Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waiversu | Ratio of expenses to average daily net assets after expense waiversu,j | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 12.70 | $ | (0.01 | ) | $ | 2.10 | $ | 2.09 | $ | - | $ | - | $ | - | $ | 14.79 | 16.37% | b | $ | 184,847 | 0.69% | a | 0.69% | l,a | (0.18% | )a | |||||||||||||||||||||||||
12/31/18 | 14.37 | 0.00 | d | 0.15 | 0.15 | (0.04 | ) | (1.78 | ) | (1.82 | ) | 12.70 | (0.73% | ) | 162,360 | 0.69% | 0.69% | l | 0.01% | |||||||||||||||||||||||||||||||||
12/31/17 | 12.37 | 0.01 | 3.31 | 3.32 | (0.04 | ) | (1.28 | ) | (1.32 | ) | 14.37 | 27.78% | 171,896 | 0.68% | 0.68% | l | 0.07% | |||||||||||||||||||||||||||||||||||
12/31/16 | 14.53 | 0.05 | 1.16 | 1.21 | (0.03 | ) | (3.34 | ) | (3.37 | ) | 12.37 | 9.00% | 139,841 | 0.69% | 0.69% | l | 0.37% | |||||||||||||||||||||||||||||||||||
12/31/15 | 14.67 | 0.03 | 0.84 | 0.87 | (0.10 | ) | (0.91 | ) | (1.01 | ) | 14.53 | 6.41% | 127,667 | 0.69% | 0.69%l | 0.22% | ||||||||||||||||||||||||||||||||||||
12/31/14 | 14.14 | 0.12 | 1.00 | 1.12 | (0.06 | ) | (0.53 | ) | (0.59 | ) | 14.67 | 7.99% | 111,927 | 0.70% | 0.70% | l | 0.83% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover ratex | 5 | % | 12 | % | 11 | % | 8 | % | 7 | % | 4 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
d | Amount is less than $0.005 per share. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
l | Expenses incurred during the period fell under the expense cap. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
u | Expenses of the Master Fund are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of the Master Fund. |
x | Amount does not include the portfolio activity of the Master Fund. |
The accompanying notes are an integral part of the financial statements.
31
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML American Funds International Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waiversu | Ratio of expenses to average daily net assets after expense waiversu,j | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.07 | $ | (0.02 | ) | $ | 1.33 | $ | 1.31 | $ | - | $ | - | $ | - | $ | 10.38 | 14.44% | b | $ | 62,473 | 0.74% | a | 0.71% | a | (0.35% | )a | |||||||||||||||||||||||||
12/31/18 | 10.93 | 0.13 | (1.55 | ) | (1.42 | ) | (0.09 | ) | (0.35 | ) | (0.44 | ) | 9.07 | (13.52% | ) | 56,712 | 0.73% | 0.70% | 1.24% | |||||||||||||||||||||||||||||||||
12/31/17 | 9.12 | 0.08 | 2.73 | 2.81 | (0.09 | ) | (0.91 | ) | (1.00 | ) | 10.93 | 31.65% | 66,931 | 0.72% | 0.70% | 0.80% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 9.63 | 0.09 | 0.21 | 0.30 | (0.11 | ) | (0.70 | ) | (0.81 | ) | 9.12 | 2.97% | 53,972 | 0.72% | 0.70% | 0.94% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 10.48 | 0.12 | (0.63 | ) | (0.51 | ) | (0.10 | ) | (0.24 | ) | (0.34 | ) | 9.63 | (4.93% | ) | 55,589 | 0.72% | 0.70% | 1.14% | |||||||||||||||||||||||||||||||||
12/31/14 | 11.27 | 0.11 | (0.43 | ) | (0.32 | ) | (0.10 | ) | (0.37 | ) | (0.47 | ) | 10.48 | (3.09% | ) | 51,341 | 0.73% | 0.70% | 1.02% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover ratex | 4 | % | 11 | % | 9 | % | 12 | % | 4 | % | 6 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
u | Expenses of the Master Fund are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of the Master Fund. |
x | Amount does not include the portfolio activity of the Master Fund. |
The accompanying notes are an integral part of the financial statements.
32
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML American Funds Core Allocation Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assetsw | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 10.98 | $ | 0.01 | $ | 1.20 | $ | 1.21 | $ | - | $ | - | $ | - | $ | 12.19 | 11.02% | b | $ | 999,447 | 0.71% | a | 0.15% | a | ||||||||||||||||||||||||
12/31/18 | 12.60 | 0.17 | (0.69 | ) | (0.52 | ) | (0.22 | ) | (0.88 | ) | (1.10 | ) | 10.98 | (4.84% | ) | 956,051 | 0.71% | 1.41% | ||||||||||||||||||||||||||||||
12/31/17 | 11.94 | 0.16 | 1.56 | 1.72 | (0.18 | ) | (0.88 | ) | (1.06 | ) | 12.60 | 14.94% | 1,094,274 | 0.71% | 1.25% | |||||||||||||||||||||||||||||||||
12/31/16 | 12.08 | 0.16 | 0.92 | 1.08 | (0.24 | ) | (0.98 | ) | (1.22 | ) | 11.94 | 8.97% | 941,450 | 0.71% | 1.29% | |||||||||||||||||||||||||||||||||
12/31/15 | 12.72 | 0.16 | (0.31 | ) | (0.15 | ) | (0.17 | ) | (0.32 | ) | (0.49 | ) | 12.08 | (1.12% | ) | 813,103 | 0.71% | 1.28% | ||||||||||||||||||||||||||||||
12/31/14 | 12.28 | 0.21 | 0.78 | 0.99 | (0.13 | ) | (0.42 | ) | (0.55 | ) | 12.72 | 8.05% | 696,608 | 0.72% | 1.71% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover ratex | 11 | % | 15 | % | 16 | % | 7 | % | 3 | % | 3 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
w | Expenses of the underlying funds are not included in the Fund’s expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying fund. |
x | Amount does not include the portfolio activity of any underlying fund. |
The accompanying notes are an integral part of the financial statements.
33
Table of Contents
1. | The Funds |
MML Series Investment Fund (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized under the laws of the Commonwealth of Massachusetts as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated December 19, 1984, as restated May 14, 1993, and further amended and restated as of December 15, 2011, as it may be further amended from time to time. The following are eight series of the Trust (each individually referred to as a “Fund” or collectively as the “Funds”):
MML Conservative Allocation Fund (“Conservative Allocation Fund”)
MML Balanced Allocation Fund (“Balanced Allocation Fund”)
MML Moderate Allocation Fund (“Moderate Allocation Fund”)
MML Growth Allocation Fund (“Growth Allocation Fund”)
MML Aggressive Allocation Fund (“Aggressive Allocation Fund”)
MML American Funds Growth Fund (“MML American Funds Growth Fund”)
MML American Funds International Fund (“MML American Funds International Fund”)
MML American Funds Core Allocation Fund (“MML American Funds Core Allocation Fund”)
The Trust makes shares of the Funds available for the investment of assets of various separate investment accounts established by Massachusetts Mutual Life Insurance Company (“MassMutual”) and by life insurance companies which are subsidiaries of MassMutual. Shares of the Trust are not offered to the general public. MassMutual, MML Bay State Life Insurance Company, and C.M. Life Insurance Company are the record owners of all of the outstanding shares of the Funds.
Each share class of a Fund represents an interest in the same portfolio of assets. The principal difference among the classes is the level of service and administration fees, and shareholder and distribution service expenses borne by the classes. Because each class will have different fees and expenses, performance and share prices will vary between the classes. The classes of shares are offered to different types of investors, as outlined in the Funds’ Prospectus.
The Conservative Allocation Fund, Balanced Allocation Fund, Moderate Allocation Fund, Growth Allocation Fund, and Aggressive Allocation Fund (the “Allocation Funds”) invest their investable assets in shares of series of the Trust and MML Series Investment Fund II (advised by MML Investment Advisers, LLC (“MML Advisers”), a wholly-owned subsidiary of MassMutual), andnon-affiliated mutual funds (together, the “MML Underlying Funds”). The financial statements included herein are those of the Funds. The financial statements of the applicable MML Underlying Funds are presented separately and can be obtained from the Securities and Exchange Commission’s (“SEC”) EDGAR database on its website at http://www.sec.gov or by calling MML Advisers at1-888-309-3539.
MML American Funds Growth Fund and MML American Funds International Fund (each a “Feeder Fund,” collectively the “Feeder Funds”) invest all of their assets in Class 1 shares of the Growth and International Funds, respectively, each a series of the American Funds Insurance Series (each a “Master Fund,” collectively the “Master Funds”). Each Master Fund is anopen-end investment company and organized as a Massachusetts business trust. Each Feeder Fund has an investment objective that is consistent with its corresponding Master Fund. Each Master Fund intends to comply with the requirements under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to mutual funds and intends to distribute substantially all of its taxable income and capital gains to shareholders, which includes the applicable Feeder Fund, to qualify as a regulated investment company. The performance of the Feeder Funds is directly affected by the performance of the Master Funds. The financial statements of the Master Funds, including the Summary Investment Portfolios, are provided separately and should be read in conjunction with the Feeder Funds’ financial statements. As of June 30, 2019, the MML American Funds Growth Fund and MML American Funds International Fund owned 70% and 64% of the Growth and International Master Funds, respectively. The MML American Funds Core Allocation Fund invests all of its investable assets in shares of various series of American Funds Insurance Series, which are managed by Capital Research and Management Company (together, the “American Underlying Funds” and collectively with the MML Underlying Funds, the “Underlying Funds”).
The SEC file number for the American Funds Insurance Series is811-03857. Additional information related to the Master Funds’ and American Underlying Funds’ financial reports can be located on the SEC’s EDGAR database on its website at http://www.sec.gov.
34
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed consistently by each Fund in the preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.
Investment Valuation
The net asset value of each Fund’s shares is determined once daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), on each day the NYSE is open for trading (a “business day”). The NYSE normally closes at 4:00 p.m. Eastern Time, but may close earlier on some days. If the NYSE is scheduled to close early, the business day will be considered to end as of the time of the NYSE’s scheduled close. A Fund will not treat an intraday disruption in NYSE trading or other event that causes an unscheduled closing of the NYSE as a close of business of the NYSE for these purposes and will instead fair value securities in accordance with procedures approved annually by the Board of Trustees (“Trustees”), and under the general oversight of the Trustees. On holidays and other days when the NYSE is closed, each Fund’s net asset value generally is not calculated and the Funds do not anticipate accepting buy or sell orders. However, the value of each Fund’s assets may still be affected on such days to the extent that an Underlying Fund or Master Fund holds foreign securities that trade on days that foreign securities markets are open.
The net asset value of each Fund is based upon the net asset value(s) of its corresponding Master Fund or Underlying Funds. Shares of the Master Fund and Underlying Funds are valued at their closing net asset values as reported on each business day.
Certain Underlying Funds or Master Funds may invest in securities that are traded principally in foreign markets and that trade on weekends and other days when the Funds do not price their shares. As a result, the values of the Funds’ portfolio securities may change on days when the prices of the Funds’ shares are not calculated. The prices of the Funds’ shares will reflect any such changes when the prices of the Funds’ shares are next calculated, which is the next business day.
The Prospectuses and Statements of Additional Information (“SAIs”) for the Underlying Funds and Master Funds, as applicable, explain the valuation methods for the Underlying Funds and Master Funds, including the circumstances under which the Underlying Funds or Master Funds, may use fair value pricing and the effects of doing so. Such Prospectuses and SAIs are available on the SEC’s EDGAR database on its website at http://www.sec.gov.
Various inputs may be used to determine the value of the Funds’ investments. The Funds categorize the inputs to valuation techniques used to value their investments into a disclosure hierarchy consisting of three levels as summarized below. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.
Level 1 – quoted prices (unadjusted) in active markets for identical investments that the Funds can access at the measurement date
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 – significant unobservable inputs, to the extent observable inputs are not available (including the Funds’ own assumptions in determining the fair value of investments)
Each Fund characterized all investments at Level 1, as of June 30, 2019. For each Fund, the level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.
The Funds had no Level 3 transfers during the period ended June 30, 2019.
35
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Accounting for Investment Transactions
Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investments and unrealized appreciation and depreciation of investments are computed by the specific identification cost method. Proceeds received from litigation, if any, are included in realized gains on investment transactions for any investments that are no longer held in the portfolio and as a reduction in cost for investments that continue to be held in the portfolio. Interest income, adjusted for amortization of discounts and premiums on debt securities, is earned from the settlement date and is recorded on the accrual basis. Dividend income and distributions including realized gain distributions are recorded on theex-dividend date. Withholding taxes on foreign interest, dividends, and capital gains have been provided for in accordance with the applicable country’s tax rules and rates. Foreign dividend income is recorded on theex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. Distributions received on securities that represent a return of capital or capital gains are recorded as a reduction of cost of investments and/or as a realized gain. The Funds determine the classification of distributions received as return of capital distributions or capital gain distributions.
Allocation of Operating Activity
In maintaining the records for the Funds, the income and expense accounts are allocated daily to each class of shares. Investment income and loss, and unrealized and realized gains or losses are prorated among the classes of shares based on the relative net assets of each. Expenses are allocated to each class of shares depending on the nature of the expenditures. Administration and service fees, if any, which are directly attributable to a class of shares, are charged to that class’s operations. Expenses of a Fund not directly attributable to the operations of any specific class of shares of the Fund are prorated among the classes to which the expense relates based on relative net assets.
In addition, each Fund will also incur certain fees and expenses indirectly as a shareholder in the Underlying Funds or Master Funds. Because the Underlying Funds have varied expense and fee levels, and the Allocation Funds and MML American Funds Core Allocation Fund may own different proportions of Underlying Funds at different times, the amount of fees and expenses indirectly incurred by each of the Allocation Funds and MML American Funds Core Allocation Fund will vary.
Foreign Securities
Certain Underlying Funds or Master Funds may invest in foreign securities. Foreign securities, including American Depositary Receipts, are subject to additional risks compared to securities of U.S. issuers, including international trade, currency, political, regulatory, and diplomatic risks. In addition, fluctuations in currency exchange rates may adversely affect the values of foreign securities and the price of a Fund’s shares. Emerging markets securities are subject to greater risks than securities issued in developed foreign markets, including less liquidity, greater price volatility, higher relative rates of inflation, greater political, economic, and social instability, greater custody and operational risks, and greater volatility in currency exchange rates.
Federal Income Tax
It is each Fund’s intent to continue to comply with the provisions of Subchapter M of the Code, applicable to a regulated investment company. Under such provisions, the Funds would not be subject to federal income taxes on their ordinary income and net realized capital gains to the extent they are distributed or deemed to have been distributed to their shareholders. Therefore, the Funds have not made any provision for federal income tax.
Dividends and Distributions to Shareholders
Dividends from net investment income and distributions of any net realized capital gains of each Fund are declared and paid annually and at other times as may be required to satisfy tax or regulatory requirements.
Distributions to shareholders are recorded on theex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. As a result, net investment income and net realized capital gains on investment transactions for a reporting period may differ significantly from distributions during such period.
36
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
3. | Advisory Fees and Other Transactions |
Investment Advisory Fees
MML Advisers, a wholly-owned subsidiary of MassMutual, serves as investment adviser to each Fund. Under the investment advisory agreements between MML Advisers and the Trust on behalf of each Fund, MML Advisers is responsible for providing investment management services for each Fund. In return for these services, MML Advisers receives advisory fees, based upon each Fund’s average daily net assets, computed and accrued daily and payable monthly, at the following annual rates:
Fund | Investment Advisory Fee | |
Conservative Allocation Fund | 0.10% | |
Balanced Allocation Fund | 0.10% | |
Moderate Allocation Fund | 0.10% | |
Growth Allocation Fund | 0.10% | |
Aggressive Allocation Fund | 0.10% | |
MML American Funds Growth Fund | 0.15% on the first $500 million; and | |
0.125% on any excess over $500 million | ||
MML American Funds International Fund | 0.15% on the first $500 million; and | |
0.125% on any excess over $500 million | ||
MML American Funds Core Allocation Fund | 0.20% on the first $750 million; and | |
0.175% on any excess over $750 million |
Administration Fees
For the MML American Funds Growth Fund, MML American Funds International Fund, and MML American Funds Core Allocation Fund, under a separate Administrative and Shareholder Services Agreement between the Trust and MML Advisers, on behalf of each Fund, MML Advisers is obligated to provide administrative and shareholder services and bear some of the Fund specific administrative expenses. In return for these services, MML Advisers receives an administrative services fee based upon the average daily net assets of the applicable class of shares of the Funds, at the following annual rates:
Service Class I | ||||
MML American Funds Growth Fund | 0.25% | |||
MML American Funds International Fund | 0.25% | |||
MML American Funds Core Allocation Fund | 0.25% |
Distribution and Service Fees
MML Distributors, LLC (the “Distributor”) acts as distributor to the Funds. Pursuant to a Distribution and Services Plan adopted by the Funds pursuant to Rule 12b-1 under the 1940 Act, Service Class shares and Service Class I shares of the Funds pay an annual fee of 0.25% of the average daily net asset value of Service Class shares and Service Class I shares. This fee, or a portion thereof, is paid to: (i) the Distributor for services provided and expenses incurred by it in connection with the distribution of Service Class shares or Service Class I shares, as applicable, of each Fund; and/or (ii) MassMutual for services provided and expenses incurred by it for purposes of maintaining or providing personal services to Service Class and Service Class I shareholders. The Distributor is a wholly-owned subsidiary of MassMutual.
Expense Caps and Waivers
Prior to May 1, 2019, MML Advisers agreed to cap the fees and expenses of the Funds noted below (other than extraordinary litigation and legal expenses, Master Fund Fees and Expenses#, interest expense, short sale dividend and loan expense, or other
37
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
non-recurring or unusual expenses such as organizational expenses and shareholder meeting expenses, as applicable) based upon the average daily net assets of the applicable class of shares of the Funds, as follows:
Service Class I | ||||
MML American Funds Growth Fund | 0.70% | |||
MML American Funds International Fund | 0.70% |
# | Master Fund Fees and Expenses are expenses borne indirectly by a Fund through investments in other pooled investment vehicles. |
Expense caps and waiver amounts are reflected as a reduction of expenses on the Statements of Operations.
Deferred Compensation
Trustees of the Funds who are not officers or employees of MassMutual may elect to defer receipt of their annual fees in accordance with terms of aNon-Qualified Deferred Compensation Plan. Amounts deferred shall accrue interest or earnings and shall be recorded on the Funds’ books as other liabilities. Deferred compensation is included within Trustees’ fees and expenses in the Statements of Assets and Liabilities.
Other
Certain officers and trustees of the Funds may also be employees of MassMutual. The compensation of a trustee who is not an employee of MassMutual is borne by the Funds.
4. | Purchases and Sales of Investments |
Cost of purchases and proceeds from sales of investments in Underlying Funds or Master Funds (excluding short-term investments) for the period ended June 30, 2019, were as follows:
Purchases | Sales | |||||||||||||||
Long-Term U.S. Government Securities | Other Long-Term Securities | Long-Term U.S. Government Securities | Other Long-Term Securities | |||||||||||||
Conservative Allocation Fund | $ | - | $ | 82,055,446 | $ | - | $ | 100,799,042 | ||||||||
Balanced Allocation Fund | - | 105,458,132 | - | 124,691,583 | ||||||||||||
Moderate Allocation Fund | - | 363,424,056 | - | 481,607,598 | ||||||||||||
Growth Allocation Fund | - | 291,741,382 | - | 388,665,713 | ||||||||||||
Aggressive Allocation Fund | - | 32,551,903 | - | 36,266,099 | ||||||||||||
MML American Funds Growth Fund | - | 23,214,795 | - | 8,192,957 | ||||||||||||
MML American Funds International Fund | - | 2,431,974 | - | 3,410,211 | ||||||||||||
MML American Funds Core Allocation Fund | - | 113,206,327 | - | 124,715,952 |
38
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
5. | Capital Share Transactions |
Changes in shares outstanding for each Fund were as follows:
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Conservative Allocation Fund Initial Class | ||||||||||||||||
Sold | 505,092 | $ | 4,979,256 | 1,216,359 | $ | 12,019,373 | ||||||||||
Issued as reinvestment of dividends | - | - | 470,116 | 4,578,931 | ||||||||||||
Redeemed | (1,127,999 | ) | (11,069,226 | ) | (2,572,001 | ) | (25,275,989 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (622,907 | ) | $ | (6,089,970 | ) | (885,526 | ) | $ | (8,677,685 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Conservative Allocation Fund Service Class | ||||||||||||||||
Sold | 1,581,952 | $ | 15,211,324 | 3,680,576 | $ | 35,883,005 | ||||||||||
Issued as reinvestment of dividends | - | - | 1,506,078 | 14,533,651 | ||||||||||||
Redeemed | (3,308,350 | ) | (31,950,464 | ) | (8,898,513 | ) | (86,652,607 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,726,398 | ) | $ | (16,739,140 | ) | (3,711,859 | ) | $ | (36,235,951 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Balanced Allocation Fund Initial Class | ||||||||||||||||
Sold | 548,490 | $ | 5,419,771 | 622,909 | $ | 6,214,916 | ||||||||||
Issued as reinvestment of dividends | - | - | 820,560 | 8,016,875 | ||||||||||||
Redeemed | (1,036,021 | ) | (10,117,920 | ) | (2,461,785 | ) | (24,361,628 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (487,531 | ) | $ | (4,698,149 | ) | (1,018,316 | ) | $ | (10,129,837 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Balanced Allocation Fund Service Class | ||||||||||||||||
Sold | 1,869,417 | $ | 18,178,119 | 3,628,825 | $ | 35,792,065 | ||||||||||
Issued as reinvestment of dividends | - | - | 2,655,105 | 25,727,972 | ||||||||||||
Redeemed | (3,982,264 | ) | (38,466,765 | ) | (8,622,192 | ) | (84,849,038 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (2,112,847 | ) | $ | (20,288,646 | ) | (2,338,262 | ) | $ | (23,329,001 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Moderate Allocation Fund Initial Class | ||||||||||||||||
Sold | 787,608 | $ | 8,267,419 | 965,226 | $ | 10,462,004 | ||||||||||
Issued as reinvestment of dividends | - | - | 2,489,733 | 26,266,683 | ||||||||||||
Redeemed | (2,220,140 | ) | (23,158,021 | ) | (5,423,874 | ) | (58,402,260 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,432,532 | ) | $ | (14,890,602 | ) | (1,968,915 | ) | $ | (21,673,573 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Moderate Allocation Fund Service Class | ||||||||||||||||
Sold | 1,548,028 | $ | 16,066,391 | 5,179,339 | $ | 55,525,490 | ||||||||||
Issued as reinvestment of dividends | - | - | 11,941,676 | 124,671,100 | ||||||||||||
Redeemed | (13,512,897 | ) | (139,874,723 | ) | (29,262,401 | ) | (310,087,115 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (11,964,869 | ) | $ | (123,808,332 | ) | (12,141,386 | ) | $ | (129,890,525 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Growth Allocation Fund Initial Class | ||||||||||||||||
Sold | 685,803 | $ | 6,270,444 | 1,618,107 | $ | 15,066,584 | ||||||||||
Issued as reinvestment of dividends | - | - | 5,329,477 | 49,457,550 | ||||||||||||
Redeemed | (5,379,696 | ) | (49,161,018 | ) | (9,127,446 | ) | (86,892,191 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (4,693,893 | ) | $ | (42,890,574 | ) | (2,179,862 | ) | $ | (22,368,057 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Growth Allocation Fund Service Class | ||||||||||||||||
Sold | 747,134 | $ | 6,776,659 | 4,096,589 | $ | 38,454,566 | ||||||||||
Issued as reinvestment of dividends | - | - | 8,874,479 | 81,733,948 | ||||||||||||
Redeemed | (8,416,445 | ) | (76,101,691 | ) | (14,209,662 | ) | (134,664,695 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (7,669,311 | ) | $ | (69,325,032 | ) | (1,238,594 | ) | $ | (14,476,181 | ) | ||||||
|
|
|
|
|
|
|
|
39
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Aggressive Allocation Fund Initial Class | ||||||||||||||||
Sold | 398,465 | $ | 4,057,662 | 586,179 | $ | 6,224,912 | ||||||||||
Issued as reinvestment of dividends | - | - | 385,393 | 4,023,507 | ||||||||||||
Redeemed | (376,293 | ) | (3,827,179 | ) | (1,086,527 | ) | (11,598,090 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 22,172 | $ | 230,483 | (114,955 | ) | $ | (1,349,671 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Aggressive Allocation Fund Service Class | ||||||||||||||||
Sold | 223,803 | $ | 2,241,552 | 1,017,849 | $ | 10,420,943 | ||||||||||
Issued as reinvestment of dividends | - | - | 547,886 | 5,643,220 | ||||||||||||
Redeemed | (778,731 | ) | (7,721,771 | ) | (945,718 | ) | (9,867,080 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (554,928 | ) | $ | (5,480,219 | ) | 620,017 | $ | 6,197,083 | ||||||||
|
|
|
|
|
|
|
| |||||||||
MML American Funds Growth Fund Service Class I | ||||||||||||||||
Sold | 636,948 | $ | 9,049,724 | 1,459,874 | $ | 21,236,847 | ||||||||||
Issued as reinvestment of dividends | - | - | 1,383,581 | 20,518,506 | ||||||||||||
Redeemed | (919,033 | ) | (13,090,146 | ) | (2,025,375 | ) | (30,154,600 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (282,085 | ) | $ | (4,040,422 | ) | 818,080 | $ | 11,600,753 | ||||||||
|
|
|
|
|
|
|
| |||||||||
MML American Funds International Fund Service Class I | ||||||||||||||||
Sold | 193,355 | $ | 1,943,772 | 780,190 | $ | 8,044,044 | ||||||||||
Issued as reinvestment of dividends | - | - | 249,412 | 2,601,370 | ||||||||||||
Redeemed | (433,661 | ) | (4,359,327 | ) | (897,346 | ) | (9,518,444 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (240,306 | ) | $ | (2,415,555 | ) | 132,256 | $ | 1,126,970 | ||||||||
|
|
|
|
|
|
|
| |||||||||
MML American Funds Core Allocation Fund Service Class I | ||||||||||||||||
Sold | 1,424,335 | $ | 16,800,999 | 3,821,495 | $ | 46,993,936 | ||||||||||
Issued as reinvestment of dividends | - | - | 7,619,044 | 91,047,579 | ||||||||||||
Redeemed | (6,554,607 | ) | (77,148,733 | ) | (11,227,591 | ) | (136,965,374 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (5,130,272 | ) | $ | (60,347,734 | ) | 212,948 | $ | 1,076,141 | ||||||||
|
|
|
|
|
|
|
|
6. | Federal Income Tax Information |
At June 30, 2019, the aggregate cost of investments and the unrealized appreciation (depreciation) in the value of all investments owned by the Fund(s), as computed on a federal income tax basis, were as follows:
Federal Income Tax Cost | Tax Basis Unrealized Appreciation | Tax Basis Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Conservative Allocation Fund | $ | 405,700,242 | $ | 10,847,035 | $ | (2,858,545 | ) | $ | 7,988,490 | |||||||
Balanced Allocation Fund | 529,994,367 | 13,767,096 | (5,761,947 | ) | 8,005,149 | |||||||||||
Moderate Allocation Fund | 2,110,268,599 | 63,056,543 | (29,197,066 | ) | 33,859,477 | |||||||||||
Growth Allocation Fund | 1,504,160,337 | 52,730,317 | (21,239,427 | ) | 31,490,890 | |||||||||||
Aggressive Allocation Fund | 152,750,722 | 5,175,249 | (2,474,362 | ) | 2,700,887 | |||||||||||
MML American Funds Growth Fund | 181,743,611 | 3,308,807 | - | 3,308,807 | ||||||||||||
MML American Funds International Fund | 59,723,546 | 2,833,851 | - | 2,833,851 | ||||||||||||
MML American Funds Core Allocation Fund | 1,003,172,582 | 16,002,124 | (18,640,065 | ) | (2,637,941 | ) |
40
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Net capital loss carryforwards may be applied against any net realized taxable gains in succeeding years, subject to the carryforward period limitations, where applicable. On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act changed the capital loss carryforward rules as they relate to regulated investment companies. Capital losses generated in tax years beginning after the date of enactment may now be carried forward indefinitely, and retain the character of the original loss. Underpre-enactment law, capital losses could be carried forward for up to eight tax years as short-term capital losses. The provisions affecting the utilization of capital loss carryforwards under the Modernization Act also require the utilization of post-enactment losses prior to the utilization ofpre-enactment losses.
At December 31, 2018, for federal income tax purposes, there were no unused capital losses.
Generally accepted accounting principles in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital.
The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2018, was as follows:
Ordinary Income | Long Term Capital Gain | |||||||
Conservative Allocation Fund | $ | 10,334,933 | $ | 8,777,649 | ||||
Balanced Allocation Fund | 12,058,721 | 21,686,126 | ||||||
Moderate Allocation Fund | 44,660,932 | 106,276,851 | ||||||
Growth Allocation Fund | 27,277,596 | 103,913,902 | ||||||
Aggressive Allocation Fund | 1,917,769 | 7,748,958 | ||||||
MML American Funds Growth Fund | 490,445 | 20,028,061 | ||||||
MML American Funds International Fund | 519,756 | 2,081,614 | ||||||
MML American Funds Core Allocation Fund | 18,186,189 | 72,861,390 |
The following Fund(s) have elected to pass through the foreign tax credit for the year ended December 31, 2018:
Amount | ||||
Conservative Allocation Fund | $ | 39,135 | ||
Balanced Allocation Fund | 69,094 | |||
Moderate Allocation Fund | 423,464 | |||
Growth Allocation Fund | 390,805 | |||
Aggressive Allocation Fund | 45,168 | |||
MML American Funds International Fund | 92,674 | |||
MML American Funds Core Allocation Fund | 204,018 |
Capital accounts within the financial statements are periodically adjusted for permanent differences between book and tax accounting. These adjustments have no impact on net assets or the results of operations. Temporary book and tax accounting differences will reverse in subsequent periods. At December 31, 2018, temporary book and tax accounting differences were primarily attributable to the deferral of wash sale losses and deferred Trustee compensation.
41
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
At December 31, 2018, the components of distributable earnings on a tax basis were as follows:
Undistributed Ordinary Income | Undistributed Long Term Capital Gain (Capital Loss Carryover) | Other Temporary Differences | Unrealized Appreciation (Depreciation) | |||||||||||||
Conservative Allocation Fund | $ | 10,342,992 | $ | 15,457,653 | $ | (62,017 | ) | $ | (37,701,193 | ) | ||||||
Balanced Allocation Fund | 12,564,822 | 24,552,520 | (75,688 | ) | (52,335,229 | ) | ||||||||||
Moderate Allocation Fund | 48,785,866 | 126,799,289 | (279,836 | ) | (218,374,601 | ) | ||||||||||
Growth Allocation Fund | 32,280,327 | 126,242,935 | (228,037 | ) | (159,803,752 | ) | ||||||||||
Aggressive Allocation Fund | 2,782,163 | 13,636,022 | (16,613 | ) | (19,867,782 | ) | ||||||||||
MML American Funds Growth Fund | 581,641 | 23,521,702 | (16,900 | ) | (2,098,738 | ) | ||||||||||
MML American Funds International Fund | 1,681,466 | 3,099,871 | (7,818 | ) | (3,212,864 | ) | ||||||||||
MML American Funds Core Allocation Fund | 23,619,076 | 70,110,677 | (109,938 | ) | (56,689,087 | ) |
The Funds did not have any unrecognized tax benefits at June 30, 2019, nor were there any increases or decreases in unrecognized tax benefits for the period then ended. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense in the Statements of Operations. During the period ended June 30, 2019, the Funds did not incur any such interest or penalties. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years. Foreign taxes are provided for based on the Funds’ understanding of the tax rules and rates that exist in the foreign markets in which they invest.
7. | Investment in Affiliated Issuers |
A summary of the Funds’ transactions in the securities of affiliated issuers during the period ended June 30, 2019, was as follows:
Beginning Value as of 12/31/18 | Purchases | Sales | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain (Loss) | Value as of 6/30/19 | Number of Shares Held as of 6/30/19 | Dividend Income | Realized Gains Distributions | ||||||||||||||||||||||||||||
Conservative Allocation Fund | ||||||||||||||||||||||||||||||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | $ | 2,444,532 | $ | 310,132 | $ | (1,061,608 | ) | $ | 357,911 | $ | 50,073 | $ | 2,101,040 | # | 26,868 | $ | - | $ | 256,933 | |||||||||||||||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 6,015,043 | 1,071,317 | (971,056 | ) | 255,899 | 26,212 | 6,397,415 | # | 163,116 | 55,946 | 883,704 | |||||||||||||||||||||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 5,246,382 | 377,841 | (4,877,161 | ) | 581,861 | 179,521 | 1,508,444 | # | 673,412 | 15,309 | 75,065 | |||||||||||||||||||||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | 4,201,052 | 868,912 | (244,796 | ) | 60,606 | 7,504 | 4,893,278 | # | 181,031 | 50,889 | 766,072 | |||||||||||||||||||||||||
MML Blue Chip Growth Fund, Initial Class | 8,639,754 | 1,431,055 | (1,503,517 | ) | 1,679,441 | 208,339 | 10,455,072 | 592,691 | - | - | ||||||||||||||||||||||||||
MML Dynamic Bond Fund, Class II | 63,036,979 | 2,367,038 | (10,576,391 | ) | 3,211,486 | (45,023 | ) | 57,994,089 | 5,730,641 | 703,000 | - | |||||||||||||||||||||||||
MML Equity Income Fund, Initial Class | 11,259,033 | 821,362 | (2,308,285 | ) | 1,783,900 | (64,616 | ) | 11,491,394 | 988,932 | - | - | |||||||||||||||||||||||||
MML Equity Index Fund, Class III | 11,881,555 | 46,604 | (12,856,823 | ) | (294,498 | ) | 2,118,026 | 894,864 | 26,946 | - | - | |||||||||||||||||||||||||
MML Focused Equity Fund, Class II | 2,409,391 | 13,414,132 | (695,398 | ) | 1,870,349 | (570,996 | ) | 16,427,478 | 2,554,818 | - | - | |||||||||||||||||||||||||
MML Foreign Fund, Initial Class | 8,108,780 | 160,989 | (1,604,445 | ) | 768,622 | (183,314 | ) | 7,250,632 | 727,975 | - | - | |||||||||||||||||||||||||
MML Fundamental Growth Fund, Class II | 6,255,798 | 224,207 | (956,786 | ) | 1,343,759 | (104,043 | ) | 6,762,935 | 596,905 | - | - |
42
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Beginning Value as of 12/31/18 | Purchases | Sales | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain (Loss) | Value as of 6/30/19 | Number of Shares Held as of 6/30/19 | Dividend Income | Realized Gains Distributions | ||||||||||||||||||||||||||||
Conservative Allocation Fund (Continued) | ||||||||||||||||||||||||||||||||||||
MML Fundamental Value Fund, Class II | $ | 8,514,994 | $ | 2,308,831 | $ | (1,307,828 | ) | $ | 1,078,142 | $ | (28,230 | ) | $ | 10,565,909 | 761,782 | $ | - | $ | - | |||||||||||||||||
MML Global Fund, Class I | 10,337,781 | 8,143,385 | (1,570,964 | ) | 2,611,522 | (205,823 | ) | 19,315,901 | 1,556,479 | - | - | |||||||||||||||||||||||||
MML High Yield Fund, Class II | 11,812,135 | 2,289,791 | (2,882,857 | ) | 1,200,219 | (434,323 | ) | 11,984,965 | 1,240,680 | 175,001 | - | |||||||||||||||||||||||||
MML Income & Growth Fund, Initial Class | 12,229,220 | 301,731 | (1,440,080 | ) | 2,048,818 | (275,345 | ) | 12,864,344 | 1,319,420 | - | - | |||||||||||||||||||||||||
MML Inflation-Protected and Income Fund, Initial Class | 16,508,925 | 1,487,390 | (1,403,832 | ) | 1,093,883 | (69,796 | ) | 17,616,570 | 1,708,688 | 20,554 | - | |||||||||||||||||||||||||
MML International Equity Fund, Class II | 6,747,836 | 2,355,172 | (598,221 | ) | 951,673 | 5,389 | 9,461,849 | 938,675 | - | - | ||||||||||||||||||||||||||
MML Large Cap Growth Fund, Initial Class | 2,599,324 | 672,459 | (808,051 | ) | 561,069 | 28,444 | 3,053,245 | 258,312 | - | - | ||||||||||||||||||||||||||
MML Managed Bond Fund, Initial Class | 79,263,697 | 18,944,033 | (13,580,673 | ) | 5,479,381 | (631,898 | ) | 89,474,540 | 7,089,900 | 846,321 | - | |||||||||||||||||||||||||
MML Mid Cap Growth Fund, Initial Class | 6,778,479 | 2,922,610 | (913,000 | ) | 1,767,771 | (74,794 | ) | 10,481,066 | 605,492 | - | - | |||||||||||||||||||||||||
MML Mid Cap Value Fund, Initial Class | 7,785,334 | 396,919 | (919,229 | ) | 1,561,141 | (211,542 | ) | 8,612,623 | 785,823 | - | - | |||||||||||||||||||||||||
MML Short-Duration Bond Fund, Class II | 20,092,579 | 5,455,626 | (2,256,990 | ) | 391,443 | (36,518 | ) | 23,646,140 | 2,422,760 | 168,034 | - | |||||||||||||||||||||||||
MML Small Cap Growth Equity Fund, Initial Class | 1,441,789 | 206,266 | (190,225 | ) | 335,595 | 24,169 | 1,817,594 | 113,336 | - | - | ||||||||||||||||||||||||||
MML Small Company Value Fund, Class II | 3,653,765 | 194,355 | (339,193 | ) | 648,152 | (29,573 | ) | 4,127,506 | 254,157 | - | - | |||||||||||||||||||||||||
MML Small/Mid Cap Value Fund, Initial Class | 1,673,757 | 862,895 | (230,549 | ) | 254,469 | 6,874 | 2,567,446 | 211,835 | - | - | ||||||||||||||||||||||||||
MML Strategic Emerging Markets Fund, Class II | 500,495 | 5,268 | (24,304 | ) | 76,747 | 2,618 | 560,824 | 47,770 | - | - | ||||||||||||||||||||||||||
MML Total Return Bond Fund, Class II | 51,392,846 | 3,089,408 | (7,168,907 | ) | 3,234,192 | (33,717 | ) | 50,513,822 | 4,672,879 | - | - | |||||||||||||||||||||||||
Oppenheimer Global Multi-Alternatives Fund/VA,Non-Service Shares* | 26,563,757 | 354,336 | (27,507,872 | ) | 2,764,431 | (2,174,652 | ) | - | - | 354,338 | - | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 397,395,012 | $ | 71,084,064 | $ | (100,799,041 | ) | $ | 37,677,984 | $ | (2,517,034 | ) | $ | 402,840,985 | $ | 2,389,392 | $ | 1,981,774 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Balanced Allocation Fund | ||||||||||||||||||||||||||||||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | $ | 4,330,133 | $ | 499,195 | $ | (2,071,670 | ) | $ | 552,470 | $ | 189,224 | $ | 3,499,352 | # | 44,749 | $ | - | $ | 429,454 | |||||||||||||||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 8,827,673 | 1,631,161 | (968,339 | ) | 386,746 | (10,837 | ) | 9,866,404 | # | 251,566 | 86,590 | 1,367,748 | ||||||||||||||||||||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 11,079,936 | 1,532,777 | (11,661,221 | ) | 1,858,470 | (108,389 | ) | 2,701,573 | # | 1,206,059 | 27,527 | 134,974 | ||||||||||||||||||||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | 8,298,100 | 1,767,222 | (307,434 | ) | 101,001 | 5,670 | 9,864,559 | # | 364,949 | 102,855 | 1,548,364 | |||||||||||||||||||||||||
MML Blue Chip Growth Fund, Initial Class | 14,319,625 | 593,338 | (1,813,591 | ) | 2,733,551 | 185,439 | 16,018,362 | 908,070 | - | - | ||||||||||||||||||||||||||
MML Dynamic Bond Fund, Class II | 63,752,628 | 3,096,360 | (7,919,307 | ) | 3,302,257 | (35,135 | ) | 62,196,803 | 6,145,929 | 707,560 | - | |||||||||||||||||||||||||
MML Equity Income Fund, Initial Class | 16,666,058 | 1,481,223 | (2,806,388 | ) | 3,296,981 | (684,137 | ) | 17,953,737 | 1,545,072 | - | - | |||||||||||||||||||||||||
MML Equity Index Fund, Class III | 15,692,671 | 87,359 | (16,883,062 | ) | (314,852 | ) | 2,722,756 | 1,304,872 | 39,292 | - | - | |||||||||||||||||||||||||
MML Focused Equity Fund, Class II | 2,687,561 | 17,512,067 | (1,016,755 | ) | 1,738,772 | (363,335 | ) | 20,558,310 | 3,197,249 | - | - |
43
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Beginning Value as of 12/31/18 | Purchases | Sales | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain (Loss) | Value as of 6/30/19 | Number of Shares Held as of 6/30/19 | Dividend Income | Realized Gains Distributions | ||||||||||||||||||||||||||||
Balanced Allocation Fund (Continued) | ||||||||||||||||||||||||||||||||||||
MML Foreign Fund, Initial Class | $ | 14,176,316 | $ | 1,290,767 | $ | (1,707,830 | ) | $ | 1,252,188 | $ | (165,533 | ) | $ | 14,845,908 | 1,490,553 | $ | - | $ | - | |||||||||||||||||
MML Fundamental Growth Fund, Class II | 9,289,466 | 180,831 | (1,161,366 | ) | 2,016,287 | (176,063 | ) | 10,149,155 | 895,777 | - | - | |||||||||||||||||||||||||
MML Fundamental Value Fund, Class II | 15,134,714 | 316,806 | (1,493,937 | ) | 2,032,673 | (249,512 | ) | 15,740,744 | 1,134,877 | - | - | |||||||||||||||||||||||||
MML Global Fund, Class I | 15,989,551 | 22,630,776 | (2,673,920 | ) | 4,244,336 | (199,370 | ) | 39,991,373 | 3,222,512 | - | - | |||||||||||||||||||||||||
MML High Yield Fund, Class II | 13,437,551 | 2,441,631 | (3,848,867 | ) | 1,398,204 | (519,080 | ) | 12,909,439 | 1,336,381 | 220,966 | - | |||||||||||||||||||||||||
MML Income & Growth Fund, Initial Class | 17,457,908 | 350,409 | (1,933,334 | ) | 3,029,251 | (505,464 | ) | 18,398,770 | 1,887,053 | - | - | |||||||||||||||||||||||||
MML Inflation-Protected and Income Fund, Initial Class | 18,608,638 | 1,772,938 | (1,314,445 | ) | 1,233,979 | (72,889 | ) | 20,228,221 | 1,962,000 | 23,267 | - | |||||||||||||||||||||||||
MML International Equity Fund, Class II | 12,461,899 | 1,565,012 | (977,363 | ) | 1,765,884 | (35,087 | ) | 14,780,345 | 1,466,304 | - | - | |||||||||||||||||||||||||
MML Large Cap Growth Fund, Initial Class | 5,951,119 | 118,697 | (994,368 | ) | 1,267,255 | (53,862 | ) | 6,288,841 | 532,051 | - | - | |||||||||||||||||||||||||
MML Managed Bond Fund, Initial Class | 86,417,649 | 20,469,240 | (12,126,695 | ) | 5,585,111 | (314,627 | ) | 100,030,678 | 7,926,361 | 903,587 | - | |||||||||||||||||||||||||
MML Mid Cap Growth Fund, Initial Class | 12,522,921 | 3,553,673 | (1,330,675 | ) | 3,002,116 | 59,371 | 17,807,406 | 1,028,735 | - | - | ||||||||||||||||||||||||||
MML Mid Cap Value Fund, Initial Class | 13,551,381 | 1,568,262 | (1,301,010 | ) | 2,695,339 | (339,175 | ) | 16,174,797 | 1,475,803 | - | - | |||||||||||||||||||||||||
MML Short-Duration Bond Fund, Class II | 23,866,311 | 3,652,586 | (2,199,223 | ) | 450,493 | (33,952 | ) | 25,736,215 | 2,636,907 | 201,318 | - | |||||||||||||||||||||||||
MML Small Cap Growth Equity Fund, Initial Class | 3,193,020 | 207,436 | (277,433 | ) | 814,648 | (25,263 | ) | 3,912,408 | 243,959 | - | - | |||||||||||||||||||||||||
MML Small Company Value Fund, Class II | 5,608,566 | 220,696 | (458,880 | ) | 1,000,269 | (51,124 | ) | 6,319,527 | 389,133 | - | - | |||||||||||||||||||||||||
MML Small/Mid Cap Value Fund, Initial Class | 3,547,754 | 388,183 | (333,732 | ) | 583,517 | (46,251 | ) | 4,139,471 | 341,541 | - | - | |||||||||||||||||||||||||
MML Strategic Emerging Markets Fund, Class II | 600,594 | 1,021,862 | (50,902 | ) | 120,211 | 5,870 | 1,697,635 | 144,603 | - | - | ||||||||||||||||||||||||||
MML Total Return Bond Fund, Class II | 54,159,581 | 4,601,916 | (7,533,355 | ) | 3,329,063 | 23,586 | 54,580,791 | 5,049,102 | - | - | ||||||||||||||||||||||||||
Oppenheimer Global Multi-Alternatives Fund/VA,Non-Service Shares* | 36,229,988 | 484,452 | (37,526,482 | ) | 3,645,862 | (2,833,820 | ) | - | - | 484,452 | - | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 507,859,312 | $ | 95,036,875 | $ | (124,691,584 | ) | $ | 53,122,082 | $ | (3,630,989 | ) | $ | 527,695,696 | $ | 2,758,122 | $ | 3,480,540 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Moderate Allocation Fund | ||||||||||||||||||||||||||||||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | $ | 22,685,185 | $ | 2,171,508 | $ | (11,150,470 | ) | $ | 3,189,792 | $ | 717,330 | $ | 17,613,345 | # | 225,235 | $ | - | $ | 2,161,727 | |||||||||||||||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 37,665,635 | 6,093,536 | (5,278,430 | ) | 1,736,447 | (44,459 | ) | 40,172,729 | # | 1,024,292 | 361,618 | 5,711,998 | ||||||||||||||||||||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 35,317,171 | 2,315,962 | (30,114,813 | ) | 3,685,630 | 1,433,328 | 12,637,278 | # | 5,641,642 | 128,754 | 631,324 | |||||||||||||||||||||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | 25,674,274 | 6,138,605 | (2,517,277 | ) | 370,066 | (87,221 | ) | 29,578,447 | # | 1,094,282 | 319,394 | 4,808,113 | ||||||||||||||||||||||||
MML Blue Chip Growth Fund, Initial Class | 69,294,777 | 898,206 | (8,384,463 | ) | 13,617,995 | 416,276 | 75,842,791 | 4,299,478 | - | - | ||||||||||||||||||||||||||
MML Dynamic Bond Fund, Class II | 209,820,148 | 7,023,356 | (22,891,855 | ) | 10,987,478 | (234,805 | ) | 204,704,322 | 20,227,700 | 2,339,595 | - | |||||||||||||||||||||||||
MML Equity Income Fund, Initial Class | 82,090,173 | 41,403 | (10,410,695 | ) | 13,910,252 | (1,546,112 | ) | 84,085,021 | 7,236,232 | - | - |
44
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Beginning Value as of 12/31/18 | Purchases | Sales | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain (Loss) | Value as of 6/30/19 | Number of Shares Held as of 6/30/19 | Dividend Income | Realized Gains Distributions | ||||||||||||||||||||||||||||
Moderate Allocation Fund (Continued) | ||||||||||||||||||||||||||||||||||||
MML Equity Index Fund, Class III | $ | 76,574,751 | $ | 42,507 | $ | (83,096,057 | ) | $ | (1,425,522 | ) | $ | 13,508,263 | $ | 5,603,942 | 168,743 | $ | - | $ | - | |||||||||||||||||
MML Focused Equity Fund, Class II | 20,985,975 | 90,471,251 | (4,813,226 | ) | 13,404,468 | (4,755,651 | ) | 115,292,817 | 17,930,454 | - | - | |||||||||||||||||||||||||
MML Foreign Fund, Initial Class | 68,158,972 | 2,714,286 | (4,437,783 | ) | 5,397,920 | (127,470 | ) | 71,705,925 | 7,199,390 | - | - | |||||||||||||||||||||||||
MML Fundamental Growth Fund, Class II | 40,049,374 | 25,011 | (4,926,690 | ) | 8,593,041 | (662,578 | ) | 43,078,158 | 3,802,132 | - | - | |||||||||||||||||||||||||
MML Fundamental Value Fund, Class II | 72,225,183 | 37,828 | (6,080,586 | ) | 9,114,763 | (596,562 | ) | 74,700,626 | 5,385,770 | - | - | |||||||||||||||||||||||||
MML Global Fund, Class I | 73,665,241 | 85,412,216 | (10,536,191 | ) | 18,876,806 | (890,814 | ) | 166,527,258 | 13,418,796 | - | - | |||||||||||||||||||||||||
MML High Yield Fund, Class II | 42,569,900 | 2,723,166 | (8,968,227 | ) | 3,980,300 | (1,256,937 | ) | 39,048,202 | 4,042,257 | 707,247 | - | |||||||||||||||||||||||||
MML Income & Growth Fund, Initial Class | 81,410,810 | 40,188 | (7,925,730 | ) | 12,783,689 | (1,006,888 | ) | 85,302,069 | 8,748,930 | - | - | |||||||||||||||||||||||||
MML Inflation-Protected and Income Fund, Initial Class | 62,730,545 | 4,841,841 | (4,494,435 | ) | 4,135,579 | (246,180 | ) | 66,967,350 | 6,495,378 | 78,064 | - | |||||||||||||||||||||||||
MML International Equity Fund, Class II | 65,866,175 | 3,964,085 | (4,358,340 | ) | 9,023,523 | (159,083 | ) | 74,336,360 | 7,374,639 | - | - | |||||||||||||||||||||||||
MML Large Cap Growth Fund, Initial Class | 22,092,695 | 144,967 | (4,075,147 | ) | 4,629,985 | (155,463 | ) | 22,637,037 | 1,915,147 | - | - | |||||||||||||||||||||||||
MML Managed Bond Fund, Initial Class | 261,870,348 | 78,018,886 | (31,878,414 | ) | 17,496,083 | (686,237 | ) | 324,820,666 | 25,738,561 | 2,760,659 | - | |||||||||||||||||||||||||
MML Mid Cap Growth Fund, Initial Class | 68,405,477 | 11,576,714 | (7,897,378 | ) | 15,843,988 | 538,248 | 88,467,049 | 5,110,748 | - | - | ||||||||||||||||||||||||||
MML Mid Cap Value Fund, Initial Class | 69,126,568 | 2,957,301 | (7,673,956 | ) | 14,104,426 | (2,262,626 | ) | 76,251,713 | 6,957,273 | - | - | |||||||||||||||||||||||||
MML Short-Duration Bond Fund, Class II | 84,136,565 | 2,739,817 | (7,363,610 | ) | 1,609,318 | (168,368 | ) | 80,953,722 | 8,294,439 | 707,993 | - | |||||||||||||||||||||||||
MML Small Cap Growth Equity Fund, Initial Class | 12,860,106 | 1,292,621 | (1,315,713 | ) | 3,455,656 | (264,278 | ) | 16,028,392 | 999,454 | - | - | |||||||||||||||||||||||||
MML Small Company Value Fund, Class II | 27,837,569 | 996,317 | (2,306,792 | ) | 5,161,452 | (462,953 | ) | 31,225,593 | 1,922,758 | - | - | |||||||||||||||||||||||||
MML Small/Mid Cap Value Fund, Initial Class | 22,177,322 | 1,985,508 | (1,657,735 | ) | 3,479,885 | (215,252 | ) | 25,769,728 | 2,126,215 | - | - | |||||||||||||||||||||||||
MML Strategic Emerging Markets Fund, Class II | 52,900,676 | 3,083,049 | (3,820,913 | ) | 8,163,013 | 380,740 | 60,706,565 | 5,170,917 | - | - | ||||||||||||||||||||||||||
MML Total Return Bond Fund, Class II | 175,042,376 | 9,303,122 | (19,143,972 | ) | 11,680,703 | (719,448 | ) | 176,162,781 | 16,296,279 | - | - | |||||||||||||||||||||||||
Oppenheimer Global Multi-Alternatives Fund/VA,Non-Service Shares* | 158,427,061 | 2,076,151 | (164,088,701 | ) | 13,107,571 | (9,522,082 | ) | - | - | 2,076,151 | - | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 2,041,661,052 | $ | 329,129,408 | $ | (481,607,599 | ) | $ | 230,114,307 | $ | (9,077,282 | ) | $ | 2,110,219,886 | $ | 9,479,475 | $ | 13,313,162 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Growth Allocation Fund | ||||||||||||||||||||||||||||||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | $ | 20,070,503 | $ | 1,979,756 | $ | (9,620,272 | ) | $ | 2,488,470 | $ | 1,003,003 | $ | 15,921,460 | # | 203,599 | $ | - | $ | 1,954,195 | |||||||||||||||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 32,160,543 | 5,189,305 | (5,939,415 | ) | 1,429,934 | 40,171 | 32,880,538 | # | 838,362 | 306,537 | 4,841,964 | |||||||||||||||||||||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 31,899,741 | 1,187,059 | (26,192,335 | ) | 3,611,627 | 841,616 | 11,347,708 | # | 5,065,941 | 115,631 | 566,979 | |||||||||||||||||||||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | 24,624,971 | 4,751,497 | (3,667,051 | ) | 633,010 | (197,908 | ) | 26,144,519 | # | 967,241 | 294,048 | 4,426,550 | ||||||||||||||||||||||||
MML Blue Chip Growth Fund, Initial Class | 61,820,595 | 454,661 | (7,651,397 | ) | 12,527,636 | (53,568 | ) | 67,097,927 | 3,803,737 | - | - |
45
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Beginning Value as of 12/31/18 | Purchases | Sales | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain (Loss) | Value as of 6/30/19 | Number of Shares Held as of 6/30/19 | Dividend Income | Realized Gains Distributions | ||||||||||||||||||||||||||||
Growth Allocation Fund (Continued) | ||||||||||||||||||||||||||||||||||||
MML Dynamic Bond Fund, Class II | $ | 81,481,511 | $ | 9,095,234 | $ | (7,499,881 | ) | $ | 4,405,205 | $ | (39,704 | ) | $ | 87,442,365 | 8,640,550 | $ | 914,184 | $ | - | |||||||||||||||||
MML Equity Income Fund, Initial Class | 73,474,363 | 90,284 | (9,865,843 | ) | 9,429,319 | 1,528,332 | 74,656,455 | 6,424,824 | - | - | ||||||||||||||||||||||||||
MML Equity Index Fund, Class III | 69,125,769 | 66,000 | (75,400,287 | ) | (1,157,357 | ) | 12,302,521 | 4,936,646 | 148,649 | - | - | |||||||||||||||||||||||||
MML Focused Equity Fund, Class II | 19,201,581 | 99,462,798 | (14,819,013 | ) | 13,641,126 | (5,627,691 | ) | 111,858,801 | 17,396,392 | - | - | |||||||||||||||||||||||||
MML Foreign Fund, Initial Class | 62,924,066 | 1,947,897 | (4,675,880 | ) | 4,768,449 | 98,849 | 65,063,381 | 6,532,468 | - | - | ||||||||||||||||||||||||||
MML Fundamental Growth Fund, Class II | 30,815,375 | 44,096 | (4,163,744 | ) | 6,626,750 | (522,616 | ) | 32,799,861 | 2,894,957 | - | - | |||||||||||||||||||||||||
MML Fundamental Value Fund, Class II | 64,870,915 | 80,109 | (5,689,029 | ) | 6,293,962 | 1,359,618 | 66,915,575 | 4,824,483 | - | - | ||||||||||||||||||||||||||
MML Global Fund, Class I | 67,099,378 | 74,888,162 | (9,676,115 | ) | 16,885,094 | (679,047 | ) | 148,517,472 | 11,967,564 | - | - | |||||||||||||||||||||||||
MML High Yield Fund, Class II | 11,646,363 | 7,207,358 | (1,439,400 | ) | 970,245 | (184,482 | ) | 18,200,084 | 1,884,067 | 190,067 | - | |||||||||||||||||||||||||
MML Income & Growth Fund, Initial Class | 73,646,206 | 89,669 | (8,587,219 | ) | 11,857,710 | (1,343,523 | ) | 75,662,843 | 7,760,292 | - | - | |||||||||||||||||||||||||
MML Inflation-Protected and Income Fund, Initial Class | 57,831,762 | 2,658,413 | (5,050,964 | ) | 3,688,649 | (215,062 | ) | 58,912,798 | 5,714,141 | 69,243 | - | |||||||||||||||||||||||||
MML International Equity Fund, Class II | 61,352,726 | 3,916,078 | (4,615,940 | ) | 8,384,557 | (143,814 | ) | 68,893,607 | 6,834,683 | - | - | |||||||||||||||||||||||||
MML Large Cap Growth Fund, Initial Class | 20,810,674 | 28,699 | (3,291,972 | ) | 4,421,999 | (150,049 | ) | 21,819,351 | 1,845,969 | - | - | |||||||||||||||||||||||||
MML Managed Bond Fund, Initial Class | 109,788,382 | 37,424,660 | (14,172,516 | ) | 7,560,610 | (364,918 | ) | 140,236,218 | 11,112,219 | 1,188,015 | - | |||||||||||||||||||||||||
MML Mid Cap Growth Fund, Initial Class | 65,525,098 | 8,071,323 | (7,319,130 | ) | 14,046,185 | 1,515,522 | 81,838,998 | 4,727,845 | - | - | ||||||||||||||||||||||||||
MML Mid Cap Value Fund, Initial Class | 64,673,041 | 509,706 | (7,027,686 | ) | 11,330,295 | (336,482 | ) | 69,148,874 | 6,309,204 | - | - | |||||||||||||||||||||||||
MML Short-Duration Bond Fund, Class II | 41,566,339 | 2,403,404 | (4,952,057 | ) | 828,394 | (121,991 | ) | 39,724,089 | 4,070,091 | 348,851 | - | |||||||||||||||||||||||||
MML Small Cap Growth Equity Fund, Initial Class | 11,889,198 | 1,302,785 | (1,370,941 | ) | 3,151,574 | (200,401 | ) | 14,772,215 | 921,124 | - | - | |||||||||||||||||||||||||
MML Small Company Value Fund, Class II | 26,604,654 | 821,618 | (2,464,179 | ) | 5,398,343 | (907,604 | ) | 29,452,832 | 1,813,598 | - | - | |||||||||||||||||||||||||
MML Small/Mid Cap Value Fund, Initial Class | 21,784,982 | 500,541 | (1,723,335 | ) | 3,312,178 | (198,109 | ) | 23,676,257 | 1,953,487 | - | - | |||||||||||||||||||||||||
MML Strategic Emerging Markets Fund, Class II | 51,435,567 | 4,129,861 | (4,303,972 | ) | 7,872,021 | 530,740 | 59,664,217 | 5,082,131 | - | - | ||||||||||||||||||||||||||
MML Total Return Bond Fund, Class II | 71,142,702 | 5,575,358 | (9,187,493 | ) | 4,796,018 | (290,895 | ) | 72,035,690 | 6,663,801 | - | - | |||||||||||||||||||||||||
Oppenheimer Global Multi-Alternatives Fund/VA,Non-Service Shares* | 123,894,119 | 1,651,904 | (128,298,647 | ) | 9,567,238 | (6,814,614 | ) | - | - | 1,651,905 | - | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 1,453,161,124 | $ | 275,528,235 | $ | (388,665,713 | ) | $ | 178,769,241 | $ | 827,894 | $ | 1,519,620,781 | $ | 5,078,481 | $ | 11,789,688 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Aggressive Allocation Fund | ||||||||||||||||||||||||||||||||||||
Invesco Oppenheimer V.I. Discovery Mid Cap Growth Fund/VA, Series I | $ | 2,551,637 | $ | 291,659 | $ | (1,312,549 | ) | $ | 383,261 | $ | 61,647 | $ | 1,975,655 | # | 25,264 | $ | - | $ | 242,110 | |||||||||||||||||
Invesco Oppenheimer V.I. Global Fund/VA, Series I | 3,381,972 | 670,914 | (348,397 | ) | 59,677 | 79,302 | 3,843,468 | # | 97,998 | 33,707 | 532,423 | |||||||||||||||||||||||||
Invesco Oppenheimer V.I. International Growth Fund/VA, Series I | 3,627,672 | 134,144 | (2,857,148 | ) | 369,877 | 129,603 | 1,404,148 | # | 626,852 | 14,282 | 70,032 |
46
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Beginning Value as of 12/31/18 | Purchases | Sales | Change in Unrealized Appreciation/ Depreciation | Net Realized Gain (Loss) | Value as of 6/30/19 | Number of Shares Held as of 6/30/19 | Dividend Income | Realized Gains Distributions | ||||||||||||||||||||||||||||
Aggressive Allocation Fund (Continued) | ||||||||||||||||||||||||||||||||||||
Invesco Oppenheimer V.I. Main Street Fund/VA, Series I | $ | 3,789,298 | $ | 661,425 | $ | (1,142,719 | ) | $ | 133,952 | $ | 63,974 | $ | 3,505,930 | # | 129,705 | $ | 36,543 | $ | 550,115 | |||||||||||||||||
MML Blue Chip Growth Fund, Initial Class | 7,492,621 | 210,193 | (816,772 | ) | 1,432,895 | 72,483 | 8,391,420 | 475,704 | - | - | ||||||||||||||||||||||||||
MML Dynamic Bond Fund, Class II | 2,110,207 | 1,525,836 | (201,696 | ) | 134,085 | 174 | 3,568,606 | 352,629 | 27,750 | - | ||||||||||||||||||||||||||
MML Equity Income Fund, Initial Class | 8,137,735 | 220,213 | (842,269 | ) | 1,440,746 | (198,667 | ) | 8,757,758 | 753,680 | - | - | |||||||||||||||||||||||||
MML Equity Index Fund, Class III | 6,491,985 | 41,512 | (6,950,842 | ) | (13,828 | ) | 1,049,408 | 618,235 | 18,616 | - | - | |||||||||||||||||||||||||
MML Focused Equity Fund, Class II | 2,954,365 | 9,713,015 | (545,889 | ) | 1,669,402 | (626,815 | ) | 13,164,078 | 2,047,291 | - | - | |||||||||||||||||||||||||
MML Foreign Fund, Initial Class | 7,087,331 | 629,879 | (436,193 | ) | 588,609 | (34,558 | ) | 7,835,068 | 786,653 | - | - | |||||||||||||||||||||||||
MML Fundamental Growth Fund, Class II | 3,631,211 | 119,092 | (543,097 | ) | 766,899 | (61,884 | ) | 3,912,221 | 345,298 | - | - | |||||||||||||||||||||||||
MML Fundamental Value Fund, Class II | 7,637,762 | 200,091 | (548,599 | ) | 1,012,315 | (106,481 | ) | 8,195,088 | 590,850 | - | - | |||||||||||||||||||||||||
MML Global Fund, Class I | 7,840,600 | 9,009,016 | (956,588 | ) | 1,972,966 | (73,715 | ) | 17,792,279 | 1,433,705 | - | - | |||||||||||||||||||||||||
MML High Yield Fund, Class II | - | 516,361 | (25,002 | ) | 1,112 | (100 | ) | 492,371 | 50,970 | - | - | |||||||||||||||||||||||||
MML Income & Growth Fund, Initial Class | 7,974,747 | 220,094 | (768,683 | ) | 1,385,309 | (231,221 | ) | 8,580,246 | 880,025 | - | - | |||||||||||||||||||||||||
MML Inflation-Protected and Income Fund, Initial Class | 3,658,525 | 296,829 | (765,151 | ) | 241,487 | (28,136 | ) | 3,403,554 | 330,122 | 4,469 | - | |||||||||||||||||||||||||
MML International Equity Fund, Class II | 8,134,205 | 191,838 | (445,572 | ) | 1,081,066 | (20,796 | ) | 8,940,741 | 886,978 | - | - | |||||||||||||||||||||||||
MML Large Cap Growth Fund, Initial Class | 2,769,962 | 80,466 | (471,262 | ) | 575,599 | (17,891 | ) | 2,936,874 | 248,466 | - | - | |||||||||||||||||||||||||
MML Managed Bond Fund, Initial Class | 3,292,209 | 3,658,133 | (389,264 | ) | 319,696 | (19,137 | ) | 6,861,637 | 543,711 | 40,463 | - | |||||||||||||||||||||||||
MML Mid Cap Growth Fund, Initial Class | 8,024,717 | 1,315,998 | (541,656 | ) | 1,908,155 | 38,844 | 10,746,058 | 620,801 | - | - | ||||||||||||||||||||||||||
MML Mid Cap Value Fund, Initial Class | 7,508,175 | 207,248 | (739,434 | ) | 1,481,682 | (211,960 | ) | 8,245,711 | 752,346 | - | - | |||||||||||||||||||||||||
MML Short-Duration Bond Fund, Class II | 2,924,442 | 75,432 | (143,794 | ) | 55,081 | (3,789 | ) | 2,907,372 | 297,886 | 25,409 | - | |||||||||||||||||||||||||
MML Small Cap Growth Equity Fund, Initial Class | 1,389,492 | 302,338 | (149,937 | ) | 330,260 | 19,063 | 1,891,216 | 117,927 | - | - | ||||||||||||||||||||||||||
MML Small Company Value Fund, Class II | 3,274,681 | 197,097 | (244,563 | ) | 583,874 | (29,036 | ) | 3,782,053 | 232,885 | - | - | |||||||||||||||||||||||||
MML Small/Mid Cap Value Fund, Initial Class | 2,427,738 | 68,915 | (172,255 | ) | 366,542 | (26,908 | ) | 2,664,032 | 219,805 | - | - | |||||||||||||||||||||||||
MML Strategic Emerging Markets Fund, Class II | 6,760,669 | 388,859 | (444,281 | ) | 1,037,981 | 47,477 | 7,790,705 | 663,604 | - | - | ||||||||||||||||||||||||||
MML Total Return Bond Fund, Class II | 1,883,099 | 676,546 | (209,920 | ) | 148,029 | (1,851 | ) | 2,495,903 | 230,888 | - | - | |||||||||||||||||||||||||
Oppenheimer Global Multi-Alternatives Fund/VA,Non-Service Shares* | 12,794,289 | 171,040 | (13,252,567 | ) | 887,141 | (599,903 | ) | - | - | 171,040 | - | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 139,551,346 | $ | 31,794,183 | $ | (36,266,099 | ) | $ | 20,353,870 | $ | (730,873 | ) | $ | 154,702,427 | $ | 353,663 | $ | 1,394,680 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
# | Effective May 24, 2019, the fund is no longer advised by OFI Global Asset Management and, therefore, the fund is no longer affiliated. |
* | Fund advised by OFI Global Asset Management. |
47
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
8. | Indemnifications |
Under the Funds’ organizational documents, current and former Trustees and Officers are provided with specified rights to indemnification against liabilities arising in connection with the performance of their duties to the Funds, and shareholders are indemnified against personal liability for obligations of the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
9. | Subsequent Events |
In preparation of these financial statements, management has evaluated the events and transactions subsequent to June 30, 2019, through the date when the financial statements were issued, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Funds’ financial statements other than those disclosed below.
Tina Wilson resigned as President of the Trust effective as of August 9, 2019. Eric H. Wietsma was elected as President of the Trust effective August 9, 2019.
48
Table of Contents
A description of the policies and procedures that each Fund’s investment adviser uses to vote proxies relating to the Fund’s portfolio securities is available, without charge, upon request, by calling1-888-309-3539, and on the SEC’s EDGAR database on its website at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent12-month period ended June 30 is available, without charge, upon request, on the MassMutual website at http://www.massmutual.com/funds and on the SEC’s EDGAR database on its website at http://www.sec.gov.
Effective for periods ending on or after March 31, 2019, the Funds will file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on FormN-PORT. The Funds’ FormsN-PORT will be available on the SEC’s EDGAR database on its website at http://www.sec.gov. For periods ending prior to March 31, 2019, this information was filed on FormN-Q. The Funds’ FormsN-Q are available on the SEC’s EDGAR database on its website at http://www.sec.gov.
Trustees’ Approval of Investment Advisory Contracts
At their meetings in May and June 2019, the Contract Committee (the “Committee”) and the Trustees, including the Trustees who are not “interested persons” (as such term is defined in the 1940 Act) of the Trust or MML Advisers (the “Independent Trustees”), re-approved the existing advisory agreements (collectively, the “Contracts”) for each of the Conservative Allocation Fund, Balanced Allocation Fund, Moderate Allocation Fund, Growth Allocation Fund, Aggressive Allocation Fund, MML American Funds Growth Fund, MML American Funds International Fund, and MML American Funds Core Allocation Fund. In preparation for the meetings, the Trustees requested, and MML Advisers provided in advance, certain materials relevant to the consideration of the Contracts (the “Meeting Materials”). In all of their deliberations, the Trustees were advised by independent counsel.
The Committee received in advance of the meetings (i) a memorandum from MML Advisers discussing the nature and quality of the services it provides as investment adviser to the Funds; (ii) a profitability analysis prepared by MML Advisers; and (iii) a fee and performance study report (the “Third-Party Report”) with respect to each Fund prepared by an independent third-party vendor (the “Third-Party”). The Third-Party Report provided detailed comparative advisory fee, total expense, and performance information for each Fund to assist the Committee in its evaluation of the Contracts. The Committee also considered information presented to it throughout the year regarding MML Advisers.
The Committee considered the nature, scope, and quality of services MML Advisers provides to the Funds, including: (i) the financial condition, stability, and business strategy of MML Advisers; (ii) the capabilities of MML Advisers with respect to regulatory compliance and its ability to monitor compliance with the investment policies of the Funds; (iii) MML Advisers’ ability to provide investment oversight and provide for administrative and shareholder services to the Funds; and (iv) the experience and qualifications of the personnel of MML Advisers that perform, or oversee the performance of, the services provided to the Funds, and the needs of the Funds for administrative and shareholder services.
The Committee then reviewed and considered, for each Fund separately, the detailed information presented in the Third-Party Report regarding: (i) Fund expenses, including, among other things, both the Fund’s net advisory fee and total net expense ratio against peer funds; and (ii) the Fund’s relative performance (over various time periods against funds in its “category” and a benchmark index). In connection with the Committee’s review, MML Advisers provided commentary and analysis regarding each Fund’s expenses and performance and a recommendation as to the action to be taken by the Committee. The Committee noted that it had received in the Meeting Materials, or during the course of the past year, detailed information regarding MML Advisers’ ability to provide investment oversight and provide for administrative and shareholder services to the Funds. MML Advisers reviewed with the Committee in detail the work MML Advisers does in its oversight roles, the expertise it brings to these roles, the size of its teams, and the financial commitment it has made to provide those services. Throughout the discussion, MML Advisers responded to Committee members’ questions and provided additional information concerning each Fund.
49
Table of Contents
Other Information (Unaudited)(Continued)
The Committee reviewed the expense and performance information for each Fund. (References to any one- or three-year period below are to periods ended December 31, 2018. In all cases, the comparative expense information is that of a Fund’s “peer group” and the comparative performance information is that of a Fund’s “performance category.”)
The Committee considered that the total net expense ratios for the following Funds were within the top sixty percent of their peer groups. Those Funds include the Conservative Allocation Fund, MML American Funds Growth Fund, and MML American Funds Core Allocation Fund. Of those Funds, all had net advisory fees at or below the medians of their peers, or in the top sixty percent of their peer groups.
In the case of the Growth Allocation Fund, Balanced Allocation Fund, Moderate Allocation Fund, and MML American Funds International Fund, the Committee considered that each Fund had a total net expense ratio outside the top sixty percent of their peer groups, and, in the case of Aggressive Allocation Fund, in the 84th comparative percentile of its peer group, but a net advisory fee at or below the peer group median.
The Committee determined on the basis of these factors that the expenses of those Funds were consistent with the continuation of their advisory agreements.
The Committee considered that the following Funds achieved one- and three-year investment performance above the medians of their performance categories. Those included the MML American Funds International Fund, MML American Funds Growth Fund, and MML American Funds Core Allocation Fund. In addition, the Committee considered that the Conservative Allocation Fund and Moderate Allocation Fund both experienced three-year investment performance outside the top sixty percent of their performance categories, but experienced improved performance for the one-year period, in each case above the median of their performance categories.
The Committee considered that each of the Growth Allocation Fund, Aggressive Allocation Fund, and Balanced Allocation Fund had achieved favorable three-year relative performance, but had experienced less favorable one-year performance. The Committee took into account MML Advisers’ continued confidence in the Funds’ asset allocation strategies over the long term.The Committee also reviewed and considered information included in the Meeting Materials, or discussed at the meeting and during the course of the year, concerning economies of scale and the profitability of MML Advisers’ advisory relationship with the various Funds, including: (i) a description of MML Advisers’ revenues from the Funds (including advisory fees and administrative and shareholder services fees, as applicable) and the expense allocation methodology employed by MML Advisers; and (ii) profitability information for each individual Fund. The discussions included consideration of the intangible benefits derived by MML Advisers and its affiliates resulting from their relationships with the Funds and any so-called “fallout benefits” to MML Advisers (which were not considered to be substantial in any event), such as any reputational value derived from serving as investment adviser to the Funds.
Prior to the votes being taken to approve the Contracts, the Committee met separately in executive session to discuss the appropriateness of such contracts. The Committee weighed the foregoing matters in light of the advice given to them by their independent legal counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Committee did not identify any single matter as all-important or controlling. The foregoing summary does not detail all of the matters considered.
As to each of the Funds, the Committee concluded that: (i) overall, it was satisfied with the nature, extent, and quality of services provided, and expected to be provided in the future, under the Contracts, including the level of MML Advisers’ oversight of each Fund; (ii) MML Advisers’ levels of profitability from its relationship with the various Funds are not excessive and the advisory fees payable under the advisory agreements and each Fund’s total net expenses are fair and reasonable; (iii) either the relative or absolute performance of a Fund (in each case, taking into account the applicable investment strategy and risk profile of the Fund), or the steps MML Advisers has proposed in respect of the underperformance of a Fund, are sufficient to warrant continuation of the Contracts for each of the Funds; and (iv) the terms of the Contracts are fair and reasonable with respect to each Fund and are in the best interests of each Fund’s shareholders.
50
Table of Contents
Other Information (Unaudited)(Continued)
Expense Examples:
The following information is in regards to expenses for the six months ended June 30, 2019:
As a shareholder of the Funds, you incur ongoing costs, including advisory fees, distribution and/or service(12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested for the six months ended June 30, 2019.
Actual Expenses:
The first four columns of the table below provide information about actual account values and actual expenses. You may use this information, 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 under the heading entitled “Operating Expenses Incurred” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes:
The last two columns of the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the 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. Therefore, the last two 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.
Beginning Value | Annualized Expense Ratio | Ending Value (Based on Actual Returns and Expenses) | Operating Expenses Incurred* | Ending Value (Based on Hypothetical Returns and Expenses) | Operating Expenses Incurred* | |||||||||||||||||||
Conservative Allocation Fund | ||||||||||||||||||||||||
Initial Class | $ | 1,000 | 0.13 | % | $ | 1,101.80 | $ | 0.67 | $ | 1,023.90 | $ | 0.65 | ||||||||||||
Service Class | 1,000 | 0.38 | % | 1,100.80 | 1.96 | 1,022.70 | 1.88 | |||||||||||||||||
Balanced Allocation Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.13 | % | 1,111.80 | 0.67 | 1,023.90 | 0.65 | |||||||||||||||||
Service Class | 1,000 | 0.38 | % | 1,110.70 | 1.97 | 1,022.70 | 1.88 | |||||||||||||||||
Moderate Allocation Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.12 | % | 1,122.60 | 0.62 | 1,023.90 | 0.60 | |||||||||||||||||
Service Class | 1,000 | 0.37 | % | 1,120.80 | 1.92 | 1,022.70 | 1.84 | |||||||||||||||||
Growth Allocation Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.12 | % | 1,138.90 | 0.63 | 1,023.90 | 0.60 | |||||||||||||||||
Service Class | 1,000 | 0.37 | % | 1,136.50 | 1.94 | 1,022.70 | 1.84 | |||||||||||||||||
Aggressive Allocation Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.16 | % | 1,154.30 | 0.85 | 1,023.70 | 0.79 | |||||||||||||||||
Service Class | 1,000 | 0.41 | % | 1,153.40 | 2.16 | 1,022.50 | 2.03 |
51
Table of Contents
Other Information (Unaudited)(Continued)
Beginning Value | Annualized Expense Ratio | Ending Value (Based on Actual Returns and Expenses) | Operating Expenses Incurred* | Ending Value (Based on Hypothetical Returns and Expenses) | Operating Expenses Incurred* | |||||||||||||||||||
MML American Funds Growth Fund | ||||||||||||||||||||||||
Service Class I** | $ | 1,000 | 1.03 | % | $ | 1,163.70 | $ | 5.46 | $ | 1,019.50 | $ | 5.10 | ||||||||||||
MML American Funds International Fund | ||||||||||||||||||||||||
Service Class I** | 1,000 | 1.24 | % | 1,144.40 | 6.52 | 1,018.40 | 6.14 | |||||||||||||||||
MML American Funds Core Allocation Fund | ||||||||||||||||||||||||
Service Class I | 1,000 | 0.71 | % | 1,110.20 | 3.67 | 1,021.00 | 3.52 |
* | Expenses are calculated using the annualized expense ratio for the six months ended June 30, 2019, multiplied by the average account value over the period, multiplied by 179 days in the period, divided by 365 days in the year, unless stated otherwise. The annualized expense ratio does not reflect expenses deducted under the variable life insurance or variable annuity contract through which the Funds are invested in. Inclusion of these expenses would increase the annualized expense ratios shown. |
** | The annualized expense ratio reflects the expenses of both the Feeder Fund and the Master Fund in which it invests. |
52
Table of Contents
Underwriter:
MML Distributors, LLC 100 Bright Meadow Blvd. Enfield, Connecticut 06082-1981 |
© 2019 Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001. All rights reserved. www.massmutual.com. Investment Adviser: MML Investment Advisers, LLC | RS-45238-02 |
Table of Contents
Table of Contents
1 | ||||
3 | ||||
Portfolio of Investments (Unaudited) | ||||
22 | ||||
26 | ||||
30 | ||||
38 | ||||
40 | ||||
42 | ||||
44 | ||||
46 | ||||
48 | ||||
50 | ||||
53 | ||||
55 | ||||
57 | ||||
66 | ||||
70 | ||||
73 | ||||
77 | ||||
81 | ||||
84 | ||||
Statements of Assets and Liabilities (Unaudited) | 96 | |||
Statements of Operations (Unaudited) | 108 | |||
114 | ||||
127 | ||||
Notes to Financial Statements (Unaudited) | 146 | |||
Other Information (Unaudited) | ||||
178 | ||||
178 | ||||
178 | ||||
181 |
This material must be preceded or accompanied by a current prospectus (or summary prospectus, if available) for the MML Series Investment Fund. Investors should consider a Fund’s investment objective, risks, and charges and expenses carefully before investing. This and other information about the investment company is available in the prospectus (or summary prospectus, if available). Read it carefully before investing.
Table of Contents
To Our
Shareholders
Eric Wietsma
“As always, we recommend that you work with a personal financial professional, who can help you define an investment strategy that aligns with your comfort level with respect to market volatility, how long you have to save and invest, and your specific financial goals.”
June 30, 2019
Welcome to the MML Series Investment Fund Semiannual Report, covering thesix-month period from January 1, 2019 to June 30, 2019.
Market Highlights
• | During the period, U.S. stock prices enjoyed some of their best returns for the first six months since the late 1990s. |
• | Data throughout the period pointed to more uneven global economic growth with markets only rebounding after assurances by the Federal Reserve Board (the Fed) that it would hold off on raising interest rates in 2019. |
• | Developed-market and emerging-market foreign stocks trailed U.S. stock returns for the period, though both developed-market and emerging-market foreign stocks were up for the period and delivered solid returns. |
• | U.S. bonds benefited from declining U.S. Treasury yields and the Fed’s pause in rate hikes. As a result, bond markets enjoyed broad positive returns for the period. |
Market Commentary
Following one of the worst fourth quarters they had ever experienced, stock markets rebounded to enjoy some of the best first half returns since the late 1990s. The rebound gained momentum during the first quarter on expectations that the Fed would not raise interest rates in 2019. The previous year had seen four rate hikes. The rebound accelerated through turbulence caused by ongoing trade tensions and geopolitical sabre rattling as markets came to expect that the Fed might even reduce the federal funds rate (the interest rate that banks and financial institutions charge each other for borrowing funds overnight). By the end of the period, the market anticipated two possible rate reductions in what remains of 2019 and stock market growth accelerated to new records in major stock indexes.
Global growth remains positive, but less synchronized and more restrained than in the recent past. We believe the U.S. economy is showing signs that it may be in the late stages of the current business cycle. For example, a tightening labor market yields low unemployment rates but tends to drive up wage growth, putting pressure on corporate earnings. In addition, declining claims for unemployment benefits may point to a nearer plateau in employment growth. Lastly, we believe recent softness in housing data tends to be consistent with late cycle trends. While talk of recession naturally follows evidence of late cycle indicators, we agree with the general consensus that the risk of near-term recession appears to be low.
The broad market S&P 500® Index* delivered a strong 18.54% gain for the first half of 2019. The technology-heavy NASDAQ Composite Index outperformed for the same period, returning 21.33% growth. The Dow Jones Industrial Average is also up 14.99% so far this year. Small- andmid-cap stocks slightly underperformed their larger peers and value stocks widely underperformed their
* | Indexes referenced, other than the MSCI Indexes, are unmanaged, do not incur fees, expenses, or taxes, and cannot be purchased directly for investment. The MSCI Indexes are unmanaged, do not incur fees or expenses, and cannot be purchased directly for investment. |
(Continued)
1
Table of Contents
MML Series Investment Fund – President’s Letter to Shareholders (Unaudited)(Continued)
growth peers. The positive momentum carried broadly across all market sectors for the period with all sectors delivering double-digit returns. The technology, communications services, and industrials sectors led during the period, while healthcare, utilities, and energy brought up the rear.
Developed international stock markets, as measured by the MSCI EAFE® Index, trailed their domestic peers, but delivered 14.03% returns for the first half of 2019. Central banks voiced unanimous willingness to continue monetary stimulus in support of the current expansion. In addition, the G20 summit towards the end of June seemed to encourage confidence in a resolution, or at leastde-escalation, of trade tensions between the U.S. and China. Emerging-market stock markets, as measured by the MSCI Emerging Markets Index, fared a little worse than developed markets, returning 10.58% for the period.
The Fed once again asserted its influence on markets during this reporting period. This time it was not what they did, but what they did not do that helped. The year started with an expectation of multiple rate hikes in 2019, following the trend set in 2018. As markets began to show signs of bogging down, Fed chair Jerome Powell expressed the Fed’s intent to support ongoing growth through delaying planned rate hikes. Market concerns eased when the Fed set expectations for no more rate hikes in 2019. Optimism returned as the options market began forecasting the possibilities of rate cuts before the end of the year.
The Fed’s inaction, along with prospects of dropping rates, boosted bond markets during the first half of 2019. Bond yields fell, lifting returns on high-quality fixed income assets. The10-year U.S. Treasury bond ended June at 2.00%, down .66% from the first of the year. Since falling yields drive bond prices up, the Bloomberg Barclays U.S. Aggregate Bond Index ended the period with a positive return of 6.11%. Investment-grade and high-yield corporate bonds also fared well in the falling yield environment. The Bloomberg Barclays U.S. Corporate Bond Index, which tracks investment-grade corporate bonds, ended the period up 9.85%. The Bloomberg Barclays U.S. Corporate High Yield Index fared slightly better, ending the period up 9.94%.
Review and maintain your strategy
MassMutual remains committed to helping people secure their long-term future and protect the ones they love. While investors enjoyed broad positive returns over the first half of 2019, we’d like to remind you that, as a retirement investor, it’s important to maintain perspective and have realistic expectations about the future performance of your investment accounts. Optimism about continued economic expansion should be balanced with the constant reminder that past performance does not guarantee future results. Our multi-managed andsub-advised mutual funds tap into the deep expertise of seasoned asset managers who are committed to helping long-term investors prepare for retirement – in all market conditions. As always, we recommend the value a personal financial professional can bring you by helping you define an investment strategy that aligns with your risk tolerance comfort level, how long you have to save and invest, and your specific financial goals. Thank you for your confidence in MassMutual.
Sincerely,
Eric Wietsma
President
© 2019 Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA. All rights reserved. www.massmutual.com Underwriter: MML Distributors, LLC. (MMLD) Member FINRA and SIPC (www.FINRA.org and www.SIPC.org), 100 Bright Meadow Blvd., Enfield, CT 06082. MMLD is a wholly-owned subsidiary of MassMutual. Investment advisory services provided to the Funds by MML Investment Advisers, LLC (MML Advisers), a wholly-owned subsidiary of MassMutual. The information provided is the opinion of MML Advisers as of 7/1/19 and is subject to change without notice. It is not to be construed as tax, legal, or investment advice. Of course, past performance does not guarantee future results.
2
Table of Contents
What is the investment approach of MML Blue Chip Growth Fund, and who is the Fund’s subadviser?
The Fund seeks long-term capital growth. Income is a secondary objective. Under normal circumstances, the Fund invests at least 80% of net assets (plus the amount of any borrowings for investment purposes) in the common stocks of large- andmedium-sized blue chip growth companies. The Fund’s subadviser currently defines blue chip growth companies to mean firms that, in its view, are well-established in their industries and have the potential for above-average earnings growth. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).
MML Blue Chip Growth Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Amazon.com, Inc. | 9.8 | % | ||
Microsoft Corp. | 5.9 | % | ||
Facebook, Inc. Class A | 5.8 | % | ||
Alphabet, Inc. Class C | 3.7 | % | ||
Visa, Inc. Class A | 3.6 | % | ||
The Boeing Co. | 3.4 | % | ||
Alibaba Group Holding Ltd. Sponsored ADR | 3.3 | % | ||
Mastercard, Inc. Class A | 3.1 | % | ||
UnitedHealth Group, Inc. | 2.4 | % | ||
Tencent Holdings Ltd. | 2.3 | % | ||
|
| |||
43.3 | % | |||
|
|
MML Blue Chip Growth Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Communications | 30.3 | % | ||
Consumer,Non-cyclical | 22.3 | % | ||
Technology | 19.2 | % | ||
Financial | 11.6 | % | ||
Industrial | 8.3 | % | ||
Consumer, Cyclical | 6.9 | % | ||
Basic Materials | 0.5 | % | ||
Energy | 0.4 | % | ||
Utilities | 0.4 | % | ||
Mutual Funds | 0.0 | % | ||
|
| |||
Total Long-Term Investments | 99.9 | % | ||
Short-Term Investments and Other Assets and Liabilities | 0.1 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
3
Table of Contents
MML Equity Income Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Equity Income Fund, and who is the Fund’s subadviser?
The Fund seeks dividend income and long-term capital growth by investing primarily in common stocks, with an emphasis on large-capitalization companies that have a strong track record of paying dividends or that the Fund’s subadviser believes to be undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in common stocks. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).
MML Equity Income Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Wells Fargo & Co. | 3.5 | % | ||
JP Morgan Chase & Co. | 3.1 | % | ||
QUALCOMM, Inc. | 2.3 | % | ||
The Southern Co. | 2.3 | % | ||
Total SA | 2.1 | % | ||
Exxon Mobil Corp. | 2.1 | % | ||
Microsoft Corp. | 2.1 | % | ||
Pfizer, Inc. | 2.0 | % | ||
Johnson & Johnson | 2.0 | % | ||
Verizon Communications, Inc. | 2.0 | % | ||
|
| |||
23.5 | % | |||
|
|
MML Equity Income Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Financial | 26.1 | % | ||
Consumer,Non-cyclical | 21.1 | % | ||
Energy | 9.6 | % | ||
Industrial | 9.5 | % | ||
Communications | 8.1 | % | ||
Utilities | 8.0 | % | ||
Technology | 6.8 | % | ||
Consumer, Cyclical | 5.3 | % | ||
Basic Materials | 3.9 | % | ||
Mutual Funds | 0.1 | % | ||
|
| |||
Total Long-Term Investments | 98.5 | % | ||
Short-Term Investments and Other Assets and Liabilities | 1.5 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
4
Table of Contents
MML Equity Index Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Equity Index Fund, and who is the Fund’s subadviser?
The Fund’s investment objective is to provide investment results that correspond to the price and yield performance of publicly traded common stocks in the aggregate as represented by the S&P 500® Index* (the “Index”). Under normal circumstances, the Fund invests at least 80% (and, typically, substantially all) of its net assets (plus the amount of any borrowings for investment purposes) in the equity securities of companies included within the Index. The Fund’s subadviser is Northern Trust Investments, Inc. (NTI).
MML Equity Index Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Microsoft Corp. | 4.2 | % | ||
Apple, Inc. | 3.5 | % | ||
Amazon.com, Inc. | 3.2 | % | ||
Facebook, Inc. Class A | 1.9 | % | ||
Berkshire Hathaway, Inc. Class B | 1.7 | % | ||
Johnson & Johnson | 1.5 | % | ||
JP Morgan Chase & Co. | 1.5 | % | ||
Alphabet, Inc. Class C | 1.3 | % | ||
Exxon Mobil Corp. | 1.3 | % | ||
Alphabet, Inc. Class A | 1.3 | % | ||
|
| |||
21.4 | % | |||
|
|
MML Equity Index Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Consumer,Non-cyclical | 21.8 | % | ||
Financial | 17.8 | % | ||
Technology | 16.6 | % | ||
Communications | 14.9 | % | ||
Industrial | 9.2 | % | ||
Consumer, Cyclical | 8.3 | % | ||
Energy | 5.0 | % | ||
Utilities | 3.3 | % | ||
Basic Materials | 2.2 | % | ||
Mutual Funds | 0.0 | % | ||
|
| |||
Total Long-Term Investments | 99.1 | % | ||
Short-Term Investments and Other Assets and Liabilities | 0.9 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
* | The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by MML Advisers. Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by MML Advisers. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index. |
5
Table of Contents
MML Focused Equity Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Focused Equity Fund, and who is the Fund’s subadviser?
The Fund seeks growth of capital over the long-term by investing primarily in equity securities of U.S. companies that the Fund’s subadviser believes are financially sound, valued conservatively by the market, and have improving prospects. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities. The Fund isnon-diversified, which means that it may hold larger positions in a smaller number of stocks than a diversified fund. The Fund’s subadviser is Wellington Management Company LLP (Wellington Management).
MML Focused Equity Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
McDonald’s Corp. | 5.1 | % | ||
The Coca-Cola Co. | 5.0 | % | ||
UnitedHealth Group, Inc. | 4.9 | % | ||
Medtronic PLC | 4.9 | % | ||
Chubb Ltd. | 4.5 | % | ||
NIKE, Inc. Class B | 4.4 | % | ||
Diageo PLC | 4.3 | % | ||
PepsiCo, Inc. | 4.2 | % | ||
Public Storage | 4.0 | % | ||
Colgate-Palmolive Co. | 4.0 | % | ||
|
| |||
45.3 | % | |||
|
|
MML Focused Equity Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Consumer,Non-cyclical | 36.5 | % | ||
Financial | 24.1 | % | ||
Consumer, Cyclical | 15.3 | % | ||
Industrial | 11.9 | % | ||
Technology | 6.5 | % | ||
Basic Materials | 3.8 | % | ||
|
| |||
Total Long-Term Investments | 98.1 | % | ||
Short-Term Investments and Other Assets and Liabilities | 1.9 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
6
Table of Contents
MML Foreign Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Foreign Fund, and who is the Fund’s subadviser?
The Fund seeks long-term capital growth by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in investments of issuers located outside of the U.S., including those in emerging markets. Under normal market conditions, the Fund invests predominantly in equity securities, primarily to predominantly common stocks, and, while there are no set percentage targets, the Fund invests predominantly in large- to medium-capitalization companies with market capitalization values greater than $2 billion and may invest a portion in smaller companies. The Fund’s subadviser is Templeton Investment Counsel, LLC (Templeton).
MML Foreign Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
BNP Paribas SA | 3.0 | % | ||
Standard Chartered PLC | 3.0 | % | ||
Samsung Electronics Co. Ltd. | 2.9 | % | ||
E.ON SE | 2.7 | % | ||
ING Groep NV | 2.6 | % | ||
CRH PLC | 2.5 | % | ||
Veolia Environnement SA | 2.5 | % | ||
Total SA | 2.4 | % | ||
Royal Dutch Shell PLC Class B | 2.4 | % | ||
Deutsche Telekom AG Registered | 2.4 | % | ||
|
| |||
26.4 | % | |||
|
|
MML Foreign Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Financial | 20.8 | % | ||
Consumer,Non-cyclical | 19.3 | % | ||
Communications | 12.2 | % | ||
Energy | 12.2 | % | ||
Industrial | 8.2 | % | ||
Technology | 7.0 | % | ||
Basic Materials | 6.4 | % | ||
Utilities | 5.1 | % | ||
Consumer, Cyclical | 4.0 | % | ||
Diversified | 1.5 | % | ||
Mutual Funds | 0.7 | % | ||
|
| |||
Total Long-Term Investments | 97.4 | % | ||
Short-Term Investments and Other Assets and Liabilities | 2.6 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
7
Table of Contents
MML Fundamental Growth Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Fundamental Growth Fund, and who is the Fund’s subadviser?
The Fund seeks long-term growth of capital by investing primarily in domestic equity securities that the Fund’s subadviser believes offer the potential for long-term growth. The Fund’s subadviser is Wellington Management Company LLP (Wellington Management).
MML Fundamental Growth Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Microsoft Corp. | 9.0 | % | ||
Amazon.com, Inc. | 6.9 | % | ||
Apple, Inc. | 4.4 | % | ||
Alphabet, Inc. Class C | 4.3 | % | ||
Visa, Inc. Class A | 3.5 | % | ||
Facebook, Inc. Class A | 3.0 | % | ||
Mastercard, Inc. Class A | 2.8 | % | ||
PayPal Holdings, Inc. | 2.1 | % | ||
The Home Depot, Inc. | 1.9 | % | ||
S&P Global, Inc. | 1.9 | % | ||
|
| |||
39.8 | % | |||
|
|
MML Fundamental Growth Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Technology | 26.1 | % | ||
Consumer,Non-cyclical | 23.9 | % | ||
Communications | 20.7 | % | ||
Financial | 11.3 | % | ||
Industrial | 7.9 | % | ||
Consumer, Cyclical | 7.8 | % | ||
Basic Materials | 1.6 | % | ||
|
| |||
Total Long-Term Investments | 99.3 | % | ||
Short-Term Investments and Other Assets and Liabilities | 0.7 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
8
Table of Contents
MML Fundamental Value Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Fundamental Value Fund, and who is the Fund’s subadviser?
The Fund seeks long-term total return by investing primarily in equity securities of issuers that the Fund’s subadviser believes are undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities, with a focus on companies with large market capitalizations (which the subadviser believes are generally above $1 billion). The Fund’s subadviser is Boston Partners Global Investors, Inc. (Boston Partners), which replaced Wellington Management Company LLP effective February 5, 2019.
MML Fundamental Value Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Berkshire Hathaway, Inc. Class B | 4.6 | % | ||
Bank of America Corp. | 3.4 | % | ||
Johnson & Johnson | 3.4 | % | ||
Comcast Corp. Class A | 2.9 | % | ||
Verizon Communications, Inc. | 2.4 | % | ||
The Procter & Gamble Co. | 2.4 | % | ||
Citigroup, Inc. | 2.3 | % | ||
Chevron Corp. | 2.3 | % | ||
Cisco Systems, Inc. | 2.2 | % | ||
Pfizer, Inc. | 2.2 | % | ||
|
| |||
28.1 | % | |||
|
|
MML Fundamental Value Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Financial | 25.5 | % | ||
Consumer,Non-cyclical | 22.8 | % | ||
Communications | 12.6 | % | ||
Industrial | 10.8 | % | ||
Energy | 9.9 | % | ||
Consumer, Cyclical | 6.5 | % | ||
Basic Materials | 5.2 | % | ||
Technology | 3.5 | % | ||
Utilities | 0.7 | % | ||
|
| |||
Total Long-Term Investments | 97.5 | % | ||
Short-Term Investments and Other Assets and Liabilities | 2.5 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
9
Table of Contents
MML Global Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Global Fund, and who is the Fund’s subadviser?
The Fund seeks long-term capital appreciation by investing primarily in the equity securities of U.S. and foreign companies, including companies in developed and emerging markets. The Fund may invest a significant percentage of its assets in issuers in a single industry, sector, country, or region. The Fund’s subadviser is Massachusetts Financial Services Company (MFS).
MML Global Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Thermo Fisher Scientific, Inc. | 3.3 | % | ||
Visa, Inc. Class A | 3.2 | % | ||
Medtronic PLC | 2.9 | % | ||
Comcast Corp. Class A | 2.9 | % | ||
Nestle SA Registered | 2.8 | % | ||
LVMH Moet Hennessy Louis Vuitton SE | 2.7 | % | ||
Accenture PLC Class A | 2.6 | % | ||
Honeywell International, Inc. | 2.5 | % | ||
Schneider Electric SE | 2.3 | % | ||
The Walt Disney Co. | 2.3 | % | ||
|
| |||
27.5 | % | |||
|
|
MML Global Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Consumer,Non-cyclical | 37.4 | % | ||
Industrial | 19.0 | % | ||
Financial | 12.2 | % | ||
Communications | 8.6 | % | ||
Consumer, Cyclical | 7.8 | % | ||
Technology | 7.5 | % | ||
Basic Materials | 6.2 | % | ||
Energy | 0.6 | % | ||
|
| |||
Total Long-Term Investments | 99.3 | % | ||
Short-Term Investments and Other Assets and Liabilities | 0.7 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
10
Table of Contents
MML Growth & Income Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Growth & Income Fund, and who is the Fund’s subadviser?
The Fund seeks capital appreciation and income by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities and equity-related securities, including convertible securities, preferred stocks, options, and warrants, of U.S. companies with market capitalizations at the time of purchase greater than $1 billion. The Fund’s subadviser is Massachusetts Financial Services Company (MFS).
MML Growth & Income Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Visa, Inc. Class A | 3.3 | % | ||
Alphabet, Inc. Class A | 3.0 | % | ||
American Tower Corp. | 2.8 | % | ||
JP Morgan Chase & Co. | 2.7 | % | ||
Mastercard, Inc. Class A | 2.5 | % | ||
Johnson & Johnson | 2.5 | % | ||
Danaher Corp. | 2.5 | % | ||
Medtronic PLC | 2.5 | % | ||
Thermo Fisher Scientific, Inc. | 2.4 | % | ||
Fidelity National Information Services, Inc. | 2.2 | % | ||
|
| |||
26.4 | % | |||
|
|
MML Growth & Income Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Consumer,Non-cyclical | 24.9 | % | ||
Financial | 21.4 | % | ||
Technology | 16.4 | % | ||
Communications | 9.8 | % | ||
Consumer, Cyclical | 9.6 | % | ||
Industrial | 9.5 | % | ||
Energy | 4.5 | % | ||
Basic Materials | 2.9 | % | ||
Utilities | 0.5 | % | ||
|
| |||
Total Long-Term Investments | 99.5 | % | ||
Short-Term Investments and Other Assets and Liabilities | 0.5 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
11
Table of Contents
MML Income & Growth Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Income & Growth Fund, and who is the Fund’s subadviser?
The Fund seeks long-term total return and current income by investing primarily in equity securities of issuers that the Fund’s subadviser believes are undervalued. Although the Fund may invest in companies of any size, the Fund will tend to focus on companies with large market capitalizations (which the Fund’s subadviser believes are generally above $2 billion). The Fund’s subadviser is Barrow, Hanley, Mewhinney & Strauss, LLC (Barrow Hanley).
MML Income & Growth Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Linde PLC | 2.8 | % | ||
Dominion Energy, Inc. | 2.6 | % | ||
General Electric Co. | 2.5 | % | ||
Exelon Corp. | 2.5 | % | ||
US Bancorp | 2.4 | % | ||
Wells Fargo & Co. | 2.3 | % | ||
Comcast Corp. Class A | 2.2 | % | ||
Phillips 66 | 2.2 | % | ||
American Express Co. | 2.2 | % | ||
Medtronic PLC | 2.2 | % | ||
|
| |||
23.9 | % | |||
|
|
MML Income & Growth Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Financial | 23.0 | % | ||
Consumer,Non-cyclical | 12.7 | % | ||
Industrial | 12.3 | % | ||
Energy | 11.9 | % | ||
Consumer, Cyclical | 11.0 | % | ||
Technology | 9.3 | % | ||
Utilities | 7.1 | % | ||
Basic Materials | 6.0 | % | ||
Communications | 5.6 | % | ||
|
| |||
Total Long-Term Investments | 98.9 | % | ||
Short-Term Investments and Other Assets and Liabilities | 1.1 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
12
Table of Contents
MML International Equity Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML International Equity Fund, and who is the Fund’s subadviser?
The Fund seeks long-term capital growth by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities ofnon-U.S. companies located innon-U.S. markets throughout the world, including emerging markets. The Fund may invest a substantial portion of its assets in just one region or country and may, but does not currently intend to, invest in U.S. companies. Ordinarily, the Fund’s portfolio typically holds thirty to sixty stocks and the Fund invests in the securities of at least five countries outside the U.S. The Fund’s subadviser is Harris Associates L.P. (Harris).
MML International Equity Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
BNP Paribas SA | 4.0 | % | ||
Bayer AG Registered | 3.7 | % | ||
Intesa Sanpaolo SpA | 3.5 | % | ||
Credit Suisse Group AG Registered | 3.4 | % | ||
Daimler AG Registered | 3.3 | % | ||
Glencore PLC | 3.3 | % | ||
Continental AG | 3.2 | % | ||
CNH Industrial NV | 3.0 | % | ||
Bayerische Motoren Werke AG | 2.8 | % | ||
Hennes & Mauritz AB Class B | 2.7 | % | ||
|
| |||
32.9 | % | |||
|
|
MML International Equity Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Consumer, Cyclical | 25.1 | % | ||
Financial | 24.9 | % | ||
Industrial | 13.1 | % | ||
Consumer,Non-cyclical | 11.4 | % | ||
Communications | 11.1 | % | ||
Basic Materials | 5.3 | % | ||
Technology | 4.2 | % | ||
Energy | 1.2 | % | ||
|
| |||
Total Long-Term Investments | 96.3 | % | ||
Short-Term Investments and Other Assets and Liabilities | 3.7 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
13
Table of Contents
MML Large Cap Growth Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Large Cap Growth Fund, and who is the Fund’s subadviser?
The Fund seeks long-term capital appreciation by investing primarily in large-capitalization companies that the Fund’s subadviser believes offer the potential for long-term growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the common stocks of companies whose market capitalizations at the time of purchase are within the market capitalization range of companies included in the Russell 1000® Growth Index. The Fund’s subadviser is Loomis, Sayles & Company, L.P. (Loomis Sayles).
MML Large Cap Growth Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Visa, Inc. Class A | 6.9 | % | ||
Amazon.com, Inc. | 6.8 | % | ||
Facebook, Inc. Class A | 6.1 | % | ||
Alibaba Group Holding Ltd. Sponsored ADR | 5.2 | % | ||
Oracle Corp. | 5.1 | % | ||
Autodesk, Inc. | 4.2 | % | ||
Microsoft Corp. | 3.7 | % | ||
Starbucks Corp. | 3.5 | % | ||
Monster Beverage Corp. | 3.4 | % | ||
QUALCOMM, Inc. | 3.1 | % | ||
|
| |||
48.0 | % | |||
|
|
MML Large Cap Growth Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Communications | 28.1 | % | ||
Consumer,Non-cyclical | 26.1 | % | ||
Technology | 20.9 | % | ||
Financial | 10.2 | % | ||
Consumer, Cyclical | 6.9 | % | ||
Industrial | 5.3 | % | ||
Energy | 1.5 | % | ||
|
| |||
Total Long-Term Investments | 99.0 | % | ||
Short-Term Investments and Other Assets and Liabilities | 1.0 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
14
Table of Contents
MML Managed Volatility Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Managed Volatility Fund, and who is the Fund’s subadviser?
The Fund seeks to capture the majority of the returns associated with equity market investments, while exposing investors to less risk than other equity investments. Under normal circumstances, the Fund invests in a broadly diversified portfolio of common stocks, while also selling index call options and purchasing index put options. The Fund’s stock portfolio will have approximately 500 stocks, and seeks to duplicate the investment composition and return of the S&P 500® Index* (the “Index”) by holding each stock included in the Index in approximately the same proportion as each stock’s relative weighting in the Index. The Fund’s subadviser is Gateway Investment Advisers, LLC (Gateway).
MML Managed Volatility Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Microsoft Corp. | 4.2 | % | ||
Apple, Inc. | 3.5 | % | ||
Amazon.com, Inc. | 3.2 | % | ||
Facebook, Inc. Class A | 1.9 | % | ||
Berkshire Hathaway, Inc. Class B | 1.7 | % | ||
Johnson & Johnson | 1.5 | % | ||
JP Morgan Chase & Co. | 1.5 | % | ||
Alphabet, Inc. Class C | 1.3 | % | ||
Exxon Mobil Corp. | 1.3 | % | ||
Alphabet, Inc. Class A | 1.3 | % | ||
|
| |||
21.4 | % | |||
|
|
MML Managed Volatility Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Consumer,Non-cyclical | 21.9 | % | ||
Financial | 18.2 | % | ||
Technology | 16.6 | % | ||
Communications | 15.0 | % | ||
Industrial | 9.2 | % | ||
Consumer, Cyclical | 8.3 | % | ||
Energy | 5.0 | % | ||
Utilities | 3.3 | % | ||
Basic Materials | 2.2 | % | ||
Mutual Funds | 0.0 | % | ||
|
| |||
Total Long-Term Investments | 99.7 | % | ||
Short-Term Investments and Other Assets and Liabilities | 0.3 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
* | The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by MML Advisers. Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by MML Advisers. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index. |
15
Table of Contents
MML Mid Cap Growth Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Mid Cap Growth Fund, and who is the Fund’s subadviser?
The Fund seeks long-term capital appreciation by investing primarily in equity securities ofmid-capitalization companies that the Fund’s subadviser believes offer the potential for above-average earnings growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in a broadly diversified portfolio of common stocks ofmid-cap companies whose earnings the subadviser expects to grow at a faster rate than the average company. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).
MML Mid Cap Growth Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Teleflex, Inc. | 2.4 | % | ||
The Cooper Cos., Inc. | 2.2 | % | ||
Ball Corp. | 1.9 | % | ||
Hologic, Inc. | 1.8 | % | ||
L3Harris Technologies, Inc. | 1.7 | % | ||
Textron, Inc. | 1.6 | % | ||
Agilent Technologies, Inc. | 1.6 | % | ||
Microchip Technology, Inc. | 1.5 | % | ||
IAC/InterActiveCorp | 1.5 | % | ||
Keysight Technologies, Inc. | 1.5 | % | ||
|
| |||
17.7 | % | |||
|
|
MML Mid Cap Growth Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Consumer,Non-cyclical | 29.1 | % | ||
Industrial | 19.7 | % | ||
Consumer, Cyclical | 15.3 | % | ||
Technology | 11.9 | % | ||
Financial | 7.4 | % | ||
Communications | 3.6 | % | ||
Energy | 3.0 | % | ||
Basic Materials | 2.7 | % | ||
Utilities | 1.8 | % | ||
Mutual Funds | 0.8 | % | ||
|
| |||
Total Long-Term Investments | 95.3 | % | ||
Short-Term Investments and Other Assets and Liabilities | 4.7 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
16
Table of Contents
MML Mid Cap Value Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Mid Cap Value Fund, and who is the Fund’s subadviser?
The Fund seeks long-term capital growth. Income is a secondary objective. The Fund invests primarily in equity securities ofmid-capitalization companies that the Fund’s subadviser believes offer prospects for long-term capital growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities ofmedium-size companies. The Fund’s subadviser is American Century Investment Management, Inc. (American Century).
MML Mid Cap Value Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
iShares RussellMid-Cap Value ETF | 3.2 | % | ||
Northern Trust Corp. | 3.0 | % | ||
Zimmer Biomet Holdings, Inc. | 2.9 | % | ||
Hubbell, Inc. | 2.4 | % | ||
BB&T Corp. | 2.2 | % | ||
Xcel Energy, Inc. | 2.1 | % | ||
Weyerhaeuser Co. | 2.0 | % | ||
Emerson Electric Co. | 1.7 | % | ||
Applied Materials, Inc. | 1.7 | % | ||
Southwest Airlines Co. | 1.5 | % | ||
|
| |||
22.7 | % | |||
|
|
MML Mid Cap Value Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Financial | 27.6 | % | ||
Industrial | 18.2 | % | ||
Consumer,Non-cyclical | 17.3 | % | ||
Consumer, Cyclical | 12.4 | % | ||
Utilities | 9.8 | % | ||
Technology | 5.9 | % | ||
Energy | 4.8 | % | ||
Mutual Funds | 3.2 | % | ||
|
| |||
Total Long-Term Investments | 99.2 | % | ||
Short-Term Investments and Other Assets and Liabilities | 0.8 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
17
Table of Contents
MML Small Cap Growth Equity Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Small Cap Growth Equity Fund, and who is the Fund’s subadviser?
The Fund seeks long-term capital appreciation by investing primarily in equity securities of smaller companies that the Fund’s subadviser believes offer potential for long-term growth. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the equity securities of companies whose market capitalizations at the time of purchase are within the market capitalization range of companies included in the Russell 2000® Index or the S&P SmallCap 600 Index. The Fund’s subadviser is Wellington Management Company LLP (Wellington Management).
MML Small Cap Growth Equity Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Insulet Corp. | 1.6 | % | ||
Rexnord Corp. | 1.6 | % | ||
Omnicell, Inc. | 1.5 | % | ||
TriNet Group, Inc. | 1.5 | % | ||
Haemonetics Corp. | 1.5 | % | ||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 1.3 | % | ||
Aerojet Rocketdyne Holdings, Inc. | 1.3 | % | ||
EnerSys | 1.2 | % | ||
Skyline Champion Corp. | 1.2 | % | ||
Entegris, Inc. | 1.2 | % | ||
|
| |||
13.9 | % | |||
|
|
MML Small Cap Growth Equity Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Consumer,Non-cyclical | 26.1 | % | ||
Financial | 19.3 | % | ||
Technology | 14.3 | % | ||
Consumer, Cyclical | 14.2 | % | ||
Industrial | 13.4 | % | ||
Communications | 3.6 | % | ||
Basic Materials | 3.2 | % | ||
Mutual Funds | 3.0 | % | ||
Energy | 2.8 | % | ||
Utilities | 0.5 | % | ||
|
| |||
Total Long-Term Investments | 100.4 | % | ||
Short-Term Investments and Other Assets and Liabilities | (0.4 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
18
Table of Contents
MML Small Company Value Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Small Company Value Fund, and who is the Fund’s subadviser?
The Fund seeks long-term capital appreciation by investing primarily in equity securities that the Fund’s subadviser believes are undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in the securities of companies whose market capitalizations at the time of purchase are within the market capitalization range of companies included in the Russell 2000® Index. The Fund’s subadviser is T. Rowe Price Associates, Inc. (T. Rowe Price).
MML Small Company Value Fund Largest Holdings (% of Net Assets) on 6/30/19 | ||||
Belden, Inc. | 1.7 | % | ||
Home BancShares, Inc. | 1.6 | % | ||
Nomad Foods Ltd. | 1.5 | % | ||
Strategic Education, Inc. | 1.4 | % | ||
Littelfuse, Inc. | 1.4 | % | ||
PNM Resources, Inc. | 1.4 | % | ||
Cable One, Inc. | 1.3 | % | ||
ONE Gas, Inc. | 1.3 | % | ||
Aaron’s, Inc. | 1.3 | % | ||
Chesapeake Utilities Corp. | 1.2 | % | ||
|
| |||
14.1 | % | |||
|
|
MML Small Company Value Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Financial | 32.8 | % | ||
Consumer,Non-cyclical | 16.9 | % | ||
Industrial | 16.3 | % | ||
Utilities | 7.8 | % | ||
Consumer, Cyclical | 7.7 | % | ||
Technology | 5.6 | % | ||
Energy | 4.2 | % | ||
Communications | 3.6 | % | ||
Basic Materials | 3.3 | % | ||
Mutual Funds | 0.7 | % | ||
|
| |||
Total Long-Term Investments | 98.9 | % | ||
Short-Term Investments and Other Assets and Liabilities | 1.1 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
19
Table of Contents
MML Small/Mid Cap Value Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Small/Mid Cap Value Fund, and who is the Fund’s subadviser?
The Fund seeks long-term total return by investing primarily in securities that the Fund’s subadviser believes to be undervalued. Under normal circumstances, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in securities of small- andmid-cap companies. The Fund’s subadviser is AllianceBernstein L.P. (AllianceBernstein).
MML Small/Mid Cap Value Fund Largest Holdings | ||||
Reinsurance Group of America, Inc. | 1.9 | % | ||
Everest Re Group Ltd. | 1.7 | % | ||
Camden Property Trust | 1.7 | % | ||
Nomad Foods Ltd. | 1.6 | % | ||
US Foods Holding Corp. | 1.6 | % | ||
Zions Bancorp NA | 1.6 | % | ||
Alaska Air Group, Inc. | 1.6 | % | ||
Alliant Energy Corp. | 1.6 | % | ||
Sotheby’s | 1.5 | % | ||
CubeSmart | 1.5 | % | ||
|
| |||
16.3 | % | |||
|
|
MML Small/Mid Cap Value Fund Sector Table (% of Net Assets) on 6/30/19 | ||||
Financial | 34.9 | % | ||
Consumer, Cyclical | 13.8 | % | ||
Industrial | 11.7 | % | ||
Consumer,Non-cyclical | 11.1 | % | ||
Technology | 10.7 | % | ||
Energy | 5.8 | % | ||
Utilities | 5.6 | % | ||
Basic Materials | 3.0 | % | ||
Communications | 2.0 | % | ||
Mutual Funds | 1.8 | % | ||
|
| |||
Total Long-Term Investments | 100.4 | % | ||
Short-Term Investments and Other Assets and Liabilities | (0.4 | )% | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
20
Table of Contents
MML Total Return Bond Fund – Portfolio Summaries (Unaudited)
What is the investment approach of MML Total Return Bond Fund, and who is the Fund’s subadviser?
The Fund seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing, under normal circumstances, at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in a diversified portfolio of investment grade fixed income securities (rated Baa3 or higher by Moody’s,BBB- or higher by Standard & Poor’s, BBB- or higher by Fitch, orA-2 by S&P,P-2 by Moody’s, orF-2 by Fitch for short-term debt obligations, or, if unrated, determined by the Fund’s subadviser to be of comparable quality). The Fund’s subadviser is Metropolitan West Asset Management, LLC (MetWest).
MML Total Return Bond Fund Portfolio Characteristics (% of Net Assets) on 6/30/19 | ||||
U.S. Government Agency Obligations and Instrumentalities | 29.6 | % | ||
Corporate Debt | 26.9 | % | ||
U.S. Treasury Obligations | 23.9 | % | ||
Non-U.S. Government Agency Obligations | 14.6 | % | ||
Diversified Financial Services | 1.4 | % | ||
Municipal Obligations | 1.3 | % | ||
Bank Loans | 0.2 | % | ||
Sovereign Debt Obligations | 0.1 | % | ||
|
| |||
Total Long-Term Investments | 98.0 | % | ||
Short-Term Investments and Other Assets and Liabilities | 2.0 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
21
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 99.9% |
| |||||||
COMMON STOCK — 99.9% |
| |||||||
Basic Materials — 0.5% |
| |||||||
Chemicals — 0.5% |
| |||||||
Air Products & Chemicals, Inc. | 3,043 | $ | 688,844 | |||||
Linde PLC | 4,300 | 863,440 | ||||||
The Sherwin-Williams Co. | 1,230 | 563,697 | ||||||
|
| |||||||
2,115,981 | ||||||||
|
| |||||||
2,115,981 | ||||||||
|
| |||||||
Communications — 30.3% |
| |||||||
Internet — 30.2% |
| |||||||
Alibaba Group Holding Ltd. Sponsored ADR (a) | 80,493 | 13,639,539 | ||||||
Alphabet, Inc. Class A (a) | 4,129 | 4,470,881 | ||||||
Alphabet, Inc. Class C (a) | 14,223 | 15,373,783 | ||||||
Amazon.com, Inc. (a) | 21,187 | 40,120,339 | ||||||
Booking Holdings, Inc. (a) | 4,091 | 7,669,439 | ||||||
Ctrip.com International Ltd. ADR (a) | 17,340 | 640,019 | ||||||
Facebook, Inc. Class A (a) | 124,255 | 23,981,215 | ||||||
IAC/InterActiveCorp (a) | 9,083 | 1,975,825 | ||||||
Netflix, Inc. (a) | 17,958 | 6,596,333 | ||||||
Tencent Holdings Ltd. | 204,600 | 9,256,209 | ||||||
|
| |||||||
123,723,582 | ||||||||
|
| |||||||
Telecommunications — 0.1% |
| |||||||
Corning, Inc. | 2,372 | 78,821 | ||||||
Motorola Solutions, Inc. | 2,600 | 433,498 | ||||||
|
| |||||||
512,319 | ||||||||
|
| |||||||
124,235,901 | ||||||||
|
| |||||||
Consumer, Cyclical — 6.9% |
| |||||||
Airlines — 0.7% |
| |||||||
Delta Air Lines, Inc. | 8,703 | 493,895 | ||||||
United Continental Holdings, Inc. (a) | 24,574 | 2,151,454 | ||||||
|
| |||||||
2,645,349 | ||||||||
|
| |||||||
Apparel — 0.1% |
| |||||||
VF Corp. | 6,654 | 581,227 | ||||||
|
| |||||||
Auto Manufacturers — 0.1% |
| |||||||
Ferrari NV | 3,395 | 548,021 | ||||||
|
| |||||||
Auto Parts & Equipment — 0.7% |
| |||||||
Aptiv PLC | 32,867 | 2,656,640 | ||||||
|
| |||||||
Leisure Time — 0.5% |
| |||||||
Norwegian Cruise Line Holdings Ltd. (a) | 5,347 | 286,759 | ||||||
Royal Caribbean Cruises Ltd. | 15,670 | 1,899,361 | ||||||
|
| |||||||
2,186,120 | ||||||||
|
|
Number of Shares | Value | |||||||
Lodging — 1.3% |
| |||||||
Hilton Worldwide Holdings, Inc. | 21,389 | $ | 2,090,561 | |||||
Marriott International, Inc. Class A | 19,338 | 2,712,928 | ||||||
Wynn Resorts Ltd. | 2,403 | 297,948 | ||||||
|
| |||||||
5,101,437 | ||||||||
|
| |||||||
Retail — 3.5% |
| |||||||
Dollar General Corp. | 31,448 | 4,250,512 | ||||||
Dollar Tree, Inc. (a) | 4,500 | 483,255 | ||||||
Domino’s Pizza, Inc. | 1,775 | 493,947 | ||||||
McDonald’s Corp. | 12,082 | 2,508,948 | ||||||
Restaurant Brands International, Inc. | 13,606 | 946,161 | ||||||
Ross Stores, Inc. | 34,177 | 3,387,624 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. (a) | 1,954 | 677,823 | ||||||
Yum! Brands, Inc. | 15,670 | 1,734,199 | ||||||
|
| |||||||
14,482,469 | ||||||||
|
| |||||||
28,201,263 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 22.3% |
| |||||||
Agriculture — 0.0% |
| |||||||
Philip Morris International, Inc. | 1,500 | 117,795 | ||||||
|
| |||||||
Beverages — 0.0% |
| |||||||
Constellation Brands, Inc. Class A | 300 | 59,082 | ||||||
|
| |||||||
Biotechnology — 2.1% |
| |||||||
Alexion Pharmaceuticals, Inc. (a) | 19,621 | 2,569,959 | ||||||
Illumina, Inc. (a) | 243 | 89,460 | ||||||
Vertex Pharmaceuticals, Inc. (a) | 33,140 | 6,077,213 | ||||||
|
| |||||||
8,736,632 | ||||||||
|
| |||||||
Commercial Services — 5.5% |
| |||||||
Ant International Co., Ltd. Class C (Acquired 6/07/18, Cost $775,038) (a) (b) (c) (d) | 138,153 | 775,038 | ||||||
Automatic Data Processing, Inc. | 2,500 | 413,325 | ||||||
Cintas Corp. | 2,204 | 522,987 | ||||||
CoStar Group, Inc. (a) | 681 | 377,315 | ||||||
FleetCor Technologies, Inc. (a) | 5,682 | 1,595,790 | ||||||
Global Payments, Inc. | 39,709 | 6,358,602 | ||||||
IHS Markit Ltd. (a) | 3,048 | 194,219 | ||||||
Moody’s Corp. | 500 | 97,655 | ||||||
PayPal Holdings, Inc. (a) | 66,682 | 7,632,422 | ||||||
S&P Global, Inc. | 6,974 | 1,588,607 | ||||||
Worldpay, Inc. Class A (a) | 23,064 | 2,826,493 | ||||||
|
| |||||||
22,382,453 | ||||||||
|
| |||||||
Health Care – Products — 8.0% |
| |||||||
Abbott Laboratories | 11,542 | 970,682 | ||||||
Becton Dickinson and Co. | 28,893 | 7,281,325 | ||||||
Boston Scientific Corp. (a) | 800 | 34,384 | ||||||
Danaher Corp. | 36,066 | 5,154,553 | ||||||
Intuitive Surgical, Inc. (a) | 11,010 | 5,775,295 | ||||||
Stryker Corp. | 41,810 | 8,595,300 |
The accompanying notes are an integral part of the financial statements.
22
Table of Contents
MML Blue Chip Growth Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Thermo Fisher Scientific, Inc. | 16,997 | $ | 4,991,679 | |||||
|
| |||||||
32,803,218 | ||||||||
|
| |||||||
Health Care – Services — 5.1% |
| |||||||
Anthem, Inc. | 22,516 | 6,354,240 | ||||||
Centene Corp. (a) | 26,009 | 1,363,912 | ||||||
HCA Healthcare, Inc. | 5,860 | 792,096 | ||||||
Humana, Inc. | 1,275 | 338,258 | ||||||
UnitedHealth Group, Inc. | 40,062 | 9,775,529 | ||||||
WellCare Health Plans, Inc. (a) | 8,081 | 2,303,651 | ||||||
|
| |||||||
20,927,686 | ||||||||
|
| |||||||
Pharmaceuticals — 1.6% |
| |||||||
Cigna Corp. (a) | 35,570 | 5,604,054 | ||||||
Elanco Animal Health, Inc. (a) | 13,178 | 445,416 | ||||||
Eli Lilly & Co. | 1,031 | 114,224 | ||||||
Merck & Co., Inc. | 294 | 24,652 | ||||||
Pfizer, Inc. | 2,600 | 112,632 | ||||||
Zoetis, Inc. | 2,400 | 272,376 | ||||||
|
| |||||||
6,573,354 | ||||||||
|
| |||||||
91,600,220 | ||||||||
|
| |||||||
Energy — 0.4% |
| |||||||
Oil & Gas — 0.4% |
| |||||||
Concho Resources, Inc. | 9,000 | 928,620 | ||||||
Pioneer Natural Resources Co. | 5,100 | 784,686 | ||||||
|
| |||||||
1,713,306 | ||||||||
|
| |||||||
1,713,306 | ||||||||
|
| |||||||
Financial — 11.6% |
| |||||||
Banks — 0.5% |
| |||||||
Citigroup, Inc. | 4,300 | 301,129 | ||||||
The Goldman Sachs Group, Inc. | 200 | 40,920 | ||||||
JP Morgan Chase & Co. | 1,100 | 122,980 | ||||||
Morgan Stanley | 39,118 | 1,713,760 | ||||||
|
| |||||||
2,178,789 | ||||||||
|
| |||||||
Diversified Financial Services — 9.3% |
| |||||||
Ameriprise Financial, Inc. | 400 | 58,064 | ||||||
The Charles Schwab Corp. | 53,203 | 2,138,229 | ||||||
Intercontinental Exchange, Inc. | 35,660 | 3,064,620 | ||||||
Mastercard, Inc. Class A | 48,842 | 12,920,174 | ||||||
Raymond James Financial, Inc. | 2,240 | 189,392 | ||||||
TD Ameritrade Holding Corp. | 95,777 | 4,781,188 | ||||||
Visa, Inc. Class A | 85,848 | 14,898,921 | ||||||
|
| |||||||
38,050,588 | ||||||||
|
| |||||||
Insurance — 1.8% |
| |||||||
American International Group, Inc. | 35,202 | 1,875,562 | ||||||
Chubb Ltd. | 2,000 | 294,580 | ||||||
Marsh & McLennan Cos., Inc. | 10,861 | 1,083,385 | ||||||
The Progressive Corp. | 3,488 | 278,796 | ||||||
Willis Towers Watson PLC | 19,417 | 3,719,132 | ||||||
|
| |||||||
7,251,455 | ||||||||
|
|
Number of Shares | Value | |||||||
Real Estate Investment Trusts (REITS) — 0.0% |
| |||||||
American Tower Corp. | 343 | $ | 70,126 | |||||
|
| |||||||
47,550,958 | ||||||||
|
| |||||||
Industrial — 8.3% |
| |||||||
Aerospace & Defense — 5.0% |
| |||||||
The Boeing Co. | 38,721 | 14,094,831 | ||||||
L3Harris Technologies, Inc. | 13,021 | 2,462,662 | ||||||
Northrop Grumman Corp. | 11,932 | 3,855,348 | ||||||
|
| |||||||
20,412,841 | ||||||||
|
| |||||||
Electronics — 1.1% |
| |||||||
Agilent Technologies, Inc. | 4,400 | 328,548 | ||||||
Fortive Corp. | 19,444 | 1,585,075 | ||||||
Honeywell International, Inc. | 16,249 | 2,836,913 | ||||||
|
| |||||||
4,750,536 | ||||||||
|
| |||||||
Machinery – Diversified — 1.0% |
| |||||||
Roper Technologies, Inc. | 10,802 | 3,956,340 | ||||||
Xylem, Inc. | 300 | 25,092 | ||||||
|
| |||||||
3,981,432 | ||||||||
|
| |||||||
Packaging & Containers — 0.1% |
| |||||||
Ball Corp. | 3,520 | 246,365 | ||||||
|
| |||||||
Transportation — 1.1% |
| |||||||
Canadian Pacific Railway Ltd. | 7,069 | 1,662,911 | ||||||
CSX Corp. | 22,573 | 1,746,473 | ||||||
J.B. Hunt Transport Services, Inc. | 456 | 41,683 | ||||||
Kansas City Southern | 1,608 | 195,887 | ||||||
Norfolk Southern Corp. | 1,734 | 345,638 | ||||||
Union Pacific Corp. | 3,406 | 575,989 | ||||||
|
| |||||||
4,568,581 | ||||||||
|
| |||||||
33,959,755 | ||||||||
|
| |||||||
Technology — 19.2% |
| |||||||
Computers — 0.2% |
| |||||||
Apple, Inc. | 4,099 | 811,274 | ||||||
|
| |||||||
Semiconductors — 1.9% |
| |||||||
Analog Devices, Inc. | 8,000 | 902,960 | ||||||
Applied Materials, Inc. | 4,600 | 206,586 | ||||||
Broadcom, Inc. | 1,500 | 431,790 | ||||||
KLA-Tencor Corp. | 4,600 | 543,720 | ||||||
Lam Research Corp. | 900 | 169,056 | ||||||
Marvell Technology Group Ltd. | 42,300 | 1,009,701 | ||||||
Maxim Integrated Products, Inc. | 26,099 | 1,561,242 | ||||||
Microchip Technology, Inc. | 2,554 | 221,432 | ||||||
NVIDIA Corp. | 2,204 | 361,963 | ||||||
QUALCOMM, Inc. | 7,000 | 532,490 | ||||||
Texas Instruments, Inc. | 12,069 | 1,385,038 | ||||||
Xilinx, Inc. | 4,436 | 523,093 | ||||||
|
| |||||||
7,849,071 | ||||||||
|
| |||||||
Software — 17.1% |
| |||||||
Atlassian Corp. PLC Class A (a) | 1,647 | 215,493 | ||||||
Electronic Arts, Inc. (a) | 24,400 | 2,470,744 |
The accompanying notes are an integral part of the financial statements.
23
Table of Contents
MML Blue Chip Growth Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Fidelity National Information Services, Inc. | 31,973 | $ | 3,922,448 | |||||
Fiserv, Inc. (a) | 53,136 | 4,843,878 | ||||||
Intuit, Inc. | 29,549 | 7,722,040 | ||||||
Microsoft Corp. | 182,089 | 24,392,642 | ||||||
salesforce.com, Inc. (a) | 47,394 | 7,191,092 | ||||||
ServiceNow, Inc. (a) | 29,745 | 8,167,085 | ||||||
Splunk, Inc. (a) | 23,361 | 2,937,646 | ||||||
VMware, Inc. Class A | 17,834 | 2,982,023 | ||||||
Workday, Inc. Class A (a) | 24,732 | 5,084,405 | ||||||
Zoom Video Communications, Inc. Class A (a) (e) | 1,055 | 93,673 | ||||||
|
| |||||||
70,023,169 | ||||||||
|
| |||||||
78,683,514 | ||||||||
|
| |||||||
Utilities — 0.4% |
| |||||||
Electric — 0.4% |
| |||||||
NextEra Energy, Inc. | 200 | 40,972 | ||||||
Sempra Energy | 10,474 | 1,439,547 | ||||||
|
| |||||||
1,480,519 | ||||||||
|
| |||||||
1,480,519 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $240,132,729) | 409,541,417 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $240,132,729) | 409,541,417 | |||||||
|
| |||||||
MUTUAL FUNDS — 0.0% |
| |||||||
Diversified Financial Services — 0.0% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (f) | 94,743 | 94,743 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $94,743) | 94,743 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $240,227,472) | 409,636,160 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS — 0.3% |
| |||||||
Mutual Fund — 0.0% |
| |||||||
T. Rowe Price Government Reserve Investment Fund, | 1,059 | 1,059 | ||||||
|
|
Principal Amount | Value | |||||||
Repurchase Agreement — 0.3% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (g) | $ | 1,337,946 | $ | 1,337,946 | ||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $1,339,005) | 1,339,005 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.2% (Cost $241,566,477) (h) | 410,975,165 | |||||||
Other Assets/(Liabilities) — (0.2)% | (758,881 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 410,216,284 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Investment was valued using significant unobservable inputs. |
(c) | This security is fair valued in good faith in accordance with procedures approved by the Board of Trustees. At June 30, 2019, these securities amounted to a value of $775,038 or 0.19% of net assets. |
(d) | Restricted security. Certain securities are restricted as to resale. At June 30, 2019, these securities amounted to a value of $775,038 or 0.19% of net assets. The Fund generally bears the costs, if any, associated with the disposition of restricted securities. |
(e) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $92,697 or 0.02% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers.(Note 2). |
(f) | Represents investment of security lending collateral.(Note 2). |
(g) | Maturity value of $1,338,086. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $1,364,821. |
(h) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
24
Table of Contents
MML Blue Chip Growth Fund – Portfolio of Investments(Continued)
Notes to Portfolio of Investments (Continued)
Country weightings, as a percentage of net assets, is as follows:
United States | 90.7 | % | ||
Cayman Islands | 5.7 | % | ||
Ireland | 1.1 | % | ||
United Kingdom | 0.7 | % | ||
Canada | 0.6 | % | ||
Liberia | 0.5 | % | ||
Bermuda | 0.4 | % | ||
Netherlands | 0.1 | % | ||
Switzerland | 0.1 | % | ||
|
| |||
Total Long-Term Investments | 99.9 | % | ||
Short-Term Investments and Other Assets and Liabilities | 0.1 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
The accompanying notes are an integral part of the financial statements.
25
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 97.7% |
| |||||||
COMMON STOCK — 95.1% |
| |||||||
Basic Materials — 3.9% |
| |||||||
Chemicals — 2.8% |
| |||||||
Akzo Nobel NV | 7,885 | $ | 741,150 | |||||
CF Industries Holdings, Inc. | 89,900 | 4,199,229 | ||||||
Dow, Inc. | 57,971 | 2,858,550 | ||||||
DuPont de Nemours, Inc. | 60,305 | 4,527,096 | ||||||
PPG Industries, Inc. | 5,000 | 583,550 | ||||||
|
| |||||||
12,909,575 | ||||||||
|
| |||||||
Forest Products & Paper — 0.9% |
| |||||||
International Paper Co. | 93,104 | 4,033,265 | ||||||
|
| |||||||
Iron & Steel — 0.2% |
| |||||||
Nucor Corp. | 17,900 | 986,290 | ||||||
|
| |||||||
17,929,130 | ||||||||
|
| |||||||
Communications — 8.1% |
| |||||||
Media — 3.5% |
| |||||||
Comcast Corp. Class A | 128,715 | 5,442,070 | ||||||
Fox Corp. Class B | 126,015 | 4,603,328 | ||||||
News Corp. Class A | 280,986 | 3,790,501 | ||||||
The Walt Disney Co. | 15,984 | 2,232,006 | ||||||
|
| |||||||
16,067,905 | ||||||||
|
| |||||||
Telecommunications — 4.6% |
| |||||||
AT&T, Inc. | 71,748 | 2,404,275 | ||||||
CenturyLink, Inc. | 51,205 | 602,171 | ||||||
Cisco Systems, Inc. | 122,314 | 6,694,245 | ||||||
Telefonica SA | 288,429 | 2,368,492 | ||||||
Verizon Communications, Inc. | 157,604 | 9,003,917 | ||||||
|
| |||||||
21,073,100 | ||||||||
|
| |||||||
37,141,005 | ||||||||
|
| |||||||
Consumer, Cyclical — 5.1% |
| |||||||
Airlines — 1.4% |
| |||||||
Alaska Air Group, Inc. | 53,257 | 3,403,655 | ||||||
Delta Air Lines, Inc. | 36,400 | 2,065,700 | ||||||
Southwest Airlines Co. | 22,500 | 1,142,550 | ||||||
|
| |||||||
6,611,905 | ||||||||
|
| |||||||
Auto Manufacturers — 0.3% |
| |||||||
PACCAR, Inc. | 18,500 | 1,325,710 | ||||||
|
| |||||||
Auto Parts & Equipment — 0.0% |
| |||||||
Adient PLC | 9,381 | 227,677 | ||||||
|
| |||||||
Lodging — 1.1% |
| |||||||
Las Vegas Sands Corp. | 72,200 | 4,266,297 | ||||||
MGM Resorts International | 24,800 | 708,536 | ||||||
|
| |||||||
4,974,833 | ||||||||
|
| |||||||
Retail — 1.9% |
| |||||||
Kohl’s Corp. | 43,200 | 2,054,160 | ||||||
L Brands, Inc. | 65,100 | 1,699,110 |
Number of Shares | Value | |||||||
Walmart, Inc. | 43,736 | $ | 4,832,390 | |||||
|
| |||||||
8,585,660 | ||||||||
|
| |||||||
Toys, Games & Hobbies — 0.4% |
| |||||||
Mattel, Inc. (a) (b) | 167,200 | 1,874,312 | ||||||
|
| |||||||
23,600,097 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 20.2% |
| |||||||
Agriculture — 1.7% |
| |||||||
Bunge Ltd. | 40,300 | 2,245,113 | ||||||
Philip Morris International, Inc. | 72,300 | 5,677,719 | ||||||
|
| |||||||
7,922,832 | ||||||||
|
| |||||||
Beverages — 0.3% |
| |||||||
PepsiCo, Inc. | 9,800 | 1,285,074 | ||||||
|
| |||||||
Biotechnology — 1.6% |
| |||||||
Corteva, Inc. (a) | 60,305 | 1,783,219 | ||||||
Gilead Sciences, Inc. | 81,440 | 5,502,086 | ||||||
|
| |||||||
7,285,305 | ||||||||
|
| |||||||
Commercial Services — 0.8% |
| |||||||
Nielsen Holdings PLC | 166,629 | 3,765,816 | ||||||
|
| |||||||
Cosmetics & Personal Care — 0.1% |
| |||||||
Coty, Inc. Class A | 23,409 | 313,681 | ||||||
|
| |||||||
Foods — 2.9% |
| |||||||
Conagra Brands, Inc. | 175,839 | 4,663,250 | ||||||
Kellogg Co. | 15,000 | 803,550 | ||||||
Tyson Foods, Inc. Class A | 98,300 | 7,936,742 | ||||||
|
| |||||||
13,403,542 | ||||||||
|
| |||||||
Health Care – Products — 2.0% |
| |||||||
Becton Dickinson and Co. | 6,513 | 1,641,341 | ||||||
Medtronic PLC | 65,883 | 6,416,346 | ||||||
Zimmer Biomet Holdings, Inc. | 11,200 | 1,318,688 | ||||||
|
| |||||||
9,376,375 | ||||||||
|
| |||||||
Health Care – Services — 1.5% |
| |||||||
Anthem, Inc. | 25,558 | 7,212,723 | ||||||
|
| |||||||
Household Products & Wares — 1.7% |
| |||||||
Kimberly-Clark Corp. | 57,787 | 7,701,851 | ||||||
|
| |||||||
Pharmaceuticals — 7.6% |
| |||||||
Allergan PLC | 14,200 | 2,377,506 | ||||||
Bristol-Myers Squibb Co. | 76,600 | 3,473,810 | ||||||
CVS Health Corp. | 100,741 | 5,489,377 | ||||||
GlaxoSmithKline PLC Sponsored ADR | 3,700 | 148,074 | ||||||
GlaxoSmithKline PLC | 151,186 | 3,026,374 | ||||||
Johnson & Johnson | 65,449 | 9,115,737 | ||||||
Merck & Co., Inc. | 24,468 | 2,051,642 | ||||||
Pfizer, Inc. | 214,501 | 9,292,183 | ||||||
|
| |||||||
34,974,703 | ||||||||
|
| |||||||
93,241,902 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
26
Table of Contents
MML Equity Income Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Energy — 9.6% |
| |||||||
Oil & Gas — 7.5% |
| |||||||
Chevron Corp. | 33,786 | $ | 4,204,330 | |||||
Exxon Mobil Corp. | 126,975 | 9,730,095 | ||||||
Hess Corp. | 39,500 | 2,511,015 | ||||||
Occidental Petroleum Corp. | 106,929 | 5,376,390 | ||||||
Pioneer Natural Resources Co. | 18,100 | 2,784,866 | ||||||
Total SA | 174,769 | 9,778,518 | ||||||
|
| |||||||
34,385,214 | ||||||||
|
| |||||||
Pipelines — 2.1% |
| |||||||
Equitrans Midstream Corp. | 35,624 | 702,149 | ||||||
Targa Resources Corp. | 26,400 | 1,036,464 | ||||||
TC Energy Corp. | 162,581 | 8,051,011 | ||||||
|
| |||||||
9,789,624 | ||||||||
|
| |||||||
44,174,838 | ||||||||
|
| |||||||
Financial — 25.9% |
| |||||||
Banks — 14.6% |
| |||||||
Bank of America Corp. | 9,477 | 274,833 | ||||||
The Bank of New York Mellon Corp. | 32,000 | 1,412,800 | ||||||
Citigroup, Inc. | 51,476 | 3,604,864 | ||||||
Fifth Third Bancorp | 223,485 | 6,235,231 | ||||||
JP Morgan Chase & Co. | 127,811 | 14,289,270 | ||||||
KeyCorp | 11,466 | 203,522 | ||||||
Morgan Stanley | 177,300 | 7,767,513 | ||||||
Northern Trust Corp. | 14,700 | 1,323,000 | ||||||
The PNC Financial Services Group, Inc. | 35,800 | 4,914,624 | ||||||
State Street Corp. | 95,000 | 5,325,700 | ||||||
US Bancorp | 111,085 | 5,820,854 | ||||||
Wells Fargo & Co. | 336,500 | 15,923,180 | ||||||
|
| |||||||
67,095,391 | ||||||||
|
| |||||||
Diversified Financial Services — 0.9% |
| |||||||
Ameriprise Financial, Inc. | 4,773 | 692,849 | ||||||
Franklin Resources, Inc. | 97,300 | 3,386,040 | ||||||
|
| |||||||
4,078,889 | ||||||||
|
| |||||||
Insurance — 7.4% |
| |||||||
American International Group, Inc. | 144,595 | 7,704,021 | ||||||
AXA Equitable Holdings, Inc. | 31,514 | 658,643 | ||||||
Brighthouse Financial, Inc. (a) | 43,526 | 1,596,969 | ||||||
Chubb Ltd. | 54,319 | 8,000,645 | ||||||
Loews Corp. | 86,780 | 4,744,263 | ||||||
Marsh & McLennan Cos., Inc. | 15,900 | 1,586,025 | ||||||
MetLife, Inc. | 134,970 | 6,703,960 | ||||||
Willis Towers Watson PLC | 15,141 | 2,900,107 | ||||||
|
| |||||||
33,894,633 | ||||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 3.0% |
| |||||||
Equity Residential | 56,259 | 4,271,183 | ||||||
Rayonier, Inc. | 87,841 | 2,661,582 | ||||||
SL Green Realty Corp. | 29,821 | 2,396,714 |
Number of Shares | Value | |||||||
Weyerhaeuser Co. | 179,071 | $ | 4,716,730 | |||||
|
| |||||||
14,046,209 | ||||||||
|
| |||||||
119,115,122 | ||||||||
|
| |||||||
Industrial — 9.5% |
| |||||||
Aerospace & Defense — 3.8% |
| |||||||
The Boeing Co. | 23,277 | 8,473,061 | ||||||
L3Harris Technologies, Inc. | 44,487 | 8,413,826 | ||||||
Northrop Grumman Corp. | 1,251 | 404,211 | ||||||
United Technologies Corp. | 3,700 | 481,740 | ||||||
|
| |||||||
17,772,838 | ||||||||
|
| |||||||
Building Materials — 1.4% |
| |||||||
Johnson Controls International PLC | 139,602 | 5,766,959 | ||||||
Vulcan Materials Co. | 6,900 | 947,439 | ||||||
|
| |||||||
6,714,398 | ||||||||
|
| |||||||
Electrical Components & Equipment — 0.5% |
| |||||||
Emerson Electric Co. | 38,500 | 2,568,720 | ||||||
|
| |||||||
Electronics — 0.3% |
| |||||||
nVent Electric PLC | 23,100 | 572,649 | ||||||
TE Connectivity Ltd. | 8,800 | 842,864 | ||||||
|
| |||||||
1,415,513 | ||||||||
|
| |||||||
Environmental Controls — 0.7% |
| |||||||
Pentair PLC | 15,200 | 565,440 | ||||||
Stericycle, Inc. (a) | 52,402 | 2,502,195 | ||||||
|
| |||||||
3,067,635 | ||||||||
|
| |||||||
Hand & Machine Tools — 0.1% |
| |||||||
Snap-on, Inc. | 2,200 | 364,408 | ||||||
|
| |||||||
Machinery – Diversified — 0.1% |
| |||||||
Flowserve Corp. | 4,764 | 251,015 | ||||||
|
| |||||||
Miscellaneous – Manufacturing — 1.3% |
| |||||||
General Electric Co. | 526,900 | 5,532,450 | ||||||
Illinois Tool Works, Inc. | 2,294 | 345,958 | ||||||
|
| |||||||
5,878,408 | ||||||||
|
| |||||||
Transportation — 1.3% |
| |||||||
United Parcel Service, Inc. Class B | 56,821 | 5,867,905 | ||||||
|
| |||||||
43,900,840 | ||||||||
|
| |||||||
Technology — 6.8% |
| |||||||
Computers — 0.8% |
| |||||||
Cognizant Technology Solutions Corp. Class A | 37,920 | 2,403,749 | ||||||
Hewlett Packard Enterprise Co. | 36,500 | 545,675 | ||||||
Western Digital Corp. | 17,800 | 846,390 | ||||||
|
| |||||||
3,795,814 | ||||||||
|
| |||||||
Semiconductors — 3.9% |
| |||||||
Applied Materials, Inc. | 61,800 | 2,775,438 | ||||||
NXP Semiconductor NV | 10,600 | 1,034,666 | ||||||
QUALCOMM, Inc. | 140,244 | 10,668,361 | ||||||
Texas Instruments, Inc. | 32,673 | 3,749,553 | ||||||
|
| |||||||
18,228,018 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
27
Table of Contents
MML Equity Income Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Software — 2.1% |
| |||||||
Microsoft Corp. | 71,128 | $ | 9,528,307 | |||||
|
| |||||||
31,552,139 | ||||||||
|
| |||||||
Utilities — 6.0% |
| |||||||
Electric — 4.4% |
| |||||||
Duke Energy Corp. | 14,800 | 1,305,952 | ||||||
Edison International | 53,967 | 3,637,915 | ||||||
Evergy, Inc. | 40,527 | 2,437,699 | ||||||
PG&E Corp. (a) | 20,157 | 461,998 | ||||||
Sempra Energy | 14,840 | 2,039,610 | ||||||
The Southern Co. | 188,627 | 10,427,301 | ||||||
|
| |||||||
20,310,475 | ||||||||
|
| |||||||
Gas — 1.5% |
| |||||||
NiSource, Inc. | 234,271 | 6,747,005 | ||||||
|
| |||||||
Water — 0.1% |
| |||||||
Aqua America, Inc. Convertible | 12,164 | 693,105 | ||||||
|
| |||||||
27,750,585 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $370,006,078) | 438,405,658 | |||||||
|
| |||||||
PREFERRED STOCK — 2.6% |
| |||||||
Consumer,Non-cyclical — 0.9% |
| |||||||
Health Care – Products — 0.9% |
| |||||||
Becton Dickinson and Co. Convertible 6.125% | 63,549 | 3,934,319 | ||||||
|
| |||||||
Utilities — 1.7% |
| |||||||
Electric — 1.7% |
| |||||||
DTE Energy Co. Convertible 6.500% | 7,705 | 433,021 | ||||||
NextEra Energy, Inc. Convertible 6.123% | 66,353 | 4,308,300 | ||||||
Sempra Energy Convertible 6.000% | 22,022 | 2,455,233 | ||||||
Sempra Energy Convertible 6.750% | 6,848 | 760,265 | ||||||
|
| |||||||
7,956,819 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCK (Cost $9,710,770) | 11,891,138 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $379,716,848) | 450,296,796 | |||||||
|
| |||||||
Principal Amount | ||||||||
BONDS & NOTES — 0.7% |
| |||||||
CORPORATE DEBT — 0.7% |
| |||||||
Electric — 0.3% |
| |||||||
Pacific Gas & Electric Co. | $ | 470,000 | 426,525 | |||||
3.950% 12/01/47 | 805,000 | 726,512 | ||||||
|
| |||||||
1,153,037 | ||||||||
|
|
Principal Amount | Value | |||||||
Insurance — 0.2% |
| |||||||
AXA SA Convertible | $ | 895,000 | $ | 919,255 | ||||
|
| |||||||
Toys, Games & Hobbies — 0.2% |
| |||||||
Mattel, Inc. | 1,003,000 | 1,031,836 | ||||||
|
| |||||||
TOTAL CORPORATE DEBT (Cost $2,853,005) | 3,104,128 | |||||||
|
| |||||||
TOTAL BONDS & NOTES (Cost $2,853,005) | 3,104,128 | |||||||
|
| |||||||
Number of Shares | ||||||||
MUTUAL FUNDS — 0.1% |
| |||||||
Diversified Financial Services — 0.1% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (d) | 381,536 | 381,536 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $381,536) | 381,536 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $382,951,389) | 453,782,460 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS — 1.5% |
| |||||||
Mutual Fund — 0.0% |
| |||||||
T. Rowe Price Government Reserve Investment Fund | 1,059 | 1,059 | ||||||
|
| |||||||
Principal Amount | ||||||||
Repurchase Agreement — 1.5% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (e) | $ | 7,005,537 | 7,005,537 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $7,006,596) | 7,006,596 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.0% (Cost $389,957,985) (f) | 460,789,056 | |||||||
Other Assets/(Liabilities) — (0.0)% | (111,642 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 460,677,414 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
The accompanying notes are an integral part of the financial statements.
28
Table of Contents
MML Equity Income Fund – Portfolio of Investments(Continued)
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $371,914 or 0.08% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers.(Note 2). |
(c) | Security is exempt from registration under Regulation S or Rule 144A of the Securities Act of 1933. These securities are |
considered restricted and may be resold in transactions exempt from registration. At June 30, 2019, the aggregate market value of these securities amounted to $1,951,091 or 0.42% of net assets. |
(d) | Represents investment of security lending collateral.(Note 2). |
(e) | Maturity value of $7,006,267. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $7,150,031. |
(f) | See Note 6 for aggregate cost for federal tax purposes. |
Futures contracts
Expiration Date | Number of Contracts | Notional Amount | Value/Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Long | ||||||||||||||||
S&P 500 E Mini Index | 9/20/19 | 6 | $ | 887,927 | $ | (4,667 | ) | |||||||||
|
|
The accompanying notes are an integral part of the financial statements.
29
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 99.1% |
| |||||||
COMMON STOCK — 99.1% |
| |||||||
Basic Materials — 2.2% |
| |||||||
Chemicals — 1.9% |
| |||||||
Air Products & Chemicals, Inc. | 4,915 | $ | 1,112,609 | |||||
Albemarle Corp. | 2,374 | 167,153 | ||||||
Celanese Corp. | 2,837 | 305,829 | ||||||
CF Industries Holdings, Inc. | 4,963 | 231,822 | ||||||
Dow, Inc. (a) | 16,662 | 821,603 | ||||||
DuPont de Nemours, Inc. | 16,668 | 1,251,267 | ||||||
Eastman Chemical Co. | 3,112 | 242,207 | ||||||
Ecolab, Inc. | 5,669 | 1,119,287 | ||||||
FMC Corp. | 2,874 | 238,398 | ||||||
International Flavors & Fragrances, Inc. (b) | 2,244 | 325,582 | ||||||
Linde PLC | 12,089 | 2,427,471 | ||||||
LyondellBasell Industries NV Class A | 6,747 | 581,119 | ||||||
The Mosaic Co. | 7,944 | 198,838 | ||||||
PPG Industries, Inc. | 5,228 | 610,160 | ||||||
The Sherwin-Williams Co. | 1,809 | 829,047 | ||||||
|
| |||||||
10,462,392 | ||||||||
|
| |||||||
Forest Products & Paper — 0.1% |
| |||||||
International Paper Co. | 8,867 | 384,118 | ||||||
|
| |||||||
Iron & Steel — 0.1% |
| |||||||
Nucor Corp. | 6,777 | 373,413 | ||||||
|
| |||||||
Mining — 0.1% |
| |||||||
Freeport-McMoRan, Inc. | 32,139 | 373,134 | ||||||
Newmont Goldcorp Corp. | 18,407 | 708,117 | ||||||
|
| |||||||
1,081,251 | ||||||||
|
| |||||||
12,301,174 | ||||||||
|
| |||||||
Communications — 14.9% |
| |||||||
Advertising — 0.1% |
| |||||||
The Interpublic Group of Cos., Inc. | 8,618 | 194,680 | ||||||
Omnicom Group, Inc. | 4,965 | 406,882 | ||||||
|
| |||||||
601,562 | ||||||||
|
| |||||||
Internet — 9.2% |
| |||||||
Alphabet, Inc. Class A (a) | 6,670 | 7,222,276 | ||||||
Alphabet, Inc. Class C (a) | 6,828 | 7,380,453 | ||||||
Amazon.com, Inc. (a) | 9,213 | 17,446,013 | ||||||
Booking Holdings, Inc. (a) | 965 | 1,809,095 | ||||||
eBay, Inc. | 18,266 | 721,507 | ||||||
Expedia Group, Inc. | 2,672 | 355,456 | ||||||
F5 Networks, Inc. (a) | 1,333 | 194,125 | ||||||
Facebook, Inc. Class A (a) | 53,525 | 10,330,325 | ||||||
Netflix, Inc. (a) | 9,743 | 3,578,799 | ||||||
Symantec Corp. | 13,684 | 297,764 | ||||||
TripAdvisor, Inc. (a) | 2,237 | 103,551 | ||||||
Twitter, Inc. (a) | 16,161 | 564,019 |
Number of Shares | Value | |||||||
VeriSign, Inc. (a) | 2,337 | $ | 488,807 | |||||
|
| |||||||
50,492,190 | ||||||||
|
| |||||||
Media — 2.4% |
| |||||||
CBS Corp. Class B | 7,922 | 395,308 | ||||||
Charter Communications, Inc. Class A (a) | 3,825 | 1,511,563 | ||||||
Comcast Corp. Class A | 100,936 | 4,267,574 | ||||||
Discovery, Inc. Class A (a) | 3,428 | 105,240 | ||||||
Discovery, Inc. Class C (a) | 8,048 | 228,966 | ||||||
DISH Network Corp. Class A (a) | 5,130 | 197,043 | ||||||
Fox Corp. Class A (a) | 7,829 | 286,854 | ||||||
Fox Corp. Class B (a) | 3,543 | 129,426 | ||||||
News Corp. Class A | 8,355 | 112,709 | ||||||
News Corp. Class B | 2,653 | 37,036 | ||||||
Viacom, Inc. Class B | 7,843 | 234,270 | ||||||
The Walt Disney Co. | 38,898 | 5,431,717 | ||||||
|
| |||||||
12,937,706 | ||||||||
|
| |||||||
Telecommunications — 3.2% |
| |||||||
Arista Networks, Inc. (a) | 1,160 | 301,159 | ||||||
AT&T, Inc. | 162,647 | 5,450,301 | ||||||
CenturyLink, Inc. | 21,116 | 248,324 | ||||||
Cisco Systems, Inc. | 95,299 | 5,215,714 | ||||||
Corning, Inc. | 17,463 | 580,296 | ||||||
Juniper Networks, Inc. | 7,773 | 206,995 | ||||||
Motorola Solutions, Inc. | 3,694 | 615,901 | ||||||
Verizon Communications, Inc. | 92,147 | 5,264,358 | ||||||
|
| |||||||
17,883,048 | ||||||||
|
| |||||||
81,914,506 | ||||||||
|
| |||||||
Consumer, Cyclical — 8.3% |
| |||||||
Airlines — 0.4% |
| |||||||
Alaska Air Group, Inc. | 2,763 | 176,584 | ||||||
American Airlines Group, Inc. | 8,866 | 289,120 | ||||||
Delta Air Lines, Inc. | 13,255 | 752,221 | ||||||
Southwest Airlines Co. | 10,836 | 550,252 | ||||||
United Continental Holdings, Inc. (a) | 4,967 | 434,861 | ||||||
|
| |||||||
2,203,038 | ||||||||
|
| |||||||
Apparel — 0.7% |
| |||||||
Capri Holdings Ltd. (a) | 3,324 | 115,276 | ||||||
Hanesbrands, Inc. | 8,164 | 140,584 | ||||||
NIKE, Inc. Class B | 28,048 | 2,354,630 | ||||||
PVH Corp. | 1,705 | 161,361 | ||||||
Ralph Lauren Corp. | 1,149 | 130,515 | ||||||
Tapestry, Inc. | 6,477 | 205,515 | ||||||
Under Armour, Inc. Class A (a) | 4,084 | 103,530 | ||||||
Under Armour, Inc. Class C (a) | 4,186 | 92,929 | ||||||
VF Corp. | 7,312 | 638,703 | ||||||
|
| |||||||
3,943,043 | ||||||||
|
| |||||||
Auto Manufacturers — 0.5% |
| |||||||
Ford Motor Co. | 87,688 | 897,048 |
The accompanying notes are an integral part of the financial statements.
30
Table of Contents
MML Equity Index Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
General Motors Co. | 29,364 | $ | 1,131,395 | |||||
PACCAR, Inc. | 7,690 | 551,065 | ||||||
|
| |||||||
2,579,508 | ||||||||
|
| |||||||
Auto Parts & Equipment — 0.1% |
| |||||||
Aptiv PLC | 5,764 | 465,904 | ||||||
BorgWarner, Inc. | 4,653 | 195,333 | ||||||
|
| |||||||
661,237 | ||||||||
|
| |||||||
Distribution & Wholesale — 0.2% |
| |||||||
Copart, Inc. (a) | 4,455 | 332,967 | ||||||
Fastenal Co. | 12,672 | 412,981 | ||||||
LKQ Corp. (a) | 7,051 | 187,627 | ||||||
W.W. Grainger, Inc. | 1,002 | 268,766 | ||||||
|
| |||||||
1,202,341 | ||||||||
|
| |||||||
Home Builders — 0.2% |
| |||||||
D.R. Horton, Inc. | 7,501 | 323,518 | ||||||
Lennar Corp. Class A | 6,309 | 305,734 | ||||||
PulteGroup, Inc. | 5,712 | 180,614 | ||||||
|
| |||||||
809,866 | ||||||||
|
| |||||||
Home Furnishing — 0.1% |
| |||||||
Leggett & Platt, Inc. | 2,855 | 109,546 | ||||||
Whirlpool Corp. | 1,422 | 202,436 | ||||||
|
| |||||||
311,982 | ||||||||
|
| |||||||
Housewares — 0.0% |
| |||||||
Newell Brands, Inc. | 8,788 | 135,511 | ||||||
|
| |||||||
Leisure Time — 0.2% |
| |||||||
Carnival Corp. | 8,880 | 413,364 | ||||||
Harley-Davidson, Inc. | 3,474 | 124,473 | ||||||
Norwegian Cruise Line Holdings Ltd. (a) | 4,822 | 258,604 | ||||||
Royal Caribbean Cruises Ltd. | 3,804 | 461,083 | ||||||
|
| |||||||
1,257,524 | ||||||||
|
| |||||||
Lodging — 0.4% |
| |||||||
Hilton Worldwide Holdings, Inc. | 6,496 | 634,919 | ||||||
Marriott International, Inc. Class A | 6,170 | 865,589 | ||||||
MGM Resorts International | 11,309 | 323,098 | ||||||
Wynn Resorts Ltd. | 2,154 | 267,075 | ||||||
|
| |||||||
2,090,681 | ||||||||
|
| |||||||
Retail — 5.4% |
| |||||||
Advance Auto Parts, Inc. | 1,589 | 244,928 | ||||||
AutoZone, Inc. (a) | 545 | 599,211 | ||||||
Best Buy Co., Inc. | 5,194 | 362,178 | ||||||
CarMax, Inc. (a) | 3,652 | 317,103 | ||||||
Chipotle Mexican Grill, Inc. (a) | 540 | 395,755 | ||||||
Costco Wholesale Corp. | 9,811 | 2,592,655 | ||||||
Darden Restaurants, Inc. | 2,739 | 333,418 | ||||||
Dollar General Corp. | 5,748 | 776,900 | ||||||
Dollar Tree, Inc. (a) | 5,279 | 566,912 | ||||||
Foot Locker, Inc. | 2,462 | 103,207 | ||||||
The Gap, Inc. | 4,654 | 83,632 |
Number of Shares | Value | |||||||
Genuine Parts Co. | 3,237 | $ | 335,288 | |||||
The Home Depot, Inc. | 24,507 | 5,096,721 | ||||||
Kohl’s Corp. | 3,705 | 176,173 | ||||||
L Brands, Inc. | 4,972 | 129,769 | ||||||
Lowe’s Cos., Inc. | 17,451 | 1,760,980 | ||||||
Macy’s, Inc. | 6,931 | 148,739 | ||||||
McDonald’s Corp. | 17,028 | 3,536,035 | ||||||
Nordstrom, Inc. | 2,337 | 74,457 | ||||||
O’Reilly Automotive, Inc. (a) | 1,739 | 642,247 | ||||||
Ross Stores, Inc. | 8,223 | 815,064 | ||||||
Starbucks Corp. | 26,973 | 2,261,147 | ||||||
Target Corp. | 11,414 | 988,567 | ||||||
Tiffany & Co. | 2,419 | 226,515 | ||||||
The TJX Cos., Inc. | 27,017 | 1,428,659 | ||||||
Tractor Supply Co. | 2,689 | 292,563 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. (a) | 1,250 | 433,613 | ||||||
Walgreens Boots Alliance, Inc. | 17,340 | 947,978 | ||||||
Walmart, Inc. | 31,135 | 3,440,106 | ||||||
Yum! Brands, Inc. | 6,798 | 752,335 | ||||||
|
| |||||||
29,862,855 | ||||||||
|
| |||||||
Textiles — 0.0% |
| |||||||
Mohawk Industries, Inc. (a) | 1,372 | 202,329 | ||||||
|
| |||||||
Toys, Games & Hobbies — 0.1% |
| |||||||
Hasbro, Inc. | 2,570 | 271,597 | ||||||
|
| |||||||
45,531,512 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 21.8% |
| |||||||
Agriculture — 0.9% |
| |||||||
Altria Group, Inc. | 41,782 | 1,978,377 | ||||||
Archer-Daniels-Midland Co. | 12,416 | 506,573 | ||||||
Philip Morris International, Inc. | 34,645 | 2,720,672 | ||||||
|
| |||||||
5,205,622 | ||||||||
|
| |||||||
Beverages — 1.9% |
| |||||||
Brown-Forman Corp. Class B | 3,712 | 205,756 | ||||||
The Coca-Cola Co. | 85,551 | 4,356,257 | ||||||
Constellation Brands, Inc. Class A | 3,749 | 738,328 | ||||||
Molson Coors Brewing Co. Class B | 4,178 | 233,968 | ||||||
Monster Beverage Corp. (a) | 8,673 | 553,597 | ||||||
PepsiCo, Inc. | 31,236 | 4,095,977 | ||||||
|
| |||||||
10,183,883 | ||||||||
|
| |||||||
Biotechnology — 2.0% |
| |||||||
Alexion Pharmaceuticals, Inc. (a) | 5,039 | 660,008 | ||||||
Amgen, Inc. | 13,591 | 2,504,550 | ||||||
Biogen, Inc. (a) | 4,321 | 1,010,552 | ||||||
Celgene Corp. (a) | 15,718 | 1,452,972 | ||||||
Corteva, Inc. (a) | 16,662 | 492,695 | ||||||
Gilead Sciences, Inc. | 28,297 | 1,911,745 | ||||||
Illumina, Inc. (a) | 3,290 | 1,211,214 | ||||||
Incyte Corp. (a) | 3,941 | 334,827 | ||||||
Regeneron Pharmaceuticals, Inc. (a) | 1,739 | 544,307 |
The accompanying notes are an integral part of the financial statements.
31
Table of Contents
MML Equity Index Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Vertex Pharmaceuticals, Inc. (a) | 5,728 | $ | 1,050,401 | |||||
|
| |||||||
11,173,271 | ||||||||
|
| |||||||
Commercial Services — 2.1% |
| |||||||
Automatic Data Processing, Inc. | 9,724 | 1,607,669 | ||||||
Cintas Corp. | 1,879 | 445,868 | ||||||
Equifax, Inc. | 2,677 | 362,037 | ||||||
FleetCor Technologies, Inc. (a) | 1,941 | 545,130 | ||||||
Gartner, Inc. (a) | 1,990 | 320,271 | ||||||
Global Payments, Inc. | 3,495 | 559,654 | ||||||
H&R Block, Inc. | 4,481 | 131,293 | ||||||
IHS Markit Ltd. (a) | 8,060 | 513,583 | ||||||
MarketAxess Holdings, Inc. | 839 | 269,671 | ||||||
Moody’s Corp. | 3,686 | 719,913 | ||||||
Nielsen Holdings PLC | 7,953 | 179,738 | ||||||
PayPal Holdings, Inc. (a) | 26,171 | 2,995,533 | ||||||
Quanta Services, Inc. | 3,083 | 117,740 | ||||||
Robert Half International, Inc. | 2,599 | 148,169 | ||||||
Rollins, Inc. | 3,222 | 115,573 | ||||||
S&P Global, Inc. | 5,467 | 1,245,328 | ||||||
Total System Services, Inc. | 3,610 | 463,055 | ||||||
United Rentals, Inc. (a) | 1,775 | 235,418 | ||||||
Verisk Analytics, Inc. | 3,628 | 531,357 | ||||||
|
| |||||||
11,507,000 | ||||||||
|
| |||||||
Cosmetics & Personal Care — 1.5% |
| |||||||
Colgate-Palmolive Co. | 19,117 | 1,370,115 | ||||||
Coty, Inc. Class A | 6,554 | 87,824 | ||||||
The Estee Lauder Cos., Inc. Class A | 4,899 | 897,056 | ||||||
The Procter & Gamble Co. | 55,844 | 6,123,295 | ||||||
|
| |||||||
8,478,290 | ||||||||
|
| |||||||
Foods — 1.3% |
| |||||||
Campbell Soup Co. | 4,316 | 172,942 | ||||||
Conagra Brands, Inc. | 10,767 | 285,541 | ||||||
General Mills, Inc. | 13,423 | 704,976 | ||||||
The Hershey Co. | 3,082 | 413,081 | ||||||
Hormel Foods Corp. (b) | 6,072 | 246,159 | ||||||
The J.M. Smucker Co. | 2,521 | 290,394 | ||||||
Kellogg Co. | 5,562 | 297,956 | ||||||
The Kraft Heinz Co. | 13,777 | 427,638 | ||||||
The Kroger Co. | 18,115 | 393,277 | ||||||
Lamb Weston Holdings, Inc. | 3,279 | 207,757 | ||||||
McCormick & Co., Inc. | 2,717 | 421,162 | ||||||
Mondelez International, Inc. Class A | 32,210 | 1,736,119 | ||||||
Sysco Corp. | 10,481 | 741,216 | ||||||
Tyson Foods, Inc. Class A | 6,547 | 528,605 | ||||||
|
| |||||||
6,866,823 | ||||||||
|
| |||||||
Health Care – Products — 4.0% |
| |||||||
Abbott Laboratories | 39,297 | 3,304,878 | ||||||
ABIOMED, Inc. (a) | 1,003 | 261,271 | ||||||
Align Technology, Inc. (a) | 1,614 | 441,752 | ||||||
Baxter International, Inc. | 10,575 | 866,092 | ||||||
Becton Dickinson and Co. | 6,014 | 1,515,588 |
Number of Shares | Value | |||||||
Boston Scientific Corp. (a) | 31,012 | $ | 1,332,896 | |||||
The Cooper Cos., Inc. | 1,094 | 368,558 | ||||||
Danaher Corp. | 14,031 | 2,005,311 | ||||||
DENTSPLY SIRONA, Inc. | 5,187 | 302,713 | ||||||
Edwards Lifesciences Corp. (a) | 4,662 | 861,258 | ||||||
Henry Schein, Inc. (a) | 3,372 | 235,703 | ||||||
Hologic, Inc. (a) | 5,941 | 285,287 | ||||||
IDEXX Laboratories, Inc. (a) | 1,908 | 525,330 | ||||||
Intuitive Surgical, Inc. (a) | 2,575 | 1,350,716 | ||||||
Medtronic PLC | 29,859 | 2,907,968 | ||||||
ResMed, Inc. | 3,179 | 387,933 | ||||||
Stryker Corp. | 6,912 | 1,420,969 | ||||||
Teleflex, Inc. | 1,021 | 338,104 | ||||||
Thermo Fisher Scientific, Inc. | 8,931 | 2,622,856 | ||||||
Varian Medical Systems, Inc. (a) | 2,019 | 274,846 | ||||||
Zimmer Biomet Holdings, Inc. | 4,619 | 543,841 | ||||||
|
| |||||||
22,153,870 | ||||||||
|
| |||||||
Health Care – Services — 2.0% |
| |||||||
Anthem, Inc. | 5,739 | 1,619,603 | ||||||
Centene Corp. (a) | 9,165 | 480,613 | ||||||
DaVita, Inc. (a) | 2,755 | 154,996 | ||||||
HCA Healthcare, Inc. | 5,925 | 800,882 | ||||||
Humana, Inc. | 3,008 | 798,022 | ||||||
IQVIA Holdings, Inc. (a) | 3,510 | 564,759 | ||||||
Laboratory Corp. of America Holdings (a) | 2,188 | 378,305 | ||||||
Quest Diagnostics, Inc. | 2,978 | 303,190 | ||||||
UnitedHealth Group, Inc. | 21,181 | 5,168,376 | ||||||
Universal Health Services, Inc. Class B | 1,863 | 242,917 | ||||||
WellCare Health Plans, Inc. (a) | 1,109 | 316,143 | ||||||
|
| |||||||
10,827,806 | ||||||||
|
| |||||||
Household Products & Wares — 0.4% |
| |||||||
Avery Dennison Corp. | 1,875 | 216,900 | ||||||
Church & Dwight Co., Inc. | 5,454 | 398,469 | ||||||
The Clorox Co. | 2,843 | 435,292 | ||||||
Kimberly-Clark Corp. | 7,641 | 1,018,393 | ||||||
|
| |||||||
2,069,054 | ||||||||
|
| |||||||
Pharmaceuticals — 5.7% |
| |||||||
AbbVie, Inc. | 32,938 | 2,395,251 | ||||||
Allergan PLC | 6,853 | 1,147,398 | ||||||
AmerisourceBergen Corp. | 3,466 | 295,511 | ||||||
Bristol-Myers Squibb Co. | 36,468 | 1,653,824 | ||||||
Cardinal Health, Inc. | 6,612 | 311,425 | ||||||
Cigna Corp. (a) | 8,432 | 1,328,462 | ||||||
CVS Health Corp. | 28,983 | 1,579,284 | ||||||
Eli Lilly & Co. | 19,251 | 2,132,818 | ||||||
Johnson & Johnson | 59,155 | 8,239,109 | ||||||
McKesson Corp. | 4,256 | 571,964 | ||||||
Merck & Co., Inc. | 57,389 | 4,812,068 | ||||||
Mylan NV (a) | 11,528 | 219,493 | ||||||
Nektar Therapeutics (a) | 3,793 | 134,955 |
The accompanying notes are an integral part of the financial statements.
