[Federal Register: March 20, 2006 (Volume 71, Number 53)]
[Notices]
[Page 14029-14041]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20mr06-59]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. IC-27259; File No. 812-13205]
Massachusetts Mutual Life Insurance Company, et al., Notice of
Application
March 10, 2006.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice of an application for an order of approval pursuant to
section 26(c) of the Investment Company Act of 1940 (``1940 Act'') and
an order of exemption pursuant to section 17(b) of the 1940 Act.
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Applicants: Massachusetts Mutual Life Insurance Company
(``MassMutual''), Massachusetts Mutual Variable Annuity Separate
Account 4 (``Separate Account 4''), Panorama Separate Account, C.M.
Life Insurance Company (``C.M. Life''), C.M. Multi-Account A, and
Panorama Plus Separate Account (together with Separate Account 4,
Panorama Separate Account, and C.M. Multi-Account A, the ``Separate
Accounts'') (and, collectively with MassMutual and C.M. Life, the
``Applicants''), MML Series Investment Fund and MML Series Investment
Fund II (together with the Applicants, the ``Section 17 Applicants'').
Summary of Application: Applicants request an order approving the
proposed substitution of shares of American Century VP Income & Growth
Fund with MML Income & Growth Fund; American Century VP Value Fund with
MML Value Fund; American Funds Asset Allocation Fund (Class 2) and
Calvert Social Balanced Portfolio with MML Asset Allocation Fund;
American Funds Growth-Income Fund (Class 2) and American Fidelity VIP
Growth Opportunities Portfolio (Service Class) with MML Growth & Income
Fund; Fidelity VIP Growth Portfolio (Service Class) with MML
Diversified Growth Fund; Franklin Small Cap Value Securities Fund with
MML Small Cap Value Fund; Janus Aspen Balanced Portfolio (Service
Shares and Institutional Shares) with MML Blend Fund; Janus Aspen Forty
Portfolio (Service Shares and Institutional Shares) with MML Aggressive
Growth Fund; Janus Aspen Worldwide Growth Portfolio (Service Shares and
Institutional Shares) with MML Global Fund; MFS Investors Trust Series
with MML Enhanced Index Core Equity Fund; MFS New Discovery Series and
Scudder VIT Small Cap Index Fund with MML Small Cap Index Fund; T. Rowe
Price Blue Chip Growth Portfolio with MML Blue Chip Growth Fund; T.
Rowe Price Equity Income Portfolio with MML Equity Income Fund; T. Rowe
Price Mid-Cap Growth Portfolio with MML Mid Cap Growth Fund; and
Templeton Foreign Securities Fund (Class 2) with MML International Fund
(the ``Substitutions''). Section 17 Applicants seek an order of
exemption pursuant to section 17(b) of the 1940 Act from section 17(a)
of the 1940 Act to the extent necessary to permit MassMutual and C.M.
Life to carry out certain of the substitutions.
Filing Date: The application was filed on June 24, 2005, and an amended
and restated application was filed on March 8, 2006.
Hearing or Notification of Hearing: An order granting the application
will be issued unless the Commission orders a hearing. Interested
persons may request a hearing by writing to the Secretary of the
Commission and serving Applicants with a copy of the request,
personally or by mail. Hearing requests must be received by the
Commission by 5:30 p.m. on April 4, 2006, and should be accompanied by
proof of service on Applicants in the form of an affidavit or, for
lawyers, a certificate of service. Hearing requests should state the
nature of the requester's interest, the reason for the request, and the
issues contested. Persons who wish to be notified of a hearing may
request notification by writing to the Secretary of the Commission.
ADDRESSES: Secretary, Securities and Exchange Commission, 100 F Street,
NE., Washington, DC 20549. Applicants, 1295 State Street, Springfield,
MA 01111.
FOR FURTHER INFORMATION CONTACT: Mark Cowan, Senior Counsel, or Zandra
Bailes, Branch Chief, Office of Insurance Products, Division of
Investment Management, at (202) 551-6795.
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application is available for a fee from the
Public Reference Branch of the Commission, 100 F Street, NE.,
Washington, DC 20549 (202-551-8090).
Applicants' and Section 17 Applicants' Representations
1. MassMutual is a mutual life insurance company organized in the
Commonwealth of Massachusetts as a corporation and was originally
chartered in 1851. MassMutual is a diversified financial services
company providing life insurance, annuities, disability income
insurance, long-term care insurance, structured settlements, retirement
and other products to individual and institutional customers.
2. Separate Account 4 was established in 1997. Separate Account 4
is registered under the 1940 Act as a unit investment trust (File No.
811-08619) and is used to fund variable annuity contracts issued by
MassMutual. Six variable annuity contracts funded by Separate Account 4
are affected by the application.
3. Panorama Separate Account was established in 1981. Panorama
Separate Account is registered under the 1940 Act as a unit investment
trust (File No. 811-03215) and is used to fund variable annuity
contracts issued by MassMutual. One variable annuity contract funded by
Panorama Separate Account is affected by the application.
4. C.M. Life is a wholly-owned stock life insurance subsidiary of
MassMutual. C.M. Multi-Account A was
[[Page 14030]]
established in 1994. C.M. Multi-Account A is registered under the 1940
Act as a unit investment trust (File No. 811-08698) and is used to fund
variable annuity contracts issued by C.M. Life. Three variable annuity
contracts funded by C.M. Multi-Account A are affected by the
application.
