Fixed Income 3-31-217 This fact sheet is provided because the Investment Division is available within a variable universal life policy issued by New York Life Insurance and Annuity Corporation. Variable Universal Life (VUL) is a type of permanent insurance which provides a death benefit in exchange for flexible premiums. The policy's cash value, including any assets allocated to the Investment Divisions, is subject to market risks and fluctuates in value. VUL policies are subject to insurance related fees and charges such as mortality and expense risk charges, cost of insurance, administrative fees, and underlyingfund expenses. This material is authorized for distribution to the general public only if preceded or accompanied by an effective policy prospectus and fund prospectus. Policyowners should consider the investment objectives, risks, charges, and expenses of the policy and the Investment Divisions carefully before investing. The prospectus for the policy and the underlying fund prospectus contain this and other information. Please read the prospectuses carefully before investing. To obtain a copy of the prospectuses, please contact your Registered Representative or call (888) 695-4748. Investment Information Investment Strategy The investment seeks as high a level of current income as is consistent with preservation of capital and liquidity. The fund normally invests at least 99.5% of total assets in cash, U.S. government securities and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash or government securities). It invests in U.S. government securities issued by entities that are chartered or sponsored by Congress but whose securities are neither issued nor guaranteed by the U.S. Treasury. Benchmark Description: USTREAS T-Bill Auction Ave 3 Mon The index measures the performance of the average investment rate of US T-Bills securities with the maturity of 3 months. Category Description: Money Market-Taxable These portfolios invest in short-term money market securities in order to provide a level of current income that is consistent with the preservation of capital. These funds do not designate themselves as Prime in Form N-MFP. Morningstar Style Box Morningstar Fixed Income Style Box as of 3-31-17 Ltd Mod Ext High Med Low Risk Level Low - Moderate - High - Highest The Risk Levels are based on an analysis of the 1-Year Average Standard Deviation (1-Year ASD) of the Morningstar Inc. investment company categories in which the Investment Division resides. The Risk Levels are defined by Morningstar Inc. benchmarks which are assigned grades of Low, Moderate, High and Highest based on their 1-Year ASDs as of December 31, 216. The Risk Levels are analyzed and updated at least on an annual basis. Morningstar Inc. is a widely recognized independent research firm which ranks mutual funds and other investment companies by overall performance, investment objective and assets. Principal Risks An investment in the Portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the portfolio seeks to preserve the value of your investment at $1. per share, it is possible to lose money by investing in the fund. Fees and Expenses Fees and Expenses as of 4-28-16 Management Fee.17% Prospectus Net Expense Ratio.25% Fund Facts Inception Date 4-1-82 Primary Benchmark USTREAS T-Bill Auction Ave 3 Mon Portfolio Manager(s) Management Team. Since 2-5. Firm Name Fidelity Management & Research Company Advisor Fidelity Management & Research Company Subadvisor FMR Investment Management (U.K.) Limited Total Number of Holdings 86 Avg Market Cap ($M). Annual Turnover Ratio % Total Net Assets ($mil) 3,823.75 Morningstar Proprietary Statistics Out of # of Morningstar Rating Investments 3 Year.. 5 Year.. 1 Year.. Overall.. Note An investment's overall Morningstar Rating, based on its riskadjusted return, is a weighted average of its applicable 3-, 5-, and 1-year Ratings. Page 1 of 6
Fixed Income 3-31-217 Risk Evaluation 3-Yr Risk Measures as of 3-31-17 Port Avg Rel Bmark Rel Cat Standard Deviation.4.59. Sharpe Ratio -2.47.. Information Ratio -2.47.. R-Squared... Tracking Error.3.. Excess Return -.8.. Beta... Alpha... Number of Positive Months 36. 1.3 Positive Month Average %.1. 1.67 Number of Negative Months.. Negative Month Average %... 5-Yr Risk Measures as of 3-31-17 Port Avg Rel Bmark Rel Cat Standard Deviation.3.59. Sharpe Ratio -1.89.. Information Ratio -1.89.. R-Squared... Tracking Error.3.. Excess Return -.5.. Beta... Alpha... Number of Positive Months 6. 1.2 Positive Month Average %.1. 