MetLife Investors Insurance Company, et al.; Notice of Application, 19510-19523 [E5-1737]
Download as PDF
<![CDATA[
19510
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
confirmation of their submissions, but
they also receive custom responses via
e-mail from the Office of Investor
Education and Assistance which
include an automatically generated file
number.
Investor use of the SEC’s complaint
and question forms is strictly voluntary.
Moreover, the SEC does not require
investors to submit complaints,
questions, tips, or other feedback.
Absent the forms, investors would still
have several ways to contact the agency,
including telephone, facsimile, letters,
and e-mail. Nevertheless, the SEC
created its complaint and question
forms to make it easier for investors to
contact the agency with complaints,
questions, or tips. The forms further
streamline the workflow of SEC staff
who record, process, and respond to
investor contacts.
The staff of the SEC estimates that the
total reporting burden for using the
complaint and question forms is 5,000
hours. The calculation of this estimate
depends on the number of investors
who use the forms each year and the
estimated time it takes to complete the
forms: 20,000 respondents × 15 minutes
= 5,000 burden hours.
Responses to the complaint and
question forms are subject to the
Freedom of Information Act (FOIA),
which generally allows the SEC to make
information available to the public upon
request. An investor who submits a
complaint or question form may request
that his or her information not be
released to the public by writing a letter
asking that the information remain
confidential under one of the
exemptions described in FOIA (see 5
U.S.C. 552). The SEC determines
whether the investor’s claim of an
exemption is valid when someone
requests the investor’s information
under FOIA. The SEC often makes its
files available to other governmental
agencies, particularly United States
Attorneys, state securities regulators,
and state prosecutors. There is a
likelihood that information supplied by
investors will be made available to such
agencies where appropriate. Whether or
not the SEC makes its files available to
other governmental agencies is, in
general, a confidential matter between
the SEC and such other governmental
agencies.
The document retention period for the
correspondence management system
used by the Office of Investor Education
and Assistance is four years.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid
control number.
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
Written comments regarding the
above information should be directed to
the following persons: (i) Desk Officer
for the Securities and Exchange
Commission, Office of Information and
Regulatory Affairs, Office of
Management and Budget, Room 10102,
New Executive Office Building,
Washington, DC 20503, or send an email to: David_Rostker@omb.eop.gov;
and (ii) R. Corey Booth, Director/Chief
Information Officer, Office of
Information Technology, Securities and
Exchange Commission, 450 Fifth Street,
NW., Washington, DC 20549. Comments
must be submitted to OMB within 30
days of this notice.
Dated: April 4, 2005.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1736 Filed 4–12–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IC–26829; File No. 812–13158]
MetLife Investors Insurance Company,
et al.; Notice of Application
April 7, 2005.
The Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of application for an
order pursuant to Section 26(c) of the
Investment Company Act of 1940 (the
‘‘Act’’) approving certain substitutions
of securities and an order of exemption
pursuant to Section 17(b) of the Act
from Section 17(a) of the Act.
AGENCY:
MetLife Investors
Insurance Company (‘‘MetLife
Investors’’), MetLife Investors Variable
Annuity Account One (‘‘VA Account
One’’), MetLife Investors Variable Life
Account One (‘‘VL Account One’’),
MetLife Investors Variable Life Account
Eight (‘‘VL Account Eight’’), First
MetLife Investors Insurance Company
(‘‘First MetLife Investors’’), First MetLife
Investors Variable Annuity Account
One (‘‘First VA Account One’’), MetLife
Investors Insurance Company of
California (‘‘MetLife Investors of
California’’), MetLife Investors Variable
Annuity Account Five (‘‘VA Account
Five’’), MetLife Investors Variable Life
Account Five (‘‘VL Account Five’’),
General American Life Insurance
Company (‘‘General American’’),
General American Separate Account
Seven (‘‘Separate Account Seven’’),
General American Separate Account
Eleven (‘‘Separate Account Eleven’’),
General American Separate Account
Thirty Three (‘‘Separate Account Thirty
APPLICANTS:
PO 00000
Frm 00099
Fmt 4703
Sfmt 4703
Three’’), General American Separate
Account Fifty Eight (‘‘Separate Account
Fifty Eight’’), General American
Separate Account Fifty Nine (‘‘Separate
Account Fifty Nine’’), New England Life
Insurance Company (‘‘New England’’),
New England Variable Life Separate
Account (‘‘NEVL Separate Account’’),
New England Variable Life Separate
Account Four (‘‘NEVL Separate Account
Four’’), New England Variable Life
Separate Account Five (‘‘NEVL Separate
Account Five’’), Metropolitan Life
Insurance Company (‘‘MetLife’’)
(together with MetLife Investors, First
MetLife Investors, MetLife Investors of
California, General American and New
England, the ‘‘Insurance Companies’’),
Metropolitan Life Separate Account
DCVL (‘‘Separate Account DCVL’’),
Security Equity Separate Account
Thirteen (‘‘Separate Account Thirteen’’),
Security Equity Separate Account
Nineteen (‘‘Separate Account
Nineteen’’) (together with VA Account
One, VL Account One, VL Account
Eight, First VA Account One, VA
Account Five, VL Account Five,
Separate Account Seven, Separate
Account Eleven, Separate Account
Thirty Three, Separate Account Fifty
Eight, Separate Account Fifty Nine,
NEVL Separate Account, NEVL Separate
Account Four, NEVL Separate Account
Five, Separate Account DCVL and
Separate Account Thirteen, the
‘‘Separate Accounts’’), Met Investors
Series Trust (‘‘MIST’’) and Metropolitan
Series Fund, Inc. (‘‘Met Series Fund’’)
(MIST and Met Series Fund are the
‘‘Investment Companies’’). The
Insurance Companies and the Separate
Accounts are the ‘‘Substitution
Applicants.’’ The Insurance Companies,
the Separate Accounts and the
Investment Companies are the ‘‘Section
17 Applicants.’’
FILING DATE: The application was filed
on January 24, 2005, and amended on
April 5, 2005. Applicants represent that
they will file an amendment to the
application during the notice period to
conform to the representations set forth
herein.
SUMMARY OF APPLICATION: Applicants
request an order to permit certain unit
investment trusts to substitute (a) shares
of Lord Abbett Growth & Income
Portfolio for shares of AIM V.I. Premier
Equity Fund, VIP Contrafund, VP
Income and Growth Fund, Goldman
Sachs Growth and Income Fund; (b)
shares of Neuberger Berman Real Estate
Portfolio for shares of Alliance
Bernstein Real Estate Investment
Portfolio; (c) shares of Janus Aggressive
Growth Portfolio for shares of
AllianceBernstein Premier Growth
E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
Portfolio; (d) shares of MFS Research
International Portfolio for shares of VP
International Fund, Putnam VT
International Equity Fund; (e) shares of
MetLife Stock Index Portfolio for shares
of Dreyfus Stock Index Portfolio; (f)
shares of Oppenheimer Capital
Appreciation Portfolio for shares of MFS
Investors Trust Series, Oppenheimer
Capital Appreciation Fund/VA; (g)
shares of Lord Abbett Bond Debenture
Portfolio for shares of VIP High Income
Portfolio, MFS High Income Fund; (h)
shares of T. Rowe Price Large Cap
Growth Portfolio for shares of MFS
Research Series, MFS Emerging Growth
Series; (i) shares of Met/AIM Small Cap
Growth Portfolio for shares of MFS New
Discovery Series; (j) shares of PIMCO
Total Return Portfolio for shares of
Oppenheimer Strategic Bond Fund/VA;
and (k) shares of Third Avenue Small
Cap Value Portfolio for shares of SVS
Dreman Small Cap Value Portfolio. The
shares are held by certain of the
Separate Accounts to fund certain group
and individual variable annuity
contracts and variable life insurance
policies (collectively, the ‘‘Contracts’’)
issued by the Insurance Companies
(defined below).
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 should be received by the
Commission by 5:30 p.m. on April 28,
2005 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 writer’s
interest, the reason for the request and
the issued contested. Persons may
request notification of a hearing by
writing to the Secretary of the
Commission.
Secretary, Securities and
Exchange Commission, 450 Fifth Street,
NW., Washington, DC 20549–0609.
Applicants: Richard C. Pearson, Esq.,
MetLife Investors Insurance Company,
22 Corporate Plaza Drive, Newport
Beach, California 92660, and Robert N.