5. Panorama Plus Separate Account was established in 1991. Panorama
Plus Separate Account is registered under the 1940 Act as a unit
investment trust (File No. 811-06530) and is used to fund variable
annuity contracts issued by C.M. Life. One variable annuity contract
funded by Panorama Plus Separate Account is affected by the application
(all eleven variable annuity contracts affected by the application are
hereinafter collectively referred to as the ``Contracts'').
6. MML Series Investment Fund (``MML Fund'' is an open-end
management investment company having separate investment portfolios.
MML Series Investment Fund was organized as a business trust under the
laws of The Commonwealth of Massachusetts pursuant to an Agreement and
Declaration of Trust dated December 19, 1984, as amended, by MassMutual
for the purpose of providing a vehicle for the investment of assets of
various separate investment accounts established by MassMutual and its
life insurance company subsidiaries, including C.M. Life.
7. MML Series Investment Fund II (``MML Fund II'') is an open-end
management investment company having separate investment portfolios.
MML Series Investment Fund II was organized as a business trust under
the laws of The Commonwealth of Massachusetts pursuant to an Agreement
and Declaration of Trust dated February 8, 2005, which was amended and
restated as of February 28, 2005, for the purpose of providing a
vehicle for the investment of assets of various separate investment
accounts established by MassMutual and its life insurance company
subsidiaries, including C.M. Life.
8. Purchase payments under the Contracts may be allocated to one or
more sub-accounts of the Separate Accounts (the ``Sub-Accounts'').
Income, gains and losses, whether or not realized, from assets
allocated to the Separate Accounts are, as provided in the Contracts,
credited to or charged against the Separate Accounts without regard to
other income, gains or losses of MassMutual and C.M. Life, as
applicable. The assets maintained in the Separate Accounts will not be
charged with any liabilities arising out of any other business
conducted by MassMutual and C.M. Life, as applicable. Nevertheless, all
obligations arising under the Contracts, including the commitment to
make annuity payments or death benefit payments, are general corporate
obligations of MassMutual and C.M. Life. Accordingly, all of the assets
of each of MassMutual and C.M. Life are available to meet its
obligations under the Contracts.
9. Each of the Contracts permits allocations of accumulation value
to available Sub-Accounts that invest in specific investment portfolios
of underlying registered investment companies (the ``Mutual Funds'').
Among the available Mutual Funds are portfolios of American Century
Variable Portfolios, Inc., American Funds Insurance Series, Calvert
Variable Series, Inc., Fidelity Variable Insurance Products Fund,
Franklin Templeton Variable Insurance Products Trust, AIM Variable
Insurance Funds, Janus Aspen Series, MFS Variable Insurance Trust, MML
Series Investment Fund, MML Series Investment Fund II, Oppenheimer
Variable Account Funds, Panorama Series Fund, Inc., Scudder Investment
VIT Funds, T. Rowe Price Equity Series, Inc., ING Variable Products
Trust and PIMCO Variable Insurance Trust. All of these companies are
registered under the 1940 Act as open-end management investment
companies.
10. Each of the Contracts permits transfers of accumulation value
from one Sub-Account to another Sub-Account at any time subject to
certain restrictions.
11. Each of the Contracts reserves the right, upon notice to
contract owners, to substitute shares of another mutual fund for shares
of a mutual fund held by a Sub-Account.
12. The Replaced Funds involved in the Substitutions include 18
separate portfolios representing ten investment company complexes.
After the Substitutions, there will be 15 portfolios all of which will
be portfolios of MML Fund and MML Fund II. The investment objective and
policies of each Replacement Fund will be the same as or substantially
similar to the investment objective and policies of the corresponding
Replaced Fund.
13. The Substitutions are being proposed to increase the level of
fund management responsiveness compared to the current structure, which
includes eight unaffiliated investment company complexes. Currently, a
majority of the portfolios offered under the contracts consist of
unaffiliated investment companies, and changes due to investment
performance, style drift, or management practice issues require
substantial systems, filing, and printing resources, which slows the
process to make changes, if necessary. Because MML Fund, MML Fund II,
and MassMutual have ``manager of managers'' exemptive relief,
MassMutual, as investment adviser, will be able to act more quickly and
efficiently to protect contract owners' interests if the investment
strategy, management team or performance of one or more of the sub-
advisers does not meet expectations. From an investment perspective,
many of the substitutions will be immaterial because the Replacement
Funds will retain as sub-adviser the investment adviser to the Replaced
Fund. In this regard, Applicants believe that in no case will a
Replacement Fund be more risky than the fund it is replacing. In
addition, relieving the Separate Accounts of the administrative burdens
of interfacing with ten unaffiliated investment company complexes is
expected to simplify compliance, accounting and auditing and,
generally, to allow MassMutual and C.M. Life each to administer the
Contracts more efficiently.
14. Applicants propose the following substitutions of shares:
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Replaced fund Replacement fund*
------------------------------------------------------------------------
1. American Century VP Income & Growth MML Income & Growth Fund.
Fund.
2. American Century VP Value Fund....... MML Mid Cap Value Fund.
3. American Funds[reg] Asset Allocation MML Asset Allocation Fund.
Fund (Class 2).
Calvert Social Balanced Portfolio...
4. American Funds[reg] Growth-Income MML Growth & Income Fund.
Fund (Class 2).
Fidelity[reg] VIP Growth
Opportunities Portfolio (Service
Class).