32
Table of Contents
MML Equity Index Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Perrigo Co. PLC | 2,720 | $ | 129,526 | |||||
Pfizer, Inc. | 123,679 | 5,357,774 | ||||||
Zoetis, Inc. | 10,625 | 1,205,831 | ||||||
|
| |||||||
31,514,693 | ||||||||
|
| |||||||
119,980,312 | ||||||||
|
| |||||||
Energy — 5.0% |
| |||||||
Oil & Gas — 4.2% |
| |||||||
Anadarko Petroleum Corp. | 11,225 | 792,036 | ||||||
Apache Corp. | 8,358 | 242,131 | ||||||
Cabot Oil & Gas Corp. | 9,445 | 216,857 | ||||||
Chevron Corp. | 42,468 | 5,284,718 | ||||||
Cimarex Energy Co. | 2,211 | 131,179 | ||||||
Concho Resources, Inc. | 4,449 | 459,048 | ||||||
ConocoPhillips | 25,167 | 1,535,187 | ||||||
Devon Energy Corp. | 9,245 | 263,667 | ||||||
Diamondback Energy, Inc. | 3,426 | 373,331 | ||||||
EOG Resources, Inc. | 12,992 | 1,210,335 | ||||||
Exxon Mobil Corp. | 94,319 | 7,227,665 | ||||||
Helmerich & Payne, Inc. | 2,383 | 120,628 | ||||||
Hess Corp. | 5,645 | 358,853 | ||||||
HollyFrontier Corp. | 3,425 | 158,509 | ||||||
Marathon Oil Corp. | 18,221 | 258,920 | ||||||
Marathon Petroleum Corp. | 14,742 | 823,783 | ||||||
Noble Energy, Inc. | 10,780 | 241,472 | ||||||
Occidental Petroleum Corp. | 16,626 | 835,955 | ||||||
Phillips 66 | 9,308 | 870,670 | ||||||
Pioneer Natural Resources Co. | 3,735 | 574,667 | ||||||
Valero Energy Corp. | 9,264 | 793,091 | ||||||
|
| |||||||
22,772,702 | ||||||||
|
| |||||||
Oil & Gas Services — 0.4% |
| |||||||
Baker Hughes a GE Co. | 11,422 | 281,324 | ||||||
Halliburton Co. | 19,336 | 439,701 | ||||||
National Oilwell Varco, Inc. | 8,602 | 191,222 | ||||||
Schlumberger Ltd. | 31,027 | 1,233,013 | ||||||
TechnipFMC PLC | 9,479 | 245,885 | ||||||
|
| |||||||
2,391,145 | ||||||||
|
| |||||||
Pipelines — 0.4% |
| |||||||
Kinder Morgan, Inc. | 43,189 | 901,786 | ||||||
ONEOK, Inc. | 9,292 | 639,383 | ||||||
The Williams Cos., Inc. | 26,864 | 753,267 | ||||||
|
| |||||||
2,294,436 | ||||||||
|
| |||||||
27,458,283 | ||||||||
|
| |||||||
Financial — 17.8% |
| |||||||
Banks — 6.2% |
| |||||||
Bank of America Corp. | 196,953 | 5,711,637 | ||||||
The Bank of New York Mellon Corp. | 19,716 | 870,461 | ||||||
BB&T Corp. | 17,137 | 841,941 | ||||||
Citigroup, Inc. | 51,525 | 3,608,296 | ||||||
Citizens Financial Group, Inc. | 10,199 | 360,637 | ||||||
Comerica, Inc. | 3,396 | 246,685 |
Number of Shares | Value | |||||||
Fifth Third Bancorp | 16,312 | $ | 455,105 | |||||
First Republic Bank | 3,654 | 356,813 | ||||||
The Goldman Sachs Group, Inc. | 7,597 | 1,554,346 | ||||||
Huntington Bancshares, Inc. | 23,193 | 320,527 | ||||||
JP Morgan Chase & Co. | 72,227 | 8,074,979 | ||||||
KeyCorp | 22,354 | 396,784 | ||||||
M&T Bank Corp. | 3,071 | 522,285 | ||||||
Morgan Stanley | 28,467 | 1,247,139 | ||||||
Northern Trust Corp. | 4,843 | 435,870 | ||||||
The PNC Financial Services Group, Inc. | 10,062 | 1,381,311 | ||||||
Regions Financial Corp. | 22,544 | 336,807 | ||||||
State Street Corp. | 8,397 | 470,736 | ||||||
SunTrust Banks, Inc. | 9,830 | 617,815 | ||||||
SVB Financial Group (a) | 1,170 | 262,770 | ||||||
US Bancorp | 33,377 | 1,748,955 | ||||||
Wells Fargo & Co. | 90,080 | 4,262,586 | ||||||
Zions Bancorp NA | 4,170 | 191,737 | ||||||
|
| |||||||
34,276,222 | ||||||||
|
| |||||||
Diversified Financial Services — 4.3% |
| |||||||
Affiliated Managers Group, Inc. | 1,133 | 104,395 | ||||||
Alliance Data Systems Corp. | 992 | 139,009 | ||||||
American Express Co. | 15,247 | 1,882,090 | ||||||
Ameriprise Financial, Inc. | 3,005 | 436,206 | ||||||
BlackRock, Inc. | 2,645 | 1,241,298 | ||||||
Capital One Financial Corp. | 10,504 | 953,133 | ||||||
Cboe Global Markets, Inc. | 2,494 | 258,453 | ||||||
The Charles Schwab Corp. | 26,557 | 1,067,326 | ||||||
CME Group, Inc. | 7,988 | 1,550,551 | ||||||
Discover Financial Services | 7,156 | 555,234 | ||||||
E*TRADE Financial Corp. | 5,450 | 243,070 | ||||||
Franklin Resources, Inc. | 6,600 | 229,680 | ||||||
Intercontinental Exchange, Inc. | 12,610 | 1,083,703 | ||||||
Invesco Ltd. | 8,889 | 181,869 | ||||||
Jefferies Financial Group, Inc. | 5,719 | 109,976 | ||||||
Mastercard, Inc. Class A | 20,026 | 5,297,478 | ||||||
Nasdaq, Inc. | 2,580 | 248,119 | ||||||
Raymond James Financial, Inc. | 2,828 | 239,107 | ||||||
Synchrony Financial | 14,167 | 491,170 | ||||||
T. Rowe Price Group, Inc. | 5,241 | 574,990 | ||||||
Visa, Inc. Class A | 38,710 | 6,718,120 | ||||||
The Western Union Co. | 9,763 | 194,186 | ||||||
|
| |||||||
23,799,163 | ||||||||
|
| |||||||
Insurance — 4.2% |
| |||||||
Aflac, Inc. | 16,645 | 912,312 | ||||||
The Allstate Corp. | 7,462 | 758,811 | ||||||
American International Group, Inc. | 19,287 | 1,027,611 | ||||||
Aon PLC | 5,377 | 1,037,654 | ||||||
Arthur J Gallagher & Co. | 4,080 | 357,367 | ||||||
Assurant, Inc. | 1,344 | 142,975 | ||||||
Berkshire Hathaway, Inc. Class B (a) | 43,142 | 9,196,580 | ||||||
Chubb Ltd. | 10,169 | 1,497,792 | ||||||
Cincinnati Financial Corp. | 3,361 | 348,435 |
The accompanying notes are an integral part of the financial statements.
33
Table of Contents
MML Equity Index Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Everest Re Group Ltd. | 906 | $ | 223,945 | |||||
The Hartford Financial Services Group, Inc. | 7,973 | 444,256 | ||||||
Lincoln National Corp. | 4,531 | 292,023 | ||||||
Loews Corp. | 6,075 | 332,120 | ||||||
Marsh & McLennan Cos., Inc. | 11,386 | 1,135,754 | ||||||
MetLife, Inc. | 21,234 | 1,054,693 | ||||||
Principal Financial Group, Inc. | 5,740 | 332,461 | ||||||
The Progressive Corp. | 12,953 | 1,035,333 | ||||||
Prudential Financial, Inc. | 9,071 | 916,171 | ||||||
Torchmark Corp. | 2,272 | 203,253 | ||||||
The Travelers Cos., Inc. | 5,843 | 873,645 | ||||||
Unum Group | 4,826 | 161,912 | ||||||
Willis Towers Watson PLC | 2,863 | 548,379 | ||||||
|
| |||||||
22,833,482 | ||||||||
|
| |||||||
Real Estate — 0.1% |
| |||||||
CBRE Group, Inc. Class A (a) | 6,912 | 354,586 | ||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 3.0% |
| |||||||
Alexandria Real Estate Equities, Inc. | 2,498 | 352,443 | ||||||
American Tower Corp. | 9,840 | 2,011,788 | ||||||
Apartment Investment & Management Co. Class A | 3,400 | 170,408 | ||||||
AvalonBay Communities, Inc. | 3,120 | 633,922 | ||||||
Boston Properties, Inc. | 3,427 | 442,083 | ||||||
Crown Castle International Corp. | 9,291 | 1,211,082 | ||||||
Digital Realty Trust, Inc. | 4,610 | 543,012 | ||||||
Duke Realty Corp. | 7,989 | 252,532 | ||||||
Equinix, Inc. | 1,875 | 945,544 | ||||||
Equity Residential | 8,209 | 623,227 | ||||||
Essex Property Trust, Inc. | 1,457 | 425,342 | ||||||
Extra Space Storage, Inc. | 2,822 | 299,414 | ||||||
Federal Realty Investment Trust | 1,659 | 213,613 | ||||||
HCP, Inc. | 10,594 | 338,796 | ||||||
Host Hotels & Resorts, Inc. | 16,416 | 299,099 | ||||||
Iron Mountain, Inc. | 6,388 | 199,944 | ||||||
Kimco Realty Corp. | 9,435 | 174,359 | ||||||
The Macerich Co. | 2,294 | 76,826 | ||||||
Mid-America Apartment Communities, Inc. | 2,526 | 297,462 | ||||||
Prologis, Inc. | 14,107 | 1,129,971 | ||||||
Public Storage | 3,329 | 792,868 | ||||||
Realty Income Corp. | 7,047 | 486,032 | ||||||
Regency Centers Corp. | 3,722 | 248,406 | ||||||
SBA Communications Corp. (a) | 2,541 | 571,318 | ||||||
Simon Property Group, Inc. | 6,914 | 1,104,581 | ||||||
SL Green Realty Corp. | 1,873 | 150,533 | ||||||
UDR, Inc. | 6,354 | 285,231 | ||||||
Ventas, Inc. | 8,260 | 564,571 | ||||||
Vornado Realty Trust | 3,851 | 246,849 | ||||||
Welltower, Inc. | 9,036 | 736,705 | ||||||
Weyerhaeuser Co. | 16,555 | 436,059 | ||||||
|
| |||||||
16,264,020 | ||||||||
|
|
Number of Shares | Value | |||||||
Savings & Loans — 0.0% |
| |||||||
People’s United Financial, Inc. | 8,851 | $ | 148,520 | |||||
|
| |||||||
97,675,993 | ||||||||
|
| |||||||
Industrial — 9.2% |
| |||||||
Aerospace & Defense — 2.5% |
| |||||||
Arconic, Inc. | 9,007 | 232,561 | ||||||
The Boeing Co. | 11,656 | 4,242,900 | ||||||
General Dynamics Corp. | 6,066 | 1,102,920 | ||||||
L3 Technologies, Inc. | 1,758 | 431,009 | ||||||
L3Harris Technologies, Inc. | 2,615 | 494,575 | ||||||
Lockheed Martin Corp. | 5,480 | 1,992,199 | ||||||
Northrop Grumman Corp. | 3,765 | 1,216,509 | ||||||
Raytheon Co. | 6,203 | 1,078,578 | ||||||
TransDigm Group, Inc. (a) | 1,100 | 532,180 | ||||||
United Technologies Corp. | 18,068 | 2,352,454 | ||||||
|
| |||||||
13,675,885 | ||||||||
|
| |||||||
Building Materials — 0.4% |
| |||||||
Fortune Brands Home & Security, Inc. | 3,151 | 180,017 | ||||||
Johnson Controls International PLC | 17,747 | 733,129 | ||||||
Martin Marietta Materials, Inc. | 1,383 | 318,242 | ||||||
Masco Corp. | 6,498 | 254,981 | ||||||
Vulcan Materials Co. | 2,922 | 401,220 | ||||||
|
| |||||||
1,887,589 | ||||||||
|
| |||||||
Electrical Components & Equipment — 0.3% |
| |||||||
AMETEK, Inc. | 5,039 | 457,743 | ||||||
Emerson Electric Co. | 13,792 | 920,202 | ||||||
|
| |||||||
1,377,945 | ||||||||
|
| |||||||
Electronics — 1.3% |
| |||||||
Agilent Technologies, Inc. | 7,044 | 525,975 | ||||||
Allegion PLC | 2,108 | 233,039 | ||||||
Amphenol Corp. Class A | 6,722 | 644,909 | ||||||
FLIR Systems, Inc. | 2,955 | 159,866 | ||||||
Fortive Corp. | 6,532 | 532,489 | ||||||
Garmin Ltd. | 2,708 | 216,098 | ||||||
Honeywell International, Inc. | 16,230 | 2,833,596 | ||||||
Keysight Technologies, Inc. (a) | 4,166 | 374,148 | ||||||
Mettler-Toledo International, Inc. (a) | 550 | 462,000 | ||||||
PerkinElmer, Inc. | 2,469 | 237,863 | ||||||
TE Connectivity Ltd. | 7,520 | 720,266 | ||||||
Waters Corp. (a) | 1,538 | 331,039 | ||||||
|
| |||||||
7,271,288 | ||||||||
|
| |||||||
Engineering & Construction — 0.0% |
| |||||||
Jacobs Engineering Group, Inc. | 2,619 | 221,017 | ||||||
|
| |||||||
Environmental Controls — 0.3% |
| |||||||
Pentair PLC | 3,437 | 127,856 | ||||||
Republic Services, Inc. | 4,782 | 414,313 | ||||||
Waste Management, Inc. | 8,739 | 1,008,218 | ||||||
|
| |||||||
1,550,387 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
34
Table of Contents
MML Equity Index Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Hand & Machine Tools — 0.1% |
| |||||||
Snap-on, Inc. | 1,244 | $ | 206,056 | |||||
Stanley Black & Decker, Inc. | 3,356 | 485,311 | ||||||
|
| |||||||
691,367 | ||||||||
|
| |||||||
Machinery – Construction & Mining — 0.3% |
| |||||||
Caterpillar, Inc. | 12,767 | 1,740,014 | ||||||
|
| |||||||
Machinery – Diversified — 0.7% |
| |||||||
Cummins, Inc. | 3,210 | 550,001 | ||||||
Deere & Co. | 7,065 | 1,170,741 | ||||||
Dover Corp. | 3,214 | 322,043 | ||||||
Flowserve Corp. | 2,954 | 155,646 | ||||||
Rockwell Automation, Inc. | 2,652 | 434,477 | ||||||
Roper Technologies, Inc. | 2,325 | 851,555 | ||||||
Wabtec Corp. | 3,658 | 262,498 | ||||||
Xylem, Inc. | 3,981 | 332,971 | ||||||
|
| |||||||
4,079,932 | ||||||||
|
| |||||||
Miscellaneous – Manufacturing — 1.4% |
| |||||||
3M Co. | 12,840 | 2,225,686 | ||||||
A.O. Smith Corp. | 3,197 | 150,770 | ||||||
Eaton Corp. PLC | 9,397 | 782,582 | ||||||
General Electric Co. | 194,326 | 2,040,423 | ||||||
Illinois Tool Works, Inc. | 6,697 | 1,009,975 | ||||||
Ingersoll-Rand PLC | 5,372 | 680,471 | ||||||
Parker-Hannifin Corp. | 2,868 | 487,589 | ||||||
Textron, Inc. | 5,219 | 276,816 | ||||||
|
| |||||||
7,654,312 | ||||||||
|
| |||||||
Packaging & Containers — 0.3% |
| |||||||
Amcor PLC (a) | 36,002 | 413,663 | ||||||
Ball Corp. | 7,409 | 518,556 | ||||||
Packaging Corp. of America | 2,112 | 201,316 | ||||||
Sealed Air Corp. | 3,393 | 145,152 | ||||||
WestRock Co. | 5,697 | 207,770 | ||||||
|
| |||||||
1,486,457 | ||||||||
|
| |||||||
Shipbuilding — 0.0% |
| |||||||
Huntington Ingalls Industries, Inc. | 929 | 208,784 | ||||||
|
| |||||||
Transportation — 1.6% |
| |||||||
C.H. Robinson Worldwide, Inc. | 3,030 | 255,581 | ||||||
CSX Corp. | 17,184 | 1,329,526 | ||||||
Expeditors International of Washington, Inc. | 3,805 | 288,647 | ||||||
FedEx Corp. | 5,326 | 874,476 | ||||||
J.B. Hunt Transport Services, Inc. | 1,953 | 178,524 | ||||||
Kansas City Southern | 2,234 | 272,146 | ||||||
Norfolk Southern Corp. | 5,931 | 1,182,226 | ||||||
Union Pacific Corp. | 15,761 | 2,665,343 | ||||||
United Parcel Service, Inc. Class B | 15,538 | 1,604,609 | ||||||
|
| |||||||
8,651,078 | ||||||||
|
| |||||||
50,496,055 | ||||||||
|
|
Number of Shares | Value | |||||||
Technology — 16.6% |
| |||||||
Computers — 5.1% |
| |||||||
Accenture PLC Class A | 14,197 | $ | 2,623,180 | |||||
Apple, Inc. | 97,361 | 19,269,689 | ||||||
Cognizant Technology Solutions Corp. Class A | 12,758 | 808,730 | ||||||
DXC Technology Co. | 5,948 | 328,032 | ||||||
Fortinet, Inc. (a) | 3,229 | 248,084 | ||||||
Hewlett Packard Enterprise Co. | 29,817 | 445,764 | ||||||
HP, Inc. | 33,495 | 696,361 | ||||||
International Business Machines Corp. | 19,742 | 2,722,422 | ||||||
NetApp, Inc. | 5,472 | 337,622 | ||||||
Seagate Technology PLC | 5,701 | 268,631 | ||||||
Western Digital Corp. | 6,476 | 307,934 | ||||||
|
| |||||||
28,056,449 | ||||||||
|
| |||||||
Office & Business Equipment — 0.0% |
| |||||||
Xerox Corp. | 4,496 | 159,203 | ||||||
|
| |||||||
Semiconductors — 3.8% |
| |||||||
Advanced Micro Devices, Inc. (a) | 19,870 | 603,452 | ||||||
Analog Devices, Inc. | 8,259 | 932,193 | ||||||
Applied Materials, Inc. | 20,803 | 934,263 | ||||||
Broadcom, Inc. | 8,823 | 2,539,789 | ||||||
Intel Corp. | 99,764 | 4,775,703 | ||||||
IPG Photonics Corp. (a) | 773 | 119,235 | ||||||
KLA-Tencor Corp. | 3,573 | 422,329 | ||||||
Lam Research Corp. | 3,328 | 625,131 | ||||||
Maxim Integrated Products, Inc. | 6,061 | 362,569 | ||||||
Microchip Technology, Inc. | 5,372 | 465,752 | ||||||
Micron Technology, Inc. (a) | 24,574 | 948,311 | ||||||
NVIDIA Corp. | 13,562 | 2,227,287 | ||||||
Qorvo, Inc. (a) | 2,602 | 173,319 | ||||||
QUALCOMM, Inc. | 27,067 | 2,058,987 | ||||||
Skyworks Solutions, Inc. | 3,865 | 298,648 | ||||||
Texas Instruments, Inc. | 20,909 | 2,399,517 | ||||||
Xilinx, Inc. | 5,704 | 672,616 | ||||||
|
| |||||||
20,559,101 | ||||||||
|
| |||||||
Software — 7.7% |
| |||||||
Activision Blizzard, Inc. | 17,162 | 810,046 | ||||||
Adobe, Inc. (a) | 10,868 | 3,202,256 | ||||||
Akamai Technologies, Inc. (a) | 3,622 | 290,267 | ||||||
ANSYS, Inc. (a) | 1,858 | 380,556 | ||||||
Autodesk, Inc. (a) | 4,919 | 801,305 | ||||||
Broadridge Financial Solutions, Inc. | 2,565 | 327,499 | ||||||
Cadence Design Systems, Inc. (a) | 6,219 | 440,367 | ||||||
Cerner Corp. | 7,336 | 537,729 | ||||||
Citrix Systems, Inc. | 2,775 | 272,339 | ||||||
Electronic Arts, Inc. (a) | 6,646 | 672,974 | ||||||
Fidelity National Information Services, Inc. | 7,244 | 888,694 | ||||||
Fiserv, Inc. (a) | 8,799 | 802,117 | ||||||
Intuit, Inc. | 5,786 | 1,512,055 | ||||||
Jack Henry & Associates, Inc. | 1,709 | 228,869 |
The accompanying notes are an integral part of the financial statements.
35
Table of Contents
MML Equity Index Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Microsoft Corp. | 170,680 | $ | 22,864,293 | |||||
MSCI, Inc. | 1,870 | 446,537 | ||||||
Oracle Corp. | 54,018 | 3,077,406 | ||||||
Paychex, Inc. | 7,091 | 583,518 | ||||||
Red Hat, Inc. (a) | 3,975 | 746,346 | ||||||
salesforce.com, Inc. (a) | 17,302 | 2,625,233 | ||||||
Synopsys, Inc. (a) | 3,319 | 427,122 | ||||||
Take-Two Interactive Software, Inc. (a) | 2,511 | 285,074 | ||||||
|
| |||||||
42,222,602 | ||||||||
|
| |||||||
90,997,355 | ||||||||
|
| |||||||
Utilities — 3.3% |
| |||||||
Electric — 3.1% |
| |||||||
AES Corp. | 14,738 | 247,009 | ||||||
Alliant Energy Corp. | 5,241 | 257,228 | ||||||
Ameren Corp. | 5,428 | 407,697 | ||||||
American Electric Power Co., Inc. | 11,053 | 972,775 | ||||||
CenterPoint Energy, Inc. | 11,105 | 317,936 | ||||||
CMS Energy Corp. | 6,281 | 363,733 | ||||||
Consolidated Edison, Inc. | 7,335 | 643,133 | ||||||
Dominion Energy, Inc. | 17,888 | 1,383,100 | ||||||
DTE Energy Co. | 4,114 | 526,098 | ||||||
Duke Energy Corp. | 16,242 | 1,433,194 | ||||||
Edison International | 7,228 | 487,239 | ||||||
Entergy Corp. | 4,201 | 432,409 | ||||||
Evergy, Inc. | 5,478 | 329,502 | ||||||
Eversource Energy | 7,206 | 545,927 | ||||||
Exelon Corp. | 21,710 | 1,040,777 | ||||||
FirstEnergy Corp. | 11,165 | 477,974 | ||||||
NextEra Energy, Inc. | 10,659 | 2,183,603 | ||||||
NRG Energy, Inc. | 5,978 | 209,947 | ||||||
Pinnacle West Capital Corp. | 2,496 | 234,849 | ||||||
PPL Corp. | 15,988 | 495,788 | ||||||
Public Service Enterprise Group, Inc. | 11,214 | 659,608 | ||||||
Sempra Energy | 6,152 | 845,531 | ||||||
The Southern Co. | 23,193 | 1,282,109 | ||||||
WEC Energy Group, Inc. | 6,998 | 583,423 | ||||||
Xcel Energy, Inc. | 11,405 | 678,483 | ||||||
|
| |||||||
17,039,072 | ||||||||
|
| |||||||
Gas — 0.1% |
| |||||||
Atmos Energy Corp. | 2,592 | 273,611 | ||||||
NiSource, Inc. | 8,287 | 238,666 | ||||||
|
| |||||||
512,277 | ||||||||
|
| |||||||
Water — 0.1% |
| |||||||
American Water Works Co., Inc. | 4,013 | 465,508 | ||||||
|
| |||||||
18,016,857 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $351,719,746) | 544,372,047 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $351,719,746) | 544,372,047 | |||||||
|
|
Number of Shares | Value | |||||||
MUTUAL FUNDS — 0.0% |
| |||||||
Diversified Financial Services — 0.0% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (c) | 254,943 | $ | 254,943 | |||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $254,943) | 254,943 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $351,974,689) | 544,626,990 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 1.0% |
| |||||||
Repurchase Agreement — 0.8% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (d) | $ | 4,304,171 | 4,304,171 | |||||
|
| |||||||
U.S. Treasury Bill — 0.2% |
| |||||||
U.S. Treasury Bill | 1,085,000 | 1,083,949 | ||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $5,387,785) | 5,388,120 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $357,362,474) (f) | 550,015,110 | |||||||
Other Assets/(Liabilities) — (0.1)% | (550,493 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 549,464,617 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $249,082 or 0.05% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers. (Note 2). |
(c) | Represents investment of security lending collateral.(Note 2). |
(d) | Maturity value of $4,304,619. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $4,394,927. |
(e) | A portion of this security is pledged/held as collateral for open futures contracts.(Note 2). |
(f) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
36
Table of Contents
MML Equity Index Fund – Portfolio of Investments(Continued)
Futures contracts
Expiration Date | Number of Contracts | Notional Amount | Value/Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Long | ||||||||||||||||
S&P 500 E-Mini Index | 9/20/19 | 38 | $ | 5,524,891 | $ | 69,089 | ||||||||||
|
|
The accompanying notes are an integral part of the financial statements.
37
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 98.1% |
| |||||||
COMMON STOCK — 98.1% |
| |||||||
Basic Materials — 3.8% |
| |||||||
Chemicals — 3.8% |
| |||||||
Linde PLC | 54,624 | $ | 10,968,499 | |||||
|
| |||||||
Consumer, Cyclical — 15.3% |
| |||||||
Apparel — 4.4% |
| |||||||
NIKE, Inc. Class B | 154,511 | 12,971,198 | ||||||
|
| |||||||
Retail — 10.9% |
| |||||||
Costco Wholesale Corp. | 24,893 | 6,578,224 | ||||||
McDonald’s Corp. | 72,072 | 14,966,472 | ||||||
The TJX Cos., Inc. | 194,692 | 10,295,313 | ||||||
|
| |||||||
31,840,009 | ||||||||
|
| |||||||
44,811,207 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 36.5% |
| |||||||
Beverages — 13.5% |
| |||||||
The Coca-Cola Co. | 285,577 | 14,541,581 | ||||||
Diageo PLC | 291,611 | 12,558,011 | ||||||
PepsiCo, Inc. | 93,411 | 12,248,985 | ||||||
|
| |||||||
39,348,577 | ||||||||
|
| |||||||
Cosmetics & Personal Care — 4.0% |
| |||||||
Colgate-Palmolive Co. | 161,442 | 11,570,548 | ||||||
|
| |||||||
Health Care – Products — 10.9% |
| |||||||
Baxter International, Inc. | 107,182 | 8,778,206 | ||||||
Danaher Corp. | 61,455 | 8,783,148 | ||||||
Medtronic PLC | 148,133 | 14,426,673 | ||||||
|
| |||||||
31,988,027 | ||||||||
|
| |||||||
Health Care – Services — 4.9% |
| |||||||
UnitedHealth Group, Inc. | 59,292 | 14,467,841 | ||||||
|
| |||||||
Pharmaceuticals — 3.2% |
| |||||||
Johnson & Johnson | 67,344 | 9,379,672 | ||||||
|
| |||||||
106,754,665 | ||||||||
|
| |||||||
Financial — 24.1% |
| |||||||
Banks — 3.6% |
| |||||||
The PNC Financial Services Group, Inc. | 77,383 | 10,623,138 | ||||||
|
| |||||||
Diversified Financial Services — 5.5% |
| |||||||
American Express Co. | 70,816 | 8,741,527 | ||||||
Visa, Inc. Class A | 42,440 | 7,365,462 | ||||||
|
| |||||||
16,106,989 | ||||||||
|
| |||||||
Insurance — 7.6% |
| |||||||
Chubb Ltd. | 88,542 | 13,041,351 | ||||||
Marsh & McLennan Cos., Inc. | 91,042 | 9,081,440 | ||||||
|
| |||||||
22,122,791 | ||||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 7.4% |
| |||||||
American Tower Corp. | 47,890 | 9,791,111 |
Number of Shares | Value | |||||||
Public Storage | 48,970 | $ | 11,663,185 | |||||
|
| |||||||
21,454,296 | ||||||||
|
| |||||||
70,307,214 | ||||||||
|
| |||||||
Industrial — 11.9% |
| |||||||
Aerospace & Defense — 5.6% |
| |||||||
General Dynamics Corp. | 53,931 | 9,805,734 | ||||||
Lockheed Martin Corp. | 18,435 | 6,701,860 | ||||||
|
| |||||||
16,507,594 | ||||||||
|
| |||||||
Transportation — 6.3% |
| |||||||
Canadian National Railway Co. | 94,964 | 8,789,002 | ||||||
Union Pacific Corp. | 56,665 | 9,582,618 | ||||||
|
| |||||||
18,371,620 | ||||||||
|
| |||||||
34,879,214 | ||||||||
|
| |||||||
Technology — 6.5% |
| |||||||
Computers — 2.5% |
| |||||||
Accenture PLC Class A | 39,668 | 7,329,456 | ||||||
|
| |||||||
Software — 4.0% |
| |||||||
Microsoft Corp. | 85,984 | 11,518,417 | ||||||
|
| |||||||
18,847,873 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $269,454,773) | 286,568,672 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $269,454,773) | 286,568,672 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $269,454,773) | 286,568,672 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 1.9% |
| |||||||
Repurchase Agreement — 1.9% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (a) | $ | 5,640,314 | 5,640,314 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $5,640,314) | 5,640,314 | |||||||
|
| |||||||
TOTAL INVESTMENTS —100.0% (Cost $275,095,087) (b) | 292,208,986 | |||||||
Other Assets/(Liabilities) — 0.0% | 102,323 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 292,311,309 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
38
Table of Contents
MML Focused Equity Fund – Portfolio of Investments(Continued)
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Maturity value of $5,640,902. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $5,754,655. |
(b) | See Note 6 for aggregate cost for federal tax purposes. |
Country weightings, as a percentage of net assets, is as follows:
United States | 75.1 | % | ||
Ireland | 11.2 | % | ||
Switzerland | 4.5 | % | ||
United Kingdom | 4.3 | % | ||
Canada | 3.0 | % | ||
|
| |||
Total Long-Term Investments | 98.1 | % | ||
Short-Term Investments and Other Assets and Liabilities | 1.9 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
The accompanying notes are an integral part of the financial statements.
39
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 96.7% |
| |||||||
COMMON STOCK — 96.7% |
| |||||||
Canada — 2.6% |
| |||||||
Husky Energy, Inc. | 207,400 | $ | 1,965,434 | |||||
Wheaton Precious Metals Corp. | 250,200 | 6,050,807 | ||||||
|
| |||||||
8,016,241 | ||||||||
|
| |||||||
Cayman Islands — 4.1% |
| |||||||
Baidu, Inc. Sponsored ADR (a) | 28,170 | 3,306,031 | ||||||
CK Asset Holdings Ltd. | 584,554 | 4,563,205 | ||||||
CK Hutchison Holdings Ltd. | 487,254 | 4,793,939 | ||||||
|
| |||||||
12,663,175 | ||||||||
|
| |||||||
China — 2.4% |
| |||||||
China Telecom Corp. Ltd. Class H | 11,037,643 | 5,557,914 | ||||||
Sinopharm Group Co. Ltd. Class H | 568,800 | 2,004,385 | ||||||
|
| |||||||
7,562,299 | ||||||||
|
| |||||||
Denmark — 1.4% |
| |||||||
Vestas Wind Systems A/S | 51,119 | 4,421,947 | ||||||
|
| |||||||
France — 13.9% |
| |||||||
AXA SA | 60,311 | 1,584,382 | ||||||
BNP Paribas SA | 196,468 | 9,347,627 | ||||||
Cie de Saint-Gobain | 103,887 | 4,060,775 | ||||||
Cie Generale des Etablissements Michelin SCA | 35,146 | 4,458,898 | ||||||
Credit Agricole SA | 112,057 | 1,343,900 | ||||||
Sanofi | 82,015 | 7,095,027 | ||||||
Total SA | 136,357 | 7,629,324 | ||||||
Veolia Environnement SA | 314,906 | 7,677,637 | ||||||
|
| |||||||
43,197,570 | ||||||||
|
| |||||||
Germany — 12.3% |
| |||||||
Bayer AG Registered | 64,174 | 4,457,483 | ||||||
Deutsche Telekom AG Registered | 424,671 | 7,349,140 | ||||||
E.ON SE | 767,857 | 8,339,484 | ||||||
Fresenius Medical Care AG & Co. KGaA | 40,801 | 3,200,792 | ||||||
Infineon Technologies AG | 206,021 | 3,640,819 | ||||||
Merck KGaA | 43,928 | 4,596,354 | ||||||
Siemens AG Registered | 42,985 | 5,109,398 | ||||||
Telefonica Deutschland Holding AG | 610,675 | 1,707,087 | ||||||
|
| |||||||
38,400,557 | ||||||||
|
| |||||||
Hong Kong — 2.5% |
| |||||||
AIA Group Ltd. | 326,400 | 3,528,594 | ||||||
China Mobile Ltd. | 480,000 | 4,369,154 | ||||||
|
| |||||||
7,897,748 | ||||||||
|
| |||||||
Ireland — 3.5% |
| |||||||
Bank of Ireland Group PLC | 572,268 | 2,999,999 | ||||||
CRH PLC | 239,772 | 7,834,021 | ||||||
|
| |||||||
10,834,020 | ||||||||
|
|
Number of Shares | Value | |||||||
Israel — 1.0% |
| |||||||
Teva Pharmaceutical Industries Ltd. Sponsored ADR (a) | 334,268 | $ | 3,085,294 | |||||
|
| |||||||
Italy — 2.3% |
| |||||||
Eni SpA | 438,653 | 7,266,012 | ||||||
|
| |||||||
Japan — 13.8% |
| |||||||
Astellas Pharma, Inc. | 356,700 | 5,093,013 | ||||||
IHI Corp. | 45,800 | 1,107,509 | ||||||
Kirin Holdings Co. Ltd. | 280,100 | 6,045,592 | ||||||
Mitsui Fudosan Co. Ltd. | 210,000 | 5,099,035 | ||||||
Panasonic Corp. | 345,400 | 2,884,021 | ||||||
Ryohin Keikaku Co. Ltd. | 7,400 | 1,338,935 | ||||||
Seven & i Holdings Co. Ltd. | 92,500 | 3,135,314 | ||||||
Sumitomo Metal Mining Co. Ltd. | 113,700 | 3,408,530 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 182,300 | 6,455,238 | ||||||
Sumitomo Rubber Industries Ltd. | 32,200 | 373,141 | ||||||
Suntory Beverage & Food Ltd. | 74,100 | 3,216,823 | ||||||
Takeda Pharmaceutical Co. Ltd. | 136,433 | 4,849,513 | ||||||
|
| |||||||
43,006,664 | ||||||||
|
| |||||||
Luxembourg — 1.6% |
| |||||||
SES SA | 246,017 | 3,852,311 | ||||||
Tenaris SA | 76,971 | 1,012,712 | ||||||
|
| |||||||
4,865,023 | ||||||||
|
| |||||||
Netherlands — 4.9% |
| |||||||
Akzo Nobel NV | 28,606 | 2,688,817 | ||||||
ING Groep NV | 693,656 | 8,043,599 | ||||||
NXP Semiconductor NV | 47,900 | 4,675,519 | ||||||
|
| |||||||
15,407,935 | ||||||||
|
| |||||||
Norway — 1.2% |
| |||||||
Yara International ASA | 77,872 | 3,779,764 | ||||||
|
| |||||||
Republic of Korea — 5.1% |
| |||||||
Hana Financial Group, Inc. | 79,353 | 2,571,795 | ||||||
KB Financial Group, Inc. ADR | 107,416 | 4,240,784 | ||||||
Samsung Electronics Co. Ltd. | 222,347 | 9,065,527 | ||||||
|
| |||||||
15,878,106 | ||||||||
|
| |||||||
Singapore — 1.7% |
| |||||||
Singapore Telecommunications Ltd. | 2,027,000 | 5,252,955 | ||||||
|
| |||||||
Switzerland — 4.9% |
| |||||||
Alcon, Inc. (a) | 11,979 | 740,880 | ||||||
Landis+Gyr Group AG (b) | 25,523 | 2,034,197 | ||||||
Novartis AG Registered | 59,896 | 5,478,508 | ||||||
Roche Holding AG | 24,779 | 6,971,975 | ||||||
|
| |||||||
15,225,560 | ||||||||
|
| |||||||
Taiwan — 1.4% |
| |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 563,275 | 4,296,961 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
40
Table of Contents
MML Foreign Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Thailand — 0.2% |
| |||||||
Bangkok Bank PCL Foreign Registered | 71,900 | $ | 466,843 | |||||
|
| |||||||
United Kingdom — 15.9% |
| |||||||
BAE Systems PLC | 999,915 | 6,306,130 | ||||||
BP PLC | 986,693 | 6,895,426 | ||||||
HSBC Holdings PLC | 623,600 | 5,175,918 | ||||||
Johnson Matthey PLC | 96,470 | 4,092,026 | ||||||
Kingfisher PLC | 1,267,063 | 3,461,443 | ||||||
Royal Dutch Shell PLC Class A | 2,397 | 78,489 | ||||||
Royal Dutch Shell PLC Class B | 233,576 | 7,618,911 | ||||||
Standard Chartered PLC | 1,019,428 | 9,276,266 | ||||||
Vodafone Group PLC Sponsored ADR | 409,383 | 6,685,224 | ||||||
|
| |||||||
49,589,833 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $300,757,270) | 301,114,507 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $300,757,270) | 301,114,507 | |||||||
|
| |||||||
MUTUAL FUNDS — 0.7% |
| |||||||
United States — 0.7% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (c) | 2,093,504 | 2,093,504 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $2,093,504) | 2,093,504 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $302,850,774) | 303,208,011 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 2.8% |
| |||||||
Repurchase Agreement — 2.8% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (d) | $ | 8,815,856 | 8,815,856 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $8,815,856) | 8,815,856 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.2% (Cost $311,666,630) (e) | 312,023,867 | |||||||
Other Assets/(Liabilities) — (0.2)% | (618,480 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 311,405,387 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $1,993,218 or 0.64% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers.(Note 2). |
(c) | Represents investment of security lending collateral.(Note 2). |
(d) | Maturity value of $8,816,774. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $8,993,558. |
(e) | See Note 6 for aggregate cost for federal tax purposes. |
Sector weightings, as a percentage of net assets, is as follows:
Financial | 20.8 | % | ||
Consumer,Non-cyclical | 19.3 | % | ||
Communications | 12.2 | % | ||
Energy | 12.2 | % | ||
Industrial | 8.2 | % | ||
Technology | 7.0 | % | ||
Basic Materials | 6.4 | % | ||
Utilities | 5.1 | % | ||
Consumer, Cyclical | 4.0 | % | ||
Diversified | 1.5 | % | ||
Mutual Funds | 0.7 | % | ||
|
| |||
Total Long-Term Investments | 97.4 | % | ||
Short-Term Investments and Other Assets and Liabilities | 2.6 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
The accompanying notes are an integral part of the financial statements.
41
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 99.3% |
| |||||||
COMMON STOCK — 99.3% |
| |||||||
Basic Materials — 1.6% |
| |||||||
Chemicals — 1.6% |
| |||||||
The Sherwin-Williams Co. | 3,912 | $ | 1,792,831 | |||||
|
| |||||||
Communications — 20.7% |
| |||||||
Internet — 16.4% |
| |||||||
Alibaba Group Holding Ltd. Sponsored ADR (a) | 4,409 | 747,105 | ||||||
Alphabet, Inc. Class C (a) | 4,351 | 4,703,039 | ||||||
Amazon.com, Inc. (a) | 4,034 | 7,638,904 | ||||||
Facebook, Inc. Class A (a) | 17,088 | 3,297,984 | ||||||
Palo Alto Networks, Inc. (a) | 3,320 | 676,483 | ||||||
VeriSign, Inc. (a) | 5,075 | 1,061,487 | ||||||
|
| |||||||
18,125,002 | ||||||||
|
| |||||||
Media — 2.8% |
| |||||||
Comcast Corp. Class A | 39,427 | 1,666,974 | ||||||
The Walt Disney Co. | 10,430 | 1,456,445 | ||||||
|
| |||||||
3,123,419 | ||||||||
|
| |||||||
Telecommunications — 1.5% |
| |||||||
Cisco Systems, Inc. | 22,496 | 1,231,206 | ||||||
Verizon Communications, Inc. | 6,800 | 388,484 | ||||||
|
| |||||||
1,619,690 | ||||||||
|
| |||||||
22,868,111 | ||||||||
|
| |||||||
Consumer, Cyclical — 7.8% |
| |||||||
Apparel — 1.3% |
| |||||||
NIKE, Inc. Class B | 17,320 | 1,454,014 | ||||||
|
| |||||||
Retail — 6.5% |
| |||||||
AutoZone, Inc. (a) | 1,109 | 1,219,312 | ||||||
The Home Depot, Inc. | 10,318 | 2,145,834 | ||||||
McDonald’s Corp. | 7,300 | 1,515,918 | ||||||
O’Reilly Automotive, Inc. (a) | 2,104 | 777,049 | ||||||
Ross Stores, Inc. | 9,115 | 903,479 | ||||||
The TJX Cos., Inc. | 11,437 | 604,789 | ||||||
|
| |||||||
7,166,381 | ||||||||
|
| |||||||
8,620,395 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 23.9% |
| |||||||
Beverages — 2.1% |
| |||||||
Constellation Brands, Inc. Class A | 2,857 | 562,657 | ||||||
Monster Beverage Corp. (a) | 26,661 | 1,701,772 | ||||||
|
| |||||||
2,264,429 | ||||||||
|
| |||||||
Commercial Services — 11.8% |
| |||||||
Experian PLC | 37,453 | 1,136,982 | ||||||
FleetCor Technologies, Inc. (a) | 6,564 | 1,843,500 | ||||||
Gartner, Inc. (a) | 5,436 | 874,870 | ||||||
Global Payments, Inc. | 11,122 | 1,780,966 | ||||||
IHS Markit Ltd. (a) | 24,022 | 1,530,682 | ||||||
PayPal Holdings, Inc. (a) | 20,548 | 2,351,924 |
Number of Shares | Value | |||||||
S&P Global, Inc. | 9,294 | $ | 2,117,080 | |||||
Worldpay, Inc. Class A (a) | 11,435 | 1,401,359 | ||||||
|
| |||||||
13,037,363 | ||||||||
|
| |||||||
Cosmetics & Personal Care — 0.8% |
| |||||||
The Procter & Gamble Co. | 8,138 | 892,332 | ||||||
|
| |||||||
Health Care – Products — 6.3% |
| |||||||
Baxter International, Inc. | 15,154 | 1,241,113 | ||||||
Danaher Corp. | 9,621 | 1,375,033 | ||||||
Edwards Lifesciences Corp. (a) | 7,290 | 1,346,755 | ||||||
Teleflex, Inc. | 4,368 | 1,446,463 | ||||||
Thermo Fisher Scientific, Inc. | 5,366 | 1,575,887 | ||||||
|
| |||||||
6,985,251 | ||||||||
|
| |||||||
Health Care – Services — 2.3% |
| |||||||
Anthem, Inc. | 3,365 | 949,636 | ||||||
ICON PLC (a) | 10,475 | 1,612,836 | ||||||
|
| |||||||
2,562,472 | ||||||||
|
| |||||||
Pharmaceuticals — 0.6% |
| |||||||
Elanco Animal Health, Inc. (a) | 20,199 | 682,726 | ||||||
|
| |||||||
26,424,573 | ||||||||
|
| |||||||
Financial — 11.3% |
| |||||||
Diversified Financial Services — 9.5% |
| |||||||
American Express Co. | 15,414 | 1,902,704 | ||||||
Intercontinental Exchange, Inc. | 16,934 | 1,455,308 | ||||||
Mastercard, Inc. Class A | 11,501 | 3,042,359 | ||||||
TD Ameritrade Holding Corp. | 5,988 | 298,921 | ||||||
Visa, Inc. Class A | 22,001 | 3,818,274 | ||||||
|
| |||||||
10,517,566 | ||||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 1.8% |
| |||||||
American Tower Corp. | 9,356 | 1,912,834 | ||||||
|
| |||||||
12,430,400 | ||||||||
|
| |||||||
Industrial — 7.9% |
| |||||||
Aerospace & Defense — 4.0% |
| |||||||
Aerojet Rocketdyne Holdings, Inc. (a) | 22,198 | 993,804 | ||||||
The Boeing Co. | 2,103 | 765,513 | ||||||
Lockheed Martin Corp. | 5,363 | 1,949,665 | ||||||
Northrop Grumman Corp. | 2,168 | 700,503 | ||||||
|
| |||||||
4,409,485 | ||||||||
|
| |||||||
Electronics — 1.1% |
| |||||||
Agilent Technologies, Inc. | 5,377 | 401,500 | ||||||
Fortive Corp. | 9,611 | 783,489 | ||||||
|
| |||||||
1,184,989 | ||||||||
|
| |||||||
Machinery – Diversified — 1.5% |
| |||||||
Roper Technologies, Inc. | 4,703 | 1,722,521 | ||||||
|
| |||||||
Transportation — 1.3% |
| |||||||
Union Pacific Corp. | 8,455 | 1,429,825 | ||||||
|
| |||||||
8,746,820 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
42
Table of Contents
MML Fundamental Growth Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Technology — 26.1% |
| |||||||
Computers — 6.1% |
| |||||||
Apple, Inc. | 24,459 | $ | 4,840,925 | |||||
Check Point Software Technologies Ltd. (a) | 6,976 | 806,496 | ||||||
Fortinet, Inc. (a) | 14,698 | 1,129,247 | ||||||
|
| |||||||
6,776,668 | ||||||||
|
| |||||||
Semiconductors — 2.3% |
| |||||||
Broadcom, Inc. | 5,911 | 1,701,540 | ||||||
QUALCOMM, Inc. | 11,181 | 850,539 | ||||||
|
| |||||||
2,552,079 | ||||||||
|
| |||||||
Software — 17.7% |
| |||||||
Adobe, Inc. (a) | 6,006 | 1,769,668 | ||||||
Guidewire Software, Inc. (a) | 5,307 | 538,024 | ||||||
Intuit, Inc. | 6,378 | 1,666,763 | ||||||
Microsoft Corp. | 74,280 | 9,950,549 | ||||||
Oracle Corp. | 14,639 | 833,984 | ||||||
salesforce.com, Inc. (a) | 8,928 | 1,354,645 | ||||||
ServiceNow, Inc. (a) | 5,334 | 1,464,556 | ||||||
SS&C Technologies Holdings, Inc | 23,910 | 1,377,455 | ||||||
VMware, Inc. Class A | 3,205 | 535,908 | ||||||
|
| |||||||
19,491,552 | ||||||||
|
| |||||||
28,820,299 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $88,822,915) | 109,703,429 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $88,822,915) | 109,703,429 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $88,822,915) | 109,703,429 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 1.0% |
| |||||||
Repurchase Agreement — 1.0% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (b) | $ | 1,152,201 | 1,152,201 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $1,152,201) | 1,152,201 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.3% (Cost $89,975,116) (c) | 110,855,630 | |||||||
Other Assets/(Liabilities) — (0.3)% | (376,946 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 110,478,684 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Maturity value of $1,152,321. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $1,176,394. |
(c) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
43
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 97.5% |
| |||||||
COMMON STOCK — 97.5% |
| |||||||
Basic Materials — 5.2% |
| |||||||
Chemicals — 3.8% |
| |||||||
Dow, Inc. | 24,784 | $ | 1,222,099 | |||||
DuPont de Nemours, Inc. | 31,131 | 2,337,004 | ||||||
FMC Corp. | 10,599 | 879,187 | ||||||
The Mosaic Co. | 35,492 | 888,365 | ||||||
Nutrien Ltd. | 34,862 | 1,863,722 | ||||||
|
| |||||||
7,190,377 | ||||||||
|
| |||||||
Mining — 1.4% |
| |||||||
Barrick Gold Corp. | 168,828 | 2,662,418 | ||||||
|
| |||||||
9,852,795 | ||||||||
|
| |||||||
Communications — 12.6% |
| |||||||
Internet — 3.1% |
| |||||||
Alphabet, Inc. Class A (a) | 3,449 | 3,734,577 | ||||||
Booking Holdings, Inc. (a) | 1,103 | 2,067,805 | ||||||
|
| |||||||
5,802,382 | ||||||||
|
| |||||||
Media — 4.9% |
| |||||||
Altice USA, Inc. (a) | 33,694 | 820,449 | ||||||
Comcast Corp. Class A | 131,433 | 5,556,987 | ||||||
Fox Corp. Class A | 44,477 | 1,629,637 | ||||||
Liberty Global PLC Series C (a) | 51,593 | 1,368,763 | ||||||
|
| |||||||
9,375,836 | ||||||||
|
| |||||||
Telecommunications — 4.6% |
| |||||||
Cisco Systems, Inc. | 76,666 | 4,195,930 | ||||||
Verizon Communications, Inc. | 80,369 | 4,591,481 | ||||||
|
| |||||||
8,787,411 | ||||||||
|
| |||||||
23,965,629 | ||||||||
|
| |||||||
Consumer, Cyclical — 6.5% |
| |||||||
Airlines — 1.9% |
| |||||||
Delta Air Lines, Inc. | 38,344 | 2,176,022 | ||||||
Southwest Airlines Co. | 28,145 | 1,429,203 | ||||||
|
| |||||||
3,605,225 | ||||||||
|
| |||||||
Home Builders — 0.4% |
| |||||||
Toll Brothers, Inc. | 23,292 | 852,953 | ||||||
|
| |||||||
Lodging — 2.0% |
| |||||||
Las Vegas Sands Corp. | 29,587 | 1,748,296 | ||||||
Wyndham Destinations, Inc. | 20,067 | 880,941 | ||||||
Wyndham Hotels & Resorts, Inc. | 22,969 | 1,280,292 | ||||||
|
| |||||||
3,909,529 | ||||||||
|
| |||||||
Retail — 2.2% |
| |||||||
AutoZone, Inc. (a) | 2,111 | 2,320,981 | ||||||
Lowe’s Cos., Inc. | 18,047 | 1,821,123 | ||||||
|
| |||||||
4,142,104 | ||||||||
|
| |||||||
12,509,811 | ||||||||
|
|
Number of Shares | Value | |||||||
Consumer,Non-cyclical — 22.8% |
| |||||||
Beverages — 0.5% |
| |||||||
Coca-Cola European Partners PLC | 18,266 | $ | 1,032,029 | |||||
|
| |||||||
Biotechnology — 0.7% |
| |||||||
Biogen, Inc. (a) | 6,036 | 1,411,639 | ||||||
|
| |||||||
Cosmetics & Personal Care — 2.4% |
| |||||||
The Procter & Gamble Co. | 41,855 | 4,589,401 | ||||||
|
| |||||||
Foods — 2.2% |
| |||||||
Mondelez International, Inc. Class A | 50,846 | 2,740,600 | ||||||
Tyson Foods, Inc. Class A | 17,345 | 1,400,435 | ||||||
�� |
|
| ||||||
4,141,035 | ||||||||
|
| |||||||
Health Care – Products — 2.6% |
| |||||||
Medtronic PLC | 37,345 | 3,637,030 | ||||||
Zimmer Biomet Holdings, Inc. | 10,952 | 1,289,488 | ||||||
|
| |||||||
4,926,518 | ||||||||
|
| |||||||
Health Care – Services — 4.2% |
| |||||||
Anthem, Inc. | 10,235 | 2,888,419 | ||||||
Quest Diagnostics, Inc. | 22,359 | 2,276,370 | ||||||
UnitedHealth Group, Inc. | 11,332 | 2,765,121 | ||||||
|
| |||||||
7,929,910 | ||||||||
|
| |||||||
Pharmaceuticals — 10.2% |
| |||||||
Cigna Corp. | 24,748 | 3,899,047 | ||||||
CVS Health Corp. | 37,445 | 2,040,378 | ||||||
Johnson & Johnson | 46,485 | 6,474,431 | ||||||
McKesson Corp. | 8,791 | 1,181,423 | ||||||
Novartis AG Sponsored ADR | 11,755 | 1,073,349 | ||||||
Novo Nordisk A/S Sponsored ADR | 13,808 | 704,760 | ||||||
Pfizer, Inc. | 96,614 | 4,185,319 | ||||||
|
| |||||||
19,558,707 | ||||||||
|
| |||||||
43,589,239 | ||||||||
|
| |||||||
Energy — 9.9% |
| |||||||
Oil & Gas — 9.6% |
| |||||||
Canadian Natural Resources Ltd. | 40,266 | 1,085,974 | ||||||
Chevron Corp. | 34,845 | 4,336,112 | ||||||
Cimarex Energy Co. | 17,935 | 1,064,083 | ||||||
ConocoPhillips | 39,889 | 2,433,229 | ||||||
Marathon Petroleum Corp. | 18,123 | 1,012,713 | ||||||
Noble Energy, Inc. | 90,849 | 2,035,018 | ||||||
Pioneer Natural Resources Co. | 7,788 | 1,198,262 | ||||||
Royal Dutch Shell PLC Class A Sponsored ADR | 50,491 | 3,285,449 | ||||||
Valero Energy Corp. | 22,526 | 1,928,451 | ||||||
|
| |||||||
18,379,291 | ||||||||
|
| |||||||
Oil & Gas Services — 0.3% |
| |||||||
Apergy Corp. (a) | 15,377 | 515,745 | ||||||
|
| |||||||
18,895,036 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
44
Table of Contents
MML Fundamental Value Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Financial — 25.5% |
| |||||||
Banks — 9.1% |
| |||||||
Bank of America Corp. | 224,382 | $ | 6,507,078 | |||||
BB&T Corp. | 24,250 | 1,191,402 | ||||||
Citigroup, Inc. | 62,018 | 4,343,121 | ||||||
SunTrust Banks, Inc. | 19,004 | 1,194,401 | ||||||
Wells Fargo & Co. | 85,959 | 4,067,580 | ||||||
|
| |||||||
17,303,582 | ||||||||
|
| |||||||
Diversified Financial Services — 1.6% |
| |||||||
American Express Co. | 10,681 | 1,318,463 | ||||||
The Charles Schwab Corp. | 14,322 | 575,601 | ||||||
Discover Financial Services | 15,254 | 1,183,558 | ||||||
|
| |||||||
3,077,622 | ||||||||
|
| |||||||
Insurance — 13.0% |
| |||||||
The Allstate Corp. | 27,630 | 2,809,695 | ||||||
American International Group, Inc. | 76,851 | 4,094,621 | ||||||
Aon PLC | 11,318 | 2,184,148 | ||||||
Berkshire Hathaway, Inc. Class B (a) | 41,375 | 8,819,909 | ||||||
Chubb Ltd. | 22,201 | 3,269,985 | ||||||
Everest Re Group Ltd. | 6,085 | 1,504,090 | ||||||
The Travelers Cos., Inc. | 14,255 | 2,131,408 | ||||||
|
| |||||||
24,813,856 | ||||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 1.8% |
| |||||||
Equity Residential | 15,935 | 1,209,785 | ||||||
Essex Property Trust, Inc. | 3,592 | 1,048,613 | ||||||
SL Green Realty Corp. | 15,371 | 1,235,367 | ||||||
|
| |||||||
3,493,765 | ||||||||
|
| |||||||
48,688,825 | ||||||||
|
| |||||||
Industrial — 10.8% |
| |||||||
Aerospace & Defense — 3.1% |
| |||||||
The Boeing Co. | 4,984 | 1,814,226 | ||||||
United Technologies Corp. | 30,718 | 3,999,483 | ||||||
|
| |||||||
5,813,709 | ||||||||
|
| |||||||
Building Materials — 1.6% |
| |||||||
Cemex SAB de CV Sponsored ADR | 126,893 | 538,026 | ||||||
CRH PLC Sponsored ADR | 32,448 | 1,062,672 | ||||||
Owens Corning | 23,840 | 1,387,488 | ||||||
|
| |||||||
2,988,186 | ||||||||
|
| |||||||
Machinery – Diversified — 1.0% |
| |||||||
Dover Corp. | 19,439 | 1,947,788 | ||||||
|
| |||||||
Miscellaneous – Manufacturing — 1.3% |
| |||||||
Eaton Corp. PLC | 29,784 | 2,480,412 | ||||||
|
| |||||||
Transportation — 3.8% |
| |||||||
C.H. Robinson Worldwide, Inc. | 6,930 | 584,546 | ||||||
Kansas City Southern | 17,237 | 2,099,811 | ||||||
Union Pacific Corp. | 18,855 | 3,188,569 | ||||||
United Parcel Service, Inc. Class B | 13,962 | 1,441,856 | ||||||
|
| |||||||
7,314,782 | ||||||||
|
| |||||||
20,544,877 | ||||||||
|
|
Number of Shares | Value | |||||||
Technology — 3.5% |
| |||||||
Computers — 0.4% |
| |||||||
DXC Technology Co. | 13,556 | $ | 747,613 | |||||
|
| |||||||
Semiconductors — 1.1% |
| |||||||
NXP Semiconductor NV | 20,552 | 2,006,081 | ||||||
|
| |||||||
Software — 2.0% |
| |||||||
Microsoft Corp. | 7,930 | 1,062,303 | ||||||
Oracle Corp. | 49,297 | 2,808,450 | ||||||
|
| |||||||
3,870,753 | ||||||||
|
| |||||||
6,624,447 | ||||||||
|
| |||||||
Utilities — 0.7% |
| |||||||
Electric — 0.7% |
| |||||||
Edison International | 20,184 | 1,360,603 | ||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $173,697,570) | 186,031,262 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $173,697,570) | 186,031,262 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $173,697,570) | 186,031,262 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 1.7% |
| |||||||
Repurchase Agreement — 1.7% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (b) | $ | 3,352,183 | 3,352,183 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $3,352,183) | 3,352,183 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 99.2% (Cost $177,049,753) (c) | 189,383,445 | |||||||
Other Assets/(Liabilities) — 0.8% | 1,437,763 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 190,821,208 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Maturity value of $3,352,532. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $3,422,237. |
(c) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
45
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 99.3% |
| |||||||
COMMON STOCK — 99.3% |
| |||||||
Austria — 0.3% |
| |||||||
Erste Group Bank AG | 39,395 | $ | 1,462,362 | |||||
|
| |||||||
Brazil — 0.3% |
| |||||||
Ambev SA | 305,331 | 1,422,511 | ||||||
|
| |||||||
Canada — 1.9% |
| |||||||
Canadian National Railway Co. | 87,351 | 8,078,220 | ||||||
|
| |||||||
Cayman Islands — 0.2% |
| |||||||
Sands China Ltd. | 159,200 | 763,142 | ||||||
|
| |||||||
Denmark — 0.7% |
| |||||||
Carlsberg A/S Class B | 21,319 | 2,826,911 | ||||||
|
| |||||||
France — 11.2% |
| |||||||
Air Liquide SA | 31,453 | 4,401,288 | ||||||
Danone SA | 90,531 | 7,677,967 | ||||||
EssilorLuxottica SA | 12,491 | 1,632,802 | ||||||
Hermes International | 1,443 | 1,040,748 | ||||||
Legrand SA | 61,813 | 4,529,434 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 26,901 | 11,451,527 | ||||||
Pernod Ricard SA | 42,107 | 7,759,329 | ||||||
Schneider Electric SE | 109,306 | 9,914,878 | ||||||
|
| |||||||
48,407,973 | ||||||||
|
| |||||||
Germany — 4.0% |
| |||||||
Bayer AG Registered | 106,337 | 7,386,096 | ||||||
Brenntag AG | 44,556 | 2,194,285 | ||||||
Deutsche Boerse AG | 12,711 | 1,798,038 | ||||||
Merck KGaA | 28,710 | 3,004,037 | ||||||
MTU Aero Engines AG | 12,702 | 3,030,429 | ||||||
|
| |||||||
17,412,885 | ||||||||
|
| |||||||
Ireland — 7.7% |
| |||||||
Accenture PLC Class A | 60,859 | 11,244,918 | ||||||
Linde PLC | 35,857 | 7,210,603 | ||||||
Linde PLC | 10,506 | 2,109,605 | ||||||
Medtronic PLC | 130,024 | 12,663,037 | ||||||
|
| |||||||
33,228,163 | ||||||||
|
| |||||||
Israel — 1.2% |
| |||||||
Check Point Software Technologies Ltd. (a) | 44,415 | 5,134,818 | ||||||
|
| |||||||
Japan — 3.0% |
| |||||||
Hoya Corp. | 42,700 | 3,279,915 | ||||||
Kubota Corp. | 338,700 | 5,647,296 | ||||||
Olympus Corp. | 340,800 | 3,799,029 | ||||||
|
| |||||||
12,726,240 | ||||||||
|
| |||||||
Mexico — 0.3% |
| |||||||
Grupo Financiero Banorte SAB de CV Class O | 203,083 | 1,179,535 | ||||||
|
|
Number of Shares | Value | |||||||
Netherlands — 2.7% |
| |||||||
Akzo Nobel NV | 60,821 | $ | 5,716,861 | |||||
Heineken NV | 37,310 | 4,164,547 | ||||||
Schlumberger Ltd. | 42,979 | 1,707,985 | ||||||
|
| |||||||
11,589,393 | ||||||||
|
| |||||||
Republic of Korea — 0.8% |
| |||||||
Samsung Electronics Co. Ltd. | 83,097 | 3,388,029 | ||||||
|
| |||||||
Spain — 1.3% |
| |||||||
Aena SME SA (b) | 27,701 | 5,490,687 | ||||||
|
| |||||||
Sweden — 2.2% |
| |||||||
Essity AB Class B | 314,604 | 9,669,630 | ||||||
|
| |||||||
Switzerland — 7.4% |
| |||||||
Adecco Group AG Registered | 36,362 | 2,185,330 | ||||||
Cie Financiere Richemont SA Registered | 52,420 | 4,449,095 | ||||||
Julius Baer Group Ltd. | 38,659 | 1,724,619 | ||||||
Nestle SA Registered | 115,518 | 11,959,432 | ||||||
Roche Holding AG | 25,391 | 7,144,172 | ||||||
Sonova Holding AG Registered | 4,361 | 992,682 | ||||||
UBS Group AG Registered | 304,413 | 3,617,810 | ||||||
|
| |||||||
32,073,140 | ||||||||
|
| |||||||
Thailand — 0.2% |
| |||||||
Kasikornbank PCL | 139,900 | 864,467 | ||||||
|
| |||||||
United Kingdom — 9.1% |
| |||||||
Aon PLC | 27,043 | 5,218,758 | ||||||
Aptiv PLC | 25,013 | 2,021,801 | ||||||
Burberry Group PLC | 88,474 | 2,098,984 | ||||||
Compass Group PLC | 192,670 | 4,617,378 | ||||||
Diageo PLC | 222,412 | 9,578,008 | ||||||
Reckitt Benckiser Group PLC | 108,363 | 8,563,639 | ||||||
Whitbread PLC | 41,865 | 2,462,637 | ||||||
WPP PLC | 359,932 | 4,539,773 | ||||||
|
| |||||||
39,100,978 | ||||||||
|
| |||||||
United States — 44.8% |
| |||||||
3M Co. | 34,863 | 6,043,152 | ||||||
Abbott Laboratories | 81,244 | 6,832,620 | ||||||
American Express Co. | 48,289 | 5,960,794 | ||||||
Amphenol Corp. Class A | 24,074 | 2,309,660 | ||||||
The Bank of New York Mellon Corp. | 123,707 | 5,461,664 | ||||||
Cisco Systems, Inc. | 76,436 | 4,183,342 | ||||||
Cognizant Technology Solutions Corp. Class A | 68,568 | 4,346,526 | ||||||
Colgate-Palmolive Co. | 68,570 | 4,914,412 | ||||||
Comcast Corp. Class A | 296,475 | 12,534,963 | ||||||
The Cooper Cos., Inc. | 16,294 | 5,489,286 | ||||||
eBay, Inc. | 95,352 | 3,766,404 | ||||||
Equifax, Inc. | 29,288 | 3,960,909 | ||||||
The Goldman Sachs Group, Inc. | 21,867 | 4,473,988 | ||||||
Harley-Davidson, Inc. | 33,848 | 1,212,774 | ||||||
Honeywell International, Inc. | 62,138 | 10,848,673 |
The accompanying notes are an integral part of the financial statements.
46
Table of Contents
MML Global Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Johnson & Johnson | 11,784 | $ | 1,641,276 | |||||
Kansas City Southern | 67,686 | 8,245,509 | ||||||
Kellogg Co. | 57,592 | 3,085,203 | ||||||
Marriott International, Inc. Class A | 16,598 | 2,328,533 | ||||||
Microchip Technology, Inc. | 19,677 | 1,705,996 | ||||||
National Oilwell Varco, Inc. | 29,509 | 655,985 | ||||||
NOW, Inc. (a) | 17,248 | 254,580 | ||||||
Omnicom Group, Inc. | 25,832 | 2,116,932 | ||||||
Oracle Corp. | 117,096 | 6,670,959 | ||||||
PayPal Holdings, Inc. (a) | 28,159 | 3,223,079 | ||||||
PPG Industries, Inc. | 44,500 | 5,193,595 | ||||||
Resideo Technologies, Inc. (a) | 10,582 | 231,957 | ||||||
Sally Beauty Holdings, Inc. (a) | 29,508 | 393,637 | ||||||
State Street Corp. | 88,073 | 4,937,372 | ||||||
Stryker Corp. | 40,710 | 8,369,162 | ||||||
TD Ameritrade Holding Corp. | 41,204 | 2,056,904 | ||||||
Thermo Fisher Scientific, Inc. | 48,112 | 14,129,532 | ||||||
United Parcel Service, Inc. Class B | 59,687 | 6,163,877 | ||||||
United Technologies Corp. | 32,928 | 4,287,226 | ||||||
Visa, Inc. Class A | 79,760 | 13,842,348 | ||||||
The Walt Disney Co. | 69,887 | 9,759,021 | ||||||
Waters Corp. (a) | 18,222 | 3,922,103 | ||||||
Wynn Resorts Ltd. | 6,308 | 782,129 | ||||||
Zimmer Biomet Holdings, Inc. | 58,678 | 6,908,748 | ||||||
|
| |||||||
193,244,830 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $371,277,081) | 428,063,914 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $371,277,081) | 428,063,914 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $371,277,081) | 428,063,914 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 0.7% |
| |||||||
Repurchase Agreement — 0.7% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (c) | $ | 2,886,517 | 2,886,517 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $2,886,517) | 2,886,517 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.0% (Cost $374,163,598) (d) | 430,950,431 | |||||||
Other Assets/(Liabilities) — 0.0% | 115,955 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 431,066,386 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Security is exempt from registration under Regulation S or Rule 144A of the Securities Act of 1933. These securities are considered restricted and may be resold in transactions exempt from registration. At June 30, 2019, the aggregate market value of these securities amounted to $5,490,687 or 1.27% of net assets. |
(c) | Maturity value of $2,886,818. Collateralized by U.S. Government Agency obligations with a rate of 0.125%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $2,944,339. |
(d) | See Note 6 for aggregate cost for federal tax purposes. |
Sector weightings, as a percentage of net assets, is as follows:
Consumer,Non-cyclical | 37.4 | % | ||
Industrial | 19.0 | % | ||
Financial | 12.2 | % | ||
Communications | 8.6 | % | ||
Consumer, Cyclical | 7.8 | % | ||
Technology | 7.5 | % | ||
Basic Materials | 6.2 | % | ||
Energy | 0.6 | % | ||
|
| |||
Total Long-Term Investments | 99.3 | % | ||
Short-Term Investments and Other Assets and Liabilities | 0.7 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
The accompanying notes are an integral part of the financial statements.
47
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 99.5% |
| |||||||
COMMON STOCK — 99.5% |
| |||||||
Basic Materials — 2.9% |
| |||||||
Chemicals — 2.9% |
| |||||||
DuPont de Nemours, Inc. | 9,494 | $ | 712,715 | |||||
PPG Industries, Inc. | 12,372 | 1,443,936 | ||||||
The Sherwin-Williams Co. | 4,535 | 2,078,345 | ||||||
|
| |||||||
4,234,996 | ||||||||
|
| |||||||
Communications — 9.8% |
| |||||||
Internet — 5.8% |
| |||||||
Alphabet, Inc. Class A (a) | 4,018 | 4,350,690 | ||||||
Alphabet, Inc. Class C (a) | 1,594 | 1,722,971 | ||||||
Facebook, Inc. Class A (a) | 12,599 | 2,431,607 | ||||||
|
| |||||||
8,505,268 | ||||||||
|
| |||||||
Media — 2.7% |
| |||||||
Comcast Corp. Class A | 70,486 | 2,980,148 | ||||||
The Walt Disney Co. | 7,070 | 987,255 | ||||||
|
| |||||||
3,967,403 | ||||||||
|
| |||||||
Telecommunications — 1.3% |
| |||||||
Cisco Systems, Inc. | 33,110 | 1,812,110 | ||||||
|
| |||||||
14,284,781 | ||||||||
|
| |||||||
Consumer, Cyclical — 9.6% |
| |||||||
Apparel — 2.3% |
| |||||||
LVMH Moet Hennessy Louis Vuitton SE | 4,558 | 1,940,302 | ||||||
NIKE, Inc. Class B | 17,135 | 1,438,483 | ||||||
|
| |||||||
3,378,785 | ||||||||
|
| |||||||
Retail — 7.3% |
| |||||||
Costco Wholesale Corp. | 6,108 | 1,614,100 | ||||||
Dollar General Corp. | 10,319 | 1,394,716 | ||||||
Dollar Tree, Inc. (a) | 9,194 | 987,344 | ||||||
Ross Stores, Inc. | 19,905 | 1,972,983 | ||||||
Starbucks Corp. | 29,336 | 2,459,237 | ||||||
Tractor Supply Co. | 20,011 | 2,177,197 | ||||||
|
| |||||||
10,605,577 | ||||||||
|
| |||||||
13,984,362 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 24.9% |
| |||||||
Beverages — 2.5% |
| |||||||
Diageo PLC | 37,411 | 1,611,077 | ||||||
Pernod Ricard SA | 11,052 | 2,036,624 | ||||||
|
| |||||||
3,647,701 | ||||||||
|
| |||||||
Biotechnology — 0.7% |
| |||||||
Biogen, Inc. (a) | 4,491 | 1,050,310 | ||||||
|
| |||||||
Cosmetics & Personal Care — 1.9% |
| |||||||
Colgate-Palmolive Co. | 25,945 | 1,859,478 | ||||||
The Estee Lauder Cos., Inc. Class A | 4,951 | 906,578 | ||||||
|
| |||||||
2,766,056 | ||||||||
|
|
Number of Shares | Value | |||||||
Foods — 3.1% |
| |||||||
Danone SA | 24,403 | $ | 2,069,628 | |||||
Mondelez International, Inc. Class A | 45,898 | 2,473,902 | ||||||
|
| |||||||
4,543,530 | ||||||||
|
| |||||||
Health Care – Products — 9.4% |
| |||||||
Abbott Laboratories | 18,836 | 1,584,108 | ||||||
Becton Dickinson and Co. | 5,704 | 1,437,465 | ||||||
Danaher Corp. | 25,196 | 3,601,012 | ||||||
Medtronic PLC | 36,945 | 3,598,073 | ||||||
Thermo Fisher Scientific, Inc. | 12,176 | 3,575,848 | ||||||
|
| |||||||
13,796,506 | ||||||||
|
| |||||||
Household Products & Wares — 0.9% |
| |||||||
Kimberly-Clark Corp. | 9,484 | 1,264,027 | ||||||
|
| |||||||
Pharmaceuticals — 6.4% |
| |||||||
Elanco Animal Health, Inc. (a) | 38,785 | 1,310,933 | ||||||
Eli Lilly & Co. | 14,149 | 1,567,568 | ||||||
Johnson & Johnson | 26,153 | 3,642,590 | ||||||
McKesson Corp. | 9,650 | 1,296,863 | ||||||
Zoetis, Inc. | 13,490 | 1,530,980 | ||||||
|
| |||||||
9,348,934 | ||||||||
|
| |||||||
36,417,064 | ||||||||
|
| |||||||
Energy — 4.5% |
| |||||||
Oil & Gas — 1.5% |
| |||||||
EOG Resources, Inc. | 24,022 | 2,237,889 | ||||||
|
| |||||||
Oil & Gas Services — 1.5% |
| |||||||
Core Laboratories NV | 12,620 | 659,774 | ||||||
Schlumberger Ltd. | 37,873 | 1,505,073 | ||||||
|
| |||||||
2,164,847 | ||||||||
|
| |||||||
Pipelines — 1.5% |
| |||||||
Enterprise Products Partners LP (b) | 76,555 | 2,210,143 | ||||||
|
| |||||||
6,612,879 | ||||||||
|
| |||||||
Financial — 21.4% |
| |||||||
Banks — 7.8% |
| |||||||
Bank of America Corp. | 108,576 | 3,148,704 | ||||||
BB&T Corp. | 34,414 | 1,690,760 | ||||||
The Goldman Sachs Group, Inc. | 9,098 | 1,861,451 | ||||||
JP Morgan Chase & Co. | 35,081 | 3,922,055 | ||||||
Morgan Stanley | 15,606 | 683,699 | ||||||
|
| |||||||
11,306,669 | ||||||||
|
| |||||||
Diversified Financial Services — 8.3% |
| |||||||
Mastercard, Inc. Class A | 13,919 | 3,681,993 | ||||||
Nasdaq, Inc. | 23,097 | 2,221,238 | ||||||
TD Ameritrade Holding Corp. | 28,490 | 1,422,221 | ||||||
Visa, Inc. Class A | 27,823 | 4,828,682 | ||||||
|
| |||||||
12,154,134 | ||||||||
|
| |||||||
Insurance — 1.2% |
| |||||||
Chubb Ltd. | 11,340 | 1,670,269 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
48
Table of Contents
MML Growth & Income Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Private Equity — 1.3% |
| |||||||
The Blackstone Group LP (b) | 43,110 | $ | 1,914,946 | |||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 2.8% |
| |||||||
American Tower Corp. | 20,177 | 4,125,188 | ||||||
|
| |||||||
31,171,206 | ||||||||
|
| |||||||
Industrial — 9.5% |
| |||||||
Aerospace & Defense — 1.4% |
| |||||||
United Technologies Corp. | 15,588 | 2,029,558 | ||||||
|
| |||||||
Electrical Components & Equipment — 1.2% |
| |||||||
AMETEK, Inc. | 19,125 | 1,737,315 | ||||||
|
| |||||||
Electronics — 3.8% |
| |||||||
Fortive Corp. | 15,099 | 1,230,870 | ||||||
Honeywell International, Inc. | 16,917 | 2,953,539 | ||||||
TE Connectivity Ltd. | 14,702 | 1,408,158 | ||||||
|
| |||||||
5,592,567 | ||||||||
|
| |||||||
Machinery – Diversified — 0.3% |
| |||||||
Flowserve Corp. | 8,944 | 471,259 | ||||||
|
| |||||||
Packaging & Containers — 1.1% |
| |||||||
Crown Holdings, Inc. (a) | 26,310 | 1,607,541 | ||||||
|
| |||||||
Transportation — 1.7% |
| |||||||
Canadian National Railway Co. | 26,144 | 2,417,797 | ||||||
|
| |||||||
13,856,037 | ||||||||
|
| |||||||
Technology — 16.4% |
| |||||||
Computers — 6.7% |
| |||||||
Accenture PLC Class A | 15,397 | 2,844,904 | ||||||
Amdocs Ltd. | 28,111 | 1,745,412 | ||||||
Apple, Inc. | 8,341 | 1,650,851 | ||||||
Cognizant Technology Solutions Corp. Class A | 34,778 | 2,204,577 | ||||||
DXC Technology Co. | 24,035 | 1,325,530 | ||||||
|
| |||||||
9,771,274 | ||||||||
|
| |||||||
Semiconductors — 2.4% |
| |||||||
Analog Devices, Inc. | 12,834 | 1,448,574 | ||||||
Texas Instruments, Inc. | 18,798 | 2,157,258 | ||||||
|
| |||||||
3,605,832 | ||||||||
|
| |||||||
Software — 7.3% |
| |||||||
Adobe, Inc. (a) | 7,005 | 2,064,023 | ||||||
Electronic Arts, Inc. (a) | 15,464 | 1,565,885 | ||||||
Fidelity National Information Services, Inc. | 26,242 | 3,219,369 | ||||||
Microsoft Corp. | 19,545 | 2,618,248 | ||||||
salesforce.com, Inc. (a) | 7,653 | 1,161,190 | ||||||
|
| |||||||
10,628,715 | ||||||||
|
| |||||||
24,005,821 | ||||||||
|
|
Number of Shares | Value | |||||||
Utilities — 0.5% |
| |||||||
Electric — 0.5% |
| |||||||
American Electric Power Co., Inc. | 8,830 | $ | 777,128 | |||||
|
| |||||||
TOTAL COMMON STOCK (Cost $91,979,576) | 145,344,274 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $91,979,576) | 145,344,274 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $91,979,576) | 145,344,274 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 0.8% |
| |||||||
Repurchase Agreement — 0.8% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (c) | $ | 1,141,973 | 1,141,973 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $1,141,973) | 1,141,973 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.3% (Cost $93,121,549) (d) | 146,486,247 | |||||||
Other Assets/(Liabilities) — (0.3)% | (381,283 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 146,104,964 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Security is a Master Limited Partnership. |
(c) | Maturity value of $1,142,092. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $1,166,209. |
(d) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
49
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 98.9% |
| |||||||
COMMON STOCK — 98.9% |
| |||||||
Basic Materials — 6.0% |
| |||||||
Chemicals — 6.0% |
| |||||||
Air Products & Chemicals, Inc. | 14,205 | $ | 3,215,586 | |||||
DuPont de Nemours, Inc. | 47,730 | 3,583,091 | ||||||
Element Solutions, Inc. (a) | 103,232 | 1,067,419 | ||||||
Linde PLC | 38,603 | 7,751,482 | ||||||
LyondellBasell Industries NV Class A | 13,743 | 1,183,685 | ||||||
|
| |||||||
16,801,263 | ||||||||
|
| |||||||
16,801,263 | ||||||||
|
| |||||||
Communications — 5.6% |
| |||||||
Internet — 0.8% |
| |||||||
eBay, Inc. | 59,519 | 2,351,001 | ||||||
|
| |||||||
Media — 2.2% |
| |||||||
Comcast Corp. Class A | 148,578 | 6,281,878 | ||||||
|
| |||||||
Telecommunications — 2.6% |
| |||||||
AT&T, Inc. | 131,752 | 4,415,009 | ||||||
Verizon Communications, Inc. | 47,776 | 2,729,443 | ||||||
|
| |||||||
7,144,452 | ||||||||
|
| |||||||
15,777,331 | ||||||||
|
| |||||||
Consumer, Cyclical — 11.0% |
| |||||||
Airlines — 0.5% |
| |||||||
Southwest Airlines Co. | 25,790 | 1,309,616 | ||||||
|
| |||||||
Entertainment — 0.4% |
| |||||||
SeaWorld Entertainment, Inc. (a) | 30,747 | 953,157 | ||||||
|
| |||||||
Food Services — 0.8% |
| |||||||
Aramark | 65,192 | 2,350,824 | ||||||
|
| |||||||
Home Builders — 0.7% |
| |||||||
Lennar Corp. Class A | 41,903 | 2,030,619 | ||||||
|
| |||||||
Home Furnishing — 0.6% |
| |||||||
Whirlpool Corp. | 12,376 | 1,761,847 | ||||||
|
| |||||||
Leisure Time — 1.6% |
| |||||||
Norwegian Cruise Line Holdings Ltd. (a) | 41,003 | 2,198,991 | ||||||
Royal Caribbean Cruises Ltd. | 19,585 | 2,373,898 | ||||||
|
| |||||||
4,572,889 | ||||||||
|
| |||||||
Lodging — 0.8% |
| |||||||
MGM Resorts International | 82,444 | 2,355,425 | ||||||
|
| |||||||
Retail — 5.6% |
| |||||||
Advance Auto Parts, Inc. | 12,474 | 1,922,742 | ||||||
Dollar General Corp. | 23,090 | 3,120,845 | ||||||
Lowe’s Cos., Inc. | 55,551 | 5,605,652 | ||||||
Target Corp. | 58,799 | 5,092,581 | ||||||
|
| |||||||
15,741,820 | ||||||||
|
| |||||||
31,076,197 | ||||||||
|
|
Number of Shares | Value | |||||||
Consumer,Non-cyclical — 12.7% |
| |||||||
Agriculture — 1.4% |
| |||||||
Philip Morris International, Inc. | 48,560 | $ | 3,813,417 | |||||
|
| |||||||
Beverages — 0.8% |
| |||||||
Coca-Cola European Partners PLC (a) | 42,256 | 2,387,464 | ||||||
|
| |||||||
Biotechnology — 0.9% |
| |||||||
Corteva, Inc. (a) | 84,532 | 2,499,611 | ||||||
|
| |||||||
Commercial Services — 1.1% |
| |||||||
AMERCO | 4,677 | 1,770,478 | ||||||
Nielsen Holdings PLC | 55,800 | 1,261,080 | ||||||
|
| |||||||
3,031,558 | ||||||||
|
| |||||||
Health Care – Products — 2.2% |
| |||||||
Medtronic PLC | 62,205 | 6,058,145 | ||||||
|
| |||||||
Health Care – Services — 2.7% |
| |||||||
Anthem, Inc. | 8,485 | 2,394,552 | ||||||
UnitedHealth Group, Inc. | 21,501 | 5,246,459 | ||||||
|
| |||||||
7,641,011 | ||||||||
|
| |||||||
Pharmaceuticals — 3.6% |
| |||||||
CVS Health Corp. | 80,780 | 4,401,702 | ||||||
Johnson & Johnson | 20,610 | 2,870,561 | ||||||
Merck & Co., Inc. | 17,952 | 1,505,275 | ||||||
Pfizer, Inc. | 16,411 | 710,925 | ||||||
Sanofi ADR | 16,722 | 723,561 | ||||||
|
| |||||||
10,212,024 | ||||||||
|
| |||||||
35,643,230 | ||||||||
|
| |||||||
Energy — 11.9% |
| |||||||
Oil & Gas — 10.8% |
| |||||||
BP PLC Sponsored ADR | 144,771 | 6,036,951 | ||||||
Chevron Corp. | 17,167 | 2,136,262 | ||||||
EOG Resources, Inc. | 52,880 | 4,926,301 | ||||||
Hess Corp. | 39,817 | 2,531,167 | ||||||
Kosmos Energy Ltd. | 292,568 | 1,834,401 | ||||||
Parsley Energy, Inc. Class A (a) | 96,179 | 1,828,363 | ||||||
Phillips 66 | 66,304 | 6,202,076 | ||||||
Valero Energy Corp. | 42,171 | 3,610,259 | ||||||
Vermilion Energy, Inc. | 56,911 | 1,236,676 | ||||||
|
| |||||||
30,342,456 | ||||||||
|
| |||||||
Oil & Gas Services — 1.1% |
| |||||||
Schlumberger Ltd. | 77,345 | 3,073,690 | ||||||
|
| |||||||
33,416,146 | ||||||||
|
| |||||||
Financial — 23.0% |
| |||||||
Banks — 11.0% |
| |||||||
Bank of America Corp. | 128,029 | 3,712,841 | ||||||
The Bank of New York Mellon Corp. | 44,246 | 1,953,461 | ||||||
JP Morgan Chase & Co. | 50,914 | 5,692,185 | ||||||
Northern Trust Corp. | 39,415 | 3,547,350 | ||||||
State Street Corp. | 52,263 | 2,929,864 |
The accompanying notes are an integral part of the financial statements.
50
Table of Contents
MML Income & Growth Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
US Bancorp | 126,271 | $ | 6,616,600 | |||||
Wells Fargo & Co. | 136,362 | 6,452,650 | ||||||
|
| |||||||
30,904,951 | ||||||||
|
| |||||||
Diversified Financial Services — 4.1% |
| |||||||
American Express Co. | 49,515 | 6,112,132 | ||||||
E*TRADE Financial Corp. | 42,128 | 1,878,909 | ||||||
Navient Corp. | 89,747 | 1,225,046 | ||||||
SLM Corp. | 243,795 | 2,369,687 | ||||||
|
| |||||||
11,585,774 | ||||||||
|
| |||||||
Insurance — 4.4% |
| |||||||
Berkshire Hathaway, Inc. Class B (a) | 11,427 | 2,435,893 | ||||||
Chubb Ltd. | 38,879 | 5,726,488 | ||||||
Fidelity National Financial, Inc. | 35,992 | 1,450,478 | ||||||
Willis Towers Watson PLC | 14,445 | 2,766,795 | ||||||
|
| |||||||
12,379,654 | ||||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 3.0% |
| |||||||
HCP, Inc. | 132,531 | 4,238,342 | ||||||
Liberty Property Trust | 43,956 | 2,199,558 | ||||||
MGM Growth Properties LLC Class A | 69,805 | 2,139,523 | ||||||
|
| |||||||
8,577,423 | ||||||||
|
| |||||||
Savings & Loans — 0.5% |
| |||||||
New York Community Bancorp, Inc. | 134,322 | 1,340,534 | ||||||
|
| |||||||
64,788,336 | ||||||||
|
| |||||||
Industrial — 12.3% |
| |||||||
Aerospace & Defense — 3.3% |
| |||||||
General Dynamics Corp. | 12,106 | 2,201,113 | ||||||
Spirit AeroSystems Holdings, Inc. Class A | 26,810 | 2,181,530 | ||||||
United Technologies Corp. | 38,595 | 5,025,069 | ||||||
|
| |||||||
9,407,712 | ||||||||
|
| |||||||
Building Materials — 2.3% |
| |||||||
Johnson Controls International PLC | 116,764 | 4,823,521 | ||||||
Owens Corning | 27,163 | 1,580,886 | ||||||
|
| |||||||
6,404,407 | ||||||||
|
| |||||||
Engineering & Construction — 0.9% |
| |||||||
Jacobs Engineering Group, Inc. | 28,346 | 2,392,119 | ||||||
|
| |||||||
Hand & Machine Tools — 1.8% |
| |||||||
Stanley Black & Decker, Inc. | 35,832 | 5,181,666 | ||||||
|
| |||||||
Machinery – Diversified — 1.4% |
| |||||||
Wabtec Corp. | 54,176 | 3,887,670 | ||||||
|
| |||||||
Miscellaneous – Manufacturing — 2.5% |
| |||||||
General Electric Co. | 679,523 | 7,134,991 | ||||||
|
| |||||||
Transportation — 0.1% |
| |||||||
J.B. Hunt Transport Services, Inc. | 1,707 | 156,037 | ||||||
|
| |||||||
34,564,602 | ||||||||
|
|
Number of Shares | Value | |||||||
Technology — 9.3% |
| |||||||
Computers — 1.1% |
| |||||||
International Business Machines Corp. | 22,447 | $ | 3,095,441 | |||||
|
| |||||||
Semiconductors — 5.3% |
| |||||||
Broadcom, Inc. | 8,623 | 2,482,217 | ||||||
Marvell Technology Group Ltd. | 116,593 | 2,783,075 | ||||||
Microchip Technology, Inc. | 21,528 | 1,866,477 | ||||||
QUALCOMM, Inc. | 71,542 | 5,442,200 | ||||||
Texas Instruments, Inc. | 20,000 | 2,295,200 | ||||||
|
| |||||||
14,869,169 | ||||||||
|
| |||||||
Software — 2.9% |
| |||||||
Microsoft Corp. | 20,976 | 2,809,945 | ||||||
Oracle Corp. | 97,374 | 5,547,397 | ||||||
|
| |||||||
8,357,342 | ||||||||
|
| |||||||
26,321,952 | ||||||||
|
| |||||||
Utilities — 7.1% |
| |||||||
Electric — 7.1% |
| |||||||
Dominion Energy, Inc. | 96,287 | 7,444,911 | ||||||
Entergy Corp. | 53,017 | 5,457,039 | ||||||
Exelon Corp. | 147,985 | 7,094,401 | ||||||
|
| |||||||
19,996,351 | ||||||||
|
| |||||||
19,996,351 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $266,587,415) | 278,385,408 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $266,587,415) | 278,385,408 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $266,587,415) | 278,385,408 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 1.1% |
| |||||||
Repurchase Agreement — 1.1% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (b) | $ | 3,000,779 | 3,000,779 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $3,000,779) | 3,000,779 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.0% (Cost $269,588,194) (c) | 281,386,187 | |||||||
Other Assets/(Liabilities) — (0.0)% | (62,728 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 281,323,459 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
51
Table of Contents
MML Income & Growth Fund – Portfolio of Investments(Continued)
Abbreviation Legend
ADR | American Depositary Receipt |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Maturity value of $3,001,092. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $3,065,754. |
(c) | See Note 6 for aggregate cost for federal tax purposes. |
Country weightings, as a percentage of net assets, is as follows:
United States | 81.0 | % | ||
Ireland | 7.7 | % | ||
United Kingdom | 3.4 | % | ||
Switzerland | 2.0 | % | ||
Bermuda | 1.8 | % | ||
Netherlands | 1.5 | % | ||
Liberia | 0.8 | % | ||
Canada | 0.4 | % | ||
France | 0.3 | % | ||
|
| |||
Total Long-Term Investments | 98.9 | % | ||
Short-Term Investments and Other Assets and Liabilities | 1.1 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
The accompanying notes are an integral part of the financial statements.
52
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 96.3% |
| |||||||
COMMON STOCK — 96.3% |
| |||||||
Australia — 2.1% |
| |||||||
AMP Ltd. | 832,394 | $ | 1,240,867 | |||||
Brambles Ltd. | 38,000 | 344,311 | ||||||
Orica Ltd. | 157,499 | 2,244,272 | ||||||
|
| |||||||
3,829,450 | ||||||||
|
| |||||||
Canada — 1.5% |
| |||||||
Alimentation Couche-Tard, Inc. Class B | 8,000 | 503,440 | ||||||
Cenovus Energy, Inc. | 247,715 | 2,184,803 | ||||||
|
| |||||||
2,688,243 | ||||||||
|
| |||||||
Cayman Islands — 1.2% |
| |||||||
Baidu, Inc. Sponsored ADR (a) | 18,805 | 2,206,955 | ||||||
|
| |||||||
France — 11.8% |
| |||||||
Accor SA | 84,700 | 3,636,131 | ||||||
BNP Paribas SA | 153,150 | 7,286,627 | ||||||
Bureau Veritas SA | 69,887 | 1,726,253 | ||||||
Danone SA | 11,591 | 983,037 | ||||||
EssilorLuxottica SA | 11,505 | 1,503,914 | ||||||
Publicis Groupe SA | 60,302 | 3,184,044 | ||||||
Valeo SA | 97,210 | 3,162,245 | ||||||
|
| |||||||
21,482,251 | ||||||||
|
| |||||||
Germany — 16.9% |
| |||||||
Allianz SE Registered | 17,405 | 4,194,872 | ||||||
Bayer AG Registered | 97,094 | 6,744,083 | ||||||
Bayerische Motoren Werke AG | 69,550 | 5,156,842 | ||||||
Continental AG | 39,355 | 5,737,707 | ||||||
Daimler AG Registered | 107,903 | 6,002,927 | ||||||
thyssenkrupp AG | 199,600 | 2,919,060 | ||||||
|
| |||||||
30,755,491 | ||||||||
|
| |||||||
India — 0.3% |
| |||||||
Axis Bank Ltd. (a) | 44,742 | 526,158 | ||||||
|
| |||||||
Indonesia — 1.1% |
| |||||||
Bank Mandiri Persero Tbk PT | 3,507,600 | 1,994,802 | ||||||
|
| |||||||
Ireland — 3.0% |
| |||||||
Ryanair Holdings PLC Sponsored ADR (a) | 66,710 | 4,278,779 | ||||||
Willis Towers Watson PLC | 6,529 | 1,250,565 | ||||||
|
| |||||||
5,529,344 | ||||||||
|
| |||||||
Italy — 3.6% |
| |||||||
Intesa Sanpaolo SpA | 3,015,800 | 6,453,880 | ||||||
|
| |||||||
Japan — 4.6% |
| |||||||
Komatsu Ltd. | 144,100 | 3,491,999 | ||||||
Olympus Corp. | 113,400 | 1,264,114 | ||||||
Omron Corp. | 7,000 | 366,768 | ||||||
Toyota Motor Corp. | 51,800 | 3,219,629 | ||||||
|
| |||||||
8,342,510 | ||||||||
|
|
Number of Shares | Value | |||||||
Mexico — 0.6% |
| |||||||
Grupo Televisa SAB Sponsored ADR | 132,800 | $ | 1,120,832 | |||||
|
| |||||||
Netherlands — 7.4% |
| |||||||
Akzo Nobel NV | 9,320 | 876,032 | ||||||
ASML Holding NV | 13,245 | 2,769,095 | ||||||
CNH Industrial NV | 540,808 | 5,531,792 | ||||||
EXOR NV | 61,400 | 4,290,799 | ||||||
|
| |||||||
13,467,718 | ||||||||
|
| |||||||
Republic of Korea — 3.4% |
| |||||||
NAVER Corp. | 32,825 | 3,240,486 | ||||||
Samsung Electronics Co. Ltd. | 73,650 | 3,002,856 | ||||||
|
| |||||||
6,243,342 | ||||||||
|
| |||||||
South Africa — 1.9% |
| |||||||
Naspers Ltd. | 14,560 | 3,537,119 | ||||||
|
| |||||||
Sweden — 6.0% |
| |||||||
Hennes & Mauritz AB Class B | 281,718 | 4,999,778 | ||||||
SKF AB Class B | 148,500 | 2,730,987 | ||||||
Volvo AB Class B | 201,070 | 3,191,020 | ||||||
|
| |||||||
10,921,785 | ||||||||
|
| |||||||
Switzerland — 8.2% |
| |||||||
Cie Financiere Richemont SA Registered | 27,540 | 2,337,430 | ||||||
Credit Suisse Group AG Registered | 509,323 | 6,111,417 | ||||||
Kuehne & Nagel International AG Registered | 12,205 | 1,811,838 | ||||||
LafargeHolcim Ltd. Registered | 56,559 | 2,762,412 | ||||||
Nestle SA Registered | 8,420 | 871,712 | ||||||
The Swatch Group AG | 3,475 | 997,719 | ||||||
|
| |||||||
14,892,528 | ||||||||
|
| |||||||
Taiwan — 1.0% |
| |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 244,000 | 1,861,362 | ||||||
|
| |||||||
United Kingdom — 21.7% |
| |||||||
Ashtead Group PLC | 122,374 | 3,509,836 | ||||||
Diageo PLC | 14,000 | 602,900 | ||||||
Ferguson PLC (a) | 32,703 | 2,331,036 | ||||||
G4S PLC | 602,800 | 1,596,346 | ||||||
Glencore PLC | 1,704,900 | 5,932,587 | ||||||
Liberty Global PLC Series A (a) | 77,500 | 2,091,725 | ||||||
Liberty Global PLC Series C (a) | 71,200 | 1,888,936 | ||||||
Lloyds Banking Group PLC | 6,517,900 | 4,693,817 | ||||||
Meggitt PLC | 82,438 | 549,346 | ||||||
Reckitt Benckiser Group PLC | 19,940 | 1,575,805 | ||||||
Rolls-Royce Holdings PLC | 246,700 | 2,639,863 | ||||||
Royal Bank of Scotland Group PLC | 1,125,200 | 3,141,421 | ||||||
Schroders PLC | 109,100 | 4,230,451 | ||||||
Smiths Group PLC | 86,200 | 1,715,996 |
The accompanying notes are an integral part of the financial statements.
53
Table of Contents
MML International Equity Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
WPP PLC | 231,700 | $ | 2,922,400 | |||||
|
| |||||||
39,422,465 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $190,296,787) | 175,276,235 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $190,296,787) | 175,276,235 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $190,296,787) | 175,276,235 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 3.7% |
| |||||||
Repurchase Agreement — 3.7% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (b) | $ | 6,840,906 | 6,840,906 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $6,840,906) | 6,840,906 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.0% (Cost $197,137,693) (c) | 182,117,141 | |||||||
Other Assets/(Liabilities) — (0.0)% | (82,531 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 182,034,610 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Maturity value of $6,841,619. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $6,981,975. |
(c) | See Note 6 for aggregate cost for federal tax purposes. |
Sector weightings, as a percentage of net assets, is as follows:
Consumer, Cyclical | 25.1 | % | ||
Financial | 24.9 | % | ||
Industrial | 13.1 | % | ||
Consumer,Non-cyclical | 11.4 | % | ||
Communications | 11.1 | % | ||
Basic Materials | 5.3 | % | ||
Technology | 4.2 | % | ||
Energy | 1.2 | % | ||
|
| |||
Total Long-Term Investments | 96.3 | % | ||
Short-Term Investments and Other Assets and Liabilities | 3.7 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
Forward contracts
Counterparty | Settlement Date | Currency Purchased | Currency Sold | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
State Street Bank and Trust Co.* | 12/18/19 | USD | $ | 1,785,952 | CHF | 1,747,000 | $ | (30,515 | ) | |||||||||||||||
|
|
* | Contracts are subject to a Master Netting Agreement. |
Currency Legend
CHF | Swiss Franc |
The accompanying notes are an integral part of the financial statements.
54
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 99.0% |
| |||||||
COMMON STOCK — 99.0% |
| |||||||
Communications — 28.1% |
| |||||||
Internet — 23.2% |
| |||||||
Alibaba Group Holding Ltd. Sponsored ADR (a) | 31,504 | $ | 5,338,353 | |||||
Alphabet, Inc. Class A (a) | 2,453 | 2,656,108 | ||||||
Alphabet, Inc. Class C (a) | 2,460 | 2,659,039 | ||||||
Amazon.com, Inc. (a) | 3,700 | 7,006,431 | ||||||
Facebook, Inc. Class A (a) | 32,435 | 6,259,955 | ||||||
|
| |||||||
23,919,886 | ||||||||
|
| |||||||
Media — 1.9% |
| |||||||
FactSet Research Systems, Inc. | 6,850 | 1,962,936 | ||||||
|
| |||||||
Telecommunications — 3.0% |
| |||||||
Cisco Systems, Inc. | 57,194 | 3,130,227 | ||||||
|
| |||||||
29,013,049 | ||||||||
|
| |||||||
Consumer, Cyclical — 6.9% |
| |||||||
Retail — 6.9% |
| |||||||
Starbucks Corp. | 43,349 | 3,633,947 | ||||||
Yum China Holdings, Inc. | 32,905 | 1,520,211 | ||||||
Yum! Brands, Inc. | 18,074 | 2,000,249 | ||||||
|
| |||||||
7,154,407 | ||||||||
|
| |||||||
7,154,407 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 26.1% |
| |||||||
Beverages — 5.8% |
| |||||||
The Coca-Cola Co. | 49,230 | 2,506,792 | ||||||
Monster Beverage Corp. (a) | 55,547 | 3,545,565 | ||||||
|
| |||||||
6,052,357 | ||||||||
|
| |||||||
Biotechnology — 4.1% |
| |||||||
Amgen, Inc. | 8,495 | 1,565,459 | ||||||
Regeneron Pharmaceuticals, Inc. (a) | 8,449 | 2,644,537 | ||||||
|
| |||||||
4,209,996 | ||||||||
|
| |||||||
Commercial Services — 1.0% |
| |||||||
Automatic Data Processing, Inc. | 6,167 | 1,019,590 | ||||||
|
| |||||||
Cosmetics & Personal Care — 5.1% |
| |||||||
Colgate-Palmolive Co. | 28,765 | 2,061,587 | ||||||
The Procter & Gamble Co. | 28,895 | 3,168,337 | ||||||
|
| |||||||
5,229,924 | ||||||||
|
| |||||||
Foods — 2.7% |
| |||||||
Danone SA Sponsored ADR | 168,082 | 2,845,628 | ||||||
|
| |||||||
Health Care – Products — 2.0% |
| |||||||
Alcon, Inc. (a) | 3,613 | 224,187 | ||||||
Varian Medical Systems, Inc. (a) | 13,348 | 1,817,063 | ||||||
|
| |||||||
2,041,250 | ||||||||
|
| |||||||
Pharmaceuticals — 5.4% |
| |||||||
Merck & Co., Inc. | 14,528 | 1,218,173 |
Number of Shares | Value | |||||||
Novartis AG Sponsored ADR | 18,074 | $ | 1,650,337 | |||||
Novo Nordisk A/S Sponsored ADR | 52,932 | 2,701,649 | ||||||
|
| |||||||
5,570,159 | ||||||||
|
| |||||||
26,968,904 | ||||||||
|
| |||||||
Energy — 1.5% |
| |||||||
Oil & Gas Services — 1.5% |
| |||||||
Schlumberger Ltd. | 40,123 | 1,594,488 | ||||||
|
| |||||||
Financial — 10.2% |
| |||||||
Diversified Financial Services — 10.2% |
| |||||||
American Express Co. | 9,829 | 1,213,292 | ||||||
SEI Investments Co. | 38,457 | 2,157,438 | ||||||
Visa, Inc. Class A | 41,011 | 7,117,459 | ||||||
|
| |||||||
10,488,189 | ||||||||
|
| |||||||
10,488,189 | ||||||||
|
| |||||||
Industrial — 5.3% |
| |||||||
Machinery – Diversified — 2.6% |
| |||||||
Deere & Co. | 15,992 | 2,650,034 | ||||||
|
| |||||||
Transportation — 2.7% |
| |||||||
Expeditors International of Washington, Inc. | 37,082 | 2,813,041 | ||||||
|
| |||||||
5,463,075 | ||||||||
|
| |||||||
Technology — 20.9% |
| |||||||
Semiconductors — 5.4% |
| |||||||
NVIDIA Corp. | 14,726 | 2,418,451 | ||||||
QUALCOMM, Inc. | 41,920 | 3,188,854 | ||||||
|
| |||||||
5,607,305 | ||||||||
|
| |||||||
Software — 15.5% |
| |||||||
Autodesk, Inc. (a) | 26,651 | 4,341,448 | ||||||
Cerner Corp. | 34,603 | 2,536,400 | ||||||
Microsoft Corp. | 28,371 | 3,800,579 | ||||||
Oracle Corp. | 92,930 | 5,294,222 | ||||||
|
| |||||||
15,972,649 | ||||||||
|
| |||||||
21,579,954 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $67,447,989) | 102,262,066 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $67,447,989) | 102,262,066 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $67,447,989) | 102,262,066 | |||||||
|
|
The accompanying notes are an integral part of the financial statements.
55
Table of Contents
MML Large Cap Growth Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
SHORT-TERM INVESTMENTS — 1.1% |
| |||||||
Repurchase Agreement — 1.1% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (b) | $ | 1,110,906 | $ | 1,110,906 | ||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $1,110,906) | 1,110,906 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.1% (Cost $68,558,895) (c) | 103,372,972 | |||||||
Other Assets/(Liabilities) — (0.1)% | (75,547 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 103,297,425 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Maturity value of $1,111,022. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $1,135,653. |
(c) | See Note 6 for aggregate cost for federal tax purposes. |
Country weightings, as a percentage of net assets, is as follows:
United States | 85.1 | % | ||
Cayman Islands | 5.2 | % | ||
France | 2.8 | % | ||
Denmark | 2.6 | % | ||
Switzerland | 1.8 | % | ||
Netherlands | 1.5 | % | ||
|
| |||
Total Long-Term Investments | 99.0 | % | ||
Short-Term Investments and Other Assets and Liabilities | 1.0 | % | ||
|
| |||
Net Assets | 100.0 | % | ||
|
|
The accompanying notes are an integral part of the financial statements.
56
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 99.3% |
| |||||||
COMMON STOCK — 99.3% |
| |||||||
Basic Materials — 2.2% |
| |||||||
Chemicals — 1.9% |
| |||||||
Air Products & Chemicals, Inc. (a) | 1,402 | $ | 317,371 | |||||
Albemarle Corp. (a) | 707 | 49,780 | ||||||
Celanese Corp. (a) | 819 | 88,288 | ||||||
CF Industries Holdings, Inc. (a) | 1,446 | 67,543 | ||||||
Dow, Inc. (a) | 4,669 | 230,228 | ||||||
DuPont de Nemours, Inc. (a) | 4,692 | 352,228 | ||||||
Eastman Chemical Co. (a) | 897 | 69,814 | ||||||
Ecolab, Inc. (a) | 1,585 | 312,942 | ||||||
FMC Corp. (a) | 846 | 70,176 | ||||||
International Flavors & Fragrances, Inc. (a) | 642 | 93,148 | ||||||
Linde PLC (a) | 3,407 | 684,126 | ||||||
LyondellBasell Industries NV Class A (a) | 1,910 | 164,508 | ||||||
The Mosaic Co. (a) | 2,185 | 54,691 | ||||||
PPG Industries, Inc. (a) | 1,456 | 169,930 | ||||||
The Sherwin-Williams Co. (a) | 505 | 231,436 | ||||||
|
| |||||||
2,956,209 | ||||||||
|
| |||||||
Forest Products & Paper — 0.1% |
| |||||||
International Paper Co. (a) | 2,513 | 108,863 | ||||||
|
| |||||||
Iron & Steel — 0.1% |
| |||||||
Nucor Corp. (a) | 1,983 | 109,263 | ||||||
|
| |||||||
Mining — 0.1% |
| |||||||
Freeport-McMoRan, Inc. (a) | 9,016 | 104,676 | ||||||
Newmont Goldcorp Corp. (a) | 5,154 | 198,274 | ||||||
|
| |||||||
302,950 | ||||||||
|
| |||||||
3,477,285 | ||||||||
|
| |||||||
Communications — 15.0% |
| |||||||
Advertising — 0.1% |
| |||||||
The Interpublic Group of Cos., Inc. (a) | 2,339 | 52,838 | ||||||
Omnicom Group, Inc. (a) | 1,396 | 114,402 | ||||||
|
| |||||||
167,240 | ||||||||
|
| |||||||
Internet — 9.2% |
| |||||||
Alphabet, Inc. Class A (a) (b) | 1,883 | 2,038,912 | ||||||
Alphabet, Inc. Class C (a) (b) | 1,929 | 2,085,075 | ||||||
Amazon.com, Inc. (a) (b) | 2,602 | 4,927,225 | ||||||
Booking Holdings, Inc. (a) (b) | 272 | 509,921 | ||||||
eBay, Inc. (a) | 5,133 | 202,754 | ||||||
Expedia Group, Inc. (a) | 742 | 98,708 | ||||||
F5 Networks, Inc. (a) (b) | 369 | 53,738 | ||||||
Facebook, Inc. Class A (a) (b) | 15,114 | 2,917,002 | ||||||
Netflix, Inc. (a) (b) | 2,749 | 1,009,763 | ||||||
Symantec Corp. (a) | 4,025 | 87,584 | ||||||
TripAdvisor, Inc. (a) (b) | 678 | 31,385 |
Number of Shares | Value | |||||||
Twitter, Inc. (a) (b) | 4,640 | $ | 161,936 | |||||
VeriSign, Inc. (a) (b) | 667 | 139,510 | ||||||
|
| |||||||
14,263,513 | ||||||||
|
| |||||||
Media — 2.4% |
| |||||||
CBS Corp. Class B (a) | 2,243 | 111,926 | ||||||
Charter Communications, Inc. Class A (a) (b) | 1,080 | 426,794 | ||||||
Comcast Corp. Class A (a) | 28,497 | 1,204,853 | ||||||
Discovery, Inc. Class A (a) (b) (c) | 1,098 | 33,709 | ||||||
Discovery, Inc. Class C (a) (b) | 2,125 | 60,456 | ||||||
DISH Network Corp. Class A (a) (b) | 1,452 | 55,771 | ||||||
Fox Corp. Class A (a) (b) | 2,249 | 82,403 | ||||||
Fox Corp. Class B (a) (b) | 1,084 | 39,599 | ||||||
News Corp. Class A (a) | 2,369 | 31,958 | ||||||
News Corp. Class B | 778 | 10,861 | ||||||
Viacom, Inc. Class B (a) | 2,184 | 65,236 | ||||||
The Walt Disney Co. (a) | 10,983 | 1,533,666 | ||||||
|
| |||||||
3,657,232 | ||||||||
|
| |||||||
Telecommunications — 3.3% |
| |||||||
Arista Networks, Inc. (a) (b) | 333 | 86,453 | ||||||
AT&T, Inc. (a) | 45,945 | 1,539,617 | ||||||
CenturyLink, Inc. (a) | 5,926 | 69,690 | ||||||
Cisco Systems, Inc. (a) | 26,919 | 1,473,277 | ||||||
Corning, Inc. (a) | 4,889 | 162,462 | ||||||
Juniper Networks, Inc. (a) | 2,245 | 59,784 | ||||||
Motorola Solutions, Inc. (a) | 1,038 | 173,066 | ||||||
Verizon Communications, Inc. (a) | 26,026 | 1,486,865 | ||||||
|
| |||||||
5,051,214 | ||||||||
|
| |||||||
23,139,199 | ||||||||
|
| |||||||
Consumer, Cyclical — 8.3% |
| |||||||
Airlines — 0.4% |
| |||||||
Alaska Air Group, Inc. (a) | 784 | 50,105 | ||||||
American Airlines Group, Inc. (a) | 2,529 | 82,471 | ||||||
Delta Air Lines, Inc. (a) | 3,700 | 209,975 | ||||||
Southwest Airlines Co. (a) | 3,042 | 154,473 | ||||||
United Continental Holdings, Inc. (a) (b) | 1,430 | 125,196 | ||||||
|
| |||||||
622,220 | ||||||||
|
| |||||||
Apparel — 0.7% |
| |||||||
Capri Holdings Ltd. (a) (b) | 1,057 | 36,657 | ||||||
Hanesbrands, Inc. (a) | 2,164 | 37,264 | ||||||
NIKE, Inc. Class B (a) | 7,885 | 661,946 | ||||||
PVH Corp. (a) | 482 | 45,616 | ||||||
Ralph Lauren Corp. (a) | 318 | 36,122 | ||||||
Tapestry, Inc. (a) | 1,737 | 55,115 | ||||||
Under Armour, Inc. Class A (a) (b) | 1,136 | 28,798 | ||||||
Under Armour, Inc. Class C (a) (b) | 1,292 | 28,682 | ||||||
VF Corp. (a) | 2,080 | 181,688 | ||||||
|
| |||||||
1,111,888 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
57
Table of Contents
MML Managed Volatility Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Auto Manufacturers — 0.5% |
| |||||||
Ford Motor Co. (a) | 24,448 | $ | 250,103 | |||||
General Motors Co. (a) | 8,349 | 321,687 | ||||||
PACCAR, Inc. (a) | 2,198 | 157,509 | ||||||
|
| |||||||
729,299 | ||||||||
|
| |||||||
Auto Parts & Equipment — 0.1% |
| |||||||
Aptiv PLC (a) | 1,633 | 131,996 | ||||||
BorgWarner, Inc. (a) | 1,381 | 57,974 | ||||||
|
| |||||||
189,970 | ||||||||
|
| |||||||
Distribution & Wholesale — 0.2% |
| |||||||
Copart, Inc. (a) (b) | 1,281 | 95,742 | ||||||
Fastenal Co. (a) | 3,586 | 116,868 | ||||||
LKQ Corp. (a) (b) | 1,982 | 52,741 | ||||||
W.W. Grainger, Inc. (a) | 279 | 74,836 | ||||||
|
| |||||||
340,187 | ||||||||
|
| |||||||
Home Builders — 0.1% |
| |||||||
D.R. Horton, Inc. (a) | 2,212 | 95,404 | ||||||
Lennar Corp. Class A (a) | 1,747 | 84,660 | ||||||
PulteGroup, Inc. (a) | 1,654 | 52,299 | ||||||
|
| |||||||
232,363 | ||||||||
|
| |||||||
Home Furnishing — 0.1% |
| |||||||
Leggett & Platt, Inc. (a) | 752 | 28,854 | ||||||
Whirlpool Corp. (a) | 388 | 55,236 | ||||||
|
| |||||||
84,090 | ||||||||
|
| |||||||
Housewares — 0.0% |
| |||||||
Newell Brands, Inc. (a) | 2,437 | 37,578 | ||||||
|
| |||||||
Leisure Time — 0.2% |
| |||||||
Carnival Corp. (a) | 2,534 | 117,958 | ||||||
Harley-Davidson, Inc. (a) | 989 | 35,436 | ||||||
Norwegian Cruise Line Holdings Ltd. (a) (b) | 1,339 | 71,811 | ||||||
Royal Caribbean Cruises Ltd. (a) | 1,088 | 131,876 | ||||||
|
| |||||||
357,081 | ||||||||
|
| |||||||
Lodging — 0.4% |
| |||||||
Hilton Worldwide Holdings, Inc. (a) | 1,820 | 177,886 | ||||||
Marriott International, Inc. Class A (a) | 1,734 | 243,263 | ||||||
MGM Resorts International (a) | 3,144 | 89,824 | ||||||
Wynn Resorts Ltd. (a) | 612 | 75,882 | ||||||
|
| |||||||
586,855 | ||||||||
|
| |||||||
Retail — 5.5% |
| |||||||
Advance Auto Parts, Inc. (a) | 443 | 68,284 | ||||||
AutoZone, Inc. (a) (b) | 153 | 168,219 | ||||||
Best Buy Co., Inc. (a) | 1,452 | 101,248 | ||||||
CarMax, Inc. (a) (b) | 1,080 | 93,776 | ||||||
Chipotle Mexican Grill, Inc. (a) (b) | 157 | 115,062 | ||||||
Costco Wholesale Corp. (a) | 2,766 | 730,943 | ||||||
Darden Restaurants, Inc. (a) | 760 | 92,515 | ||||||
Dollar General Corp. (a) | 1,615 | 218,283 |
Number of Shares | Value | |||||||
Dollar Tree, Inc. (a) (b) | 1,479 | $ | 158,830 | |||||
Foot Locker, Inc. (a) | 695 | 29,134 | ||||||
The Gap, Inc. (a) | 1,218 | 21,888 | ||||||
Genuine Parts Co. (a) | 927 | 96,019 | ||||||
The Home Depot, Inc. (a) | 6,919 | 1,438,945 | ||||||
Kohl’s Corp. (a) | 1,089 | 51,782 | ||||||
L Brands, Inc. (a) | 1,502 | 39,202 | ||||||
Lowe’s Cos., Inc. (a) | 4,913 | 495,771 | ||||||
Macy’s, Inc. (a) | 1,896 | 40,688 | ||||||
McDonald’s Corp. (a) | 4,799 | 996,560 | ||||||
Nordstrom, Inc. (a) | 655 | 20,868 | ||||||
O’Reilly Automotive, Inc. (a) (b) | 500 | 184,660 | ||||||
Ross Stores, Inc. (a) | 2,333 | 231,247 | ||||||
Starbucks Corp. (a) | 7,609 | 637,863 | ||||||
Target Corp. (a) | 3,215 | 278,451 | ||||||
Tiffany & Co. (a) | 663 | 62,083 | ||||||
The TJX Cos., Inc. (a) | 7,606 | 402,205 | ||||||
Tractor Supply Co. (a) | 753 | 81,926 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. (a) (b) | 359 | 124,534 | ||||||
Walgreens Boots Alliance, Inc. (a) | 4,872 | 266,352 | ||||||
Walmart, Inc. (a) | 8,807 | 973,086 | ||||||
Yum! Brands, Inc. (a) | 1,943 | 215,032 | ||||||
|
| |||||||
8,435,456 | ||||||||
|
| |||||||
Textiles — 0.0% |
| |||||||
Mohawk Industries, Inc. (a) (b) | 367 | 54,121 | ||||||
|
| |||||||
Toys, Games & Hobbies — 0.1% |
| |||||||
Hasbro, Inc. (a) | 734 | 77,569 | ||||||
|
| |||||||
12,858,677 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 21.9% |
| |||||||
Agriculture — 0.9% |
| |||||||
Altria Group, Inc. (a) | 11,755 | 556,599 | ||||||
Archer-Daniels-Midland Co. (a) | 3,552 | 144,922 | ||||||
Philip Morris International, Inc. (a) | 9,779 | 767,945 | ||||||
|
| |||||||
1,469,466 | ||||||||
|
| |||||||
Beverages — 1.9% |
| |||||||
Brown-Forman Corp. Class B (a) | 1,119 | 62,026 | ||||||
The Coca-Cola Co. (a) | 24,153 | 1,229,871 | ||||||
Constellation Brands, Inc. Class A (a) | 1,045 | 205,802 | ||||||
Molson Coors Brewing Co. Class B (a) | 1,170 | 65,520 | ||||||
Monster Beverage Corp. (a) (b) | 2,446 | 156,128 | ||||||
PepsiCo, Inc. (a) | 8,818 | 1,156,305 | ||||||
|
| |||||||
2,875,652 | ||||||||
|
| |||||||
Biotechnology — 2.0% |
| |||||||
Alexion Pharmaceuticals, Inc. (a) (b) | 1,428 | 187,040 | ||||||
Amgen, Inc. (a) | 3,832 | 706,161 | ||||||
Biogen, Inc. (a) (b) | 1,214 | 283,918 | ||||||
Celgene Corp. (a) (b) | 4,432 | 409,694 | ||||||
Corteva, Inc. (a) (b) | 4,629 | 136,880 |
The accompanying notes are an integral part of the financial statements.
58
Table of Contents
MML Managed Volatility Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Gilead Sciences, Inc. (a) | 7,991 | $ | 539,872 | |||||
Illumina, Inc. (a) (b) | 922 | 339,434 | ||||||
Incyte Corp. (a) (b) | 1,122 | 95,325 | ||||||
Regeneron Pharmaceuticals, Inc. (a) (b) | 499 | 156,187 | ||||||
Vertex Pharmaceuticals, Inc. (a) (b) | 1,603 | 293,958 | ||||||
|
| |||||||
3,148,469 | ||||||||
|
| |||||||
Commercial Services — 2.1% |
| |||||||
Automatic Data Processing, Inc. (a) | 2,730 | 451,351 | ||||||
Cintas Corp. (a) | 540 | 128,137 | ||||||
Equifax, Inc. (a) | 766 | 103,594 | ||||||
FleetCor Technologies, Inc. (a) (b) | 547 | 153,625 | ||||||
Gartner, Inc. (a) (b) | 570 | 91,736 | ||||||
Global Payments, Inc. (a) | 1,003 | 160,610 | ||||||
H&R Block, Inc. (a) | 1,252 | 36,684 | ||||||
IHS Markit Ltd. (a) (b) | 2,294 | 146,174 | ||||||
Moody’s Corp. (a) | 1,030 | 201,169 | ||||||
Nielsen Holdings PLC (a) | 2,358 | 53,291 | ||||||
PayPal Holdings, Inc. (a) (b) | 7,387 | 845,516 | ||||||
Quanta Services, Inc. (a) | 892 | 34,065 | ||||||
Robert Half International, Inc. (a) | 727 | 41,446 | ||||||
Rollins, Inc. (a) | 925 | 33,180 | ||||||
S&P Global, Inc. (a) | 1,541 | 351,024 | ||||||
Total System Services, Inc. (a) | 1,010 | 129,553 | ||||||
United Rentals, Inc. (a) (b) | 499 | 66,182 | ||||||
Verisk Analytics, Inc. (a) | 1,038 | 152,025 | ||||||
|
| |||||||
3,179,362 | ||||||||
|
| |||||||
Cosmetics & Personal Care — 1.5% |
| |||||||
Colgate-Palmolive Co. (a) | 5,379 | 385,513 | ||||||
Coty, Inc. Class A (a) | 1,888 | 25,299 | ||||||
The Estee Lauder Cos., Inc. Class A (a) | 1,393 | 255,072 | ||||||
The Procter & Gamble Co. (a) | 15,783 | 1,730,606 | ||||||
|
| |||||||
2,396,490 | ||||||||
|
| |||||||
Foods — 1.3% |
| |||||||
Campbell Soup Co. (a) | 1,221 | 48,925 | ||||||
Conagra Brands, Inc. (a) | 3,015 | 79,958 | ||||||
General Mills, Inc. (a) | 3,793 | 199,208 | ||||||
The Hershey Co. (a) | 888 | 119,019 | ||||||
Hormel Foods Corp. (a) | 1,735 | 70,337 | ||||||
The J.M. Smucker Co. (a) | 724 | 83,398 | ||||||
Kellogg Co. (a) | 1,555 | 83,301 | ||||||
The Kraft Heinz Co. (a) | 3,972 | 123,291 | ||||||
The Kroger Co. (a) | 5,073 | 110,135 | ||||||
Lamb Weston Holdings, Inc. (a) | 897 | 56,834 | ||||||
McCormick & Co., Inc. (a) | 767 | 118,893 | ||||||
Mondelez International, Inc. Class A (a) | 9,027 | 486,555 | ||||||
Sysco Corp. (a) | 2,958 | 209,190 | ||||||
Tyson Foods, Inc. Class A (a) | 1,864 | 150,499 | ||||||
|
| |||||||
1,939,543 | ||||||||
|
|
Number of Shares | Value | |||||||
Health Care – Products — 4.0% |
| |||||||
Abbott Laboratories (a) | 11,095 | $ | 933,090 | |||||
ABIOMED, Inc. (a) (b) | 297 | 77,366 | ||||||
Align Technology, Inc. (a) (b) | 455 | 124,534 | ||||||
Baxter International, Inc. (a) | 2,971 | 243,325 | ||||||
Becton Dickinson and Co. (a) | 1,713 | 431,693 | ||||||
Boston Scientific Corp. (a) (b) | 8,708 | 374,270 | ||||||
The Cooper Cos., Inc. (a) | 308 | 103,762 | ||||||
Danaher Corp. (a) | 3,959 | 565,820 | ||||||
DENTSPLY SIRONA, Inc. (a) | 1,476 | 86,139 | ||||||
Edwards Lifesciences Corp. (a) (b) | 1,324 | 244,596 | ||||||
Henry Schein, Inc. (a) (b) | 927 | 64,797 | ||||||
Hologic, Inc. (a) (b) | 1,646 | 79,041 | ||||||
IDEXX Laboratories, Inc. (a) (b) | 546 | 150,330 | ||||||
Intuitive Surgical, Inc. (a) (b) | 723 | 379,250 | ||||||
Medtronic PLC (a) | 8,429 | 820,900 | ||||||
ResMed, Inc. (a) | 888 | 108,363 | ||||||
Stryker Corp. (a) | 1,941 | 399,031 | ||||||
Teleflex, Inc. (a) | 289 | 95,702 | ||||||
Thermo Fisher Scientific, Inc. (a) | 2,515 | 738,605 | ||||||
Varian Medical Systems, Inc. (a) (b) | 573 | 78,002 | ||||||
Zimmer Biomet Holdings, Inc. (a) | 1,303 | 153,415 | ||||||
|
| |||||||
6,252,031 | ||||||||
|
| |||||||
Health Care – Services — 2.0% |
| |||||||
Anthem, Inc. (a) | 1,617 | 456,334 | ||||||
Centene Corp. (a) (b) | 2,611 | 136,921 | ||||||
DaVita, Inc. (a) (b) | 807 | 45,402 | ||||||
HCA Healthcare, Inc. (a) | 1,699 | 229,654 | ||||||
Humana, Inc. (a) | 845 | 224,178 | ||||||
IQVIA Holdings, Inc. (a) (b) | 1,012 | 162,831 | ||||||
Laboratory Corp. of America Holdings (a) (b) | 625 | 108,062 | ||||||
Quest Diagnostics, Inc. (a) | 833 | 84,808 | ||||||
UnitedHealth Group, Inc. (a) | 5,985 | 1,460,400 | ||||||
Universal Health Services, Inc. Class B (a) | 509 | 66,368 | ||||||
WellCare Health Plans, Inc. (a) (b) | 314 | 89,512 | ||||||
|
| |||||||
3,064,470 | ||||||||
|
| |||||||
Household Products & Wares — 0.4% |
| |||||||
Avery Dennison Corp. (a) | 524 | 60,616 | ||||||
Church & Dwight Co., Inc. (a) | 1,572 | 114,850 | ||||||
The Clorox Co. (a) | 814 | 124,632 | ||||||
Kimberly-Clark Corp. (a) | 2,151 | 286,685 | ||||||
|
| |||||||
586,783 | ||||||||
|
| |||||||
Pharmaceuticals — 5.8% |
| |||||||
AbbVie, Inc. (a) | 9,299 | 676,223 | ||||||
Allergan PLC (a) | 1,934 | 323,810 | ||||||
AmerisourceBergen Corp. (a) | 988 | 84,237 | ||||||
Bristol-Myers Squibb Co. (a) | 10,284 | 466,379 | ||||||
Cardinal Health, Inc. (a) | 1,873 | 88,218 | ||||||
Cigna Corp. (a) (b) | 2,382 | 375,284 |
The accompanying notes are an integral part of the financial statements.
59
Table of Contents
MML Managed Volatility Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
CVS Health Corp. (a) | 8,158 | $ | 444,529 | |||||
Eli Lilly & Co. (a) | 5,434 | 602,033 | ||||||
Johnson & Johnson (a) | 16,711 | 2,327,508 | ||||||
McKesson Corp. (a) | 1,186 | 159,387 | ||||||
Merck & Co., Inc. (a) | 16,209 | 1,359,125 | ||||||
Mylan NV (a) (b) | 3,316 | 63,137 | ||||||
Nektar Therapeutics (a) (b) | 1,135 | 40,383 | ||||||
Perrigo Co. PLC (a) | 708 | 33,715 | ||||||
Pfizer, Inc. (a) | 34,950 | 1,514,034 | ||||||
Zoetis, Inc. (a) | 3,005 | 341,038 | ||||||
|
| |||||||
8,899,040 | ||||||||
|
| |||||||
33,811,306 | ||||||||
|
| |||||||
Energy — 5.0% |
| |||||||
Oil & Gas — 4.2% |
| |||||||
Anadarko Petroleum Corp. (a) | 3,151 | 222,335 | ||||||
Apache Corp. (a) | 2,363 | 68,456 | ||||||
Cabot Oil & Gas Corp. (a) | 2,694 | 61,854 | ||||||
Chevron Corp. (a) | 11,980 | 1,490,791 | ||||||
Cimarex Energy Co. (a) | 665 | 39,454 | ||||||
Concho Resources, Inc. (a) | 1,248 | 128,769 | ||||||
ConocoPhillips (a) | 7,096 | 432,856 | ||||||
Devon Energy Corp. (a) | 2,605 | 74,295 | ||||||
Diamondback Energy, Inc. (a) | 977 | 106,464 | ||||||
EOG Resources, Inc. (a) | 3,625 | 337,705 | ||||||
Exxon Mobil Corp. (a) | 26,612 | 2,039,278 | ||||||
Helmerich & Payne, Inc. (a) | 684 | 34,624 | ||||||
Hess Corp. (a) | 1,660 | 105,526 | ||||||
HollyFrontier Corp. (a) | 942 | 43,596 | ||||||
Marathon Oil Corp. (a) | 5,116 | 72,698 | ||||||
Marathon Petroleum Corp. (a) | 4,131 | 230,840 | ||||||
Noble Energy, Inc. (a) | 2,907 | 65,117 | ||||||
Occidental Petroleum Corp. (a) | 4,759 | 239,282 | ||||||
Phillips 66 (a) | 2,599 | 243,110 | ||||||
Pioneer Natural Resources Co. (a) | 1,072 | 164,938 | ||||||
Valero Energy Corp. (a) | 2,644 | 226,353 | ||||||
|
| |||||||
6,428,341 | ||||||||
|
| |||||||
Oil & Gas Services — 0.4% |
| |||||||
Baker Hughes a GE Co. (a) | 3,205 | 78,939 | ||||||
Halliburton Co. (a) | 5,550 | 126,207 | ||||||
National Oilwell Varco, Inc. (a) | 2,366 | 52,596 | ||||||
Schlumberger Ltd. (a) | 8,663 | 344,268 | ||||||
TechnipFMC PLC (a) | 2,800 | 72,632 | ||||||
|
| |||||||
674,642 | ||||||||
|
| |||||||
Pipelines — 0.4% |
| |||||||
Kinder Morgan, Inc. (a) | 12,388 | 258,662 | ||||||
ONEOK, Inc. (a) | 2,603 | 179,112 | ||||||
The Williams Cos., Inc. (a) | 7,701 | 215,936 | ||||||
|
| |||||||
653,710 | ||||||||
|
| |||||||
7,756,693 | ||||||||
|
|
Number of Shares | Value | |||||||
Financial — 17.8% |
| |||||||
Banks — 6.2% |
| |||||||
Bank of America Corp. (a) | 55,624 | $ | 1,613,096 | |||||
The Bank of New York Mellon Corp. (a) | 5,577 | 246,224 | ||||||
BB&T Corp. (a) | 4,789 | 235,284 | ||||||
Citigroup, Inc. (a) | 14,540 | 1,018,236 | ||||||
Citizens Financial Group, Inc. (a) | 2,920 | 103,251 | ||||||
Comerica, Inc. (a) | 1,001 | 72,713 | ||||||
Fifth Third Bancorp (a) | 4,501 | 125,578 | ||||||
First Republic Bank (a) | 1,024 | 99,994 | ||||||
The Goldman Sachs Group, Inc. (a) | 2,134 | 436,616 | ||||||
Huntington Bancshares, Inc. (a) | 6,638 | 91,737 | ||||||
JP Morgan Chase & Co. (a) | 20,412 | 2,282,062 | ||||||
KeyCorp (a) | 6,407 | 113,724 | ||||||
M&T Bank Corp. (a) | 847 | 144,049 | ||||||
Morgan Stanley (a) | 7,995 | 350,261 | ||||||
Northern Trust Corp. (a) | 1,343 | 120,870 | ||||||
The PNC Financial Services Group, Inc. (a) | 2,833 | 388,914 | ||||||
Regions Financial Corp. (a) | 6,416 | 95,855 | ||||||
State Street Corp. (a) | 2,315 | 129,779 | ||||||
SunTrust Banks, Inc. (a) | 2,828 | 177,740 | ||||||
SVB Financial Group (a) (b) | 338 | 75,911 | ||||||
US Bancorp (a) | 9,410 | 493,084 | ||||||
Wells Fargo & Co. (a) | 25,452 | 1,204,389 | ||||||
Zions Bancorp NA (a) | 1,090 | 50,118 | ||||||
|
| |||||||
9,669,485 | ||||||||
|
| |||||||
Diversified Financial Services — 4.3% |
| |||||||
Affiliated Managers Group, Inc. (a) | 335 | 30,867 | ||||||
Alliance Data Systems Corp. (a) | 267 | 37,415 | ||||||
American Express Co. (a) | 4,304 | 531,286 | ||||||
Ameriprise Financial, Inc. (a) | 850 | 123,386 | ||||||
BlackRock, Inc. (a) | 746 | 350,098 | ||||||
Capital One Financial Corp. (a) | 2,939 | 266,685 | ||||||
Cboe Global Markets, Inc. (a) | 700 | 72,541 | ||||||
The Charles Schwab Corp. (a) | 7,571 | 304,279 | ||||||
CME Group, Inc. (a) | 2,249 | 436,553 | ||||||
Discover Financial Services (a) | 2,007 | 155,723 | ||||||
E*TRADE Financial Corp. (a) | 1,559 | 69,531 | ||||||
Franklin Resources, Inc. (a) | 1,795 | 62,466 | ||||||
Intercontinental Exchange, Inc. (a) | 3,535 | 303,798 | ||||||
Invesco Ltd. (a) | 2,483 | 50,802 | ||||||
Jefferies Financial Group, Inc. (a) | 1,765 | 33,941 | ||||||
Mastercard, Inc. Class A (a) | 5,653 | 1,495,388 | ||||||
Nasdaq, Inc. (a) | 766 | 73,666 | ||||||
Raymond James Financial, Inc. (a) | 796 | 67,302 | ||||||
Synchrony Financial (a) | 3,963 | 137,397 | ||||||
T. Rowe Price Group, Inc. (a) | 1,513 | 165,991 | ||||||
Visa, Inc. Class A (a) | 10,942 | 1,898,984 | ||||||
The Western Union Co. (a) | 2,805 | 55,792 | ||||||
|
| |||||||
6,723,891 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
60
Table of Contents
MML Managed Volatility Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Insurance — 4.2% |
| |||||||
Aflac, Inc. (a) | 4,685 | $ | 256,785 | |||||
The Allstate Corp. (a) | 2,115 | 215,074 | ||||||
American International Group, Inc. (a) | 5,453 | 290,536 | ||||||
Aon PLC (a) | 1,530 | 295,259 | ||||||
Arthur J Gallagher & Co. (a) | 1,134 | 99,327 | ||||||
Assurant, Inc. (a) | 369 | 39,254 | ||||||
Berkshire Hathaway, Inc. Class B (a) (b) | 12,202 | 2,601,100 | ||||||
Chubb Ltd. (a) | 2,882 | 424,490 | ||||||
Cincinnati Financial Corp. (a) | 931 | 96,517 | ||||||
Everest Re Group Ltd. (a) | 252 | 62,289 | ||||||
The Hartford Financial Services Group, Inc. (a) | 2,284 | 127,265 | ||||||
Lincoln National Corp. (a) | 1,283 | 82,689 | ||||||
Loews Corp. (a) | 1,647 | 90,042 | ||||||
Marsh & McLennan Cos., Inc. (a) | 3,238 | 322,991 | ||||||
MetLife, Inc. (a) | 5,965 | 296,282 | ||||||
Principal Financial Group, Inc. (a) | 1,646 | 95,336 | ||||||
The Progressive Corp. (a) | 3,665 | 292,943 | ||||||
Prudential Financial, Inc. (a) | 2,595 | 262,095 | ||||||
Torchmark Corp. (a) | 652 | 58,328 | ||||||
The Travelers Cos., Inc. (a) | 1,680 | 251,194 | ||||||
Unum Group (a) | 1,296 | 43,481 | ||||||
Willis Towers Watson PLC (a) | 804 | 153,998 | ||||||
|
| |||||||
6,457,275 | ||||||||
|
| |||||||
Real Estate — 0.1% |
| |||||||
CBRE Group, Inc. Class A (a) (b) | 1,999 | 102,549 | ||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 3.0% |
| |||||||
Alexandria Real Estate Equities, Inc. (a) | 693 | 97,775 | ||||||
American Tower Corp. (a) | 2,780 | 568,371 | ||||||
Apartment Investment & Management Co. Class A (a) | 867 | 43,454 | ||||||
AvalonBay Communities, Inc. (a) | 890 | 180,830 | ||||||
Boston Properties, Inc. (a) | 988 | 127,452 | ||||||
Crown Castle International Corp. (a) | 2,612 | 340,474 | ||||||
Digital Realty Trust, Inc. (a) | 1,307 | 153,951 | ||||||
Duke Realty Corp. (a) | 2,147 | 67,867 | ||||||
Equinix, Inc. (a) | 532 | 268,282 | ||||||
Equity Residential (a) | 2,364 | 179,475 | ||||||
Essex Property Trust, Inc. (a) | 421 | 122,902 | ||||||
Extra Space Storage, Inc. (a) | 812 | 86,153 | ||||||
Federal Realty Investment Trust (a) | 475 | 61,161 | ||||||
HCP, Inc. (a) | 2,999 | 95,908 | ||||||
Host Hotels & Resorts, Inc. (a) | 4,694 | 85,525 | ||||||
Iron Mountain, Inc. (a) | 1,807 | 56,559 | ||||||
Kimco Realty Corp. (a) | 2,683 | 49,582 | ||||||
The Macerich Co. (a) | 765 | 25,620 | ||||||
Mid-America Apartment Communities, Inc. (a) | 689 | 81,137 |
Number of Shares | Value | |||||||
Prologis, Inc. (a) | 3,959 | $ | 317,116 | |||||
Public Storage (a) | 959 | 228,405 | ||||||
Realty Income Corp. (a) | 1,966 | 135,595 | ||||||
Regency Centers Corp. (a) | 1,074 | 71,679 | ||||||
SBA Communications Corp. (a) (b) | 720 | 161,885 | ||||||
Simon Property Group, Inc. (a) | 1,968 | 314,408 | ||||||
SL Green Realty Corp. (a) | 526 | 42,275 | ||||||
UDR, Inc. (a) | 1,692 | 75,954 | ||||||
Ventas, Inc. (a) | 2,258 | 154,334 | ||||||
Vornado Realty Trust (a) | 1,069 | 68,523 | ||||||
Welltower, Inc. (a) | 2,470 | 201,379 | ||||||
Weyerhaeuser Co. (a) | 4,730 | 124,588 | ||||||
|
| |||||||
4,588,619 | ||||||||
|
| |||||||
Savings & Loans — 0.0% |
| |||||||
People’s United Financial, Inc. (a) | 2,521 | 42,302 | ||||||
|
| |||||||
27,584,121 | ||||||||
|
| |||||||
Industrial — 9.2% |
| |||||||
Aerospace & Defense — 2.5% |
| |||||||
Arconic, Inc. (a) | 2,556 | 65,996 | ||||||
The Boeing Co. (a) | 3,291 | 1,197,957 | ||||||
General Dynamics Corp. (a) | 1,727 | 314,003 | ||||||
L3 Technologies, Inc. (a) | 500 | 122,585 | ||||||
L3Harris Technologies, Inc. | 754 | 142,604 | ||||||
Lockheed Martin Corp. (a) | 1,544 | 561,306 | ||||||
Northrop Grumman Corp. (a) | 1,066 | 344,435 | ||||||
Raytheon Co. (a) | 1,745 | 303,421 | ||||||
TransDigm Group, Inc. (a) (b) | 308 | 149,010 | ||||||
United Technologies Corp. (a) | 5,101 | 664,150 | ||||||
|
| |||||||
3,865,467 | ||||||||
|
| |||||||
Building Materials — 0.4% |
| |||||||
Fortune Brands Home & Security, Inc. (a) | 853 | 48,732 | ||||||
Johnson Controls International PLC (a) | 4,987 | 206,013 | ||||||
Martin Marietta Materials, Inc. (a) | 390 | 89,743 | ||||||
Masco Corp. (a) | 1,850 | 72,594 | ||||||
Vulcan Materials Co. (a) | 860 | 118,087 | ||||||
|
| |||||||
535,169 | ||||||||
|
| |||||||
Electrical Components & Equipment — 0.3% |
| |||||||
AMETEK, Inc. (a) | 1,407 | 127,812 | ||||||
Emerson Electric Co. (a) | 3,913 | 261,075 | ||||||
|
| |||||||
388,887 | ||||||||
|
| |||||||
Electronics — 1.3% |
| |||||||
Agilent Technologies, Inc. (a) | 2,025 | 151,207 | ||||||
Allegion PLC (a) | 601 | 66,440 | ||||||
Amphenol Corp. Class A (a) | 1,900 | 182,286 | ||||||
FLIR Systems, Inc. (a) | 858 | 46,418 | ||||||
Fortive Corp. (a) | 1,869 | 152,361 | ||||||
Garmin Ltd. (a) | 787 | 62,803 | ||||||
Honeywell International, Inc. (a) | 4,578 | 799,273 |
The accompanying notes are an integral part of the financial statements.
61
Table of Contents
MML Managed Volatility Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Keysight Technologies, Inc. (a) (b) | 1,165 | $ | 104,629 | |||||
Mettler-Toledo International, Inc. (a) (b) | 159 | 133,560 | ||||||
PerkinElmer, Inc. (a) | 680 | 65,511 | ||||||
TE Connectivity Ltd. (a) | 2,102 | 201,329 | ||||||
Waters Corp. (a) (b) | 430 | 92,553 | ||||||
|
| |||||||
2,058,370 | ||||||||
|
| |||||||
Engineering & Construction — 0.0% |
| |||||||
Jacobs Engineering Group, Inc. (a) | 718 | 60,592 | ||||||
|
| |||||||
Environmental Controls — 0.3% |
| |||||||
Pentair PLC (a) | 965 | 35,898 | ||||||
Republic Services, Inc. (a) | 1,379 | 119,476 | ||||||
Waste Management, Inc. (a) | 2,437 | 281,157 | ||||||
|
| |||||||
436,531 | ||||||||
|
| |||||||
Hand & Machine Tools — 0.1% |
| |||||||
Snap-on, Inc. (a) | 366 | 60,624 | ||||||
Stanley Black & Decker, Inc. (a) | 942 | 136,223 | ||||||
|
| |||||||
196,847 | ||||||||
|
| |||||||
Machinery – Construction & Mining — 0.3% |
| |||||||
Caterpillar, Inc. (a) | 3,593 | 489,690 | ||||||
|
| |||||||
Machinery – Diversified — 0.7% |
| |||||||
Cummins, Inc. (a) | 904 | 154,891 | ||||||
Deere & Co. (a) | 1,990 | 329,763 | ||||||
Dover Corp. (a) | 925 | 92,685 | ||||||
Flowserve Corp. (a) | 797 | 41,994 | ||||||
Rockwell Automation, Inc. (a) | 734 | 120,251 | ||||||
Roper Technologies, Inc. (a) | 663 | 242,830 | ||||||
Wabtec Corp. (a) | 1,000 | 71,760 | ||||||
Xylem, Inc. (a) | 1,129 | 94,430 | ||||||
|
| |||||||
1,148,604 | ||||||||
|
| |||||||
Miscellaneous – Manufacturing — 1.4% |
| |||||||
3M Co. (a) | 3,621 | 627,664 | ||||||
A.O. Smith Corp. (a) | 853 | 40,227 | ||||||
Eaton Corp. PLC (a) | 2,652 | 220,859 | ||||||
General Electric Co. (a) | 54,813 | 575,537 | ||||||
Illinois Tool Works, Inc. (a) | 1,876 | 282,920 | ||||||
Ingersoll-Rand PLC (a) | 1,509 | 191,145 | ||||||
Parker-Hannifin Corp. (a) | 799 | 135,838 | ||||||
Textron, Inc. (a) | 1,485 | 78,764 | ||||||
|
| |||||||
2,152,954 | ||||||||
|
| |||||||
Packaging & Containers — 0.3% |
| |||||||
Amcor PLC (a) (b) | 10,357 | 119,002 | ||||||
Ball Corp. (a) | 2,150 | 150,479 | ||||||
Packaging Corp. of America (a) | 598 | 57,001 | ||||||
Sealed Air Corp. (a) | 982 | 42,010 | ||||||
WestRock Co. (a) | 1,660 | 60,540 | ||||||
|
| |||||||
429,032 | ||||||||
|
| |||||||
Shipbuilding — 0.0% |
| |||||||
Huntington Ingalls Industries, Inc. (a) | 254 | 57,084 | ||||||
|
|
Number of Shares | Value | |||||||
Transportation — 1.6% |
| |||||||
C.H. Robinson Worldwide, Inc. (a) | 838 | $ | 70,685 | |||||
CSX Corp. (a) | 4,834 | 374,007 | ||||||
Expeditors International of Washington, Inc. (a) | 1,076 | 81,625 | ||||||
FedEx Corp. (a) | 1,496 | 245,628 | ||||||
J.B. Hunt Transport Services, Inc. (a) | 533 | 48,722 | ||||||
Kansas City Southern (a) | 623 | 75,894 | ||||||
Norfolk Southern Corp. (a) | 1,671 | 333,080 | ||||||
Union Pacific Corp. (a) | 4,456 | 753,554 | ||||||
United Parcel Service, Inc. Class B (a) | 4,429 | 457,383 | ||||||
|
| |||||||
2,440,578 | ||||||||
|
| |||||||
14,259,805 | ||||||||
|
| |||||||
Technology — 16.6% |
| |||||||
Computers — 5.1% |
| |||||||
Accenture PLC Class A (a) | 4,014 | 741,667 | ||||||
Apple, Inc. (a) | 27,500 | 5,442,800 | ||||||
Cognizant Technology Solutions Corp. Class A (a) | 3,562 | 225,795 | ||||||
DXC Technology Co. (a) | 1,689 | 93,148 | ||||||
Fortinet, Inc. (a) (b) | 899 | 69,070 | ||||||
Hewlett Packard Enterprise Co. (a) | 8,340 | 124,683 | ||||||
HP, Inc. (a) | 9,408 | 195,592 | ||||||
International Business Machines Corp. (a) | 5,575 | 768,793 | ||||||
NetApp, Inc. (a) | 1,517 | 93,599 | ||||||
Seagate Technology PLC (a) | 1,625 | 76,570 | ||||||
Western Digital Corp. (a) | 1,942 | 92,342 | ||||||
|
| |||||||
7,924,059 | ||||||||
|
| |||||||
Office & Business Equipment — 0.0% |
| |||||||
Xerox Corp. (a) | 1,266 | 44,829 | ||||||
|
| |||||||
Semiconductors — 3.8% |
| |||||||
Advanced Micro Devices, Inc. (a) (b) | 5,622 | 170,740 | ||||||
Analog Devices, Inc. (a) | 2,301 | 259,714 | ||||||
Applied Materials, Inc. (a) | 5,842 | 262,364 | ||||||
Broadcom, Inc. (a) | 2,487 | 715,908 | ||||||
Intel Corp. (a) | 28,157 | 1,347,876 | ||||||
IPG Photonics Corp. (a) (b) | 208 | 32,084 | ||||||
KLA-Tencor Corp. (a) | 1,033 | 122,101 | ||||||
Lam Research Corp. (a) | 932 | 175,067 | ||||||
Maxim Integrated Products, Inc. (a) | 1,743 | 104,266 | ||||||
Microchip Technology, Inc. (a) | 1,532 | 132,824 | ||||||
Micron Technology, Inc. (a) (b) | 6,920 | 267,043 | ||||||
NVIDIA Corp. (a) | 3,823 | 627,851 | ||||||
Qorvo, Inc. (a) (b) | 778 | 51,823 | ||||||
QUALCOMM, Inc. (a) | 7,639 | 581,099 | ||||||
Skyworks Solutions, Inc. (a) | 1,104 | 85,306 | ||||||
Texas Instruments, Inc. (a) | 5,886 | 675,477 | ||||||
Xilinx, Inc. (a) | 1,615 | 190,441 | ||||||
|
| |||||||
5,801,984 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
62
Table of Contents
MML Managed Volatility Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Software — 7.7% |
| |||||||
Activision Blizzard, Inc. (a) | 4,884 | $ | 230,525 | |||||
Adobe, Inc. (a) (b) | 3,061 | 901,924 | ||||||
Akamai Technologies, Inc. (a) (b) | 1,011 | 81,022 | ||||||
ANSYS, Inc. (a) (b) | 515 | 105,482 | ||||||
Autodesk, Inc. (a) (b) | 1,398 | 227,734 | ||||||
Broadridge Financial Solutions, Inc. (a) | 730 | 93,206 | ||||||
Cadence Design Systems, Inc. (a) (b) | 1,787 | 126,537 | ||||||
Cerner Corp. (a) | 2,093 | 153,417 | ||||||
Citrix Systems, Inc. (a) | 789 | 77,432 | ||||||
Electronic Arts, Inc. (a) (b) | 1,907 | 193,103 | ||||||
Fidelity National Information Services, Inc. (a) | 2,023 | 248,182 | ||||||
Fiserv, Inc. (a) (b) | 2,449 | 223,251 | ||||||
Intuit, Inc. (a) | 1,623 | 424,139 | ||||||
Jack Henry & Associates, Inc. (a) | 487 | 65,219 | ||||||
Microsoft Corp. (a) | 48,203 | 6,457,274 | ||||||
MSCI, Inc. (a) | 538 | 128,469 | ||||||
Oracle Corp. (a) | 15,243 | 868,394 | ||||||
Paychex, Inc. (a) | 2,027 | 166,802 | ||||||
Red Hat, Inc. (a) (b) | 1,128 | 211,793 | ||||||
salesforce.com, Inc. (a) (b) | 4,888 | 741,656 | ||||||
Synopsys, Inc. (a) (b) | 918 | 118,137 | ||||||
Take-Two Interactive Software, Inc. (a) (b) | 711 | 80,720 | ||||||
|
| |||||||
11,924,418 | ||||||||
|
| |||||||
25,695,290 | ||||||||
|
| |||||||
Utilities — 3.3% |
| |||||||
Electric — 3.1% |
| |||||||
AES Corp. (a) | 4,097 | 68,666 | ||||||
Alliant Energy Corp. (a) | 1,523 | 74,749 | ||||||
Ameren Corp. (a) | 1,570 | 117,923 | ||||||
American Electric Power Co., Inc. (a) | 3,078 | 270,895 | ||||||
CenterPoint Energy, Inc. (a) | 3,173 | 90,843 | ||||||
CMS Energy Corp. (a) | 1,806 | 104,586 | ||||||
Consolidated Edison, Inc. (a) | 2,044 | 179,218 | ||||||
Dominion Energy, Inc. (a) | 5,030 | 388,920 | ||||||
DTE Energy Co. (a) | 1,163 | 148,724 | ||||||
Duke Energy Corp. (a) | 4,635 | 408,992 | ||||||
Edison International (a) | 2,066 | 139,269 | ||||||
Entergy Corp. (a) | 1,209 | 124,442 | ||||||
Evergy, Inc. (a) | 1,493 | 89,804 | ||||||
Eversource Energy (a) | 2,028 | 153,641 | ||||||
Exelon Corp. (a) | 6,086 | 291,763 | ||||||
FirstEnergy Corp. (a) | 3,133 | 134,124 | ||||||
NextEra Energy, Inc. (a) | 3,014 | 617,448 | ||||||
NRG Energy, Inc. (a) | 1,781 | 62,549 | ||||||
Pinnacle West Capital Corp. (a) | 716 | 67,368 | ||||||
PPL Corp. (a) | 4,641 | 143,917 | ||||||
Public Service Enterprise Group, Inc. (a) | 3,154 | 185,518 |
Number of Shares | Value | |||||||
Sempra Energy (a) | 1,748 | $ | 240,245 | |||||
The Southern Co. (a) | 6,537 | 361,365 | ||||||
WEC Energy Group, Inc. (a) | 1,930 | 160,904 | ||||||
Xcel Energy, Inc. (a) | 3,191 | 189,833 | ||||||
|
| |||||||
4,815,706 | ||||||||
|
| |||||||
Gas — 0.1% |
| |||||||
Atmos Energy Corp. (a) | 722 | 76,214 | ||||||
NiSource, Inc. (a) | 2,296 | 66,125 | ||||||
|
| |||||||
142,339 | ||||||||
|
| |||||||
Water — 0.1% |
| |||||||
American Water Works Co., Inc. (a) | 1,143 | 132,588 | ||||||
|
| |||||||
5,090,633 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $101,850,714) | 153,673,009 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $101,850,714) | 153,673,009 | |||||||
|
| |||||||
Principal Amount | ||||||||
BONDS & NOTES — 0.0% |
| |||||||
CORPORATE DEBT — 0.0% |
| |||||||
Forest Products & Paper — 0.0% |
| |||||||
Sino Forest Corp. 5.000% 8/01/49 (a) (d) (e) | $ | 359,000 | — | |||||
|
| |||||||
TOTAL CORPORATE DEBT (Cost $0) | — | |||||||
|
| |||||||
TOTAL BONDS & NOTES (Cost $0) | — | |||||||
|
| |||||||
Number of Shares | ||||||||
MUTUAL FUNDS — 0.0% |
| |||||||
Diversified Financial Services — 0.0% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (f) | 914 | 914 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $914) | 914 | |||||||
|
| |||||||
TOTAL PURCHASED OPTIONS (#) — 0.4% (Cost $1,373,065) | 626,080 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $103,224,693) | 154,300,003 | |||||||
|
|
The accompanying notes are an integral part of the financial statements.
63
Table of Contents
MML Managed Volatility Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
SHORT-TERM INVESTMENTS — 2.9% |
| |||||||
Repurchase Agreement — 2.9% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (g) | $ | 4,489,213 | $ | 4,489,213 | ||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $4,489,213) | 4,489,213 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 102.6% (Cost $107,713,906) (h) | 158,789,216 | |||||||
Other Assets/(Liabilities) — (2.6)% | (4,053,788 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 154,735,428 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | All or a portion of these securities are pledged/held as collateral for written options.(Note 2). |
(b) | Non-income producing security. |
(c) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $890 or 0.00% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers.(Note 2). |
(d) | Investment was valued using significant unobservable inputs. |
(e) | This security is fair valued in good faith in accordance with procedures approved by the Board of Trustees. At June 30, 2019, these securities amounted to a value of $0 or 0.00% of net assets. |
(f) | Represents investment of security lending collateral.(Note 2). |
(g) | Maturity value of $4,489,681. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $4,583,354. |
(h) | See Note 6 for aggregate cost for federal tax purposes. |
(#) Purchased Options contracts :
Exchange-Traded Options Purchased
Description | Expiration Date | Exercise Price | No. of Contracts | Notional Amount | Value | Premiums Paid (Received) | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||||||
Put | ||||||||||||||||||||||||||||||||
S&P 500 Index | 8/16/19 | 2,575.00 | 65 | USD | 16,737,500 | $ | 38,350 | $ | 174,363 | $ | (136,013 | ) | ||||||||||||||||||||
S&P 500 Index | 8/16/19 | 2,625.00 | 65 | USD | 17,062,500 | 53,300 | 84,797 | (31,497 | ) | |||||||||||||||||||||||
S&P 500 Index | 8/16/19 | 2,650.00 | 65 | USD | 17,225,000 | 62,075 | 181,968 | (119,893 | ) | |||||||||||||||||||||||
S&P 500 Index | 8/16/19 | 2,675.00 | 65 | USD | 17,387,500 | 65,325 | 159,412 | (94,087 | ) | |||||||||||||||||||||||
S&P 500 Index | 9/20/19 | 2,575.00 | 65 | USD | 16,737,500 | 81,900 | 215,313 | (133,413 | ) | |||||||||||||||||||||||
S&P 500 Index | 9/20/19 | 2,600.00 | 65 | USD | 16,900,000 | 92,950 | 239,363 | (146,413 | ) | |||||||||||||||||||||||
S&P 500 Index | 9/20/19 | 2,625.00 | 65 | USD | 17,062,500 | 112,775 | 172,412 | (59,637 | ) | |||||||||||||||||||||||
S&P 500 Index | 9/20/19 | 2,650.00 | 65 | USD | 17,225,000 | 119,405 | 145,437 | (26,032 | ) | |||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | 626,080 | $ | 1,373,065 | $ | (746,985 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
The accompanying notes are an integral part of the financial statements.
64
Table of Contents
MML Managed Volatility Fund – Portfolio of Investments(Continued)
Exchange-Traded Options Written
Description | Expiration Date | Exercise Price | No. of Contracts | Notional Amount | Value | Premiums Paid (Received) | Unrealized Appreciation/ (Depreciation) | |||||||||||||||||||||||||
Call | ||||||||||||||||||||||||||||||||
S&P 500 Index | 7/19/19 | 2,900.00 | 57 | USD | 16,530,000 | $ | (344,907 | ) | $ | (455,858 | ) | $ | 110,951 | |||||||||||||||||||
S&P 500 Index | 7/19/19 | 2,925.00 | 115 | USD | 33,637,500 | (602,600 | ) | (488,512 | ) | (114,088 | ) | |||||||||||||||||||||
S&P 500 Index | 7/19/19 | 2,950.00 | 58 | USD | 17,110,000 | (206,480 | ) | (359,455 | ) | 152,975 | ||||||||||||||||||||||
S&P 500 Index | 8/16/19 | 2,850.00 | 57 | USD | 16,245,000 | (679,440 | ) | (564,157 | ) | (115,283 | ) | |||||||||||||||||||||
S&P 500 Index | 8/16/19 | 2,900.00 | 58 | USD | 16,820,000 | (469,510 | ) | (370,475 | ) | (99,035 | ) | |||||||||||||||||||||
S&P 500 Index | 8/16/19 | 2,925.00 | 58 | USD | 16,965,000 | (408,030 | ) | (446,455 | ) | 38,425 | ||||||||||||||||||||||
S&P 500 Index | 8/16/19 | 2,975.00 | 58 | USD | 17,255,000 | (216,920 | ) | (281,962 | ) | 65,042 | ||||||||||||||||||||||
S&P 500 Index | 9/20/19 | 2,925.00 | 59 | USD | 17,257,500 | (546,281 | ) | (583,953 | ) | 37,672 | ||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | (3,474,168 | ) | $ | (3,550,827 | ) | $ | 76,659 | |||||||||||||||||||||||||
|
|
|
|
|
|
Currency Legend
USD | U.S. Dollar |
The accompanying notes are an integral part of the financial statements.
65
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 94.5% |
| |||||||
COMMON STOCK — 93.9% |
| |||||||
Basic Materials — 2.7% |
| |||||||
Chemicals — 1.9% |
| |||||||
Air Products & Chemicals, Inc. | 19,000 | $ | 4,301,030 | |||||
RPM International, Inc. | 64,000 | 3,911,040 | ||||||
Valvoline, Inc. | 85,000 | 1,660,050 | ||||||
|
| |||||||
9,872,120 | ||||||||
|
| |||||||
Mining — 0.8% |
| |||||||
Franco-Nevada Corp. | 30,000 | 2,546,400 | ||||||
Kirkland Lake Gold Ltd. | 36,000 | 1,545,120 | ||||||
|
| |||||||
4,091,520 | ||||||||
|
| |||||||
13,963,640 | ||||||||
|
| |||||||
Communications — 3.4% |
| |||||||
Internet — 2.4% |
| |||||||
Chewy, Inc. Class A (a) | 17,334 | 606,690 | ||||||
IAC/InterActiveCorp (a) | 35,000 | 7,613,550 | ||||||
Shopify, Inc. Class A (a) | 3,000 | 900,450 | ||||||
Symantec Corp. | 143,000 | 3,111,680 | ||||||
|
| |||||||
12,232,370 | ||||||||
|
| |||||||
Telecommunications — 1.0% |
| |||||||
Corning, Inc. | 152,000 | 5,050,960 | ||||||
|
| |||||||
17,283,330 | ||||||||
|
| |||||||
Consumer, Cyclical — 15.3% |
| |||||||
Airlines — 0.8% |
| |||||||
Alaska Air Group, Inc. | 23,000 | 1,469,930 | ||||||
United Continental Holdings, Inc. (a) | 30,000 | 2,626,500 | ||||||
|
| |||||||
4,096,430 | ||||||||
|
| |||||||
Apparel — 1.4% |
| |||||||
Levi Strauss & Co. Class A (a) | 35,011 | 731,030 | ||||||
Tapestry, Inc. | 152,000 | 4,822,960 | ||||||
VF Corp. | 18,000 | 1,572,300 | ||||||
|
| |||||||
7,126,290 | ||||||||
|
| |||||||
Auto Parts & Equipment — 1.2% |
| |||||||
Aptiv PLC | 59,000 | 4,768,970 | ||||||
Visteon Corp. (a) | 21,000 | 1,230,180 | ||||||
|
| |||||||
5,999,150 | ||||||||
|
| |||||||
Distribution & Wholesale — 0.3% |
| |||||||
IAA, Inc. (a) | 21,326 | 827,022 | ||||||
KAR Auction Services, Inc. | 34,650 | 866,250 | ||||||
KAR Auction Services, Inc. WI (a) (b) (g) | 5,000 | 118,500 | ||||||
|
| |||||||
1,811,772 | ||||||||
|
| |||||||
Entertainment — 0.8% |
| |||||||
Vail Resorts, Inc. | 19,000 | 4,240,420 | ||||||
|
|
Number of Shares | Value | |||||||
Food Services — 0.3% |
| |||||||
Aramark | 41,000 | $ | 1,478,460 | |||||
|
| |||||||
Leisure Time — 1.4% |
| |||||||
Norwegian Cruise Line Holdings Ltd. (a) | 129,000 | 6,918,270 | ||||||
|
| |||||||
Lodging — 2.5% |
| |||||||
Hilton Worldwide Holdings, Inc. | 38,000 | 3,714,120 | ||||||
Marriott International, Inc. Class A | 23,000 | 3,226,670 | ||||||
MGM Resorts International | 204,000 | 5,828,280 | ||||||
|
| |||||||
12,769,070 | ||||||||
|
| |||||||
Retail — 6.6% |
| |||||||
Burlington Stores, Inc. (a) | 30,000 | 5,104,500 | ||||||
CarMax, Inc. (a) | 23,000 | 1,997,090 | ||||||
Casey’s General Stores, Inc. | 29,000 | 4,523,710 | ||||||
Darden Restaurants, Inc. | 13,000 | 1,582,490 | ||||||
Dollar General Corp. | 48,000 | 6,487,680 | ||||||
Dollar Tree, Inc. (a) | 42,000 | 4,510,380 | ||||||
Dunkin’ Brands Group, Inc. | 38,000 | 3,027,080 | ||||||
The Michaels Cos., Inc. (a) | 37,000 | 321,900 | ||||||
O’Reilly Automotive, Inc. (a) | 7,000 | 2,585,240 | ||||||
Tiffany & Co. | 11,000 | 1,030,040 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. (a) | 7,000 | 2,428,230 | ||||||
|
| |||||||
33,598,340 | ||||||||
|
| |||||||
78,038,202 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 28.7% |
| |||||||
Biotechnology — 2.1% |
| |||||||
Alnylam Pharmaceuticals, Inc. (a) | 16,000 | 1,160,960 | ||||||
Argenx SE ADR (a) | 8,000 | 1,132,640 | ||||||
Exact Sciences Corp. (a) | 21,000 | 2,478,840 | ||||||
Incyte Corp. (a) | 28,000 | 2,378,880 | ||||||
Sage Therapeutics, Inc. (a) | 7,000 | 1,281,630 | ||||||
Seattle Genetics, Inc. (a) | 30,000 | 2,076,300 | ||||||
|
| |||||||
10,509,250 | ||||||||
|
| |||||||
Commercial Services — 9.4% |
| |||||||
CoreLogic, Inc. (a) | 93,000 | 3,890,190 | ||||||
CoStar Group, Inc. (a) | 7,000 | 3,878,420 | ||||||
Equifax, Inc. | 12,000 | 1,622,880 | ||||||
FleetCor Technologies, Inc. (a) | 20,000 | 5,617,000 | ||||||
Gartner, Inc. (a) | 15,000 | 2,414,100 | ||||||
Global Payments, Inc. | 19,000 | 3,042,470 | ||||||
IHS Markit Ltd. (a) | 57,000 | 3,632,040 | ||||||
MarketAxess Holdings, Inc. | 6,000 | 1,928,520 | ||||||
ServiceMaster Global Holdings, Inc. (a) | 59,000 | 3,073,310 | ||||||
Total System Services, Inc. | 30,000 | 3,848,100 | ||||||
TransUnion | 64,000 | 4,704,640 | ||||||
Verisk Analytics, Inc. | 38,000 | 5,565,480 |
The accompanying notes are an integral part of the financial statements.