Hickey, Esq., Sullivan & Worcester LLP,
1666 K Street, NW., Washington, DC
20006.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Robert Lamont, Senior Counsel at 202–
551–6758 or, Lorna MacLeod, Branch
Chief, at 202–551–6795, Office of
Insurance Products, Division of
Investment Management.
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
The
following is a summary of the
application. The complete application
may be obtained for a fee from the
Public Reference Branch of the
Commission, 450 Fifth Street, NW.,
Washington, DC 20549 (tel. 202–942–
8090).
SUPPLEMENTARY INFORMATION:
Applicants’ Representations
1. MetLife Investors is a stock life
insurance company organized under the
laws of Missouri. MetLife Investors is a
wholly-owned subsidiary of MetLife,
Inc. MetLife Investors is the depositor
and sponsor of VA Account One, VL
Account One and VL Account Eight.
2. VA Account One is registered
under the Act as a unit investment trust.
The assets of VA Account One support
certain Contracts. Security interests in
the Contracts have been registered
under the Securities Act of 1933.
3. VA Account One is currently
divided into 78 sub-accounts, 43 of
which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 35 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with VA Account One (except,
that, in some instances, VA Account
One may own more than 5% of such
investment company).
4. VL Account One is registered under
the Act as a unit investment trust. The
assets of VL Account One support
certain Contracts. Security interests in
the Contracts have been registered
under the Securities Act of 1933.
5. VL Account One is currently
divided into 47 sub-accounts, 31 of
which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 16 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with VL Account One (except,
that, in some instances, VL Account
One may own more than 5% of such
investment company).
6. VL Account Eight serves as a
separate account funding vehicle for
certain Contracts that are exempt from
registration under Section 4(2) of the
Securities Act of 1933 and Regulation D
thereunder.
7. VL Account Eight is currently
divided into 20 sub-accounts, 3 of
which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 17 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with VL Account Eight
(except, that, in some instances, VL
PO 00000
Frm 00100
Fmt 4703
Sfmt 4703
19511
Account Eight may own more than 5%
of such investment company).
8. First MetLife Investors is a stock
life insurance company organized under
the laws of New York. First MetLife
Investors is an indirect wholly-owned
subsidiary of MetLife, Inc. First MetLife
Investors is the depositor and sponsor of
First VA Account One.
9. First VA Account One is registered
under the Act as a unit investment trust.
The assets of First VA Account One
support certain Contracts. Security
interests in the Contracts have been
registered under the Securities Act of
1933.
10. First VA Account One is currently
divided into 72 sub-accounts, 43 of
which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 29 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with First VA Account One
(except, that, in some instances, First
VA Account One may own more than
5% of such investment company).
11. MetLife Investors of California is
a stock life insurance company
organized under the laws of California.
MetLife Investors of California is an
indirect wholly-owned subsidiary of
MetLife, Inc. MetLife Investors of
California is the depositor and sponsor
of VA Account Five and VL Account
Five.
12. VA Account Five is registered
under the Act as a unit investment trust.
The assets of VA Account Five support
certain Contracts. Security interests
under the Contracts have been
registered under the Securities Act of
1933.
13. VA Account Five is currently
divided into 84 sub-accounts, 48 of
which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 36 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with VA Account Five (except,
that, in some instances, VA Account
Five may own more than 5% of such
investment company).
14. VL Account Five is registered
under the Act as a unit investment trust.
The assets of VL Account Five support
certain Contracts. Security interests in
the Contracts have been registered
under the Securities Act of 1933.
15. VL Account Five is currently
divided into 47 sub-accounts, 31 of
which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 16 of
which reflect the performance of
registered investment companies
E:\FR\FM\13APN1.SGM
13APN1
19512
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
managed by advisers that are not
affiliated with VL Account Five (except,
that, in some instances, VL Account
Five may own more than 5% of such
investment company).
16. General American is a stock life
insurance company organized under the
laws of Missouri. General American is
an indirect wholly-owned subsidiary of
MetLife, Inc. General American is the
depositor and sponsor of Separate
Account Seven and Separate Account
Eleven.
17. Separate Account Seven serves as
a separate account funding vehicle for
certain Contracts that are exempt from
registration under Section 4(2) of the
Securities Act of 1933 and Regulation D
thereunder.
18. Separate Account Seven is
currently divided into 58 sub-accounts,
20 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 38 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with Separate Account Seven
(except, that, in some instances,
Separate Account Seven may own more
than 5% of such investment company).
19. Separate Account Eleven is
registered under the Act as a unit
investment trust. The assets of Separate
Account Eleven support certain
Contracts. Security interests under the
Contracts have been registered under
the Securities Act of 1933.
20. Separate Account Eleven is
currently divided into 50 sub-accounts,
34 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 16 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with Separate Account Eleven
(except, that in some instances, Separate
Account Eleven may own more than 5%
of such investment company).
21. Separate Account Thirty Three
serves as a separate account funding
vehicle for certain Contracts that are
exempt from registration under Section
4(2) of the Securities Act of 1933 and
Regulation D thereunder.
22. Separate Account Thirty Three is
currently divided into 58 sub-accounts,
20 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 38 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with Separate Account Thirty
Three (except, that, in some instances,
Separate Account Thirty Three may
own more than 5% of such investment
company).
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
23. Separate Account Fifty Eight
serves as a separate account funding
vehicle for certain Contracts that are
exempt from registration under Section
4(2) of the Securities Act of 1933 and
Regulation D thereunder.
24. Separate Account Fifty Eight is
currently divided into 34 sub-accounts,
26 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 8 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with Separate Account Fifty
Eight (except, that, in some instances,
Separate Account Fifty Eight may own
more than 5% of such investment
company).
25. Separate Account Fifty Nine
serves as a separate account funding
vehicle for certain Contracts that are
exempt from registration under Section
4(2) of the Securities Act of 1933 and
Regulation D thereunder.
26. Separate Account Fifty Nine is
currently divided into 34 sub-accounts,
26 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 8 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with Separate Account Fifty
Nine (except, that, in some instances,
Separate Account Fifty Nine may own
more than 5% of such investment
company).
27. New England is a stock life
insurance company organized under the
laws of Delaware and re-domesticated in
Massachusetts. General American is an
indirect wholly-owned subsidiary of
MetLife, Inc. New England is the
depositor and sponsor of NEVL Separate
Account, NEVL Separate Account Four
and NEVL Separate Account Five.
28. NEVL Separate Account is
registered under the Act as a unit
investment trust. The assets of NEVL
Separate Account support certain
Contracts. Security interests under the
Contracts have been registered under
the Securities Act of 1933.
29. NEVL Separate Account is
currently divided into 47 sub-accounts,
41 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 6 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with NEVL Separate Account
(except, that in some instances, NEVL
Separate Account may own more than
5% of such investment company).
30. NEVL Separate Account Four
serves as a separate account funding
vehicle for certain Contracts that are
PO 00000
Frm 00101
Fmt 4703
Sfmt 4703
exempt from registration under Section
4(2) of the Securities Act of 1933 and
Regulation D thereunder.
31. NEVL Separate Account Four is
currently divided into 28 sub-accounts,
20 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 8 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with NEVL Separate Account
Four (except, that, in some instances,
NEVL Separate Account Four may own
more than 5% of such investment
company).
32. NEVL Separate Account Five
serves as a separate account funding
vehicle for certain Contracts that are
exempt from registration under Section
4(2) of the Securities Act of 1933 and
Regulation D thereunder.
33. NEVL Separate Account Nine is
currently divided into 28 sub-accounts,
20 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 8 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with NEVL Separate Account
Five (except, that, in some instances,
NEVL Separate Account Five may own
more than 5% of such investment
company).
34. MetLife is a stock life insurance
company organized under the laws of
New York. MetLife is a wholly-owned
subsidiary of MetLife, Inc., a publicly
traded company. MetLife is the
depositor and sponsor of MetLife
Separate Account DCVL.
35. Separate Account DCVL serves as
a separate account funding vehicle for
certain Contracts that are exempt from
registration under Section 4(2) of the
Securities Act of 1933 and Regulation D
thereunder.
36. Separate Account DCVL is
currently divided into 50 sub-accounts,
20 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 30 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with Separate Account DCVL
(except that in some instances, Separate
Account DCVL may own more than 5%
of such investment company).