5. Fidelity[reg] VIP Growth Portfolio MML Large Cap Growth Fund.
(Service Class).
6. Franklin Small Cap Value Securities MML Small Cap Value Fund.
Fund.
7. Janus Aspen Balanced Portfolio MML Blend Fund.
(Service Shares and Institutional
Shares).
[[Page 14031]]
8. Janus Aspen Forty Portfolio (Service MML Concentrated Growth Fund
Shares and Institutional Shares). (Class I and Class II).
9. Janus Aspen Worldwide Growth MML Global Fund (Class I and
Portfolio (Service Shares and Class II).
Institutional Shares).
10. MFS[reg] Investors Trust Series..... MML Enhanced Index Core Equity
Fund.
11. MFS[reg] New Discovery Series....... MML Small Cap Index Fund.
Scudder VIT Small Cap Index Fund....
12. T. Rowe Price Blue Chip Growth MML Blue Chip Growth Fund.
Portfolio.
13. T. Rowe Price Equity Income MML Equity Income Fund.
Portfolio.
14. T. Rowe Price Mid-Cap Growth MML Mid Cap Growth Fund.
Portfolio.
15. Templeton Foreign Securities Fund MML Foreign Fund.
(Class 2).
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* The names of certain MML Funds that will be created prior to the
Substitutions are subject to change.
15. For each Replaced Fund and each Replacement Fund, the
investment objective, principal risks, investment adviser/sub-adviser,
fee structure, expenses for the fiscal year ending in 2005 and assets
as of December 31, 2005 are shown in the tables that follow:
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Replaced Fund Replacement Fund
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A. Substitution 1
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Fund Name............................................... American Century VP Income & Growth MML Income & Growth Fund.
Fund.
Investment Objective.................................... Seeks growth of capital by investing Seeks growth of capital by investing in common stocks.
in common stocks. Income is a Income is a secondary objective.
secondary objective. The fund
pursues a total return and dividend
yield that exceed those of the S&P
500[supreg] Index by investing in
stocks of companies with strong
expected returns.
Principal Risks......................................... Market Risk................ Market Risk.
Company Risk............... Credit Risk.
Price Volatility........... Management Risk.
Principal Loss............. Derivative Risk.
Foreign Investment Risk.
Currency Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. The MML Fund Board of Trustees has approved American Century as a sub-adviser for the MML
Income and Growth Fund. The fund is expected to be managed in the same style and strategy and
by the same team that manages the American Century VP Income and Growth Fund.
Adviser/Subadviser...................................... American Century Investment MassMutual/American Century Investment Management, Inc.
Management, Inc.
Fund Asset Level as of 12/31/05......................... $800,000,000........................ N/A.
Mgmt. Fee............................................... 0.70%............................... 0.65%.
Mgmt. Fee Schedule...................................... 0.70% on 1st $10 billion, 0.65% over 0.65% on all assets.
$10 billion.
12b-1 Fee.
Other Expenses.......................................... 0.00%............................... 0.10%.
Total Annual Operating Expenses......................... 0.70%............................... 0.75%.
Fee Reduction........................................... .................................... 0.05%.
Net Total Annual Expenses............................... 0.70%............................... 0.70%.*
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B. Substitution 2
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Fund Name............................................... American Century VP Value Fund...... MML Mid Cap Value Fund.
Investment Objective.................................... Seeks long-term capital growth by Seeks long-term capital growth by investing primarily in
investing primarily in common common stocks of companies believed to be undervalued
stocks of companies believed to be at the time of purchase.
undervalued at the time of
purchase. Income is a secondary
objective.
Principal Risks......................................... Market Risk................ Market Risk.
Company Risk............... Credit Risk.
Price Volatility........... Management Risk.
Principal Loss............. Liquidity Risk.
Derivative Risk.
Foreign Investment Risk.
Currency Risk.
Smaller Company Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. The MML Fund Board of Trustees has approved American Century as a sub-adviser for the MML
Value Fund. The fund is expected to be managed in a similar style and strategy and by the
same team that manages the American Century VP Income and Growth Fund.
Adviser/Subadviser...................................... American Century Investment MassMutual/American Century Investment Management, Inc.
Management, Inc.
Fund Asset Level as of 12/31/05......................... $2,950,000,000...................... N/A.
Mgmt. Fee............................................... 0.93%............................... 0.84%.
Mgmt. Fee Schedule...................................... 1.00% on 1st $500 million........... 0.84% on all assets.
0.95% on next $500 million..........
0.90% over $1 billion...............
[[Page 14032]]
12b-1 Fee.
Other Expenses.......................................... 0.00%............................... 0.09%.
Total Annual Operating Expenses......................... 0.93%............................... 0.93%.
Fee Reduction...........................................
Net Total Annual Expenses............................... 0.93%............................... 0.93%.*
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C. Substitution 3
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Fund Name............................................... American Funds Asset Allocation Fund MML Asset Allocation Fund.
(Class 2).
Investment Objective.................................... Seeks to provide high total return Seeks to provide high total return consistent with
(including income and capital preservation of capital over the long-term by investing
gains) consistent with preservation in a diversified portfolio of common stocks and other
of capital over the long-term by equity securities, bonds and other intermediate and
investing in a diversified long-term debt securities, and money market instruments
portfolio of common stocks and (debt securities maturing in one year or less).
other equity securities, bonds and
other intermediate and long-term
debt securities, and money market
instruments (debt securities
maturing in one year or less).