66
Table of Contents
MML Mid Cap Growth Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
WeWork Companies, Inc., Class A | 4,132 | $ | 223,128 | |||||
Worldpay, Inc. Class A (a) | 38,000 | 4,656,900 | ||||||
|
| |||||||
48,097,178 | ||||||||
|
| |||||||
Foods — 1.6% |
| |||||||
Conagra Brands, Inc. | 90,000 | 2,386,800 | ||||||
The Kroger Co. | 60,000 | 1,302,600 | ||||||
Sprouts Farmers Market, Inc. (a) | 91,000 | 1,718,990 | ||||||
TreeHouse Foods, Inc. (a) | 53,000 | 2,867,300 | ||||||
|
| |||||||
8,275,690 | ||||||||
|
| |||||||
Health Care – Products — 10.3% |
| |||||||
Alcon, Inc. (a) | 36,000 | 2,233,800 | ||||||
Avantor, Inc. (a) | 177,000 | 3,378,930 | ||||||
Bruker Corp. | 143,000 | 7,142,850 | ||||||
The Cooper Cos., Inc. | 33,000 | 11,117,370 | ||||||
Hologic, Inc. (a) | 194,000 | 9,315,880 | ||||||
ICU Medical, Inc. (a) | 11,000 | 2,771,010 | ||||||
IDEXX Laboratories, Inc. (a) | 6,000 | 1,651,980 | ||||||
Teleflex, Inc. | 37,000 | 12,252,550 | ||||||
West Pharmaceutical Services, Inc. | 23,000 | 2,878,450 | ||||||
|
| |||||||
52,742,820 | ||||||||
|
| |||||||
Health Care – Services — 1.9% |
| |||||||
Acadia Healthcare Co., Inc. (a) (e) | 72,000 | 2,516,400 | ||||||
Catalent, Inc. (a) | 121,000 | 6,559,410 | ||||||
MEDNAX, Inc. (a) | 30,000 | 756,900 | ||||||
|
| |||||||
9,832,710 | ||||||||
|
| |||||||
Household Products & Wares — 0.6% |
| |||||||
Avery Dennison Corp. | 27,000 | 3,123,360 | ||||||
|
| |||||||
Pharmaceuticals — 2.8% |
| |||||||
Alkermes PLC (a) | 96,000 | 2,163,840 | ||||||
Amneal Pharmaceuticals, Inc. (a) | 111,000 | 795,870 | ||||||
Ascendis Pharma A/S ADR (a) | 4,500 | 518,175 | ||||||
Elanco Animal Health, Inc. (a) | 121,000 | 4,089,800 | ||||||
Perrigo Co. PLC | 64,000 | 3,047,680 | ||||||
PRA Health Sciences, Inc. (a) | 27,781 | 2,754,486 | ||||||
Sarepta Therapeutics, Inc. (a) | 4,000 | 607,800 | ||||||
|
| |||||||
13,977,651 | ||||||||
|
| |||||||
146,558,659 | ||||||||
|
| |||||||
Energy — 3.0% |
| |||||||
Oil & Gas — 3.0% |
| |||||||
Cabot Oil & Gas Corp. | 91,000 | 2,089,360 | ||||||
Centennial Resource Development, Inc. Class A (a) | 63,219 | 479,832 | ||||||
Concho Resources, Inc. | 61,000 | 6,293,980 | ||||||
Continental Resources, Inc. (a) | 45,000 | 1,894,050 | ||||||
Pioneer Natural Resources Co. | 23,000 | 3,538,780 | ||||||
Venture Global LNG, Inc., Series B | 21 | 109,200 |
Number of Shares | Value | |||||||
Venture Global LNG, Inc., Series C (Acquired10/16/17-3/08/18, | 144 | $ | 748,800 | |||||
|
| |||||||
15,154,002 | ||||||||
|
| |||||||
15,154,002 | ||||||||
|
| |||||||
Financial — 7.4% |
| |||||||
Banks — 0.7% |
| |||||||
Fifth Third Bancorp | 73,000 | 2,036,700 | ||||||
Webster Financial Corp. | 26,000 | 1,242,020 | ||||||
|
| |||||||
3,278,720 | ||||||||
|
| |||||||
Diversified Financial Services — 2.4% |
| |||||||
Cboe Global Markets, Inc. | 38,000 | 3,937,940 | ||||||
SLM Corp. | 102,000 | 991,440 | ||||||
TD Ameritrade Holding Corp. | 125,000 | 6,240,000 | ||||||
Tradeweb Markets, Inc. Class A | 27,452 | 1,202,672 | ||||||
|
| |||||||
12,372,052 | ||||||||
|
| |||||||
Insurance — 3.8% |
| |||||||
Assurant, Inc. | 30,000 | 3,191,400 | ||||||
Axis Capital Holdings Ltd. | 30,000 | 1,789,500 | ||||||
Fidelity National Financial, Inc. | 137,000 | 5,521,100 | ||||||
The Progressive Corp. | 19,000 | 1,518,670 | ||||||
Willis Towers Watson PLC | 38,000 | 7,278,520 | ||||||
|
| |||||||
19,299,190 | ||||||||
|
| |||||||
Private Equity — 0.5% |
| |||||||
KKR & Co., Inc. Class A | 107,000 | 2,703,890 | ||||||
|
| |||||||
37,653,852 | ||||||||
|
| |||||||
Industrial — 19.7% |
| |||||||
Aerospace & Defense — 2.1% |
| |||||||
L3 Technologies, Inc. | 8,000 | 1,961,360 | ||||||
L3Harris Technologies, Inc. (a) | 45,000 | 8,510,850 | ||||||
|
| |||||||
10,472,210 | ||||||||
|
| |||||||
Building Materials — 0.5% |
| |||||||
Martin Marietta Materials, Inc. | 11,000 | 2,531,210 | ||||||
|
| |||||||
Electronics — 5.8% |
| |||||||
Agilent Technologies, Inc. | 106,000 | 7,915,020 | ||||||
Allegion PLC | 12,000 | 1,326,600 | ||||||
Fortive Corp. | 65,000 | 5,298,800 | ||||||
Keysight Technologies, Inc. (a) | 83,000 | 7,454,230 | ||||||
National Instruments Corp. | 35,000 | 1,469,650 | ||||||
Sensata Technologies Holding PLC (a) | 129,000 | 6,321,000 | ||||||
|
| |||||||
29,785,300 | ||||||||
|
| |||||||
Engineering & Construction — 0.0% |
| |||||||
frontdoor, Inc. (a) | 2,000 | 87,100 | ||||||
|
| |||||||
Environmental Controls — 0.5% |
| |||||||
Waste Connections, Inc. | 28,000 | 2,676,240 | ||||||
|
| |||||||
Hand & Machine Tools — 0.6% |
| |||||||
Colfax Corp. (a) | 118,000 | 3,307,540 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
67
Table of Contents
MML Mid Cap Growth Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Machinery – Construction & Mining — 0.5% |
| |||||||
BWX Technologies, Inc. (e) | 48,000 | $ | 2,500,800 | |||||
|
| |||||||
Machinery – Diversified — 4.7% |
| |||||||
Cognex Corp. | 9,000 | 431,820 | ||||||
Gardner Denver Holdings, Inc. (a) | 151,000 | 5,224,600 | ||||||
IDEX Corp. | 38,000 | 6,541,320 | ||||||
Roper Technologies, Inc. | 19,000 | 6,958,940 | ||||||
Xylem, Inc. | 57,000 | 4,767,480 | ||||||
|
| |||||||
23,924,160 | ||||||||
|
| |||||||
Miscellaneous – Manufacturing — 1.6% |
| |||||||
Textron, Inc. | 156,000 | 8,274,240 | ||||||
|
| |||||||
Packaging & Containers — 2.6% |
| |||||||
Ball Corp. | 140,000 | 9,798,600 | ||||||
Sealed Air Corp. | 76,000 | 3,251,280 | ||||||
|
| |||||||
13,049,880 | ||||||||
|
| |||||||
Transportation — 0.8% |
| |||||||
J.B. Hunt Transport Services, Inc. | 42,000 | 3,839,220 | ||||||
Kansas City Southern | 3,778 | 460,236 | ||||||
|
| |||||||
4,299,456 | ||||||||
|
| |||||||
100,908,136 | ||||||||
|
| |||||||
Technology — 11.9% |
| |||||||
Computers — 0.1% |
| |||||||
Crowdstrike Holdings, Inc. Class A (a) | 5,344 | 364,942 | ||||||
|
| |||||||
Semiconductors — 4.8% |
| |||||||
Entegris, Inc. | 42,000 | 1,567,440 | ||||||
Marvell Technology Group Ltd. | 208,000 | 4,964,960 | ||||||
Maxim Integrated Products, Inc. | 57,000 | 3,409,740 | ||||||
Microchip Technology, Inc. | 91,000 | 7,889,700 | ||||||
Skyworks Solutions, Inc. | 38,000 | 2,936,260 | ||||||
Xilinx, Inc. | 34,000 | 4,009,280 | ||||||
|
| |||||||
24,777,380 | ||||||||
|
| |||||||
Software — 7.0% |
| |||||||
Atlassian Corp. PLC Class A (a) | 29,000 | 3,794,360 | ||||||
Black Knight, Inc. (a) | 45,000 | 2,706,750 | ||||||
Ceridian HCM Holding, Inc. (a) | 41,149 | 2,065,680 | ||||||
DocuSign, Inc. (a) | 49,000 | 2,435,790 | ||||||
Fidelity National Information Services, Inc. | 15,000 | 1,840,200 | ||||||
Fiserv, Inc. (a) | 61,000 | 5,560,760 | ||||||
Slack Technologies, Inc. Class A (a) | 26,951 | 1,010,662 | ||||||
Splunk, Inc. (a) | 23,000 | 2,892,250 | ||||||
SS&C Technologies Holdings, Inc | 34,000 | 1,958,740 | ||||||
Tableau Software, Inc. Class A (a) | 18,916 | 3,140,434 | ||||||
Veeva Systems, Inc. Class A (a) | 5,000 | 810,550 | ||||||
Workday, Inc. Class A (a) | 35,000 | 7,195,300 | ||||||
Zoom Video Communications, Inc. Class A (a) (e) | 1,243 | 110,366 | ||||||
|
| |||||||
35,521,842 | ||||||||
|
| |||||||
60,664,164 | ||||||||
|
|
Number of Shares | Value | |||||||
Utilities — 1.8% |
| |||||||
Electric — 1.5% |
| |||||||
Eversource Energy | 29,440 | $ | 2,230,375 | |||||
Sempra Energy | 37,000 | 5,085,280 | ||||||
|
| |||||||
7,315,655 | ||||||||
|
| |||||||
Gas — 0.3% |
| |||||||
Atmos Energy Corp. | 16,000 | 1,688,960 | ||||||
|
| |||||||
9,004,615 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $338,762,314) | 479,228,600 | |||||||
|
| |||||||
PREFERRED STOCK — 0.6% |
| |||||||
Communications — 0.2% |
| |||||||
Internet — 0.2% |
| |||||||
Roofoods Ltd., Series F | 1,915 | 744,265 | ||||||
Roofoods Ltd., Series G | 50 | 20,895 | ||||||
|
| |||||||
765,160 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 0.4% |
| |||||||
Commercial Services — 0.4% |
| |||||||
WeWork Companies, Inc., Series D 1 | 22,197 | 1,198,638 | ||||||
WeWork Companies, Inc., Series D 2 | 17,440 | 941,760 | ||||||
|
| |||||||
2,140,398 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCK (Cost $1,357,985) | 2,905,558 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $340,120,299) | 482,134,158 | |||||||
|
| |||||||
MUTUAL FUNDS — 0.8% |
| |||||||
Diversified Financial Services — 0.8% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (f) | 4,314,246 | 4,314,246 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $4,314,246) | 4,314,246 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $344,434,545) | 486,448,404 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS — 5.8% |
| |||||||
Mutual Fund — 3.9% |
| |||||||
T. Rowe Price Treasury Reserve Fund | 20,130,527 | 20,130,527 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
68
Table of Contents
MML Mid Cap Growth Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
Repurchase Agreement — 1.9% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (h) | $ | 9,460,664 | $ | 9,460,664 | ||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $29,591,191) | 29,591,191 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 101.1% (Cost $374,025,736) (i) | 516,039,595 | |||||||
Other Assets/(Liabilities) — (1.1)% | (5,417,663 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 510,621,932 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | This security is fair valued in good faith in accordance with procedures approved by the Board of Trustees. At June 30, 2019, these securities amounted to a value of $4,105,186 or 0.80% of net assets. |
(c) | Investment was valued using significant unobservable inputs. |
(d) | Restricted security. Certain securities are restricted as to resale. At June 30, 2019, these securities amounted to a value of $3,986,686 or 0.78% of net assets. The Fund generally bears the costs, if any, associated with the disposition of restricted securities. |
(e) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $4,219,383 or 0.83% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers.(Note 2). |
(f) | Represents investment of security lending collateral.(Note 2). |
(g) | A portion of this security is purchased on a when-issued, delayed-delivery or forward commitment basis.(Note 2). |
(h) | Maturity value of $9,461,649. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $9,650,505. |
(i) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
69
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 96.0% |
| |||||||
COMMON STOCK — 96.0% |
| |||||||
Consumer, Cyclical — 12.4% |
| |||||||
Airlines — 1.5% |
| |||||||
Southwest Airlines Co. | 127,457 | $ | 6,472,266 | |||||
|
| |||||||
Auto Manufacturers — 1.7% |
| |||||||
Honda Motor Co. Ltd. Sponsored ADR | 165,277 | 4,270,758 | ||||||
PACCAR, Inc. | 41,550 | 2,977,473 | ||||||
|
| |||||||
7,248,231 | ||||||||
|
| |||||||
Auto Parts & Equipment — 1.3% |
| |||||||
Aptiv PLC | 13,145 | 1,062,511 | ||||||
BorgWarner, Inc. | 100,483 | 4,218,276 | ||||||
|
| |||||||
5,280,787 | ||||||||
|
| |||||||
Food Services — 0.9% |
| |||||||
Sodexo SA | 34,158 | 3,993,149 | ||||||
|
| |||||||
Home Builders — 1.8% |
| |||||||
PulteGroup, Inc. | 147,031 | 4,649,120 | ||||||
Thor Industries, Inc. | 50,586 | 2,956,752 | ||||||
|
| |||||||
7,605,872 | ||||||||
|
| |||||||
Leisure Time — 1.0% |
| |||||||
Carnival Corp. | 85,802 | 3,994,083 | ||||||
|
| |||||||
Retail — 4.2% |
| |||||||
Advance Auto Parts, Inc. | 34,601 | 5,333,398 | ||||||
Genuine Parts Co. | 32,344 | 3,350,191 | ||||||
MSC Industrial Direct Co., Inc. Class A | 85,076 | 6,317,744 | ||||||
Target Corp. | 33,111 | 2,867,744 | ||||||
|
| |||||||
17,869,077 | ||||||||
|
| |||||||
52,463,465 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 17.3% |
| |||||||
Beverages — 0.5% |
| |||||||
Molson Coors Brewing Co. Class B | 34,757 | 1,946,392 | ||||||
|
| |||||||
Foods — 6.0% |
| |||||||
Conagra Brands, Inc. | 144,433 | 3,830,363 | ||||||
The J.M. Smucker Co. | 20,109 | 2,316,356 | ||||||
Kellogg Co. | 39,758 | 2,129,836 | ||||||
Koninklijke Ahold Delhaize NV | 188,281 | 4,234,561 | ||||||
Mondelez International, Inc. Class A | 51,773 | 2,790,565 | ||||||
Orkla ASA | 678,147 | 6,023,568 | ||||||
Sysco Corp. | 57,408 | 4,059,894 | ||||||
|
| |||||||
25,385,143 | ||||||||
|
| |||||||
Health Care – Products — 5.1% |
| |||||||
Henry Schein, Inc. (a) | 44,126 | 3,084,408 | ||||||
Hologic, Inc. (a) | 63,212 | 3,035,440 | ||||||
Siemens Healthineers AG (b) | 75,015 | 3,165,467 | ||||||
Zimmer Biomet Holdings, Inc. | 105,196 | 12,385,777 | ||||||
|
| |||||||
21,671,092 | ||||||||
|
|
Number of Shares | Value | |||||||
Health Care – Services — 2.3% |
| |||||||
Quest Diagnostics, Inc. | 57,720 | $ | 5,876,473 | |||||
Universal Health Services, Inc. Class B | 30,564 | 3,985,240 | ||||||
|
| |||||||
9,861,713 | ||||||||
|
| |||||||
Household Products & Wares — 1.0% |
| |||||||
Kimberly-Clark Corp. | 30,997 | 4,131,280 | ||||||
|
| |||||||
Pharmaceuticals — 2.4% |
| |||||||
Cardinal Health, Inc. | 118,387 | 5,576,028 | ||||||
McKesson Corp. | 33,198 | 4,461,479 | ||||||
|
| |||||||
10,037,507 | ||||||||
|
| |||||||
73,033,127 | ||||||||
|
| |||||||
Energy — 4.8% |
| |||||||
Oil & Gas — 3.0% |
| |||||||
Cimarex Energy Co. | 26,235 | 1,556,522 | ||||||
Devon Energy Corp. | 99,186 | 2,828,785 | ||||||
EQT Corp. | 152,654 | 2,413,460 | ||||||
Imperial Oil Ltd. | 75,951 | 2,103,000 | ||||||
Noble Energy, Inc. | 163,291 | 3,657,718 | ||||||
|
| |||||||
12,559,485 | ||||||||
|
| |||||||
Oil & Gas Services — 1.3% |
| |||||||
Baker Hughes a GE Co. | 170,602 | 4,201,928 | ||||||
Halliburton Co. | 27,904 | 634,537 | ||||||
National Oilwell Varco, Inc. | 33,688 | 748,884 | ||||||
|
| |||||||
5,585,349 | ||||||||
|
| |||||||
Pipelines — 0.5% |
| |||||||
Equitrans Midstream Corp. (a) | 113,385 | 2,234,818 | ||||||
|
| |||||||
20,379,652 | ||||||||
|
| |||||||
Financial — 27.6% |
| |||||||
Banks — 13.8% |
| |||||||
BB&T Corp. | 189,625 | 9,316,276 | ||||||
Comerica, Inc. | 73,783 | 5,359,597 | ||||||
Commerce Bancshares, Inc. | 72,634 | 4,333,344 | ||||||
First Hawaiian, Inc. | 207,540 | 5,369,060 | ||||||
M&T Bank Corp. | 31,694 | 5,390,198 | ||||||
Northern Trust Corp. | 139,512 | 12,556,080 | ||||||
Prosperity Bancshares, Inc. | 34,963 | 2,309,306 | ||||||
State Street Corp. | 64,194 | 3,598,716 | ||||||
SunTrust Banks, Inc. | 31,228 | 1,962,680 | ||||||
UMB Financial Corp. | 75,741 | 4,985,273 | ||||||
Westamerica Bancorp. | 53,487 | 3,295,334 | ||||||
|
| |||||||
58,475,864 | ||||||||
|
| |||||||
Diversified Financial Services — 2.2% |
| |||||||
Ameriprise Financial, Inc. | 43,152 | 6,263,944 | ||||||
Invesco Ltd. | 147,816 | 3,024,316 | ||||||
|
| |||||||
9,288,260 | ||||||||
|
| |||||||
Insurance — 5.5% |
| |||||||
Aflac, Inc. | 53,970 | 2,958,096 |
The accompanying notes are an integral part of the financial statements.
70
Table of Contents
MML Mid Cap Value Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Arthur J Gallagher & Co. | 12,988 | $ | 1,137,619 | |||||
Brown & Brown, Inc. | 64,863 | 2,172,911 | ||||||
Chubb Ltd. | 43,545 | 6,413,743 | ||||||
ProAssurance Corp. | 78,413 | 2,831,493 | ||||||
Reinsurance Group of America, Inc. | 29,289 | 4,569,963 | ||||||
Torchmark Corp. | 17,865 | 1,598,203 | ||||||
The Travelers Cos., Inc. | 11,097 | 1,659,223 | ||||||
|
| |||||||
23,341,251 | ||||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 5.1% |
| |||||||
American Tower Corp. | 9,636 | 1,970,080 | ||||||
Empire State Realty Trust, Inc. Class A | 212,391 | 3,145,511 | ||||||
MGM Growth Properties LLC Class A | 146,675 | 4,495,589 | ||||||
Piedmont Office Realty Trust, Inc. Class A | 186,781 | 3,722,545 | ||||||
Weyerhaeuser Co. | 317,524 | 8,363,582 | ||||||
|
| |||||||
21,697,307 | ||||||||
|
| |||||||
Savings & Loans — 1.0% |
| |||||||
Capitol Federal Financial, Inc. | 305,456 | 4,206,129 | ||||||
|
| |||||||
117,008,811 | ||||||||
|
| |||||||
Industrial — 18.2% |
| |||||||
Aerospace & Defense — 0.9% |
| |||||||
BAE Systems PLC | 628,761 | 3,965,386 | ||||||
|
| |||||||
Building Materials — 1.3% |
| |||||||
Johnson Controls International PLC | 137,188 | 5,667,236 | ||||||
|
| |||||||
Electrical Components & Equipment — 4.9% |
| |||||||
Emerson Electric Co. | 108,524 | 7,240,721 | ||||||
Hubbell, Inc. | 76,341 | 9,954,867 | ||||||
Schneider Electric SE | 40,955 | 3,714,927 | ||||||
|
| |||||||
20,910,515 | ||||||||
|
| |||||||
Electronics — 1.9% |
| |||||||
nVent Electric PLC | 147,616 | 3,659,401 | ||||||
TE Connectivity Ltd. | 45,534 | 4,361,246 | ||||||
|
| |||||||
8,020,647 | ||||||||
|
| |||||||
Environmental Controls — 0.5% |
| |||||||
Republic Services, Inc. | 25,763 | 2,232,106 | ||||||
|
| |||||||
Machinery – Diversified — 0.8% |
| |||||||
Atlas Copco AB Class B | 112,600 | 3,230,647 | ||||||
|
| |||||||
Machinery – Diversified — 1.4% |
| |||||||
Cummins, Inc. | 34,193 | 5,858,628 | ||||||
|
| |||||||
Miscellaneous – Manufacturing — 2.5% |
| |||||||
Eaton Corp. PLC | 53,205 | 4,430,913 | ||||||
IMI PLC | 344,073 | 4,545,079 | ||||||
Textron, Inc. | 29,971 | 1,589,662 | ||||||
|
| |||||||
10,565,654 | ||||||||
|
| |||||||
Packaging & Containers — 3.0% |
| |||||||
Graphic Packaging Holding Co. | 391,769 | 5,476,931 | ||||||
Packaging Corp. of America | 39,991 | 3,811,942 |
Number of Shares | Value | |||||||
Sonoco Products Co. | 32,072 | $ | 2,095,584 | |||||
WestRock Co. | 34,940 | 1,274,262 | ||||||
|
| |||||||
12,658,719 | ||||||||
|
| |||||||
Transportation — 1.0% |
| |||||||
Heartland Express, Inc. | 227,358 | 4,108,359 | ||||||
|
| |||||||
77,217,897 | ||||||||
|
| |||||||
Technology — 5.9% |
| |||||||
Computers — 0.8% |
| |||||||
HP, Inc. | 152,224 | 3,164,737 | ||||||
|
| |||||||
Semiconductors — 4.2% |
| |||||||
Applied Materials, Inc. | 160,484 | 7,207,336 | ||||||
Maxim Integrated Products, Inc. | 96,979 | 5,801,284 | ||||||
Microchip Technology, Inc. | 37,603 | 3,260,180 | ||||||
Teradyne, Inc. | 32,438 | 1,554,105 | ||||||
|
| |||||||
17,822,905 | ||||||||
|
| |||||||
Software — 0.9% |
| |||||||
Cerner Corp. | 52,397 | 3,840,700 | ||||||
|
| |||||||
24,828,342 | ||||||||
|
| |||||||
Utilities — 9.8% |
| |||||||
Electric — 8.2% |
| |||||||
Ameren Corp. | 65,498 | 4,919,555 | ||||||
Edison International | 43,111 | 2,906,112 | ||||||
Eversource Energy | 41,142 | 3,116,918 | ||||||
NorthWestern Corp. | 77,171 | 5,567,888 | ||||||
Pinnacle West Capital Corp. | 58,668 | 5,520,072 | ||||||
WEC Energy Group, Inc. | 42,726 | 3,562,067 | ||||||
Xcel Energy, Inc. | 151,808 | 9,031,058 | ||||||
|
| |||||||
34,623,670 | ||||||||
|
| |||||||
Gas — 1.6% |
| |||||||
Atmos Energy Corp. | 31,629 | 3,338,757 | ||||||
Spire, Inc. | 41,949 | 3,520,361 | ||||||
|
| |||||||
6,859,118 | ||||||||
|
| |||||||
41,482,788 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $386,793,312) | 406,414,082 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $386,793,312) | 406,414,082 | |||||||
|
| |||||||
MUTUAL FUNDS — 3.2% |
| |||||||
Diversified Financial Services — 3.2% |
| |||||||
iShares RussellMid-Cap Value ETF | 150,517 | 13,415,580 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $12,820,024) | 13,415,580 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $399,613,336) | 419,829,662 | |||||||
|
|
The accompanying notes are an integral part of the financial statements.
71
Table of Contents
MML Mid Cap Value Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
SHORT-TERM INVESTMENTS — 0.8% |
| |||||||
Repurchase Agreement — 0.8% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (c) | $ | 3,518,183 | $ | 3,518,183 | ||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $3,518,183) | 3,518,183 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.0% (Cost $403,131,519) (d) | 423,347,845 | |||||||
Other Assets/(Liabilities) — 0.0% | 208,214 | |||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 423,556,059 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
ETF | Exchange-Traded Fund |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Security is exempt from registration under Regulation S or Rule 144A of the Securities Act of 1933. These securities are considered restricted and may be resold in transactions exempt from registration. At June 30, 2019, the aggregate market value of these securities amounted to $3,165,467 or 0.75% of net assets. |
(c) | Maturity value of $3,518,549. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $3,590,294. |
(d) | See Note 6 for aggregate cost for federal tax purposes. |
Forward contracts
Counterparty | Settlement Date | Currency Purchased | Currency Sold | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
Bank of America N.A.* | 9/30/19 | USD | $ | 2,584,878 | JPY | 276,344,090 | $ | 4,961 | ||||||||||||||||
Credit Suisse International* | 9/30/19 | USD | 12,533,400 | EUR | 10,988,909 | (49,861 | ) | |||||||||||||||||
Goldman Sachs & Co.* | 9/30/19 | USD | 2,732,197 | SEK | 25,487,573 | (29,823 | ) | |||||||||||||||||
Goldman Sachs & Co.* | 9/30/19 | USD | 5,162,835 | NOK | 44,027,338 | (10,782 | ) | |||||||||||||||||
JP Morgan Chase Bank N.A.* | 9/30/19 | USD | 7,156,827 | GBP | 5,624,349 | (13,985 | ) | |||||||||||||||||
Morgan Stanley & Co. LLC* | 9/30/19 | CAD | 69,723 | USD | 53,201 | 125 | ||||||||||||||||||
Morgan Stanley & Co. LLC* | 9/30/19 | USD | 1,833,324 | CAD | 2,418,356 | (16,325 | ) | |||||||||||||||||
|
| |||||||||||||||||||||||
$ | (115,690 | ) | ||||||||||||||||||||||
|
|
* | Contracts are subject to a Master Netting Agreement. |
Currency Legend
CAD | Canadian Dollar |
EUR | Euro |
GBP | British Pound |
JPY | Japanese Yen |
NOK | Norwegian Krone |
SEK | Swedish Krona |
USD | U.S. Dollar |
The accompanying notes are an integral part of the financial statements.
72
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 97.4% |
| |||||||
COMMON STOCK — 97.2% |
| |||||||
Basic Materials — 3.2% |
| |||||||
Chemicals — 2.0% |
| |||||||
Ferro Corp. (a) | 34,521 | $ | 545,432 | |||||
Ingevity Corp. (a) | 10,445 | 1,098,500 | ||||||
Methanex Corp. | 17,245 | 783,958 | ||||||
Minerals Technologies, Inc. | 12,827 | 686,373 | ||||||
Orion Engineered Carbons SA | 40,532 | 867,790 | ||||||
Realreal, Inc. (a) | 400 | 11,560 | ||||||
|
| |||||||
3,993,613 | ||||||||
|
| |||||||
Iron & Steel — 1.2% |
| |||||||
Carpenter Technology Corp. | 48,887 | 2,345,598 | ||||||
|
| |||||||
6,339,211 | ||||||||
|
| |||||||
Communications — 3.5% |
| |||||||
Advertising — 0.3% |
| |||||||
The Trade Desk, Inc. Class A (a) | 2,547 | 580,156 | ||||||
|
| |||||||
Internet — 1.9% |
| |||||||
DraftKings, Inc. | 78,904 | 216,197 | ||||||
Etsy, Inc. (a) | 7,816 | 479,668 | ||||||
Mimecast Ltd. (a) | 31,425 | 1,467,861 | ||||||
Veracode, Inc. (Escrow Shares) (Acquired 8/26/17, | 10,688 | 5,814 | ||||||
Wix.com Ltd. (a) | 5,319 | 755,830 | ||||||
Zendesk, Inc. (a) | 9,427 | 839,286 | ||||||
|
| |||||||
3,764,656 | ||||||||
|
| |||||||
Media — 0.5% |
| |||||||
The New York Times Co. Class A | 29,295 | 955,603 | ||||||
|
| |||||||
Telecommunications — 0.8% |
| |||||||
Acacia Communications, Inc. (a) | 9,557 | 450,708 | ||||||
Ciena Corp. (a) | 25,823 | 1,062,100 | ||||||
|
| |||||||
1,512,808 | ||||||||
|
| |||||||
6,813,223 | ||||||||
|
| |||||||
Consumer, Cyclical — 14.2% |
| |||||||
Airlines — 0.4% |
| |||||||
Spirit Airlines, Inc. (a) | 16,538 | 789,359 | ||||||
|
| |||||||
Apparel — 2.1% |
| |||||||
Carter’s, Inc. | 16,631 | 1,622,188 | ||||||
Deckers Outdoor Corp. (a) | 3,315 | 583,340 | ||||||
Skechers U.S.A., Inc. Class A (a) | 23,551 | 741,621 | ||||||
Under Armour, Inc. Class C (a) | 52,905 | 1,174,491 | ||||||
|
| |||||||
4,121,640 | ||||||||
|
| |||||||
Entertainment — 1.5% |
| |||||||
Cinemark Holdings, Inc. | 29,777 | 1,074,950 | ||||||
Marriott Vacations Worldwide Corp. | 19,644 | 1,893,681 | ||||||
|
| |||||||
2,968,631 | ||||||||
|
|
Number of Shares | Value | |||||||
Home Builders — 3.4% |
| |||||||
Cavco Industries, Inc. (a) | 4,061 | $ | 639,770 | |||||
Century Communities, Inc. (a) | 44,374 | 1,179,461 | ||||||
LCI Industries | 10,028 | 902,520 | ||||||
Skyline Champion Corp. (a) | 88,284 | 2,417,216 | ||||||
TRI Pointe Group, Inc. (a) | 42,650 | 510,520 | ||||||
Winnebago Industries, Inc. | 28,023 | 1,083,089 | ||||||
|
| |||||||
6,732,576 | ||||||||
|
| |||||||
Leisure Time — 2.7% |
| |||||||
Acushnet Holdings Corp. | 83,788 | 2,200,273 | ||||||
Lindblad Expeditions Holdings, Inc. (a) | 61,458 | 1,103,171 | ||||||
Planet Fitness, Inc. Class A (a) | 17,618 | 1,276,248 | ||||||
YETI Holdings, Inc. (a) (e) | 23,648 | 684,610 | ||||||
|
| |||||||
5,264,302 | ||||||||
|
| |||||||
Retail — 4.1% |
| |||||||
BJ’s Restaurants, Inc. | 14,600 | 641,524 | ||||||
BMC Stock Holdings, Inc. (a) | 54,410 | 1,153,492 | ||||||
The Cheesecake Factory, Inc. (e) | 20,702 | 905,092 | ||||||
The Children’s Place, Inc. (e) | 10,820 | 1,032,012 | ||||||
FirstCash, Inc. | 11,399 | 1,140,128 | ||||||
Five Below, Inc. (a) | 3,150 | 378,063 | ||||||
Floor & Decor Holdings, Inc. Class A (a) | 27,370 | 1,146,803 | ||||||
La-Z-Boy, Inc. | 29,070 | 891,286 | ||||||
Nu Skin Enterprises, Inc. Class A | 18,857 | 930,027 | ||||||
|
| |||||||
8,218,427 | ||||||||
|
| |||||||
28,094,935 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 26.1% |
| |||||||
Beverages — 0.6% |
| |||||||
MGP Ingredients, Inc. (e) | 16,450 | 1,090,800 | ||||||
|
| |||||||
Biotechnology — 3.9% |
| |||||||
Amicus Therapeutics, Inc. (a) | 67,079 | 837,146 | ||||||
Arena Pharmaceuticals, Inc. (a) | 17,388 | 1,019,458 | ||||||
Blueprint Medicines Corp. (a) | 5,543 | 522,871 | ||||||
CRISPR Therapeutics AG (a) (e) | 13,037 | 614,043 | ||||||
CytomX Therapeutics, Inc. (a) | 11,136 | 124,946 | ||||||
Exact Sciences Corp. (a) | 14,194 | 1,675,460 | ||||||
Karyopharm Therapeutics, Inc. (a) (e) | 31,575 | 189,134 | ||||||
Orchard Therapeutics plc (a) (e) | 34,425 | 481,606 | ||||||
Sage Therapeutics, Inc. (a) | 3,400 | 622,506 | ||||||
Sangamo Therapeutics, Inc. (a) | 102,372 | 1,102,546 | ||||||
Ultragenyx Pharmaceutical, Inc. (a) | 8,268 | 525,018 | ||||||
|
| |||||||
7,714,734 | ||||||||
|
| |||||||
Commercial Services — 6.4% |
| |||||||
2U, Inc. (a) | 31,491 | 1,185,321 | ||||||
The Brink’s Co. | 18,659 | 1,514,738 | ||||||
Cardtronics PLC Class A (a) | 34,053 | 930,328 | ||||||
Chegg, Inc. (a) | 30,677 | 1,183,825 |
The accompanying notes are an integral part of the financial statements.
73
Table of Contents
MML Small Cap Growth Equity Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Grand Canyon Education, Inc. (a) | 9,900 | $ | 1,158,498 | |||||
Green Dot Corp. Class A (a) | 11,688 | 571,543 | ||||||
HMS Holdings Corp. (a) | 61,206 | 1,982,462 | ||||||
Liveramp Holdings, Inc. (a) | 16,727 | 810,925 | ||||||
TriNet Group, Inc. (a) | 42,424 | 2,876,347 | ||||||
TrueBlue, Inc. (a) | 15,525 | 342,482 | ||||||
|
| |||||||
12,556,469 | ||||||||
|
| |||||||
Foods — 1.3% |
| |||||||
Performance Food Group Co. (a) | 53,319 | 2,134,360 | ||||||
Sanderson Farms, Inc. | 3,900 | 532,584 | ||||||
|
| |||||||
2,666,944 | ||||||||
|
| |||||||
Health Care – Products — 7.4% |
| |||||||
Adaptive Biotechnologies Corp. (a) | 1,100 | 53,130 | ||||||
Avanos Medical, Inc. (a) | 16,023 | 698,763 | ||||||
CareDx, Inc. (a) | 13,292 | 478,379 | ||||||
Globus Medical, Inc. Class A (a) | 45,437 | 1,921,985 | ||||||
Haemonetics Corp. (a) | 23,829 | 2,867,582 | ||||||
Hill-Rom Holdings, Inc. | 10,839 | 1,133,976 | ||||||
Insulet Corp. (a) | 27,223 | 3,249,882 | ||||||
Merit Medical Systems, Inc. (a) | 28,078 | 1,672,326 | ||||||
Penumbra, Inc. (a) (e) | 8,747 | 1,399,520 | ||||||
Tandem Diabetes Care, Inc. (a) | 18,735 | 1,208,782 | ||||||
|
| |||||||
14,684,325 | ||||||||
|
| |||||||
Health Care – Services — 2.5% |
| |||||||
Acadia Healthcare Co., Inc. (a) (e) | 16,724 | 584,504 | ||||||
Amedisys, Inc. (a) | 14,207 | 1,724,872 | ||||||
Invitae Corp. (a) | 26,161 | 614,783 | ||||||
LHC Group, Inc. (a) | 9,722 | 1,162,557 | ||||||
Molina Healthcare, Inc. (a) | 5,464 | 782,117 | ||||||
|
| |||||||
4,868,833 | ||||||||
|
| |||||||
Pharmaceuticals — 4.0% |
| |||||||
Aerie Pharmaceuticals, Inc. (a) | 12,292 | 363,229 | ||||||
Apellis Pharmaceuticals, Inc. (a) | 22,207 | 562,725 | ||||||
Array BioPharma, Inc. (a) | 18,457 | 855,113 | ||||||
Ascendis Pharma A/S ADR (a) | 4,083 | 470,157 | ||||||
G1 Therapeutics, Inc. (a) | 40,373 | 1,237,836 | ||||||
Galapagos NV Sponsored ADR (a) | 7,345 | 946,991 | ||||||
Heron Therapeutics, Inc. (a) | 16,947 | 315,045 | ||||||
MyoKardia, Inc. (a) | 13,938 | 698,851 | ||||||
Portola Pharmaceuticals, Inc. (a) (e) | 12,516 | 339,559 | ||||||
PRA Health Sciences, Inc. (a) | 8,378 | 830,679 | ||||||
Ra Pharmaceuticals, Inc. (a) | 15,374 | 462,296 | ||||||
Revance Therapeutics, Inc. (a) | 24,933 | 323,381 | ||||||
Rhythm Pharmaceuticals, Inc. (a) | 12,298 | 270,556 | ||||||
UroGen Pharma Ltd. (a) | 8,054 | 289,461 | ||||||
|
| |||||||
7,965,879 | ||||||||
|
| |||||||
51,547,984 | ||||||||
|
| |||||||
Energy — 2.8% |
| |||||||
Energy – Alternate Sources — 1.4% |
| |||||||
First Solar, Inc. (a) | 23,038 | 1,513,136 |
Number of Shares | Value | |||||||
Pattern Energy Group, Inc. Class A | 51,697 | $ | 1,193,684 | |||||
|
| |||||||
2,706,820 | ||||||||
|
| |||||||
Oil & Gas — 1.4% |
| |||||||
Delek US Holdings, Inc. | 28,058 | 1,136,910 | ||||||
Viper Energy Partners LP | 53,626 | 1,652,753 | ||||||
|
| |||||||
2,789,663 | ||||||||
|
| |||||||
5,496,483 | ||||||||
|
| |||||||
Financial — 19.3% |
| |||||||
Banks — 5.5% |
| |||||||
Ameris Bancorp | 29,225 | 1,145,328 | ||||||
Atlantic Union Bankshares Corp. | 54,084 | 1,910,788 | ||||||
BancorpSouth Bank | 67,109 | 1,948,845 | ||||||
CenterState Bank Corp. | 25,726 | 592,470 | ||||||
First Interstate BancSystem, Inc. Class A | 22,255 | 881,520 | ||||||
National Bank Holdings Corp. Class A | 26,902 | 976,542 | ||||||
Seacoast Banking Corp. of Florida (a) | 39,063 | 993,763 | ||||||
South State Corp. | 12,230 | 900,984 | ||||||
Texas Capital Bancshares, Inc. (a) | 24,678 | 1,514,489 | ||||||
|
| |||||||
10,864,729 | ||||||||
|
| |||||||
Diversified Financial Services — 2.4% |
| |||||||
Air Lease Corp. | 25,737 | 1,063,968 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 94,432 | 2,661,094 | ||||||
PRA Group, Inc. (a) | 36,566 | 1,028,967 | ||||||
|
| |||||||
4,754,029 | ||||||||
|
| |||||||
Insurance — 2.8% |
| |||||||
Assured Guaranty Ltd. | 30,288 | 1,274,519 | ||||||
James River Group Holdings Ltd. | 23,739 | 1,113,359 | ||||||
Kemper Corp. | 12,862 | 1,109,862 | ||||||
MGIC Investment Corp. (a) | 85,083 | 1,117,991 | ||||||
NMI Holdings, Inc. Class A (a) | 32,820 | 931,760 | ||||||
|
| |||||||
5,547,491 | ||||||||
|
| |||||||
Private Equity — 1.0% |
| |||||||
Kennedy-Wilson Holdings, Inc. | 100,806 | 2,073,579 | ||||||
|
| |||||||
Real Estate — 0.9% |
| |||||||
McGrath RentCorp | 28,551 | 1,774,445 | ||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 5.5% |
| |||||||
Agree Realty Corp. | 21,325 | 1,365,866 | ||||||
Brandywine Realty Trust | 64,100 | 917,912 | ||||||
Life Storage, Inc. | 9,473 | 900,693 | ||||||
MFA Financial, Inc. | 101,539 | 729,050 | ||||||
NexPoint Residential Trust, Inc. | 47,245 | 1,955,943 | ||||||
PotlatchDeltic Corp. | 33,184 | 1,293,512 | ||||||
PS Business Parks, Inc. | 5,011 | 844,504 | ||||||
Redwood Trust, Inc. | 57,721 | 954,128 | ||||||
Xenia Hotels & Resorts, Inc. | 90,409 | 1,885,028 | ||||||
|
| |||||||
10,846,636 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
74
Table of Contents
MML Small Cap Growth Equity Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Savings & Loans — 1.2% |
| |||||||
Sterling Bancorp | 108,716 | $ | 2,313,476 | |||||
|
| |||||||
38,174,385 | ||||||||
|
| |||||||
Industrial — 13.4% |
| |||||||
Aerospace & Defense — 1.3% |
| |||||||
Aerojet Rocketdyne Holdings, Inc. (a) | 58,691 | 2,627,596 | ||||||
|
| |||||||
Building Materials — 0.6% |
| |||||||
Louisiana-Pacific Corp. | 28,100 | 736,782 | ||||||
Patrick Industries, Inc. (a) | 9,680 | 476,159 | ||||||
|
| |||||||
1,212,941 | ||||||||
|
| |||||||
Electrical Components & Equipment — 1.4% |
| |||||||
EnerSys | 35,305 | 2,418,393 | ||||||
nLight, Inc. (a) | 20,685 | 397,152 | ||||||
|
| |||||||
2,815,545 | ||||||||
|
| |||||||
Electronics — 0.5% |
| |||||||
Watts Water Technologies, Inc. Class A | 9,899 | 922,389 | ||||||
|
| |||||||
Engineering & Construction — 1.0% |
| |||||||
Argan, Inc. | 46,284 | 1,877,279 | ||||||
|
| |||||||
Environmental Controls — 0.4% |
| |||||||
Clean Harbors, Inc. (a) | 11,553 | 821,418 | ||||||
|
| |||||||
Machinery – Diversified — 1.3% |
| |||||||
Chart Industries, Inc. (a) | 13,465 | 1,035,189 | ||||||
Kadant, Inc. | 3,770 | 342,354 | ||||||
SPX FLOW, Inc. (a) | 26,015 | 1,088,988 | ||||||
|
| |||||||
2,466,531 | ||||||||
|
| |||||||
Metal Fabricate & Hardware — 2.3% |
| |||||||
Advanced Drainage Systems, Inc. | 40,633 | 1,332,356 | ||||||
Rexnord Corp. (a) | 106,364 | 3,214,320 | ||||||
|
| |||||||
4,546,676 | ||||||||
|
| |||||||
Miscellaneous – Manufacturing — 3.0% |
| |||||||
Actuant Corp. Class A | 85,368 | 2,117,980 | ||||||
Axon Enterprise, Inc. (a) | 7,833 | 502,957 | ||||||
ITT, Inc. | 33,067 | 2,165,227 | ||||||
John Bean Technologies Corp. | 8,964 | 1,085,809 | ||||||
|
| |||||||
5,871,973 | ||||||||
|
| |||||||
Packaging & Containers — 0.5% |
| |||||||
Graphic Packaging Holding Co. | 77,413 | 1,082,234 | ||||||
|
| |||||||
Transportation — 0.6% |
| |||||||
Kirby Corp. (a) | 14,639 | 1,156,481 | ||||||
|
| |||||||
Trucking & Leasing — 0.5% |
| |||||||
GATX Corp. | 12,820 | 1,016,498 | ||||||
|
| |||||||
26,417,561 | ||||||||
|
| |||||||
Technology — 14.2% |
| |||||||
Computers — 2.9% |
| |||||||
Endava PLC Sponsored ADR (a) | 11,540 | 464,370 |
Number of Shares | Value | |||||||
EPAM Systems, Inc. (a) | 4,409 | $ | 763,198 | |||||
ForeScout Technologies, Inc. (a) | 24,171 | 818,430 | ||||||
Globant SA (a) | 6,740 | 681,077 | ||||||
Lumentum Holdings, Inc. (a) | 8,717 | 465,575 | ||||||
Rapid7, Inc. (a) | 15,562 | 900,106 | ||||||
Science Applications International Corp. | 18,124 | 1,568,813 | ||||||
|
| |||||||
5,661,569 | ||||||||
|
| |||||||
Office & Business Equipment — 0.6% |
| |||||||
Zebra Technologies Corp. Class A (a) | 5,196 | 1,088,510 | ||||||
|
| |||||||
Semiconductors — 3.4% |
| |||||||
Cohu, Inc. | 58,184 | 897,779 | ||||||
Entegris, Inc. | 64,378 | 2,402,587 | ||||||
Lattice Semiconductor Corp. (a) | 81,637 | 1,191,084 | ||||||
MKS Instruments, Inc. | 5,577 | 434,392 | ||||||
Tower Semiconductor Ltd. (a) | 114,354 | 1,803,363 | ||||||
|
| |||||||
6,729,205 | ||||||||
|
| |||||||
Software — 7.3% |
| |||||||
Alteryx, Inc. Class A (a) | 5,079 | 554,220 | ||||||
Bandwidth, Inc. Class A (a) | 22,112 | 1,658,842 | ||||||
Castlight Health, Inc. Class B (a) | 110,900 | 358,207 | ||||||
Cloudera, Inc. (a) | 69,303 | 364,534 | ||||||
Everbridge, Inc. (a) | 15,884 | 1,420,347 | ||||||
Fair Isaac Corp. (a) | 2,543 | 798,553 | ||||||
Five9, Inc. (a) | 40,849 | 2,095,145 | ||||||
Guidewire Software, Inc. (a) | 9,011 | 913,535 | ||||||
HubSpot, Inc. (a) | 9,053 | 1,543,718 | ||||||
Omnicell, Inc. (a) | 35,551 | 3,058,453 | ||||||
Pivotal Software, Inc. Class A (a) | 29,667 | 313,284 | ||||||
SailPoint Technologies Holding, Inc. (a) | 30,267 | 606,551 | ||||||
SVMK, Inc. (a) | 46,300 | 764,413 | ||||||
|
| |||||||
14,449,802 | ||||||||
|
| |||||||
27,929,086 | ||||||||
|
| |||||||
Utilities — 0.5% |
| |||||||
Electric — 0.5% |
| |||||||
Black Hills Corp. | 12,926 | 1,010,425 | ||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $162,510,315) | 191,823,293 | |||||||
|
| |||||||
PREFERRED STOCK — 0.2% |
| |||||||
Communications — 0.1% |
| |||||||
Internet — 0.1% |
| |||||||
The Honest Company, Inc., Series D (Acquired 8/03/15, | 4,027 | 155,281 | ||||||
|
|
The accompanying notes are an integral part of the financial statements.
75
Table of Contents
MML Small Cap Growth Equity Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Technology — 0.1% |
| |||||||
Software — 0.1% |
| |||||||
MarkLogic Corp., Series F | 22,966 | $ | 234,483 | |||||
|
| |||||||
TOTAL PREFERRED STOCK (Cost $450,987) | 389,764 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $162,961,302) | 192,213,057 | |||||||
|
| |||||||
MUTUAL FUNDS — 3.0% |
| |||||||
Diversified Financial Services — 3.0% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (f) | 5,967,693 | 5,967,693 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $5,967,693) | 5,967,693 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $168,928,995) | 198,180,750 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 3.0% |
| |||||||
Repurchase Agreement — 3.0% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (g) | $ | 5,806,864 | 5,806,864 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $5,806,864) | 5,806,864 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 103.4% (Cost $174,735,859) (h) | 203,987,614 | |||||||
Other Assets/(Liabilities) — (3.4)% | (6,666,237 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 197,321,377 | ||||||
|
|
Abbreviation Legend
ADR | American Depositary Receipt |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Investment was valued using significant unobservable inputs. |
(c) | This security is fair valued in good faith in accordance with procedures approved by the Board of Trustees. At June 30, 2019, these securities amounted to a value of $611,775 or 0.31% of net assets. |
(d) | Restricted security. Certain securities are restricted as to resale. At June 30, 2019, these securities amounted to a value of $611,775 or 0.31% of net assets. The Fund generally bears the costs, if any, associated with the disposition of restricted securities. |
(e) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $5,827,857 or 2.95% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers.(Note 2). |
(f) | Represents investment of security lending collateral.(Note 2). |
(g) | Maturity value of $5,807,469. Collateralized by U.S. Government Agency obligations with a rate of 0.125%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $5,930,368. |
(h) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
76
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 98.2% |
| |||||||
COMMON STOCK — 98.2% |
| |||||||
Basic Materials — 3.3% |
| |||||||
Chemicals — 1.5% |
| |||||||
American Vanguard Corp. | 17,500 | $ | 269,675 | |||||
Minerals Technologies, Inc. | 9,300 | 497,643 | ||||||
Quaker Chemical Corp. | 2,911 | 590,583 | ||||||
Realreal, Inc. (a) | 4,063 | 117,421 | ||||||
|
| |||||||
1,475,322 | ||||||||
|
| |||||||
Forest Products & Paper — 0.1% |
| |||||||
Clearwater Paper Corp. (a) | 6,332 | 117,078 | ||||||
|
| |||||||
Iron & Steel — 1.2% |
| |||||||
Carpenter Technology Corp. | 15,300 | 734,094 | ||||||
Reliance Steel & Aluminum Co. | 4,900 | 463,638 | ||||||
|
| |||||||
1,197,732 | ||||||||
|
| |||||||
Mining — 0.5% |
| |||||||
Constellium NV Class A (a) | 45,187 | 453,678 | ||||||
|
| |||||||
3,243,810 | ||||||||
|
| |||||||
Communications — 3.6% |
| |||||||
Internet — 1.0% |
| |||||||
Q2 Holdings, Inc. (a) | 5,800 | 442,888 | ||||||
Zendesk, Inc. (a) | 6,125 | 545,309 | ||||||
|
| |||||||
988,197 | ||||||||
|
| |||||||
Media — 1.6% |
| |||||||
Cable One, Inc. | 1,127 | 1,319,705 | ||||||
Scholastic Corp. | 8,400 | 279,216 | ||||||
|
| |||||||
1,598,921 | ||||||||
|
| |||||||
Telecommunications — 1.0% |
| |||||||
GTT Communications, Inc. (a) (b) | 15,900 | 279,840 | ||||||
Harmonic, Inc. (a) | 122,331 | 678,937 | ||||||
|
| |||||||
958,777 | ||||||||
|
| |||||||
3,545,895 | ||||||||
|
| |||||||
Consumer, Cyclical — 7.7% |
| |||||||
Apparel — 0.7% |
| |||||||
Steven Madden Ltd. | 20,597 | 699,268 | ||||||
|
| |||||||
Auto Manufacturers — 0.3% |
| |||||||
Blue Bird Corp. (a) | 16,600 | 326,854 | ||||||
|
| |||||||
Auto Parts & Equipment — 0.8% |
| |||||||
Garrett Motion, Inc. (a) (b) | 33,024 | 506,918 | ||||||
Visteon Corp. (a) | 3,700 | 216,746 | ||||||
|
| |||||||
723,664 | ||||||||
|
| |||||||
Distribution & Wholesale — 2.0% |
| |||||||
Dorman Products, Inc. (a) | 9,711 | 846,217 | ||||||
Pool Corp. | 5,900 | 1,126,900 | ||||||
|
| |||||||
1,973,117 | ||||||||
|
|
Number of Shares | Value | |||||||
Entertainment — 0.3% |
| |||||||
Marriott Vacations Worldwide Corp. | 3,042 | $ | 293,249 | |||||
|
| |||||||
Home Builders — 1.4% |
| |||||||
Cavco Industries, Inc. (a) | 4,900 | 771,946 | ||||||
LCI Industries | 6,196 | 557,640 | ||||||
|
| |||||||
1,329,586 | ||||||||
|
| |||||||
Lodging — 0.6% |
| |||||||
The St. Joe Co. (a) | 34,086 | 589,006 | ||||||
|
| |||||||
Retail — 1.3% |
| |||||||
Beacon Roofing Supply, Inc. (a) | 11,600 | 425,952 | ||||||
BJ’s Wholesale Club Holdings, Inc. (a) | 8,557 | 225,905 | ||||||
Express, Inc. (a) | 31,000 | 84,630 | ||||||
Lumber Liquidators Holdings, Inc. (a) (b) | 24,941 | 288,068 | ||||||
Red Robin Gourmet Burgers, Inc. (a) | 7,300 | 223,161 | ||||||
|
| |||||||
1,247,716 | ||||||||
|
| |||||||
Textiles — 0.3% |
| |||||||
Culp, Inc. | 16,600 | 315,400 | ||||||
|
| |||||||
7,497,860 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 16.9% |
| |||||||
Biotechnology — 0.1% |
| |||||||
Ultragenyx Pharmaceutical, Inc. (a) | 1,506 | 95,631 | ||||||
|
| |||||||
Commercial Services — 6.8% |
| |||||||
Aaron’s, Inc. | 20,259 | 1,244,105 | ||||||
American Public Education, Inc. (a) | 15,801 | 467,393 | ||||||
The Brink’s Co. | 3,500 | 284,130 | ||||||
FTI Consulting, Inc. (a) | 11,614 | 973,718 | ||||||
Green Dot Corp. Class A (a) | 12,298 | 601,372 | ||||||
Huron Consulting Group, Inc. (a) | 5,549 | 279,559 | ||||||
I3 Verticals, Inc. Class A (a) | 15,700 | 462,365 | ||||||
Monro, Inc. | 6,263 | 534,234 | ||||||
Rosetta Stone, Inc. (a) | 20,275 | 463,892 | ||||||
Strategic Education, Inc. | 7,894 | 1,405,132 | ||||||
|
| |||||||
6,715,900 | ||||||||
|
| |||||||
Foods — 2.9% |
| |||||||
Grocery Outlet Holding Corp. (a) | 3,240 | 106,531 | ||||||
Nomad Foods Ltd. (a) | 66,800 | 1,426,848 | ||||||
Post Holdings, Inc. (a) | 7,237 | 752,431 | ||||||
The Simply Good Foods Co. (a) | 23,610 | 568,529 | ||||||
|
| |||||||
2,854,339 | ||||||||
|
| |||||||
Health Care – Products — 3.8% |
| |||||||
Atrion Corp. | 1,260 | 1,074,452 | ||||||
Avanos Medical, Inc. (a) | 18,372 | 801,203 | ||||||
Patterson Cos., Inc. | 6,800 | 155,720 | ||||||
Quidel Corp. (a) | 19,121 | 1,134,258 | ||||||
West Pharmaceutical Services, Inc. | 4,187 | 524,003 | ||||||
|
| |||||||
3,689,636 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
77
Table of Contents
MML Small Company Value Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Health Care – Services — 2.5% |
| |||||||
The Ensign Group, Inc. | 19,499 | $ | 1,109,883 | |||||
Molina Healthcare, Inc. (a) | 5,088 | 728,296 | ||||||
Select Medical Holdings Corp. (a) | 41,000 | 650,670 | ||||||
|
| |||||||
2,488,849 | ||||||||
|
| |||||||
Pharmaceuticals — 0.8% |
| |||||||
Array BioPharma, Inc. (a) | 4,871 | 225,674 | ||||||
Momenta Pharmaceuticals, Inc. (a) | 21,647 | 269,505 | ||||||
Xencor, Inc. (a) | 6,200 | 253,766 | ||||||
|
| |||||||
748,945 | ||||||||
|
| |||||||
16,593,300 | ||||||||
|
| |||||||
Energy — 4.2% |
| |||||||
Energy – Alternate Sources — 0.4% |
| |||||||
REX American Resources Corp. (a) | 5,387 | 392,713 | ||||||
|
| |||||||
Oil & Gas — 2.3% |
| |||||||
Centennial Resource Development, Inc. Class A (a) | 51,900 | 393,921 | ||||||
Jagged Peak Energy, Inc. (a) (b) | 31,342 | 259,198 | ||||||
Kimbell Royalty Partners LP | 6,095 | 98,434 | ||||||
Kosmos Energy Ltd. | 47,800 | 299,706 | ||||||
Matador Resources Co. (a) | 27,307 | 542,863 | ||||||
WPX Energy, Inc. (a) | 56,746 | 653,147 | ||||||
|
| |||||||
2,247,269 | ||||||||
|
| |||||||
Oil & Gas Services — 1.5% |
| |||||||
Apergy Corp. (a) | 8,300 | 278,382 | ||||||
Frank’s International NV (a) (b) | 42,404 | 231,526 | ||||||
Keane Group, Inc. (a) | 55,485 | 372,859 | ||||||
TETRA Technologies, Inc. (a) | 140,400 | 228,852 | ||||||
Thermon Group Holdings, Inc. (a) | 14,800 | 379,620 | ||||||
|
| |||||||
1,491,239 | ||||||||
|
| |||||||
4,131,221 | ||||||||
|
| |||||||
Financial — 32.8% |
| |||||||
Banks — 15.6% |
| |||||||
Atlantic Capital Bancshares, Inc. (a) | 15,270 | 261,422 | ||||||
BankUnited, Inc. | 29,700 | 1,002,078 | ||||||
BOK Financial Corp. | 5,944 | 448,653 | ||||||
CenterState Bank Corp. | 15,600 | 359,268 | ||||||
Columbia Banking System, Inc. | 26,000 | 940,680 | ||||||
East West Bancorp, Inc. | 11,526 | 539,071 | ||||||
FB Financial Corp. | 15,385 | 563,091 | ||||||
Glacier Bancorp, Inc. | 19,600 | 794,780 | ||||||
Heritage Commerce Corp. | 22,099 | 270,713 | ||||||
Heritage Financial Corp. | 15,409 | 455,182 | ||||||
Home BancShares, Inc. | 79,150 | 1,524,429 | ||||||
Hope Bancorp, Inc. | 35,000 | 482,300 | ||||||
Howard Bancorp, Inc. (a) | 16,742 | 253,976 | ||||||
Live Oak Bancshares, Inc. (b) | 13,622 | 233,617 | ||||||
National Bank Holdings Corp. Class A | 23,500 | 853,050 | ||||||
Origin Bancorp, Inc. | 10,343 | 341,319 |
Number of Shares | Value | |||||||
PCSB Financial Corp. | 19,077 | $ | 386,309 | |||||
Pinnacle Financial Partners, Inc. | 11,865 | 682,000 | ||||||
Ponce de Leon Federal Bank (a) | 18,784 | 268,423 | ||||||
Popular, Inc. | 14,100 | 764,784 | ||||||
Prosperity Bancshares, Inc. | 11,512 | 760,368 | ||||||
Sterling Bancorp, Inc. | 25,001 | 249,260 | ||||||
SVB Financial Group (a) | 877 | 196,966 | ||||||
Texas Capital Bancshares, Inc. (a) | 9,400 | 576,878 | ||||||
Towne Bank | 30,767 | 839,324 | ||||||
Webster Financial Corp. | 13,275 | 634,147 | ||||||
Wintrust Financial Corp. | 8,100 | 592,596 | ||||||
|
| |||||||
15,274,684 | ||||||||
|
| |||||||
Diversified Financial Services — 1.7% |
| |||||||
Cboe Global Markets, Inc. | 2,321 | 240,525 | ||||||
Houlihan Lokey, Inc. | 10,826 | 482,082 | ||||||
PennyMac Financial Services, Inc. | 25,100 | 556,718 | ||||||
Virtus Investment Partners, Inc. | 3,400 | 365,160 | ||||||
|
| |||||||
1,644,485 | ||||||||
|
| |||||||
Insurance — 3.3% |
| |||||||
Assured Guaranty Ltd. | 5,882 | 247,515 | ||||||
Axis Capital Holdings Ltd. | 1,800 | 107,370 | ||||||
Employers Holdings, Inc. | 10,138 | 428,533 | ||||||
Palomar Holdings, Inc. (a) | 1,266 | 30,435 | ||||||
ProAssurance Corp. | 14,875 | 537,136 | ||||||
Radian Group, Inc. | 36,400 | 831,740 | ||||||
Safety Insurance Group, Inc. | 4,600 | 437,598 | ||||||
State Auto Financial Corp. | 16,900 | 591,500 | ||||||
|
| |||||||
3,211,827 | ||||||||
|
| |||||||
Real Estate — 0.7% |
| |||||||
McGrath RentCorp | 10,767 | 669,169 | ||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 9.9% |
| |||||||
Acadia Realty Trust | 16,585 | 453,931 | ||||||
American Campus Communities, Inc. | 12,191 | 562,737 | ||||||
Cedar Realty Trust, Inc. | 153,212 | 406,012 | ||||||
Douglas Emmett, Inc. | 12,100 | 482,064 | ||||||
EastGroup Properties, Inc. | 9,297 | 1,078,266 | ||||||
Healthcare Realty Trust, Inc. | 27,300 | 855,036 | ||||||
JBG SMITH Properties | 23,335 | 917,999 | ||||||
Kilroy Realty Corp. | 7,307 | 539,330 | ||||||
PotlatchDeltic Corp. | 15,388 | 599,824 | ||||||
PS Business Parks, Inc. | 5,200 | 876,356 | ||||||
QTS Realty Trust, Inc. Class A | 7,014 | 323,906 | ||||||
Saul Centers, Inc. | 10,300 | 578,139 | ||||||
Sunstone Hotel Investors, Inc. | 49,700 | 681,387 | ||||||
Terreno Realty Corp. | 23,279 | 1,141,602 | ||||||
Washington Real Estate Investment Trust | 9,700 | 259,281 | ||||||
|
| |||||||
9,755,870 | ||||||||
|
| |||||||
Savings & Loans — 1.6% |
| |||||||
Meridian Bancorp, Inc. | 33,560 | 600,388 |
The accompanying notes are an integral part of the financial statements.
78
Table of Contents
MML Small Company Value Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
WSFS Financial Corp. | 25,105 | $ | 1,036,837 | |||||
|
| |||||||
1,637,225 | ||||||||
|
| |||||||
32,193,260 | ||||||||
|
| |||||||
Industrial — 16.3% |
| |||||||
Aerospace & Defense — 1.7% |
| |||||||
MSA Safety, Inc. | 4,644 | 489,431 | ||||||
Triumph Group, Inc. | 50,367 | 1,153,405 | ||||||
|
| |||||||
1,642,836 | ||||||||
|
| |||||||
Building Materials — 0.8% |
| |||||||
Universal Forest Products, Inc. | 19,500 | 742,170 | ||||||
|
| |||||||
Electrical Components & Equipment — 3.1% |
| |||||||
Belden, Inc. | 27,706 | 1,650,446 | ||||||
Littelfuse, Inc. | 7,812 | 1,382,021 | ||||||
|
| |||||||
3,032,467 | ||||||||
|
| |||||||
Electronics — 1.8% |
| |||||||
Brady Corp. Class A | 9,377 | 462,474 | ||||||
Knowles Corp. (a) | 42,969 | 786,762 | ||||||
Mesa Laboratories, Inc. | 2,261 | 552,453 | ||||||
|
| |||||||
1,801,689 | ||||||||
|
| |||||||
Engineering & Construction — 0.8% |
| |||||||
Aegion Corp. (a) | 40,300 | 741,520 | ||||||
|
| |||||||
Environmental Controls — 0.7% |
| |||||||
Stericycle, Inc. (a) | 15,300 | 730,575 | ||||||
|
| |||||||
Machinery – Diversified — 0.2% |
| |||||||
Cactus, Inc. Class A (a) | 5,417 | 179,411 | ||||||
|
| |||||||
Metal Fabricate & Hardware — 1.9% |
| |||||||
CIRCOR International, Inc. (a) | 17,426 | 801,596 | ||||||
Helios Technologies, Inc. | 13,261 | 615,443 | ||||||
RBC Bearings, Inc. (a) | 2,763 | 460,896 | ||||||
|
| |||||||
1,877,935 | ||||||||
|
| |||||||
Miscellaneous – Manufacturing — 2.0% |
| |||||||
ESCO Technologies, Inc. | 11,700 | 966,654 | ||||||
Hillenbrand, Inc. | 7,058 | 279,285 | ||||||
Myers Industries, Inc. | 39,894 | 768,757 | ||||||
|
| |||||||
2,014,696 | ||||||||
|
| |||||||
Transportation — 3.3% |
| |||||||
Genesee & Wyoming, Inc. Class A (a) | 8,693 | 869,300 | ||||||
International Seaways, Inc. (a) | 24,949 | 474,031 | ||||||
Kirby Corp. (a) | 5,050 | 398,950 | ||||||
Landstar System, Inc. | 10,600 | 1,144,694 | ||||||
Universal Logistics Holdings, Inc. | 13,899 | 312,311 | ||||||
|
| |||||||
3,199,286 | ||||||||
|
| |||||||
15,962,585 | ||||||||
|
| |||||||
Technology — 5.6% |
| |||||||
Computers — 1.7% |
| |||||||
Conduent, Inc. (a) | 20,909 | 200,517 | ||||||
Cray, Inc. (a) | 4,908 | 170,897 | ||||||
Cubic Corp. | 13,509 | 871,060 | ||||||
Endava PLC Sponsored ADR (a) | 2,684 | 108,004 |
Number of Shares | Value | |||||||
Parsons Corp. (a) | 9,183 | $ | 338,486 | |||||
|
| |||||||
1,688,964 | ||||||||
|
| |||||||
Semiconductors — 2.3% |
| |||||||
Cabot Microelectronics Corp. | 6,716 | 739,297 | ||||||
Cypress Semiconductor Corp. | 14,255 | 317,031 | ||||||
Entegris, Inc. | 9,155 | 341,664 | ||||||
MaxLinear, Inc. (a) | 21,756 | 509,961 | ||||||
Rudolph Technologies, Inc. (a) | 10,200 | 281,826 | ||||||
|
| |||||||
2,189,779 | ||||||||
|
| |||||||
Software — 1.6% |
| |||||||
Ceridian HCM Holding, Inc. (a) | 13,015 | 653,353 | ||||||
Cision Ltd. (a) | 34,045 | 399,348 | ||||||
The Descartes Systems Group, Inc. (a) | 2,800 | 103,460 | ||||||
RealPage, Inc. (a) | 7,013 | 412,715 | ||||||
|
| |||||||
1,568,876 | ||||||||
|
| |||||||
5,447,619 | ||||||||
|
| |||||||
Utilities — 7.8% |
| |||||||
Electric — 3.3% |
| |||||||
MGE Energy, Inc. | 5,700 | 416,556 | ||||||
NorthWestern Corp. | 12,337 | 890,115 | ||||||
PNM Resources, Inc. | 27,133 | 1,381,341 | ||||||
Portland General Electric Co. | 11,164 | 604,754 | ||||||
|
| |||||||
3,292,766 | ||||||||
|
| |||||||
Gas — 3.9% |
| |||||||
Atmos Energy Corp. | 4,900 | 517,244 | ||||||
Chesapeake Utilities Corp. | 12,500 | 1,187,750 | ||||||
ONE Gas, Inc. | 13,801 | 1,246,230 | ||||||
RGC Resources, Inc. | 4,676 | 142,712 | ||||||
Southwest Gas Holdings, Inc. | 8,149 | 730,313 | ||||||
|
| |||||||
3,824,249 | ||||||||
|
| |||||||
Water — 0.6% |
| |||||||
California Water Service Group | 11,176 | 565,841 | ||||||
|
| |||||||
7,682,856 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $75,176,249) | 96,298,406 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $75,176,249) | 96,298,406 | |||||||
|
| |||||||
MUTUAL FUNDS — 0.7% |
| |||||||
Diversified Financial Services — 0.7% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (c) | 652,099 | 652,099 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $652,099) | 652,099 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $75,828,348) | 96,950,505 | |||||||
|
|
The accompanying notes are an integral part of the financial statements.
79
Table of Contents
MML Small Company Value Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
SHORT-TERM INVESTMENTS — 1.9% |
| |||||||
Mutual Fund — 0.0% |
| |||||||
T. Rowe Price Government Reserve Investment Fund | 1,048 | $ | 1,048 | |||||
|
| |||||||
TOTAL MUTUAL FUND (Cost $1,048) | 1,048 | |||||||
|
| |||||||
Principal Amount | ||||||||
Repurchase Agreement — 1.9% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (d) | $ | 1,908,125 | 1,908,125 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $1,909,173) | 1,909,173 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 100.8% (Cost $77,737,521) (e) | 98,859,678 | |||||||
Other Assets/(Liabilities) — (0.8)% | (829,421 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 98,030,257 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $632,634 or 0.65% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers.(Note 2). |
(c) | Represents investment of security lending collateral.(Note 2). |
(d) | Maturity value of $1,908,323. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $1,950,472. |
(e) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
80
Table of Contents
June 30, 2019 (Unaudited)
Number of Shares | Value | |||||||
EQUITIES — 98.6% |
| |||||||
COMMON STOCK — 98.6% |
| |||||||
Basic Materials — 3.0% |
| |||||||
Chemicals — 1.5% |
| |||||||
Orion Engineered Carbons SA | 63,067 | $ | 1,350,265 | |||||
Westlake Chemical Corp. | 25,274 | 1,755,532 | ||||||
|
| |||||||
3,105,797 | ||||||||
|
| |||||||
Iron & Steel — 0.7% |
| |||||||
Carpenter Technology Corp. | 28,984 | 1,390,652 | ||||||
|
| |||||||
Mining — 0.8% |
| |||||||
Alcoa Corp. (a) | 66,380 | 1,553,956 | ||||||
|
| |||||||
6,050,405 | ||||||||
|
| |||||||
Communications — 2.0% |
| |||||||
Internet — 0.7% |
| |||||||
Criteo SA (a) | 85,055 | 1,463,797 | ||||||
|
| |||||||
Media — 0.8% |
| |||||||
Houghton Mifflin Harcourt Co. (a) | 157,480 | 907,085 | ||||||
Scholastic Corp. | 19,757 | 656,722 | ||||||
|
| |||||||
1,563,807 | ||||||||
|
| |||||||
Telecommunications — 0.5% |
| |||||||
Finisar Corp. (a) | 43,914 | 1,004,313 | ||||||
|
| |||||||
4,031,917 | ||||||||
|
| |||||||
Consumer, Cyclical — 13.8% |
| |||||||
Airlines — 3.9% |
| |||||||
Alaska Air Group, Inc. | 48,460 | 3,097,079 | ||||||
Hawaiian Holdings, Inc. | 71,714 | 1,967,115 | ||||||
SkyWest, Inc. | 44,350 | 2,690,714 | ||||||
|
| |||||||
7,754,908 | ||||||||
|
| |||||||
Apparel — 1.7% |
| |||||||
Capri Holdings Ltd. (a) | 41,840 | 1,451,011 | ||||||
Skechers U.S.A., Inc. Class A (a) | 65,188 | 2,052,770 | ||||||
|
| |||||||
3,503,781 | ||||||||
|
| |||||||
Auto Parts & Equipment — 2.3% |
| |||||||
Cooper-Standard Holding, Inc. (a) | 23,715 | 1,086,621 | ||||||
Dana, Inc. | 79,725 | 1,589,717 | ||||||
Lear Corp. | 13,118 | 1,826,944 | ||||||
|
| |||||||
4,503,282 | ||||||||
|
| |||||||
Home Builders — 2.3% |
| |||||||
Lennar Corp. Class A | 45,244 | 2,192,524 | ||||||
Taylor Morrison Home Corp. (a) | 116,617 | 2,444,293 | ||||||
|
| |||||||
4,636,817 | ||||||||
|
| |||||||
Leisure Time — 0.6% |
| |||||||
Callaway Golf Co. | 70,101 | 1,202,933 | ||||||
|
| |||||||
Office Furnishings — 0.7% |
| |||||||
Steelcase, Inc. Class A | 76,924 | 1,315,400 | ||||||
|
|
Number of Shares | Value | |||||||
Retail — 2.3% |
| |||||||
Bloomin’ Brands, Inc. | 86,142 | $ | 1,628,945 | |||||
BMC Stock Holdings, Inc. (a) | 49,021 | 1,039,245 | ||||||
The Michaels Cos., Inc. (a) | 117,600 | 1,023,120 | ||||||
Signet Jewelers Ltd. | 48,680 | 870,399 | ||||||
|
| |||||||
4,561,709 | ||||||||
|
| |||||||
27,478,830 | ||||||||
|
| |||||||
Consumer,Non-cyclical — 11.1% |
| |||||||
Beverages — 1.2% |
| |||||||
Cott Corp. | 176,804 | 2,360,333 | ||||||
|
| |||||||
Commercial Services — 3.3% |
| |||||||
Booz Allen Hamilton Holding Corp. | 18,292 | 1,211,113 | ||||||
Quanta Services, Inc. | 58,301 | 2,226,515 | ||||||
Sotheby’s (a) (b) | 53,090 | 3,086,122 | ||||||
|
| |||||||
6,523,750 | ||||||||
|
| |||||||
Foods — 3.7% |
| |||||||
Ingredion, Inc. | 14,170 | 1,168,883 | ||||||
Nomad Foods Ltd. (a) | 148,246 | 3,166,535 | ||||||
US Foods Holding Corp. (a) | 87,460 | 3,127,570 | ||||||
|
| |||||||
7,462,988 | ||||||||
|
| |||||||
Health Care – Services — 2.9% |
| |||||||
ICON PLC (a) | 14,523 | 2,236,106 | ||||||
Molina Healthcare, Inc. (a) | 16,212 | 2,320,585 | ||||||
WellCare Health Plans, Inc. (a) | 4,207 | 1,199,290 | ||||||
|
| |||||||
5,755,981 | ||||||||
|
| |||||||
22,103,052 | ||||||||
|
| |||||||
Energy — 5.8% |
| |||||||
Oil & Gas — 2.4% |
| |||||||
Cimarex Energy Co. | 14,774 | 876,541 | ||||||
Oasis Petroleum, Inc. (a) | 205,120 | 1,165,082 | ||||||
QEP Resources, Inc. (a) | 218,411 | 1,579,112 | ||||||
SM Energy Co. | 88,850 | 1,112,402 | ||||||
|
| |||||||
4,733,137 | ||||||||
|
| |||||||
Oil & Gas Services — 3.4% |
| |||||||
Dril-Quip, Inc. (a) | 34,444 | 1,653,312 | ||||||
MRC Global, Inc. (a) | 86,333 | 1,478,021 | ||||||
Oil States International, Inc. (a) | 74,390 | 1,361,337 | ||||||
Patterson-UTI Energy, Inc. | 130,217 | 1,498,797 | ||||||
RPC, Inc. (b) | 128,237 | 924,589 | ||||||
|
| |||||||
6,916,056 | ||||||||
|
| |||||||
11,649,193 | ||||||||
|
| |||||||
Financial — 34.9% |
| |||||||
Banks — 9.8% |
| |||||||
Associated Banc-Corp. | 97,347 | 2,057,916 | ||||||
BankUnited, Inc. | 78,865 | 2,660,905 | ||||||
Comerica, Inc. | 31,680 | 2,301,235 | ||||||
Synovus Financial Corp. | 69,530 | 2,433,550 |
The accompanying notes are an integral part of the financial statements.
81
Table of Contents
MML Small/Mid Cap Value Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Texas Capital Bancshares, Inc. (a) | 37,544 | $ | 2,304,075 | |||||
Umpqua Holdings Corp. | 149,238 | 2,475,858 | ||||||
Webster Financial Corp. | 46,443 | 2,218,582 | ||||||
Zions Bancorp NA | 67,775 | 3,116,295 | ||||||
|
| |||||||
19,568,416 | ||||||||
|
| |||||||
Diversified Financial Services — 0.9% |
| |||||||
OneMain Holdings, Inc. | 50,108 | 1,694,152 | ||||||
|
| |||||||
Insurance — 10.3% |
| |||||||
American Financial Group, Inc. | 24,261 | 2,486,025 | ||||||
Essent Group Ltd. (a) | 49,173 | 2,310,639 | ||||||
Everest Re Group Ltd. | 14,108 | 3,487,215 | ||||||
First American Financial Corp. | 42,950 | 2,306,415 | ||||||
The Hanover Insurance Group, Inc. | 12,280 | 1,575,524 | ||||||
Kemper Corp. | 14,781 | 1,275,452 | ||||||
Old Republic International Corp. | 83,533 | 1,869,469 | ||||||
Reinsurance Group of America, Inc. | 23,746 | 3,705,088 | ||||||
Selective Insurance Group, Inc. | 21,667 | 1,622,642 | ||||||
|
| |||||||
20,638,469 | ||||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 12.6% |
| |||||||
American Campus Communities, Inc. | 56,792 | 2,621,519 | ||||||
Americold Realty Trust | 36,600 | 1,186,572 | ||||||
Camden Property Trust | 31,962 | 3,336,513 | ||||||
Cousins Properties, Inc. | 46,104 | 1,667,582 | ||||||
CubeSmart | 92,280 | 3,085,843 | ||||||
Easterly Government Properties, Inc. | 31,071 | 562,696 | ||||||
Empire State Realty Trust, Inc. Class A | 158,294 | 2,344,334 | ||||||
MGM Growth Properties LLC Class A | 74,577 | 2,285,785 | ||||||
Park Hotels & Resorts, Inc. | 79,944 | 2,203,256 | ||||||
STAG Industrial, Inc. | 90,270 | 2,729,765 | ||||||
Sun Communities, Inc. | 24,064 | 3,084,764 | ||||||
|
| |||||||
25,108,629 | ||||||||
|
| |||||||
Savings & Loans — 1.3% |
| |||||||
Sterling Bancorp | 119,920 | 2,551,898 | ||||||
|
| |||||||
69,561,564 | ||||||||
|
| |||||||
Industrial — 11.7% |
| |||||||
Aerospace & Defense — 0.9% |
| |||||||
AAR Corp. | 47,953 | 1,764,191 | ||||||
|
| |||||||
Building Materials — 0.6% |
| |||||||
Masonite International Corp. (a) | 21,825 | 1,149,741 | ||||||
|
| |||||||
Electrical Components & Equipment — 1.1% |
| |||||||
EnerSys | 32,942 | 2,256,527 | ||||||
|
| |||||||
Electronics — 1.9% |
| |||||||
Avnet, Inc. | 59,770 | 2,705,788 | ||||||
TTM Technologies, Inc. (a) | 103,316 | 1,053,823 | ||||||
|
| |||||||
3,759,611 | ||||||||
|
|
Number of Shares | Value | |||||||
Engineering & Construction — 1.2% |
| |||||||
Granite Construction, Inc. | 27,247 | $ | 1,312,760 | |||||
Tutor Perini Corp. (a) | 81,340 | 1,128,186 | ||||||
|
| |||||||
2,440,946 | ||||||||
|
| |||||||
Hand & Machine Tools — 1.9% |
| |||||||
Kennametal, Inc. | 41,165 | 1,522,693 | ||||||
Regal Beloit Corp. | 26,760 | 2,186,560 | ||||||
|
| |||||||
3,709,253 | ||||||||
|
| |||||||
Machinery – Construction & Mining — 0.8% |
| |||||||
Terex Corp. | 50,570 | 1,587,898 | ||||||
|
| |||||||
Miscellaneous – Manufacturing — 0.9% |
| |||||||
Trinseo SA | 42,920 | 1,817,233 | ||||||
|
| |||||||
Packaging & Containers — 2.0% |
| |||||||
Graphic Packaging Holding Co. | 162,997 | 2,278,698 | ||||||
Sealed Air Corp. | 40,106 | 1,715,735 | ||||||
|
| |||||||
3,994,433 | ||||||||
|
| |||||||
Transportation — 0.4% |
| |||||||
Atlas Air Worldwide Holdings, Inc. (a) | 18,742 | 836,643 | ||||||
|
| |||||||
23,316,476 | ||||||||
|
| |||||||
Technology — 10.7% |
| |||||||
Computers — 4.6% |
| |||||||
Amdocs Ltd. | 34,658 | 2,151,915 | ||||||
Genpact Ltd. | 55,500 | 2,113,995 | ||||||
NCR Corp. (a) | 92,850 | 2,887,635 | ||||||
NetScout Systems, Inc. (a) | 79,610 | 2,021,298 | ||||||
|
| |||||||
9,174,843 | ||||||||
|
| |||||||
Semiconductors — 2.9% |
| |||||||
Cypress Semiconductor Corp. | 114,337 | 2,542,855 | ||||||
Kulicke & Soffa Industries, Inc. | 61,129 | 1,378,459 | ||||||
MaxLinear, Inc. (a) | 78,597 | 1,842,314 | ||||||
|
| |||||||
5,763,628 | ||||||||
|
| |||||||
Software — 3.2% |
| |||||||
CommVault Systems, Inc. (a) | 36,270 | 1,799,717 | ||||||
Nuance Communications, Inc. (a) | 163,578 | 2,612,341 | ||||||
Verint Systems, Inc. (a) | 36,745 | 1,976,146 | ||||||
|
| |||||||
6,388,204 | ||||||||
|
| |||||||
21,326,675 | ||||||||
|
| |||||||
Utilities — 5.6% |
| |||||||
Electric — 4.5% |
| |||||||
Alliant Energy Corp. | 63,054 | 3,094,690 | ||||||
Black Hills Corp. | 23,872 | 1,866,074 | ||||||
PNM Resources, Inc. | 36,355 | 1,850,833 | ||||||
Portland General Electric Co. | 41,710 | 2,259,431 | ||||||
|
| |||||||
9,071,028 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
82
Table of Contents
MML Small/Mid Cap Value Fund – Portfolio of Investments(Continued)
Number of Shares | Value | |||||||
Gas — 1.1% |
| |||||||
Southwest Gas Holdings, Inc. | 24,160 | $ | 2,165,219 | |||||
|
| |||||||
11,236,247 | ||||||||
|
| |||||||
TOTAL COMMON STOCK (Cost $189,614,359) | 196,754,359 | |||||||
|
| |||||||
TOTAL EQUITIES (Cost $189,614,359) | 196,754,359 | |||||||
|
| |||||||
MUTUAL FUNDS — 1.8% |
| |||||||
Diversified Financial Services — 1.8% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (c) | 3,541,060 | 3,541,060 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $3,541,060) | 3,541,060 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $193,155,419) | 200,295,419 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 1.2% |
| |||||||
Repurchase Agreement — 1.2% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (d) | $ | 2,287,421 | 2,287,421 | |||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $2,287,421) | 2,287,421 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 101.6% (Cost $195,442,840) (e) | 202,582,840 | |||||||
Other Assets/(Liabilities) — (1.6)% | (3,112,349 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 199,470,491 | ||||||
|
|
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Non-income producing security. |
(b) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $3,444,633 or 1.73% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers.(Note 2). |
(c) | Represents investment of security lending collateral.(Note 2). |
(d) | Maturity value of $2,287,660. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $2,337,510. |
(e) | See Note 6 for aggregate cost for federal tax purposes. |
The accompanying notes are an integral part of the financial statements.
83
Table of Contents
June 30, 2019 (Unaudited)
Principal Amount | Value | |||||||
BONDS & NOTES — 96.6% |
| |||||||
BANK LOANS — 0.2% |
| |||||||
Advertising — 0.0% |
| |||||||
Lamar Media Corp., 2018 Term Loan B, 3 mo. LIBOR + 1.750% | $ | 98,750 | $ | 98,749 | ||||
|
| |||||||
Diversified Financial Services — 0.2% |
| |||||||
Delos Finance Sarl, 2018 Term Loan B, 3 mo. LIBOR + 1.750% | 888,333 | 887,036 | ||||||
|
| |||||||
TOTAL BANK LOANS (Cost $987,637) | 985,785 | |||||||
|
| |||||||
CORPORATE DEBT — 26.9% |
| |||||||
Advertising — 0.0% |
| |||||||
Clear Channel International BV | 80,000 | 81,800 | ||||||
|
| |||||||
Aerospace & Defense — 0.4% |
| |||||||
L3 Technologies, Inc. | 640,000 | 698,946 | ||||||
Northrop Grumman Corp. | 640,000 | 656,978 | ||||||
|
| |||||||
1,355,924 | ||||||||
|
| |||||||
Agriculture — 0.2% |
| |||||||
BAT Capital Corp. | 400,000 | 379,043 | ||||||
4.540% 8/15/47 | 300,000 | 278,247 | ||||||
Reynolds American, Inc. | 65,000 | 70,006 | ||||||
|
| |||||||
727,296 | ||||||||
|
| |||||||
Airlines — 0.5% |
| |||||||
Continental Airlines Pass-Through Trust | 1,481,868 | 1,503,207 | ||||||
Northwest Airlines Pass-Through Trust | 323,565 | 352,866 | ||||||
|
| |||||||
1,856,073 | ||||||||
|
| |||||||
Auto Manufacturers — 0.9% |
| |||||||
Ford Motor Credit Co. LLC | 575,000 | 572,817 | ||||||
3.484% FRN 10/12/21 (b) | 405,000 | 398,630 | ||||||
5.596% 1/07/22 | 1,246,000 | 1,319,003 | ||||||
8.125% 1/15/20 | 805,000 | 827,790 | ||||||
General Motors Financial Co., Inc. | 500,000 | 499,728 | ||||||
|
| |||||||
3,617,968 | ||||||||
|
| |||||||
Banks — 3.7% |
| |||||||
Bank of America Corp. | 1,085,000 | 1,089,870 |
Principal Amount | Value | |||||||
3.004% VRN 12/20/23 (b) | $ | 1,239,000 | $ | 1,261,730 | ||||
4.271% VRN 7/23/29 (b) | 1,750,000 | 1,911,344 | ||||||
Citigroup, Inc. | 750,000 | 762,820 | ||||||
The Goldman Sachs Group, Inc. | 645,000 | 660,090 | ||||||
3.814% VRN 4/23/29 (b) | 650,000 | 679,357 | ||||||
4.223% VRN 5/01/29 (b) | 195,000 | 209,139 | ||||||
JP Morgan Chase & Co. | 895,000 | 911,069 | ||||||
4.023% VRN 12/05/24 (b) | 530,000 | 563,279 | ||||||
4.203% VRN 7/23/29 (b) | 705,000 | 770,820 | ||||||
Lloyds Banking Group PLC | 430,000 | 430,714 | ||||||
3.900% 3/12/24 | 400,000 | 416,512 | ||||||
Morgan Stanley 3 mo. USD LIBOR + 0.930% | 510,000 | 513,227 | ||||||
Santander UK Group Holdings PLC | 645,000 | 651,315 | ||||||
Santander UK PLC | 1,250,000 | 1,270,757 | ||||||
Wells Fargo & Co. | 195,000 | 196,408 | ||||||
3.000% 4/22/26 | 475,000 | 480,198 | ||||||
3.000% 10/23/26 | 845,000 | 853,739 | ||||||
3.550% 9/29/25 | 725,000 | 757,384 | ||||||
|
| |||||||
14,389,772 | ||||||||
|
| |||||||
Beverages — 0.4% |
| |||||||
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. | 600,000 | 668,059 | ||||||
Anheuser-Busch InBev Worldwide, Inc. | 435,000 | 469,822 | ||||||
Bacardi Ltd. | 195,000 | 208,618 | ||||||
5.300% 5/15/48 (a) | 210,000 | 221,022 | ||||||
|
| |||||||
1,567,521 | ||||||||
|
| |||||||
Biotechnology — 0.7% |
| |||||||
Amgen, Inc. | 500,000 | 531,162 | ||||||
Baxalta, Inc. | 216,000 | 216,646 | ||||||
Celgene Corp. | 440,000 | 471,508 | ||||||
5.000% 8/15/45 | 750,000 | 890,086 | ||||||
Gilead Sciences, Inc. | 525,000 | 554,266 | ||||||
|
| |||||||
2,663,668 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
84
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
Chemicals — 0.2% |
| |||||||
International Flavors & Fragrances, Inc. | $ | 570,000 | $ | 633,137 | ||||
|
| |||||||
Commercial Services — 0.2% |
| |||||||
IHS Markit Ltd. | 253,000 | 261,096 | ||||||
4.750% 2/15/25 (a) | 120,000 | 128,712 | ||||||
4.750% 8/01/28 | 385,000 | 420,582 | ||||||
Matthews International Corp. | 120,000 | 118,050 | ||||||
|
| |||||||
928,440 | ||||||||
|
| |||||||
Computers — 0.3% |
| |||||||
Apple, Inc. | 850,000 | 1,008,172 | ||||||
|
| |||||||
Cosmetics & Personal Care — 0.0% |
| |||||||
First Quality Finance Co., Inc. | 113,000 | 113,847 | ||||||
|
| |||||||
Diversified Financial Services — 1.5% |
| |||||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | 490,000 | 505,291 | ||||||
Air Lease Corp. | 575,000 | 588,823 | ||||||
4.750% 3/01/20 | 855,000 | 867,228 | ||||||
GE Capital International Funding Co. Unlimited Co. | 1,095,000 | 1,089,801 | ||||||
4.418% 11/15/35 | 2,295,000 | 2,271,492 | ||||||
Raymond James Financial, Inc. | 400,000 | 451,235 | ||||||
|
| |||||||
5,773,870 | ||||||||
|
| |||||||
Electric — 2.4% |
| |||||||
AEP Transmission Co. LLC | 855,000 | 868,746 | ||||||
Duke Energy Carolinas LLC | 1,000,000 | 1,066,993 | ||||||
Duquesne Light Holdings, Inc. | 1,000,000 | 1,043,064 | ||||||
Jersey Central Power & Light Co. | 800,000 | 869,812 | ||||||
6.400% 5/15/36 | 425,000 | 528,300 | ||||||
LG&E & KU Energy LLC | 1,200,000 | 1,243,729 | ||||||
MidAmerican Energy Co. | 1,400,000 | 1,642,743 | ||||||
NextEra Energy Capital Holdings, Inc. | 2,000,000 | 1,999,275 | ||||||
|
| |||||||
9,262,662 | ||||||||
|
| |||||||
Entertainment — 0.1% |
| |||||||
Churchill Downs, Inc. | 242,000 | 253,344 | ||||||
|
|
Principal Amount | Value | |||||||
Foods — 1.0% | ||||||||
Campbell Soup Co. | $ | 650,000 | $ | 658,352 | ||||
Chobani LLC/Chobani Finance Corp., Inc. | 85,000 | 79,475 | ||||||
General Mills, Inc. | 160,000 | 172,402 | ||||||
Kraft Heinz Foods Co. | 750,000 | 750,136 | ||||||
3.950% 7/15/25 | 500,000 | 520,410 | ||||||
4.625% 1/30/29 | 1,020,000 | 1,097,525 | ||||||
The Kroger Co. | 225,000 | 249,288 | ||||||
Pilgrim’s Pride Corp. | 152,000 | 157,510 | ||||||
Tyson Foods, Inc. | 175,000 | 186,128 | ||||||
|
| |||||||
3,871,226 | ||||||||
|
| |||||||
Gas — 0.2% |
| |||||||
CenterPoint Energy Resources Corp. | 595,000 | 730,629 | ||||||
Southern Co. Gas Capital Corp. | 100,000 | 99,734 | ||||||
|
| |||||||
830,363 | ||||||||
|
| |||||||
Health Care – Products — 0.5% |
| |||||||
Becton Dickinson and Co. | 440,000 | 439,667 | ||||||
2.894% 6/06/22 | 400,000 | 405,434 | ||||||
Hologic, Inc. | 160,000 | 162,400 | ||||||
Teleflex, Inc. | 107,000 | 110,076 | ||||||
Zimmer Biomet Holdings, Inc. | 655,000 | 654,302 | ||||||
|
| |||||||
1,771,879 | ||||||||
|
| |||||||
Health Care – Services — 1.7% |
| |||||||
Aetna, Inc. | 485,000 | 487,915 | ||||||
Anthem, Inc. | 500,000 | 509,136 | ||||||
3.300% 1/15/23 | 530,000 | 543,732 | ||||||
Catalent Pharma Solutions, Inc. | 240,000 | 243,300 | ||||||
Centene Corp. | 422,000 | 429,912 | ||||||
CHS/Community Health Systems, Inc. | 83,000 | 79,863 | ||||||
8.625% 1/15/24 (a) | 60,000 | 60,000 | ||||||
Cigna Holding Co. | 945,000 | 935,404 |
The accompanying notes are an integral part of the financial statements.
85
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
Fresenius Medical Care US Finance II, Inc. | $ | 485,000 | $ | 485,906 | ||||
HCA, Inc. | 112,000 | 122,017 | ||||||
5.125% 6/15/39 | 230,000 | 239,136 | ||||||
5.250% 6/15/49 | 525,000 | 545,848 | ||||||
5.875% 2/01/29 | 100,000 | 109,625 | ||||||
6.500% 2/15/20 | 196,000 | 200,511 | ||||||
Molina Healthcare, Inc. | 225,000 | 234,000 | ||||||
Providence St. Joseph Health Obligated Group | 845,000 | 842,059 | ||||||
Tenet Healthcare Corp. | 200,000 | 203,250 | ||||||
4.500% 4/01/21 | 26,000 | 26,423 | ||||||
4.625% 7/15/24 | 184,000 | 186,300 | ||||||
6.000% 10/01/20 | 53,000 | 54,560 | ||||||
WellCare Health Plans, Inc. | 155,000 | 164,300 | ||||||
|
| |||||||
6,703,197 | ||||||||
|
| |||||||
Household Products & Wares — 0.1% |
| |||||||
Central Garden & Pet Co. | 36,000 | 37,350 | ||||||
5.125% 2/01/28 | 123,000 | 120,847 | ||||||
Spectrum Brands, Inc. | 245,000 | 254,494 | ||||||
|
| |||||||
412,691 | ||||||||
|
| |||||||
Insurance — 0.6% |
| |||||||
Berkshire Hathaway Finance Corp. | 500,000 | 557,717 | ||||||
4.400% 5/15/42 | 750,000 | 843,100 | ||||||
Farmers Exchange Capital III 3 mo. USD LIBOR + 3.454% | 970,000 | 1,047,600 | ||||||
|
| |||||||
2,448,417 | ||||||||
|
| |||||||
Media — 0.6% |
| |||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | 262,000 | 270,515 | ||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | 810,000 | 815,743 | ||||||
6.484% 10/23/45 | 200,000 | 235,662 | ||||||
Comcast Corp. | 500,000 | 527,260 | ||||||
CSC Holdings LLC | 200,000 | 209,740 | ||||||
6.500% 2/01/29 (a) | 179,000 | 195,334 |
Principal Amount | Value | |||||||
Virgin Media Secured Finance PLC | $ | 200,000 | $ | 204,942 | ||||
|
| |||||||
2,459,196 | ||||||||
|
| |||||||
Miscellaneous – Manufacturing — 0.9% |
| |||||||
General Electric Co. | 875,000 | 887,431 | ||||||
4.625% 1/07/21 | 1,020,000 | 1,049,731 | ||||||
6.750% 3/15/32 | 300,000 | 369,623 | ||||||
5.875% 1/14/38 | 244,000 | 275,469 | ||||||
4.125% 10/09/42 | 150,000 | 138,156 | ||||||
Siemens Financieringsmaatschappij NV | 550,000 | 543,248 | ||||||
|
| |||||||
3,263,658 | ||||||||
|
| |||||||
Oil & Gas — 1.0% |
| |||||||
Antero Resources Corp. | 327,000 | 301,658 | ||||||
5.125% 12/01/22 | 176,000 | 168,960 | ||||||
5.625% 6/01/23 | 50,000 | 48,260 | ||||||
Canadian Natural Resources Ltd. | 171,000 | 177,534 | ||||||
Centennial Resource Production LLC | 105,000 | 106,050 | ||||||
Diamondback Energy, Inc. | 16,000 | 16,460 | ||||||
Gulfport Energy Corp. | 47,000 | 36,366 | ||||||
KazMunayGas National Co. JSC | 200,000 | 221,440 | ||||||
Matador Resources Co. | 105,000 | 106,050 | ||||||
Noble Energy, Inc. | 140,000 | 150,853 | ||||||
Parsley Energy LLC / Parsley Finance Corp. | 210,000 | 215,250 | ||||||
Petrobras Global Finance BV | 200,000 | 208,480 | ||||||
Petroleos Mexicanos | 400,000 | 387,000 | ||||||
6.625% 6/15/35 | 900,000 | 831,375 | ||||||
Range Resources Corp. | 157,000 | 137,768 | ||||||
Shell International Finance BV | 415,000 | 477,708 | ||||||
Transocean Guardian Ltd. | 143,640 | 145,974 | ||||||
Transocean Pontus Ltd. | 163,485 | 168,390 | ||||||
Transocean Poseidon Ltd. | 54,000 | 57,071 | ||||||
|
| |||||||
3,962,647 | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
86
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
Oil & Gas Services — 0.0% |
| |||||||
Transocean Proteus Ltd. | $ | 62,250 | $ | 64,195 | ||||
USA Compression Partners LP / USA Compression Finance Corp. | 96,000 | 100,811 | ||||||
|
| |||||||
165,006 | ||||||||
|
| |||||||
Packaging & Containers — 0.7% |
| |||||||
Amcor Finance USA, Inc. | 650,000 | 663,198 | ||||||
Ball Corp. | 350,000 | 357,700 | ||||||
Graphic Packaging International LLC | 200,000 | 203,000 | ||||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu | 591,156 | 592,634 | ||||||
Sealed Air Corp. | 190,000 | 202,350 | ||||||
Silgan Holdings, Inc. | 250,000 | 251,875 | ||||||
WRKCo, Inc. | 385,000 | 420,906 | ||||||
|
| |||||||
2,691,663 | ||||||||
|
| |||||||
Pharmaceuticals — 1.6% |
| |||||||
AbbVie, Inc. | 250,000 | 258,294 | ||||||
4.875% 11/14/48 | 400,000 | 421,001 | ||||||
Allergan Finance LLC | 500,000 | 506,204 | ||||||
Allergan Funding SCS | 250,000 | 259,443 | ||||||
Bausch Health Cos., Inc. | 28,000 | 28,224 | ||||||
5.750% 8/15/27 (a) | 88,000 | 92,486 | ||||||
Bayer US Finance II LLC | 485,000 | 495,203 | ||||||
Bayer US Finance Il LLC | 850,000 | 896,307 | ||||||
Bristol-Myers Squibb Co. | 310,000 | 334,308 | ||||||
Cigna Corp. | 800,000 | 851,953 | ||||||
CVS Health Corp. | 1,090,000 | 1,160,980 | ||||||
Shire Acquisitions Investments Ireland DAC | 500,000 | 499,225 | ||||||
Teva Pharmaceutical Finance Netherlands III BV | 277,000 | 276,169 | ||||||
|
| |||||||
6,079,797 | ||||||||
|
|
Principal Amount | Value | |||||||
Pipelines — 1.4% |
| |||||||
Energy Transfer Operating LP | $ | 400,000 | $ | 406,740 | ||||
Energy Transfer Operating LP | 254,000 | 283,928 | ||||||
5.875% 1/15/24 | 400,000 | 445,266 | ||||||
6.250% 4/15/49 | 244,000 | 289,103 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. | 600,000 | 639,918 | ||||||
Rockies Express Pipeline LLC | 200,000 | 207,209 | ||||||
5.625% 4/15/20 (a) | 381,000 | 387,191 | ||||||
Ruby Pipeline LLC | 590,909 | 603,170 | ||||||
Sabine Pass Liquefaction LLC | 290,000 | 322,507 | ||||||
Sunoco Logistics Partners Operations LP | 644,000 | 683,995 | ||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | 72,000 | 79,826 | ||||||
TC PipeLines LP | 500,000 | 508,934 | ||||||
TransMontaigne Partners LP/TLP Finance Corp. | 81,000 | 77,963 | ||||||
Williams Cos., Inc. | 570,000 | 608,682 | ||||||
|
| |||||||
5,544,432 | ||||||||
|
| |||||||
Real Estate Investment Trusts (REITS) — 2.3% |
| |||||||
Alexandria Real Estate Equities, Inc. | 450,000 | 463,077 | ||||||
American Campus Communities Operating Partnership LP | 500,000 | 505,303 | ||||||
3.750% 4/15/23 | 650,000 | 672,073 | ||||||
Boston Properties LP | 430,000 | 438,957 | ||||||
Duke Realty LP | 1,000,000 | 1,021,519 | ||||||
GLP Capital LP/GLP Financing II, Inc. | 190,000 | 203,566 | ||||||
5.300% 1/15/29 | 310,000 | 334,103 | ||||||
5.375% 4/15/26 | 695,000 | 751,608 | ||||||
HCP, Inc. | 500,000 | 524,203 | ||||||
4.250% 11/15/23 | 500,000 | 531,045 | ||||||
Healthcare Realty Trust, Inc. | 235,000 | 240,322 | ||||||
MGM Growth Properties Operating Partnership LP/MGP FinanceCo-Issuer, Inc. | 100,000 | 107,750 |
The accompanying notes are an integral part of the financial statements.
87
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
SBA Communications Corp. | $ | 98,000 | $ | 100,940 | ||||
SL Green Operating Partnership LP | 500,000 | 506,674 | ||||||
Ventas Realty LP | 1,500,000 | 1,553,005 | ||||||
Welltower, Inc. | 830,000 | 874,497 | ||||||
|
| |||||||
8,828,642 | ||||||||
|
| |||||||
Retail — 0.4% |
| |||||||
Alimentation Couche-Tard, Inc. | 195,000 | 195,384 | ||||||
eG Global Finance PLC | 200,000 | 198,440 | ||||||
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC | 210,000 | 215,250 | ||||||
Rite Aid Corp. | 358,000 | 302,063 | ||||||
Walgreens Boots Alliance, Inc. | 400,000 | 415,511 | ||||||
4.800% 11/18/44 | 275,000 | 276,278 | ||||||
|
| |||||||
1,602,926 | ||||||||
|
| |||||||
Savings & Loans — 0.1% |
| |||||||
Nationwide Building Society | 270,000 | 274,977 | ||||||
|
| |||||||
Semiconductors — 0.1% |
| |||||||
NXP BV/NXP Funding LLC | 200,000 | 204,620 | ||||||
|
| |||||||
Software — 0.1% |
| |||||||
Change Healthcare Holdings LLC/Change Healthcare Finance, Inc. | 197,000 | 199,955 | ||||||
IQVIA, Inc. | 200,000 | 206,500 | ||||||
SS&C Technologies, Inc. | 117,000 | 121,387 | ||||||
|
| |||||||
527,842 | ||||||||
|
| |||||||
Telecommunications — 1.8% |
| |||||||
AT&T, Inc. | 160,000 | 168,985 | ||||||
4.350% 6/15/45 | 250,000 | 249,919 | ||||||
4.800% 6/15/44 | 1,300,000 | 1,372,175 | ||||||
5.150% 11/15/46 | 530,000 | 586,046 | ||||||
5.250% 3/01/37 | 425,000 | 476,978 | ||||||
Intelsat Jackson Holdings SA | 171,000 | 156,037 | ||||||
9.750% 7/15/25 (a) | 337,000 | 343,740 | ||||||
Level 3 Financing, Inc. | 149,000 | 153,843 |
Principal Amount | Value | |||||||
Sprint Capital Corp. | $ | 180,000 | $ | 208,350 | ||||
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC | 362,813 | 362,907 | ||||||
4.738% 9/20/29 (a) | 870,000 | 902,625 | ||||||
T-Mobile USA, Inc. | 104,000 | 106,470 | ||||||
4.750% 2/01/28 (c) | 119,000 | 122,433 | ||||||
6.000% 3/01/23 | 206,000 | 210,635 | ||||||
Verizon Communications, Inc. | 510,000 | 552,198 | ||||||
4.329% 9/21/28 | 300,000 | 332,459 | ||||||
5.250% 3/16/37 | 230,000 | 275,110 | ||||||
Vodafone Group PLC | 202,000 | 212,254 | ||||||
|
| |||||||
6,793,164 | ||||||||
|
| |||||||
Transportation — 0.1% |
| |||||||
Union Pacific Corp. | 425,000 | 465,029 | ||||||
|
| |||||||
Trucking & Leasing — 0.2% |
| |||||||
Park Aerospace Holdings Ltd. | 160,000 | 165,146 | ||||||
5.250% 8/15/22 (a) | 400,000 | 422,320 | ||||||
|
| |||||||
587,466 | ||||||||
|
| |||||||
TOTAL CORPORATE DEBT (Cost $99,808,595) | 103,722,332 | |||||||
|
| |||||||
MUNICIPAL OBLIGATIONS — 1.3% |
| |||||||
City of New York NY | 750,000 | 893,970 | ||||||
Jersey City Municipal Utilities Authority | 850,000 | 961,741 | ||||||
Los Angeles Unified School District | 1,000,000 | 1,218,930 | ||||||
New York State Dormitory Authority | 750,000 | 904,980 | ||||||
State of California | 850,000 | 881,994 | ||||||
|
| |||||||
4,861,615 | ||||||||
|
| |||||||
TOTAL MUNICIPAL OBLIGATIONS (Cost $4,946,955) | 4,861,615 | |||||||
|
| |||||||
NON-U.S. GOVERNMENT AGENCY OBLIGATIONS — 14.6% |
| |||||||
Commercial MBS — 2.0% |
| |||||||
BAMLL Commercial Mortgage Securities Trust, Series 2018-PARK, Class A, | 620,000 | 684,796 |
The accompanying notes are an integral part of the financial statements.
88
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
CALI Mortgage Trust, Series 2019-101C, Class A | $ | 415,000 | $ | 455,666 | ||||
CGRBS Commercial Mortgage Trust, Series 2013-VN05, Class A | 420,000 | 438,241 | ||||||
Citigroup Commercial Mortgage Trust, Series 2013-375P, Class A | 340,000 | 350,348 | ||||||
COMM Mortgage Trust | ||||||||
Series 2016-787S, Class A, | 340,000 | 358,046 | ||||||
Series 2013-300P, Class A1, | 325,000 | 350,705 | ||||||
Core Industrial Trust,Series 2015-CALW, Class A | 412,672 | 421,950 | ||||||
Core Industrial Trust 2015-TEXW, Series 2015-TEXW, Class A | 570,686 | 584,046 | ||||||
GS Mortgage Securities Corp Trust, Series 2012-ALOH, Class A | 370,000 | 381,536 | ||||||
Hudson Yards 2019-30HY Mortgage Trust, Series 2019-30HY, Class A | 385,000 | 396,369 | ||||||
J.P. Morgan Chase Commercial Mortgage Securities Trust,Series 2019-OSB, Class A | 385,000 | 404,438 | ||||||
Morgan Stanley Bank of America Merrill Lynch Trust, Series2012-C6, Class A4 | 1,516,944 | 1,539,903 | ||||||
RBS Commercial Funding, Inc. Trust, Series2013-GSP, Class A, | 330,000 | 349,079 | ||||||
SFAVE Commercial Mortgage Securities Trust, Series 2015-5AVE, Class A1, | 370,000 | 383,290 | ||||||
Wells Fargo Commercial Mortgage Trust, Series2010-C1, Class A2 | 500,000 | 508,101 | ||||||
|
| |||||||
7,606,514 | ||||||||
|
| |||||||
Home Equity ABS — 0.9% |
| |||||||
Bear Stearns I Trust, Series2006-HE1, Class 1M1, 1 mo. USD LIBOR + .410% | 8,857 | 8,855 | ||||||
Citigroup Mortgage Loan Trust, Inc., Series2006-HE2, Class M1 | 2,400,000 | 2,350,591 |
Principal Amount | Value | |||||||
Wells Fargo Home Equity Trust,Series 2004-2, Class M3, 1 mo. USD LIBOR + 1.050% | $ | 1,135,123 | $ | 1,132,905 | ||||
|
| |||||||
3,492,351 | ||||||||
|
| |||||||
Other ABS — 2.5% |
| |||||||
Countrywide Asset-Backed Certificates, Series2006-15, Class A3, | 844,359 | 815,134 | ||||||
Dryden XXVI Senior Loan Fund,Series 2013-26A, Class AR, | 975,000 | 968,526 | ||||||
First Frankin Mortgage Loan Trust, Series2005-FF7, Class M2, 1 mo. USD LIBOR + .470% | 93,213 | 93,165 | ||||||
LCM XXI LP, Series 21A, Class AR, | 740,000 | 736,300 | ||||||
Madison Park Funding XXX Ltd.,Series 2018-30A, Class A, | 750,000 | 742,589 | ||||||
Magnetite VII Ltd., Series2012-7A, Class A1R2, | 1,000,000 | 993,771 | ||||||
Magnetite XXI Ltd., Series2019-21A, Class A, | 200,000 | 200,735 | ||||||
Morgan Stanley Capital I, Inc. Trust, Series2006-HE1, Class A4, 1 mo. USD LIBOR + 0.290% | 1,943,420 | 1,886,998 | ||||||
Saxon Asset Securities Trust | ||||||||
Series 2007-2, Class A2C, 1 mo. USD LIBOR + 0.240% | 2,267,328 | 1,943,061 | ||||||
Series2005-1, Class M1, 1 mo. USD LIBOR + 0.690% | 499,170 | 497,938 | ||||||
TCI-Flatiron CLO Ltd., Series2016-1A, Class AR, | 225,000 | 225,069 | ||||||
Voya CLO Ltd., Series2014-3A, Class A1R, | 661,308 | 659,564 | ||||||
|
| |||||||
9,762,850 | ||||||||
|
| |||||||
Student Loans ABS — 4.2% |
| |||||||
Access Group, Inc., Series2015-1, Class A, 1 mo. USD LIBOR + .700% | 634,433 | 625,693 | ||||||
Collegiate Funding Services Education Loan Trust, Series2005-A, Class A4, 3 mo. USD LIBOR + 0.200% | 1,500,000 | 1,446,493 |
The accompanying notes are an integral part of the financial statements.
89
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
Navient Student Loan Trust,Series 2018-3A, Class A3, | $ | 630,000 | $ | 623,936 | ||||
Nelnet Student Loan Trust,Series 2015-1A, Class A, 1 mo. USD LIBOR + 0.590% | 1,143,598 | 1,130,565 | ||||||
Pennsylvania Higher Education Assistance Agency, Series2013-3A, Class A, 1 mo. USD LIBOR + 0.750% | 1,022,922 | 1,016,519 | ||||||
SLC Student Loan Trust, Series2006-2, Class A6, 3 mo. USD LIBOR + 0.160% | 2,300,000 | 2,188,026 | ||||||
SLM Student Loan Trust | ||||||||
Series2012-7, Class A3, 1 mo. USD LIBOR + 0.650% | 901,850 | 885,135 | ||||||
Series2012-2, Class A, 1 mo. USD LIBOR + 0.700% | 1,035,105 | 1,016,314 | ||||||
Series2008-1, Class A4, 3 mo. USD LIBOR + 0.650% | 855,379 | 845,914 | ||||||
Series2012-1, Class A3, 1 mo. USD LIBOR + 0.950% | 879,579 | 875,398 | ||||||
Series2008-6, Class A4, 3 mo. USD LIBOR + 1.100% | 1,336,692 | 1,339,121 | ||||||
Series2008-9, Class A, 3 mo. USD LIBOR + 1.500% | 1,084,725 | 1,096,093 | ||||||
Series2008-5, Class B, 3 mo. USD LIBOR + 1.850% | 700,000 | 705,737 | ||||||
Series2008-9, Class B, 3 mo. USD LIBOR + 2.250% | 1,430,000 | 1,462,584 | ||||||
SLM Student Loan Trust2007-7,Series 2007-7, Class A4, 3 mo. USD LIBOR + .330% | 919,572 | 901,056 | ||||||
|
| |||||||
16,158,584 | ||||||||
|
| |||||||
WL Collateral CMO — 5.0% |
| |||||||
Alternative Loan Trust, Series2005-31, Class 2A1, 1 mo. USD LIBOR + .300% | 1,624,439 | 1,581,862 |
Principal Amount | Value | |||||||
American Home Mortgage Investment Trust, Series2005-1, Class 6A, 6 mo. USD LIBOR + 2.000% | $ | 1,227,718 | $ | 1,241,922 | ||||
Banc of America Funding Trust,Series 2016-R1, Class A1, | 942,701 | 934,942 | ||||||
Chase Mortgage Finance Trust,Series 2007-A1, Class 11A4, | 490,846 | 488,794 | ||||||
Citigroup Mortgage Loan Trust,Series 2005-11, Class A2A, 1 year CMT + 2.400% | 429,594 | 436,598 | ||||||
CSMC Trust, Series 2018-RPL9, Class A, | 1,823,060 | 1,908,482 | ||||||
First Horizon Mortgage Pass-Through Trust, Series2005-AR5, Class 2A1, | 543,671 | 499,245 | ||||||
GS Mortgage-Backed Securities Trust 2018-RPL1, Series 2018-RPL1, Class A1A | 1,702,088 | 1,675,323 | ||||||
HarborView Mortgage Loan Trust, Series2006-10, Class 1A1A, 1 mo. USD LIBOR + .200% | 1,947,714 | 1,744,826 | ||||||
Impac CMB Trust, Series2005-1, Class 1A1, 1 mo. USD LIBOR + .520% | 1,132,481 | 1,095,745 | ||||||
IndyMac Index Mortgage Loan Trust | ||||||||
Series 2006-AR27, Class 1A3, 1 mo. USD LIBOR + .270% | 1,888,049 | 1,301,193 | ||||||
Series 2005-AR19, Class A1, | 966,254 | 825,290 | ||||||
Morgan Stanley Resecuritization Trust, Series2014-R9, Class 3A, 12 mo. MTA + .840% | 704,206 | 693,126 | ||||||
Nomura Asset Acceptance Corp. Alternative Loan Trust,Series 2005-AR1, Class M1, 1 mo. LIBOR + 1.070% | 1,698,032 | 1,626,347 | ||||||
Washington Mutual MortgagePass-Through Certificates | ||||||||
Series 2005-AR13, Class A1A1, 1 mo. USD LIBOR + .290% | 868,658 | 857,457 |
The accompanying notes are an integral part of the financial statements.
90
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
Series2005-AR2, Class 2A21, 1 mo. USD LIBOR + .330% | $ | 855,157 | $ | 834,526 | ||||
Series2006-1 Class 3A2, | 883,115 | 841,780 | ||||||
Wells Fargo Mortgage Backed Securities Trust | ||||||||
Series2006-AR8, Class 3A1, | 667,450 | 669,972 | ||||||
Series2004-DD, Class 2A6, | 126,558 | 126,196 | ||||||
|
| |||||||
19,383,626 | ||||||||
|
| |||||||
TOTALNON-U.S. GOVERNMENT AGENCY OBLIGATIONS (Cost $55,306,680) | 56,403,925 | |||||||
|
| |||||||
SOVEREIGN DEBT OBLIGATIONS — 0.1% |
| |||||||
Oman Government International Bond | 200,000 | 189,302 | ||||||
Russian Foreign Bond | 200,000 | 212,988 | ||||||
|
| |||||||
402,290 | ||||||||
|
| |||||||
TOTAL SOVEREIGN DEBT OBLIGATIONS (Cost $385,300) | 402,290 | |||||||
|
| |||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS AND INSTRUMENTALITIES — 29.6% |
| |||||||
Collateralized Mortgage Obligations — 2.6% |
| |||||||
Federal Home Loan Mortgage Corp. | 956,712 | 970,009 | ||||||
Federal Home Loan Mortgage Corp. Multifamily StructuredPass-Through Certificates Series S8FX, Class A2 | 1,775,000 | 1,857,611 | ||||||
Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates | ||||||||
Series K158, Class A3, | 785,000 | 876,103 | ||||||
Series 4846, Class PA, | 1,090,334 | 1,165,521 | ||||||
Federal Home Loan Mortgage Corp. REMICS Series 4639, Class HZ | 1,440,303 | 1,450,621 | ||||||
Federal National Mortgage Association. REMICS | ||||||||
Series2018-57, Class QA, | 1,206,743 | 1,240,046 | ||||||
Series2018-55, Class PA, | 700,163 | 720,387 |
Principal Amount | Value | |||||||
Government National Mortgage Association | ||||||||
Series2018-124, Class NW, | $ | 808,048 | $ | 831,488 | ||||
3.500% 2/20/49 | 828,355 | 851,242 | ||||||
|
| |||||||
9,963,028 | ||||||||
|
| |||||||
Pass-Through Securities — 27.0% |
| |||||||
Federal Home Loan Mortgage Corp. | ||||||||
Pool #V61427 2.500% 12/01/31 | 394,342 | 398,126 | ||||||
Pool #G16598 2.500% 12/01/31 | 1,512,300 | 1,526,810 | ||||||
Pool #G18592 3.000% 3/01/31 | 508,395 | 520,104 | ||||||
Pool #G18627 3.000% 1/01/32 | 1,523,435 | 1,557,569 | ||||||
Pool #G08710 3.000% 6/01/46 | 362,389 | 367,989 | ||||||
Pool #G08715 3.000% 8/01/46 | 2,778,096 | 2,821,031 | ||||||
Pool #G08726 3.000% 10/01/46 | 2,651,796 | 2,692,779 | ||||||
Pool #G08732 3.000% 11/01/46 | 933,621 | 948,050 | ||||||
Pool #G08737 3.000% 12/01/46 | 337,225 | 342,437 | ||||||
Pool #G08741 3.000% 1/01/47 | 2,343,287 | 2,376,573 | ||||||
Pool #G08791 3.000% 12/01/47 | 907,351 | 917,972 | ||||||
Pool #G08795 3.000% 1/01/48 | 715,933 | 724,313 | ||||||
Pool #G18713 3.500% 11/01/33 | 566,437 | 585,581 | ||||||
Pool #G07848 3.500% 4/01/44 | 2,308,713 | 2,408,449 | ||||||
Pool #G60023 3.500% 4/01/45 | 2,400,352 | 2,505,548 | ||||||
Pool #G08711 3.500% 6/01/46 | 1,395,421 | 1,440,823 | ||||||
Pool #G08716 3.500% 8/01/46 | 1,944,377 | 2,005,816 | ||||||
Pool #G67700 3.500% 8/01/46 | 1,314,445 | 1,367,481 | ||||||
Pool #G08722 3.500% 9/01/46 | 336,137 | 346,758 | ||||||
Pool #G08742 3.500% 1/01/47 | 1,375,865 | 1,418,481 | ||||||
Pool #G08757 3.500% 4/01/47 | 490,078 | 505,258 | ||||||
Pool #G67703 3.500% 4/01/47 | 1,889,863 | 1,965,525 | ||||||
Pool #G67706 3.500% 12/01/47 | 1,809,458 | 1,881,336 | ||||||
Pool #G67707 3.500% 1/01/48 | 4,221,190 | 4,400,907 | ||||||
Pool #G08800 3.500% 2/01/48 | 179,443 | 184,664 | ||||||
Pool #G67708 3.500% 3/01/48 | 3,137,557 | 3,258,270 | ||||||
Pool #G67710 3.500% 3/01/48 | 2,787,704 | 2,884,503 | ||||||
Pool #G08816 3.500% 6/01/48 | 1,994,170 | 2,049,082 | ||||||
Pool #G61556 3.500% 8/01/48 | 1,416,108 | 1,470,148 | ||||||
Pool #G60344 4.000% 12/01/45 | 1,532,406 | 1,627,113 | ||||||
Pool #G67711 4.000% 3/01/48 | 1,757,854 | 1,863,199 | ||||||
Pool #G67713 4.000% 6/01/48 | 1,808,820 | 1,905,843 | ||||||
Pool #G67718 4.000% 1/01/49 | 1,760,244 | 1,853,148 | ||||||
Pool #G08843 4.500% 10/01/48 | 870,343 | 912,057 | ||||||
Pool #G08833 5.000% 7/01/48 | 477,439 | 506,727 | ||||||
Pool #G08844 5.000% 10/01/48 | 506,419 | 536,852 | ||||||
Federal National Mortgage Association | ||||||||
Pool #AM2808 2.700% 3/01/23 | 375,000 | 382,814 | ||||||
Pool #AL6829 2.964% 5/01/27 | 1,109,945 | 1,146,034 | ||||||
Pool #MA1607 3.000% 10/01/33 | 641,808 | 657,345 | ||||||
Pool #AM9188 3.120% 6/01/35 | 780,000 | 808,475 | ||||||
Pool #FN0039 3.201% 9/01/27 | 773,216 | 816,400 | ||||||
Pool #AN7345 3.210% 11/01/37 | 1,016,185 | 1,064,273 | ||||||
Pool #AM9623 3.340% 7/01/30 | 755,000 | 805,846 |
The accompanying notes are an integral part of the financial statements.
91
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
Pool #BL2360 3.450% 5/01/34 | $ | 780,000 | $ | 840,616 | ||||
Pool #AB4262 3.500% 1/01/32 | 624,371 | 648,188 | ||||||
Pool #MA1512 3.500% 7/01/33 | 298,549 | 309,937 | ||||||
Pool #MA1148 3.500% 8/01/42 | 2,093,998 | 2,168,641 | ||||||
Pool #CA0996 3.500% 1/01/48 | 348,435 | 361,508 | ||||||
Pool #MA3305 3.500% 3/01/48 | 127,946 | 131,667 | ||||||
Pool #BL1132 3.730% 1/01/29 | 920,000 | 1,012,460 | ||||||
Pool #BL0242 3.820% 11/01/30 | 1,000,000 | 1,110,370 | ||||||
Pool #MA1146 4.000% 8/01/42 | 948,985 | 1,001,633 | ||||||
Pool #MA3027 4.000% 6/01/47 | 1,060,620 | 1,104,215 | ||||||
Pool #AS9830 4.000% 6/01/47 | 1,093,343 | 1,139,992 | ||||||
Pool #AS9972 4.000% 7/01/47 | 949,071 | 989,563 | ||||||
Pool #931504 4.500% 7/01/39 | 92,602 | 99,718 | ||||||
Pool #CA1711 4.500% 5/01/48 | 766,273 | 805,763 | ||||||
Pool #CA1710 4.500% 5/01/48 | 2,297,939 | 2,416,363 | ||||||
Pool #CA2208 4.500% 8/01/48 | 1,492,702 | 1,565,079 | ||||||
Pool #986268 5.000% 7/01/38 | 1,551 | 1,688 | ||||||
Pool #AD6374 5.000% 5/01/40 | 25,804 | 27,965 | ||||||
Pool #AI2733 5.000% 5/01/41 | 208,410 | 225,408 | ||||||
Pool #977014 5.500% 5/01/38 | 33,126 | 36,388 | ||||||
Pool #985524 5.500% 6/01/38 | 25,272 | 27,761 | ||||||
Pool #988578 5.500% 8/01/38 | 162,917 | 178,960 | ||||||
Pool #995482 5.500% 1/01/39 | 131,989 | 148,102 | ||||||
Federal National Mortgage Association TBA | ||||||||
Pool #3430 3.000% 3/01/34 (d) | 50,000 | 50,973 | ||||||
Pool #28654 5.000% 8/01/48 (d) | 700,000 | 739,758 | ||||||
Government National Mortgage Association II | ||||||||
Pool #MA4126 3.000% 12/20/46 | 2,237,690 | 2,288,102 | ||||||
Pool #MA4718 3.000% 9/20/47 | 261,439 | 267,329 | ||||||
Pool #MA4836 3.000% 11/20/47 | 2,068,155 | 2,114,748 | ||||||
Pool #MA3521 3.500% 3/20/46 | 887,747 | 920,915 | ||||||
Pool #MA3597 3.500% 4/20/46 | 275,667 | 285,966 | ||||||
Pool #MA3663 3.500% 5/20/46 | 414,155 | 429,629 | ||||||
Pool #MA3937 3.500% 9/20/46 | 335,171 | 346,960 | ||||||
Pool #MA4127 3.500% 12/20/46 | 1,128,754 | 1,168,458 | ||||||
Pool #MA4262 3.500% 2/20/47 | 1,352,167 | 1,399,306 | ||||||
Pool #MA4382 3.500% 4/20/47 | 377,057 | 390,201 | ||||||
Pool #MA4719 3.500% 9/20/47 | 512,577 | 530,286 | ||||||
Pool #MA4837 3.500% 11/20/47 | 1,018,865 | 1,053,429 | ||||||
3.500% 12/20/47 | 3,739,813 | 3,866,683 | ||||||
Pool #MA4653 4.000% 8/20/47 | 200,692 | 209,460 | ||||||
Pool #MA4838 4.000% 11/20/47 | 873,022 | 911,164 | ||||||
Pool #MA4901 4.000% 12/20/47 | 393,558 | 409,892 | ||||||
Pool #MA5078 4.000% 3/20/48 | 1,660,289 | 1,729,193 | ||||||
Pool #MA5466 4.000% 9/20/48 | 1,902,549 | 1,972,441 | ||||||
Pool #MA5399 4.500% 8/20/48 | 3,840,628 | 4,012,404 | ||||||
Pool #MA3666 5.000% 5/20/46 | 250,956 | 270,119 | ||||||
Pool #MA4199 5.000% 1/20/47 | 263,099 | 285,821 | ||||||
Pool #MA4454 5.000% 5/20/47 | 524,173 | 553,061 |
Principal Amount | Value | |||||||
Pool #MA4722 5.000% 9/20/47 | $ | 693,992 | $ | 729,203 | ||||
|
| |||||||
104,045,995 | ||||||||
|
| |||||||
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS AND INSTRUMENTALITIES (Cost $112,163,640) | 114,009,023 | |||||||
|
| |||||||
U.S. TREASURY OBLIGATIONS — 23.9% |
| |||||||
U.S. Treasury Bonds & Notes — 23.9% |
| |||||||
U.S. Treasury Inflation Index | 64,540 | 64,428 | ||||||
0.375% 7/15/25 | 904,714 | 914,589 | ||||||
0.500% 4/15/24 | 967,138 | 979,213 | ||||||
0.875% 1/15/29 | 2,801,938 | 2,949,211 | ||||||
1.000% 2/15/49 | 1,300,228 | 1,375,244 | ||||||
U.S. Treasury Note | 16,295,000 | 16,289,908 | ||||||
2.000% 5/31/24 | 16,307,000 | 16,499,881 | ||||||
2.125% 5/31/21 | 12,840,000 | 12,927,372 | ||||||
2.250% 4/30/21 | 9,215,000 | 9,292,967 | ||||||
2.375% 5/15/29 (c) | 5,555,000 | 5,740,745 | ||||||
2.875% 5/15/49 | 23,304,000 | 25,002,279 | ||||||
|
| |||||||
92,035,837 | ||||||||
|
| |||||||
TOTAL U.S. TREASURY OBLIGATIONS (Cost $90,208,419) | 92,035,837 | |||||||
|
| |||||||
TOTAL BONDS & NOTES (Cost $363,807,226) | 372,420,807 | |||||||
|
| |||||||
Number of Shares | ||||||||
MUTUAL FUNDS — 1.4% |
| |||||||
Diversified Financial Services — 1.4% |
| |||||||
State Street Navigator Securities Lending Prime Portfolio (e) | 5,464,780 | 5,464,780 | ||||||
|
| |||||||
TOTAL MUTUAL FUNDS (Cost $5,464,780) | 5,464,780 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS (Cost $369,272,006) | 377,885,587 | |||||||
|
| |||||||
Principal Amount | ||||||||
SHORT-TERM INVESTMENTS — 8.0% |
| |||||||
Repurchase Agreement — 5.7% |
| |||||||
Fixed Income Clearing Corp., Repurchase Agreement, dated 6/28/19, 1.250%, due 7/01/19 (f) | $ | 21,967,978 | 21,967,978 | |||||
|
|
The accompanying notes are an integral part of the financial statements.
92
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Principal Amount | Value | |||||||
U.S. Treasury Bill — 2.3% |
| |||||||
U.S. Treasury Bill | $ | 2,423,000 | $ | 2,422,869 | ||||
0.000% 7/16/19 (c) | 2,155,000 | 2,153,160 | ||||||
0.000% 7/23/19 | 3,674,000 | 3,669,363 | ||||||
0.000% 9/26/19 (g) | 531,000 | 528,338 | ||||||
|
| |||||||
8,773,730 | ||||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $30,739,737) | 30,741,708 | |||||||
|
| |||||||
TOTAL INVESTMENTS — 106.0% (Cost $400,011,743) (h) | 408,627,295 | |||||||
Other Assets/(Liabilities) — (6.0)% | (22,993,248 | ) | ||||||
|
| |||||||
NET ASSETS — 100.0% | $ | 385,634,047 | ||||||
|
|
Abbreviation Legend
ABS | Asset-Backed Security |
CLO | Collateralized Loan Obligation |
CMO | Collateralized Mortgage Obligation |
CMT | Constant Maturity Treasury Index |
FRN | Floating Rate Note |
MBS | Mortgage-Backed Security |
MTA | Monthly Treasury Average Index |
STEP | Step Up Bond |
TBA | To Be Announced |
VRN | Variable Rate Note |
WL | Whole Loan |
Notes to Portfolio of Investments
Percentages are stated as a percent of net assets.
(a) | Security is exempt from registration under Regulation S or Rule 144A of the Securities Act of 1933. These securities are considered restricted and may be resold in transactions exempt from registration. At June 30, 2019, the aggregate market value of these securities amounted to $36,977,689 or 9.59% of net assets. |
(b) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. The rates shown are the current interest rates at June 30, 2019. |
(c) | Denotes all or a portion of security on loan. The total value of securities on loan as of June 30, 2019, was $5,355,470 or 1.39% of net assets. Total securities on loan may not correspond with the amounts identified in the Portfolio of Investments because pending sales may be in the process of recall from the brokers.(Note 2). |
(d) | A portion of this security is purchased on a when-issued, delayed-delivery or forward commitment basis.(Note 2). |
(e) | Represents investment of security lending collateral.(Note 2). |
(f) | Maturity value of $21,970,267. Collateralized by U.S. Government Agency obligations with a rate of 2.250%, maturity date of 4/15/22, and an aggregate market value, including accrued interest, of $22,407,506. |
(g) | A portion of this security is pledged/held as collateral for open futures contracts and open swap agreements.(Note 2). |
(h) | See Note 6 for aggregate cost for federal tax purposes. |
Futures contracts
Expiration Date | Number of Contracts | Notional Amount | Value/Net Unrealized Appreciation/ (Depreciation) | |||||||||||||
Long | ||||||||||||||||
U.S. Treasury Note 2 Year | 9/30/19 | 143 | $ | 30,544,573 | $ | 226,122 | ||||||||||
U.S. Treasury Note 5 Year | 9/30/19 | 396 | 45,958,228 | 831,646 | ||||||||||||
|
| |||||||||||||||
$ | 1,057,768 | |||||||||||||||
|
| |||||||||||||||
Short | ||||||||||||||||
Euro-BOBL | 9/06/19 | 57 | $ | (8,673,602 | ) | $ | (40,088 | ) | ||||||||
|
|
The accompanying notes are an integral part of the financial statements.
93
Table of Contents
MML Total Return Bond Fund – Portfolio of Investments(Continued)
Centrally Cleared Interest Rate Swaps
Paid by the Fund | Received by the Fund | Termination Date | Notional Amount | Value | Upfront Premium Paid/ (Received) | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Rate/ Reference | Frequency | Rate/Reference | Frequency | |||||||||||||||||||||
3-Month USD-LIBOR-BBA | Quarterly | Fixed 2.26% | Semi-Annually | 4/11/22 | USD | 20,975,000 | $ | 268,524 | $ | - | $ | 268,524 | ||||||||||||
3-Month USD-LIBOR-BBA | Quarterly | Fixed 2.28% | Semi-Annually | 5/08/22 | USD | 10,055,000 | 133,341 | - | 133,341 | |||||||||||||||
Fixed 2.34% | Semi-Annually | 3-Month USD-LIBOR-BBA | Quarterly | 4/11/25 | USD | 8,620,000 | (245,317 | ) | - | (245,317 | ) | |||||||||||||
Fixed 2.37% | Semi-Annually | 3-Month USD-LIBOR-BBA | Quarterly | 5/08/25 | USD | 4,120,000 | (122,939 | ) | - | (122,939 | ) | |||||||||||||
|
|
|
|
|
| |||||||||||||||||||
$ | 33,609 | $ | - | $ | 33,609 | |||||||||||||||||||
|
|
|
|
|
|
Collateral for swap agreements held by Citibank N.A. amounted to $134,775 in cash at June 30, 2019.
Currency Legend
USD | U.S. Dollar |
The accompanying notes are an integral part of the financial statements.
94
Table of Contents
THIS PAGE INTENTIONALLY LEFT BLANK
95
Table of Contents
MML Series Investment Fund – Financial Statements
Statements of Assets and Liabilities
June 30, 2019 (Unaudited)
MML Blue Chip Growth Fund | MML Equity Income Fund | |||||||
Assets: | ||||||||
Investments, at value(Note 2) (a) | $ | 409,636,160 | $ | 453,782,460 | ||||
Repurchase agreements, at value(Note 2) (b) | 1,337,946 | 7,005,537 | ||||||
Other short-term investments, at value(Note 2) (c) | 1,059 | 1,059 | ||||||
|
|
|
| |||||
Total investments (d) | 410,975,165 | 460,789,056 | ||||||
|
|
|
| |||||
Cash | 18 | - | ||||||
Foreign currency, at value (e) | - | - | ||||||
Receivables from: | ||||||||
Investments sold | 639,495 | 1,828,217 | ||||||
Fund shares sold | 269,261 | 47,717 | ||||||
Collateral pledged for open futures contracts(Note 2) | - | 37,800 | ||||||
Variation margin on open derivative instruments(Note 2) | - | 4,190 | ||||||
Interest and dividends | 86,277 | 808,048 | ||||||
Foreign taxes withheld | - | 2,624 | ||||||
|
|
|
| |||||
Total assets | 411,970,216 | 463,517,652 | ||||||
|
|
|
| |||||
Liabilities: | �� | |||||||
Payables for: | ||||||||
Investments purchased | 767,537 | 1,635,113 | ||||||
Fund shares repurchased | 433,142 | 282,703 | ||||||
Securities on loan(Note 2) | 94,743 | 381,536 | ||||||
Trustees’ fees and expenses(Note 3) | 46,116 | 67,403 | ||||||
Variation margin on open derivative instruments(Note 2) | - | - | ||||||
Affiliates(Note 3): | ||||||||
Investment advisory fees | 231,083 | 260,886 | ||||||
Administration fees | - | - | ||||||
Service fees | 74,743 | 51,843 | ||||||
Due to custodian | - | 42,432 | ||||||
Commitment and Contingent Liabilities(Note 9) | - | - | ||||||
Accrued expense and other liabilities | 106,568 | 118,322 | ||||||
|
|
|
| |||||
Total liabilities | 1,753,932 | 2,840,238 | ||||||
|
|
|
| |||||
Net assets | $ | 410,216,284 | $ | 460,677,414 | ||||
|
|
|
| |||||
Net assets consist of: | ||||||||
Paid-in capital | $ | 168,877,410 | $ | 316,206,785 | ||||
Accumulated Gain (Loss) | 241,338,874 | 144,470,629 | ||||||
|
|
|
| |||||
Net assets | $ | 410,216,284 | $ | 460,677,414 | ||||
|
|
|
| |||||
(a) Cost of investments: | $ | 240,227,472 | $ | 382,951,389 | ||||
(b) Cost of repurchase agreements: | $ | 1,337,946 | $ | 7,005,537 | ||||
(c) Cost of other short-term investments: | $ | 1,059 | $ | 1,059 | ||||
(d) Securities on loan with market value of: | $ | 92,697 | $ | 371,914 | ||||
(e) Cost of foreign currency: | $ | - | $ | - |
The accompanying notes are an integral part of the financial statements.
96
Table of Contents
MML Equity Index Fund | MML Focused Equity Fund | MML Foreign Fund | MML Fundamental Growth Fund | MML Fundamental Value Fund | ||||||||||||||
$ | 544,626,990 | $ | 286,568,672 | $ | 303,208,011 | $ | 109,703,429 | $ | 186,031,262 | |||||||||
4,304,171 | 5,640,314 | 8,815,856 | 1,152,201 | 3,352,183 | ||||||||||||||
1,083,949 | - | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
550,015,110 | 292,208,986 | 312,023,867 | 110,855,630 | 189,383,445 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
909 | 134 | 370 | - | 11 | ||||||||||||||
- | 32,981 | 448,005 | - | - | ||||||||||||||
- | - | 122,231 | 659,784 | 4,439,672 | ||||||||||||||
113,966 | 224,470 | 90,744 | 5,635 | 10,530 | ||||||||||||||
263,340 | - | - | - | - | ||||||||||||||
- | - | - | - | - | ||||||||||||||
442,425 | 288,327 | 1,029,584 | 46,178 | 127,436 | ||||||||||||||
- | - | 712,072 | - | 58,845 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
550,835,750 | 292,754,898 | 314,426,873 | 111,567,227 | 194,019,939 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
269,671 | 11 | 95,286 | 879,132 | 2,865,005 | ||||||||||||||
239,925 | 192,794 | 244,947 | 69,604 | 125,529 | ||||||||||||||
254,943 | - | 2,093,504 | - | - | ||||||||||||||
88,567 | 12,091 | 48,687 | 17,121 | 23,614 | ||||||||||||||
237,368 | - | - | - | - | ||||||||||||||
40,144 | 153,012 | 207,449 | 51,707 | 86,593 | ||||||||||||||
44,934 | 33,459 | - | 12,510 | 21,648 | ||||||||||||||
27,945 | 8,826 | 5,956 | 7,813 | 9,161 | ||||||||||||||
- | - | - | - | - | ||||||||||||||
- | - | - | - | - | ||||||||||||||
167,636 | 43,396 | 325,657 | 50,656 | 67,181 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,371,133 | 443,589 | 3,021,486 | 1,088,543 | 3,198,731 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 549,464,617 | $ | 292,311,309 | $ | 311,405,387 | $ | 110,478,684 | $ | 190,821,208 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 166,798,961 | $ | 261,517,400 | $ | 291,262,230 | $ | 59,961,963 | $ | 129,325,829 | |||||||||
382,665,656 | 30,793,909 | 20,143,157 | 50,516,721 | 61,495,379 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 549,464,617 | $ | 292,311,309 | $ | 311,405,387 | $ | 110,478,684 | $ | 190,821,208 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 351,974,689 | $ | 269,454,773 | $ | 302,850,774 | $ | 88,822,915 | $ | 173,697,570 | |||||||||
$ | 4,304,171 | $ | 5,640,314 | $ | 8,815,856 | $ | 1,152,201 | $ | 3,352,183 | |||||||||
$ | 1,083,614 | $ | - | $ | - | $ | - | $ | - | |||||||||
$ | 249,082 | $ | - | $ | 1,993,218 | $ | - | $ | - | |||||||||
$ | - | $ | 32,965 | $ | 448,097 | $ | - | $ | - |
97
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Assets and Liabilities
June 30, 2019 (Unaudited)
MML Blue Chip Growth Fund | MML Equity Income Fund | |||||||
Initial Class shares: | ||||||||
Net assets | $ | 286,195,887 | $ | 376,871,126 | ||||
|
|
|
| |||||
Shares outstanding (a) | 16,222,926 | 32,439,852 | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | 17.64 | $ | 11.62 | ||||
|
|
|
| |||||
Class I shares: | ||||||||
Net assets | $ | - | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | - | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | - | $ | - | ||||
|
|
|
| |||||
Class II shares: | ||||||||
Net assets | $ | - | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | - | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | - | $ | - | ||||
|
|
|
| |||||
Class III shares: | ||||||||
Net assets | $ | - | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | - | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | - | $ | - | ||||
|
|
|
| |||||
Service Class shares: | ||||||||
Net assets | $ | 124,020,397 | $ | 83,806,288 | ||||
|
|
|
| |||||
Shares outstanding (a) | 7,325,594 | 7,309,276 | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | 16.93 | $ | 11.47 | ||||
|
|
|
| |||||
Service Class I shares: | ||||||||
Net assets | $ | - | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | - | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | - | $ | - | ||||
|
|
|
|
(a) | Authorized unlimited number of shares with no par value. |
The accompanying notes are an integral part of the financial statements.
98
Table of Contents
MML Equity Index Fund | MML Focused Equity Fund | MML Foreign Fund | MML Fundamental Growth Fund | MML Fundamental Value Fund | ||||||||||||||
$ | - | $ | - | $ | 301,954,357 | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
- | - | 30,322,513 | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | - | $ | 9.96 | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 58,940,064 | $ | - | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,774,772 | - | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 33.21 | $ | - | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 198,355,531 | $ | 277,492,013 | $ | - | $ | 97,434,534 | $ | 176,287,434 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
5,966,685 | 43,158,916 | - | 8,597,567 | 12,707,351 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 33.24 | $ | 6.43 | $ | - | $ | 11.33 | $ | 13.87 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 247,031,164 | $ | - | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
7,438,012 | - | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 33.21 | $ | - | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | - | $ | 9,451,030 | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
- | - | 956,258 | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | - | $ | 9.88 | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 45,137,858 | $ | 14,819,296 | $ | - | $ | 13,044,150 | $ | 14,533,774 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,403,287 | 2,389,798 | - | 1,181,311 | 1,067,166 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 32.17 | $ | 6.20 | $ | - | $ | 11.04 | $ | 13.62 | |||||||||
|
|
|
|
|
|
|
|
|
|
99
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Assets and Liabilities
June 30, 2019 (Unaudited)
MML Global Fund | MML Growth & Income Fund | |||||||
Assets: | ||||||||
Investments, at value(Note 2)(a) | $ | 428,063,914 | $ | 145,344,274 | ||||
Repurchase agreements, at value(Note 2) (b) | 2,886,517 | 1,141,973 | ||||||
Other short-term investments, at value(Note 2)(c) | - | - | ||||||
|
|
|
| |||||
Total investments (d) | 430,950,431 | 146,486,247 | ||||||
|
|
|
| |||||
Cash | 30,766 | 9,192 | ||||||
Foreign currency, at value (e) | - | - | ||||||
Receivables from: | ||||||||
Investments sold | 414,924 | - | ||||||
Investment adviser(Note 3) | - | - | ||||||
Fund shares sold | 19,543 | 137 | ||||||
Interest and dividends | 475,651 | 96,975 | ||||||
Foreign taxes withheld | 569,074 | - | ||||||
|
|
|
| |||||
Total assets | 432,460,389 | 146,592,551 | ||||||
|
|
|
| |||||
Liabilities: | ||||||||
Payables for: | ||||||||
Investments purchased | 639,409 | - | ||||||
Investments purchased on a when-issued basis(Note 2) | - | - | ||||||
Written options outstanding, at value(Note 2) (f) | - | - | ||||||
Open forward contracts(Note 2) | - | - | ||||||
Fund shares repurchased | 313,032 | 329,642 | ||||||
Securities on loan(Note 2) | - | - | ||||||
Trustees’ fees and expenses(Note 3) | 23,660 | 22,404 | ||||||
Affiliates(Note 3): | ||||||||
Investment advisory fees | 194,454 | 55,190 | ||||||
Administration fees | 48,614 | - | ||||||
Service fees | 9,783 | 24,848 | ||||||
Commitment and Contingent Liabilities(Note 9) | - | - | ||||||
Accrued expense and other liabilities | 165,051 | 55,503 | ||||||
|
|
|
| |||||
Total liabilities | 1,394,003 | 487,587 | ||||||
|
|
|
| |||||
Net assets | $ | 431,066,386 | $ | 146,104,964 | ||||
|
|
|
| |||||
Net assets consist of: | ||||||||
Paid-in capital | $ | 349,630,921 | $ | 73,773,222 | ||||
Accumulated Gain (Loss) | 81,435,465 | 72,331,742 | ||||||
|
|
|
| |||||
Net assets | $ | 431,066,386 | $ | 146,104,964 | ||||
|
|
|
| |||||
(a) Cost of investments: | $ | 371,277,081 | $ | 91,979,576 | ||||
(b) Cost of repurchase agreements: | $ | 2,886,517 | $ | 1,141,973 | ||||
(c) Cost of other short-term investments: | $ | - | $ | - | ||||
(d) Securities on loan with market value of: | $ | - | $ | - | ||||
(e) Cost of foreign currency: | $ | - | $ | - | ||||
(f) Premiums on written options: | $ | - | $ | - |
The accompanying notes are an integral part of the financial statements.
100
Table of Contents
MML Income & Growth Fund | MML International Equity Fund | MML Large Cap Growth Fund | MML Managed Volatility Fund | MML Mid Cap Growth Fund | ||||||||||||||
$ | 278,385,408 | $ | 175,276,235 | $ | 102,262,066 | $ | 154,300,003 | $ | 486,448,404 | |||||||||
3,000,779 | 6,840,906 | 1,110,906 | 4,489,213 | 9,460,664 | ||||||||||||||
- | - | - | - | 20,130,527 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
281,386,187 | 182,117,141 | 103,372,972 | 158,789,216 | 516,039,595 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
87,474 | - | 2 | 506 | 348 | ||||||||||||||
- | 8,779 | - | 29,046 | - | ||||||||||||||
1,105,735 | 438,832 | - | - | 722,134 | ||||||||||||||
- | 5,682 | - | - | - | ||||||||||||||
13,975 | 8,680 | 122,024 | 6,146 | 48,756 | ||||||||||||||
399,363 | 320,529 | 71,339 | 129,284 | 183,303 | ||||||||||||||
- | 582,300 | 26,609 | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
282,992,734 | 183,481,943 | 103,592,946 | 158,954,198 | 516,994,136 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,225,548 | 866,807 | 85,223 | - | 887,808 | ||||||||||||||
- | - | - | - | 118,580 | ||||||||||||||
- | - | - | 3,474,168 | - | ||||||||||||||
- | 30,515 | - | - | - | ||||||||||||||
168,981 | 123,318 | 85,990 | 195,870 | 509,921 | ||||||||||||||
- | - | - | 914 | 4,314,246 | ||||||||||||||
30,950 | 13,428 | 19,534 | 36,608 | 54,069 | ||||||||||||||
137,501 | 106,983 | 50,161 | 88,747 | 293,907 | ||||||||||||||
- | 20,059 | - | - | - | ||||||||||||||
17,157 | 3,443 | 8,102 | 18,636 | 64,659 | ||||||||||||||
- | - | - | - | - | ||||||||||||||
89,138 | 282,780 | 46,511 | 403,827 | 129,014 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,669,275 | 1,447,333 | 295,521 | 4,218,770 | 6,372,204 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 281,323,459 | $ | 182,034,610 | $ | 103,297,425 | $ | 154,735,428 | $ | 510,621,932 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 251,890,473 | $ | 178,333,818 | $ | 52,135,215 | $ | 114,066,921 | $ | 273,823,265 | |||||||||
29,432,986 | 3,700,792 | 51,162,210 | 40,668,507 | 236,798,667 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 281,323,459 | $ | 182,034,610 | $ | 103,297,425 | $ | 154,735,428 | $ | 510,621,932 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 266,587,415 | $ | 190,296,787 | $ | 67,447,989 | $ | 103,224,693 | $ | 344,434,545 | |||||||||
$ | 3,000,779 | $ | 6,840,906 | $ | 1,110,906 | $ | 4,489,213 | $ | 9,460,664 | |||||||||
$ | - | $ | - | $ | - | $ | - | $ | 20,130,527 | |||||||||
$ | - | $ | - | $ | - | $ | 890 | $ | 4,219,383 | |||||||||
$ | - | $ | 8,766 | $ | - | $ | 28,943 | $ | - | |||||||||
$ | - | $ | - | $ | - | $ | 3,550,827 | $ | - |
101
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Assets and Liabilities
June 30, 2019 (Unaudited)
MML Global Fund | MML Growth & Income Fund | |||||||
Initial Class shares: | ||||||||
Net assets | $ | - | $ | 104,951,654 | ||||
|
|
|
| |||||
Shares outstanding (a) | - | 5,307,957 | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | - | $ | 19.77 | ||||
|
|
|
| |||||
Class I shares: | ||||||||
Net assets | $ | 397,945,277 | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | 32,063,814 | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | 12.41 | $ | - | ||||
|
|
|
| |||||
Class II shares: | ||||||||
Net assets | $ | 17,253,750 | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | 1,360,093 | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | 12.69 | $ | - | ||||
|
|
|
| |||||
Service Class shares: | ||||||||
Net assets | $ | - | $ | 41,153,310 | ||||
|
|
|
| |||||
Shares outstanding (a) | - | 2,099,853 | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | - | $ | 19.60 | ||||
|
|
|
| |||||
Service Class I shares: | ||||||||
Net assets | $ | 15,867,359 | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | 1,297,436 | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | 12.23 | $ | - | ||||
|
|
|
|
(a) | Authorized unlimited number of shares with no par value. |
The accompanying notes are an integral part of the financial statements.
102
Table of Contents
MML Income & Growth Fund | MML International Equity Fund | MML Large Cap Growth Fund | MML Managed Volatility Fund | MML Mid Cap Growth Fund | ||||||||||||||
$ | 253,141,081 | $ | - | $ | 89,567,872 | $ | 125,095,318 | $ | 403,425,292 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
25,952,546 | - | 7,579,861 | 9,830,942 | 23,305,593 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 9.75 | $ | - | $ | 11.82 | $ | 12.72 | $ | 17.31 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
- | - | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | 176,372,769 | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
- | 17,504,003 | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | 10.08 | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 28,182,378 | $ | - | $ | 13,729,553 | $ | 29,640,110 | $ | 107,196,640 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
2,937,584 | - | 1,202,711 | 2,351,820 | 6,461,302 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 9.59 | $ | - | $ | 11.42 | $ | 12.60 | $ | 16.59 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | 5,661,841 | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
- | 566,934 | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | 9.99 | $ | - | $ | - | $ | - | |||||||||
|
|
|
|
|
|
|
|
|
|
103
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Assets and Liabilities
June 30, 2019 (Unaudited)
MML Mid Cap Value Fund | MML Small Cap Growth Equity Fund | |||||||
Assets: | ||||||||
Investments, at value(Note 2) (a) | $ | 419,829,662 | $ | 198,180,750 | ||||
Repurchase agreements, at value(Note 2) (b) | 3,518,183 | 5,806,864 | ||||||
Other short-term investments, at value(Note 2) (c) | - | - | ||||||
|
|
|
| |||||
Total investments (d) | 423,347,845 | 203,987,614 | ||||||
|
|
|
| |||||
Cash | 238 | 54 | ||||||
Foreign currency, at value (e) | - | 11 | ||||||
Receivables from: | ||||||||
Investments sold | 1,305,095 | 592,723 | ||||||
Open forward contracts(Note 2) | 5,086 | - | ||||||
Investment adviser(Note 3) | - | - | ||||||
Fund shares sold | 10,763 | 6,634 | ||||||
Collateral pledged for open swaps agreements(Note 2) | - | - | ||||||
Interest and dividends | 777,784 | 146,424 | ||||||
Interest tax reclaim receivable | - | - | ||||||
Foreign taxes withheld | 3,273 | - | ||||||
|
|
|
| |||||
Total assets | 425,450,084 | 204,733,460 | ||||||
|
|
|
| |||||
Liabilities: | ||||||||
Payables for: | ||||||||
Investments purchased | 1,005,040 | 1,016,804 | ||||||
Open forward contracts(Note 2) | 120,776 | - | ||||||
Investments purchased on a when-issued basis(Note 2) | - | - | ||||||
Fund shares repurchased | 267,504 | 146,761 | ||||||
Securities on loan(Note 2) | - | 5,967,693 | ||||||
Trustees’ fees and expenses(Note 3) | 61,823 | 36,886 | ||||||
Variation margin on open derivative instruments(Note 2) | - | - | ||||||
Affiliates(Note 3): | ||||||||
Investment advisory fees | 268,564 | 153,290 | ||||||
Administration fees | - | - | ||||||
Service fees | 30,865 | 14,462 | ||||||
Commitment and Contingent Liabilities(Note 9) | - | - | ||||||
Accrued expense and other liabilities | 139,453 | 76,187 | ||||||
|
|
|
| |||||
Total liabilities | 1,894,025 | 7,412,083 | ||||||
|
|
|
| |||||
Net assets | $ | 423,556,059 | $ | 197,321,377 | ||||
|
|
|
| |||||
Net assets consist of: | ||||||||
Paid-in capital | $ | 353,310,526 | $ | 121,743,081 | ||||
Accumulated Gain (Loss) | 70,245,533 | 75,578,296 | ||||||
|
|
|
| |||||
Net assets | $ | 423,556,059 | $ | 197,321,377 | ||||
|
|
|
| |||||
(a) Cost of investments: | $ | 399,613,336 | $ | 168,928,995 | ||||
(b) Cost of repurchase agreements: | $ | 3,518,183 | $ | 5,806,864 | ||||
(c) Cost of other short-term investments: | $ | - | $ | - | ||||
(d) Securities on loan with market value of: | $ | - | $ | 5,827,857 | ||||
(e) Cost of foreign currency: | $ | - | $ | 11 |
The accompanying notes are an integral part of the financial statements.
104
Table of Contents
MML Small Company Value Fund | MML Small/Mid Cap Value Fund | MML Total Return Bond Fund | ||||||||
$ | 96,950,505 | $ | 200,295,419 | $ | 377,885,587 | |||||
1,908,125 | 2,287,421 | 21,967,978 | ||||||||
1,048 | - | 8,773,730 | ||||||||
|
|
|
|
|
| |||||
98,859,678 | 202,582,840 | 408,627,295 | ||||||||
|
|
|
|
|
| |||||
2 | - | 189,152 | ||||||||
- | - | - | ||||||||
- | 2,015,472 | 2,457,245 | ||||||||
- | - | - | ||||||||
- | - | 410 | ||||||||
42,388 | 4,462 | 58,959 | ||||||||
- | - | 134,775 | ||||||||
70,199 | 335,957 | 1,844,753 | ||||||||
- | - | 1,272 | ||||||||
- | - | - | ||||||||
|
|
|
|
|
| |||||
98,972,267 | 204,938,731 | 413,313,861 | ||||||||
|
|
|
|
|
| |||||
82,043 | 1,452,832 | 20,368,637 | ||||||||
- | - | - | ||||||||
- | - | 1,187,301 | ||||||||
67,340 | 257,171 | 242,709 | ||||||||
652,099 | 3,541,060 | 5,464,780 | ||||||||
12,192 | 29,652 | 41,307 | ||||||||
- | - | 10,534 | ||||||||
58,759 | 111,921 | 119,243 | ||||||||
11,018 | - | 44,716 | ||||||||
14,189 | 13,588 | 17,573 | ||||||||
- | - | - | ||||||||
44,370 | 62,016 | 183,014 | ||||||||
|
|
|
|
|
| |||||
942,010 | 5,468,240 | 27,679,814 | ||||||||
|
|
|
|
|
| |||||
$ | 98,030,257 | $ | 199,470,491 | $ | 385,634,047 | |||||
|
|
|
|
|
| |||||
$ | 61,749,554 | $ | 159,895,958 | $ | 364,721,772 | |||||
36,280,703 | 39,574,533 | 20,912,275 | ||||||||
|
|
|
|
|
| |||||
$ | 98,030,257 | $ | 199,470,491 | $ | 385,634,047 | |||||
|
|
|
|
|
| |||||
$ | 75,828,348 | $ | 193,155,419 | $ | 369,272,006 | |||||
$ | 1,908,125 | $ | 2,287,421 | $ | 21,967,978 | |||||
$ | 1,048 | $ | - | $ | 8,771,759 | |||||
$ | 632,634 | $ | 3,444,633 | $ | 5,355,470 | |||||
$ | - | $ | - | $ | - |
105
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Assets and Liabilities
June 30, 2019 (Unaudited)
MML Mid Cap Value Fund | MML Small Cap Growth Equity Fund | |||||||
Initial Class shares: | ||||||||
Net assets | $ | 373,506,182 | $ | 173,377,937 | ||||
|
|
|
| |||||
Shares outstanding (a) | 34,071,607 | 10,810,601 | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | 10.96 | $ | 16.04 | ||||
|
|
|
| |||||
Class II shares: | ||||||||
Net assets | $ | - | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | - | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | - | $ | - | ||||
|
|
|
| |||||
Service Class shares: | ||||||||
Net assets | $ | 50,049,877 | $ | 23,943,440 | ||||
|
|
|
| |||||
Shares outstanding (a) | 4,653,204 | 1,582,225 | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | 10.76 | $ | 15.13 | ||||
|
|
|
| |||||
Service Class I shares: | ||||||||
Net assets | $ | - | $ | - | ||||
|
|
|
| |||||
Shares outstanding (a) | - | - | ||||||
|
|
|
| |||||
Net asset value, offering price and redemption price per share | $ | - | $ | - | ||||
|
|
|
|
(a) | Authorized unlimited number of shares with no par value. |
The accompanying notes are an integral part of the financial statements.
106
Table of Contents
MML Small Company Value Fund | MML Small/Mid Cap Value Fund | MML Total Return Bond Fund | ||||||||
$ | - | $ | 177,231,971 | $ | - | |||||
|
|
|
|
|
| |||||
- | 14,628,632 | - | ||||||||
|
|
|
|
|
| |||||
$ | - | $ | 12.12 | $ | - | |||||
|
|
|
|
|
| |||||
$ | 74,973,705 | $ | - | $ | 355,818,647 | |||||
|
|
|
|
|
| |||||
4,613,737 | - | 32,918,357 | ||||||||
|
|
|
|
|
| |||||
$ | 16.25 | $ | - | $ | 10.81 | |||||
|
|
|
|
|
| |||||
$ | - | $ | 22,238,520 | $ | - | |||||
|
|
|
|
|
| |||||
- | 1,858,354 | - | ||||||||
|
|
|
|
|
| |||||
$ | - | $ | 11.97 | $ | - | |||||
|
|
|
|
|
| |||||
$ | 23,056,552 | $ | - | $ | 29,815,400 | |||||
|
|
|
|
|
| |||||
1,465,242 | - | 2,788,762 | ||||||||
|
|
|
|
|
| |||||
$ | 15.74 | $ | - | $ | 10.69 | |||||
|
|
|
|
|
|
107
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
For the Six Months Ended June 30, 2019 (Unaudited)
MML Blue Chip Growth Fund | MML Equity Income Fund | |||||||
Investment income (Note 2): |
| |||||||
Dividends (a) | $ | 1,445,899 | $ | 7,102,419 | ||||
Interest | 10,063 | 118,366 | ||||||
Securities lending net income | 11,287 | 11,374 | ||||||
|
|
|
| |||||
Total investment income | 1,467,249 | 7,232,159 | ||||||
|
|
|
| |||||
Expenses (Note 3): |
| |||||||
Investment advisory fees | 1,454,248 | 1,684,670 | ||||||
Custody fees | 12,342 | 16,996 | ||||||
Audit fees | 18,459 | 18,202 | ||||||
Legal fees | 2,575 | 3,218 | ||||||
Proxy fees | 1,069 | 1,069 | ||||||
Shareholder reporting fees | 23,525 | 29,360 | ||||||
Trustees’ fees | 8,720 | 10,931 | ||||||
|
|
|
| |||||
1,520,938 | 1,764,446 | |||||||
Administration fees: | ||||||||
Class I | - | - | ||||||
Class II | - | - | ||||||
Service Class I | - | - | ||||||
Service fees: | ||||||||
Service Class | 141,127 | 100,474 | ||||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Total expenses | 1,662,065 | 1,864,920 | ||||||
Expenses waived(Note 3): | ||||||||
Initial Class advisory fees waived | - | (55,323 | ) | |||||
Class II advisory fees waived | - | - | ||||||
Service Class advisory fees waived | - | (12,064 | ) | |||||
Service Class I advisory fees waived | - | - | ||||||
|
|
|
| |||||
Net expenses: | 1,662,065 | 1,797,533 | ||||||
|
|
|
| |||||
Net investment income (loss) | (194,816 | ) | 5,434,626 | |||||
|
|
|
| |||||
Realized and unrealized gain (loss): |
| |||||||
Net realized gain (loss) on: | ||||||||
Investment transactions | 20,524,356 | 16,548,767 | ||||||
Futures contracts | - | - | ||||||
Foreign currency transactions | 270 | 4,229 | ||||||
|
|
|
| |||||
Net realized gain (loss) | 20,524,626 | 16,552,996 | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investment transactions | 52,316,243 | 44,279,049 | ||||||
Futures contracts | - | (4,667 | ) | |||||
Translation of assets and liabilities in foreign currencies | 5 | (950 | ) | |||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) | 52,316,248 | 44,273,432 | ||||||
|
|
|
| |||||
Net realized gain (loss) and change in unrealized appreciation (depreciation) | 72,840,874 | 60,826,428 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | $ | 72,646,058 | $ | 66,261,054 | ||||
|
|
|
| |||||
(a) Net of foreign withholding tax of: | $ | 4,415 | $ | 83,024 | ||||
* Net of net increase (decrease) in accrued foreign capital gains tax of: | $ | - | $ | - |
The accompanying notes are an integral part of the financial statements.
108
Table of Contents
MML Equity Index Fund | MML Focused Equity Fund | MML Foreign Fund | MML Fundamental Growth Fund | MML Fundamental Value Fund | ||||||||||||||
$ | 6,300,032 | $ | 1,392,179 | $ | 8,021,810 | $ | 484,039 | $ | 2,264,343 | |||||||||
61,897 | 38,597 | 49,771 | 8,389 | 16,120 | ||||||||||||||
10,215 | - | 84,051 | 2,208 | 204 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
6,372,144 | 1,430,776 | 8,155,632 | 494,636 | 2,280,667 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
294,062 | 493,230 | 1,382,448 | 326,698 | 561,457 | ||||||||||||||
35,783 | 11,815 | 37,399 | 9,892 | 12,872 | ||||||||||||||
18,684 | 17,909 | 40,999 | 17,941 | 18,010 | ||||||||||||||
4,835 | 385 | 2,250 | 806 | 1,388 | ||||||||||||||
1,069 | 1,069 | 1,070 | 1,069 | 1,069 | ||||||||||||||
40,959 | 7,599 | 37,934 | 10,210 | 15,104 | ||||||||||||||
15,940 | 1,419 | 7,711 | 2,506 | 4,729 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
411,332 | 533,426 | 1,509,811 | 369,122 | 614,629 | ||||||||||||||
85,023 | - | - | - | - | ||||||||||||||
130,255 | 97,206 | - | 70,258 | 129,681 | ||||||||||||||
65,012 | 9,799 | - | 8,782 | 10,684 | ||||||||||||||
- | - | 11,901 | - | - | ||||||||||||||
54,176 | 16,332 | - | 14,637 | 17,806 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
745,798 | 656,763 | 1,521,712 | 462,799 | 772,800 | ||||||||||||||
- | - | (60,228 | ) | - | - | |||||||||||||
- | (10,321 | ) | - | - | (17,290 | ) | ||||||||||||
- | - | (1,905 | ) | - | - | |||||||||||||
- | (2,079 | ) | - | - | (1,425 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
745,798 | 644,363 | 1,459,579 | 462,799 | 754,085 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
5,626,346 | 786,413 | 6,696,053 | 31,837 | 1,526,582 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
125,801,464 | 6,085,256 | 3,317,102 | 7,863,077 | 22,429,475 | ||||||||||||||
1,618,885 | - | - | - | - | ||||||||||||||
- | (3,698 | ) | 939 | (649 | ) | 3,060 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
127,420,349 | 6,081,558 | 3,318,041 | 7,862,428 | 22,432,535 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(21,213,841 | ) | 15,923,040 | 12,982,508 | * | 12,107,192 | (2,444,820 | ) | |||||||||||
649,959 | - | - | - | - | ||||||||||||||
- | 83 | 4,791 | - | 1,027 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(20,563,882 | ) | 15,923,123 | 12,987,299 | 12,107,192 | (2,443,793 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
106,856,467 | 22,004,681 | 16,305,340 | 19,969,620 | 19,988,742 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 112,482,813 | $ | 22,791,094 | $ | 23,001,393 | $ | 20,001,457 | $ | 21,515,324 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | - | $ | 7,343 | $ | 917,371 | $ | - | $ | 37,160 | |||||||||
$ | - | $ | - | $ | 81,193 | $ | - | $ | - |
109
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Operations
For the Six Months Ended June 30, 2019 (Unaudited)
MML Global Fund | MML Growth & Income Fund | |||||||
Investment income (Note 2): |
| |||||||
Dividends (a) | $ | 4,519,665 | $ | 1,091,671 | ||||
Interest | 43,441 | 7,579 | ||||||
Securities lending net income | 1,677 | 8,501 | ||||||
|
|
|
| |||||
Total investment income | 4,564,783 | 1,107,751 | ||||||
|
|
|
| |||||
Expenses (Note 3): |
| |||||||
Investment advisory fees | 891,556 | 344,339 | ||||||
Custody fees | 29,202 | 7,962 | ||||||
Audit fees | 21,694 | 17,962 | ||||||
Legal fees | 615 | 952 | ||||||
Proxy fees | 1,069 | 1,069 | ||||||
Shareholder reporting fees | 15,856 | 10,106 | ||||||
Trustees’ fees | 5,211 | 3,162 | ||||||
|
|
|
| |||||
965,203 | 385,552 | |||||||
Administration fees: | ||||||||
Class I | 199,463 | - | ||||||
Class II | 12,118 | - | ||||||
Service Class I | 11,307 | - | ||||||
Service fees: | ||||||||
Service Class | - | 47,142 | ||||||
Service Class I | 18,846 | - | ||||||
|
|
|
| |||||
Total expenses | 1,206,937 | 432,694 | ||||||
Expenses waived(Note 3): | ||||||||
Class II fees reimbursed by adviser | - | - | ||||||
Service Class I fees reimbursed by adviser | - | - | ||||||
|
|
|
| |||||
Net expenses: | 1,206,937 | 432,694 | ||||||
|
|
|
| |||||
Net investment income (loss) | 3,357,846 | 675,057 | ||||||
|
|
|
| |||||
Realized and unrealized gain (loss): |
| |||||||
Net realized gain (loss) on: | ||||||||
Investment transactions | 5,694,551 | 3,906,302 | ||||||
Written options | - | - | ||||||
Foreign currency transactions | (4,261 | ) | 299 | |||||
Forward contracts | - | - | ||||||
|
|
|
| |||||
Net realized gain (loss) | 5,690,290 | 3,906,601 | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investment transactions | 40,559,733 | * | 21,521,047 | |||||
Written options | - | - | ||||||
Translation of assets and liabilities in foreign currencies | 5,702 | (1 | ) | |||||
Forward contracts | - | - | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) | 40,565,435 | 21,521,046 | ||||||
|
|
|
| |||||
Net realized gain (loss) and change in unrealized appreciation (depreciation) | 46,255,725 | 25,427,647 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | $ | 49,613,571 | $ | 26,102,704 | ||||
|
|
|
| |||||
(a) Net of foreign withholding tax of: | $ | 355,643 | $ | 15,571 | ||||
* Net of net increase (decrease) in accrued foreign capital gains tax of: | $ | (1,090 | ) | $ | - |
The accompanying notes are an integral part of the financial statements.
110
Table of Contents
MML Income & Growth Fund | MML International Equity Fund | MML Large Cap Growth Fund | MML Managed Volatility Fund | MML Mid Cap Growth Fund | ||||||||||||||
$ | 4,092,692 | $ | 4,638,359 | $ | 665,341 | $ | 1,580,722 | $ | 1,973,324 | |||||||||
24,883 | 28,028 | 5,110 | 21,680 | 232,018 | ||||||||||||||
2,839 | 37,607 | 9 | 567 | 14,786 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
4,120,414 | 4,703,994 | 670,460 | 1,602,969 | 2,220,128 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
892,970 | 698,904 | 318,680 | 569,695 | 1,778,785 | ||||||||||||||
2,445 | 87,538 | 9,166 | 196,839 | 24,366 | ||||||||||||||
18,393 | 21,314 | 17,936 | 17,982 | 18,515 | ||||||||||||||
1,177 | 1,279 | 684 | 1,111 | 3,128 | ||||||||||||||
1,069 | 1,069 | 1,069 | 1,069 | 1,069 | ||||||||||||||
23,457 | 13,466 | 9,472 | 14,266 | 28,344 | ||||||||||||||
6,591 | 3,972 | 2,348 | 3,793 | 10,512 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
946,102 | 827,542 | 359,355 | 804,755 | 1,864,719 | ||||||||||||||
- | - | - | - | - | ||||||||||||||
- | 127,096 | - | - | - | ||||||||||||||
- | 3,948 | - | - | - | ||||||||||||||
33,114 | - | 15,066 | 36,524 | 123,720 | ||||||||||||||
- | 6,581 | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
979,216 | 965,167 | 374,421 | 841,279 | 1,988,439 | ||||||||||||||
- | (82,404 | ) | - | - | - | |||||||||||||
- | (2,552 | ) | - | - | - | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
979,216 | 880,211 | 374,421 | 841,279 | 1,988,439 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
3,141,198 | 3,823,783 | 296,039 | 761,690 | 231,689 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(1,030,129 | ) | 2,208,571 | 3,119,894 | 3,156,233 | 29,384,689 | |||||||||||||
- | - | - | (10,640,103 | ) | - | |||||||||||||
140 | (12,630 | ) | - | - | 113 | |||||||||||||
- | 156,969 | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(1,029,989 | ) | 2,352,910 | 3,119,894 | (7,483,870 | ) | 29,384,802 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
36,297,876 | 15,384,040 | * | 16,236,361 | 17,293,770 | 69,884,535 | |||||||||||||
- | - | - | (325,261 | ) | - | |||||||||||||
29 | 4,068 | - | 1,115 | (85 | ) | |||||||||||||
- | (107,530 | ) | - | - | - | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
36,297,905 | 15,280,578 | 16,236,361 | 16,969,624 | 69,884,450 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
35,267,916 | 17,633,488 | 19,356,255 | 9,485,754 | 99,269,252 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 38,409,114 | $ | 21,457,271 | $ | 19,652,294 | $ | 10,247,444 | $ | 99,500,941 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 40,657 | $ | 595,372 | $ | 28,631 | $ | - | $ | 5,669 | |||||||||
$ | - | $ | (4,759 | ) | $ | - | $ | - | $ | - |
111
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Operations
For the Six Months Ended June 30, 2019 (Unaudited)
MML Mid Cap Value Fund | MML Small Cap Growth Equity Fund | |||||||
Investment income (Note 2): |
| |||||||
Dividends (a) | $ | 5,644,111 | $ | 970,497 | ||||
Interest | 42,718 | 23,360 | ||||||
Securities lending net income | 28,691 | 7,228 | ||||||
|
|
|
| |||||
Total investment income | 5,715,520 | 1,001,085 | ||||||
|
|
|
| |||||
Expenses (Note 3): |
| |||||||
Investment advisory fees | 1,734,162 | 992,957 | ||||||
Custody fees | 32,336 | 18,926 | ||||||
Audit fees | 18,500 | 18,943 | ||||||
Legal fees | 2,921 | 1,378 | ||||||
Proxy fees | 1,069 | 1,069 | ||||||
Shareholder reporting fees | 27,682 | 14,942 | ||||||
Trustees’ fees | 10,063 | 4,650 | ||||||
|
|
|
| |||||
1,826,733 | 1,052,865 | |||||||
Administration fees: | ||||||||
Class II | - | - | ||||||
Service Class I | - | - | ||||||
Service fees: | ||||||||
Service Class | 59,364 | 27,745 | ||||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Total expenses | 1,886,097 | 1,080,610 | ||||||
Expenses waived(Note 3): | ||||||||
Class II fees reimbursed by adviser | - | - | ||||||
Service Class I fees reimbursed by adviser | - | - | ||||||
Initial Class advisory fees waived | - | (16,878 | ) | |||||
Class II advisory fees waived | - | - | ||||||
Service Class advisory fees waived | - | (2,221 | ) | |||||
Service Class I advisory fees waived | - | - | ||||||
|
|
|
| |||||
Net expenses: | 1,886,097 | 1,061,511 | ||||||
|
|
|
| |||||
Net investment income (loss) | 3,829,423 | (60,426 | ) | |||||
|
|
|
| |||||
Realized and unrealized gain (loss): |
| |||||||
Net realized gain (loss) on: | ||||||||
Investment transactions | 1,886,690 | 13,523,621 | ||||||
Futures contracts | - | - | ||||||
Swap agreements | - | - | ||||||
Foreign currency transactions | (6,096 | ) | - | |||||
Forward contracts | 215,192 | - | ||||||
|
|
|
| |||||
Net realized gain (loss) | 2,095,786 | 13,523,621 | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investment transactions | 59,889,350 | 28,669,300 | ||||||
Futures contracts | - | - | ||||||
Swap agreements | - | - | ||||||
Translation of assets and liabilities in foreign currencies | 588 | - | ||||||
Forward contracts | 64,973 | - | ||||||
|
|
|
| |||||
Net change in unrealized appreciation (depreciation) | 59,954,911 | 28,669,300 | ||||||
|
|
|
| |||||
Net realized gain (loss) and change in unrealized appreciation (depreciation) | 62,050,697 | 42,192,921 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | $ | 65,880,120 | $ | 42,132,495 | ||||
|
|
|
| |||||
(a) Net of foreign withholding tax of: | $ | 109,871 | $ | 3,872 |
The accompanying notes are an integral part of the financial statements.