37. Separate Account Thirteen is
registered under the Act as a unit
investment trust. The assets of Separate
Account Thirteen support certain
Contracts. Security interests under the
Contracts have been registered under
the Securities Act of 1933.
38. Separate Account Thirteen is
currently divided into 18 sub-accounts,
E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
3 of which reflect the investment
performance of a corresponding series of
MIST or Met Series Fund, and 15 of
which reflect the performance of
registered investment companies
managed by advisers that are not
affiliated with Separate Account
Thirteen (except that in some instances,
Separate Account Thirteen may own
more than 5% of such investment
company).
39. Separate Account Nineteen serves
as a separate account funding vehicle
for certain Contracts that are exempt
from registration under Section 4(2) of
the Securities Act of 1933 and
Regulation D thereunder.
40. Separate Account Nineteen is
currently divided into 1 sub-account, 0
of which reflects the investment
performance of a corresponding series of
MIST or Met Series Fund, and 1 of
which reflects the performance of a
registered investment company
managed by an adviser that is not
affiliated with Separate Account
Nineteen (except that in some instances,
Separate Account Nineteen may own
more than 5% of such investment
company).
41. MIST and Met Series Fund are
each registered under the Act as open-
end management investment companies
of the series type, and their securities
are registered under the Securities Act
of 1933.
42. Under the Contracts, the Insurance
Companies reserve the right to
substitute shares of one fund with
shares of another.
43. Each Insurance Company, on its
behalf and on behalf of the Separate
Accounts, proposes to make certain
substitutions of shares of eighteen funds
(the ‘‘Existing Funds’’) held in subaccounts of its respective Separate
Accounts for certain series (the
‘‘Replacement Funds’’) of MIST and Met
Series Fund. The proposed substitutions
are as follows: (a) Shares of Lord Abbett
Growth and Income Portfolio for shares
of AIM V.I. Premier Equity Fund, VIP
Contrafund, VP Income & Growth Fund,
Goldman Sachs Growth and Income
Fund; (b) shares of Neuberger Berman
Real Estate Portfolio for shares of
AllianceBernstein Real Estate
Investment Portfolio; (c) shares of Janus
Aggressive Growth Portfolio for shares
of AllianceBernstein Premier Growth
Portfolio; (d) shares of MFS Research
International Portfolio for shares of VP
International Fund, Putnam VT
International Equity Fund; (e) shares of
19513
MetLife Stock Index Portfolio for shares
of Dreyfus Stock Index Portfolio; (f)
shares of Oppenheimer Capital
Appreciation Portfolio for shares of MFS
Investors Trust Series, Oppenheimer
Capital Appreciation Fund/VA; (g)
shares of Lord Abbett Bond Debenture
Portfolio for shares of VIP High Income
Portfolio, MFS High Income Fund; (h)
shares of T. Rowe Price Large Cap
Growth Portfolio for shares of MFS
Research Series, MFS Emerging Growth
Series; (i) shares of Met/AIM Small Cap
Growth Portfolio for shares of MFS New
Discovery Series; (j) shares of PIMCO
Total Return Portfolio for shares of
Oppenheimer Strategic Bond Fund/VA;
and (k) shares of Third Avenue Small
Cap Value Portfolio for shares of SVS
Dreman Small Cap Value Portfolio.
44. The investment objectives,
policies and restrictions of the
Replacement Funds are in each case
substantially the same as or sufficiently
similar to the investment objectives,
policies and restrictions of the
respective Existing Funds. Set forth
below is a description of the investment
objectives and principal investment
policies of each Existing Fund and its
corresponding Replacement Fund.
Existing fund
Replacement fund
AIM V.I. Premier Equity Fund—seeks to achieve long-term growth of
capital. Income is a secondary objective. The Fund normally invests
at least 80% of its net assets in equity securities. The Fund may also
invest in preferred stocks and debt instruments that have prospects
for growth of capital and may invest up to 25% of its total assets in
foreign securities. The portfolio managers focus on undervalued equity securities.
VIP Contrafund Portfolio—seeks long-term capital appreciation. The
Portfolio invests primarily in common stocks of large companies believed to be undervalued. The Portfolio may invest in both domestic
and foreign securities.
VP Income & Growth Fund—seeks to achieve capital growth by investing in common stocks. Income is a secondary objective. The portfolio
managers select stocks primarily from the largest 1,500 publicly traded U.S. companies. Securities are ranked by their value as well as
growth potential. The Fund seeks to provide better returns than the
S&P 500 without taking on significant additional risks. The portfolio
managers attempt to create a dividend yield for the Fund that will be
greater than that of the S&P 500.
Goldman Sachs Growth and Income Fund—seeks long-term growth of
capital and growth of income. Normally, the Fund invests at least
65% of its total assets in equity securities that have favorable prospects for capital appreciation and/or dividend-paying ability. Up to
25% of the Fund’s assets may be invested in foreign securities including securities of issuers in emerging market countries. The Fund
may invest up to 35% of its total assets in fixed income securities.
AllianceBernstein Real Estate Investment Portfolio 1—seeks total return
from long-term growth of capital and from income. The Portfolio invests, normally, at least 80% of its net assets in equity securities of
real estate investment trusts and other real estate industry companies. The Portfolio seeks to invest in real estate companies whose
underlying portfolios are diversified geographically and by property
type. The Portfolio may invest up to 20% of its net assets in mortgage-backed securities.
Lord Abbett Growth and Income Portfolio—seeks long-term growth of
capital and income without excessive fluctuation in market value.
The Portfolio normally invests 80% of its net assets in equity securities of large (at least $5 billion of market capitalization), seasoned
U.S. and multinational companies that are believed to be undervalued. The Portfolio may also invest in foreign securities.
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
PO 00000
Frm 00102
Fmt 4703
Neuberger Berman Real Estate Portfolio 1—seeks total return through
investment in real estate securities, emphasizing both capital appreciation and current income. The Portfolio invests, normally, at least
80% of its assets in equity securities of real estate investment trusts
and other securities issued by real estate companies. The Portfolio
may invest up to 20% of its assets in investment grade or non-investment grade (minimum rating of B) debt securities.
Sfmt 4703
E:\FR\FM\13APN1.SGM
13APN1
19514
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
Existing fund
Replacement fund
AllianceBernstein Premier Growth Portfolio 2—seeks growth of capital
by pursuing aggressive investment policies. The Portfolio invests primarily in the securities of a small number of U.S. companies. The
Portfolio looks for companies with superior growth prospects. The
Portfolio may invest up to 20% of its assets in foreign securities and
up to 20% of its assets in convertible securities which may be below
investment grade.
VP International Fund 3—seeks capital growth. The portfolio managers
look for companies with earnings and revenue growth. The Fund’s
assets will be primarily invested in common stocks companies in at
least three developed countries (excluding the U.S.).
Janus Aggressive Growth Portfolio 2—seeks long-term growth of capital. The Portfolio invests primarily in common stocks selected for
their growth potential. Investments may be made in companies of
any size. The Portfolio may invest without limit in foreign securities
and up to 35% of its assets in high yield/high risk debt securities.
Putnam VT International Equity Fund—seeks equity capital appreciation. The Fund invests mainly in common stocks of companies outside the U.S. Under normal circumstances, at least 80% of the
Fund’s net assets are invested in equity securities. The Fund invests
mainly in mid- and large-sized companies, although it can invest in
companies of any size. The Fund emphasizes investments in developed countries, although it can also invest in emerging market countries.
Dreyfus Stock Index Portfolio—seeks to match the total return of the
S&P 500 Index. The Fund generally invests in all 500 securities of
the S&P 500 Index proportion to their weighting in the S&P 500
Index.
MFS Investors Trust Series 4—seeks mainly to provide long-term
growth of capital and secondarily reasonable current income. Normally, the Series invests at least 65% of its net assets in common
stocks and related equity securities. While the Series may invest in
companies of any size, the Series generally focuses on companies
with large market capitalizations believed to have substantial growth
prospects and attractive valuations based on current and expected
earnings and cash flow. The Series will also seek to generate gross
income equal to approximately 90% of the dividend yield of the S&P
500 Index. The Series may invest in foreign equity securities.
Oppenheimer Capital Appreciation Fund/VA—seeks capital appreciation. The Fund invests mainly in common stocks of growth companies of any market capitalization. The Fund currently focuses on the
securities of mid-cap and large-cap domestic companies, but buys
foreign stocks as well.