Principal Risks......................................... Market Risk................ Market Risk.
Management Risk............ Management Risk.
Foreign Investment Risk.... Foreign Investment Risk.
Credit Risk................ Credit Risk.
Currency Risk.............. Currency Risk.
Growth Company Risk........ Growth Company Risk.
Pre-payment Risk........... Pre-payment Risk.
Political and Economic Risk Liquidity Risk.
Emerging Markets Risk...... Derivative Risk.
Interest Rate Risk......... Emerging Markets Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. The MML Fund Board of Trustees has approved Capital Guardian Trust Company as a sub-adviser
for MML Asset Allocation Fund. The fund is expected to be managed in the same style and
strategy as the American Funds Asset Allocation Fund.
Adviser/Subadviser...................................... Capital Research and Management MassMutual/Capital Guardian Trust Company.
Company.
Fund Asset Level as of 12/31/05......................... $6,100,000,000...................... N/A.
Mgmt. Fee............................................... 0.35%............................... 0.55%.
Mgmt. Fee Schedule...................................... 0.50% on 1st $600 million........... 0.55% on all assets.
0.42% on $600 million to $1.2
billion.
0.36% on $1.2-$2.0 billion..........
0.32% on $2.0-$3.0 billion..........
0.28% on $3.0-$5.0 billion..........
0.26% on $5.0-$8.0 billion..........
0.250% over $8.0 billion............
12b-1 Fee............................................... 0.25%.
Other Expenses.......................................... 0.01%............................... 0.09%.
Total Annual Operating Expenses......................... 0.61%............................... 0.64%.
Fee Reduction........................................... 0.03%............................... 0.06%.
Net Total Annual Expenses............................... 0.58%............................... 0.58%*.
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Fund Name............................................... Calvert Social Balanced Portfolio... MML Asset Allocation Fund.
Investment Objective.................................... Seeks to achieve a competitive total Seeks to provide high total return consistent with
return through an actively managed preservation of capital over the long-term by investing
portfolio of stocks, bonds and in a diversified portfolio of common stocks and other
money market instruments which equity securities, bonds and other intermediate and
offer income and capital growth long-term debt securities, and money market instruments
opportunity and that satisfy the (debt securities maturing in one year or less).
portfolio's investment and social
criteria.
Principal Risks......................................... Market Risk................ Market Risk.
Credit Risk................ Credit Risk.
Pre-payment Risk........... Pre-payment Risk.
Liquidity Risk............. Liquidity Risk.
Currency Risk.............. Currency Risk.
Transaction Risk........... Management Risk.
Correlation Risk........... Derivative Risk.
Political Risk............. Foreign Investment Risk.
Interest Rate Risk......... Emerging Markets Risk.
Information Risk........... Growth Company Risk.
Opportunity Risk........... Leveraging Risk.
Significant Principal Risk Disparities?................. .................................... The Replacement Fund is expected to be managed with a
similar style and strategy as that of the Replaced
Fund.
[[Page 14033]]
Adviser/Subadviser...................................... Calvert Asset Management Company, MassMutual/Capital Guardian Trust Company.
Inc./Brown Capital Management, Inc.
and SSgA Funds Management, Inc.
Fund Asset Level as of 12/31/05......................... $483,000,000........................ N/A.
Mgmt. Fee............................................... 0.70%............................... 0.55%.
Mgmt. Fee Schedule...................................... 0.425% on 1st $500 million.......... 0.55% on all assets.
0.375% on next $500 million.........
0.325% over $1 billion..............
12b-1 Fee.
Other Expenses.......................................... 0.21%............................... 0.09%.
Total Annual Operating Expenses......................... 0.91%............................... 0.64%.
Fee Reduction........................................... .................................... 0.06%.
Net Total Annual Expenses............................... 0.91%............................... 0.58%.*
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D. Substitution 4
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Fund Name............................................... American Funds[supreg] Growth-Income MML Growth & Income Fund.
Fund (Class 2).
Investment Objective.................................... Seeks capital appreciation and Seeks capital appreciation and income by investing
income by investing primarily in primarily in common stocks or other securities which
common stocks or other securities demonstrate the potential for appreciation and/or
which demonstrate the potential for dividends.
appreciation and/or dividends.
Principal Risks......................................... Market Risk................ Market Risk.
Foreign Investment Risk.... Foreign Investment Risk.
Growth Company Risk........ Growth Company Risk.
Emerging Markets Risk...... Emerging Markets Risk.
Currency Risk.............. Currency Risk.
Management Risk............ Management Risk.
Credit Risk................ Credit Risk.
Political and Economic Risk Derivative Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. The MML Fund Board of Trustees has approved Capital Guardian Trust Company as a sub-adviser
for MML Growth & Income Fund. The fund is expected to be managed in the same style and
strategy as the American Fund Growth-Income Fund.
Adviser/Subadviser...................................... Capital Research and Management MassMutual/Capital Guardian Trust Company.
Company.
Fund Asset Level as of 12/31/05......................... $21,900,000,000..................... N/A.
Mgmt. Fee............................................... 0.28%............................... 0.50%.
Mgmt. Fee Schedule...................................... 0.50% on 1st $600 million........... 0.50% on all assets.
0.45% on $600 million to $1.5
billion.
0.40% on $1.5-$2.5 billion..........
0.32% on $2.5-$4.0 billion..........
0.285% on $4.0-$6.5 billion.........
0.256% on $6.5-$10.5 billion........