112
Table of Contents
MML Small Company Value Fund | MML Small/Mid Cap Value Fund | MML Total Return Bond Fund | ||||||||
$ | 605,797 | $ | 1,822,088 | $ | - | |||||
11,409 | 17,026 | 5,976,888 | ||||||||
31,456 | 956 | 27,973 | ||||||||
|
|
|
|
|
| |||||
648,662 | 1,840,070 | 6,004,861 | ||||||||
|
|
|
|
|
| |||||
379,198 | 737,943 | 753,505 | ||||||||
8,839 | 8,399 | 38,540 | ||||||||
18,261 | 18,013 | 23,823 | ||||||||
702 | 1,417 | 3,150 | ||||||||
1,069 | 1,069 | 1,069 | ||||||||
9,453 | 15,256 | 27,085 | ||||||||
2,334 | 4,864 | 9,145 | ||||||||
|
|
|
|
|
| |||||
419,856 | 786,961 | 856,317 | ||||||||
54,750 | - | 262,500 | ||||||||
16,350 | - | 20,065 | ||||||||
- | 26,372 | - | ||||||||
27,249 | - | 33,441 | ||||||||
|
|
|
|
|
| |||||
518,205 | 813,333 | 1,172,323 | ||||||||
- | - | (8,009 | ) | |||||||
- | - | (614 | ) | |||||||
- | - | - | ||||||||
(18,248 | ) | - | - | |||||||
- | - | - | ||||||||
(5,452 | ) | - | - | |||||||
|
|
|
|
|
| |||||
494,505 | 813,333 | 1,163,700 | ||||||||
|
|
|
|
|
| |||||
154,157 | 1,026,737 | 4,841,161 | ||||||||
|
|
|
|
|
| |||||
1,292,101 | 7,078,599 | 5,307,977 | ||||||||
- | - | 1,449,776 | ||||||||
- | - | 1,545 | ||||||||
82 | - | 9 | ||||||||
- | - | - | ||||||||
|
|
|
|
|
| |||||
1,292,183 | 7,078,599 | 6,759,307 | ||||||||
|
|
|
|
|
| |||||
13,315,291 | 17,835,867 | 12,295,704 | ||||||||
- | - | 16,516 | ||||||||
- | - | 14,205 | ||||||||
- | - | - | ||||||||
- | - | - | ||||||||
|
|
|
|
|
| |||||
13,315,291 | 17,835,867 | 12,326,425 | ||||||||
|
|
|
|
|
| |||||
14,607,474 | 24,914,466 | 19,085,732 | ||||||||
|
|
|
|
|
| |||||
$ | 14,761,631 | $ | 25,941,203 | $ | 23,926,893 | |||||
|
|
|
|
|
| |||||
$ | 846 | $ | 6,650 | $ | - |
113
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Changes in Net Assets
MML Blue Chip Growth Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (194,816 | ) | $ | (321,538 | ) | ||
Net realized gain (loss) | 20,524,626 | 52,073,895 | ||||||
Net change in unrealized appreciation (depreciation) | 52,316,248 | (41,246,965 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 72,646,058 | 10,505,392 | ||||||
|
|
|
| |||||
Distributions to shareholders (Note 2): | ||||||||
Initial Class | - | (52,821,553 | ) | |||||
Class I | - | - | ||||||
Class II | - | - | ||||||
Class III | - | - | ||||||
Service Class | - | (19,580,121 | ) | |||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Total distributions | - | (72,401,674 | ) | |||||
|
|
|
| |||||
Net fund share transactions (Note 5): | ||||||||
Initial Class | (19,786,331 | ) | (5,467,464 | ) | ||||
Class I | - | - | ||||||
Class II | - | - | ||||||
Class III | - | - | ||||||
Service Class | 3,838,776 | 42,736,063 | ||||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Increase (decrease) in net assets from fund share transactions | (15,947,555 | ) | 37,268,599 | |||||
|
|
|
| |||||
Total increase (decrease) in net assets | 56,698,503 | (24,627,683 | ) | |||||
Net assets | ||||||||
Beginning of period | 353,517,781 | 378,145,464 | ||||||
|
|
|
| |||||
End of period | $ | 410,216,284 | $ | 353,517,781 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
114
Table of Contents
MML Equity Income Fund | MML Equity Index Fund | |||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||||||
$ | 5,434,626 | $ | 10,559,328 | $ | 5,626,346 | $ | 12,820,871 | |||||||
16,552,996 | 41,617,629 | 127,420,349 | 50,656,484 | |||||||||||
44,273,432 | (95,797,399 | ) | (20,563,882 | ) | (92,331,246 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||
66,261,054 | (43,620,442 | ) | 112,482,813 | (28,853,891 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
- | (48,263,863 | ) | - | - | ||||||||||
- | - | - | (3,197,013 | ) | ||||||||||
- | - | - | (9,207,167 | ) | ||||||||||
- | - | - | (23,328,843 | ) | ||||||||||
- | (9,835,943 | ) | - | - | ||||||||||
- | - | - | (2,351,504 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||
- | (58,099,806 | ) | - | (38,084,527 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
(36,708,298 | ) | 2,490,166 | - | - | ||||||||||
- | - | (2,442,776 | ) | (9,079,134 | ) | |||||||||
- | - | 9,420,929 | (10,657,696 | ) | ||||||||||
- | - | (211,444,520 | ) | (7,296,991 | ) | |||||||||
(3,156,878 | ) | 6,711,055 | - | - | ||||||||||
- | - | (2,900,759 | ) | (3,680,668 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
(39,865,176 | ) | 9,201,221 | (207,367,126 | ) | (30,714,489 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||
26,395,878 | (92,519,027 | ) | (94,884,313 | ) | (97,652,907 | ) | ||||||||
�� | 434,281,536 | 526,800,563 | 644,348,930 | 742,001,837 | ||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 460,677,414 | $ | 434,281,536 | $ | 549,464,617 | $ | 644,348,930 | |||||||
|
|
|
|
|
|
|
|
115
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Changes in Net Assets
MML Focused Equity Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 786,413 | $ | 762,123 | ||||
Net realized gain (loss) | 6,081,558 | 6,191,741 | ||||||
Net change in unrealized appreciation (depreciation) | 15,923,123 | (5,823,993 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 22,791,094 | 1,129,871 | ||||||
|
|
|
| |||||
Distributions to shareholders (Note 2): | ||||||||
Initial Class | - | - | ||||||
Class II | - | (30,902,335 | ) | |||||
Service Class | - | - | ||||||
Service Class I | - | (6,784,266 | ) | |||||
|
|
|
| |||||
Total distributions | - | (37,686,601 | ) | |||||
|
|
|
| |||||
Net fund share transactions (Note 5): | ||||||||
Initial Class | - | - | ||||||
Class II | 208,853,007 | 20,746,796 | ||||||
Service Class | - | - | ||||||
Service Class I | 1,411,287 | 7,702,980 | ||||||
|
|
|
| |||||
Increase (decrease) in net assets from fund share transactions | 210,264,294 | 28,449,776 | ||||||
|
|
|
| |||||
Total increase (decrease) in net assets | 233,055,388 | (8,106,954 | ) | |||||
Net assets | ||||||||
Beginning of period | 59,255,921 | 67,362,875 | ||||||
|
|
|
| |||||
End of period | $ | 292,311,309 | $ | 59,255,921 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
116
Table of Contents
MML Foreign Fund | MML Fundamental Growth Fund | |||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||||||
$ | 6,696,053 | $ | 6,381,190 | $ | 31,837 | $ | 547,826 | |||||||
3,318,041 | 16,154,806 | 7,862,428 | 21,376,868 | |||||||||||
12,987,299 | (78,983,677 | ) | 12,107,192 | (18,532,549 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
23,001,393 | (56,447,681 | ) | 20,001,457 | 3,392,145 | ||||||||||
|
|
|
|
|
|
|
| |||||||
- | (7,662,312 | ) | - | - | ||||||||||
- | - | - | (29,655,294 | ) | ||||||||||
- | (214,292 | ) | - | - | ||||||||||
- | - | - | (2,890,500 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||
- | (7,876,604 | ) | - | (32,545,794 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
(14,390,843 | ) | (26,429,265 | ) | - | - | |||||||||
- | - | (10,542,584 | ) | (4,513,200 | ) | |||||||||
(565,964 | ) | (186,364 | ) | - | - | |||||||||
- | - | 473,229 | 6,672,694 | |||||||||||
|
|
|
|
|
|
|
| |||||||
(14,956,807 | ) | (26,615,629 | ) | (10,069,355 | ) | 2,159,494 | ||||||||
|
|
|
|
|
|
|
| |||||||
8,044,586 | (90,939,914 | ) | 9,932,102 | (26,994,155 | ) | |||||||||
303,360,801 | 394,300,715 | 100,546,582 | 127,540,737 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 311,405,387 | $ | 303,360,801 | $ | 110,478,684 | $ | 100,546,582 | |||||||
|
|
|
|
|
|
|
|
117
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Changes in Net Assets
MML Fundamental Value Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 1,526,582 | $ | 3,804,996 | ||||
Net realized gain (loss) | 22,432,535 | 21,503,854 | ||||||
Net change in unrealized appreciation (depreciation) | (2,443,793 | ) | (45,956,763 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 21,515,324 | (20,647,913 | ) | |||||
|
|
|
| |||||
Distributions to shareholders (Note 2): | ||||||||
Initial Class | - | - | ||||||
Class I | - | - | ||||||
Class II | - | (21,649,257 | ) | |||||
Service Class | - | - | ||||||
Service Class I | - | (1,585,954 | ) | |||||
|
|
|
| |||||
Total distributions | - | (23,235,211 | ) | |||||
|
|
|
| |||||
Net fund share transactions (Note 5): | ||||||||
Initial Class | - | - | ||||||
Class I | - | - | ||||||
Class II | (12,168,622 | ) | (16,638,818 | ) | ||||
Service Class | - | - | ||||||
Service Class I | (328,503 | ) | 3,230,591 | |||||
|
|
|
| |||||
Increase (decrease) in net assets from fund share transactions | (12,497,125 | ) | (13,408,227 | ) | ||||
|
|
|
| |||||
Total increase (decrease) in net assets | 9,018,199 | (57,291,351 | ) | |||||
Net assets | ||||||||
Beginning of period | 181,803,009 | 239,094,360 | ||||||
|
|
|
| |||||
End of period | $ | 190,821,208 | $ | 181,803,009 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
118
Table of Contents
MML Global Fund | MML Growth & Income Fund | |||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||||||
$ | 3,357,846 | $ | 2,786,569 | $ | 675,057 | $ | 1,441,856 | |||||||
5,690,290 | 13,142,056 | 3,906,601 | 12,939,817 | |||||||||||
40,565,435 | (37,603,748 | ) | 21,521,046 | (21,180,131 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
49,613,571 | (21,675,123 | ) | 26,102,704 | (6,798,458 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
- | - | - | (922,933 | ) | ||||||||||
- | (27,480,281 | ) | - | - | ||||||||||
- | (2,282,278 | ) | - | - | ||||||||||
- | - | - | (242,772 | ) | ||||||||||
- | (2,109,930 | ) | - | - | ||||||||||
|
|
|
|
|
|
|
| |||||||
- | (31,872,489 | ) | �� | - | (1,165,705 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||
- | - | (6,974,479 | ) | (13,338,083 | ) | |||||||||
174,313,177 | 19,251,978 | - | - | |||||||||||
(790,669 | ) | 745,727 | - | - | ||||||||||
- | - | 262,777 | 5,575,818 | |||||||||||
(981,758 | ) | 1,595,733 | - | - | ||||||||||
|
|
|
|
|
|
|
| |||||||
172,540,750 | 21,593,438 | (6,711,702 | ) | (7,762,265 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
222,154,321 | (31,954,174 | ) | 19,391,002 | (15,726,428 | ) | |||||||||
208,912,065 | 240,866,239 | 126,713,962 | 142,440,390 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 431,066,386 | $ | 208,912,065 | $ | 146,104,964 | $ | 126,713,962 | |||||||
|
|
|
|
|
|
|
|
119
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Changes in Net Assets
MML Income & Growth Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 3,141,198 | $ | 5,463,761 | ||||
Net realized gain (loss) | (1,029,989 | ) | 10,299,027 | |||||
Net change in unrealized appreciation (depreciation) | 36,297,905 | (49,997,104 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 38,409,114 | (34,234,316 | ) | |||||
|
|
|
| |||||
Distributions to shareholders (Note 2): | ||||||||
Initial Class | - | (68,070,720 | ) | |||||
Class II | - | - | ||||||
Service Class | - | (7,008,633 | ) | |||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Total distributions | - | (75,079,353 | ) | |||||
|
|
|
| |||||
Net fund share transactions (Note 5): | ||||||||
Initial Class | (22,117,813 | ) | 50,138,981 | |||||
Class II | - | - | ||||||
Service Class | 136,047 | 7,077,289 | ||||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Increase (decrease) in net assets from fund share transactions | (21,981,766 | ) | 57,216,270 | |||||
|
|
|
| |||||
Total increase (decrease) in net assets | 16,427,348 | (52,097,399 | ) | |||||
Net assets | ||||||||
Beginning of period | 264,896,111 | 316,993,510 | ||||||
|
|
|
| |||||
End of period | $ | 281,323,459 | $ | 264,896,111 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
120
Table of Contents
MML International Equity Fund | MML Large Cap Growth Fund | |||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||||||
$ | 3,823,783 | $ | 3,359,177 | $ | 296,039 | $ | 572,217 | |||||||
2,352,910 | 11,572,533 | 3,119,894 | 12,394,030 | |||||||||||
15,280,578 | (59,715,280 | ) | 16,236,361 | (13,787,226 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
21,457,271 | (44,783,570 | ) | 19,652,294 | (820,979 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
- | - | - | (7,127,458 | ) | ||||||||||
- | (4,053,077 | ) | - | - | ||||||||||
- | - | - | (826,941 | ) | ||||||||||
- | (116,423 | ) | - | - | ||||||||||
|
|
|
|
|
|
|
| |||||||
- | (4,169,500 | ) | - | (7,954,399 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
- | - | (10,955,642 | ) | (16,230,772 | ) | |||||||||
999,867 | 14,784,522 | - | - | |||||||||||
- | - | 799,275 | 4,308,540 | |||||||||||
270,753 | 2,262,286 | - | - | |||||||||||
|
|
|
|
|
|
|
| |||||||
1,270,620 | 17,046,808 | (10,156,367 | ) | (11,922,232 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
22,727,891 | (31,906,262 | ) | 9,495,927 | (20,697,610 | ) | |||||||||
159,306,719 | 191,212,981 | 93,801,498 | 114,499,108 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 182,034,610 | $ | 159,306,719 | $ | 103,297,425 | $ | 93,801,498 | |||||||
|
|
|
|
|
|
|
|
121
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Changes in Net Assets
MML Managed Volatility Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 761,690 | $ | 1,655,119 | ||||
Net realized gain (loss) | (7,483,870 | ) | 8,177,130 | |||||
Net change in unrealized appreciation (depreciation) | 16,969,624 | (17,569,010 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 10,247,444 | (7,736,761 | ) | |||||
|
|
|
| |||||
Distributions to shareholders (Note 2): | ||||||||
Initial Class | - | (1,709,123 | ) | |||||
Service Class | - | (306,248 | ) | |||||
|
|
|
| |||||
Total distributions | - | (2,015,371 | ) | |||||
|
|
|
| |||||
Net fund share transactions (Note 5): | ||||||||
Initial Class | (4,835,982 | ) | (21,156,586 | ) | ||||
Service Class | (1,274,057 | ) | (2,928,584 | ) | ||||
|
|
|
| |||||
Increase (decrease) in net assets from fund share transactions | (6,110,039 | ) | (24,085,170 | ) | ||||
|
|
|
| |||||
Total increase (decrease) in net assets | 4,137,405 | (33,837,302 | ) | |||||
Net assets | ||||||||
Beginning of period | 150,598,023 | 184,435,325 | ||||||
|
|
|
| |||||
End of period | $ | 154,735,428 | $ | 150,598,023 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
122
Table of Contents
MML Mid Cap Growth Fund | MML Mid Cap Value Fund | |||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||||||
$ | 231,689 | $ | 77,908 | $ | 3,829,423 | $ | 5,812,090 | |||||||
29,384,802 | 65,559,670 | 2,095,786 | 42,512,006 | |||||||||||
69,884,450 | (72,246,548 | ) | 59,954,911 | (105,071,986 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
99,500,941 | (6,608,970 | ) | 65,880,120 | (56,747,890 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
- | (47,102,641 | ) | - | (48,304,550 | ) | |||||||||
- | (12,765,952 | ) | - | (5,905,971 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
- | (59,868,593 | ) | - | (54,210,521 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
(3,570,892 | ) | (2,498,117 | ) | (28,424,298 | ) | 3,437,432 | ||||||||
(2,975,384 | ) | 12,831,279 | (607,273 | ) | 5,903,652 | |||||||||
|
|
|
|
|
|
|
| |||||||
(6,546,276 | ) | 10,333,162 | (29,031,571 | ) | 9,341,084 | |||||||||
|
|
|
|
|
|
|
| |||||||
92,954,665 | (56,144,401 | ) | 36,848,549 | (101,617,327 | ) | |||||||||
417,667,267 | 473,811,668 | 386,707,510 | 488,324,837 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 510,621,932 | $ | 417,667,267 | $ | 423,556,059 | $ | 386,707,510 | |||||||
|
|
|
|
|
|
|
|
123
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Changes in Net Assets
MML Small Cap Growth Equity Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (60,426 | ) | $ | (407,267 | ) | ||
Net realized gain (loss) | 13,523,621 | 33,594,812 | ||||||
Net change in unrealized appreciation (depreciation) | 28,669,300 | (38,364,498 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 42,132,495 | (5,176,953 | ) | |||||
|
|
|
| |||||
Distributions to shareholders (Note 2): | ||||||||
Initial Class | - | (20,293,872 | ) | |||||
Class II | - | - | ||||||
Service Class | - | (2,377,009 | ) | |||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Total distributions | - | (22,670,881 | ) | |||||
|
|
|
| |||||
Net fund share transactions (Note 5): | ||||||||
Initial Class | (15,804,749 | ) | (22,524,973 | ) | ||||
Class II | - | - | ||||||
Service Class | (140,961 | ) | 6,979,396 | |||||
Service Class I | - | - | ||||||
|
|
|
| |||||
Increase (decrease) in net assets from fund share transactions | (15,945,710 | ) | (15,545,577 | ) | ||||
|
|
|
| |||||
Total increase (decrease) in net assets | 26,186,785 | (43,393,411 | ) | |||||
Net assets | ||||||||
Beginning of period | 171,134,592 | 214,528,003 | ||||||
|
|
|
| |||||
End of period | $ | 197,321,377 | $ | 171,134,592 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
124
Table of Contents
MML Small Company Value Fund | MML Small/Mid Cap Value Fund | |||||||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||||||
$ | 154,157 | $ | 262,344 | $ | 1,026,737 | $ | 1,335,022 | |||||||
1,292,183 | 13,598,498 | 7,078,599 | 23,331,127 | |||||||||||
13,315,291 | (26,684,365 | ) | 17,835,867 | (55,718,558 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
14,761,631 | (12,823,523 | ) | 25,941,203 | (31,052,409 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
- | - | - | (21,802,071 | ) | ||||||||||
- | (5,157,012 | ) | - | - | ||||||||||
- | - | - | (2,507,665 | ) | ||||||||||
- | (1,405,903 | ) | - | - | ||||||||||
|
|
|
|
|
|
|
| |||||||
- | (6,562,915 | ) | - | (24,309,736 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||
- | - | (9,609,510 | ) | 3,073,451 | ||||||||||
(3,382,931 | ) | (7,330,491 | ) | - | - | |||||||||
- | - | 342,595 | 2,668,133 | |||||||||||
(185,752 | ) | 3,627,613 | - | - | ||||||||||
|
|
|
|
|
|
|
| |||||||
(3,568,683 | ) | (3,702,878 | ) | (9,266,915 | ) | 5,741,584 | ||||||||
|
|
|
|
|
|
|
| |||||||
11,192,948 | (23,089,316 | ) | 16,674,288 | (49,620,561 | ) | |||||||||
86,837,309 | 109,926,625 | 182,796,203 | 232,416,764 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 98,030,257 | $ | 86,837,309 | $ | 199,470,491 | $ | 182,796,203 | |||||||
|
|
|
|
|
|
|
|
125
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Statements of Changes in Net Assets
MML Total Return Bond Fund | ||||||||
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |||||||
Increase (Decrease) in Net Assets: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 4,841,161 | $ | 10,395,788 | ||||
Net realized gain (loss) | 6,759,307 | (7,415,039 | ) | |||||
Net change in unrealized appreciation (depreciation) | 12,326,425 | (4,364,703 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 23,926,893 | (1,383,954 | ) | |||||
|
|
|
| |||||
Distributions to shareholders (Note 2): | ||||||||
Class II | - | (7,259,284 | ) | |||||
Service Class I | - | (416,963 | ) | |||||
|
|
|
| |||||
Total distributions | - | (7,676,247 | ) | |||||
|
|
|
| |||||
Net fund share transactions (Note 5): | ||||||||
Class II | (19,995,525 | ) | (46,010,891 | ) | ||||
Service Class I | 2,598,328 | 4,117,875 | ||||||
|
|
|
| |||||
Increase (decrease) in net assets from fund share transactions | (17,397,197 | ) | (41,893,016 | ) | ||||
|
|
|
| |||||
Total increase (decrease) in net assets | 6,529,696 | (50,953,217 | ) | |||||
Net assets | ||||||||
Beginning of period | 379,104,351 | 430,057,568 | ||||||
|
|
|
| |||||
End of period | $ | 385,634,047 | $ | 379,104,351 | ||||
|
|
|
|
The accompanying notes are an integral part of the financial statements.
126
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Blue Chip Growth Fund
| Income (loss) from investment operations | | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 14.60 | $ | (0.00 | )d | $ | 3.04 | $ | 3.04 | $ | - | $ | - | $ | - | $ | 17.64 | 20.82% | b | $ | 286,196 | 0.78% | a | (0.03% | )a | |||||||||||||||||||||||
12/31/18 | 17.41 | (0.00 | )d | 0.86 | 0.86 | - | (3.67 | ) | (3.67 | ) | 14.60 | 1.88% | 254,050 | 0.79% | (0.02% | ) | ||||||||||||||||||||||||||||||||
12/31/17 | 13.98 | 0.00 | d | 4.93 | 4.93 | (0.00 | )d | (1.50 | ) | (1.50 | ) | 17.41 | 36.22% | 301,054 | 0.80% | 0.00% | e | |||||||||||||||||||||||||||||||
12/31/16 | 15.79 | 0.00 | d | 0.13 | 0.13 | - | (1.94 | ) | (1.94 | ) | 13.98 | 0.91% | 332,688 | 0.79% | 0.03% | |||||||||||||||||||||||||||||||||
12/31/15 | 17.09 | (0.01 | ) | 1.70 | 1.69 | - | (2.99 | ) | (2.99 | ) | 15.79 | 11.10% | 388,654 | 0.79% | (0.06% | ) | ||||||||||||||||||||||||||||||||
12/31/14 | 17.35 | (0.01 | ) | 1.55 | 1.54 | - | (1.80 | ) | (1.80 | ) | 17.09 | 9.13% | 390,322 | 0.79% | (0.09% | ) | ||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 14.03 | $ | (0.02 | ) | $ | 2.92 | $ | 2.90 | $ | - | $ | - | $ | - | $ | 16.93 | 20.67% | b | $ | 124,020 | 1.03% | a | (0.28% | )a | |||||||||||||||||||||||
12/31/18 | 16.88 | (0.05 | ) | 0.87 | 0.82 | - | (3.67 | ) | (3.67 | ) | 14.03 | 1.68% | 99,468 | 1.04% | (0.26% | ) | ||||||||||||||||||||||||||||||||
12/31/17 | 13.62 | (0.04 | ) | 4.80 | 4.76 | - | (1.50 | ) | (1.50 | ) | 16.88 | 35.89% | 77,091 | 1.05% | (0.25% | ) | ||||||||||||||||||||||||||||||||
12/31/16 | 15.47 | (0.03 | ) | 0.12 | 0.09 | - | (1.94 | ) | (1.94 | ) | 13.62 | 0.65% | 47,411 | 1.04% | (0.22% | ) | ||||||||||||||||||||||||||||||||
12/31/15 | 16.85 | (0.05 | ) | 1.66 | 1.61 | - | (2.99 | ) | (2.99 | ) | 15.47 | 10.76% | 42,486 | 1.04% | (0.31% | ) | ||||||||||||||||||||||||||||||||
12/31/14 | 17.17 | (0.06 | ) | 1.54 | 1.48 | - | (1.80 | ) | (1.80 | ) | 16.85 | 8.87% | 31,721 | 1.04% | (0.34% | ) |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 14 | % | 28 | % | 25 | % | 29 | % | 31 | % | 30 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
d | Amount is less than $0.005 per share. |
e | Amount is less than 0.005%. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
127
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Equity Income Fund
| Income (loss) from investment operations | | | Less distributions to shareholders | | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waiver | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 10.04 | $ | 0.13 | $ | 1.45 | $ | 1.58 | $ | - | $ | - | $ | - | $ | 11.62 | 15.74% | b | $ | 376,871 | 0.79% | a | 0.76 | %a | 2.46% | a | ||||||||||||||||||||||||||
12/31/18 | 12.50 | 0.26 | (1.23 | ) | (0.97 | ) | (0.24 | ) | (1.25 | ) | (1.49 | ) | 10.04 | (9.36% | ) | 358,947 | 0.79% | 0.76 | % | 2.17% | ||||||||||||||||||||||||||||||||
12/31/17 | 11.78 | 0.23 | 1.58 | 1.81 | (0.27 | ) | (0.82 | ) | (1.09 | ) | 12.50 | 16.33% | 440,607 | 0.79% | 0.76 | % | 1.93% | |||||||||||||||||||||||||||||||||||
12/31/16 | 11.29 | 0.27 | 1.73 | 2.00 | (0.25 | ) | (1.26 | ) | (1.51 | ) | 11.78 | 18.68% | 413,304 | 0.79% | 0.77 | % | 2.33% | |||||||||||||||||||||||||||||||||||
12/31/15 | 13.93 | 0.25 | (1.28 | ) | (1.03 | ) | (0.26 | ) | (1.35 | ) | (1.61 | ) | 11.29 | (6.88% | ) | 409,298 | 0.78% | N/A | 1.96% | |||||||||||||||||||||||||||||||||
12/31/14 | 13.47 | 0.25 | 0.76 | 1.01 | (0.24 | ) | (0.31 | ) | (0.55 | ) | 13.93 | 7.54% | 472,989 | 0.78% | N/A | 1.84% | ||||||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.92 | $ | 0.12 | $ | 1.43 | $ | 1.55 | $ | - | $ | - | $ | - | $ | 11.47 | 15.62% | b | $ | 83,806 | 1.04% | a | 1.01 | %a | 2.22% | a | ||||||||||||||||||||||||||
12/31/18 | 12.37 | 0.23 | (1.22 | ) | (0.99 | ) | (0.21 | ) | (1.25 | ) | (1.46 | ) | 9.92 | (9.60% | ) | 75,335 | 1.04% | 1.01 | % | 1.92% | ||||||||||||||||||||||||||||||||
12/31/17 | 11.68 | 0.20 | 1.56 | 1.76 | (0.25 | ) | (0.82 | ) | (1.07 | ) | 12.37 | 15.97% | 86,193 | 1.04% | 1.01 | % | 1.68% | |||||||||||||||||||||||||||||||||||
12/31/16 | 11.20 | 0.24 | 1.72 | 1.96 | (0.22 | ) | (1.26 | ) | (1.48 | ) | 11.68 | 18.46% | 77,647 | 1.04% | 1.02 | % | 2.10% | |||||||||||||||||||||||||||||||||||
12/31/15 | 13.83 | 0.22 | (1.27 | ) | (1.05 | ) | (0.23 | ) | (1.35 | ) | (1.58 | ) | 11.20 | (7.10% | ) | 63,263 | 1.03% | N/A | 1.72% | |||||||||||||||||||||||||||||||||
12/31/14 | 13.39 | 0.22 | 0.74 | 0.96 | (0.21 | ) | (0.31 | ) | (0.52 | ) | 13.83 | 7.23% | 63,751 | 1.03% | N/A | 1.58% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 8 | % | 19 | % | 25 | % | 22 | % | 39 | % | 9 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
j | Computed after giving effect to an agreement by MML Advisers to waive certain fees and expenses of the Fund. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
128
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Equity Index Fund
| Income (loss) from investment operations | | | Less distributions to shareholders | | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000's) | Ratio of expenses to average daily net assets before expense waivers | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 28.09 | $ | 0.26 | $ | 4.86 | $ | 5.12 | $ | - | $ | - | $ | - | $ | 33.21 | 18.23% | b | $ | 58,940 | 0.43% | a | N/A | 1.65% | a | |||||||||||||||||||||||||||
12/31/18 | 31.01 | 0.49 | (1.76 | ) | (1.27 | ) | (0.50 | ) | (1.15 | ) | (1.65 | ) | 28.09 | (4.80% | ) | 51,998 | 0.43% | N/A | 1.57% | |||||||||||||||||||||||||||||||||
12/31/17 | 26.53 | 0.45 | 5.11 | 5.56 | (0.29 | ) | (0.79 | ) | (1.08 | ) | 31.01 | 21.34% | 66,374 | 0.43% | N/A | 1.57% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 24.76 | 0.44 | 2.37 | 2.81 | (0.43 | ) | (0.61 | ) | (1.04 | ) | 26.53 | 11.48% | 66,343 | 0.43% | N/A | 1.76% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 25.52 | 0.42 | (0.23 | ) | 0.19 | (0.38 | ) | (0.57 | ) | (0.95 | ) | 24.76 | 0.95% | 74,631 | 0.43% | N/A | 1.67% | |||||||||||||||||||||||||||||||||||
12/31/14 | 23.14 | 0.38 | 2.65 | 3.03 | (0.33 | ) | (0.32 | ) | (0.65 | ) | 25.52 | 13.17% | 84,445 | 0.44% | N/A | 1.58% | ||||||||||||||||||||||||||||||||||||
Class II |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 28.10 | $ | 0.28 | $ | 4.86 | $ | 5.14 | $ | - | $ | - | $ | - | $ | 33.24 | 18.29% | b | $ | 198,356 | 0.28% | a | N/A | 1.80% | a | |||||||||||||||||||||||||||
12/31/18 | 31.01 | 0.54 | (1.75 | ) | (1.21 | ) | (0.55 | ) | (1.15 | ) | (1.70 | ) | 28.10 | (4.63% | ) | 159,638 | 0.28% | N/A | 1.72% | |||||||||||||||||||||||||||||||||
12/31/17 | 26.55 | 0.50 | 5.10 | 5.60 | (0.35 | ) | (0.79 | ) | (1.14 | ) | 31.01 | 21.50% | 186,674 | 0.28% | N/A | 1.72% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 24.80 | 0.48 | 2.36 | 2.84 | (0.48 | ) | (0.61 | ) | (1.09 | ) | 26.55 | 11.62% | 175,525 | 0.28% | N/A | 1.91% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 25.56 | 0.47 | (0.23 | ) | 0.24 | (0.43 | ) | (0.57 | ) | (1.00 | ) | 24.80 | 1.17% | 164,515 | 0.30% | 0.28 | % | 1.83% | ||||||||||||||||||||||||||||||||||
12/31/14 | 23.19 | 0.42 | 2.65 | 3.07 | (0.38 | ) | (0.32 | ) | (0.70 | ) | 25.56 | 13.35% | 154,210 | 0.33% | 0.28 | % | 1.74% | |||||||||||||||||||||||||||||||||||
Class III |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 28.05 | $ | 0.30 | $ | 4.86 | $ | 5.16 | $ | - | $ | - | $ | - | $ | 33.21 | 18.40% | b | $ | 247,031 | 0.13% | a | N/A | 1.94% | a | |||||||||||||||||||||||||||
12/31/18 | 30.97 | 0.59 | (1.75 | ) | (1.16 | ) | (0.60 | ) | (1.16 | ) | (1.76 | ) | 28.05 | (4.52% | ) | 391,891 | 0.13% | N/A | 1.87% | |||||||||||||||||||||||||||||||||
12/31/17 | 26.51 | 0.54 | 5.10 | 5.64 | (0.39 | ) | (0.79 | ) | (1.18 | ) | 30.97 | 21.69% | 440,242 | 0.13% | N/A | 1.87% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 24.78 | 0.52 | 2.34 | 2.86 | (0.52 | ) | (0.61 | ) | (1.13 | ) | 26.51 | 11.69% | 279,941 | 0.13% | N/A | 2.05% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 25.54 | 0.50 | (0.22 | ) | 0.28 | (0.47 | ) | (0.57 | ) | (1.04 | ) | 24.78 | 1.32% | 172,992 | 0.15% | 0.13 | % | 1.97% | ||||||||||||||||||||||||||||||||||
12/31/14 | 23.16 | 0.46 | 2.65 | 3.11 | (0.41 | ) | (0.32 | ) | (0.73 | ) | 25.54 | 13.54% | 173,459 | 0.19% | 0.14 | % | 1.88% | |||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 27.24 | $ | 0.21 | $ | 4.72 | $ | 4.93 | $ | - | $ | - | $ | - | $ | 32.17 | 18.10% | b | $ | 45,138 | 0.68% | a | N/A | 1.40% | a | |||||||||||||||||||||||||||
12/31/18 | 30.13 | 0.40 | (1.70 | ) | (1.30 | ) | (0.43 | ) | (1.16 | ) | (1.59 | ) | 27.24 | (5.04% | ) | 40,822 | 0.68% | N/A | 1.32% | |||||||||||||||||||||||||||||||||
12/31/17 | 25.84 | 0.37 | 4.96 | 5.33 | (0.25 | ) | (0.79 | ) | (1.04 | ) | 30.13 | 21.01% | 48,712 | 0.68% | N/A | 1.32% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 24.16 | 0.37 | 2.31 | 2.68 | (0.39 | ) | (0.61 | ) | (1.00 | ) | 25.84 | 11.24% | 42,165 | 0.68% | N/A | 1.51% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 24.98 | 0.35 | (0.23 | ) | 0.12 | (0.37 | ) | (0.57 | ) | (0.94 | ) | 24.16 | 0.70% | 38,691 | 0.68% | N/A | 1.43% | |||||||||||||||||||||||||||||||||||
12/31/14 | 22.72 | 0.32 | 2.59 | 2.91 | (0.33 | ) | (0.32 | ) | (0.65 | ) | 24.98 | 12.92% | 32,075 | 0.69% | N/A | 1.34% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 3 | % | 3 | % | 7 | % | 8 | % | 4 | % | 3 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
129
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Focused Equity Fund
| Income (loss) from investment operations | | | Less distributions to shareholders | |
| Ratios / Supplemental Data |
| ||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gain | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waivers | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Class II |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 5.33 | $ | 0.03 | $ | 1.07 | $ | 1.10 | $ | - | $ | - | $ | - | $ | 6.43 | 20.64% | b | $ | 277,492 | 0.90% | a | 0.88%a | 1.12% | a | |||||||||||||||||||||||||||
12/31/18 | 12.69 | 0.11 | 0.66 | 0.77 | (0.37 | ) | (7.76 | ) | (8.13 | ) | 5.33 | 1.18% | 48,276 | 0.95% | 0.87% | 1.25% | ||||||||||||||||||||||||||||||||||||
12/31/17 | 13.20 | 0.27 | 2.35 | 2.62 | (0.36 | ) | (2.77 | ) | (3.13 | ) | 12.69 | 21.99% | 57,382 | 0.94% | N/A | 2.00% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 12.15 | 0.13 | 1.96 | 2.09 | (0.20 | ) | (0.84 | ) | (1.04 | ) | 13.20 | 17.96% | 128,990 | 0.90% | N/A | 1.11% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 15.97 | 0.21 | (1.71 | ) | (1.50 | ) | (0.28 | ) | (2.04 | ) | (2.32 | ) | 12.15 | (8.93% | ) | 147,436 | 0.90% | N/A | 1.43% | |||||||||||||||||||||||||||||||||
12/31/14 | 15.64 | 0.29 | 1.59 | 1.88 | (0.06 | ) | (1.49 | ) | (1.55 | ) | 15.97 | 12.24% | 160,206 | 0.90% | N/A | 1.86% | ||||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 5.15 | $ | 0.03 | $ | 1.02 | $ | 1.05 | $ | - | $ | - | $ | - | $ | 6.20 | 20.39% | b | $ | 14,819 | 1.17% | a | 1.13%a | 0.96% | a | |||||||||||||||||||||||||||
12/31/18 | 12.52 | 0.09 | 0.66 | 0.75 | (0.36 | ) | (7.76 | ) | (8.12 | ) | 5.15 | 0.99% | 10,980 | 1.20% | 1.12% | 1.01% | ||||||||||||||||||||||||||||||||||||
12/31/17 | 13.11 | 0.18 | 2.37 | 2.55 | (0.37 | ) | (2.77 | ) | (3.14 | ) | 12.52 | 21.61% | 9,981 | 1.19% | N/A | 1.39% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 12.06 | 0.10 | 1.95 | 2.05 | (0.16 | ) | (0.84 | ) | (1.00 | ) | 13.11 | 17.74% | 6,829 | 1.15% | N/A | 0.87% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 15.87 | 0.17 | (1.69 | ) | (1.52 | ) | (0.25 | ) | (2.04 | ) | (2.29 | ) | 12.06 | (9.16% | ) | 7,023 | 1.15% | N/A | 1.20% | |||||||||||||||||||||||||||||||||
12/31/14 | 15.58 | 0.22 | 1.61 | 1.83 | (0.05 | ) | (1.49 | ) | (1.54 | ) | 15.87 | 11.97% | 7,289 | 1.15% | N/A | 1.39% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 25 | % | 64 | % | 108 | % | 37 | % | 52 | % | 35 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
130
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Foreign Fund
| Income (loss) from investment operations | | | Less distributions to shareholders | | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waivers | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.25 | $ | 0.21 | $ | 0.50 | $ | 0.71 | $ | - | $ | - | $ | 9.96 | 7.68% | b | $ | 301,954 | 0.97% | a | 0.93%a | 4.32% | a | |||||||||||||||||||||||||
12/31/18 | 11.25 | 0.20 | (1.95 | ) | (1.75 | ) | (0.25 | ) | (0.25 | ) | 9.25 | (15.90% | ) | 294,037 | 0.98% | 0.97% | 1.81% | |||||||||||||||||||||||||||||||
12/31/17 | 9.44 | 0.19 | 1.85 | 2.04 | (0.23 | ) | (0.23 | ) | 11.25 | 21.73% | 382,813 | 0.97% | N/A | 1.79% | ||||||||||||||||||||||||||||||||||
12/31/16 | 9.49 | 0.20 | (0.07 | ) | 0.13 | (0.18 | ) | (0.18 | ) | 9.44 | 1.44% | 348,836 | 0.97% | N/A | 2.22% | |||||||||||||||||||||||||||||||||
12/31/15 | 10.22 | 0.20 | (0.63 | ) | (0.43 | ) | (0.30 | ) | (0.30 | ) | 9.49 | (4.26% | ) | 347,072 | 0.97% | N/A | 1.89% | |||||||||||||||||||||||||||||||
12/31/14 | 11.22 | 0.34 | (1.09 | ) | (0.75 | ) | (0.25 | ) | (0.25 | ) | 10.22 | (6.97% | ) | 328,045 | 0.97% | N/A | 3.09% | |||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.20 | $ | 0.20 | $ | 0.48 | $ | 0.68 | $ | - | $ | - | $ | 9.88 | 7.39% | b | $ | 9,451 | 1.22% | a | 1.18%a | 4.07% | a | |||||||||||||||||||||||||
12/31/18 | 11.18 | 0.17 | (1.93 | ) | (1.76 | ) | (0.22 | ) | (0.22 | ) | 9.20 | (16.03% | ) | 9,324 | 1.23% | 1.22% | 1.57% | |||||||||||||||||||||||||||||||
12/31/17 | 9.38 | 0.16 | 1.84 | 2.00 | (0.20 | ) | (0.20 | ) | 11.18 | 21.45% | 11,488 | 1.22% | N/A | 1.53% | ||||||||||||||||||||||||||||||||||
12/31/16 | 9.43 | 0.18 | (0.07 | ) | 0.11 | (0.16 | ) | (0.16 | ) | 9.38 | 1.18% | 10,231 | 1.22% | N/A | 2.02% | |||||||||||||||||||||||||||||||||
12/31/15 | 10.16 | 0.17 | (0.62 | ) | (0.45 | ) | (0.28 | ) | (0.28 | ) | 9.43 | (4.51% | ) | 11,396 | 1.22% | N/A | 1.59% | |||||||||||||||||||||||||||||||
12/31/14 | 11.16 | 0.30 | (1.07 | ) | (0.77 | ) | (0.23 | ) | (0.23 | ) | 10.16 | (7.07% | ) | 11,089 | 1.22% | N/A | 2.72% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 21 | % | 18 | % | 15 | % | 19 | % | 12 | % | 13 | %t |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
t | The portfolio turnover rate was not impacted as a result of the cash merger. |
The accompanying notes are an integral part of the financial statements.
131
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Fundamental Growth Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waivers | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Class II | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.37 | $ | 0.00 | d | $ | 1.96 | $ | 1.96 | $ | - | $ | - | $ | - | $ | 11.33 | 20.92% | b | $ | 97,435 | 0.85% | a | 0.85% | l | 0.09% | a | |||||||||||||||||||||||||
12/31/18 | 12.94 | 0.06 | 0.66 | 0.72 | (0.15 | ) | (4.14 | ) | (4.29 | ) | 9.37 | 0.80% | 90,145 | 0.83% | 0.83% | 1 | 0.50% | |||||||||||||||||||||||||||||||||||
12/31/17 | 11.42 | 0.11 | 2.92 | 3.03 | (0.13 | ) | (1.38 | ) | (1.51 | ) | 12.94 | 27.67% | 120,666 | 0.84% | 0.84% | l | 0.84% | |||||||||||||||||||||||||||||||||||
12/31/16 | 12.53 | 0.09 | 0.36 | 0.45 | (0.08 | ) | (1.48 | ) | (1.56 | ) | 11.42 | 3.73% | 165,183 | 0.83% | 0.83% | l | 0.79% | |||||||||||||||||||||||||||||||||||
12/31/15 | 14.89 | 0.09 | 0.64 | 0.73 | (0.13 | ) | (2.96 | ) | (3.09 | ) | 12.53 | 6.22% | 183,094 | 0.84% | 0.84% | l | 0.63% | |||||||||||||||||||||||||||||||||||
12/31/14 | 14.46 | 0.12 | 1.44 | 1.56 | (0.11 | ) | (1.02 | ) | (1.13 | ) | 14.89 | 11.06% | 207,086 | 0.86% | 0.85% | 0.81% | ||||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.15 | $ | (0.01 | ) | $ | 1.90 | $ | 1.89 | $ | - | $ | - | $ | - | $ | 11.04 | 20.66% | b | $ | 13,044 | 1.10% | a | 1.10% | l | (0.16% | )a | |||||||||||||||||||||||||
12/31/18 | 12.74 | 0.03 | 0.67 | 0.70 | (0.15 | ) | (4.14 | ) | (4.29 | ) | 9.15 | 0.66% | 10,401 | 1.08% | 1.08% | 1 | 0.27% | |||||||||||||||||||||||||||||||||||
12/31/17 | 11.29 | 0.07 | 2.89 | 2.96 | (0.13 | ) | (1.38 | ) | (1.51 | ) | 12.74 | 27.32% | 6,875 | 1.09% | 1.09% | l | 0.57% | |||||||||||||||||||||||||||||||||||
12/31/16 | 12.41 | 0.06 | 0.37 | 0.43 | (0.07 | ) | (1.48 | ) | (1.55 | ) | 11.29 | 3.54% | 4,263 | 1.08% | 1.08% | l | 0.54% | |||||||||||||||||||||||||||||||||||
12/31/15 | 14.80 | 0.05 | 0.63 | 0.68 | (0.11 | ) | (2.96 | ) | (3.07 | ) | 12.41 | 5.91% | 2,955 | 1.09% | 1.09% | l | 0.36% | |||||||||||||||||||||||||||||||||||
12/31/14 | 14.40 | 0.09 | 1.43 | 1.52 | (0.10 | ) | (1.02 | ) | (1.12 | ) | 14.80 | 10.81% | 2,214 | 1.11% | 1.10% | 0.59% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 60 | % | 61 | % | 40 | % | 49 | % | 44 | % | 51 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
d | Amount is less than $0.005 per share. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
l | Expenses incurred during the period fell under the expense cap. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
132
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Fundamental Value Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waivers | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Class II |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 12.38 | $ | 0.11 | $ | 1.38 | $ | 1.49 | $ | - | $ | - | $ | - | $ | 13.87 | 12.04% | b | $ | 176,287 | 0.81% | a | 0.79 | %a | 1.65% | a | ||||||||||||||||||||||||||
12/31/18 | 15.42 | 0.26 | (1.63 | ) | (1.37 | ) | (0.25 | ) | (1.42 | ) | (1.67 | ) | 12.38 | (10.34% | ) | 168,520 | 0.80% | 0.78 | % | 1.76% | ||||||||||||||||||||||||||||||||
12/31/17 | 14.74 | 0.25 | 1.83 | 2.08 | (0.29 | ) | (1.11 | ) | (1.40 | ) | 15.42 | 15.10% | 225,883 | 0.80% | 0.79 | % | 1.65% | |||||||||||||||||||||||||||||||||||
12/31/16 | 14.20 | 0.26 | 1.56 | 1.82 | (0.21 | ) | (1.07 | ) | (1.28 | ) | 14.74 | 13.25% | 223,801 | 0.79% | N/A | 1.81% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 16.20 | 0.23 | (0.76 | ) | (0.53 | ) | (0.22 | ) | (1.25 | ) | (1.47 | ) | 14.20 | (2.88% | ) | 217,109 | 0.79% | N/A | 1.51% | |||||||||||||||||||||||||||||||||
12/31/14 | 15.46 | 0.23 | 1.47 | 1.70 | (0.25 | ) | (0.71 | ) | (0.96 | ) | 16.20 | 11.19% | 219,679 | 0.79% | N/A | 1.47% | ||||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 12.17 | $ | 0.09 | $ | 1.36 | $ | 1.45 | $ | - | $ | - | $ | - | $ | 13.62 | 11.91% | b | $ | 14,534 | 1.06% | a | 1.04 | %a | 1.40% | a | ||||||||||||||||||||||||||
12/31/18 | 15.20 | 0.22 | (1.60 | ) | (1.38 | ) | (0.23 | ) | (1.42 | ) | (1.65 | ) | 12.17 | (10.56% | ) | 13,283 | 1.05% | 1.03 | % | 1.53% | ||||||||||||||||||||||||||||||||
12/31/17 | 14.57 | 0.21 | 1.80 | 2.01 | (0.27 | ) | (1.11 | ) | (1.38 | ) | 15.20 | 14.78% | 13,212 | 1.05% | 1.04 | % | 1.39% | |||||||||||||||||||||||||||||||||||
12/31/16 | 14.05 | 0.22 | 1.55 | 1.77 | (0.18 | ) | (1.07 | ) | (1.25 | ) | 14.57 | 13.05% | 9,319 | 1.04% | N/A | 1.55% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 16.07 | 0.19 | (0.76 | ) | (0.57 | ) | (0.20 | ) | (1.25 | ) | (1.45 | ) | 14.05 | (3.18% | ) | 7,757 | 1.04% | N/A | 1.26% | |||||||||||||||||||||||||||||||||
12/31/14 | 15.37 | 0.19 | 1.47 | 1.66 | (0.25 | ) | (0.71 | ) | (0.96 | ) | 16.07 | 10.98% | 5,611 | 1.04% | N/A | 1.21% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 103 | % | 28 | % | 18 | % | 20 | % | 19 | % | 14 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
133
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Global Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waivers | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 10.25 | $ | 0.13 | $ | 2.03 | $ | 2.16 | $ | - | $ | - | $ | - | $ | 12.41 | 21.07% | b | $ | 397,945 | 0.80% | a | N/A | 2.29% | a | |||||||||||||||||||||||||||
12/31/18 | 13.04 | 0.15 | (1.16 | ) | (1.01 | ) | (0.15 | ) | (1.63 | ) | (1.78 | ) | 10.25 | (9.53% | ) | 179,973 | 0.83% | N/A | 1.21% | |||||||||||||||||||||||||||||||||
12/31/17 | 11.54 | 0.14 | 2.56 | 2.70 | (0.16 | ) | (1.04 | ) | (1.20 | ) | 13.04 | 24.16% | 206,795 | 0.83% | N/A | 1.10% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 11.74 | 0.14 | 0.76 | 0.90 | (0.14 | ) | (0.96 | ) | (1.10 | ) | 11.54 | 7.55% | 218,698 | 0.82% | N/A | 1.18% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 12.61 | 0.14 | (0.33 | ) | (0.19 | ) | (0.14 | ) | (0.54 | ) | (0.68 | ) | 11.74 | (1.36% | ) | 224,808 | 0.86% | 0.85 | % | 1.13% | ||||||||||||||||||||||||||||||||
12/31/14 | 12.44 | 0.16 | 0.33 | 0.49 | (0.11 | ) | (0.21 | ) | (0.32 | ) | 12.61 | 3.95% | 210,395 | 0.95% | 0.90 | % | 1.29% | |||||||||||||||||||||||||||||||||||
Class II |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 10.48 | $ | 0.13 | $ | 2.08 | $ | 2.21 | $ | - | $ | - | $ | - | $ | 12.69 | 21.09% | b | $ | 17,254 | 0.80% | a | N/A | 2.16% | a | |||||||||||||||||||||||||||
12/31/18 | 13.30 | 0.15 | (1.19 | ) | (1.04 | ) | (0.15 | ) | (1.63 | ) | (1.78 | ) | 10.48 | (9.57% | ) | 14,950 | 0.83% | N/A | 1.21% | |||||||||||||||||||||||||||||||||
12/31/17 | 11.74 | 0.14 | 2.62 | 2.76 | (0.16 | ) | (1.04 | ) | (1.20 | ) | 13.30 | 24.30% | 18,082 | 0.83% | N/A | 1.09% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 11.93 | 0.14 | 0.77 | 0.91 | (0.14 | ) | (0.96 | ) | (1.10 | ) | 11.74 | 7.54% | 15,757 | 0.82% | N/A | 1.17% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 12.81 | 0.15 | (0.34 | ) | (0.19 | ) | (0.15 | ) | (0.54 | ) | (0.69 | ) | 11.93 | (1.35% | ) | 15,876 | 0.83% | 0.81 | % | 1.13% | ||||||||||||||||||||||||||||||||
12/31/14 | 12.63 | 0.17 | 0.33 | 0.50 | (0.11 | ) | (0.21 | ) | (0.32 | ) | 12.81 | 4.00% | 17,481 | 0.85% | 0.80 | % | 1.35% | |||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 10.11 | $ | 0.11 | $ | 2.01 | $ | 2.12 | $ | - | $ | - | $ | - | $ | 12.23 | 20.97% | b | $ | 15,867 | 1.05% | a | N/A | 1.91% | a | |||||||||||||||||||||||||||
12/31/18 | 12.90 | 0.12 | (1.16 | ) | (1.04 | ) | (0.12 | ) | (1.63 | ) | (1.75 | ) | 10.11 | (9.84% | ) | 13,989 | 1.08% | N/A | 0.97% | |||||||||||||||||||||||||||||||||
12/31/17 | 11.43 | 0.11 | 2.54 | 2.65 | (0.14 | ) | (1.04 | ) | (1.18 | ) | 12.90 | 23.95% | 15,989 | 1.08% | N/A | 0.84% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 11.65 | 0.10 | 0.76 | 0.86 | (0.12 | ) | (0.96 | ) | (1.08 | ) | 11.43 | 7.25% | 12,129 | 1.07% | N/A | 0.89% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 12.52 | 0.10 | (0.31 | ) | (0.21 | ) | (0.12 | ) | (0.54 | ) | (0.66 | ) | 11.65 | (1.55% | ) | 10,646 | 1.11% | 1.10 | % | 0.84% | ||||||||||||||||||||||||||||||||
12/31/14 | 12.38 | 0.12 | 0.32 | 0.44 | (0.09 | ) | (0.21 | ) | (0.30 | ) | 12.52 | 3.57% | 9,220 | 1.20% | 1.15 | % | 1.00% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 8 | % | 15 | % | 10 | % | 15 | % | 17 | % | 12 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
134
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Growth & Income Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 16.35 | $ | 0.10 | $ | 3.32 | $ | 3.42 | $ | - | $ | - | $ | 19.77 | 20.92% | b | $ | 104,952 | 0.56% | a | 1.05% | a | ||||||||||||||||||||||
12/31/18 | 17.39 | 0.19 | (1.07 | ) | (0.88 | ) | (0.16 | ) | (0.16 | ) | 16.35 | (5.20% | ) | 92,893 | 0.56% | 1.07% | ||||||||||||||||||||||||||||
12/31/17 | 14.19 | 0.16 | 3.19 | 3.35 | (0.15 | ) | (0.15 | ) | 17.39 | 23.70% | 111,830 | 0.56% | 1.02% | |||||||||||||||||||||||||||||||
12/31/16 | 13.18 | 0.15 | 1.00 | 1.15 | (0.14 | ) | (0.14 | ) | 14.19 | 8.77% | 102,858 | 0.56% | 1.10% | |||||||||||||||||||||||||||||||
12/31/15 | 13.28 | 0.14 | (0.08 | ) | 0.06 | (0.16 | ) | (0.16 | ) | 13.18 | 0.49% | 106,578 | 0.56% | 1.01% | ||||||||||||||||||||||||||||||
12/31/14 | 12.08 | 0.14 | 1.20 | 1.34 | (0.14 | ) | (0.14 | ) | 13.28 | 11.19% | 121,667 | 0.56% | 1.16% | |||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 16.22 | $ | 0.07 | $ | 3.31 | $ | 3.38 | $ | - | $ | - | $ | 19.60 | 20.84% | b | $ | 41,153 | 0.81% | a | 0.80% | a | ||||||||||||||||||||||
12/31/18 | 17.27 | 0.15 | (1.08 | ) | (0.93 | ) | (0.12 | ) | (0.12 | ) | 16.22 | | (5.46% | ) | 33,821 | 0.81% | 0.83% | |||||||||||||||||||||||||||
12/31/17 | 14.10 | 0.12 | 3.17 | 3.29 | (0.12 | ) | (0.12 | ) | 17.27 | 23.41% | 30,610 | 0.81% | 0.77% | |||||||||||||||||||||||||||||||
12/31/16 | 13.10 | 0.11 | 1.00 | 1.11 | (0.11 | ) | (0.11 | ) | 14.10 | 8.50% | 23,197 | 0.81% | 0.85% | |||||||||||||||||||||||||||||||
12/31/15 | 13.21 | 0.10 | (0.08 | ) | 0.02 | (0.13 | ) | (0.13 | ) | 13.10 | 0.18% | 18,797 | 0.81% | 0.76% | ||||||||||||||||||||||||||||||
12/31/14 | 12.02 | 0.11 | 1.20 | 1.31 | (0.12 | ) | (0.12 | ) | 13.21 | 10.94% | 18,929 | 0.81% | 0.91% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 6 | % | 15 | % | 12 | % | 17 | % | 17 | % | 20 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
135
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Income & Growth Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 8.49 | $ | 0.11 | $ | 1.15 | $ | 1.26 | $ | - | $ | - | $ | - | $ | 9.75 | 14.84% | b | $ | 253,141 | 0.69% | a | 2.31% | a | ||||||||||||||||||||||||
12/31/18 | 12.72 | 0.21 | (1.25 | ) | (1.04 | ) | (0.22 | ) | (2.97 | ) | (3.19 | ) | 8.49 | (11.68% | ) | 240,456 | 0.70% | 1.86% | ||||||||||||||||||||||||||||||
12/31/17 | 11.86 | 0.22 | 1.74 | 1.96 | (0.21 | ) | (0.89 | ) | (1.10 | ) | 12.72 | 17.43% | 289,310 | 0.70% | 1.80% | |||||||||||||||||||||||||||||||||
12/31/16 | 11.35 | 0.22 | 1.55 | 1.77 | (0.21 | ) | (1.05 | ) | (1.26 | ) | 11.86 | 16.40% | 257,874 | 0.69% | 1.97% | |||||||||||||||||||||||||||||||||
12/31/15 | 12.44 | 0.23 | (0.31 | ) | (0.08 | ) | (0.24 | ) | (0.77 | ) | (1.01 | ) | 11.35 | (0.09% | ) | 221,763 | 0.69% | 1.90% | ||||||||||||||||||||||||||||||
12/31/14 | 11.60 | 0.23 | 0.83 | 1.06 | (0.22 | ) | - | (0.22 | ) | 12.44 | 9.22% | 232,187 | 0.70% | 1.91% | ||||||||||||||||||||||||||||||||||
Service Class | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 8.36 | $ | 0.09 | $ | 1.14 | $ | 1.23 | $ | - | $ | - | $ | - | $ | 9.59 | 14.71% | b | $ | 28,182 | 0.94% | a | 2.07% | a | ||||||||||||||||||||||||
12/31/18 | 12.58 | 0.18 | (1.23 | ) | (1.05 | ) | (0.20 | ) | (2.97 | ) | (3.17 | ) | 8.36 | (11.94% | ) | 24,440 | 0.95% | 1.62% | ||||||||||||||||||||||||||||||
12/31/17 | 11.74 | 0.19 | 1.73 | 1.92 | (0.19 | ) | (0.89 | ) | (1.08 | ) | 12.58 | 17.21% | 27,683 | 0.95% | 1.55% | |||||||||||||||||||||||||||||||||
12/31/16 | 11.25 | 0.19 | 1.54 | 1.73 | (0.19 | ) | (1.05 | ) | (1.24 | ) | 11.74 | 16.10% | 20,626 | 0.94% | 1.71% | |||||||||||||||||||||||||||||||||
12/31/15 | 12.34 | 0.20 | (0.31 | ) | (0.11 | ) | (0.21 | ) | (0.77 | ) | (0.98 | ) | 11.25 | (0.35% | ) | 16,906 | 0.94% | 1.65% | ||||||||||||||||||||||||||||||
12/31/14 | 11.51 | 0.20 | 0.83 | 1.03 | (0.20 | ) | - | (0.20 | ) | 12.34 | 8.96% | 16,131 | 0.95% | 1.66% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 22 | % | 30 | % | 110 | % | 30 | % | 27 | % | 19 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
136
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML International Equity Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waivers | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Class II | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 8.91 | $ | 0.21 | $ | 0.96 | $ | 1.17 | $ | - | $ | - | $ | - | $ | 10.08 | 13.13% | b | $ | 176,373 | 1.10% | a | 1.00% | a | 4.38% | a | ||||||||||||||||||||||||||
12/31/18 | 11.97 | 0.21 | (3.02 | ) | (2.81 | ) | (0.17 | ) | (0.08 | ) | (0.25 | ) | 8.91 | (23.79% | ) | 154,540 | 1.12% | 1.00% | 1.91% | |||||||||||||||||||||||||||||||||
12/31/17 | 9.33 | 0.18 | 2.64 | 2.82 | (0.18 | ) | - | (0.18 | ) | 11.97 | 30.35% | 187,213 | 1.09% | 1.00% | 1.62% | |||||||||||||||||||||||||||||||||||||
12/31/16 | 8.81 | 0.15 | 0.56 | 0.71 | (0.17 | ) | (0.02 | ) | (0.19 | ) | 9.33 | 8.27% | 150,753 | 1.07% | 1.00% | 1.70% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 9.27 | 0.15 | (0.59 | ) | (0.44 | ) | (0.02 | ) | - | (0.02 | ) | 8.81 | (4.77% | ) | 164,083 | 1.09% | 1.00% | 1.59% | ||||||||||||||||||||||||||||||||||
12/31/14g | 10.00 | 0.18 | (0.65 | ) | (0.47 | ) | (0.20 | ) | (0.06 | ) | (0.26 | ) | 9.27 | (4.67% | )b | 123,915 | 1.15% | a | 1.00% | a | 1.79% | a | ||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 8.84 | $ | 0.20 | $ | 0.95 | $ | 1.15 | $ | - | $ | - | $ | - | $ | 9.99 | 13.01% | b | $ | 5,662 | 1.35% | a | 1.25% | a | 4.22% | a | ||||||||||||||||||||||||||
12/31/18 | 11.90 | 0.18 | (2.99 | ) | (2.81 | ) | (0.17 | ) | (0.08 | ) | (0.25 | ) | 8.84 | (23.98% | ) | 4,767 | 1.37% | 1.25% | 1.64% | |||||||||||||||||||||||||||||||||
12/31/17 | 9.29 | 0.11 | 2.67 | 2.78 | (0.17 | ) | - | (0.17 | ) | 11.90 | 30.05% | 4,000 | 1.34% | 1.25% | 0.95% | |||||||||||||||||||||||||||||||||||||
12/31/16 | 8.78 | 0.13 | 0.56 | 0.69 | (0.16 | ) | (0.02 | ) | (0.18 | ) | 9.29 | 7.97% | 1,063 | 1.32% | 1.25% | 1.50% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 9.27 | 0.10 | (0.57 | ) | (0.47 | ) | (0.02 | ) | - | (0.02 | ) | 8.78 | (5.10% | ) | 1,513 | 1.35% | 1.25% | 1.11% | ||||||||||||||||||||||||||||||||||
12/31/14h | 10.29 | 0.07 | (0.83 | ) | (0.76 | ) | (0.20 | ) | (0.06 | ) | (0.26 | ) | 9.27 | (7.44% | )b | 298 | 1.36% | a | 1.25% | a | 1.08% | a |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 19 | % | 43 | % | 45 | % | 50 | % | 46 | % | 39 | %b,g |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
g | For the period January 7, 2014 (commencement of operations) through December 31, 2014. |
h | For the period May 1, 2014 (commencement of operations) through December 31, 2014. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
137
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Large Cap Growth Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.68 | $ | 0.03 | $ | 2.11 | $ | 2.14 | $ | - | $ | - | $ | - | $ | 11.82 | 22.11% | b | $ | 89,568 | 0.73% | a | 0.63% | a | ||||||||||||||||||||||||
12/31/18 | 10.69 | 0.06 | (0.19 | ) | (0.13 | ) | (0.07 | ) | (0.81 | ) | (0.88 | ) | 9.68 | (2.26% | ) | 83,211 | 0.72% | 0.56% | ||||||||||||||||||||||||||||||
12/31/17 | 10.63 | 0.07 | 3.23 | 3.30 | (0.05 | ) | (3.19 | ) | (3.24 | ) | 10.69 | 33.51% | 106,989 | 0.73% | 0.58% | |||||||||||||||||||||||||||||||||
12/31/16 | 11.70 | 0.03 | (0.06 | ) | (0.03 | ) | (0.01 | ) | (1.03 | ) | (1.04 | ) | 10.63 | (0.38% | ) | 103,315 | 0.70% | 0.24% | ||||||||||||||||||||||||||||||
12/31/15 | 14.06 | 0.01 | 0.58 | 0.59 | - | (2.95 | ) | (2.95 | ) | 11.70 | 5.12% | 214,299 | 0.69% | 0.10% | ||||||||||||||||||||||||||||||||||
12/31/14 | 14.63 | (0.01 | ) | 1.36 | 1.35 | - | (1.92 | ) | (1.92 | ) | 14.06 | 9.51% | 242,229 | 0.69% | (0.07% | ) | ||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.36 | $ | 0.02 | $ | 2.04 | $ | 2.06 | $ | - | $ | - | $ | - | $ | 11.42 | 22.01% | b | $ | 13,730 | 0.98% | a | 0.39% | a | ||||||||||||||||||||||||
12/31/18 | 10.37 | 0.03 | (0.17 | ) | (0.14 | ) | (0.06 | ) | (0.81 | ) | (0.87 | ) | 9.36 | (2.46% | ) | 10,591 | 0.97% | 0.30% | ||||||||||||||||||||||||||||||
12/31/17 | 10.41 | 0.03 | 3.15 | 3.18 | (0.03 | ) | (3.19 | ) | (3.22 | ) | 10.37 | 33.00% | 7,510 | 0.98% | 0.29% | |||||||||||||||||||||||||||||||||
12/31/16 | 11.48 | (0.00 | )d | (0.04 | ) | (0.04 | ) | - | (1.03 | ) | (1.03 | ) | 10.41 | (0.52% | ) | 3,604 | 0.95% | (0.02% | ) | |||||||||||||||||||||||||||||
12/31/15 | 13.89 | (0.02 | ) | 0.56 | 0.54 | - | (2.95 | ) | (2.95 | ) | 11.48 | 4.80% | 3,501 | 0.94% | (0.15% | ) | ||||||||||||||||||||||||||||||||
12/31/14 | 14.51 | (0.04 | ) | 1.34 | 1.30 | - | (1.92 | ) | (1.92 | ) | 13.89 | 9.23% | 2,726 | 0.94% | (0.29% | ) |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 2 | % | 16 | % | 3 | % | 134 | % | 73 | % | 77 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
d | Amount is less than $0.005 per share. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
138
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Managed Volatility Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 11.90 | $ | 0.06 | $ | 0.76 | $ | 0.82 | $ | - | $ | - | $ | - | $ | 12.72 | 6.94% | b | $ | 125,095 | 1.06% | a | 1.05% | a | ||||||||||||||||||||||||
12/31/18 | 12.63 | 0.12 | (0.69 | ) | (0.57 | ) | (0.16 | ) | - | (0.16 | ) | 11.90 | (4.69% | ) | 121,635 | 0.96% | 0.99% | |||||||||||||||||||||||||||||||
12/31/17 | 11.74 | 0.14 | 0.91 | 1.05 | (0.16 | ) | - | (0.16 | ) | 12.63 | 9.03% | 150,737 | 0.90% | 1.13% | ||||||||||||||||||||||||||||||||||
12/31/16 | 14.27 | 0.17 | 0.31 | 0.48 | (0.26 | ) | (2.75 | ) | (3.01 | ) | 11.74 | 3.69% | 151,537 | 0.91% | 1.29% | |||||||||||||||||||||||||||||||||
12/31/15 | 14.11 | 0.17 | 0.25 | 0.42 | (0.26 | ) | - | (0.26 | ) | 14.27 | 3.01% | 162,332 | 0.89% | 1.18% | ||||||||||||||||||||||||||||||||||
12/31/14 | 14.33 | 0.16 | 0.46 | 0.62 | (0.10 | ) | (0.74 | ) | (0.84 | ) | 14.11 | 4.41% | 336,931 | 0.90% | 1.14% | |||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 11.80 | $ | 0.05 | $ | 0.75 | $ | 0.80 | $ | - | $ | - | $ | - | $ | 12.60 | 6.81% | b | $ | 29,640 | 1.31% | a | 0.80% | a | ||||||||||||||||||||||||
12/31/18 | 12.53 | 0.09 | (0.70 | ) | (0.61 | ) | (0.12 | ) | - | (0.12 | ) | 11.80 | (4.93% | ) | 28,963 | 1.21% | 0.74% | |||||||||||||||||||||||||||||||
12/31/17 | 11.64 | 0.11 | 0.91 | 1.02 | (0.13 | ) | - | (0.13 | ) | 12.53 | 8.76% | 33,698 | 1.15% | 0.88% | ||||||||||||||||||||||||||||||||||
12/31/16 | 14.18 | 0.14 | 0.29 | 0.43 | (0.22 | ) | (2.75 | ) | (2.97 | ) | 11.64 | 3.42% | 32,569 | 1.16% | 1.04% | |||||||||||||||||||||||||||||||||
12/31/15 | 14.02 | 0.14 | 0.24 | 0.38 | (0.22 | ) | - | (0.22 | ) | 14.18 | 2.79% | 33,180 | 1.14% | 0.95% | ||||||||||||||||||||||||||||||||||
12/31/14 | 14.25 | 0.13 | 0.45 | 0.58 | (0.07 | ) | (0.74 | ) | (0.81 | ) | 14.02 | 4.14% | 31,812 | 1.15% | 0.88% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 1 | % | 5 | % | 2 | % | 4 | % | 3 | % | 14 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
139
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Mid Cap Growth Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 13.94 | $ | 0.01 | $ | 3.36 | $ | 3.37 | $ | - | $ | - | $ | - | $ | 17.31 | 24.18% | b | $ | 403,425 | 0.81% | a | 0.15% | a | ||||||||||||||||||||||||
12/31/18 | 16.19 | 0.01 | (0.07 | ) | (0.06 | ) | - | (2.19 | ) | (2.19 | ) | 13.94 | (2.17% | ) | 328,715 | 0.81% | 0.07% | |||||||||||||||||||||||||||||||
12/31/17 | 14.35 | (0.01 | ) | 3.45 | 3.44 | (0.01 | ) | (1.59 | ) | (1.60 | ) | 16.19 | 24.81% | 382,666 | 0.81% | (0.08% | ) | |||||||||||||||||||||||||||||||
12/31/16 | 15.50 | (0.00 | )d | 0.97 | 0.97 | - | (2.12 | ) | (2.12 | ) | 14.35 | 6.29% | 352,754 | 0.81% | (0.02% | ) | ||||||||||||||||||||||||||||||||
12/31/15 | 16.41 | (0.01 | ) | 1.05 | 1.04 | - | (1.95 | ) | (1.95 | ) | 15.50 | 6.78% | 375,328 | 0.81% | (0.07% | ) | ||||||||||||||||||||||||||||||||
12/31/14 | 16.59 | (0.03 | ) | 2.11 | 2.08 | - | (2.26 | ) | (2.26 | ) | 16.41 | 13.27% | 377,028 | 0.81% | (0.17% | ) | ||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 13.37 | $ | (0.01 | ) | $ | 3.23 | $ | 3.22 | $ | - | $ | - | $ | - | $ | 16.59 | 24.08% | b | $ | 107,197 | 1.06% | a | (0.10% | )a | |||||||||||||||||||||||
12/31/18 | 15.65 | (0.03 | ) | (0.06 | ) | (0.09 | ) | - | (2.19 | ) | (2.19 | ) | 13.37 | (2.45% | ) | 88,952 | 1.06% | (0.18% | ) | |||||||||||||||||||||||||||||
12/31/17 | 13.95 | (0.05 | ) | 3.34 | 3.29 | - | (1.59 | ) | (1.59 | ) | 15.65 | 24.47% | 91,145 | 1.06% | (0.33% | ) | ||||||||||||||||||||||||||||||||
12/31/16 | 15.16 | (0.04 | ) | 0.95 | 0.91 | - | (2.12 | ) | (2.12 | ) | 13.95 | 6.02% | 71,227 | 1.06% | (0.27% | ) | ||||||||||||||||||||||||||||||||
12/31/15 | 16.12 | (0.05 | ) | 1.04 | 0.99 | - | (1.95 | ) | (1.95 | ) | 15.16 | 6.59% | 66,936 | 1.06% | (0.31% | ) | ||||||||||||||||||||||||||||||||
12/31/14 | 16.38 | (0.07 | ) | 2.07 | 2.00 | - | (2.26 | ) | (2.26 | ) | 16.12 | 12.93% | 56,457 | 1.06% | (0.42% | ) |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 18 | % | 26 | % | 28 | % | 29 | % | 35 | % | 25 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
d | Amount is less than $0.005 per share. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
140
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Mid Cap Value Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.35 | $ | 0.10 | $ | 1.51 | $ | 1.61 | $ | - | $ | - | $ | - | $ | 10.96 | 17.22% | b | $ | 373,506 | 0.88% | a | 1.88% | a | ||||||||||||||||||||||||
12/31/18 | 12.14 | 0.15 | (1.48 | ) | (1.33 | ) | (0.19 | ) | (1.27 | ) | (1.46 | ) | 9.35 | (12.99% | ) | 343,432 | 0.88% | 1.30% | ||||||||||||||||||||||||||||||
12/31/17 | 11.79 | 0.20 | 1.09 | 1.29 | (0.19 | ) | (0.75 | ) | (0.94 | ) | 12.14 | 11.70% | 438,601 | 0.88% | 1.69% | |||||||||||||||||||||||||||||||||
12/31/16 | 10.74 | 0.17 | 2.22 | 2.39 | (0.19 | ) | (1.15 | ) | (1.34 | ) | 11.79 | 23.23% | 433,046 | 0.88% | 1.55% | |||||||||||||||||||||||||||||||||
12/31/15 | 13.12 | 0.16 | (0.43 | ) | (0.27 | ) | (0.25 | ) | (1.86 | ) | (2.11 | ) | 10.74 | (1.45% | ) | 427,920 | 0.88% | 1.26% | ||||||||||||||||||||||||||||||
12/31/14 | 13.65 | 0.19 | 1.97 | 2.16 | (0.24 | ) | (2.45 | ) | (2.69 | ) | 13.12 | 16.66% | 465,533 | 0.88% | 1.39% | |||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 9.18 | $ | 0.08 | $ | 1.50 | $ | 1.58 | $ | - | $ | - | $ | - | $ | 10.76 | 17.21% | b | $ | 50,050 | 1.13% | a | 1.65% | a | ||||||||||||||||||||||||
12/31/18 | 11.96 | 0.12 | (1.47 | ) | (1.35 | ) | (0.16 | ) | (1.27 | ) | (1.43 | ) | 9.18 | (13.31% | ) | 43,275 | 1.13% | 1.06% | ||||||||||||||||||||||||||||||
12/31/17 | 11.63 | 0.17 | 1.08 | 1.25 | (0.17 | ) | (0.75 | ) | (0.92 | ) | 11.96 | 11.46% | 49,723 | 1.13% | 1.46% | |||||||||||||||||||||||||||||||||
12/31/16 | 10.62 | 0.15 | 2.18 | 2.33 | (0.17 | ) | (1.15 | ) | (1.32 | ) | 11.63 | 22.86% | 44,148 | 1.13% | 1.35% | |||||||||||||||||||||||||||||||||
12/31/15 | 12.99 | 0.12 | (0.41 | ) | (0.29 | ) | (0.22 | ) | (1.86 | ) | (2.08 | ) | 10.62 | (1.60% | ) | 32,950 | 1.13% | 1.03% | ||||||||||||||||||||||||||||||
12/31/14 | 13.55 | 0.16 | 1.94 | 2.10 | (0.21 | ) | (2.45 | ) | (2.66 | ) | 12.99 | 16.33% | 30,017 | 1.13% | 1.16% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 19 | % | 59 | % | 42 | % | 52 | % | 68 | % | 66 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
141
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Small Cap Growth Equity Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000's) | Ratio of expenses to average daily net assets before expense waivers | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 12.82 | $ | (0.00 | )d | $ | 3.22 | $ | 3.22 | $ | - | $ | - | $ | 16.04 | 25.13 | %b | $ | 173,378 | 1.10 | %a | 1.08 | %a | (0.03 | %)a | |||||||||||||||||||||||
12/31/18 | 14.98 | (0.03 | ) | (0.32 | ) | (0.35 | ) | (1.81 | ) | (1.81 | ) | 12.82 | (4.87 | %) | 151,854 | 1.09 | % | 1.07 | % | (0.17 | %) | |||||||||||||||||||||||||||
12/31/17 | 12.69 | (0.03 | ) | 2.87 | 2.84 | (0.55 | ) | (0.55 | ) | 14.98 | 22.81 | % | 198,404 | 1.09 | % | 1.09 | %k | (0.21 | %) | |||||||||||||||||||||||||||||
12/31/16 | 13.51 | 0.00 | d | 1.59 | 1.59 | (2.41 | ) | (2.41 | ) | 12.69 | 12.74 | % | 191,245 | 1.10 | % | N/A | 0.01 | % | ||||||||||||||||||||||||||||||
12/31/15 | 17.85 | (0.04 | ) | (0.74 | ) | (0.78 | ) | (3.56 | ) | (3.56 | ) | 13.51 | (5.11 | %) | 194,889 | 1.09 | % | N/A | (0.22 | %) | ||||||||||||||||||||||||||||
12/31/14 | 22.81 | (0.09 | ) | 1.21 | 1.12 | (6.08 | ) | (6.08 | ) | 17.85 | 5.92 | % | 253,096 | 1.08 | % | N/A | (0.43 | %) | ||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 12.11 | $ | (0.02 | ) | $ | 3.04 | $ | 3.02 | $ | - | $ | - | $ | 15.13 | 24.97 | %b | $ | 23,943 | 1.35 | %a | 1.33 | %a | (0.28 | %)a | |||||||||||||||||||||||
12/31/18 | 14.27 | (0.06 | ) | (0.29 | ) | (0.35 | ) | (1.81 | ) | (1.81 | ) | 12.11 | (5.11 | %) | 19,281 | 1.34 | % | 1.32 | % | (0.39 | %) | |||||||||||||||||||||||||||
12/31/17 | 12.14 | (0.06 | ) | 2.74 | 2.68 | (0.55 | ) | (0.55 | ) | 14.27 | 22.51 | % | 16,124 | 1.35 | % | 1.34 | % | (0.45 | %) | |||||||||||||||||||||||||||||
12/31/16 | 13.05 | (0.03 | ) | 1.53 | 1.50 | (2.41 | ) | (2.41 | ) | 12.14 | 12.46 | % | 12,969 | 1.35 | % | N/A | (0.23 | %) | ||||||||||||||||||||||||||||||
12/31/15 | 17.40 | (0.07 | ) | (0.72 | ) | (0.79 | ) | (3.56 | ) | (3.56 | ) | 13.05 | (5.33 | %) | 11,375 | 1.34 | % | N/A | (0.46 | %) | ||||||||||||||||||||||||||||
12/31/14 | 22.44 | (0.13 | ) | 1.17 | 1.04 | (6.08 | ) | (6.08 | ) | 17.40 | 5.62 | % | 9,977 | 1.33 | % | N/A | (0.67 | %) |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 31 | % | 76 | % | 74 | % | 105 | % | 78 | % | 78 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
d | Amount is less than $0.005 per share. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
k | Amount waived had no impact on the ratio of expenses to average daily net assets. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
142
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Small Company Value Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waivers | Ratio of expenses to average daily net assets after expense waiversj | Net investment income (loss) to average daily net assets | ||||||||||||||||||||||||||||||||||||||||
Class II |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 13.86 | $ | 0.03 | $ | 2.36 | $ | 2.39 | $ | - | $ | - | $ | - | $ | 16.25 | 17.17% | b | $ | 74,974 | 1.04% | a | 0.99% | a | 0.38% | a | ||||||||||||||||||||||||||
12/31/18 | 16.90 | 0.05 | (2.01 | ) | (1.96 | ) | (0.06 | ) | (1.02 | ) | (1.08 | ) | 13.86 | (12.94% | ) | 66,976 | 1.02% | 0.97% | 0.30% | |||||||||||||||||||||||||||||||||
12/31/17 | 17.23 | 0.05 | 1.73 | 1.78 | (0.10 | ) | (2.01 | ) | (2.11 | ) | 16.90 | 11.69% | 89,256 | 1.02% | 0.97% | 0.30% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 14.88 | 0.10 | 4.44 | 4.54 | (0.10 | ) | (2.09 | ) | (2.19 | ) | 17.23 | 32.46% | 88,729 | 1.02% | 0.97% | 0.66% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 17.59 | 0.10 | (1.06 | ) | (0.96 | ) | (0.06 | ) | (1.69 | ) | (1.75 | ) | 14.88 | (5.36% | ) | 88,068 | 1.09% | 1.05% | 0.62% | |||||||||||||||||||||||||||||||||
12/31/14 | 23.88 | 0.05 | (0.01 | ) | 0.04 | - | (6.33 | ) | (6.33 | ) | 17.59 | 0.47% | 95,788 | 1.17% | 1.15% | 0.26% | ||||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 13.43 | $ | 0.01 | $ | 2.30 | $ | 2.31 | $ | - | $ | - | $ | - | $ | 15.74 | 17.13% | b | $ | 23,057 | 1.29% | a | 1.24% | a | 0.13% | a | ||||||||||||||||||||||||||
12/31/18 | 16.43 | 0.01 | (1.96 | ) | (1.95 | ) | (0.03 | ) | (1.02 | ) | (1.05 | ) | 13.43 | (13.19% | ) | 19,861 | 1.27% | 1.22% | 0.06% | |||||||||||||||||||||||||||||||||
12/31/17 | 16.83 | 0.01 | 1.68 | 1.69 | (0.08 | ) | (2.01 | ) | (2.09 | ) | 16.43 | 11.42% | 20,671 | 1.27% | 1.22% | 0.06% | ||||||||||||||||||||||||||||||||||||
12/31/16 | 14.58 | 0.07 | 4.34 | 4.41 | (0.07 | ) | (2.09 | ) | (2.16 | ) | 16.83 | 32.16% | 15,465 | 1.27% | 1.22% | 0.44% | ||||||||||||||||||||||||||||||||||||
12/31/15 | 17.29 | 0.06 | (1.06 | ) | (1.00 | ) | (0.02 | ) | (1.69 | ) | (1.71 | ) | 14.58 | (5.65% | ) | 10,829 | 1.33% | 1.30% | 0.37% | |||||||||||||||||||||||||||||||||
12/31/14 | 23.63 | 0.00 | d | (0.01 | ) | (0.01 | ) | - | (6.33 | ) | (6.33 | ) | 17.29 | 0.24% | 10,726 | 1.42% | 1.40% | 0.02% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 11 | % | 22 | % | 14 | % | 23 | % | 44 | % | 22 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
d | Amount is less than $0.005 per share. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
143
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Small/Mid Cap Value Fund
Income (loss) from investment operations | Less distributions to shareholders | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets | Net investment income (loss) to average daily net assets | |||||||||||||||||||||||||||||||||||||
Initial Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 10.61 | $ | 0.06 | $ | 1.45 | $ | 1.51 | $ | - | $ | - | $ | - | $ | 12.12 | 14.12% | b | $ | 177,232 | 0.80% | a | 1.07% | a | ||||||||||||||||||||||||
12/31/18 | 13.99 | 0.09 | (1.87 | ) | (1.78 | ) | (0.07 | ) | (1.53 | ) | (1.60 | ) | 10.61 | (15.00% | ) | 163,607 | 0.80% | 0.63% | ||||||||||||||||||||||||||||||
12/31/17 | 13.23 | 0.06 | 1.60 | 1.66 | (0.07 | ) | (0.83 | ) | (0.90 | ) | 13.99 | 13.44% | 210,030 | 0.80% | 0.47% | |||||||||||||||||||||||||||||||||
12/31/16 | 11.34 | 0.06 | 2.70 | 2.76 | (0.07 | ) | (0.80 | ) | (0.87 | ) | 13.23 | 25.10% | 211,849 | 0.79% | 0.51% | |||||||||||||||||||||||||||||||||
12/31/15 | 14.69 | 0.07 | (0.89 | ) | (0.82 | ) | (0.11 | ) | (2.42 | ) | (2.53 | ) | 11.34 | (5.53% | ) | 197,297 | 0.79% | 0.50% | ||||||||||||||||||||||||||||||
12/31/14 | 13.80 | 0.11 | 1.19 | 1.30 | (0.09 | ) | (0.32 | ) | (0.41 | ) | 14.69 | 9.45% | 236,399 | 0.79% | 0.80% | |||||||||||||||||||||||||||||||||
Service Class |
| |||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 10.50 | $ | 0.05 | $ | 1.42 | $ | 1.47 | $ | - | $ | - | $ | - | $ | 11.97 | 14.00% | b | $ | 22,239 | 1.05% | a | 0.83% | a | ||||||||||||||||||||||||
12/31/18 | 13.85 | 0.05 | (1.83 | ) | (1.78 | ) | (0.04 | ) | (1.53 | ) | (1.57 | ) | 10.50 | (15.12% | ) | 19,189 | 1.05% | 0.39% | ||||||||||||||||||||||||||||||
12/31/17 | 13.12 | 0.03 | 1.57 | 1.60 | (0.04 | ) | (0.83 | ) | (0.87 | ) | 13.85 | 13.08% | 22,386 | 1.05% | 0.23% | |||||||||||||||||||||||||||||||||
12/31/16 | 11.25 | 0.03 | 2.68 | 2.71 | (0.04 | ) | (0.80 | ) | (0.84 | ) | 13.12 | 24.83% | 19,563 | 1.04% | 0.26% | |||||||||||||||||||||||||||||||||
12/31/15 | 14.59 | 0.04 | (0.89 | ) | (0.85 | ) | (0.07 | ) | (2.42 | ) | (2.49 | ) | 11.25 | (5.74% | ) | 15,919 | 1.04% | 0.27% | ||||||||||||||||||||||||||||||
12/31/14 | 13.72 | 0.08 | 1.18 | 1.26 | (0.07 | ) | (0.32 | ) | (0.39 | ) | 14.59 | 9.16% | 15,484 | 1.04% | 0.56% |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 18 | % | 38 | % | 34 | % | 58 | % | 42 | % | 46 | % |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
r | Unaudited. |
The accompanying notes are an integral part of the financial statements.
144
Table of Contents
MML Series Investment Fund – Financial Statements(Continued)
Financial Highlights(For a share outstanding throughout each period)
MML Total Return Bond Fund
| Income (loss) from investment operations | | | Less distributions to shareholders | | Ratios / Supplemental Data | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of the period | Net investment income (loss)c,j | Net realized and unrealized gain (loss) on investments | Total income (loss) from investment operations | From net investment income | From net realized gains | Total distributions | Net asset value, end of the period | Total returnm | Net assets, end of the period (000’s) | Ratio of expenses to average daily net assets before expense waivers (including interest expense) | Ratio of expenses to average daily net assets after expense waivers (including interest expense)j | Ratio of expenses to average daily net assets after expense waivers (excluding interest expense)j | Net investment income (loss) to average daily net assets (including interest expense) | |||||||||||||||||||||||||||||||||||||||||||
Class II |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 10.16 | $ | 0.14 | $ | 0.51 | $ | 0.65 | $ | - | $ | - | $ | - | $ | 10.81 | 6.40% | b | $ | 355,819 | 0.60% | a | 0.60% | a,k | N/A | 2.74% | a | |||||||||||||||||||||||||||||
12/31/18 | 10.36 | 0.25 | (0.26 | ) | (0.01 | ) | (0.19 | ) | - | (0.19 | ) | 10.16 | (0.07% | ) | 353,571 | 0.60% | 0.60% | l | N/A | 2.51% | ||||||||||||||||||||||||||||||||||||
12/31/17 | 10.27 | 0.19 | 0.11 | 0.30 | (0.21 | ) | - | (0.21 | ) | 10.36 | 2.96% | 408,199 | 0.62% | 0.60% | N/A | 1.85% | ||||||||||||||||||||||||||||||||||||||||
12/31/16 | 10.19 | 0.17 | 0.09 | 0.26 | (0.18 | ) | - | (0.18 | ) | 10.27 | 2.52% | 393,276 | 0.62% | 0.60% | N/A | 1.67% | ||||||||||||||||||||||||||||||||||||||||
12/31/15 | 10.64 | 0.14 | (0.11 | ) | 0.03 | (0.36 | ) | (0.12 | ) | (0.48 | ) | 10.19 | 0.24% | 328,928 | 0.66% | 0.60% | N/A | 1.32% | ||||||||||||||||||||||||||||||||||||||
12/31/14 | 10.34 | 0.13 | 0.36 | 0.49 | (0.19 | ) | - | (0.19 | ) | 10.64 | 4.75% | 403,732 | 0.70% | p | 0.65% | p | 0.65% | n | 1.27% | p | ||||||||||||||||||||||||||||||||||||
Service Class I |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/19r | $ | 10.06 | $ | 0.13 | $ | 0.50 | $ | 0.63 | $ | - | $ | - | $ | - | $ | 10.69 | 6.26% | b | $ | 29,815 | 0.85% | a | 0.85% | a,k | N/A | 2.49% | a | |||||||||||||||||||||||||||||
12/31/18 | 10.27 | 0.23 | (0.27 | ) | (0.04 | ) | (0.17 | ) | - | (0.17 | ) | 10.06 | (0.35% | ) | 25,533 | 0.85% | 0.85% | l | N/A | 2.28% | ||||||||||||||||||||||||||||||||||||
12/31/17 | 10.18 | 0.16 | 0.12 | 0.28 | (0.19 | ) | - | (0.19 | ) | 10.27 | 2.73% | 21,858 | 0.87% | 0.85% | N/A | 1.60% | ||||||||||||||||||||||||||||||||||||||||
12/31/16 | 10.11 | 0.15 | 0.09 | 0.24 | (0.17 | ) | - | (0.17 | ) | 10.18 | 2.30% | 19,079 | 0.87% | 0.85% | N/A | 1.43% | ||||||||||||||||||||||||||||||||||||||||
12/31/15 | 10.57 | 0.11 | (0.11 | ) | (0.00 | )d | (0.34 | ) | (0.12 | ) | (0.46 | ) | 10.11 | (0.05% | ) | 17,161 | 0.90% | 0.85% | N/A | 1.09% | ||||||||||||||||||||||||||||||||||||
12/31/14 | 10.29 | 0.10 | 0.35 | 0.45 | (0.17 | ) | - | (0.17 | ) | 10.57 | 4.43% | 14,435 | 0.95% | p | 0.90% | p | 0.90% | n | 1.00% | p |
Six months ended June 30, 2019b,r | Year ended December 31 | |||||||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||||
Portfolio turnover rate | 101 | % | 250 | % | 313 | % | 278 | % | 322 | % | 447 | %u |
a | Annualized. |
b | Percentage represents the results for the period and is not annualized. |
c | Per share amount calculated on the average shares method. |
d | Amount is less than $0.005 per share. |
j | Computed after giving effect to an agreement by MML Advisers and/or MassMutual to waive certain fees and expenses of the Fund. |
k | Amount waived had no impact on the ratio of expenses to average daily net assets. |
l | Expenses incurred during the period fell under the expense cap. |
m | Total return does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. |
n | Amount of interest expense had no impact on the ratio of expenses to average daily net assets. |
p | Interest expense incurred as a result of entering into reverse repurchase agreements is included in the Fund’s net expenses in the Statements of Operations. Income earned on investing proceeds from reverse repurchase agreements is included in interest income in the Statements of Operations. |
r | Unaudited. |
u | Excludes Treasury roll transactions. Including these transactions, the portfolio turnover would have been 479% for the year ended December 31, 2014. |
The accompanying notes are an integral part of the financial statements.
145
Table of Contents
1. | The Funds |
MML Series Investment Fund (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized under the laws of the Commonwealth of Massachusetts as a Massachusetts business trust pursuant to an Agreement and Declaration of Trust dated December 19, 1984, as restated May 14, 1993, and further amended and restated as of December 15, 2011, as it may be further amended from time to time. The following are 19 series of the Trust (each individually referred to as a “Fund” or collectively as the “Funds”):
MML Blue Chip Growth Fund (“Blue Chip Growth Fund”)
MML Equity Income Fund (“Equity Income Fund”)
MML Equity Index Fund (“Equity Index Fund”)
MML Focused Equity Fund (“Focused Equity Fund”)
MML Foreign Fund (“Foreign Fund”)
MML Fundamental Growth Fund (“Fundamental Growth Fund”)
MML Fundamental Value Fund (“Fundamental Value Fund”)
MML Global Fund (“Global Fund”)
MML Growth & Income Fund (“Growth & Income Fund”)
MML Income & Growth Fund (“Income & Growth Fund”)
MML International Equity Fund (“International Equity Fund”)
MML Large Cap Growth Fund (“Large Cap Growth Fund”)
MML Managed Volatility Fund (“Managed Volatility Fund”)
MML Mid Cap Growth Fund (“Mid Cap Growth Fund”)
MML Mid Cap Value Fund (“Mid Cap Value Fund”)
MML Small Cap Growth Equity Fund (“Small Cap Growth Equity Fund”)
MML Small Company Value Fund (“Small Company Value Fund”)
MML Small/Mid Cap Value Fund (“Small/Mid Cap Value Fund”)
MML Total Return Bond Fund (“Total Return Bond Fund”)
The Trust makes shares of the Funds available for the investment of assets of various separate investment accounts established by Massachusetts Mutual Life Insurance Company (“MassMutual”) and by life insurance companies which are subsidiaries of MassMutual. Shares of the Trust are not offered to the general public. MassMutual, MML Bay State Life Insurance Company, C.M. Life Insurance Company, and the MML Allocation Funds, which are “funds of funds” series of the Trust, are the record owners of all of the outstanding shares of the Funds.
Each share class of a Fund represents an interest in the same portfolio of assets. The principal difference among the classes is the level of service and administration fees, and shareholder and distribution service expenses borne by the classes. Because each class will have different fees and expenses, performance and share prices will vary between the classes. The classes of shares are offered to different types of investors, as outlined in the Funds’ Prospectus.
2. | Significant Accounting Policies |
The following is a summary of significant accounting policies followed consistently by each Fund in the preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”). The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services — Investment Companies.
146
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Investment Valuation
The net asset value of each Fund’s shares is determined once daily as of the close of regular trading on the New York Stock Exchange (“NYSE”), on each day the NYSE is open for trading (a “business day”). The NYSE normally closes at 4:00 p.m. Eastern Time, but may close earlier on some days. If the NYSE is scheduled to close early, the business day will be considered to end as of the time of the NYSE’s scheduled close. A Fund will not treat an intraday disruption in NYSE trading or other event that causes an unscheduled closing of the NYSE as a close of business of the NYSE for these purposes and will instead fair value securities in accordance with procedures approved annually by the Board of Trustees (“Trustees”), and under the general oversight of the Trustees. On holidays and other days when the NYSE is closed, each Fund’s net asset value generally is not calculated and the Funds do not anticipate accepting buy or sell orders. However, the value of each Fund’s assets may still be affected on such days to the extent that a Fund holds foreign securities that trade on days that foreign securities markets are open.
Equity securities and derivative contracts that are actively traded on a national securities exchange or contract market are valued on the basis of information furnished by a pricing service, which provides the last reported sale price, or, in the case of futures contracts, the settlement price, for securities or derivatives listed on the exchange or contract market or the official closing price on the NASDAQ National Market System (“NASDAQ System”), or in the case ofover-the-counter (“OTC”) securities for which an official closing price is unavailable or not reported on the NASDAQ System, the last reported bid price. Portfolio securities traded on more than one national securities exchange are valued at the last price at the close of the exchange representing the principal market for such securities. Debt securities are valued on the basis of valuations furnished by a pricing service, which generally determines valuations taking into account factors such asinstitutional-size trading in similar securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. Shares of otheropen-end mutual funds are valued at their closing net asset values as reported on each business day.
Investments for which market quotations are readily available are marked to market daily based on those quotations. Market quotations may be provided by third-party vendors or market makers, and may be determined on the basis of a variety of factors, such as broker quotations, financial modeling, and other market data, such as market indexes and yield curves, counterparty information, and foreign exchange rates. U.S. Government and agency securities may be valued on the basis of market quotations or using a model that may incorporate market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, quoted market prices, and reference data. The fair values of OTC derivative contracts, including forward, swap, and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices, may be based on market quotations or may be modeled using a series of techniques, including simulation models, depending on the contract and the terms of the transaction. The fair values of asset-backed securities and mortgage-backed securities are estimated based on models that consider the estimated cash flows of each debt tranche of the issuer, established benchmark yield, and estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche, including, but not limited to, prepayment speed assumptions and attributes of the collateral. Restricted securities are generally valued at a discount to similar publicly traded securities.
Investments for which market quotations are not available or for which a pricing service or vendor does not provide a value, or for which such market quotations or values are considered by the investment adviser or subadviser to be unreliable (including, for example, certain foreign securities, thinly-traded securities, certain restricted securities, certain initial public offerings, or securities whose values may have been affected by a significant event) are stated at fair valuations determined in good faith by the Funds’ Valuation Committee1 in accordance with procedures approved annually by the Trustees, and under the general oversight of the Trustees. The Funds’ Valuation Committee employs various methods to determine fair valuations including a regular review of significant inputs and assumptions and review of any related market activity. The Funds’ Valuation Committee reports to the Trustees at its regularly scheduled meetings. It is possible that fair value prices will be used by the Funds to a significant extent. The value determined for an investment using the Funds’ fair value procedures may differ from recent market prices for the investment and may be significantly different from the value realized upon the sale of such investment.
The Funds may invest in securities that are traded principally in foreign markets and that trade on weekends and other days when the Funds do not price their shares. As a result, the values of the Funds’ portfolio securities may change on days when the prices of
1 | The Valuation Committee consists of the President, Treasurer, Assistant Treasurers, Vice Presidents (except for the CCO), Secretary, and Assistant Secretaries of the Trust, as well as such other members as the Trustees may from time to time designate. The Valuation Committee reviews and determines the fair valuation of portfolio securities and the Funds’ pricing procedures in general. |
147
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
the Funds’ shares are not calculated. The prices of the Funds’ shares will reflect any such changes when the prices of the Funds’ shares are next calculated, which is the next business day. The Funds may use fair value pricing more frequently for securities primarily traded in foreign markets because, among other things, most foreign markets close well before the Funds value their securities. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim. The Funds’ investments may be priced based on fair values provided by a third-party vendor, based on certain factors and methodologies applied by such vendor, in the event that there is movement in the U.S. market, between the close of the foreign market and the time the Funds calculate their net asset values. All assets and liabilities expressed in foreign currencies are converted into U.S. dollars at the mean between the buying and selling rates of such currencies against the U.S. dollar at the end of each business day.
For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and any other investments fair valued using significant unobservable inputs, as described below, the fair valuation approaches used by third party service providers and/or the Funds’ subadvisers utilize one or a combination of, but not limited to, the following inputs:
Market approach: (i) recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii) market multiples of comparable issuers.
Income approach: (i) future cash flows discounted to present value and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts, and/or default rates.
Cost approach: (i) audited or unaudited financial statements, investor communications, and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii) relevant news and other public sources; and (iv) known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.
Investments in series of preferred stock issued by Private Companies are typically valued utilizing Market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as the current value method (“CVM”), an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The CVM allocates value among the various parts of a company’s capital structure assuming that the value of convertible preferred stock is represented by the most favorable claim the preferred stockholders have on the enterprise value as of the valuation date. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.
The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by a Fund. Typically, the most recently available information for a Private Company is as of a date that is earlier than the date a Fund is calculating its net asset value. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-tier hierarchy is utilized to maximize the use of observable market data inputs and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in
148
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
the three broad Levels listed below. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments and the determination of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to each security.
Level 1 – quoted prices (unadjusted) in active markets for identical investments that the Funds can access at the measurement date
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 – significant unobservable inputs, to the extent observable inputs are not available (including the Funds’ own assumptions in determining the fair value of investments)
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.
Changes in valuation techniques may result in transfers in or out of an investment’s assigned Level within the hierarchy. In addition, in periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition, as well as changes related to liquidity of investments, could cause a security to be reclassified between Levels.
In certain cases, 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 is determined based on the lowest Level input that is significant to the overall fair value measurement.
The Fundamental Value Fund, Income & Growth Fund, and Small/Mid Cap Value Fund characterized all long-term investments at Level 1, and all short-term investments at Level 2, as of June 30, 2019. For each Fund noted in the preceding sentence, the level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.
The following is the aggregate value by input level, as of June 30, 2019, for the remaining Funds’ investments:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Blue Chip Growth Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 399,510,170 | $ | 9,256,209 | * | $ | 775,038 | ** | $ | 409,541,417 | ||||||
Mutual Funds | 94,743 | - | - | 94,743 | ||||||||||||
Short-Term Investments | 1,059 | 1,337,946 | - | 1,339,005 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 399,605,972 | $ | 10,594,155 | $ | 775,038 | $ | 410,975,165 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Equity Income Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 422,491,124 | $ | 15,914,534 | * | $ | - | $ | 438,405,658 | |||||||
Preferred Stock | 11,891,138 | - | - | 11,891,138 | ||||||||||||
Corporate Debt | - | 3,104,128 | - | 3,104,128 | ||||||||||||
Mutual Funds | 381,536 | - | - | 381,536 | ||||||||||||
Short-Term Investments | 1,059 | 7,005,537 | - | 7,006,596 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 434,764,857 | $ | 26,024,199 | $ | - | $ | 460,789,056 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Derivatives | ||||||||||||||||
Futures Contracts | $ | (4,667 | ) | $ | - | $ | - | $ | (4,667 | ) | ||||||
|
|
|
|
|
|
|
|
149
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Equity Index Fund | �� | |||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 544,372,047 | $ | - | $ | - | $ | 544,372,047 | ||||||||
Mutual Funds | 254,943 | - | - | 254,943 | ||||||||||||
Short-Term Investments | - | 5,388,120 | - | 5,388,120 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 544,626,990 | $ | 5,388,120 | $ | - | $ | 550,015,110 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Asset Derivatives | ||||||||||||||||
Futures Contracts | $ | 69,089 | $ | - | $ | - | $ | 69,089 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Focused Equity Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 274,010,661 | $ | 12,558,011 | * | $ | - | $ | 286,568,672 | |||||||
Short-Term Investments | - | 5,640,314 | - | 5,640,314 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 274,010,661 | $ | 18,198,325 | $ | - | $ | 292,208,986 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Foreign Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock* | ||||||||||||||||
Canada | $ | 8,016,241 | $ | - | $ | - | $ | 8,016,241 | ||||||||
Cayman Islands | 3,306,031 | 9,357,144 | - | 12,663,175 | ||||||||||||
China | - | 7,562,299 | - | 7,562,299 | ||||||||||||
Denmark | - | 4,421,947 | - | 4,421,947 | ||||||||||||
France | - | 43,197,570 | - | 43,197,570 | ||||||||||||
Germany | - | 38,400,557 | - | 38,400,557 | ||||||||||||
Hong Kong | - | 7,897,748 | - | 7,897,748 | ||||||||||||
Ireland | - | 10,834,020 | - | 10,834,020 | ||||||||||||
Israel | 3,085,294 | - | - | 3,085,294 | ||||||||||||
Italy | - | 7,266,012 | - | 7,266,012 | ||||||||||||
Japan | - | 43,006,664 | - | 43,006,664 | ||||||||||||
Luxembourg | - | 4,865,023 | - | 4,865,023 | ||||||||||||
Netherlands | 4,675,519 | 10,732,416 | - | 15,407,935 | ||||||||||||
Norway | - | 3,779,764 | - | 3,779,764 | ||||||||||||
Republic of Korea | 4,240,784 | 11,637,322 | - | 15,878,106 | ||||||||||||
Singapore | - | 5,252,955 | - | 5,252,955 | ||||||||||||
Switzerland | - | 15,225,560 | - | 15,225,560 | ||||||||||||
Taiwan | - | 4,296,961 | - | 4,296,961 | ||||||||||||
Thailand | - | 466,843 | - | 466,843 | ||||||||||||
United Kingdom | 6,685,224 | 42,904,609 | - | 49,589,833 | ||||||||||||
Mutual Funds | 2,093,504 | - | - | 2,093,504 | ||||||||||||
Short-Term Investments | - | 8,815,856 | - | 8,815,856 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 32,102,597 | $ | 279,921,270 | $ | - | $ | 312,023,867 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Fundamental Growth Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 108,566,447 | $ | 1,136,982 | * | $ | - | $ | 109,703,429 | |||||||
Short-Term Investments | - | 1,152,201 | - | 1,152,201 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 108,566,447 | $ | 2,289,183 | $ | - | $ | 110,855,630 | ||||||||
|
|
|
|
|
|
|
|
150
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Global Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock* | ||||||||||||||||
Austria | $ | - | $ | 1,462,362 | $ | - | $ | 1,462,362 | ||||||||
Brazil | 1,422,511 | - | - | 1,422,511 | ||||||||||||
Canada | 8,078,220 | - | - | 8,078,220 | ||||||||||||
Cayman Islands | - | 763,142 | - | 763,142 | ||||||||||||
Denmark | - | 2,826,911 | - | 2,826,911 | ||||||||||||
France | - | 48,407,973 | - | 48,407,973 | ||||||||||||
Germany | - | 17,412,885 | - | 17,412,885 | ||||||||||||
Ireland | 26,017,560 | 7,210,603 | - | 33,228,163 | ||||||||||||
Israel | 5,134,818 | - | - | 5,134,818 | ||||||||||||
Japan | - | 12,726,240 | - | 12,726,240 | ||||||||||||
Mexico | 1,179,535 | - | - | 1,179,535 | ||||||||||||
Netherlands | 1,707,985 | 9,881,408 | - | 11,589,393 | ||||||||||||
Republic of Korea | - | 3,388,029 | - | 3,388,029 | ||||||||||||
Spain | - | 5,490,687 | - | 5,490,687 | ||||||||||||
Sweden | - | 9,669,630 | - | 9,669,630 | ||||||||||||
Switzerland | - | 32,073,140 | - | 32,073,140 | ||||||||||||
Thailand | - | 864,467 | - | 864,467 | ||||||||||||
United Kingdom | 7,240,559 | 31,860,419 | - | 39,100,978 | ||||||||||||
United States | 193,244,830 | - | - | 193,244,830 | ||||||||||||
Short-Term Investments | - | 2,886,517 | - | 2,886,517 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 244,026,018 | $ | 186,924,413 | $ | - | $ | 430,950,431 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Growth & Income Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 137,686,643 | $ | 7,657,631 | * | $ | - | $ | 145,344,274 | |||||||
Short-Term Investments | - | 1,141,973 | - | 1,141,973 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 137,686,643 | $ | 8,799,604 | $ | - | $ | 146,486,247 | ||||||||
|
|
|
|
|
|
|
| |||||||||
International Equity Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock* | ||||||||||||||||
Australia | $ | - | $ | 3,829,450 | $ | - | $ | 3,829,450 | ||||||||
Canada | 2,688,243 | - | - | 2,688,243 | ||||||||||||
Cayman Islands | 2,206,955 | - | - | 2,206,955 | ||||||||||||
France | - | 21,482,251 | - | 21,482,251 | ||||||||||||
Germany | - | 30,755,491 | - | 30,755,491 | ||||||||||||
India | - | 526,158 | - | 526,158 | ||||||||||||
Indonesia | - | 1,994,802 | - | 1,994,802 | ||||||||||||
Ireland | 5,529,344 | - | - | 5,529,344 | ||||||||||||
Italy | - | 6,453,880 | - | 6,453,880 | ||||||||||||
Japan | - | 8,342,510 | - | 8,342,510 | ||||||||||||
Mexico | 1,120,832 | - | - | 1,120,832 | ||||||||||||
Netherlands | - | 13,467,718 | - | 13,467,718 | ||||||||||||
Republic of Korea | - | 6,243,342 | - | 6,243,342 | ||||||||||||
South Africa | - | 3,537,119 | - | 3,537,119 | ||||||||||||
Sweden | - | 10,921,785 | - | 10,921,785 | ||||||||||||
Switzerland | - | 14,892,528 | - | 14,892,528 |
151
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
International Equity Fund (Continued) | ||||||||||||||||
Asset Investments (Continued) | ||||||||||||||||
Common Stock* (Continued) | ||||||||||||||||
Taiwan | $ | - | $ | 1,861,362 | $ | - | $ | 1,861,362 | ||||||||
United Kingdom | 3,980,661 | 35,441,804 | - | 39,422,465 | ||||||||||||
Short-Term Investments | - | 6,840,906 | - | 6,840,906 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 15,526,035 | $ | 166,591,106 | $ | - | $ | 182,117,141 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Derivatives | ||||||||||||||||
Forward Contracts | $ | - | $ | (30,515 | ) | $ | - | $ | (30,515 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Large Cap Growth Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 99,416,438 | $ | 2,845,628 | $ | - | $ | 102,262,066 | ||||||||
Short-Term Investments | - | 1,110,906 | - | 1,110,906 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 99,416,438 | $ | 3,956,534 | $ | - | $ | 103,372,972 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Managed Volatility Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 153,673,009 | $ | - | $ | - | $ | 153,673,009 | ||||||||
Corporate Debt | - | - | - | +,** | - | |||||||||||
Mutual Funds | 914 | - | - | 914 | ||||||||||||
Purchased Options | 626,080 | - | - | 626,080 | ||||||||||||
Short-Term Investments | - | 4,489,213 | - | 4,489,213 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 154,300,003 | $ | 4,489,213 | $ | - | $ | 158,789,216 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Derivatives | ||||||||||||||||
Written Options | $ | (3,474,168 | ) | $ | - | $ | - | $ | (3,474,168 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Mid Cap Growth Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 478,028,972 | $ | 118,500 | $ | 1,081,128 | ** | $ | 479,228,600 | |||||||
Preferred Stock | - | - | 2,905,558 | ** | 2,905,558 | |||||||||||
Mutual Funds | 4,314,246 | - | - | 4,314,246 | ||||||||||||
Short-Term Investments | 20,130,527 | 9,460,664 | - | 29,591,191 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 502,473,745 | $ | 9,579,164 | $ | 3,986,686 | $ | 516,039,595 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Mid Cap Value Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 373,541,298 | $ | 32,872,784 | * | $ | - | $ | 406,414,082 | |||||||
Mutual Funds | 13,415,580 | - | - | 13,415,580 | ||||||||||||
Short-Term Investments | - | 3,518,183 | - | 3,518,183 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 386,956,878 | $ | 36,390,967 | $ | - | $ | 423,347,845 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Asset Derivatives | ||||||||||||||||
Forward Contracts | $ | - | $ | 5,086 | $ | - | $ | 5,086 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Derivatives | ||||||||||||||||
Forward Contracts | $ | - | $ | (120,776 | ) | $ | - | $ | (120,776 | ) | ||||||
|
|
|
|
|
|
|
|
152
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Small Cap Growth Equity Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 191,601,282 | $ | - | $ | 222,011 | ** | $ | 191,823,293 | |||||||
Preferred Stock | - | - | 389,764 | ** | 389,764 | |||||||||||
Mutual Funds | 5,967,693 | - | - | 5,967,693 | ||||||||||||
Short-Term Investments | - | 5,806,864 | - | 5,806,864 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 197,568,975 | $ | 5,806,864 | $ | 611,775 | $ | 203,987,614 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Small Company Value Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Common Stock | $ | 96,298,406 | $ | - | $ | - | $ | 96,298,406 | ||||||||
Mutual Funds | 652,099 | - | - | 652,099 | ||||||||||||
Short-Term Investments | 1,048 | 1,908,125 | - | 1,909,173 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 96,951,553 | $ | 1,908,125 | $ | - | $ | 98,859,678 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Return Bond Fund | ||||||||||||||||
Asset Investments | ||||||||||||||||
Bank Loans | $ | - | $ | 985,785 | $ | - | $ | 985,785 | ||||||||
Corporate Debt | - | 103,722,332 | - | 103,722,332 | ||||||||||||
Municipal Obligations | - | 4,861,615 | - | 4,861,615 | ||||||||||||
Non-U.S. Government Agency Obligations | - | 56,403,925 | - | 56,403,925 | ||||||||||||
Sovereign Debt Obligations | - | 402,290 | - | 402,290 | ||||||||||||
U.S. Government Agency Obligations and Instrumentalities | - | 114,009,023 | - | 114,009,023 | ||||||||||||
U.S. Treasury Obligations | - | 92,035,837 | - | 92,035,837 | ||||||||||||
Mutual Funds | 5,464,780 | - | - | 5,464,780 | ||||||||||||
Short-Term Investments | - | 30,741,708 | - | 30,741,708 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 5,464,780 | $ | 403,162,515 | $ | - | $ | 408,627,295 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Asset Derivatives | ||||||||||||||||
Futures Contracts | $ | 1,057,768 | $ | - | $ | - | $ | 1,057,768 | ||||||||
Swap Agreements | - | 401,865 | - | 401,865 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 1,057,768 | $ | 401,865 | $ | - | $ | 1,459,633 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Derivatives | ||||||||||||||||
Futures Contracts | $ | (40,088 | ) | $ | - | $ | - | $ | (40,088 | ) | ||||||
Swap Agreements | - | (368,256 | ) | - | (368,256 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | (40,088 | ) | $ | (368,256 | ) | $ | - | $ | (408,344 | ) | |||||
|
|
|
|
|
|
|
|
* | Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments after the close of trading in their applicable foreign markets, as applicable. |
** | None of the unobservable inputs for Level 3 assets, individually or collectively, had a material impact on the Fund(s). Level 3 investments at the end of the period in relation to net assets were not significant and accordingly, a reconciliation of Level 3 assets for the period ended June 30, 2019 is not presented. |
+ | Represents a security at $0 value as of June 30, 2019. |
153
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
The following table shows Fund(s) with certain assets and liabilities, which approximate fair value and would be categorized at Level 2 as of June 30, 2019.
Statements of Assets and Liabilities location: | Blue | Equity | Equity | Foreign | Managed | Mid | Small | Small | Small/ | Total | ||||||||||
Receivables from: | ||||||||||||||||||||
Collateral pledged for open futures contracts | X | X | ||||||||||||||||||
Collateral pledged for open swaps agreements | X | |||||||||||||||||||
Payables for: | ||||||||||||||||||||
Investments purchased on a when-issued basis | X | X | ||||||||||||||||||
Securities on loan | X | X | X | X | X | X | X | X | X | X | ||||||||||
Due to custodian | X |
The Funds had no Level 3 transfers during the period ended June 30, 2019.
Derivative Instruments
Derivatives are financial instruments whose values are based on the values of one or more indicators, such as a security, asset, currency, interest rate, or index. Derivative transactions can create investment leverage and may be highly volatile. Losses from derivatives can be substantially greater than the derivatives’ original cost and can sometimes be unlimited. A Fund may not be able to close out a derivative transaction at a favorable time or price. For those Funds that held derivatives during the period ended June 30, 2019, the following table shows how the Fund used these types of derivatives during the period (marked with an “A”), as well as additional uses, if any, it may have for them in the future (marked with an “M”).
Type of Derivative and Objective for Use | Equity | Equity | International | Managed | Mid Cap | Total | ||||||
Foreign Currency Exchange Transactions* | ||||||||||||
Hedging/Risk Management | A | A | ||||||||||
Futures Contracts** | ||||||||||||
Hedging/Risk Management | A | A | ||||||||||
Duration/Credit Quality Management | A | |||||||||||
Substitution for Direct Investment | A | M | ||||||||||
Interest Rate Swaps*** | ||||||||||||
Hedging/Risk Management | A | |||||||||||
Duration Management | A | |||||||||||
Options (Purchased) | ||||||||||||
Hedging/Risk Management | A | |||||||||||
Options (Written) | ||||||||||||
Hedging/Risk Management | A | |||||||||||
Income | A |
* | Includes any options purchased or written, futures contracts, forward contracts, and swap agreements, if applicable. |
** | Includes any options purchased or written on futures contracts, if applicable. |
*** | Includes any caps, floors, and collars, and related purchased or written options, if applicable. |
154
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
At June 30, 2019, and during the period then ended, the Fund(s) had the following derivatives and transactions in derivatives, grouped into the indicated risk categories:
Equity Risk | Foreign Exchange Risk | Interest Rate Risk | Total | |||||||||||||
Equity Income Fund | ||||||||||||||||
Liability Derivatives | ||||||||||||||||
Futures Contracts^^ | $ | (4,667 | ) | $ | - | $ | - | $ | (4,667 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Change in Appreciation (Depreciation)## | ||||||||||||||||
Futures Contracts | $ | (4,667 | ) | $ | - | $ | - | $ | (4,667 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Equity Index Fund | ||||||||||||||||
Asset Derivatives | ||||||||||||||||
Futures Contracts^^ | $ | 69,089 | $ | - | $ | - | $ | 69,089 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Realized Gain (Loss)# | ||||||||||||||||
Futures Contracts | $ | 1,618,885 | $ | - | $ | - | $ | 1,618,885 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Appreciation (Depreciation)## | ||||||||||||||||
Futures Contracts | $ | 649,959 | $ | - | $ | - | $ | 649,959 | ||||||||
|
|
|
|
|
|
|
| |||||||||
International Equity Fund | ||||||||||||||||
Liability Derivatives | ||||||||||||||||
Forward Contracts^ | $ | - | $ | (30,515 | ) | $ | - | $ | (30,515 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Realized Gain (Loss)# | ||||||||||||||||
Forward Contracts | $ | - | $ | 156,969 | $ | - | $ | 156,969 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Appreciation (Depreciation)## | ||||||||||||||||
Forward Contracts | $ | - | $ | (107,530 | ) | $ | - | $ | (107,530 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Managed Volatility Fund | ||||||||||||||||
Asset Derivatives | ||||||||||||||||
Purchased Options*,^^^ | $ | 626,080 | $ | - | $ | - | $ | 626,080 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Derivatives | ||||||||||||||||
Written Options^,^^^ | $ | (3,474,168 | ) | $ | - | $ | - | $ | (3,474,168 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Realized Gain (Loss)# | ||||||||||||||||
Purchased Options | $ | (3,877,517 | ) | $ | - | $ | - | $ | (3,877,517 | ) | ||||||
Written Options | (10,640,103 | ) | - | - | (10,640,103 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Realized Gain (Loss) | $ | (14,517,620 | ) | $ | - | $ | - | $ | (14,517,620 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Change in Appreciation (Depreciation)## | ||||||||||||||||
Purchased Options | $ | (267,720 | ) | $ | - | $ | - | $ | (267,720 | ) | ||||||
Written Options | (325,261 | ) | - | - | (325,261 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Change in Appreciation (Depreciation) | $ | (592,981 | ) | $ | - | $ | - | $ | (592,981 | ) | ||||||
|
|
|
|
|
|
|
|
155
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Equity Risk | Foreign Exchange Risk | Interest Rate Risk | Total | |||||||||||||
Mid Cap Value Fund | ||||||||||||||||
Asset Derivatives | ||||||||||||||||
Forward Contracts* | $ | - | $ | 5,086 | $ | - | $ | 5,086 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Derivatives | ||||||||||||||||
Forward Contracts^ | $ | - | $ | (120,776 | ) | $ | - | $ | (120,776 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Realized Gain (Loss)# | ||||||||||||||||
Forward Contracts | $ | - | $ | 215,192 | $ | - | $ | 215,192 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Appreciation (Depreciation)## | ||||||||||||||||
Forward Contracts | $ | - | $ | 64,973 | $ | - | $ | 64,973 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Return Bond Fund | ||||||||||||||||
Asset Derivatives | ||||||||||||||||
Futures Contracts^^ | $ | - | $ | - | $ | 1,057,768 | $ | 1,057,768 | ||||||||
Swap Agreements^^,^^^ | - | - | 401,865 | 401,865 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Value | $ | - | $ | - | $ | 1,459,633 | $ | 1,459,633 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Liability Derivatives | ||||||||||||||||
Futures Contracts^^ | $ | - | $ | - | $ | (40,088 | ) | $ | (40,088 | ) | ||||||
Swap Agreements^^,^^^ | - | - | (368,256 | ) | (368,256 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Value | $ | - | $ | - | $ | (408,344 | ) | $ | (408,344 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Realized Gain (Loss)# | ||||||||||||||||
Futures Contracts | $ | - | $ | - | $ | 1,449,776 | $ | 1,449,776 | ||||||||
Swap Agreements | - | - | 1,545 | 1,545 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Realized Gain (Loss) | $ | - | $ | - | $ | 1,451,321 | $ | 1,451,321 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Change in Appreciation (Depreciation)## | ||||||||||||||||
Futures Contracts | $ | - | $ | - | $ | 16,516 | $ | 16,516 | ||||||||
Swap Agreements | - | - | 14,205 | 14,205 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Change in Appreciation (Depreciation) | $ | - | $ | - | $ | 30,721 | $ | 30,721 | ||||||||
|
|
|
|
|
|
|
|
* | Statements of Assets and Liabilities location: Investments, at value or Receivables from: open forward contracts, as applicable. |
^ | Statements of Assets and Liabilities location: Payables for: open forward contracts or written options outstanding, at value, as applicable. |
^^ | Cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps is reported in “Futures Contracts” and “Swap Agreements” in each applicable Fund’s Portfolio of Investments. Only current day’s variation margin, if any, is reported within the Statements of Assets and Liabilities. |
^^^ | Represents exchange-traded purchased options, centrally cleared swaps, or exchange-traded written options, which are not subject to a master netting agreement. |
# | Statements of Operations location: Amounts are included in net realized gain (loss) on: investment transactions, forward contracts, futures contracts, swap agreements, or written options, as applicable. |
## | Statements of Operations location: Amounts are included in net change in unrealized appreciation (depreciation) on: investment transactions, forward contracts, futures contracts, swap agreements, or written options, as applicable. |
156
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
For the period ended June 30, 2019, the number of contracts, notional amounts, or shares/units for each derivative type was as follows:
Number of Contracts, Notional Amounts, or Shares/Units† | ||||||||||||||||||||
Fund Name | Futures Contracts | Forward Contracts | Swap Agreements | Purchased Options | Written Options | |||||||||||||||
Equity Income Fund | 6 | $ | - | $ | - | - | - | |||||||||||||
Equity Index Fund | 57 | - | - | - | - | |||||||||||||||
International Equity Fund | - | 3,257,048 | - | - | - | |||||||||||||||
Managed Volatility Fund | - | - | - | 542 | 542 | |||||||||||||||
Mid Cap Value Fund | - | 29,159,116 | - | - | - | |||||||||||||||
Total Return Bond Fund | 623 | - | 34,320,000 | - | - |
† | Amount(s) disclosed represent average number of contracts for futures contracts, notional amounts for forward contracts and swap agreements, or shares/units outstanding for purchased options and written options, based on absolute values, which is indicative of volume of this derivative type, for the months that the Fund held such derivatives during the period ended June 30, 2019. |
The following table presents derivative assets by counterparty net of amounts available for offset under a master netting agreement (“MNA”), or similar agreement, and net of the related collateral received by the Fund(s) as of June 30, 2019.
Counterparty | Derivative Assets Subject to an MNA by Counterparty† | Financial Instruments Available for Offset | Collateral Received*** | Net Amount* | ||||||||||||
Mid Cap Value Fund | ||||||||||||||||
Bank of America N.A. | $ | 4,961 | $ | - | $ | - | $ | 4,961 | ||||||||
Morgan Stanley & Co. LLC | 125 | (125 | ) | - | - | |||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 5,086 | $ | (125 | ) | $ | - | $ | 4,961 | ||||||||
|
|
|
|
|
|
|
|
The following table presents derivative liabilities by counterparty net of amounts available for offset under an MNA, or similar agreement, and net of the related collateral pledged by the Fund(s) as of June 30, 2019.
Counterparty | Derivative Liabilities Subject to an MNA by Counterparty† | Financial Instruments Available for Offset | Collateral Pledged*** | Net Amount** | ||||||||||||
International Equity Fund | ||||||||||||||||
State Street Bank and Trust Co. | $ | (30,515 | ) | $ | - | $ | - | $ | (30,515 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Mid Cap Value Fund | ||||||||||||||||
Credit Suisse International | $ | (49,861 | ) | $ | - | $ | - | $ | (49,861 | ) | ||||||
Goldman Sachs & Co. | (40,605 | ) | - | - | (40,605 | ) | ||||||||||
JP Morgan Chase Bank N.A. | (13,985 | ) | - | - | (13,985 | ) | ||||||||||
Morgan Stanley & Co. LLC | (16,325 | ) | 125 | - | (16,200 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
$ | (120,776 | ) | $ | 125 | $ | - | $ | (120,651 | ) | |||||||
|
|
|
|
|
|
|
|
* | Represents the net amount receivable from the counterparty in the event of default. |
** | Represents the net amount payable to the counterparty in the event of default. |
*** | The amount presented here may be less than the total amount of collateral received/pledged as the net amount of derivative assets and liabilities for a counterparty cannot be less than $0. |
† | The amount presented here may be less than the total amount shown in the Statements of Assets and Liabilities as some derivatives held by the counterparty are not covered within the master netting agreements. |
157
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Such agreements typically permit a single net payment in the event of default, including the bankruptcy or insolvency of the counterparty. Typically, the Fund(s) and counterparties are not permitted to sell,re-pledge, or use the collateral they receive.
Further details regarding the derivatives and other investments held by the Fund(s) during the period ended June 30, 2019, are discussed below.
Foreign Currency Exchange Transactions
A Fund may engage in foreign currency exchange transactions for hedging purposes in order to protect against uncertainty in the level of future foreign currency exchange rates, or for other,non-hedging purposes.
A Fund may enter into foreign currency exchange transactions, including foreign currency forward contracts. These contracts call for the Fund to deliver in the future an amount of one currency in return for an amount of another currency, at an exchange rate determined at the time the contract is entered into. Forward contracts are private contractual arrangements and a Fund is subject to the risk that its counterparty will not, or will not be able to, perform its obligations. This type of arrangement may require the Fund to post margin. A Fund may enter into foreign currency exchange transactions in order to hedge against changes in the values of the assets or liabilities denominated in one or more foreign currencies, or otherwise to increase or reduce a Fund’s exposure to various foreign currencies. The use of foreign currency exchange transactions may create investment leverage.
Whenever a Fund enters into a foreign currency exchange transaction, it is subject to the risk that the value of the transaction will move in a direction unfavorable to it. When the Fund uses the transactions for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the transactions, at least in part. If a Fund enters into foreign currency exchange transactions other than for hedging purposes (for example, seeking to profit from an anticipated change in the values of currencies by creating directional exposures in the portfolio with respect to one or more currencies), it will generally be subject to the same risks, but is less likely to have assets or liabilities that will offset any losses on the transactions. There can be no assurance that a Fund will be able to terminate any foreign currency exchange transaction prior to its maturity in order to limit its loss on the transaction.
Forward foreign currency contracts are marked to market daily and the change in their value is recorded by the Funds as an unrealized gain or loss. Forward foreign currency contracts are valued at the settlement price established through dealers or other market sources on the day which they are traded. When a forward foreign currency contract is extinguished, through delivery or offset by entering into another forward foreign currency contract, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was extinguished or offset. The notional or contractual amounts of these instruments do not necessarily represent the amounts potentially subject to risk. The measurement of the risk associated with these instruments is meaningful only when all related and offsetting transactions and counterparty risks are considered.
A Fund’s current exposure to a counterparty is the unrealized appreciation on the contract.
Futures Contracts
A Fund may seek to manage a variety of different risks, such as interest rate risk, equity price risk, and currency risk, through the use of futures contracts. A Fund may use interest rate futures contracts to adjust the interest rate sensitivity (duration) of its portfolio or the credit exposure of the portfolio. Interest rate futures contracts obligate the long or short holder to take or make delivery of a specified quantity of a financial instrument, such as a specific fixed income security, during a specified future period at a specified price. A Fund may use index futures contracts to hedge against broad market risks to its portfolio or to gain broad market exposure when it holds uninvested cash or as an inexpensive substitute for cash investments directly in securities or other assets, including commodities and precious metals. Securities index futures contracts are contracts to buy or sell units of a securities index at a specified future date at a price agreed upon when the contract is made and are settled in cash. Positions in futures contracts may be closed out only on an exchange or board of trade which provides a secondary market for such futures. Because futures contracts are exchange-traded, they typically have minimal exposure to counterparty risk.
158
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Parties to a futures contract are not required to post the entire notional amount of the contract, but rather a small percentage of that amount (by way of margin), both at the time they enter into futures transactions, and then on a daily basis if their positions decline in value; as a result, futures contracts are highly leveraged. Such payments are known as variation margin and are recorded by the Funds as unrealized gains or losses. Because futures markets are highly leveraged, they can be extremely volatile, and there can be no assurance that the pricing of a futures contract will correlate precisely with the pricing of the asset or index underlying it or the asset or liability of the Fund that is the subject of the hedge. It may not always be possible for a Fund to enter into a closing transaction with respect to a futures contract it has entered into, at a favorable time or price. When a Fund enters into a futures transaction, it is subject to the risk that the value of the futures contract will move in a direction unfavorable to it. When a Fund uses futures contracts for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the transactions, at least in part.
When a futures contract is closed, the Fund 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. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.
Swap | Agreements |
Swap agreements are typicallytwo-party contracts entered into primarily by institutional investors. In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments or rates, which may be adjusted for an interest factor. The gross returns to be exchanged or “swapped” between the parties are generally 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 or in a “basket” of securities representing a particular index).
Interest Rate Swaps.When a Fund enters into an interest rate swap, it typically agrees to make payments to its counterparty based on a specified long- or short-term interest rate, and will receive payments from its counterparty based on another interest rate. Other forms of interest rate swap agreements include, among others, interest rate caps, under which, in return for a specified payment stream, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a specified payment stream, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. A Fund may enter into an interest rate swap in order, for example, to hedge against the effect of interest rate changes on the value of specific securities in its portfolio, or to adjust the interest rate sensitivity (duration) or the credit exposure of its portfolio overall, or otherwise as a substitute for a direct investment in debt securities.
Whenever a Fund enters into a swap agreement, it takes on counterparty risk — the risk that its counterparty will be unable or unwilling to meet its obligations under the swap agreement. The Fund also takes the risk that the market will move against its position in the swap agreement. In the case of an interest rate swap, the value of the swap may increase or decrease depending on changes in interest rates. When the Fund enters into any type of swap for hedging purposes, it is likely that the Fund will have an asset or liability that will offset any loss (or gain) on the swap, at least in part. Swap agreements may benon-transferable or otherwise highly illiquid, and a Fund may not be able to terminate or transfer a swap agreement at any particular time or at an acceptable price.
Centrally Cleared Swaps.Certain clearinghouses currently offer clearing for limited types of derivatives transactions, principally certain interest rate swaps, certain index swaps, and credit derivatives. In a cleared derivative transaction, a Fund typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Fund’s exposure to the credit risk of its original counterparty. The Fund will be required to post amounts (“initial margin”) with the clearinghouse or at the instruction of the clearinghouse. The initial margin required by a clearinghouse may be greater than the initial margin the Fund would be required to post in an uncleared transaction. If cash is deposited as the initial margin, it is shown as collateral on a Fund’s Statement of Assets and Liabilities. Swap agreements aremarked-to-market daily and subsequent payments (“variation margin”) are made or received by a Fund depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on a Fund’s Statement of Assets and Liabilities (“Variation margin on open derivative instruments”) and as a component of net change in unrealized appreciation (depreciation) on a Fund’s Statement of Operations. Only a limited number of transaction types are currently eligible for clearing.
159
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
During the term of a swap transaction, changes in the value of the swap are recognized as unrealized gains or losses by marking to market to reflect the market value of the swap. When the swap is terminated, a Fund will record a realized gain or loss equal to the difference, if any, between the proceeds from (or cost of) the closing transaction and a Fund’s basis in the agreement. Upfront swap premium payments paid or received by a Fund, if any, are recorded within the value of the open swap agreement on the Fund’s Statement of Assets and Liabilities and represent payments paid or received upon entering into the swap agreement to compensate for differences between stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, and other relevant factors). These upfront payments are recorded as realized gain or loss on the Fund’s Statement of Operations upon termination or maturity of the swap agreement.
During the term of a swap transaction, the periodic net payments can be made for a set period of time or may be triggered by a predetermined credit event. The net periodic payments may be based on a fixed or variable interest rate, the change in market value of a specified security, basket of securities or index, or the return generated by a security. These periodic payments received or made by the Funds are recorded in the accompanying Statements of Operations as realized gains and losses, respectively.
A Fund’s current exposure to a counterparty is the fair value of the transaction.
Options, Rights, and Warrants
A Fund may purchase and sell put and call options on securities or an index of securities to enhance investment performance or to protect against changes in market prices. A Fund that invests in debt securities may also purchase and sell put and call options to adjust the interest rate sensitivity of its portfolio or the credit exposure of the portfolio.
Call Options.A call option gives the holder the right to purchase, and obligates the writer to sell, a security at the strike price at any time before the expiration date.
Put Options.A put option gives the holder the right to sell, and obligates the writer to buy, a security at the exercise price at any time before the expiration date.
Writing putandcall options. A Fund may write call options on a security it owns, in a “directional” strategy hoping to realize a greater current return through the receipt of premiums. In return for the option premium, the Fund takes the risk that it will have to forego any increase in the value of the security over the strike price. When a Fund has written a call option on a security it does not own, its exposure on such an option is theoretically unlimited. A Fund may enter into closing purchase transactions in order to realize a profit or limit a loss on a previously written call option or, in the case of a call option on a security it owns, to free itself to sell the underlying security or to write another call on the security, or protect a security from being called in an unexpected market rise. Any profits from a closing purchase transaction in the case of a call option on a security a Fund owns may be offset by a decline in the value of the underlying security. Conversely, because increases in the market price of a call option will generally reflect increases in the market price of the underlying security, any loss resulting from a closing purchase transaction relating to a call option on a security a Fund owns is likely to be offset in whole or in part by unrealized appreciation of the underlying security owned by the Fund. A Fund may not be able to close out a call option that it has previously written. A Fund may write put options in order to enhance its current return by taking a long directional position as to a security or index of securities. By writing a put option, the Fund assumes the risk that it may be required to purchase the underlying security for an exercise price higher than its then current market value, resulting in a potential capital loss unless the security later appreciates in value. A Fund may terminate a put option that it has written before it expires by entering into a closing purchase transaction. Any loss from this transaction may be partially or entirely offset by the premium received on the terminated option. A Fund may not be able to close out a put option that it has previously written.
When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amount paid on the underlying investment to determine the realized gain or loss.
Purchasing putandcall options. A Fund may purchase put options to protect portfolio holdings against a decline in market value of a security or securities held by it. A Fund may also purchase a put option hoping to profit from an anticipated decline in the value of the underlying security. If the Fund holds the security underlying the option, the option premium and any transaction costs
160
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
will reduce any profit the Fund might have realized had it sold the underlying security instead of buying the put option. A Fund may purchase call options to hedge against an increase in the price of securities that the Fund wants ultimately to buy. A Fund may also purchase a call option as a long directional investment hoping to profit from an anticipated increase in the value of the underlying security. In order for a call option to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover the premium and transaction costs. These costs will reduce any profit the Fund might have realized had it bought the underlying security at the time it purchased the call option.
When a Fund purchases an option, it runs the risk that it will lose its entire investment in the option in a relatively short period of time, unless the Fund exercises the option or enters into a closing sale transaction before the option’s expiration. If the price of the underlying security does not rise (in the case of a call) or fall (in the case of a put) to an extent sufficient to cover the option premium and transaction costs, the Fund will lose part or all of its investment in the option. This contrasts with an investment by a Fund in the underlying security, since the Fund will not realize a loss if the security’s price does not change. Premiums paid for purchasing options that expire are treated as realized losses.
Exchange Traded Options.Exchange traded options purchased or sold by a Fund may be traded on a securities or options exchange or market. Such options typically have minimal exposure to counterparty risk. However, an exchange or market may at times find it necessary to impose restrictions on particular types of options transactions, such as opening transactions. If an underlying security ceases to meet qualifications imposed by the market or the Options Clearing Corporation, new series of options on that security will no longer be opened to replace expiring series, and opening transactions in existing series may be prohibited. Exchange traded options are valued at the last sale price, or if no sales are reported, the last bid price.
Rights and Warrants.A Fund may purchase or hold warrants or rights in order to gain exposure to the underlying security without owning the security, including, for example, cases where the Fund hopes to lock in the price today of a security it may wish to purchase in the future. Warrants generally give the holder the right, but not the obligation, to buy a security at a stated price. In order for a warrant to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover any premium and transaction costs. Rights may similarly confer on the holder the right to purchase or acquire securities, including through participation in aso-called rights offering. Bonds may be issued with warrants or other rights attached to purchase or acquire equity or other debt securities, typically of the bond issuer. The market prices of bonds with warrants or rights attached to purchase equity securities or bonds may, to some degree, reflect changes in the values of the underlying securities.
When a Fund purchases or otherwise acquires warrants or other rights, it runs the risk that it will lose its entire investment in the warrants or rights, unless the Fund exercises the warrant or right, acquires the underlying securities, or enters into a closing transaction before expiration. If the price of the underlying security does not rise to an extent sufficient to cover any premium and transaction costs, the Fund will lose part or all of its investment. Any premiums or purchase price paid for warrants or other rights that expire are treated as realized losses. Warrants and similar rights differ from options in that they are typically written by the issuer of the security underlying the warrant or right. Although some warrants and rights may benon-transferable, others may be tradedover-the-counter or on an exchange.
Inflation-Linked Securities
Inflation-linked securities are typically fixed income securities whose principal values are periodically adjusted according to a measure of inflation. If the index measuring inflation falls, the principal value of an inflation-linked security will be adjusted downward, and consequently the interest payable on the security (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original principal of the security upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-linked securities. For securities that do not provide a similar guarantee, the adjusted principal value of the security repaid at maturity may be less than the original principal.
Alternatively, the interest rates payable on certain inflation-linked securities may be adjusted according to a measure of inflation. As a result, the principal values of such securities do not adjust according to the rate of inflation, although the interest payable on such securities may decline during times of falling inflation.
The values of inflation-linked securities are expected to change in response to changes in real interest rates. Real interest rates are tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates may rise, leading to a decrease in value of inflation-linked securities. Inflation-linked securities may
161
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
cause a potential cash flow mismatch to investors, because an increase in the principal amount of an inflation-linked security will be treated as interest income currently subject to tax at ordinary income rates even though investors will not receive repayment of principal until maturity. If a Fund invests in such securities, it will be required to distribute such interest income in order to qualify for treatment as a regulated investment company and eliminate the Fund-level tax, without a corresponding receipt of cash, and therefore may be required to dispose of portfolio securities at a time when it may not be advantageous to do so in order to make such distributions.
Bank Loans
A Fund may invest in bank loans including, for example, corporate loans, loan participations, direct debt, bank debt, and bridge debt. A Fund may invest in a loan by lending money to a borrower directly as part of a syndicate of lenders. In a syndicated loan, the agent that originated and structured the loan typically administers and enforces the loan on behalf of the syndicate. Failure by the agent to fulfill its obligations may delay or adversely affect receipt of payment by a Fund. A Fund may also invest in loans through novations, assignments, and participation interests. In a novation, a Fund typically assumes all of the rights of a lending institution in a loan, including the right to receive payments of principal and interest and other amounts directly from the borrower and to enforce its rights as a lender directly against the borrower. When a Fund takes an assignment of a loan, the Fund acquires some or all of the interest of another lender (or assignee) in the loan. In such cases, the Fund may be required generally to rely upon the assignor to demand payment and enforce rights under the loan. If a Fund acquires a participation in the loan, the Fund purchases an indirect interest in a loan held by a third party and the Fund typically will have a contractual relationship only with the third party loan investor, not with the borrower. As a result, a Fund may have the right to receive payments of principal, interest, and any fees to which it is entitled only from the loan investor selling the participation and only upon receipt by such loan investor of such payments from the borrower. In such cases, a Fund assumes the credit risk of both the borrower and the loan investor selling the participation, and the Fund may be unable to realize some or all of the value of its interest in the loan in the event of the insolvency of the third party.
Changes in the financial condition of the borrower or economic conditions or other circumstances may reduce the capacity of the borrower to make principal and interest payments on such instruments and may lead to defaults. The value of any collateral securing a bank loan may decline after the Fund invests, and there is a risk that the value of the collateral may not be sufficient to cover the amount owed to the Fund.
At June 30, 2019, the Funds had no unfunded loan commitments.
Repurchase Agreements
Each Fund may enter into repurchase agreements with certain banks and broker-dealers whereby a Fund acquires a security for cash and obtains a simultaneous commitment from the seller to repurchase the security at an agreed upon price and date. A Fund, through its custodian, takes possession of the securities collateralizing the repurchase agreement in a segregated account. Repurchase agreements must be fully collateralized at all times, but involve some risk to a Fund if the other party should default on its obligation and the Fund is delayed or prevented from recovering the collateral, or if the Fund is required to return collateral to a borrower at a time when it may realize a loss on the investment of that collateral.
When-Issued, Delayed-Delivery, Forward Commitment, andTo-Be-Announced Transactions
A Fund may enter into when-issued, delayed-delivery, forward commitment, orto-be-announced (“TBA”) transactions (collectively, the “Forward Transactions”) in order to lock in the purchase price of the underlying security, or in order to adjust the interest rate exposure of the Fund’s existing portfolio. In Forward Transactions, a Fund commits to purchase or sell particular securities, with payment and delivery to take place at a future date. In the case of TBA purchase commitments, the unit price and the estimated principal amount are established when the Fund enters into a commitment, with the actual principal amount being within a specified range of the estimate. Although a Fund does not typically pay for the securities in these types of transactions until they are delivered, it immediately assumes the risks of ownership, including the risk of price fluctuation. As a result, each of these types of transactions may create investment leverage in a Fund’s portfolio and increase the volatility of the Fund. If a Fund’s counterparty fails to deliver a security purchased in a Forward Transaction, there may be a loss, and the Fund may have missed an opportunity to make an alternative investment.
162
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
These securities are valued on the basis of valuations furnished by a pricing service, selected pursuant to procedures approved by the Trustees, which determines valuations taking into account appropriate factors such asinstitutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. Securities for which no market quotation is available are valued at fair value in accordance with procedures approved by the Trustees. The Funds record on a daily basis the unrealized appreciation (depreciation) based upon changes in the values of these securities. When a Forward Transaction is closed, the Funds record a realized gain or loss equal to the difference between the value of the transaction at the time it was opened and the value of the transaction at the time it was closed.
Dollar Roll Transactions
A Fund may enter into dollar roll transactions, in which the Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to purchase substantially similar securities on a specified future date from the same party. A Fund may invest in dollar rolls in order to benefit from anticipated changes in pricing for the mortgage-backed securities during the term of the transaction, or for the purpose of creating investment leverage. In a dollar roll, the securities that are to be purchased will be of the same type as the securities sold, but will be supported by different pools of mortgages.
Dollar rolls involve the risk that the Fund’s counterparty will be unable to deliver the mortgage-backed securities underlying the dollar roll at the fixed time. If the counterparty files for bankruptcy or becomes insolvent, a Fund’s use of the transaction proceeds may be restricted pending a determination by the counterparty or its representative, whether to enforce the Fund’s obligation to repurchase the securities. A Fund can incur a loss on a dollar roll transaction (either because its counterparty fails to perform or because the value of the mortgages subject to the transaction declines) and on the investments made by the Fund with the proceeds of the dollar roll transaction.
A Fund accounts for a dollar roll transaction as a purchase and sale whereby the difference in the sales price and purchase price of the security sold is recorded as a realized gain (loss). If certain criteria are met, these dollar roll transactions may be considered financing transactions, whereby the difference in the sales price and the future purchase price is recorded as an adjustment to interest income. Dollar roll transactions generally have the effect of creating leverage in a Fund’s portfolio.
Securities Lending
Each Fund may lend its securities; however, lending cannot exceed 33% of the total assets of the Fund taken at current value. The Funds’ securities lending activities are governed by a Securities Lending Agency Agreement (“Lending Agreement”) between each Fund and the lending agent (“Agent”). The Lending Agreement authorizes the Agent to lend portfolio securities held by a Fund to approved borrowers (each, a “Borrower”).
Each Fund expects that in connection with any securities on loan, the loan will be secured continuously by collateral consisting of cash (U.S. currency) adjusted daily to have value at least equal to the current market value of the securities loaned. The market value of the loaned securities is determined at the close of business of a Fund and any additional collateral is delivered to the Fund the next business day. The Funds bear the risk of loss with respect to the investment of cash collateral. As with other extensions of credit, the Funds may bear the risk of delay in recovery of the loaned securities or even loss of rights in the collateral should the Borrower of the securities fail financially. Pursuant to the Lending Agreement, the Agent has provided indemnification to the Funds in the event of default by a Borrower with respect to a loan. The Funds receive compensation for lending their securities in the form of a securities loan fee paid by the Borrower, as well as a share of the income earned on investment of the cash collateral received for the loaned securities. At June 30, 2019, the Funds’ collateral was equal to or greater than 100% of the market value of securities on loan.
Subject to the terms of the Lending Agreement and the agreement between the Agent and the applicable Borrower (“Borrowing Agreement”), security loans can be terminated by the Agent, the Fund, or the Borrower and the related securities must be returned within the earlier of the customary settlement period for such securities or the period of time specified in the Borrowing Agreement. For all Funds, all securities on loan are classified as common stock in the Fund’s Portfolio of Investments at June 30, 2019.
The Funds employ the Agent to implement their securities lending program and the Agent receives a fee from the Funds for its services. In addition, the Funds may be required to pay a rebate to the Borrower. Accordingly, a Fund’s compensation for lending
163
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
its securities is reduced by any such fees or rebate paid to the Agent or Borrower, respectively. Income received by the Funds in securities lending transactions during the period ended June 30, 2019, is reflected as securities lending income on the Statement of Operations.
Accounting for Investment Transactions
Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investments and unrealized appreciation and depreciation of investments are computed by the specific identification cost method. Proceeds received from litigation, if any, are included in realized gains on investment transactions for any investments that are no longer held in the portfolio and as a reduction in cost for investments that continue to be held in the portfolio. Interest income, adjusted for amortization of discounts and premiums on debt securities, is earned from the settlement date and is recorded on the accrual basis. Dividend income is recorded on theex-dividend date. Non-cash dividends received in the form of stock are recorded as dividend income at market value. Withholding taxes on foreign interest, dividends, and capital gains have been provided for in accordance with the applicable country’s tax rules and rates. Foreign dividend income is recorded on theex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Funds determine the classification of distributions received as return of capital distributions or capital gain distributions.
Foreign Currency Translation
The books and records of the Funds are maintained in U.S. dollars. The market values of foreign currencies, foreign securities, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the mean of the buying and selling rates of such currencies against the U.S. dollar at the end of each business day. Purchases and sales of foreign securities and income and expense items are translated at the rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of the results of operations arising from changes in the exchange rates from that portion arising from changes in the market prices of securities. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date on investment securities transactions, foreign currency transactions, and the difference between the amounts of dividends or interest recorded on the books of the Funds and the amount actually received.
Allocation of Operating Activity
In maintaining the records for the Funds, the income and expense accounts are allocated daily to each class of shares. Investment income and loss, and unrealized and realized gains or losses are prorated among the classes of shares based on the relative net assets of each. Expenses are allocated to each class of shares depending on the nature of the expenditures. Administration and service fees, if any, which are directly attributable to a class of shares, are charged to that class’s operations. Expenses of a Fund not directly attributable to the operations of any specific class of shares of the Fund are prorated among the classes to which the expense relates based on relative net assets.
Foreign Securities
The Global Fund invests a significant amount of its assets in foreign securities and each of the Foreign Fund and the International Equity Fund invests substantially all of its assets in foreign securities. The other Funds may also invest in foreign securities. Foreign securities, including American Depositary Receipts, are subject to additional risks compared to securities of U.S. issuers, including international trade, currency, political, regulatory, and diplomatic risks. In addition, fluctuations in currency exchange rates may adversely affect the values of foreign securities and the price of a Fund’s shares. Emerging markets securities are subject to greater risks than securities issued in developed foreign markets, including less liquidity, greater price volatility, higher relative rates of inflation, greater political, economic, and social instability, greater custody and operational risks, and greater volatility in currency exchange rates.
164
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Federal Income Tax
It is each Fund’s intent to continue to comply with the provisions of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to a regulated investment company. Under such provisions, the Funds would not be subject to federal income taxes on their ordinary income and net realized capital gains to the extent they are distributed or deemed to have been distributed to their shareholders. Therefore, the Funds have not made any provision for federal income tax.
Dividends | and Distributions to Shareholders |
Dividends from net investment income and distributions of any net realized capital gains of each Fund are declared and paid annually and at other times as may be required to satisfy tax or regulatory requirements.
Distributions to shareholders are recorded on theex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. As a result, net investment income and net realized capital gains on investment transactions for a reporting period may differ significantly from distributions during such period.
3. | Advisory Fees and Other Transactions |
Investment Advisory Fees and Investment Subadvisers
MML Investment Advisers, LLC (“MML Advisers”), a wholly-owned subsidiary of MassMutual, serves as investment adviser to each Fund. Under the investment advisory agreements between MML Advisers and the Trust on behalf of each Fund, MML Advisers is responsible for providing investment management services for each Fund. In return for these services, MML Advisers receives advisory fees, based upon each Fund’s average daily net assets, computed and accrued daily and payable monthly, at the annual rates shown in the following table.
MML Advisers has also entered into investment subadvisory agreements for each Fund with the unaffiliated investment subadviser(s) shown in the following table. MML Advisers pays a subadvisory fee to each of these subadvisers based upon the aggregate net assets under management which include (1) the average daily net assets of the specified Fund which it manages, and, if applicable, (2) the average daily net assets of other Funds or accounts of MML Advisers or its affiliates for which the subadviser provides subadvisory services.
The Funds’ subadvisory fees are paid monthly by MML Advisers out of the advisory fees.
Fund | Investment Advisory Fee | Investment Subadviser(s) | ||
Blue Chip Growth Fund | 0.75% on the first $400 million; and | T. Rowe Price Associates, Inc. | ||
0.70% on any excess over $400 million | ||||
Equity Income Fund | 0.75% on the first $500 million; and | T. Rowe Price Associates, Inc. | ||
0.70% on any excess over $500 million | ||||
Equity Index Fund | 0.10% on the first $500 million; and | Northern Trust Investments, Inc. | ||
0.08% on any excess over $500 million | ||||
Focused Equity Fund | 0.70% on the first $250 million; and | Wellington Management Company LLP | ||
0.60% on any excess over $250 million | ||||
Foreign Fund | 0.89% on the first $500 million; and | Templeton Investment Counsel, LLC | ||
0.85% on any excess over $500 million | ||||
Fundamental Growth Fund | 0.62% on the first $250 million; and | Wellington Management Company LLP | ||
0.60% on any excess over $250 million | ||||
Fundamental Value Fund* | 0.60% on the first $500 million; and | Boston Partners Global Investors, Inc. | ||
0.575% on any excess over $500 million | ||||
Global Fund | 0.60% on the first $500 million; and | Massachusetts Financial Services Company | ||
0.55% on any excess over $500 million | ||||
Growth & Income Fund | 0.50% on the first $500 million; and | Massachusetts Financial Services Company | ||
0.475% on any excess over $500 million | ||||
Income & Growth Fund | 0.65% on the first $500 million; and | Barrow, Hanley, Mewhinney & Strauss, LLC | ||
0.60% on any excess over $500 million |
165
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Fund | Investment Advisory Fee | Investment Subadviser(s) | ||
International Equity Fund | 0.80% on the first $250 million; and | Harris Associates L.P. | ||
0.75% on any excess over $250 million | ||||
Large Cap Growth Fund | 0.65% on the first $500 million; and | Loomis, Sayles & Company, L.P. | ||
0.60% on any excess over $500 million | ||||
Managed Volatility Fund | 0.75% on the first $500 million; and | Gateway Investment Advisers, LLC | ||
0.70% on any excess over $500 million | ||||
Mid Cap Growth Fund | 0.77% on the first $500 million; and | T. Rowe Price Associates, Inc. | ||
0.75% on any excess over $500 million | ||||
Mid Cap Value Fund | 0.84% on the first $500 million; and | American Century Investment Management, Inc. | ||
0.80% on any excess over $500 million | ||||
Small Cap Growth Equity Fund | 1.04% on the first $200 million; and | Wellington Management Company LLP | ||
1.00% on any excess over $200 million | ||||
Small Company Value Fund | 0.80% on the first $150 million; and | T. Rowe Price Associates, Inc. | ||
0.70% on any excess over $150 million | ||||
Small/Mid Cap Value Fund | 0.75% on the first $500 million; and | AllianceBernstein L.P. | ||
0.70% on any excess over $500 million | ||||
Total Return Bond Fund | 0.40% on the first $500 million; and | Metropolitan West Asset Management, LLC | ||
0.38% on any excess over $500 million |
* | Effective February 5, 2019, Boston Partners Global Investors, Inc. replaced Wellington Management Company LLP as subadviser to the Fund. |
Administration Fees
For the Equity Index Fund, Focused Equity Fund, Fundamental Growth Fund, Fundamental Value Fund, Global Fund, International Equity Fund, Small Company Value Fund, and Total Return Bond Fund, under a separate Administrative and Shareholder Services Agreement between the Trust and MML Advisers, on behalf of each Fund, MML Advisers is obligated to provide administrative and shareholder services and bear some of the Fund specific administrative expenses. In return for these services, MML Advisers receives an administrative services fee based upon the average daily net assets of the applicable class of shares of the Funds, at the following annual rates:
Class I | Class II | Class III | Service Class I | |||||||||||||
Equity Index Fund | 0.30% | 0.15% | None | 0.30% | ||||||||||||
Focused Equity Fund | N/A | 0.15% | N/A | 0.15% | ||||||||||||
Fundamental Growth Fund | N/A | 0.15% | N/A | 0.15% | ||||||||||||
Fundamental Value Fund | N/A | 0.15% | N/A | 0.15% | ||||||||||||
Global Fund | 0.15% | 0.15% | N/A | 0.15% | ||||||||||||
International Equity Fund | N/A | 0.15% | N/A | 0.15% | ||||||||||||
Small Company Value Fund | N/A | 0.15% | N/A | 0.15% | ||||||||||||
Total Return Bond Fund | N/A | 0.15% | N/A | 0.15% |
Distribution and Service Fees
MML Distributors, LLC (the “Distributor”) acts as distributor to the Funds. Pursuant to a Distribution and Services Plan adopted by the Funds pursuant to Rule 12b-1 under the 1940 Act, Service Class shares and Service Class I shares of the Funds pay an annual fee of 0.25% of the average daily net asset value of Service Class shares and Service Class I shares. This fee, or a portion thereof, is paid to: (i) the Distributor for services provided and expenses incurred by it in connection with the distribution of Service Class shares or Service Class I shares, as applicable, of each Fund; and/or (ii) MassMutual for services provided and expenses incurred by it for purposes of maintaining or providing personal services to Service Class and Service Class I shareholders. The Distributor is a wholly-owned subsidiary of MassMutual.
166
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Expense Caps and Waivers
MML Advisers has agreed to cap the fees and expenses of the Funds noted below (other than extraordinary litigation and legal expenses, Acquired Fund Fees and Expenses#, interest expense, short sale dividend and loan expense, or other non-recurring or unusual expenses such as organizational expenses and shareholder meeting expenses, as applicable) based upon the average daily net assets of the applicable class of shares of the Funds, as follows:
Class II | Service Class I | |||||||
International Equity Fund* | 1.00% | 1.25% | ||||||
Total Return Bond Fund* | 0.60% | 0.85% |
# | Acquired Fund Fees and Expenses are expenses borne indirectly by a Fund through investments in other pooled investment vehicles. |
* | Expense caps in effect through April 30, 2020. |
Prior to May 1, 2019, MML Advisers agreed to cap the fees and expenses of the Fund noted below (other than extraordinary litigation and legal expenses, Acquired Fund Fees and Expenses#, interest expense, short sale dividend and loan expense, or other non-recurring or unusual expenses such as organizational expenses and shareholder meeting expenses, as applicable) based upon the average daily net assets of the applicable class of shares of the Fund, as follows:
Class II | Service Class I | |||||||
Fundamental Growth Fund | 0.85% | 1.10% |
# | Acquired Fund Fees and Expenses are expenses borne indirectly by a Fund through investments in other pooled investment vehicles. |
MML Advisers has agreed to voluntarily waive 0.03% of the advisory fee of the Equity Income Fund and 0.05% of the advisory fee of the Small Company Value Fund. MML Advisers may amend or discontinue these waivers at any time without advance notice.
MML Advisers has agreed to waive 0.04% of the advisory fee of the Foreign Fund through April 30, 2020.
MML Advisers has agreed to waive 0.02% of the advisory fee of each of the Fundamental Value Fund and Small Cap Growth Equity Fund through April 30, 2020.
Prior to May 1, 2019, MML Advisers agreed to voluntarily waive 0.05% of the advisory fee of the Focused Equity Fund.
Expense caps and waiver amounts are reflected as a reduction of expenses on the Statements of Operations.
Rebated Brokerage Commissions
The Funds listed below have entered into agreements with certain brokers whereby the brokers will rebate to the Funds, in cash, a portion of brokerage commissions. Rebated brokerage commissions are amounts earned by the Funds and are included with realized gain or loss on investment transactions presented in the Statements of Operations. For the period ended June 30, 2019, brokerage commissions rebated under these agreements were as follows:
Rebated Commissions | ||||
Foreign Fund | $ | 3,033 | ||
Large Cap Growth Fund | 114 | |||
Managed Volatility Fund | 290 | |||
Small Cap Growth Equity Fund | 1,235 | |||
Small/Mid Cap Value Fund | 2,638 |
167
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Deferred Compensation
Trustees of the Funds who are not officers or employees of MassMutual may elect to defer receipt of their annual fees in accordance with terms of aNon-Qualified Deferred Compensation Plan. Amounts deferred shall accrue interest or earnings and shall be recorded on the Funds’ books as other liabilities. Deferred compensation is included within Trustees’ fees and expenses in the Statements of Assets and Liabilities.
Other
Certain officers and trustees of the Funds may also be employees of MassMutual. The compensation of a trustee who is not an employee of MassMutual is borne by the Funds.
4. | Purchases and Sales of Investments |
Cost of purchases and proceeds from sales of investment securities (excluding short-term investments) for the period ended June 30, 2019, were as follows:
Purchases | Sales | |||||||||||||||
Long-Term U.S. Government Securities | Other Long-Term Securities | Long-Term U.S. Government Securities | Other Long-Term Securities | |||||||||||||
Blue Chip Growth Fund | $ | - | $ | 53,307,319 | $ | - | $ | 68,647,200 | ||||||||
Equity Income Fund | - | 37,618,022 | - | 63,282,124 | ||||||||||||
Equity Index Fund | - | 20,260,557 | - | 209,054,130 | ||||||||||||
Focused Equity Fund | - | 245,956,170 | - | 39,600,094 | ||||||||||||
Foreign Fund | - | 65,581,208 | - | 65,303,911 | ||||||||||||
Fundamental Growth Fund | - | 62,920,036 | - | 70,241,737 | ||||||||||||
Fundamental Value Fund | - | 191,757,970 | - | 205,601,500 | ||||||||||||
Global Fund | - | 203,159,182 | - | 25,540,522 | ||||||||||||
Growth & Income Fund | - | 8,993,652 | - | 14,574,585 | ||||||||||||
Income & Growth Fund | - | 60,336,694 | - | 77,819,658 | ||||||||||||
International Equity Fund | - | 35,126,249 | - | 31,732,242 | ||||||||||||
Large Cap Growth Fund | - | 2,321,962 | - | 11,436,418 | ||||||||||||
Managed Volatility Fund | - | 852,796 | - | 23,019,828 | ||||||||||||
Mid Cap Growth Fund | - | 78,549,668 | - | 88,225,392 | ||||||||||||
Mid Cap Value Fund | - | 76,492,628 | - | 91,602,686 | ||||||||||||
Small Cap Growth Equity Fund | - | 57,618,312 | - | 69,942,091 | ||||||||||||
Small Company Value Fund | - | 10,239,967 | - | 11,845,844 | ||||||||||||
Small/Mid Cap Value Fund | - | 35,109,795 | - | 40,240,991 | ||||||||||||
Total Return Bond Fund | 355,063,948 | 25,110,876 | 346,495,368 | 62,142,717 |
The Funds may purchase from, or sell securities to, other affiliated Funds under procedures adopted by the Trustees. These procedures have been designed to ensure that cross trades conducted by the Funds comply with Rule17a-7 under the 1940 Act. The cross trades disclosed in the table below are included within the respective purchases and sales amounts shown in the table above, as applicable.