VIP High Income Portfolio—seeks a high level of current income, while
also considering growth of capital. The Portfolio normally invests primarily in income-producing debt securities, preferred stocks and convertible securities, with an emphasis on lower-quality debt securities.
The Portfolio may invest in domestic and foreign issuers.
MFS High Income Series—seeks high current income by investing primarily in a managed diversified portfolio of fixed income securities,
some of which may involve equity features. Normally, the Series invests at least 80% of its net assets in high income fixed income securities (junk bonds). The Series may also invest in foreign securities
(including emerging market securities.)
MFS Emerging Growth Series—seeks to provide long-term growth of
capital. Normally the Series invests at least 65% of its net assets in
common stocks and related securities of emerging growth companies
of any size (currently invests primarily in large-cap companies). The
Series may invest in foreign securities including emerging market securities.
MFS Research International Portfolio3—seeks capital appreciation.
Normally, at least 65% of the Portfolio’s net assets are invested in
common stocks and related securities of foreign companies (including up to 25% of its net assets in emerging market issuers) located
in at least five countries. The Portfolio seeks companies of any size
with favorable growth prospects and attractive valuations.
MetLife Stock Index Portfolio—seeks to equal the performance of the
S&P 500 Index. The Portfolio purchases the common stocks of all
the companies in the S&P 500 Index.
Oppenheimer Capital Appreciation Portfolio 4—seeks capital appreciation. The Portfolio mainly invests in common stocks of growth companies of any market capitalization. The Portfolio currently focuses
on the securities of mid-cap and large-cap companies. The Portfolio
may also purchase the securities of foreign issuers.
Lord Abbett Bond Debenture Portfolio—seeks to provide high current
income and the opportunity for capital appreciation to produce a high
total return. The Portfolio normally invests substantially all of its net
assets in high yield and investment grade debt securities. Up to 80%
of the Portfolio’ total assets may be invested in junk bonds. At least
20% of the Portfolio’s assets must be invested in any combination of
investment grade debt securities, U.S. government securities and
cash equivalents. Up to 20% of the Portfolio’s assets may be invested in foreign securities.
T. Rowe Price Large Cap Growth Portfolio—seeks long-term growth of
capital and, secondarily, dividend income. Normally, the Portfolio invests at least 80% of its assets in the common stocks and other securities of large capitalization growth companies (i.e., those within
the market capitalization range of the Russell 1000 Index). The investment adviser seeks companies that have the ability to pay increasing dividends through strong cash flow.
MFS Research Series—seeks to provide long-term growth of capital
and future income. The Series invests at least 80% of its net assets
in common stocks and related securities. The Series focuses on
large cap companies believed to have favorable prospects for longterm growth, attractive valuations and superior management. The
Series may invest in companies of any size, in debt securities rated
below investment grade, and in foreign securities, including emerging
market securities.
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
19515
Existing fund
Replacement fund
MFS New Discovery Series—seeks capital appreciation. The Series
normally invests at least 65% of its net assets in equity securities of
emerging growth companies. The Series generally focuses on smaller capitalization companies that have market capitalizations within
the range of companies in the Russell 2000 Index at the time of purchase. The Series may also invest in foreign securities.
Met/AIM Small Cap Growth Portfolio—seeks long-term growth of capital. The Portfolio normally invests at least 80% of its net assets in
equity related securities of small-cap companies. To be a small-cap
company it will have a market capitalization at the time of purchase,
no larger than the largest capitalized company included in the Russell 2000 Index. The Portfolio may invest up to 20% of its net assets
in equity securities of issuers whose capitalizations are outside the
range of market capitalization of company included in the Russell
2000 Index, in investment grade non-convertible debt securities and
U.S.-government securities. The Portfolio may invest up to 25% of its
total assets in foreign securities.
PIMCO Total Return Portfolio—seeks maximum total return, consistent
with the preservation of capital and prudent investment management.
The Portfolio normally invests at least 65% of its assets in a diversified portfolio of fixed income instruments of varying maturities. The
Portfolio invests primarily in investment grade debt obligations, U.S.
government securities and commercial paper and other short-term
obligations. Up to 20% of the Portfolio’s net assets may be invested
in securities denominated in foreign currencies and the Portfolio may
invest beyond that limit in U.S. dollar-denominated securities of foreign issuers.
Third Avenue Small Cap Value Portfolio 5—seeks long-term capital appreciation. Normally, the Portfolio, which is non-diversified, invests at
least 80% of its net assets in equity securities of small companies.
The Portfolio considers a ‘‘small company’’ to be one whose market
capitalization is no greater than or less than the range of capitalizations of companies in the Russell 2000 Index or the S&P Small Cap
600 Index at the time of the investment. The Portfolio seeks to acquire common stocks of well-financed companies at a substantial
discount to what the investment adviser believes is their true value.
Oppenheimer Strategic Bond Fund/VA—seeks a high level of current
income principally derived from interest on debt securities. The Fund
invests in debt securities of issuers in three market sectors: foreign
governments and companies (including emerging market issuers);
U.S. government securities; and lower-grade, high yield securities of
U.S. and foreign companies. The Fund may invest in securities of
any maturity and may invest without limit in junk bonds.
SVS Dreman Small Cap Value Portfolio 5—seeks long-term capital appreciation. Normally, the Portfolio invests at least 80% of its net assets in undervalued stocks of small U.S. companies, which the Portfolio defines as companies that are similar in market value to those
in the Russell 2000 Value Index. The Portfolio may also invest up to
20% of its net assets in securities of foreign companies in the form
of dollar-denominated American Depositary Receipts.
1 As of December 31, 2004, neither AllianceBernstein Real Estate Investment Portfolio nor Neuberger Berman Real Estate Portfolio had any
investments in mortgage-backed securities or debt securities including in non-investment grade debt securities. Each Portfolio had over 92% of
its assets invested in real estate investment trusts, with the balance in cash or common stock equities.
2 With respect to AllianceBernstein Premier Growth Portfolio and Janus Aggressive Growth Portfolio, although there is no restriction on Janus
Aggressive Growth Portfolio’s investment in foreign securities, normally the Portfolio does not invest more than approximately 20% of its assets
in foreign securities. With respect to investments in high yield/high risk debt securities, neither Portfolio currently invests more than a minimal
amount in such securities.
3 As of December 31, 2004 MFS Research International Portfolio and VP International Fund had 2.8% and 0%, respectively, of their assets invested in emerging market issuers.
4 With respect to MFS Investors Trust Series and Oppenheimer Capital Appreciation Portfolio, the S&P 500 Index is the benchmark for both
Portfolios. Although income is not a stated objective of Oppenheimer Capital Appreciation Portfolio, approximately 72% of the Portfolio’s assets
are invested in dividend paying securities. Moreover, at December 31, 2003, 14 of the top 25 securities held by Oppenheimer Capital Appreciation Portfolio are held by MFS Investors Trust Series. Oppenheimer Capital Appreciation Portfolio’s current yield as of December 31, 2003 was
1.1%. MFS Investors Trust Series’ current yield as of December 31, 2003 was 1.6%.
5 Although Third Avenue Small Cap Value Portfolio is classified as a non-diversified fund, its investments are similar to a diversified fund. As of
December 31, 2004, Third Avenue Small Cap Portfolio’s top ten holdings amounted to 21.32% of its portfolio with no holding in excess of 2.63%.
SVS Dream Small Cap Value Portfolio’s top ten holdings at December 31, 2004 amounted to 18.4% of its portfolio with no holding in excess of
3.1%. It is anticipated that the Third Avenue Small Cap Value Portfolio will continue to be managed as a diversified fund.
45. The following tables compare the
total operating expenses of the Existing
Fund and the Replacement Fund for
each proposed substitution. The
comparative expenses are based on
actual expenses, including waivers, for
the year ended December 31, 2003. In
some cases, the expense caps for certain
Replacement Funds were decreased
effective May 1, 2004, and the
management fee was reduced effective
January 1, 2005. In such cases the
expenses of each Fund as of December
31, 2003, have been restated to reflect
the expense cap in effect as of May 1,
2004, or revised management fee, as the
case may be. Where a Fund has multiple
classes of shares involved in the
proposed substitution, the expenses of
each class are presented.
AIM V.I. Premier Equity
Fund (Class 1)
(percent)
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
E:\FR\FM\13APN1.SGM
13APN1
Lord Abbett
Growth and Income Portfolio
(Class A) (percent)
0.61
........................