0.242% on $10.5-$13.0 billion.......
0.235% on $13.0-$17.0 billion.......
0.23% on $17.0-$21.0 billion........
0.225% over $21.0 billion...........
12b-1 Fee............................................... 0.25%.
Other Expenses.......................................... 0.02%............................... 0.08%.
Total Annual Operating Expenses......................... 0.55%............................... 0.58%.
Fee Reduction........................................... 0.02%............................... 0.05%.
Net Total Annual Expenses............................... 0.53%............................... 0.53%.*
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Fund Name............................................... Fidelity[supreg] VIP Growth MML Growth & Income Fund.
Opportunities Portfolio (Service
Class).
Investment Objective.................................... Seeks to provide capital growth as Seeks capital appreciation and income by investing
its investment objective. primarily in common stocks or other securities which
demonstrate the potential for appreciation and/or
dividends.
Principal Risks......................................... Stock Market Volatility.... Market Risk.
Foreign Exposure........... Foreign Investment Risk.
Issuer-Specific Changes.... Credit Risk.
Management Risk.
Derivative Risk.
Currency Risk.
Emerging Markets Risk.
Growth Company Risk.
Leveraging Risk.
[[Page 14034]]
Significant Principal Risk Disparities?................. .................................... The Replacement Fund is expected to be managed with a
similar style and strategy as that of the Replaced
Fund. Therefore, we do not anticipate any significant
risk disparities between the funds.
Adviser/Subadviser...................................... Fidelity Management & Research MassMutual/Capital Guardian Trust Company.
Company/FMR Co., Inc.
Fund Asset Level as of 12/31/05......................... $200,900,000........................ N/A.
Mgmt. Fee............................................... 0.58%............................... 0.50%.
Mgmt. Fee Schedule...................................... Group Fee Rate + Individual Fund Fee 0.50% on all assets.
Rate.
Group Rate as of 12/31/04: 0.2724% Individual Fund Fee Rate: 0.30%
12b-1 Fee............................................... 0.10%.
Other Expenses.......................................... 0.14%............................... 0.08%.
Total Annual Operating Expenses......................... 0.82%............................... 0.58%.
Fee Reduction........................................... 0.02%............................... 0.05%.
Net Total Annual Expenses............................... 0.80%............................... 0.53%.*
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E. Substitution 5
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Fund Name............................................... Fidelity[supreg] VIP Growth MML Large Cap Growth Fund.
Portfolio (Service Class).
Investment Objective.................................... Seeks to achieve capital Seeks long-term capital appreciation as its investment
appreciation as its investment objective.
objective.
Principal Risks......................................... Stock Market Volatility.... Market Risk.
Foreign Exposure........... Foreign Investment Risk.
``Growth'' Investing....... Growth Company Risk.
Issuer-Specific Changes.... Credit Risk.
Management Risk.
Derivative Risk.
Currency Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. .................................... The Replacement Fund is expected to be managed with a
similar style and strategy as that of the Replaced
Fund.
Adviser/Subadviser...................................... Fidelity Management & Research MassMutual/Alliance Capital Management, LP.
Company/FMR Co., Inc.
Fund Asset Level as of 12/31/05......................... $1,000,000,000...................... N/A.
Mgmt. Fee............................................... 0.59%............................... 0.65%.
Mgmt. Fee Schedule...................................... Group Fee Rate + Individual Fund Fee 0.65% on all assets.
Rate.
Group Rate as of 12/31/04: 0.2724% Individual Fund Fee Rate: 0.30%
12b-1 Fee............................................... 0.10%.
Other Expenses.......................................... 0.10%............................... 0.14%.
Total Annual Operating Expenses......................... 0.79%............................... 0.79%.
Fee Reduction........................................... 0.03%............................... 0.04%.
Net Total Annual Expenses............................... 0.76%............................... 0.75%.*
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F. Substitution 6
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Fund Name............................................... Franklin Small Cap Value Securities MML Small Cap Value Fund.
Fund.
Investment Objective.................................... Seeks long-term total return. The Seeks long-term total return. The fund normally invests
fund normally invests at least 80% at least 80% of its net assets in investments of small
of its net assets in investments of capitalization companies.
small capitalization companies. For
this fund, small cap companies are
those with market cap values not
exceeding $2.5 billion, at the time
of purchase. The fund's manager
invests in small companies that it
believes are undervalued.
Principal Risks......................................... Stocks Risk................ Market Risk.
Smaller and Mid-Sized Smaller Company Risk.
Companies. Foreign Investment Risk.
Foreign Securities......... Credit Risk.
Value Style Investing...... Management Risk.
Sector Focus............... Liquidity Risk.
Derivative Risk.
Currency Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. .................................... The Replacement Fund is expected to be managed with a
similar style and strategy as that of the Replaced
Fund.
Adviser/Subadviser...................................... Franklin Advisory Services, LLC..... MassMutual/Goldman Sachs Asset Management, L.P.
Fund Asset Level as of 12/31/05......................... $1,100,000,000...................... N/A.
Mgmt. Fee............................................... 0.52%............................... 0.75%.
[[Page 14035]]
Mgmt. Fee Schedule...................................... 0.60% on 1st $200 million........... 0.75% on all assets.
0.50% on next $1.1 billion..........
0.40% over $1.3 billion.............
12b-1 Fee............................................... 0.25%.
Other Expenses.......................................... 0.17%............................... 0.14%.
Total Annual Operating Expenses......................... 0.94%............................... 0.89%.
