Equity 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 to provide above average current income and long-term capital appreciation. Under normal circumstances, at least 8% of the Portfolio's assets will be invested in equity securities of companies in the U.S. real estate industry. The equity securities in which the Portfolio may invest include common and preferred stocks, convertible securities, depositary receipts, rights, warrants and limited partnership interests. It invests primarily in equity securities of companies in the U.S. real estate industry, including real estate investment trusts ("REITs"). The fund is non-diversified. Benchmark Description: FTSE NAREIT All Equity REITs TR USD The index measures the performance of all tax-qualified REITs with more than 5 percent of total assets in qualifying real estate assets other than mortgages secured by real property that also meet minimum size and liquidity criteria. A REIT is a company that owns, and in most cases, operates incomeproducing real estate. Category Description: Real Estate Real estate portfolios invest primarily in real estate investment trusts of various types. REITs are companies that develop and manage real estate properties. There are several different types of REITs, including apartment, factory-outlet, health-care, hotel, industrial, mortgage, office, and shopping center REITs. Some portfolios in this category also invest in real estate operating companies. Morningstar Style Box Morningstar Equity Style Box as of 12-31-16 % Mkt Cap Giant.... Large 57.36 Medium 28.99 Small 12.94... Micro Value Blend Growth.71 Large Mid Small 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 A portfolio which is concentrated in an industry or an economic sector may be more volatile than a more broadly invested portfolio. Some areas of concentration may be speculative. Certain economic, political or regulatory changes may have a more powerful negative or positive impact on a concentrated portfolio than they would have on a more broadly invested portfolio. An investment concentrated in REITS may be more sensitive to fluctuating interest rates and special factors such as the flow of rental income. Investments in derivatives may involve leverage (borrowed capital) which has the potential to magnify losses and gains. Derivatives can be difficult to sell or value in certain market conditions. Fees and Expenses Fees and Expenses as of 12-31-16 Management Fee.8% Prospectus Net Expense Ratio.95% Fund Facts Inception Date 3-3-97 Primary Benchmark FTSE NAREIT All Equity REITs TR USD Portfolio Manager(s) Theodore R. Bigman. Since 3-97. Bill Grant. Since 4-14. Firm Name Morgan Stanley Investment Management Inc Advisor Morgan Stanley Investment Management Inc Subadvisor. Total Number of Holdings 59 Avg Market Cap ($M) 14,59 Annual Turnover Ratio % 21 Total Net Assets ($mil) 535.67 Morningstar Proprietary Statistics Out of # of Morningstar Rating Investments 3 Year QQ 234 5 Year QQ 25 1 Year QQQ 137 Overall QQQ. 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 5
Equity 3-31-217 Risk Evaluation 3-Yr Risk Measures as of 3-31-17 Port Avg Rel Bmark Rel Cat Standard Deviation 14.23 1. 1.4 Sharpe Ratio.64.84.95 Information Ratio -.6..59 R-Squared 96.1..97 Tracking Error 2.82. 2. Excess Return -1.88. 1.17 Beta.98. 1.2 Alpha -1.54. 1.35 Number of Positive Months 2. 1.5 Positive Month Average % 3.75..98 Number of Negative Months 16..94 Negative Month Average % -2.94. 1.13 5-Yr Risk Measures as of 3-31-17 Port Avg Rel Bmark Rel Cat Standard Deviation 13.23.98 1.3 Sharpe Ratio.67.84.94 Information Ratio -.69..65 R-Squared 96.5..97 Tracking Error 2.52. 1.94 Excess Return -1.92. 1.27 Beta.97. 1.1 Alpha -1.45. 1.45 Number of Positive Months 35. 1. Positive Month Average % 3.36. 1.1 Number of Negative Months 25. 1. Negative Month Average % -2.91. 1.4 1-Yr Risk Measures as of 3-31-17 Port Avg Rel Bmark Rel Cat Standard Deviation 24.36.96 1. Sharpe Ratio.25.84 1. Information Ratio -.37..6 R-Squared 98.52..99 Tracking Error 3.18. 1.57 Excess Return -1.22..95 Beta.96. 1. Alpha -1.11..95 Number of Positive Months 69. 1. Positive Month Average % 4.79. 1.2 Number of Negative Months 51. 