1.8 Number of Negative Months.. Negative Month Average %... Portfolio Analysis Composition as of 12-31-16 % Assets U.S. Stocks. Non-U.S. Stocks. Bonds 81.3 Cash 18.1 Other.7 Top 1 Holdings as of 12-31-16 Sector Mkt Value % Assets Federal Home Loa 9-26-18 226.52 57.67 U.S. Treasury No 1-31-18 273.45 7.15 U.S. Treasury Bi 5-18-17 238.64 6.24 Fannie Mae 1-11-18 156.35 4.9 Freddie Mac 1-12-18 122.93 3.21... Federal Farm Cre 11-13-17 93. 2.43 Federal Home Loa 7-3-17 6..16 Federal Home Loa 1-3-17 5..13 Federal Home Loa 7-5-17 5..13 Federal Home Loa 1-4-17 3..8 The Equity Sector Allocations and Top 1 Holdings percentages are based on the total portfolio as of the quarter-end, are shown for informational purposes only, and should not be considered a recommendation to purchase or sell any security. Historical Asset Allocation 1% Morningstar F-I Sectors as of 12-31-16 % Fund % Category Government 13.47 2.15 Corporate. 1.62 Securitized 68.35 7.15 Municipal. 13.87 fi Cash/Cash Equivalents 18.17 57.21 ± Other.. 1-Yr Risk Measures as of 3-31-17 Port Avg Rel Bmark Rel Cat Standard Deviation.44 1.21. Sharpe Ratio 1.49.. Information Ratio 1.49.. R-Squared... Tracking Error.16.. Excess Return.24.. Beta... Alpha... Number of Positive Months 12. 1.1 Positive Month Average %.7. 1.41 Number of Negative Months.. Negative Month Average %... 75 5 25 212 213 214 215 216 Most Recent Allocation as of 12-31-16 Stock.% Bonds 81.3% Cash 18.1% Other.7% Page 2 of 6
Fixed Income 3-31-217 Performance Disclosure: The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when redeemed, may be worth or more less than their original cost. See Disclosure page for more information. Correlation Matrix Time Period 3-31-12 to 3-31-17 1 2 3 1. Fidelity Variable Insurance 1. Products Government Money 2. USTREAS T-Bill Auction Ave 3.84 1. Mon 3. Money Market-Taxable.8.87 1. Drawdown Time Period 3-31-12 to 3-31-17 Portfolio Bmark Cat Avg Max Drawdown.. -.1 Max Drawdown # Periods.. 2. Max Drawdown Peak Date 12-1-99 12-1-99 8-1-14 Max Drawdown Valley Date 12-3-99 12-3-99 9-3-14 The performance data contained within this document reflects investment management fees and direct operating expenses of the Investment Division. It does not reflect mortality and expense risk charges, cost of insurance charges, monthly contract charges, sales expense charges, or state and federal premium tax charges. If these charges were reflected, the returns would be significantly lower. We recommend obtaining a personalized illustration which takes into account the amount of insurance purchased, complete fees and charges under the policy, gender, age and underwriting classification of the insured. The performance data shown represents past performance and is no guarantee of future results. The investment returns and the Cash Value of the policy will fluctuate so that the Cash Value of the policy, if surrendered, may be more or less than the value of the premiums paid. Performance reflects the percentage change in net asset value for the period shown with capital gains and dividends reinvested. Visit www.newyorklife.com to obtain performance data current to the most recent month-end. Due to market volatility, current performance may be better or worse than the figures shown. The returns should be considered in light of the investment objectives and policies, characteristics and quality of the Portfolio in which the Investment Division invests and the market conditions during the given time period, and should not be considered as a representation of what may be achieved in the future. The Cash Value of the policy will depend on a number of factors, including the allocations among Investment Divisions and the different investment rates of return for the Investment Division. The results for the periods from the Portfolio's inception date until the policy's introduction of December 21 for CEVUL and November 29 for CEAVUL are hypothetical only in the sense that they will predate the availability of a policy. 8 6 4 2-2 -4-6 Total Return % as of 3-31-17 Investment Return Benchmark Average annual, if greater than 1 year YTD 1 Year 3 Year 5 Year 1 Year Since Inception.1.24.11.9.84 4.29 Investment Return %.15.42.19.14.6 4.9 Benchmark Return % 4 3 2 1-1 -2-3 Calendar Year Return % as of 12-31-16 Investment Return Benchmark 211 212 213 214 215 216.11.14.3.1.3.18 Investment Return %.6.9.6.3.5.34 Benchmark Return % Growth of $1 as of 3-31-17 Investment : $11 Benchmark: $18 25 2 15 1 5 27 28 29 21 211 212 213 214 215 216 3-17 Return Distribution as of 3-31-17 Fidelity Variable Insurance Products Government Money USTREAS T-B 2 16 12 8 4 Quarterly Returns as of 3-31-17 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 217.1.... 216.4.5.5.4.18 215.1.1.1..3 214.....1 213.2.1...3 212.4.4.3.2.14 Page 3 of 6