Fee Reduction........................................... 0.05%............................... 0.01%.
Net Total Annual Expenses............................... 0.89%............................... 0.88%.*
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G. Substitution 7
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fund Name............................................... Janus Aspen Balanced Portfolio MML Blend Fund.
(Service Shares and Institutional
Shares).
Investment Objective.................................... Seeks long-term capital growth Seeks to achieve as high a level of total rate of return
consistent with preservation of over an extended period of time as is considered
capital and balanced by current consistent with prudent investment risk and the
income by normally investing 40-60% preservation of capital.
of its assets in securities
selected primarily for their growth
potential and 40-60% of its assets
in securities selected primarily
for their income potential. The
portfolio will normally invest at
least 25% of its assets in fixed-
income securities.
Principal Risks......................................... Stock Market Risk.......... Market Risk.
Foreign Securities Risks... Foreign Investment Risk.
Derivatives Risk........... Derivative Risk.
Non-Investment Grade Bond Credit Risk.
Risk. Management Risk.
Initial Public Offering Pre-Payment Risk.
(IPO) Risk. Liquidity Risk.
Small Market Capitalization Emerging Markets Risk.
Risk. Currency Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. The Replacement Fund is expected to be managed with a
similar style and strategy as that of the Replaced
Fund.
Adviser/Subadviser...................................... Janus Capital....................... MassMutual/Babson Capital Management.
Fund Asset Level as of 12/31/05......................... $2,159,000,000...................... $921,500,000.
Mgmt. Fee............................................... 0.55%............................... 0.39%.
Mgmt. Fee Schedule...................................... 0.55% on all assets................. 0.50% on 1st $100 million.
0.45% on next $200 million.
0.40% on next $200 million.
0.35% over $500 million.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Share Class Service Institutional
¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤¤
12b-1 Fee............................................. 0.25%.
Other Expenses........................................ 0.01%.............. 0.01%.............. 0.03%.
Total Annual Operating Expenses....................... 0.81%.............. 0.56%.............. 0.42%.
Fee Reduction.........................................
Net Total Annual Expenses............................. 0.81%.............. 0.56%.............. 0.42%.
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--------------------------------------------------------------------------------------------------------------------------------------------------------
Replaced fund Replacement fund
--------------------------------------------------------------------------------------------------------------------------------------------------------
H. Substitution 8
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fund Name............................................... Janus Aspen Forty Portfolio MML Concentrated Growth Fund.
(Service Shares and Institutional
Shares).
Investment Objective.................................... Seeks long-term growth of capital. Seeks long-term growth of capital. The portfolio invests
The portfolio invests primarily in primarily in common stocks selected for their growth
common stocks selected for their potential.
growth potential.
Principal Risks......................................... Stock Market Risk.......... Market Risk.
Foreign Securities Risks... Foreign Investment Risk.
Derivatives Risk........... Derivative Risk.
Non-Investment Grade Bond Credit Risk.
Risk.
Initial Public Offering Management Risk.
(IPO) Risk.
Small Market Capitalization Pre-Payment Risk.
Risk. Liquidity Risk.
Emerging Markets Risk.
Currency Risk.
Leveraging Risk.
[[Page 14036]]
Significant Principal Risk Disparities?................. .................................... The Replacement Fund is expected to be managed with a
similar style and strategy as that of the Replaced
Fund.
Adviser/Subadviser...................................... Janus Capital....................... MassMutual/Legg Mason Capital Management, Inc.
Fund Asset Level as of 12/31/05......................... $1,025,900,000...................... N/A
Mgmt. Fee............................................... 0.64%............................... 0.60%
Mgmt. Fee Schedule...................................... 0.64% on all assets................. 0.60% on all assets.
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Share Class Service Institutional Class I * Class II **
--------------------------------------------------------------------------------------------------------------------------------------------------------
12b-1 Fee........................ 0.25%
Other Expenses................... 0.02%....................... 0.02%....................... 0.24%....................... 0.14%
Total Annual Operating Expenses.. 0.91%....................... 0.66%....................... 0.84%....................... 0.74%
Fee Reduction.................... 0.08%....................... 0.08%
Net Total Annual Expenses........ 0.91%....................... 0.66%....................... 0.76%***.................... 0.66%***
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Class I shares of the MML Aggressive Growth Fund will replace Service shares of the Janus Aspen Forty Portfolio.
** Class II shares of the MML Aggressive Growth Fund will replace Institutional shares of the Janus Aspen Forty Portfolio.
*** Pro Forma.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Replaced Fund Replacement Fund
--------------------------------------------------------------------------------------------------------------------------------------------------------
I. Substitution 9
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fund Name............................................... Janus Aspen Worldwide Growth MML Global Fund.
Portfolio (Service Shares and
Institutional Shares).
Investment Objective.................................... Seeks long-term growth of capital in Seeks long-term capital appreciation. The fund invests
a manner consistent with the mainly in common stocks of companies in the U.S. and
preservation of capital by foreign countries. The fund can invest without limit in
investing primarily in common foreign securities and can invest in any country,
stocks of companies of any size including countries with developed or emerging markets.
located throughout the world. The
portfolio normally invests in
issuers from at least five
different countries, including the
United States.
Principal Risks......................................... Stock Market Risk.......... Market Risk.
Foreign Securities Risks... Foreign Investment Risk.
Derivatives Risk........... Derivative Risk.
Non-Investment Grade Bond Credit Risk.