0.24
0.85
........................
0.85
0.56
........................
0.06
0.62
........................
0.62
19516
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
AllianceBernstein
Premier Growth
Portfolio (Class
A) (percent)
Janus Aggressive Growth
Portfolio
(Class A) *
(percent)
1.00
...........................
0.05
1.05
...........................
1.05
0.70
........................
0.12
0.82
........................
0.82
Management Fee .................................................................................................................................................
12b–1 Fee ............................................................................................................................................................
Other Expenses ...................................................................................................................................................
Total Expenses ....................................................................................................................................................
Waivers ................................................................................................................................................................
Net Expenses .......................................................................................................................................................
* Restated to reflect lowered management fee.
AllianceBernstein Real Estate
Investment Portfolio
Class A
(percent)
Management Fee .............................................................................................
12b–1 Fee ........................................................................................................
Other Expenses ...............................................................................................
Total Expenses ................................................................................................
Waivers ............................................................................................................
Net Expenses ..................................................................................................
Class B
(percent)
0.90
........................
0.34
1.24
0.25
0.89
0.90
0.25
0.34
1.49
0.35
1.14
Neuberger Berman Real Estate Portfolio
Class A
(percent)
Class B
(percent)
Lord Abbett
Growth and Income Portfolio
(Class A) (percent)
0.70
........................
........................
0.70
........................
0.70
0.56
........................
0.06
0.62
........................
0.62
VP International Fund
(Class 1) (percent)
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
0.70
0.25
0.41
1.36
0.21
1.15
VP Income &
Growth Fund
(Class 1) (percent)
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
0.70
........................
0.41
1.11
0.21
0.90
MFS Research
International
Portfolio
(Class A) (percent)
1.33
........................
0.01
1.34
........................
1.34
0.80
........................
0.31
1.11
0.02
1.09
Dreyfus Stock Index Fund
Initial
(percent)
Management Fee .............................................................................................
12b–1 fee .........................................................................................................
Other Expenses ...............................................................................................
Total Expenses ................................................................................................
Waivers ............................................................................................................
Net Expenses ..................................................................................................
MetLife Stock Index Fund
Service
(percent)
Class A
(percent)
Class B
(percent)
0.25
........................
0.02
0.27
........................
0.27
0.25
0.25
0.02
0.52
........................
0.52
0.25
........................
0.06
0.31
........................
0.31
0.25
0.25
0.06
0.56
........................
0.56
VIP High Income Portfolio
Initial
(percent)
Management Fee .............................................................................................
12b–1 Fee ........................................................................................................
Other Expenses ...............................................................................................
Total Expenses ................................................................................................
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
PO 00000
Frm 00105
Fmt 4703
Service 2
(percent)
0.58
........................
0.11
0.69
Sfmt 4703
E:\FR\FM\13APN1.SGM
0.58
0.25
0.12
0.95
13APN1
Lord Abbett Bond Debenture
Portfolio *
Class A
(percent)
0.53
........................
0.07
0.60
Class B
(percent)
0.53
0.25
0.06
0.84
19517
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
VIP High Income Portfolio
Lord Abbett Bond Debenture
Portfolio *
Initial
(percent)
Class A
(percent)
Class B
(percent)
........................
0.69
........................
0.95
........................
0.60
........................
0.84
VIP
Contrafund
Portfolio (Initial) (percent)
Lord Abbett
Growth and Income (Class
A) (percent)
0.58
........................
0.09
0.67
........................
0.67
0.56
........................
0.06
0.62
........................
0.62
Goldman
Sachs Growth
and Income
Fund (percent)
Waivers ............................................................................................................
Net Expenses ..................................................................................................
Service 2
(percent)
Lord Abbett
Growth and Income (Class
A) (percent)
0.75
........................
0.45
1.20
0.30
0.90
0.56
........................
0.06
0.62
........................
0.62
* Restated to reflect lowered management fee.
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
MFS High Income Series
Lord Abbett Bond Debenture Portfolio *
Initial
(percent)
Management Fee .............................
12b–1 Fee ........................................
Other Expenses ...............................
Total Expenses ................................
Waivers ............................................
Net Expenses ..................................
Service
(percent)
Class A
(percent)
Class B
(percent)
0.75
........................................
0.15
0.90
........................................
0.90
0.75
0.25
0.15
1.15
........................................
1.15
0.53
........................................
0.07
0.60
........................................
0.60
0.53
0.25
0.06
0.84
........................................
0.84
* Restated to reflect lowered management fee.
MFS Emerging
Growth Series
(Initial) (percent)
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
PO 00000
Frm 00106
Fmt 4703
Sfmt 4703
E:\FR\FM\13APN1.SGM
13APN1
0.75
........................
0.12
0.87
........................
0.87
0.63
........................
0.16
0.79
........................
0.79
MFS Research
Series (Initial)
(Percent)
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
T. Rowe Price
Large Cap
Growth Portfolio (Class A)
(percent)
T. Rowe Price
Large Cap
Growth Portfolio (Class A)
(Percent)
0.75
........................
0.12
0.87
........................
0.87
0.63
........................
0.16
0.79
........................
0.79
19518
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
MFS New Discovery Series
Met/AIM Small Cap Growth
Portfolio
Initial
(Percent)
Class A
(Percent)
0.90
........................
0.14
1.04
........................
1.04
0.90
0.25
0.14
1.29
........................
1.29
0.90
........................
0.26
1.16
0.12
1.04
0.90
0.25
0.21
1.36
0.06
1.30
MFS Investors
Trust Series
(Initial) (Percent)
Oppenheimer
Capital Appreciation Portfolio (Class A)
(Percent)
0.75
........................
0.12
0.87
........................
0.87
0.63
........................
0.12
0.75
0.03
0.72
Oppenheimer
Strategic Bond
Fund/VA
(Class A) (percent)
PIMCO Total
Return Portfolio (Class A)
(percent)
0.72
........................
0.05
0.77
0.02
0.75
0.50
........................
0.09
0.57
........................
0.59
Oppenheimer
Capital Appreciation Fund/
VA (Class A)
(Percent)
Management Fee .............................................................................................
12b–1 Fee ........................................................................................................
Other Expenses ...............................................................................................
Total Expenses ................................................................................................
Waivers ............................................................................................................
Net Expenses ..................................................................................................
Service
(Percent)
Oppenheimer
Capital Appreciation Portfolio (Class A)
(Percent)
0.65
........................
0.02
0.67
........................
0.67
0.63
........................
0.12
0.75
0.03
0.72
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
Management Fee .....................................................................................................................................................
12b–1 Fee ................................................................................................................................................................
Other Expenses .......................................................................................................................................................
Total Expenses ........................................................................................................................................................
Waivers ....................................................................................................................................................................
Net Expenses ..........................................................................................................................................................
Putnam VT International Equity
Fund
MFS Research International
Portfolio
Class A
(Percent)
Management Fee .............................................................................................
12b–1 Fee ........................................................................................................
Other Expenses ...............................................................................................
Total Expenses ................................................................................................
Waivers ............................................................................................................
Net Expenses ..................................................................................................
Class B
(Percent)
Class A
(Percent)
0.80
........................
0.22
1.02
........................
1.02
0.80
0.25%
0.22
1.27
........................
1.27
0.80
........................
0.31
1.11
0.02
1.09
SVS Dreman Small Cap Value
Portfolio
Class A
(Percent)
Management Fee .............................................................................................
12b–1 Fee ........................................................................................................
Other Expenses ...............................................................................................
Total Expenses ................................................................................................
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
PO 00000
Frm 00107
Fmt 4703
Class B
(Percent)
0.75
........................
0.05
0.80
Sfmt 4703
E:\FR\FM\13APN1.SGM
0.75
0.25
0.19
1.19
13APN1
Class B
(Percent)
Class B
(Percent)
0.80
0.25
0.34
1.39
0.06
1.33
Third Avenue Small Cap Value
Portfolio
Class A
(Percent)
0.75
........................
0.18
0.93
Class B
(Percent)
0.75
0.25
0.18
1.18
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
SVS Dreman Small Cap Value
Portfolio
19519
Third Avenue Small Cap Value
Portfolio
Class A
(Percent)
Waivers ............................................................................................................
Net Expenses ..................................................................................................