Purchases | Sales | |||||||
Mid Cap Value Fund | $ | - | $ | 5,231 |
168
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
5. | Capital Share Transactions |
Changes in shares outstanding for each Fund were as follows:
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Blue Chip Growth Fund Initial Class | ||||||||||||||||
Sold | 604,005 | $ | 9,706,121 | 2,464,836 | $ | 41,097,524 | ||||||||||
Issued as reinvestment of dividends | - | - | 3,092,597 | 52,821,553 | ||||||||||||
Redeemed | (1,779,590 | ) | (29,492,452 | ) | (5,453,960 | ) | (99,386,541 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,175,585 | ) | $ | (19,786,331 | ) | 103,473 | $ | (5,467,464 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Blue Chip Growth Fund Service Class | ||||||||||||||||
Sold | 648,637 | $ | 10,460,973 | 1,887,622 | $ | 32,739,994 | ||||||||||
Issued as reinvestment of dividends | - | - | 1,191,730 | 19,580,121 | ||||||||||||
Redeemed | (412,729 | ) | (6,622,197 | ) | (555,547 | ) | (9,584,052 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 235,908 | $ | 3,838,776 | 2,523,805 | $ | 42,736,063 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Equity Income Fund Initial Class | ||||||||||||||||
Sold | 439,924 | $ | 4,744,741 | 3,644,888 | $ | 42,637,761 | ||||||||||
Issued as reinvestment of dividends | - | - | 4,160,678 | 48,263,863 | ||||||||||||
Redeemed | (3,757,302 | ) | (41,453,039 | ) | (7,303,653 | ) | (88,411,458 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (3,317,378 | ) | $ | (36,708,298 | ) | 501,913 | $ | 2,490,166 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Equity Income Fund Service Class | ||||||||||||||||
Sold | 254,539 | $ | 2,765,176 | 699,128 | $ | 7,902,373 | ||||||||||
Issued as reinvestment of dividends | - | - | 857,536 | 9,835,943 | ||||||||||||
Redeemed | (540,037 | ) | (5,922,054 | ) | (930,971 | ) | (11,027,261 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (285,498 | ) | $ | (3,156,878 | ) | 625,693 | $ | 6,711,055 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Equity Index Fund Class I | ||||||||||||||||
Sold | 148,637 | $ | 4,713,083 | 91,995 | $ | 2,966,868 | ||||||||||
Issued as reinvestment of dividends | - | - | 98,430 | 3,197,012 | ||||||||||||
Redeemed | (225,127 | ) | (7,155,859 | ) | (479,758 | ) | (15,243,014 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (76,490 | ) | $ | (2,442,776 | ) | (289,333 | ) | $ | (9,079,134 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Equity Index Fund Class II | ||||||||||||||||
Sold | 600,686 | $ | 19,412,921 | 361,961 | $ | 11,272,722 | ||||||||||
Issued as reinvestment of dividends | - | - | 283,559 | 9,207,167 | ||||||||||||
Redeemed | (315,941 | ) | (9,991,992 | ) | (982,582 | ) | (31,137,585 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 284,745 | $ | 9,420,929 | (337,062 | ) | $ | (10,657,696 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Equity Index Fund Class III | ||||||||||||||||
Sold | 9,644 | $ | 305,030 | 615,653 | $ | 20,621,085 | ||||||||||
Issued as reinvestment of dividends | - | - | 720,026 | 23,328,843 | ||||||||||||
Redeemed | (6,542,992 | ) | (211,749,550 | ) | (1,580,294 | ) | (51,246,919 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (6,533,348 | ) | $ | (211,444,520 | ) | (244,615 | ) | $ | (7,296,991 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Equity Index Fund Service Class I | ||||||||||||||||
Sold | 26,135 | $ | 807,053 | 74,399 | $ | 2,163,647 | ||||||||||
Issued as reinvestment of dividends | - | - | 74,604 | 2,351,504 | ||||||||||||
Redeemed | (121,575 | ) | (3,707,812 | ) | (267,117 | ) | (8,195,819 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (95,440 | ) | $ | (2,900,759 | ) | (118,114 | ) | $ | (3,680,668 | ) | ||||||
|
|
|
|
|
|
|
|
169
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Focused Equity Fund Class II | ||||||||||||||||
Sold | 37,806,995 | $ | 231,256,767 | 2,662,739 | $ | 21,522,181 | ||||||||||
Issued as reinvestment of dividends | - | - | 5,355,691 | 30,902,335 | ||||||||||||
Redeemed | (3,702,694 | ) | (22,403,760 | ) | (3,486,605 | ) | (31,677,720 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 34,104,301 | $ | 208,853,007 | 4,531,825 | $ | 20,746,796 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Focused Equity Fund Service Class I | ||||||||||||||||
Sold | 494,385 | $ | 2,782,234 | 376,431 | $ | 3,091,551 | ||||||||||
Issued as reinvestment of dividends | - | - | 1,215,818 | 6,784,266 | ||||||||||||
Redeemed | (237,022 | ) | (1,370,947 | ) | (257,087 | ) | (2,172,837 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 257,363 | $ | 1,411,287 | 1,335,162 | $ | 7,702,980 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Foreign Fund Initial Class | ||||||||||||||||
Sold | 1,138,593 | $ | 11,223,396 | 3,243,058 | $ | 34,018,741 | ||||||||||
Issued as reinvestment of dividends | - | - | 713,437 | 7,662,312 | ||||||||||||
Redeemed | (2,589,095 | ) | (25,614,239 | ) | (6,201,582 | ) | (68,110,318 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,450,502 | ) | $ | (14,390,843 | ) | (2,245,087 | ) | $ | (26,429,265 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Foreign Fund Service Class | ||||||||||||||||
Sold | 36,542 | $ | 356,915 | 116,294 | $ | 1,204,281 | ||||||||||
Issued as reinvestment of dividends | - | - | 20,065 | 214,292 | ||||||||||||
Redeemed | (94,174 | ) | (922,879 | ) | (149,688 | ) | (1,604,937 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (57,632 | ) | $ | (565,964 | ) | (13,329 | ) | $ | (186,364 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Fundamental Growth Fund Class II | ||||||||||||||||
Sold | 179,595 | $ | 1,878,253 | 1,949,758 | $ | 21,593,805 | ||||||||||
Issued as reinvestment of dividends | - | - | 2,708,246 | 29,655,294 | ||||||||||||
Redeemed | (1,197,644 | ) | (12,420,837 | ) | (4,370,488 | ) | (55,762,299 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,018,049 | ) | $ | (10,542,584 | ) | 287,516 | $ | (4,513,200 | ) | |||||||
|
|
|
|
|
|
|
| |||||||||
Fundamental Growth Fund Service Class I | ||||||||||||||||
Sold | 147,605 | $ | 1,552,230 | 458,941 | $ | 5,393,912 | ||||||||||
Issued as reinvestment of dividends | - | - | 270,393 | 2,890,500 | ||||||||||||
Redeemed | (103,545 | ) | (1,079,001 | ) | (131,913 | ) | (1,611,718 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 44,060 | $ | 473,229 | 597,421 | $ | 6,672,694 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Fundamental Value Fund Class II | ||||||||||||||||
Sold | 274,496 | $ | 3,684,939 | 1,036,350 | $ | 15,435,084 | ||||||||||
Issued as reinvestment of dividends | - | - | 1,508,659 | 21,649,257 | ||||||||||||
Redeemed | (1,177,421 | ) | (15,853,561 | ) | (3,583,028 | ) | (53,723,159 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (902,925 | ) | $ | (12,168,622 | ) | (1,038,019 | ) | $ | (16,638,818 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Fundamental Value Fund Service Class I | ||||||||||||||||
Sold | 88,164 | $ | 1,167,379 | 250,690 | $ | 3,680,455 | ||||||||||
Issued as reinvestment of dividends | - | - | 112,320 | 1,585,954 | ||||||||||||
Redeemed | (112,466 | ) | (1,495,882 | ) | (140,737 | ) | (2,035,818 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (24,302 | ) | $ | (328,503 | ) | 222,273 | $ | 3,230,591 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Global Fund Class I | ||||||||||||||||
Sold | 16,817,008 | $ | 201,095,005 | 2,554,449 | $ | 31,314,905 | ||||||||||
Issued as reinvestment of dividends | - | - | 2,338,747 | 27,480,281 | ||||||||||||
Redeemed | (2,315,546 | ) | (26,781,828 | ) | (3,185,325 | ) | (39,543,208 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 14,501,462 | $ | 174,313,177 | 1,707,871 | $ | 19,251,978 | ||||||||||
|
|
|
|
|
|
|
|
170
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Global Fund Class II | ||||||||||||||||
Sold | 21,058 | $ | 252,958 | 39,560 | $ | 504,041 | ||||||||||
Issued as reinvestment of dividends | - | - | 189,873 | 2,282,278 | ||||||||||||
Redeemed | (87,974 | ) | (1,043,627 | ) | (162,413 | ) | (2,040,592 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (66,916 | ) | $ | (790,669 | ) | 67,020 | $ | 745,727 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Global Fund Service Class I | ||||||||||||||||
Sold | 96,609 | $ | 1,110,147 | 207,223 | $ | 2,493,252 | ||||||||||
Issued as reinvestment of dividends | - | - | 181,734 | 2,109,930 | ||||||||||||
Redeemed | (182,514 | ) | (2,091,905 | ) | (245,364 | ) | (3,007,449 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (85,905 | ) | $ | (981,758 | ) | 143,593 | $ | 1,595,733 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Growth & Income Fund Initial Class | ||||||||||||||||
Sold | 36,740 | $ | 683,381 | 119,769 | $ | 2,132,714 | ||||||||||
Issued as reinvestment of dividends | - | - | 49,276 | 922,933 | ||||||||||||
Redeemed | (410,937 | ) | (7,657,860 | ) | (918,605 | ) | (16,393,730 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (374,197 | ) | $ | (6,974,479 | ) | (749,560 | ) | $ | (13,338,083 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Growth & Income Fund Service Class | ||||||||||||||||
Sold | 147,126 | $ | 2,695,968 | 578,617 | $ | 10,270,519 | ||||||||||
Issued as reinvestment of dividends | - | - | 13,045 | 242,772 | ||||||||||||
Redeemed | (131,935 | ) | (2,433,191 | ) | (279,656 | ) | (4,937,473 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 15,191 | $ | 262,777 | 312,006 | $ | 5,575,818 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Income & Growth Fund Initial Class | ||||||||||||||||
Sold | 310,697 | $ | 2,924,815 | 3,358,694 | $ | 36,563,702 | ||||||||||
Issued as reinvestment of dividends | - | - | 6,882,783 | 68,070,720 | ||||||||||||
Redeemed | (2,677,955 | ) | (25,042,628 | ) | (4,660,765 | ) | (54,495,441 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (2,367,258 | ) | $ | (22,117,813 | ) | 5,580,712 | $ | 50,138,981 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income & Growth Fund Service Class | ||||||||||||||||
Sold | 188,652 | $ | 1,745,437 | 457,539 | $ | 5,136,040 | ||||||||||
Issued as reinvestment of dividends | - | - | 718,834 | 7,008,633 | ||||||||||||
Redeemed | (174,003 | ) | (1,609,390 | ) | (454,154 | ) | (5,067,384 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 14,649 | $ | 136,047 | 722,219 | $ | 7,077,289 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
International Equity Fund Class II | ||||||||||||||||
Sold | 1,321,000 | $ | 12,482,271 | 3,756,873 | $ | 38,252,215 | ||||||||||
Issued as reinvestment of dividends | - | - | 373,555 | 4,053,077 | ||||||||||||
Redeemed | (1,166,517 | ) | (11,482,404 | ) | (2,418,348 | ) | (27,520,770 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 154,483 | $ | 999,867 | 1,712,080 | $ | 14,784,522 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
International Equity Fund Service Class I | ||||||||||||||||
Sold | 60,242 | $ | 592,174 | 250,373 | $ | 2,770,944 | ||||||||||
Issued as reinvestment of dividends | - | - | 10,810 | 116,423 | ||||||||||||
Redeemed | (32,579 | ) | (321,421 | ) | (57,918 | ) | (625,081 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 27,663 | $ | 270,753 | 203,265 | $ | 2,262,286 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Large Cap Growth Fund Initial Class | ||||||||||||||||
Sold | 199,372 | $ | 2,098,449 | 2,298,401 | $ | 24,058,167 | ||||||||||
Issued as reinvestment of dividends | - | - | 643,854 | 7,127,458 | ||||||||||||
Redeemed | (1,215,407 | ) | (13,054,091 | ) | (4,357,531 | ) | (47,416,397 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,016,035 | ) | $ | (10,955,642 | ) | (1,415,276 | ) | $ | (16,230,772 | ) | ||||||
|
|
|
|
|
|
|
|
171
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Large Cap Growth Fund Service Class | ||||||||||||||||
Sold | 173,245 | $ | 1,867,881 | 446,254 | $ | 4,710,446 | ||||||||||
Issued as reinvestment of dividends | - | - | 77,140 | 826,941 | ||||||||||||
Redeemed | (101,695 | ) | (1,068,606 | ) | (116,132 | ) | (1,228,847 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 71,550 | $ | 799,275 | 407,262 | $ | 4,308,540 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Managed Volatility Fund Initial Class | ||||||||||||||||
Sold | 487,104 | $ | 6,124,159 | 492,848 | $ | 6,197,396 | ||||||||||
Issued as reinvestment of dividends | - | - | 133,484 | 1,709,123 | ||||||||||||
Redeemed | (878,785 | ) | (10,960,141 | ) | (2,333,988 | ) | (29,063,105 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (391,681 | ) | $ | (4,835,982 | ) | (1,707,656 | ) | $ | (21,156,586 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Managed Volatility Fund Service Class | ||||||||||||||||
Sold | 73,190 | $ | 905,992 | 202,575 | $ | 2,518,645 | ||||||||||
Issued as reinvestment of dividends | - | - | 24,099 | 306,248 | ||||||||||||
Redeemed | (176,032 | ) | (2,180,049 | ) | (461,486 | ) | (5,753,477 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (102,842 | ) | $ | (1,274,057 | ) | (234,812 | ) | $ | (2,928,584 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Mid Cap Growth Fund Initial Class | ||||||||||||||||
Sold | 1,781,534 | $ | 29,543,340 | 1,138,114 | $ | 18,294,113 | ||||||||||
Issued as reinvestment of dividends | - | - | 2,925,630 | 47,102,641 | ||||||||||||
Redeemed | (2,064,572 | ) | (33,114,232 | ) | (4,110,331 | ) | (67,894,871 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (283,038 | ) | $ | (3,570,892 | ) | (46,587 | ) | $ | (2,498,117 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Mid Cap Growth Fund Service Class | ||||||||||||||||
Sold | 297,175 | $ | 4,564,487 | 844,382 | $ | 13,330,015 | ||||||||||
Issued as reinvestment of dividends | - | - | 825,741 | 12,765,952 | ||||||||||||
Redeemed | (487,873 | ) | (7,539,871 | ) | (841,191 | ) | (13,264,688 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (190,698 | ) | $ | (2,975,384 | ) | 828,932 | $ | 12,831,279 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Mid Cap Value Fund Initial Class | ||||||||||||||||
Sold | 720,695 | $ | 7,402,262 | 2,443,831 | $ | 26,255,117 | ||||||||||
Issued as reinvestment of dividends | - | - | 4,297,558 | 48,304,550 | ||||||||||||
Redeemed | (3,381,747 | ) | (35,826,560 | ) | (6,127,501 | ) | (71,122,235 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (2,661,052 | ) | $ | (28,424,298 | ) | 613,888 | $ | 3,437,432 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Mid Cap Value Fund Service Class | ||||||||||||||||
Sold | 262,536 | $ | 2,735,498 | 648,931 | $ | 7,119,700 | ||||||||||
Issued as reinvestment of dividends | - | - | 534,477 | 5,905,971 | ||||||||||||
Redeemed | (321,019 | ) | (3,342,771 | ) | (630,619 | ) | (7,122,019 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (58,483 | ) | $ | (607,273 | ) | 552,789 | $ | 5,903,652 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Small Cap Growth Equity Fund Initial Class | ||||||||||||||||
Sold | 383,203 | $ | 5,850,186 | 1,193,475 | $ | 16,874,435 | ||||||||||
Issued as reinvestment of dividends | - | - | 1,248,350 | 20,293,872 | ||||||||||||
Redeemed | (1,420,626 | ) | (21,654,935 | ) | (3,841,118 | ) | (59,693,280 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,037,423 | ) | $ | (15,804,749 | ) | (1,399,293 | ) | $ | (22,524,973 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Small Cap Growth Equity Fund Service Class | ||||||||||||||||
Sold | 148,238 | $ | 2,129,365 | 493,662 | $ | 7,292,510 | ||||||||||
Issued as reinvestment of dividends | - | - | 154,642 | 2,377,009 | ||||||||||||
Redeemed | (158,362 | ) | (2,270,326 | ) | (186,179 | ) | (2,690,123 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (10,124 | ) | $ | (140,961 | ) | 462,125 | $ | 6,979,396 | ||||||||
|
|
|
|
|
|
|
|
172
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
Six Months Ended June 30, 2019 | Year Ended December 31, 2018 | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Small Company Value Fund Class II | ||||||||||||||||
Sold | 170,332 | $ | 2,725,126 | 311,558 | $ | 5,228,843 | ||||||||||
Issued as reinvestment of dividends | - | - | 294,350 | 5,157,012 | ||||||||||||
Redeemed | (390,319 | ) | (6,108,057 | ) | (1,053,838 | ) | (17,716,346 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (219,987 | ) | $ | (3,382,931 | ) | (447,930 | ) | $ | (7,330,491 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Small Company Value Fund Service Class I | ||||||||||||||||
Sold | 105,300 | �� | $ | 1,604,056 | 339,490 | $ | 5,463,333 | |||||||||
Issued as reinvestment of dividends | - | - | 82,700 | 1,405,903 | ||||||||||||
Redeemed | (118,480 | ) | (1,789,808 | ) | (201,731 | ) | (3,241,623 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (13,180 | ) | $ | (185,752 | ) | 220,459 | $ | 3,627,613 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Small/Mid Cap Value Fund Initial Class | ||||||||||||||||
Sold | 458,015 | $ | 5,197,045 | 1,709,758 | $ | 21,459,255 | ||||||||||
Issued as reinvestment of dividends | - | - | 1,642,960 | 21,802,071 | ||||||||||||
Redeemed | (1,243,591 | ) | (14,806,555 | ) | (2,953,473 | ) | (40,187,875 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (785,576 | ) | $ | (9,609,510 | ) | 399,245 | $ | 3,073,451 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Small/Mid Cap Value Fund Service Class | ||||||||||||||||
Sold | 151,449 | $ | 1,763,273 | 288,847 | $ | 3,713,859 | ||||||||||
Issued as reinvestment of dividends | - | - | 190,987 | 2,507,665 | ||||||||||||
Redeemed | (121,175 | ) | (1,420,678 | ) | (267,604 | ) | (3,553,391 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 30,274 | $ | 342,595 | 212,230 | $ | 2,668,133 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Return Bond Fund Class II | ||||||||||||||||
Sold | 2,409,553 | $ | 24,896,865 | 4,313,580 | $ | 44,049,434 | ||||||||||
Issued as reinvestment of dividends | - | - | 720,882 | 7,259,284 | ||||||||||||
Redeemed | (4,301,612 | ) | (44,892,390 | ) | (9,622,499 | ) | (97,319,609 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,892,059 | ) | $ | (19,995,525 | ) | (4,588,037 | ) | $ | (46,010,891 | ) | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Return Bond Fund Service Class I | ||||||||||||||||
Sold | 368,526 | $ | 3,818,238 | 675,219 | $ | 6,781,521 | ||||||||||
Issued as reinvestment of dividends | - | - | 41,780 | 416,963 | ||||||||||||
Redeemed | (118,198 | ) | (1,219,910 | ) | (306,990 | ) | (3,080,609 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 250,328 | $ | 2,598,328 | 410,009 | $ | 4,117,875 | ||||||||||
|
|
|
|
|
|
|
|
173
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
6. | Federal Income Tax Information |
At June 30, 2019, the aggregate cost of investments and the unrealized appreciation (depreciation) in the value of all investments owned by the Fund(s), as computed on a federal income tax basis, were as follows:
Federal Income Tax Cost | Tax Basis Unrealized Appreciation | Tax Basis Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Blue Chip Growth Fund | $ | 241,566,477 | $ | 171,584,014 | $ | (2,175,326 | ) | $ | 169,408,688 | |||||||
Equity Income Fund | 389,957,985 | 89,305,350 | (18,474,279 | ) | 70,831,071 | |||||||||||
Equity Index Fund | 357,362,474 | 206,339,470 | (13,686,834 | ) | 192,652,636 | |||||||||||
Focused Equity Fund | 275,095,087 | 17,124,353 | (10,454 | ) | 17,113,899 | |||||||||||
Foreign Fund | 311,666,630 | 31,905,832 | (31,548,595 | ) | 357,237 | |||||||||||
Fundamental Growth Fund | 89,975,116 | 21,193,074 | (312,560 | ) | 20,880,514 | |||||||||||
Fundamental Value Fund | 177,049,753 | 16,283,474 | (3,949,782 | ) | 12,333,692 | |||||||||||
Global Fund | 374,163,598 | 67,976,040 | (11,189,207 | ) | 56,786,833 | |||||||||||
Growth & Income Fund | 93,121,549 | 56,416,068 | (3,051,370 | ) | 53,364,698 | |||||||||||
Income & Growth Fund | 269,588,194 | 29,782,863 | (17,984,870 | ) | 11,797,993 | |||||||||||
International Equity Fund | 197,137,693 | 9,145,688 | (24,166,240 | ) | (15,020,552 | ) | ||||||||||
Large Cap Growth Fund | 68,558,895 | 36,306,661 | (1,492,584 | ) | 34,814,077 | |||||||||||
Managed Volatility Fund | 107,713,906 | 58,829,570 | (7,754,260 | ) | 51,075,310 | |||||||||||
Mid Cap Growth Fund | 374,025,736 | 155,654,150 | (13,640,291 | ) | 142,013,859 | |||||||||||
Mid Cap Value Fund | 403,131,519 | 45,599,802 | (25,383,476 | ) | 20,216,326 | |||||||||||
Small Cap Growth Equity Fund | 174,735,859 | 36,308,009 | (7,056,254 | ) | 29,251,755 | |||||||||||
Small Company Value Fund | 77,737,521 | 26,452,042 | (5,329,885 | ) | 21,122,157 | |||||||||||
Small/Mid Cap Value Fund | 195,442,840 | 27,003,363 | (19,863,363 | ) | 7,140,000 | |||||||||||
Total Return Bond Fund | 400,011,743 | 10,168,832 | (1,553,280 | ) | 8,615,552 |
Net capital loss carryforwards may be applied against any net realized taxable gains in succeeding years, subject to the carryforward period limitations, where applicable. On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act changed the capital loss carryforward rules as they relate to regulated investment companies. Capital losses generated in tax years beginning after the date of enactment may now be carried forward indefinitely, and retain the character of the original loss. Underpre-enactment law, capital losses could be carried forward for up to eight tax years as short-term capital losses. The provisions affecting the utilization of capital loss carryforwards under the Modernization Act also require the utilization of post-enactment losses prior to the utilization ofpre-enactment losses.
At December 31, 2018, the following Fund(s) had post-enactment accumulated capital loss carryforwards:
Short Term Capital Loss Carryforward | Long Term Capital Loss Carryforward | |||||||
Managed Volatility Fund | $ | 5,688,779 | $ | - | ||||
Total Return Bond Fund | 6,931,323 | 2,687,567 |
Net capital loss carryforwards for the Fund(s) shown in the above table are from post-enactment years and are, therefore, not subject to the eight-year carryforward period and possible expiration.
Generally accepted accounting principles in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital.
174
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
The tax character of distributions (including capital gain dividends, if any, designated pursuant to Section 852 of the Code) paid during the year ended December 31, 2018, was as follows:
Ordinary Income | Long Term Capital Gain | |||||||
Blue Chip Growth Fund | $ | 2,762,920 | $ | 69,638,754 | ||||
Equity Income Fund | 10,466,886 | 47,632,920 | ||||||
Equity Index Fund | 13,482,441 | 24,602,086 | ||||||
Focused Equity Fund | 11,225,249 | 26,461,352 | ||||||
Foreign Fund | 7,876,604 | - | ||||||
Fundamental Growth Fund | 3,230,141 | 29,315,653 | ||||||
Fundamental Value Fund | 4,334,895 | 18,900,316 | ||||||
Global Fund | 3,159,128 | 28,713,361 | ||||||
Growth & Income Fund | 1,165,705 | - | ||||||
Income & Growth Fund | 11,954,498 | 63,124,855 | ||||||
International Equity Fund | 2,955,099 | 1,214,401 | ||||||
Large Cap Growth Fund | 2,955,815 | 4,998,584 | ||||||
Managed Volatility Fund | 2,015,371 | - | ||||||
Mid Cap Growth Fund | 2,899,486 | 56,969,107 | ||||||
Mid Cap Value Fund | 12,507,747 | 41,702,774 | ||||||
Small Cap Growth Equity Fund | 8,093,369 | 14,577,512 | ||||||
Small Company Value Fund | 444,790 | 6,118,125 | ||||||
Small/Mid Cap Value Fund | 1,752,551 | 22,557,185 | ||||||
Total Return Bond Fund | 7,676,247 | - |
The following Fund(s) have elected to pass through the foreign tax credit for the year ended December 31, 2018:
Amount | ||||
Foreign Fund | $ | 610,400 | ||
Global Fund | 209,422 | |||
International Equity Fund | 412,337 |
Capital accounts within the financial statements are periodically adjusted for permanent differences between book and tax accounting. These adjustments have no impact on net assets or the results of operations. Temporary book and tax accounting differences will reverse in subsequent periods. At December 31, 2018, temporary book and tax accounting differences were primarily attributable to investments in forward contracts, futures contracts, options contracts, swap agreements, premium amortization accruals, passive foreign investment companies,non-taxable dividends basis adjustments, the deferral of wash sale losses, and deferred Trustee compensation.
175
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
At December 31, 2018, the components of distributable earnings on a tax basis were as follows:
Undistributed Ordinary Income | Undistributed Long Term Capital Gain (Capital Loss Carryover) | Other Temporary Differences | Unrealized Appreciation (Depreciation) | |||||||||||||
Blue Chip Growth Fund | $ | - | $ | 52,442,781 | $ | (59,459 | ) | $ | 116,309,494 | |||||||
Equity Income Fund | 11,270,345 | 40,923,546 | (87,701 | ) | 26,103,385 | |||||||||||
Equity Index Fund | 16,182,916 | 46,915,165 | (114,462 | ) | 207,199,224 | |||||||||||
Focused Equity Fund | 2,443,895 | 4,583,485 | (16,041 | ) | 991,476 | |||||||||||
Foreign Fund | 5,562,645 | 4,636,330 | (63,330 | ) | (12,993,881 | ) | ||||||||||
Fundamental Growth Fund | 800,702 | 21,185,964 | (22,385 | ) | 8,550,983 | |||||||||||
Fundamental Value Fund | 5,992,279 | 19,375,050 | (30,162 | ) | 14,642,888 | |||||||||||
Global Fund | 2,940,576 | 13,188,882 | (30,088 | ) | 15,722,524 | |||||||||||
Growth & Income Fund | 1,443,154 | 12,954,715 | (29,425 | ) | 31,860,594 | |||||||||||
Income & Growth Fund | 7,814,137 | 8,012,333 | (39,497 | ) | (24,763,101 | ) | ||||||||||
International Equity Fund | 4,167,639 | 10,979,227 | (16,538 | ) | (32,886,807 | ) | ||||||||||
Large Cap Growth Fund | 571,996 | 12,609,401 | (25,841 | ) | 18,354,360 | |||||||||||
Managed Volatility Fund | 2,468,628 | (5,688,779 | ) | (48,736 | ) | 33,689,950 | ||||||||||
Mid Cap Growth Fund | 4,508,508 | 61,457,198 | (69,458 | ) | 71,401,478 | |||||||||||
Mid Cap Value Fund | 11,246,040 | 38,140,933 | (80,333 | ) | (44,941,227 | ) | ||||||||||
Small Cap Growth Equity Fund | 4,374,913 | 29,548,359 | (48,600 | ) | (428,871 | ) | ||||||||||
Small Company Value Fund | 403,171 | 13,644,620 | (15,637 | ) | 7,486,919 | |||||||||||
Small/Mid Cap Value Fund | 2,996,229 | 21,734,450 | (38,517 | ) | (11,058,832 | ) | ||||||||||
Total Return Bond Fund | 11,302,033 | (9,618,890 | ) | (52,435 | ) | (4,645,326 | ) |
The Funds did not have any unrecognized tax benefits at June 30, 2019, nor were there any increases or decreases in unrecognized tax benefits for the period then ended. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as an income tax expense in the Statements of Operations. During the period ended June 30, 2019, the Funds did not incur any such interest or penalties. The Funds are subject to examination by U.S. federal and state tax authorities for returns filed for the prior three fiscal years. Foreign taxes are provided for based on the Funds’ understanding of the tax rules and rates that exist in the foreign markets in which they invest.
7. | Indemnifications |
Under the Funds’ organizational documents, current and former Trustees and Officers are provided with specified rights to indemnification against liabilities arising in connection with the performance of their duties to the Funds, and shareholders are indemnified against personal liability for obligations of the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
8. | New Accounting Pronouncements |
In August 2018, FASB issued Accounting Standards Update2018-13 — Fair Value Measurement (Topic 820) Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement (“ASU2018-13”). ASU2018-13 eliminates the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the timing of transfers between levels of the fair value hierarchy, and the valuation processes for Level 3 fair value measurements. ASU2018-13 requires that information is provided about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. The amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Management has evaluated the impact of ASU2018-13 and has early adopted the disclosure requirements and the impact, if any, is reflected within the Funds’ financial statements.
176
Table of Contents
Notes to Financial Statements (Unaudited)(Continued)
9. | Legal Proceedings |
On December 7, 2010, the Trust was named as a defendant and putative member of the proposed defendant class of shareholders named in an adversary proceeding brought by The Official Committee of Unsecured Creditors of Tribune Company (the “Official Committee”) in the U.S. Bankruptcy Court for the District of Delaware, in connection with Tribune Company’s Chapter 11 bankruptcy proceeding (In re Tribune Company). The proceeding relates to a leveraged buyout (“LBO”) transaction by which Tribune Company converted to a privately-held company in 2007, and the putative defendant class is comprised of beneficial owners of shares of Tribune Company who received proceeds (the “Proceeds”) of the LBO. The Official Committee seeks to recover payments of those Proceeds. On April 5, 2012, the adversary proceeding was transferred to the Southern District of New York for consolidated pretrial proceedings. The action is now being prosecuted by the litigation trustee (“Trustee”) for the Tribune Litigation Trust.
The potential amounts sought to be recovered from the Equity Income Fund and Equity Index Fund are approximately $4,562,800 and $207,706, respectively, plus interest and the Official Committee’s court costs.
In addition, on June 2, 2011, the Equity Income Fund was named as a defendant in two closely related, parallel adversary proceedings brought in connection with the Tribune Company’s LBO by Deutsche Bank Trust Company Americas, in its capacity as successor indenture trustee for a certain series of Senior Notes, Law Debenture Trust Company of New York, in its capacity as successor indenture trustee for a certain series of Senior Notes, and Wilmington Trust Company, in its capacity as successor indenture trustee for the PHONES Notes (together, the “Plaintiffs”), one in the United States District Court for the District of Massachusetts and one in the United States District Court for the District of Connecticut. The Plaintiffs also seek to recover payments of the Proceeds. On December 20, 2011, this action was transferred to the Southern District of New York for consolidated pretrial proceedings.
The Funds cannot predict the outcome of these proceedings. Accordingly, the Funds have not accrued any amounts related to these proceedings. If the proceedings were to be decided in a manner adverse to the Funds, or if the Funds were to enter into a settlement agreement with the Trustee or the Plaintiffs, as applicable, the payment of such judgment or settlement could potentially have a material adverse effect on the Funds’ net asset values depending on the net assets of each applicable Fund at the time of such judgment or settlement.
10. | Subsequent Events |
In preparation of these financial statements, management has evaluated the events and transactions subsequent to June 30, 2019, through the date when the financial statements were issued, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Funds’ financial statements other than those disclosed below.
Effective July 1, 2019, MML Advisers has agreed to voluntarily waive an additional 0.01% of the advisory fee of the Foreign Fund. MML Advisers may amend or discontinue this waiver at any time without advance notice.
Tina Wilson resigned as President of the Trust effective as of August 9, 2019. Eric H. Wietsma was elected as President of the Trust effective August 9, 2019.
177
Table of Contents
Other Information (Unaudited)
A description of the policies and procedures that each Fund’s investment adviser and subadvisers use to vote proxies relating to the Fund’s portfolio securities is available, without charge, upon request, by calling1-888-309-3539, and on the Securities and Exchange Commission’s (“SEC”) EDGAR database on its website at http://www.sec.gov.
Information regarding how the Funds voted proxies relating to portfolio securities during the most recent12-month period ended June 30 is available, without charge, upon request, on the MassMutual website at http://www.massmutual.com/funds and on the SEC’s EDGAR database on its website at http://www.sec.gov.
Effective for periods ending on or after March 31, 2019, the Funds will file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on FormN-PORT. The Funds’ FormsN-PORT will be available on the SEC’s EDGAR database on its website at http://www.sec.gov. For periods ending prior to March 31, 2019, this information was filed on FormN-Q. The Funds’ FormsN-Q are available on the SEC’s EDGAR database on its website at http://www.sec.gov.
Trustees’ Approval of Investment Advisory Contracts
At their meeting in March 2019, the Trustees, including the Trustees who are not “interested persons” (as such term is defined in the 1940 Act) of the Trust, MML Advisers, or the subadvisers (the “Independent Trustees”), reviewed and approved a proposal to amend the subadvisory agreement with T. Rowe Price Associates, Inc. (“T. Rowe Price”) for the Blue Chip Growth Fund to modify the transitional credit language in the agreement. In arriving at their decision, the Trustees discussed the fees payable to T. Rowe Price by MML Advisers and concluded that the modified transitional credit language was appropriate and in the best interests of the Fund. In their deliberations, the Trustees were advised by independent counsel.
Prior to the vote being taken to approve the amendment to the subadvisory agreement discussed above, the Independent Trustees met separately in executive session to discuss the appropriateness of such contract. The Independent Trustees weighed the foregoing matters in light of the advice given to them by their independent legal counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Trustees, including the Independent Trustees, did not identify any single matter asall-important or controlling. The foregoing summary does not detail all of the matters considered.
The amended subadvisory agreement became effective on April 1, 2019.
At their meetings in May and June 2019, the Contract Committee (the “Committee”) and the Trustees, including the Independent Trustees,re-approved the existing advisory and subadvisory agreements (collectively, the “Contracts”) for each of the Blue Chip Growth Fund, Equity Income Fund, Equity Index Fund, Focused Equity Fund, Foreign Fund, Fundamental Growth Fund, Fundamental Value Fund, Global Fund, Growth & Income Fund, Income & Growth Fund, International Equity Fund, Large Cap Growth Fund, Managed Volatility Fund, Mid Cap Growth Fund, Mid Cap Value Fund, Small Cap Growth Equity Fund, Small Company Value Fund, Small/Mid Cap Value Fund, and Total Return Bond Fund. In preparation for the meetings, the Trustees requested, and MML Advisers and the subadvisers provided in advance, certain materials relevant to the consideration of the Contracts (the “Meeting Materials”). In all of their deliberations, the Trustees were advised by independent counsel.
The Committee received in advance of the meetings (i) a memorandum from MML Advisers discussing the nature and quality of the services it provides as investment adviser to the Funds; (ii) a profitability analysis prepared by MML Advisers; and (iii) a fee and performance study report (the “Third-Party Report”) with respect to each Fund prepared by an independent third-party vendor (the “Third-Party”). The Third-Party Report provided detailed comparative advisory fee, total expense, and performance information for each Fund to assist the Committee in its evaluation of the Contracts. The Committee also considered information presented to it throughout the year regarding MML Advisers and each of the subadvisers.
The Committee considered the nature, scope, and quality of services MML Advisers provides to the Funds, including: (i) the financial condition, stability, and business strategy of MML Advisers; (ii) the capabilities of MML Advisers with respect to regulatory compliance and its ability to monitor compliance with the investment policies of the Funds; (iii) MML Advisers’ ability
178
Table of Contents
Other Information (Unaudited)(Continued)
to provide investment oversight and provide for administrative and shareholder services to the Funds; and (iv) the experience and qualifications of the personnel of MML Advisers that perform, or oversee the performance of, the services provided to the Funds, and the needs of the Funds for administrative and shareholder services.
The Committee then reviewed and considered, for each Fund separately, the detailed information presented in the Third-Party Report regarding: (i) Fund expenses, including, among other things, both the Fund’s net advisory fee and total net expense ratio against peer funds; and (ii) the Fund’s relative performance (over various time periods against funds in its “category” and a benchmark index). In connection with the Committee’s review, MML Advisers provided commentary and analysis regarding each Fund’s expenses and performance and a recommendation as to the action to be taken by the Committee. The Committee noted that it had received in the Meeting Materials or during the course of the past year: (i) detailed information regarding MML Advisers’ ability to provide investment oversight and provide for administrative and shareholder services to the Funds; and (ii) a wide range of information about the subadvisers and their personnel with responsibility for providing services to the Funds and the fees payable to each subadviser by MML Advisers. MML Advisers reviewed with the Committee in detail the work MML Advisers does in its oversight roles, the expertise it brings to these roles, the size of its teams, and the financial commitment it has made to provide those services. Throughout the discussion, MML Advisers responded to Committee members’ questions and provided additional information concerning each Fund.
The Committee reviewed the expense and performance information for each Fund. (References to anyone- or three-year period below are to periods ended December 31, 2018. In all cases, the comparative expense information is that of a Fund’s “peer group” and the comparative performance information is that of a Fund’s “performance category.”)
The Committee considered that the total net expense ratios for the following Funds were within the top sixty percent of their peer groups, and in most cases in the top forty percent. Those Funds include the Income & Growth Fund, Large Cap Growth Fund, Mid Cap Growth Fund, Growth & Income Fund, Managed Volatility Fund, Small/Mid Cap Value Fund, Total Return Bond Fund, Fundamental Growth Fund, Global Fund, and Equity Index Fund. Of those Funds, all had net advisory fees below the medians of their peers, except the Income & Growth Fund, Large Cap Growth Fund, and Mid Cap Growth Fund, all of which had net advisory fees that were within what the Committee considered a sufficiently limited margin from the median as not to call into question their continuation.
In the case of the Fundamental Value Fund and International Equity Fund, the Committee considered that each Fund had a total net expense ratio outside the top sixty percent of their peer groups, but a net advisory fee below the peer group median.
The Committee considered a number of other Funds with relatively high total net expense ratios and net advisory fees, but whose net advisory fees MML Advisers considered to be within an appropriate range for the reason described below. MML Advisers noted that the advisory agreements for those Funds require the adviser itself to bear some or all of the Funds’ shareholder servicing expense. The Committee considered MML Advisers’ statement that, if the net advisory fees for those Funds were reduced by the portion of the fees attributable to administrative services (which include shareholder services), the net advisory fee would be less than, or within what MML Advisers considers an acceptable margin of, the applicable peer group median. Those Funds included the Small Cap Growth Equity Fund, Foreign Fund, Mid Cap Value Fund, Equity Income Fund, and Blue Chip Growth Fund. The Committee noted that with respect to the Foreign Fund, MML Advisers was proposing to implement an additional voluntary one basis point advisory fee waiver in order to reduce the Fund’s net advisory fee and total net expense ratio.
The Committee also considered MML Advisers’ statements that, although the total net expense ratio and net advisory fee of the Focused Equity Fund were outside the top sixty percent of its peer group (63rd comparative percentile in each case), the Fund’s net advisory fee was only one basis point above the peer group median, and the Fund’s total net expense ratio was six basis points above the peer group median. As to the Small Company Value Fund, the Committee considered MML Advisers’ statements that, although the Fund’s total net expense ratio and net advisory fee were outside the top sixty percent of its peer group (72nd percentile and 79th percentile, respectively), MML Advisers viewed the net advisory fee as competitive at 5 basis points above the peer group median, and the Fund had first-decile three year performance.
The Committee determined on the basis of these factors that the expenses of those Funds were consistent with the continuation of their advisory agreements.
The Committee considered that the following Funds achievedone- and three-year investment performance above the medians of their performance categories, or in the top sixty percent of their performance categories. Those included the Small Cap Growth Equity Fund, Small Company Value Fund, Mid Cap Value Fund, Equity Income Fund, Blue Chip Growth Fund, Mid Cap Growth
179
Table of Contents
Other Information (Unaudited)(Continued)
Fund, Growth & Income Fund, Managed Volatility Fund, Small/Mid Cap Value Fund, Fundamental Growth Fund, Global Fund, Focused Equity Fund, and Equity Index Fund. In addition, the Committee considered that the Foreign Fund and Total Return Bond Fund both experienced three-year investment performance outside the top sixty percent of their performance categories, but experienced improved performance for theone-year period, in each case above the median of their performance categories.
The Committee considered that each of the International Equity Fund and Income & Growth Fund had achieved favorable three-year relative performance, but had experienced less favorableone-year performance. The Committee took into account MML Advisers’ continued confidence in the longer-term performance of the subadvisers in question.
As to the Large Cap Growth Fund, the Committee considered that the Fund’s current subadviser had replaced the prior subadviser within the three-year period, and that MML Advisers is satisfied with the subadviser’s performance since its appointment. As to the Fundamental Value Fund, the Committee considered that the Fund’s performance had improved from the 84th comparative percentile to the 74th percentile of its performance category between the three-year period and theone-year period, that the subadviser for the Fund had been changed recently, and that MML Advisers expects performance to improve as a result.
The Committee also reviewed and considered information included in the Meeting Materials, or discussed at the meeting and during the course of the year, concerning economies of scale and the profitability of MML Advisers’ advisory relationship with the various Funds, including: (i) a description of MML Advisers’ revenues from the Funds (including advisory fees and administrative and shareholder services fees, as applicable) and the expense allocation methodology employed by MML Advisers; and (ii) profitability information for each individual Fund. The discussions included consideration of the intangible benefits derived by MML Advisers and its affiliates resulting from their relationships with the Funds and anyso-called “fallout benefits” to MML Advisers (which were not considered to be substantial in any event), such as any reputational value derived from serving as investment adviser to the Funds, and benefits accruing to subadvisers due toso-called “soft-dollar arrangements.” Prior to the votes being taken to approve the Contracts, the Committee met separately in executive session to discuss the appropriateness of such contracts. The Committee weighed the foregoing matters in light of the advice given to them by their independent legal counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Committee did not identify any single matter asall-important or controlling. The foregoing summary does not detail all of the matters considered.
As to each of the Funds, the Committee concluded that: (i) overall, it was satisfied with the nature, extent, and quality of services provided, and expected to be provided in the future, under the Contracts, including the level of MML Advisers’ oversight of each Fund and the subadvisory process; (ii) MML Advisers’ levels of profitability from its relationship with the various Funds are not excessive and the advisory fees payable under the advisory agreements and each Fund’s total net expenses are fair and reasonable; (iii) the investment processes, research capabilities, and philosophies of the subadvisers generally appear well suited to the Funds, given their investment objectives and policies; (iv) either the relative or absolute performance of a Fund (in each case, taking into account the applicable investment strategy and risk profile of the Fund), or the steps MML Advisers has proposed in respect of the underperformance of a Fund, are sufficient to warrant continuation of the Contracts for each of the Funds; and (v) the terms of the Contracts are fair and reasonable with respect to each Fund and are in the best interests of each Fund’s shareholders.
Also at their meeting in June 2019, the Trustees, including the Independent Trustees, reviewed and approved a proposal to make changes to the existing subadvisory agreement between MML Advisers and American Century Investment Management, Inc. (“American Century”) for the Mid Cap Value Fund in order to lower the subadvisory fee paid on behalf of the Fund. In arriving at their decision, the Trustees discussed the fees payable to American Century on behalf of the Mid Cap Value Fund by MML Advisers and the effect of such fees on the profitability to MML Advisers. The Trustees concluded that they were satisfied that MML Advisers’ projected level of profitability due to the amended subadvisory agreement are not excessive and the subadvisory fee amount under the amended subadvisory agreement is fair and reasonable. In their deliberations, the Trustees were advised by independent counsel.
Prior to the vote being taken to approve the amendment to the subadvisory agreement discussed above, the Independent Trustees met separately in executive session to discuss the appropriateness of such contract. The Independent Trustees weighed the foregoing matters in light of the advice given to them by their independent legal counsel as to the law applicable to the review of investment advisory contracts. In arriving at a decision, the Trustees, including the Independent Trustees, did not identify any single matter asall-important or controlling. The foregoing summary does not detail all of the matters considered.
The amended subadvisory agreement became effective on June 20, 2019.
180
Table of Contents
Other Information (Unaudited)(Continued)
Expense Examples:
The following information is in regards to expenses for the six months ended June 30, 2019:
As a shareholder of the Funds, you incur ongoing costs, including advisory fees, distribution and/or service(12b-1) fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested for the six months ended June 30, 2019.
Actual Expenses:
The first four columns of the table below provide information about actual account values and actual expenses. You may use this information, 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 under the heading entitled “Operating Expenses Incurred” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes:
The last two columns of the table below provide information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the 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. Therefore, the last two 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.
Beginning Value | Annualized Expense Ratio | Ending Value (Based on Actual Returns and Expenses) | Operating Expenses Incurred* | Ending Value (Based on Hypothetical Returns and Expenses) | Operating Expenses Incurred* | |||||||||||||||||||
Blue Chip Growth Fund | ||||||||||||||||||||||||
Initial Class | $ | 1,000 | 0.78 | % | $ | 1,208.20 | $ | 4.22 | $ | 1,020.70 | $ | 3.86 | ||||||||||||
Service Class | 1,000 | 1.03 | % | 1,206.70 | 5.57 | 1,019.50 | 5.10 | |||||||||||||||||
Equity Income Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.76 | % | 1,157.40 | 4.02 | 1,020.80 | 3.77 | |||||||||||||||||
Service Class | 1,000 | 1.01 | % | 1,156.20 | 5.34 | 1,019.60 | 5.00 | |||||||||||||||||
Equity Index Fund | ||||||||||||||||||||||||
Class I | 1,000 | 0.43 | % | 1,182.30 | 2.30 | 1,022.40 | 2.13 | |||||||||||||||||
Class II | 1,000 | 0.28 | % | 1,182.90 | 1.50 | 1,023.10 | 1.39 | |||||||||||||||||
Class III | 1,000 | 0.13 | % | 1,184.00 | 0.70 | 1,023.90 | 0.65 | |||||||||||||||||
Service Class I | 1,000 | 0.68 | % | 1,181.00 | 3.64 | 1,021.20 | 3.37 | |||||||||||||||||
Focused Equity Fund | ||||||||||||||||||||||||
Class II | 1,000 | 0.88 | % | 1,206.40 | 4.76 | 1,020.20 | 4.36 | |||||||||||||||||
Service Class I | 1,000 | 1.13 | % | 1,203.90 | 6.11 | 1,019.00 | 5.59 | |||||||||||||||||
Foreign Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.93 | % | 1,076.80 | 4.74 | 1,020.00 | 4.61 | |||||||||||||||||
Service Class | 1,000 | 1.18 | % | 1,073.90 | 6.00 | 1,018.70 | 5.84 |
181
Table of Contents
Other Information (Unaudited)(Continued)
Beginning Value | Annualized Expense Ratio | Ending Value (Based on Actual Returns and Expenses) | Operating Expenses Incurred* | Ending Value (Based on Hypothetical Returns and Expenses) | Operating Expenses Incurred* | |||||||||||||||||||
Fundamental Growth Fund | ||||||||||||||||||||||||
Class II | $ | 1,000 | 0.85 | % | $ | 1,209.20 | $ | 4.60 | $ | 1,020.40 | $ | 4.21 | ||||||||||||
Service Class I | 1,000 | 1.10 | % | 1,206.60 | 5.95 | 1,019.10 | 5.45 | |||||||||||||||||
Fundamental Value Fund | ||||||||||||||||||||||||
Class II | 1,000 | 0.79 | % | 1,120.40 | 4.11 | 1,020.60 | 3.91 | |||||||||||||||||
Service Class I | 1,000 | 1.04 | % | 1,119.10 | 5.40 | 1,019.40 | 5.15 | |||||||||||||||||
Global Fund | ||||||||||||||||||||||||
Class I | 1,000 | 0.80 | % | 1,210.70 | 4.34 | 1,020.60 | 3.96 | |||||||||||||||||
Class II | 1,000 | 0.80 | % | 1,210.90 | 4.34 | 1,020.60 | 3.96 | |||||||||||||||||
Service Class I | 1,000 | 1.05 | % | 1,209.70 | 5.69 | 1,019.40 | 5.20 | |||||||||||||||||
Growth & Income Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.56 | % | 1,209.20 | 3.03 | 1,021.80 | 2.78 | |||||||||||||||||
Service Class | 1,000 | 0.81 | % | 1,208.40 | 4.39 | 1,020.50 | 4.01 | |||||||||||||||||
Income & Growth Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.69 | % | 1,148.40 | 3.63 | 1,021.10 | 3.42 | |||||||||||||||||
Service Class | 1,000 | 0.94 | % | 1,147.10 | 4.95 | 1,019.90 | 4.66 | |||||||||||||||||
International Equity Fund | ||||||||||||||||||||||||
Class II | 1,000 | 1.00 | % | 1,131.30 | 5.23 | 1,019.60 | 4.95 | |||||||||||||||||
Service Class I | 1,000 | 1.25 | % | 1,130.10 | 6.53 | 1,018.40 | 6.19 | |||||||||||||||||
Large Cap Growth Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.73 | % | 1,221.10 | 3.98 | 1,020.90 | 3.62 | |||||||||||||||||
Service Class | 1,000 | 0.98 | % | 1,220.10 | 5.33 | 1,019.70 | 4.85 | |||||||||||||||||
Managed Volatility Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 1.06 | % | 1,069.40 | 5.38 | 1,019.30 | 5.25 | |||||||||||||||||
Service Class | 1,000 | 1.31 | % | 1,068.10 | 6.64 | 1,018.10 | 6.48 | |||||||||||||||||
Mid Cap Growth Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.81 | % | 1,241.80 | 4.45 | 1,020.50 | 4.01 | |||||||||||||||||
Service Class | 1,000 | 1.06 | % | 1,240.80 | 5.82 | 1,019.30 | 5.25 | |||||||||||||||||
Mid Cap Value Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.88 | % | 1,172.20 | 4.69 | 1,020.20 | 4.36 | |||||||||||||||||
Service Class | 1,000 | 1.13 | % | 1,172.10 | 6.02 | 1,019.00 | 5.59 | |||||||||||||||||
Small Cap Growth Equity Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 1.08 | % | 1,251.30 | 5.96 | 1,019.20 | 5.35 | |||||||||||||||||
Service Class | 1,000 | 1.33 | % | 1,249.70 | 7.34 | 1,018.00 | 6.58 | |||||||||||||||||
Small Company Value Fund | ||||||||||||||||||||||||
Class II | 1,000 | 0.99 | % | 1,171.70 | 5.27 | 1,019.70 | 4.90 | |||||||||||||||||
Service Class I | 1,000 | 1.24 | % | 1,171.30 | 6.60 | 1,018.40 | 6.14 | |||||||||||||||||
Small/Mid Cap Value Fund | ||||||||||||||||||||||||
Initial Class | 1,000 | 0.80 | % | 1,141.20 | 4.20 | 1,020.60 | 3.96 | |||||||||||||||||
Service Class | 1,000 | 1.05 | % | 1,140.00 | 5.51 | 1,019.40 | 5.20 | |||||||||||||||||
Total Return Bond Fund | ||||||||||||||||||||||||
Class II | 1,000 | 0.60 | % | 1,064.00 | 3.04 | 1,021.60 | 2.97 | |||||||||||||||||
Service Class I | 1,000 | 0.85 | % | 1,062.60 | 4.30 | 1,020.40 | 4.21 |
* | Expenses are calculated using the annualized expense ratio for the six months ended June 30, 2019, multiplied by the average account value over the period, multiplied by 179 days in the period, divided by 365 days in the year, unless stated otherwise. The annualized expense ratio does not reflect expenses deducted under the variable life insurance or variable annuity contract through which the Funds are invested in. Inclusion of these expenses would increase the annualized expense ratios shown. |
182
Table of Contents
Underwriter:
MML Distributors, LLC 100 Bright Meadow Blvd. Enfield, Connecticut 06082-1981 |
© 2019 Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001. All rights reserved. www.massmutual.com. Investment Adviser: MML Investment Advisers, LLC | RS-45237-02 |
Table of Contents
American Funds
Semi-annual report |
We believe in
investing in global
companies for
the long term.
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, you may not receive paper copies of the fund’s shareholder reports from the insurance company that offers your contract unless you specifically request paper copies from the insurance company or from your financial intermediary. Instead, the shareholder reports will be made available on a website, and the insurance company will notify you by mail each time a report is posted and provide you with a website link to access the report. Instructions for requesting paper copies will be provided by your insurance company.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.
You may elect to receive paper copies of all future reports free of charge from the insurance company. You can inform the insurance company that you wish to continue receiving paper copies of your shareholder reports by following the instructions provided by the insurance company. Your election to receive paper reports will apply to all investment options available under your contract.
American Funds Insurance Series, by Capital Group, is the underlying investment vehicle for many variable annuities and insurance products.
For more than 85 years, Capital Group has invested with a long-term focus based on thorough research and attention to risk.
Investing for short periods makes losses more likely. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Investing outside the United States involves risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries. Investing in small-capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies. The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade bonds. Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. Futures may not provide an effective hedge of the underlying securities because changes in the prices of futures may not track those of the securities they are intended to hedge. In addition, the managed risk strategy may not effectively protect the funds from market declines and will limit the funds’ participation in market gains. The use of the managed risk strategy could cause the fund’s return to lag those of the applicable underlying funds in certain rising market conditions. Refer to the funds’ prospectuses and the Risk Factors section of this report for more information on these and other risks associated with investing in the funds.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Contents
Global stocks advanced and several market indexes hit record highs in the six months ending June 30, 2019, with the MSCI ACWI (All Country World Index)1,2returning 16.23%. Investor sentiment improved as central banks around the world made it clear that the era of accommodative monetary policy is far from over, and as economies and earnings held up better than expected.
The United States had one of the strongest markets, as the MSCI USA Index1,3climbed 18.79%, touching new all-time highs. While U.S. stocks strongly rallied coming out of a downturn toward the end of 2018, economic data was mixed. The U.S. economy grew at a strong 3.1% annual rate in the first quarter, but is expected to slow in the second quarter, and the labor market showed signs of plateauing. In May, only 75,000 jobs were added to the workforce, and wages grew 3.1% from the previous year — the slowest pace since September. The Conference Board’s consumer confidence index declined to its lowest point in nearly two years, likely due to rising trade tensions, but S&P 500 constituent firms reported upside corporate earnings surprises — particularly within communication services — which kept sentiment high.
Information technology stocks led markets higher for the first half of 2019, extending gains after a particularly strong first quarter. Cyclical stocks rallied as officials with the U.S. Federal Reserve and the European Central Bank suggested that interest rate cuts or other stimulus measures could be on the way. Health care, a traditionally defensive sector, lagged the overall market. Calls for drastic drug pricing reform by 2020 presidential candidates have weighed on sentiment and pressured stocks within the biotechnology industry. Energy stocks declined as crude oil prices dropped in early June.
The U.S. Federal Reserve kept the fed funds rate flat at 2.5% at its January, March and June meetings and said it expected no further increases for the rest of 2019. Recently, the Fed has gone even further, signaling it is now likely to cut rates, and actually doing so on July 31. Other central banks around the world echoed that dovish tone. The European Central bank revived a previously halted stimulus plan and indicated that negative interest rates would remain in place through the end of 2019.
In Europe, stocks rose on the prospects of lower interest rates and steady earnings despite continuing political turmoil, including the announced resignation of U.K. Prime Minster Theresa May amid stalled Brexit negotiations. Overall, the MSCI Europe Index1gained 15.80% year-to-date. Elsewhere among developed markets, Japanese stocks rebounded in the first quarter despite an economic slowdown, with the MSCI Japan Index posting a 7.75% gain for the period but trailing other major global markets as exports remained weak. Emerging markets stocks fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries. Overall, the MSCI Emerging Markets Investible Market Index1,4gained 10.14% for the six months.
See page 2 for footnotes.
All market returns referenced in this report are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. Country returns are based on MSCI indexes, which reflect reinvestment of distributions and dividends net of withholding taxes, except for the MSCI USA Index, which reflects dividends gross of withholding taxes. Source: MSCI.
American Funds Insurance Series | 1 |
In bond markets, the Bloomberg Barclays U.S. Corporate Investment Grade Index5,6gained 9.85% and the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index5,7rose 9.94% as investors sought higher yields than those offered by U.S. Treasuries. Bloomberg Barclays Global Aggregate Index5,8climbed 5.57%, while the Bloomberg Barclays U.S. Aggregate Index5,9increased 6.11%. The 10-year Treasury yield, which stood at 2.69% on December 31, 2018, fell to 2.00%. The J.P. Morgan Emerging Markets Bond Index Global10gained 10.60%, aided by falling U.S. Treasury yields and a declining dollar against many emerging markets currencies.
The U.S. dollar was mixed but relatively unchanged against global currencies. In developed markets, the euro, Australian dollar and British pound slid 0.38%, 0.32% and 0.07%, respectively, while the Japanese yen advanced 1.83% and Canadian dollar gained 4.52% on the greenback.
The period was one of strong performance for American Funds Insurance Series, with most funds recording double-digit returns.
The road ahead
The U.S. economy has been resilient and strong, providing a good fundamental backdrop for the stock market. After a decline in the fourth quarter of 2018, investors have enjoyed a sharp recovery in the first half of 2019. In the midst of this positive environment, potential sources of volatility remain, the largest of which is probably the U.S.-China trade struggle. There is bipartisan support for reining in China on trade-related issues, so it appears that even if a deal is reached in the short term, the dispute may be a lengthy one — and markets may continue to rise and fall on the news. Other geopolitical tensions, such as developments regarding Iran, Russia, Venezuela and North Korea, also bear monitoring. In the U.K., while the fate of Brexit seems to drag on, there is some chance that come October 31, 2019, there will be a resolution. In the event of a hard Brexit, we would expect markets to react negatively. All of these events have the potential to move markets but we shouldn’t consider them all negative — they could also move markets forward if they resolve in a more positive way.
We had been on a trajectory of normalization of interest rates but geopolitical tensions and some evidence of a cooling U.S. economy, along with a fall in 10-year Treasury rates, have put pressure on the Fed to cut rates, which is expected to be helpful to markets. We will see if the economy responds in a positive way or if the Fed will have to cut further. With the bond market seemingly anticipating an economic slowdown while the equity market is anticipating continued growth, we could see market volatility reappear in the comings months.
We remain confident in our ability to find attractive companies for the long term. We continue to stay the course of conducting deep fundamental research with a long-term horizon, as well as an eye toward valuation and risk. We are optimistic that our robust investment process and our ability to identify solid companies at good valuations based on bottom-up analysis can serve our investors well in the long run.
We continue to have confidence this will remain the case, and thank you for your support. We look forward to reporting to you again in six months’ time.
Sincerely,
Donald D. O’Neal
Co-President
Alan N. Berro
Co-President
August 13, 2019
1 | Source: MSCI. |
2 | The MSCI ACWI is a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes. |
3 | The MSCI USA Index is a free float-adjusted, market capitalization-weighted index that is designed to measure the U.S. portion of the world market. |
4 | The MSCI Emerging Markets Investable Markets Index (IMI) is a free float-adjusted market capitalization-weighted index that is designed to measure results of the large-, mid- and small-capitalization segments of more than 20 emerging equity markets. |
5 | Source: Bloomberg Index Services Ltd. |
6 | The Bloomberg Barclays U.S. Corporate Investment Grade Index represents the universe of investment grade, publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specific maturity, liquidity and quality requirements. |
7 | The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index covers the universe of fixed-rate, non-investment-grade debt. The index limits the maximum exposure of any one issuer to 2%. |
8 | The Bloomberg Barclays Global Aggregate Index represents the global investment-grade fixed income markets. |
9 | The Bloomberg Barclays U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. |
10 | The J.P. Morgan Emerging Markets Bond Index Global tracks total returns for U.S. dollar-denominated debt instruments issued by emerging markets sovereign and quasi-sovereign entities, including Brady bonds, loans and Eurobonds. |
2 | American Funds Insurance Series |
Summary investment portfolios
Summary investment portfolios are designed to streamline this report and help investors better focus on the funds’ principal holdings. Ultra-Short Bond Fund, Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund show a complete listing of portfolio holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings for each fund in the series.
Unless otherwise indicated, American Funds Insurance Series investment results are for Class 1 shares (Class P1 shares for managed risk funds). Class 1A shares began operations on January 6, 2017. Class 2 shares began operations on April 30, 1997. Class 3 shares began operations on January 16, 2004. Class 4 shares began operations on December 14, 2012. Results encompassing periods prior to those dates assume a hypothetical investment in Class 1 shares and include the deduction of additional annual expenses (0.25% for Class 1A shares, 0.25% for Class 2 shares, 0.18% for Class 3 shares and 0.50% for Class 4 shares).
The variable annuities and life insurance contracts that use the series funds contain certain fees and expenses not reflected in this report. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The series investment adviser waived a portion of its management fees for all existing funds from September 1, 2004, through December 31, 2008, for Global Growth and Income Fund from May 1, 2006, through December 31, 2008, for International Growth and Income Fund from November 18, 2008, through December 31, 2008, for U.S. Government/AAA-Rated Securities Fund from July 1, 2010, through December 31, 2010, and for Blue Chip Income and Growth Fund from February 1, 2014, through January 31, 2015.
For the managed risk funds, the investment adviser is currently waiving a portion of its management fee equal to 0.05% of the funds’ net assets. In addition, the investment adviser is currently reimbursing a portion of other expenses for Managed Risk Growth Fund, Managed Risk International Fund and Managed Risk Blue Chip Income and Growth Fund. The waivers and reimbursements will be in effect through at least May 1, 2020, unless modified or terminated by the series board. After that time, the investment adviser may elect to extend, modify or terminate the reimbursements. The waivers may only be modified or terminated with the approval of the series board. Applicable fund results shown reflect the waivers and reimbursements, without which results would have been lower. See the Financial Highlights tables in this report for details.
The Managed Risk Growth Fund pursues its objective by investing in shares of American Funds Insurance Series – Growth FundSMand American Funds Insurance Series – Bond FundSM. The Managed Risk International Fund pursues its objective by investing in shares of American Funds Insurance Series – International FundSMand American Funds Insurance Series – Bond FundSM. The Managed Risk Blue Chip Income and Growth Fund pursues its objective by investing in shares of American Funds Insurance Series – Blue Chip Income and Growth FundSMand American Funds Insurance Series – U.S. Government/AAA-Rated Securities FundSM. The Managed Risk Growth-Income Fund pursues its objective by investing in shares of American Funds Insurance Series – Growth-Income FundSMand American Funds Insurance Series – Bond FundSM. The Managed Risk Asset Allocation Fund pursues its objective by investing in shares of American Funds Insurance Series – Asset Allocation Fund.SM The funds seek to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the funds’ managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the funds’ results can be expected to lag those of the underlying fund.
Funds are listed in the report as follows: equity, balanced, fixed income and managed risk.
American Funds Insurance Series | 3 |
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Growth Fund rose 21.41% for the six months ended June 30, 2019, compared with a 16.23% increase for the MSCI ACWI (All Country World Index),1a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes.
Global stocks, as measured by the MSCI ACWI, rallied for much of the first half of 2019 supported by better-than-expected U.S. economic data and accommodative monetary policies in the U.S., Europe and China. Signs of progress in U.S.-China trade negotiations also boosted investor sentiment except for part of May when U.S.-China trade talks broke down. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries. In Europe, markets advanced along with global equities despite ongoing signs of weakening economic data in the 19-member eurozone.
An eclectic mix of information technology and consumer discretionary investments boosted the fund’s relative returns. Information technology sector stocks ASML and Paycom outpaced the wider market and were among the top contributors to the fund’s relative returns. Consumer discretionary stock Amazon also helped the fund’s relative returns, boosted by revenue growth.
Investments in consumer staples were the biggest drag on relative results. Walgreens Boots Alliance Inc. hindered returns after its shares plunged in April on weak fiscal second-quarter results.
On a geographic basis, stocks of companies domiciled in the Netherlands and U.S. were additive to results, while stocks of companies based in the U.K. and Canada lagged on a relative basis.
Despite soaring valuations, the fund’s portfolio managers are optimistic they will continue to find good companies globally that offer high-quality products, and whose values are not yet fully reflected in their share prices.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 45.2 | % | ||
Other | 1.9 | |||
47.1 | ||||
Europe | ||||
United Kingdom | 6.6 | |||
Netherlands | 6.2 | |||
France | 5.6 | |||
Switzerland | 4.5 | |||
Germany | 2.3 | |||
Russian Federation | 1.3 | |||
Denmark | 1.2 | |||
Sweden | 1.0 | |||
Other | 1.3 | |||
30.0 | ||||
Asia/Pacific Basin | ||||
China | 4.6 | |||
Taiwan | 3.5 | |||
Hong Kong | 3.5 | |||
Japan | 2.7 | |||
India | 2.1 | |||
Other | 2.1 | |||
18.5 | ||||
Other regions | ||||
South Africa | 1.1 | |||
Short-term securities & other assets less liabilities | 3.3 | |||
Total | 100.0 | % |
4 | American Funds Insurance Series |
Global Growth Fund
Largest equity securities2 | Percent of net assets | |||
Amazon | 6.74 | % | ||
ASML | 3.84 | |||
Microsoft | 3.63 | |||
TSMC | 3.51 | |||
Alphabet | 3.19 | |||
Visa | 3.14 | |||
AIA Group | 2.56 | |||
Alibaba Group | 2.49 | |||
Airbus | 2.45 | |||
Broadcom | 2.22 |
Total returns based on a $1,000 investment | ||||||||||||||||||||||||
For periods ended June 30, 20193 | ||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | Lifetime (since April 30, 1997) | Expense ratio | |||||||||||||||||||
Class 1 | 21.41 | % | 7.31 | % | 9.53 | % | 12.66 | % | 9.91 | % | .55 | % | ||||||||||||
Class 1A | 21.23 | 7.01 | 9.27 | 12.38 | 9.63 | .80 | ||||||||||||||||||
Class 2 | 21.25 | 7.05 | 9.26 | 12.38 | 9.63 | .80 | ||||||||||||||||||
Class 4 | 21.07 | 6.78 | 8.98 | 12.14 | 9.38 | 1.05 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 5 |
Global Small Capitalization Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Small Capitalization Fund increased 20.30% for the six months ended June 30, 2019. Its benchmark, the MSCI All Country World Small Cap Index,1a free float-adjusted market capitalization-weighted index designed to measure equity market results of smaller capitalization companies in both developed and emerging markets, gained 15.01%.
Global stocks, as measured by the MSCI ACWI, rallied for much of the first half of 2019 supported by better-than-expected U.S. economic data and accommodative monetary policies in the U.S., Europe and China. Optimism about U.S.-China trade negotiations also boosted investor sentiment except for part of May when U.S.-China trade talks broke down. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries. In Europe, markets advanced along with global equities despite ongoing signs of weakening economic data in the 19-member eurozone.
Fund holdings in the information technology sector contributed the most to relative returns. Information technology stock Paycom widely outpaced the broader market and was among the fund’s top contributors over the period. However, the fund’s holdings of health care companies Evolent Health and Allakos detracted from returns.
While investments in U.S. companies were additive to returns, investments in companies domiciled in Mexico detracted.
The fund’s portfolio managers continue to seek investment opportunities in undervalued companies that have the potential to change industries and benefit shareholders. They believe rigorous bottom-up research into each potential equity investment can help achieve this goal. The fund currently holds nearly 300 companies diversified across geographies and industries. As always, we maintain our commitment to investing for the long term.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 41.1 | % | ||
Brazil | 2.3 | |||
Canada | 1.5 | |||
Other | 1.3 | |||
46.2 | ||||
Asia/Pacific Basin | ||||
India | 5.6 | |||
China | 5.1 | |||
Japan | 5.1 | |||
Philippines | 2.0 | |||
Hong Kong | 1.6 | |||
Australia | 1.1 | |||
Taiwan | 1.0 | |||
South Korea | 1.0 | |||
Other | 1.2 | |||
23.7 | ||||
Europe | ||||
United Kingdom | 8.3 | |||
Germany | 3.0 | |||
Italy | 2.3 | |||
Sweden | 2.1 | |||
Netherlands | 2.1 | |||
Switzerland | 1.6 | |||
Other | 3.3 | |||
22.7 | ||||
Short-term securities & other assets less liabilities | 7.4 | |||
Total | 100.0 | % |
Largest equity securities2 | Percent of net assets | |||
GW Pharmaceuticals | 3.20 | % | ||
Insulet | 2.81 | |||
Haemonetics | 1.57 | |||
Kotak Mahindra Bank | 1.51 | |||
International Container Terminal Services | 1.46 | |||
frontdoor | 1.24 | |||
CONMED | 1.18 | |||
Integra LifeSciences Holdings | 1.14 | |||
Paycom | 1.11 | |||
Essent Group | 1.08 |
6 | American Funds Insurance Series |
Global Small Capitalization Fund
Total returns based on a $1,000 investment | ||||||||||||||||||||||||
For periods ended June 30, 20193 | ||||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | Lifetime (since April 30, 1998) | Expense ratio | |||||||||||||||||||
Class 1 | 20.30 | % | 3.18 | % | 6.00 | % | 10.70 | % | 9.47 | % | .74 | % | ||||||||||||
Class 1A | 20.21 | 2.90 | 5.75 | 10.43 | 9.20 | .99 | ||||||||||||||||||
Class 2 | 20.16 | 2.90 | 5.73 | 10.42 | 9.20 | .99 | ||||||||||||||||||
Class 4 | 20.05 | 2.65 | 5.47 | 10.16 | 8.93 | 1.24 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 7 |
Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Growth Fund gained 16.80% for the six months ended June 30, 2019, compared with a 18.54% increase in its benchmark index, Standard & Poor’s 500 Composite Index,1a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.
U.S. equity markets shrugged off a sharp decline in December and rallied to all-time highs in April – achieving strong gains despite a volatile stretch in May. Solid economic growth and indications the U.S. Federal Reserve will keep interest rates low increased investor optimism that the economic expansion can be sustained longer than previously expected. Information technology stocks led markets higher, extending gains through June after a particularly strong first quarter. Outside the U.S., European stocks advanced despite signs of slowing economic growth and continued trade uncertainty. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries.
Companies in the communication services sector, led by Facebook and Netflix (which benefitted from strong user and revenue growth), contributed to relative results. Investments in the consumer discretionary and health-care sectors detracted from the fund’s relative results. The fund’s top detractor to returns was consumer discretionary company Tesla Inc. While Tesla has led an electric vehicle revolution in the automotive industry, it has experienced recent growing pains as it attacks the challenge of getting its moderately priced offerings built, delivered and serviced at volume.
Although U.S. economic growth remained solid, the fund’s portfolio managers are keeping a close watch on near-term economic indicators, such as wage growth, monetary policy and trade relations. Portfolio managers continue to favor well-positioned, growth-oriented companies that are capable of generating free cash flow in myriad near term economic environments and remain optimistic that our global research will help us identify attractive long-term investment opportunities.
Largest equity securities2 | Percent of net assets | |||
5.60 | % | |||
Microsoft | 5.30 | |||
Amazon | 3.60 | |||
Netflix | 3.46 | |||
Alphabet | 3.07 | |||
UnitedHealth Group | 2.97 | |||
Broadcom | 2.77 | |||
Intuitive Surgical | 1.86 | |||
Home Depot | 1.79 | |||
ServiceNow | 1.76 |
8 | American Funds Insurance Series |
Growth Fund
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | |||||||||||||||||||
Class 1 | 16.80 | % | 6.22 | % | 12.70 | % | 15.37 | % | 12.75 | % | .34 | % | ||||||||||||
Class 1A | 16.66 | 5.96 | 12.44 | 15.09 | 12.47 | .59 | ||||||||||||||||||
Class 2 | 16.65 | 5.95 | 12.42 | 15.09 | 12.47 | .59 | ||||||||||||||||||
Class 3 | 16.68 | 6.02 | 12.50 | 15.17 | 12.55 | .52 | ||||||||||||||||||
Class 4 | 16.51 | 5.70 | 12.14 | 14.82 | 12.19 | .84 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 9 |
International Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
International Fund gained 14.94% for the six months ended June 30, 2019. Its benchmark, the MSCI ACWI (All Country World Index) ex USA,1a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes excluding the U.S.), increased 13.60%.
Global stocks, as measured by the MSCI ACWI, rallied for much of the first half of 2019 supported by better-than-expected U.S. economic data and accommodative monetary policies in the U.S., Europe and China. Signs of progress in U.S.-China trade negotiations also boosted investor sentiment except for part of May when U.S.-China trade talks broke down. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries. In Europe, markets advanced along with global equities despite ongoing signs of weakening economic data in the 19-member eurozone.
Investments in the financials and communication services sectors boosted relative returns with Indian companies Axis Bank and HDFC Bank among the top contributors thanks to favorable political and economic tail winds in India. Among the biggest detractors to relative returns was health-care sector stock Teva Pharmaceutical, whose stock price suffered amid continued opioid litigation.
The fund’s portfolio managers continue to monitor volatility and potential headwinds brought about by political and trade uncertainty. Given how late it may be in the current bull market, they seek opportunities in particular within those regions, countries and sectors less affected by these global headlines. Their focus on a company’s fundamental growth drivers and intrinsic worth is critical to helping them identify investments that they believe represent the best value over the long term.
Country diversification | Percent of net assets | |||
Asia/Pacific Basin | ||||
Japan | 14.0 | % | ||
China | 11.4 | |||
India | 8.4 | |||
Hong Kong | 7.4 | |||
South Korea | 3.3 | |||
Australia | 1.4 | |||
Philippines | 1.2 | |||
Other | 1.3 | |||
48.4 | ||||
Europe | ||||
France | 10.3 | |||
United Kingdom | 8.6 | |||
Switzerland | 5.3 | |||
Germany | 4.0 | |||
Netherlands | 2.3 | |||
Spain | 1.9 | |||
Other | 2.1 | |||
34.5 | ||||
The Americas | ||||
Canada | 2.8 | |||
Brazil | 2.7 | |||
United States | 1.4 | |||
Other | .3 | |||
7.2 | ||||
Other regions | ||||
Other | 1.8 | |||
Short-term securities & other assets less liabilities | 8.1 | |||
Total | 100.0 | % |
Largest equity securities2 | Percent of net assets | |||
AIA Group | 4.49 | % | ||
Airbus | 4.30 | |||
HDFC Bank | 3.51 | |||
Novartis | 2.92 | |||
Alibaba Group | 2.48 | |||
Tencent | 2.11 | |||
Kotak Mahindra Bank | 1.77 | |||
Samsung Electronics | 1.76 | |||
Vale | 1.68 | |||
Pernod Ricard | 1.42 |
10 | American Funds Insurance Series |
International Fund
Total returns based ona $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | 10 years | Lifetime (since May 1, 1990) | Expense ratio | |||||||||||||||||||
Class 1 | 14.94 | % | 0.08 | % | 4.34 | % | 7.89 | % | 8.10 | % | .53 | % | ||||||||||||
Class 1A | 14.76 | –0.15 | 4.09 | 7.62 | 7.83 | .78 | ||||||||||||||||||
Class 2 | 14.78 | –0.14 | 4.08 | 7.62 | 7.83 | .78 | ||||||||||||||||||
Class 3 | 14.87 | –0.08 | 4.16 | 7.70 | 7.90 | .71 | ||||||||||||||||||
Class 4 | 14.68 | –0.42 | 3.82 | 7.37 | 7.57 | 1.03 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 11 |
New World Fund®
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
New World Fund was up 19.23% for the six months ended June 30, 2019. Its benchmark index, the MSCI ACWI (All Country World Index),1a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes), was up 16.23%. The MSCI Emerging Markets Index,1a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global emerging markets (consisting of more than 20 emerging market country indexes), increased by 10.58%.
Global stocks, as measured by the MSCI ACWI, rallied for much of the first half of 2019 supported by better-than-expected U.S. economic data and accommodative monetary policies in the U.S., Europe and China. Signs of progress in U.S.-China trade negotiations also boosted investor sentiment except for part of May when U.S.-China trade talks broke down. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries. In Europe, markets advanced along with global equities despite ongoing signs of weakening economic data in the 19-member eurozone.
The fund’s relative returns outpaced emerging markets in general. Investments in the information technology and consumer staples sectors were beneficial to the fund. Digital payment company PagSeguro rose on the back of strong revenue growth as it gained market share from established banks. Among detractors, Sony hindered returns as increased pressure from cloud-based gaming competitors soured market sentiment.
The fund’s portfolio managers continue to pursue a bottom-up approach to investing and search for undervalued companies with solid foundations around the world, as well as stocks that are domestically focused and more insulated from geopolitical events given increased volatility at this point in the market cycle.
Country diversification | Percent of net assets | |||
Asia/Pacific Basin | ||||
India | 12.7 | % | ||
China | 11.8 | |||
Japan | 3.7 | |||
Taiwan | 2.9 | |||
Hong Kong | 3.8 | |||
Other | 4.2 | |||
39.1 | ||||
The Americas | ||||
United States | 20.4 | |||
Brazil | 11.9 | |||
Canada | 1.5 | |||
Other | 2.4 | |||
36.2 | ||||
Europe | ||||
United Kingdom | 5.2 | |||
France | 3.0 | |||
Russian Federation | 2.9 | |||
Switzerland | 2.1 | |||
Germany | 2.0 | |||
Other | 2.9 | |||
18.1 | ||||
Other regions | ||||
Other | 1.3 | |||
Short-term securities & other assets less liabilities | 5.3 | |||
Total | 100.0 | % |
Largest equity securities2 | Percent of net assets | |||
Reliance Industries | 6.06 | % | ||
PagSeguro | 2.96 | |||
HDFC Bank | 2.66 | |||
TSMC | 2.65 | |||
Alibaba Group | 2.16 | |||
AIA Group | 2.02 | |||
Vale | 1.89 | |||
Microsoft | 1.87 | |||
B3 | 1.86 | |||
Kotak Mahindra Bank | 1.72 |
12 | American Funds Insurance Series |
New World Fund
Total returns based ona $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | 10 years | Lifetime (since June 17, 1999) | Expense ratio | |||||||||||||||||||
Class 1 | 19.23 | % | 6.90 | % | 3.74 | % | 7.80 | % | 8.26 | % | .76 | % | ||||||||||||
Class 1A | 19.10 | 6.66 | 3.49 | 7.53 | 8.00 | 1.01 | ||||||||||||||||||
Class 2 | 19.07 | 6.63 | 3.48 | 7.53 | 7.99 | 1.01 | ||||||||||||||||||
Class 4 | 18.96 | 6.40 | 3.23 | 7.27 | 7.73 | 1.26 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. Results for MSCI indexes reflect dividends net of withholding taxes and reinvestment of distributions. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 13 |
Blue Chip Income and Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Blue Chip Income and Growth Fund gained 11.14% for the six months ended June 30, 2019, trailing the 18.54% rise in its benchmark index, Standard & Poor’s 500 Composite Index,1a market capitalization-weighted index based on the results of approximately 500 widely held common stocks.
U.S. equity markets shrugged off a sharp decline in December and rallied to all-time highs in April – achieving strong gains despite a volatile stretch in May. Solid economic growth and indications that the U.S. Federal Reserve will keep interest rates low increased investor optimism that the economic expansion can be sustained longer than previously expected. Information technology stocks led markets higher, extending gains through June after a particularly strong first quarter. Outside the U.S., European stocks advanced despite signs of slowing economic growth and continued trade uncertainty. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries.
Investments in industrials helped the fund’s results relative to the index. Among the fund’s top contributors to relative returns within industrials was CSX, whose implementation of precision railroading should help position CSX for continued long-term growth. Another top contributor on a relative basis was materials sector stock Linde.
Fund holdings in the health care and energy sectors hindered relative returns. Investments in pharmaceutical companies, such as AbbVie and Amgen, hurt results relative to the index. Overall, this proved to be a relatively disappointing six months for the fund, but we continue to believe the focus on dividend-paying stocks will pay off over the long term.
Nearer term, the fund’s portfolio managers are aware that the market is keeping a close watch on U.S. monetary policy, our trade relationships and the current shape of the yield curve and their implications on the U.S. economy. Portfolio managers continue to favor well-managed, high-quality companies that are capable of paying dividends in myriad economic environments. We remain optimistic that this focus, supported by our global research, will help us to identify attractive long-term investment opportunities.
Largest equity securities2 | Percent of net assets | |||
Abbott Laboratories | 5.15 | % | ||
AbbVie | 4.96 | |||
Exxon Mobil | 4.18 | |||
Lowe’s | 4.11 | |||
Microsoft | 3.74 | |||
General Dynamics | 3.01 | |||
2.93 | ||||
EOG Resources | 2.91 | |||
Philip Morris International | 2.90 | |||
QUALCOMM | 2.45 |
14 | American Funds Insurance Series |
Blue Chip Income and Growth Fund
Total returns based ona $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | 10 years | Lifetime (since July 5, 2001) | Expense ratio | |||||||||||||||||||
Class 1 | 11.14 | % | 1.27 | % | 8.13 | % | 12.98 | % | 6.36 | % | .41 | % | ||||||||||||
Class 1A | 10.89 | 0.95 | 7.86 | 12.70 | 6.10 | .66 | ||||||||||||||||||
Class 2 | 10.89 | 0.99 | 7.84 | 12.69 | 6.09 | .66 | ||||||||||||||||||
Class 4 | 10.83 | 0.81 | 7.58 | 12.48 | 5.86 | .91 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008, and from February 1, 2014, through January 31, 2015. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 15 |
Global Growth and Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Growth and Income Fund advanced 19.47% for the six months ended June 30, 2019, compared with a 16.23% increase in its benchmark index, MSCI ACWI (All Country World Index),1a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed and emerging market country indexes.
Global stocks, as measured by the MSCI ACWI, rallied for much of the first half of 2019 supported by better-than-expected U.S. economic data and accommodative monetary policies in the U.S., Europe and China. Signs of progress in U.S.-China trade negotiations also boosted investor sentiment except for part of May when U.S.-China trade talks broke down. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries. In Europe, markets advanced along with global equities despite ongoing signs of weakening economic data in the 19-member eurozone.
Several sectors including industrials and financials contributed to the fund’s relative returns. Industrial company Airbus rallied on positive tail winds from strong global demand, and likely benefited from Boeing’s troubles with its 737MAX. On the downside, some investments in the information technology sector hindered relative returns. In particular, TSMC was a top relative detractor.
On a country basis, holdings in Japan and France contributed the most to relative returns, and holdings in the U.S. and Taiwan were a drag on returns (the former due to a lower-than-index position).
The fund’s portfolio managers recognize that we are experiencing a slowdown in global economic growth. With dovish monetary strategy back under consideration in the U.S. and Europe, the fund’s managers remain cautiously optimistic about the prospects of the global economy and are monitoring the potential impact on global growth. Portfolio managers continue to invest based on a bottom-up approach to long-term investing and believe they can uncover promising companies with strong positions in their industries, sustainable growth and income opportunities globally – including emerging markets.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 35.2 | % | ||
Brazil | 7.2 | |||
Canada | 2.3 | |||
Other | .2 | |||
44.9 | ||||
Europe | ||||
France | 7.4 | |||
United Kingdom | 4.5 | |||
Switzerland | 3.6 | |||
Germany | 3.1 | |||
Russian Federation | 2.5 | |||
Denmark | 2.4 | |||
Netherlands | 2.0 | |||
Other | 2.0 | |||
27.5 | ||||
Asia/Pacific Basin | ||||
Japan | 6.1 | |||
India | 3.6 | |||
Australia | 3.2 | |||
Taiwan | 3.2 | |||
Hong Kong | 1.9 | |||
China | 1.7 | |||
Other | 2.0 | |||
21.7 | ||||
Other regions | ||||
Other | .7 | |||
Short-term securities & other assets less liabilities | 5.2 | |||
Total | 100.0 | % |
Largest equity securities2 | Percent of net assets | |||
Airbus | 4.64 | % | ||
Nintendo | 4.00 | |||
TSMC | 3.18 | |||
Microsoft | 2.55 | |||
Reliance Industries | 2.50 | |||
PagSeguro | 2.29 | |||
Nestlé | 2.19 | |||
Orsted | 2.07 | |||
Broadcom | 1.70 | |||
AIA Group | 1.68 |
16 | American Funds Insurance Series |
Global Growth and Income Fund
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | 10 years | Lifetime (since May 1, 2006) | Expense ratio | |||||||||||||||||||
Class 1 | 19.47 | % | 9.16 | % | 7.68 | % | 11.69 | % | 7.08 | % | .63 | % | ||||||||||||
Class 1A | 19.31 | 8.91 | 7.45 | 11.43 | 6.83 | .88 | ||||||||||||||||||
Class 2 | 19.39 | 8.87 | 7.42 | 11.41 | 6.81 | .88 | ||||||||||||||||||
Class 4 | 19.24 | 8.67 | 7.16 | 11.16 | 6.57 | 1.13 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from May 1, 2006, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 17 |
Growth-Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Growth-Income Fund gained 16.15% for the six months ended June 30, 2019. Standard & Poor’s 500 Composite Index,1a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, rose 18.54%.
U.S. equity markets shrugged off a sharp decline in December and rallied to all-time highs in April – achieving strong gains despite a volatile stretch in May. Solid economic growth and indications the U.S. Federal Reserve will keep interest rates low increased investor optimism that the economic expansion can be sustained longer than previously expected. Information technology stocks led markets higher, extending gains through June after a particularly strong first quarter. Outside the U.S., European stocks advanced despite signs of slowing economic growth and continued trade uncertainty. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries.
Regarding the fund, investments in the industrials sector contributed the most to the fund’s relative returns. Among industrials, Airbus added the most to the fund’s results on the back of continued strong secular tail winds for air travel and likely benefited from Boeing’s troubles with its 737MAX. On the downside, the fund’s lower-than-index position in information technology stocks, a sector that performed strongly over the period, weighed on relative returns. In particular, the fund’s lower-than-index investment in Apple hindered sector results the most as Apple shares outperformed the broader market over the period.
The fund’s portfolio managers continue to look for compelling investment opportunities, buying stocks we believe represent the best value over the long term.
Largest equity securities2 | Percent of net assets | |||
Microsoft | 3.70 | % | ||
3.66 | ||||
Alphabet | 1.90 | |||
Broadcom | 1.79 | |||
UnitedHealth Group | 1.76 | |||
JPMorgan Chase | 1.65 | |||
Amazon | 1.62 | |||
Netflix | 1.57 | |||
Abbott Laboratories | 1.57 | |||
Intel | 1.46 |
18 | American Funds Insurance Series |
Growth-Income Fund
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | 10 years | Lifetime (since February 8, 1984) | Expense ratio | |||||||||||||||||||
Class 1 | 16.15 | % | 7.29 | % | 10.57 | % | 14.09 | % | 11.36 | % | .28 | % | ||||||||||||
Class 1A | 16.00 | 7.02 | 10.31 | 13.81 | 11.09 | .53 | ||||||||||||||||||
Class 2 | 16.02 | 7.05 | 10.29 | 13.80 | 11.09 | .53 | ||||||||||||||||||
Class 3 | 16.05 | 7.09 | 10.37 | 13.88 | 11.16 | .46 | ||||||||||||||||||
Class 4 | 15.89 | 6.75 | 10.02 | 13.53 | 10.81 | .78 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 19 |
International Growth and Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
International Growth and Income Fund gained 14.82% for the six months ended June 30, 2019, compared to the 13.60% increase in its benchmark index, the MSCI ACWI (All Country World Index) ex USA,1a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes excluding the U.S.).
Global stocks, as measured by the MSCI ACWI, rallied for much of the first half of 2019 supported by better-than-expected U.S. economic data and accommodative monetary policies in the U.S., Europe and China. Signs of progress in U.S.-China trade negotiations also boosted investor sentiment except for part of May when U.S.-China trade talks broke down. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries. In Europe, markets advanced along with global equities despite ongoing signs of weakening economic data in the 19-member eurozone.
The best contributors to the fund’s relative returns were the industrials and materials sectors due in part to good stock selection. Materials stock Rio Tinto was among the top contributors to the fund’s relative returns as it benefited from high iron-ore prices. Industrials stock Shanghai International Airport contributed most.
On the downside, investments in the consumer staples sector detracted from the fund’s relative returns. Among health-care stocks, Teva Pharmaceutical was one of the fund’s biggest drags on returns as a result of U.S. litigation relating to opioid drug sales, as well as price collusion allegations.
The fund’s portfolio managers follow signs of some economic weakness in Europe and parts of emerging markets, as well as a number of geopolitical uncertainties, with an aim to preserve value in any potential market correction while being in a position to take advantage of buying opportunities, should they present themselves later in the year.
Country diversification | Percent of net assets | |||
Europe | ||||
United Kingdom | 15.4 | % | ||
France | 9.8 | |||
Switzerland | 6.3 | |||
Germany | 4.1 | |||
Netherlands | 2.8 | |||
Spain | 2.6 | |||
Russian Federation | 2.2 | |||
Denmark | 1.9 | |||
Sweden | 1.7 | |||
Norway | 1.2 | |||
Other | .7 | |||
48.7 | ||||
Asia/Pacific Basin | ||||
Japan | 13.9 | |||
China | 8.6 | |||
Hong Kong | 7.0 | |||
India | 3.9 | |||
Taiwan | 1.5 | |||
South Korea | 1.5 | |||
Other | 2.5 | |||
38.9 | ||||
The Americas | ||||
Brazil | 3.0 | |||
Canada | 1.4 | |||
Other | .9 | |||
5.3 | ||||
Other regions | ||||
Turkey | 1.6 | |||
Other | .4 | |||
2.0 | �� | |||
Short-term securities & other assets less liabilities | 5.1 | |||
Total | 100.0 | % |
Largest equity securities2 | Percent of net assets | |||
Royal Dutch Shell | 5.21 | % | ||
Rio Tinto | 3.43 | |||
Novartis | 3.20 | |||
HDFC Bank | 3.03 | |||
Sun Hung Kai Properties | 2.66 | |||
Takeda Pharmaceutical | 2.58 | |||
Airbus Group | 2.51 | |||
Zurich | 2.24 | |||
Shanghai International Airport | 2.20 | |||
CK Asset Holdings | 2.15 |
20 | American Funds Insurance Series |
International Growth and Income Fund
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | 10 years | Lifetime (since November 18, 2008) | Expense ratio | |||||||||||||||||||
Class 1 | 14.82 | % | 4.14 | % | 2.54 | % | 7.30 | % | 9.07 | % | .66 | % | ||||||||||||
Class 1A | 14.74 | 3.92 | 2.32 | 7.05 | 8.81 | .91 | ||||||||||||||||||
Class 2 | 14.75 | 3.92 | 2.29 | 7.04 | 8.80 | .91 | ||||||||||||||||||
Class 4 | 14.60 | 3.67 | 2.04 | 6.81 | 8.56 | 1.16 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from November 18, 2008, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 21 |
Capital Income Builder®
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Capital Income Builder, a mix of stocks and bonds, gained 10.06% for the six months ended June 30, 2019. During the same period, the MSCI ACWI (All Country World Index),1a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes), gained 16.23%. The Bloomberg Barclays U.S. Aggregate Index,2which represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market, rose 6.11%. The index blend of 70%/30% MSCI ACWI/Bloomberg Barclays U.S. Aggregate Index3increased by 13.27%. The Lipper Global Equity Income Funds Average,4a measure of similar funds, rose by 12.46%.
Uncertainty in world markets continues, especially in terms of ongoing trade tensions and slowing economic activity, particularly in Europe. Central banks are looking to maintain low interest rates, creating an environment where growth stocks continue to do well, while pure dividend-yield companies have suffered. Trade tensions and slowing economic activity in China have translated into mixed results across emerging markets.
Equity portfolio relative returns were boosted by stock selection in the utilities sector. American Tower, a real estate investment trust that owns, operates and develops cell sites, was a top contributor to results. QUALCOMM was also additive to returns, with the chipmaker’s shares rising on news of its settlement with Apple.
On the downside, relative returns were dampened by investments in the information technology sector as well as the fund’s cash holdings. Top stock detractors included Vodafone, which failed to meet its dividend obligations. The period was positive for non-dividend paying companies that the fund does not invest in, holding back relative returns. The fixed income portfolio weighed on relative returns due to duration and yield curve positioning.
As the U.S. shows signs of mixed economic activity, the fund’s portfolio managers continue to focus on companies that deliver dividend growth prospects. They remain optimistic that a bottom-up approach to investing will help identify attractive long-term investment opportunities, regardless of interest rate environment.
Country diversification | Percent of net assets | |||
The Americas | ||||
United States | 53.3 | % | ||
Canada | 2.6 | |||
55.9 | ||||
Europe | ||||
United Kingdom | 11.5 | |||
France | 3.2 | |||
Switzerland | 2.8 | |||
Italy | 1.7 | |||
Sweden | 1.5 | |||
Netherlands | 1.2 | |||
Denmark | 1.1 | |||
Other | 1.6 | |||
24.6 | ||||
Asia/Pacific Basin | ||||
Hong Kong | 3.6 | |||
Taiwan | 2.2 | |||
Japan | 1.7 | |||
Singapore | 1.1 | |||
China | 1.1 | |||
Other | 1.0 | |||
10.7 | ||||
Short-term securities & other assets less liabilities | 8.8 | |||
Total | 100.0 | % |
22 | American Funds Insurance Series |
Capital Income Builder
Total returns based on a $1,000 investment
For periods ended June 30, 20195
6 months | 1 year | 5 years | Lifetime (since May 1, 2014) | Expense ratio | ||||||||||||||||
Class 1 | 10.06 | % | 4.82 | % | 3.16 | % | 3.55 | % | .54 | % | ||||||||||
Class 1A | 9.95 | 4.57 | 2.91 | 3.30 | .79 | |||||||||||||||
Class 2 | 10.05 | 4.67 | 3.02 | 3.42 | .79 | |||||||||||||||
Class 4 | 9.82 | 4.32 | 2.66 | 3.04 | 1.04 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index result reflects dividends net of withholding taxes and reinvestment of distributions. |
2 | Source: Bloomberg Index Services Ltd. |
3 | Data sources: MSCI and Bloomberg Index Services Ltd. The 70%/30% MSCI ACWI/Bloomberg Barclays U.S. Aggregate Index blends the MSCI ACWI (All Country World Index) with the Bloomberg Barclays U.S. Aggregate Index by weighting their total returns at 70% and 30%, respectively. Its result assumes the blend is rebalanced monthly. |
4 | Source: Thomson Reuters Lipper. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. Lipper categories are dynamic and averages may have few funds, especially over longer periods. To see the number of funds included in the Lipper category for each fund’s lifetime, please see the Quarterly Statistical Update, available on our website. |
5 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 23 |
Asset Allocation Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Asset Allocation Fund, which is a mix of stocks and bonds, gained 12.11% for the six months ended June 30, 2019. Standard & Poor’s 500 Composite Index,1a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, rose 18.54% over the same period, while the Bloomberg Barclays U.S. Aggregate Index,2which represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market, increased 6.11%. A blend of the two indexes, the 60%/40% S&P 500/Bloomberg Barclays U.S. Aggregate Index,3advanced 13.64%.
Despite U.S.-China trade policy brinkmanship and heightening geopolitical tensions, the first half of 2019 saw a U.S. equities market energized by the Federal Reserve’s shift away from interest rate hikes as seen over the past few years.
Equity investments in the financials sector contributed most to the fund’s relative returns. VeriSign, which has seen steady domain name growth fuel earnings, was a top contributor to results. Aerospace companies Northrop Grumman and Lockheed Martin were also among top contributors to relative returns with double-digit gains benefiting from heightening geopolitical tensions. The fund’s fixed income holdings contributed to relative returns, due in part to yield curve positioning.
On the downside, the fund’s cash holdings weighed down relative results amid a rising equities market. Investments in health care also dampened relative returns, as political calls for drug pricing reform affected the sector broadly. AbbVie detracted, as the pharmaceutical company’s stock sank on news it planned to purchase rival Allergan at a significant premium.
The fund’s portfolio managers continue to evaluate the economic and market-sector implications of U.S. trade policy decisions, especially in regard to China. The portfolio managers maintain a high conviction in the fund’s current positioning as economic headwinds strengthen.
Largest equity securities4 | Percent of net assets | |||
Microsoft | 3.49 | % | ||
Broadcom | 2.37 | |||
Johnson & Johnson | 2.01 | |||
UnitedHealth Group | 1.93 | |||
Boeing | 1.73 | |||
Northrop Grumman | 1.71 | |||
Philip Morris International | 1.67 | |||
Nestlé | 1.59 | |||
ASML | 1.58 | |||
VeriSign | 1.40 |
24 | American Funds Insurance Series |
Asset Allocation Fund
Total returns based on a $1,000 investment
For periods ended June 30, 20195
6 months | 1 year | 5 years | 10 years | Lifetime (since August 1,1989) | Expense ratio | |||||||||||||||||||
Class 1 | 12.11 | % | 6.02 | % | 7.16 | % | 11.08 | % | 8.49 | % | .29 | % | ||||||||||||
Class 1A | 11.95 | 5.77 | 6.91 | 10.81 | 8.22 | .54 | ||||||||||||||||||
Class 2 | 12.00 | 5.80 | 6.90 | 10.81 | 8.22 | .54 | ||||||||||||||||||
Class 3 | 12.01 | 5.85 | 6.98 | 10.88 | 8.30 | .47 | ||||||||||||||||||
Class 4 | 11.86 | 5.55 | 6.64 | 10.58 | 7.97 | .79 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. |
2 | Source: Bloomberg Index Services Ltd. |
3 | Data sources: S&P Dow Jones Indices LLC and Bloomberg Index Services Ltd. The 60%/40% S&P 500/Bloomberg Barclays U.S. Aggregate Index blends the S&P 500 with the Bloomberg Barclays U.S. Aggregate Index by weighting their cumulative total returns at 60% and 40%, respectively. Its result assumes the blend is rebalanced monthly. |
4 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
5 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 25 |
Global Balanced Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Balanced Fund gained 13.01% for the six months ended June 30, 2019. The MSCI ACWI (All Country World Index),1a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes), increased by 16.23%, while the Bloomberg Barclays Global Aggregate Index,2a measure of global investment-grade bonds (rated BBB/Baa and above), increased 5.57%. The 60%/40% MSCI ACWI/Bloomberg Barclays Global Aggregate Index,3a blend of the two indexes, gained 12.02%.
Global stocks, as measured by the MSCI ACWI, rallied for much of the first half of 2019 supported by better-than-expected U.S. economic data and accommodative monetary policies in the U.S., Europe and China. Signs of progress in U.S.-China trade negotiations also boosted investor sentiment except for part of May when U.S.-China trade talks broke down. In emerging markets, stocks rebounded from sharp declines in 2018 then fluctuated due to bouts of volatility tied to U.S.-China talks, concerns over China’s slowing economy and election uncertainty in several countries. In Europe, markets advanced along with global equities despite ongoing signs of weakening economic data in the 19-member eurozone.
Investments in the consumer discretionary sector boosted the fund’s relative returns, with Ocado Group among the top contributors as it reported strong revenues on the strength of its grocery delivery technology’s global expansion. On the downside, select investments in the health-care sector hindered returns. Managed health-care company Humana detracted the most from the fund’s relative returns as the company’s share price suffered from increased political pressure on the sector. In fixed income, the portfolio’s positioning in regard to prevailing interest rates was helpful.
The fund’s portfolio managers exercise caution and continue to monitor cross-border trade discussions that could lead to further tensions on the one hand and central bank activity on the other, which could result in lower rates. Rate reductions could help mitigate some of the negative economic impacts of a reduction in global trade. Portfolio managers continue to stay the course of focusing on global research and stock-by-stock, bottom-up analysis.
Largest sectors in common stock holdings4 | Percent of net assets | |||
Information technology | 11.4 | % | ||
Health care | 10.2 | |||
Financials | 8.5 | |||
Consumer staples | 7.6 | |||
Industrials | 6.6 | |||
Largest fixed income holdings (by issuer)4 | Percent of net assets | |||
U.S. Treasury | 12.9 | % | ||
Japanese Government | 4.6 | |||
Fannie Mae | 1.5 | |||
Mexican Government | .8 | |||
Greek Government | .8 |
26 | American Funds Insurance Series |
Global Balanced Fund
Currency diversification | Percent of net assets |
Equity securities | Bonds & notes | Forward currency contracts | Short–term securities & other assets less liabilities | Total | ||||||||||||||||
U.S. dollars | 30.8 | % | 20.9 | % | (1.5 | )% | 5.3 | % | 55.5 | % | ||||||||||
Euros | 6.4 | 3.9 | 1.1 | — | 11.4 | |||||||||||||||
British pounds | 6.5 | .3 | .4 | .2 | 7.4 | |||||||||||||||
Japanese yen | 2.1 | 4.6 | (.1 | ) | — | 6.6 | ||||||||||||||
Swiss francs | 3.1 | — | — | — | 3.1 | |||||||||||||||
Hong Kong dollars | 2.2 | — | — | — | 2.2 | |||||||||||||||
Danish krone | 1.8 | .3 | — | — | 2.1 | |||||||||||||||
New Taiwan dollars | 1.5 | — | — | — | 1.5 | |||||||||||||||
South Korean won | .9 | .6 | — | — | 1.5 | |||||||||||||||
Brazilian real | 1.1 | .2 | (.2 | ) | — | 1.1 | ||||||||||||||
Other currencies | 2.8 | 4.5 | .3 | — | 7.6 | |||||||||||||||
100.0 | % |
Largest equity securities4 | Percent of net assets | |||
Merck | 2.35 | % | ||
AstraZeneca | 2.01 | |||
Broadcom | 1.86 | |||
Berkshire Hathaway | 1.61 | |||
Nestlé | 1.60 | |||
PagSeguro | 1.51 | |||
TSMC | 1.49 | |||
British American Tobacco | 1.31 | |||
ASML | 1.30 | |||
Sberbank of Russia | 1.22 |
Total returns based on a $1,000 investment
For periods ended June 30, 20195
6 months | 1 year | 5 years | Lifetime (since May 2, 2011) | Expense ratio | ||||||||||||||||
Class 1 | 13.01 | % | 6.95 | % | 5.22 | % | 6.03 | % | .72 | % | ||||||||||
Class 1A | 12.95 | 6.72 | 5.01 | 5.80 | .97 | |||||||||||||||
Class 2 | 12.86 | 6.67 | 4.95 | 5.77 | .97 | |||||||||||||||
Class 4 | 12.80 | 6.44 | 4.81 | 5.65 | 1.22 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: MSCI. The MSCI index results reflect dividends net of withholding taxes and reinvestment of distributions. |
2 | Source: Bloomberg Index Services Ltd. |
3 | Data sources: MSCI and Bloomberg Index Services Ltd. The 60%/40% MSCI ACWI/ Bloomberg Barclays Global Aggregate Index blends the MSCI ACWI (All Country World Index) with the Bloomberg Barclays Global Aggregate Index by weighting their cumulative total returns at 60% and 40%, respectively. Its result assumes the blend is rebalanced monthly. |
4 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
5 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 27 |
Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Bond Fund gained 6.81% for the six months ended June 30, 2019. In comparison, the fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Index,1which represents the U.S. investment-grade (rated BBB/Baa and above) fixed-rate bond market, rose 6.11%.
Overall, the yield curve steepened and interest rates declined. The Federal Reserve pivoted early in the year from a hawkish stance to a more dovish one amid concerns of a global slowdown in economic growth and ongoing trade tensions and geopolitical risk. The volatility of the fourth quarter of 2018 gave way to tighter credit spreads, improved asset prices and falling interest rates. The 10-year Treasury yield dipped 79 basis points from its 2.79% peak in January to a low of 2.00% in late June.
Duration, yield curve positioning, sector selection and security selection were all additive to relative results within the period. Among sectors, the top contributors were allocations to corporates and U.S. Treasury Inflation Protected Securities (TIPS). Among securities, the top contributors (besides Treasuries) were positions in the Italian Intesa Sanpaolo banking group and in Ally Financial. On the downside, the top detractor within corporates included Teva Pharmaceutical. Security selection within mortgage-backed security pass-throughs also hurt relative results.
As the global economy shows signs of a slowdown, the fund’s portfolio managers seek to maintain a conservative positioning. They will continue in their effort to harvest gains as credit spreads tighten and prices rise so that they may take advantage of future volatility to add securities at more attractive valuations. Similarly, the team will look to gradually reduce their exposure to interest rates amid the impact of a more dovish Fed.
Largest holdings (by issuer)2 | Percent of net assets | |||
U.S. Treasury | 28.8 | % | ||
UMBS | 9.9 | |||
Fannie Mae | 5.7 | |||
Freddie Mac | 5.1 | |||
Ginnie Mae | 5.0 | |||
Mexican Government | 2.6 | |||
Teva Pharmaceutical | 1.8 | |||
Italian Government | 1.4 | |||
State of Illinois | 1.3 | |||
General Motors | 1.2 |
28 | American Funds Insurance Series |
Bond Fund
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | 10 years | Lifetime (since January 2, 1996) | Expense ratio | |||||||||||||||||||
Class 1 | 6.81 | % | 8.24 | % | 3.04 | % | 4.24 | % | 4.71 | % | .38 | % | ||||||||||||
Class 1A | 6.61 | 7.98 | 2.79 | 3.98 | 4.45 | .63 | ||||||||||||||||||
Class 2 | 6.66 | 7.97 | 2.77 | 3.97 | 4.45 | .63 | ||||||||||||||||||
Class 4 | 6.54 | 7.69 | 2.53 | 3.73 | 4.19 | .88 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 29 |
Global Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Global Bond Fund gained 6.59% for the six months ended June 30, 2019. In comparison, the fund’s benchmark, the Bloomberg Barclays Global Aggregate Index,1which represents global investment-grade bonds (rated BBB/Baa and above), increased by 5.57%.
Interest rates declined and the yield curve steepened on indications that the U.S. Federal Reserve may cut interest rates amid concerns over ongoing trade tensions and geopolitical risk. Similarly, European Central Bank President Mario Draghi said the central bank may consider stimulus measures. Benchmark yields fell in Germany and in the U.S., with the 10-year U.S. Treasury yield dipping 79 basis points from its January peak to 2.00% in late June.
The fund’s duration and yield curve positioning were additive to relative returns. Investments in the euro and Mexican peso also were helpful to relative results, as was an out-of-benchmark position in Greek government bonds. On the downside, the impact of currency hedging hampered relative returns, as did investments in the Canadian dollar.
The fund’s portfolio managers maintain a cautious approach to investing in global bond markets and believe that our global research can help identify attractive long-term investments around the world. Having the flexibility to diversify and adjust exposure by country, sector and currency continues to serve as a hallmark of the fund’s approach to global investing.
Currency weighting (after hedging) by country | Percent of net assets | |||||||
United States2 | 39.4 | % | ||||||
Japan | 15.9 | |||||||
Eurozone3 | 20.1 | |||||||
United Kingdom | 3.5 | |||||||
Mexico | 3.0 | |||||||
Chile | 2.3 | |||||||
Canada | 2.3 | |||||||
Norway | 2.2 | |||||||
Denmark | 2.1 | |||||||
South Africa | 1.3 | |||||||
Other | 7.9 | |||||||
Total | 100.0 | % | ||||||
Non-U.S. government bonds by country | ||||||||
Japan | 12.8 | % | ||||||
Eurozone3: | ||||||||
Italy | 4.8 | |||||||
Greece | 3.4 | |||||||
Spain | 1.3 | |||||||
Other | 1.3 | 10.8 | ||||||
China | 3.1 | |||||||
Mexico | 2.9 | |||||||
India | 1.8 | |||||||
Norway | 1.6 | |||||||
Romania | 1.5 | |||||||
South Africa | 1.4 | |||||||
Indonesia | 1.3 | |||||||
United Kingdom | 1.2 | |||||||
Other | 12.5 | |||||||
Total | 50.9 | % |
Largest holdings (by issuer)4 | Percent of net assets | |||
Japanese Government | 12.8 | % | ||
U.S. Treasury | 12.8 | |||
Fannie Mae | 5.0 | |||
Italian Government | 4.8 | |||
Greek Government | 3.4 | |||
China Development Bank | 3.1 | |||
Mexican Government | 2.9 | |||
Nykredit Realkredit AS | 2.1 | |||
Indian Government | 1.7 | |||
Norwegian Government | 1.6 |
30 | American Funds Insurance Series |
Global Bond Fund
Total returns based on a $1,000 investment
For periods ended June 30, 20195
6 months | 1 year | 5 years | 10 years | Lifetime (since October 4, 2006) | Expense ratio | |||||||||||||||||||
Class 1 | 6.59 | % | 7.02 | % | 1.44 | % | 3.41 | % | 4.12 | % | .57 | % | ||||||||||||
Class 1A | 6.47 | 6.74 | 1.24 | 3.18 | 3.88 | .82 | ||||||||||||||||||
Class 26 | 6.41 | 6.70 | 1.20 | 3.15 | 3.86 | .82 | ||||||||||||||||||
Class 4 | 6.35 | 6.46 | 0.94 | 2.94 | 3.64 | 1.07 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from October 4, 2006, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Includes U.S. dollar-denominated debt of other countries, totaling 11.1%. |
3 | Countries using the euro as a common currency; those represented in the fund’s portfolio are France, Germany, Greece, Italy, Latvia, Luxembourg, The Netherlands and Spain. |
4 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
5 | Periods greater than one year are annualized. |
6 | Global Bond Fund Class 2 shares were first sold on November 6, 2006. Results prior to that date are hypothetical based on Class 1 share results adjusted for estimated additional annual expenses of 0.25%. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 31 |
High-Income Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
High-Income Bond Fund gained 9.81% for the six months ended June 30, 2019. The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index,1which measures non-investment grade bonds (rated BBB/Baa and above) and limits the exposure of an issuer to 2%, rose 9.94%.
Interest rates declined and credit spreads generally tightened, marking a period of positive returns across most bond sectors. The 10-year Treasury yield dropped 79 basis points from its 2.79% peak in January to a low of 2.00% in late June. The Federal Reserve pivoted to a markedly dovish tone, reversing their tightening focus of recent years in response to economic indicators.
The fund’s relative returns benefited from security selection, particularly in the consumer cyclical and basic industry sectors. A higher-than-index position in PetSmart was additive to results. On the downside, the fund’s cash position and certain energy positions weighed on returns.
The fund’s portfolio managers continue to believe current fundamentals support a mildly constructive near-term outlook for the high-yield market, even as the recent rally has made valuations less compelling. We continue to monitor economic conditions and the Federal Reserve’s monetary policy, and expect that the higher yields and relatively short duration of high-yield bonds should help mitigate any impact from rising rates.
Largest holdings (by issuer)2 | Percent of net assets | |||
First Quantum Minerals | 2.3 | % | ||
PetSmart | 2.2 | |||
Bausch Health Companies | 2.2 | |||
Frontier Communications | 1.8 | |||
Tenet Healthcare Corp. | 1.7 | |||
Cleveland-Cliffs | 1.6 | |||
Gogo | 1.4 | |||
Teva Pharmaceutical | 1.4 | |||
CCO Holdings LLC and CCO Holdings Capital | 1.3 | |||
Sprint Nextel Corp. | 1.2 |
32 | American Funds Insurance Series |
High-Income Bond Fund
Total returns based on a $1,000 investment
For periods ended June 30, 20193
Lifetime | Expense | |||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since February 8, 1984) | ratio | |||||||||||||||||||
Class 1 | 9.81 | % | 6.94 | % | 4.09 | % | 8.00 | % | 8.71 | % | .50 | % | ||||||||||||
Class 1A | 9.67 | 6.70 | 3.85 | 7.74 | 8.44 | .75 | ||||||||||||||||||
Class 2 | 9.71 | 6.77 | 3.83 | 7.73 | 8.44 | .75 | ||||||||||||||||||
Class 3 | 9.73 | 6.80 | 3.89 | 7.81 | 8.52 | .68 | ||||||||||||||||||
Class 4 | 9.54 | 6.36 | 3.55 | 7.51 | 8.18 | 1.00 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | The information shown does not include cash and cash equivalents. This includes shares of money market or similar funds managed by the investment adviser or its affiliates that are not offered to the public. |
3 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 33 |
Mortgage Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Mortgage Fund gained 4.16% for the six months ended June 30, 2019, while the Bloomberg Barclays U.S. Mortgage-Backed Securities Index,1which covers the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae and Freddie Mac, rose 4.17%.
Interest rates declined and the yield curve steepened, resulting from renewed market expectations of Federal Reserve short-term interest rate cuts due to an anticipated slowdown in economic growth. The 10-year Treasury yield dipped 79 basis points from its 2.79% peak in January to a low of 2.00% in late June.
The major contributors to the fund’s relative returns this period were duration and yield curve positioning. Sector allocations were of mixed value with U.S. Treasury Inflation-Protected Securities and U.S. Treasuries contributing, but security selection within the mortgage market dampening returns.
The fund’s portfolio managers seek to identify high-quality mortgage-backed securities based on our bottom-up approach to investing. They continue to prefer a portfolio that is less-exposed to a pick up in volatility and risk premiums, and are looking for opportunities to allocate more fully into mortgages over the coming quarters.
34 | American Funds Insurance Series |
Mortgage Fund
Total returns based ona $1,000 investment
For periods ended June 30, 20192
Lifetime | Expense | |||||||||||||||||||||||
6 months | 1 year | 5 years | (since May 2, 2011) | ratio | ||||||||||||||||||||
Class 1 | 4.16 | % | 6.05 | % | 2.43 | % | 2.71 | % | .48 | % | ||||||||||||||
Class 1A | 4.02 | 5.79 | 2.18 | 2.46 | .73 | |||||||||||||||||||
Class 2 | 4.02 | 5.68 | 2.16 | 2.46 | .73 | |||||||||||||||||||
Class 4 | 3.92 | 5.44 | 1.92 | 2.27 | .98 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 35 |
Ultra-Short Bond Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Ultra-Short Bond Fund gained 1.10% for the six months ended June 30, 2019, compared with a 1.53% rise in the Bloomberg Barclays Short-Term Government/Corporate Index,1which consists of fixed-rate, publicly placed, dollar-denominated and non-convertible securities with remaining maturity from one up to (but not including) 12 months within either the government or corporate sector. With a particular focus on capital preservation and maintenance of liquidity, the fund continues to be managed in a conservative manner relative to this benchmark.
The Federal Reserve left interest rates unchanged at its June meeting and expressed a dovish tone amid concerns about economic activity and ongoing trade and geopolitical tensions. The 10-year Treasury yield fell by 79 basis points from its 2.79% peak in January to a low of 2.00% in late June.
The higher interest rate environment has been beneficial for the fund’s returns, compared to the first half of 2018. In light of the recent yield curve evolution, the fund managers have looked to position the portfolio to reflect lower yields of late, and to help offset the dampening effect on yields from potential forthcoming rate cuts. They will continue to monitor duration positioning against future interest rate and yield curve movement.
36 | American Funds Insurance Series |
Ultra-Short Bond Fund
Total returns based ona $1,000 investment
For periods ended June 30, 20192
Lifetime | Expense | |||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since February 8, 1984) | ratio | |||||||||||||||||||
Class 1 | 1.10 | % | 2.03 | % | 0.61 | % | 0.21 | % | 3.42 | % | .35 | % | ||||||||||||
Class 1A | 1.10 | 2.03 | 0.49 | 0.02 | 3.18 | .60 | ||||||||||||||||||
Class 2 | 0.90 | 1.73 | 0.36 | –0.04 | 3.16 | .60 | ||||||||||||||||||
Class 3 | 0.99 | 1.74 | 0.43 | 0.02 | 3.23 | .53 | ||||||||||||||||||
Class 4 | 0.78 | 1.45 | 0.13 | –0.22 | 2.92 | .85 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets | |||
Commercial paper | 65.5 | % | ||
Bonds & notes of governments & government agencies outside the U.S. | 14.2 | |||
Federal agency discount notes | 11.4 | |||
U.S. Treasury bills | 8.8 | |||
Other assets less liabilities | .1 | |||
Total | 100.0 | % |
American Funds Insurance Series | 37 |
U.S. Government/AAA-Rated Securities Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
U.S. Government/AAA-Rated Securities Fund gained 4.70% for the six months ended June 30, 2019, while the Bloomberg Barclays U.S. Government/Mortgage-Backed Securities Index,1which covers obligations issued by the U.S. Treasury and U.S. government agencies, gained 4.75%.
Bond markets were strong and yields fell significantly over the first half of the year. The benchmark 10-year Treasury yield dipped 79 basis points from its 2.79% peak in January to a low of 2.00% in late June. The Federal Reserve shifted to a more dovish stance in terms of interest rates, with rate cuts expected to follow.
Relative returns have been boosted by the fund’s positioning as the intermediate to long end of the yield curve has steepened. On the downside, sector and security allocations detracted, with a lower-than-index position in mortgage-backed securities dampening relative returns.
The fund strives to meet its objective of providing a high level of current income consistent with the preservation of capital. The fund’s portfolio managers expect the Federal Reserve will cut interest rates in the coming year, leading to further steepening of the yield curve and higher inflation expectations. As such, they maintain a high conviction in the fund’s current positioning.
38 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
Total returns based ona $1,000 investment
For periods ended June 30, 20192
Lifetime | Expense | |||||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since December 2, 1985) | ratio | |||||||||||||||||||
Class 1 | 4.70 | % | 6.80 | % | 2.41 | % | 3.09 | % | 5.77 | % | .36 | % | ||||||||||||
Class 1A | 4.51 | 6.57 | 2.18 | 2.84 | 5.51 | .61 | ||||||||||||||||||
Class 2 | 4.45 | 6.51 | 2.13 | 2.82 | 5.50 | .61 | ||||||||||||||||||
Class 3 | 4.57 | 6.59 | 2.21 | 2.90 | 5.58 | .54 | ||||||||||||||||||
Class 4 | 4.34 | 6.28 | 1.88 | 2.61 | 5.25 | .86 |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008, and from July 1, 2010, through December 31, 2010. Applicable fund results shown reflect the waiver, without which they would have been lower. Expense ratios are as of the fund’s prospectus dated May 1, 2019. See the Financial Highlights table in this report for details.
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: Bloomberg Index Services Ltd. |
2 | Periods greater than one year are annualized. |
Where the fund’s assets were invested as of June 30, 2019 | Percent of net assets |
American Funds Insurance Series | 39 |
Managed Risk Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
The fund gained 11.56% for the six-month period ended June 30, 2019, slightly trailing the S&P 500 Managed Risk Index — Moderate Aggressive1, which rose 11.62%. Standard & Poor’s 500 Composite Index2, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, gained 18.54%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Growth FundSMand American Funds Insurance Series — Bond FundSMwhile seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying Growth Fund’s investments and stock selection in the communication services sector was additive to relative returns, with Facebook a top contributor. On the downside, health-care holdings hampered relative results as the sector was besieged by political calls for reform, particularly in drug pricing. Regeneron Pharmaceuticals and UnitedHealth Group were among the fund’s top relative detractors.
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||||||||
Class P1 | 11.56 | % | 5.79 | % | 7.69 | % | 9.20 | % | .77 | % | .72 | % | ||||||||||||
Class P2 | 11.42 | 5.46 | 7.37 | 8.88 | 1.02 | .97 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: S&P Dow Jones Indices LLC. |
3 | Periods greater than one year are annualized. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
40 | American Funds Insurance Series |
Managed Risk International Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
The fund gained 11.27% for the six months ended June 30, 2019, lagging the S&P EPAC Ex. Korea LargeMidCap Managed Risk Index — Moderate Aggressive1, which rose 11.75%. The MSCI ACWI (All Country World Index) ex USA2, a free float-adjusted market capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets (consisting of more than 40 developed and emerging market country indexes excluding the U.S.), climbed 13.60%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — International FundSMand American Funds Insurance Series — Bond FundSMwhile seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying International Fund’s investments in the financials sector were additive to relative returns. Holdings in Airbus and AIA Group, a Hong Kong–based life insurance company, were top contributors. On the downside, cash holdings hampered relative results amid a growing equities market. Teva Pharmaceuticals was a top detractor to relative returns.
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||||||||
Class P1 | 11.27 | % | 0.52 | % | 1.94 | % | 3.30 | % | .96 | % | .87 | % | ||||||||||||
Class P2 | 11.17 | 0.27 | 1.52 | 2.90 | 1.21 | 1.12 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: MSCI. The MSCI index result reflects reinvestment of distributions and dividends net of withholding taxes. |
3 | Periods greater than one year are annualized. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series | 41 |
Managed Risk Blue Chip Income and Growth Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money.For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Managed Risk Blue Chip Income and Growth Fund rose 6.63% for the six months ended June 30, 2019, trailing the S&P 500 Managed Risk Index — Moderate1, which climbed 10.97%. Standard & Poor’s 500 Composite Index2, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, gained 18.54%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Blue Chip Income and Growth FundSMand American Funds Insurance Series — U.S. Government/AAA-Rated Securities FundSMwhile seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying Blue Chip Income and Growth Fund’s investments in the utilities and industrials sectors were additive to relative returns. Holdings in Qualcomm proved beneficial, with shares of the chipmaker soaring after announcing a settlement with Apple. On the downside, health-care holdings hampered relative returns amid political calls for drug pricing reform. AbbVie was a top detractor, declining on the heels of its announcement to purchase rival Allergan at a significant premium.
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||||||||
Class P1 | 6.63 | % | 1.00 | % | 4.44 | % | 6.51 | % | .82 | % | .77 | % | ||||||||||||
Class P2 | 6.52 | 0.72 | 4.06 | 6.13 | 1.07 | 1.02 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: S&P Dow Jones Indices LLC. |
3 | Periods greater than one year are annualized. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
42 | American Funds Insurance Series |
Managed Risk Growth-Income Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Managed Risk Growth-Income Fund climbed 11.36% for the six months ended June 30, 2019, outpacing the S&P 500 Managed Risk Index — Moderate1, which rose 10.97%. Standard & Poor’s 500 Composite Index2, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, gained 18.54%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Growth-Income FundSMand American Funds Insurance Series — Bond FundSMwhile seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying Growth-Income Fund’s investments in the industrials and communication services sectors were additive to relative returns. Holdings in Airbus and Facebook were top contributors. On the downside, the fund’s cash position and investments in the information technology sector dampened relative returns. Among health-care holdings, pharmaceutical giant AbbVie declined sharply on its announcement of plans to purchase rival Allergan at a significant premium.
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | Lifetime (since May 1, 2013) | Gross expense ratio | Net expense ratio | |||||||||||||||||||
Class P1 | 11.36 | % | 5.84 | % | 6.32 | % | 8.54 | % | .73 | % | .67 | % | ||||||||||||
Class P2 | 11.26 | 5.50 | 5.99 | 8.21 | .98 | .92 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: S&P Dow Jones Indices LLC. |
3 | Periods greater than one year are annualized. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
American Funds Insurance Series | 43 |
Managed Risk Asset Allocation Fund
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Unit prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com/afis. For information about your insurance contract and month-end results, go to the website of the company that issued your contract.
Managed Risk Asset Allocation Fund rose 9.78% for the six months ended June 30, 2019, trailing the S&P 500 Managed Risk Index — Moderate Conservative1, which gained 10.48%. Standard & Poor’s 500 Composite Index2, a market capitalization-weighted index based on the results of approximately 500 widely held common stocks, advanced 18.54%.
The fund pursues its objective by investing in shares of American Funds Insurance Series — Asset Allocation FundSMwhile seeking to manage portfolio volatility and provide downside protection, primarily through the use of exchange-traded futures. The benefit of the fund’s managed risk strategy should be most apparent during periods of high volatility and in down markets. In steady or rising markets, the fund’s results can be expected to lag those of the underlying fund.
The underlying Asset Allocation Fund’s investments in the financials and industrials sectors were additive to relative returns. Domain name giant VeriSign was a top contributor as it continues to see growth in registrations. Cash holdings and investments in the health-care sector dampened relative results. Holdings in AbbVie were a top detractor, with the company declining as it announced plans to purchase rival Allergan at a significant premium.
Total returns based on a $1,000 investment
For periods ended June 30, 20193
6 months | 1 year | 5 years | Lifetime (since September 28, 2012) | Gross expense ratio | Net expense ratio | |||||||||||||||||||
Class P1 | 9.78 | % | 4.85 | % | 5.22 | % | 7.43 | % | .69 | % | .64 | % | ||||||||||||
Class P2 | 9.74 | 4.64 | 4.97 | 7.18 | .94 | .89 |
Any market index shown is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
1 | Source: S&P Dow Jones Indices LLC. Standard & Poor’s Managed Risk Index Series is designed to simulate a dynamic protective portfolio that allocates between the underlying equity index and cash, based on realized volatilities of the underlying equity and bond indexes, while maintaining a fixed allocation to the underlying bond index. |
2 | Source: S&P Dow Jones Indices LLC. |
3 | Periods greater than one year are annualized. |
Milliman Financial Risk Management LLC serves as the subadviser with respect to the management of the fund’s managed risk strategy.
44 | American Funds Insurance Series |
Global Growth Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 95.03% | Shares | Value (000) | ||||||
Information technology 26.07% | ||||||||
ASML Holding NV | 648,442 | $ | 135,480 | |||||
ASML Holding NV (New York registered) | 517,300 | 107,562 | ||||||
Microsoft Corp. | 1,715,100 | 229,755 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 27,188,000 | 209,209 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 335,000 | 13,122 | ||||||
Visa Inc., Class A | 1,142,800 | 198,333 | ||||||
Broadcom Inc. | 487,050 | 140,202 | ||||||
Temenos AG | 637,000 | 113,964 | ||||||
Paycom Software, Inc.1 | 357,000 | 80,939 | ||||||
PagSeguro Digital Ltd., Class A1 | 1,340,900 | 52,255 | ||||||
Adyen NV1 | 56,700 | 43,752 | ||||||
SimCorp AS | 425,000 | 41,113 | ||||||
Adobe Inc.1 | 135,000 | 39,778 | ||||||
Amphenol Corp., Class A | 373,500 | 35,834 | ||||||
Other securities | 207,649 | |||||||
1,648,947 | ||||||||
Consumer discretionary 20.03% | ||||||||
Amazon.com, Inc.1 | 225,100 | 426,256 | ||||||
Alibaba Group Holding Ltd. (ADR)1 | 931,050 | 157,766 | ||||||
Takeaway.com NV1 | 740,000 | 69,336 | ||||||
Naspers Ltd., Class N | 277,000 | 67,249 | ||||||
Home Depot, Inc. | 227,000 | 47,209 | ||||||
Ocado Group PLC1 | 3,115,000 | 46,165 | ||||||
Just Eat PLC1 | 5,292,000 | 42,004 | ||||||
Moncler SpA | 915,000 | 39,121 | ||||||
NIKE, Inc., Class B | 427,500 | 35,889 | ||||||
Other securities | 336,018 | |||||||
1,267,013 | ||||||||
Financials 10.75% | ||||||||
AIA Group Ltd. | 15,004,900 | 161,829 | ||||||
Kotak Mahindra Bank Ltd. | 3,671,000 | 78,555 | ||||||
JPMorgan Chase & Co. | 614,600 | 68,712 | ||||||
MarketAxess Holdings Inc. | 211,000 | 67,820 | ||||||
Tradeweb Markets Inc., Class A | 1,501,303 | 65,772 | ||||||
CME Group Inc., Class A | 165,200 | 32,067 | ||||||
Other securities | 204,754 | |||||||
679,509 | ||||||||
Health care 10.02% | ||||||||
UnitedHealth Group Inc. | 324,200 | 79,108 | ||||||
Merck & Co., Inc. | 886,000 | 74,291 | ||||||
Boston Scientific Corp.1 | 1,638,200 | 70,410 | ||||||
AstraZeneca PLC | 721,300 | 58,973 | ||||||
Mettler-Toledo International Inc.1 | 65,000 | 54,600 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 3,680,000 | 38,220 | ||||||
Other securities | 258,366 | |||||||
633,968 | ||||||||
Communication services 8.04% | ||||||||
Alphabet Inc., Class A1 | 115,600 | 125,171 | ||||||
Alphabet Inc., Class C1 | 71,052 | 76,801 | ||||||
Tencent Holdings Ltd. | 2,230,000 | 100,656 | ||||||
Facebook, Inc., Class A1 | 421,640 | 81,377 | ||||||
Nintendo Co., Ltd. | 165,100 | 60,472 | ||||||
Other securities | 63,716 | |||||||
508,193 |
American Funds Insurance Series | 45 |
Global Growth Fund
Common stocks(continued) | Shares | Value (000) | ||||||
Consumer staples 7.75% | ||||||||
British American Tobacco PLC | 2,970,800 | $ | 103,713 | |||||
Nestlé SA | 739,650 | 76,571 | ||||||
Altria Group, Inc. | 1,125,000 | 53,269 | ||||||
Philip Morris International Inc. | 660,500 | 51,869 | ||||||
Keurig Dr Pepper Inc. | 1,624,000 | 46,934 | ||||||
Other securities | 157,834 | |||||||
490,190 | ||||||||
Industrials 7.34% | ||||||||
Airbus SE, non-registered shares | 1,093,500 | 155,029 | ||||||
MTU Aero Engines AG | 167,000 | 39,783 | ||||||
Alliance Global Group, Inc. | 111,060,000 | 33,469 | ||||||
Other securities | 235,967 | |||||||
464,248 | ||||||||
Materials 2.88% | ||||||||
Sherwin-Williams Co. | 155,500 | 71,264 | ||||||
Other securities | 110,635 | |||||||
181,899 | ||||||||
Energy 2.15% | ||||||||
Reliance Industries Ltd.1 | 1,795,200 | 32,589 | ||||||
Other securities | 103,320 | |||||||
135,909 | ||||||||
Total common stocks (cost: $3,750,476,000) | 6,009,876 | |||||||
Preferred securities 1.65% | ||||||||
Health care 1.24% | ||||||||
Sartorius AG, nonvoting preferred, non-registered shares | 381,500 | 78,215 | ||||||
Information technology 0.41% | ||||||||
Other securities | 26,245 | |||||||
Total preferred securities (cost: $43,479,000) | 104,460 | |||||||
Short-term securities 2.81% | ||||||||
Money market investments 2.81% | ||||||||
Capital Group Central Cash Fund | 1,777,531 | 177,735 | ||||||
Total short-term securities (cost: $177,737,000) | 177,735 | |||||||
Total investment securities 99.49% (cost: $3,971,692,000) | 6,292,071 | |||||||
Other assets less liabilities 0.51% | 32,058 | |||||||
Net assets 100.00% | $ | 6,324,129 |
46 | American Funds Insurance Series |
Global Growth Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes a security which was valued under fair value procedures adopted by authority of the board of trustees. The total value of the security which was valued under fair value procedures was $11,082,000, which represented .18% of the net assets of the fund.
1 | Security did not produce income during the last 12 months. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
American Funds Insurance Series | 47 |
Global Small Capitalization Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 92.20% | Shares | Value (000) | ||||||
Health care 22.81% | ||||||||
GW Pharmaceuticals PLC (ADR)1 | 823,718 | $ | 142,001 | |||||
Insulet Corp.1 | 1,045,455 | 124,806 | ||||||
Haemonetics Corp.1 | 577,000 | 69,436 | ||||||
CONMED Corp. | 611,700 | 52,343 | ||||||
Integra LifeSciences Holdings Corp.1 | 906,825 | 50,646 | ||||||
Notre Dame Intermédica Participações S.A. | 4,090,900 | 42,955 | ||||||
iRhythm Technologies, Inc.1 | 510,500 | 40,370 | ||||||
Allakos Inc.1,2 | 886,580 | 38,416 | ||||||
China Biologic Products Holdings, Inc.1,2 | 399,900 | 38,110 | ||||||
PRA Health Sciences, Inc.1 | 348,900 | 34,593 | ||||||
Cortexyme, Inc.1,2 | 695,324 | 29,558 | ||||||
Osstem Implant Co., Ltd.1 | 412,245 | 26,742 | ||||||
Mani, Inc. | 405,700 | 26,002 | ||||||
Allogene Therapeutics, Inc.1 | 653,594 | 17,549 | ||||||
Allogene Therapeutics, Inc.1,2 | 280,589 | 7,534 | ||||||
Other securities | 270,262 | |||||||
1,011,323 | ||||||||
Information technology 17.67% | ||||||||
Paycom Software, Inc.1 | 217,261 | 49,257 | ||||||
Ceridian HCM Holding Inc.1 | 842,177 | 42,277 | ||||||
Alteryx, Inc., Class A1 | 355,600 | 38,803 | ||||||
Net One Systems Co., Ltd. | 1,313,765 | 36,130 | ||||||
Cree, Inc.1 | 639,900 | 35,950 | ||||||
HubSpot, Inc.1 | 178,600 | 30,455 | ||||||
Qorvo, Inc.1 | 449,200 | 29,921 | ||||||
SimCorp AS | 303,128 | 29,324 | ||||||
Bechtle AG, non-registered shares | 233,105 | 26,771 | ||||||
Other securities | 464,669 | |||||||
783,557 | ||||||||
Industrials 15.32% | ||||||||
International Container Terminal Services, Inc. | 22,581,620 | 64,525 | ||||||
frontdoor, inc.1 | 1,267,200 | 55,187 | ||||||
Nihon M&A Center Inc. | 1,829,192 | 43,840 | ||||||
Tomra Systems ASA | 859,334 | 28,247 | ||||||
Rheinmetall AG | 216,500 | 26,501 | ||||||
Bravida Holding AB | 2,900,084 | 25,702 | ||||||
Marel hf., non-registered shares (ISK denominated) | 5,419,903 | 23,878 | ||||||
Marel hf., non-registered shares (EUR denominated)1 | 333,333 | 1,463 | ||||||
Other securities | 409,924 | |||||||
679,267 | ||||||||
Consumer discretionary 12.38% | ||||||||
Five Below, Inc.1 | 317,400 | 38,094 | ||||||
Mattel, Inc.1,2 | 3,238,800 | 36,307 | ||||||
Melco International Development Ltd. | 15,579,000 | 34,542 | ||||||
Helen of Troy Ltd.1 | 223,000 | 29,122 | ||||||
ServiceMaster Global Holdings, Inc.1 | 556,750 | 29,001 | ||||||
Luckin Coffee Inc., Class A (ADR)1,2 | 1,472,220 | 28,694 | ||||||
Wyndham Hotels & Resorts, Inc. | 502,700 | 28,021 | ||||||
Takeaway.com NV1 | 271,800 | 25,467 | ||||||
Other securities | 299,645 | |||||||
548,893 |
48 | American Funds Insurance Series |
Global Small Capitalization Fund
Common stocks | Shares | Value (000) | ||||||
Financials 8.41% | ||||||||
Kotak Mahindra Bank Ltd. | 3,135,263 | $ | 67,091 | |||||
Essent Group Ltd.1 | 1,018,841 | 47,875 | ||||||
Trupanion, Inc.1,2 | 1,316,800 | 47,576 | ||||||
Cannae Holdings, Inc.1 | 1,625,000 | 47,093 | ||||||
Bharat Financial Inclusion Ltd.1 | 2,472,060 | 31,965 | ||||||
Other securities | 131,227 | |||||||
372,827 | ||||||||
Materials 4.29% | ||||||||
Allegheny Technologies Inc.1 | 1,139,700 | 28,720 | ||||||
Lundin Mining Corp.2 | 4,629,000 | 25,486 | ||||||
Other securities | 135,902 | |||||||
190,108 | ||||||||
Consumer staples 2.94% | ||||||||
Other securities | 130,390 | |||||||
Communication services 2.94% | ||||||||
Vonage Holdings Corp.1 | 3,115,100 | 35,294 | ||||||
Other securities | 94,965 | |||||||
130,259 | ||||||||
Real estate 2.77% | ||||||||
WHA Corp. PCL | 229,577,250 | 35,484 | ||||||
MGM Growth Properties LLC REIT, Class A | 825,000 | 25,286 | ||||||
Other securities | 61,976 | |||||||
122,746 | ||||||||
Energy 1.55% | ||||||||
Other securities | 68,659 | |||||||
Utilities 1.12% | ||||||||
ENN Energy Holdings Ltd. | 4,512,900 | 43,906 | ||||||
Other securities | 5,674 | |||||||
49,580 | ||||||||
Total common stocks (cost: $3,231,902,000) | 4,087,609 | |||||||
Preferred securities 0.41% | ||||||||
Industrials 0.41% | ||||||||
Other securities | 18,309 | |||||||
Total preferred securities (cost: $9,829,000) | 18,309 |
American Funds Insurance Series | 49 |
Global Small Capitalization Fund
Short-term securities 8.64% | Shares | Value (000) | ||||||
Money market investments 8.64% | ||||||||
Capital Group Central Cash Fund | 2,636,251 | $ | 263,599 | |||||
Fidelity Institutional Money Market Funds - Government Portfolio3 | 29,008,117 | 29,008 | ||||||
Goldman Sachs Financial Square Government Fund3 | 25,089,836 | 25,090 | ||||||
Invesco Short-Term Investments Trust - Government & Agency Portfolio3 | 31,572,699 | 31,573 | ||||||
Morgan Stanley Institutional Liquidity Funds - Government Portfolio3 | 33,709,180 | 33,709 | ||||||
382,979 | ||||||||
Total short-term securities (cost: $382,977,000) | 382,979 | |||||||
Total investment securities 101.25% (cost: $3,624,708,000) | 4,488,897 | |||||||
Other assets less liabilities (1.25)% | (55,476 | ) | ||||||
Net assets 100.00% | $ | 4,433,421 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $20,655,000, which represented .47% of the net assets of the fund. One security in “Other securities” (with a value of $14,352,000, an aggregate cost of $8,280,000, and which represented .32% of the net assets of the fund) was acquired on 5/1/2015 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale. “Other securities” also includes securities (with an aggregate value of $19,460,000, which represented .44% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. The value of the fund’s affiliated-company holding is included in “Other securities” under the respective industry sector in the summary investment portfolio. Further details on this holding and related transactions during the six months ended June 30, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized depreciation (000) | Dividend income (000) | Value of affiliates at 6/30/2019 (000) | |||||||||||||||||||||||||
Common stocks 0.48% | ||||||||||||||||||||||||||||||||
Health care 0.48% | ||||||||||||||||||||||||||||||||
NuCana PLC (ADR)1,2 | 2,067,724 | — | — | 2,067,724 | $ | — | $ | (8,519 | ) | $ | — | $ | 21,463 |
1 | Security did not produce income during the last 12 months. |
2 | All or a portion of this security was on loan. The total value of all such securities, including those in “Other securities,” was $158,280,000, which represented 3.57% of the net assets of the fund. Refer to Note 5 for more information on securities lending. |
3 | Security purchased with cash collateral from securities on loan. Refer to Note 5 for more information on securities lending. |
Key to abbreviations
ADR = American Depositary Receipts
EUR = Euros
ISK = Icelandic kronor
See notes to financial statements.
50 | American Funds Insurance Series |
Growth Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 95.75% | Shares | Value (000) | ||||||
Information technology 24.18% | ||||||||
Microsoft Corp. | 10,468,400 | $ | 1,402,347 | |||||
Broadcom Inc. | 2,549,800 | 733,985 | ||||||
ServiceNow, Inc.1 | 1,701,200 | 467,099 | ||||||
Visa Inc., Class A | 2,650,400 | 459,977 | ||||||
ASML Holding NV (New York registered) | 1,148,100 | 238,724 | ||||||
ASML Holding NV | 985,000 | 205,797 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 26,960,000 | 207,455 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 2,419,592 | 94,775 | ||||||
Intel Corp. | 5,033,000 | 240,930 | ||||||
Workday, Inc., Class A1 | 1,143,000 | 234,978 | ||||||
RingCentral, Inc., Class A1 | 1,550,400 | 178,172 | ||||||
Samsung Electronics Co., Ltd. | 3,901,400 | 158,806 | ||||||
Paycom Software, Inc.1 | 693,700 | 157,276 | ||||||
Fiserv, Inc.1 | 1,573,600 | 143,449 | ||||||
Mastercard Inc., Class A | 538,000 | 142,317 | ||||||
PayPal Holdings, Inc.1 | 1,207,700 | 138,233 | ||||||
Other securities | 1,197,884 | |||||||
6,402,204 | ||||||||
Communication services 17.89% | ||||||||
Facebook, Inc., Class A1 | 7,683,400 | 1,482,896 | ||||||
Netflix, Inc.1 | 2,493,060 | 915,751 | ||||||
Alphabet Inc., Class C1 | 589,100 | 636,764 | ||||||
Alphabet Inc., Class A1 | 164,000 | 177,579 | ||||||
Charter Communications, Inc., Class A1 | 1,006,280 | 397,662 | ||||||
T-Mobile US, Inc.1 | 4,941,000 | 366,326 | ||||||
Activision Blizzard, Inc. | 6,958,300 | 328,432 | ||||||
Comcast Corp., Class A | 5,886,400 | 248,877 | ||||||
Other securities | 183,641 | |||||||
4,737,928 | ||||||||
Health care 15.52% | ||||||||
UnitedHealth Group Inc. | 3,225,800 | 787,127 | ||||||
Intuitive Surgical, Inc.1 | 940,500 | 493,339 | ||||||
Regeneron Pharmaceuticals, Inc.1 | 1,341,000 | 419,733 | ||||||
Humana Inc. | 1,269,500 | 336,798 | ||||||
Vertex Pharmaceuticals Inc.1 | 1,400,900 | 256,897 | ||||||
Boston Scientific Corp.1 | 5,085,000 | 218,553 | ||||||
Centene Corp.1 | 3,735,200 | 195,874 | ||||||
Thermo Fisher Scientific Inc. | 534,500 | 156,972 | ||||||
Pfizer Inc. | 3,216,000 | 139,317 | ||||||
Other securities | 1,104,474 | |||||||
4,109,084 | ||||||||
Consumer discretionary 11.74% | ||||||||
Amazon.com, Inc.1 | 503,016 | 952,526 | ||||||
Home Depot, Inc. | 2,279,237 | 474,013 | ||||||
Tesla, Inc.1 | 1,908,500 | 426,473 | ||||||
Other securities | 1,256,046 | |||||||
3,109,058 | ||||||||
Financials 8.60% | ||||||||
Wells Fargo & Co. | 5,885,254 | 278,490 | ||||||
Goldman Sachs Group, Inc. | 1,052,400 | 215,321 | ||||||
BlackRock, Inc. | 335,500 | 157,450 | ||||||
JPMorgan Chase & Co. | 1,370,000 | 153,166 | ||||||
PNC Financial Services Group, Inc. | 1,086,600 | 149,169 | ||||||
Intercontinental Exchange, Inc. | 1,699,900 | 146,090 | ||||||
Legal & General Group PLC | 40,158,246 | 137,442 | ||||||
Other securities | 1,040,267 | |||||||
2,277,395 |
American Funds Insurance Series | 51 |
Growth Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Industrials 6.71% | ||||||||
TransDigm Group Inc.1 | 696,000 | $ | 336,725 | |||||
MTU Aero Engines AG | 1,001,262 | 238,523 | ||||||
CSX Corp. | 2,080,700 | 160,984 | ||||||
Airbus SE, non-registered shares | 940,662 | 133,361 | ||||||
Other securities | 907,334 | |||||||
1,776,927 | ||||||||
Energy 3.24% | ||||||||
Diamondback Energy, Inc. | 1,234,000 | 134,469 | ||||||
Other securities | 724,053 | |||||||
858,522 | ||||||||
Consumer staples 3.05% | ||||||||
Altria Group, Inc. | 4,832,816 | 228,834 | ||||||
Costco Wholesale Corp. | 616,500 | 162,916 | ||||||
Other securities | 414,363 | |||||||
806,113 | ||||||||
Materials 2.67% | ||||||||
Other securities | 707,180 | |||||||
Real estate 1.84% | ||||||||
Equinix, Inc. REIT | 464,000 | 233,991 | ||||||
Other securities | 253,184 | |||||||
487,175 | ||||||||
Utilities 0.31% | ||||||||
Other securities | 81,738 | |||||||
Total common stocks (cost: $15,442,877,000) | 25,353,324 | |||||||
Short-term securities 3.97% | ||||||||
Money market investments 3.97% | ||||||||
Capital Group Central Cash Fund | 10,508,871 | 1,050,782 | ||||||
Total short-term securities (cost: $1,050,779,000) | 1,050,782 | |||||||
Total investment securities 99.72% (cost: $16,493,656,000) | 26,404,106 | |||||||
Other assets less liabilities 0.28% | 74,925 | |||||||
Net assets 100.00% | $ | 26,479,031 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $48,838,000, which represented .18% of the net assets of the fund. One security in “Other securities” (with a value of $37,000,000, an aggregate cost of $37,000,000, and which represented .14% of the net assets of the fund) was acquired on 12/21/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject it to legal or contractual restrictions on resale.
1 | Security did not produce income during the last 12 months. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
52 | American Funds Insurance Series |
International Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 90.18% | Shares | Value (000) | ||||||
Financials 16.97% | ||||||||
AIA Group Ltd. | 40,985,700 | $ | 442,035 | |||||
HDFC Bank Ltd. | 7,924,100 | 280,533 | ||||||
HDFC Bank Ltd. (ADR) | 498,647 | 64,844 | ||||||
Kotak Mahindra Bank Ltd. | 8,121,048 | 173,780 | ||||||
Axis Bank Ltd.1 | 6,444,300 | 75,485 | ||||||
Axis Bank Ltd.1,2,3,4 | 3,222,055 | 35,477 | ||||||
Axis Bank Ltd.1,2 | 2,466,000 | 26,286 | ||||||
BNP Paribas SA | 1,629,058 | 77,366 | ||||||
Prudential PLC | 3,016,000 | 65,726 | ||||||
Other securities | 427,256 | |||||||
1,668,788 | ||||||||
Industrials 16.03% | ||||||||
Airbus SE, non-registered shares | 2,979,949 | 422,478 | ||||||
Rolls-Royce Holdings PLC1 | 11,044,688 | 117,876 | ||||||
Yamato Holdings Co., Ltd. | 4,426,195 | 89,949 | ||||||
Melrose Industries PLC | 37,984,233 | 87,239 | ||||||
Nidec Corp. | 606,400 | 82,820 | ||||||
Recruit Holdings Co., Ltd. | 2,369,300 | 78,980 | ||||||
Rheinmetall AG | 639,400 | 78,268 | ||||||
Adani Ports & Special Economic Zone Ltd. | 13,028,763 | 77,424 | ||||||
Safran SA | 523,100 | 76,642 | ||||||
Knorr-Bremse AG, non-registered shares | 631,356 | 70,356 | ||||||
Komatsu Ltd. | 2,880,500 | 69,464 | ||||||
Other securities | 324,564 | |||||||
1,576,060 | ||||||||
Health care 11.13% | ||||||||
Novartis AG | 3,145,133 | 287,386 | ||||||
Takeda Pharmaceutical Co., Ltd. | 3,785,165 | 134,218 | ||||||
Daiichi Sankyo Co., Ltd. | 2,160,000 | 112,893 | ||||||
Fresenius SE & Co. KGaA | 1,819,000 | 98,621 | ||||||
Alcon Inc.1 | 1,510,600 | 93,279 | ||||||
Chugai Pharmaceutical Co., Ltd. | 1,161,500 | 75,843 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR)1 | 7,216,598 | 66,609 | ||||||
Grifols, SA, Class A, non-registered shares | 881,000 | 26,046 | ||||||
Grifols, SA, Class B (ADR) | 793,690 | 16,747 | ||||||
Other securities | 182,857 | |||||||
1,094,499 | ||||||||
Consumer discretionary 11.09% | ||||||||
Alibaba Group Holding Ltd. (ADR)1 | 1,438,000 | 243,669 | ||||||
Sony Corp. | 1,761,800 | 92,294 | ||||||
Kering SA | 139,238 | 82,346 | ||||||
Galaxy Entertainment Group Ltd. | 11,306,000 | 76,201 | ||||||
Hyundai Motor Co. | 546,200 | 66,226 | ||||||
Meituan Dianping, Class B1 | 7,469,401 | 65,498 | ||||||
Other securities | 464,390 | |||||||
1,090,624 | ||||||||
Materials 6.68% | ||||||||
Vale SA, ordinary nominative (ADR) | 12,192,266 | 163,864 | ||||||
Vale SA, ordinary nominative | 102,481 | 1,383 | ||||||
Asahi Kasei Corp. | 11,980,780 | 127,625 | ||||||
Teck Resources Ltd., Class B | 3,723,800 | 85,933 | ||||||
Other securities | 278,440 | |||||||
657,245 |
American Funds Insurance Series | 53 |
International Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Information technology 6.61% | ||||||||
Samsung Electronics Co., Ltd. | 4,263,050 | $ | 173,527 | |||||
ASML Holding NV | 597,140 | 124,761 | ||||||
Worldpay, Inc., Class A1 | 512,797 | 62,843 | ||||||
Other securities | 288,542 | |||||||
649,673 | ||||||||
Consumer staples 5.98% | ||||||||
Pernod Ricard SA | 755,326 | 139,182 | ||||||
Nestlé SA | 1,003,500 | 103,886 | ||||||
Kirin Holdings Co., Ltd. | 3,510,800 | 75,661 | ||||||
Other securities | 269,210 | |||||||
587,939 | ||||||||
Energy 4.61% | ||||||||
Royal Dutch Shell PLC, Class B | 2,800,000 | 91,777 | ||||||
Royal Dutch Shell PLC, Class A (GBP denominated) | 1,440,256 | 47,052 | ||||||
Oil Search Ltd. | 13,449,600 | 66,757 | ||||||
Other securities | 247,836 | |||||||
453,422 | ||||||||
Communication services 4.41% | ||||||||
Tencent Holdings Ltd. | 4,596,187 | 207,460 | ||||||
SoftBank Group Corp. | 1,847,600 | 88,511 | ||||||
Altice Europe NV, Class A1 | 16,758,527 | 60,198 | ||||||
Other securities | 77,589 | |||||||
433,758 | ||||||||
Utilities 4.32% | ||||||||
ENN Energy Holdings Ltd. | 14,004,000 | 136,245 | ||||||
China Gas Holdings Ltd. | 24,134,000 | 89,749 | ||||||
Ørsted AS | 919,408 | 79,501 | ||||||
Other securities | 119,048 | |||||||
424,543 | ||||||||
Real estate 2.35% | ||||||||
China Overseas Land & Investment Ltd. | 22,782,000 | 83,992 | ||||||
Other securities | 147,734 | |||||||
231,726 | ||||||||
Total common stocks (cost: $7,006,514,000) | 8,868,277 | |||||||
Preferred securities 0.89% | ||||||||
Health care 0.64% | ||||||||
Grifols, SA, Class B, nonvoting preferred, non-registered shares | 3,026,230 | 62,973 | ||||||
Financials 0.25% | ||||||||
Other securities | 24,442 | |||||||
Total preferred securities (cost: $75,210,000) | 87,415 | |||||||
Rights & warrants 0.15% | ||||||||
Health care 0.15% | ||||||||
Other securities | 14,218 | |||||||
Total rights & warrants (cost: $13,238,000) | 14,218 |
54 | American Funds Insurance Series |
International Fund
Bonds, notes & other debt instruments 0.66% | Principal amount (000) | Value (000) | ||||||
Corporate bonds & notes 0.45% | ||||||||
Other 0.45% | ||||||||
Other securities | $ | 44,171 | ||||||
Total corporate bonds & notes | 44,171 | |||||||
Bonds & notes of governments & government agencies outside the U.S. 0.21% | ||||||||
Other securities | 21,068 | |||||||
Total bonds, notes & other debt instruments (cost: $55,303,000) | 65,239 | |||||||
Short-term securities 8.28% | Shares | |||||||
Money market investments 8.28% | ||||||||
Capital Group Central Cash Fund | 8,139,864 | 813,905 | ||||||
Total short-term securities (cost: $813,910,000) | 813,905 | |||||||
Total investment securities 100.16% (cost: $7,964,175,000) | 9,849,054 | |||||||
Other assets less liabilities (0.16)% | (15,385 | ) | ||||||
Net assets 100.00% | $ | 9,833,669 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Forward currency contracts
Contract amount | Unrealized appreciation (depreciation) | ||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 6/30/2019 (000) | |||||||
USD28,387 | GBP22,280 | Citibank | 7/12/2019 | $ | 72 | ||||||
USD16,507 | GBP12,948 | Morgan Stanley | 7/12/2019 | 52 | |||||||
GBP4,200 | USD5,344 | Citibank | 7/12/2019 | (6 | ) | ||||||
USD40,468 | INR2,825,000 | JPMorgan Chase | 7/22/2019 | (334 | ) | ||||||
$ | (216 | ) |
1 | Security did not produce income during the last 12 months. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $85,876,000, which represented .87% of the net assets of the fund. |
3 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on this holding appear below. |
4 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $76,305,000, which represented .78% of the net assets of the fund. |
Private placement security | Acquisition date | Cost (000) | Value (000) | Percent of net assets | ||||||||||
Axis Bank Ltd. | 11/14/2017 | $ | 17,232 | $ | 35,477 | .36 | % |
Key to abbreviations and symbol
ADR = American Depositary Receipts
GBP = British pounds
INR = Indian rupees
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 55 |
New World Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 89.00% | Shares | Value (000) | ||||||
Information technology 23.08% | ||||||||
PagSeguro Digital Ltd., Class A1 | 2,626,223 | $ | 102,344 | |||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 9,904,000 | 76,210 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 400,000 | 15,668 | ||||||
Microsoft Corp. | 484,000 | 64,837 | ||||||
StoneCo Ltd., Class A1 | 1,865,826 | 55,191 | ||||||
Broadcom Inc. | 171,350 | 49,325 | ||||||
Keyence Corp. | 70,000 | 42,936 | ||||||
PayPal Holdings, Inc.1 | 348,400 | 39,878 | ||||||
Visa Inc., Class A | 223,400 | 38,771 | ||||||
Network International Holdings PLC1 | 4,694,182 | 35,351 | ||||||
Kingdee International Software Group Co. Ltd. | 26,128,917 | 28,264 | ||||||
Adobe Inc.1 | 94,400 | 27,815 | ||||||
EPAM Systems, Inc.1 | 158,100 | 27,367 | ||||||
Autodesk, Inc.1 | 146,100 | 23,800 | ||||||
Halma PLC | 918,100 | 23,552 | ||||||
Mastercard Inc., Class A | 79,800 | 21,109 | ||||||
Other securities | 126,380 | |||||||
798,798 | ||||||||
Financials 13.42% | ||||||||
HDFC Bank Ltd. | 2,604,450 | 92,204 | ||||||
AIA Group Ltd. | 6,477,600 | 69,862 | ||||||
B3 SA - Brasil, Bolsa, Balcao | 6,600,200 | 64,387 | ||||||
Kotak Mahindra Bank Ltd. | 2,782,000 | 59,531 | ||||||
Sberbank of Russia PJSC (ADR) | 2,259,500 | 34,683 | ||||||
Other securities | 143,614 | |||||||
464,281 | ||||||||
Energy 10.11% | ||||||||
Reliance Industries Ltd.1 | 11,548,513 | 209,648 | ||||||
Royal Dutch Shell PLC, Class B | 1,284,000 | 42,086 | ||||||
Royal Dutch Shell PLC, Class A (GBP denominated) | 68,628 | 2,242 | ||||||
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR) | 1,267,000 | 19,727 | ||||||
Other securities | 76,102 | |||||||
349,805 | ||||||||
Consumer discretionary 9.40% | ||||||||
Alibaba Group Holding Ltd. (ADR)1 | 440,037 | 74,564 | ||||||
Meituan Dianping, Class B1 | 4,737,554 | 41,543 | ||||||
General Motors Co. | 542,000 | 20,883 | ||||||
Marriott International, Inc., Class A | 144,800 | 20,314 | ||||||
Melco Resorts & Entertainment Ltd. (ADR) | 931,500 | 20,232 | ||||||
Other securities | 147,677 | |||||||
325,213 | ||||||||
Health care 8.23% | ||||||||
Yunnan Baiyao Group Co., Ltd., Class A | 2,730,912 | 33,169 | ||||||
China Biologic Products Holdings, Inc.1 | 297,700 | 28,371 | ||||||
BioMarin Pharmaceutical Inc.1 | 318,000 | 27,237 | ||||||
Abbott Laboratories | 263,000 | 22,118 | ||||||
AstraZeneca PLC | 269,800 | 22,059 | ||||||
Carl Zeiss Meditec AG, non-registered shares | 216,552 | 21,361 | ||||||
Other securities | 130,486 | |||||||
284,801 |
56 | American Funds Insurance Series |
New World Fund
Common stocks | Shares | Value (000) | ||||||
Materials 8.16% | ||||||||
Vale SA, ordinary nominative | 2,881,660 | $ | 38,888 | |||||
Vale SA, ordinary nominative (ADR) | 1,976,000 | 26,557 | ||||||
Freeport-McMoRan Inc. | 3,945,000 | 45,801 | ||||||
First Quantum Minerals Ltd. | 3,305,000 | 31,396 | ||||||
Fortescue Metals Group Ltd. | 4,618,395 | 29,246 | ||||||
Other securities | 110,527 | |||||||
282,415 | ||||||||
Communication services 5.15% | ||||||||
Facebook, Inc., Class A1 | 265,700 | 51,280 | ||||||
Alphabet Inc., Class C1 | 23,700 | 25,618 | ||||||
Alphabet Inc., Class A1 | 10,000 | 10,828 | ||||||
Tencent Holdings Ltd. | 535,600 | 24,176 | ||||||
Other securities | 66,452 | |||||||
178,354 | ||||||||
Consumer staples 5.01% | ||||||||
Treasury Wine Estates Ltd. | 3,700,000 | 38,756 | ||||||
Kweichow Moutai Co., Ltd., Class A | 244,699 | 35,057 | ||||||
Nestlé SA | 333,296 | 34,504 | ||||||
Other securities | 64,965 | |||||||
173,282 | ||||||||
Industrials 4.82% | ||||||||
Airbus SE, non-registered shares | 324,029 | 45,939 | ||||||
Shanghai International Airport Co., Ltd., Class A | 2,200,532 | 26,842 | ||||||
Nidec Corp. | 159,800 | 21,825 | ||||||
Other securities | 72,282 | |||||||
166,888 | ||||||||
Real estate 0.96% | ||||||||
Other securities | 33,082 | |||||||
Utilities 0.66% | ||||||||
Other securities | 22,895 | |||||||
Total common stocks (cost: $2,403,058,000) | 3,079,814 | |||||||
Preferred securities 2.37% | ||||||||
Industrials 1.11% | ||||||||
Azul SA, preference shares (ADR)1 | 866,446 | 28,974 | ||||||
Azul SA, preference shares1 | 838,500 | 9,453 | ||||||
38,427 | ||||||||
Financials 0.56% | ||||||||
Itaú Unibanco Holding SA, preferred nominative (ADR) | 1,576,000 | 14,846 | ||||||
Itaú Unibanco Holding SA, preferred nominative | 457,000 | 4,315 | ||||||
19,161 | ||||||||
Other 0.70% | ||||||||
Other securities | 24,543 | |||||||
Total preferred securities (cost: $60,409,000) | 82,131 | |||||||
Rights & warrants 0.53% | ||||||||
Other 0.53% | ||||||||
Other securities | 18,404 | |||||||
Total rights & warrants (cost: $15,630,000) | 18,404 |
American Funds Insurance Series | 57 |
New World Fund
Bonds, notes & other debt instruments 2.76% | Principal amount (000) | Value (000) | ||||||
Bonds & notes of governments & government agencies outside the U.S. 2.43% | ||||||||
Other securities | $ | 84,008 | ||||||
Corporate bonds & notes 0.33% | ||||||||
Other 0.33% | ||||||||
Other securities | 11,641 | |||||||
Total corporate bonds & notes | 11,641 | |||||||
Total bonds, notes & other debt instruments (cost: $91,389,000) | 95,649 | |||||||
Short-term securities 5.02% | Shares | |||||||
Money market investments 4.36% | ||||||||
Capital Group Central Cash Fund | 1,508,156 | 150,800 | ||||||
Principal amount (000) | ||||||||
Other short-term securities 0.66% | ||||||||
Other securities | 22,827 | |||||||
Total short-term securities (cost: $175,029,000) | 173,627 | |||||||
Total investment securities 99.68% (cost: $2,745,515,000) | 3,449,625 | |||||||
Other assets less liabilities 0.32% | 11,027 | |||||||
Net assets 100.00% | $ | 3,460,652 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $24,325,000, which represented .70% of the net assets of the fund. “Other securities” also includes securities (with an aggregate value of $65,315,000, which represented 1.89% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
1 | Security did not produce income during the last 12 months. |
Key to abbreviations
ADR = American Depositary Receipts
GBP = British pounds
See notes to financial statements.
58 | American Funds Insurance Series |
Blue Chip Income and Growth Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 93.97% | Shares | Value (000) | ||||||
Health care 19.81% | ||||||||
Abbott Laboratories | 5,412,000 | $ | 455,149 | |||||
AbbVie Inc. | 6,028,530 | 438,395 | ||||||
Gilead Sciences, Inc. | 3,045,712 | 205,768 | ||||||
Amgen Inc. | 1,014,510 | 186,954 | ||||||
UnitedHealth Group Inc. | 493,000 | 120,297 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR)1 | 10,333,800 | 95,381 | ||||||
Humana Inc. | 259,000 | 68,713 | ||||||
Medtronic PLC | 700,000 | 68,173 | ||||||
Other securities | 111,395 | |||||||
1,750,225 | ||||||||
Information technology 14.73% | ||||||||
Microsoft Corp. | 2,469,200 | 330,774 | ||||||
QUALCOMM Inc. | 2,846,800 | 216,556 | ||||||
Intel Corp. | 3,474,000 | 166,300 | ||||||
Broadcom Inc. | 565,000 | 162,641 | ||||||
Texas Instruments Inc. | 780,000 | 89,513 | ||||||
Mastercard Inc., Class A | 337,000 | 89,147 | ||||||
Apple Inc. | 400,000 | 79,168 | ||||||
Accenture PLC, Class A | 400,000 | 73,908 | ||||||
Automatic Data Processing, Inc. | 318,500 | 52,658 | ||||||
Other securities | 40,890 | |||||||
1,301,555 | ||||||||
Consumer staples 12.05% | ||||||||
Philip Morris International Inc. | 3,260,900 | 256,078 | ||||||
British American Tobacco PLC (ADR) | 5,134,830 | 179,052 | ||||||
Costco Wholesale Corp. | 581,255 | 153,602 | ||||||
Constellation Brands, Inc., Class A | 740,100 | 145,755 | ||||||
Coca-Cola Co. | 2,175,000 | 110,751 | ||||||
Altria Group, Inc. | 2,045,800 | 96,869 | ||||||
PepsiCo, Inc. | 400,000 | 52,452 | ||||||
Other securities | 69,569 | |||||||
1,064,128 | ||||||||
Energy 10.91% | ||||||||
Exxon Mobil Corp. | 4,813,800 | 368,882 | ||||||
EOG Resources, Inc. | 2,755,800 | 256,730 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 1,215,000 | 79,874 | ||||||
Schlumberger Ltd. | 1,745,000 | 69,346 | ||||||
Concho Resources Inc. | 610,500 | 62,991 | ||||||
Other securities | 125,466 | |||||||
963,289 | ||||||||
Industrials 9.90% | ||||||||
General Dynamics Corp. | 1,459,900 | 265,439 | ||||||
CSX Corp. | 2,766,000 | 214,005 | ||||||
Illinois Tool Works Inc. | 650,000 | 98,027 | ||||||
Airbus Group SE (ADR) | 2,157,000 | 76,272 | ||||||
Union Pacific Corp. | 400,000 | 67,644 | ||||||
United Technologies Corp. | 500,000 | 65,100 | ||||||
Northrop Grumman Corp. | 174,300 | 56,318 | ||||||
Other securities | 31,553 | |||||||
874,358 | ||||||||
Consumer discretionary 8.58% | ||||||||
Lowe’s Companies, Inc. | 3,594,572 | 362,728 | ||||||
Marriott International, Inc., Class A | 852,500 | 119,597 | ||||||
McDonald’s Corp. | 500,000 | 103,830 | ||||||
Other securities | 171,760 | |||||||
757,915 |
American Funds Insurance Series | 59 |
Blue Chip Income and Growth Fund
Common stocks (continued) | Shares | Value (000) | ||||||
Communication services 6.67% | ||||||||
Facebook, Inc., Class A1 | 1,339,800 | $ | 258,581 | |||||
Alphabet Inc., Class A1 | 135,750 | 146,990 | ||||||
Alphabet Inc., Class C1 | 20,500 | 22,159 | ||||||
Verizon Communications Inc. | 2,450,500 | 139,997 | ||||||
Other securities | 21,745 | |||||||
589,472 | ||||||||
Financials 3.92% | ||||||||
JPMorgan Chase & Co. | 1,409,000 | 157,526 | ||||||
U.S. Bancorp | 1,000,000 | 52,400 | ||||||
Other securities | 136,086 | |||||||
346,012 | ||||||||
Materials 3.40% | ||||||||
Linde PLC | 985,700 | 197,929 | ||||||
Freeport-McMoRan Inc. | 7,703,700 | 89,440 | ||||||
Other securities | 13,348 | |||||||
300,717 | ||||||||
Utilities 2.08% | ||||||||
Public Service Enterprise Group Inc. | 1,000,000 | 58,820 | ||||||
American Electric Power Co., Inc. | 600,000 | 52,806 | ||||||
Other securities | 71,828 | |||||||
183,454 | ||||||||
Real estate 1.92% | ||||||||
Kimco Realty Corp. REIT | 3,677,000 | 67,951 | ||||||
Other securities | 101,444 | |||||||
169,395 | ||||||||
Total common stocks (cost: $6,814,813,000) | 8,300,520 | |||||||
Rights & warrants 0.09% | ||||||||
Financials 0.09% | ||||||||
Other securities | 7,926 | |||||||
Total rights & warrants (cost: $10,088,000) | 7,926 | |||||||
Convertible stocks 0.06% | ||||||||
Health care 0.06% | ||||||||
Other securities | 5,413 | |||||||
Total convertible stocks (cost: $4,978,000) | 5,413 | |||||||
Short-term securities 6.69% | ||||||||
Money market investments 6.69% | ||||||||
Capital Group Central Cash Fund | 5,905,582 | 590,499 | ||||||
Total short-term securities (cost: $590,512,000) | 590,499 | |||||||
Total investment securities 100.81% (cost: $7,420,391,000) | 8,904,358 | |||||||
Other assets less liabilities (0.81)% | (71,177 | ) | ||||||
Net assets 100.00% | $ | 8,833,181 |
60 | American Funds Insurance Series |
Blue Chip Income and Growth Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
1 | Security did not produce income during the last 12 months. |
Key to abbreviation
ADR = American Depositary Receipts
See notes to financial statements.
American Funds Insurance Series | 61 |
Global Growth and Income Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 92.66% | Shares | Value (000) | ||||||
Information technology 14.66% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 8,493,800 | $ | 65,359 | |||||
Microsoft Corp. | 391,000 | 52,378 | ||||||
PagSeguro Digital Ltd., Class A1 | 1,208,752 | 47,105 | ||||||
Broadcom Inc. | 121,200 | 34,889 | ||||||
Apple Inc. | 112,500 | 22,266 | ||||||
Halma PLC | 610,000 | 15,648 | ||||||
ASML Holding NV | 70,000 | 14,625 | ||||||
Other securities | 48,679 | |||||||
300,949 | ||||||||
Financials 12.85% | ||||||||
AIA Group Ltd. | 3,200,000 | 34,512 | ||||||
Sberbank of Russia PJSC (ADR) | 1,710,000 | 26,300 | ||||||
HDFC Bank Ltd. | 644,000 | 22,799 | ||||||
CME Group Inc., Class A | 100,000 | 19,411 | ||||||
The Blackstone Group Inc., Class A | 412,500 | 18,323 | ||||||
Toronto-Dominion Bank (CAD denominated) | 292,000 | 17,062 | ||||||
B3 SA - Brasil, Bolsa, Balcao | 1,500,000 | 14,633 | ||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H | 1,195,000 | 14,349 | ||||||
DBS Group Holdings Ltd. | 705,000 | 13,527 | ||||||
Other securities | 82,957 | |||||||
263,873 | ||||||||
Industrials 12.43% | ||||||||
Airbus SE, non-registered shares | 672,200 | 95,300 | ||||||
Lockheed Martin Corp. | 66,000 | 23,994 | ||||||
CCR SA, ordinary nominative | 6,017,900 | 21,408 | ||||||
Safran SA | 143,000 | 20,952 | ||||||
Rheinmetall AG | 151,500 | 18,545 | ||||||
Boeing Co. | 45,900 | 16,708 | ||||||
Other securities | 58,397 | |||||||
255,304 | ||||||||
Consumer discretionary 9.21% | ||||||||
Home Depot, Inc. | 135,700 | 28,221 | ||||||
LVMH Moët Hennessy-Louis Vuitton SE | 56,200 | 23,920 | ||||||
Carnival Corp., units | 319,000 | 14,849 | ||||||
Norwegian Cruise Line Holdings Ltd.1 | 275,000 | 14,748 | ||||||
Other securities | 107,274 | |||||||
189,012 | ||||||||
Communication services 8.39% | ||||||||
Nintendo Co., Ltd. | 224,000 | 82,046 | ||||||
Alphabet Inc., Class A1 | 21,800 | 23,605 | ||||||
Alphabet Inc., Class C1 | 7,000 | 7,566 | ||||||
Other securities | 59,085 | |||||||
172,302 | ||||||||
Health care 8.25% | ||||||||
UnitedHealth Group Inc. | 101,825 | 24,846 | ||||||
Merck & Co., Inc. | 267,350 | 22,417 | ||||||
Boston Scientific Corp.1 | 351,000 | 15,086 | ||||||
Abbott Laboratories | 171,000 | 14,381 | ||||||
Fleury SA, ordinary nominative | 2,500,000 | 13,900 | ||||||
AstraZeneca PLC | 167,000 | 13,654 | ||||||
Novartis AG | 148,000 | 13,524 | ||||||
Other securities | 51,525 | |||||||
169,333 |
62 | American Funds Insurance Series |
Global Growth and Income Fund
Common stocks | Shares | Value (000) | ||||||
Materials 7.67% | ||||||||
Vale SA, ordinary nominative | 2,395,000 | $ | 32,320 | |||||
Fortescue Metals Group Ltd. | 4,763,816 | 30,167 | ||||||
Freeport-McMoRan Inc. | 2,499,000 | 29,013 | ||||||
Koninklijke DSM NV | 109,000 | 13,473 | ||||||
Other securities | 52,569 | |||||||
157,542 | ||||||||
Energy 6.48% | ||||||||
Reliance Industries Ltd.1 | 2,830,148 | 51,377 | ||||||
Gazprom PJSC (ADR) | 3,431,000 | 25,135 | ||||||
Royal Dutch Shell PLC, Class B | 550,000 | 18,028 | ||||||
Other securities | 38,461 | |||||||
133,001 | ||||||||
Real estate 4.42% | ||||||||
MGM Growth Properties LLC REIT, Class A | 676,200 | 20,726 | ||||||
Gaming and Leisure Properties, Inc. REIT | 425,000 | 16,566 | ||||||
Alexandria Real Estate Equities, Inc. REIT | 103,000 | 14,532 | ||||||
Other securities | 38,970 | |||||||
90,794 | ||||||||
Consumer staples 4.36% | ||||||||
Nestlé SA | 434,700 | 45,002 | ||||||
Other securities | 44,438 | |||||||
89,440 | ||||||||
Utilities 3.94% | ||||||||
Ørsted AS | 491,552 | 42,504 | ||||||
Enel SpA | 2,780,000 | 19,409 | ||||||
Other securities | 18,984 | |||||||
80,897 | ||||||||
Total common stocks (cost: $1,409,787,000) | 1,902,447 | |||||||
Preferred securities 0.39% | ||||||||
Financials 0.39% | ||||||||
Other securities | 8,125 | |||||||
Total preferred securities (cost: $6,929,000) | 8,125 | |||||||
Bonds, notes & other debt instruments 1.71% | Principal amount (000) | |||||||
Corporate bonds & notes 1.71% | ||||||||
Communication services 1.71% | ||||||||
Sprint Corp. 7.25% 2021 | $ | 33,000 | 35,145 | |||||
Total bonds, notes & other debt instruments (cost: $31,773,000) | 35,145 | |||||||
Short-term securities 4.32% | Shares | |||||||
Money market investments 4.32% | ||||||||
Capital Group Central Cash Fund | 886,487 | 88,640 | ||||||
Total short-term securities (cost: $88,643,000) | 88,640 | |||||||
Total investment securities 99.08% (cost: $1,537,132,000) | 2,034,357 | |||||||
Other assets less liabilities 0.92% | 18,830 | |||||||
Net assets 100.00% | $ | 2,053,187 |
American Funds Insurance Series | 63 |
Global Growth and Income Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Forward currency contracts
Contract amount | Unrealized depreciation | |||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 6/30/2019 (000) | ||||||
USD7,285 | AUD10,500 | JPMorgan Chase | 7/26/2019 | $ | (94 | ) |
1 | Security did not produce income during the last 12 months. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
AUD = Australian dollars
CAD = Canadian dollars
USD/$ = U.S. dollars
See notes to financial statements.
