An easy way to diversify

Transcription

1 American Funds Asset Allocation Portfolios Annuities Variable An easy way to diversify Target allocations as of May 1, 2018* * Allocations subject to change at any time.

2 Available asset allocation options for investing in the MetLife Variable Annuity In addition to stand alone and other asset allocation investment options available in MetLife variable annuities, three American Funds asset allocation portfolios are also offered.* Each American Funds asset allocation portfolio invests in a selection of underlying, actively managed American Funds Insurance Series funds and other funds within the American Funds family. They are designed to help different types of investors with different levels of risk tolerance achieve optimal diversification. To design the target allocations for each asset allocation portfolio, Brighthouse Investment Advisers, LLC, the investment adviser to the portfolios, bases its target allocations on each portfolio s investment objective, an analysis of the economy, evolving market trends and other factors. Each portfolio is actively managed and subject to change. Diversification does not ensure a profit or protect against loss. * Brighthouse Investment Advisers, LLC, is the investment adviser to each of the portfolios. The underlying American Funds Insurance Series funds are managed by Capital Research and Management Company.

3 General target allocations The pie charts represent the general target allocations for each asset allocation portfolio among the primary asset classes equity and fixed income. Brighthouse Investment Advisers, LLC, the investment adviser, establishes specific target investment percentages for the asset classes and the various components of each asset class category. The underlying funds in which the asset allocation portfolio invests are then selected. Target allocations may vary from actual allocations. Target allocations are reviewed at least annually and may be revised. While the portfolios do not have a specific goal for cash, some of the underlying fund managers may hold cash in their fund to facilitate liquidity or as a defensive strategy. Percentages as of 5/1/2018 U.S. Investment Grade U.S. High Yield Non-U.S. Fixed Income U.S. Equity Non-U.S. Equity Pie charts show target allocations. Actual allocations may vary. Equity 53% / Fixed Income 47% Equity 69% / Fixed Income 31% Equity 90% / Fixed Income 10% 3% 3% 5% 2% 24% 39% 5% 40% 19% 4% 50% 26% 3% 64% 13% American Funds moderate allocation portfolio May be appropriate for investors seeking capital growth by offering high total return in the form of income and growth of capital while keeping volatility relatively low. American Funds balanced allocation portfolio May be appropriate for investors seeking capital growth by offering a balance between current income and growth of capital, where growth of capital takes precedence over the reduction of volatility. American Funds growth allocation portfolio May be appropriate for investors seeking capital growth with a level of risk expected to be lower than that of an investor fully invested in stock investment options. Allocations to bond investment options with some exposure to international equities are used with the intention of reducing risk.

4 American funds asset allocation portfolios Target allocations as of May 1, 2018 The allocation percentages shown are target allocations, as of the stated date, for investments in the underlying funds for each asset allocation portfolio. Allocations are established by Brighthouse Investment Advisers, LLC, the investment adviser, based on, among other things, the underlying fund s investment objectives, policies, and investment processes. Brighthouse Investment Advisers, LLC, is responsible for the selection, retention and/or replacement of each fund, as well as the reallocation of assets among the underlying funds for each asset allocation portfolio. There may be limits on the amount of cash inflows some underlying portfolios may accept from investors, including the asset allocation portfolios. Brighthouse Investment Advisers, LLC, may take into account these capacity considerations when allocating investments among the underlying funds. Brighthouse Investment Advisers, LLC, may make changes to the allocations or underlying funds at any time. Underlying American Funds Insurance Series funds American Funds moderate allocation portfolio American Funds balanced allocation portfolio American Funds growth allocation portfolio Style box category American Funds global small capitalization fund C,F,G,M, SC 1% 3% 5% Global equity American Funds amcap fund 5% 8% 12% Large cap growth American Funds growth fund C,F,G,M 5% 9% 11% Large cap growth American Funds international fund C,F,G,M 5% 6% 8% International American Funds international growth and income fund F 6% 8% 10% Global large cap American Funds new world fund C,DI,F,G,LR,M,SC 1% 2% 3% Diversified emerging markets American Funds blue chip income & growth fund 8% 8% 10% Large cap blend American Funds fundamental investors fund 5% 8% 11% Large cap blend American Funds growth-income fund C,F,G,IO,M 8% 9% 10% Large cap blend American Funds american mutual fund 9% 8% 10% Large cap value American Funds bond fund C,DI,F,FD,H,IF,LR,M,R,S,Z 19% 13% 4% Intermediate-term bond American Funds global bond fund F,H 3% 3% 2% Global bond American Funds high-income bond fund C,DI,F, H,LR,M,Z 5% 4% 3% High yield bond American Funds U.S. Government/ AAA-rated securities fund C,DI,F,R,S,Z 20% 11% 1% Short-government bond 100% 100% 100% The investment objectives and policies of the portfolios may be similar to those of other portfolios managed by the same investment adviser. No representation is made, and there can be no assurance given, that the portfolios investment results will be comparable to the investment results of any other portfolio, including other portfolios with the same investment adviser or manager. The portfolios investment results may be expected to differ, and may be higher or lower than the investment results of such other portfolios. Differences in portfolio size, investments held, contract and portfolio expenses, and other factors are all expected to contribute to differences in performance.