46. Met Advisers, LLC or Met
Investors Advisory, LLC is the adviser of
each of the Replacement Funds. Each
Replacement Fund currently offers up to
three classes of shares, two of which,
Class A and Class B, are involved in the
substitutions. No Rule 12b–1 Plan has
been adopted for any Replacement
Fund’s Class A shares. Each
Replacement Fund’s Class B shares has
adopted a Rule 12b–1 distribution plan
whereby up to 0.50% of a Fund’s assets
attributable to its Class B shares may be
used to finance the distribution of the
Fund’s shares. Currently, payments
under the plan are limited to 0.25% for
Class B shares.
47. Met Investors Advisory, LLC has
entered into agreement with MIST
whereby, for the period ended April 30,
2006, and any subsequent year in which
the agreement is in effect, the total
annual operating expenses of the
following Replacement Funds
(excluding interest, taxes, brokerage
commissions and Rule 12b–1 fees) will
not exceed the amounts stated. These
expense caps may be extended by the
investment adviser from year to year as
follows:
Percent
Met/AIM Small Cap Growth Portfolio ............................................
Third Avenue Small Cap Value
Portfolio .....................................
MFS Research International Portfolio ............................................
Oppenheimer Capital Appreciation
Portfolio .....................................
Janus Aggressive Growth Portfolio ............................................
Neuberger Berman Real Estate
Portfolio .....................................
1.05
0.95
1.00
0.75
0.90
0.90
48. The annuity contracts are
individual flexible premium fixed and
variable deferred and immediate
annuity contracts. Many of the annuity
contracts provide that a maximum of 12
transfers can be made every year
without charge or that a $10 contractual
limit charge will apply or that no
transfer charge will apply. During the
accumulation period, Contract owners
may transfer between the variable
account options or from the variable
account options to the fixed account
option without limitation. Some of the
Contracts have no contractual limitation
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
Class B
(Percent)
Class A
(Percent)
Class B
(Percent)
........................
0.80
........................
1.19
........................
0.93
........................
1.18
on transfers during the accumulation
period. Some Contract owners may
make transfers from the fixed account
option subject to certain minimum
transfer amounts ($500 or the total
interest in the account) and maximum
limitations. Some of the Contracts have
additional restrictions on transfers from
the fixed account to the variable
account. During the income period or
under the immediate annuity, Contract
owners may currently make unlimited
transfers among investment portfolios
and from investment portfolios to the
fixed account option. No fees or other
charges are currently imposed on
transfers for most of the Contracts.
Under certain annuity contracts, the
Insurance Companies reserve the right
to impose additional restrictions on
transfers. Any transfer limits will be
suspended in connection with the
substitutions.
49. Under the life insurance policies,
policy owners may allocate account
value among the General Account and
the available investment portfolios. All
or part of the account value may be
transferred from any investment
portfolio to another investment
portfolio, or to the General Account.
Generally, for Contracts that are exempt
from registration under Section 4(2) of
the Securities Act of 1933, there is no
General Account. The minimum amount
that can be transferred is the lesser of
the minimum transfer amount (which
currently ranges from $1 to $500), or the
total value that is an investment
portfolio or the General Account.
Certain policies provide that twelve
transfers in a policy year can be made
without charge. A transfer fee of $25 is
payable for additional transfers in a
policy year, but these fees are not
currently charged. Other policies do not
currently limit the number of transfers;
however, the Insurance Companies
reserve the right to limit transfers to four
or twelve (depending on the policy) per
policy year end and to impose a $25
charge on transfers in excess of 12 per
year or on any transfer. Under the
policies, the Insurance Companies
reserve the right to impose additional
restrictions on transfers. All transfer
limits will be suspended in connection
with the substitutions.
PO 00000
Frm 00108
Fmt 4703
Sfmt 4703
50. The substitutions are expected to
provide significant benefits to Contract
owners, including improved selection of
portfolio managers and simplification of
fund offerings through the elimination
of overlapping offerings. The
Substitution Applicants believe that the
sub-advisers to the Replacement Funds
overall are better positioned to provide
consistent above-average performance
for their Funds than are the advisers or
sub-advisers of the Existing Funds. At
the same time, Contract owners will
continue to be able to select among a
large number of funds, with a full range
of investment objectives, investment
strategies, and managers.
51. In addition, there will be
significant savings to Contract owners
because certain costs, such as the costs
of printing and mailing lengthy periodic
reports and prospectuses for the
Existing Funds will be substantially
reduced. Further, many of the Existing
Funds are smaller than their respective
Replacement Funds. As a result, various
costs such as legal, accounting, printing
and trustee fees are spread over a larger
base with each Contract owner bearing
a smaller portion of the cost than would
be the case if the Fund were smaller in
size. (More detailed information
regarding the amount of each Fund’s
assets can be found in the Application).
52. In addition, Contract owners with
sub-account balances invested in shares
of the Replacement Funds will, except
as follows, have a lower total expense
ratios taking into account fund expenses
(including Rule 12b–1 fees, if any) and
current fee waivers. In the following
substitutions, the total operating
expense ratios of the Replacement
Funds are higher because expenses,
other than the management fee, are
somewhat higher.
• AllianceBernstein Real Estate
Investment Portfolio/Neuberger Berman
Real Estate Portfolio—total expenses of
Class A and Class B shares are 1 basis
point higher than those of
AllianceBernstein Real Estate
Investment Portfolio;
• Dreyfus Stock Index Fund/MetLife
Stock Index Portfolio—total expenses of
Class A and Class B shares are 4 basis
points higher than those of Dreyfus
Stock Index Fund;
E:\FR\FM\13APN1.SGM
13APN1
19520
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
• MFS New Discovery Series/Met/
AIM Small Cap Growth Portfolio—total
expenses of Class B shares are 1 basis
point higher than those of MFS New
Discovery Series—Class A expenses are
the same;
• Oppenheimer Capital Appreciation
Portfolio/VA/Oppenheimer Capital
Appreciation Portfolio—total expenses
of Class A and Class B shares are 5 basis
points higher than those of
Oppenheimer Capital Appreciation
Portfolio/VA;
• Putnam VT International Equity
Fund/MFS Research International
Portfolio—total expenses of Class A and
Class B shares are 7 basis points and 6
basis points, respectively, higher than
those of Putnam VT International Equity
Fund; and
• SVS Dreman Small Cap Value
Portfolio/Third Avenue Small Cap
Value Portfolio—total expenses of Class
A and Class B shares are 13 basis points
higher than those of SVS Dreman Small
Cap Value Portfolio—Class B expenses
of Third Avenue Small Cap Value are
lower.
Except as stated above for Contract
owners with account balances in certain
classes of 6 of the 18 funds involved in
the substitutions, the substitutions will
result in decreased expense ratios
(ranging from 1 basis point to 31 basis
points). Moreover, there will be no
increase in Contract fees and expenses,
including mortality and expense risk
fees and administration and distribution
fees charged to the Separate Accounts as
a result of the substitutions.
53. The share classes of the Existing
Funds and the Replacement Funds are
identical with respect to the imposition
of Rule 12b–1 fees currently imposed.
While each Replacement Fund’s Class B
Rule 12b–1 fees can be raised to 0.50%
of net assets by the Fund’s Board of
Trustees/Directors, the Rule 12b–1 fees
of 0.25% of the Existing Funds’ shares
cannot be raised by the Fund’s Board of
Trustees, without shareholder approval,
except as follows:
AllianceBerstein Real Estate Investment
Portfolio can be raised by the Board 0.50%;
Putnam VT International Equity Fund can be
raised by the Board up to 0.35%.
Met Series Fund and MIST represent
that, except as set forth in the following
sentence, Rule 12b–1 fees for the
Replacement Funds’ Class B shares
issued in connection with the proposed
substitutions will not be raised above
0.25% of net assets without approval of
a majority in interest of those Contract
owners whose shares were involved in
the proposed substitutions. The
foregoing representation shall apply to
the following substitutions only if the
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
Rule 12b–1 fees for the Replacement
Funds’ Class B shares exceed 0.35% or
0.50% of net assets as indicated:
AllianceBernstein Real Estate
Investment Portfolio/Neuberger Berman
Real Estate Portfolio—0.50%; Putnam
VT International Equity Fund/MFS
Research International Portfolio—
0.35%.