Risk.
Initial Public Offering Management Risk.
(IPO) Risk.
Small Market Capitalization Liquidity Risk.
Risk.
Emerging Markets Risk.
Currency Risk.
Growth Company Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. .................................... The Replacement Fund is expected to be managed with a
similar style and strategy as that of the Replaced Fund
with no significant risk disparities between the funds.
Adviser/Subadviser...................................... Janus Capital....................... MassMutual/Neuberger Berman Management Inc.
Fund Asset Level as of 12/31/05......................... $1,601,200,000...................... N/A.
Mgmt. Fee............................................... 0.60%............................... 0.60%.
Mgmt. Fee Schedule...................................... 0.60% on all assets................. 0.60% on all assets.
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Share Class Service Institutional Class I * Class II **
--------------------------------------------------------------------------------------------------------------------------------------------------------
12b-1 Fee........................ 0.25%
Other Expenses................... 0.03%....................... 0.03%....................... 0.28%....................... 0.18%
Total Annual Operating Expenses.. 0.88%....................... 0.63%....................... 0.88%....................... 0.78%
Fee Reduction.................... ............................ ............................ 0.15%....................... 0.15%
Net Total Annual Expenses........ 0.88%....................... 0.63%....................... 0.73% ***................... 0.63% ***
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Class I shares of the MML Global Fund will replace Service shares of the Janus Aspen Worldwide Growth Portfolio.
** Class II shares of the MML Global Fund will replace Institutional shares of the Janus Aspen Worldwide Growth Portfolio.
*** Pro Forma.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Replaced fund Replacement fund
--------------------------------------------------------------------------------------------------------------------------------------------------------
J. Substitution 10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fund Name............................................... MFS[reg] Investors Trust Series.... MML Enhanced Index Core Equity Fund.
[[Page 14037]]
Investment Objective.................................... Seeks long-term growth of capital Seeks to outperform the total return performance of its
with a secondary objective to seek benchmark index, the S&P 500[reg] Index, while
reasonable current income. It maintaining risk characteristics similar to those of
normally invests at least 65% of the benchmark.
its net assets in common stocks and
related securities with a focus on
companies with larger market
capitalizations.
Principal Risks......................................... Market Risk................ Market Risk.
Foreign Securities Risk.... Foreign Investment Risk.
Company Risk............... Growth Company Risk.
Large Cap Companies Risk... Credit Risk.
Over-the-Counter Risk...... Management Risk.
Derivative Risk.
Currency Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. The Replacement Fund is expected to be managed with a
similar style and strategy as that of the Replaced Fund
with no significant risk disparities between the funds.
Adviser/Subadviser...................................... Massachusetts Financial Services MassMutual/Babson Capital Management.
Company.
Fund Asset Level as of 12/31/05......................... $802,400,000........................ $18,800,000.
Mgmt. Fee............................................... 0.75%............................... 0.55%.
Mgmt. Fee Schedule...................................... 0.75% on all assets................. 0.55% on all assets.
12b-1 Fee...............................................
Other Expenses.......................................... 0.16%............................... 0.26%.
Total Annual Operating Expenses......................... 0.91%............................... 0.81%.
Fee Reduction........................................... 0.01%............................... 0.15%.
Net Total Annual Expenses............................... 0.90%............................... 0.66%.
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K. Substitution 11
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fund Name............................................... MFS[reg] New Discovery Fund......... MML Small Cap Index Fund.
Investment Objective.................................... Seeks capital appreciation. It Seeks to match, as closely as possible, before expenses,
normally invests 65% of its net the performance of an index identified in the fund's
assets in equity securities of prospectus, which emphasizes stocks of small U.S.
smaller emerging growth companies. companies
Principal Risks......................................... Market Risk................ Market Risk.
Emerging Growth Companies Growth Company Risk.
Risk.
Company Risk............... Credit Risk.
Small Capitalization Management Risk.
Companies Risk.
Over-the-Counter Risk...... Liquidity Risk.
Foreign Securities Risk.... Derivative Risk.
Short Sales Risk........... Non-Diversification Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. The Replacement Fund is expected to be managed with a
similar style and strategy as that of the Replaced Fund
with no significant risk disparities between the funds.
Adviser/Subadviser...................................... Massachusetts Financial Services MassMutual/Northern Trust Investments, Inc.
Company.
Fund Asset Level as of 12/31/05......................... $702,500,000........................ N/A.
Mgmt. Fee............................................... 0.90%............................... 0.35%.
Mgmt. Fee Schedule...................................... 0.90% on all assets................. 0.35% on all assets.
12b-1 Fee...............................................
Other Expenses.......................................... 0.17%............................... 0.18%.
Total Annual Operating Expenses......................... 1.07%............................... 0.53%.
Fee Reduction........................................... 0.01%............................... 0.08%.
Net Total Annual Expenses............................... .06%................................ 0.45%*.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fund Name............................................... Scudder VIT Small Cap Index Fund.... MML Small Cap Index Fund.
Investment Objective.................................... Seeks to match, as closely as Seeks to match, as closely as possible, before expenses,
possible, before expenses, the the performance of the an index identified in the
performance of the Russell fund's prospectus, which emphasizes stocks of small
2000[reg] Index, which emphasizes U.S. companies
stocks of small U.S. companies.
Principal Risks......................................... Stock Market Risk.......... Market Risk.
Tracking Error Risk........ Credit Risk.
Index Fund Risk............ Management Risk.