64 | American Funds Insurance Series |
Growth-Income Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 93.00% | Shares | Value (000) | ||||||
Information technology 15.21% | ||||||||
Microsoft Corp. | 9,380,500 | $ | 1,256,612 | |||||
Broadcom Inc. | 2,108,034 | 606,819 | ||||||
Intel Corp. | 10,360,800 | 495,971 | ||||||
Texas Instruments Inc. | 3,082,688 | 353,769 | ||||||
Accenture PLC, Class A | 1,510,900 | 279,169 | ||||||
Mastercard Inc., Class A | 791,000 | 209,243 | ||||||
Visa Inc., Class A | 1,160,200 | 201,353 | ||||||
QUALCOMM Inc. | 2,386,566 | 181,546 | ||||||
Other securities | 1,581,296 | |||||||
5,165,778 | ||||||||
Health care 15.14% | ||||||||
UnitedHealth Group Inc. | 2,444,268 | 596,426 | ||||||
Abbott Laboratories | 6,329,069 | 532,275 | ||||||
Gilead Sciences, Inc. | 6,325,600 | 427,358 | ||||||
Amgen Inc. | 2,281,997 | 420,526 | ||||||
Merck & Co., Inc. | 4,164,380 | 349,183 | ||||||
Eli Lilly and Co. | 2,077,600 | 230,177 | ||||||
Cigna Corp. | 1,327,418 | 209,135 | ||||||
Other securities | 2,376,470 | |||||||
5,141,550 | ||||||||
Financials 11.17% | ||||||||
JPMorgan Chase & Co. | 5,027,030 | 562,022 | ||||||
CME Group Inc., Class A | 2,002,500 | 388,705 | ||||||
Bank of New York Mellon Corp. | 6,957,700 | 307,182 | ||||||
Intercontinental Exchange, Inc. | 3,183,555 | 273,595 | ||||||
Aon PLC, Class A | 1,214,800 | 234,432 | ||||||
Other securities | 2,028,647 | |||||||
3,794,583 | ||||||||
Industrials 11.05% | ||||||||
General Dynamics Corp. | 2,639,200 | 479,859 | ||||||
Airbus SE, non-registered shares | 2,824,564 | 400,449 | ||||||
BWX Technologies, Inc.1 | 5,373,948 | 279,983 | ||||||
TransDigm Group Inc.2 | 485,800 | 235,030 | ||||||
Northrop Grumman Corp. | 694,900 | 224,529 | ||||||
Equifax Inc. | 1,406,200 | 190,174 | ||||||
Other securities | 1,944,195 | |||||||
3,754,219 | ||||||||
Communication services 10.97% | ||||||||
Facebook, Inc., Class A2 | 6,449,227 | 1,244,701 | ||||||
Alphabet Inc., Class C2 | 316,784 | 342,415 | ||||||
Alphabet Inc., Class A2 | 279,980 | 303,162 | ||||||
Netflix, Inc.2 | 1,449,649 | 532,485 | ||||||
Verizon Communications Inc. | 4,009,400 | 229,057 | ||||||
Comcast Corp., Class A | 4,893,400 | 206,893 | ||||||
Charter Communications, Inc., Class A2 | 458,369 | 181,138 | ||||||
Other securities | 687,081 | |||||||
3,726,932 | ||||||||
Consumer staples 7.91% | ||||||||
Coca-Cola Co. | 7,223,100 | 367,800 | ||||||
British American Tobacco PLC | 6,930,260 | 241,942 | ||||||
British American Tobacco PLC (ADR) | 479,440 | 16,718 | ||||||
Costco Wholesale Corp. | 832,200 | 219,917 | ||||||
Pernod Ricard SA | 1,169,574 | 215,514 |
American Funds Insurance Series | 65 |
Growth-Income Fund
Common stocks(continued) | Shares | Value (000) | ||||||
Consumer staples (continued) | ||||||||
Mondelez International, Inc. | 3,567,400 | $ | 192,283 | |||||
Carlsberg A/S, Class B | 1,390,224 | 184,300 | ||||||
Other securities | 1,247,808 | |||||||
2,686,282 | ||||||||
Energy 7.05% | ||||||||
Exxon Mobil Corp. | 5,845,200 | 447,918 | ||||||
Chevron Corp. | 2,164,300 | 269,325 | ||||||
Enbridge Inc. (CAD denominated) | 5,893,659 | 212,874 | ||||||
Enbridge Inc. (CAD denominated)3 | 1,340,553 | 48,420 | ||||||
EOG Resources, Inc. | 2,715,800 | 253,004 | ||||||
Schlumberger Ltd. | 4,570,400 | 181,628 | ||||||
Other securities | 982,492 | |||||||
2,395,661 | ||||||||
Consumer discretionary 5.65% | ||||||||
Amazon.com, Inc.2 | 290,400 | 549,910 | ||||||
Other securities | 1,370,517 | |||||||
1,920,427 | ||||||||
Materials 4.77% | ||||||||
Celanese Corp. | 3,193,233 | 344,230 | ||||||
International Flavors & Fragrances Inc. | 1,599,000 | 231,999 | ||||||
Linde PLC | 1,152,000 | 231,322 | ||||||
Other securities | 812,038 | |||||||
1,619,589 | ||||||||
Utilities 2.02% | ||||||||
Sempra Energy | 2,375,700 | 326,516 | ||||||
Other securities | 360,574 | |||||||
687,090 | ||||||||
Real estate 1.90% | ||||||||
Crown Castle International Corp. REIT | 1,795,400 | 234,031 | ||||||
Other securities | 411,840 | |||||||
645,871 | ||||||||
Mutual funds 0.16% | ||||||||
Other securities | 54,750 | |||||||
Total common stocks (cost: $23,041,561,000) | 31,592,732 | |||||||
Convertible stocks 0.30% | ||||||||
Other 0.30% | ||||||||
Other securities | 99,581 | |||||||
Total convertible stocks (cost: $89,661,000) | 99,581 | |||||||
Convertible bonds 0.02% | Principal amount (000) | |||||||
Energy 0.02% | ||||||||
Other securities | 7,112 | |||||||
Total convertible bonds (cost: $11,820,000) | 7,112 |
66 | American Funds Insurance Series |
Growth-Income Fund
Short-term securities 6.26% | Shares | Value (000) | ||||||
Money market investments 6.26% | ||||||||
Capital Group Central Cash Fund | 21,280,609 | $ | 2,127,848 | |||||
Total short-term securities (cost: $2,127,852,000) | 2,127,848 | |||||||
Total investment securities 99.58% (cost: $25,270,894,000) | 33,827,273 | |||||||
Other assets less liabilities 0.42% | 142,019 | |||||||
Net assets 100.00% | $ | 33,969,292 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. The value of the fund’s affiliated-company holding is shown in the summary investment portfolio. Further details on this holding and related transactions during the six months ended June 30, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 6/30/2019 (000) | |||||||||||||||||||||||||
Common stocks 0.82% | ||||||||||||||||||||||||||||||||
Industrials 0.82% | ||||||||||||||||||||||||||||||||
BWX Technologies, Inc. | 5,290,948 | 83,000 | — | 5,373,948 | $ | — | $ | 73,906 | $ | 1,827 | $ | 279,983 |
1 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $48,420,000, which represented .14% of the net assets of the fund. |
Key to abbreviations
ADR = American Depositary Receipts
CAD = Canadian dollars
See notes to financial statements.
American Funds Insurance Series | 67 |
International Growth and Income Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 92.46% | Shares | Value (000) | ||||||
Financials 18.26% | ||||||||
HDFC Bank Ltd. | 1,228,800 | $ | 43,503 | |||||
Zurich Insurance Group AG | 92,200 | 32,103 | ||||||
AIA Group Ltd. | 1,833,000 | 19,769 | ||||||
Prudential PLC | 738,000 | 16,083 | ||||||
ING Groep NV | 1,367,000 | 15,849 | ||||||
Sony Financial Holdings Inc. | 526,100 | 12,629 | ||||||
Banco Santander, SA | 2,611,538 | 12,117 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 308,000 | 10,873 | ||||||
Haci Ömer Sabanci Holding AS | 6,520,900 | 9,673 | ||||||
GT Capital Holdings, Inc. | 501,049 | 9,193 | ||||||
Other securities | 80,065 | |||||||
261,857 | ||||||||
Health care 12.76% | ||||||||
Novartis AG | 502,545 | 45,920 | ||||||
Takeda Pharmaceutical Co., Ltd. | 1,043,753 | 37,010 | ||||||
Fresenius SE & Co. KGaA | 551,600 | 29,906 | ||||||
Daiichi Sankyo Co., Ltd. | 561,000 | 29,321 | ||||||
China Biologic Products Holdings, Inc.1 | 182,000 | 17,345 | ||||||
Other securities | 23,554 | |||||||
183,056 | ||||||||
Industrials 11.63% | ||||||||
Airbus SE, non-registered shares | 253,960 | 36,005 | ||||||
Shanghai International Airport Co., Ltd., Class A | 2,590,033 | 31,593 | ||||||
ASSA ABLOY AB, Class B | 681,100 | 15,395 | ||||||
Komatsu Ltd. | 629,600 | 15,183 | ||||||
Airports of Thailand PCL, foreign registered | 5,250,000 | 12,583 | ||||||
Adani Ports & Special Economic Zone Ltd. | 2,008,779 | 11,937 | ||||||
Aena SME, SA, non-registered shares | 52,450 | 10,395 | ||||||
Other securities | 33,714 | |||||||
166,805 | ||||||||
Energy 8.60% | ||||||||
Royal Dutch Shell PLC, Class A (GBP denominated) | 2,147,691 | 70,164 | ||||||
Royal Dutch Shell PLC, Class B | 138,000 | 4,523 | ||||||
TOTAL SA | 404,534 | 22,666 | ||||||
Canadian Natural Resources, Ltd. (CAD denominated) | 272,500 | 7,348 | ||||||
Canadian Natural Resources, Ltd. | 92,000 | 2,481 | ||||||
Other securities | 16,229 | |||||||
123,411 | ||||||||
Real estate 7.67% | ||||||||
Sun Hung Kai Properties Ltd. | 2,249,500 | 38,155 | ||||||
CK Asset Holdings Ltd. | 3,939,348 | 30,837 | ||||||
Daito Trust Construction Co., Ltd. | 144,800 | 18,447 | ||||||
China Resources Land Ltd. | 3,064,000 | 13,493 | ||||||
Other securities | 9,011 | |||||||
109,943 | ||||||||
Consumer discretionary 6.98% | ||||||||
Sony Corp. | 430,000 | 22,526 | ||||||
LVMH Moët Hennessy-Louis Vuitton SE | 48,000 | 20,430 | ||||||
Luckin Coffee Inc., Class A (ADR)1 | 508,404 | 9,909 | ||||||
Kering SA | 16,600 | 9,817 | ||||||
Just Eat PLC1 | 1,215,000 | 9,644 | ||||||
Other securities | 27,776 | |||||||
100,102 |
68 | American Funds Insurance Series |
International Growth and Income Fund
Common stocks | Shares | Value (000) | ||||||
Materials 6.83% | ||||||||
Rio Tinto PLC | 792,800 | $ | 49,138 | |||||
Yara International ASA | 343,000 | 16,638 | ||||||
Air Liquide SA, non-registered shares | 72,000 | 10,074 | ||||||
Other securities | 22,156 | |||||||
98,006 | ||||||||
Utilities 5.91% | ||||||||
Ørsted AS | 317,300 | 27,437 | ||||||
E.ON SE | 1,952,000 | 21,199 | ||||||
ENN Energy Holdings Ltd. | 1,658,000 | 16,131 | ||||||
Other securities | 20,062 | |||||||
84,829 | ||||||||
Consumer staples 5.71% | ||||||||
Pernod Ricard SA | 128,650 | 23,706 | ||||||
British American Tobacco PLC | 627,958 | 21,923 | ||||||
Coca-Cola Icecek AS, Class C | 2,631,000 | 13,576 | ||||||
Other securities | 22,748 | |||||||
81,953 | ||||||||
Information technology 4.33% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 2,804,000 | 21,577 | ||||||
Tokyo Electron Ltd. | 96,500 | 13,533 | ||||||
Samsung Electronics Co., Ltd. | 259,000 | 10,543 | ||||||
ASML Holding NV | 47,800 | 9,987 | ||||||
Other securities | 6,420 | |||||||
62,060 | ||||||||
Communication services 3.78% | ||||||||
Yandex NV, Class A1 | 470,000 | 17,860 | ||||||
Other securities | 36,329 | |||||||
54,189 | ||||||||
Total common stocks (cost: $1,177,798,000) | 1,326,211 | |||||||
Preferred securities 1.25% | ||||||||
Financials 0.98% | ||||||||
Itaú Unibanco Holding SA, preferred nominative (ADR) | 1,486,950 | 14,007 | ||||||
Energy 0.27% | ||||||||
Other securities | 3,875 | |||||||
Total preferred securities (cost: $13,377,000) | 17,882 | |||||||
Bonds, notes & other debt instruments 1.15% | Principal amount (000) | |||||||
Bonds & notes of governments & government agencies outside the U.S. 0.62% | ||||||||
Other securities | 8,979 | |||||||
Corporate bonds & notes 0.53% | ||||||||
Other 0.53% | ||||||||
Other securities | 7,582 | |||||||
Total corporate bonds & notes | 7,582 | |||||||
Total bonds, notes & other debt instruments (cost: $15,610,000) | 16,561 |
American Funds Insurance Series | 69 |
International Growth and Income Fund
Short-term securities 4.89% | Shares | Value (000) | ||||||
Money market investments 4.53% | ||||||||
Capital Group Central Cash Fund | 649,569 | $ | 64,951 | |||||
Principal amount (000) | ||||||||
Other short-term securities 0.36% | ||||||||
Other securities | 5,254 | |||||||
Total short-term securities (cost: $69,825,000) | 70,205 | |||||||
Total investment securities 99.75% (cost: $1,276,610,000) | 1,430,859 | |||||||
Other assets less liabilities 0.25% | 3,524 | |||||||
Net assets 100.00% | $ | 1,434,383 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” also includes a security (with a value of $1,907,000, which represented .13% of the net assets of the fund) which was acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
Forward currency contracts
Contract amount | Unrealized appreciation | ||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 6/30/2019 (000) | |||||||
USD1,559 | GBP1,223 | Morgan Stanley | 7/12/2019 | $ | 5 |
1 | Security did not produce income during the last 12 months. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
CAD = Canadian dollars
GBP = British pounds
USD/$ = U.S. dollars
See notes to financial statements.
70 | American Funds Insurance Series |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 67.41% | Shares | Value (000) | ||||||
Information technology 9.58% | ||||||||
Microsoft Corp. | 109,620 | $ | 14,685 | |||||
Broadcom Inc. | 50,800 | 14,623 | ||||||
QUALCOMM Inc. | 140,900 | 10,718 | ||||||
Intel Corp. | 221,100 | 10,584 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 1,277,800 | 9,832 | ||||||
Other securities | 19,983 | |||||||
80,425 | ||||||||
Consumer staples 9.08% | ||||||||
Philip Morris International Inc. | 145,220 | 11,404 | ||||||
Diageo PLC | 233,600 | 10,039 | ||||||
British American Tobacco PLC | 271,200 | 9,468 | ||||||
Carlsberg A/S, Class B | 69,692 | 9,239 | ||||||
Coca-Cola Co. | 177,700 | 9,048 | ||||||
Nestlé SA | 69,277 | 7,172 | ||||||
Altria Group, Inc. | 150,370 | 7,120 | ||||||
Other securities | 12,741 | |||||||
76,231 | ||||||||
Financials 8.63% | ||||||||
CME Group Inc., Class A | 59,566 | 11,562 | ||||||
Zurich Insurance Group AG | 26,872 | 9,357 | ||||||
DBS Group Holdings Ltd. | 335,700 | 6,441 | ||||||
SunTrust Banks, Inc. | 100,500 | 6,316 | ||||||
Sampo Oyj, Class A | 130,569 | 6,162 | ||||||
Other securities | 32,667 | |||||||
72,505 | ||||||||
Real estate 8.21% | ||||||||
Crown Castle International Corp. REIT | 130,300 | 16,984 | ||||||
American Tower Corp. REIT | 77,569 | 15,859 | ||||||
Link Real Estate Investment Trust REIT | 693,500 | 8,522 | ||||||
Digital Realty Trust, Inc. REIT | 49,000 | 5,772 | ||||||
Other securities | 21,844 | |||||||
68,981 | ||||||||
Energy 7.49% | ||||||||
Royal Dutch Shell PLC, Class B | 413,140 | 13,542 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 8,500 | 559 | ||||||
Royal Dutch Shell PLC, Class A (GBP denominated) | 101 | 3 | ||||||
Enbridge Inc. (CAD denominated) | 369,670 | 13,352 | ||||||
Williams Companies, Inc. | 236,700 | 6,637 | ||||||
Occidental Petroleum Corp. | 122,600 | 6,165 | ||||||
Other securities | 22,602 | |||||||
62,860 | ||||||||
Communication services 5.11% | ||||||||
Vodafone Group PLC | 5,707,800 | 9,374 | ||||||
Koninklijke KPN NV | 2,692,994 | 8,268 | ||||||
Verizon Communications Inc. | 119,950 | 6,853 | ||||||
HKT Trust and HKT Ltd., units | 3,699,240 | 5,872 | ||||||
Other securities | 12,525 | |||||||
42,892 | ||||||||
Health care 4.93% | ||||||||
AstraZeneca PLC | 123,900 | 10,130 | ||||||
AstraZeneca PLC (ADR) | 145,100 | 5,990 | ||||||
GlaxoSmithKline PLC | 421,500 | 8,439 | ||||||
Pfizer Inc. | 176,500 | 7,646 | ||||||
Other securities | 9,201 | |||||||
41,406 |
American Funds Insurance Series | 71 |
Capital Income Builder
Common stocks (continued) | Shares | Value (000) | ||||||
Utilities 4.26% | ||||||||
Enel SpA | 1,753,109 | $ | 12,240 | |||||
Edison International | 135,100 | 9,107 | ||||||
Other securities | 14,428 | |||||||
35,775 | ||||||||
Consumer discretionary 4.21% | ||||||||
Las Vegas Sands Corp. | 173,400 | 10,246 | ||||||
Sands China Ltd. | 1,460,800 | 6,985 | ||||||
Other securities | 18,135 | |||||||
35,366 | ||||||||
Industrials 3.85% | ||||||||
Airbus SE, non-registered shares | 90,999 | 12,901 | ||||||
Boeing Co. | 21,300 | 7,754 | ||||||
Other securities | 11,658 | |||||||
32,313 | ||||||||
Materials 2.06% | ||||||||
Other securities | 17,288 | |||||||
Total common stocks (cost: $534,432,000) | 566,042 | |||||||
Rights & warrants 0.00% | ||||||||
Energy 0.00% | ||||||||
Other securities | — | 1 | ||||||
Total rights & warrants (cost: $0) | — | 1 | ||||||
Convertible stocks 1.11% | ||||||||
Utilities 0.66% | ||||||||
Other securities | 5,541 | |||||||
Real estate 0.45% | ||||||||
Crown Castle International Corp. REIT, Series A, 6.875% convertible preferred 2020 | 3,150 | 3,786 | ||||||
Total convertible stocks (cost: $8,227,000) | 9,327 | |||||||
Bonds, notes & other debt instruments 22.66% | Principal amount (000) | |||||||
U.S. Treasury bonds & notes 13.13% | ||||||||
U.S. Treasury 12.45% | ||||||||
U.S. Treasury 2.25% 2021 | $ | 12,000 | 12,100 | |||||
U.S. Treasury 1.875% 2022 | 10,500 | 10,551 | ||||||
U.S. Treasury 2.00% 20222 | 15,000 | 15,130 | ||||||
U.S. Treasury 2.125% 2022 | 8,800 | 8,919 | ||||||
U.S. Treasury 2.00% 2025 | 13,200 | 13,327 | ||||||
U.S. Treasury 2.00% 2026 | 7,500 | 7,558 | ||||||
U.S. Treasury 0%–3.13% 2021–20492 | 39,303 | 36,935 | ||||||
104,520 | ||||||||
U.S. Treasury inflation-protected securities 0.68% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20233 | 5,657 | 5,728 | ||||||
U.S. Treasury Inflation-Protected Security 0.50% 20283 | — | 1 | — | 1 | ||||
5,728 | ||||||||
Total U.S. Treasury bonds & notes | 110,248 |
72 | American Funds Insurance Series |
Capital Income Builder
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
Mortgage-backed obligations 5.27% | ||||||||
Federal agency mortgage-backed obligations 4.99% | ||||||||
Fannie Mae Pool #CA2055 4.50% 20484 | $ | 6,244 | $ | 6,565 | ||||
Fannie Mae Pool #CA1709 4.50% 20484 | 5,393 | 5,675 | ||||||
Fannie Mae Pool #CA1563 4.50% 20484 | 5,290 | 5,567 | ||||||
Fannie Mae 3.50%–4.00% 2046–20494 | 2,067 | 2,156 | ||||||
Government National Mortgage Assn. 4.18%–6.64% 2048–20644,5 | 14,177 | 14,838 | ||||||
Other securities | 7,130 | |||||||
41,931 | ||||||||
Collateralized mortgage-backed obligations (privately originated) 0.28% | ||||||||
Other securities | 2,358 | |||||||
Total mortgage-backed obligations | 44,289 | |||||||
Corporate bonds & notes 3.21% Utilities 0.57% | ||||||||
Southern California Edison Co. 4.00%–4.65% 2043–2048 | 419 | 425 | ||||||
Other securities | 4,366 | |||||||
4,791 | ||||||||
Health care 0.47% | ||||||||
AstraZeneca PLC 3.375% 2025 | 200 | 209 | ||||||
Other securities | 3,711 | |||||||
3,920 | ||||||||
Consumer staples 0.41% | ||||||||
British American Tobacco PLC 3.56%–4.54% 2027–2047 | 920 | 906 | ||||||
Philip Morris International Inc. 3.375% 2029 | 280 | 289 | ||||||
Other securities | 2,266 | |||||||
3,461 | ||||||||
Communication services 0.28% | ||||||||
Vodafone Group PLC 5.25% 2048 | 250 | 277 | ||||||
Other securities | 2,070 | |||||||
2,347 | ||||||||
Information technology 0.22% | ||||||||
Broadcom Inc. 4.75% 20296 | 530 | 544 | ||||||
Broadcom Ltd. 3.50%–3.88% 2024–2028 | 428 | 419 | ||||||
Other securities | 904 | |||||||
1,867 | ||||||||
Energy 0.18% | ||||||||
Enbridge Energy Partners, LP 7.375% 2045 | 85 | 125 | ||||||
Other securities | 1,402 | |||||||
1,527 | ||||||||
Other 1.08% | ||||||||
Other securities | 9,048 | |||||||
Total corporate bonds & notes | 26,961 | |||||||
Asset-backed obligations 1.00% | ||||||||
Ford Credit Auto Owner Trust, Series 2015-1, Class A, 2.12% 20264,6 | 6,959 | 6,948 | ||||||
Other securities | 1,409 | |||||||
Total asset-backed obligations | 8,357 |
American Funds Insurance Series | 73 |
Capital Income Builder
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
Municipals 0.05% | ||||||||
Other securities | $ | 412 | ||||||
Total bonds, notes & other debt instruments (cost: $185,342,000) | 190,267 | |||||||
Short-term securities 8.17% | Shares | |||||||
Money market investments 8.17% | ||||||||
Capital Group Central Cash Fund | 685,730 | 68,566 | ||||||
Total short-term securities (cost: $68,566,000) | 68,566 | |||||||
Total investment securities 99.35% (cost: $796,567,000) | 834,202 | |||||||
Other assets less liabilities 0.65% | 5,487 | |||||||
Net assets 100.00% | $ | 839,689 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes a security which was valued under fair value procedures adopted by authority of the board of trustees. The total value of the security which was valued under fair value procedures was $190,000, which represented .02% of the net assets of the fund.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 7 | Value at 6/30/2019 (000) | 8 | Unrealized appreciation (depreciation) at 6/30/2019 (000) | |||||||||||
2 Year U.S. Treasury Note Futures | Long | 417 | October 2019 | $ | 83,400 | $ | 89,730 | $ | 646 | ||||||||||
5 Year U.S. Treasury Note Futures | Short | 73 | October 2019 | (7,300 | ) | (8,626 | ) | (104 | ) | ||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 235 | September 2019 | (23,500 | ) | (32,459 | ) | (1,021 | ) | ||||||||||
20 Year U.S. Treasury Bond Futures | Long | 49 | September 2019 | 4,900 | 7,624 | 203 | |||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 27 | September 2019 | 2,700 | 4,794 | 210 | |||||||||||||
$ | (66 | ) |
74 | American Funds Insurance Series |
Capital Income Builder
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 6/30/2019 (000) | ||||||||||||||||
2.337% | U.S. EFFR | 7/31/2019 | $ | 123,000 | $ | (4 | ) | $ | — | $ | (4 | ) | ||||||||||
2.325% | U.S. EFFR | 7/31/2019 | 163,000 | (6 | ) | — | (6 | ) | ||||||||||||||
2.305% | U.S. EFFR | 7/31/2019 | 163,000 | (9 | ) | — | (9 | ) | ||||||||||||||
U.S. EFFR | 2.039% | 9/18/2019 | 309,000 | (4 | ) | — | (4 | ) | ||||||||||||||
2.4035% | U.S. EFFR | 1/11/2021 | 30,760 | 364 | — | 364 | ||||||||||||||||
2.3995% | U.S. EFFR | 1/11/2021 | 21,249 | 250 | — | 250 | ||||||||||||||||
2.3755% | U.S. EFFR | 2/6/2021 | 29,000 | 354 | — | 354 | ||||||||||||||||
2.37% | U.S. EFFR | 3/8/2021 | 15,000 | 194 | — | 194 | ||||||||||||||||
3-month USD-LIBOR | 2.348% | 4/1/2021 | 47,000 | (421 | ) | — | (421 | ) | ||||||||||||||
2.197% | U.S. EFFR | 4/15/2021 | 31,000 | 338 | — | 338 | ||||||||||||||||
2.21875% | U.S. EFFR | 3/14/2024 | 9,000 | 293 | — | 293 | ||||||||||||||||
$ | — | $ | 1,349 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Amount less than one thousand. |
2 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $709,000, which represented .08% of the net assets of the fund. |
3 | Index-linked bond whose principal amount moves with a government price index. |
4 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
5 | Purchased on a TBA basis. |
6 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $16,746,000, which represented 1.99% of the net assets of the fund. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
CAD = Canadian dollars
EFFR = Effective Federal Funds Rate
GBP = British pounds
LIBOR = London Interbank Offered Rate
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 75 |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 61.08% | Shares | Value (000) | ||||||
Information technology 14.78% | ||||||||
Microsoft Corp. | 6,641,900 | $ | 889,749 | |||||
Broadcom Inc. | 2,095,000 | 603,067 | ||||||
ASML Holding NV (New York registered) | 1,865,000 | 387,790 | ||||||
ASML Holding NV | 70,000 | 14,625 | ||||||
VeriSign, Inc.1 | 1,700,000 | 355,572 | ||||||
Intel Corp. | 5,820,000 | 278,603 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 6,276,700 | 245,858 | ||||||
Intuit Inc. | 900,000 | 235,197 | ||||||
MKS Instruments, Inc.2 | 2,800,000 | 218,092 | ||||||
Visa Inc., Class A | 1,032,000 | 179,103 | ||||||
Other securities | 357,479 | |||||||
3,765,135 | ||||||||
Financials 10.02% | ||||||||
Chubb Ltd. | 2,200,000 | 324,038 | ||||||
Arch Capital Group Ltd.1 | 7,331,500 | 271,852 | ||||||
First Republic Bank | 2,580,000 | 251,937 | ||||||
CME Group Inc., Class A | 977,200 | 189,684 | ||||||
JPMorgan Chase & Co. | 1,600,000 | 178,880 | ||||||
Capital One Financial Corp. | 1,950,000 | 176,943 | ||||||
Citigroup Inc. | 2,500,000 | 175,075 | ||||||
Bank of America Corp. | 6,000,000 | 174,000 | ||||||
Wells Fargo & Co. | 3,500,000 | 165,620 | ||||||
Other securities | 643,239 | |||||||
2,551,268 | ||||||||
Health care 9.93% | ||||||||
Johnson & Johnson | 3,672,000 | 511,436 | ||||||
UnitedHealth Group Inc. | 2,016,300 | 491,997 | ||||||
Humana Inc. | 1,265,000 | 335,604 | ||||||
Merck & Co., Inc. | 2,420,300 | 202,942 | ||||||
Bluebird Bio, Inc.1 | 1,558,700 | 198,267 | ||||||
Cigna Corp. | 1,250,000 | 196,938 | ||||||
Other securities | 592,293 | |||||||
2,529,477 | ||||||||
Industrials 5.77% | ||||||||
Boeing Co. | 1,211,000 | 440,816 | ||||||
Northrop Grumman Corp. | 1,349,400 | 436,005 | ||||||
Lockheed Martin Corp. | 847,200 | 307,991 | ||||||
Other securities | 285,567 | |||||||
1,470,379 | ||||||||
Consumer discretionary 4.93% | ||||||||
Home Depot, Inc. | 1,125,000 | 233,966 | ||||||
Amazon.com, Inc.1 | 103,000 | 195,044 | ||||||
Suzuki Motor Corp. | 3,700,000 | 173,787 | ||||||
General Motors Co. | 4,100,000 | 157,973 | ||||||
VF Corp. | 1,500,000 | 131,025 | ||||||
Other securities | 363,809 | |||||||
1,255,604 | ||||||||
Energy 3.92% | ||||||||
Noble Energy, Inc. | 12,500,000 | 280,000 | ||||||
Cenovus Energy Inc. | 28,000,000 | 246,955 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 2,745,000 | 180,456 | ||||||
Suncor Energy Inc. | 4,000,000 | 124,776 | ||||||
Other securities | 165,644 | |||||||
997,831 |
76 | American Funds Insurance Series |
Asset Allocation Fund
Common stocks | Shares | Value (000) | ||||||
Consumer staples 3.85% | ||||||||
Philip Morris International Inc. | 5,430,000 | $ | 426,418 | |||||
Nestlé SA | 3,006,689 | 311,264 | ||||||
Nestlé SA (ADR) | 900,000 | 93,060 | ||||||
Other securities | 148,922 | |||||||
979,664 | ||||||||
Communication services 3.71% | ||||||||
Charter Communications, Inc., Class A1 | 827,126 | 326,864 | ||||||
Facebook, Inc., Class A1 | 1,077,100 | 207,880 | ||||||
Other securities | 409,851 | |||||||
944,595 | ||||||||
Materials 2.67% | ||||||||
Dow Inc. | 4,616,666 | 227,648 | ||||||
Other securities | 453,796 | |||||||
681,444 | ||||||||
Real estate 0.87% | ||||||||
Other securities | 220,771 | |||||||
Utilities 0.63% | ||||||||
CMS Energy Corp. | 2,284,700 | 132,307 | ||||||
Other securities | 28,901 | |||||||
161,208 | ||||||||
Total common stocks (cost: $10,698,642,000) | 15,557,376 | |||||||
Rights & warrants 0.00% | ||||||||
Other 0.00% | ||||||||
Other securities | 101 | |||||||
Total rights & warrants (cost: $47,000) | 101 | |||||||
Convertible stocks 0.27% | ||||||||
Other 0.27% | ||||||||
Other securities | 67,927 | |||||||
Total convertible stocks (cost: $66,588,000) | 67,927 | |||||||
Convertible bonds 0.00% | Principal amount (000) | |||||||
Communication services 0.00% | ||||||||
Other securities | 1,286 | |||||||
Total convertible bonds (cost: $1,390,000) | 1,286 | |||||||
Bonds, notes & other debt instruments 30.44% | ||||||||
U.S. Treasury bonds & notes 12.71% | ||||||||
U.S. Treasury 10.47% | ||||||||
U.S. Treasury 1.25% 20203 | $ | 278,117 | 276,813 | |||||
U.S. Treasury 1.625% 2020 | 125,000 | 124,600 | ||||||
U.S. Treasury 2.25% 2021 | 138,000 | 139,145 | ||||||
U.S. Treasury 2.50% 2021 | 200,000 | 202,080 | ||||||
U.S. Treasury 1.75% 2024 | 130,000 | 129,970 | ||||||
U.S. Treasury 2.50% 2024 | 225,000 | 232,409 | ||||||
U.S. Treasury 1.13%–4.75% 2019–20493 | 1,516,483 | 1,562,257 | ||||||
2,667,274 |
American Funds Insurance Series | 77 |
Asset Allocation Fund
Bonds, notes & other debt instruments (continued) | Principal amount (000) | Value (000) | ||||||
U.S. Treasury bonds & notes (continued) | ||||||||
U.S. Treasury inflation-protected securities 2.24% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20244 | $ | 223,594 | $ | 227,688 | ||||
U.S. Treasury Inflation-Protected Security 1.375% 20443,4 | 140,628 | 160,014 | ||||||
U.S. Treasury Inflation-Protected Securities 0.38%–1.00% 2024–20493,4 | 189,143 | 183,285 | ||||||
570,987 | ||||||||
Total U.S. Treasury bonds & notes | 3,238,261 | |||||||
Corporate bonds & notes 10.79% | ||||||||
Health care 1.85% | ||||||||
UnitedHealth Group Inc. 3.38%–4.45% 2024–2048 | 12,215 | 13,369 | ||||||
Other securities | 458,990 | |||||||
472,359 | ||||||||
Financials 1.70% | ||||||||
ACE INA Holdings Inc. 2.30%–4.35% 2020–2045 | 7,405 | 7,683 | ||||||
Other securities | 424,406 | |||||||
432,089 | ||||||||
Energy 1.18% | ||||||||
Cenovus Energy Inc. 3.80%–5.40% 2023–2047 | 17,385 | 18,156 | ||||||
Noble Energy, Inc. 4.95% 2047 | 375 | 398 | ||||||
Other securities | 282,453 | |||||||
301,007 | ||||||||
Communication services 1.15% | ||||||||
CCO Holdings LLC and CCO Holdings Capital Corp. 4.50%–6.48% 2023–20495 | 33,760 | 36,326 | ||||||
Other securities | 255,457 | |||||||
291,783 | ||||||||
Industrials 0.80% | ||||||||
Boeing Co. 2.70%–3.90% 2022–2049 | 16,533 | 17,042 | ||||||
Lockheed Martin Corp. 2.50%–3.55% 2020–2026 | 10,050 | 10,312 | ||||||
Northrop Grumman Corp. 2.93%–3.25% 2025–2028 | 13,245 | 13,554 | ||||||
Other securities | 164,113 | |||||||
205,021 | ||||||||
Consumer staples 0.78% | ||||||||
Nestlé Holdings, Inc. 3.35% 20235 | 750 | 782 | ||||||
Philip Morris International Inc. 1.88%–4.25% 2020–2044 | 15,481 | 15,777 | ||||||
Other securities | 182,969 | |||||||
199,528 | ||||||||
Information technology 0.51% | ||||||||
Broadcom Inc. 3.13%–4.75% 2022–20295 | 30,890 | 31,474 | ||||||
Broadcom Ltd. 3.50%–3.88% 2024–2028 | 11,832 | 11,578 | ||||||
Microsoft Corp. 3.30%–4.25% 2027–2047 | 11,250 | 12,565 | ||||||
Other securities | 73,386 | |||||||
129,003 | ||||||||
Other 2.82% | ||||||||
Other securities | 716,137 | |||||||
Total corporate bonds & notes | 2,746,927 |
78 | American Funds Insurance Series |
Asset Allocation Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
Mortgage-backed obligations 6.06% | ||||||||
Federal agency mortgage-backed obligations 5.84% | ||||||||
Fannie Mae 0%–7.50% 2021–20496,7 | $ | 410,879 | $ | 426,582 | ||||
Freddie Mac 3.00%–6.50% 2034–20486 | 272,601 | 282,129 | ||||||
Government National Mortgage Assn. 3.50%–4.50% 2048–20496,8 | 400,322 | 416,602 | ||||||
Other securities | 365,962 | |||||||
1,491,275 | ||||||||
Other 0.22% | ||||||||
Other securities | 51,824 | |||||||
Total mortgage-backed obligations | 1,543,099 | |||||||
Federal agency bonds & notes 0.05% | ||||||||
Fannie Mae 1.875% 20263 | 13,000 | 12,852 | ||||||
Other 0.83% | ||||||||
Other securities | 210,817 | |||||||
Total bonds, notes & other debt instruments (cost: $7,576,505,000) | 7,751,956 | |||||||
Short-term securities 10.32% | Shares | |||||||
Money market investments 10.32% | ||||||||
Capital Group Central Cash Fund | 26,293,786 | 2,629,116 | ||||||
Total short-term securities (cost: $2,629,127,000) | 2,629,116 | |||||||
Total investment securities 102.11% (cost: $20,972,299,000) | 26,007,762 | |||||||
Other assets less liabilities (2.11)% | (536,983 | ) | ||||||
Net assets 100.00% | $ | 25,470,779 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $33,335,000, which represented .13% of the net assets of the fund. “Other securities” also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $45,351,000, which represented .18% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $4,014,000, an aggregate cost of $9,216,000, and which represented .02% of the net assets of the fund) were acquired from 9/26/2013 to 11/16/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 9 | Value at 6/30/2019 (000) | 10 | Unrealized appreciation (depreciation) at 6/30/2019 (000) | |||||||||||
90 Day Euro Dollar Futures | Long | 4,190 | September 2019 | $ | 1,047,500 | $ | 1,026,498 | $ | 911 | ||||||||||
90 Day Euro Dollar Futures | Long | 1,682 | March 2020 | 420,500 | 413,309 | 1,574 | |||||||||||||
90 Day Euro Dollar Futures | Short | 4,190 | September 2020 | (1,047,500 | ) | (1,031,211 | ) | (889 | ) | ||||||||||
90 Day Euro Dollar Futures | Short | 1,682 | March 2021 | (420,500 | ) | (414,066 | ) | (1,344 | ) | ||||||||||
2 Year U.S. Treasury Note Futures | Long | 7,644 | October 2019 | 1,528,800 | 1,644,833 | 9,786 | |||||||||||||
5 Year U.S. Treasury Note Futures | Long | 2,171 | October 2019 | 217,100 | 256,517 | 2,658 | |||||||||||||
10 Year U.S. Treasury Note Futures | Short | 8 | September 2019 | (800 | ) | (1,024 | ) | (15 | ) |
American Funds Insurance Series | 79 |
Asset Allocation Fund
Futures contracts(continued)
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 9 | Value at 6/30/2019 (000) | 10 | Unrealized appreciation (depreciation) at 6/30/2019 (000) | |||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 2,089 | September 2019 | $ | (208,900 | ) | $ | (288,543 | ) | $ | (5,727 | ) | |||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 613 | September 2019 | 61,300 | 108,846 | 3,458 | |||||||||||||
$ | 10,412 |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments/ receipts (000) | Unrealized depreciation at 6/30/2019 (000) | ||||||||||||||||
1.6365% | 3-month USD-LIBOR | 10/16/2019 | $ | 124,000 | $ | (267 | ) | $ | — | $ | (267 | ) | ||||||||||
3-month USD-LIBOR | 2.18075% | 3/29/2024 | 26,400 | (524 | ) | — | (524 | ) | ||||||||||||||
3-month USD-LIBOR | 2.194% | 3/29/2024 | 101,900 | (2,083 | ) | — | (2,083 | ) | ||||||||||||||
3-month USD-LIBOR | 2.21875% | 3/29/2024 | 107,250 | (2,313 | ) | — | (2,313 | ) | ||||||||||||||
3-month USD-LIBOR | 2.945% | 10/16/2044 | 28,000 | (4,195 | ) | — | (4,194 | ) | ||||||||||||||
$ | — | $ | (9,381 | ) |
Investments in affiliates
A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. The value of the fund’s affiliated-company holdings is either shown in the summary investment portfolio or included in the value of “Other securities” under the respective industry sectors. Further details on these holdings and related transactions during the six months ended June 30, 2019, appear below.
Net | ||||||||||||||||||||||||||||||||
Beginning | Ending | Net | unrealized | Dividend | Value of | |||||||||||||||||||||||||||
shares or | shares or | realized | (depreciation) | or interest | affiliates at | |||||||||||||||||||||||||||
principal | principal | loss | appreciation | income | 6/30/2019 | |||||||||||||||||||||||||||
amount | Additions | Reductions | amount | (000) | (000) | (000) | (000) | |||||||||||||||||||||||||
Common stocks 1.61% | ||||||||||||||||||||||||||||||||
Information technology 0.86% | ||||||||||||||||||||||||||||||||
MKS Instruments, Inc. | — | 2,800,000 | — | 2,800,000 | $ | — | $ | (19,186 | ) | $ | 390 | $ | 218,092 | |||||||||||||||||||
Consumer discretionary 0.75% | ||||||||||||||||||||||||||||||||
Dillard’s, Inc., Class A (USA) | 1,700,000 | — | — | 1,700,000 | — | 3,349 | 340 | 105,876 | ||||||||||||||||||||||||
Kontoor Brands, Inc.1 | — | 3,084,392 | — | 3,084,392 | — | 1,070 | — | 86,425 | ||||||||||||||||||||||||
192,301 | ||||||||||||||||||||||||||||||||
Energy 0.00% | ||||||||||||||||||||||||||||||||
Weatherford International PLC1,11 | 60,000,000 | — | 60,000,000 | — | (446,158 | ) | 415,322 | — | — | |||||||||||||||||||||||
Total common stocks | 410,393 | |||||||||||||||||||||||||||||||
Bonds, notes & other debt instruments 0.00% | ||||||||||||||||||||||||||||||||
Energy 0.00% | ||||||||||||||||||||||||||||||||
Weatherford International PLC 4.50% 202211 | $ | 6,365,000 | — | — | $ | 6,365,000 | — | (592 | ) | 241 | — | |||||||||||||||||||||
Weatherford International PLC 8.25% 202311 | $ | 5,800,000 | — | — | $ | 5,800,000 | — | (469 | ) | 243 | — | |||||||||||||||||||||
Weatherford International PLC 9.875% 202411 | $ | 1,000,000 | — | — | $ | 1,000,000 | — | (92 | ) | 48 | — | |||||||||||||||||||||
Weatherford International PLC 9.875% 202511 | $ | 2,550,000 | — | — | $ | 2,550,000 | — | (224 | ) | 127 | — | |||||||||||||||||||||
Weatherford International PLC 6.50% 203611 | $ | 7,595,000 | — | — | $ | 7,595,000 | — | (51 | ) | 260 | — | |||||||||||||||||||||
Weatherford International PLC 6.75% 204011 | $ | 7,825,000 | — | — | $ | 7,825,000 | — | (53 | ) | 275 | — | |||||||||||||||||||||
— | ||||||||||||||||||||||||||||||||
Total 1.61% | $ | (446,158 | ) | $ | 399,074 | $ | 1,924 | $ | 410,393 |
80 | American Funds Insurance Series |
Asset Allocation Fund
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
3 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $13,869,000, which represented .05% of the net assets of the fund. |
4 | Index-linked bond whose principal amount moves with a government price index. |
5 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $936,956,000, which represented 3.68% of the net assets of the fund. |
6 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
7 | Coupon rate may change periodically. |
8 | Purchased on a TBA basis. |
9 | Notional amount is calculated based on the number of contracts and notional contract size. |
10 | Value is calculated based on the notional amount and current market price. |
11 | Unaffiliated issuer at 6/30/2019. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
LIBOR = London Interbank Offered Rate
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 81 |
Global Balanced Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Common stocks 59.16% | Shares | Value (000) | ||||||
Information technology 11.42% | ||||||||
Broadcom Inc. | 26,895 | $ | 7,742 | |||||
PagSeguro Digital Ltd., Class A1 | 161,228 | 6,283 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 804,000 | 6,187 | ||||||
ASML Holding NV | 25,800 | 5,390 | ||||||
Microsoft Corp. | 32,620 | 4,370 | ||||||
Temenos AG | 18,000 | 3,220 | ||||||
Visa Inc., Class A | 14,600 | 2,534 | ||||||
Infosys Ltd. | 214,650 | 2,276 | ||||||
Other securities | 9,448 | |||||||
47,450 | ||||||||
Health care 10.20% | ||||||||
Merck & Co., Inc. | 116,325 | 9,754 | ||||||
AstraZeneca PLC | 102,050 | 8,344 | ||||||
Humana Inc. | 16,330 | 4,332 | ||||||
Mettler-Toledo International Inc.1 | 3,500 | 2,940 | ||||||
Coloplast A/S, Class B | 21,200 | 2,396 | ||||||
Other securities | 14,633 | |||||||
42,399 | ||||||||
Financials 8.52% | ||||||||
Berkshire Hathaway Inc., Class A1 | 21 | 6,685 | ||||||
Sberbank of Russia PJSC (ADR) | 331,000 | 5,091 | ||||||
JPMorgan Chase & Co. | 45,300 | 5,065 | ||||||
AIA Group Ltd. | 426,000 | 4,595 | ||||||
B3 SA - Brasil, Bolsa, Balcao | 376,000 | 3,668 | ||||||
Hang Seng Bank Ltd. | 114,000 | 2,838 | ||||||
BlackRock, Inc. | 5,730 | 2,689 | ||||||
Other securities | 4,794 | |||||||
35,425 | ||||||||
Consumer staples 7.64% | ||||||||
Nestlé SA | 64,100 | 6,636 | ||||||
British American Tobacco PLC | 156,300 | 5,457 | ||||||
Altria Group, Inc. | 87,000 | 4,120 | ||||||
Philip Morris International Inc. | 50,800 | 3,989 | ||||||
Keurig Dr Pepper Inc. | 106,000 | 3,063 | ||||||
Other securities | 8,495 | |||||||
31,760 | ||||||||
Industrials 6.59% | ||||||||
Boeing Co. | 11,250 | 4,095 | ||||||
Edenred SA | 66,528 | 3,394 | ||||||
MTU Aero Engines AG | 9,800 | 2,335 | ||||||
Other securities | 17,580 | |||||||
27,404 | ||||||||
Consumer discretionary 4.31% | ||||||||
Home Depot, Inc. | 22,275 | 4,632 | ||||||
General Motors Co. | 110,500 | 4,258 | ||||||
Amazon.com, Inc.1 | 1,375 | 2,604 | ||||||
LVMH Moët Hennessy-Louis Vuitton SE | 5,765 | 2,454 | ||||||
Alibaba Group Holding Ltd. (ADR)1 | 13,700 | 2,321 | ||||||
Other securities | 1,623 | |||||||
17,892 | ||||||||
Materials 2.83% | ||||||||
Other securities | 11,753 |
82 | American Funds Insurance Series |
Global Balanced Fund
Common stocks | Shares | Value (000) | ||||||
Energy 2.45% | ||||||||
Other securities | $ | 10,162 | ||||||
Communication services 2.22% | ||||||||
Alphabet Inc., Class C1 | 3,579 | 3,868 | ||||||
Nintendo Co., Ltd. | 7,500 | 2,747 | ||||||
SK Telecom Co., Ltd. | 11,590 | 2,600 | ||||||
9,215 | ||||||||
Real estate 1.77% | ||||||||
Crown Castle International Corp. REIT | 23,940 | 3,120 | ||||||
Gaming and Leisure Properties, Inc. REIT | 59,720 | 2,328 | ||||||
Other securities | 1,894 | |||||||
7,342 | ||||||||
Utilities 1.21% | ||||||||
Ørsted AS | 58,400 | 5,050 | ||||||
Total common stocks (cost: $194,289,000) | 245,852 | |||||||
Bonds, notes & other debt instruments 35.34% | Principal amount (000) | |||||||
Bonds & notes of governments & government agencies outside the U.S. 14.82% | ||||||||
Japan, Series 395, 0.10% 2020 | ¥ | 423,100 | 3,942 | |||||
Japan, Series 346, 0.10% 2027 | 304,250 | 2,901 | ||||||
Japan 0.10%–1.70% 2020–20492 | 1,228,461 | 12,085 | ||||||
Other securities | 42,643 | |||||||
61,571 | ||||||||
U.S. Treasury bonds & notes 12.90% | ||||||||
U.S. Treasury 11.14% | ||||||||
U.S. Treasury 2.25% 2021 | $ | 5,000 | 5,041 | |||||
U.S. Treasury 2.875% 2021 | 2,250 | 2,309 | ||||||
U.S. Treasury 1.625% 20223 | 2,850 | 2,840 | ||||||
U.S. Treasury 2.875% 2023 | 2,250 | 2,356 | ||||||
U.S. Treasury 2.25% 2024 | 3,055 | 3,125 | ||||||
U.S. Treasury 2.25% 2027 | 2,800 | 2,866 | ||||||
U.S. Treasury 1.00%–3.13% 2019–20493 | 27,028 | 27,782 | ||||||
46,319 | ||||||||
U.S. Treasury inflation-protected securities 1.76% | ||||||||
U.S. Treasury Inflation-Protected Security 0.875% 20292 | 3,845 | 4,054 | ||||||
U.S. Treasury Inflation-Protected Securities 0.13%–2.38% 2022–20442,3 | 3,164 | 3,260 | ||||||
7,314 | ||||||||
Total U.S. Treasury bonds & notes | 53,633 | |||||||
Corporate bonds & notes 5.15% | ||||||||
Financials 1.10% | ||||||||
JPMorgan Chase & Co. 2.55%–3.25% 2021–2023 | 254 | 257 | ||||||
JPMorgan Chase & Co., Series S, junior subordinated, perpetual, 6.75% (3-month USD-LIBOR + 3.78% on 2/1/2024)4 | 135 | 149 | ||||||
JPMorgan Chase Bank NA (3-month USD-LIBOR + 0.34%) 2.926% 20215 | 300 | 300 | ||||||
Other securities | 3,886 | |||||||
4,592 |
American Funds Insurance Series | 83 |
Global Balanced Fund
Bonds, notes & other debt instruments(continued) | Principal amount (000) | Value (000) | ||||||
Corporate bonds & notes (continued) | ||||||||
Health care 0.79% | ||||||||
AstraZeneca PLC 2.38%–3.50% 2022–2023 | $ | 260 | $ | 268 | ||||
Humana Inc. 3.15% 2022 | 100 | 102 | ||||||
Other securities | 2,910 | |||||||
3,280 | ||||||||
Consumer staples 0.50% | ||||||||
Altria Group, Inc. 2.63%–5.80% 2020–2039 | 225 | 241 | ||||||
Altria Group, Inc. 1.00%–2.20% 2023–2027 | € | 280 | 332 | |||||
British American Tobacco PLC 3.56%–4.39% 2027–2037 | $ | 185 | 181 | |||||
Philip Morris International Inc. 2.00%–2.90% 2020–2022 | 170 | 171 | ||||||
Reynolds American Inc. 4.00%–4.45% 2022–2025 | 120 | 126 | ||||||
Other securities | 1,039 | |||||||
2,090 | ||||||||
Information technology 0.26% | ||||||||
Broadcom Ltd. 3.875% 2027 | 190 | 186 | ||||||
Microsoft Corp. 2.40%–3.30% 2026–2027 | 577 | 596 | ||||||
Other securities | 293 | |||||||
1,075 | ||||||||
Other 2.50% | ||||||||
Other securities | 10,356 | |||||||
Total corporate bonds & notes | 21,393 | |||||||
Mortgage-backed obligations 2.47% | ||||||||
Federal agency mortgage-backed obligations 2.01% | ||||||||
Fannie Mae Pool #CA3129 4.00% 20496 | 3,115 | 3,235 | ||||||
Fannie Mae 3.50%–4.00% 20496 | 2,893 | 2,996 | ||||||
Other securities | 2,143 | |||||||
8,374 | ||||||||
Other 0.46% | ||||||||
Other securities | 1,900 | |||||||
Total mortgage-backed obligations | 10,274 | |||||||
Total bonds, notes & other debt instruments (cost: $143,081,000) | 146,871 | |||||||
Short-term securities 5.38% | Shares | |||||||
Money market investments 5.16% | ||||||||
Capital Group Central Cash Fund | 214,395 | 21,438 | ||||||
Principal amount (000) | ||||||||
Other short-term securities 0.22% | ||||||||
Other securities | 896 | |||||||
Total short-term securities (cost: $22,342,000) | 22,334 | |||||||
Total investment securities 99.88% (cost: $359,712,000) | 415,057 | |||||||
Other assets less liabilities 0.12% | 511 | |||||||
Net assets 100.00% | $ | 415,568 |
84 | American Funds Insurance Series |
Global Balanced Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” also includes securities (with an aggregate value of $9,220,000, which represented 2.22% of the net assets of the fund) which were acquired in transactions exempt from registration under Rule 144A of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
Futures contracts
Number of | Notional amount | 7 | Value at 6/30/2019 | 8 | Unrealized appreciation at 6/30/2019 | ||||||||||||||
Contracts | Type | contracts | Expiration | (000) | (000) | (000) | |||||||||||||
5 Year U.S. Treasury Note Futures | Long | 54 | October 2019 | $ | 5,400 | $ | 6,380 | $ | 89 |
Forward currency contracts
Contract amount | Unrealized (depreciation) appreciation | ||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 6/30/2019 (000) | |||||||
GBP1,100 | USD1,403 | Morgan Stanley | 7/8/2019 | $ | (5 | ) | |||||
USD705 | GBP560 | Morgan Stanley | 7/8/2019 | (6 | ) | ||||||
JPY25,675 | USD238 | HSBC Bank | 7/10/2019 | — | 9 | ||||||
THB8,500 | USD276 | HSBC Bank | 7/12/2019 | 1 | |||||||
USD272 | THB8,500 | HSBC Bank | 7/12/2019 | (6 | ) | ||||||
USD823 | ILS2,960 | Goldman Sachs | 7/12/2019 | (7 | ) | ||||||
INR51,625 | USD742 | Citibank | 7/15/2019 | 4 | |||||||
INR675 | USD10 | JPMorgan Chase | 7/15/2019 | — | 9 | ||||||
USD164 | EUR145 | JPMorgan Chase | 7/15/2019 | (2 | ) | ||||||
USD737 | INR52,300 | Standard Chartered Bank | 7/15/2019 | (19 | ) | ||||||
USD168 | ILS600 | HSBC Bank | 7/16/2019 | — | 9 | ||||||
EUR1,541 | USD1,748 | JPMorgan Chase | 7/17/2019 | 6 | |||||||
GBP726 | USD922 | JPMorgan Chase | 7/17/2019 | 1 | |||||||
USD486 | INR33,900 | Standard Chartered Bank | 7/18/2019 | (3 | ) | ||||||
USD185 | INR12,900 | Standard Chartered Bank | 7/19/2019 | (2 | ) | ||||||
USD333 | CNH2,310 | Bank of America, N.A. | 7/19/2019 | (3 | ) | ||||||
USD629 | BRL2,450 | Citibank | 7/19/2019 | (8 | ) | ||||||
EUR1,130 | USD1,278 | Morgan Stanley | 7/22/2019 | 10 | |||||||
CAD1,650 | USD1,251 | Citibank | 7/22/2019 | 9 | |||||||
USD119 | INR8,300 | Goldman Sachs | 7/22/2019 | (1 | ) | ||||||
EUR1,117 | USD1,259 | Goldman Sachs | 7/23/2019 | 14 | |||||||
CLP1,033,000 | USD1,512 | JPMorgan Chase | 7/24/2019 | 13 | |||||||
USD598 | CNH4,100 | Standard Chartered Bank | 7/25/2019 | 2 | |||||||
USD565 | JPY61,000 | JPMorgan Chase | 7/25/2019 | (2 | ) | ||||||
USD337 | EUR300 | JPMorgan Chase | 7/25/2019 | (5 | ) | ||||||
USD509 | THB15,900 | HSBC Bank | 7/25/2019 | (10 | ) | ||||||
EUR744 | USD843 | Bank of America, N.A. | 7/26/2019 | 5 | |||||||
SEK11,700 | USD1,260 | Citibank | 7/26/2019 | 3 | |||||||
CAD1,490 | USD1,134 | HSBC Bank | 7/29/2019 | 5 | |||||||
NOK4,300 | USD491 | HSBC Bank | 8/22/2019 | 14 | |||||||
NOK2,100 | USD243 | Bank of America, N.A. | 8/22/2019 | 4 | |||||||
USD1,482 | CNH10,300 | HSBC Bank | 9/18/2019 | (16 | ) | ||||||
USD652 | BRL2,510 | HSBC Bank | 12/18/2019 | 9 | |||||||
USD156 | BRL600 | JPMorgan Chase | 12/18/2019 | 2 | |||||||
BRL90 | USD23 | JPMorgan Chase | 12/18/2019 | — | 9 | ||||||
BRL50 | USD13 | HSBC Bank | 12/18/2019 | — | 9 | ||||||
BRL20 | USD5 | Citibank | 12/18/2019 | — | 9 | ||||||
BRL1,320 | USD339 | Standard Chartered Bank | 12/18/2019 | — | 9 | ||||||
BRL175 | USD46 | JPMorgan Chase | 12/18/2019 | (1 | ) | ||||||
BRL970 | USD249 | Bank of New York Mellon | 12/18/2019 | (1 | ) |
American Funds Insurance Series | 85 |
Global Balanced Fund
Forward currency contracts(continued)
Contract amount | Unrealized (depreciation) appreciation | ||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 6/30/2019 (000) | |||||||
BRL250 | USD65 | HSBC Bank | 12/20/2019 | $ | (1 | ) | |||||
USD62 | BRL250 | HSBC Bank | 12/20/2019 | (2 | ) | ||||||
$ | 2 |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments/ receipts (000) | Unrealized appreciation at 6/30/2019 (000) | |||||||||||||||
(0.0385)% | EONIA | 12/4/2021 | € | 4,300 | $ | 51 | $ | — | $ | 51 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Security did not produce income during the last 12 months. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $77,000, which represented .02% of the net assets of the fund. |
4 | Step bond; coupon rate may change at a later date. |
5 | Coupon rate may change periodically. |
6 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
9 | Amount less than one thousand. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
BRL = Brazilian reais
CAD = Canadian dollars
CLP = Chilean pesos
CNH = Chinese yuan renminbi
EONIA = Euro Overnight Index Average
EUR/€ = Euros
GBP = British pounds
ILS = Israeli shekels
INR = Indian rupees
JPY/¥ = Japanese yen
LIBOR = London Interbank Offered Rate
NOK = Norwegian kroner
SEK = Swedish kronor
THB = Thai baht
USD/$ = U.S. dollars
See notes to financial statements.
86 | American Funds Insurance Series |
Bond Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Bonds, notes & other debt instruments 97.86% | Principal amount (000) | Value (000) | ||||||
Corporate bonds & notes 33.38% | ||||||||
Financials 7.76% | ||||||||
Intesa Sanpaolo SpA 5.017% 20241 | $ | 71,265 | $ | 71,473 | ||||
Other securities | 739,022 | |||||||
810,495 | ||||||||
Health care 6.03% | ||||||||
Teva Pharmaceutical Finance Co. BV 2.80% 2023 | 80,064 | 69,656 | ||||||
Teva Pharmaceutical Finance Co. BV 2.20%–6.75% 2021–2046 | 149,049 | 121,795 | ||||||
Other securities | 438,516 | |||||||
629,967 | ||||||||
Energy 4.52% | ||||||||
Petróleos Mexicanos 7.47% 2026 | MXN | 295,000 | 12,220 | |||||
Petróleos Mexicanos 4.63%–6.88% 2022–2048 | $ | 127,082 | 126,235 | |||||
Other securities | 333,016 | |||||||
471,471 | ||||||||
Utilities 3.54% | ||||||||
Other securities | 369,910 | |||||||
Consumer discretionary 3.47% | ||||||||
General Motors Co. 4.35%–6.75% 2025–2049 | 31,152 | 31,824 | ||||||
General Motors Financial Co. 3.15%–4.20% 2020–2024 | 88,686 | 90,228 | ||||||
Other securities | 240,241 | |||||||
362,293 | ||||||||
Consumer staples 3.29% | ||||||||
Other securities | 342,911 | |||||||
Information technology 1.44% | ||||||||
Broadcom Inc. 3.63%–4.75% 2024–20291 | 78,813 | 80,209 | ||||||
Broadcom Ltd. 3.00%–3.88% 2022–2027 | 41,289 | 41,278 | ||||||
Other securities | 28,922 | |||||||
150,409 | ||||||||
Communication services 1.34% | ||||||||
Other securities | 140,150 | |||||||
Industrials 1.25% | ||||||||
Other securities | 130,721 | |||||||
Other 0.74% | ||||||||
Other securities | 76,647 | |||||||
Total corporate bonds & notes | 3,484,974 | |||||||
U.S. Treasury bonds & notes 28.77% | ||||||||
U.S. Treasury 24.04% | ||||||||
U.S. Treasury 2.25% 2021 | 100,300 | 101,133 | ||||||
U.S. Treasury 2.50% 2023 | 57,200 | 58,802 | ||||||
U.S. Treasury 2.625% 2023 | 70,000 | 72,641 | ||||||
U.S. Treasury 2.75% 2023 | 173,600 | 180,131 | ||||||
U.S. Treasury 2.00% 2024 | 76,627 | 77,537 | ||||||
U.S. Treasury 2.125% 2024 | 250,100 | 254,272 | ||||||
U.S. Treasury 2.125% 20242 | 72,100 | 73,331 | ||||||
U.S. Treasury 2.125% 2024 | 72,100 | 73,328 | ||||||
U.S. Treasury 2.25% 2024 | 65,000 | 66,420 | ||||||
U.S. Treasury 2.75% 2025 | 132,000 | 138,692 |
American Funds Insurance Series | 87 |
Bond Fund
Bonds, notes & other debt instruments(continued) | Principal amount (000) | Value (000) | ||||||
U.S. Treasury bonds & notes (continued) | ||||||||
U.S. Treasury (continued) | ||||||||
U.S. Treasury 2.875% 20252 | $ | 96,200 | $ | 101,972 | ||||
U.S. Treasury 2.875% 2025 | 72,100 | 76,308 | ||||||
U.S. Treasury 2.25% 20262 | 198,389 | 203,287 | ||||||
U.S. Treasury 2.375% 2026 | 67,586 | 69,796 | ||||||
U.S. Treasury 2.25% 20272 | 120,200 | 123,007 | ||||||
U.S. Treasury 2.25% 20272 | 72,100 | 73,858 | ||||||
U.S. Treasury 2.875% 2028 | 48,100 | 51,670 | ||||||
U.S. Treasury 2.875% 2049 | 85,454 | 91,583 | ||||||
U.S. Treasury 3.00% 20492 | 332,286 | 364,601 | ||||||
U.S. Treasury 1.75%–8.75% 2020–20292 | 243,134 | 257,004 | ||||||
2,509,373 | ||||||||
U.S. Treasury inflation-protected securities 4.73% | ||||||||
U.S. Treasury Inflation-Protected Security 0.375% 20253 | 54,975 | 55,644 | ||||||
U.S. Treasury Inflation-Protected Security 0.375% 20272,3 | 156,675 | 158,351 | ||||||
U.S. Treasury Inflation-Protected Security 0.50% 20282,3 | 152,451 | 131,785 | ||||||
U.S. Treasury Inflation-Protected Security 0.75% 20282,3 | 72,378 | 75,527 | ||||||
U.S. Treasury Inflation-Protected Security 1.00% 20493 | 68,791 | 72,945 | ||||||
494,252 | ||||||||
Total U.S. Treasury bonds & notes | 3,003,625 | |||||||
Mortgage-backed obligations 26.15% | ||||||||
Federal agency mortgage-backed obligations 26.02% | ||||||||
Fannie Mae Pool #MA3210 3.50% 20474 | 89,746 | 92,447 | ||||||
Fannie Mae Pool #CA0858 3.50% 20474 | 63,102 | 64,928 | ||||||
Fannie Mae Pool #MA3495 4.00% 20484 | 98,127 | 101,419 | ||||||
Fannie Mae Pool #CA3084 4.00% 20494 | 55,282 | 57,416 | ||||||
Fannie Mae 3.00%–9.18% 2023–20494,5 | 255,391 | 264,897 | ||||||
Freddie Mac 3.50% 20474 | 106,865 | 110,183 | ||||||
Freddie Mac 3.50% 20474 | 59,630 | 61,445 | ||||||
Freddie Mac 4.00% 20484 | 58,441 | 60,493 | ||||||
Freddie Mac Pool #G08799 3.00% 20484 | 61,148 | 61,734 | ||||||
Freddie Mac 3.00%–5.50% 2033–20494 | 232,108 | 240,369 | ||||||
Government National Mortgage Assn. 4.50% 20494 | 81,214 | 84,946 | ||||||
Government National Mortgage Assn. 5.00% 20494 | 85,429 | 89,745 | ||||||
Government National Mortgage Assn. Pool #MA5876 4.00% 20494 | 118,347 | 122,793 | ||||||
Government National Mortgage Assn. Pool #MA5932 4.50% 20494 | 49,883 | 52,303 | ||||||
Government National Mortgage Assn. 4.00%–5.00% 2048–20494,6 | 168,519 | 176,477 | ||||||
Uniform Mortgage-Backed Security 3.00% 20344 | 325,469 | 331,802 | ||||||
Uniform Mortgage-Backed Security 3.50% 20344 | 575 | 594 | ||||||
Uniform Mortgage-Backed Security 3.00% 20494 | 132,220 | 133,298 | ||||||
Uniform Mortgage-Backed Security 3.50% 20494 | 121,550 | 124,237 | ||||||
Uniform Mortgage-Backed Security 3.50% 20494,6 | 69,197 | 70,709 | ||||||
Uniform Mortgage-Backed Security 4.00% 20494 | 167,704 | 173,302 | ||||||
Uniform Mortgage-Backed Security 4.50% 20494 | 140,648 | 146,980 | ||||||
Uniform Mortgage-Backed Security 5.00% 20494 | 49,800 | 52,637 | ||||||
Other securities | 41,331 | |||||||
2,716,485 | ||||||||
Other 0.13% | ||||||||
Other securities | 13,317 | |||||||
Total mortgage-backed obligations | 2,729,802 |
88 | American Funds Insurance Series |
Bond Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
Bonds & notes of governments & government agencies outside the U.S. 5.58% | ||||||||
Italy (Republic of) 0.95%–2.10% 2023–2028 | € | 125,027 | $ | 143,579 | ||||
Japan, Series 20, 0.10% 20253 | ¥ | 11,441,250 | 109,583 | |||||
United Mexican States, Series M, 6.50% 2021 | MXN | 3,132,700 | 160,275 | |||||
United Mexican States, Series M, 5.75% 2026 | 527,500 | 25,014 | ||||||
United Mexican States 3.60% 2025 | $ | 11,500 | 11,793 | |||||
Other securities | 131,669 | |||||||
581,913 | ||||||||
Municipals 1.96% | ||||||||
Illinois 1.73% | ||||||||
G.O. Bonds, Pension Funding, Series 2003, 4.95% 2023 | 23,616 | 24,724 | ||||||
G.O. Bonds, Pension Funding, Series 2003, 5.10% 2033 | 90,885 | 95,786 | ||||||
G.O. Bonds, Series 2013-B, 3.65% 2020 | 1,825 | 1,835 | ||||||
G.O. Bonds, Series 2013-B, 4.11% 2022 | 750 | 765 | ||||||
G.O. Bonds, Series 2013-B, 4.31% 2023 | 2,125 | 2,172 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.65% 2020 | 250 | 255 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.85% 2022 | 2,370 | 2,530 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-2, 5.95% 2023 | 3,210 | 3,460 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-3, 5.727% 2020 | 2,400 | 2,452 | ||||||
G.O. Bonds, Taxable Build America Bonds, Series 2010-5, 6.20% 2021 | 5,838 | 6,021 | ||||||
Other securities | 40,428 | |||||||
180,428 | ||||||||
Other 0.23% | ||||||||
Other securities | 24,030 | |||||||
Total municipals | 204,458 | |||||||
Asset-backed obligations 1.90% | ||||||||
Other securities | 198,442 | |||||||
Federal agency bonds & notes 0.12% | ||||||||
Fannie Mae 2.125% 2026 | 11,910 | 12,020 | ||||||
Total bonds, notes & other debt instruments (cost: $9,922,830,000) | 10,215,234 | |||||||
Common stocks 0.00% | Shares | |||||||
Other 0.00% | ||||||||
Other securities | 228 | |||||||
Total common stocks (cost: $605,000) | 228 | |||||||
Rights & warrants 0.00% | ||||||||
Energy 0.00% | ||||||||
Other securities | 31 | |||||||
Total rights & warrants (cost: $16,000) | 31 | |||||||
Short-term securities 10.42% | ||||||||
Money market investments 9.91% | ||||||||
Capital Group Central Cash Fund | 10,350,250 | 1,034,921 |
American Funds Insurance Series | 89 |
Bond Fund
Short-term securities (continued) | Principal amount (000) | Value (000) | ||||||
Other short-term securities 0.51% | ||||||||
Italian Treasury Bill 0.53% due 8/14/2019 | € | 46,400 | $ | 52,775 | ||||
Total short-term securities (cost: $1,088,623,000) | 1,087,696 | |||||||
Total investment securities 108.28% (cost: $11,012,074,000) | 11,303,189 | |||||||
Other assets less liabilities (8.28)% | (863,942 | ) | ||||||
Net assets 100.00% | $ | 10,439,247 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $5,406,000, which represented .05% of the net assets of the fund. “Other securities” also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $688,000, which represented .01% of the net assets of the fund.
Futures contracts
Number of | Notional amount | 7 | Value at 6/30/2019 | 8 | Unrealized appreciation (depreciation) at 6/30/2019 | ||||||||||||||
Contracts | Type | contracts | Expiration | (000) | (000) | (000) | |||||||||||||
90 Day Euro Dollar Futures | Long | 5,350 | September 2019 | $ | 1,337,500 | $ | 1,310,683 | $ | 1,392 | ||||||||||
90 Day Euro Dollar Futures | Short | 5,350 | September 2020 | (1,337,500 | ) | (1,316,702 | ) | (815 | ) | ||||||||||
2 Year U.S. Treasury Note Futures | Long | 16,013 | October 2019 | 3,202,600 | 3,445,672 | 24,185 | |||||||||||||
5 Year Euro-Bobl Futures | Short | 1,840 | September 2019 | € | (184,000 | ) | (281,284 | ) | (1,006 | ) | |||||||||
5 Year U.S. Treasury Note Futures | Long | 12,439 | October 2019 | $ | 1,243,900 | 1,469,746 | 12,843 | ||||||||||||
10 Year Euro-Bund Futures | Short | 1,572 | September 2019 | € | (157,200 | ) | (308,776 | ) | (3,162 | ) | |||||||||
10 Year U.S. Treasury Note Futures | Long | 798 | September 2019 | $ | 79,800 | 102,119 | 1,994 | ||||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 2,081 | September 2019 | (208,100 | ) | (287,438 | ) | (7,156 | ) | ||||||||||
30 Year Euro-Buxl Futures | Long | 270 | September 2019 | € | 27,000 | 62,294 | 2,143 | ||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 973 | September 2019 | $ | 97,300 | 172,768 | 7,572 | ||||||||||||
$ | 37,990 |
Forward currency contracts
Unrealized | |||||||||||
(depreciation) | |||||||||||
Contract amount | appreciation | ||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 6/30/2019 (000) | |||||||
USD14,098 | EUR12,500 | Bank of America, N.A. | 7/10/2019 | $ | (131 | ) | |||||
USD120,688 | MXN2,400,000 | Citibank | 7/15/2019 | (3,999 | ) | ||||||
USD61,551 | MXN1,220,000 | Goldman Sachs | 7/16/2019 | (1,821 | ) | ||||||
USD13,045 | MXN252,000 | HSBC Bank | 7/17/2019 | (43 | ) | ||||||
USD67,440 | JPY7,300,000 | Bank of America, N.A. | 7/17/2019 | (372 | ) | ||||||
USD137,941 | EUR121,575 | Bank of America, N.A. | 7/17/2019 | (526 | ) | ||||||
KRW120,000,000 | USD101,502 | Citibank | 7/19/2019 | 2,492 | |||||||
USD13,358 | JPY1,445,000 | Citibank | 7/19/2019 | (67 | ) | ||||||
USD4,048 | EUR3,580 | Morgan Stanley | 7/22/2019 | (31 | ) | ||||||
USD31,777 | JPY3,430,000 | JPMorgan Chase | 7/25/2019 | (106 | ) | ||||||
USD13,450 | EUR11,970 | JPMorgan Chase | 7/25/2019 | (192 | ) |
90 | American Funds Insurance Series |
Bond Fund
Contract amount | Unrealized (depreciation) appreciation | ||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 6/30/2019 (000) | |||||||
USD42,575 | EUR37,600 | Morgan Stanley | 7/25/2019 | $ | (279 | ) | |||||
USD54,526 | EUR46,000 | Bank of America, N.A. | 8/14/2019 | 2,014 | |||||||
$ | (3,061 | ) |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments/ receipts (000) | Unrealized appreciation (depreciation) at 6/30/2019 (000) | |||||||||||||
U.S. EFFR | 2.0275% | 9/18/2019 | $ | 6,105,900 | $ | 10 | $ | — | $ | 10 | |||||||||
3-month USD-LIBOR | 2.18075% | 3/29/2024 | 31,600 | (627 | ) | — | (627 | ) | |||||||||||
3-month USD-LIBOR | 2.194% | 3/29/2024 | 31,900 | (652 | ) | — | (652 | ) | |||||||||||
3-month USD-LIBOR | 2.21875% | 3/29/2024 | 33,500 | (723 | ) | — | (723 | ) | |||||||||||
3-month USD-LIBOR | 2.3105% | 5/3/2024 | 275,590 | (7,133 | ) | — | (7,133 | ) | |||||||||||
6-month EURIBOR | 0.9852% | 10/17/2024 | € | 25,000 | (1,821 | ) | — | (1,821 | ) | ||||||||||
6-month JPY-LIBOR | 0.0875% | 3/10/2026 | ¥ | 11,100,000 | (1,169 | ) | — | (1,169 | ) | ||||||||||
6-month JPY-LIBOR | 0.58295% | 3/23/2046 | 2,000,000 | (1,059 | ) | — | (1,059 | ) | |||||||||||
0.64355% | 6-month JPY-LIBOR | 4/27/2046 | 2,000,000 | 1,356 | — | 1,356 | |||||||||||||
$ | — | $ | (11,818 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $1,029,365,000, which represented 9.86% of the net assets of the fund. |
2 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $40,793,000, which represented .39% of the net assets of the fund. |
3 | Index-linked bond whose principal amount moves with a government price index. |
4 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
5 | Coupon rate may change periodically. |
6 | Purchased on a TBA basis. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbols
EFFR = Effective Federal Funds Rate
EUR/€ = Euros
EURIBOR = Euro Interbank Offered Rate
G.O. = General Obligation
JPY/¥ = Japanese yen
KRW = South Korean won
LIBOR = London Interbank Offered Rate
MXN = Mexican pesos
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 91 |
Global Bond Fund | |
Investment portfolioJune 30, 2019 | unaudited |
Bonds, notes & other debt instruments 92.18% | Principal amount (000) | Value (000) | ||||||
Euros 15.81% | ||||||||
Greece (Hellenic Republic of) 3.45% 2024 | € | 8,400 | $ | 10,504 | ||||
Greece (Hellenic Republic of) 3.375% 2025 | 9,060 | 11,313 | ||||||
Greece (Hellenic Republic of) 3.75% 2028 | 8,409 | 10,633 | ||||||
Greece (Hellenic Republic of) 3.875% 2029 | 20,475 | 26,152 | ||||||
Greece (Hellenic Republic of) 3.90%–4.20% 2033–2042 | 11,144 | 14,361 | ||||||
Israel (State of) 1.50% 2029 | 1,600 | 1,961 | ||||||
Italy (Republic of) 1.35% 2022 | 3,225 | 3,732 | ||||||
Italy (Republic of) 0.10% 20231 | 23,422 | 26,058 | ||||||
Italy (Republic of) 1.85% 2024 | 18,500 | 21,630 | ||||||
Italy (Republic of) 2.80% 2028 | 31,305 | 38,212 | ||||||
Italy (Republic of) 3.10% 2040 | 11,800 | 14,097 | ||||||
Romania 4.625% 2049 | 11,663 | 16,063 | ||||||
Romania 2.88%–4.13% 2029–2039 | 13,258 | 16,789 | ||||||
Spain (Kingdom of) 1.45% 2027 | 12,300 | 15,393 | ||||||
Spain (Kingdom of) 1.45% 2029 | 9,390 | 11,767 | ||||||
Other securities | 102,696 | |||||||
341,361 | ||||||||
Japanese yen 12.81% | ||||||||
Japan, Series 395, 0.10% 2020 | ¥ | 3,702,000 | 34,491 | |||||
Japan, Series 19, 0.10% 20241 | 2,431,026 | 23,227 | ||||||
Japan, Series 18, 0.10% 20241 | 1,962,616 | 18,687 | ||||||
Japan, Series 346, 0.10% 2027 | 3,125,000 | 29,797 | ||||||
Japan, Series 23, 0.10% 20281 | 1,996,522 | 19,340 | ||||||
Japan, Series 24, 0.10% 20291 | 1,611,175 | 15,616 | ||||||
Japan, Series 116, 2.20% 2030 | 1,735,000 | 20,128 | ||||||
Japan, Series 145, 1.70% 2033 | 2,210,000 | 25,311 | ||||||
Japan, Series 42, 1.70% 2044 | 911,900 | 11,254 | ||||||
Japan, Series 62, 0.50% 2049 | 1,179,000 | 11,329 | ||||||
Japan 0.10%–2.30% 2020–20481 | 6,751,063 | 67,504 | ||||||
276,684 | ||||||||
Chinese yuan renminbi 3.12% | ||||||||
China Development Bank Corp., Series 1814, 4.15% 2025 | CNY | 70,000 | 10,452 | |||||
China Development Bank Corp., Series 1806, 4.73% 2025 | 102,000 | 15,699 | ||||||
China Development Bank Corp., Series 1805, 4.04% 2028 | 33,000 | 4,881 | ||||||
China Development Bank Corp., Series 1805, 4.88% 2028 | 70,200 | 11,023 | ||||||
China Development Bank Corp., Series 1905, 3.48% 2029 | 177,300 | 25,300 | ||||||
67,355 | ||||||||
Mexican pesos 3.10% | ||||||||
Petróleos Mexicanos 7.19%–7.47% 2024–2026 | MXN | 99,000 | 4,116 | |||||
United Mexican States, Series M, 5.75% 2026 | 277,500 | 13,159 | ||||||
United Mexican States, Series M, 7.50% 2027 | 696,000 | 36,227 | ||||||
United Mexican States 6.50%–8.00% 2020–2022 | 263,600 | 13,524 | ||||||
67,026 | ||||||||
Danish kroner 2.12% | ||||||||
Nykredit Realkredit AS, Series 01E, 1.50% 20372 | DKr | 90,220 | 14,267 | |||||
Nykredit Realkredit AS, Series 01E, 1.50% 20402 | 167,906 | 26,449 | ||||||
Nykredit Realkredit AS 2.00%–2.50% 2037–20472 | 31,675 | 5,070 | ||||||
45,786 | ||||||||
Indian rupees 1.84% | ||||||||
India (Republic of) 6.79%–8.83% 2023–2030 | INR | 2,408,770 | 35,797 | |||||
Other securities | 3,893 | |||||||
39,690 |
92 | American Funds Insurance Series |
Global Bond Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
Norwegian kroner 1.64% | ||||||||
Norway (Kingdom of) 3.75% 2021 | NKr | 145,721 | $ | 17,884 | ||||
Norway (Kingdom of) 2.00% 2023 | 99,579 | 12,016 | ||||||
Norway (Kingdom of) 3.00% 2024 | 43,200 | �� | 5,464 | |||||
35,364 | ||||||||
British pounds 1.28% | ||||||||
United Kingdom 1.50%–4.25% 2023–2047 | £ | 17,380 | 26,004 | |||||
Other securities | 1,639 | |||||||
27,643 | ||||||||
South African rand 1.26% | ||||||||
South Africa (Republic of) 6.50%–8.75% 2041–2048 | ZAR | 458,675 | 27,252 | |||||
Thai baht 1.06% | ||||||||
Thailand (Kingdom of) 2.13%–3.30% 2026–2038 | THB | 658,750 | 22,820 | |||||
Indonesian rupiah 0.99% | ||||||||
Indonesia (Republic of), Series 78, 8.25% 2029 | IDR | 143,588,000 | 10,799 | |||||
Indonesia (Republic of) 6.13%–8.38% 2028–2034 | 146,142,000 | 10,497 | ||||||
21,296 | ||||||||
Israeli shekels 0.95% | ||||||||
Israel (State of) 2.00% 2027 | ILS | 28,300 | 8,297 | |||||
Israel (State of) 5.50% 2042 | 29,300 | 12,331 | ||||||
20,628 | ||||||||
Polish zloty 0.95% | ||||||||
Poland (Republic of), Series 1021, 5.75% 2021 | PLN | 45,080 | 13,216 | |||||
Poland (Republic of), Series 0922, 5.75% 2022 | 24,500 | 7,378 | ||||||
20,594 | ||||||||
Colombian pesos 0.53% | ||||||||
Colombia (Republic of), Series B, 6.25% 2025 | COP | 35,436,000 | 11,464 | |||||
U.S. dollars 41.07% | ||||||||
Fannie Mae Pool #MA3692 3.50% 20492 | $ | 22,180 | 22,706 | |||||
Fannie Mae Pool #CA3084 4.00% 20492 | 34,920 | 36,268 | ||||||
Fannie Mae Pool #CA3129 4.00% 20492 | 34,051 | 35,365 | ||||||
Fannie Mae 2.18%–4.00% 2022–20492 | 13,253 | 13,678 | ||||||
Government National Mortgage Assn. Pool #MA5987 4.50% 20492 | 16,360 | 17,108 | ||||||
Indonesia (Republic of) 3.75%–4.75% 2022–2026 | 4,610 | 4,955 | ||||||
Petróleos Mexicanos 4.88%–6.35% 2022–2048 | 1,177 | 1,049 | ||||||
Poland (Republic of) 3.25%–4.00% 2024–2026 | 5,570 | 5,916 | ||||||
PT Indonesia Asahan Aluminium Tbk 5.23%–5.71% 2021–20233 | 1,405 | 1,499 | ||||||
South Africa (Republic of) 5.50% 2020 | 1,900 | 1,933 | ||||||
Statoil ASA 3.70%–4.25% 2024–2041 | 2,950 | 3,192 | ||||||
U.S. Treasury 2.25% 2024 | 11,000 | 11,250 | ||||||
U.S. Treasury 2.75% 2025 | 10,140 | 10,673 | ||||||
U.S. Treasury 2.75% 20284 | 16,900 | 17,965 | ||||||
U.S. Treasury 2.875% 20284 | 19,850 | 21,308 | ||||||
U.S. Treasury 2.75% 20474 | 13,000 | 13,557 | ||||||
U.S. Treasury 3.00% 20494 | 9,680 | 10,621 | ||||||
U.S. Treasury 1.88%–3.00% 2020–20494 | 61,475 | 63,903 | ||||||
U.S. Treasury Inflation-Protected Security 0.625% 20241 | 23,959 | 24,398 |
American Funds Insurance Series | 93 |
Global Bond Fund
Bonds, notes & other debt instruments(continued) | Principal amount (000) | Value (000) | ||||||
U.S. dollars (continued) | ||||||||
U.S. Treasury Inflation-Protected Security 0.875% 20291 | $ | 73,149 | $ | 77,117 | ||||
U.S. Treasury Inflation-Protected Securities 0.13%–2.38% 2024–20441,4 | 24,163 | 25,186 | ||||||
Other securities | 467,232 | |||||||
886,879 | ||||||||
Other 3.65% | ||||||||
Other securities | 78,758 | |||||||
Total bonds, notes & other debt instruments (cost: $1,927,787,000) | 1,990,600 | |||||||
Convertible bonds 0.00% | ||||||||
U.S. dollars 0.00% | ||||||||
Other securities | 102 | |||||||
Total convertible bonds (cost: $110,000) | 102 | |||||||
Convertible stocks 0.04% | Shares | |||||||
U.S. dollars 0.04% | ||||||||
Other securities | 847 | |||||||
Total convertible stocks (cost: $816,000) | 847 | |||||||
Common stocks 0.03% | ||||||||
U.S. dollars 0.03% | ||||||||
Other securities | 671 | |||||||
Total common stocks (cost: $1,862,000) | 671 | |||||||
Rights & warrants 0.00% | ||||||||
U.S. dollars 0.00% | ||||||||
Other securities | 17 | |||||||
Total rights & warrants (cost: $8,000) | 17 | |||||||
Short-term securities 7.11% | Principal amount (000) | |||||||
Other short-term securities 7.10% | ||||||||
Greek Treasury Bill 0.41% due 12/6/2019 | € | 7,260 | 8,243 | |||||
Japanese Treasury Bill (0.15)% due 8/19/2019 | ¥ | 11,500,000 | 106,685 | |||||
Nigerian Treasury Bills 12.34%–14.31% due 8/1/2019–3/5/2020 | NGN | 6,627,000 | 17,608 | |||||
United Kingdom Treasury Bills 0.72%–0.72% due 10/14/2019–10/21/2019 | £ | 8,700 | 11,025 | |||||
Other securities | 9,762 | |||||||
153,323 | ||||||||
Shares | ||||||||
Money market investments 0.01% | ||||||||
Other securities | 94 | |||||||
Total short-term securities (cost: $151,675,000) | 153,417 | |||||||
Total investment securities 99.36% (cost: $2,082,258,000) | 2,145,654 | |||||||
Other assets less liabilities 0.64% | 13,727 | |||||||
Net assets 100.00% | $ | 2,159,381 |
94 | American Funds Insurance Series |
Global Bond Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $1,939,000, which represented .09% of the net assets of the fund. “Other securities” also includes loan participations and assignments, which may be subject to legal or contractual restrictions on resale. The total value of all such loans was $4,632,000, which represented .21% of the net assets of the fund. Some securities in “Other securities” (with an aggregate value of $151,000, an aggregate cost of $116,000, and which represented .01% of the net assets of the fund) were acquired from 8/31/2018 to 11/16/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 5 | Value at 6/30/2019 (000) | 6 | Unrealized appreciation (depreciation) at 6/30/2019 (000) | |||||||||||
90 Day Euro Dollar Futures | Long | 1,113 | September 2019 | $ | 278,250 | $ | 272,671 | $ | 249 | ||||||||||
90 Day Euro Dollar Futures | Short | 1,113 | September 2020 | (278,250 | ) | (273,923 | ) | (183 | ) | ||||||||||
2 Year U.S. Treasury Note Futures | Short | 803 | October 2019 | (160,600 | ) | (172,789 | ) | (460 | ) | ||||||||||
5 Year U.S. Treasury Note Futures | Long | 982 | October 2019 | 98,200 | 116,029 | 1,502 | |||||||||||||
10 Year Euro-Bund Futures | Short | 154 | September 2019 | € | (15,400 | ) | (30,249 | ) | (336 | ) | |||||||||
10 Year U.S. Treasury Note Futures | Long | 202 | September 2019 | $ | 20,200 | 25,850 | 609 | ||||||||||||
20 Year U.S. Treasury Bond Futures | Long | 98 | September 2019 | 9,800 | 15,248 | 45 | |||||||||||||
30 Year Euro-Buxl Futures | Long | 42 | September 2019 | € | 4,200 | 9,690 | 333 | ||||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Short | 55 | September 2019 | $ | (5,500 | ) | (9,766 | ) | (445 | ) | |||||||||
$ | 1,314 |
Forward currency contracts
Unrealized | |||||||||||
Contract amount | (depreciation) appreciation | ||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 6/30/2019 (000) | |||||||
GBP18,800 | USD23,982 | Morgan Stanley | 7/8/2019 | $ | (95 | ) | |||||
USD10,991 | GBP8,725 | Morgan Stanley | 7/8/2019 | (95 | ) | ||||||
EUR3,165 | USD3,570 | Bank of America, N.A. | 7/10/2019 | 33 | |||||||
JPY764,987 | USD7,103 | HSBC Bank | 7/10/2019 | — | 7 | ||||||
USD1,295 | MXN25,590 | Morgan Stanley | 7/10/2019 | (36 | ) | ||||||
AUD3,740 | USD2,561 | Goldman Sachs | 7/12/2019 | 66 | |||||||
THB77,700 | USD2,526 | HSBC Bank | 7/12/2019 | 8 | |||||||
USD2,618 | AUD3,740 | Citibank | 7/12/2019 | (9 | ) | ||||||
GBP2,800 | USD3,569 | JPMorgan Chase | 7/12/2019 | (11 | ) | ||||||
USD2,482 | THB77,700 | HSBC Bank | 7/12/2019 | (52 | ) | ||||||
USD10,891 | ILS39,170 | Goldman Sachs | 7/12/2019 | (95 | ) | ||||||
EUR23,978 | USD27,064 | JPMorgan Chase | 7/15/2019 | 240 | |||||||
INR818,000 | USD11,758 | Citibank | 7/15/2019 | 67 | |||||||
USD7,058 | CNH48,920 | HSBC Bank | 7/15/2019 | (62 | ) | ||||||
USD11,531 | INR818,000 | Standard Chartered Bank | 7/15/2019 | (294 | ) | ||||||
AUD7,600 | USD5,259 | Morgan Stanley | 7/16/2019 | 80 | |||||||
USD5,327 | AUD7,600 | Bank of America, N.A. | 7/16/2019 | (12 | ) | ||||||
USD1,441 | CNH10,000 | JPMorgan Chase | 7/16/2019 | (15 | ) | ||||||
GBP10,629 | USD13,500 | JPMorgan Chase | 7/17/2019 | 13 | |||||||
EUR7,100 | USD8,093 | JPMorgan Chase | 7/17/2019 | (7 | ) | ||||||
USD1,832 | EUR1,615 | Bank of America, N.A. | 7/17/2019 | (7 | ) | ||||||
USD1,758 | EUR1,565 | JPMorgan Chase | 7/17/2019 | (24 | ) | ||||||
USD7,301 | INR508,800 | Standard Chartered Bank | 7/18/2019 | (51 | ) | ||||||
USD2,894 | INR202,000 | Standard Chartered Bank | 7/19/2019 | (25 | ) | ||||||
USD3,571 | CNH24,770 | Bank of America, N.A. | 7/19/2019 | (34 | ) |
American Funds Insurance Series | 95 |
Global Bond Fund
Forward currency contracts(continued)
Unrealized | |||||||||||
Contract amount | (depreciation) appreciation | ||||||||||
Purchases (000) | Sales (000) | Counterparty | Settlement date | at 6/30/2019 (000) | |||||||
USD7,980 | BRL31,080 | Citibank | 7/19/2019 | $ | (98 | ) | |||||
EUR17,600 | USD19,900 | Morgan Stanley | 7/22/2019 | 154 | |||||||
CAD25,310 | USD19,196 | Citibank | 7/22/2019 | 143 | |||||||
USD842 | EUR745 | Morgan Stanley | 7/22/2019 | (7 | ) | ||||||
USD4,298 | INR299,650 | Goldman Sachs | 7/22/2019 | (30 | ) | ||||||
EUR19,079 | USD21,512 | Goldman Sachs | 7/23/2019 | 229 | |||||||
CLP23,504,000 | USD34,402 | JPMorgan Chase | 7/24/2019 | 298 | |||||||
USD351 | EUR310 | Standard Chartered Bank | 7/24/2019 | (2 | ) | ||||||
USD1,392 | EUR1,235 | Goldman Sachs | 7/24/2019 | (15 | ) | ||||||
USD9,027 | ILS32,500 | Standard Chartered Bank | 7/24/2019 | (94 | ) | ||||||
EUR6,815 | USD7,658 | JPMorgan Chase | 7/25/2019 | 109 | |||||||
USD6,287 | CNH43,100 | Standard Chartered Bank | 7/25/2019 | 14 | |||||||
THB32,900 | USD1,070 | HSBC Bank | 7/25/2019 | 4 | |||||||
THB25,000 | USD813 | UBS AG | 7/25/2019 | 3 | |||||||
THB186,700 | USD6,091 | Bank of America, N.A. | 7/25/2019 | 1 | |||||||
USD5,142 | INR360,000 | JPMorgan Chase | 7/25/2019 | (55 | ) | ||||||
USD7,831 | THB244,600 | HSBC Bank | 7/25/2019 | (150 | ) | ||||||
EUR15,210 | USD17,233 | Bank of America, N.A. | 7/26/2019 | 103 | |||||||
USD63,123 | JPY6,779,504 | UBS AG | 7/26/2019 | 101 | |||||||
SEK178,500 | USD19,216 | Citibank | 7/26/2019 | 48 | |||||||
USD2,985 | MYR12,410 | HSBC Bank | 7/26/2019 | (17 | ) | ||||||
CAD24,850 | USD18,908 | HSBC Bank | 7/29/2019 | 83 | |||||||
GBP5,380 | USD6,832 | Bank of America, N.A. | 8/5/2019 | 13 | |||||||
CHF1,000 | USD1,023 | Morgan Stanley | 8/5/2019 | 5 | |||||||
JPY1,669,300 | USD15,583 | Morgan Stanley | 8/5/2019 | (54 | ) | ||||||
USD835 | INR58,300 | JPMorgan Chase | 8/6/2019 | (5 | ) | ||||||
USD27,475 | CNH189,020 | JPMorgan Chase | 8/6/2019 | (33 | ) | ||||||
NOK64,000 | USD7,304 | HSBC Bank | 8/22/2019 | 211 | |||||||
AUD7,840 | USD5,376 | Goldman Sachs | 8/22/2019 | 138 | |||||||
NOK31,900 | USD3,687 | Bank of America, N.A. | 8/22/2019 | 59 | |||||||
USD5,438 | AUD7,840 | Bank of America, N.A. | 8/22/2019 | (76 | ) | ||||||
USD10,804 | EUR9,610 | Goldman Sachs | 8/22/2019 | (173 | ) | ||||||
JPY1,183,000 | USD10,826 | Standard Chartered Bank | 8/28/2019 | 198 | |||||||
USD10,956 | JPY1,183,000 | Morgan Stanley | 8/28/2019 | (67 | ) | ||||||
USD983 | CNH6,800 | Bank of New York Mellon | 9/18/2019 | (6 | ) | ||||||
USD21,661 | CNH150,500 | HSBC Bank | 9/18/2019 | (232 | ) | ||||||
INR226,000 | USD3,224 | HSBC Bank | 9/20/2019 | 16 | |||||||
USD7,136 | INR500,000 | JPMorgan Chase | 9/20/2019 | (30 | ) | ||||||
USD4,892 | THB155,000 | Citibank | 9/20/2019 | (173 | ) | ||||||
USD2,780 | BRL11,000 | Morgan Stanley | 12/16/2019 | (39 | ) | ||||||
BRL11,000 | USD2,923 | Citibank | 12/16/2019 | (104 | ) | ||||||
BRL290 | USD74 | JPMorgan Chase | 12/18/2019 | — | 7 | ||||||
BRL20,200 | USD5,183 | Standard Chartered Bank | 12/18/2019 | (7 | ) | ||||||
BRL14,680 | USD3,771 | Standard Chartered Bank | 12/18/2019 | (10 | ) | ||||||
USD10,781 | BRL43,200 | Citibank | 12/18/2019 | (289 | ) | ||||||
USD2,365 | BRL9,500 | HSBC Bank | 12/20/2019 | (69 | ) | ||||||
BRL9,500 | USD2,535 | HSBC Bank | 12/20/2019 | (101 | ) | ||||||
USD393 | EUR340 | JPMorgan Chase | 3/26/2020 | (2 | ) | ||||||
USD4,553 | EUR3,940 | Bank of America, N.A. | 3/26/2020 | (20 | ) | ||||||
$ | (445 | ) |
96 | American Funds Insurance Series |
Global Bond Fund
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments/ receipts (000) | Unrealized appreciation at 6/30/2019 (000) | ||||||||||||||||
0.175% | 3-month SEK-STIBOR | 3/23/2021 | SKr | 360,800 | $ | 104 | $ | — | $ | 104 | ||||||||||||
0.17% | 3-month SEK-STIBOR | 3/23/2021 | 360,700 | 102 | — | 102 | ||||||||||||||||
0.1675% | 3-month SEK-STIBOR | 3/23/2021 | 360,700 | 101 | — | 101 | ||||||||||||||||
0.1775% | 3-month SEK-STIBOR | 3/23/2021 | 154,400 | 45 | — | 45 | ||||||||||||||||
(0.0385)% | EONIA | 12/4/2021 | € | 64,600 | 760 | — | 759 | |||||||||||||||
7.7225% | 28-day MXN-TIIE | 3/18/2024 | MXN | 256,000 | 240 | — | 240 | |||||||||||||||
$ | — | $ | 1,351 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Index-linked bond whose principal amount moves with a government price index. |
2 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
3 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $180,764,000, which represented 8.37% of the net assets of the fund. |
4 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $3,781,000, which represented .18% of the net assets of the fund. |
5 | Notional amount is calculated based on the number of contracts and notional contract size. |
6 | Value is calculated based on the notional amount and current market price. |
7 | Amount less than one thousand. |
Key to abbreviations and symbols
AUD = Australian dollars
BRL = Brazilian reais
CAD = Canadian dollars
CHF = Swiss francs
CLP = Chilean pesos
CNH/CNY = Chinese yuan renminbi
COP = Colombian pesos
DKr = Danish kroner
EONIA = Euro Overnight Index Average
EUR/€ = Euros
GBP/£ = British pounds
IDR = Indonesian rupiah
ILS = Israeli shekels
INR = Indian rupees
JPY/¥ = Japanese yen
MXN = Mexican pesos
MYR = Malaysian ringgits
NGN = Nigerian naira
NOK/NKr = Norwegian kroner
PLN = Polish zloty
SEK/SKr = Swedish kronor
STIBOR = Stockholm Interbank Offered Rate
THB = Thai baht
TIIE = Equilibrium Interbank Interest Rate
USD/$ = U.S. dollars
ZAR = South African rand
See notes to financial statements.
American Funds Insurance Series | 97 |
High-Income Bond Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Bonds, notes & other debt instruments 92.78% | Principal amount (000) | Value (000) | ||||||
Corporate bonds & notes 92.77% | ||||||||
Communication services 15.47% | ||||||||
Cablevision Systems Corp. 6.75% 2021 | $ | 5,025 | $ | 5,389 | ||||
CCO Holdings LLC and CCO Holdings Capital Corp. 5.75% 20261 | 6,450 | 6,781 | ||||||
CCO Holdings LLC and CCO Holdings Capital Corp. 4.00%–5.88% 2023–20291 | 9,350 | 9,564 | ||||||
CenturyLink, Inc. 6.75% 2023 | 7,100 | 7,677 | ||||||
Frontier Communications Corp. 10.50% 2022 | 8,540 | 5,829 | ||||||
Frontier Communications Corp. 11.00% 2025 | 16,270 | 10,169 | ||||||
Frontier Communications Corp. 8.00%–9.25% 2020–20271 | 7,830 | 7,302 | ||||||
Gogo Inc. 9.875% 20241 | 16,025 | 16,525 | ||||||
Inmarsat PLC 4.875% 20221 | 5,300 | 5,360 | ||||||
Intelsat Jackson Holding Co. 8.50% 20241 | 5,675 | 5,647 | ||||||
MDC Partners Inc. 6.50% 20241 | 8,330 | 7,697 | ||||||
Meredith Corp. 6.875% 2026 | 6,315 | 6,733 | ||||||
Sprint Corp. 11.50% 2021 | 7,130 | 8,271 | ||||||
Sprint Corp. 6.88%–8.75% 2021–2032 | 6,295 | 6,777 | ||||||
Other securities | 88,347 | |||||||
198,068 | ||||||||
Health care 14.23% | ||||||||
Bausch Health Companies Inc. 7.00% 20281 | 1,510 | 1,569 | ||||||
Endo International PLC 5.75%–6.00% 2022–20251,2 | 11,239 | 9,134 | ||||||
Kinetic Concepts, Inc. 12.50% 20211 | 6,573 | 7,255 | ||||||
Mallinckrodt PLC 4.875% 20201 | 6,530 | 6,326 | ||||||
Molina Healthcare, Inc. 5.375% 2022 | 10,585 | 11,048 | ||||||
Molina Healthcare, Inc. 4.875% 20251 | 2,919 | 2,974 | ||||||
Par Pharmaceutical Companies Inc. 7.50% 20271 | 5,325 | 5,245 | ||||||
Rotech Healthcare Inc., Term Loan, (3-month USD-LIBOR + 11.00%) 13.80% 2023 (100% PIK)3,4,5,6,7 | 7,776 | 7,561 | ||||||
Tenet Healthcare Corp. 4.375% 2021 | 5,755 | 5,870 | ||||||
Tenet Healthcare Corp. 4.50%–8.13% 2020–2025 | 15,972 | 16,457 | ||||||
Teva Pharmaceutical Finance Co. BV 6.00% 2024 | 8,192 | 7,757 | ||||||
Teva Pharmaceutical Finance Co. BV 2.20%–6.75% 2021–2028 | 10,191 | 8,816 | ||||||
Valeant Pharmaceuticals International, Inc. 6.125% 20251 | 13,430 | 13,732 | ||||||
Valeant Pharmaceuticals International, Inc. 5.88%–9.25% 2023–20271 | 11,626 | 12,615 | ||||||
Other securities | 65,826 | |||||||
182,185 | ||||||||
Materials 12.56% | ||||||||
Cleveland-Cliffs Inc. 4.875% 20241 | 5,775 | 5,876 | ||||||
Cleveland-Cliffs Inc. 5.75% 2025 | 5,956 | 5,941 | ||||||
Cleveland-Cliffs Inc. 5.875% 20271 | 8,285 | 8,078 | ||||||
First Quantum Minerals Ltd. 7.25% 20231 | 8,150 | 7,967 | ||||||
First Quantum Minerals Ltd. 7.50% 20251 | 11,100 | 10,614 | ||||||
First Quantum Minerals Ltd. 6.50%–7.25% 2021–20261 | 11,373 | 10,863 | ||||||
Ryerson Inc. 11.00% 20221 | 7,186 | 7,602 | ||||||
Venator Materials Corp. 5.75% 20251 | 6,235 | 5,744 | ||||||
Other securities | 98,049 | |||||||
160,734 | ||||||||
Energy 11.59% | ||||||||
CONSOL Energy Inc. 5.875% 2022 | 7,546 | 7,357 | ||||||
Transocean Guardian Ltd. 5.875% 20241 | 1,044 | 1,066 | ||||||
Transocean Inc. 6.13%–9.00% 2021–20261,2 | 10,027 | 10,531 | ||||||
Transocean Poseidon Ltd. 6.875% 20271 | 655 | 694 | ||||||
Transocean Sentry Ltd. 5.375% 20231 | 1,200 | 1,204 | ||||||
Other securities | 127,530 | |||||||
148,382 |
98 | American Funds Insurance Series |
High-Income Bond Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
Consumer discretionary 10.58% | ||||||||
Cirsa Gaming Corp. SA 7.875% 20231 | $ | 5,235 | $ | 5,562 | ||||
PetSmart, Inc. 7.125% 20231 | 9,565 | 9,015 | ||||||
PetSmart, Inc. 5.875% 20251 | 10,775 | 10,506 | ||||||
PetSmart, Inc. 8.875% 20251 | 8,870 | 8,582 | ||||||
Sally Holdings LLC and Sally Capital Inc. 5.625% 2025 | 5,380 | 5,293 | ||||||
Scientific Games Corp. 8.25% 20261 | 5,610 | 5,904 | ||||||
Sotheby’s 4.875% 20251 | 5,495 | 5,612 | ||||||
Staples, Inc. 7.50% 20261 | 8,975 | 8,945 | ||||||
Other securities | 76,067 | |||||||
135,486 | ||||||||
Industrials 9.76% | ||||||||
Associated Materials, LLC 9.00% 20241 | 5,773 | 5,499 | ||||||
Builders FirstSource, Inc. 5.625% 20241 | 7,160 | 7,406 | ||||||
Dun & Bradstreet Corp. 10.25% 20271 | 4,993 | 5,318 | ||||||
Hertz Global Holdings Inc. 7.625% 20221 | 6,269 | 6,520 | ||||||
LSC Communications, Inc. 8.75% 20231 | 9,430 | 9,006 | ||||||
Other securities | 91,198 | |||||||
124,947 | ||||||||
Information technology 6.75% | ||||||||
Almonde Inc., Term Loan, (3-month USD-LIBOR + 7.25%) 9.652% 20255,7 | 7,325 | 7,281 | ||||||
Camelot Finance SA 7.875% 20241 | 7,580 | 7,987 | ||||||
Genesys Telecommunications Laboratories, Inc. 10.00% 20241 | 6,030 | 6,565 | ||||||
Infor (US), Inc. 6.50% 2022 | 6,100 | 6,230 | ||||||
Kronos Inc., Term Loan B, (3-month USD-LIBOR + 8.25%) 10.829% 20245,7 | 8,645 | 8,951 | ||||||
Unisys Corp. 10.75% 20221 | 6,600 | 7,318 | ||||||
Other securities | 42,039 | |||||||
86,371 | ||||||||
Financials 4.23% | ||||||||
Compass Diversified Holdings 8.00% 20261 | 5,710 | 5,963 | ||||||
FS Energy and Power Fund 7.50% 20231 | 5,365 | 5,459 | ||||||
Other securities | 42,699 | |||||||
54,121 | ||||||||
Utilities 2.78% | ||||||||
Other securities | 35,647 | |||||||
Real estate 2.68% | ||||||||
Brookfield Property REIT Inc. 5.75% 20261 | 5,135 | 5,308 | ||||||
Howard Hughes Corp. 5.375% 20251 | 6,070 | 6,302 | ||||||
Other securities | 22,685 | |||||||
34,295 | ||||||||
Consumer staples 2.14% | ||||||||
Other securities | 27,442 | |||||||
Total corporate bonds & notes | 1,187,678 | |||||||
Municipals 0.01% | ||||||||
Other securities | 94 | |||||||
Total bonds, notes & other debt instruments (cost: $1,194,906,000) | 1,187,772 | |||||||
Convertible bonds 0.55% | ||||||||
Communication services 0.29% | ||||||||
Gogo Inc., convertible notes, 6.00% 20221 | 2,140 | 1,980 | ||||||
Other securities | 1,722 | |||||||
3,702 |
American Funds Insurance Series | 99 |
High-Income Bond Fund
Convertible bonds (continued) | Principal amount (000) | Value (000) | ||||||
Energy 0.16% | ||||||||
Other securities | $ | 2,142 | ||||||
Health care 0.10% | ||||||||
Teva Pharmaceutical Finance Co. BV, Series C, convertible bonds, 0.25% 2026 | $ | 1,375 | 1,264 | |||||
Total convertible bonds (cost: $7,604,000) | 7,108 | |||||||
Convertible stocks 0.45% | Shares | |||||||
Other 0.45% | ||||||||
Other securities | 5,724 | |||||||
Total convertible stocks (cost: $5,516,000) | 5,724 | |||||||
Preferred securities 0.18% | ||||||||
Consumer discretionary 0.18% | ||||||||
Other securities | 2,292 | |||||||
Total preferred securities(cost: $1,656,000) | 2,292 | |||||||
Common stocks 0.68% | ||||||||
Communication services 0.05% | ||||||||
Frontier Communications Corp.8 | 13,333 | 23 | ||||||
Other securities | 594 | |||||||
617 | ||||||||
Other 0.63% | ||||||||
Other securities | 8,070 | |||||||
Total common stocks (cost: $14,466,000) | 8,687 | |||||||
Rights & warrants 0.01% | ||||||||
Energy 0.01% | ||||||||
Other securities | 112 | |||||||
Total rights & warrants(cost: $71,000) | 112 | |||||||
Short-term securities 5.44% | ||||||||
Money market investments 5.44% | ||||||||
Capital Group Central Cash Fund | 696,954 | 69,689 | ||||||
Total short-term securities (cost: $69,691,000) | 69,689 | |||||||
Total investment securities100.09% (cost: $1,293,910,000) | 1,281,384 | |||||||
Other assets less liabilities (0.09)% | (1,092 | ) | ||||||
Net assets 100.00% | $ | 1,280,292 |
100 | American Funds Insurance Series |
High-Income Bond Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. Some securities in “Other securities” (with an aggregate value of $3,932,000, an aggregate cost of $5,683,000, and which represented .31% of the net assets of the fund) were acquired from 12/13/2012 to 11/16/2018 through private placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual restrictions on resale.
Swap contracts
Credit default swaps
Centrally cleared credit default swaps on credit indices — buy protection
Receive | Pay/ Payment frequency | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments (000) | Unrealized depreciation at 6/30/2019 (000) | ||||||||||||
CDX.NA.IG.32 | 1.00%/Quarterly | 6/20/2024 | $ | 10,500 | $ | (227 | ) | $ | (218 | ) | $ | (9 | ) | |||||
CDX.NA.HY.32 | 5.00%/Quarterly | 6/20/2024 | 46,800 | (3,554 | ) | (3,279 | ) | (275 | ) | |||||||||
$ | (3,497 | ) | $ | (284 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $737,359,000, which represented 57.59% of the net assets of the fund. |
2 | Step bond; coupon rate may change at a later date. |
3 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $26,897,000, which represented 2.10% of the net assets of the fund. |
4 | Value determined using significant unobservable inputs. |
5 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans, including those in “Other securities,” was $81,956,000, which represented 6.40% of the net assets of the fund. |
6 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. Most recent payment was 100% cash unless otherwise noted. |
7 | Coupon rate may change periodically. |
8 | Security did not produce income during the last 12 months. |
Key to abbreviations and symbol
LIBOR = London Interbank Offered Rate
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 101 |
Mortgage Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Bonds, notes & other debt instruments 94.10% | Principal amount (000) | Value (000) | ||||||
Mortgage-backed obligations 74.36% | ||||||||
Federal agency mortgage-backed obligations 71.67% | ||||||||
Fannie Mae Pool #CA0133 4.00% 20471 | $ | 6,696 | $ | 6,985 | ||||
Fannie Mae Pool #BE6965 4.00% 20471 | 4,113 | 4,291 | ||||||
Fannie Mae Pool #MA3384 4.00% 20481 | 5,687 | 5,907 | ||||||
Fannie Mae Pool #CA1907 4.50% 20481 | 13,478 | 14,174 | ||||||
Fannie Mae Pool #CA1709 4.50% 20481 | 7,191 | 7,566 | ||||||
Fannie Mae Pool #CA1563 4.50% 20481 | 4,035 | 4,246 | ||||||
Fannie Mae Pool #CA2055 4.50% 20481 | 1,516 | 1,594 | ||||||
Fannie Mae Pool #MA3692 3.50% 20491 | 3,409 | 3,489 | ||||||
Fannie Mae Pool #MA3630 5.00% 20491 | 3,201 | 3,395 | ||||||
Fannie Mae 4.00%–5.00% 2036–20481 | 1,776 | 1,850 | ||||||
Freddie Mac 4.00% 20361 | 4,637 | 4,857 | ||||||
Freddie Mac 3.00% 20461 | 6,767 | 6,911 | ||||||
Freddie Mac 4.00% 20481 | 1,795 | 1,869 | ||||||
Freddie Mac 4.00% 20481 | 1,700 | 1,760 | ||||||
Freddie Mac Pool #760014 3.347% 20451,2 | 1,925 | 1,959 | ||||||
Freddie Mac, Series K031, Class A2, Multi Family, 3.30% 20231 | 4,722 | 4,929 | ||||||
Freddie Mac 2.60%–5.00% 2020–20471,2 | 5,097 | 5,304 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class HA, 2.50% 20561 | 1,586 | 1,610 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-2, Class MA, 3.00% 20561 | 1,514 | 1,518 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class HT, 2.75% 20571,2 | 11,500 | 11,767 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2018-2, Class MT, 3.50% 20571 | 10,413 | 10,609 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2017-4, Class MT, 3.50% 20571 | 7,207 | 7,358 | ||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2018-2, Class A1, 3.50% 20281 | 7,381 | 7,694 | ||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2018-1, Class A1, 3.50% 20281 | 1,995 | 2,076 | ||||||
Government National Mortgage Assn. 5.50% 20401 | 1,654 | 1,764 | ||||||
Government National Mortgage Assn. 3.50% 20431 | 1,912 | 1,989 | ||||||
Government National Mortgage Assn. 3.50% 20431 | 1,554 | 1,616 | ||||||
Government National Mortgage Assn. 4.25% 20441 | 1,699 | 1,790 | ||||||
Government National Mortgage Assn. 4.50% 20491 | 25,316 | 26,479 | ||||||
Government National Mortgage Assn. 4.50% 20491 | 2,823 | 2,954 | ||||||
Government National Mortgage Assn. 5.00% 20491 | 8,039 | 8,445 | ||||||
Government National Mortgage Assn. Pool #MA5876 4.00% 20491 | 4,951 | 5,137 | ||||||
Government National Mortgage Assn. Pool #MA5877 4.50% 20491 | 2,256 | 2,355 | ||||||
Government National Mortgage Assn. Pool #MA5932 4.50% 20491 | 2,170 | 2,275 | ||||||
Government National Mortgage Assn. Pool #MA5711 4.50% 20491 | 1,898 | 1,987 | ||||||
Government National Mortgage Assn. Pool #MA5987 4.50% 20491 | 1,814 | 1,897 | ||||||
Government National Mortgage Assn. 3.50%–6.50% 2034–20661,3 | 17,694 | 18,430 | ||||||
Uniform Mortgage-Backed Security 5.00% 20491 | 1,868 | 1,974 | ||||||
Vendee Mortgage Trust, Series 2011-2, Class V, 3.75% 20281 | 3,972 | 3,998 | ||||||
Vendee Mortgage Trust, Series 2010-1, Class DA, 4.25% 20351 | 389 | 397 | ||||||
Other securities | 1,326 | |||||||
208,531 | ||||||||
Collateralized mortgage-backed obligations (privately originated) 2.69% | ||||||||
Finance of America Structured Securities Trust, Series 2018-HB1, Class A, 3.375% 20281,2,4 | 1,528 | 1,533 | ||||||
Other securities | 6,283 | |||||||
7,816 | ||||||||
Total mortgage-backed obligations | 216,347 |
102 | American Funds Insurance Series |
Mortgage Fund
Bonds, notes & other debt instruments | Principal amount (000) | Value (000) | ||||||
U.S. Treasury bonds & notes 9.79% | ||||||||
U.S. Treasury 5.07% | ||||||||
U.S. Treasury 2.00% 2022 | $ | 2,400 | $ | 2,421 | ||||
U.S. Treasury 1.75% 2023 | 3,500 | 3,503 | ||||||
U.S. Treasury 2.875% 2023 | 4,350 | 4,555 | ||||||
U.S. Treasury 2.50% 2024 | 2,500 | 2,586 | ||||||
U.S. Treasury 1.50%–2.75% 2020–2023 | 1,668 | 1,687 | ||||||
14,752 | ||||||||
U.S. Treasury inflation-protected securities 4.72% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20235 | 6,172 | 6,249 | ||||||
U.S. Treasury Inflation-Protected Security 0.75% 20425,6 | 7,276 | 7,324 | ||||||
U.S. Treasury Inflation-Protected Security 2.125% 20415 | 128 | 166 | ||||||
13,739 | ||||||||
Total U.S. Treasury bonds & notes | 28,491 | |||||||
Federal agency bonds & notes 6.48% | ||||||||
Fannie Mae 2.00% 2022 | 5,800 | 5,835 | ||||||
Federal Home Loan Bank 1.375% 2021 | 3,000 | 2,979 | ||||||
Federal Home Loan Bank 1.875% 2021 | 10,000 | 10,034 | ||||||
18,848 | ||||||||
Asset-backed obligations 3.46% | ||||||||
Hertz Vehicle Financing LLC, Rental Car Asset-Backed Notes, Series 2015-1, Class A, 2.73% 20211,4 | 1,823 | 1,825 | ||||||
SLM Private Credit Student Loan Trust, Series 2010-1, Class A, (1-month USD-LIBOR + 0.40%) 2.804% 20251,2 | 2,433 | 2,364 | ||||||
Other securities | 5,886 | |||||||
10,075 | ||||||||
Corporate bonds & notes 0.01% | ||||||||
Financials 0.01% | ||||||||
Other securities | 27 | |||||||
Total bonds, notes & other debt instruments (cost: $269,214,000) | 273,788 | |||||||
Short-term securities 7.13% | ||||||||
Federal agency discount notes 6.03% | ||||||||
Federal Home Loan Bank 2.27%-2.40% 2019 | 10,000 | 9,989 | ||||||
Freddie Mac 2.40% due 10/10/2019 | 7,600 | 7,555 | ||||||
17,544 | ||||||||
Commercial paper 1.10% | ||||||||
Sumitomo Mitsui Banking Corp. 2.30% due 7/19/20194 | 3,200 | 3,196 | ||||||
Total short-term securities (cost: $20,733,000) | 20,740 | |||||||
Total investment securities 101.23% (cost: $289,947,000) | 294,528 | |||||||
Other assets less liabilities (1.23)% | (3,567 | ) | ||||||
Net assets 100.00% | $ | 290,961 |
American Funds Insurance Series | 103 |
Mortgage Fund
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $1,163,000, which represented .40% of the net assets of the fund.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 7 | Value at 6/30/2019 (000) | 8 | Unrealized appreciation (depreciation) at 6/30/2019 (000) | |||||||||
2 Year U.S. Treasury Note Futures | Long | 592 | October 2019 | $ | 118,400 | $ | 127,386 | $ | 710 | ||||||||
5 Year U.S. Treasury Note Futures | Long | 408 | October 2019 | 40,800 | 48,208 | 670 | |||||||||||
10 Year U.S. Treasury Note Futures | Long | 179 | September 2019 | 17,900 | 22,906 | 557 | |||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 9 | September 2019 | (900 | ) | (1,243 | ) | (5 | ) | ||||||||
20 Year U.S. Treasury Bond Futures | Long | 56 | September 2019 | 5,600 | 8,713 | 232 | |||||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 5 | September 2019 | 500 | 888 | 40 | |||||||||||
$ | 2,204 |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 6/30/2019 (000) | ||||||||||||||
2.337% | U.S. EFFR | 7/31/2019 | $ | 145,000 | $ | (4 | ) | $ | — | $ | (4 | ) | ||||||||
2.325% | U.S. EFFR | 7/31/2019 | 149,000 | (6 | ) | — | (6 | ) | ||||||||||||
2.305% | U.S. EFFR | 7/31/2019 | 149,000 | (8 | ) | — | (8 | ) | ||||||||||||
U.S. EFFR | 2.039% | 9/18/2019 | 281,000 | (4 | ) | — | (4 | ) | ||||||||||||
3-month USD-LIBOR | 2.806% | 8/29/2020 | 300 | (3 | ) | — | (3 | ) | ||||||||||||
2.729% | U.S. EFFR | 10/22/2020 | 22,900 | 318 | — | 318 | ||||||||||||||
2.4035% | U.S. EFFR | 1/11/2021 | 19,650 | 233 | — | 233 | ||||||||||||||
2.3755% | U.S. EFFR | 2/6/2021 | 15,000 | 183 | — | 183 | ||||||||||||||
2.284% | U.S. EFFR | 3/19/2021 | 5,000 | 59 | — | 59 | ||||||||||||||
3-month USD-LIBOR | 2.348% | 4/1/2021 | 46,000 | (412 | ) | — | (412 | ) | ||||||||||||
2.197% | U.S. EFFR | 4/15/2021 | 23,000 | 251 | — | 251 | ||||||||||||||
3-month USD-LIBOR | 1.217% | 9/22/2021 | 11,500 | 140 | — | 140 | ||||||||||||||
3-month USD-LIBOR | 1.225% | 9/22/2021 | 11,500 | 138 | — | 138 | ||||||||||||||
3-month USD-LIBOR | 1.2796% | 10/11/2021 | 14,500 | 159 | — | 159 | ||||||||||||||
2.0135% | 3-month USD-LIBOR | 10/20/2021 | 30,000 | 163 | — | 163 | ||||||||||||||
2.012% | 3-month USD-LIBOR | 10/4/2022 | 9,000 | 80 | — | 80 | ||||||||||||||
2.00% | 3-month USD-LIBOR | 10/5/2022 | 41,500 | 353 | — | 353 | ||||||||||||||
2.1045% | 3-month USD-LIBOR | 10/31/2022 | 4,000 | 48 | — | 48 | ||||||||||||||
3-month USD-LIBOR | 2.2835% | 1/5/2023 | 36,000 | (679 | ) | — | (679 | ) | ||||||||||||
2.21875% | U.S. EFFR | 3/14/2024 | 9,000 | 293 | — | 293 | ||||||||||||||
3-month USD-LIBOR | 2.322% | 5/2/2024 | 10,100 | (267 | ) | — | (267 | ) | ||||||||||||
3-month USD-LIBOR | 2.325% | 5/2/2024 | 23,300 | (619 | ) | — | (619 | ) | ||||||||||||
3-month USD-LIBOR | 2.27% | 12/5/2026 | 8,500 | (248 | ) | — | (248 | ) | ||||||||||||
3-month USD-LIBOR | 2.24% | 12/5/2026 | 10,500 | (284 | ) | — | (284 | ) | ||||||||||||
3-month USD-LIBOR | 3.206% | 7/31/2044 | 1,000 | (201 | ) | — | (201 | ) | ||||||||||||
3-month USD-LIBOR | 3.238% | 8/8/2044 | 2,000 | (415 | ) | — | (415 | ) | ||||||||||||
3-month USD-LIBOR | 3.2265% | 9/25/2044 | 3,000 | (618 | ) | — | (618 | ) | ||||||||||||
U.S. EFFR | 2.145% | 11/9/2047 | 2,200 | (95 | ) | — | (95 | ) | ||||||||||||
U.S. EFFR | 2.155% | 11/10/2047 | 1,280 | (58 | ) | — | (58 | ) | ||||||||||||
U.S. EFFR | 2.153% | 11/10/2047 | 2,200 | (99 | ) | — | (99 | ) | ||||||||||||
U.S. EFFR | 2.17% | 11/13/2047 | 2,320 | (113 | ) | — | (113 | ) |
104 | American Funds Insurance Series |
Mortgage Fund
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 6/30/2019 (000) | ||||||||||||||
U.S. EFFR | 2.5635% | 2/12/2048 | $ | 4,528 | $ | (617 | ) | $ | — | $ | (617 | ) | ||||||||
2.98% | 3-month USD-LIBOR | 3/15/2048 | 300 | 51 | — | 51 | ||||||||||||||
2.9625% | 3-month USD-LIBOR | 3/15/2048 | 300 | 50 | — | 50 | ||||||||||||||
U.S. EFFR | 2.4615% | 3/15/2048 | 300 | (34 | ) | — | (34 | ) | ||||||||||||
U.S. EFFR | 2.485% | 3/15/2048 | 300 | (36 | ) | — | (36 | ) | ||||||||||||
2.917% | 3-month USD-LIBOR | 3/16/2048 | 600 | 94 | — | 94 | ||||||||||||||
U.S. EFFR | 2.425% | 3/16/2048 | 600 | (64 | ) | — | (64 | ) | ||||||||||||
$ | — | $ | (2,271 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
2 | Coupon rate may change periodically. |
3 | Purchased on a TBA basis. |
4 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $16,608,000, which represented 5.71% of the net assets of the fund. |
5 | Index-linked bond whose principal amount moves with a government price index. |
6 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $3,786,000, which represented 1.30% of the net assets of the fund. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
Key to abbreviations and symbol
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 105 |
Ultra-Short Bond Fund | |
Investment portfolioJune 30, 2019 | unaudited |
Short-term securities 99.90% | Principal amount (000) | Value (000) | ||||||
Commercial paper 65.47% | ||||||||
ABN-AMRO North America Finance Inc. 2.44% due 8/21/20191 | $ | 6,600 | $ | 6,576 | ||||
American Honda Finance Corp. 2.52% due 7/22/2019 | 8,300 | 8,287 | ||||||
Apple Inc. 2.24% due 7/8/20191 | 10,000 | 9,994 | ||||||
Bank of Nova Scotia 2.28% due 9/23/20191 | 5,000 | 4,970 | ||||||
BASF SE 2.18% due 7/30/20191 | 10,000 | 9,979 | ||||||
BNZ International Funding Ltd. 2.25% due 10/11/20191 | 10,086 | 10,017 | ||||||
Canadian Imperial Bank of Commerce 2.33% due 7/1/20191 | 9,300 | 9,298 | ||||||
Chariot Funding, LLC 2.27% due 9/20/20191 | 10,000 | 9,946 | ||||||
CRC Funding, LLC 2.48% due 8/14/20191 | 10,000 | 9,969 | ||||||
Credit Agricole North America, Inc. 2.33% due 7/19/2019 | 10,000 | 9,986 | ||||||
DBS Bank Ltd. 2.34% due 9/10/20191 | 4,800 | 4,777 | ||||||
Essilor International 2.48% due 8/6/20191 | 10,000 | 9,975 | ||||||
ExxonMobil Corp. 2.33% due 7/11/2019 | 5,500 | 5,495 | ||||||
IBM Corp. 2.34% due 7/12/20191 | 8,100 | 8,093 | ||||||
Kimberly-Clark Corp. 2.35% due 7/17/20191 | 4,800 | 4,794 | ||||||
Liberty Street Funding Corp. 2.34% due 9/20/20191 | 5,300 | 5,272 | ||||||
Oversea-Chinese Banking Corp. Ltd. 2.23% due 9/23/20191 | 10,000 | 9,944 | ||||||
Simon Property Group, LP 2.43% due 7/8/20191 | 10,400 | 10,393 | ||||||
Starbird Funding Corp. 2.42% due 7/2/20191 | 9,900 | 9,897 | ||||||
Svenska Handelsbanken Inc. 2.47% due 8/8/20191 | 8,000 | 7,978 | ||||||
Toronto-Dominion Bank 2.41% due 7/24/20191 | 7,700 | 7,687 | ||||||
Unilever Capital Corp. 2.30% due 9/3/20191 | 2,000 | 1,991 | ||||||
Victory Receivables Corp. 2.40% due 7/9/20191 | 11,600 | 11,591 | ||||||
186,909 | ||||||||
Bonds & notes of governments & government agencies outside the U.S. 14.17% | ||||||||
British Columbia (Province of) 2.33% due 7/10/2019 | 11,500 | 11,491 | ||||||
CPPIB Capital Inc. 2.40% due 7/18/2019 | 9,000 | 8,988 | ||||||
Export Development Canada 2.26% due 7/3/2019 | 10,000 | 9,997 | ||||||
KfW 2.30% due 7/23/20191 | 10,000 | 9,984 | ||||||
40,460 | ||||||||
Federal agency discount notes 11.41% | ||||||||
Federal Farm Credit Banks 2.37% due 7/19/2019 | 5,000 | 4,995 | ||||||
Federal Home Loan Bank 2.21%–2.41% due 7/12/2019–8/2/2019 | 27,600 | 27,559 | ||||||
32,554 | ||||||||
U.S. Treasury bonds & notes 8.85% | ||||||||
U.S. Treasury Bills 2.25%–2.37% due 7/11/2019–8/8/2019 | 25,300 | 25,269 | ||||||
Total short-term securities (cost: $285,230,000) | 285,192 | |||||||
Total investment securities 99.90% (cost: $285,230,000) | 285,192 | |||||||
Other assets less liabilities 0.10% | 290 | |||||||
Net assets 100.00% | $ | 285,482 |
1 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $173,125,000, which represented 60.64% of the net assets of the fund. |
See notes to financial statements.
106 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund | |
Summary investment portfolioJune 30, 2019 | unaudited |
Bonds, notes & other debt instruments 94.72% | Principal amount (000) | Value (000) | ||||||
U.S. Treasury bonds & notes 47.34% | ||||||||
U.S. Treasury 41.47% | ||||||||
U.S. Treasury 2.25% 2020 | $ | 29,900 | $ | 29,954 | ||||
U.S. Treasury 1.125% 2021 | 31,950 | 31,525 | ||||||
U.S. Treasury 1.75% 20211 | 33,540 | 33,547 | ||||||
U.S. Treasury 2.00% 2021 | 46,300 | 46,610 | ||||||
U.S. Treasury 2.125% 2021 | 23,450 | 23,647 | ||||||
U.S. Treasury 2.125% 2021 | 22,000 | 22,145 | ||||||
U.S. Treasury 2.25% 2021 | 23,580 | 23,812 | ||||||
U.S. Treasury 1.75% 2022 | 174,300 | 174,396 | ||||||
U.S. Treasury 1.875% 2022 | 63,000 | 63,244 | ||||||
U.S. Treasury 1.875% 2022 | 25,000 | 25,107 | ||||||
U.S. Treasury 1.875% 2022 | 23,000 | 23,111 | ||||||
U.S. Treasury 2.00% 2022 | 69,500 | 70,103 | ||||||
U.S. Treasury 2.125% 20231 | 64,095 | 65,127 | ||||||
U.S. Treasury 2.625% 2023 | 17,255 | 17,802 | ||||||
U.S. Treasury 2.875% 2023 | 71,000 | 74,339 | ||||||
U.S. Treasury 2.875% 2023 | 22,500 | 23,580 | ||||||
U.S. Treasury 2.00% 2024 | 65,800 | 66,582 | ||||||
U.S. Treasury 2.125% 2024 | 55,975 | 56,928 | ||||||
U.S. Treasury 2.125% 2024 | 26,000 | 26,437 | ||||||
U.S. Treasury 2.25% 2024 | 51,084 | 52,247 | ||||||
U.S. Treasury 2.50% 2024 | 44,000 | 45,523 | ||||||
U.S. Treasury 2.75% 2025 | 38,000 | 39,927 | ||||||
U.S. Treasury 1.25%–2.88% 2020–20491 | 168,960 | 172,935 | ||||||
1,208,628 | ||||||||
U.S. Treasury inflation-protected securities 5.87% | ||||||||
U.S. Treasury Inflation-Protected Security 0.625% 20232 | 36,516 | 36,972 | ||||||
U.S. Treasury Inflation-Protected Security 0.25% 20252 | 23,883 | 23,939 | ||||||
U.S. Treasury Inflation-Protected Security 0.75% 20421,2 | 22,264 | 22,411 | ||||||
U.S. Treasury Inflation-Protected Security 1.375% 20441,2 | 47,366 | 53,895 | ||||||
U.S. Treasury Inflation-Protected Securities 0.13%–2.13% 2022–20472 | 33,515 | 33,963 | ||||||
171,180 | ||||||||
Total U.S. Treasury bonds & notes | 1,379,808 | |||||||
Mortgage-backed obligations 26.83% | ||||||||
Federal agency mortgage-backed obligations 26.83% | ||||||||
Fannie Mae Pool #BH2597 4.00% 20473 | 29,849 | 31,139 | ||||||
Fannie Mae Pool #CA2055 4.50% 20483 | 40,140 | 42,201 | ||||||
Fannie Mae Pool #CA1709 4.50% 20483 | 39,550 | 41,613 | ||||||
Fannie Mae 0%–9.04% 2022–20493,4 | 104,638 | 108,863 | ||||||
Freddie Mac 3.50% 20333 | 22,563 | 23,342 | ||||||
Freddie Mac Pool #ZT2086 3.50% 20493 | 74,655 | 76,325 | ||||||
Freddie Mac 0%–5.50% 2020–20473,4 | 39,449 | 40,694 | ||||||
Freddie Mac Seasoned Credit Risk Transfer Trust, Series 2018-2, Class MT, 3.50% 20573 | 39,923 | 40,675 | ||||||
Freddie Mac Seasoned Loan Structured Transaction Trust, Series 2018-2, Class A1, 3.50% 20283 | 42,449 | 44,246 | ||||||
Government National Mortgage Assn. 5.00% 20493 | 36,583 | 38,431 | ||||||
Government National Mortgage Assn. 5.00% 20493 | 20,007 | 21,008 | ||||||
Government National Mortgage Assn. Pool #MA5876 4.00% 20493 | 32,102 | 33,308 | ||||||
Government National Mortgage Assn. Pool #MA5932 4.50% 20493 | 77,196 | 80,941 | ||||||
Government National Mortgage Assn. Pool #MA5987 4.50% 20493 | 27,010 | 28,245 | ||||||
Government National Mortgage Assn. 3.00%–6.64% 2034–20653,4,5 | 56,031 | 58,652 | ||||||
Other securities | 72,418 | |||||||
782,101 |
American Funds Insurance Series | 107 |
U.S. Government/AAA-Rated Securities Fund
Bonds, notes & other debt instruments(continued) | Principal amount (000) | Value (000) | ||||||
Federal agency bonds & notes 20.55% | ||||||||
Fannie Mae 2.75% 2021 | $ | 26,500 | $ | 26,993 | ||||
Fannie Mae 2.875% 2023 | 36,000 | 37,561 | ||||||
Fannie Mae 1.25%–7.13% 2021–2030 | 6,900 | 8,678 | ||||||
Federal Home Loan Bank 3.25%–5.50% 2023–2036 | 30,315 | 32,734 | ||||||
Freddie Mac 2.375% 2021 | 100,000 | 100,850 | ||||||
Private Export Funding Corp. 3.266% 20216 | 34,000 | 35,077 | ||||||
Private Export Funding Corp. 1.45%–3.55% 2019–2024 | 28,840 | 29,262 | ||||||
Tennessee Valley Authority, Series A, 3.875% 2021 | 32,975 | 34,024 | ||||||
Tennessee Valley Authority 2.88%–5.88% 2027–2060 | 14,330 | 16,056 | ||||||
U.S. Agency for International Development, Iraq (State of) 2.149% 2022 | 6,670 | 6,706 | ||||||
U.S. Agency for International Development, Jordan (Kingdom of) 2.503% 2020 | 88,000 | 88,717 | ||||||
U.S. Agency for International Development, Jordan (Kingdom of) 2.578% 2022 | 43,000 | 43,759 | ||||||
U.S. Agency for International Development, Jordan (Kingdom of) 3.00% 2025 | 43,250 | 45,397 | ||||||
U.S. Agency for International Development, Morocco (Kingdom of) 7.55% 2026 | 3,171 | 3,771 | ||||||
U.S. Agency for International Development, Tunisia (Kingdom of) 1.416% 2021 | 3,000 | 2,968 | ||||||
U.S. Agency for International Development, Ukraine 1.471% 2021 | 4,410 | 4,362 | ||||||
U.S. Department of Housing and Urban Development 1.98%–3.70% 2020–2034 | 73,632 | 76,329 | ||||||
Other securities | 5,646 | |||||||
598,890 | ||||||||
Total bonds, notes & other debt instruments (cost: $2,708,625,000) | 2,760,799 | |||||||
Short-term securities 7.23% | ||||||||
Commercial paper 7.23% | ||||||||
Bank of New York Co., Inc. 2.33% due 7/31/2019 | 28,300 | 28,238 | ||||||
Eli Lilly and Co. 2.38% due 7/11/20196 | 70,000 | 69,941 | ||||||
Paccar Financial Corp. 2.42% due 7/2/2019 | 28,500 | 28,493 | ||||||
Sumitomo Mitsui Banking Corp. 2.30% due 7/19/20196 | 69,800 | 69,704 | ||||||
Other securities | 14,445 | |||||||
210,821 | ||||||||
Total short-term securities (cost: $210,863,000) | 210,821 | |||||||
Total investment securities 101.95% (cost: $2,919,488,000) | 2,971,620 | |||||||
Other assets less liabilities (1.95)% | (56,832 | ) | ||||||
Net assets 100.00% | $ | 2,914,788 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 7 | Value at 6/30/2019 (000) | 8 | Unrealized appreciation (depreciation) at 6/30/2019 (000) | |||||||||
90 Day Euro Dollar Futures | Long | 565 | March 2020 | $ | 141,250 | $ | 138,835 | $ | 578 | ||||||||
2 Year U.S. Treasury Note Futures | Long | 6,123 | October 2019 | 1,224,600 | 1,317,545 | 6,803 | |||||||||||
5 Year U.S. Treasury Note Futures | Long | 8,276 | October 2019 | 827,600 | 977,861 | 13,710 | |||||||||||
10 Year U.S. Treasury Note Futures | Long | 2,180 | September 2019 | 218,000 | 278,972 | 3,127 | |||||||||||
10 Year Ultra U.S. Treasury Note Futures | Short | 772 | September 2019 | (77,200 | ) | (106,633 | ) | (1,612 | ) |
108 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 7 | Value at 6/30/2019 (000) | 8 | Unrealized appreciation (depreciation) at 6/30/2019 (000) | |||||||||
20 Year U.S. Treasury Bond Futures | Long | 108 | September 2019 | $ | 10,800 | $ | 16,804 | $ | 448 | ||||||||
30 Year Ultra U.S. Treasury Bond Futures | Long | 577 | September 2019 | 57,700 | 102,454 | 1,081 | |||||||||||
$ | 24,135 |
Swap contracts
Interest rate swaps
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 6/30/2019 (000) | |||||||||||||||
2.337% | U.S. EFFR | 7/31/2019 | $ | 801,000 | $ | (22 | ) | $ | — | $ | (22 | ) | |||||||||
2.325% | U.S. EFFR | 7/31/2019 | 863,500 | (33 | ) | — | (33 | ) | |||||||||||||
2.305% | U.S. EFFR | 7/31/2019 | 863,500 | (48 | ) | — | (48 | ) | |||||||||||||
U.S. EFFR | 2.039% | 9/18/2019 | 1,623,000 | (23 | ) | — | (23 | ) | |||||||||||||
U.S. EFFR | 2.064% | 10/30/2019 | 1,632,100 | (331 | ) | — | (331 | ) | |||||||||||||
1.997% | U.S. EFFR | 2/13/2020 | 60,900 | 30 | — | 30 | |||||||||||||||
1.989% | U.S. EFFR | 2/13/2020 | 61,000 | 27 | — | 27 | |||||||||||||||
3-month USD-LIBOR | 2.761% | 4/27/2020 | 100,000 | (547 | ) | — | (547 | ) | |||||||||||||
3-month USD-LIBOR | 2.8025% | 8/15/2020 | 101,840 | (929 | ) | — | (929 | ) | |||||||||||||
3-month USD-LIBOR | 2.806% | 8/29/2020 | 34,300 | (323 | ) | — | (323 | ) | |||||||||||||
2.48% | U.S. EFFR | 12/20/2020 | 82,529 | 1,019 | — | 1,019 | |||||||||||||||
2.4825% | U.S. EFFR | 12/26/2020 | 500,513 | 6,307 | — | 6,307 | |||||||||||||||
2.3485% | U.S. EFFR | 1/7/2021 | 61,005 | 664 | — | 664 | |||||||||||||||
2.3355% | U.S. EFFR | 1/7/2021 | 57,995 | 620 | — | 620 | |||||||||||||||
2.3995% | U.S. EFFR | 1/11/2021 | 25,200 | 297 | — | 297 | |||||||||||||||
2.4035% | U.S. EFFR | 1/11/2021 | 18,800 | 222 | — | 222 | |||||||||||||||
2.3755% | U.S. EFFR | 2/6/2021 | 129,000 | 1,574 | — | 1,574 | |||||||||||||||
2.284% | U.S. EFFR | 3/19/2021 | 65,000 | 764 | — | 764 | |||||||||||||||
2.1125% | U.S. EFFR | 3/28/2021 | 78,800 | 713 | — | 713 | |||||||||||||||
3-month USD-LIBOR | 2.367% | 3/28/2021 | 234,200 | (2,170 | ) | — | (2,170 | ) | |||||||||||||
3-month USD-LIBOR | 2.348% | 4/1/2021 | 264,000 | (2,365 | ) | — | (2,365 | ) | |||||||||||||
2.197% | U.S. EFFR | 4/15/2021 | 174,000 | 1,900 | — | 1,900 | |||||||||||||||
2.19875% | U.S. EFFR | 5/7/2021 | 62,000 | 713 | — | 713 | |||||||||||||||
1.605% | U.S. EFFR | 6/20/2021 | 116,816 | 106 | — | 106 | |||||||||||||||
1.7775% | 3-month USD-LIBOR | 6/21/2021 | 235,900 | (115 | ) | — | (115 | ) | |||||||||||||
3-month USD-LIBOR | 1.217% | 9/22/2021 | 60,000 | 729 | — | 729 | |||||||||||||||
3-month USD-LIBOR | 1.225% | 9/22/2021 | 60,000 | 719 | — | 719 | |||||||||||||||
3-month USD-LIBOR | 1.2255% | 9/23/2021 | 5,000 | 60 | — | 60 | |||||||||||||||
3-month USD-LIBOR | 2.2175% | 3/17/2022 | 52,000 | (646 | ) | — | (646 | ) | |||||||||||||
2.197% | U.S. EFFR | 4/18/2022 | 47,400 | 905 | — | 905 | |||||||||||||||
3-month USD-LIBOR | 1.75918% | 4/29/2022 | 58,000 | (23 | ) | — | (23 | ) | |||||||||||||
2.5775% | U.S. EFFR | 7/16/2022 | 181,639 | 2,105 | — | 2,105 | |||||||||||||||
3-month USD-LIBOR | 1.948% | 7/28/2022 | 20,000 | (126 | ) | — | (126 | ) | |||||||||||||
2.80% | 3-month USD-LIBOR | 9/2/2022 | 280,000 | 6,485 | — | 6,485 | |||||||||||||||
2.75% | 3-month USD-LIBOR | 9/2/2022 | 280,000 | 6,216 | — | 6,216 | |||||||||||||||
2.009% | 3-month USD-LIBOR | 10/4/2022 | 50,000 | 441 | — | 441 | |||||||||||||||
3-month USD-LIBOR | 2.6778% | 2/12/2023 | 51,000 | (1,682 | ) | — | (1,682 | ) | |||||||||||||
3-month USD-LIBOR | 3.0965% | 10/31/2023 | 46,055 | (2,613 | ) | — | (2,613 | ) | |||||||||||||
3-month USD-LIBOR | 3.09009% | 10/31/2023 | 46,320 | (2,616 | ) | — | (2,616 | ) | |||||||||||||
3-month USD-LIBOR | 2.0955% | 2/10/2024 | 14,300 | (220 | ) | — | (220 | ) | |||||||||||||
3-month USD-LIBOR | 2.0815% | 2/10/2024 | 28,700 | (423 | ) | — | (423 | ) | |||||||||||||
2.21875% | U.S. EFFR | 3/14/2024 | 54,000 | 1,758 | — | 1,758 | |||||||||||||||
3-month USD-LIBOR | 2.3875% | 3/17/2024 | 160,700 | (4,652 | ) | — | (4,652 | ) |
American Funds Insurance Series | 109 |
U.S. Government/AAA-Rated Securities Fund
Swap contracts(continued)
Interest rate swaps(continued)
Receive | Pay | Expiration date | Notional (000) | Value at 6/30/2019 (000) | Upfront payments/ receipts (000) | Unrealized (depreciation) appreciation at 6/30/2019 (000) | |||||||||||||||
3-month USD-LIBOR | 2.21079% | 3/27/2024 | $ | 48,318 | $ | (1,026 | ) | $ | — | $ | (1,026 | ) | |||||||||
3-month USD-LIBOR | 2.33% | 5/2/2024 | 48,460 | (1,286 | ) | — | (1,286 | ) | |||||||||||||
3-month USD-LIBOR | 2.588% | 1/26/2025 | 15,600 | (674 | ) | — | (674 | ) | |||||||||||||
3-month USD-LIBOR | 2.27% | 12/5/2026 | 44,900 | (1,309 | ) | — | (1,309 | ) | |||||||||||||
3-month USD-LIBOR | 2.24% | 12/5/2026 | 55,100 | (1,491 | ) | — | (1,491 | ) | |||||||||||||
2.91% | 3-month USD-LIBOR | 2/1/2028 | 16,000 | 640 | — | 640 | |||||||||||||||
2.908% | 3-month USD-LIBOR | 2/1/2028 | 16,000 | 638 | — | 638 | |||||||||||||||
2.925% | 3-month USD-LIBOR | 2/1/2028 | 12,800 | 520 | — | 520 | |||||||||||||||
2.92% | 3-month USD-LIBOR | 2/2/2028 | 12,200 | 493 | — | 493 | |||||||||||||||
U.S. EFFR | 2.5065% | 3/22/2028 | 8,700 | (606 | ) | — | (606 | ) | |||||||||||||
U.S. EFFR | 2.535% | 3/23/2028 | 6,700 | (482 | ) | — | (482 | ) | |||||||||||||
U.S. EFFR | 2.471% | 3/27/2028 | 8,100 | (541 | ) | — | (541 | ) | |||||||||||||
U.S. EFFR | 2.4575% | 3/29/2028 | 9,638 | (633 | ) | — | (633 | ) | |||||||||||||
U.S. EFFR | 2.424% | 3/30/2028 | 8,160 | (513 | ) | — | (513 | ) | |||||||||||||
U.S. EFFR | 2.412% | 4/5/2028 | 3,702 | (229 | ) | — | (229 | ) | |||||||||||||
3-month USD-LIBOR | 2.357% | 3/27/2029 | 25,175 | (934 | ) | — | (934 | ) | |||||||||||||
3-month USD-LIBOR | 1.9675% | 6/21/2029 | 50,700 | (54 | ) | — | (54 | ) | |||||||||||||
3-month USD-LIBOR | 2.97125% | 9/2/2030 | 62,000 | (5,397 | ) | — | (5,397 | ) | |||||||||||||
3-month USD-LIBOR | 3.005% | 9/2/2030 | 62,000 | (5,586 | ) | — | (5,586 | ) | |||||||||||||
3-month USD-LIBOR | 2.986% | 2/1/2038 | 7,800 | (336 | ) | — | (336 | ) | |||||||||||||
3-month USD-LIBOR | 2.9625% | 2/1/2038 | 9,800 | (404 | ) | — | (404 | ) | |||||||||||||
3-month USD-LIBOR | 2.963% | 2/1/2038 | 9,800 | (405 | ) | — | (405 | ) | |||||||||||||
3-month USD-LIBOR | 2.967% | 2/2/2038 | 7,600 | (316 | ) | — | (316 | ) | |||||||||||||
3-month USD-LIBOR | 3.34% | 6/27/2044 | 10,000 | (2,274 | ) | — | (2,274 | ) | |||||||||||||
3-month USD-LIBOR | 3.206% | 7/31/2044 | 16,000 | (3,219 | ) | — | (3,219 | ) | |||||||||||||
3-month USD-LIBOR | 3.238% | 8/8/2044 | 16,000 | (3,319 | ) | — | (3,319 | ) | |||||||||||||
3-month USD-LIBOR | 2.7045% | 1/2/2045 | 12,000 | (1,225 | ) | — | (1,225 | ) | |||||||||||||
3-month USD-LIBOR | 2.4945% | 1/9/2045 | 2,000 | (119 | ) | — | (119 | ) | |||||||||||||
3-month USD-LIBOR | 2.5055% | 1/9/2045 | 11,000 | (680 | ) | — | (680 | ) | |||||||||||||
3-month USD-LIBOR | 2.52822% | 11/23/2045 | 4,390 | (297 | ) | — | (297 | ) | |||||||||||||
U.S. EFFR | 2.166% | 10/23/2047 | 10,000 | (478 | ) | — | (478 | ) | |||||||||||||
U.S. EFFR | 2.145% | 11/9/2047 | 15,400 | (666 | ) | — | (666 | ) | |||||||||||||
U.S. EFFR | 2.155% | 11/10/2047 | 8,640 | (392 | ) | — | (392 | ) | |||||||||||||
U.S. EFFR | 2.153% | 11/10/2047 | 15,300 | (688 | ) | — | (688 | ) | |||||||||||||
U.S. EFFR | 2.17% | 11/13/2047 | 15,660 | (763 | ) | — | (763 | ) | |||||||||||||
U.S. EFFR | 2.5635% | 2/12/2048 | 33,204 | (4,528 | ) | — | (4,528 | ) | |||||||||||||
U.S. EFFR | 2.4615% | 3/15/2048 | 2,000 | (228 | ) | — | (228 | ) | |||||||||||||
U.S. EFFR | 2.485% | 3/15/2048 | 2,000 | (238 | ) | — | (238 | ) | |||||||||||||
U.S. EFFR | 2.425% | 3/16/2048 | 4,100 | (434 | ) | — | (434 | ) | |||||||||||||
U.S. EFFR | 2.505% | 3/22/2048 | 4,300 | (532 | ) | — | (532 | ) | |||||||||||||
U.S. EFFR | 2.52% | 8/24/2048 | 4,500 | (578 | ) | — | (578 | ) | |||||||||||||
$ | — | $ | (26,122 | ) |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
1 | All or a portion of this security was pledged as collateral. The total value of pledged collateral was $44,549,000, which represented 1.53% of the net assets of the fund. |
2 | Index-linked bond whose principal amount moves with a government price index. |
3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4 | Coupon rate may change periodically. |
5 | Purchased on a TBA basis. |
6 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $189,167,000, which represented 6.49% of the net assets of the fund. |
7 | Notional amount is calculated based on the number of contracts and notional contract size. |
8 | Value is calculated based on the notional amount and current market price. |
110 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
Key to abbreviations and symbol
EFFR = Effective Federal Funds Rate
LIBOR = London Interbank Offered Rate
TBA = To-be-announced
USD/$ = U.S. dollars
See notes to financial statements.
American Funds Insurance Series | 111 |
Managed Risk Growth Fund | |
Investment portfolioJune 30, 2019 | unaudited |
Growth funds 80.33% | Shares | Value (000) | ||||||
American Funds Insurance Series – Growth Fund, Class 1 | 4,379,254 | $ | 319,116 | |||||
Total growth funds (cost: $310,329,000) | 319,116 | |||||||
Fixed income funds 15.07% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 5,385,043 | 59,882 | ||||||
Total fixed income funds (cost: $58,127,000) | 59,882 | |||||||
Short-term securities 4.64% | ||||||||
Government Cash Management Fund | 18,453,168 | 18,453 | ||||||
Total short-term securities (cost: $18,453,000) | 18,453 | |||||||
Total investment securities 100.04% (cost: $386,909,000) | 397,451 | |||||||
Other assets less liabilities (0.04)% | (166 | ) | ||||||
Net assets 100.00% | $ | 397,285 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 1 | Value at 6/30/2019 (000) | 2 | Unrealized appreciation at 6/30/2019 (000) | |||||||||||
5 Year U.S. Treasury Note Futures | Long | 176 | September 2019 | $ | 17,600 | $ | 20,796 | $ | 171 |
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the six months ended June 30, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (loss) (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 6/30/2019 (000) | |||||||||||||||||||||||||
Growth funds 80.33% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Growth Fund, Class 1 | 3,963,500 | 649,589 | 233,835 | 4,379,254 | $ | 1,612 | $ | 10,668 | $ | 760 | $ | 319,116 | ||||||||||||||||||||
Fixed income funds 15.07% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 5,110,855 | 820,544 | 546,356 | 5,385,043 | (128 | ) | 3,566 | 329 | 59,882 | |||||||||||||||||||||||
Total 95.40% | $ | 1,484 | $ | 14,234 | $ | 1,089 | $ | 378,998 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
112 | American Funds Insurance Series |
Managed Risk International Fund | |
Investment portfolioJune 30, 2019 | unaudited |
Growth funds 81.74% | Shares | Value (000) | ||||||
American Funds Insurance Series – International Fund, Class 1 | 6,766,242 | $ | 133,633 | |||||
Total growth funds (cost: $125,851,000) | 133,633 | |||||||
Fixed income funds 15.02% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 2,208,551 | 24,559 | ||||||
Total fixed income funds (cost: $23,937,000) | 24,559 | |||||||
Short-term securities 3.31% | ||||||||
Government Cash Management Fund | 5,406,881 | 5,407 | ||||||
Total short-term securities (cost: $5,407,000) | 5,407 | |||||||
Total investment securities 100.07% (cost: $155,195,000) | 163,599 | |||||||
Other assets less liabilities (0.07)% | (110 | ) | ||||||
Net assets 100.00% | $ | 163,489 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 1 | Value at 6/30/2019 (000) | 2 | Unrealized appreciation at 6/30/2019 (000) | |||||||||||
5 Year U.S. Treasury Note Futures | Long | 52 | September 2019 | $ | 5,200 | $ | 6,144 | $ | 77 |
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the six months ended June 30, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized loss (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 6/30/2019 (000) | |||||||||||||||||||||||||
Growth funds 81.74% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – International Fund, Class 1 | 6,802,836 | 279,511 | 316,105 | 6,766,242 | $ | (267 | ) | $ | 14,505 | $ | 231 | $ | 133,633 | |||||||||||||||||||
Fixed income funds 15.02% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 2,162,908 | 188,213 | 142,570 | 2,208,551 | (8 | ) | 1,453 | 136 | 24,559 | |||||||||||||||||||||||
Total 96.76% | $ | (275 | ) | $ | 15,958 | $ | 367 | $ | 158,192 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
American Funds Insurance Series | 113 |
Managed Risk Blue Chip Income and Growth Fund | |
Investment portfolioJune 30, 2019 | unaudited |
Growth-and-income funds 80.48% | Shares | Value (000) | ||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 22,572,855 | $ | 284,644 | |||||
Total growth-and-income funds(cost: $302,622,000) | 284,644 | |||||||
Fixed income funds 14.98% | ||||||||
American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund, Class 1 | 4,256,895 | 52,998 | ||||||
Total fixed income funds(cost: $51,724,000) | 52,998 | |||||||
Short-term securities 4.60% | ||||||||
Government Cash Management Fund | 16,260,701 | 16,261 | ||||||
Total short-term securities(cost: $16,261,000) | 16,261 | |||||||
Total investment securities 100.06%(cost: $370,607,000) | 353,903 | |||||||
Other assets less liabilities (0.06)% | (218 | ) | ||||||
Net assets 100.00% | $ | 353,685 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 1 | Value at 6/30/2019 (000) | 2 | Unrealized appreciation at 6/30/2019 (000) | |||||||||||
5 Year U.S. Treasury Note Futures | Long | 156 | September 2019 | $ | 15,600 | $ | 18,432 | $ | 124 |
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the six months ended June 30, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (loss) (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 6/30/2019 (000) | |||||||||||||||||||||||||
Growth-and-income funds 80.48% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Blue Chip Income and Growth Fund, Class 1 | 21,901,978 | 2,214,200 | 1,543,323 | 22,572,855 | $ | 725 | $ | 5,504 | $ | 1,232 | $ | 284,644 | ||||||||||||||||||||
Fixed income funds 14.98% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – U.S. Government/AAA-Rated Securities Fund, Class 1 | 4,484,388 | 331,058 | 558,551 | 4,256,895 | (63 | ) | 2,289 | 216 | 52,998 | |||||||||||||||||||||||
Total 95.46% | $ | 662 | $ | 7,793 | $ | 1,448 | $ | 337,642 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
114 | American Funds Insurance Series |
Managed Risk Growth-Income Fund | |
Investment portfolioJune 30, 2019 | unaudited |
Growth-and-income funds 80.09% | Shares | Value (000) | ||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 36,295,689 | $ | 1,716,423 | |||||
Total growth-and-income funds (cost: $1,674,045,000) | 1,716,423 | |||||||
Fixed income funds 15.03% | ||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 28,964,402 | 322,084 | ||||||
Total fixed income funds (cost: $302,916,000) | 322,084 | |||||||
Short-term securities 4.60% | ||||||||
Government Cash Management Fund | 98,442,508 | 98,443 | ||||||
Total short-term securities (cost: $98,443,000) | 98,443 | |||||||
Options purchased 0.19% | ||||||||
Options purchased* | 4,101 | |||||||
Total options purchased (cost: $14,339,000) | 4,101 | |||||||
Total investment securities 99.91% (cost: $2,089,743,000) | 2,141,051 | |||||||
Other assets less liabilities 0.09% | 1,997 | |||||||
Net assets 100.00% | $ | 2,143,048 |
*Options purchased
Put
Description | Number of contracts | Notional amount (000) | Exercise price | Expiration date | Value at 6/30/2019 (000) | ||||||||||||
S&P 500 Index | 620 | $ | 1,824 | $ | 1,850.00 | 9/20/2019 | $ | 47 | |||||||||
S&P 500 Index | 1,155 | 3,398 | 1,875.00 | 9/20/2019 | 92 | ||||||||||||
S&P 500 Index | 1,200 | 3,530 | 1,900.00 | 9/20/2019 | 108 | ||||||||||||
S&P 500 Index | 330 | 971 | 1,925.00 | 9/20/2019 | 31 | ||||||||||||
S&P 500 Index | 1,225 | 3,604 | 1,975.00 | 9/20/2019 | 141 | ||||||||||||
S&P 500 Index | 365 | 1,074 | 2,000.00 | 9/20/2019 | 46 | ||||||||||||
S&P 500 Index | 930 | 2,736 | 2,025.00 | 9/20/2019 | 121 | ||||||||||||
S&P 500 Index | 425 | 1,250 | 2,200.00 | 9/20/2019 | 106 | ||||||||||||
S&P 500 Index | 3,195 | 9,399 | 2,150.00 | 12/20/2019 | 2,492 | ||||||||||||
S&P 500 Index | 670 | 1,971 | 2,175.00 | 12/20/2019 | 569 | ||||||||||||
S&P 500 Index | 35 | 103 | 2,200.00 | 12/20/2019 | 34 | ||||||||||||
S&P 500 Index | 150 | 441 | 2,225.00 | 12/20/2019 | 153 | ||||||||||||
S&P 500 Index | 135 | 397 | 2,275.00 | 12/20/2019 | 161 | ||||||||||||
$ | 4,101 |
American Funds Insurance Series | 115 |
Managed Risk Growth-Income Fund
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 1 | Value at 6/30/2019 (000) | 2 | Unrealized appreciation at 6/30/2019 (000) | |||||||||||
5 Year U.S. Treasury Note Futures | Long | 1,008 | September 2019 | $ | 100,800 | $ | 119,101 | $ | 1,476 | ||||||||||
S&P 500 E-mini Index Contracts | Long | 366 | September 2019 | 18 | 53,879 | 836 | |||||||||||||
$ | 2,312 |
Investments in affiliates
These holdings are affiliates of the fund under the Investment Company Act of 1940 since they are controlled by the same board of trustees as the series. Further details on these holdings and related transactions during the six months ended June 30, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (loss) (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliates at 6/30/2019 (000) | |||||||||||||||||||||||||
Growth-and-income funds 80.09% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Growth-Income Fund, Class 1 | 33,123,343 | 4,277,296 | 1,104,950 | 36,295,689 | $ | 5,425 | $ | 61,682 | $ | 5,628 | $ | 1,716,423 | ||||||||||||||||||||
Fixed income funds 15.03% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Bond Fund, Class 1 | 26,945,898 | 2,920,407 | 901,903 | 28,964,402 | (16 | ) | 18,586 | 1,795 | 322,084 | |||||||||||||||||||||||
Total 95.12% | $ | 5,409 | $ | 80,268 | $ | 7,423 | $ | 2,038,507 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
116 | American Funds Insurance Series |
Managed Risk Asset Allocation Fund | |
Investment portfolioJune 30, 2019 | unaudited |
Asset allocation funds 96.70% | Shares | Value (000) | ||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 116,101,695 | $ | 2,618,094 | |||||
Total asset allocation funds (cost: $2,531,679,000) | 2,618,094 | |||||||
Short-term securities 3.36% | ||||||||
Government Cash Management Fund | 90,932,387 | 90,932 | ||||||
Total short-term securities (cost: $90,932,000) | 90,932 | |||||||
Total investment securities 100.06% (cost: $2,622,611,000) | 2,709,026 | |||||||
Other assets less liabilities (0.06)% | (1,691 | ) | ||||||
Net assets 100.00% | $ | 2,707,335 |
Futures contracts
Contracts | Type | Number of contracts | Expiration | Notional amount (000) | 1 | Value at 6/30/2019 (000) | 2 | Unrealized appreciation at 6/30/2019 (000) | |||||||||||
5 Year U.S. Treasury Note Futures | Long | 873 | September 2019 | $ | 87,300 | $ | 103,150 | $ | 1,321 |
Investment in affiliates
This holding is an affiliate of the fund under the Investment Company Act of 1940 since it is controlled by the same board of trustees as the series. Further details on this holding and related transactions during the six months ended June 30, 2019, appear below.
Beginning shares | Additions | Reductions | Ending shares | Net realized gain (000) | Net unrealized appreciation (000) | Dividend income (000) | Value of affiliate at 6/30/2019 (000) | |||||||||||||||||||||||||
Asset allocation funds 96.70% | ||||||||||||||||||||||||||||||||
American Funds Insurance Series – Asset Allocation Fund, Class 1 | 115,468,223 | 7,167,637 | 6,534,165 | 116,101,695 | $ | 6,021 | $ | 140,238 | $ | 11,862 | $ | 2,618,094 |
1 | Notional amount is calculated based on the number of contracts and notional contract size. |
2 | Value is calculated based on the notional amount and current market price. |
See notes to financial statements.
American Funds Insurance Series | 117 |
Statements of assets and liabilities
at June 30, 2019
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Assets: | �� | |||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ | 6,292,071 | $ | 4,467,434 | $ | 26,404,106 | $ | 9,849,054 | $ | 3,449,625 | ||||||||||
Affiliated issuers | — | 21,463 | — | — | — | |||||||||||||||
Cash | 105 | 2,149 | 3,505 | 1,326 | 5,311 | |||||||||||||||
Cash collateral received for securities on loan | — | 13,264 | — | — | — | |||||||||||||||
Cash pledged for forward currency contracts | — | — | — | 334 | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | 977 | 1,051 | 49 | 5,037 | 1,185 | |||||||||||||||
Unrealized appreciation on open forward currency contracts | — | — | — | 124 | — | |||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 33,579 | 83,557 | 115,497 | 15,264 | 5,128 | |||||||||||||||
Sales of fund’s shares | 900 | 288 | 8,846 | 4,456 | 927 | |||||||||||||||
Dividends and interest | 19,016 | 4,910 | 32,460 | 24,949 | 11,627 | |||||||||||||||
Variation margin on futures contracts | — | — | — | — | — | |||||||||||||||
Variation margin on swap contracts | — | — | — | — | — | |||||||||||||||
Securities lending income | — | 530 | — | — | — | |||||||||||||||
Other | 361 | 178 | 24 | — | 1,910 | |||||||||||||||
6,347,009 | 4,594,824 | 26,564,487 | 9,900,544 | 3,475,713 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Collateral for securities on loan | — | 132,644 | — | — | — | |||||||||||||||
Unrealized depreciation on open forward currency contracts | — | — | — | 340 | — | |||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 2,597 | 17,942 | 52,929 | 36,561 | 1,526 | |||||||||||||||
Repurchases of fund’s shares | 12,360 | 4,650 | 18,287 | 6,738 | 2,868 | |||||||||||||||
Investment advisory services | 2,625 | 2,485 | 6,872 | 3,874 | 1,937 | |||||||||||||||
Insurance administrative fees | 195 | 108 | 791 | 212 | 340 | |||||||||||||||
Services provided by related parties | 863 | 536 | 3,529 | 988 | 326 | |||||||||||||||
Trustees’ deferred compensation | 73 | 49 | 491 | 206 | 33 | |||||||||||||||
Variation margin on futures contracts | — | — | — | — | — | |||||||||||||||
Variation margin on swap contracts | — | — | — | — | — | |||||||||||||||
Non-U.S. taxes | 4,073 | 2,897 | 2,475 | 17,683 | 7,920 | |||||||||||||||
Other | 94 | 92 | 82 | 273 | 111 | |||||||||||||||
22,880 | 161,403 | 85,456 | 66,875 | 15,061 | ||||||||||||||||
Net assets at June 30, 2019 | $ | 6,324,129 | $ | 4,433,421 | $ | 26,479,031 | $ | 9,833,669 | $ | 3,460,652 | ||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 3,910,174 | $ | 3,380,706 | $ | 16,135,118 | $ | 8,093,962 | $ | 2,717,511 | ||||||||||
Total distributable earnings (accumulated loss) | 2,413,955 | 1,052,715 | 10,343,913 | 1,739,707 | 743,141 | |||||||||||||||
Net assets at June 30, 2019 | $ | 6,324,129 | $ | 4,433,421 | $ | 26,479,031 | $ | 9,833,669 | $ | 3,460,652 | ||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ | 3,971,692 | $ | 3,578,886 | $ | 16,493,656 | $ | 7,964,175 | $ | 2,745,515 | ||||||||||
Affiliated issuers | — | 45,822 | — | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | 977 | 1,049 | 49 | 5,037 | 1,185 |
See end of statements of assets and liabilities for footnote.
See notes to financial statements.
118 | American Funds Insurance Series |
unaudited
(dollars in thousands)
Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | ||||||||||||||||||||||||||
$ | 8,904,358 | $ | 2,034,357 | $ | 33,547,290 | $ | 1,430,859 | $ | 834,202 | $ | 25,597,369 | $ | 415,057 | $ | 11,303,189 | $ | 2,145,654 | |||||||||||||||||
— | — | 279,983 | — | — | 410,393 | — | — | — | ||||||||||||||||||||||||||
2,383 | 764 | 6,952 | 52 | 1,123 | 13,360 | 140 | 4,950 | 628 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | 1,884 | 57 | 1,229 | 206 | 909 | 668 | — | * | 3,740 | |||||||||||||||||||||||||
— | — | — | 5 | — | — | 102 | 4,506 | 2,437 | ||||||||||||||||||||||||||
12,777 | 16,576 | 165,603 | 4,640 | 1,933 | 72,991 | 669 | 491,618 | 18,103 | ||||||||||||||||||||||||||
3,671 | 123 | 11,682 | 256 | 1,670 | 13,007 | 297 | 5,730 | 363 | ||||||||||||||||||||||||||
15,659 | 8,098 | 49,712 | 5,825 | 3,659 | 90,474 | 2,331 | 68,766 | 16,871 | ||||||||||||||||||||||||||
— | — | — | — | — | 346 | — | 415 | 126 | ||||||||||||||||||||||||||
— | — | — | — | 137 | 324 | 3 | 486 | 132 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
4 | 383 | 188 | 29 | 7 | 184 | 20 | 36 | 42 | ||||||||||||||||||||||||||
8,938,852 | 2,062,185 | 34,061,467 | 1,442,895 | 842,937 | 26,199,357 | 419,287 | 11,879,696 | 2,188,096 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
— | 94 | — | — | — | — | 100 | 7,567 | 2,882 | ||||||||||||||||||||||||||
98,141 | 3,760 | 53,986 | 4,169 | 2,021 | 705,716 | 2,936 | 1,422,728 | 22,354 | ||||||||||||||||||||||||||
3,561 | 1,930 | 24,454 | 2,218 | 271 | 9,867 | 193 | 3,616 | 1,506 | ||||||||||||||||||||||||||
2,771 | 985 | 7,026 | 702 | 328 | 5,494 | 220 | 3,096 | 938 | ||||||||||||||||||||||||||
296 | 72 | 655 | 53 | 249 | 2,450 | 50 | 256 | 28 | ||||||||||||||||||||||||||
775 | 314 | 3,178 | 78 | 89 | 2,034 | 60 | 911 | 242 | ||||||||||||||||||||||||||
84 | 23 | 567 | 10 | 3 | 267 | 2 | 118 | 25 | ||||||||||||||||||||||||||
— | — | — | — | 35 | 668 | — | 1,735 | 91 | ||||||||||||||||||||||||||
— | — | — | — | 161 | 77 | — | 422 | 41 | ||||||||||||||||||||||||||
39 | 1,774 | 2,221 | 1,244 | 83 | 1,971 | 152 | — | 506 | ||||||||||||||||||||||||||
4 | 46 | 88 | 38 | 8 | 34 | 6 | — | 102 | ||||||||||||||||||||||||||
105,671 | 8,998 | 92,175 | 8,512 | 3,248 | 728,578 | 3,719 | 1,440,449 | 28,715 | ||||||||||||||||||||||||||
$ | 8,833,181 | $ | 2,053,187 | $ | 33,969,292 | $ | 1,434,383 | $ | 839,689 | $ | 25,470,779 | $ | 415,568 | $ | 10,439,247 | $ | 2,159,381 | |||||||||||||||||
$ | 7,235,947 | $ | 1,523,277 | $ | 24,698,795 | $ | 1,271,807 | $ | 816,644 | $ | 20,247,437 | $ | 344,682 | $ | 10,062,950 | $ | 2,077,232 | |||||||||||||||||
1,597,234 | 529,910 | 9,270,497 | 162,576 | 23,045 | 5,223,342 | 70,886 | 376,297 | 82,149 | ||||||||||||||||||||||||||
$ | 8,833,181 | $ | 2,053,187 | $ | 33,969,292 | $ | 1,434,383 | $ | 839,689 | $ | 25,470,779 | $ | 415,568 | $ | 10,439,247 | $ | 2,159,381 | |||||||||||||||||
$ | 7,420,391 | $ | 1,537,132 | $ | 24,993,310 | $ | 1,276,610 | $ | 796,567 | $ | 20,539,556 | $ | 359,712 | $ | 11,012,076 | $ | 2,082,258 | |||||||||||||||||
— | — | 277,584 | — | — | 432,743 | — | — | — | ||||||||||||||||||||||||||
— | 1,884 | 57 | 1,229 | 206 | 909 | 649 | — | * | 3,734 |
American Funds Insurance Series | 119 |
Statements of assets and liabilities
at June 30, 2019
High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Assets: | ||||||||||||||||||||
Investment securities, at value: | ||||||||||||||||||||
Unaffiliated issuers | $ | 1,281,384 | $ | 294,528 | $ | 285,192 | $ | 2,971,620 | $ | 18,453 | ||||||||||
Affiliated issuers | — | — | — | — | 378,998 | |||||||||||||||
Cash | 1,083 | 1,156 | 103 | 8,083 | — | |||||||||||||||
Cash pledged for futures contracts | — | — | — | — | 116 | |||||||||||||||
Cash pledged for swap contracts | 1,722 | — | — | — | — | |||||||||||||||
Cash denominated in currencies other than U.S. dollars | — | * | — | — | — | — | ||||||||||||||
Receivables for: | ||||||||||||||||||||
Sales of investments | 8,980 | 3,337 | — | 81,518 | — | |||||||||||||||
Sales of fund’s shares | 440 | 39 | 421 | 724 | 640 | |||||||||||||||
Dividends and interest | 18,932 | 876 | — | 13,239 | 35 | |||||||||||||||
Variation margin on futures contracts | — | 6 | — | 80 | — | |||||||||||||||
Variation margin on swap contracts | — | 319 | — | 2,963 | — | |||||||||||||||
Other | 3 | — | — | — | — | |||||||||||||||
1,312,544 | 300,261 | 285,716 | 3,078,227 | 398,242 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Payables for: | ||||||||||||||||||||
Purchases of investments | 30,769 | 8,654 | — | 158,692 | 600 | |||||||||||||||
Repurchases of fund’s shares | 645 | 249 | 75 | 1,113 | 8 | |||||||||||||||
Investment advisory services | 496 | 101 | 75 | 813 | 32 | |||||||||||||||
Insurance administrative fees | 37 | 13 | 13 | 65 | 238 | |||||||||||||||
Services provided by related parties | 164 | 19 | 55 | 323 | 77 | |||||||||||||||
Trustees’ deferred compensation | 47 | 3 | 16 | 58 | 2 | |||||||||||||||
Variation margin on futures contracts | — | 31 | — | 413 | — | |||||||||||||||
Variation margin on swap contracts | 93 | 230 | — | 1,961 | — | |||||||||||||||
Other | 1 | — | — | 1 | — | |||||||||||||||
32,252 | 9,300 | 234 | 163,439 | 957 | ||||||||||||||||
Net assets at June 30, 2019 | $ | 1,280,292 | $ | 290,961 | $ | 285,482 | $ | 2,914,788 | $ | 397,285 | ||||||||||
Net assets consist of: | ||||||||||||||||||||
Capital paid in on shares of beneficial interest | $ | 1,439,238 | $ | 285,147 | $ | 282,809 | $ | 2,839,370 | $ | 369,993 | ||||||||||
Total distributable earnings (accumulated loss) | (158,946 | ) | 5,814 | 2,673 | 75,418 | 27,292 | ||||||||||||||
Net assets at June 30, 2019 | $ | 1,280,292 | $ | 290,961 | $ | 285,482 | $ | 2,914,788 | $ | 397,285 | ||||||||||
Investment securities, at cost: | ||||||||||||||||||||
Unaffiliated issuers | $ | 1,293,910 | $ | 289,947 | $ | 285,230 | $ | 2,919,488 | $ | 18,453 | ||||||||||
Affiliated issuers | — | — | — | — | 368,456 | |||||||||||||||
Cash denominated in currencies other than U.S. dollars, at cost | — | * | — | — | — | — |
See end of statements of assets and liabilities for footnote.