5 While diversification through an asset allocation strategy is a useful technique that can help to manage overall portfolio risk and volatility, there is no certainty or assurance that a diversified portfolio will enhance overall return or outperform one that is not diversified. Asset allocation portfolios are fund-of-funds portfolios. Because of this two tier structure, each asset allocation portfolio bears its own investment management fee and expenses, which includes the cost of the asset allocation services it provides, as well as its pro rata share of the management fee and expenses of each underlying portfolio. Without these asset allocation services, the contract owner s expenses would be lower. Diversification does not ensure a profit or protect against loss. See prospectus for details. The asset allocation portfolios do not ensure a profit and may not be appropriate for all investors, particularly those who are interested in directing their own investments. Inclusion of an investment option in an asset allocation portfolio does not indicate that a particular investment option is superior to any investment option not included in a portfolio. These portfolios contain different investments than similarly named mutual funds offered by the investment manager. Investment results may be higher or lower. C Invests in stocks of small capitalization or mid capitalization companies. Such stocks may fluctuate in value more than stocks of large capitalization companies, and may perform poorly due to the issuers limited product lines, markets, financial resources or management experience. DI The prices of, and the income generated by, bonds and other debt securities held by the 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. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund 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. Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken 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. 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 the 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 fund s investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks. F Invests in securities of foreign companies and governments, which involves risks not typically associated with U.S. investments, including changes in currency exchange rates; economic, political and social conditions in foreign countries; and governmental regulations and accounting standards different from those in the U.S. FD The fund may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve the fund selling mortgagerelated securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase the fund s market exposure, and the market price of the securities that the fund contracts to repurchase could drop below their purchase price. While the 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 the fund. G 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. H Invests in high yield or junk bonds, which are issued by companies that pose a greater risk of not paying the interest, dividends or principal their bonds have promised to pay. Such bonds are especially subject to adverse changes in interest rates or other general market conditions, or to downturns in the issuers companies or industries. IF 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 the fund s distributable income during periods of extreme 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 the fund.

6 IO Income provided by the 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. LR Certain fund holdings may be deemed to be less liquid or illiquid because they cannot be readily sold without significantly impacting the value of the holdings. Liquidity risk 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. M The investment adviser to the fund actively manages the fund s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives. R S Invests in Real Estate Investment Trusts (REITs), which attempt to profit from the rental and sale of real property or from real estate mortgages. REITs may suffer from declines in real estate values or changes in interest rates. Invests 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. 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. SC 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. Z May invest in derivatives to obtain investment exposure, enhance return or protect the Portfolio s assets from unfavorable shifts in the value or rate of underlying investments. Because of their complex nature, some derivatives may not perform as intended, can significantly increase the Portfolio s exposure to the existing risks of the underlying investments and may be illiquid and difficult to value. As a result, the Portfolio may not realize the anticipated benefits from a derivative it holds or it may realize losses. Derivative transactions may create investment leverage, which may increase the volatility and may require liquidation of securities when it may not be advantageous to do so.

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8 metlife.com Investment performance is not guaranteed. Prospectuses for variable products issued by Metropolitan Life Insurance Company. To obtain a prospectus, please contact MetLife at the service center number reflected on the enrollment materials. The contract prospectus contains information about the contract s features, risks, charges and expenses. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The investment objectives, risks and policies of the investment options, as well as other information about the investment options, are described in their respective prospectuses. Please read the prospectuses and consider this information carefully before investing. Product availability and features vary by state. Variable annuities are long-term investments designed for retirement purposes. MetLife variable products have limitations, exclusions, charges, termination provisions and terms for keeping them in force. There is no guarantee that any of the variable investment options in this product will meet their stated goals or objectives. The account or cash value is subject to market fluctuations and investment risk so that, when withdrawn, it may be worth more or less than its original value. All product guarantees, including optional benefits, are based on the claims-paying ability and financial strength of the issuing insurance company. Variable annuity withdrawals of taxable amounts are subject to ordinary income tax and if made before age 59½, may be subject to a 10% Federal income tax penalty. Some broker/dealers may refer to the 10% Federal income tax penalty as an additional tax or additional income tax, or use the terms interchangeably when discussing withdrawals taken prior to age 59½. Distributions of taxable amounts from a non-qualified annuity may also be subject to the 3.8% Unearned Income Medicare Contribution Tax on Net Investment Income if an individual s modified adjusted gross income exceeds the applicable threshold amount. Withdrawals will reduce the living and death benefits and account value. Withdrawals may be subject to withdrawal charges. Variable life insurance withdrawals may have an adverse effect on the policy s cash value and death benefit. American Funds Asset Allocation Portfolios are available with the following products: MetLife Preference Plus Account, MetLife Enhanced Preference Plus Account, MetLife Financial Freedom Account (Exclusive-v1) and MetLife Financial Freedom Account (Non-Exclusive) G Gold Track Select NY L-14669, NYNON4223, L NYNON4223, L-14669NY4223 and L14672 NY4223. MetLife Financial Freedom Select (E & E Bonus) and MetLife Financial Freedom Select (B,L,C) on G_MFFS-1/8/04 G.FFS(0802). Variable products are issued by Metropolitan Life Insurance Company (MLIC). Securities including variable products are distributed by MetLife Investors Distribution Company (MLIDC). Metropolitan Life Insurance Company 200 Park Avenue New York, NY MLR L [exp0519][All States] 2018 MetLife Services and Solutions, LLC