Small Company Liquidity Risk.
Capitalization Risk.
Futures and Options Risk... Derivative Risk.
Pricing Risk............... Non-Diversification Risk.
[[Page 14038]]
Securities Lending Risk.... Growth Company Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. The MML Fund Board of Trustees has approved Northern Trust as a subadvisor for the MML Small
Cap Index Fund. The fund is expected to be managed in the same style and strategy as the
Scudder VIT Small Cap Index Fund.
Adviser/Subadviser...................................... Deutsche Asset Management/Northern MassMutual/Northern Trust Investments, Inc.
Trust Investments, Inc.
Fund Asset Level as of 12/31/05......................... $449,500,000........................ N/A.
Mgmt. Fee............................................... 0.35%............................... 0.35%.
Mgmt. Fee Schedule...................................... 0.35% on all assets................. 0.35% on all assets.
12b-1 Fee...............................................
Other Expenses.......................................... 0.13%............................... 0.18%.
Total Annual Operating Expenses......................... 0.48%............................... 0.53%.
Fee Reduction........................................... 0.03%............................... 0.08%.
Net Total Annual Expenses............................... 0.45%............................... 0.45%*.
--------------------------------------------------------------------------------------------------------------------------------------------------------
L. Substitution 12
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fund Name............................................... T. Rowe Price Blue Chip Growth MML Blue Chip Growth Fund.
Portfolio.
Investment Objective.................................... Seeks long-term capital growth Seeks long-term capital growth through investment in
through investment in common stocks common stocks of large and medium-sized blue chip
of large and medium-sized blue chip growth companies
growth companies.
Principal Risks......................................... Market Risk................ Market Risk.
Growth Stock Risk.......... Growth Company Risk.
Industry Risk.............. Credit Risk.
Company Risk............... Management Risk.
Smaller Capitalization Derivative Risk.
Company Risk.
Growth Style Investing Risk Foreign Investment Risk.
Currency Risk.
Leveraging Risk.
Significant Principal Risk Disparities?................. The MML Fund Board of Trustees has approved T. Rowe Price as a sub-adviser for the MML Blue
Chip Growth Fund. The fund is expected to be managed in the same style and strategy and by
the same team that manages T. Rowe Price Blue Chip Growth Portfolio.
Adviser/Subadviser...................................... T. Rowe Price Associates, Inc....... MassMutual/T. Rowe Price Associates, Inc.
Fund Asset Level as of 12/31/05......................... $91,500,000......................... N/A.
Mgmt. Fee............................................... 0.85%............................... 0.75%.
Mgmt. Fee Schedule...................................... 0.85% on all assets................. 0.75% on all assets.
12b-1 Fee...............................................
Other Expenses.......................................... 0.00%............................... 0.23%.
Total Annual Operating Expenses......................... 0.85%............................... 0.98%.
Fee Reduction........................................... 0.13%.
Net Total Annual Expenses............................... 0.85%............................... 0.85%*.
--------------------------------------------------------------------------------------------------------------------------------------------------------
M. Substitution 13
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fund Name............................................... T. Rowe Price Equity Income MML Equity Income Fund.
Portfolio.
Investment Objective.................................... Seeks substantial dividend income Seeks dividend income and long-term capital growth
and long-term capital growth through investment in common stocks of established
through investment in common stocks companies
of established companies.
Principal Risks......................................... Market Risk................ Market Risk.
Foreign Investment Risk............. Foreign Investment Risk.
Currency Risk.............. Currency Risk.
Growth Stock Risk.......... Credit Risk.
Industry Risk.............. Management Risk.
Company Risk............... Derivative Risk.
Value Style Investing Risk. Leveraging Risk.
Derivatives Risk.
Interest Rate Risk.
Significant Principal Risk Disparities?................. The MML Fund Board of Trustees has approved T. Rowe Price as a sub-adviser for the MML Equity
Income Fund. The fund is expected to be managed in the same style and strategy and by the
same team that manages T. Rowe Price Blue Equity Income Portfolio.
Adviser/Subadviser...................................... T. Rowe Price Associates, Inc....... MassMutual/T. Rowe Price Associates, Inc.
Fund Asset Level as of 12/31/05......................... $1,400,000,000...................... N/A.
Mgmt. Fee............................................... 0.85%............................... 0.75%.
Mgmt. Fee Schedule...................................... 0.85% on all assets................. 0.75% on all assets.
12b-1 Fee...............................................
Other Expenses.......................................... 0.00%............................... 0.10%.
Total Annual Operating Expenses......................... 0.85%............................... 0.85%.
Fee Reduction...........................................
[[Page 14039]]
Net Total Annual Expenses............................... 0.85%............................... 0.85%*.
--------------------------------------------------------------------------------------------------------------------------------------------------------
N. Substitution 14
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fund Name............................................... T. Rowe Price Mid-Cap Growth MML Mid Cap Growth Fund.
Portfolio.
Investment Objective.................................... Seeks long-term capital appreciation Seeks long-term capital appreciation through investment
through investment in stocks of mid- in stocks of mid-cap companies with potential for above-
cap companies with potential for average earnings growth.
above-average earnings growth.
Principal Risks......................................... Market Risk................ Market Risk.
Smaller Capitalization Smaller Company Risk.
Company Risk.
Growth Stock Risk.......... Growth Company Risk.
Derivatives Risk........... Derivative Risk.
Industry Risk.............. Credit Risk.
Company Risk...............