1. Negative Month Average % -5.16. 1.2 Portfolio Analysis Composition as of 12-31-16 % Assets U.S. Stocks 94.8 Non-U.S. Stocks. Bonds. Cash 3.3 Other 1.9 Morningstar Sectors as of 12-31-16 % Fund S&P 5 % h Cyclical 1. 32.35 r Basic Materials. 2.9 t Consumer Cyclical 1.77 11.5 y Financial Services. 16.5 u Real Estate 98.23 2.35 j Sensitive. 4.85 i Communication Services. 4.1 o Energy. 6.59 p Industrials. 1.36 a Technology. 19.8 k Defensive. 26.8 s Consumer Defensive. 9.39 d Healthcare. 14.22 f Utilities. 3.19 Historical Asset Allocation 1% 75 5 25 Country Exposure as of 12-31-16 % United States 1. Top 1 Holdings as of 12-31-16 Sector Mkt Value % Assets Simon Property Group Inc Real Est 67.35 12.27 Equity Residential Real Est 38.67 7.4 Vornado Realty Trust Real Est 37.83 6.89 Boston Properties Inc Real Est 27.67 5.4 Public Storage Real Est 27.19 4.95... GGP Inc Real Est 23.53 4.29 Host Hotels & Resorts Inc Real Est 23.35 4.25 AvalonBay Communities Inc Real Est 23.2 4.23 Welltower Inc Real Est 2.98 3.82 Morgan Stanley I 12-31-3 18.2 3.32 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. 212 213 214 215 216 Most Recent Allocation as of 12-31-16 Stock 94.8% Bonds.% Cash 3.3% Other 1.9% Page 2 of 5
Equity 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. Morgan Stanley Universal Instl 1. Funds US Real Estate Portfolio Class I 2. FTSE NAREIT All Equity REITs TR.98 1. USD 3. Real Estate.99 1. 1. Drawdown Time Period 3-31-12 to 3-31-17 Portfolio Bmark Cat Avg Max Drawdown -12.1-13.34-12.76 Max Drawdown # Periods 4. 4. 4. Max Drawdown Peak Date 5-1-13 5-1-13 5-1-13 Max Drawdown Valley Date 8-31-13 8-31-13 8-31-13 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. 2 15 1 5-5 -1-15 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 -.79.14 8.68 8.4 3.75 9.92 Investment Return %... 2.55 5.25 1.56 1.32 4.97 9.72 Benchmark Return %.. QQ QQ QQQ. Morningstar Rating.. 234 25 137. # of Funds in Category 4 3 2 1-1 -2-3 Calendar Year Return % as of 12-31-16 Investment Return Benchmark 211 212 213 214 215 216 5.92 15.84 2.5 29.72 2.17 6.81 Investment Return % 8.28 19.7 2.86 28.3 2.83 8.63 Benchmark Return % Growth of $1 as of 3-31-17 Investment : $151 Benchmark: $168 25 2 15 1 5 27 28 29 21 211 212 213 214 215 216 3-17 Return Distribution as of 3-31-17 Morgan Stanley Universal Instl Funds US Real Estate FTSE NAREIT All Equity REITs T 5 4 3 2 1-1 -8-6 -4-2 2 4 6 8 1 12 Quarterly Returns as of 3-31-17 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 217 -.79.... 216 5.82 3.68-1.14-1.52 6.81 215 4.32-9.48 1.47 6.62 2.17 214 9.4 7.8-2.47 13.54 29.72 213 5.39 -.55-2.82.19 2.5 212 1.91 3.12 -.73 2.3 15.84 Page 3 of 5
Definitions Average Market Cap ($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 strategy as of the date noted on this report. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). A darkened square in the style box indicates the weighted average style of the portfolio. 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 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. 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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. SMRU1669318 (Exp. 1/17/217) Morgan Stanley Investment Management Inc. is the manager / investment advisor for the Investment Division. New York Life Insurance and Annuity Corporation is the issuer of the variable universal life policy in which this Investment Division is made available. New York Life Investment Management LLC is the manager/ investment advisor for the Investment Division. New York Life Insurance and Annuity Corporation is the issuer of the variable universal life policy in which this Investment Division is made available. New York Life Insurance and Annuity Corporation ("NYLIAC") CorpExec Variable Universal Life VI ("CEVUL") 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 of the last business day of the current period. Please note that the last business day of a month may not be the last calendar day of that month. The Investment Divisions offered within the 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. 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. 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 5 of 5