54. Further, in addition to any Rule
12b–1 fees, the investment advisers or
distributors of the Existing Funds pay
the Insurance Companies or one of the
affiliates from 5 to 30 basis points for
Class A (or their equivalent) shares sold
to the Separate Accounts and, for Class
B (or their equivalent) shares, Rule 12b–
1 fees of 25 basis points plus additional
amounts ranging from 5 to 25 basis
points. Following the substitutions,
these payments will not be made on
behalf of the Existing Funds. Rather, 25
basis points in Rule 12b–1 fees (with
respect to Class B shares) and profit
distributions to members, if any, from
the Replacement Funds’ advisers will be
available to the Insurance Companies.
These amounts from investment
advisory fees may be more or less than
the fees being paid by the Existing
Funds.
55. The Insurance Companies
considered the performance history of
each Fund and determined that no
Contract owners would be materially
adversely affected as a result of the
substitutions. (More detailed
information regarding the Funds’
comparative performance histories can
be found in the Application).
56. By a supplement to the
prospectuses for the Contracts and the
Separate Accounts, each Insurance
Company will notify all owners of the
Contracts of its intention to take the
necessary actions, including seeking the
order requested by this Application and
to substitute shares of the funds as
described herein. The supplement will
advise Contract owners that from the
date of the supplement until the date of
the proposed substitution, owners are
permitted to make one transfer of
Contract value (or annuity unit
exchange) out of the Existing Fund subaccount, to another sub-account without
the transfer (or exchange) being treated
as one of a limited number of permitted
transfers (or exchanges) or a limited
number of transfers (or exchanges)
permitted without a transfer change.
The supplement also will inform
Contract owners that for at least 30 days
following the proposed substitutions,
the Insurance Companies will permit
Contract owners affected by the
substitutions to make one transfer of
Contract value (or annuity unit
exchange) out of the Replacement Fund
PO 00000
Frm 00109
Fmt 4703
Sfmt 4703
sub-account to another sub-account
without the transfer (or exchange) being
treated as one of a limited number of
permitted transfers (or exchanges) or a
limited number of transfers (or
exchanges) permitted without a transfer
charge.
57. The proposed substitutions will
take place at relative net asset value
with no change in the amount of any
Contract owner’s Contract value, cash
value, or death benefit or in the dollar
value of his or her investment in the
Separate Accounts.
58. The process for accomplishing the
transfer of assets from each Existing
Fund to its corresponding Replacement
Fund will be determined on a case-bycase basis. In most cases, it is expected
that the substitutions will be effected by
redeeming shares of an Existing Fund
for cash and using the cash to purchase
shares of the Replacement Fund.
59. In certain other cases, it is
expected that the substitutions will be
effected by redeeming the shares of an
Existing Fund in-kind; those assets will
then be contributed in-kind to the
corresponding Replacement Fund to
purchase shares of that Fund. All inkind redemptions from an Existing
Fund of which any of the Substitution
Applicants is an affiliated person will
be effected in accordance with the
conditions set forth in the Commission’s
no-action letter issued to Signature
Financial Group, Inc. (available
December 28, 1999). If an Existing Fund
has not adopted the appropriate
procedures set forth in Signature,
redemptions will be in cash. In light of
this fact, the Section 17 Applicants are
not requesting relief with respect to
those in-kind redemptions.
60. Contract owners will not incur
any fees or charges as a result of the
proposed substitutions, nor will their
rights or an Insurance Company’s
obligations under the Contracts be
altered in any way. All expenses
incurred in connection with the
proposed substitutions, including
brokerage, legal, accounting, and other
fees and expenses, will be paid by the
Insurance Companies. In addition, the
proposed substitutions will not impose
any tax liability on Contract owners.
The proposed substitutions will not
cause the Contract fees and charges
currently being paid by existing
Contract owners to be greater after the
proposed substitutions than before the
proposed substitutions. No fees will be
charged on the transfers made at the
time of the proposed substitutions
because the proposed substitutions will
not be treated as a transfer for the
purpose of assessing transfer charges or
for determining the number of
E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
remaining permissible transfers in a
Contract year.
61. In addition to the prospectus
supplements distributed to owners of
Contracts, within five business days
after the proposed substitutions are
completed, Contract owners will be sent
a written notice informing them that the
substitutions were carried out and that
they may make one transfer of all
Contract value or cash value under a
Contract invested in any one of the subaccounts on the date of the notice to
another sub-account available under
their Contract at no cost and without
regard to the usual limit on the
frequency of transfers from the variable
account options to the fixed account
options. The notice will also reiterate
that the Insurance Company will not
exercise any rights reserved by it under
the Contracts to impose additional
restrictions on transfers or to impose
any charges on transfers (other than
with respect to ‘‘market timing’’
activities) until at least 30 days after the
proposed substitutions. The Insurance
Companies will also send each Contract
owner current prospectuses for the
Replacement Funds involved to the
extent that they have not previously
received a copy.
62. The Substitution Applicants agree
that, to the extent that the annualized
expenses of each Replacement Fund
exceeds, for each fiscal period (such
period being less than 90 days) during
the twenty-four months following the
substitutions, the 2003 net expense level
of the corresponding Existing Fund, the
Insurance Companies will, for each
Contract outstanding on the date of the
proposed substitutions, make a
corresponding reduction in separate
account (or sub-account) expenses on
the last day of such fiscal period, such
that the amount of the Replacement
Fund’s net expenses, together with
those of the corresponding separate
account (or sub-account) will, on an
annualized basis, be no greater than the
sum of the net expenses of the Existing
Fund and the expenses of the separate
account (or sub-account) for the 2003
fiscal year.
63. The Substitution Applicants
further agree that the Insurance
Companies will not increase total
separate account charges (net of any
reimbursements or waivers) for any
existing owner of the Contracts on the
date of the substitutions for a period of
two years from the date of the
substitutions.
Applicants’ Legal Analysis
1. Section 26(c) of the Act requires the
depositor of a registered unit investment
trust holding the securities of a single
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
issuer to obtain Commission approval
before substituting the securities held by
the trust. Specifically, Section 26(c)
states:
It shall be unlawful for any depositor or
trustee of a registered unit investment trust
holding the security of a single issuer to
substitute another security for such security
unless the Commission shall have approved
such substitution. The Commission shall
issue an order approving such substitution if
the evidence establishes that it is consistent
with the protection of investors and the
purposes fairly intended by the policy and
provision of this title.
2. The Substitution Applicants state
that the proposed substitutions appear
to involve substitutions of securities
within the meaning of Section 26(c) of
the Act. The Substitution Applicants,
therefore, request an order from the
Commission pursuant to Section 26(c)
approving the proposed substitutions.
3. The Contracts expressly reserve to
the applicable Insurance Company the
right, subject to compliance with
applicable law, to substitute shares of
another investment company for shares
of an investment company held by a
sub-account of the Separate Accounts.
The prospectuses for the Contracts and
the Separate Accounts contain
appropriate disclosure of this right.
4. Applicants request an order of the
Commission pursuant to Section 26(c)
of the Act approving the proposed
substitutions by the Insurance
Companies. The Applicants assert that
the proposed substitutions are
consistent with the protection of
investors and the purposes fairly
intended by the policy and provisions of
the Act.
5. The Substitution Applicants
represent that with respect to each
proposed substitution, the Replacement
Fund will have the same or lower
management fee and current 12b–1 fee.
In addition, Contract owners with
balances invested in the Replacement
Fund will have, taking into effect any
applicable expense waivers, a lower
expense ratio in many cases and, for
others, a similar expense ratio.
However, the Substitution Applicants
propose to limit Contract charges
attributable to Contract value invested
in the Replacement Funds following the
proposed substitutions, to a rate that
would offset the expense ratio
difference between the Existing Funds’
2003 net expense ratios and the net
expense ratios for the Replacement
Funds. The proposed Replacement
Fund for each Existing Fund has an
investment objective that is at least
substantially similar to that of the
Existing Fund. Moreover, the principal
investment policies of the Replacement
PO 00000
Frm 00110
Fmt 4703
Sfmt 4703
19521
Funds are similar to those of the
corresponding Existing Funds. The
Insurance Companies believe that the
new sub-adviser will, over the longterm, be positioned to provide at least
comparable performance to that of the
Existing Fund’s sub-adviser.
6. In addition, a number of the
Existing Funds are currently either not
available as investment options under
any Contract previously or currently
offered by the Insurance Companies or,
if available, are available only for
additional contributions and/or
transfers from other investment options
under Contracts not currently offered.