Definitions Average Market Cap ($M): Morningstar defines the overall "size" of a stock fund's portfolio as the geometric mean of the market capitalization for all of the stocks it owns. It's calculated by multiplying the stock s portfolio weight by the natural log of the market cap. The results for each stock are summed and divided by sum of the portfolio weights, and then the exponential of the resulting number is taken. Alpha: Alpha measures a fund s performance after adjusting for the fund s systematic risk as measured by the fund s beta with respect to its benchmark index. An investor could have formed a passive portfolio with the same beta as that of the fund by investing in the index and either borrowing or lending at the risk-free rate of return. Alpha is the difference between the average excess return on the fund and the average excess return on the levered or de-levered index portfolio. For example, if the fund had an average excess return of 6% per year and its beta with respect to the S&P 5 was.8 over a period when the S&P 5 s average excess return was 7%, its alpha would be 6%-.8*7%=.4%. There are limitations to alpha s ability to accurately depict a fund s added or subtracted value. In some cases, a negative alpha can result from the expenses that are present in the fund s figures but are not present in the figures of the comparison index. The usefulness of alpha is completely dependent on the accuracy of beta. If the investor accepts beta as a conclusive definition of risk, a positive alpha would be a conclusive indicator of good fund performance. Beta: Beta is a measure of a fund s sensitivity to movements in its benchmark index. By construction, the beta of the index is 1.. A fund with a 1.1 beta has tended to have an excess return that is 1% higher than that of the index in up markets and 1% lower in down markets, holding all other factors remain constant. A beta of.85 would indicate that the fund has performed 15% worse than the index in up markets and 15% better in down markets. A low beta does not imply that the fund has a low level of volatility, though; rather, a low beta means only that the fund s index-related risk is low. A specialty fund that invests primarily in gold, for example, will usually have a low beta (and a low R-squared), as its performance is tied more closely to the price of gold and gold-mining stocks than to the overall stock market. Thus, although the specialty fund might fluctuate wildly because of rapid changes in gold prices, its beta will be low. Correlation: This indicates the strength and direction of a linear relationship between two random variables. The value will range between -1 and 1. A value of 1 indicates a perfect positive dependency and -1 indicates a perfect negative dependency between the 2 investments. A correlation value of indicates that no relationship between the 2 investments exist, and are said to be independent of each other. The correlation between two investments can be determined based on the returns of the investments or the excess returns of the investments over a risk-free rate. Information Ratio: Information ratio is a risk-adjusted performance measure. The information ratio is a special version of the Sharpe Ratio in that the benchmark doesn't have to be the risk-free rate. The Israelson method is an adjustment of the Information Ratio to take into account the inconsistency of the IR when excess returns are negative. Net Assets - Average: This is a 12-month trailing average as of the Annual Report's date. If this data is not available in the Annual Report, a 12-month average is calculated using surveyed net assets. Max Drawdown: The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Morningstar Rating :The Morningstar Rating for funds, or "star rating", is calculated for funds and separate accounts with at least a three-year history. Exchange-traded funds and openended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 1% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 1% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 1- year (if applicable) Morningstar Rating metrics. Morningstar Style Box: The Morningstar Style Box reveals a fund's investment style as of the date noted on this report. For fixed-income funds, the vertical axis shows the credit quality of the long bonds owned and the horizontal axis shows interestrate sensitivity as measured by a bond's effective duration. Morningstar seeks credit rating information from fund companies on a periodic basis (for example, quarterly). In compiling credit rating information, Morningstar accepts credit ratings reported by fund companies that have been issued by all Nationally Recognized Statistical Rating Organizations. For a list of all NRSROs, please visit http://www.sec.gov/divisions/ marketreg/ratingagency.htm. Additionally, Morningstar accepts foreign credit ratings from widely recognized or registered rating agencies. If two rating organizations/agencies have rated a security, fund companies are to report the lower rating; if three or more organizations/agencies have rated a security, fund companies are to report the median rating; and in cases where there are more than two organization/agency ratings and a median rating does not exist, fund companies are to use the lower of the two middle ratings. Please Note: Morningstar Inc. is not an NRSRO nor does it issue a credit rating on the fund. NRSRO or rating agency ratings can change from time to time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of low, medium, or high based on their average credit quality. Funds with a "low" credit quality are those whose weighted-average credit quality is determined to be less than BBB- ; "medium" are those less than AA-, but greater or equal to BBB- ; and "high" are those with a weighted-average credit quality of AA- or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar s analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index, which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal-bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases, static breakpoints are used. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-u.s. taxable and non-u.s. domiciled fixedincome funds, static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: more than 3.5 years but less than or equal to 6 years; (iii) Extensive: more than 6 years. Interest-rate sensitivity for non-u.s. domiciled funds (excluding funds in convertible categories) may be measured with modified duration when effective duration is not available. P/B Ratio: The weighted average of the price/book ratios of all the stocks in a portfolio. The P/B ratio of a company is calculated by dividing the market price of its stock by the company s pershare book value. Stocks with negative book values are excluded from this calculation. In theory, a high P/B ratio indicates that the price of the stock exceeds the actual worth of the company's assets, while a low P/B ratio indicates that the stock is a bargain. All P/B ratios greater than 75 are capped at 75 for the calculation. P/E Ratio: A fund s price/earnings ratio can act as a gauge of the fund s investment strategy in the current market climate, and whether it has a value or growth orientation. Companies in those industries enjoying a surge of popularity tend to have high P/E ratios, reflecting a growth orientation. More staid industries tend to have low P/E ratios, reflecting a value orientation. Morningstar generates this figure in-house on a monthly basis, based on the most-recent portfolio holdings submitted by the fund and stock statistics gleaned from our internal U.S. equities databases. Negative P/Es are not used, and any P/E greater than 6 is capped at 6 in the calculation of the average. Return Distribution: A graphical representation, similar to a bar chart in structure, that organizes a group of data points into user-specified ranges. The chart condenses a data series into an easily interpreted visual by taking many data points, in this case, returns and grouping them into logical ranges or bins. R-squared: R-squared is another statistic that is produced by a least-squares regression analysis. R-squared is a number between and 1% that measures the strength of the relationship between the dependent and independent variables. An R-squared of means that there is no relationship between the two variables and an R-squared of 1% means that the relationship is perfect with every scatter point falling exactly on the regression line. Thus, stock index funds that track Page 4 of 6
Definitions the S&P 5 index will have an R-squared very close to 1%. A low R-squared indicates that the fund s movements are not well explained by movements in the benchmark index. An R- squared measure of 35%, for example, means that only 35% of the fund s movements can be explained by movements in the index. R-squared can be used to ascertain the significance of a particular beta estimate. Generally, a high R-squared will indicate a more reliable beta figure. R-squared ranges from (perfectly uncorrelated) to 1 (perfectly correlated). Correlation (p) is the square root of R-squared. Sharpe Ratio: A risk-adjusted measure developed by Nobel Laureate William Sharpe. It is calculated by using standard deviation and excess return to determine reward per unit of risk. The higher the Sharpe Ratio, the better the fund's historical riskadjusted performance. The Sharpe ratio is calculated for the past 36-month period by dividing a fund's annualized excess