See notes to financial statements.
120 | American Funds Insurance Series |
unaudited
(dollars in thousands)
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | |||||||||||
$ | 5,407 | $ | 16,261 | $ | 102,544 | $ | 90,932 | |||||||
158,192 | 337,642 | 2,038,507 | 2,618,094 | |||||||||||
— | — | — | — | |||||||||||
35 | 103 | 2,771 | 576 | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
180 | 614 | 525 | 165 | |||||||||||
— | 7 | 5,241 | 916 | |||||||||||
10 | 31 | 184 | 174 | |||||||||||
— | — | 336 | — | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
163,824 | 354,658 | 2,150,108 | 2,710,857 | |||||||||||
— | — | 4,838 | 523 | |||||||||||
190 | 654 | 701 | 539 | |||||||||||
13 | 29 | 173 | 220 | |||||||||||
99 | 218 | 1,294 | 1,672 | |||||||||||
32 | 70 | 51 | 543 | |||||||||||
1 | 2 | 3 | 25 | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | |||||||||||
— | — | — | — | * | ||||||||||
335 | 973 | 7,060 | 3,522 | |||||||||||
$ | 163,489 | $ | 353,685 | $ | 2,143,048 | $ | 2,707,335 | |||||||
$ | 161,106 | $ | 358,742 | $ | 1,952,652 | $ | 2,525,386 | |||||||
2,383 | (5,057 | ) | 190,396 | 181,949 | ||||||||||
$ | 163,489 | $ | 353,685 | $ | 2,143,048 | $ | 2,707,335 | |||||||
$ | 5,407 | $ | 16,261 | $ | 112,782 | $ | 90,932 | |||||||
149,788 | 354,346 | 1,976,961 | 2,531,679 | |||||||||||
— | — | — | — |
American Funds Insurance Series | 121 |
Statements of assets and liabilities
at June 30, 2019
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized | ||||||||||||||||||||
Class 1: | ||||||||||||||||||||
Net assets | $ | 2,253,727 | $ | 1,950,955 | $ | 9,854,415 | $ | 5,250,839 | $ | 1,937,868 | ||||||||||
Shares outstanding | 76,428 | 79,549 | 135,225 | 265,872 | 80,670 | |||||||||||||||
Net asset value per share | $ | 29.49 | $ | 24.53 | $ | 72.87 | $ | 19.75 | $ | 24.02 | ||||||||||
Class 1A: | ||||||||||||||||||||
Net assets | $ | 6,904 | $ | 451 | $ | 14,263 | $ | 5,729 | $ | 3,668 | ||||||||||
Shares outstanding | 235 | 18 | 197 | 291 | 153 | |||||||||||||||
Net asset value per share | $ | 29.39 | $ | 24.47 | $ | 72.58 | $ | 19.68 | $ | 23.93 | ||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 3,741,575 | $ | 2,302,336 | $ | 15,090,117 | $ | 4,199,689 | $ | 949,549 | ||||||||||
Shares outstanding | 128,267 | 96,743 | 208,884 | 213,654 | 39,940 | |||||||||||||||
Net asset value per share | $ | 29.17 | $ | 23.80 | $ | 72.24 | $ | 19.66 | $ | 23.77 | ||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 208,738 | $ | 25,666 | ||||||||||||||||
Shares outstanding | Not applicable | Not applicable | 2,844 | 1,297 | Not applicable | |||||||||||||||
Net asset value per share | $ | 73.38 | $ | 19.79 | ||||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 321,923 | $ | 179,679 | $ | 1,311,498 | $ | 351,746 | $ | 569,567 | ||||||||||
Shares outstanding | 11,100 | 7,510 | 18,423 | 18,114 | 24,076 | |||||||||||||||
Net asset value per share | $ | 29.00 | $ | 23.93 | $ | 71.19 | $ | 19.42 | $ | 23.66 | ||||||||||
High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — unlimited shares authorized | ||||||||||||||||||||
Class 1: | ||||||||||||||||||||
Net assets | $ | 526,021 | $ | 210,103 | $ | 31,614 | $ | 1,456,773 | ||||||||||||
Shares outstanding | 51,912 | 19,687 | 2,776 | 117,076 | Not applicable | |||||||||||||||
Net asset value per share | $ | 10.13 | $ | 10.68 | $ | 11.39 | $ | 12.45 | ||||||||||||
Class 1A: | ||||||||||||||||||||
Net assets | $ | 618 | $ | 591 | $ | 10 | $ | 2,253 | ||||||||||||
Shares outstanding | 61 | 56 | 1 | 181 | Not applicable | |||||||||||||||
Net asset value per share | $ | 10.11 | $ | 10.65 | $ | 11.39 | $ | 12.42 | ||||||||||||
Class 2: | ||||||||||||||||||||
Net assets | $ | 684,987 | $ | 58,392 | $ | 228,986 | $ | 1,333,862 | ||||||||||||
Shares outstanding | 68,799 | 5,486 | 20,648 | 108,365 | Not applicable | |||||||||||||||
Net asset value per share | $ | 9.96 | $ | 10.65 | $ | 11.09 | $ | 12.31 | ||||||||||||
Class 3: | ||||||||||||||||||||
Net assets | $ | 10,135 | $ | 3,271 | $ | 8,842 | ||||||||||||||
Shares outstanding | 996 | Not applicable | 292 | 709 | Not applicable | |||||||||||||||
Net asset value per share | $ | 10.17 | $ | 11.21 | $ | 12.47 | ||||||||||||||
Class 4: | ||||||||||||||||||||
Net assets | $ | 58,531 | $ | 21,875 | $ | 21,601 | $ | 113,058 | ||||||||||||
Shares outstanding | 5,423 | 2,076 | 1,928 | 9,185 | Not applicable | |||||||||||||||
Net asset value per share | $ | 10.79 | $ | 10.55 | $ | 11.20 | $ | 12.31 | ||||||||||||
Class P1: | ||||||||||||||||||||
Net assets | $ | 3,799 | ||||||||||||||||||
Shares outstanding | Not applicable | Not applicable | Not applicable | Not applicable | 300 | |||||||||||||||
Net asset value per share | $ | 12.66 | ||||||||||||||||||
Class P2: | ||||||||||||||||||||
Net assets | $ | 393,486 | ||||||||||||||||||
Shares outstanding | Not applicable | Not applicable | Not applicable | Not applicable | 31,287 | |||||||||||||||
Net asset value per share | $ | 12.58 |
* | Amount less than one thousand. |
See notes to financial statements.
122 | American Funds Insurance Series |
unaudited
(dollars and shares in thousands, except per-share amounts)
Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | ||||||||||||||||||||||||||
$ | 5,316,112 | $ | 572,884 | $ | 19,494,000 | $ | 1,096,356 | $ | 420,981 | $ | 16,367,279 | $ | 128,680 | $ | 6,397,660 | $ | 1,065,399 | |||||||||||||||||
421,738 | 38,895 | 412,232 | 63,142 | 41,463 | 725,706 | 9,778 | 575,311 | 88,161 | ||||||||||||||||||||||||||
$ | 12.61 | $ | 14.73 | $ | 47.29 | $ | 17.36 | $ | 10.15 | $ | 22.55 | $ | 13.16 | $ | 11.12 | $ | 12.08 | |||||||||||||||||
$ | 7,002 | $ | 1,590 | $ | 9,123 | $ | 2,265 | $ | 4,699 | $ | 8,823 | $ | 2,229 | $ | 4,888 | $ | 426 | |||||||||||||||||
558 | 108 | 194 | 131 | 463 | 392 | 170 | 441 | 35 | ||||||||||||||||||||||||||
$ | 12.55 | $ | 14.69 | $ | 47.11 | $ | 17.33 | $ | 10.14 | $ | 22.49 | $ | 13.13 | $ | 11.08 | $ | 12.06 | |||||||||||||||||
$ | 3,011,473 | $ | 1,356,728 | $ | 13,224,947 | $ | 248,271 | $ | 4,595 | $ | 4,991,791 | $ | 201,188 | $ | 3,601,946 | $ | 1,047,169 | |||||||||||||||||
242,233 | 92,360 | 283,340 | 14,354 | 453 | 223,861 | 15,330 | 328,296 | 87,377 | ||||||||||||||||||||||||||
$ | 12.43 | $ | 14.69 | $ | 46.68 | $ | 17.30 | $ | 10.15 | $ | 22.30 | $ | 13.12 | $ | 10.97 | $ | 11.98 | |||||||||||||||||
$ | 153,393 | $ | 31,478 | |||||||||||||||||||||||||||||||
Not applicable | Not applicable | 3,239 | Not applicable | Not applicable | 1,395 | Not applicable | Not applicable | Not applicable | ||||||||||||||||||||||||||
$ | 47.35 | $ | 22.57 | |||||||||||||||||||||||||||||||
$ | 498,594 | $ | 121,985 | $ | 1,087,829 | $ | 87,491 | $ | 409,414 | $ | 4,071,408 | $ | 83,471 | $ | 434,753 | $ | 46,387 | |||||||||||||||||
40,319 | 8,437 | 23,578 | 5,091 | 40,405 | 183,581 | 6,423 | 39,719 | 3,908 | ||||||||||||||||||||||||||
$ | 12.37 | $ | 14.46 | $ | 46.14 | $ | 17.19 | $ | 10.13 | $ | 22.18 | $ | 13.00 | $ | 10.95 | $ | 11.87 | |||||||||||||||||
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund |
| ||||||||||||||||||||||||||||||
Not applicable | Not applicable | Not applicable | Not applicable | |||||||||||||||||||||||||||||||
Not applicable | Not applicable | Not applicable | Not applicable | |||||||||||||||||||||||||||||||
Not applicable | Not applicable | Not applicable | Not applicable | |||||||||||||||||||||||||||||||
Not applicable | Not applicable | Not applicable | Not applicable | |||||||||||||||||||||||||||||||
Not applicable | Not applicable | Not applicable | Not applicable | |||||||||||||||||||||||||||||||
$ | 567 | $ | 672 | $ | 1,883,081 | $ | 1,537 | |||||||||||||||||||||||||||
55 | 60 | 145,742 | 120 | |||||||||||||||||||||||||||||||
$ | 10.39 | $ | 11.22 | $ | 12.92 | $ | 12.85 | |||||||||||||||||||||||||||
$ | 162,922 | $ | 353,013 | $ | 259,967 | $ | 2,705,798 | |||||||||||||||||||||||||||
15,782 | 31,695 | 20,224 | 216,166 | |||||||||||||||||||||||||||||||
$ | 10.32 | $ | 11.14 | $ | 12.85 | $ | 12.52 |
American Funds Insurance Series | 123 |
Statements of operations
for the six months ended June 30, 2019
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net of non-U.S. taxes*): | ||||||||||||||||||||
Dividends | $ | 59,127 | $ | 27,009 | $ | 173,200 | $ | 117,809 | $ | 28,596 | ||||||||||
Interest | 1,479 | 2,009 | 10,181 | 9,148 | 9,771 | |||||||||||||||
Securities lending income | — | 2,505 | — | — | — | |||||||||||||||
60,606 | 31,523 | 183,381 | 126,957 | 38,367 | ||||||||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 15,660 | 14,498 | 41,304 | 23,510 | 11,522 | |||||||||||||||
Distribution services | 4,881 | 3,004 | 20,182 | 5,561 | 1,785 | |||||||||||||||
Insurance administrative services | 371 | 208 | 1,543 | 413 | 658 | |||||||||||||||
Transfer agent services | — | † | — | † | 1 | 1 | — | † | ||||||||||||
Administrative services | 303 | 208 | 1,280 | 478 | 164 | |||||||||||||||
Reports to shareholders | 98 | 80 | 423 | 158 | 66 | |||||||||||||||
Registration statement and prospectus | 101 | 105 | 311 | 228 | 83 | |||||||||||||||
Trustees’ compensation | 20 | 13 | 86 | 32 | 11 | |||||||||||||||
Auditing and legal | 8 | 32 | 14 | 28 | 27 | |||||||||||||||
Custodian | 319 | 336 | 258 | 756 | 387 | |||||||||||||||
Other | 16 | 74 | 135 | 88 | 67 | |||||||||||||||
Total fees and expenses before waivers/reimbursements | 21,777 | 18,558 | 65,537 | 31,253 | 14,770 | |||||||||||||||
Less waivers/reimbursements of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | — | — | — | — | — | |||||||||||||||
Total waivers/reimbursements of fees and expenses | — | — | — | — | — | |||||||||||||||
Total fees and expenses after waivers/reimbursements | 21,777 | 18,558 | 65,537 | 31,253 | 14,770 | |||||||||||||||
Net investment income (loss) | 38,829 | 12,965 | 117,844 | 95,704 | 23,597 | |||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation): | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 59,018 | 143,915 | 342,715 | (171,606 | ) | 24,403 | ||||||||||||||
Affiliated issuers* | — | — | — | — | — | |||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Forward currency contracts | — | — | — | (999 | ) | 303 | ||||||||||||||
Swap contracts | — | — | — | — | — | |||||||||||||||
Currency transactions | (405 | ) | (66 | ) | (432 | ) | (2,451 | ) | 234 | |||||||||||
58,613 | 143,849 | 342,283 | (175,056 | ) | 24,940 | |||||||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 1,056,160 | 592,974 | 3,428,550 | 1,399,575 | 518,304 | |||||||||||||||
Affiliated issuers | — | (8,519 | ) | — | — | — | ||||||||||||||
Futures contracts | — | — | — | — | — | |||||||||||||||
Forward currency contracts | — | — | — | 309 | (303 | ) | ||||||||||||||
Swap contracts | — | — | — | — | — | |||||||||||||||
Currency translations | (17 | ) | 63 | 103 | (200 | ) | 1,911 | |||||||||||||
1,056,143 | 584,518 | 3,428,653 | 1,399,684 | 519,912 | ||||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) | 1,114,756 | 728,367 | 3,770,936 | 1,224,628 | 544,852 | |||||||||||||||
Net increase in net assets resulting from operations | $ | 1,153,585 | $ | 741,332 | $ | 3,888,780 | $ | 1,320,332 | $ | 568,449 |
See end of statements of operations for footnotes.
See notes to financial statements.
124 | American Funds Insurance Series |
unaudited
(dollars in thousands)
Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | Bond Fund | Global Bond Fund | ||||||||||||||||||||||||||
$ | 116,477 | $ | 30,394 | $ | 343,652 | $ | 29,733 | $ | 13,137 | $ | 191,059 | $ | 4,119 | $ | 7,023 | $ | 514 | |||||||||||||||||
1,839 | 1,918 | 15,606 | 1,701 | 2,865 | 133,265 | 1,954 | 158,778 | 34,892 | ||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
118,316 | 32,312 | 359,258 | 31,434 | 16,002 | 324,324 | 6,073 | 165,801 | 35,406 | ||||||||||||||||||||||||||
16,752 | 5,841 | 41,781 | 4,252 | 1,885 | 32,618 | 1,292 | 18,126 | 5,572 | ||||||||||||||||||||||||||
4,295 | 1,777 | 17,492 | 403 | 484 | 10,974 | 337 | 4,867 | 1,326 | ||||||||||||||||||||||||||
556 | 137 | 1,274 | 102 | 483 | 4,845 | 98 | 491 | 53 | ||||||||||||||||||||||||||
— | † | — | † | 2 | — | † | — | † | 1 | — | † | — | † | — | † | |||||||||||||||||||
430 | 98 | 1,627 | 70 | 38 | 1,222 | 20 | 497 | 105 | ||||||||||||||||||||||||||
160 | 28 | 650 | 14 | 7 | 510 | 3 | 119 | 27 | ||||||||||||||||||||||||||
110 | 53 | 290 | 31 | 38 | 205 | 15 | 168 | 52 | ||||||||||||||||||||||||||
30 | 7 | 107 | 4 | 2 | 84 | 1 | 33 | 7 | ||||||||||||||||||||||||||
4 | 6 | 28 | 12 | 5 | 17 | 8 | 7 | 4 | ||||||||||||||||||||||||||
127 | 168 | 301 | 167 | 36 | 124 | 27 | 120 | 201 | ||||||||||||||||||||||||||
39 | 19 | 119 | 5 | 5 | 50 | 3 | 53 | 18 | ||||||||||||||||||||||||||
22,503 | 8,134 | 63,671 | 5,060 | 2,983 | 50,650 | 1,804 | 24,481 | 7,365 | ||||||||||||||||||||||||||
— | — | — | — | 24 | — | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | 24 | — | — | — | — | ||||||||||||||||||||||||||
22,503 | 8,134 | 63,671 | 5,060 | 2,959 | 50,650 | 1,804 | 24,481 | 7,365 | ||||||||||||||||||||||||||
95,813 | 24,178 | 295,587 | 26,374 | 13,043 | 273,674 | 4,269 | 141,320 | 28,041 | ||||||||||||||||||||||||||
(863 | ) | 9,494 | 406,368 | (15,330 | ) | (3,801 | ) | 266,091 | 10,945 | 90,872 | (5,179 | ) | ||||||||||||||||||||||
— | — | — | — | — | (446,158 | ) | — | — | — | |||||||||||||||||||||||||
— | — | — | — | (194 | ) | 12,523 | 509 | 31,573 | 12,050 | |||||||||||||||||||||||||
— | 493 | — | 24 | — | — | (206 | ) | (10,249 | ) | 2,707 | ||||||||||||||||||||||||
— | — | — | — | 230 | (12,336 | ) | (20 | ) | (14,548 | ) | (202 | ) | ||||||||||||||||||||||
(13 | ) | (314 | ) | (771 | ) | (1,069 | ) | 70 | (29 | ) | (100 | ) | (434 | ) | (1,163 | ) | ||||||||||||||||||
(876 | ) | 9,673 | 405,597 | (16,375 | ) | (3,695 | ) | (179,909 | ) | 11,128 | 97,214 | 8,213 | ||||||||||||||||||||||
791,331 | 311,348 | 4,014,527 | 184,237 | 60,001 | 2,258,760 | 32,131 | 404,554 | 106,875 | ||||||||||||||||||||||||||
— | — | 73,906 | — | — | 399,074 | — | — | — | ||||||||||||||||||||||||||
— | — | — | — | (495 | ) | 5,251 | (91 | ) | 18,382 | (2,957 | ) | |||||||||||||||||||||||
— | (445 | ) | — | 5 | — | — | (80 | ) | 6,210 | (7,363 | ) | |||||||||||||||||||||||
— | — | — | — | 1,349 | (5,824 | ) | 46 | (12,045 | ) | 1,300 | ||||||||||||||||||||||||
16 | 369 | 201 | (5 | ) | 7 | 110 | 24 | 140 | 58 | |||||||||||||||||||||||||
791,347 | 311,272 | 4,088,634 | 184,237 | 60,862 | 2,657,371 | 32,030 | 417,241 | 97,913 | ||||||||||||||||||||||||||
790,471 | 320,945 | 4,494,231 | 167,862 | 57,167 | 2,477,462 | 43,158 | 514,455 | 106,126 | ||||||||||||||||||||||||||
$ | 886,284 | $ | 345,123 | $ | 4,789,818 | $ | 194,236 | $ | 70,210 | $ | 2,751,136 | $ | 47,427 | $ | 655,775 | $ | 134,167 |
American Funds Insurance Series | 125 |
Statements of operations
for the six months ended June 30, 2019
High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||
Investment income: | ||||||||||||||||||||
Income (net of non-U.S. taxes*): | ||||||||||||||||||||
Dividends | $ | 425 | $ | — | $ | — | $ | — | $ | 1,089 | ||||||||||
Interest | 45,210 | 4,389 | 3,557 | 36,029 | 179 | |||||||||||||||
45,635 | 4,389 | 3,557 | 36,029 | 1,268 | ||||||||||||||||
Fees and expenses*: | ||||||||||||||||||||
Investment advisory services | 3,005 | 614 | 458 | 4,845 | 279 | |||||||||||||||
Distribution services | 932 | 98 | 317 | 1,757 | 461 | |||||||||||||||
Insurance administrative services | 70 | 28 | 24 | 123 | 465 | |||||||||||||||
Transfer agent services | — | † | — | † | — | † | — | † | — | † | ||||||||||
Administrative services | 63 | 15 | 14 | 142 | — | |||||||||||||||
Accounting and administrative services | — | — | — | — | 10 | |||||||||||||||
Reports to shareholders | 14 | 2 | 4 | 32 | �� | 4 | ||||||||||||||
Registration statement and prospectus | 26 | 12 | 7 | 41 | 18 | |||||||||||||||
Trustees’ compensation | 4 | 1 | 1 | 10 | 1 | |||||||||||||||
Auditing and legal | 3 | — | † | — | † | 2 | — | † | ||||||||||||
Custodian | 8 | 10 | — | † | 18 | 6 | ||||||||||||||
Other | 19 | 3 | 2 | 8 | 3 | |||||||||||||||
Total fees and expenses before waivers/reimbursements | 4,144 | 783 | 827 | 6,978 | 1,247 | |||||||||||||||
Less waivers/reimbursements of fees and expenses: | ||||||||||||||||||||
Investment advisory services waivers | — | — | — | — | 93 | |||||||||||||||
Miscellaneous fee reimbursements | — | — | — | — | 13 | |||||||||||||||
Total waivers/reimbursements of fees and expenses | — | — | — | — | 106 | |||||||||||||||
Total fees and expenses after waivers/reimbursements | 4,144 | 783 | 827 | 6,978 | 1,141 | |||||||||||||||
Net investment income (loss) | 41,491 | 3,606 | 2,730 | 29,051 | 127 | |||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation): | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | (1,908 | ) | 1,164 | — | † | 19,133 | — | |||||||||||||
Affiliated issuers* | — | — | — | — | 1,484 | |||||||||||||||
Futures contracts | — | 3,551 | — | 55,917 | (3,203 | ) | ||||||||||||||
Swap contracts | (395 | ) | 1,067 | — | 6,764 | — | ||||||||||||||
Currency transactions | 1 | — | — | — | 21 | |||||||||||||||
Capital gain distributions received from affiliated issuers | — | — | — | — | 32,791 | |||||||||||||||
(2,302 | ) | 5,782 | — | † | 81,814 | 31,093 | ||||||||||||||
Net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments | ||||||||||||||||||||
Unaffiliated issuers | 79,517 | 5,581 | (30 | ) | 66,269 | — | ||||||||||||||
Affiliated issuers | — | — | — | — | 14,234 | |||||||||||||||
Futures contracts | — | 305 | — | (3,315 | ) | (5,720 | ) | |||||||||||||
Swap contracts | (1,604 | ) | (3,465 | ) | — | (45,476 | ) | — | ||||||||||||
77,913 | 2,421 | (30 | ) | 17,478 | 8,514 | |||||||||||||||
Net realized gain (loss) and unrealized appreciation (depreciation) | 75,611 | 8,203 | (30 | ) | 99,292 | 39,607 | ||||||||||||||
Net increase in net assets resulting from operations | $ | 117,102 | $ | 11,809 | $ | 2,700 | $ | 128,343 | $ | 39,734 |
* | Additional information related to non-U.S. taxes, class-specific fees and expenses and affiliated income is included in the notes to financial statements. |
† | Amount less than one thousand. |
See notes to financial statements.
126 | American Funds Insurance Series |
unaudited
(dollars in thousands)
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | |||||||||||
$ | 367 | $ | 1,448 | $ | 7,423 | $ | 11,862 | |||||||
60 | 165 | 1,013 | 1,008 | |||||||||||
427 | 1,613 | 8,436 | 12,870 | |||||||||||
118 | 261 | 1,519 | 1,977 | |||||||||||
196 | 433 | 310 | 3,293 | |||||||||||
197 | 434 | 2,532 | 3,295 | |||||||||||
— | † | — | † | — | † | — | † | |||||||
— | — | — | — | |||||||||||
9 | 10 | 9 | 25 | |||||||||||
2 | 4 | 14 | 27 | |||||||||||
10 | 9 | 213 | 36 | |||||||||||
1 | 1 | 4 | 11 | |||||||||||
— | † | — | † | 1 | 2 | |||||||||
6 | 6 | 6 | 6 | |||||||||||
3 | 2 | 3 | 10 | |||||||||||
542 | 1,160 | 4,611 | 8,682 | |||||||||||
39 | 87 | 506 | 659 | |||||||||||
12 | 13 | — | — | |||||||||||
51 | 100 | 506 | 659 | |||||||||||
491 | 1,060 | 4,105 | 8,023 | |||||||||||
(64 | ) | 553 | 4,331 | 4,847 | ||||||||||
— | — | (7,604 | ) | — | ||||||||||
(275 | ) | 662 | 5,409 | 6,021 | ||||||||||
(1,096 | ) | (3,654 | ) | (14,050 | ) | (14,856 | ) | |||||||
— | — | — | — | |||||||||||
(1 | ) | 20 | 91 | 103 | ||||||||||
3,310 | 22,170 | 167,499 | 131,016 | |||||||||||
1,938 | 19,198 | 151,345 | 122,284 | |||||||||||
— | — | (11,249 | ) | — | ||||||||||
15,958 | 7,793 | 80,268 | 140,238 | |||||||||||
(1,142 | ) | (5,657 | ) | (7,995 | ) | (24,002 | ) | |||||||
— | — | — | — | |||||||||||
14,816 | 2,136 | 61,024 | 116,236 | |||||||||||
16,754 | 21,334 | 212,369 | 238,520 | |||||||||||
$ | 16,690 | $ | 21,887 | $ | 216,700 | $ | 243,367 |
American Funds Insurance Series | 127 |
Statements of changes in net assets
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | ||||||||||||||||||||||
Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 38,829 | $ | 50,276 | $ | 12,965 | $ | 10,787 | $ | 117,844 | $ | 162,005 | ||||||||||||
Net realized gain (loss) | 58,613 | 343,542 | 143,849 | 247,061 | 342,283 | 2,848,894 | ||||||||||||||||||
Net unrealized appreciation (depreciation) | 1,056,143 | (919,676 | ) | 584,518 | (673,158 | ) | 3,428,653 | (2,971,090 | ) | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,153,585 | (525,858 | ) | 741,332 | (415,310 | ) | 3,888,780 | 39,809 | ||||||||||||||||
Distributions paid to shareholders | (352,171 | ) | (474,814 | ) | (276,087 | ) | (196,135 | ) | (2,816,480 | ) | (2,648,515 | ) | ||||||||||||
Net capital share transactions | 20,562 | 267,749 | 313,662 | (49,079 | ) | 1,958,870 | 1,071,109 | |||||||||||||||||
Total increase (decrease) in net assets | 821,976 | (732,923 | ) | 778,907 | (660,524 | ) | 3,031,170 | (1,537,597 | ) | |||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 5,502,153 | 6,235,076 | 3,654,514 | 4,315,038 | 23,447,861 | 24,985,458 | ||||||||||||||||||
End of period | $ | 6,324,129 | $ | 5,502,153 | $ | 4,433,421 | $ | 3,654,514 | $ | 26,479,031 | $ | 23,447,861 | ||||||||||||
International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | ||||||||||||||||||||||
Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 26,374 | $ | 37,077 | $ | 13,043 | $ | 18,120 | $ | 273,674 | $ | 495,623 | ||||||||||||
Net realized gain (loss) | (16,375 | ) | 19,646 | (3,695 | ) | (12,903 | ) | (179,909 | ) | 1,250,899 | ||||||||||||||
Net unrealized appreciation (depreciation) | 184,237 | (222,569 | ) | 60,862 | (53,867 | ) | 2,657,371 | (2,879,563 | ) | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 194,236 | (165,846 | ) | 70,210 | (48,650 | ) | 2,751,136 | (1,133,041 | ) | |||||||||||||||
Distributions paid to shareholders | (21,131 | ) | (35,982 | ) | (11,560 | ) | (20,515 | ) | (1,388,695 | ) | (1,587,775 | ) | ||||||||||||
Net capital share transactions | (75,980 | ) | 77,119 | 105,759 | 149,988 | 1,182,887 | (13,827 | ) | ||||||||||||||||
Total increase (decrease) in net assets | 97,125 | (124,709 | ) | 164,409 | 80,823 | 2,545,328 | (2,734,643 | ) | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 1,337,258 | 1,461,967 | 675,280 | 594,457 | 22,925,451 | 25,660,094 | ||||||||||||||||||
End of period | $ | 1,434,383 | $ | 1,337,258 | $ | 839,689 | $ | 675,280 | $ | 25,470,779 | $ | 22,925,451 |
See end of statements of changes in net assets for footnote.
See notes to financial statements.
128 | American Funds Insurance Series |
(dollars in thousands)
International Fund | New World Fund | Blue Chip Income and Growth Fund | Global Growth and Income Fund | Growth-Income Fund | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | |||||||||||||||||||||||||||||
$ | 95,704 | $ | 147,886 | $ | 23,597 | $ | 32,835 | $ | 95,813 | $ | 183,892 | $ | 24,178 | $ | 35,857 | $ | 295,587 | $ | 479,019 | |||||||||||||||||||
(175,056 | ) | 247,240 | 24,940 | 126,203 | (876 | ) | 687,384 | 9,673 | 99,872 | 405,597 | 3,357,516 | |||||||||||||||||||||||||||
1,399,684 | (1,741,754 | ) | 519,912 | (647,033 | ) | 791,347 | (1,602,222 | ) | 311,272 | (325,530 | ) | 4,088,634 | (4,232,991 | ) | ||||||||||||||||||||||||
1,320,332 | (1,346,628 | ) | 568,449 | (487,995 | ) | 886,284 | (730,946 | ) | 345,123 | (189,801 | ) | 4,789,818 | (396,456 | ) | ||||||||||||||||||||||||
(259,623 | ) | (646,470 | ) | (134,170 | ) | (126,412 | ) | (725,337 | ) | (883,615 | ) | (107,451 | ) | (186,991 | ) | (3,457,660 | ) | (2,606,909 | ) | |||||||||||||||||||
(237,150 | ) | 1,245,386 | 15,494 | 92,573 | 640,962 | 265,984 | (359 | ) | 90,220 | 2,772,999 | 2,175,138 | |||||||||||||||||||||||||||
823,559 | (747,712 | ) | 449,773 | (521,834 | ) | 801,909 | (1,348,577 | ) | 237,313 | (286,572 | ) | 4,105,157 | (828,227 | ) | ||||||||||||||||||||||||
9,010,110 | 9,757,822 | 3,010,879 | 3,532,713 | 8,031,272 | 9,379,849 | 1,815,874 | 2,102,446 | 29,864,135 | 30,692,362 | |||||||||||||||||||||||||||||
$ | 9,833,669 | $ | 9,010,110 | $ | 3,460,652 | $ | 3,010,879 | $ | 8,833,181 | $ | 8,031,272 | $ | 2,053,187 | $ | 1,815,874 | $ | 33,969,292 | $ | 29,864,135 | |||||||||||||||||||
Global Balanced Fund | Bond Fund | Global Bond Fund | High-Income Bond Fund | Mortgage Fund | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | |||||||||||||||||||||||||||||
$ | 4,269 | $ | 6,105 | $ | 141,320 | $ | 269,087 | $ | 28,041 | $ | 55,434 | $ | 41,491 | $ | 84,812 | $ | 3,606 | $ | 6,148 | |||||||||||||||||||
11,128 | 3,576 | 97,214 | (168,412 | ) | 8,213 | (11,729 | ) | (2,302 | ) | (24,544 | ) | 5,782 | (7,618 | ) | ||||||||||||||||||||||||
32,030 | (33,957 | ) | 417,241 | (164,842 | ) | 97,913 | (70,008 | ) | 77,913 | (86,196 | ) | 2,421 | 2,541 | |||||||||||||||||||||||||
47,427 | (24,276 | ) | 655,775 | (64,167 | ) | 134,167 | (26,303 | ) | 117,102 | (25,928 | ) | 11,809 | 1,071 | |||||||||||||||||||||||||
(883 | ) | (9,700 | ) | (57,012 | ) | (267,421 | ) | (15,883 | ) | (56,130 | ) | (15,473 | ) | (79,933 | ) | (1,267 | ) | (6,505 | ) | |||||||||||||||||||
2,835 | 46,266 | (14,203 | ) | (511,419 | ) | (46,920 | ) | (297,128 | ) | (25,236 | ) | (144,120 | ) | (10,756 | ) | (43,561 | ) | |||||||||||||||||||||
49,379 | 12,290 | 584,560 | (843,007 | ) | 71,364 | (379,561 | ) | 76,393 | (249,981 | ) | (214 | ) | (48,995 | ) | ||||||||||||||||||||||||
366,189 | 353,899 | 9,854,687 | 10,697,694 | 2,088,017 | 2,467,578 | 1,203,899 | 1,453,880 | 291,175 | 340,170 | |||||||||||||||||||||||||||||
$ | 415,568 | $ | 366,189 | $ | 10,439,247 | $ | 9,854,687 | $ | 2,159,381 | $ | 2,088,017 | $ | 1,280,292 | $ | 1,203,899 | $ | 290,961 | $ | 291,175 |
American Funds Insurance Series | 129 |
Statements of changes in net assets
Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | Managed Risk Growth Fund | ||||||||||||||||||||||
Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | |||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 2,730 | $ | 4,036 | $ | 29,051 | $ | 56,785 | $ | 127 | $ | 1,509 | ||||||||||||
Net realized gain (loss) | — | — | 81,814 | (86,715 | ) | 31,093 | 21,463 | |||||||||||||||||
Net unrealized appreciation (depreciation) | (30 | ) | 33 | 17,478 | 49,517 | 8,514 | (26,917 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 2,700 | 4,069 | 128,343 | 19,587 | 39,734 | (3,945 | ) | |||||||||||||||||
Distributions paid to shareholders | (1,000 | ) | (3,517 | ) | (11,348 | ) | (55,819 | ) | (29,127 | ) | (21,941 | ) | ||||||||||||
Net capital share transactions | (22,622 | ) | 1,047 | (71,510 | ) | (197,780 | ) | 43,405 | 81,200 | |||||||||||||||
Total increase (decrease) in net assets | (20,922 | ) | 1,599 | 45,485 | (234,012 | ) | 54,012 | 55,314 | ||||||||||||||||
Net assets: | ||||||||||||||||||||||||
Beginning of period | 306,404 | 304,805 | 2,869,303 | 3,103,315 | 343,273 | 287,959 | ||||||||||||||||||
End of period | $ | 285,482 | $ | 306,404 | $ | 2,914,788 | $ | 2,869,303 | $ | 397,285 | $ | 343,273 |
* | Unaudited. |
See notes to financial statements.
130 | American Funds Insurance Series |
(dollars in thousands)
Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth-Income Fund | Managed Risk Asset Allocation Fund | |||||||||||||||||||||||||||
Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | Six months ended June 30, 2019* | Year ended December 31, 2018 | |||||||||||||||||||||||
$ | (64 | ) | $ | 2,317 | $ | 553 | $ | 5,276 | $ | 4,331 | $ | 2,685 | $ | 4,847 | $ | 62,566 | ||||||||||||||
1,938 | 5,722 | 19,198 | 18,018 | 151,345 | 6,953 | 122,284 | 97,415 | |||||||||||||||||||||||
14,816 | (25,332 | ) | 2,136 | (49,299 | ) | 61,024 | (21,166 | ) | 116,236 | (366,555 | ) | |||||||||||||||||||
16,690 | (17,293 | ) | 21,887 | (26,005 | ) | 216,700 | (11,528 | ) | 243,367 | (206,574 | ) | |||||||||||||||||||
(7,796 | ) | (3,428 | ) | (23,415 | ) | (23,525 | ) | (22,902 | ) | (12,352 | ) | (177,744 | ) | (242,968 | ) | |||||||||||||||
3,636 | 23,257 | 18,544 | 19,295 | 57,148 | 1,707,014 | 99,215 | (1,462,371 | ) | ||||||||||||||||||||||
12,530 | 2,536 | 17,016 | (30,235 | ) | 250,946 | 1,683,134 | 164,838 | (1,911,913 | ) | |||||||||||||||||||||
150,959 | 148,423 | 336,669 | 366,904 | 1,892,102 | 208,968 | 2,542,497 | 4,454,410 | |||||||||||||||||||||||
$ | 163,489 | $ | 150,959 | $ | 353,685 | $ | 336,669 | $ | 2,143,048 | $ | 1,892,102 | $ | 2,707,335 | $ | 2,542,497 |
American Funds Insurance Series | 131 |
Notes to financial statements | unaudited |
1. Organization
American Funds Insurance Series (the “series��) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company with 28 different funds (the “funds”). Twenty-three funds in the series are covered in this report. The other five funds in the series, American Funds Insurance Series - Portfolio Series, are covered in a separate report. The assets of each fund are segregated, with each fund accounted for separately. Capital Research and Management Company (“CRMC”) is the series’ investment adviser. Milliman Financial Risk Management LLC (“Milliman FRM”) is the subadviser for the risk management strategy for eight of the funds (the “managed risk funds”), five of which are covered in this report.
The managed risk funds covered in this report are Managed Risk Growth Fund, Managed Risk International Fund, Managed Risk Blue Chip Income and Growth Fund, Managed Risk Growth-Income Fund and Managed Risk Asset Allocation Fund. The managed risk funds invest in other funds within the series (the “underlying funds”) and employ Milliman FRM to implement the risk management strategy, which consists of using hedging instruments — primarily short positions on exchange-traded futures contracts — to attempt to stabilize the volatility of the funds around target volatility levels and reduce the downside exposure of the funds during periods of significant market declines.
In 2009, shareholders approved the reorganization of the series from a Massachusetts business trust to a Delaware statutory trust. The series reserved the right to delay implementing the reorganization and has elected to do so.
The investment objectives for each fund covered in this report are as follows:
Global Growth Fund— To provide long-term growth of capital.
Global Small Capitalization Fund— To provide long-term growth of capital.
Growth Fund— To provide growth of capital.
International Fund— To provide long-term growth of capital.
New World Fund— To provide long-term capital appreciation.
Blue Chip Income and Growth Fund— To produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing.
Global Growth and Income Fund— To provide long-term growth of capital while providing current income.
Growth-Income Fund— To achieve long-term growth of capital and income.
International Growth and Income Fund— To provide long-term growth of capital while providing current income.
Capital Income Builder— The two primary objectives are (1) to provide a level of current income that exceeds the average yield on U.S. stocks generally and (2) to provide a growing stream of income over the years. The secondary objective is to provide growth of capital.
Asset Allocation Fund— To provide high total return (including income and capital gains) consistent with preservation of capital over the long term.
Global Balanced Fund— Seeks the balanced accomplishment of three objectives: long-term growth of capital, conservation of principal and current income.
Bond Fund— To provide as high a level of current income as is consistent with the preservation of capital.
Global Bond Fund— To provide, over the long term, a high level of total return consistent with prudent investment management.
High-Income Bond Fund— The primary objective is to provide a high level of current income. The secondary objective is capital appreciation.
132 | American Funds Insurance Series |
Mortgage Fund— To provide current income and preservation of capital.
Ultra-Short Bond Fund— To provide current income, consistent with the maturity and quality standards applicable to the fund, and preservation of capital and liquidity.
U.S. Government/AAA-Rated Securities Fund— To provide a high level of current income consistent with preservation of capital.
Managed Risk Growth Fund— To provide growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk International Fund— To provide long-term growth of capital while seeking to manage volatility and provide downside protection.
Managed Risk Blue Chip Income and Growth Fund— To produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing, in each case while seeking to manage volatility and provide downside protection.
Managed Risk Growth-Income Fund— To achieve long-term growth of capital and income while seeking to manage volatility and provide downside protection.
Managed Risk Asset Allocation Fund— To provide high total return (including income and capital gains) consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection.
Each fund in the series, except the managed risk funds, offers either four or five share classes (Classes 1, 1A, 2, 3 or 4); the managed risk funds offer two share classes (Classes P1 and P2). Holders of all share classes of each fund have equal pro rata rights to assets, dividends and liquidation proceeds of each fund held. Each share class of each fund has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for certain distribution expenses. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class of each fund.
2. Significant accounting policies
Each fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. Each fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the series’ investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The funds follow the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income— Security transactions are recorded by the funds as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the funds will segregate liquid assets sufficient to meet their payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Fees and expenses— The fees and expenses of the underlying funds held by the managed risk funds are not included in the fees and expenses reported for each of the managed risk funds; however, they are indirectly reflected in the valuation of each of the underlying funds. These fees are included in the net effective expense ratios that are provided as supplementary information in the financial highlights tables.
Class allocations— Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes of each fund based on their relative net assets. Class-specific fees and expenses, such as distribution expenses, are accrued daily and charged directly to the respective share class of each fund.
Distributions paid to shareholders— Income dividends and capital gain distributions are recorded on each fund’s ex-dividend date.
American Funds Insurance Series | 133 |
Currency translation— Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. The effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments in the funds’ statements of operations. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
3. Valuation
CRMC, the series’ investment adviser, values the funds’ investments at fair value as defined by U.S. GAAP. The net asset value of each share class of each fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Methods and inputs— The series’ investment adviser uses the following methods and inputs to establish the fair value of each fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades. The value of an underlying fund is based on its reported net asset value.
Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the funds are authorized to invest. However, these classifications are not exclusive and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs | |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) | |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer | |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities | |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information | |
Municipal securities | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
When the series’ investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
134 | American Funds Insurance Series |
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the series’ investment adviser. The Government Cash Management Fund held by the managed risk funds is managed to maintain a $1.00 net asset value per share. The Capital Group Central Cash Fund (“CCF”) is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information. The net asset value of each share class of each managed risk fund is calculated based on the reported net asset values of the underlying funds in which each fund invests.
Exchange-traded options and futures are generally valued at the official closing price for options and official settlement price for futures of the exchange or market on which such instruments are traded, as of the close of business on the day such instruments are being valued. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors. Interest rate swaps and credit default swaps are generally valued by pricing vendors based on market inputs that include the index and term of index, reset frequency, payer/receiver, currency and pay frequency.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the series’ investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the series’ board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities and futures that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of each fund is determined. Fair valuations and valuations of investments and futures that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure— The series’ board of trustees has delegated authority to the series’ investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The series’ board and audit committee also regularly review reports that describe fair value determinations and methods.
The series’ investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications— The series’ investment adviser classifies the funds’ assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities.
American Funds Insurance Series | 135 |
The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the funds’ valuation levels as of June 30, 2019 (dollars in thousands):
Global Growth Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 1,648,947 | $ | — | $ | — | $ | 1,648,947 | ||||||||
Consumer discretionary | 1,267,013 | — | — | 1,267,013 | ||||||||||||
Financials | 679,509 | — | — | 679,509 | ||||||||||||
Health care | 633,968 | — | — | 633,968 | ||||||||||||
Communication services | 508,193 | — | — | 508,193 | ||||||||||||
Consumer staples | 490,190 | — | — | 490,190 | ||||||||||||
Industrials | 464,248 | — | — | 464,248 | ||||||||||||
Materials | 170,817 | 11,082 | — | 181,899 | ||||||||||||
Energy | 135,909 | — | — | 135,909 | ||||||||||||
Preferred securities | 104,460 | — | — | 104,460 | ||||||||||||
Short-term securities | 177,735 | — | — | 177,735 | ||||||||||||
Total | $ | 6,280,989 | $ | 11,082 | $ | — | $ | 6,292,071 | ||||||||
Global Small Capitalization Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 1,011,323 | $ | — | $ | — | $ | 1,011,323 | ||||||||
Information technology | 783,557 | — | — | 783,557 | ||||||||||||
Industrials | 679,267 | — | — | 679,267 | ||||||||||||
Consumer discretionary | 548,212 | 681 | — | 548,893 | ||||||||||||
Financials | 372,313 | — | 514 | 372,827 | ||||||||||||
Materials | 190,108 | — | — | 190,108 | ||||||||||||
Consumer staples | 130,390 | — | — | 130,390 | ||||||||||||
Communication services | 130,259 | — | — | 130,259 | ||||||||||||
Real estate | 117,638 | 5,108 | — | 122,746 | ||||||||||||
Energy | 54,307 | — | 14,352 | 68,659 | ||||||||||||
Utilities | 49,580 | — | — | 49,580 | ||||||||||||
Preferred securities | 18,309 | — | — | 18,309 | ||||||||||||
Short-term securities | 382,979 | — | — | 382,979 | ||||||||||||
Total | $ | 4,468,242 | $ | 5,789 | $ | 14,866 | $ | 4,488,897 | ||||||||
Growth Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 6,402,204 | $ | — | $ | — | $ | 6,402,204 | ||||||||
Communication services | 4,737,928 | — | — | 4,737,928 | ||||||||||||
Health care | 4,072,084 | — | 37,000 | 4,109,084 | ||||||||||||
Consumer discretionary | 3,109,058 | — | — | 3,109,058 | ||||||||||||
Financials | 2,277,395 | — | — | 2,277,395 | ||||||||||||
Industrials | 1,765,089 | 11,838 | — | 1,776,927 | ||||||||||||
Energy | 858,522 | — | — | 858,522 | ||||||||||||
Consumer staples | 806,113 | — | — | 806,113 | ||||||||||||
Materials | 707,180 | — | — | 707,180 | ||||||||||||
Real estate | 487,175 | — | — | 487,175 | ||||||||||||
Utilities | 81,738 | — | — | 81,738 | ||||||||||||
Short-term securities | 1,050,782 | — | — | 1,050,782 | ||||||||||||
Total | $ | 26,355,268 | $ | 11,838 | $ | 37,000 | $ | 26,404,106 |
136 | American Funds Insurance Series |
International Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 1,607,025 | $ | 61,763 | $ | — | $ | 1,668,788 | ||||||||
Industrials | 1,576,060 | — | — | 1,576,060 | ||||||||||||
Health care | 1,094,499 | — | — | 1,094,499 | ||||||||||||
Consumer discretionary | 1,090,624 | — | — | 1,090,624 | ||||||||||||
Materials | 657,245 | — | — | 657,245 | ||||||||||||
Information technology | 649,673 | — | — | 649,673 | ||||||||||||
Consumer staples | 587,939 | — | — | 587,939 | ||||||||||||
Energy | 453,422 | — | — | 453,422 | ||||||||||||
Communication services | 433,758 | — | — | 433,758 | ||||||||||||
Utilities | 414,648 | 9,895 | — | 424,543 | ||||||||||||
Real estate | 231,726 | — | — | 231,726 | ||||||||||||
Preferred securities | 87,415 | — | — | 87,415 | ||||||||||||
Rights & warrants | — | 14,218 | — | 14,218 | ||||||||||||
Bonds, notes & other debt instruments | — | 65,239 | — | 65,239 | ||||||||||||
Short-term securities | 813,905 | — | — | 813,905 | ||||||||||||
Total | $ | 9,697,939 | $ | 151,115 | $ | — | $ | 9,849,054 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 124 | $ | — | $ | 124 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (340 | ) | — | (340 | ) | ||||||||||
Total | $ | — | $ | (216 | ) | $ | — | $ | (216 | ) |
* | Forward currency contracts are not included in the investment portfolio. |
New World Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 798,798 | $ | — | $ | — | $ | 798,798 | ||||||||
Financials | 462,086 | 2,195 | — | 464,281 | ||||||||||||
Energy | 349,805 | — | — | 349,805 | ||||||||||||
Consumer discretionary | 325,213 | — | — | 325,213 | ||||||||||||
Health care | 284,801 | — | — | 284,801 | ||||||||||||
Materials | 282,415 | — | — | 282,415 | ||||||||||||
Communication services | 178,354 | — | — | 178,354 | ||||||||||||
Consumer staples | 173,282 | — | — | 173,282 | ||||||||||||
Industrials | 166,888 | — | — | 166,888 | ||||||||||||
Real estate | 29,356 | 3,700 | 26 | 33,082 | ||||||||||||
Utilities | 22,895 | — | — | 22,895 | ||||||||||||
Preferred securities | 82,131 | — | — | 82,131 | ||||||||||||
Rights & warrants | — | 18,404 | — | 18,404 | ||||||||||||
Bonds, notes & other debt instruments | — | 95,649 | — | 95,649 | ||||||||||||
Short-term securities | 150,800 | 22,827 | — | 173,627 | ||||||||||||
Total | $ | 3,306,824 | $ | 142,775 | $ | 26 | $ | 3,449,625 |
Blue Chip Income and Growth Fund
At June 30, 2019, all of the fund’s investment securities were classified as Level 1.
American Funds Insurance Series | 137 |
Global Growth and Income Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 300,949 | $ | — | $ | — | $ | 300,949 | ||||||||
Financials | 263,873 | — | — | 263,873 | ||||||||||||
Industrials | 255,304 | — | — | 255,304 | ||||||||||||
Consumer discretionary | 189,012 | — | — | 189,012 | ||||||||||||
Communication services | 172,302 | — | — | 172,302 | ||||||||||||
Health care | 169,333 | — | — | 169,333 | ||||||||||||
Materials | 157,542 | — | — | 157,542 | ||||||||||||
Energy | 133,001 | — | — | 133,001 | ||||||||||||
Real estate | 90,794 | — | — | 90,794 | ||||||||||||
Consumer staples | 89,440 | — | — | 89,440 | ||||||||||||
Utilities | 80,897 | — | — | 80,897 | ||||||||||||
Preferred securities | 8,125 | — | — | 8,125 | ||||||||||||
Bonds, notes & other debt instruments | — | 35,145 | — | 35,145 | ||||||||||||
Short-term securities | 88,640 | — | — | 88,640 | ||||||||||||
Total | $ | 1,999,212 | $ | 35,145 | $ | — | $ | 2,034,357 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | $ | — | $ | (94 | ) | $ | — | $ | (94 | ) |
* | Forward currency contracts are not included in the investment portfolio. |
Growth-Income Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 5,165,778 | $ | — | $ | — | $ | 5,165,778 | ||||||||
Health care | 5,141,550 | — | — | 5,141,550 | ||||||||||||
Financials | 3,794,583 | — | — | 3,794,583 | ||||||||||||
Industrials | 3,754,219 | — | — | 3,754,219 | ||||||||||||
Communication services | 3,726,932 | — | — | 3,726,932 | ||||||||||||
Consumer staples | 2,686,282 | — | — | 2,686,282 | ||||||||||||
Energy | 2,395,661 | — | — | 2,395,661 | ||||||||||||
Consumer discretionary | 1,920,427 | — | — | 1,920,427 | ||||||||||||
Materials | 1,619,589 | — | — | 1,619,589 | ||||||||||||
Utilities | 687,090 | — | — | 687,090 | ||||||||||||
Real estate | 645,871 | — | — | 645,871 | ||||||||||||
Mutual funds | 54,750 | — | — | 54,750 | ||||||||||||
Convertible stocks | 99,581 | — | — | 99,581 | ||||||||||||
Convertible bonds | — | 7,112 | — | 7,112 | ||||||||||||
Short-term securities | 2,127,848 | — | — | 2,127,848 | ||||||||||||
Total | $ | 33,820,161 | $ | 7,112 | $ | — | $ | 33,827,273 |
138 | American Funds Insurance Series |
International Growth and Income Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 261,857 | $ | — | $ | — | $ | 261,857 | ||||||||
Health care | 183,056 | — | — | 183,056 | ||||||||||||
Industrials | 166,805 | — | — | 166,805 | ||||||||||||
Energy | 123,411 | — | — | 123,411 | ||||||||||||
Real estate | 109,943 | — | — | 109,943 | ||||||||||||
Consumer discretionary | 100,102 | — | — | 100,102 | ||||||||||||
Materials | 98,006 | — | — | 98,006 | ||||||||||||
Utilities | 84,829 | — | — | 84,829 | ||||||||||||
Consumer staples | 81,953 | — | — | 81,953 | ||||||||||||
Information technology | 62,060 | — | — | 62,060 | ||||||||||||
Communication services | 54,189 | — | — | 54,189 | ||||||||||||
Preferred securities | 17,882 | — | — | 17,882 | ||||||||||||
Bonds, notes & other debt instruments | — | 16,561 | — | 16,561 | ||||||||||||
Short-term securities | 64,951 | 5,254 | — | 70,205 | ||||||||||||
Total | $ | 1,409,044 | $ | 21,815 | $ | — | $ | 1,430,859 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 5 | $ | — | $ | 5 |
* | Forward currency contracts are not included in the investment portfolio. |
Capital Income Builder | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 80,425 | $ | — | $ | — | $ | 80,425 | ||||||||
Consumer staples | 76,231 | — | — | 76,231 | ||||||||||||
Financials | 72,505 | — | — | 72,505 | ||||||||||||
Real estate | 68,981 | — | — | 68,981 | ||||||||||||
Energy | 62,860 | — | — | 62,860 | ||||||||||||
Communication services | 42,892 | — | — | 42,892 | ||||||||||||
Health care | 41,406 | — | — | 41,406 | ||||||||||||
Utilities | 35,775 | — | — | 35,775 | ||||||||||||
Consumer discretionary | 35,366 | — | — | 35,366 | ||||||||||||
Industrials | 32,313 | — | — | 32,313 | ||||||||||||
Materials | 17,288 | — | — | 17,288 | ||||||||||||
Convertible stocks | 9,327 | — | — | 9,327 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 110,248 | — | 110,248 | ||||||||||||
Mortgage-backed obligations | — | 44,289 | — | 44,289 | ||||||||||||
Corporate bonds & notes | — | 26,961 | — | 26,961 | ||||||||||||
Asset-backed obligations | — | 8,357 | — | 8,357 | ||||||||||||
Municipals | — | 412 | — | 412 | ||||||||||||
Short-term securities | 68,566 | — | — | 68,566 | ||||||||||||
Total | $ | 643,935 | $ | 190,267 | $ | — | $ | 834,202 |
American Funds Insurance Series | 139 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 1,059 | $ | — | $ | — | $ | 1,059 | ||||||||
Unrealized appreciation on interest rate swaps | — | 1,793 | — | 1,793 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (1,125 | ) | — | — | (1,125 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (444 | ) | — | (444 | ) | ||||||||||
Total | $ | (66 | ) | $ | 1,349 | $ | — | $ | 1,283 |
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Asset Allocation Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 3,765,115 | $ | — | $ | 20 | $ | 3,765,135 | ||||||||
Financials | 2,551,268 | — | — | 2,551,268 | ||||||||||||
Health care | 2,528,372 | — | 1,105 | 2,529,477 | ||||||||||||
Industrials | 1,470,379 | — | — | 1,470,379 | ||||||||||||
Consumer discretionary | 1,255,604 | — | — | 1,255,604 | ||||||||||||
Energy | 995,399 | 2,432 | — | 997,831 | ||||||||||||
Consumer staples | 979,664 | — | — | 979,664 | ||||||||||||
Communication services | 944,595 | — | — | 944,595 | ||||||||||||
Materials | 681,444 | — | — | 681,444 | ||||||||||||
Real estate | 220,771 | — | — | 220,771 | ||||||||||||
Utilities | 161,208 | — | — | 161,208 | ||||||||||||
Rights & warrants | — | — | 101 | 101 | ||||||||||||
Convertible stocks | 62,944 | — | 4,983 | 67,927 | ||||||||||||
Convertible bonds | — | 1,286 | — | 1,286 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | — | 3,238,261 | — | 3,238,261 | ||||||||||||
Corporate bonds & notes | — | 2,735,565 | 11,362 | 2,746,927 | ||||||||||||
Mortgage-backed obligations | — | 1,543,099 | — | 1,543,099 | ||||||||||||
Federal agency bonds & notes | — | 12,852 | — | 12,852 | ||||||||||||
Other | — | 210,817 | — | 210,817 | ||||||||||||
Short-term securities | 2,629,116 | — | — | 2,629,116 | ||||||||||||
Total | $ | 18,245,879 | $ | 7,744,312 | $ | 17,571 | $ | 26,007,762 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 18,387 | $ | — | $ | — | $ | 18,387 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (7,975 | ) | — | — | (7,975 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (9,381 | ) | — | (9,381 | ) | ||||||||||
Total | $ | 10,412 | $ | (9,381 | ) | $ | — | $ | 1,031 |
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
140 | American Funds Insurance Series |
Global Balanced Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 47,450 | $ | — | $ | — | $ | 47,450 | ||||||||
Health care | 42,399 | — | — | 42,399 | ||||||||||||
Financials | 35,425 | — | — | 35,425 | ||||||||||||
Consumer staples | 31,760 | — | — | 31,760 | ||||||||||||
Industrials | 27,404 | — | — | 27,404 | ||||||||||||
Consumer discretionary | 17,892 | — | — | 17,892 | ||||||||||||
Materials | 11,753 | — | — | 11,753 | ||||||||||||
Energy | 10,162 | — | — | 10,162 | ||||||||||||
Communication services | 9,215 | — | — | 9,215 | ||||||||||||
Real estate | 7,342 | — | — | 7,342 | ||||||||||||
Utilities | 5,050 | — | — | 5,050 | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 61,571 | — | 61,571 | ||||||||||||
U.S. Treasury bonds & notes | — | 53,633 | — | 53,633 | ||||||||||||
Corporate bonds & notes | — | 21,393 | — | 21,393 | ||||||||||||
Mortgage-backed obligations | — | 10,274 | — | 10,274 | ||||||||||||
Short-term securities | 21,438 | 896 | — | 22,334 | ||||||||||||
Total | $ | 267,290 | $ | 147,767 | $ | — | $ | 415,057 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 89 | $ | — | $ | — | $ | 89 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 102 | — | 102 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 51 | — | 51 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (100 | ) | — | (100 | ) | ||||||||||
Total | $ | 89 | $ | 53 | $ | — | $ | 142 |
* | Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio. |
Bond Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Corporate bonds & notes | $ | — | $ | 3,484,974 | $ | — | $ | 3,484,974 | ||||||||
U.S. Treasury bonds & notes | — | 3,003,625 | — | 3,003,625 | ||||||||||||
Mortgage-backed obligations | — | 2,729,802 | — | 2,729,802 | ||||||||||||
Bonds & notes of governments & government agencies outside the U.S. | — | 581,913 | — | 581,913 | ||||||||||||
Municipals | — | 204,458 | — | 204,458 | ||||||||||||
Asset-backed obligations | — | 198,442 | — | 198,442 | ||||||||||||
Federal agency bonds & notes | — | 12,020 | — | 12,020 | ||||||||||||
Common stocks | — | 218 | 10 | 228 | ||||||||||||
Rights & warrants | — | — | 31 | 31 | ||||||||||||
Short-term securities | 1,034,921 | 52,775 | — | 1,087,696 | ||||||||||||
Total | $ | 1,034,921 | $ | 10,268,227 | $ | 41 | $ | 11,303,189 |
American Funds Insurance Series | 141 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 50,129 | $ | — | $ | — | $ | 50,129 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 4,506 | — | 4,506 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 1,366 | — | 1,366 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (12,139 | ) | — | — | (12,139 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (7,567 | ) | — | (7,567 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (13,184 | ) | — | (13,184 | ) | ||||||||||
Total | $ | 37,990 | $ | (14,879 | ) | $ | — | $ | 23,111 |
* | Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio. |
Global Bond Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Euros | $ | — | $ | 341,361 | $ | — | $ | 341,361 | ||||||||
Japanese yen | — | 276,684 | — | 276,684 | ||||||||||||
Chinese yuan renminbi | — | 67,355 | — | 67,355 | ||||||||||||
Mexican pesos | — | 67,026 | — | 67,026 | ||||||||||||
Danish kroner | — | 45,786 | — | 45,786 | ||||||||||||
Indian rupees | — | 39,690 | — | 39,690 | ||||||||||||
Norwegian kroner | — | 35,364 | — | 35,364 | ||||||||||||
British pounds | — | 27,643 | — | 27,643 | ||||||||||||
South African rand | — | 27,252 | — | 27,252 | ||||||||||||
Thai baht | — | 22,820 | — | 22,820 | ||||||||||||
Indonesian rupiah | — | 21,296 | — | 21,296 | ||||||||||||
Israeli shekels | — | 20,628 | — | 20,628 | ||||||||||||
Polish zloty | — | 20,594 | — | 20,594 | ||||||||||||
Colombian pesos | — | 11,464 | — | 11,464 | ||||||||||||
U.S. dollars | — | 886,429 | 450 | 886,879 | ||||||||||||
Other | — | 78,758 | — | 78,758 | ||||||||||||
Convertible bonds | — | 102 | — | 102 | ||||||||||||
Convertible stocks | — | — | 847 | 847 | ||||||||||||
Common stocks | 251 | 417 | 3 | 671 | ||||||||||||
Rights & warrants | — | — | 17 | 17 | ||||||||||||
Short-term securities | 94 | 153,323 | — | 153,417 | ||||||||||||
Total | $ | 345 | $ | 2,143,992 | $ | 1,317 | $ | 2,145,654 |
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 2,738 | $ | — | $ | — | $ | 2,738 | ||||||||
Unrealized appreciation on open forward currency contracts | — | 2,437 | — | 2,437 | ||||||||||||
Unrealized appreciation on interest rate swaps | — | 1,351 | — | 1,351 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (1,424 | ) | — | — | (1,424 | ) | ||||||||||
Unrealized depreciation on open forward currency contracts | — | (2,882 | ) | — | (2,882 | ) | ||||||||||
Total | $ | 1,314 | $ | 906 | $ | — | $ | 2,220 |
* | Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio. |
142 | American Funds Insurance Series |
High-Income Bond Fund | ||||||||||||||||
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Corporate bonds & notes | $ | — | $ | 1,178,025 | $ | 9,653 | $ | 1,187,678 | ||||||||
Municipals | — | 94 | — | 94 | ||||||||||||
Convertible bonds | — | 7,108 | — | 7,108 | ||||||||||||
Convertible stocks | 890 | — | 4,834 | 5,724 | ||||||||||||
Preferred securities | — | 2,292 | — | 2,292 | ||||||||||||
Common stocks | 3,421 | 2,642 | 2,624 | 8,687 | ||||||||||||
Rights & warrants | — | 3 | 109 | 112 | ||||||||||||
Short-term securities | 69,689 | — | — | 69,689 | ||||||||||||
Total | $ | 74,000 | $ | 1,190,164 | $ | 17,220 | $ | 1,281,384 |
Other investments1 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on credit default swaps | $ | — | $ | (284 | ) | $ | — | $ | (284 | ) |
1 | Credit default swaps are not included in the investment portfolio. |
The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions for the six months ended June 30, 2019 (dollars in thousands):
Beginning value at 1/1/2019 | Transfers into Level 32 | Purchases | Sales | Net realized gain3 | Unrealized depreciation3 | Transfers out of Level 32 | Ending value at 6/30/2019 | |||||||||||||||||||||||||
Investment securities | $ | 17,537 | $ | — | $ | 491 | $ | (331 | ) | $ | 16 | $ | (473 | ) | $ | (20 | ) | $ | 17,220 | |||||||||||||
Net unrealized depreciation during the period on Level 3 investment securities held at June 30, 2019 | $ | (474 | ) |
2 | Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred. |
3 | Net realized gain and unrealized depreciation are included in the related amounts on investments in the statement of operations. |
American Funds Insurance Series | 143 |
Unobservable inputs— Valuation of the fund’s Level 3 securities is based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The following table provides additional information used by the fund’s investment adviser to fair value the fund’s Level 3 securities (dollars in thousands):
Value at 6/30/2019 | Valuation techniques | Unobservable inputs | Range | Weighted average | Impact to valuation from an increase in input* | ||||||||
Bonds, notes & other debt instruments | $ | 9,653 | Yield analysis | Yield to maturity risk premium | 0-400 bps | 313 bps | Decrease | ||||||
Convertible stocks | 4,834 | Multiple of revenue | Revenue multiple | 0.87x | 0.87x | Increase | |||||||
Common stocks | Inputs to market comparables and transaction price | Weight ascribed to market comparables | 50% | N/A | N/A | ||||||||
Weight ascribed to transaction price | 50% | N/A | N/A | ||||||||||
2,624 | Market comparable companies | EBITDA multiple | 4.7x | 4.7x | Increase | ||||||||
Discount for lack of marketability | 27% | 27% | Decrease | ||||||||||
Multiple of revenue | Revenue multiple | 1.3x | 1.3x | Increase | |||||||||
Expected proceeds | Discount to reflect timing of receipt and amount of proceeds | 50% | 50% | Decrease | |||||||||
Rights & warrants | 109 | Black-Scholes | Implied volatility | 30% | 30% | Increase | |||||||
$ | 17,220 |
* | This column represents the directional change in fair value of the Level 3 securities that would result in an increase from the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. |
Key to abbreviation
EBITDA = Earnings before income taxes, depreciation and amortization
Mortgage Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Mortgage-backed obligations | $ | — | $ | 216,347 | $ | — | $ | 216,347 | ||||||||
U.S. Treasury bonds & notes | — | 28,491 | — | 28,491 | ||||||||||||
Federal agency bonds & notes | — | 18,848 | — | 18,848 | ||||||||||||
Asset-backed obligations | — | 10,075 | — | 10,075 | ||||||||||||
Corporate bonds & notes | — | — | 27 | 27 | ||||||||||||
Short-term securities | — | 20,740 | — | 20,740 | ||||||||||||
Total | $ | — | $ | 294,501 | $ | 27 | $ | 294,528 | ||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 2,209 | $ | — | $ | — | $ | 2,209 | ||||||||
Unrealized appreciation on interest rate swaps | — | 2,613 | — | 2,613 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (5 | ) | — | — | (5 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (4,884 | ) | — | (4,884 | ) | ||||||||||
Total | $ | 2,204 | $ | (2,271 | ) | $ | — | $ | (67 | ) |
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Ultra-Short Bond Fund
At June 30, 2019, all of the fund’s investment securities were classified as Level 2.
144 | American Funds Insurance Series |
U.S. Government/AAA-Rated Securities Fund
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
U.S. Treasury bonds & notes | $ | — | $ | 1,379,808 | $ | — | $ | 1,379,808 | ||||||||
Mortgage-backed obligations | — | 782,101 | — | 782,101 | ||||||||||||
Federal agency bonds & notes | — | 598,890 | — | 598,890 | ||||||||||||
Short-term securities | — | 210,821 | — | 210,821 | ||||||||||||
Total | $ | — | $ | 2,971,620 | $ | — | $ | 2,971,620 | ||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on futures contracts | $ | 25,747 | $ | — | $ | — | $ | 25,747 | ||||||||
Unrealized appreciation on interest rate swaps | — | 36,665 | — | 36,665 | ||||||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on futures contracts | (1,612 | ) | — | — | (1,612 | ) | ||||||||||
Unrealized depreciation on interest rate swaps | — | (62,787 | ) | — | (62,787 | ) | ||||||||||
Total | $ | 24,135 | $ | (26,122 | ) | $ | — | $ | (1,987 | ) |
* | Futures contracts and interest rate swaps are not included in the investment portfolio. |
Managed Risk Growth Fund
At June 30, 2019, all of the fund’s investments were classified as Level 1.
Managed Risk International Fund
At June 30, 2019, all of the fund’s investments were classified as Level 1.
Managed Risk Blue Chip Income and Growth Fund
At June 30, 2019, all of the fund’s investments were classified as Level 1.
Managed Risk Growth-Income Fund
At June 30, 2019, all of the fund’s investments were classified as Level 1.
Managed Risk Asset Allocation Fund
At June 30, 2019, all of the fund’s investments were classified as Level 1.
4. Risk factors
Investing in the funds may involve certain risks including, but not limited to, those described below.
Market conditions— The prices of, and the income generated by, the common stocks, bonds and other securities held by a fund may decline — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.
Issuer risks— The prices of, and the income generated by, securities held by a fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation against the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.
Investing in growth-oriented stocks— Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.
American Funds Insurance Series | 145 |
Investing in income-oriented stocks— The value of a fund’s securities and income provided by a fund may be reduced by changes in the dividend policies of, and the capital resources available for dividend payments at, the companies in which the fund invests.
Investing in small companies— Investing in smaller companies may pose additional risks. For example, it is often more difficult to value or dispose of small company stocks and more difficult to obtain information about smaller companies than about larger companies. Furthermore, smaller companies often have limited product lines, operating histories, markets and/or financial resources, may be dependent on one or a few key persons for management, and can be more susceptible to losses. Moreover, the prices of their stocks may be more volatile than stocks of larger, more established companies, particularly during times of market turmoil.
Investing outside the U.S.— Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
Investing in developing countries— Investing in countries with developing economies and/or markets may involve risks in addition to and greater than those generally associated with investing in developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.
Investing in emerging markets— Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating a fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.
Investing in debt instruments— The prices of, and the income generated by, bonds and other debt securities held by a fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.
Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from a fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in a fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.
146 | American Funds Insurance Series |
Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of a fund’s securities could cause the value of a fund’s shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which a fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The funds’ investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks.
Investing in lower rated debt instruments— Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.
Investing in derivatives— The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose a fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for a fund to buy or sell at an opportune time or price and difficult to terminate or otherwise offset. A fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce a fund’s returns and increase a fund’s price volatility. A fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction.
Currency— The prices of, and the income generated by, most debt securities held by a fund may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of a fund’s securities denominated in such currencies would generally fall and vice versa. U.S. dollar-denominated securities of foreign issuers may also be affected by changes in relative currency values.
Investing in mortgage-related and other asset-backed securities— Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from or more acute than the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and a fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in a fund having to reinvest the proceeds in lower yielding securities, effectively reducing a fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing a fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.
Investing in future delivery contracts— A fund may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve a fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase a fund’s market exposure, and the market price of the securities that the fund contracts to repurchase could drop below their purchase price. While a fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of a fund.
Investing in inflation linked bonds— The values of inflation linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.
Investing in inflation linked bonds may also reduce a fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation linked securities may decline and result in losses to a fund.
American Funds Insurance Series | 147 |
Investing in securities backed by the U.S. government— Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.
Investing in repurchase agreements— Upon entering into a repurchase agreement, a fund purchases a security from a bank or broker-dealer, which simultaneously commits to repurchase the security within a specified time at the fund’s cost with interest. The security purchased by the fund constitutes collateral for the seller’s repurchase obligation. If the party agreeing to repurchase should default, the fund may seek to sell the security it holds as collateral. The fund may incur a loss if the value of the collateral securing the repurchase obligation falls below the repurchase price. The fund may also incur disposition costs and encounter procedural delays in connection with liquidating the collateral.
Interest rate risk— The values and liquidity of the securities held by a fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. A fund may invest in variable and floating rate securities. When a fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of a fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, a fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.
Credit and liquidity support— Changes in the credit quality of banks and financial institutions providing credit and liquidity support features with respect to securities held by a fund could cause the values of these securities to decline.
Asset allocation— A fund’s percentage allocation to equity securities, debt securities and money market instruments could cause the fund to underperform relative to relevant benchmarks and other funds with similar investment objectives.
Nondiversification risk— As nondiversified funds, certain funds have the ability to invest a larger percentage of their assets in the securities of a smaller number of issuers than diversified funds. Although the funds do not intend to limit their investments to the securities of a small number of issuers, if they were to do so, poor performance by a single large holding could adversely impact the funds’ investment results more than if the funds were invested in a larger number of issuers.
Liquidity risk— Certain fund holdings may be or become difficult or impossible to sell, particularly during times of market turmoil. Illiquidity may result from the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.
Management— The investment adviser to the funds actively manages the funds’ investments. Consequently, the funds are subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause the funds to lose value or their investment results to lag relevant benchmarks or other funds with similar objectives.
Investing in the managed risk funds may involve additional risks including, but not limited to, those described below.
Fund structure— The managed risk funds invest in underlying funds and incur expenses related to those underlying funds. In addition, investors in the managed risk funds will incur fees to pay for certain expenses related to the operations of the managed risk funds. An investor holding the underlying fund directly would incur lower overall expenses but would not receive the benefit of the managed risk strategy.
Management— The managed risk funds are subject to the risk that the managed risk strategy or the methods employed by the subadviser in implementing the managed risk strategy may not produce the desired results. This could cause the managed risk funds to lose value or their investment results to lag relevant benchmarks or other funds with similar objectives.
148 | American Funds Insurance Series |
Underlying fund risks— Because the managed risk funds’ investments consist of investments in underlying funds, the managed risk funds’ risks are directly related to the risks of the respective underlying fund in which each managed fund invests. For this reason, it is important to understand the risks associated with investing both in the managed risk fund and in each of the underlying funds.
Investing in options and futures contracts— In addition to the risks generally associated with investing in derivative instruments, options and futures contracts are subject to the creditworthiness of the clearing organizations, exchanges and, in the case of futures, futures commission merchants with which a fund transacts. Additionally, although futures require only a small initial investment in the form of a deposit of initial margin, the amount of a potential loss on a futures contract could greatly exceed the initial amount invested. While both options and futures contracts are generally liquid instruments, under certain market conditions, options and futures may be deemed to be illiquid. For example, a fund may be temporarily prohibited from closing out its position in an options or futures contract if intraday price change limits or limits on trading volume imposed by the applicable exchange are triggered. If a fund is unable to close out a position on an options or futures contract, the fund would remain subject to the risk of adverse price movements until the fund is able to close out the position in question. The ability of a fund to successfully utilize options and futures contracts may depend in part upon the ability of the fund’s investment adviser or subadviser to accurately forecast interest rates and other economic factors and to assess and predict the impact of such economic factors on the options and futures in which the fund invests. If the investment adviser or subadviser incorrectly forecasts economic developments or incorrectly predicts the impact of such developments on the options and futures in which it invests, a fund could be exposed to the risk of loss. Whereas the risk of loss on a put option purchased by the fund is limited to the initial cost of the option, the amount of a potential loss on a futures contract could greatly exceed the relatively small initial amount invested in entering the futures position.
Hedging— There may be imperfect or even negative correlation between the prices of the options and futures contracts in which a fund invests and the prices of the underlying securities or indexes which the fund seeks to hedge. For example, options and futures contracts may not provide an effective hedge because changes in options and futures contract prices may not track those of the underlying securities or indexes they are intended to hedge. In addition, there are significant differences between the securities market, on the one hand, and the options and futures markets, on the other, that could result in an imperfect correlation between the markets, causing a given hedge not to achieve its objectives. The degree of imperfection of correlation depends on circumstances such as variations in speculative market demand for options and futures, including technical influences in options and futures trading, and differences between the financial instruments being hedged and the instruments underlying the standard contracts available for trading. A decision as to whether, when and how to hedge involves the exercise of skill and judgment, and even a well-conceived hedge may be unsuccessful to some degree because of market behavior or unexpected interest rate trends. In addition, the fund’s investment in exchange-traded options and futures and their resulting costs could limit the fund’s gains in rising markets relative to those of the underlying funds, or to those of unhedged funds in general.
Short positions— A fund may suffer losses from short positions in futures contracts. Losses from short positions in futures contracts occur when the underlying index increases in value. As the underlying index increases in value, the holder of the short position in the corresponding futures contract is required to pay the difference in value of the futures contract resulting from the increase in the index on a daily basis. Losses from a short position in an index futures contract could potentially be very large if the value of the underlying index rises dramatically in a short period of time.
5. Certain investment techniques
Securities lending— Global Small Capitalization Fund has entered into securities lending transactions in which the fund earns income by lending investment securities to brokers, dealers or other institutions. Each transaction involves three parties: the fund, acting as the lender of the securities, a borrower, and a lending agent that acts as an intermediary.
Securities lending transactions are entered into by the fund under the securities lending agreement with the lending agent. The lending agent facilitates the exchange of securities between the lender and the borrower, generally provides protection from borrower default, marks to market the value of collateral daily, secures additional collateral from the borrower if it falls below preset terms, and may reinvest the collateral on behalf of the fund according to agreed parameters. The lending agent has indemnified the fund against losses resulting from borrower default. Although risk is mitigated by the collateral and indemnification, the fund could experience a delay in recovering its securities and a potential loss of income or value if the borrower fails to return the securities, collateral investments decline in value or the lending agent fails to perform.
The borrower is required to post highly liquid assets, such as cash or U.S. government securities, as collateral for the loan in an amount at least equal to the value of the securities loaned. Investments made with cash collateral are recognized as assets in the fund’s investment portfolio. The same amount is recorded as a liability in the fund’s statement of assets and liabilities. While securities are on loan, the fund will continue to receive the equivalent of the interest, dividends or other distributions paid by the issuer, as well as a
American Funds Insurance Series | 149 |
portion of the interest on the investment of the collateral. Additionally, although the fund does not have the right to vote on securities while they are on loan, the fund has a right to consent on corporate actions and a right to recall loaned securities to vote on proposals affecting them. The borrower is obligated to return the loaned security at the conclusion of the loan or, during the pendency of the loan, on demand from the fund.
As of June 30, 2019, the total value of securities on loan was $158,280,000, and the total value of collateral received was $164,904,000. Collateral received included cash of $132,644,000 and non-cash U.S. Government securities of $32,260,000. Investment securities purchased from cash collateral of $119,380,000 are disclosed in the summary investment portfolio as short-term securities. Securities received as collateral, if any, are not recognized as fund assets. The contractual maturity of collateral received under the securities lending agreement is classified as overnight and continuous.
Index-linked bonds— Some of the funds have invested in index-linked bonds, which are fixed-income securities whose principal value is periodically adjusted to a government price index. Over the life of an index-linked bond, interest is paid on the adjusted principal value. Increases or decreases in the principal value of index-linked bonds are recorded as interest income in the fund’s statement of operations.
Mortgage dollar rolls— Some of the funds have entered into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Mortgage dollar rolls are accounted for as purchase and sale transactions, which may increase the funds’ portfolio turnover rates.
Loan transactions— Some of the funds have entered into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder’s portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan’s interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.
Short-term securities— The managed risk funds hold shares of the Government Cash Management Fund, a cash management vehicle offered by the Bank of New York Mellon (“BNY Mellon”), the funds’ custodian bank. The Government Cash Management Fund is managed by the Dreyfus Corporation.
Options contracts— The Managed Risk Growth-Income Fund has entered into options contracts, which give the holder of the option, in return for a premium payment, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option, the security underlying the option (or the cash value of the index underlying the option) at a specified price. As part of its managed risk strategy, the Managed Risk Growth-Income Fund will at times purchase put options on equity indexes in standardized contracts traded on foreign or domestic securities exchanges, boards of trade, or similar entities. By purchasing a put option on an equity index, the fund obtains the right (but not the obligation) to sell the cash value of the index underlying the option at a specified exercise price, and in return for this right, the fund pays the current market price, or the option premium, for the option.
The fund may terminate its position in a put option by allowing the option to expire or by exercising the option. If the option is allowed to expire, the fund will lose the entire premium. If the option is exercised, the fund completes the sale of the underlying instrument (or delivers the cash value of the index underlying the option) at the exercise price. The fund may also terminate a put option position by entering into opposing close-out transactions in advance of the option expiration date.
Premiums paid on options purchased, as well as the daily fluctuation in market value, are included in investment securities in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the option contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from options contracts are recorded in the fund’s statement of operations.
Futures contracts— Some of the funds have entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. For the managed risk funds, futures contracts are used to strategically manage portfolio volatility and downside equity risk.
Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, known as a futures commission merchant (“FCM”), in a segregated account in the name of the FCM an amount of cash, U.S. government securities or other liquid securities, known as initial margin. The margin required for a particular futures contract is set
150 | American Funds Insurance Series |
by the exchange on which the contract is traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract. Securities deposited as initial margin, if any, are disclosed in the investment portfolio and cash deposited as initial margin, if any, is reflected as restricted cash pledged for futures contracts in the fund’s statement of assets and liabilities.
On a daily basis, each fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in each fund’s statement of assets and liabilities. In addition, each fund segregates liquid assets equivalent to the fund’s outstanding obligations under the contract in excess of the initial margin and variation margin, if any. Futures contracts may involve a risk of loss in excess of the variation margin shown on each fund’s statement of assets and liabilities. Each fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in each fund’s statement of operations.
Forward currency contracts— Some of the funds have entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The series’ investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.
On a daily basis, the series’ investment adviser values forward currency contracts based on the applicable exchange rates and records unrealized appreciation or depreciation for open forward currency contracts in each fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in each fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in each fund’s statement of operations.
Interest rate swaps— Some of the funds have entered into interest rate swaps, which are agreements to exchange one stream of future interest payments for another based on a specified notional amount. Typically, interest rate swaps exchange a fixed interest rate for a payment that floats relative to a benchmark or vice versa. The series’ investment adviser uses interest rate swaps to manage the interest rate sensitivity of the fund by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. Risks may arise as a result of the series’ investment adviser incorrectly anticipating changes in interest rates, increased volatility, reduced liquidity and the potential inability of counterparties to meet the terms of their agreements.
Upon entering into an interest rate swap contract, the fund is required to deposit cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular interest rate swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract.
On a daily basis, the series’ investment adviser records daily interest accruals related to the exchange of future payments as a receivable and payable in each fund’s statement of assets and liabilities. Each fund also pays or receives a variation margin based on the increase or decrease in the value of the interest rate swaps, including accrued interest, and records variation margin on interest rate swaps in each fund’s statement of assets and liabilities. Each fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the interest rate swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from interest rate swaps are recorded in each fund’s statement of operations.
Credit default swap indices— Some of the funds have entered into centrally cleared credit default swap agreements on credit indices (“CDSI”) that involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified return upon the occurrence of a credit event, such as a default or restructuring, with respect to any of the underlying issuers (reference obligations) in the referenced index. The series’ investment adviser uses credit default swaps to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks.
CDSI are portfolios of credit instruments or exposures designed to be representative of some part of the credit market, such as the high-yield or investment-grade credit market. CDSI are generally traded using standardized terms, including a fixed spread and standard maturity dates, and reference all the names in the index. If there is a credit event, it is settled based on that name’s weight in the index. The composition of the underlying issuers or obligations within a particular index may change periodically, usually every six months. A specified credit event may affect all or individual underlying reference obligations included in the index, and will be settled based upon the relative weighting of the affected obligation(s) within the index. The value of each CDSI can be used as a measure of the current payment/performance risk of the CDSI and represents the likelihood of an expected liability or profit should the notional amount of the CDSI be closed or sold as of the period end. An increasing value, as compared to the notional amount of the CDSI,
American Funds Insurance Series | 151 |
represents a deterioration of the referenced indices’ credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. When a fund provides sell protection, its maximum exposure is the notional amount of the credit default swap agreement.
Upon entering into a centrally cleared CDSI contract, the fund is required to deposit with a derivatives clearing member (“DCM”) in a segregated account in the name of the DCM an amount of cash, U.S. government securities or other liquid securities, which is known as initial margin. Generally, the initial margin required for a particular credit default swap is set and held as collateral by the clearinghouse on which the contract is cleared. The amount of initial margin required may be significantly modified from time to time by the clearinghouse during the term of the contract. Securities deposited as initial margin are designated on the investment portfolio.
On a daily basis, interest accruals related to the exchange of future payments are recorded as a receivable and payable in each fund’s statement of assets and liabilities. Each fund also pays or receives a variation margin based on the increase or decrease in the value of the centrally cleared swaps, and records variation margin in each fund’s statement of assets and liabilities. Each fund records realized gains and losses on both the net accrued interest and any gain or loss recognized at the time the swap is closed or expires. Net realized gains or losses, as well as any net unrealized appreciation or depreciation, from credit default swaps are recorded in each fund’s statement of operations.
The following table presents the average month-end notional amounts of options purchased, futures contracts, forward currency contracts, interest rate swaps and credit default swaps while held for each fund (dollars in thousands):
Options purchased | Futures contracts | Forwards | Interest rate Swaps | Credit Default Swaps | ||||||
International Fund | Not applicable | Not applicable | $ 62,955 | Not applicable | Not applicable | |||||
New World Fund | Not applicable | Not applicable | 12,089 | * | Not applicable | Not applicable | ||||
Global Growth and Income Fund | Not applicable | Not applicable | 7,516 | Not applicable | Not applicable | |||||
International Growth and Income Fund | Not applicable | Not applicable | 1,582 | Not applicable | Not applicable | |||||
Capital Income Builder | Not applicable | $ 159,367 | Not applicable | $ 282,002 | Not applicable | |||||
Asset Allocation Fund | Not applicable | 1,363,592 | Not applicable | 1,029,617 | Not applicable | |||||
Global Balanced Fund | Not applicable | 13,222 | 24,216 | 62,509 | Not applicable | |||||
Bond Fund | Not applicable | 3,441,054 | 687,325 | 1,223,097 | Not applicable | |||||
Global Bond Fund | Not applicable | 405,232 | 751,208 | 1,050,454 | Not applicable | |||||
High-Income Bond Fund | Not applicable | Not applicable | Not applicable | 34,644 | * | $69,305 | ||||
Mortgage Fund | Not applicable | 152,083 | Not applicable | 422,087 | Not applicable | |||||
U.S. Government/AAA-Rated Securities Fund | Not applicable | 2,866,388 | Not applicable | 13,229,823 | Not applicable | |||||
Managed Risk Growth Fund | Not applicable | 53,799 | Not applicable | Not applicable | Not applicable | |||||
Managed Risk International Fund | Not applicable | 186,094 | Not applicable | Not applicable | Not applicable | |||||
Managed Risk Blue Chip Income and Growth Fund | Not applicable | 45,963 | Not applicable | Not applicable | Not applicable | |||||
Managed Risk Growth-Income Fund | $216,765 | 201,777 | Not applicable | Not applicable | Not applicable | |||||
Managed Risk Asset Allocation Fund | Not applicable | 338,197 | Not applicable | Not applicable | Not applicable |
* | No contracts were held at the end of the reporting period; amount represents the average month-end notional amount of contracts while they were held. |
152 | American Funds Insurance Series |
The following tables identify the location and fair value amounts on the funds’ statements of assets and liabilities and the effect on the funds’ statements of operations resulting from the funds’ use of options, futures contracts, forward currency contracts, interest rate swaps and/or credit default swaps as of, or for the six months ended June 30, 2019 (dollars in thousands):
International Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | $ | 124 | Unrealized depreciation on open forward currency contracts | $ | 340 | |||||||
Net realized loss | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Forward currency | Currency | Net realized loss on forward currency contracts | $ | (999 | ) | Net unrealized appreciation on forward currency contracts | $ | 309 | ||||||
New World Fund | ||||||||||||||
Net realized gain | Net unrealized depreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $ | 303 | Net unrealized depreciation on forward currency contracts | $ | (303 | ) | ||||||
Global Growth and Income Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | $ | — | Unrealized depreciation on open forward currency contracts | $ | 94 | |||||||
Net realized gain | Net unrealized depreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $ | 493 | Net unrealized depreciation on forward currency contracts | $ | (445 | ) |
See end of tables for footnotes.
American Funds Insurance Series | 153 |
International Growth and Income Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | $ | 5 | Unrealized depreciation on open forward currency contracts | $ | — | |||||||
Net realized gain | Net unrealized appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $ | 24 | Net unrealized appreciation on forward currency contracts | $ | 5 | |||||||
Capital Income Builder | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 1,059 | Unrealized depreciation1 | $ | 1,125 | |||||||
Swap | Interest | Unrealized appreciation1 | 1,793 | Unrealized depreciation1 | 444 | |||||||||
$ | 2,852 | $ | 1,569 | |||||||||||
Net realized (loss) gain | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized loss on futures contracts | $ | (194 | ) | Net unrealized depreciation on futures contracts | $ | (495 | ) | |||||
Swap | Interest | Net realized gain on swap contracts | 230 | Net unrealized appreciation on swap contracts | 1,349 | |||||||||
$ | 36 | $ | 854 | |||||||||||
Asset Allocation Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 18,387 | Unrealized depreciation1 | $ | 7,975 | |||||||
Swap | Interest | Unrealized appreciation1 | — | Unrealized depreciation1 | 9,381 | |||||||||
$ | 18,387 | $ | 17,356 | |||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 12,523 | Net unrealized appreciation on futures contracts | $ | 5,251 | |||||||
Swap | Interest | Net realized loss on swap contracts | (12,336 | ) | Net unrealized depreciation on swap contracts | (5,824 | ) | |||||||
$ | 187 | $ | (573 | ) |
154 | American Funds Insurance Series |
Global Balanced Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 89 | Unrealized depreciation1 | $ | — | |||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 102 | Unrealized depreciation on open forward currency contracts | 100 | |||||||||
Swap | Interest | Unrealized appreciation1 | 51 | Unrealized depreciation1 | — | |||||||||
$ | 242 | $ | 100 | |||||||||||
Net realized gain (loss) | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 509 | Net unrealized depreciation on futures contracts | $ | (91 | ) | ||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (206 | ) | Net unrealized depreciation on forward currency contracts | (80 | ) | |||||||
Swap | Interest | Net realized loss on swap contracts | (20 | ) | Net unrealized appreciation on swap contracts | 46 | ||||||||
$ | 283 | $ | (125 | ) | ||||||||||
Bond Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 50,129 | Unrealized depreciation1 | $ | 12,139 | |||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 4,506 | Unrealized depreciation on open forward currency contracts | 7,567 | |||||||||
Swap | Interest | Unrealized appreciation1 | 1,366 | Unrealized depreciation1 | 13,184 | |||||||||
$ | 56,001 | $ | 32,890 | |||||||||||
Net realized gain (loss) | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 31,573 | Net unrealized appreciation on futures contracts | $ | 18,382 | |||||||
Forward currency | Currency | Net realized loss on forward currency contracts | (10,249 | ) | Net unrealized appreciation on forward currency contracts | 6,210 | ||||||||
Swap | Interest | Net realized loss on swap contracts | (14,206 | ) | Net unrealized depreciation on swap contracts | (12,045 | ) | |||||||
Swap | Credit | Net realized loss on swap contracts | (342 | ) | Net unrealized appreciation on swap contracts | — | ||||||||
$ | 6,776 | $ | 12,547 | |||||||||||
See end of tables for footnotes.
American Funds Insurance Series | 155 |
Global Bond Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 2,738 | Unrealized depreciation1 | $ | 1,424 | |||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | 2,437 | Unrealized depreciation on open forward currency contracts | 2,882 | |||||||||
Swap | Interest | Unrealized appreciation1 | 1,351 | Unrealized depreciation1 | — | |||||||||
$ | 6,526 | $ | 4,306 | |||||||||||
Net realized gain (loss) | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 12,050 | Net unrealized depreciation on futures contracts | $ | (2,957 | ) | ||||||
Forward currency | Currency | Net realized gain on forward currency contracts | 2,707 | Net unrealized depreciation on forward currency contracts | (7,363 | ) | ||||||||
Swap | Interest | Net realized loss on swap contracts | (202 | ) | Net unrealized appreciation on swap contracts | 1,300 | ||||||||
$ | 14,555 | $ | (9,020 | ) | ||||||||||
High-Income Bond Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Swap | Credit | Unrealized appreciation1 | $ | — | Unrealized depreciation1 | $ | 284 | |||||||
Net realized loss | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Swap | Interest | Net realized loss on swap contracts | $ | (268 | ) | Net unrealized appreciation on swap contracts | $ | 224 | ||||||
Swap | Credit | Net realized loss on swap contracts | (127 | ) | Net unrealized depreciation on swap contracts | (1,828 | ) | |||||||
$ | (395 | ) | $ | (1,604 | ) | |||||||||
Mortgage Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 2,209 | Unrealized depreciation1 | $ | 5 | |||||||
Swap | Interest | Unrealized appreciation1 | 2,613 | Unrealized depreciation1 | 4,884 | |||||||||
$ | 4,822 | $ | 4,889 |
156 | American Funds Insurance Series |
Net realized gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 3,551 | Net unrealized appreciation on futures contracts | $ | 305 | |||||||
Swap | Interest | Net realized gain on swap contracts | 1,067 | Net unrealized depreciation on swap contracts | (3,465 | ) | ||||||||
$ | 4,618 | $ | (3,160 | ) | ||||||||||
U.S. Government/AAA-Rated Securities Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 25,747 | Unrealized depreciation1 | $ | 1,612 | |||||||
Swap | Interest | Unrealized appreciation1 | 36,665 | Unrealized depreciation1 | 62,787 | |||||||||
$ | 62,412 | $ | 64,399 | |||||||||||
Net realized gain | Net unrealized depreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Interest | Net realized gain on futures contracts | $ | 55,917 | Net unrealized depreciation on futures contracts | $ | (3,315 | ) | ||||||
Swap | Interest | Net realized gain on swap contracts | 6,764 | Net unrealized depreciation on swap contracts | (45,476 | ) | ||||||||
$ | 62,681 | $ | (48,791 | ) | ||||||||||
Managed Risk Growth Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 171 | Unrealized depreciation1 | $ | — | |||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized loss on futures contracts | $ | (53 | ) | Net unrealized appreciation on futures contracts | $ | 45 | ||||||
Futures | Equity | Net realized loss on futures contracts | (5,316 | ) | Net unrealized depreciation on futures contracts | (4,022 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 2,166 | Net unrealized depreciation on futures contracts | (1,743 | ) | ||||||||
$ | (3,203 | ) | $ | (5,720 | ) |
See end of tables for footnotes.
American Funds Insurance Series | 157 |
Managed Risk International Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 77 | Unrealized depreciation1 | $ | — | |||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized loss on futures contracts | $ | (297 | ) | Net unrealized appreciation on futures contracts | $ | 278 | ||||||
Futures | Equity | Net realized loss on futures contracts | (1,420 | ) | Net unrealized depreciation on futures contracts | (882 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 621 | Net unrealized depreciation on futures contracts | (538 | ) | ||||||||
$ | (1,096 | ) | $ | (1,142 | ) | |||||||||
Managed Risk Blue Chip Income and Growth Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 124 | Unrealized depreciation1 | $ | — | |||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized loss on futures contracts | $ | (27 | ) | Net unrealized appreciation on futures contracts | $ | 30 | ||||||
Futures | Equity | Net realized loss on futures contracts | (5,702 | ) | Net unrealized depreciation on futures contracts | (3,946 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 2,075 | Net unrealized depreciation on futures contracts | (1,741 | ) | ||||||||
$ | (3,654 | ) | $ | (5,657 | ) | |||||||||
Managed Risk Growth-Income Fund | ||||||||||||||
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Options purchased | Equity | Investment securities from unaffiliated issuers2 | $ | 4,101 | Investment securities from unaffiliated issuers2 | $ | — | |||||||
Futures | Equity | Unrealized appreciation1 | 836 | Unrealized depreciation1 | — | |||||||||
Futures | Interest | Unrealized appreciation1 | 1,476 | Unrealized depreciation1 | — | |||||||||
$ | 6,413 | $ | — |
158 | American Funds Insurance Series |
Net realized (loss) gain | Net unrealized (depreciation) appreciation | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Options purchased | Equity | Net realized loss on options purchased contracts3 | $ | (7,604 | ) | Net unrealized depreciation on options purchased contracts4 | $ | (11,249 | ) | |||||
Futures | Currency | Net realized loss on futures contracts | (716 | ) | Net unrealized appreciation on futures contracts | 497 | ||||||||
Futures | Equity | Net realized loss on futures contracts | (20,075 | ) | Net unrealized depreciation on futures contracts | (3,049 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 6,741 | Net unrealized depreciation on futures contracts | (5,443 | ) | ||||||||
$ | (21,654 | ) | $ | (19,244 | ) |
Managed Risk Asset Allocation Fund
Assets | Liabilities | |||||||||||||
Contracts | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | |||||||||
Futures | Interest | Unrealized appreciation1 | $ | 1,321 | Unrealized depreciation1 | $ | — | |||||||
Net realized (loss) gain | Net unrealized appreciation (depreciation) | |||||||||||||
Contracts | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | |||||||||
Futures | Currency | Net realized loss on futures contracts | $ | (232 | ) | Net unrealized appreciation on futures contracts | $ | 182 | ||||||
Futures | Equity | Net realized loss on futures contracts | (22,682 | ) | Net unrealized depreciation on futures contracts | (17,157 | ) | |||||||
Futures | Interest | Net realized gain on futures contracts | 8,058 | Net unrealized depreciation on futures contracts | (7,027 | ) | ||||||||
$ | (14,856 | ) | $ | (24,002 | ) |
1 | Includes cumulative appreciation/depreciation on futures contracts, interest rate swaps and/or credit default swaps as reported in the applicable table following each fund’s investment portfolio. Only current day’s variation margin is reported within the statements of assets and liabilities. |
2 | Includes options purchased as reported in the fund’s investment portfolio. |
3 | Options purchased are included in net realized gain (loss) on unaffiliated investments. |
4 | Options purchased are included in net unrealized appreciation (depreciation) on unaffiliated investments. |
Collateral— Some funds participate in a collateral program that calls for the funds to either receive or pledge highly liquid assets, such as cash or U.S. government securities, as collateral due to securities lending and/or their use of futures contracts, forward currency contracts, interest rate swaps, credit default swaps and/or future delivery contracts. For securities lending, each participating fund receives collateral in exchange for lending investment securities. The purpose of the collateral is to cover potential losses that could occur in the event that the borrower cannot meet its contractual obligation. The lending agent may reinvest collateral from securities lending transactions according to agreed parameters. For futures contracts, interest rate swaps and credit default swaps, the program calls for each participating fund to pledge collateral for initial and variation margin by contract. For forward currency contracts, the program calls for each participating fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. For future delivery contracts, the program calls for each participating fund to either receive or pledge collateral based on the net gain or loss on unsettled contracts by certain counterparties. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation. Non-cash collateral pledged by each participating fund, if any, is disclosed in each fund’s investment portfolio, and cash collateral pledged by each participating fund, if any, is held in a segregated account with the fund’s custodian, which is reflected as pledged cash in each fund’s statement of assets and liabilities.
Rights of offset— Funds that hold forward currency contracts have enforceable master netting agreements with certain counterparties, where amounts payable by each party to the other in the same currency (with the same settlement date and with the same counterparty) are settled net of each party’s payment obligation. If an early termination date occurs under these agreements following an event
American Funds Insurance Series | 159 |
of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting“). For financial reporting purposes, the funds do not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statements of assets and liabilities.
The following tables present each fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the funds’ statements of assets and liabilities. The net amount column shows the impact of offsetting on the funds’ statement of assets and liabilities as of June 30, 2019, if close-out netting was exercised (dollars in thousands):
International Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral* | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Citibank | $ | 72 | $ | (6 | ) | $ | — | $ | (66 | ) | $ | — | ||||||||
Morgan Stanley | 52 | — | — | — | 52 | |||||||||||||||
Total | $ | 124 | $ | (6 | ) | $ | — | $ | (66 | ) | $ | 52 | ||||||||
Liabilities: | ||||||||||||||||||||
Citibank | $ | 6 | $ | (6 | ) | $ | — | $ | — | $ | — | |||||||||
JPMorgan Chase | 334 | — | — | (334 | ) | — | ||||||||||||||
Total | $ | 340 | $ | (6 | ) | $ | — | $ | (334 | ) | $ | — |
Global Growth and Income Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral* | amount | |||||||||||||||
Liabilities: | ||||||||||||||||||||
JPMorgan Chase | $ | 94 | $ | — | $ | — | $ | — | $ | 94 |
International Growth and Income Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral* | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Morgan Stanley | $ | 5 | $ | — | $ | — | $ | — | $ | 5 |
160 | American Funds Insurance Series |
Global Balanced Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral* | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 9 | $ | (3 | ) | $ | — | $ | — | $ | 6 | |||||||||
Citibank | 16 | (8 | ) | — | — | 8 | ||||||||||||||
Goldman Sachs | 14 | (8 | ) | — | — | 6 | ||||||||||||||
HSBC Bank | 29 | (29 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 22 | (10 | ) | — | — | 12 | ||||||||||||||
Morgan Stanley | 10 | (10 | ) | — | — | — | ||||||||||||||
Standard Chartered Bank | 2 | (2 | ) | — | — | — | ||||||||||||||
Total | $ | 102 | $ | (70 | ) | $ | — | $ | — | $ | 32 | |||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 3 | $ | (3 | ) | $ | — | $ | — | $ | — | |||||||||
Bank of New York Mellon | 1 | — | — | — | 1 | |||||||||||||||
Citibank | 8 | (8 | ) | — | — | — | ||||||||||||||
Goldman Sachs | 8 | (8 | ) | — | — | — | ||||||||||||||
HSBC Bank | 35 | (29 | ) | — | — | 6 | ||||||||||||||
JPMorgan Chase | 10 | (10 | ) | — | — | — | ||||||||||||||
Morgan Stanley | 11 | (10 | ) | — | — | 1 | ||||||||||||||
Standard Chartered Bank | 24 | (2 | ) | — | — | 22 | ||||||||||||||
Total | $ | 100 | $ | (70 | ) | $ | — | $ | — | $ | 30 |
Bond Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral* | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 2,014 | $ | (1,029 | ) | $ | (985 | ) | $ | — | $ | — | ||||||||
Citibank | 2,492 | (2,492 | ) | — | — | — | ||||||||||||||
Total | $ | 4,506 | $ | (3,521 | ) | $ | (985 | ) | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 1,029 | $ | (1,029 | ) | $ | — | $ | — | $ | — | |||||||||
Citibank | 4,066 | (2,492 | ) | (1,574 | ) | — | — | |||||||||||||
Goldman Sachs | 1,821 | — | (1,821 | ) | — | — | ||||||||||||||
HSBC Bank | 43 | — | — | — | 43 | |||||||||||||||
JPMorgan Chase | 298 | — | (298 | ) | — | — | ||||||||||||||
Morgan Stanley | 310 | — | (310 | ) | — | — | ||||||||||||||
Total | $ | 7,567 | $ | (3,521 | ) | $ | (4,003 | ) | $ | — | $ | 43 |
See end of tables for footnote.
American Funds Insurance Series | 161 |
Global Bond Fund
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
statement of assets | Available | Non-cash | Cash | Net | ||||||||||||||||
Counterparty | and liabilities | to offset | collateral* | collateral* | amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 209 | $ | (149 | ) | $ | (60 | ) | $ | — | $ | — | ||||||||
Citibank | 258 | (258 | ) | — | — | — | ||||||||||||||
Goldman Sachs | 433 | (313 | ) | — | — | 120 | ||||||||||||||
HSBC Bank | 322 | (322 | ) | — | — | — | ||||||||||||||
JPMorgan Chase | 660 | (182 | ) | — | (290 | ) | 188 | |||||||||||||
Morgan Stanley | 239 | (239 | ) | — | — | — | ||||||||||||||
Standard Chartered Bank | 212 | (212 | ) | — | — | — | ||||||||||||||
UBS AG | 104 | — | — | — | 104 | |||||||||||||||
Total | $ | 2,437 | $ | (1,675 | ) | $ | (60 | ) | $ | (290 | ) | $ | 412 | |||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 149 | $ | (149 | ) | $ | — | $ | — | $ | — | |||||||||
Bank of New York Mellon | 6 | — | — | — | 6 | |||||||||||||||
Citibank | 673 | (258 | ) | (303 | ) | — | 112 | |||||||||||||
Goldman Sachs | 313 | (313 | ) | — | — | — | ||||||||||||||
HSBC Bank | 683 | (322 | ) | (282 | ) | — | 79 | |||||||||||||
JPMorgan Chase | 182 | (182 | ) | — | — | — | ||||||||||||||
Morgan Stanley | 393 | (239 | ) | (149 | ) | — | 5 | |||||||||||||
Standard Chartered Bank | 483 | (212 | ) | (269 | ) | — | 2 | |||||||||||||
Total | $ | 2,882 | $ | (1,675 | ) | $ | (1,003 | ) | $ | — | $ | 204 |
* | Collateral is shown on a settlement basis. |
6. Taxation and distributions
Federal income taxation— Each fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The funds are not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended June 30, 2019, none of the funds had a liability for any unrecognized tax benefits. Each fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in their respective statements of operations. During the period, none of the funds incurred any significant interest or penalties.
Each fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.
Non-U.S. taxation— Dividend and interest income, if any, are recorded net of non-U.S. taxes paid. The funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the funds filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the funds on the sale of securities in certain countries, if any, may be subject to non-U.S. taxes. If applicable, the funds record an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
Distributions— Distributions paid to shareholders are based on each fund’s net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; deferred expenses; cost of investments sold; paydowns on fixed-income securities; net capital losses; non-U.S. taxes on capital gains; amortization of premiums and discounts and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the funds for financial reporting purposes.
162 | American Funds Insurance Series |
Additional tax basis disclosures for each fund are as follows (dollars in thousands):
Global | Blue Chip | |||||||||||||||||||||||
Global | Small | New | Income and | |||||||||||||||||||||
Growth | Capitalization | Growth | International | World | Growth | |||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
As of December 31, 2018: | ||||||||||||||||||||||||
Undistributed ordinary income | $ | 8,660 | $ | 49,672 | $ | 198,816 | $ | 15,101 | $ | 6,466 | $ | 36,690 | ||||||||||||
Undistributed long-term capital gains | 343,497 | 226,394 | 2,617,605 | 244,466 | 127,685 | 688,634 | ||||||||||||||||||
As of June 30, 2019: | ||||||||||||||||||||||||
Gross unrealized appreciation on investments | 2,498,042 | 1,100,893 | 10,252,267 | 2,414,395 | 795,153 | 1,868,094 | ||||||||||||||||||
Gross unrealized depreciation on investments | (179,515 | ) | (202,349 | ) | (367,944 | ) | (578,588 | ) | (95,536 | ) | (365,708 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 2,318,527 | 898,544 | 9,884,323 | 1,835,807 | 699,617 | 1,502,386 | ||||||||||||||||||
Cost of investments | 3,973,544 | 3,590,353 | 16,519,783 | 8,013,031 | 2,750,008 | 7,401,972 | ||||||||||||||||||
Global | International | |||||||||||||||||||||||
Growth | Growth- | Growth | Capital | Asset | Global | |||||||||||||||||||
and Income | Income | and Income | Income | Allocation | Balanced | |||||||||||||||||||
Fund | Fund | Fund | Builder | Fund | Fund | |||||||||||||||||||
As of December 31, 2018: | ||||||||||||||||||||||||
Undistributed ordinary income | $ | 6,636 | $ | 252,809 | $ | 21,126 | $ | 1,595 | $ | 110,523 | $ | 541 | ||||||||||||
Undistributed long-term capital gains | 100,790 | 3,204,751 | — | — | 1,278,077 | 353 | ||||||||||||||||||
Capital loss carryforward* | — | — | — | (13,776 | ) | — | — | |||||||||||||||||
As of June 30, 2019: | ||||||||||||||||||||||||
Gross unrealized appreciation on investments | 535,307 | 9,638,352 | 253,242 | 76,501 | 5,761,019 | 64,481 | ||||||||||||||||||
Gross unrealized depreciation on investments | (38,478 | ) | (1,067,251 | ) | (99,719 | ) | (38,015 | ) | (627,910 | ) | (9,001 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 496,829 | 8,571,101 | 153,523 | 38,486 | 5,133,109 | 55,480 | ||||||||||||||||||
Cost of investments | 1,537,434 | 25,256,172 | 1,277,341 | 796,999 | 20,875,684 | 359,719 | ||||||||||||||||||
U.S. | ||||||||||||||||||||||||
High- | Government/ | |||||||||||||||||||||||
Global | Income | Ultra-Short | AAA-Rated | |||||||||||||||||||||
Bond | Bond | Bond | Mortgage | Bond | Securities | |||||||||||||||||||
Fund | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
As of December 31, 2018: | ||||||||||||||||||||||||
Undistributed ordinary income | $ | 56,980 | $ | 15,875 | $ | 15,462 | $ | 1,266 | $ | 999 | $ | 11,344 | ||||||||||||
Capital loss carryforward* | (159,206 | ) | (3,784 | ) | (160,099 | ) | (6,175 | ) | — | (52,033 | ) | |||||||||||||
As of June 30, 2019: | ||||||||||||||||||||||||
Gross unrealized appreciation on investments | 380,851 | 82,288 | 19,449 | 7,835 | 9 | 87,477 | ||||||||||||||||||
Gross unrealized depreciation on investments | (81,535 | ) | (30,531 | ) | (56,117 | ) | (5,220 | ) | (47 | ) | (66,037 | ) | ||||||||||||
Net unrealized appreciation (depreciation) on investments | 299,316 | 51,757 | (36,668 | ) | 2,615 | (38 | ) | 21,440 | ||||||||||||||||
Cost of investments | 11,026,984 | 2,096,117 | 1,321,265 | 291,846 | 285,230 | 2,948,193 |
See end of tables for footnote.
American Funds Insurance Series | 163 |
Managed | Managed | Managed | ||||||||||||||||||
Managed | Managed | Risk Blue | Risk | Risk | ||||||||||||||||
Risk | Risk | Chip Income | Growth- | Asset | ||||||||||||||||
Growth | International | and Growth | Income | Allocation | ||||||||||||||||
Fund | Fund | Fund | Fund | Fund | ||||||||||||||||
As of December 31, 2018: | ||||||||||||||||||||
Undistributed ordinary income | $ | 2,543 | $ | 2,983 | $ | 5,577 | $ | 6,359 | $ | 62,616 | ||||||||||
Undistributed long-term capital gains | 26,579 | 4,809 | 17,833 | 16,511 | 115,113 | |||||||||||||||
As of June 30, 2019: | ||||||||||||||||||||
Gross unrealized appreciation on investments | 1,969 | 1,425 | 1,398 | 58,266 | 80,042 | |||||||||||||||
Gross unrealized depreciation on investments | — | — | (20,122 | ) | (10,238 | ) | — | |||||||||||||
Net unrealized appreciation (depreciation) on investments | 1,969 | 1,425 | (18,724 | ) | 48,028 | 80,042 | ||||||||||||||
Cost of investments | 395,653 | 162,251 | 372,751 | 2,095,335 | 2,630,305 |
* | Capital loss carryforwards will be used to offset any capital gains realized by the fund in the current year or in subsequent years. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
Distributions paid by each fund were characterized for tax purposes as follows (dollars in thousands):
Global Growth Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 3,637 | $ | 121,251 | $ | 124,888 | $ | 28,611 | $ | 134,884 | $ | 163,495 | ||||||||||||
Class 1A | 9 | 367 | 376 | 47 | 273 | 320 | ||||||||||||||||||
Class 2 | 4,707 | 204,481 | 209,188 | 41,238 | 251,323 | 292,561 | ||||||||||||||||||
Class 4 | 311 | 17,408 | 17,719 | 2,414 | 16,024 | 18,438 | ||||||||||||||||||
Total | $ | 8,664 | $ | 343,507 | $ | 352,171 | $ | 72,310 | $ | 402,504 | $ | 474,814 |
Global Small Capitalization Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 21,934 | $ | 97,912 | $ | 119,846 | $ | 21,329 | $ | 55,968 | $ | 77,297 | ||||||||||||
Class 1A | 5 | 23 | 28 | 4 | 12 | 16 | ||||||||||||||||||
Class 2 | 25,817 | 119,280 | 145,097 | 26,294 | 86,037 | 112,331 | ||||||||||||||||||
Class 4 | 1,932 | 9,184 | 11,116 | 1,456 | 5,035 | 6,491 | ||||||||||||||||||
Total | $ | 49,688 | $ | 226,399 | $ | 276,087 | $ | 49,083 | $ | 147,052 | $ | 196,135 |
Growth Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 75,877 | $ | 964,757 | $ | 1,040,634 | $ | 88,940 | $ | 792,865 | $ | 881,805 | ||||||||||||
Class 1A | 97 | 1,290 | 1,387 | 76 | 634 | 710 | ||||||||||||||||||
Class 2 | 111,958 | 1,500,212 | 1,612,170 | 117,331 | 1,515,757 | 1,633,088 | ||||||||||||||||||
Class 3 | 1,549 | 20,442 | 21,991 | 1,723 | 20,248 | 21,971 | ||||||||||||||||||
Class 4 | 9,369 | 130,929 | 140,298 | 6,414 | 104,527 | 110,941 | ||||||||||||||||||
Total | $ | 198,850 | $ | 2,617,630 | $ | 2,816,480 | $ | 214,484 | $ | 2,434,031 | $ | 2,648,515 |
164 | American Funds Insurance Series |
International Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 9,081 | $ | 130,060 | $ | 139,141 | $ | 174,418 | $ | 165,915 | $ | 340,333 | ||||||||||||
Class 1A | 8 | 141 | 149 | 156 | 140 | 296 | ||||||||||||||||||
Class 2 | 5,643 | 104,778 | 110,421 | 136,977 | 146,986 | 283,963 | ||||||||||||||||||
Class 3 | 37 | 637 | 674 | 887 | 970 | 1,857 | ||||||||||||||||||
Class 4 | 368 | 8,870 | 9,238 | 9,465 | 10,556 | 20,021 | ||||||||||||||||||
Total | $ | 15,137 | $ | 244,486 | $ | 259,623 | $ | 321,903 | $ | 324,567 | $ | 646,470 |
New World Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 4,047 | $ | 71,500 | $ | 75,547 | $ | 21,450 | $ | 54,023 | $ | 75,473 | ||||||||||||
Class 1A | 7 | 132 | 139 | 24 | 50 | 74 | ||||||||||||||||||
Class 2 | 1,617 | 34,958 | 36,575 | 8,194 | 26,593 | 34,787 | ||||||||||||||||||
Class 4 | 806 | 21,103 | 21,909 | 3,419 | 12,659 | 16,078 | ||||||||||||||||||
Total | $ | 6,477 | $ | 127,693 | $ | 134,170 | $ | 33,087 | $ | 93,325 | $ | 126,412 |
Blue Chip Income and Growth Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 22,828 | $ | 410,713 | $ | 433,541 | $ | 232,769 | $ | 299,947 | $ | 532,716 | ||||||||||||
Class 1A | 23 | 435 | 458 | 120 | 135 | 255 | ||||||||||||||||||
Class 2 | 12,001 | 238,793 | 250,794 | 134,358 | 186,318 | 320,676 | ||||||||||||||||||
Class 4 | 1,844 | 38,700 | 40,544 | 13,348 | 16,620 | 29,968 | ||||||||||||||||||
Total | $ | 36,696 | $ | 688,641 | $ | 725,337 | $ | 380,595 | $ | 503,020 | $ | 883,615 |
Global Growth and Income Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 2,017 | $ | 27,971 | $ | 29,988 | $ | 16,289 | $ | 31,541 | $ | 47,830 | ||||||||||||
Class 1A | 5 | 66 | 71 | 28 | 53 | 81 | ||||||||||||||||||
Class 2 | 4,278 | 66,794 | 71,072 | 40,436 | 90,173 | 130,609 | ||||||||||||||||||
Class 4 | 350 | 5,970 | 6,320 | 2,682 | 5,789 | 8,471 | ||||||||||||||||||
Total | $ | 6,650 | $ | 100,801 | $ | 107,451 | $ | 59,435 | $ | 127,556 | $ | 186,991 |
American Funds Insurance Series | 165 |
Growth-Income Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 147,504 | $ | 1,825,184 | $ | 1,972,688 | $ | 341,172 | $ | 1,049,641 | $ | 1,390,813 | ||||||||||||
Class 1A | 64 | 825 | 889 | 124 | 344 | 468 | ||||||||||||||||||
Class 2 | 96,542 | 1,260,360 | 1,356,902 | 241,470 | 886,942 | 1,128,412 | ||||||||||||||||||
Class 3 | 1,127 | 14,500 | 15,627 | 2,907 | 10,337 | 13,244 | ||||||||||||||||||
Class 4 | 7,620 | 103,934 | 111,554 | 15,471 | 58,501 | 73,972 | ||||||||||||||||||
Total | $ | 252,857 | $ | 3,204,803 | $ | 3,457,660 | $ | 601,144 | $ | 2,005,765 | $ | 2,606,909 |
International Growth and Income Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 16,279 | $ | — | $ | 16,279 | $ | 28,476 | $ | — | $ | 28,476 | ||||||||||||
Class 1A | 33 | — | 33 | 44 | — | 44 | ||||||||||||||||||
Class 2 | 3,580 | — | 3,580 | 5,865 | — | 5,865 | ||||||||||||||||||
Class 4 | 1,239 | — | 1,239 | 1,597 | — | 1,597 | ||||||||||||||||||
Total | $ | 21,131 | $ | — | $ | 21,131 | $ | 35,982 | $ | — | $ | 35,982 |
Capital Income Builder
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 6,127 | $ | — | $ | 6,127 | $ | 9,421 | $ | 617 | $ | 10,038 | ||||||||||||
Class 1A | 49 | — | 49 | 66 | 3 | 69 | ||||||||||||||||||
Class 2 | 64 | — | 64 | 90 | 6 | 96 | ||||||||||||||||||
Class 4 | 5,320 | — | 5,320 | 9,550 | 762 | 10,312 | ||||||||||||||||||
Total | $ | 11,560 | $ | — | $ | 11,560 | $ | 19,127 | $ | 1,388 | $ | 20,515 |
Asset Allocation Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 73,953 | $ | 816,841 | $ | 890,794 | $ | 386,982 | $ | 666,856 | $ | 1,053,838 | ||||||||||||
Class 1A | 35 | 416 | 451 | 147 | 263 | 410 | ||||||||||||||||||
Class 2 | 20,897 | 253,101 | 273,998 | 103,332 | 210,133 | 313,465 | ||||||||||||||||||
Class 3 | 134 | 1,581 | 1,715 | 686 | 1,413 | 2,099 | ||||||||||||||||||
Class 4 | 15,585 | 206,152 | 221,737 | 69,096 | 148,867 | 217,963 | ||||||||||||||||||
Total | $ | 110,604 | $ | 1,278,091 | $ | 1,388,695 | $ | 560,243 | $ | 1,027,532 | $ | 1,587,775 |
166 | American Funds Insurance Series |
Global Balanced Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 163 | $ | 109 | $ | 272 | $ | 1,808 | $ | 1,346 | $ | 3,154 | ||||||||||||
Class 1A | 3 | 2 | 5 | 30 | 25 | 55 | ||||||||||||||||||
Class 2 | 257 | 173 | 430 | 2,555 | 2,290 | 4,845 | ||||||||||||||||||
Class 4 | 105 | 71 | 176 | 804 | 842 | 1,646 | ||||||||||||||||||
Total | $ | 528 | $ | 355 | $ | 883 | $ | 5,197 | $ | 4,503 | $ | 9,700 |
Bond Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 35,807 | $ | — | $ | 35,807 | $ | 156,337 | $ | 8,915 | $ | 165,252 | ||||||||||||
Class 1A | 25 | — | 25 | 76 | 4 | 80 | ||||||||||||||||||
Class 2 | 19,047 | — | 19,047 | 88,266 | 5,217 | 93,483 | ||||||||||||||||||
Class 4 | 2,133 | — | 2,133 | 8,153 | 453 | 8,606 | ||||||||||||||||||
Total | $ | 57,012 | $ | — | $ | 57,012 | $ | 252,832 | $ | 14,589 | $ | 267,421 |
Global Bond Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 8,015 | $ | — | $ | 8,015 | $ | 25,210 | $ | 3,256 | $ | 28,466 | ||||||||||||
Class 1A | 3 | — | 3 | 9 | 1 | 10 | ||||||||||||||||||
Class 2 | 7,548 | — | 7,548 | 23,308 | 3,412 | 26,720 | ||||||||||||||||||
Class 4 | 317 | — | 317 | 816 | 118 | 934 | ||||||||||||||||||
Total | $ | 15,883 | $ | — | $ | 15,883 | $ | 49,343 | $ | 6,787 | $ | 56,130 |
High-Income Bond Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 6,459 | $ | — | $ | 6,459 | $ | 34,114 | $ | — | $ | 34,114 | ||||||||||||
Class 1A | 9 | — | 9 | 40 | — | 40 | ||||||||||||||||||
Class 2 | 8,299 | — | 8,299 | 43,382 | — | 43,382 | ||||||||||||||||||
Class 3 | 118 | — | 118 | 664 | — | 664 | ||||||||||||||||||
Class 4 | 588 | — | 588 | 1,733 | — | 1,733 | ||||||||||||||||||
Total | $ | 15,473 | $ | — | $ | 15,473 | $ | 79,933 | $ | — | $ | 79,933 |
Mortgage Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 944 | $ | — | $ | 944 | $ | 4,938 | $ | — | $ | 4,938 | ||||||||||||
Class 1A | 3 | — | 3 | 15 | — | 15 | ||||||||||||||||||
Class 2 | 239 | — | 239 | 1,128 | — | 1,128 | ||||||||||||||||||
Class 4 | 81 | — | 81 | 424 | — | 424 | ||||||||||||||||||
Total | $ | 1,267 | $ | — | $ | 1,267 | $ | 6,505 | $ | — | $ | 6,505 |
American Funds Insurance Series | 167 |
Ultra-Short Bond Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 120 | $ | — | $ | 120 | $ | 561 | $ | — | $ | 561 | ||||||||||||
Class 1A | — | * | — | — | * | — | — | — | ||||||||||||||||
Class 2 | 794 | — | 794 | 2,762 | — | 2,762 | ||||||||||||||||||
Class 3 | 12 | — | 12 | 41 | — | 41 | ||||||||||||||||||
Class 4 | 74 | — | 74 | 153 | — | 153 | ||||||||||||||||||
Total | $ | 1,000 | $ | — | $ | 1,000 | $ | 3,517 | $ | — | $ | 3,517 |
U.S. Government/AAA-Rated Securities Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class 1 | $ | 5,960 | $ | — | $ | 5,960 | $ | 29,881 | $ | — | $ | 29,881 | ||||||||||||
Class 1A | 8 | — | 8 | 29 | — | 29 | ||||||||||||||||||
Class 2 | 4,960 | — | 4,960 | 24,431 | — | 24,431 | ||||||||||||||||||
Class 3 | 33 | — | 33 | 165 | — | 165 | ||||||||||||||||||
Class 4 | 387 | — | 387 | 1,313 | — | 1,313 | ||||||||||||||||||
Total | $ | 11,348 | $ | — | $ | 11,348 | $ | 55,819 | $ | — | $ | 55,819 |
Managed Risk Growth Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class P1 | $ | 34 | $ | 256 | $ | 290 | $ | 14 | $ | 135 | $ | 149 | ||||||||||||
Class P2 | 2,512 | 26,325 | 28,837 | 1,397 | 20,395 | 21,792 | ||||||||||||||||||
Total | $ | 2,546 | $ | 26,581 | $ | 29,127 | $ | 1,411 | $ | 20,530 | $ | 21,941 |
Managed Risk International Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class P1 | $ | 11 | $ | 16 | $ | 27 | $ | 8 | $ | 1 | $ | 9 | ||||||||||||
Class P2 | 2,974 | 4,795 | 7,769 | 2,681 | 738 | 3,419 | ||||||||||||||||||
Total | $ | 2,985 | $ | 4,811 | $ | 7,796 | $ | 2,689 | $ | 739 | $ | 3,428 |
Managed Risk Blue Chip Income and Growth Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class P1 | $ | 13 | $ | 40 | $ | 53 | $ | 15 | $ | 7 | $ | 22 | ||||||||||||
Class P2 | 5,566 | 17,796 | 23,362 | 11,391 | 12,112 | 23,503 | ||||||||||||||||||
Total | $ | 5,579 | $ | 17,836 | $ | 23,415 | $ | 11,406 | $ | 12,119 | $ | 23,525 |
168 | American Funds Insurance Series |
Managed Risk Growth-Income Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | 5,750 | $ | 14,505 | $ | 20,255 | $ | 42 | $ | 122 | $ | 164 | ||||||||||||
Class P2 | 628 | 2,019 | 2,647 | 2,374 | 9,814 | 12,188 | ||||||||||||||||||
Total | $ | 6,378 | $ | 16,524 | $ | 22,902 | $ | 2,416 | $ | 9,936 | $ | 12,352 |
Managed Risk Asset Allocation Fund
Six months ended June 30, 2019 | Year ended December 31, 2018 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class P1 | $ | — | $ | 65 | $ | 65 | $ | 31,787 | $ | 66,960 | $ | 98,747 | ||||||||||||
Class P2 | 62,628 | 115,051 | 177,679 | 36,816 | 107,405 | 144,221 | ||||||||||||||||||
Total | $ | 62,628 | $ | 115,116 | $ | 177,744 | $ | 68,603 | $ | 174,365 | $ | 242,968 |
* | Amount less than one thousand. |
7. Fees and transactions
CRMC, the series’ investment adviser, is the parent company of American Funds Distributors,® Inc. (“AFD”), the distributor of the series’ shares, and American Funds Service Company® (“AFS”), the series’ transfer agent. CRMC, AFD and AFS are considered related parties to the series.
Investment advisory services— The series has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on annual rates that generally decrease as net asset levels increase. CRMC receives investment advisory fees from the underlying funds held by the managed risk funds. These fees are included in the net effective expense ratios that are provided as additional information in the financial highlights tables. Subadvisory fees for the managed risk funds are paid by CRMC to Milliman FRM. The managed risk funds are not responsible for paying any subadvisory fees.
Investment advisory services waivers— On March 4, 2019, the series board of trustees approved amended agreements effective May 1, 2019, decreasing the annual rate to 0.500% on daily net assets in excess of $1.5 billion for International Growth and Income Fund, and decreasing the annual rate to 0.410% on daily net assets in excess of $1 billion for Capital Income Builder. CRMC voluntarily reduced the investment advisory services fees to the approved rates in advance of the effective date. CRMC is also waiving a portion of its investment advisory services fees for each of the managed risk funds. Investment advisory services fees are presented in each fund’s statement of operations gross of the waivers from CRMC. For the six months ended June 30, 2019, total investment advisory services fees waived by CRMC were $1,408,000.
American Funds Insurance Series | 169 |
The range of rates, net asset levels and the current annualized rates of average daily net assets for each fund before and after any investment advisory services waivers (if applicable), are as follows:
Rates | Net asset level (in billions) | For the six months ended June 30, | For the six months ended June 30, | |||||||||||||||||||||
Fund | Beginning with | Ending with | Up to | In excess of | 2019, before waiver | 2019, after waiver | ||||||||||||||||||
Global Growth Fund | .690 | % | .460 | % | $ | .6 | $ | 5.0 | .518 | % | .518 | % | ||||||||||||
Global Small Capitalization Fund | .800 | .635 | .6 | 5.0 | .697 | .697 | ||||||||||||||||||
Growth Fund | .500 | .280 | .6 | 34.0 | .323 | .323 | ||||||||||||||||||
International Fund | .690 | .430 | .5 | 21.0 | .492 | .492 | ||||||||||||||||||
New World Fund | .850 | .580 | .5 | 4.0 | .703 | .703 | ||||||||||||||||||
Blue Chip Income and Growth Fund | .500 | .350 | .6 | 10.5 | .390 | .390 | ||||||||||||||||||
Global Growth and Income Fund | .690 | .480 | .6 | 3.0 | .597 | .597 | ||||||||||||||||||
Growth-Income Fund | .500 | .219 | .6 | 34.0 | .257 | .257 | ||||||||||||||||||
International Growth and Income Fund | .690 | .500 | .5 | 1.5 | .608 | .608 | ||||||||||||||||||
Capital Income Builder | .500 | .410 | .6 | 1.0 | .495 | .489 | ||||||||||||||||||
Asset Allocation Fund | .500 | .240 | .6 | 21.0 | .267 | .267 | ||||||||||||||||||
Global Balanced Fund | .660 | .510 | .5 | 1.0 | .660 | .660 | ||||||||||||||||||
Bond Fund | .480 | .320 | .6 | 13.0 | .364 | .364 | ||||||||||||||||||
Global Bond Fund | .570 | .450 | 1.0 | 3.0 | .533 | .533 | ||||||||||||||||||
High-Income Bond Fund | .500 | .420 | .6 | 2.0 | .474 | .474 | ||||||||||||||||||
Mortgage Fund | .420 | .290 | .6 | 3.0 | .420 | .420 | ||||||||||||||||||
Ultra-Short Bond Fund | .320 | .270 | 1.0 | 2.0 | .320 | .320 | ||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | .420 | .290 | .6 | 3.0 | .340 | .340 | ||||||||||||||||||
Managed Risk Growth Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk International Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk Growth-Income Fund | .150 | all | .150 | .100 | ||||||||||||||||||||
Managed Risk Asset Allocation Fund | .150 | all | .150 | .100 |
Distribution services— The series has plans of distribution for all share classes except Class 1. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares. The plans provide for payments to pay service fees to firms that have entered into agreements with the series. These payments, based on an annualized percentage of average daily net assets, range from 0.18% to 0.50% as noted in the table below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.
Share class | Currently approved limits | Plan limits | ||||||
Class 1A | 0.00 | % | 0.25 | % | ||||
Class 2 | 0.25 | 0.25 | ||||||
Class 3 | 0.18 | 0.18 | ||||||
Class 4 | 0.25 | 0.25 | ||||||
Class P1 | 0.00 | 0.25 | ||||||
Class P2 | 0.25 | 0.50 |
Insurance administrative services— The series has an insurance administrative services plan for Class 1A, 4, P1 and P2 shares. Under the plan, these share classes pay 0.25% of each insurance company’s respective average daily net assets in each share class to compensate the insurance companies for services provided to their separate accounts and contractholders for which the shares of the fund are beneficially owned as underlying investments of such contractholders’ annuities. These services include, but are not limited to, maintenance, shareholder communications and transactional services. The insurance companies are not related parties to the series.
Transfer agent services— The series has a shareholder services agreement with AFS under which the funds compensate AFS for providing transfer agent services to all of the funds’ share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the managed risk funds reimburse AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
170 | American Funds Insurance Series |
Administrative services— The series has an administrative services agreement with CRMC under which each fund compensates CRMC for providing administrative services to all of the funds’ share classes except Class P1 and P2 shares. Administrative services are provided by CRMC and its affiliates to help assist third parties providing non-distribution services to fund shareholders. These services include providing in depth information on each fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement provides each fund, other than the managed risk funds, the ability to charge an administrative services fee at the annual rate of 0.05% of daily net assets attributable to each share class. Prior to July 1, 2019, all share classes of each fund, other than the managed-risk funds, paid CRMC an administrative services fee at the annual rate of 0.01% of daily net assets. The series board of trustees authorized the funds, other than the managed risk funds, to pay CRMC effective July 1, 2019, an administrative services fee at the annual rate of 0.03% of the daily net assets of each share class (which could be increased as noted above) for CRMC’s provision of administrative services. For the managed risk funds, CRMC receives administrative services fees at an annual rate of 0.03% of daily net assets from Class 1 shares of the underlying funds for administrative services provided to the series.
Accounting and administrative services— The managed risk funds have a subadministration agreement with BNY Mellon under which the fund compensates BNY Mellon for providing accounting and administrative services to each of the managed risk funds’ share classes. These services include, but are not limited to, fund accounting (including calculation of net asset value), financial reporting and tax services. BNY Mellon is not a related party to the managed risk funds.
Class-specific expenses under the agreements described above were as follows (dollars in thousands):
Global Growth Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 107 | ||||||||
Class 1A | $ | — | $ | 8 | — | * | ||||||
Class 2 | 4,518 | Not applicable | 181 | |||||||||
Class 4 | 363 | 363 | 15 | |||||||||
Total class-specific expenses | $ | 4,881 | $ | 371 | $ | 303 | ||||||
Global Small Capitalization Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 88 | ||||||||
Class 1A | $ | — | $ | —* | — | * | ||||||
Class 2 | 2,796 | Not applicable | 112 | |||||||||
Class 4 | 208 | 208 | 8 | |||||||||
Total class-specific expenses | $ | 3,004 | $ | 208 | $ | 208 | ||||||
Growth Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 469 | ||||||||
Class 1A | $ | — | $ | 15 | 1 | |||||||
Class 2 | 18,471 | Not applicable | 739 | |||||||||
Class 3 | 183 | Not applicable | 10 | |||||||||
Class 4 | 1,528 | 1,528 | 61 | |||||||||
Total class-specific expenses | $ | 20,182 | $ | 1,543 | $ | 1,280 | ||||||
International Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 255 | ||||||||
Class 1A | $ | — | $ | 7 | — | * | ||||||
Class 2 | 5,132 | Not applicable | 206 | |||||||||
Class 3 | 23 | Not applicable | 1 | |||||||||
Class 4 | 406 | 406 | 16 | |||||||||
Total class-specific expenses | $ | 5,561 | $ | 413 | $ | 478 | ||||||
New World Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 93 | ||||||||
Class 1A | $ | — | $ | 4 | — | * | ||||||
Class 2 | 1,130 | Not applicable | 45 | |||||||||
Class 4 | 655 | 654 | 26 | |||||||||
Total class-specific expenses | $ | 1,785 | $ | 658 | $ | 164 | ||||||
Blue Chip Income and Growth Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 258 | ||||||||
Class 1A | $ | — | $ | 6 | — | * | ||||||
Class 2 | 3,745 | Not applicable | 150 | |||||||||
Class 4 | 550 | 550 | 22 | |||||||||
Total class-specific expenses | $ | 4,295 | $ | 556 | $ | 430 |
See end of tables for footnote.
American Funds Insurance Series | 171 |
Global Growth and Income Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 27 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 1,641 | Not applicable | 66 | |||||||||
Class 4 | 136 | 136 | 5 | |||||||||
Total class-specific expenses | $ | 1,777 | $ | 137 | $ | 98 | ||||||
Growth-Income Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 925 | ||||||||
Class 1A | $ | — | $ | 10 | — | * | ||||||
Class 2 | 16,092 | Not applicable | 644 | |||||||||
Class 3 | 136 | Not applicable | 7 | |||||||||
Class 4 | 1,264 | 1,264 | 51 | |||||||||
Total class-specific expenses | $ | 17,492 | $ | 1,274 | $ | 1,627 | ||||||
International Growth and Income Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 54 | ||||||||
Class 1A | $ | — | $ | 2 | — | * | ||||||
Class 2 | 303 | Not applicable | 12 | |||||||||
Class 4 | 100 | 100 | 4 | |||||||||
Total class-specific expenses | $ | 403 | $ | 102 | $ | 70 | ||||||
Capital Income Builder | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 19 | ||||||||
Class 1A | $ | — | $ | 4 | — | * | ||||||
Class 2 | 5 | Not applicable | — | * | ||||||||
Class 4 | 479 | 479 | 19 | |||||||||
Total class-specific expenses | $ | 484 | $ | 483 | $ | 38 | ||||||
Asset Allocation Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 783 | ||||||||
Class 1A | $ | — | $ | 10 | — | * | ||||||
Class 2 | 6,111 | Not applicable | 244 | |||||||||
Class 3 | 28 | Not applicable | 2 | |||||||||
Class 4 | 4,835 | 4,835 | 193 | |||||||||
Total class-specific expenses | $ | 10,974 | $ | 4,845 | $ | 1,222 | ||||||
Global Balanced Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 6 | ||||||||
Class 1A | $ | — | $ | 3 | — | * | ||||||
Class 2 | 242 | Not applicable | 10 | |||||||||
Class 4 | 95 | 95 | 4 | |||||||||
Total class-specific expenses | $ | 337 | $ | 98 | $ | 20 | ||||||
Bond Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 303 | ||||||||
Class 1A | $ | — | $ | 5 | — | * | ||||||
Class 2 | 4,381 | Not applicable | 175 | |||||||||
Class 4 | 486 | 486 | 19 | |||||||||
Total class-specific expenses | $ | 4,867 | $ | 491 | $ | 497 | ||||||
Global Bond Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 52 | ||||||||
Class 1A | $ | — | $ —* | — | * | |||||||
Class 2 | 1,273 | Not applicable | 51 | |||||||||
Class 4 | 53 | 53 | 2 | |||||||||
Total class-specific expenses | $ | 1,326 | $ | 53 | $ | 105 |
172 | American Funds Insurance Series |
High-Income Bond Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 26 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 854 | Not applicable | 34 | |||||||||
Class 3 | 9 | Not applicable | — | * | ||||||||
Class 4 | 69 | 69 | 3 | |||||||||
Total class-specific expenses | $ | 932 | $ | 70 | $ | 63 | ||||||
Mortgage Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 11 | ||||||||
Class 1A | $ | — | $ | 1 | — | * | ||||||
Class 2 | 71 | Not applicable | 3 | |||||||||
Class 4 | 27 | 27 | 1 | |||||||||
Total class-specific expenses | $ | 98 | $ | 28 | $ | 15 | ||||||
Ultra-Short Bond Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 2 | ||||||||
Class 1A | $ | — | $ | — | — | * | ||||||
Class 2 | 289 | Not applicable | 11 | |||||||||
Class 3 | 3 | Not applicable | — | * | ||||||||
Class 4 | 25 | 24 | 1 | |||||||||
Total class-specific expenses | $ | 317 | $ | 24 | $ | 14 | ||||||
U.S. Government/AAA-Rated Securities Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | Administrative services | |||||||||
Class 1 | Not applicable | Not applicable | $ | 72 | ||||||||
Class 1A | $ | — | $ | 2 | — | * | ||||||
Class 2 | 1,628 | Not applicable | 65 | |||||||||
Class 3 | 8 | Not applicable | — | * | ||||||||
Class 4 | 121 | 121 | 5 | |||||||||
Total class-specific expenses | $ | 1,757 | $ | 123 | $ | 142 | ||||||
Managed Risk Growth Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | ||||||||||
Class P1 | Not applicable | $ | 4 | |||||||||
Class P2 | $ | 461 | 461 | |||||||||
Total class-specific expenses | $ | 461 | $ | 465 | ||||||||
Managed Risk International Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | ||||||||||
Class P1 | Not applicable | $ | 1 | |||||||||
Class P2 | $ | 196 | 196 | |||||||||
Total class-specific expenses | $ | 196 | $ | 197 | ||||||||
Managed Risk Blue Chip | ||||||||||||
Income and Growth Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | ||||||||||
Class P1 | Not applicable | $ | 1 | |||||||||
Class P2 | $ | 433 | 433 | |||||||||
Total class-specific expenses | $ | 433 | $ | 434 | ||||||||
Managed Risk Growth-Income Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | ||||||||||
Class P1 | Not applicable | $ | 2,222 | |||||||||
Class P2 | $ | 310 | 310 | |||||||||
Total class-specific expenses | $ | 310 | $ | 2,532 | ||||||||
Managed Risk Asset Allocation Fund | ||||||||||||
Share class | Distribution services | Insurance administrative services | ||||||||||
Class P1 | Not applicable | $ | 2 | |||||||||
Class P2 | $ | 3,293 | 3,293 | |||||||||
Total class-specific expenses | $ | 3,293 | $ | 3,295 |
* | Amount less than one thousand. |
American Funds Insurance Series | 173 |
Trustees’ deferred compensation— Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the funds, are treated as if invested in one or more of the American Funds. These amounts represent general, unsecured liabilities of the funds and vary according to the total returns of the selected funds. Trustees’ compensation, shown on the accompanying financial statements, reflects current fees (either paid in cash or deferred) and a net increase in the value of the deferred amounts as follows (dollars in thousands):
Fund | Current fees | Increase in value of deferred amounts | Total trustees’ compensation | |||||||||
Global Growth Fund | $ | 18 | $ | 2 | $ | 20 | ||||||
Global Small Capitalization Fund | 12 | 1 | 13 | |||||||||
Growth Fund | 78 | 8 | 86 | |||||||||
International Fund | 29 | 3 | 32 | |||||||||
New World Fund | 10 | 1 | 11 | |||||||||
Blue Chip Income and Growth Fund | 27 | 3 | 30 | |||||||||
Global Growth and Income Fund | 6 | 1 | 7 | |||||||||
Growth-Income Fund | 97 | 10 | 107 | |||||||||
International Growth and Income Fund | 4 | — | * | 4 | ||||||||
Capital Income Builder | 2 | — | * | 2 | ||||||||
Asset Allocation Fund | 76 | 8 | 84 | |||||||||
Global Balanced Fund | 1 | — | * | 1 | ||||||||
Bond Fund | 30 | 3 | 33 | |||||||||
Global Bond Fund | 6 | 1 | 7 | |||||||||
High-Income Bond Fund | 4 | — | * | 4 | ||||||||
Mortgage Fund | 1 | — | * | 1 | ||||||||
Ultra-Short Bond Fund | 1 | — | * | 1 | ||||||||
U.S. Government/AAA-Rated Securities Fund | 9 | 1 | 10 | |||||||||
Managed Risk Growth Fund | 1 | — | * | 1 | ||||||||
Managed Risk International Fund | 1 | — | * | 1 | ||||||||
Managed Risk Blue Chip Income and Growth Fund | 1 | — | * | 1 | ||||||||
Managed Risk Growth-Income Fund | 3 | 1 | 4 | |||||||||
Managed Risk Asset Allocation Fund | 10 | 1 | 11 |
* | Amount less than one thousand. |
Affiliated officers and trustees— Officers and certain trustees of the series are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from any fund in the series.
Investment in CCF— Some of the funds, other than the managed risk funds, hold shares of CCF, an institutional prime money market fund managed by CRMC. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for each fund’s short-term investments. CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC. CCF shares are not available to the public. CRMC does not receive an investment advisory services fee from CCF.
174 | American Funds Insurance Series |
Security transactions with related funds— The funds may purchase from, or sell securities to, other CRMC-managed funds (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.
The following table presents purchase and sale transactions between each fund and related funds as of June 30, 2019 (dollars in thousands):
Fund | Purchases | Sales | Net realized gain (loss) | |||||||||
Global Growth Fund | $ | 7,883 | $ | 67,282 | $ | 1,305 | ||||||
Global Small Capitalization Fund | 24,617 | 85,577 | 20,393 | |||||||||
Growth Fund | 220,254 | 795,160 | 13,734 | |||||||||
International Fund | 50,926 | 298,682 | 4,681 | |||||||||
New World Fund | 9,165 | 12,080 | 579 | |||||||||
Blue Chip Income and Growth Fund | 76,977 | 96,198 | 8,051 | |||||||||
Global Growth and Income Fund | 3,383 | 16,225 | (439 | ) | ||||||||
Growth-Income Fund | 55,754 | 674,112 | (10,747 | ) | ||||||||
International Growth and Income Fund | 2,512 | 1,617 | (798 | ) | ||||||||
Capital Income Builder | 10,104 | 256 | 34 | |||||||||
Asset Allocation Fund | 329,929 | 911,206 | (35,534 | ) | ||||||||
Global Balanced Fund | 1,871 | 906 | (25 | ) | ||||||||
Bond Fund | 49,355 | 76,160 | (1,416 | ) | ||||||||
Global Bond Fund | 3,388 | 388 | (8 | ) | ||||||||
High-Income Bond Fund | 1,725 | 5,591 | (1,880 | ) | ||||||||
Mortgage Fund | — | — | — | |||||||||
Ultra-Short Bond Fund | — | — | — | |||||||||
U.S. Government/AAA-Rated Securities Fund | — | — | — | |||||||||
Managed Risk Growth Fund | — | — | — | |||||||||
Managed Risk International Fund | — | — | — | |||||||||
Managed Risk Blue Chip Income and Growth Fund | — | — | — | |||||||||
Managed Risk Growth-Income Fund | — | — | — | |||||||||
Managed Risk Asset Allocation Fund | — | — | — |
8. Committed line of credit
Global Small Capitalization Fund, New World Fund and High-Income Bond Fund participate with other funds managed by CRMC in a $1.5 billion credit facility (the “line of credit”) to be utilized for temporary purposes to fund shareholder redemptions. Each fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which are reflected in other expenses in each fund’s statement of operations. None of the funds borrowed on this line of credit at any time during the six months ended June 30, 2019.
American Funds Insurance Series | 175 |
9. Capital share transactions
Capital share transactions in the funds were as follows (dollars and shares in thousands):
Global Growth Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 108,551 | 3,748 | $ | 124,888 | 4,320 | $ | (207,637 | ) | (7,097 | ) | $ | 25,802 | 971 | ||||||||||||||||||
Class 1A | 1,280 | 46 | 376 | 13 | (294 | ) | (10 | ) | 1,362 | 49 | ||||||||||||||||||||||
Class 2 | 20,541 | 744 | 209,188 | 7,314 | (273,633 | ) | (9,417 | ) | (43,904 | ) | (1,359 | ) | ||||||||||||||||||||
Class 4 | 33,356 | 1,162 | 17,719 | 623 | (13,773 | ) | (480 | ) | 37,302 | 1,305 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 163,728 | 5,700 | $ | 352,171 | 12,270 | $ | (495,337 | ) | (17,004 | ) | $ | 20,562 | 966 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 318,393 | 10,738 | $ | 163,496 | 5,459 | $ | (199,573 | ) | (6,616 | ) | $ | 282,316 | 9,581 | ||||||||||||||||||
Class 1A | 4,760 | 162 | 320 | 11 | (1,942 | ) | (64 | ) | 3,138 | 109 | ||||||||||||||||||||||
Class 2 | 71,745 | 2,511 | 292,561 | 9,830 | (465,838 | ) | (15,407 | ) | (101,532 | ) | (3,066 | ) | ||||||||||||||||||||
Class 4 | 94,068 | 3,163 | 18,437 | 622 | (28,678 | ) | (983 | ) | 83,827 | 2,802 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 488,966 | 16,574 | $ | 474,814 | 15,922 | $ | (696,031 | ) | (23,070 | ) | $ | 267,749 | 9,426 |
Global Small Capitalization Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 309,318 | 12,473 | $ | 119,443 | 4,983 | $ | (115,627 | ) | (4,698 | ) | $ | 313,134 | 12,758 | ||||||||||||||||||
Class 1A | 38 | 2 | 27 | 1 | (12 | ) | (1 | ) | 53 | 2 | ||||||||||||||||||||||
Class 2 | 11,519 | 499 | �� | 145,097 | 6,238 | (171,598 | ) | (7,148 | ) | (14,982 | ) | (411 | ) | |||||||||||||||||||
Class 4 | 16,844 | 701 | 11,115 | 475 | (12,502 | ) | (521 | ) | 15,457 | 655 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 337,719 | 13,675 | $ | 275,682 | 11,697 | $ | (299,739 | ) | (12,368 | ) | $ | 313,662 | 13,004 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 138,128 | 5,551 | $ | 76,990 | 2,920 | $ | (160,148 | ) | (6,253 | ) | $ | 54,970 | 2,218 | ||||||||||||||||||
Class 1A | 318 | 12 | 16 | 1 | (110 | ) | (5 | ) | 224 | 8 | ||||||||||||||||||||||
Class 2 | 47,093 | 2,015 | 112,331 | 4,349 | (309,646 | ) | (12,397 | ) | (150,222 | ) | (6,033 | ) | ||||||||||||||||||||
Class 4 | 56,525 | 2,282 | 6,491 | 249 | (17,067 | ) | (693 | ) | 45,949 | 1,838 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 242,064 | 9,860 | $ | 195,828 | 7,519 | $ | (486,971 | ) | (19,348 | ) | $ | (49,079 | ) | (1,969 | ) |
176 | American Funds Insurance Series |
Growth Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 540,098 | 7,033 | $ | 1,038,061 | 14,580 | $ | (583,337 | ) | (7,514 | ) | $ | 994,822 | 14,099 | ||||||||||||||||||
Class 1A | 3,591 | 48 | 1,387 | 20 | (964 | ) | (12 | ) | 4,014 | 56 | ||||||||||||||||||||||
Class 2 | 149,693 | 1,955 | 1,612,170 | 22,839 | (1,010,347 | ) | (13,114 | ) | 751,516 | 11,680 | ||||||||||||||||||||||
Class 3 | 1,763 | 22 | 21,990 | 307 | (10,838 | ) | (140 | ) | 12,915 | 189 | ||||||||||||||||||||||
Class 4 | 120,007 | 1,586 | 140,298 | 2,016 | (64,702 | ) | (855 | ) | 195,603 | 2,747 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 815,152 | 10,644 | $ | 2,813,906 | 39,762 | $ | (1,670,188 | ) | (21,635 | ) | $ | 1,958,870 | 28,771 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,574,676 | 19,928 | $ | 879,237 | 11,221 | $ | (1,126,624 | ) | (14,082 | ) | $ | 1,327,289 | 17,067 | ||||||||||||||||||
Class 1A | 8,204 | 103 | 710 | 9 | (563 | ) | (7 | ) | 8,351 | 105 | ||||||||||||||||||||||
Class 2 | 292,909 | 3,756 | 1,633,088 | 20,970 | (2,436,432 | ) | (30,703 | ) | (510,435 | ) | (5,977 | ) | ||||||||||||||||||||
Class 3 | 1,809 | 22 | 21,971 | 279 | (27,844 | ) | (348 | ) | (4,064 | ) | (47 | ) | ||||||||||||||||||||
Class 4 | 274,892 | 3,534 | 110,941 | 1,441 | (135,865 | ) | (1,758 | ) | 249,968 | 3,217 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 2,152,490 | 27,343 | $ | 2,645,947 | 33,920 | $ | (3,727,328 | ) | (46,898 | ) | $ | 1,071,109 | 14,365 |
International Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 97,689 | 5,045 | $ | 138,907 | 7,194 | $ | (366,030 | ) | (18,775 | ) | $ | (129,434 | ) | (6,536 | ) | ||||||||||||||||
Class 1A | 555 | 29 | 149 | 8 | (507 | ) | (26 | ) | 197 | 11 | ||||||||||||||||||||||
Class 2 | 83,933 | 4,385 | 110,421 | 5,745 | (324,109 | ) | (16,707 | ) | (129,755 | ) | (6,577 | ) | ||||||||||||||||||||
Class 3 | 210 | 11 | 674 | 35 | (1,745 | ) | (91 | ) | (861 | ) | (45 | ) | ||||||||||||||||||||
Class 4 | 36,221 | 1,881 | 9,238 | 486 | (22,756 | ) | (1,188 | ) | 22,703 | 1,179 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 218,608 | 11,351 | $ | 259,389 | 13,468 | $ | (715,147 | ) | (36,787 | ) | $ | (237,150 | ) | (11,968 | ) | ||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 987,191 | 47,885 | $ | 339,738 | 16,682 | $ | (479,241 | ) | (23,102 | ) | $ | 847,688 | 41,465 | ||||||||||||||||||
Class 1A | 4,302 | 204 | 296 | 14 | (269 | ) | (14 | ) | 4,329 | 204 | ||||||||||||||||||||||
Class 2 | 481,518 | 22,952 | 283,963 | 13,909 | (441,465 | ) | (21,109 | ) | 324,016 | 15,752 | ||||||||||||||||||||||
Class 3 | 506 | 23 | 1,857 | 91 | (4,389 | ) | (209 | ) | (2,026 | ) | (95 | ) | ||||||||||||||||||||
Class 4 | 96,985 | 4,701 | 20,021 | 990 | (45,627 | ) | (2,234 | ) | 71,379 | 3,457 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,570,502 | 75,765 | $ | 645,875 | 31,686 | $ | (970,991 | ) | (46,668 | ) | $ | 1,245,386 | 60,783 |
See end of tables for footnotes.
American Funds Insurance Series | 177 |
New World Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 23,580 | 1,000 | $ | 75,373 | 3,213 | $ | (108,834 | ) | (4,641 | ) | $ | (9,881 | ) | (428 | ) | ||||||||||||||||
Class 1A | 888 | 37 | 139 | 6 | (69 | ) | (3 | ) | 958 | 40 | ||||||||||||||||||||||
Class 2 | 39,295 | 1,692 | 36,575 | 1,575 | (90,286 | ) | (3,885 | ) | (14,416 | ) | (618 | ) | ||||||||||||||||||||
Class 4 | 38,657 | 1,682 | 21,910 | 948 | (21,734 | ) | (929 | ) | 38,833 | 1,701 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 102,420 | 4,411 | $ | 133,997 | 5,742 | $ | (220,923 | ) | (9,458 | ) | $ | 15,494 | 695 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 169,684 | 6,947 | $ | 75,282 | 3,139 | $ | (240,756 | ) | (10,008 | ) | $ | 4,210 | 78 | ||||||||||||||||||
Class 1A | 2,616 | 108 | 73 | 3 | (572 | ) | (24 | ) | 2,117 | 87 | ||||||||||||||||||||||
Class 2 | 70,536 | 2,954 | 34,787 | 1,456 | (144,167 | ) | (5,934 | ) | (38,844 | ) | (1,524 | ) | ||||||||||||||||||||
Class 4 | 140,212 | 5,922 | 16,079 | 674 | (31,201 | ) | (1,315 | ) | 125,090 | 5,281 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 383,048 | 15,931 | $ | 126,221 | 5,272 | $ | (416,696 | ) | (17,281 | ) | $ | 92,573 | 3,922 |
Blue Chip Income and Growth Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 183,590 | 14,362 | $ | 430,113 | 34,686 | $ | (208,426 | ) | (15,743 | ) | $ | 405,277 | 33,305 | ||||||||||||||||||
Class 1A | 3,501 | 272 | 458 | 37 | (99 | ) | (7 | ) | 3,860 | 302 | ||||||||||||||||||||||
Class 2 | 17,870 | 1,377 | 250,794 | 20,507 | (166,322 | ) | (12,576 | ) | 102,342 | 9,308 | ||||||||||||||||||||||
Class 4 | 107,033 | 8,191 | 40,543 | 3,331 | (18,093 | ) | (1,380 | ) | 129,483 | 10,142 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 311,994 | 24,202 | $ | 721,908 | 58,561 | $ | (392,940 | ) | (29,706 | ) | $ | 640,962 | 53,057 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 189,059 | 13,527 | $ | 528,528 | 38,135 | $ | (524,399 | ) | (36,270 | ) | $ | 193,188 | 15,392 | ||||||||||||||||||
Class 1A | 2,957 | 203 | 254 | 19 | (106 | ) | (8 | ) | 3,105 | 214 | ||||||||||||||||||||||
Class 2 | 34,615 | 2,528 | 320,676 | 23,381 | (472,476 | ) | (32,985 | ) | (117,185 | ) | (7,076 | ) | ||||||||||||||||||||
Class 4 | 190,787 | 13,641 | 29,968 | 2,200 | (33,879 | ) | (2,399 | ) | 186,876 | 13,442 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 417,418 | 29,899 | $ | 879,426 | 63,735 | $ | (1,030,860 | ) | (71,662 | ) | $ | 265,984 | 21,972 |
Global Growth and Income Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 21,374 | 1,478 | $ | 28,719 | 1,986 | $ | (34,209 | ) | (2,387 | ) | $ | 15,884 | 1,077 | ||||||||||||||||||
Class 1A | 600 | 41 | 71 | 5 | (137 | ) | (10 | ) | 534 | 36 | ||||||||||||||||||||||
Class 2 | 8,919 | 637 | 71,071 | 4,929 | (111,409 | ) | (7,690 | ) | (31,419 | ) | (2,124 | ) | ||||||||||||||||||||
Class 4 | 16,631 | 1,171 | 6,320 | 445 | (8,309 | ) | (584 | ) | 14,642 | 1,032 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 47,524 | 3,327 | $ | 106,181 | 7,365 | $ | (154,064 | ) | (10,671 | ) | $ | (359 | ) | 21 | |||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 105,981 | 7,092 | $ | 45,562 | 3,107 | $ | (46,619 | ) | (3,060 | ) | $ | 104,924 | 7,139 | ||||||||||||||||||
Class 1A | 951 | 60 | 81 | 6 | (40 | ) | (2 | ) | 992 | 64 | ||||||||||||||||||||||
Class 2 | 27,421 | 1,842 | 130,608 | 8,898 | (208,022 | ) | (13,672 | ) | (49,993 | ) | (2,932 | ) | ||||||||||||||||||||
Class 4 | 42,459 | 2,827 | 8,471 | 586 | (16,633 | ) | (1,102 | ) | 34,297 | 2,311 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 176,812 | 11,821 | $ | 184,722 | 12,597 | $ | (271,314 | ) | (17,836 | ) | $ | 90,220 | 6,582 |
178 | American Funds Insurance Series |
Growth-Income Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 633,030 | 12,851 | $ | 1,969,359 | 42,452 | $ | (641,776 | ) | (12,839 | ) | $ | 1,960,613 | 42,464 | ||||||||||||||||||
Class 1A | 1,711 | 35 | 889 | 19 | (447 | ) | (9 | ) | 2,153 | 45 | ||||||||||||||||||||||
Class 2 | 86,183 | 1,759 | 1,356,902 | 29,633 | (794,998 | ) | (16,125 | ) | 648,087 | 15,267 | ||||||||||||||||||||||
Class 3 | 1,507 | 30 | 15,628 | 336 | (10,814 | ) | (216 | ) | 6,321 | 150 | ||||||||||||||||||||||
Class 4 | 95,084 | 1,957 | 111,554 | 2,465 | (50,813 | ) | (1,047 | ) | 155,825 | 3,375 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 817,515 | 16,632 | $ | 3,454,332 | 74,905 | $ | (1,498,848 | ) | (30,236 | ) | $ | 2,772,999 | 61,301 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 2,594,038 | 53,950 | $ | 1,388,000 | 27,742 | $ | (1,325,537 | ) | (25,872 | ) | $ | 2,656,501 | 55,820 | ||||||||||||||||||
Class 1A | 5,817 | 114 | 467 | 10 | (933 | ) | (18 | ) | 5,351 | 106 | ||||||||||||||||||||||
Class 2 | 128,833 | 2,587 | 1,128,412 | 22,770 | (1,901,203 | ) | (37,514 | ) | (643,958 | ) | (12,157 | ) | ||||||||||||||||||||
Class 3 | 1,014 | 20 | 13,244 | 264 | (26,871 | ) | (525 | ) | (12,613 | ) | (241 | ) | ||||||||||||||||||||
Class 4 | 193,427 | 3,881 | 73,971 | 1,507 | (97,541 | ) | (1,958 | ) | 169,857 | 3,430 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 2,923,129 | 60,552 | $ | 2,604,094 | 52,293 | $ | (3,352,085 | ) | (65,887 | ) | $ | 2,175,138 | 46,958 |
International Growth and Income Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 4,476 | 265 | $ | 16,278 | 957 | $ | (92,645 | ) | (5,477 | ) | $ | (71,891 | ) | (4,255 | ) | ||||||||||||||||
Class 1A | 260 | 16 | 33 | 2 | (15 | ) | (1 | ) | 278 | 17 | ||||||||||||||||||||||
Class 2 | 3,892 | 232 | 3,580 | 211 | (18,788 | ) | (1,123 | ) | (11,316 | ) | (680 | ) | ||||||||||||||||||||
Class 4 | 10,052 | 602 | 1,240 | 74 | (4,343 | ) | (260 | ) | 6,949 | 416 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 18,680 | 1,115 | $ | 21,131 | 1,244 | $ | (115,791 | ) | (6,861 | ) | $ | (75,980 | ) | (4,502 | ) | ||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 102,396 | 5,829 | $ | 28,476 | 1,796 | $ | (62,238 | ) | (3,472 | ) | $ | 68,634 | 4,153 | ||||||||||||||||||
Class 1A | 276 | 16 | 44 | 3 | (453 | ) | (27 | ) | (133 | ) | (8 | ) | ||||||||||||||||||||
Class 2 | 13,046 | 753 | 5,865 | 371 | (28,666 | ) | (1,702 | ) | (9,755 | ) | (578 | ) | ||||||||||||||||||||
Class 4 | 29,607 | 1,717 | 1,597 | 101 | (12,831 | ) | (752 | ) | 18,373 | 1,066 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 145,325 | 8,315 | $ | 35,982 | 2,271 | $ | (104,188 | ) | (5,953 | ) | $ | 77,119 | 4,633 |
See end of tables for footnotes.
American Funds Insurance Series | 179 |
Capital Income Builder
Reinvestments of | ||||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 74,292 | 7,467 | $ | 6,127 | 611 | $ | (4,297 | ) | (435 | ) | $ | 76,122 | 7,643 | ||||||||||||||||||
Class 1A | 1,823 | 181 | 49 | 5 | (92 | ) | (10 | ) | 1,780 | 176 | ||||||||||||||||||||||
Class 2 | 780 | 79 | 64 | 6 | (295 | ) | (29 | ) | 549 | 56 | ||||||||||||||||||||||
Class 4 | 34,077 | 3,425 | 5,320 | 532 | (12,089 | ) | (1,218 | ) | 27,308 | 2,739 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 110,972 | 11,152 | $ | 11,560 | 1,154 | $ | (16,773 | ) | (1,692 | ) | $ | 105,759 | 10,614 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 96,466 | 9,624 | $ | 10,037 | 1,010 | $ | (12,240 | ) | (1,241 | ) | $ | 94,263 | 9,393 | ||||||||||||||||||
Class 1A | 2,709 | 270 | 70 | 7 | (761 | ) | (77 | ) | 2,018 | 200 | ||||||||||||||||||||||
Class 2 | 2,658 | 264 | 96 | 10 | (180 | ) | (18 | ) | 2,574 | 256 | ||||||||||||||||||||||
Class 4 | 66,457 | 6,627 | 10,312 | 1,037 | (25,636 | ) | (2,556 | ) | 51,133 | 5,108 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 168,290 | 16,785 | $ | 20,515 | 2,064 | $ | (38,817 | ) | (3,892 | ) | $ | 149,988 | 14,957 |
Asset Allocation Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 557,920 | 24,399 | $ | 890,794 | 40,090 | $ | (586,283 | ) | (25,759 | ) | $ | 862,431 | 38,730 | ||||||||||||||||||
Class 1A | 1,370 | 61 | 451 | 20 | (397 | ) | (17 | ) | 1,424 | 64 | ||||||||||||||||||||||
Class 2 | 64,314 | 2,832 | 273,998 | 12,472 | (291,521 | ) | (12,855 | ) | 46,791 | 2,449 | ||||||||||||||||||||||
Class 3 | 401 | 18 | 1,715 | 77 | (2,103 | ) | (92 | ) | 13 | 3 | ||||||||||||||||||||||
Class 4 | 164,555 | 7,306 | 221,738 | 10,143 | (114,065 | ) | (5,098 | ) | 272,228 | 12,351 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 788,560 | 34,616 | $ | 1,388,696 | 62,802 | $ | (994,369 | ) | (43,821 | ) | $ | 1,182,887 | 53,597 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 1,402,434 | 60,588 | $ | 1,053,838 | 46,034 | $ | (2,607,246 | ) | (117,896 | ) | $ | (150,974 | ) | (11,274 | ) | ||||||||||||||||
Class 1A | 3,797 | 162 | 411 | 18 | (678 | ) | (30 | ) | 3,530 | 150 | ||||||||||||||||||||||
Class 2 | 89,621 | 3,865 | 313,464 | 13,808 | (682,422 | ) | (29,567 | ) | (279,337 | ) | (11,894 | ) | ||||||||||||||||||||
Class 3 | 897 | 38 | 2,098 | 91 | (7,614 | ) | (325 | ) | (4,619 | ) | (196 | ) | ||||||||||||||||||||
Class 4 | 380,567 | 16,509 | 217,964 | 9,642 | (180,958 | ) | (7,998 | ) | 417,573 | 18,153 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,877,316 | 81,162 | $ | 1,587,775 | 69,593 | $ | (3,478,918 | ) | (155,816 | ) | $ | (13,827 | ) | (5,061 | ) |
Global Balanced Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 4,751 | 381 | $ | 273 | 21 | $ | (424 | ) | (34 | ) | $ | 4,600 | 368 | ||||||||||||||||||
Class 1A | 95 | 8 | 5 | — | † | (130 | ) | (10 | ) | (30 | ) | (2 | ) | |||||||||||||||||||
Class 2 | 3,628 | 288 | 429 | 33 | (10,731 | ) | (856 | ) | (6,674 | ) | (535 | ) | ||||||||||||||||||||
Class 4 | 7,758 | 622 | 176 | 14 | (2,995 | ) | (242 | ) | 4,939 | 394 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 16,232 | 1,299 | $ | 883 | 68 | $ | (14,280 | ) | (1,142 | ) | $ | 2,835 | 225 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 24,581 | 1,901 | $ | 3,154 | 265 | $ | (847 | ) | (66 | ) | $ | 26,888 | 2,100 | ||||||||||||||||||
Class 1A | 2,209 | 171 | 56 | 5 | (292 | ) | (24 | ) | 1,973 | 152 | ||||||||||||||||||||||
Class 2 | 11,812 | 914 | 4,844 | 408 | (24,153 | ) | (1,905 | ) | (7,497 | ) | (583 | ) | ||||||||||||||||||||
Class 4 | 35,652 | 2,821 | 1,646 | 140 | (12,396 | ) | (987 | ) | 24,902 | 1,974 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 74,254 | 5,807 | $ | 9,700 | 818 | $ | (37,688 | ) | (2,982 | ) | $ | 46,266 | 3,643 |
180 | American Funds Insurance Series |
Bond Fund
Reinvestments of | Net increase | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 368,375 | 34,232 | $ | 35,509 | 3,231 | $ | (334,983 | ) | (31,328 | ) | $ | 68,901 | 6,135 | ||||||||||||||||||
Class 1A | 1,605 | 149 | 25 | 2 | (256 | ) | (24 | ) | 1,374 | 127 | ||||||||||||||||||||||
Class 2 | 71,151 | 6,668 | 19,047 | 1,757 | (220,769 | ) | (20,823 | ) | (130,571 | ) | (12,398 | ) | ||||||||||||||||||||
Class 4 | 67,878 | 6,379 | 2,132 | 197 | (23,917 | ) | (2,268 | ) | 46,093 | 4,308 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 509,009 | 47,428 | $ | 56,713 | 5,187 | $ | (579,925 | ) | (54,443 | ) | $ | (14,203 | ) | (1,828 | ) | ||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 856,250 | 80,879 | $ | 164,110 | 15,776 | $ | (1,296,873 | ) | (122,086 | ) | $ | (276,513 | ) | (25,431 | ) | ||||||||||||||||
Class 1A | 2,864 | 271 | 80 | 8 | (674 | ) | (64 | ) | 2,270 | 215 | ||||||||||||||||||||||
Class 2 | 107,831 | 10,281 | 93,483 | 9,101 | (518,189 | ) | (49,721 | ) | (316,875 | ) | (30,339 | ) | ||||||||||||||||||||
Class 4 | 118,851 | 11,386 | 8,606 | 839 | (47,758 | ) | (4,587 | ) | 79,699 | 7,638 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,085,796 | 102,817 | $ | 266,279 | 25,724 | $ | (1,863,494 | ) | (176,458 | ) | $ | (511,419 | ) | (47,917 | ) |
Global Bond Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 52,180 | 4,488 | $ | 7,966 | 669 | $ | (68,705 | ) | (5,885 | ) | $ | (8,559 | ) | (728 | ) | ||||||||||||||||
Class 1A | 16 | 1 | 3 | — | † | (15 | ) | (1 | ) | 4 | — | † | ||||||||||||||||||||
Class 2 | 17,793 | 1,534 | 7,548 | 638 | (67,774 | ) | (5,855 | ) | (42,433 | ) | (3,683 | ) | ||||||||||||||||||||
Class 4 | 7,066 | 615 | 317 | 27 | (3,315 | ) | (288 | ) | 4,068 | 354 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 77,055 | 6,638 | $ | 15,834 | 1,334 | $ | (139,809 | ) | (12,029 | ) | $ | (46,920 | ) | (4,057 | ) | ||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 126,990 | 10,666 | $ | 28,466 | 2,515 | $ | (375,280 | ) | (31,456 | ) | $ | (219,824 | ) | (18,275 | ) | ||||||||||||||||
Class 1A | 575 | 49 | 10 | 1 | (241 | ) | (21 | ) | 344 | 29 | ||||||||||||||||||||||
Class 2 | 41,190 | 3,507 | 26,720 | 2,377 | (156,625 | ) | (13,571 | ) | (88,715 | ) | (7,687 | ) | ||||||||||||||||||||
Class 4 | 28,055 | 2,394 | 934 | 84 | (17,922 | ) | (1,548 | ) | 11,067 | 930 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 196,810 | 16,616 | $ | 56,130 | 4,977 | $ | (550,068 | ) | (46,596 | ) | $ | (297,128 | ) | (25,003 | ) |
See end of tables for footnotes.