returns by the standard deviation of a fund's annualized excess returns. Since this ratio uses standard deviation as its risk measure, it is most appropriately applied when analyzing a fund that is an investor's sole holding. The Sharpe Ratio can be used to compare two funds directly on how much risk a fund had to bear to earn excess return over the risk-free rate. Standard Deviation: A statistical measurement of dispersion about an average, which, for a mutual fund, depicts how widely the returns varied over a certain period of time. Investors use the standard deviation of historical performance to try to predict the range of returns that are most likely for a given fund. When a fund has a high standard deviation, the predicted range of performance is wide, implying greater volatility. Standard deviation is most appropriate for measuring risk if it is for a fund that is an investor's only holding. The figure cannot be combined for more than one fund because the standard deviation for a portfolio of multiple funds is a function of not only the individual standard deviations, but also of the degree of correlation among the funds' returns. If a fund's returns follow a normal distribution, then approximately 68 percent of the time they will fall within one standard deviation of the mean return for the fund, and 95 percent of the time within two standard deviations. Morningstar computes standard deviation using the trailing monthly total returns for the appropriate time period. All of the monthly standard deviations are then annualized. Tracking Error: Tracking error is a measure of the volatility of excess returns relative to a benchmark. Turnover Ratio: US SEC measures the portfolio manager s trading activity by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 1% or more does not necessarily suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the portfolio s holdings that have changed over the past year. Page 5 of 6
Disclosures This material is general in nature and is being provided for informational purposes only. It was not prepared, and is not intended, to address the needs, circumstances and/or objectives of any specific individual or group of individuals. New York Life and its affiliates are not making a recommendation to purchase any specific products. For advice regarding your personal circumstances, you should consult with your own independent financial and tax advisors. Fidelity Management & Research Company is the manager / investment advisor for this Investment Division. New York Life Insurance and Annuity Corporation (NYLIAC) is the issuer of the variable universal life policy in which this Investment Division is made available. portfolio. In most jurisdictions, the CEAVUL policy form number is 39-2 and the CEVUL VI policy form number is 37-43. In the State of Oregon, the CEAVUL policy form number is 39-27.27 and the CEVUL VI policy form number is 37-43.27. SMRU166931 (Exp. 1/17/217) New York Life and Fidelity Investments are not affiliated. Fidelity Investments & Pyramid Design is a registered service mark of FMR Corp. NYLIAC CorpExec Variable Universal Life (CEVUL) VI and CorpExec Accumulator Variable Universal Life (CEAVUL) insurance policies are issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation) and are distributed by NYLIFE Distributors LLC, Member FINRA/SIPC. NYLIAC & NYLIFE Distributors LLC are wholly owned subsidiaries of New York Life Insurance Company, 51 Madison Avenue, New York, NY 11. Performance values are calculated using the accumulation unit value on the last business day of the prior period and the accumulation unit value on the last business day of the current period. Please note that the last calendar day of a month may not be the last business day of that month. The Investment Divisions offered within CEVUL and CEAVUL policies are different from mutual funds that may have similar names but are available directly to the general public. Investment results may differ. Asset Allocations, Sector Weights, Portfolio characteristics and Performance Results are as of the effective date noted, and are subject to change based on market and other conditions Information about the portfolio composition is no indication of future holdings Past performance is no guarantee of future results. An investment in the Fidelity VIP Money Market Portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although this Investment Division seeks to preserve the value of your investment at $1. per unit, it is possible to lose money by investing in this New York Life Insurance Company New York Life Insurance and Annuity Corporation (A Delaware Corporation) 51 Madison Avenue, New York, NY 11 www.newyorklife.com Page 6 of 6