American Funds Insurance Series | 181 |
High-Income Bond Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 6,788 | 672 | $ | 6,406 | 635 | $ | (30,513 | ) | (3,071 | ) | $ | (17,319 | ) | (1,764 | ) | ||||||||||||||||
Class 1A | 255 | 25 | 9 | 1 | (341 | ) | (34 | ) | (77 | ) | (8 | ) | ||||||||||||||||||||
Class 2 | 5,462 | 563 | 8,300 | 837 | (45,088 | ) | (4,593 | ) | (31,326 | ) | (3,193 | ) | ||||||||||||||||||||
Class 3 | 353 | 35 | 118 | 12 | (618 | ) | (62 | ) | (147 | ) | (15 | ) | ||||||||||||||||||||
Class 4 | 42,207 | 4,023 | 588 | 55 | (19,162 | ) | (1,784 | ) | 23,633 | 2,294 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 55,065 | 5,318 | $ | 15,421 | 1,540 | $ | (95,722 | ) | (9,544 | ) | $ | (25,236 | ) | (2,686 | ) | ||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 15,126 | 1,484 | $ | 34,114 | 3,526 | $ | (136,193 | ) | (13,306 | ) | $ | (86,953 | ) | (8,296 | ) | ||||||||||||||||
Class 1A | 621 | 61 | 40 | 5 | (365 | ) | (36 | ) | 296 | 30 | ||||||||||||||||||||||
Class 2 | 12,354 | 1,231 | 43,383 | 4,563 | (111,276 | ) | (11,157 | ) | (55,539 | ) | (5,363 | ) | ||||||||||||||||||||
Class 3 | 1,837 | 179 | 664 | 68 | (4,223 | ) | (418 | ) | (1,722 | ) | (171 | ) | ||||||||||||||||||||
Class 4 | 51,449 | 4,747 | 1,733 | 168 | (53,384 | ) | (4,942 | ) | (202 | ) | (27 | ) | ||||||||||||||||||||
Total net increase (decrease) | $ | 81,387 | 7,702 | $ | 79,934 | 8,330 | $ | (305,441 | ) | (29,859 | ) | $ | (144,120 | ) | (13,827 | ) |
Mortgage Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 21,101 | 2,032 | $ | 944 | 89 | $ | (29,038 | ) | (2,764 | ) | $ | (6,993 | ) | (643 | ) | ||||||||||||||||
Class 1A | 135 | 13 | 3 | — | † | (309 | ) | (29 | ) | (171 | ) | (16 | ) | |||||||||||||||||||
Class 2 | 2,607 | 250 | 239 | 22 | (3,339 | ) | (320 | ) | (493 | ) | (48 | ) | ||||||||||||||||||||
Class 4 | 4,955 | 480 | 81 | 8 | (8,135 | ) | (791 | ) | (3,099 | ) | (303 | ) | ||||||||||||||||||||
Total net increase (decrease) | $ | 28,798 | 2,775 | $ | 1,267 | 119 | $ | (40,821 | ) | (3,904 | ) | $ | (10,756 | ) | (1,010 | ) | ||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 17,819 | 1,730 | $ | 4,658 | 457 | $ | (74,088 | ) | (7,185 | ) | $ | (51,611 | ) | (4,998 | ) | ||||||||||||||||
Class 1A | 732 | 71 | 15 | 2 | (111 | ) | (11 | ) | 636 | 62 | ||||||||||||||||||||||
Class 2 | 4,682 | 456 | 1,128 | 111 | (10,509 | ) | (1,023 | ) | (4,699 | ) | (456 | ) | ||||||||||||||||||||
Class 4 | 14,315 | 1,403 | 424 | 41 | (2,626 | ) | (257 | ) | 12,113 | 1,187 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 37,548 | 3,660 | $ | 6,225 | 611 | $ | (87,334 | ) | (8,476 | ) | $ | (43,561 | ) | (4,205 | ) |
182 | American Funds Insurance Series |
Ultra-Short Bond Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 5,032 | 443 | $ | 120 | 10 | $ | (10,628 | ) | (936 | ) | $ | (5,476 | ) | (483 | ) | ||||||||||||||||
Class 1A | — | — | — | † | — | † | — | — | — | † | — | † | ||||||||||||||||||||
Class 2 | 33,087 | 2,987 | 794 | 72 | (53,293 | ) | (4,814 | ) | (19,412 | ) | (1,755 | ) | ||||||||||||||||||||
Class 3 | 248 | 23 | 12 | 1 | (1,527 | ) | (137 | ) | (1,267 | ) | (113 | ) | ||||||||||||||||||||
Class 4 | 12,481 | 1,114 | 74 | 7 | (9,022 | ) | (806 | ) | 3,533 | 315 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 50,848 | 4,567 | $ | 1,000 | 90 | $ | (74,470 | ) | (6,693 | ) | $ | (22,622 | ) | (2,036 | ) | ||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 25,371 | 2,233 | $ | 561 | 50 | $ | (26,198 | ) | (2,310 | ) | $ | (266 | ) | (27 | ) | ||||||||||||||||
Class 1A | — | — | — | † | — | † | — | — | — | † | — | † | ||||||||||||||||||||
Class 2 | 103,165 | 9,332 | 2,762 | 250 | (107,692 | ) | (9,741 | ) | (1,765 | ) | (159 | ) | ||||||||||||||||||||
Class 3 | 4,222 | 378 | 42 | 4 | (3,944 | ) | (353 | ) | 320 | 29 | ||||||||||||||||||||||
Class 4 | 16,908 | 1,513 | 153 | 14 | (14,303 | ) | (1,281 | ) | 2,758 | 246 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 149,666 | 13,456 | $ | 3,518 | 318 | $ | (152,137 | ) | (13,685 | ) | $ | 1,047 | 89 |
U.S. Government/AAA-Rated Securities Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 42,379 | 3,505 | $ | 5,917 | 478 | $ | (96,593 | ) | (7,929 | ) | $ | (48,297 | ) | (3,946 | ) | ||||||||||||||||
Class 1A | 953 | 78 | 8 | 1 | (295 | ) | (25 | ) | 666 | 54 | ||||||||||||||||||||||
Class 2 | 36,832 | 3,061 | 4,960 | 405 | (83,835 | ) | (6,992 | ) | (42,043 | ) | (3,526 | ) | ||||||||||||||||||||
Class 3 | 637 | 52 | 33 | 2 | (1,078 | ) | (88 | ) | (408 | ) | (34 | ) | ||||||||||||||||||||
Class 4 | 35,821 | 2,964 | 386 | 32 | (17,635 | ) | (1,470 | ) | 18,572 | 1,526 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 116,622 | 9,660 | $ | 11,304 | 918 | $ | (199,436 | ) | (16,504 | ) | $ | (71,510 | ) | (5,926 | ) | ||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class 1 | $ | 67,360 | 5,655 | $ | 29,446 | 2,499 | $ | (191,451 | ) | (16,111 | ) | $ | (94,645 | ) | (7,957 | ) | ||||||||||||||||
Class 1A | 1,389 | 118 | 28 | 2 | (214 | ) | (18 | ) | 1,203 | 102 | ||||||||||||||||||||||
Class 2 | 43,398 | 3,680 | 24,431 | 2,094 | (200,280 | ) | (17,045 | ) | (132,451 | ) | (11,271 | ) | ||||||||||||||||||||
Class 3 | 628 | 53 | 165 | 14 | (1,997 | ) | (168 | ) | (1,204 | ) | (101 | ) | ||||||||||||||||||||
Class 4 | 45,391 | 3,857 | 1,313 | 113 | (17,387 | ) | (1,474 | ) | 29,317 | 2,496 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 158,166 | 13,363 | $ | 55,383 | 4,722 | $ | (411,329 | ) | (34,816 | ) | $ | (197,780 | ) | (16,731 | ) |
Managed Risk Growth Fund
Reinvestments of | ||||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 804 | 60 | $ | 290 | 23 | $ | (203 | ) | (15 | ) | $ | 891 | 68 | ||||||||||||||||||
Class P2 | 25,177 | 1,945 | 28,836 | 2,339 | (11,499 | ) | (880 | ) | 42,514 | 3,404 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 25,981 | 2,005 | $ | 29,126 | 2,362 | $ | (11,702 | ) | (895 | ) | $ | 43,405 | 3,472 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 1,861 | 140 | $ | 150 | 11 | $ | (596 | ) | (45 | ) | $ | 1,415 | 106 | ||||||||||||||||||
Class P2 | 79,190 | 6,025 | 21,792 | 1,658 | (21,197 | ) | (1,594 | ) | 79,785 | 6,089 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 81,051 | 6,165 | $ | 21,942 | 1,669 | $ | (21,793 | ) | (1,639 | ) | $ | 81,200 | 6,195 |
See end of tables for footnotes.
American Funds Insurance Series | 183 |
Managed Risk International Fund
Reinvestments of | ||||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 168 | 16 | $ | 27 | 3 | $ | (32 | ) | (3 | ) | $ | 163 | 16 | ||||||||||||||||||
Class P2 | 4,350 | 420 | 7,769 | 772 | (8,646 | ) | (831 | ) | 3,473 | 361 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 4,518 | 436 | $ | 7,796 | 775 | $ | (8,678 | ) | (834 | ) | $ | 3,636 | 377 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 321 | 30 | $ | 9 | 1 | $ | (44 | ) | (4 | ) | $ | 286 | 27 | ||||||||||||||||||
Class P2 | 33,085 | 3,040 | 3,419 | 323 | (13,533 | ) | (1,240 | ) | 22,971 | 2,123 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 33,406 | 3,070 | $ | 3,428 | 324 | $ | (13,577 | ) | (1,244 | ) | $ | 23,257 | 2,150 |
Managed Risk Blue Chip Income and Growth Fund
Reinvestments of | ||||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 309 | 25 | $ | 53 | 5 | $ | (158 | ) | (14 | ) | $ | 204 | 16 | ||||||||||||||||||
Class P2 | 10,209 | 886 | 23,362 | 2,128 | (15,231 | ) | (1,300 | ) | 18,340 | 1,714 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 10,518 | 911 | $ | 23,415 | 2,133 | $ | (15,389 | ) | (1,314 | ) | $ | 18,544 | 1,730 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 358 | 29 | $ | 22 | 2 | $ | (43 | ) | (4 | ) | $ | 337 | 27 | ||||||||||||||||||
Class P2 | 31,213 | 2,567 | 23,504 | 1,964 | (35,759 | ) | (2,843 | ) | 18,958 | 1,688 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 31,571 | 2,596 | $ | 23,526 | 1,966 | $ | (35,802 | ) | (2,847 | ) | $ | 19,295 | 1,715 |
Managed Risk Growth-Income Fund
Reinvestments of | ||||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | Net increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 53,713 | 4,286 | $ | 20,255 | 1,592 | $ | (22,890 | ) | (1,837 | ) | $ | 51,078 | 4,041 | ||||||||||||||||||
Class P2 | 13,055 | 1,055 | 2,648 | 209 | (9,633 | ) | (766 | ) | 6,070 | 498 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 66,768 | 5,341 | $ | 22,903 | 1,801 | $ | (32,523 | ) | (2,603 | ) | $ | 57,148 | 4,539 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 1,696,532 | 144,131 | $ | 164 | 13 | $ | (30,979 | ) | (2,639 | ) | $ | 1,665,717 | 141,505 | ||||||||||||||||||
Class P2 | 45,914 | 3,658 | 12,188 | 977 | (16,805 | ) | (1,320 | ) | 41,297 | 3,315 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,742,446 | 147,789 | $ | 12,352 | 990 | $ | (47,784 | ) | (3,959 | ) | $ | 1,707,014 | 144,820 |
184 | American Funds Insurance Series |
Managed Risk Asset Allocation Fund
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales* | distributions | Repurchases* | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended June 30, 2019 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 83 | 7 | $ | 65 | 5 | $ | (296 | ) | (22 | ) | $ | (148 | ) | (10 | ) | ||||||||||||||||
Class P2 | 56,368 | 4,353 | 177,679 | 14,375 | (134,684 | ) | (10,418 | ) | 99,363 | 8,310 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 56,451 | 4,360 | $ | 177,744 | 14,380 | $ | (134,980 | ) | (10,440 | ) | $ | 99,215 | 8,300 | ||||||||||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||||||||||
Class P1 | $ | 158,125 | 11,883 | $ | 98,747 | 7,599 | $ | (1,735,518 | ) | (141,232 | ) | $ | (1,478,646 | ) | (121,750 | ) | ||||||||||||||||
Class P2 | 122,897 | 9,265 | 144,221 | 11,089 | (250,843 | ) | (19,040 | ) | 16,275 | 1,314 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 281,022 | 21,148 | $ | 242,968 | 18,688 | $ | (1,986,361 | ) | (160,272 | ) | $ | (1,462,371 | ) | (120,436 | ) |
* | Includes exchanges between share classes of the fund. |
† | Amount less than one thousand. |
American Funds Insurance Series | 185 |
10. Investment transactions and other disclosures
The following tables present additional information for each of the funds for the six months ended June 30, 2019 (dollars in thousands):
Global Growth Fund | Global Small Capitalization Fund | Growth Fund | International Fund | New World Fund | Blue Chip Income and Growth Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 1,055,951 | $ | 1,850,309 | $ | 4,857,350 | $ | 2,792,947 | $ | 1,307,390 | $ | 3,006,205 | ||||||||||||
Sales of investment securities* | 1,073,582 | 1,461,908 | 3,684,608 | 1,993,562 | 923,284 | 2,520,023 | ||||||||||||||||||
Non-U.S. taxes paid on dividend income | 5,123 | 2,341 | �� | 5,755 | 11,331 | 2,280 | 357 | |||||||||||||||||
Non-U.S. taxes paid on interest income | — | — | — | — | 4 | — | ||||||||||||||||||
Non-U.S. taxes paid on realized gains | — | — | — | — | 50 | — | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 2,290 | 2,754 | — | 16,416 | 6,872 | — | ||||||||||||||||||
Global Growth and Income Fund | Growth- Income Fund | International Growth and Income Fund | Capital Income Builder | Asset Allocation Fund | Global Balanced Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 544,087 | $ | 7,509,583 | $ | 373,943 | $ | 378,926 | $ | 12,042,957 | $ | 252,975 | ||||||||||||
Sales of investment securities* | 536,095 | 4,935,543 | 268,718 | 248,431 | 8,999,283 | 231,206 | ||||||||||||||||||
Non-U.S. taxes paid on dividend income | 2,358 | 7,611 | 2,754 | 701 | 5,187 | 233 | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on interest income | — | (1 | ) | — | — | — | 7 | |||||||||||||||||
Non-U.S. taxes paid on realized gains | — | — | 145 | — | — | 2 | ||||||||||||||||||
Non-U.S. taxes provided on unrealized gains | 1,106 | 1,301 | 959 | — | 289 | 54 | ||||||||||||||||||
Dividend income from affiliated issuers | — | 1,827 | — | — | 730 | — | ||||||||||||||||||
Interest income from affiliated issuers | — | — | — | — | 1,194 | — | ||||||||||||||||||
Bond Fund | Global Bond Fund | High- Income Bond Fund | Mortgage Fund | Ultra-Short Bond Fund | U.S. Government/ AAA-Rated Securities Fund | |||||||||||||||||||
Purchases of investment securities* | $ | 20,635,057 | $ | 1,897,021 | $ | 565,238 | $ | 394,192 | $ | — | $ | 2,655,824 | ||||||||||||
Sales of investment securities* | 19,572,372 | 1,923,935 | 529,305 | 398,582 | — | 2,725,376 | ||||||||||||||||||
Non-U.S. taxes (refunded) paid on interest income | (6 | ) | 138 | — | — | — | — | |||||||||||||||||
Non-U.S. taxes (refunded) paid on realized gains | (2 | ) | 210 | — | — | — | — | |||||||||||||||||
Non-U.S. taxes provided on unrealized gains | — | 425 | — | — | — | — | ||||||||||||||||||
Managed Risk Growth Fund | Managed Risk International Fund | Managed Risk Blue Chip Income and Growth Fund | Managed Risk Growth- Income Fund | Managed Risk Asset Allocation Fund | ||||||||||||||||||||
Purchases of investment securities* | $ | 56,036 | $ | 7,414 | $ | 31,627 | $ | 231,601 | $ | 159,809 | ||||||||||||||
Sales of investment securities* | 23,553 | 7,689 | 27,130 | 64,363 | 146,293 | |||||||||||||||||||
Dividend income from affiliated issuers | 1,089 | 367 | 1,448 | 7,423 | 11,862 |
* | Excludes short-term securities and U.S. government obligations, if any. |
11. Ownership concentration
At June 30, 2019, American Funds Insurance Series - Portfolio Series Managed Risk Growth and Income Portfolio held 34% and 11% of the outstanding shares of Capital Income Builder and Global Growth and Income Fund, respectively. In addition, American Funds Insurance Series - Portfolio Series Managed Risk Global Allocation Portfolio held 23% of the outstanding shares of Global Balanced Fund and Managed Risk Asset Allocation Fund held 10% of the outstanding shares of Asset Allocation Fund.
186 | American Funds Insurance Series |
Financial highlights
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on (both | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Global Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 25.74 | $ | .21 | $ | 5.27 | $ | 5.48 | $ | (.05 | ) | $ | (1.68 | ) | $ | (1.73 | ) | $ | 29.49 | 21.41 | %4 | $ | 2,254 | .55 | %5 | 1.46 | %5 | |||||||||||||||||||||
12/31/2018 | 30.51 | .29 | (2.65 | ) | (2.36 | ) | (.28 | ) | (2.13 | ) | (2.41 | ) | 25.74 | (8.81 | ) | 1,942 | .55 | .98 | ||||||||||||||||||||||||||||||
12/31/2017 | 24.05 | .26 | 7.30 | 7.56 | (.26 | ) | (.84 | ) | (1.10 | ) | 30.51 | 31.80 | 2,010 | .55 | .94 | |||||||||||||||||||||||||||||||||
12/31/2016 | 26.39 | .25 | (.14 | ) | .11 | (.29 | ) | (2.16 | ) | (2.45 | ) | 24.05 | .87 | 1,630 | .56 | 1.00 | ||||||||||||||||||||||||||||||||
12/31/2015 | 27.48 | .25 | 1.80 | 2.05 | (.35 | ) | (2.79 | ) | (3.14 | ) | 26.39 | 7.24 | 1,626 | .55 | .90 | |||||||||||||||||||||||||||||||||
12/31/2014 | 30.11 | .31 | 6 | .40 | .71 | (.40 | ) | (2.94 | ) | (3.34 | ) | 27.48 | 2.52 | 1,558 | .55 | 1.08 | 6 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 25.69 | .18 | 5.24 | 5.42 | (.04 | ) | (1.68 | ) | (1.72 | ) | 29.39 | 21.23 | 4 | 7 | .80 | 5 | 1.25 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 30.46 | .23 | (2.66 | ) | (2.43 | ) | (.21 | ) | (2.13 | ) | (2.34 | ) | 25.69 | (9.02 | ) | 5 | .80 | .77 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 24.50 | .11 | 6.94 | 7.05 | (.25 | ) | (.84 | ) | (1.09 | ) | 30.46 | 29.13 | 4 | 2 | .80 | 5 | .39 | 5 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 25.50 | .17 | 5.22 | 5.39 | (.04 | ) | (1.68 | ) | (1.72 | ) | 29.17 | 21.25 | 4 | 3,741 | .80 | 5 | 1.20 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 30.24 | .22 | (2.63 | ) | (2.41 | ) | (.20 | ) | (2.13 | ) | (2.33 | ) | 25.50 | (9.04 | ) | 3,306 | .80 | .73 | ||||||||||||||||||||||||||||||
12/31/2017 | 23.85 | .19 | 7.23 | 7.42 | (.19 | ) | (.84 | ) | (1.03 | ) | 30.24 | 31.47 | 4,012 | .80 | .69 | |||||||||||||||||||||||||||||||||
12/31/2016 | 26.19 | .18 | (.14 | ) | .04 | (.22 | ) | (2.16 | ) | (2.38 | ) | 23.85 | .62 | 3,483 | .81 | .76 | ||||||||||||||||||||||||||||||||
12/31/2015 | 27.30 | .18 | 1.78 | 1.96 | (.28 | ) | (2.79 | ) | (3.07 | ) | 26.19 | 6.94 | 3,817 | .80 | .66 | |||||||||||||||||||||||||||||||||
12/31/2014 | 29.92 | .24 | 6 | .41 | .65 | (.33 | ) | (2.94 | ) | (3.27 | ) | 27.30 | 2.31 | 3,992 | .80 | .85 | 6 | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 25.39 | .14 | 5.18 | 5.32 | (.03 | ) | (1.68 | ) | (1.71 | ) | 29.00 | 21.07 | 4 | 322 | 1.05 | 5 | .99 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 30.13 | .14 | (2.60 | ) | (2.46 | ) | (.15 | ) | (2.13 | ) | (2.28 | ) | 25.39 | (9.24 | ) | 249 | 1.05 | .47 | ||||||||||||||||||||||||||||||
12/31/2017 | 23.81 | .10 | 7.22 | 7.32 | (.16 | ) | (.84 | ) | (1.00 | ) | 30.13 | 31.11 | 211 | 1.05 | .37 | |||||||||||||||||||||||||||||||||
12/31/2016 | 26.16 | .12 | (.14 | ) | (.02 | ) | (.17 | ) | (2.16 | ) | (2.33 | ) | 23.81 | .37 | 94 | 1.06 | .50 | |||||||||||||||||||||||||||||||
12/31/2015 | 27.34 | .09 | 1.81 | 1.90 | (.29 | ) | (2.79 | ) | (3.08 | ) | 26.16 | 6.69 | 91 | 1.05 | .34 | |||||||||||||||||||||||||||||||||
12/31/2014 | 30.07 | .07 | 6 | .50 | .57 | (.36 | ) | (2.94 | ) | (3.30 | ) | 27.34 | 2.01 | 19 | 1.05 | .26 | 6 | |||||||||||||||||||||||||||||||
Global Small Capitalization Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 21.75 | $ | .10 | $ | 4.28 | $ | 4.38 | $ | (.02 | ) | $ | (1.58 | ) | $ | (1.60 | ) | $ | 24.53 | 20.30 | %4 | $ | 1,951 | .74 | %5 | .80 | %5 | |||||||||||||||||||||
12/31/2018 | 25.38 | .11 | (2.51 | ) | (2.40 | ) | (.09 | ) | (1.14 | ) | (1.23 | ) | 21.75 | (10.31 | ) | 1,453 | .73 | .42 | ||||||||||||||||||||||||||||||
12/31/2017 | 20.24 | .12 | 5.17 | 5.29 | (.15 | ) | — | (.15 | ) | 25.38 | 26.22 | 1,639 | .73 | .54 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 24.41 | .12 | .17 | .29 | (.11 | ) | (4.35 | ) | (4.46 | ) | 20.24 | 2.35 | 1,532 | .74 | .57 | |||||||||||||||||||||||||||||||||
12/31/2015 | 26.09 | .04 | .36 | .40 | — | (2.08 | ) | (2.08 | ) | 24.41 | .50 | 1,706 | .73 | .15 | ||||||||||||||||||||||||||||||||||
12/31/2014 | 25.69 | .09 | .52 | .61 | (.09 | ) | (.12 | ) | (.21 | ) | 26.09 | 2.36 | 1,411 | .74 | .34 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 21.71 | .07 | 4.28 | 4.35 | (.01 | ) | (1.58 | ) | (1.59 | ) | 24.47 | 8 | 20.21 | 4 | — | 8 | .98 | 5 | .55 | 5 | ||||||||||||||||||||||||||||
12/31/2018 | 25.36 | .05 | (2.52 | ) | (2.47 | ) | (.04 | ) | (1.14 | ) | (1.18 | ) | 21.71 | (10.56 | ) | — | 8 | .98 | .21 | |||||||||||||||||||||||||||||
12/31/20172,7 | 20.70 | .08 | 4.71 | 4.79 | (.13 | ) | — | (.13 | ) | 25.36 | 23.19 | 4 | — | 8 | .96 | 5 | .35 | 5 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 21.16 | .06 | 4.17 | 4.23 | (.01 | ) | (1.58 | ) | (1.59 | ) | 23.80 | 20.16 | 4 | 2,302 | .99 | 5 | .51 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 24.72 | .04 | (2.44 | ) | (2.40 | ) | (.02 | ) | (1.14 | ) | (1.16 | ) | 21.16 | (10.55 | ) | 2,056 | .98 | .17 | ||||||||||||||||||||||||||||||
12/31/2017 | 19.72 | .06 | 5.04 | 5.10 | (.10 | ) | — | (.10 | ) | 24.72 | 25.89 | 2,551 | .98 | .27 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 23.90 | .07 | .15 | .22 | (.05 | ) | (4.35 | ) | (4.40 | ) | 19.72 | 2.10 | 2,303 | .99 | .31 | |||||||||||||||||||||||||||||||||
12/31/2015 | 25.64 | (.03 | ) | .37 | .34 | — | (2.08 | ) | (2.08 | ) | 23.90 | .27 | 2,492 | .98 | (.10 | ) | ||||||||||||||||||||||||||||||||
12/31/2014 | 25.25 | .03 | .51 | .54 | (.03 | ) | (.12 | ) | (.15 | ) | 25.64 | 2.12 | 2,738 | .99 | .10 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 21.28 | .03 | 4.20 | 4.23 | — | 9 | (1.58 | ) | (1.58 | ) | 23.93 | 20.05 | 4 | 180 | 1.24 | 5 | .28 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 24.91 | (.02 | ) | (2.46 | ) | (2.48 | ) | (.01 | ) | (1.14 | ) | (1.15 | ) | 21.28 | (10.80 | ) | 146 | 1.24 | (.08 | ) | ||||||||||||||||||||||||||||
12/31/2017 | 19.91 | — | 9 | 5.09 | 5.09 | (.09 | ) | — | (.09 | ) | 24.91 | 25.62 | 125 | 1.23 | — | 10 | ||||||||||||||||||||||||||||||||
12/31/2016 | 24.11 | .01 | .16 | .17 | (.02 | ) | (4.35 | ) | (4.37 | ) | 19.91 | 1.85 | 42 | 1.24 | .03 | |||||||||||||||||||||||||||||||||
12/31/2015 | 25.92 | (.10 | ) | .37 | .27 | — | (2.08 | ) | (2.08 | ) | 24.11 | (.02 | ) | 34 | 1.23 | (.37 | ) | |||||||||||||||||||||||||||||||
12/31/2014 | 25.57 | (.05 | ) | .54 | .49 | (.02 | ) | (.12 | ) | (.14 | ) | 25.92 | 1.88 | 12 | 1.24 | (.17 | ) |
See end of tables for footnotes.
American Funds Insurance Series | 187 |
Financial highlights(continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 69.96 | $ | .42 | $ | 11.13 | $ | 11.55 | $ | (.20 | ) | $ | (8.44 | ) | $ | (8.64 | ) | $ | 72.87 | 16.80 | %4 | $ | 9,854 | .34 | %5 | 1.09 | %5 | |||||||||||||||||||||
12/31/2018 | 77.85 | .64 | .25 | .89 | (.54 | ) | (8.24 | ) | (8.78 | ) | 69.96 | (.01 | ) | 8,474 | .34 | .81 | ||||||||||||||||||||||||||||||||
12/31/2017 | 67.29 | .55 | 17.89 | 18.44 | (.55 | ) | (7.33 | ) | (7.88 | ) | 77.85 | 28.62 | 8,100 | .35 | .75 | |||||||||||||||||||||||||||||||||
12/31/2016 | 68.02 | .67 | 5.40 | 6.07 | (.67 | ) | (6.13 | ) | (6.80 | ) | 67.29 | 9.77 | 6,931 | .35 | 1.03 | |||||||||||||||||||||||||||||||||
12/31/2015 | 80.15 | .64 | 5.08 | 5.72 | (.61 | ) | (17.24 | ) | (17.85 | ) | 68.02 | 7.12 | 6,796 | .35 | .87 | |||||||||||||||||||||||||||||||||
12/31/2014 | 78.54 | .88 | 6 | 5.79 | 6.67 | (1.16 | ) | (3.90 | ) | (5.06 | ) | 80.15 | 8.78 | 7,118 | .35 | 1.12 | 6 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 69.77 | .33 | 11.09 | 11.42 | (.17 | ) | (8.44 | ) | (8.61 | ) | 72.58 | 16.66 | 4 | 14 | .59 | 5 | .86 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 77.74 | .47 | .24 | .71 | (.44 | ) | (8.24 | ) | (8.68 | ) | 69.77 | (.26 | ) | 10 | .59 | .60 | ||||||||||||||||||||||||||||||||
12/31/20172,7 | 68.84 | .35 | 16.38 | 16.73 | (.50 | ) | (7.33 | ) | (7.83 | ) | 77.74 | 25.47 | 4 | 3 | .59 | 5 | .47 | 5 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 69.48 | .32 | 11.04 | 11.36 | (.16 | ) | (8.44 | ) | (8.60 | ) | 72.24 | 16.65 | 4 | 15,090 | .59 | 5 | .84 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 77.35 | .44 | .27 | .71 | (.34 | ) | (8.24 | ) | (8.58 | ) | 69.48 | (.25 | ) | 13,701 | .59 | .55 | ||||||||||||||||||||||||||||||||
12/31/2017 | 66.92 | .37 | 17.76 | 18.13 | (.37 | ) | (7.33 | ) | (7.70 | ) | 77.35 | 28.28 | 15,716 | .60 | .50 | |||||||||||||||||||||||||||||||||
12/31/2016 | 67.69 | .51 | 5.36 | 5.87 | (.51 | ) | (6.13 | ) | (6.64 | ) | 66.92 | 9.49 | 13,978 | .60 | .78 | |||||||||||||||||||||||||||||||||
12/31/2015 | 79.84 | .46 | 5.06 | 5.52 | (.43 | ) | (17.24 | ) | (17.67 | ) | 67.69 | 6.86 | 14,414 | .60 | .62 | |||||||||||||||||||||||||||||||||
12/31/2014 | 77.94 | .68 | 6 | 5.75 | 6.43 | (.63 | ) | (3.90 | ) | (4.53 | ) | 79.84 | 8.51 | 15,413 | .60 | .87 | 6 | |||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 70.44 | .35 | 11.20 | 11.55 | (.17 | ) | (8.44 | ) | (8.61 | ) | 73.38 | 16.68 | 4 | 209 | .52 | 5 | .91 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 78.32 | .50 | .26 | .76 | (.40 | ) | (8.24 | ) | (8.64 | ) | 70.44 | (.18 | ) | 187 | .52 | .62 | ||||||||||||||||||||||||||||||||
12/31/2017 | 67.67 | .42 | 17.98 | 18.40 | (.42 | ) | (7.33 | ) | (7.75 | ) | 78.32 | 28.39 | 212 | .53 | .57 | |||||||||||||||||||||||||||||||||
12/31/2016 | 68.37 | .56 | 5.42 | 5.98 | (.55 | ) | (6.13 | ) | (6.68 | ) | 67.67 | 9.56 | 183 | .53 | .85 | |||||||||||||||||||||||||||||||||
12/31/2015 | 80.47 | .51 | 5.11 | 5.62 | (.48 | ) | (17.24 | ) | (17.72 | ) | 68.37 | 6.92 | 194 | .53 | .69 | |||||||||||||||||||||||||||||||||
12/31/2014 | 78.62 | .74 | 6 | 5.79 | 6.53 | (.78 | ) | (3.90 | ) | (4.68 | ) | 80.47 | 8.58 | 208 | .53 | .94 | 6 | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 68.64 | .22 | 10.91 | 11.13 | (.14 | ) | (8.44 | ) | (8.58 | ) | 71.19 | 16.51 | 4 | 1,312 | .84 | 5 | .60 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 76.56 | .24 | .28 | .52 | (.20 | ) | (8.24 | ) | (8.44 | ) | 68.64 | (.50 | ) | 1,076 | .84 | .31 | ||||||||||||||||||||||||||||||||
12/31/2017 | 66.41 | .18 | 17.61 | 17.79 | (.31 | ) | (7.33 | ) | (7.64 | ) | 76.56 | 27.99 | 954 | .85 | .25 | |||||||||||||||||||||||||||||||||
12/31/2016 | 67.26 | .34 | 5.32 | 5.66 | (.38 | ) | (6.13 | ) | (6.51 | ) | 66.41 | 9.22 | 458 | .85 | .53 | |||||||||||||||||||||||||||||||||
12/31/2015 | 79.74 | .29 | 5.02 | 5.31 | (.55 | ) | (17.24 | ) | (17.79 | ) | 67.26 | 6.59 | 394 | .85 | .42 | |||||||||||||||||||||||||||||||||
12/31/2014 | 78.32 | .37 | 6 | 5.87 | 6.24 | (.92 | ) | (3.90 | ) | (4.82 | ) | 79.74 | 8.25 | 24 | .85 | .47 | 6 |
188 | American Funds Insurance Series |
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
International Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 17.66 | $ | .20 | $ | 2.43 | $ | 2.63 | $ | (.04 | ) | $ | (.50 | ) | $ | (.54 | ) | $ | 19.75 | 14.94 | %4 | $ | 5,251 | .53 | %5 | 2.13 | %5 | |||||||||||||||||||||
12/31/2018 | 21.71 | .34 | (2.97 | ) | (2.63 | ) | (.40 | ) | (1.02 | ) | (1.42 | ) | 17.66 | (12.94 | ) | 4,811 | .53 | 1.62 | ||||||||||||||||||||||||||||||
12/31/2017 | 16.82 | .26 | 5.16 | 5.42 | (.30 | ) | (.23 | ) | (.53 | ) | 21.71 | 32.46 | 5,014 | .53 | 1.33 | |||||||||||||||||||||||||||||||||
12/31/2016 | 18.08 | .27 | .30 | .57 | (.28 | ) | (1.55 | ) | (1.83 | ) | 16.82 | 3.78 | 3,652 | .54 | 1.57 | |||||||||||||||||||||||||||||||||
12/31/2015 | 20.35 | .29 | (1.03 | ) | (.74 | ) | (.35 | ) | (1.18 | ) | (1.53 | ) | 18.08 | (4.25 | ) | 3,427 | .54 | 1.41 | ||||||||||||||||||||||||||||||
12/31/2014 | 21.22 | .30 | (.81 | ) | (.51 | ) | (.36 | ) | — | (.36 | ) | 20.35 | (2.41 | ) | 3,282 | .54 | 1.43 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 17.62 | .18 | 2.41 | 2.59 | (.03 | ) | (.50 | ) | (.53 | ) | 19.68 | 14.76 | 4 | 6 | .78 | 5 | 1.90 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 21.67 | .27 | (2.93 | ) | (2.66 | ) | (.37 | ) | (1.02 | ) | (1.39 | ) | 17.62 | (13.11 | ) | 5 | .78 | 1.32 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 17.17 | .09 | 4.93 | 5.02 | (.29 | ) | (.23 | ) | (.52 | ) | 21.67 | 29.46 | 4 | 2 | .77 | 5 | .43 | 5 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 17.60 | .18 | 2.41 | 2.59 | (.03 | ) | (.50 | ) | (.53 | ) | 19.66 | 14.78 | 4 | 4,200 | .78 | 5 | 1.88 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 21.63 | .29 | (2.95 | ) | (2.66 | ) | (.35 | ) | (1.02 | ) | (1.37 | ) | 17.60 | (13.13 | ) | 3,875 | .78 | 1.40 | ||||||||||||||||||||||||||||||
12/31/2017 | 16.76 | .22 | 5.13 | 5.35 | (.25 | ) | (.23 | ) | (.48 | ) | 21.63 | 32.14 | 4,422 | .78 | 1.10 | |||||||||||||||||||||||||||||||||
12/31/2016 | 18.02 | .23 | .30 | .53 | (.24 | ) | (1.55 | ) | (1.79 | ) | 16.76 | 3.53 | 3,710 | .79 | 1.35 | |||||||||||||||||||||||||||||||||
12/31/2015 | 20.29 | .24 | (1.03 | ) | (.79 | ) | (.30 | ) | (1.18 | ) | (1.48 | ) | 18.02 | (4.53 | ) | 3,978 | .79 | 1.17 | ||||||||||||||||||||||||||||||
12/31/2014 | 21.15 | .25 | (.81 | ) | (.56 | ) | (.30 | ) | — | (.30 | ) | 20.29 | (2.65 | ) | 4,374 | .79 | 1.19 | |||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 17.70 | .19 | 2.43 | 2.62 | (.03 | ) | (.50 | ) | (.53 | ) | 19.79 | 14.87 | 4 | 25 | .71 | 5 | 1.95 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 21.75 | .31 | (2.98 | ) | (2.67 | ) | (.36 | ) | (1.02 | ) | (1.38 | ) | 17.70 | (13.10 | ) | 24 | .71 | 1.48 | ||||||||||||||||||||||||||||||
12/31/2017 | 16.85 | .23 | 5.17 | 5.40 | (.27 | ) | (.23 | ) | (.50 | ) | 21.75 | 32.23 | 31 | .71 | 1.17 | |||||||||||||||||||||||||||||||||
12/31/2016 | 18.11 | .24 | .30 | .54 | (.25 | ) | (1.55 | ) | (1.80 | ) | 16.85 | 3.57 | 27 | .72 | 1.42 | |||||||||||||||||||||||||||||||||
12/31/2015 | 20.38 | .25 | (1.03 | ) | (.78 | ) | (.31 | ) | (1.18 | ) | (1.49 | ) | 18.11 | (4.44 | ) | 32 | .72 | 1.24 | ||||||||||||||||||||||||||||||
12/31/2014 | 21.24 | .27 | (.82 | ) | (.55 | ) | (.31 | ) | — | (.31 | ) | 20.38 | (2.56 | ) | 38 | .72 | 1.28 | |||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 17.40 | .16 | 2.38 | 2.54 | (.02 | ) | (.50 | ) | (.52 | ) | 19.42 | 14.68 | 4 | 352 | 1.03 | 5 | 1.65 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 21.42 | .23 | (2.93 | ) | (2.70 | ) | (.30 | ) | (1.02 | ) | (1.32 | ) | 17.40 | (13.41 | ) | 295 | 1.03 | 1.13 | ||||||||||||||||||||||||||||||
12/31/2017 | 16.64 | .11 | 5.16 | 5.27 | (.26 | ) | (.23 | ) | (.49 | ) | 21.42 | 31.89 | 289 | 1.03 | .55 | |||||||||||||||||||||||||||||||||
12/31/2016 | 17.93 | .18 | .29 | .47 | (.21 | ) | (1.55 | ) | (1.76 | ) | 16.64 | 3.21 | 66 | 1.04 | 1.03 | |||||||||||||||||||||||||||||||||
12/31/2015 | 20.23 | .17 | (1.00 | ) | (.83 | ) | (.29 | ) | (1.18 | ) | (1.47 | ) | 17.93 | (4.75 | ) | 46 | 1.04 | .88 | ||||||||||||||||||||||||||||||
12/31/2014 | 21.16 | .07 | (.68 | ) | (.61 | ) | (.32 | ) | — | (.32 | ) | 20.23 | (2.88 | ) | 18 | 1.04 | .31 |
See end of tables for footnotes.
American Funds Insurance Series | 189 |
Financial highlights(continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period | Ratio of net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
New World Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 20.98 | $ | .18 | $ | 3.83 | $ | 4.01 | $ | (.05 | ) | $ | (.92 | ) | $ | (.97 | ) | $ | 24.02 | 19.23 | %4 | $ | 1,938 | .75 | %5 | 1.59 | %5 | |||||||||||||||||||||
12/31/2018 | 25.30 | .27 | (3.65 | ) | (3.38 | ) | (.27 | ) | (.67 | ) | (.94 | ) | 20.98 | (13.83 | ) | 1,702 | .77 | 1.11 | ||||||||||||||||||||||||||||||
12/31/2017 | 19.72 | .26 | 5.59 | 5.85 | (.27 | ) | — | (.27 | ) | 25.30 | 29.73 | 2,050 | .77 | 1.14 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 18.87 | .24 | .81 | 1.05 | (.20 | ) | — | (.20 | ) | 19.72 | 5.59 | 1,743 | .78 | 1.25 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 20.72 | .19 | (.71 | ) | (.52 | ) | (.17 | ) | (1.16 | ) | (1.33 | ) | 18.87 | (2.96 | ) | 1,562 | .79 | .92 | ||||||||||||||||||||||||||||||
12/31/2014 | 25.08 | .29 | 6 | (1.92 | ) | (1.63 | ) | (.29 | ) | (2.44 | ) | (2.73 | ) | 20.72 | (7.63 | ) | 1,433 | .78 | 1.23 | 6 | ||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 20.92 | .16 | 3.82 | 3.98 | (.05 | ) | (.92 | ) | (.97 | ) | 23.93 | 19.10 | 4 | 4 | 1.00 | 5 | 1.42 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 25.25 | .21 | (3.64 | ) | (3.43 | ) | (.23 | ) | (.67 | ) | (.90 | ) | 20.92 | (14.02 | ) | 2 | 1.02 | .91 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 20.14 | .13 | 5.24 | 5.37 | (.26 | ) | — | (.26 | ) | 25.25 | 26.72 | 4 | 1 | 1.00 | 5 | .53 | 5 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 20.79 | .15 | 3.79 | 3.94 | (.04 | ) | (.92 | ) | (.96 | ) | 23.77 | 19.07 | 4 | 949 | 1.00 | 5 | 1.33 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 25.07 | .20 | (3.61 | ) | (3.41 | ) | (.20 | ) | (.67 | ) | (.87 | ) | 20.79 | (14.04 | ) | 843 | 1.02 | .85 | ||||||||||||||||||||||||||||||
12/31/2017 | 19.54 | .20 | 5.55 | 5.75 | (.22 | ) | — | (.22 | ) | 25.07 | 29.44 | 1,055 | 1.02 | .89 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 18.71 | .19 | .79 | .98 | (.15 | ) | — | (.15 | ) | 19.54 | 5.26 | 911 | 1.03 | 1.00 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 20.54 | .14 | (.69 | ) | (.55 | ) | (.12 | ) | (1.16 | ) | (1.28 | ) | 18.71 | (3.14 | ) | 961 | 1.04 | .68 | ||||||||||||||||||||||||||||||
12/31/2014 | 24.88 | .24 | 6 | (1.91 | ) | (1.67 | ) | (.23 | ) | (2.44 | ) | (2.67 | ) | 20.54 | (7.87 | ) | 1,084 | 1.03 | 1.01 | 6 | ||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 20.71 | .13 | 3.78 | 3.91 | (.04 | ) | (.92 | ) | (.96 | ) | 23.66 | 18.96 | 4 | 570 | 1.25 | 5 | 1.11 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 24.99 | .14 | (3.59 | ) | (3.45 | ) | (.16 | ) | (.67 | ) | (.83 | ) | 20.71 | (14.25 | ) | 464 | 1.27 | .61 | ||||||||||||||||||||||||||||||
12/31/2017 | 19.51 | .14 | 5.52 | 5.66 | (.18 | ) | — | (.18 | ) | 24.99 | 29.06 | 427 | 1.27 | .61 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 18.69 | .14 | .80 | .94 | (.12 | ) | — | (.12 | ) | 19.51 | 5.04 | 240 | 1.28 | .75 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 20.56 | .08 | (.68 | ) | (.60 | ) | (.11 | ) | (1.16 | ) | (1.27 | ) | 18.69 | (3.37 | ) | 171 | 1.29 | .39 | ||||||||||||||||||||||||||||||
12/31/2014 | 24.99 | .09 | 6 | (1.83 | ) | (1.74 | ) | (.25 | ) | (2.44 | ) | (2.69 | ) | 20.56 | (8.13 | ) | 64 | 1.28 | .40 | 6 | ||||||||||||||||||||||||||||
Blue Chip Income and Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 12.38 | $ | .15 | $ | 1.21 | $ | 1.36 | $ | (.06 | ) | $ | (1.07 | ) | $ | (1.13 | ) | $ | 12.61 | 11.14 | %4 | $ | 5,316 | .41 | %5 | 2.34 | %5 | |||||||||||||||||||||
12/31/2018 | 14.96 | .31 | (1.44 | ) | (1.13 | ) | (.31 | ) | (1.14 | ) | (1.45 | ) | 12.38 | (8.45 | ) | 4,810 | .41 | 2.13 | ||||||||||||||||||||||||||||||
12/31/2017 | 13.53 | .32 | 1.96 | 2.28 | (.32 | ) | (.53 | ) | (.85 | ) | 14.96 | 17.30 | 5,581 | .41 | 2.27 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.62 | .31 | 1.97 | 2.28 | (.29 | ) | (1.08 | ) | (1.37 | ) | 13.53 | 19.06 | 5,099 | .41 | 2.39 | |||||||||||||||||||||||||||||||||
12/31/2015 | 14.69 | .31 | (.64 | ) | (.33 | ) | (.29 | ) | (1.45 | ) | (1.74 | ) | 12.62 | (2.72 | ) | 3,638 | .41 | 2.23 | ||||||||||||||||||||||||||||||
12/31/2014 | 13.12 | .46 | 6 | 1.59 | 2.05 | (.48 | ) | — | (.48 | ) | 14.69 | 15.69 | 3,542 | .42 | 3.31 | 6 | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 12.35 | .14 | 1.19 | 1.33 | (.06 | ) | (1.07 | ) | (1.13 | ) | 12.55 | 10.89 | 4 | 7 | .66 | 5 | 2.12 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 14.94 | .26 | (1.42 | ) | (1.16 | ) | (.29 | ) | (1.14 | ) | (1.43 | ) | 12.35 | (8.67 | ) | 3 | .66 | 1.84 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 13.75 | .28 | 1.75 | 2.03 | (.31 | ) | (.53 | ) | (.84 | ) | 14.94 | 15.21 | 4 | 1 | .65 | 5 | 2.01 | 5 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 12.24 | .14 | 1.17 | 1.31 | (.05 | ) | (1.07 | ) | (1.12 | ) | 12.43 | 10.89 | 4 | 3,011 | .66 | 5 | 2.09 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 14.80 | .27 | (1.42 | ) | (1.15 | ) | (.27 | ) | (1.14 | ) | (1.41 | ) | 12.24 | (8.66 | ) | 2,850 | .66 | 1.88 | ||||||||||||||||||||||||||||||
12/31/2017 | 13.39 | .28 | 1.94 | 2.22 | (.28 | ) | (.53 | ) | (.81 | ) | 14.80 | 17.04 | 3,551 | .66 | 2.02 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.51 | .28 | 1.94 | 2.22 | (.26 | ) | (1.08 | ) | (1.34 | ) | 13.39 | 18.70 | 3,412 | .66 | 2.16 | |||||||||||||||||||||||||||||||||
12/31/2015 | 14.57 | .27 | (.62 | ) | (.35 | ) | (.26 | ) | (1.45 | ) | (1.71 | ) | 12.51 | (2.93 | ) | 3,228 | .66 | 1.97 | ||||||||||||||||||||||||||||||
12/31/2014 | 13.02 | .44 | 6 | 1.55 | 1.99 | (.44 | ) | — | (.44 | ) | 14.57 | 15.36 | 3,722 | .67 | 3.14 | 6 | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 12.19 | .12 | 1.18 | 1.30 | (.05 | ) | (1.07 | ) | (1.12 | ) | 12.37 | 10.83 | 4 | 499 | .91 | 5 | 1.85 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 14.77 | .23 | (1.42 | ) | (1.19 | ) | (.25 | ) | (1.14 | ) | (1.39 | ) | 12.19 | (8.92 | ) | 368 | .91 | 1.62 | ||||||||||||||||||||||||||||||
12/31/2017 | 13.39 | .25 | 1.93 | 2.18 | (.27 | ) | (.53 | ) | (.80 | ) | 14.77 | 16.70 | 247 | .91 | 1.76 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.53 | .24 | 1.96 | 2.20 | (.26 | ) | (1.08 | ) | (1.34 | ) | 13.39 | 18.49 | 132 | .91 | 1.81 | |||||||||||||||||||||||||||||||||
12/31/2015 | 14.63 | .24 | (.63 | ) | (.39 | ) | (.26 | ) | (1.45 | ) | (1.71 | ) | 12.53 | (3.21 | ) | 32 | .91 | 1.75 | ||||||||||||||||||||||||||||||
12/31/2014 | 13.12 | .34 | 6 | 1.63 | 1.97 | (.46 | ) | — | (.46 | ) | 14.63 | 15.13 | 9 | .92 | 2.33 | 6 |
190 | American Funds Insurance Series |
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period | Ratio of net assets | Ratio of (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Global Growth and Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 13.02 | $ | .19 | $ | 2.33 | $ | 2.52 | $ | (.05 | ) | $ | (.76 | ) | $ | (.81 | ) | $ | 14.73 | 19.47 | %4 | $ | 573 | .64 | %5 | 2.68 | %5 | |||||||||||||||||||||
12/31/2018 | 15.81 | .29 | (1.62 | ) | (1.33 | ) | (.28 | ) | (1.18 | ) | (1.46 | ) | 13.02 | (9.36 | ) | 492 | .63 | 1.94 | ||||||||||||||||||||||||||||||
12/31/2017 | 13.02 | .35 | 3.06 | 3.41 | (.36 | ) | (.26 | ) | (.62 | ) | 15.81 | 26.40 | 485 | .63 | 2.43 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.35 | .28 | .66 | .94 | (.27 | ) | — | (.27 | ) | 13.02 | 7.61 | 571 | .63 | 2.18 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 12.78 | .36 | (.50 | ) | (.14 | ) | (.29 | ) | — | (.29 | ) | 12.35 | (1.14 | ) | 293 | .64 | 2.79 | |||||||||||||||||||||||||||||||
12/31/2014 | 12.53 | .43 | 6 | .31 | .74 | (.49 | ) | — | (.49 | ) | 12.78 | 6.00 | 200 | .63 | 3.34 | 6 | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 13.00 | .18 | 2.32 | 2.50 | (.05 | ) | (.76 | ) | (.81 | ) | 14.69 | 19.31 | 4 | 1 | .88 | 5 | 2.49 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 15.81 | .26 | (1.63 | ) | (1.37 | ) | (.26 | ) | (1.18 | ) | (1.44 | ) | 13.00 | (9.62 | ) | 1 | .88 | 1.74 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 13.21 | .18 | 3.03 | 3.21 | (.35 | ) | (.26 | ) | (.61 | ) | 15.81 | 24.54 | 4 | — | 8 | .84 | 5 | 1.20 | 5 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 12.99 | .17 | 2.34 | 2.51 | (.05 | ) | (.76 | ) | (.81 | ) | 14.69 | 19.39 | 4 | 1,357 | .89 | 5 | 2.41 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 15.78 | .26 | (1.63 | ) | (1.37 | ) | (.24 | ) | (1.18 | ) | (1.42 | ) | 12.99 | (9.63 | ) | 1,228 | .88 | 1.70 | ||||||||||||||||||||||||||||||
12/31/2017 | 13.00 | .31 | 3.05 | 3.36 | (.32 | ) | (.26 | ) | (.58 | ) | 15.78 | 26.06 | 1,538 | .88 | 2.11 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.33 | .25 | .65 | .90 | (.23 | ) | — | (.23 | ) | 13.00 | 7.34 | 1,405 | .88 | 1.98 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 12.75 | .22 | (.39 | ) | (.17 | ) | (.25 | ) | — | (.25 | ) | 12.33 | (1.34 | ) | 1,479 | .89 | 1.73 | |||||||||||||||||||||||||||||||
12/31/2014 | 12.51 | .41 | 6 | .29 | .70 | (.46 | ) | — | (.46 | ) | 12.75 | 5.64 | 1,685 | .88 | 3.22 | 6 | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 12.81 | .16 | 2.29 | 2.45 | (.04 | ) | (.76 | ) | (.80 | ) | 14.46 | 19.24 | 4 | 122 | 1.14 | 5 | 2.20 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 15.60 | .21 | (1.60 | ) | (1.39 | ) | (.22 | ) | (1.18 | ) | (1.40 | ) | 12.81 | (9.89 | ) | 95 | 1.13 | 1.43 | ||||||||||||||||||||||||||||||
12/31/2017 | 12.89 | .22 | 3.08 | 3.30 | (.33 | ) | (.26 | ) | (.59 | ) | 15.60 | 25.83 | 79 | 1.14 | 1.49 | |||||||||||||||||||||||||||||||||
12/31/2016 | 12.26 | .21 | .65 | .86 | (.23 | ) | — | (.23 | ) | 12.89 | 7.04 | 16 | 1.13 | 1.63 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 12.71 | .17 | (.37 | ) | (.20 | ) | (.25 | ) | — | (.25 | ) | 12.26 | (1.60 | ) | 5 | 1.14 | 1.32 | |||||||||||||||||||||||||||||||
12/31/2014 | 12.50 | .30 | 6 | .37 | .67 | (.46 | ) | — | (.46 | ) | 12.71 | 5.41 | 1 | 1.13 | 2.30 | 6 |
See end of tables for footnotes.
American Funds Insurance Series | 191 |
Financial highlights(continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period | Ratio of expenses to average net assets | Ratio of (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Growth-Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 45.39 | $ | .48 | $ | 6.75 | $ | 7.23 | $ | (.17 | ) | $ | (5.16 | ) | $ | (5.33 | ) | $ | 47.29 | 16.15 | %4 | $ | 19,494 | .28 | %5 | 1.93 | %5 | |||||||||||||||||||||
12/31/2018 | 50.22 | .84 | (1.25 | ) | (.41 | ) | (.84 | ) | (3.58 | ) | (4.42 | ) | 45.39 | (1.55 | ) | 16,783 | .28 | 1.65 | ||||||||||||||||||||||||||||||
12/31/2017 | 44.41 | .81 | 8.89 | 9.70 | (.78 | ) | (3.11 | ) | (3.89 | ) | 50.22 | 22.68 | 15,765 | .28 | 1.69 | |||||||||||||||||||||||||||||||||
12/31/2016 | 45.40 | .79 | 4.09 | 4.88 | (.75 | ) | (5.12 | ) | (5.87 | ) | 44.41 | 11.80 | 12,588 | .29 | 1.79 | |||||||||||||||||||||||||||||||||
12/31/2015 | 52.76 | .79 | .37 | 1.16 | (.75 | ) | (7.77 | ) | (8.52 | ) | 45.40 | 1.72 | 10,747 | .29 | 1.59 | |||||||||||||||||||||||||||||||||
12/31/2014 | 50.72 | .81 | 4.57 | 5.38 | (.80 | ) | (2.54 | ) | (3.34 | ) | 52.76 | 10.91 | 10,812 | .29 | 1.56 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 45.28 | .41 | 6.74 | 7.15 | (.16 | ) | (5.16 | ) | (5.32 | ) | 47.11 | 16.00 | 4 | 9 | .53 | 5 | 1.69 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 50.15 | .72 | (1.25 | ) | (.53 | ) | (.76 | ) | (3.58 | ) | (4.34 | ) | 45.28 | (1.78 | ) | 7 | .53 | 1.43 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 45.39 | .67 | 7.96 | 8.63 | (.76 | ) | (3.11 | ) | (3.87 | ) | 50.15 | 19.83 | 4 | 2 | .52 | 5 | 1.41 | 5 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 44.90 | .41 | 6.68 | 7.09 | (.15 | ) | (5.16 | ) | (5.31 | ) | 46.68 | 16.02 | 4 | 13,225 | .53 | 5 | 1.68 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 49.71 | .71 | (1.23 | ) | (.52 | ) | (.71 | ) | (3.58 | ) | (4.29 | ) | 44.90 | (1.79 | ) | 12,035 | .53 | 1.40 | ||||||||||||||||||||||||||||||
12/31/2017 | 44.00 | .68 | 8.80 | 9.48 | (.66 | ) | (3.11 | ) | (3.77 | ) | 49.71 | 22.38 | 13,930 | .53 | 1.45 | |||||||||||||||||||||||||||||||||
12/31/2016 | 45.04 | .67 | 4.05 | 4.72 | (.64 | ) | (5.12 | ) | (5.76 | ) | 44.00 | 11.51 | 12,854 | .54 | 1.54 | |||||||||||||||||||||||||||||||||
12/31/2015 | 52.41 | .66 | .37 | 1.03 | (.63 | ) | (7.77 | ) | (8.40 | ) | 45.04 | 1.45 | 12,895 | .54 | 1.34 | |||||||||||||||||||||||||||||||||
12/31/2014 | 50.40 | .67 | 4.55 | 5.22 | (.67 | ) | (2.54 | ) | (3.21 | ) | 52.41 | 10.63 | 14,337 | .54 | 1.31 | |||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 45.47 | .43 | 6.77 | 7.20 | (.16 | ) | (5.16 | ) | (5.32 | ) | 47.35 | 16.05 | 4 | 153 | .46 | 5 | 1.75 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 50.29 | .75 | (1.25 | ) | (.50 | ) | (.74 | ) | (3.58 | ) | (4.32 | ) | 45.47 | (1.72 | ) | 140 | .46 | 1.47 | ||||||||||||||||||||||||||||||
12/31/2017 | 44.47 | .72 | 8.90 | 9.62 | (.69 | ) | (3.11 | ) | (3.80 | ) | 50.29 | 22.47 | 168 | .46 | 1.52 | |||||||||||||||||||||||||||||||||
12/31/2016 | 45.46 | .71 | 4.09 | 4.80 | (.67 | ) | (5.12 | ) | (5.79 | ) | 44.47 | 11.59 | 156 | .47 | 1.61 | |||||||||||||||||||||||||||||||||
12/31/2015 | 52.82 | .70 | .37 | 1.07 | (.66 | ) | (7.77 | ) | (8.43 | ) | 45.46 | 1.53 | 161 | .47 | 1.41 | |||||||||||||||||||||||||||||||||
12/31/2014 | 50.77 | .71 | 4.59 | 5.30 | (.71 | ) | (2.54 | ) | (3.25 | ) | 52.82 | 10.71 | 185 | .47 | 1.38 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 44.47 | .35 | 6.62 | 6.97 | (.14 | ) | (5.16 | ) | (5.30 | ) | 46.14 | 15.89 | 4 | 1,088 | .78 | 5 | 1.43 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 49.31 | .58 | (1.23 | ) | (.65 | ) | (.61 | ) | (3.58 | ) | (4.19 | ) | 44.47 | (2.05 | ) | 899 | .78 | 1.15 | ||||||||||||||||||||||||||||||
12/31/2017 | 43.73 | .56 | 8.73 | 9.29 | (.60 | ) | (3.11 | ) | (3.71 | ) | 49.31 | 22.08 | 827 | .78 | 1.19 | |||||||||||||||||||||||||||||||||
12/31/2016 | 44.82 | .56 | 4.02 | 4.58 | (.55 | ) | (5.12 | ) | (5.67 | ) | 43.73 | 11.25 | 495 | .79 | 1.29 | |||||||||||||||||||||||||||||||||
12/31/2015 | 52.39 | .58 | .33 | .91 | (.71 | ) | (7.77 | ) | (8.48 | ) | 44.82 | 1.21 | 410 | .79 | 1.25 | |||||||||||||||||||||||||||||||||
12/31/2014 | 50.56 | .58 | 4.51 | 5.09 | (.72 | ) | (2.54 | ) | (3.26 | ) | 52.39 | 10.34 | 30 | .79 | 1.11 |
192 | American Funds Insurance Series |
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
International Growth and Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 15.35 | $ | .32 | $ | 1.95 | $ | 2.27 | $ | (.07 | ) | $ | (.19 | ) | $ | (.26 | ) | $ | 17.36 | 14.82 | %4 | $ | 1,096 | .65 | %5 | 3.84 | %5 | |||||||||||||||||||||
12/31/2018 | 17.72 | .45 | (2.39 | ) | (1.94 | ) | (.43 | ) | — | (.43 | ) | 15.35 | (11.00 | ) | 1,034 | .65 | 2.62 | |||||||||||||||||||||||||||||||
12/31/2017 | 14.48 | .46 | 3.20 | 3.66 | (.42 | ) | — | (.42 | ) | 17.72 | 25.31 | 1,121 | .66 | 2.75 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 14.72 | .43 | (.19 | ) | .24 | (.42 | ) | (.06 | ) | (.48 | ) | 14.48 | 1.71 | 820 | .68 | 2.93 | ||||||||||||||||||||||||||||||||
12/31/2015 | 16.27 | .42 | (1.25 | ) | (.83 | ) | (.38 | ) | (.34 | ) | (.72 | ) | 14.72 | (5.34 | ) | 707 | .68 | 2.60 | ||||||||||||||||||||||||||||||
12/31/2014 | 17.48 | .58 | 6 | (1.09 | ) | (.51 | ) | (.53 | ) | (.17 | ) | (.70 | ) | 16.27 | (2.93 | ) | 740 | .68 | 3.32 | 6 | ||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 15.33 | .30 | 1.95 | 2.25 | (.06 | ) | (.19 | ) | (.25 | ) | 17.33 | 14.74 | 4 | 2 | .90 | 5 | 3.61 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 17.70 | .41 | (2.39 | ) | (1.98 | ) | (.39 | ) | — | (.39 | ) | 15.33 | (11.24 | ) | 2 | .90 | 2.35 | |||||||||||||||||||||||||||||||
12/31/20172,7 | 14.69 | .34 | 3.08 | 3.42 | (.41 | ) | — | (.41 | ) | 17.70 | 23.36 | 4 | 2 | .91 | 5 | 1.99 | 5 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 15.30 | .30 | 1.95 | 2.25 | (.06 | ) | (.19 | ) | (.25 | ) | 17.30 | 14.75 | 4 | 248 | .90 | 5 | 3.60 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 17.66 | .41 | (2.38 | ) | (1.97 | ) | (.39 | ) | — | (.39 | ) | 15.30 | (11.23 | ) | 230 | .90 | 2.38 | |||||||||||||||||||||||||||||||
12/31/2017 | 14.43 | .43 | 3.17 | 3.60 | (.37 | ) | — | (.37 | ) | 17.66 | 25.03 | 276 | .91 | 2.60 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 14.68 | .40 | (.21 | ) | .19 | (.38 | ) | (.06 | ) | (.44 | ) | 14.43 | 1.44 | 244 | .93 | 2.72 | ||||||||||||||||||||||||||||||||
12/31/2015 | 16.22 | .38 | (1.24 | ) | (.86 | ) | (.34 | ) | (.34 | ) | (.68 | ) | 14.68 | (5.60 | ) | 254 | .93 | 2.32 | ||||||||||||||||||||||||||||||
12/31/2014 | 17.43 | .56 | 6 | (1.10 | ) | (.54 | ) | (.50 | ) | (.17 | ) | (.67 | ) | 16.22 | (3.15 | ) | 248 | .93 | 3.21 | 6 | ||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 15.22 | .28 | 1.93 | 2.21 | (.05 | ) | (.19 | ) | (.24 | ) | 17.19 | 14.60 | 4 | 88 | 1.15 | 5 | 3.37 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 17.58 | .36 | (2.36 | ) | (2.00 | ) | (.36 | ) | — | (.36 | ) | 15.22 | (11.46 | ) | 71 | 1.15 | 2.10 | |||||||||||||||||||||||||||||||
12/31/2017 | 14.38 | .37 | 3.18 | 3.55 | (.35 | ) | — | (.35 | ) | 17.58 | 24.72 | 63 | 1.16 | 2.24 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 14.63 | .36 | (.19 | ) | .17 | (.36 | ) | (.06 | ) | (.42 | ) | 14.38 | 1.18 | 37 | 1.18 | 2.43 | ||||||||||||||||||||||||||||||||
12/31/2015 | 16.19 | .33 | (1.23 | ) | (.90 | ) | (.32 | ) | (.34 | ) | (.66 | ) | 14.63 | (5.82 | ) | 32 | 1.18 | 2.02 | ||||||||||||||||||||||||||||||
12/31/2014 | 17.45 | .26 | 6 | (.85 | ) | (.59 | ) | (.50 | ) | (.17 | ) | (.67 | ) | 16.19 | (3.39 | ) | 20 | 1.18 | 1.52 | 6 |
See end of tables for footnotes.
American Funds Insurance Series | 193 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements | Ratio of expenses to average net assets after reimbursements | Ratio of net income to average net assets | ||||||||||||||||||||||||||||||||||||||||
Capital Income Builder | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 9.37 | $ | .18 | $ | .76 | $ | .94 | $ | (.16 | ) | $ | — | $ | (.16 | ) | $ | 10.15 | 10.06 | %4 | $ | 421 | .53 | %5 | .52 | %5 | 3.70 | %5 | ||||||||||||||||||||||||
12/31/2018 | 10.40 | .31 | (1.00 | ) | (.69 | ) | (.32 | ) | (.02 | ) | (.34 | ) | 9.37 | (6.77 | ) | 317 | .54 | .54 | 3.08 | |||||||||||||||||||||||||||||||||
12/31/2017 | 9.46 | .32 | .93 | 1.25 | (.31 | ) | — | (.31 | ) | 10.40 | 13.29 | 254 | .54 | .54 | 3.21 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 9.40 | .32 | .07 | .39 | (.33 | ) | — | (.33 | ) | 9.46 | 4.17 | 156 | .54 | .54 | 3.39 | |||||||||||||||||||||||||||||||||||||
12/31/2015 | 9.81 | .28 | (.40 | ) | (.12 | ) | (.29 | ) | — | (.29 | ) | 9.40 | (1.23 | ) | 80 | .56 | .56 | 2.88 | ||||||||||||||||||||||||||||||||||
12/31/20142,11 | 10.00 | .19 | (.18 | ) | .01 | (.19 | ) | (.01 | ) | (.20 | ) | 9.81 | .12 | 4 | 20 | .56 | 5 | .56 | 5 | 2.87 | 5 | |||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 9.36 | .17 | .76 | .93 | (.15 | ) | — | (.15 | ) | 10.14 | 9.95 | 4 | 5 | .78 | 5 | .77 | 5 | 3.45 | 5 | |||||||||||||||||||||||||||||||||
12/31/2018 | 10.39 | .28 | (.99 | ) | (.71 | ) | (.30 | ) | (.02 | ) | (.32 | ) | 9.36 | (7.01 | ) | 2 | .79 | .79 | 2.82 | |||||||||||||||||||||||||||||||||
12/31/20172,7 | 9.57 | .27 | .84 | 1.11 | (.29 | ) | — | (.29 | ) | 10.39 | 11.72 | 4 | 1 | .79 | 5 | .79 | 5 | 2.63 | 5 | |||||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 9.36 | .17 | .77 | .94 | (.15 | ) | — | (.15 | ) | 10.15 | 10.05 | 4 | 5 | .78 | 5 | .77 | 5 | 3.42 | 5 | |||||||||||||||||||||||||||||||||
12/31/2018 | 10.40 | .28 | (1.00 | ) | (.72 | ) | (.30 | ) | (.02 | ) | (.32 | ) | 9.36 | (7.08 | ) | 4 | .79 | .79 | 2.83 | |||||||||||||||||||||||||||||||||
12/31/2017 | 9.46 | .29 | .93 | 1.22 | (.28 | ) | — | (.28 | ) | 10.40 | 13.04 | 1 | .79 | .79 | 2.82 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 9.40 | .27 | .11 | .38 | (.32 | ) | — | (.32 | ) | 9.46 | 4.08 | — | 8 | .80 | .80 | 2.82 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 9.81 | .31 | (.43 | ) | (.12 | ) | (.29 | ) | — | (.29 | ) | 9.40 | (1.23 | )12 | — | 8 | .46 | 12 | .46 | 12 | 3.12 | 12 | ||||||||||||||||||||||||||||||
12/31/20142,11 | 10.00 | .20 | (.19 | ) | .01 | (.19 | ) | (.01 | ) | (.20 | ) | 9.81 | .12 | 4,12 | — | 8 | .47 | 5,12 | .47 | 5,12 | 2.94 | 5,12 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 9.35 | .16 | .76 | .92 | (.14 | ) | — | (.14 | ) | 10.13 | 9.82 | 4 | 409 | 1.03 | 5 | 1.02 | 5 | 3.17 | 5 | |||||||||||||||||||||||||||||||||
12/31/2018 | 10.38 | .26 | (1.00 | ) | (.74 | ) | (.27 | ) | (.02 | ) | (.29 | ) | 9.35 | (7.25 | ) | 352 | 1.04 | 1.04 | 2.58 | |||||||||||||||||||||||||||||||||
12/31/2017 | 9.45 | .27 | .92 | 1.19 | (.26 | ) | — | (.26 | ) | 10.38 | 12.65 | 338 | 1.04 | 1.04 | 2.72 | |||||||||||||||||||||||||||||||||||||
12/31/2016 | 9.38 | .27 | .08 | .35 | (.28 | ) | — | (.28 | ) | 9.45 | 3.78 | 256 | 1.04 | 1.04 | 2.88 | |||||||||||||||||||||||||||||||||||||
12/31/2015 | 9.80 | .25 | (.42 | ) | (.17 | ) | (.25 | ) | — | (.25 | ) | 9.38 | (1.79 | ) | 157 | 1.05 | 1.05 | 2.55 | ||||||||||||||||||||||||||||||||||
12/31/20142,11 | 10.00 | .14 | (.16 | ) | (.02 | ) | (.17 | ) | (.01 | ) | (.18 | ) | 9.80 | (.21 | )4 | 55 | 1.06 | 5 | 1.06 | 5 | 2.08 | 5 |
194 | American Funds Insurance Series |
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Asset Allocation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 21.29 | $ | .27 | $ | 2.29 | $ | 2.56 | $ | (.11 | ) | $ | (1.19 | ) | $ | (1.30 | ) | $ | 22.55 | 12.11 | %4 | $ | 16,367 | .28 | %5 | 2.37 | %5 | |||||||||||||||||||||
12/31/2018 | 23.71 | .48 | (1.43 | ) | (.95 | ) | (.44 | ) | (1.03 | ) | (1.47 | ) | 21.29 | (4.35 | ) | 14,627 | .28 | 2.04 | ||||||||||||||||||||||||||||||
12/31/2017 | 21.68 | .44 | 3.06 | 3.50 | (.41 | ) | (1.06 | ) | (1.47 | ) | 23.71 | 16.51 | 16,556 | .29 | 1.90 | |||||||||||||||||||||||||||||||||
12/31/2016 | 20.62 | .42 | 1.54 | 1.96 | (.39 | ) | (.51 | ) | (.90 | ) | 21.68 | 9.69 | 13,008 | .29 | 1.97 | |||||||||||||||||||||||||||||||||
12/31/2015 | 22.23 | .40 | (.02 | ) | .38 | (.40 | ) | (1.59 | ) | (1.99 | ) | 20.62 | 1.64 | 10,913 | .29 | 1.85 | ||||||||||||||||||||||||||||||||
12/31/2014 | 22.49 | .44 | .81 | 1.25 | (.39 | ) | (1.12 | ) | (1.51 | ) | 22.23 | 5.66 | 11,997 | .30 | 1.95 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 21.26 | .24 | 2.28 | 2.52 | (.10 | ) | (1.19 | ) | (1.29 | ) | 22.49 | 11.95 | 4 | 9 | .53 | 5 | 2.12 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 23.69 | .42 | (1.42 | ) | (1.00 | ) | (.40 | ) | (1.03 | ) | (1.43 | ) | 21.26 | (4.58 | ) | 7 | .53 | 1.82 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 21.97 | .39 | 2.78 | 3.17 | (.39 | ) | (1.06 | ) | (1.45 | ) | 23.69 | 14.78 | 4 | 4 | .53 | 5 | 1.69 | 5 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 21.08 | .24 | 2.27 | 2.51 | (.10 | ) | (1.19 | ) | (1.29 | ) | 22.30 | 12.00 | 4 | 4,992 | .54 | 5 | 2.11 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 23.49 | .41 | (1.41 | ) | (1.00 | ) | (.38 | ) | (1.03 | ) | (1.41 | ) | 21.08 | (4.60 | ) | 4,668 | .53 | 1.78 | ||||||||||||||||||||||||||||||
12/31/2017 | 21.49 | .37 | 3.04 | 3.41 | (.35 | ) | (1.06 | ) | (1.41 | ) | 23.49 | 16.23 | 5,480 | .54 | 1.64 | |||||||||||||||||||||||||||||||||
12/31/2016 | 20.45 | .36 | 1.53 | 1.89 | (.34 | ) | (.51 | ) | (.85 | ) | 21.49 | 9.41 | 5,144 | .54 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/2015 | 22.06 | .34 | (.01 | ) | .33 | (.35 | ) | (1.59 | ) | (1.94 | ) | 20.45 | 1.40 | 5,008 | .54 | 1.60 | ||||||||||||||||||||||||||||||||
12/31/2014 | 22.33 | .37 | .81 | 1.18 | (.33 | ) | (1.12 | ) | (1.45 | ) | 22.06 | 5.40 | 5,494 | .55 | 1.69 | |||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 21.32 | .25 | 2.29 | 2.54 | (.10 | ) | (1.19 | ) | (1.29 | ) | 22.57 | 12.01 | 4 | 32 | .47 | 5 | 2.18 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 23.73 | .43 | (1.41 | ) | (.98 | ) | (.40 | ) | (1.03 | ) | (1.43 | ) | 21.32 | (4.49 | ) | 29 | .46 | 1.85 | ||||||||||||||||||||||||||||||
12/31/2017 | 21.70 | .39 | 3.07 | 3.46 | (.37 | ) | (1.06 | ) | (1.43 | ) | 23.73 | 16.29 | 38 | .47 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/2016 | 20.64 | .38 | 1.54 | 1.92 | (.35 | ) | (.51 | ) | (.86 | ) | 21.70 | 9.49 | 35 | .47 | 1.79 | |||||||||||||||||||||||||||||||||
12/31/2015 | 22.25 | .36 | (.02 | ) | .34 | (.36 | ) | (1.59 | ) | (1.95 | ) | 20.64 | 1.46 | 36 | .47 | 1.67 | ||||||||||||||||||||||||||||||||
12/31/2014 | 22.51 | .39 | .81 | 1.20 | (.34 | ) | (1.12 | ) | (1.46 | ) | 22.25 | 5.47 | 40 | .48 | 1.76 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 20.99 | .21 | 2.26 | 2.47 | (.09 | ) | (1.19 | ) | (1.28 | ) | 22.18 | 11.86 | 4 | 4,071 | .78 | 5 | 1.87 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 23.40 | .35 | (1.40 | ) | (1.05 | ) | (.33 | ) | (1.03 | ) | (1.36 | ) | 20.99 | (4.83 | ) | 3,594 | .78 | 1.54 | ||||||||||||||||||||||||||||||
12/31/2017 | 21.43 | .32 | 3.02 | 3.34 | (.31 | ) | (1.06 | ) | (1.37 | ) | 23.40 | 15.91 | 3,582 | .79 | 1.40 | |||||||||||||||||||||||||||||||||
12/31/2016 | 20.40 | .31 | 1.53 | 1.84 | (.30 | ) | (.51 | ) | (.81 | ) | 21.43 | 9.16 | 2,861 | .79 | 1.47 | |||||||||||||||||||||||||||||||||
12/31/2015 | 22.11 | .30 | (.02 | ) | .28 | (.40 | ) | (1.59 | ) | (1.99 | ) | 20.40 | 1.14 | 2,414 | .79 | 1.45 | ||||||||||||||||||||||||||||||||
12/31/2014 | 22.46 | .34 | .79 | 1.13 | (.36 | ) | (1.12 | ) | (1.48 | ) | 22.11 | 5.16 | 32 | .80 | 1.55 |
See end of tables for footnotes.
American Funds Insurance Series | 195 |
Financial highlights(continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Global Balanced Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 11.67 | $ | .15 | $ | 1.37 | $ | 1.52 | $ | (.02 | ) | $ | (.01 | ) | $ | (.03 | ) | $ | 13.16 | 13.01 | %4 | $ | 129 | .70 | %5 | 2.41 | %5 | |||||||||||||||||||||
12/31/2018 | 12.75 | .23 | (.96 | ) | (.73 | ) | (.20 | ) | (.15 | ) | (.35 | ) | 11.67 | (5.81 | ) | 110 | .72 | 1.82 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.08 | .21 | 1.99 | 2.20 | (.15 | ) | (.38 | ) | (.53 | ) | 12.75 | 19.91 | 93 | .72 | 1.68 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.74 | .19 | .32 | .51 | (.17 | ) | — | (.17 | ) | 11.08 | 4.73 | 64 | .72 | 1.73 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.11 | .20 | (.28 | ) | (.08 | ) | (.14 | ) | (.15 | ) | (.29 | ) | 10.74 | (.69 | ) | 47 | .72 | 1.80 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.37 | .25 | 6 | (.03 | ) | .22 | (.18 | ) | (.30 | ) | (.48 | ) | 11.11 | 1.87 | 37 | .71 | 2.14 | 6 | ||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.65 | .13 | 1.38 | 1.51 | (.02 | ) | (.01 | ) | (.03 | ) | 13.13 | 12.95 | 4 | 2 | .95 | 5 | 2.15 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 12.74 | .18 | (.94 | ) | (.76 | ) | (.18 | ) | (.15 | ) | (.33 | ) | 11.65 | (6.03 | ) | 2 | .98 | 1.44 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 11.18 | .16 | 1.92 | 2.08 | (.14 | ) | (.38 | ) | (.52 | ) | 12.74 | 18.71 | 4 | — | 8 | .94 | 5 | 1.27 | 5 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.65 | .13 | 1.37 | 1.50 | (.02 | ) | (.01 | ) | (.03 | ) | 13.12 | 12.86 | 4 | 201 | .95 | 5 | 2.14 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 12.72 | .20 | (.96 | ) | (.76 | ) | (.16 | ) | (.15 | ) | (.31 | ) | 11.65 | (6.01 | ) | 185 | .97 | 1.57 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.06 | .18 | 1.98 | 2.16 | (.12 | ) | (.38 | ) | (.50 | ) | 12.72 | 19.57 | 210 | .96 | 1.43 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.72 | .16 | .32 | .48 | (.14 | ) | — | (.14 | ) | 11.06 | 4.48 | 178 | .97 | 1.48 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.09 | .18 | (.28 | ) | (.10 | ) | (.12 | ) | (.15 | ) | (.27 | ) | 10.72 | (.95 | ) | 171 | .97 | 1.60 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.35 | .22 | 6 | (.03 | ) | .19 | (.15 | ) | (.30 | ) | (.45 | ) | 11.09 | 1.63 | 179 | .96 | 1.88 | 6 | ||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.55 | .12 | 1.36 | 1.48 | (.02 | ) | (.01 | ) | (.03 | ) | 13.00 | 12.80 | 4 | 84 | 1.20 | 5 | 1.91 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 12.63 | .17 | (.96 | ) | (.79 | ) | (.14 | ) | (.15 | ) | (.29 | ) | 11.55 | (6.31 | ) | 69 | 1.22 | 1.34 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.00 | .13 | 1.99 | 2.12 | (.11 | ) | (.38 | ) | (.49 | ) | 12.63 | 19.38 | 51 | 1.22 | 1.07 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.69 | .12 | .33 | .45 | (.14 | ) | — | (.14 | ) | 11.00 | 4.21 | 10 | 1.24 | 1.12 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.09 | .06 | (.17 | ) | (.11 | ) | (.14 | ) | (.15 | ) | (.29 | ) | 10.69 | (1.00 | ) | 1 | 1.34 | .58 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.35 | .24 | 6 | (.02 | ) | .22 | (.18 | ) | (.30 | ) | (.48 | ) | 11.09 | 1.88 | 12 | — | 8 | .67 | 12 | 2.07 | 6,12 | |||||||||||||||||||||||||||
Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 10.47 | $ | .16 | $ | .55 | $ | .71 | $ | (.06 | ) | $ | — | $ | (.06 | ) | $ | 11.12 | 6.81 | %4 | $ | 6,397 | .38 | %5 | 2.95 | %5 | ||||||||||||||||||||||
12/31/2018 | 10.82 | .29 | (.35 | ) | (.06 | ) | (.28 | ) | (.01 | ) | (.29 | ) | 10.47 | (.45 | ) | 5,962 | .38 | 2.70 | ||||||||||||||||||||||||||||||
12/31/2017 | 10.80 | .24 | .18 | .42 | (.24 | ) | (.16 | ) | (.40 | ) | 10.82 | 3.88 | 6,434 | .38 | 2.19 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.70 | .21 | .14 | .35 | (.21 | ) | (.04 | ) | (.25 | ) | 10.80 | 3.27 | 6,829 | .38 | 1.91 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.08 | .22 | (.17 | ) | .05 | (.21 | ) | (.22 | ) | (.43 | ) | 10.70 | .45 | 5,731 | .38 | 1.95 | ||||||||||||||||||||||||||||||||
12/31/2014 | 10.73 | .23 | .37 | .60 | (.25 | ) | — | 9 | (.25 | ) | 11.08 | 5.59 | 4,977 | .39 | 2.03 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 10.45 | .14 | .55 | .69 | (.06 | ) | — | (.06 | ) | 11.08 | 6.61 | 4 | 5 | .63 | 5 | 2.71 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.80 | .26 | (.33 | ) | (.07 | ) | (.27 | ) | (.01 | ) | (.28 | ) | 10.45 | (.60 | ) | 3 | .63 | 2.50 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 10.82 | .22 | .15 | .37 | (.23 | ) | (.16 | ) | (.39 | ) | 10.80 | 3.46 | 4 | 1 | .62 | 5 | 2.01 | 5 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 10.34 | .14 | .55 | .69 | (.06 | ) | — | (.06 | ) | 10.97 | 6.66 | 4 | 3,602 | .63 | 5 | 2.70 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.69 | .26 | (.34 | ) | (.08 | ) | (.26 | ) | (.01 | ) | (.27 | ) | 10.34 | (.71 | ) | 3,524 | .63 | 2.45 | ||||||||||||||||||||||||||||||
12/31/2017 | 10.67 | .21 | .18 | .39 | (.21 | ) | (.16 | ) | (.37 | ) | 10.69 | 3.67 | 3,966 | .63 | 1.94 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.58 | .18 | .13 | .31 | (.18 | ) | (.04 | ) | (.22 | ) | 10.67 | 2.95 | 3,959 | .63 | 1.65 | |||||||||||||||||||||||||||||||||
12/31/2015 | 10.95 | .18 | (.15 | ) | .03 | (.18 | ) | (.22 | ) | (.40 | ) | 10.58 | .28 | 4,135 | .63 | 1.69 | ||||||||||||||||||||||||||||||||
12/31/2014 | 10.61 | .20 | .36 | .56 | (.22 | ) | — | 9 | (.22 | ) | 10.95 | 5.28 | 4,565 | .64 | 1.79 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 10.33 | .13 | .54 | .67 | (.05 | ) | — | (.05 | ) | 10.95 | 6.54 | 4 | 435 | .88 | 5 | 2.45 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.68 | .23 | (.33 | ) | (.10 | ) | (.24 | ) | (.01 | ) | (.25 | ) | 10.33 | (.89 | ) | 366 | .88 | 2.22 | ||||||||||||||||||||||||||||||
12/31/2017 | 10.70 | .19 | .16 | .35 | (.21 | ) | (.16 | ) | (.37 | ) | 10.68 | 3.29 | 297 | .88 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.61 | .15 | .15 | .30 | (.17 | ) | (.04 | ) | (.21 | ) | 10.70 | 2.80 | 102 | .88 | 1.41 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.01 | .16 | (.16 | ) | — | (.18 | ) | (.22 | ) | (.40 | ) | 10.61 | (.08 | ) | 59 | .88 | 1.47 | |||||||||||||||||||||||||||||||
12/31/2014 | 10.69 | .16 | .39 | .55 | (.23 | ) | — | 9 | (.23 | ) | 11.01 | 5.15 | 29 | .89 | 1.43 |
196 | American Funds Insurance Series |
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Global Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 11.42 | $ | .16 | $ | .59 | $ | .75 | $ | (.09 | ) | $ | — | $ | (.09 | ) | $ | 12.08 | 6.59 | %4 | $ | 1,065 | .57 | %5 | 2.82 | %5 | ||||||||||||||||||||||
12/31/2018 | 11.88 | .30 | (.44 | ) | (.14 | ) | (.28 | ) | (.04 | ) | (.32 | ) | 11.42 | (1.14 | ) | 1,015 | .57 | 2.56 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.22 | .28 | .52 | .80 | (.07 | ) | (.07 | ) | (.14 | ) | 11.88 | 7.11 | 1,273 | .56 | 2.37 | |||||||||||||||||||||||||||||||||
12/31/2016 | 11.01 | .26 | .06 | .32 | (.09 | ) | (.02 | ) | (.11 | ) | 11.22 | 2.92 | 1,115 | .57 | 2.26 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.77 | .27 | (.71 | ) | (.44 | ) | (.01 | ) | (.31 | ) | (.32 | ) | 11.01 | (3.75 | ) | 1,032 | .57 | 2.34 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.88 | .29 | (.08 | ) | .21 | (.21 | ) | (.11 | ) | (.32 | ) | 11.77 | 1.71 | 1,194 | .57 | 2.35 | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.41 | .15 | .59 | .74 | (.09 | ) | — | (.09 | ) | 12.06 | 6.47 | 4 | 1 | .82 | 5 | 2.57 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 11.87 | .27 | (.43 | ) | (.16 | ) | (.26 | ) | (.04 | ) | (.30 | ) | 11.41 | (1.29 | ) | 1 | .82 | 2.36 | ||||||||||||||||||||||||||||||
12/31/20172,7 | 11.22 | .26 | .52 | .78 | (.06 | ) | (.07 | ) | (.13 | ) | 11.87 | 7.00 | 4 | — | 8 | .72 | 5 | 2.27 | 5 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.34 | .15 | .58 | .73 | (.09 | ) | — | (.09 | ) | 11.98 | 6.41 | 4 | 1,047 | .82 | 5 | 2.57 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 11.79 | .27 | (.43 | ) | (.16 | ) | (.25 | ) | (.04 | ) | (.29 | ) | 11.34 | (1.33 | ) | 1,032 | .82 | 2.32 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.14 | .25 | .51 | .76 | (.04 | ) | (.07 | ) | (.11 | ) | 11.79 | 6.86 | 1,164 | .81 | 2.12 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.93 | .23 | .07 | .30 | (.07 | ) | (.02 | ) | (.09 | ) | 11.14 | 2.71 | 1,121 | .82 | 2.01 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.72 | .24 | (.71 | ) | (.47 | ) | (.01 | ) | (.31 | ) | (.32 | ) | 10.93 | (4.07 | ) | 1,208 | .82 | 2.09 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.81 | .26 | (.09 | ) | .17 | (.15 | ) | (.11 | ) | (.26 | ) | 11.72 | 1.39 | 1,386 | .82 | 2.11 | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.24 | .13 | .58 | .71 | (.08 | ) | — | (.08 | ) | 11.87 | 6.35 | 4 | 46 | 1.07 | 5 | 2.32 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 11.70 | .24 | (.43 | ) | (.19 | ) | (.23 | ) | (.04 | ) | (.27 | ) | 11.24 | (1.61 | ) | 40 | 1.07 | 2.09 | ||||||||||||||||||||||||||||||
12/31/2017 | 11.08 | .22 | .51 | .73 | (.04 | ) | (.07 | ) | (.11 | ) | 11.70 | 6.63 | 31 | 1.06 | 1.89 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.89 | .20 | .06 | .26 | (.05 | ) | (.02 | ) | (.07 | ) | 11.08 | 2.42 | 12 | 1.07 | 1.76 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.70 | .21 | (.71 | ) | (.50 | ) | — | 9 | (.31 | ) | (.31 | ) | 10.89 | (4.27 | ) | 6 | 1.07 | 1.86 | ||||||||||||||||||||||||||||||
12/31/2014 | 11.87 | .20 | (.05 | ) | .15 | (.21 | ) | (.11 | ) | (.32 | ) | 11.70 | 1.16 | 4 | 1.09 | 1.66 |
See end of tables for footnotes.
American Funds Insurance Series | 197 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
High-Income Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 9.34 | $ | .33 | $ | .59 | $ | .92 | $ | (.13 | ) | $ | — | $ | (.13 | ) | $ | 10.13 | 9.81 | %4 | $ | 526 | .50 | %5 | 6.71 | %5 | ||||||||||||||||||||||
12/31/2018 | 10.19 | .64 | (.84 | ) | (.20 | ) | (.65 | ) | — | (.65 | ) | 9.34 | (2.15 | ) | 501 | .50 | 6.32 | |||||||||||||||||||||||||||||||
12/31/2017 | 10.18 | .63 | .10 | .73 | (.72 | ) | — | (.72 | ) | 10.19 | 7.25 | 632 | .49 | 5.98 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.19 | .61 | 1.02 | 1.63 | (.64 | ) | — | (.64 | ) | 10.18 | 17.83 | 949 | .49 | 6.18 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 10.54 | .64 | (1.36 | ) | (.72 | ) | (.63 | ) | — | (.63 | ) | 9.19 | (6.94 | ) | 1,017 | .48 | 6.12 | |||||||||||||||||||||||||||||||
12/31/2014 | 11.13 | .67 | (.59 | ) | .08 | (.67 | ) | — | (.67 | ) | 10.54 | .80 | 1,017 | .48 | 5.90 | |||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 9.33 | .32 | .58 | .90 | (.12 | ) | — | (.12 | ) | 10.11 | 9.67 | 4 | 1 | .74 | 5 | 6.47 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.18 | .62 | (.84 | ) | (.22 | ) | (.63 | ) | — | (.63 | ) | 9.33 | (2.35 | ) | 1 | .75 | 6.11 | |||||||||||||||||||||||||||||||
12/31/20172,7 | 10.28 | .60 | .02 | .62 | (.72 | ) | — | (.72 | ) | 10.18 | 6.024 | — | 8 | .72 | 5 | 5.74 | 5 | |||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 9.19 | .31 | .58 | .89 | (.12 | ) | — | (.12 | ) | 9.96 | 9.71 | 4 | 685 | .75 | 5 | 6.46 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.03 | .61 | (.83 | ) | (.22 | ) | (.62 | ) | — | (.62 | ) | 9.19 | (2.34 | ) | 661 | .75 | 6.07 | |||||||||||||||||||||||||||||||
12/31/2017 | 10.04 | .59 | .10 | .69 | (.70 | ) | — | (.70 | ) | 10.03 | 6.89 | 776 | .74 | 5.72 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.06 | .58 | 1.01 | 1.59 | (.61 | ) | — | (.61 | ) | 10.04 | 17.69 | 799 | .74 | 5.92 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 10.41 | .60 | (1.35 | ) | (.75 | ) | (.60 | ) | — | (.60 | ) | 9.06 | (7.30 | ) | 765 | .73 | 5.85 | |||||||||||||||||||||||||||||||
12/31/2014 | 10.99 | .63 | (.57 | ) | .06 | (.64 | ) | — | (.64 | ) | 10.41 | .63 | 929 | .73 | 5.67 | |||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 9.38 | .32 | .59 | .91 | (.12 | ) | — | (.12 | ) | 10.17 | 9.73 | 4 | 10 | .68 | 5 | 6.53 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.23 | .63 | (.85 | ) | (.22 | ) | (.63 | ) | — | (.63 | ) | 9.38 | (2.33 | ) | 10 | .68 | 6.14 | |||||||||||||||||||||||||||||||
12/31/2017 | 10.22 | .61 | .10 | .71 | (.70 | ) | — | (.70 | ) | 10.23 | 7.02 | 12 | .67 | 5.79 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.22 | .59 | 1.03 | 1.62 | (.62 | ) | — | (.62 | ) | 10.22 | 17.68 | 13 | .67 | 5.99 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 10.57 | .62 | (1.37 | ) | (.75 | ) | (.60 | ) | — | (.60 | ) | 9.22 | (7.13 | ) | 12 | .66 | 5.91 | |||||||||||||||||||||||||||||||
12/31/2014 | 11.16 | .65 | (.59 | ) | .06 | (.65 | ) | — | (.65 | ) | 10.57 | .59 | 16 | .66 | 5.74 | |||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 9.96 | .33 | .62 | .95 | (.12 | ) | — | (.12 | ) | 10.79 | 9.54 | 4 | 58 | 1.00 | 5 | 6.20 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.82 | .63 | (.90 | ) | (.27 | ) | (.59 | ) | — | (.59 | ) | 9.96 | (2.64 | ) | 31 | 1.00 | 5.83 | |||||||||||||||||||||||||||||||
12/31/2017 | 10.79 | .61 | .10 | .71 | (.68 | ) | — | (.68 | ) | 10.82 | 6.63 | 34 | .99 | 5.46 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 9.73 | .60 | 1.07 | 1.67 | (.61 | ) | — | (.61 | ) | 10.79 | 17.29 | 21 | .99 | 5.55 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.05 | .62 | (1.43 | ) | (.81 | ) | (.51 | ) | — | (.51 | ) | 9.73 | (7.42 | ) | 1 | .98 | 5.51 | |||||||||||||||||||||||||||||||
12/31/2014 | 11.12 | .63 | (.59 | ) | .04 | (.11 | ) | — | (.11 | ) | 11.05 | .35 | — | 8 | .98 | 5.49 |
198 | American Funds Insurance Series |
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Mortgage Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 10.30 | $ | .13 | $ | .30 | $ | .43 | $ | (.05 | ) | $ | — | $ | (.05 | ) | $ | 10.68 | 4.16 | %4 | $ | 210 | .45 | %5 | 2.55 | %5 | ||||||||||||||||||||||
12/31/2018 | 10.47 | .20 | (.14 | ) | .06 | (.23 | ) | — | (.23 | ) | 10.30 | .58 | 209 | .48 | 1.97 | |||||||||||||||||||||||||||||||||
12/31/2017 | 10.56 | .16 | — | 9 | .16 | (.18 | ) | (.07 | ) | (.25 | ) | 10.47 | 1.47 | 265 | .47 | 1.52 | ||||||||||||||||||||||||||||||||
12/31/2016 | 10.61 | .15 | .11 | .26 | (.20 | ) | (.11 | ) | (.31 | ) | 10.56 | 2.50 | 269 | .46 | 1.39 | |||||||||||||||||||||||||||||||||
12/31/2015 | 10.70 | .10 | .13 | .23 | (.18 | ) | (.14 | ) | (.32 | ) | 10.61 | 2.09 | 272 | .45 | .89 | |||||||||||||||||||||||||||||||||
12/31/2014 | 10.23 | .12 | .45 | .57 | (.10 | ) | — | (.10 | ) | 10.70 | 5.54 | 292 | .45 | 1.12 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 10.28 | .12 | .29 | .41 | (.04 | ) | — | (.04 | ) | 10.65 | 4.02 | 4 | 1 | .70 | 5 | 2.28 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.46 | .18 | (.14 | ) | .04 | (.22 | ) | — | (.22 | ) | 10.28 | .36 | 1 | .73 | 1.77 | |||||||||||||||||||||||||||||||||
12/31/20172,7 | 10.55 | .14 | — | 9 | .14 | (.16 | ) | (.07 | ) | (.23 | ) | 10.46 | 1.31 | 4 | — | 8 | .70 | 5 | 1.38 | 5 | ||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 10.28 | .12 | .29 | .41 | (.04 | ) | — | (.04 | ) | 10.65 | 4.02 | 4 | 58 | .70 | 5 | 2.30 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.45 | .18 | (.15 | ) | .03 | (.20 | ) | — | (.20 | ) | 10.28 | .32 | 57 | .73 | 1.72 | |||||||||||||||||||||||||||||||||
12/31/2017 | 10.54 | .14 | (.01 | ) | .13 | (.15 | ) | (.07 | ) | (.22 | ) | 10.45 | 1.22 | 63 | .72 | 1.27 | ||||||||||||||||||||||||||||||||
12/31/2016 | 10.59 | .12 | .12 | .24 | (.18 | ) | (.11 | ) | (.29 | ) | 10.54 | 2.25 | 63 | .71 | 1.14 | |||||||||||||||||||||||||||||||||
12/31/2015 | 10.68 | .07 | .13 | .20 | (.15 | ) | (.14 | ) | (.29 | ) | 10.59 | 1.86 | 59 | .70 | .65 | |||||||||||||||||||||||||||||||||
12/31/2014 | 10.22 | .10 | .44 | .54 | (.08 | ) | — | (.08 | ) | 10.68 | 5.23 | 52 | .70 | .91 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 10.19 | .10 | .30 | .40 | (.04 | ) | — | (.04 | ) | 10.55 | 3.92 | 4 | 22 | .95 | 5 | 2.04 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 10.38 | .15 | (.15 | ) | — | 9 | (.19 | ) | — | (.19 | ) | 10.19 | .07 | 24 | .98 | 1.49 | ||||||||||||||||||||||||||||||||
12/31/2017 | 10.48 | .11 | — | 9 | .11 | (.14 | ) | (.07 | ) | (.21 | ) | 10.38 | .97 | 12 | .97 | 1.03 | ||||||||||||||||||||||||||||||||
12/31/2016 | 10.52 | .09 | .12 | .21 | (.14 | ) | (.11 | ) | (.25 | ) | 10.48 | 2.01 | 8 | .96 | .86 | |||||||||||||||||||||||||||||||||
12/31/2015 | 10.65 | .04 | .14 | .18 | (.17 | ) | (.14 | ) | (.31 | ) | 10.52 | 1.62 | 11 | .97 | .37 | |||||||||||||||||||||||||||||||||
12/31/2014 | 10.23 | .05 | .46 | .51 | (.09 | ) | — | (.09 | ) | 10.65 | 4.98 | 1 | .94 | .47 |
See end of tables for footnotes.
American Funds Insurance Series | 199 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 11.31 | $ | .12 | $ | — | 9 | $ | .12 | $ | (.04 | ) | $ | — | $ | (.04 | ) | $ | 11.39 | 1.10 | %4 | $ | 32 | .34 | %5 | 2.14 | %5 | |||||||||||||||||||||
12/31/2018 | 11.29 | .18 | — | 9 | .18 | (.16 | ) | — | (.16 | ) | 11.31 | 1.58 | 37 | .35 | 1.60 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.27 | .08 | (.01 | ) | .07 | (.05 | ) | — | (.05 | ) | 11.29 | .66 | 37 | .35 | .68 | |||||||||||||||||||||||||||||||||
12/31/201613 | 11.26 | .01 | — | 9 | .01 | — | — | — | 11.27 | .09 | 37 | .35 | .11 | |||||||||||||||||||||||||||||||||||
12/31/2015 | 11.28 | (.03 | ) | .01 | (.02 | ) | — | — | — | 11.26 | (.18 | ) | 39 | .34 | (.24 | ) | ||||||||||||||||||||||||||||||||
12/31/2014 | 11.31 | (.03 | ) | — | (.03 | ) | — | — | — | 11.28 | (.27 | ) | 49 | .34 | (.26 | ) | ||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.31 | .12 | — | 9 | .12 | (.04 | ) | — | (.04 | ) | 11.39 | 1.10 | 4,12 | — | 8 | .34 | 5,12 | 2.15 | 5,12 | |||||||||||||||||||||||||||||
12/31/2018 | 11.29 | .18 | — | 9 | .18 | (.16 | ) | — | (.16 | ) | 11.31 | 1.58 | 12 | — | 8 | .35 | 12 | 1.60 | 12 | |||||||||||||||||||||||||||||
12/31/20172,7 | 11.27 | .08 | — | 9 | .08 | (.06 | ) | — | (.06 | ) | 11.29 | .67 | 4,12 | — | 8 | .34 | 5,12 | .69 | 5,12 | |||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.03 | .10 | — | 9 | .10 | (.04 | ) | — | (.04 | ) | 11.09 | .90 | 4 | 229 | .59 | 5 | 1.89 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 11.01 | .15 | — | 9 | .15 | (.13 | ) | — | (.13 | ) | 11.03 | 1.36 | 247 | .60 | 1.34 | |||||||||||||||||||||||||||||||||
12/31/2017 | 10.99 | .05 | — | 9 | .05 | (.03 | ) | — | (.03 | ) | 11.01 | .46 | 249 | .60 | .42 | |||||||||||||||||||||||||||||||||
12/31/201613 | 11.01 | (.02 | ) | — | 9 | (.02 | ) | — | — | — | 10.99 | (.18 | ) | 297 | .60 | (.14 | ) | |||||||||||||||||||||||||||||||
12/31/2015 | 11.06 | (.05 | ) | — | 9 | (.05 | ) | — | — | — | 11.01 | (.45 | ) | 302 | .59 | (.49 | ) | |||||||||||||||||||||||||||||||
12/31/2014 | 11.12 | (.06 | ) | — | (.06 | ) | — | — | — | 11.06 | (.54 | ) | 331 | .59 | (.51 | ) | ||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.14 | .11 | — | 9 | .11 | (.04 | ) | — | (.04 | ) | 11.21 | .99 | 4 | 3 | .52 | 5 | 1.96 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 11.12 | .16 | (.01 | ) | .15 | (.13 | ) | — | (.13 | ) | 11.14 | 1.38 | 4 | .53 | 1.42 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.10 | .06 | — | 9 | .06 | (.04 | ) | — | (.04 | ) | 11.12 | .54 | 4 | .53 | .50 | |||||||||||||||||||||||||||||||||
12/31/201613 | 11.11 | (.01 | ) | — | 9 | (.01 | ) | — | — | — | 11.10 | (.09 | ) | 4 | .53 | (.08 | ) | |||||||||||||||||||||||||||||||
12/31/2015 | 11.16 | (.05 | ) | — | 9 | (.05 | ) | — | — | — | 11.11 | (.45 | ) | 6 | .52 | (.42 | ) | |||||||||||||||||||||||||||||||
12/31/2014 | 11.21 | (.05 | ) | — | (.05 | ) | — | — | — | 11.16 | (.45 | ) | 8 | .52 | (.44 | ) | ||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.15 | .09 | — | 9 | .09 | (.04 | ) | — | (.04 | ) | 11.20 | .78 | 4 | 21 | .84 | 5 | 1.64 | 5 | ||||||||||||||||||||||||||||||
12/31/2018 | 11.13 | .12 | .01 | .13 | (.11 | ) | — | (.11 | ) | 11.15 | 1.14 | 18 | .86 | 1.11 | ||||||||||||||||||||||||||||||||||
12/31/2017 | 11.12 | .02 | — | 9 | .02 | (.01 | ) | — | (.01 | ) | 11.13 | .16 | 15 | .85 | .19 | |||||||||||||||||||||||||||||||||
12/31/201613 | 11.17 | (.04 | ) | (.01 | ) | (.05 | ) | — | — | — | 11.12 | (.45 | ) | 13 | .85 | (.40 | ) | |||||||||||||||||||||||||||||||
12/31/2015 | 11.25 | (.08 | ) | — | 9 | (.08 | ) | — | — | — | 11.17 | (.71 | ) | 16 | .85 | (.74 | ) | |||||||||||||||||||||||||||||||
12/31/2014 | 11.30 | (.09 | ) | .04 | (.05 | ) | — | — | — | 11.25 | (.44 | ) | 7 | .84 | (.77 | ) |
200 | American Funds Insurance Series |
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return | Net assets, end of period (in millions) | Ratio of expenses to average net assets | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | ||||||||||||||||||||||||||||||||||||||||||||||||
Class 1: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 11.94 | $ | .13 | $ | .43 | $ | .56 | $ | (.05 | ) | $ | — | $ | (.05 | ) | $ | 12.45 | 4.70 | %4 | $ | 1,457 | .36 | %5 | 2.17 | %5 | ||||||||||||||||||||||
12/31/2018 | 12.08 | .24 | (.13 | ) | .11 | (.25 | ) | — | (.25 | ) | 11.94 | .91 | 1,445 | .36 | 2.02 | |||||||||||||||||||||||||||||||||
12/31/2017 | 12.05 | .21 | .01 | .22 | (.19 | ) | — | (.19 | ) | 12.08 | 1.83 | 1,558 | .36 | 1.68 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 12.31 | .16 | .03 | .19 | (.20 | ) | (.25 | ) | (.45 | ) | 12.05 | 1.44 | 1,467 | .36 | 1.31 | |||||||||||||||||||||||||||||||||
12/31/2015 | 12.40 | .13 | .09 | .22 | (.21 | ) | (.10 | ) | (.31 | ) | 12.31 | 1.93 | 1,426 | .35 | 1.02 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.94 | .15 | .48 | .63 | (.17 | ) | — | (.17 | ) | 12.40 | 5.24 | 1,723 | .35 | 1.24 | ||||||||||||||||||||||||||||||||||
Class 1A: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.93 | .12 | .42 | .54 | (.05 | ) | — | (.05 | ) | 12.42 | 4.51 | 4 | 2 | .61 | 5 | 1.96 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 12.08 | .22 | (.14 | ) | .08 | (.23 | ) | — | (.23 | ) | 11.93 | .70 | 1 | .61 | 1.82 | |||||||||||||||||||||||||||||||||
12/31/20172,7 | 12.05 | .18 | .03 | .21 | (.18 | ) | — | (.18 | ) | 12.08 | 1.73 | 4 | — | 8 | .58 | 5 | 1.53 | 5 | ||||||||||||||||||||||||||||||
Class 2: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.82 | .11 | .43 | .54 | (.05 | ) | — | (.05 | ) | 12.31 | 4.45 | 4 | 1,334 | .61 | 5 | 1.92 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 11.96 | .21 | (.14 | ) | .07 | (.21 | ) | — | (.21 | ) | 11.82 | .73 | 1,323 | .61 | 1.77 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.93 | .17 | .02 | .19 | (.16 | ) | — | (.16 | ) | 11.96 | 1.59 | 1,473 | .61 | 1.43 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 12.20 | .13 | .02 | .15 | (.17 | ) | (.25 | ) | (.42 | ) | 11.93 | 1.19 | 1,503 | .61 | 1.05 | |||||||||||||||||||||||||||||||||
12/31/2015 | 12.29 | .10 | .09 | .19 | (.18 | ) | (.10 | ) | (.28 | ) | 12.20 | 1.59 | 1,579 | .60 | .79 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.83 | .12 | .47 | .59 | (.13 | ) | — | (.13 | ) | 12.29 | 5.01 | 1,717 | .60 | 1.00 | ||||||||||||||||||||||||||||||||||
Class 3: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.97 | .12 | .43 | .55 | (.05 | ) | — | (.05 | ) | 12.47 | 4.57 | 4 | 9 | .54 | 5 | 1.99 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 12.11 | .22 | (.14 | ) | .08 | (.22 | ) | — | (.22 | ) | 11.97 | .71 | 9 | .54 | 1.84 | |||||||||||||||||||||||||||||||||
12/31/2017 | 12.07 | .18 | .03 | .21 | (.17 | ) | — | (.17 | ) | 12.11 | 1.72 | 10 | .54 | 1.50 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 12.34 | .14 | .02 | .16 | (.18 | ) | (.25 | ) | (.43 | ) | 12.07 | 1.24 | 11 | .54 | 1.12 | |||||||||||||||||||||||||||||||||
12/31/2015 | 12.43 | .11 | .09 | .20 | (.19 | ) | (.10 | ) | (.29 | ) | 12.34 | 1.64 | 11 | .53 | .85 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.96 | .13 | .48 | .61 | (.14 | ) | — | (.14 | ) | 12.43 | 5.11 | 13 | .53 | 1.08 | ||||||||||||||||||||||||||||||||||
Class 4: | ||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.84 | .10 | .41 | .51 | (.04 | ) | — | (.04 | ) | 12.31 | 4.34 | 4 | 113 | .86 | 5 | 1.69 | 5 | |||||||||||||||||||||||||||||||
12/31/2018 | 11.98 | .18 | (.12 | ) | .06 | (.20 | ) | — | (.20 | ) | 11.84 | .50 | 91 | .86 | 1.53 | |||||||||||||||||||||||||||||||||
12/31/2017 | 11.96 | .14 | .01 | .15 | (.13 | ) | — | (.13 | ) | 11.98 | 1.28 | 62 | .86 | 1.18 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 12.22 | .10 | .03 | .13 | (.14 | ) | (.25 | ) | (.39 | ) | 11.96 | .99 | 57 | .86 | .82 | |||||||||||||||||||||||||||||||||
12/31/2015 | 12.34 | .07 | .08 | .15 | (.17 | ) | (.10 | ) | (.27 | ) | 12.22 | 1.29 | 46 | .85 | .56 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.93 | .06 | .51 | .57 | (.16 | ) | — | (.16 | ) | 12.34 | 4.76 | 21 | .85 | .50 |
See end of tables for footnotes.
American Funds Insurance Series | 201 |
Financial highlights (continued)
Income (loss) from | Ratio of | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment operations1 | Dividends and distributions | expenses | expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distribu- tions (from capital gains) | Total dividends and distribu- tions | Net asset value, end of period | Total return14 | Net assets, end of period (in millions) | to average net assets before waivers/ reimburse- ments | to average net assets after waivers/ reimburse- ments14 | Net effective expense ratio14,15 | Ratio of net income to average net assets14 | ||||||||||||||||||||||||||||||||||||||||||
Managed Risk Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 12.30 | $ | .02 | $ | 1.38 | $ | 1.40 | $ | (.12 | ) | $ | (.92 | ) | $ | (1.04 | ) | $ | 12.66 | 11.56 | %4,12 | $ | 4 | .41 | %5,12 | .36 | %5,12 | .70 | %5,12 | .37 | %5,12 | |||||||||||||||||||||||||
12/31/2018 | 13.22 | .11 | (.04 | ) | .07 | (.10 | ) | (.89 | ) | (.99 | ) | 12.30 | (.04 | )12 | 3 | .42 | 12 | .37 | 12 | .71 | 12 | .82 | 12 | |||||||||||||||||||||||||||||||||
12/31/2017 | 10.71 | .08 | 2.70 | 2.78 | (.07 | ) | (.20 | ) | (.27 | ) | 13.22 | 26.23 | 12 | 2 | .42 | 12 | .36 | 12 | .70 | 12 | .69 | 12 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 11.49 | .08 | .20 | .28 | (.05 | ) | (1.01 | ) | (1.06 | ) | 10.71 | 2.89 | 12 | 1 | .50 | 12 | .34 | 12 | .68 | 12 | .79 | 12 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.37 | .09 | .03 | .12 | — | — | — | 11.49 | 1.06 | 12 | — | 8 | .53 | 12 | .29 | 12 | .63 | 12 | .80 | 12 | ||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.43 | .31 | (.06 | ) | .25 | (.12 | ) | (.19 | ) | (.31 | ) | 11.37 | 2.18 | 12 | — | 8 | .50 | 12 | .32 | 12 | .65 | 12 | 2.71 | 12 | ||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 12.21 | — | 9 | 1.38 | 1.38 | (.09 | ) | (.92 | ) | (1.01 | ) | 12.58 | 11.42 | 4 | 393 | .67 | 5 | .62 | 5 | .96 | 5 | .07 | 5 | |||||||||||||||||||||||||||||||||
12/31/2018 | 13.14 | .06 | (.04 | ) | .02 | (.06 | ) | (.89 | ) | (.95 | ) | 12.21 | (.37 | ) | 340 | .68 | .63 | .97 | .46 | |||||||||||||||||||||||||||||||||||||
12/31/2017 | 10.64 | .04 | 2.70 | 2.74 | (.04 | ) | (.20 | ) | (.24 | ) | 13.14 | 25.99 | 286 | .69 | .63 | .97 | .34 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.43 | .05 | .19 | .24 | (.02 | ) | (1.01 | ) | (1.03 | ) | 10.64 | 2.52 | 200 | .79 | .63 | .97 | .43 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.35 | .04 | .04 | .08 | — | — | — | 11.43 | .71 | 146 | .89 | .66 | 1.00 | .31 | ||||||||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.43 | .12 | .08 | .20 | (.09 | ) | (.19 | ) | (.28 | ) | 11.35 | 1.77 | 79 | .87 | .69 | 1.02 | 1.01 | |||||||||||||||||||||||||||||||||||||||
Managed Risk International Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 9.82 | $ | .01 | $ | 1.08 | $ | 1.09 | $ | (.20 | ) | $ | (.32 | ) | $ | (.52 | ) | $ | 10.39 | 11.27 | %4,12 | $ | 1 | .38 | %5,12 | .32 | %5,12 | .82 | %5,12 | .26 | %5,12 | |||||||||||||||||||||||||
12/31/2018 | 11.25 | .32 | (1.44 | ) | (1.12 | ) | (.26 | ) | (.05 | ) | (.31 | ) | 9.82 | (10.11 | )12 | — | 8 | .33 | 12 | .28 | 12 | .77 | 12 | 3.02 | 12 | |||||||||||||||||||||||||||||||
12/31/2017 | 8.89 | .11 | 2.47 | 2.58 | (.10 | ) | (.12 | ) | (.22 | ) | 11.25 | 29.28 | 12 | — | 8 | .28 | 12 | .20 | 12 | .69 | 12 | 1.13 | 12 | |||||||||||||||||||||||||||||||||
12/31/2016 | 9.48 | .10 | (.35 | ) | (.25 | ) | (.12 | ) | (.22 | ) | (.34 | ) | 8.89 | (2.59 | )12 | — | 8 | .39 | 12 | .23 | 12 | .74 | 12 | 1.15 | 12 | |||||||||||||||||||||||||||||||
12/31/2015 | 10.10 | .18 | (.80 | ) | (.62 | ) | — | 9 | — | — | 9 | 9.48 | (6.12 | )12 | — | 8 | .45 | 12 | .21 | 12 | .72 | 12 | 1.75 | 12 | ||||||||||||||||||||||||||||||||
12/31/2014 | 10.82 | .14 | (.71 | ) | (.57 | ) | (.15 | ) | — | (.15 | ) | 10.10 | (5.31 | )12 | — | 8 | .50 | 12 | .25 | 12 | .76 | 12 | 1.33 | 12 | ||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 9.76 | — | 9 | 1.08 | 1.08 | (.20 | ) | (.32 | ) | (.52 | ) | 10.32 | 11.17 | 4 | 163 | .69 | 5 | .62 | 5 | 1.12 | 5 | (.08 | )5 | |||||||||||||||||||||||||||||||||
12/31/2018 | 11.15 | .16 | (1.32 | ) | (1.16 | ) | (.18 | ) | (.05 | ) | (.23 | ) | 9.76 | (10.50 | ) | 151 | .69 | .64 | 1.13 | 1.49 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 8.83 | .11 | 2.41 | 2.52 | (.08 | ) | (.12 | ) | (.20 | ) | 11.15 | 28.69 | 148 | .71 | .63 | 1.12 | 1.03 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 9.43 | .09 | (.38 | ) | (.29 | ) | (.09 | ) | (.22 | ) | (.31 | ) | 8.83 | (3.05 | ) | 97 | .79 | .63 | 1.14 | .97 | ||||||||||||||||||||||||||||||||||||
12/31/2015 | 10.09 | .13 | (.79 | ) | (.66 | ) | — | 9 | — | — | 9 | 9.43 | (6.52 | ) | 83 | .90 | .66 | 1.17 | 1.30 | |||||||||||||||||||||||||||||||||||||
12/31/2014 | 10.82 | .16 | (.77 | ) | (.61 | ) | (.12 | ) | — | (.12 | ) | 10.09 | (5.68 | ) | 46 | .91 | .67 | 1.18 | 1.51 | |||||||||||||||||||||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 11.28 | $ | .05 | $ | .69 | $ | .74 | $ | (.20 | ) | $ | (.60 | ) | $ | (.80 | ) | $ | 11.22 | 6.63 | %4,12 | $ | 1 | .37 | %5,12 | .31 | %5,12 | .70 | %5,12 | .85 | %5,12 | |||||||||||||||||||||||||
12/31/2018 | 13.04 | .40 | (1.27 | ) | (.87 | ) | (.45 | ) | (.44 | ) | (.89 | ) | 11.28 | (6.99 | )12 | — | 8 | .33 | 12 | .28 | 12 | .67 | 12 | 3.21 | 12 | |||||||||||||||||||||||||||||||
12/31/2017 | 11.67 | .19 | 1.59 | 1.78 | (.22 | ) | (.19 | ) | (.41 | ) | 13.04 | 15.48 | 12 | — | 8 | .30 | 12 | .25 | 12 | .64 | 12 | 1.59 | 12 | |||||||||||||||||||||||||||||||||
12/31/2016 | 10.80 | .20 | 1.25 | 1.45 | (.21 | ) | (.37 | ) | (.58 | ) | 11.67 | 13.77 | 12 | — | 8 | .43 | 12 | .27 | 12 | .67 | 12 | 1.83 | 12 | |||||||||||||||||||||||||||||||||
12/31/2015 | 11.70 | .19 | (1.02 | ) | (.83 | ) | (.07 | ) | — | (.07 | ) | 10.80 | (7.07 | )12 | — | 8 | .50 | 12 | .27 | 12 | .66 | 12 | 1.64 | 12 | ||||||||||||||||||||||||||||||||
12/31/2014 | 11.05 | .40 | .55 | .95 | (.30 | ) | — | (.30 | ) | 11.70 | 8.58 | 12 | — | 8 | .50 | 12 | .31 | 12 | .70 | 12 | 3.43 | 12 | ||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.21 | .02 | .70 | .72 | (.19 | ) | (.60 | ) | (.79 | ) | 11.14 | 6.52 | 4 | 353 | .67 | 5 | .61 | 5 | 1.00 | 5 | .32 | 5 | ||||||||||||||||||||||||||||||||||
12/31/2018 | 12.96 | .19 | (1.10 | ) | (.91 | ) | (.40 | ) | (.44 | ) | (.84 | ) | 11.21 | (7.38 | ) | 336 | .68 | .63 | 1.02 | 1.49 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 11.61 | .17 | 1.55 | 1.72 | (.18 | ) | (.19 | ) | (.37 | ) | 12.96 | 15.03 | 367 | .68 | .63 | 1.02 | 1.43 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 10.76 | .23 | 1.18 | 1.41 | (.19 | ) | (.37 | ) | (.56 | ) | 11.61 | 13.39 | 291 | .79 | .63 | 1.03 | 2.04 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.67 | .18 | (1.05 | ) | (.87 | ) | (.04 | ) | — | (.04 | ) | 10.76 | (7.43 | ) | 137 | .89 | .66 | 1.05 | 1.57 | |||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.05 | .50 | .40 | .90 | (.28 | ) | — | (.28 | ) | 11.67 | 8.10 | 98 | .88 | .69 | 1.08 | 4.27 |
202 | American Funds Insurance Series |
Income (loss) from | Ratio of | Ratio of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
investment operations1 | Dividends and distributions | expenses | expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Period ended | Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distribu- tions (from capital gains) | Total dividends and distribu- tions | Net asset value, end of period | Total return14 | Net assets, end of period (in millions) | to average net assets before waivers/ reimburse- ments | to average net assets after waivers/ reimburse- ments14 | Net effective expense ratio14,15 | Ratio of net income to average net assets14 | ||||||||||||||||||||||||||||||||||||||||||
Managed Risk Growth-Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 11.73 | $ | .03 | $ | 1.30 | $ | 1.33 | $ | (.04 | ) | $ | (.10 | ) | $ | (.14 | ) | $ | 12.92 | 11.36 | %4,12 | $ | 1,883 | .42 | %5,12 | .37 | %5,12 | .66 | %5,12 | .46 | %5,12 | |||||||||||||||||||||||||
12/31/2018 | 12.66 | (.02 | ) | (.15 | ) | (.17 | ) | (.19 | ) | (.57 | ) | (.76 | ) | 11.73 | (1.66 | )12 | 1,662 | .40 | 12 | .35 | 12 | .64 | 12 | (.20 | )12 | |||||||||||||||||||||||||||||||
12/31/2017 | 11.07 | .19 | 2.03 | 2.22 | (.13 | ) | (.50 | ) | (.63 | ) | 12.66 | 20.64 | 12 | 2 | .44 | 12 | .37 | 12 | .66 | 12 | 1.61 | 12 | ||||||||||||||||||||||||||||||||||
12/31/2016 | 11.25 | .16 | .52 | .68 | (.16 | ) | (.70 | ) | (.86 | ) | 11.07 | 6.49 | 12 | 1 | .52 | 12 | .36 | 12 | .64 | 12 | 1.46 | 12 | ||||||||||||||||||||||||||||||||||
12/31/2015 | 11.67 | .25 | (.63 | ) | (.38 | ) | (.04 | ) | — | (.04 | ) | 11.25 | (3.27 | )12 | 1 | .56 | 12 | .31 | 12 | .59 | 12 | 2.17 | 12 | |||||||||||||||||||||||||||||||||
12/31/2014 | 11.50 | .35 | .21 | .56 | (.14 | ) | (.25 | ) | (.39 | ) | 11.67 | 4.85 | 12 | — | 8 | .45 | 12 | .25 | 12 | .52 | 12 | 2.94 | 12 | |||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 11.67 | .01 | 1.30 | 1.31 | (.03 | ) | (.10 | ) | (.13 | ) | 12.85 | 11.26 | 4 | 260 | .67 | 5 | .62 | 5 | .91 | 5 | .20 | 5 | ||||||||||||||||||||||||||||||||||
12/31/2018 | 12.58 | .16 | (.36 | ) | (.20 | ) | (.14 | ) | (.57 | ) | (.71 | ) | 11.67 | (1.97 | ) | 230 | .69 | .64 | .93 | 1.25 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 11.02 | .13 | 2.05 | 2.18 | (.12 | ) | (.50 | ) | (.62 | ) | 12.58 | 20.40 | 206 | .70 | .63 | .92 | 1.08 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.22 | .12 | .52 | .64 | (.14 | ) | (.70 | ) | (.84 | ) | 11.02 | 6.08 | 160 | .79 | .63 | .91 | 1.13 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 11.65 | .12 | (.54 | ) | (.42 | ) | (.01 | ) | — | (.01 | ) | 11.22 | (3.64 | ) | 122 | .89 | .66 | .94 | 1.04 | |||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.50 | .16 | .35 | .51 | (.11 | ) | (.25 | ) | (.36 | ) | 11.65 | 4.42 | 76 | .87 | .69 | .96 | 1.38 | |||||||||||||||||||||||||||||||||||||||
Managed Risk Asset Allocation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class P1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | $ | 12.23 | $ | .03 | $ | 1.16 | $ | 1.19 | $ | — | $ | (.57 | ) | $ | (.57 | ) | $ | 12.85 | 9.78 | %4 | $ | 2 | .41 | %5 | .36 | %5 | .64 | %5 | .51 | %5 | ||||||||||||||||||||||||||
12/31/2018 | 13.59 | .22 | (.80 | ) | (.58 | ) | (.25 | ) | (.53 | ) | (.78 | ) | 12.23 | (4.63 | ) | 2 | .37 | .32 | .59 | 1.67 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 12.02 | .19 | 1.60 | 1.79 | (.10 | ) | (.12 | ) | (.22 | ) | 13.59 | 15.06 | 1,656 | .43 | .38 | .66 | 1.45 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.72 | .19 | .67 | .86 | (.19 | ) | (.37 | ) | (.56 | ) | 12.02 | 7.57 | 1,217 | .43 | .38 | .66 | 1.65 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 12.29 | .25 | (.34 | ) | (.09 | ) | (.22 | ) | (.26 | ) | (.48 | ) | 11.72 | (.83 | ) | 712 | .54 | .40 | .68 | 2.06 | ||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.93 | .13 | .26 | .39 | (.03 | ) | — | (.03 | ) | 12.29 | 3.24 | 277 | .53 | .48 | .76 | 1.04 | ||||||||||||||||||||||||||||||||||||||||
Class P2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6/30/20192,3 | 12.22 | .02 | 1.16 | 1.18 | (.31 | ) | (.57 | ) | (.88 | ) | 12.52 | 9.74 | 4 | 2,706 | .66 | 5 | .61 | 5 | .89 | 5 | .37 | 5 | ||||||||||||||||||||||||||||||||||
12/31/2018 | 13.55 | .17 | (.79 | ) | (.62 | ) | (.18 | ) | (.53 | ) | (.71 | ) | 12.22 | (4.89 | ) | 2,541 | .62 | .57 | .84 | 1.27 | ||||||||||||||||||||||||||||||||||||
12/31/2017 | 12.01 | .15 | 1.61 | 1.76 | (.10 | ) | (.12 | ) | (.22 | ) | 13.55 | 14.80 | 2,798 | .68 | .63 | .91 | 1.13 | |||||||||||||||||||||||||||||||||||||||
12/31/2016 | 11.71 | .14 | .69 | .83 | (.16 | ) | (.37 | ) | (.53 | ) | 12.01 | 7.27 | 2,342 | .68 | .63 | .91 | 1.20 | |||||||||||||||||||||||||||||||||||||||
12/31/2015 | 12.27 | .14 | (.26 | ) | (.12 | ) | (.18 | ) | (.26 | ) | (.44 | ) | 11.71 | (1.07 | ) | 1,953 | .79 | .66 | .94 | 1.16 | ||||||||||||||||||||||||||||||||||||
12/31/2014 | 11.93 | .16 | .19 | .35 | (.01 | ) | — | (.01 | ) | 12.27 | 2.91 | 1,780 | .79 | .73 | 1.01 | 1.33 |
See end of tables for footnotes.
American Funds Insurance Series | 203 |
Financial highlights (continued)
Portfolio turnover rate for all share classes | Six months ended | Period ended December 31, | ||||||||||||||||||||||
excluding mortgage dollar roll transactions16 | June 30, 20192,3,4 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||
Capital Income Builder | 25 | % | 42 | % | 59 | % | 41 | % | 38 | % | 24 | %4,11 | ||||||||||||
Asset Allocation Fund | 28 | 34 | 39 | 43 | 28 | 42 | ||||||||||||||||||
Global Balanced Fund | 57 | 30 | 28 | 43 | 36 | 40 | ||||||||||||||||||
Bond Fund | 82 | 98 | 153 | 108 | 141 | 121 | ||||||||||||||||||
Global Bond Fund | 69 | 78 | 74 | 70 | 88 | 134 | ||||||||||||||||||
Mortgage Fund | 13 | 60 | 98 | 113 | 138 | 108 | ||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | 50 | 76 | 120 | 273 | 352 | 88 | ||||||||||||||||||
Portfolio turnover rate for all share classes | ||||||||||||||||||||||||
including mortgage dollar roll transactions, if | Six months ended | Period ended December 31, | ||||||||||||||||||||||
applicable16 | June 30, 20192,3,4 | 2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||||||
Global Growth Fund | 18 | % | 25 | % | 31 | % | 27 | % | 29 | % | 22 | % | ||||||||||||
Global Small Capitalization Fund | 37 | 43 | 33 | 40 | 36 | 28 | ||||||||||||||||||
Growth Fund | 15 | 35 | 24 | 26 | 20 | 29 | ||||||||||||||||||
International Fund | 22 | 29 | 29 | 31 | 37 | 18 | ||||||||||||||||||
New World Fund | 29 | 58 | 56 | 32 | 39 | 36 | ||||||||||||||||||
Blue Chip Income and Growth Fund | 30 | 49 | 34 | 30 | 26 | 37 | ||||||||||||||||||
Global Growth and Income Fund | 28 | 49 | 41 | 57 | 37 | 28 | ||||||||||||||||||
Growth-Income Fund | 16 | 39 | 27 | 27 | 25 | 25 | ||||||||||||||||||
International Growth and Income Fund | 20 | 38 | 51 | 32 | 35 | 34 | ||||||||||||||||||
Capital Income Builder Fund | 38 | 98 | 88 | 53 | 128 | 35 | 4,11 | |||||||||||||||||
Asset Allocation Fund | 46 | 86 | 85 | 83 | 76 | 88 | ||||||||||||||||||
Global Balanced Fund | 66 | 51 | 41 | 65 | 76 | 73 | ||||||||||||||||||
Bond Fund | 228 | 514 | 502 | 375 | 434 | 365 | ||||||||||||||||||
Global Bond Fund | 100 | 125 | 105 | 154 | 159 | 200 | ||||||||||||||||||
High-Income Bond Fund | 43 | 67 | 78 | 89 | 66 | 54 | ||||||||||||||||||
Mortgage Fund | 137 | 811 | 680 | 713 | 1103 | 790 | ||||||||||||||||||
U.S. Government/AAA-Rated Securities Fund | 130 | 446 | 551 | 539 | 901 | 387 | ||||||||||||||||||
Ultra-Short Bond Fund | — | 17 | — | 17 | — | 17 | — | 13,17 | N/A | N/A | ||||||||||||||
Managed Risk Growth Fund | 7 | 7 | 25 | 15 | 16 | 22 | ||||||||||||||||||
Managed Risk International Fund | 5 | 8 | 25 | 26 | 15 | 22 | ||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | 8 | 11 | 32 | 9 | 20 | 22 | ||||||||||||||||||
Managed Risk Growth-Income Fund | 3 | 14 | 26 | 14 | 11 | 28 | ||||||||||||||||||
Managed Risk Asset Allocation Fund | 6 | 12 | 1 | 3 | 3 | 3 |
1 | Based on average shares outstanding. |
2 | Based on operations for a period that is less than a full year. |
3 | Unaudited. |
4 | Not annualized. |
5 | Annualized. |
6 | For the year ended December 31, 2014, reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the net investment income per share and ratio of net income to average net assets would have been lower for all share classes. |
7 | Class 1A shares began investment operations on January 6, 2017. |
8 | Amount less than $1 million. |
9 | Amount less than $.01. |
10 | Amount less than .01%. |
11 | For the period May 1, 2014, commencement of operations, through December 31, 2014. |
12 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Certain fees (including, where applicable, fees for distribution services) are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
13 | On May 1, 2016, the fund converted from a cash fund to an ultra-short-term bond fund and changed its name from Cash Management Fund to Ultra-Short Bond Fund. |
14 | This column reflects the impact of certain waivers/reimbursements by CRMC. CRMC waived a portion of investment advisory services and reimbursed a portion of miscellaneous fees and expenses for the managed risk funds. |
15 | This column reflects the net effective expense ratios for each fund and class, which are unaudited. These ratios include each class’s expense ratio combined with the weighted average net expense ratio of the underlying funds for the periods presented. See expense example for further information regarding fees and expenses. |
16 | Refer to Note 5 for further information on mortgage dollar rolls. |
17 | Amount is either less than 1% or there is no turnover. |
See notes to financial statements.
204 | American Funds Insurance Series |
Expense example | unaudited |
The funds in American Funds Insurance Series serve as the underlying investment vehicle for various insurance products. As an owner of an insurance contract that invests in one of the funds in the series, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. Additional fees are charged by the insurance companies related to the various benefits they provide. This example is intended to help you understand your ongoing costs (in dollars) of investing in the underlying funds so you can compare these costs with the ongoing costs of investing in other mutual funds that serve a similar function in other annuity products. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (January 1, 2019, through June 30, 2019).
Actual expenses:
The first line of each share class in the table on the following pages provides information about actual account values and actual expenses. You may use the information in this line, 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 first line under the heading titled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the following pages provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
Additional fees are charged by the insurance companies related to the various benefits they provide. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table on the following pages are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of each share class in the table is 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.
American Funds Insurance Series | 205 |
Beginning account value 1/1/2019 | Ending account value 6/30/2019 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Global Growth Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,214.13 | $ | 3.02 | .55 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.07 | 2.76 | .55 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,212.31 | 4.39 | .80 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.83 | 4.01 | .80 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,212.54 | 4.39 | .80 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.83 | 4.01 | .80 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,210.72 | 5.76 | 1.05 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.59 | 5.26 | 1.05 | ||||||||||||
Global Small Capitalization Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,203.05 | $ | 4.04 | .74 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.12 | 3.71 | .74 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,202.11 | 5.35 | .98 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,019.93 | 4.91 | .98 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,201.64 | 5.40 | .99 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,019.89 | 4.96 | .99 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,200.54 | 6.77 | 1.24 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,018.65 | 6.21 | 1.24 | ||||||||||||
Growth Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,167.96 | $ | 1.83 | .34 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.11 | 1.71 | .34 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,166.58 | 3.17 | .59 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.87 | 2.96 | .59 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,166.46 | 3.17 | .59 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.87 | 2.96 | .59 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,166.82 | 2.79 | .52 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.22 | 2.61 | .52 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,165.10 | 4.51 | .84 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.63 | 4.21 | .84 | ||||||||||||
International Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,149.41 | $ | 2.82 | .53 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.17 | 2.66 | .53 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,147.62 | 4.15 | .78 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.93 | 3.91 | .78 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,147.75 | 4.15 | .78 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.93 | 3.91 | .78 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,148.73 | 3.78 | .71 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,021.27 | 3.56 | .71 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,146.77 | 5.48 | 1.03 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.69 | 5.16 | 1.03 | ||||||||||||
New World Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,192.28 | $ | 4.08 | .75 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.08 | 3.76 | .75 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,191.04 | 5.43 | 1.00 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,019.84 | 5.01 | 1.00 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,190.66 | 5.43 | 1.00 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,019.84 | 5.01 | 1.00 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,189.60 | 6.79 | 1.25 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,018.60 | 6.26 | 1.25 |
206 | American Funds Insurance Series |
Beginning account value 1/1/2019 | Ending account value 6/30/2019 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Blue Chip Income and Growth Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,111.39 | $ | 2.15 | .41 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.76 | 2.06 | .41 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,108.91 | 3.45 | .66 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.52 | 3.31 | .66 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,108.87 | 3.45 | .66 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.52 | 3.31 | .66 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,108.28 | 4.76 | .91 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.28 | 4.56 | .91 | ||||||||||||
Global Growth and Income Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,194.72 | $ | 3.48 | .64 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.62 | 3.21 | .64 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,193.09 | 4.79 | .88 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.43 | 4.41 | .88 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,193.92 | 4.84 | .89 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.38 | 4.46 | .89 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,192.40 | 6.20 | 1.14 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.14 | 5.71 | 1.14 | ||||||||||||
Growth-Income Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,161.54 | $ | 1.50 | .28 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.41 | 1.40 | .28 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,160.04 | 2.84 | .53 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,022.17 | 2.66 | .53 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,160.23 | 2.84 | .53 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,022.17 | 2.66 | .53 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,160.50 | 2.46 | .46 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.51 | 2.31 | .46 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,158.90 | 4.18 | .78 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.93 | 3.91 | .78 | ||||||||||||
International Growth and Income Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,148.19 | $ | 3.46 | .65 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.57 | 3.26 | .65 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,147.37 | 4.79 | .90 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.33 | 4.51 | .90 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,147.53 | 4.79 | .90 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.33 | 4.51 | .90 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,146.04 | 6.12 | 1.15 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.09 | 5.76 | 1.15 | ||||||||||||
Capital Income Builder | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,100.62 | $ | 2.71 | .52 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.22 | 2.61 | .52 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,099.47 | 4.01 | .77 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.98 | 3.86 | .77 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,100.46 | 4.01 | .77 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.98 | 3.86 | .77 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,098.17 | 5.31 | 1.02 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.74 | 5.11 | 1.02 |
See end of tables for footnotes.
American Funds Insurance Series | 207 |
Beginning account value 1/1/2019 | Ending account value 6/30/2019 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Asset Allocation Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,121.12 | $ | 1.47 | .28 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.41 | 1.40 | .28 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,119.51 | 2.79 | .53 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,022.17 | 2.66 | .53 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,119.97 | 2.84 | .54 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,022.12 | 2.71 | .54 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,120.15 | 2.47 | .47 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.46 | 2.36 | .47 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,118.65 | 4.10 | .78 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.93 | 3.91 | .78 | ||||||||||||
Global Balanced Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,130.13 | $ | 3.70 | .70 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.32 | 3.51 | .70 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,129.50 | 5.02 | .95 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.08 | 4.76 | .95 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,128.63 | 5.01 | .95 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.08 | 4.76 | .95 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,128.01 | 6.33 | 1.20 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,018.84 | 6.01 | 1.20 | ||||||||||||
Bond Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,068.12 | $ | 1.95 | .38 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.91 | 1.91 | .38 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,066.05 | 3.23 | .63 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.67 | 3.16 | .63 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,066.60 | 3.23 | .63 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.67 | 3.16 | .63 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,065.38 | 4.51 | .88 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.43 | 4.41 | .88 | ||||||||||||
Global Bond Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,065.90 | $ | 2.92 | .57 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,021.97 | 2.86 | .57 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,064.66 | 4.20 | .82 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,020.73 | 4.11 | .82 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,064.15 | 4.20 | .82 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,020.73 | 4.11 | .82 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,063.50 | 5.47 | 1.07 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.49 | 5.36 | 1.07 | ||||||||||||
High-Income Bond Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,098.08 | $ | 2.60 | .50 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.32 | 2.51 | .50 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,096.74 | 3.85 | .74 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.12 | 3.71 | .74 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,097.05 | 3.90 | .75 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.08 | 3.76 | .75 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,097.32 | 3.54 | .68 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,021.42 | 3.41 | .68 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,095.44 | 5.20 | 1.00 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,019.84 | 5.01 | 1.00 |
208 | American Funds Insurance Series |
Beginning account value 1/1/2019 | Ending account value 6/30/2019 | Expenses paid during period1 | Annualized expense ratio | |||||||||||||
Mortgage Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,041.57 | $ | 2.28 | .45 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,022.56 | 2.26 | .45 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,040.21 | 3.54 | .70 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.32 | 3.51 | .70 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,040.25 | 3.54 | .70 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.32 | 3.51 | .70 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,039.23 | 4.80 | .95 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.08 | 4.76 | .95 | ||||||||||||
Ultra-Short Bond Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,010.95 | $ | 1.70 | .34 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.11 | 1.71 | .34 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,010.95 | 1.70 | .34 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,023.11 | 1.71 | .34 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,008.98 | 2.94 | .59 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.87 | 2.96 | .59 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,009.91 | 2.59 | .52 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.22 | 2.61 | .52 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,007.79 | 4.18 | .84 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.63 | 4.21 | .84 | ||||||||||||
U.S. Government/AAA-Rated Securities Fund | ||||||||||||||||
Class 1 – actual return | $ | 1,000.00 | $ | 1,047.01 | $ | 1.83 | .36 | % | ||||||||
Class 1 – assumed 5% return | 1,000.00 | 1,023.01 | 1.81 | .36 | ||||||||||||
Class 1A – actual return | 1,000.00 | 1,045.08 | 3.09 | .61 | ||||||||||||
Class 1A – assumed 5% return | 1,000.00 | 1,021.77 | 3.06 | .61 | ||||||||||||
Class 2 – actual return | 1,000.00 | 1,044.47 | 3.09 | .61 | ||||||||||||
Class 2 – assumed 5% return | 1,000.00 | 1,021.77 | 3.06 | .61 | ||||||||||||
Class 3 – actual return | 1,000.00 | 1,045.73 | 2.74 | .54 | ||||||||||||
Class 3 – assumed 5% return | 1,000.00 | 1,022.12 | 2.71 | .54 | ||||||||||||
Class 4 – actual return | 1,000.00 | 1,043.40 | 4.36 | .86 | ||||||||||||
Class 4 – assumed 5% return | 1,000.00 | 1,020.53 | 4.31 | .86 |
See end of tables for footnotes.
American Funds Insurance Series | 209 |
Beginning account value 1/1/2019 | Ending account value 6/30/2019 | Expenses paid during period1,2 | Annualized expense ratio2 | Effective expenses paid during period3 | Effective annualized expense ratio4 | |||||||||||||||||||
Managed Risk Growth Fund | ||||||||||||||||||||||||
Class P1 – actual return | $ | 1,000.00 | $ | 1,115.56 | $ | 1.89 | .36 | % | $ | 3.67 | .70 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,023.01 | 1.81 | .36 | 3.51 | .70 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,114.24 | 3.25 | .62 | 5.03 | .96 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,021.72 | 3.11 | .62 | 4.81 | .96 | ||||||||||||||||||
Managed Risk International Fund | ||||||||||||||||||||||||
Class P1 – actual return | $ | 1,000.00 | $ | 1,112.70 | $ | 1.68 | .32 | % | $ | 4.30 | .82 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,023.21 | 1.61 | .32 | 4.11 | .82 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,111.74 | 3.25 | .62 | 5.86 | 1.12 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,021.72 | 3.11 | .62 | 5.61 | 1.12 | ||||||||||||||||||
Managed Risk Blue Chip Income and Growth Fund | ||||||||||||||||||||||||
Class P1 – actual return | $ | 1,000.00 | $ | 1,066.32 | $ | 1.59 | .31 | % | $ | 3.59 | .70 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,023.26 | 1.56 | .31 | 3.51 | .70 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,065.21 | 3.12 | .61 | 5.12 | 1.00 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,021.77 | 3.06 | .61 | 5.01 | 1.00 | ||||||||||||||||||
Managed Risk Growth-Income Fund | ||||||||||||||||||||||||
Class P1 – actual return | $ | 1,000.00 | $ | 1,113.64 | $ | 1.94 | .37 | % | $ | 3.46 | .66 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,022.96 | 1.86 | .37 | 3.31 | .66 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,112.62 | 3.25 | .62 | 4.77 | .91 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,021.72 | 3.11 | .62 | 4.56 | .91 | ||||||||||||||||||
Managed Risk Asset Allocation Fund | ||||||||||||||||||||||||
Class P1 – actual return | $ | 1,000.00 | $ | 1,097.83 | $ | 1.87 | .36 | % | $ | 3.33 | .64 | % | ||||||||||||
Class P1 – assumed 5% return | 1,000.00 | 1,023.01 | 1.81 | .36 | 3.21 | .64 | ||||||||||||||||||
Class P2 – actual return | 1,000.00 | 1,097.43 | 3.17 | .61 | 4.63 | .89 | ||||||||||||||||||
Class P2 – assumed 5% return | 1,000.00 | 1,021.77 | 3.06 | .61 | 4.46 | .89 |
1 | The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period). |
2 | The “expenses paid during period” and “annualized expense ratio” do not include the expenses of the underlying funds in which each fund invests. |
3 | The “effective expenses paid during period” are equal to the “effective annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the period). |
4 | The “effective annualized expense ratio” reflects the net annualized expense ratio of the class plus the class’s pro-rata share of the weighted average expense ratio of the underlying funds in which it invests. |
210 | American Funds Insurance Series |
Approval of Investment Advisory and Service Agreement – American Funds Insurance Series
American Funds Insurance Series’ board has approved the series’ Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) through April 30, 2020. The agreement was amended to add additional advisory fee breakpoints for International Growth and Income Fund when the fund’s net assets exceed $1.5 billion, and for Capital Income Builder when the fund’s net assets exceed $600 million and $1 billion. The board approved the agreement following the recommendation of the series’ Contracts Committee (the “committee”), which is composed of all of the series’ independent board members. The board and the committee determined in the exercise of their business judgment that each fund’s advisory fee structure was fair and reasonable in relation to the services provided, and that approving the agreement was in the best interests of each fund and its shareholders.
In reaching this decision, the board and the committee took into account information furnished to them throughout the year and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreement, and were advised by their independent counsel with respect to the matters considered. They considered the following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management, compliance, trading, portfolio accounting and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the funds under the agreement and other agreements, as well as the benefits to each fund’s shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit each fund and its shareholders.
2. Investment results
The board and the committee considered the investment results of each fund in light of its objectives. They compared each fund’s investment results with relevant benchmarks, such as market indexes and fund averages, over various periods through September 30, 2018. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results.
Global Growth Fundseeks to provide long-term growth of capital by investing primarily in common stocks of companies located around the world. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Funds Average and (ii) the MSCI All Country World Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund generally compared favorably to the results of these indexes.
Global Small Capitalization Fundseeks to provide long-term growth of capital by investing primarily in stocks of smaller companies located around the world. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Small-/Mid-Cap Funds Average and (ii) the MSCI All Country World Small Cap Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes, though the fund’s results were higher for the one-year, 20-year and lifetime periods.
American Funds Insurance Series | 211 |
Growth Fundseeks to provide growth of capital by investing primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Capital Appreciation Funds Average, (ii) the Lipper Growth Funds Average and (iii) the Standard & Poor’s 500 Composite Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund generally compared favorably to the results of these indexes.
International Fundseeks to provide long-term growth of capital by investing primarily in common stocks of companies domiciled outside the United States. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper International Funds Average and (ii) the MSCI All Country World Index ex USA. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund generally compared favorably to the results of these indexes.
New World Fundseeks long-term capital appreciation by investing primarily in stocks of companies with significant exposure to countries with developing economies and/or markets. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Emerging Markets Funds Average, (ii) the MSCI All Country World Index and (iii) the MSCI Emerging Markets Index. They reviewed the results for the one-year, three-year, five-year, 10-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes.
Blue Chip Income and Growth Fundseeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal by investing primarily in dividend-paying common stocks of larger, more established companies domiciled in the United States with market capitalizations of $4 billion and above. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Growth and Income Funds Average and (ii) the Standard & Poor’s 500 Composite Index. They reviewed the results for the one-year, three-year, five-year, 10-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes.
Global Growth and Income Fundseeks to provide long-term growth of capital while providing current income by investing primarily in well-established companies located around the world. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Funds Average and (ii) the MSCI All Country World Index. They reviewed the results for the one-year, three-year, five-year, 10-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund generally compared favorably to the results of these indexes for the longer term periods and were mixed compared to the results of these indexes for the shorter periods.
Growth-Income Fundseeks to provide long-term growth of capital and income by investing primarily in common stocks or other securities that demonstrate the potential for appreciation and/or dividends. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Growth and Income Funds Average and (ii) the Standard & Poor’s 500 Composite Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund generally compared favorably to the results of these indexes.
International Growth and Income Fundseeks to provide long-term growth of capital while providing current income by investing primarily in stocks of larger, well-established companies domiciled outside the United States, including in developing countries. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper International Funds Average and (ii) the MSCI All Country World Index ex USA. They reviewed the results for the one-year, three-year, five-year and lifetime periods, and placed greater emphasis on longer term periods. They noted the fund’s relatively short history and that the investment results of the fund were higher than the results of these indexes over the lifetime period, though lower than the results of these indexes over the shorter periods.
212 | American Funds Insurance Series |
Capital Income Builderseeks to provide a level of current income that exceeds the average yield on U.S. stocks generally and to provide a growing stream of income over the years. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Equity Income Funds Average, (ii) the MSCI All Country World Index, (iii) the Bloomberg Barclays U.S. Aggregate Index and (iv) a customized index composed of 70% MSCI index and 30% Bloomberg Barclays index. They reviewed the results for the one-year, three-year and lifetime periods, and placed greater emphasis on longer term periods. They noted the fund’s relatively short history, and that the investment results of the fund were mixed compared to the results of these indexes.
Asset Allocation Fundseeks to provide high total return (including income and capital gains) consistent with preservation of capital over the long term by investing in a diversified portfolio of stocks and other equity securities, bonds and other intermediate and long-term debt securities, and money market instruments (debt securities maturing in one year or less). The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Balanced Funds Average, (ii) the Bloomberg Barclays U.S. Aggregate Index, (iii) the Standard and Poor’s 500 Composite Index and (iv) a customized index composed of 60% S&P 500 index and 40% Bloomberg Barclays index. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes.
Global Balanced Fundseeks the balanced accomplishment of three objectives — long-term growth of capital, conservation of principal and current income — by investing in equity and debt securities of companies around the world that offer the opportunity for growth and/or provide dividend income, while also constructing its portfolio to protect principal and limit volatility. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Flexible Portfolio Funds Average, (ii) the Bloomberg Barclays Global Aggregate Index, (iii) the MSCI All Country World Index and (iv) a customized index composed of 60% MSCI index and 40% Bloomberg Barclays index. They reviewed the results for the one-year, three-year, five-year and lifetime periods, and placed greater emphasis on longer term periods. They noted the fund’s relatively short history, and that the investment results of the fund were mixed compared to the results of these indexes.
Bond Fundseeks to maximize current income and preserve capital by investing primarily in bonds. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Core Bond Funds Average and (ii) the Bloomberg Barclays U.S. Aggregate Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes.
Global Bond Fundseeks to provide a high level of total return by investing primarily in debt securities of governmental, supranational and corporate issuers domiciled in various countries and denominated in various currencies, including U.S. dollars. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Global Income Funds Average and (ii) the Bloomberg Barclays Global Aggregate Index. They reviewed the results for the one-year, three-year, five-year, 10-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes.
High-Income Bond Fundseeks to provide a high level of current income and, secondarily, capital appreciation by investing primarily in higher yielding and generally lower quality debt securities. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper High Yield Funds Average and (ii) the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes.
American Funds Insurance Series | 213 |
Mortgage Fundseeks to provide current income and preservation of capital by investing in mortgage-related securities, including securities collateralized by mortgage loans and contracts for future delivery of such securities. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper GNMA Funds Average, (ii) the Lipper Intermediate U.S. Government Funds Average and (iii) the Bloomberg Barclays U.S. Mortgage Backed Securities Index. They reviewed the results for the one-year, three-year, five-year and lifetime periods, and placed greater emphasis on longer term periods. They noted the fund’s relatively short history and that the investment results of the fund were mixed compared to the results of these indexes.
Ultra-Short Bond Fundseeks to provide an opportunity to earn income on cash reserves while preserving the value of investment and maintaining liquidity. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper Ultra Short Obligation Funds Average, (ii) the Lipper Money Market Funds Average and (iii) the Bloomberg Barclays Short-Term Government/Corporate Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes for the one-year, three-year and lifetime periods, though lower than the results of these indexes for the five-year, 10-year and 20-year periods.
U.S. Government/AAA-Rated Securities Fundseeks to provide a high level of current income, as well as to preserve principal. The board and the committee reviewed the fund’s investment results measured against (i) the Lipper General U.S. Government Funds Average and (ii) the Bloomberg Barclays U.S. Government/Mortgage Backed Securities Index. They reviewed the results for the one-year, three-year, five-year, 10-year, 20-year and lifetime periods, and placed greater emphasis on longer term periods. They noted that the investment results of the fund were mixed compared to the results of these indexes.
The board and the committee concluded that each fund’s investment results have been satisfactory for renewal of the agreement, and that CRMC’s record in managing the funds indicated that its continued management should benefit each fund and its shareholders.
3. Advisory fees and total expenses
The board and the committee compared the advisory fees and total expense levels of each fund to those of other relevant funds. They observed that the total expenses of each fund were less than the median total expenses of the other funds included in its Lipper category described above. They also observed that each fund’s advisory fees were less than the median fees of the other funds included in its Lipper category, other than Global Balanced Fund.
The board and the committee also considered the breakpoint discounts in each fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. The board and committee noted that CRMC had agreed to additional breakpoints for the advisory fee schedules of International Growth and Income Fund and Capital Income Builder. In addition, they reviewed information regarding advisory fees charged to clients of an affiliate of CRMC. They noted that, to the extent there were differences between the advisory fees paid by each fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational and regulatory differences between advising the funds and the other clients. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services provided, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.
4. Ancillary benefits
The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with the series and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the series’ principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting that through December 31, 2018, CRMC benefited from research obtained with commissions from portfolio transactions made on behalf of the funds, and since that time has undertaken to bear the cost of obtaining such research. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by each fund.
214 | American Funds Insurance Series |
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its track record of investing in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. They reviewed information on the profitability of the investment adviser and its affiliates. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the funds’ advisory fee structure and CRMC’s sharing of potential economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. The board and the committee concluded that each fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and each fund’s shareholders.
American Funds Insurance Series | 215 |
Approval of Investment Advisory and Service Agreement and Subadvisory Agreement – American Funds Insurance Series Managed Risk Funds
American Funds Insurance Series’ board has approved the series’ Investment Advisory and Service Agreement (the “advisory agreement”) with Capital Research and Management Company (“CRMC”) with respect to the Managed Risk Funds through April 30, 2020. The board has also approved the series’ Subadvisory Agreement (the “subadvisory agreement”) with CRMC and Milliman Financial Risk Management LLC (“Milliman FRM”) with respect to these funds for the same term. The subadvisory agreement was amended to add an additional subadvisory fee breakpoint for when the funds’ net assets exceed $10 billion. The advisory and subadvisory agreements are jointly referred to below as the “agreements.” The board approved the agreements following the recommendation of the series’ Contracts Committee (the “committee”), which is composed of all of the series’ independent board members. The board and the committee determined in the exercise of their business judgment that each fund’s advisory fee structure was fair and reasonable in relation to the services provided, and that approving the agreements was in the best interests of each fund and its shareholders.
In reaching this decision, the board and the committee took into account information furnished to them throughout the year and otherwise provided to them, as well as information prepared specifically in connection with their review of the agreements, and were advised by their independent counsel with respect to the matters considered. They considered the following factors, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of CRMC and the Capital Group organization; the resources and systems CRMC devotes to investment management, compliance, trading, portfolio accounting and other services; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of the oversight of Milliman FRM’s services provided by CRMC, the administrative, compliance and shareholder services provided by CRMC to the funds under the agreements and other agreements, as well as the benefits to each fund’s shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit each fund and its shareholders.
The board and the committee also considered the depth and quality of Milliman FRM’s investment management process, including its experience in applying the Milliman Managed Risk Strategy to other funds in the series and risk management services for other clients; the experience, capability and integrity of its senior management and other personnel; and the services provided to each fund under the subadvisory agreement. The board and the committee concluded that the nature, extent and quality of the services provided by Milliman FRM have benefited and should continue to benefit each fund and its shareholders.
2. Investment results
The board and the committee considered the investment results of each fund in light of its objectives. They compared each fund’s investment results with relevant benchmarks, such as market indexes and fund averages, over various periods through September 30, 2018. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results.
Managed Risk Growth Fundseeks to provide growth of capital while seeking to manage volatility and provide downside protection. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the Standard & Poor’s 500 Composite Index and (ii) the S&P 500 Managed Risk Index – Moderate Aggressive. They reviewed the results for the one-year, three-year, five-year and lifetime periods, and placed greater emphasis on longer term periods. They noted the fund’s relatively short history and that the investment results of the fund were mixed compared to the results of these indexes.
216 | American Funds Insurance Series |
Managed Risk International Fundseeks to provide long-term growth of capital while seeking to manage volatility and provide downside protection. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the MSCI All Country World Index ex USA and (ii) the Standard & Poor’s EPAC Ex-Korea LargeMidCap Managed Risk Index – Moderate Aggressive. They reviewed the results for the one-year, three-year, five-year and lifetime periods, and placed greater emphasis on longer term periods. They noted the fund’s relatively short history, and that the investment results of the fund were mixed compared to the results of these indexes.
Managed Risk Blue Chip Income and Growth Fundseeks to produce income exceeding the average yield on U.S. stocks generally and to provide an opportunity for growth of principal consistent with sound common stock investing, in each case while seeking to manage volatility and provide downside protection. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the Standard & Poor’s 500 Composite Index and (ii) the S&P 500 Managed Risk Index – Moderate. They reviewed the results for the one-year, three-year, five-year and lifetime periods, and placed greater emphasis on longer term periods. They noted the fund’s relatively short history, and that the investment results of the fund were mixed compared to the results of these indexes for the three-year period, and lower than the results of these indexes for the other periods.
Managed Risk Growth-Income Fundseeks to achieve long-term growth of capital and income while seeking to manage volatility and provide downside protection. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the Standard & Poor’s 500 Composite Index and (ii) the S&P 500 Managed Risk Index – Moderate. They reviewed the results for the one-year, three-year, five-year and lifetime periods, and placed greater emphasis on longer term periods. They noted the fund’s relatively short history, and that the investment results of the fund were mixed compared to the results of these indexes.
Managed Risk Asset Allocation Fundseeks to provide high total return (including income and capital gains) consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection. The board and the committee reviewed the fund’s investment results measured against the investment results of (i) the Bloomberg Barclays U.S. Aggregate Index, (ii) the Standard & Poor’s 500 Composite Index and (iii) the S&P 500 Managed Risk Index – Moderate Conservative. They reviewed the results for the one-year, three-year, five-year and lifetime periods, and placed greater emphasis on longer term periods. They noted the fund’s relatively short history, and that the investment results of the fund were mixed compared to the results of these indexes.
The board and the committee also considered volatility of the funds compared with the S&P 500 Managed Risk indexes noted above and those of a group of funds with volatility management strategies identified by management for the nine-month, one-year and three-year periods, and for the lifetime of each fund through September 30, 2018. They noted that the volatility of Managed Risk Growth Fund and Managed Risk Growth-Income Fund was greater than that of the S&P 500 Managed Risk index, the average of the peer group funds and most of the selected funds for all periods. They noted that the volatility of Managed Risk International Fund was lower than the average of the peer group funds for all periods, and lower than the S&P 500 Managed Risk index for the three-year and lifetime periods. They also noted that the volatility of Managed Risk Blue Chip Income and Growth Fund was higher than the average of the peer group funds and higher than the S&P 500 Managed Risk index for all periods. In addition, they noted that the volatility for Managed Risk Asset Allocation Fund was higher than that of the S&P 500 Managed Risk index and higher than the average of the peer group funds for all periods. The board and the committee concluded that each fund’s investment results and the results of the services provided by CRMC and Milliman FRM have been satisfactory for renewal of the agreements, and that CRMC’s and Milliman FRM’s record in managing the funds indicated that their continued management should benefit each fund and its shareholders.
3. Advisory fees and total expenses
The board and the committee compared the total expense levels of each fund to those of other relevant funds. The board and the committee noted CRMC’s waiver of a portion of the advisory fee payable by each fund under the advisory agreement, CRMC’s commitment not to remove the waiver without board approval and CRMC’s agreement to pay the fees due to Milliman FRM under the subadvisory agreement. They observed that the total expenses for Managed Risk Growth Fund were lower than the median and average for the Lipper Growth Funds category, that the total expenses for Managed Risk International Fund were lower than the
American Funds Insurance Series | 217 |
median and average for the Lipper International Funds category, and that the total expenses for Managed Risk Blue Chip Income and Growth Fund were at or slightly above the median of the Lipper Growth and Income Funds category. They also noted that the total expenses for Managed Risk Growth-Income Fund were lower than the median and average for the Lipper Growth and Income Funds category, and that the total expenses for Managed Risk Asset Allocation Fund were lower than the median and average for the Lipper Flexible Portfolio Funds category. The board and the committee also considered the advisory fees payable by the funds and determined that they were reasonable.
The board and the committee also considered the breakpoint discounts in each underlying fund’s advisory fee structure that reduce the level of fees charged by CRMC to the underlying fund as its assets increase. In addition, they reviewed information regarding advisory fees paid by clients of an affiliate of CRMC. They noted that, to the extent there were differences between the advisory fee schedule for the funds and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational, regulatory and marketing differences between advising the funds and the other clients. They also reviewed the fees paid to Milliman FRM by other funds which it advised or subadvised. The board and the committee concluded that each fund’s cost structure was fair and reasonable in relation to the services that CRMC provided, directly and through Milliman FRM, and that each fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC (and indirectly to Milliman FRM) by the funds.
4. Ancillary benefits
The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with the series and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the series’ principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC and its institutional management affiliates in managing other investment vehicles. The board and the committee reviewed CRMC’s portfolio trading practices, noting that through December 31, 2018, CRMC benefited from research obtained with commissions from portfolio transactions made on behalf of the funds, and since that time has undertaken to bear the cost of obtaining such research. The Board and the committee also reviewed similar ancillary benefits received by Milliman FRM as a result of its relationship with the series. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC (and indirectly to Milliman FRM) by the funds.
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and related cost allocation methodology as well as its track record of investing in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. They reviewed information on the profitability of the investment adviser and its affiliates. The board and the committee also compared CRMC’s profitability and compensation data to the reported results and data of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They also considered CRMC’s sharing of potential economies of scale, or efficiencies, through breakpoints and other fee reductions and costs voluntarily absorbed. The board and the committee concluded that each fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and each fund’s shareholders.
218 | American Funds Insurance Series |
This page was intentionally left blank.
American Funds Insurance Series | 219 |
This page was intentionally left blank.
220 | American Funds Insurance Series |
This page was intentionally left blank.
American Funds Insurance Series | 221 |
This page was intentionally left blank.
222 | American Funds Insurance Series |
This page was intentionally left blank.
American Funds Insurance Series | 223 |
Office of the series
333 South Hope Street
Los Angeles, CA 90071-1406
Investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
Investment subadviser
Milliman Financial Risk Management LLC
(Managed Risk Funds only)
71 South Wacker Drive, 31st Floor
Chicago, IL 60606
Custodians of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Bank of New York Mellon
(Managed Risk Funds only)
One Wall Street
New York, NY 10286
Counsel
Morgan, Lewis & Bockius LLP
One Federal Street
Boston, MA 02110-1726
Independent registered public accounting firm
PricewaterhouseCoopers LLP
601 South Figueroa Street
Los Angeles, CA 90017-3874
224 | American Funds Insurance Series |
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the series prospectuses and summary prospectuses, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The series files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
Complete June 30, 2019, portfolios of American Funds Insurance Series’ investments are available free of charge by calling AFS or visiting the SEC website (where they are part of Form N-CSR).
American Funds Insurance Series files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT-EX. This filing is available free of charge on the SEC website. Additionally, the list of portfolio holdings is available by calling AFS.
This report is for the information of American Funds Insurance Series investors, but it also may be used as sales literature when preceded or accompanied by the current prospectuses or summary prospectuses for American Funds Insurance Series and the prospectus for the applicable insurance contract, which give details about charges, expenses, investment objectives and operating policies of the series. If used as sales material after September 30, 2019, this report must be accompanied by a statistical update for the most recently completed calendar quarter.
Fund attribution data was produced using FactSet, a third-party software system, based on daily portfolios. Securities in their initial period of acquisition may not be included in this analysis. The analysis includes equity investments only and excludes forward contracts and fixed income investments, if applicable. It does not account for buy-and-sell transactions that might have occurred intraday. As a result, average portfolio weight percentages are approximate, and the actual average portfolio weight percentages might be higher or lower. Data elements, such as pricing, income, market cap, etc., were provided by FactSet. The indexes provided for attribution are based on FactSet’s methodology. The indexes are broad-based market benchmarks and may not be used by Capital Group® as the sole comparative index for the funds. Capital Group believes the software and information from FactSet to be reliable. However, Capital Group cannot be responsible for inaccuracies, incomplete information or updating of information by FactSet.
Futures may not provide an effective hedge of the underlying securities because changes in the prices of futures may not track those of the securities they are intended to hedge. In addition, the managed risk strategy may not effectively protect the fund from market declines and will limit the fund’s participation in market gains. The use of the managed risk strategy could cause the fund’s return to lag that of the underlying fund in certain market conditions.
Bloomberg® is a trademark and service mark of Bloomberg Finance L.P. (collectively with its affiliates, “Bloomberg”). Barclays® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approve or endorse this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. This report, and any product, index or fund referred to herein, is not sponsored, endorsed or promoted in any way by J.P. Morgan or any of its affiliates who provide no warranties whatsoever, express or implied, and shall have no liability to any prospective investor in connection with this report. J.P. Morgan disclaimer: http://www.jpmorgan.com/pages/jpmorgan/ib/girg. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. The S&P 500 is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2019 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part is prohibited without written permission of S&P Dow Jones Indices LLC.
American Funds Distributors, Inc., member FINRA.
The Capital Advantage®
Since 1931, Capital Group, home of American Funds, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM— has resulted in superior outcomes.
Aligned with investor success
We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. American Funds Insurance Series portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.1
The Capital System
The Capital System combines individual accountability with teamwork. Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.
American Funds Insurance Series superior outcomes
American Funds Insurance Series equity funds have beaten their comparable Lipper indexes in 91% of 10-year periods and 100% of 20-year periods.2 Our fixed income funds have helped investors achieve diversification through attention to correlation between bonds and equities.3We strive to keep management fees competitive. Over the past 20 years, most funds’ fees have been below industry averages.4
1 | Portfolio manager experience as of the American Funds Insurance Series prospectus dated May 1, 2019. | |
2 | Based on Class 1 share results for rolling periods through December 31, 2018. Periods covered are the shorter of the fund’s lifetime or since the inception date of the comparable Lipper index or average. The comparable Lipper indexes are: Global Funds Index (Global Growth Fund, Global Growth and Income Fund), Growth Funds Index (Growth Fund), International Funds Index (International Fund), Emerging Markets Funds Index (New World Fund), Growth & Income Funds Index (Blue Chip Income and Growth Fund, Growth-Income Fund), Balanced Funds Index (Asset Allocation Fund), Core Bond Funds Index (Bond Fund), Global Income Funds Index (Global Bond Fund), High Yield Funds Index (High-Income Bond Fund), Ultra-Short Obligation Funds Index (Ultra-Short Bond Fund) and General U.S. Government Funds Index (U.S. Government/AAA-Rated Securities Fund). The Lipper Global Small-/Mid-Cap Funds Average was used for Global Small Capitalization Fund. Lipper source: Thomson Reuters Lipper. There have been periods when the fund has lagged the index. | |
3 | Based on Class 1 share results as of December 31, 2018. Four of our five fixed income funds showed a three-year correlation below 0.1. Standard & Poor’s 500 Composite Index was used as an equity market proxy. Correlation based on monthly total returns. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from –1 to 1. A positive correlation close to 1 implies that as one security moves, either up or down, the other security will move in “lockstep,” in the same direction. A negative correlation close to –1 indicates that the securities have moved in the opposite direction. | |
4 | Based on management fees for the 20-year period ended December 31, 2018, versus comparable Lipper categories, excluding funds of funds. |
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Table of Contents
Item 2. Code of Ethics.
Not applicable to this filing.
Item 3. Audit Committee Financial Expert.
Not applicable to this filing.
Item 4. Principal Accountant Fees and Services.
Not applicable to this filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable to this filing.
Item 6. Investments.
(a) Please see portfolio of investments contained in the Reports to Stockholders included under Item 1 of this formN-CSR.
(b) Not applicable to this filing.
Item 7. Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies.
Not applicable to this filing.
Item 8. Portfolio Managers ofClosed-End Management Investment Companies.
Not applicable to this filing.
Item 9. Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers.
Not applicable to this filing.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable to this filing.
Item 11. Controls and Procedures.
(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Registrant’s disclosure controls and procedures (as defined inRule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR270.30a-3(c))) are effective, as of a date within 90 days of the filing date of thisForm N-CSR, to provide reasonable assurance that the information required to be disclosed by the Registrant onForm N-CSR is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, based on their evaluation of these disclosure controls and procedures required byRule 30a-3(b) under the 1940 Act (17 CFR270.30a-3(b)) andRules 13a-15(b) or15d-15(b) under the Securities Exchange Act of 1934 (17 CFR240.13a-15(b) or240.15d-15(b)).
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act (17 CFR270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities forClosed-End Management Investment Companies
Table of Contents
Not applicable to this filing.
Item 13. Exhibits.
(a)(1) Code of Ethics (Item 2) is not applicable to this filing.
(a)(2) Certifications of the Principal Executive Officer and Principal Financial Officer of the Registrant as required byRule 30a-2(a) under the 1940 Act (17 CFR270.30a-2(a)) are attached hereto as Exhibit 99CERT.
(a)(3) Not applicable to this filing.
(a)(4) Not applicable to this filing.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as required by Rule30a-2(b), under the 1940 Act (17 CFR270.30a-2(b)), Rule15d-14(b) under the Securities Exchange Act of 1934 (17 CFR240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) are attached hereto as Exhibit 99.906CERT.
Table of Contents
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) MML Series Investment Fund
By (Signature and Title) /s/ Eric Wietsma
Eric Wietsma, President and Principal Executive Officer
Date 8/21/2019
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/ Eric Wietsma
Eric Wietsma, President and Principal Executive Officer
Date 8/21/2019
By (Signature and Title) /s/ Renee Hitchcock
Renee Hitchcock, Treasurer and Principal Financial Officer
Date 8/21/2019