The Substitution Applicants submit
that, with respect to those Existing
Funds with limited or no current
availability, there is little likelihood
additional significant assets, if any, will
be allocated to such Funds, and,
therefore, because of the costs of
maintaining such Funds as investment
options under the Contracts, it is in the
interest of shareholders to substitute the
applicable Replacement Funds which
are currently being offered as
investment options by the Insurance
Companies.
7. The Substitution Applicants
anticipate that Contract owners will be
better off with the array of sub-accounts
offered after the proposed substitutions
than they have been with the array of
sub-accounts offered prior to the
substitutions. The proposed
substitutions retain for Contract owners
the investment flexibility which is a
central feature of the Contracts. If the
proposed substitutions are carried out,
all Contract owners will be permitted to
allocate purchase payments and transfer
Contract values and cash values
between and among approximately the
same number of sub-accounts as they
could before the proposed substitutions.
Moreover, the elimination of the costs of
printing and mailing prospectuses and
periodic reports of the Existing Funds
will benefit Contract owners.
8. The Substitution Applicants assert
that none of the proposed substitutions
is of the type that Section 26(c) was
designed to prevent. Unlike traditional
unit investment trusts where a depositor
could only substitute an investment
security in a manner which
permanently affected all the investors in
the trust, the Contracts provide each
Contract owner with the right to
exercise his or her own judgment and
transfer Contract or cash values into
other sub-accounts. Moreover, the
Contracts will offer Contract owners the
opportunity to transfer amounts out of
the affected sub-accounts into any of the
remaining sub-accounts without cost or
other disadvantage. The proposed
E:\FR\FM\13APN1.SGM
13APN1
19522
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
substitutions, therefore, will not result
in the type of costly forced redemption
which Section 26(c) was designed to
prevent.
9. The Substitution Applicants assert
that the proposed substitutions also are
unlike the type of substitution which
Section 26(c) was designed to prevent in
that by purchasing a Contract, Contract
owners select much more than a
particular investment company in
which to invest their account values.
They also select the specific type of
insurance coverage offered by an
Insurance Company under their
Contract as well as numerous other
rights and privileges set forth in the
Contract. Contract owners may also
have considered each Insurance
Company’s size, financial condition,
relationship with MetLife, and its
reputation for service in selecting their
Contract. These factors will not change
as a result of the proposed substitutions.
10. Section 17(a)(1) of the Act, in
relevant part, prohibits any affiliated
person of a registered investment
company, or any affiliated person of
such person, acting as principal, from
knowingly selling any security or other
property to that company. Section
17(a)(2) of the Act generally prohibits
the persons described above, acting as
principals, from knowingly purchasing
any security or other property from the
registered company.
11. Section 2(a)(3) of the Act defines
the term ‘‘affiliated person of another
person’’ in relevant part as:
(A) any person directly or indirectly
owning, controlling, or holding with power
to vote, 5 per centum or more of the
outstanding voting securities of such person;
(B) any person 5 per centum or more of
whose outstanding voting securities are
directly or indirectly owned, controlled, or
held with power to vote, by such person; (C)
any person directly or indirectly controlling,
controlled by, or under common control
with, such other person; * * * (E) if such
other person is an investment company, any
investment adviser thereof. * * *
Section 2(a)(9) of the Act states that
any person who owns beneficially,
either directly or through one or more
controlled companies, more than 25%
of the voting securities of a company
shall be presumed to control such
company.
12. Because shares held by a separate
account of an insurance company are
legally owned by the insurance
company, the Insurance Companies and
their affiliates collectively own of record
substantially all of the shares of MIST
and Met Series Fund. Therefore, MIST
and Met Series Fund and their
respective funds are arguably under the
control of the Insurance Companies
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
notwithstanding the fact that Contract
owners may be considered the
beneficial owners of those shares held
in the Separate Accounts. If MIST and
Met Series Fund and their respective
funds are under the control of the
Insurance Companies, then each
Insurance Company is an affiliated
person or an affiliated person of an
affiliated person of MIST and Met Series
Fund and their respective funds. If
MIST and Met Series Fund and their
respective funds are under the control of
the Insurance Companies, then MIST
and Met Series Fund and their
respective funds are affiliated persons of
the Insurance Companies.
13. Regardless of whether or not the
Insurance Companies can be considered
to control MIST and Met Series Fund
and their respective funds, because the
Insurance Companies own of record
more than 5% of the shares of each of
them and are under common control
with each Replacement Fund’s
investment adviser, the Insurance
Companies are affiliated persons of both
MIST and Met Series Fund and their
respective funds. Likewise, their
respective funds are each an affiliated
person of the Insurance Companies. In
addition, the Insurance Companies,
through their separate accounts own
more than 5% of the outstanding shares
of certain Existing Funds.
14. Because the substitutions may be
effected, in whole or in part, by means
of in-kind redemptions and purchases,
the substitutions may be deemed to
involve one or more purchases or sales
of securities or property between
affiliated persons. The proposed
transactions may involve a transfer of
portfolio securities by the Existing
Funds to the Insurance Companies;
immediately thereafter, the Insurance
Companies would purchase shares of
the Replacement Funds with the
portfolio securities received from the
Existing Funds. Accordingly, as the
Insurance Companies and the
Replacement Funds could be viewed as
affiliated persons of one another under
Section 2(a)(3) of the Act, it is
conceivable that this aspect of the
substitutions could be viewed as being
prohibited by Section 17(a).
Accordingly, the Section 17 Applicants
have determined that it is prudent to
seek relief from Section 17(a) in the
context of this Application for the inkind purchases and sales of the
Replacement Fund shares.
15. Section 17(b) of the Act provides
that the Commission may, upon
application, grant an order exempting
any transaction from the prohibitions of
Section 17(a) if the evidence establishes
that: (1) The terms of the proposed
PO 00000
Frm 00111
Fmt 4703
Sfmt 4703
transaction, including the consideration
to be paid or received, are reasonable
and fair and do not involve
overreaching on the part of any person
concerned; (2) the proposed transaction
is consistent with the policy of each
registered investment company
concerned, as recited in its registration
statement and records filed under the
Act; and (3) the proposed transaction is
consistent with the general purposes of
the Act.
16. The Section 17 Applicants submit
that the terms of the proposed in-kind
purchase transactions, including the
consideration to be paid and received by
each fund involved, are reasonable, fair
and do not involve overreaching
principally because the transactions will
conform with all but two of the
conditions enumerated in Rule 17a–7.
The proposed transactions will take
place at relative net asset value in
conformity with the requirements of
Section 22(c) of the Act and Rule 22c–
1 thereunder with no change in the
amount of any Contract owner’s contract
value or death benefit or in the dollar
value of his or her investment in any of
the Separate Accounts. Contract owners
will not suffer any adverse tax
consequences as a result of the
substitutions. The fees and charges
under the Contracts will not increase
because of the substitutions. Even
though the Separate Accounts, the
Insurance Companies, MIST and Met
Series Fund may not rely on Rule 17a–
7, the Section 17 Applicants submit that
the Rule’s conditions outline the type of
safeguards that result in transactions
that are fair and reasonable to registered
investment company participants and
preclude overreaching in connection
with an investment company by its
affiliated persons.
17. The boards of MIST and Met
Series Fund have adopted procedures,
as required by paragraph (e)(1) of Rule
17a–7, pursuant to which the series of
each may purchase and sell securities to
and from their affiliates. The Section 17
Applicants will carry out the proposed
Insurance Company in-kind purchases
in conformity with all of the conditions
of Rule 17a–7 and each series’
procedures thereunder, except that: (1)
The consideration paid for the securities
being purchased or sold may not be
entirely cash, and; (2) the boards of
MIST and Met Series Fund will not
separately review each portfolio security
purchased by the Replacement Funds.
Nevertheless, the circumstances
surrounding the proposed substitutions
will be such as to offer the same degree
of protection to each Replacement Fund
from overreaching that Rule 17a–7
provides to them generally in
E:\FR\FM\13APN1.SGM
13APN1
Federal Register / Vol. 70, No. 70 / Wednesday, April 13, 2005 / Notices
connection with their purchase and sale
of securities under that Rule in the
ordinary course of their business. In
particular, the Insurance Companies (or
any of their affiliates) cannot effect the
proposed transactions at a price that is
disadvantageous to any of the
Replacement Funds. Although the
transactions may not be entirely for
cash, each will be effected based upon
(1) the independent market price of the
portfolio securities valued as specified
in paragraph (b) of Rule 17a–7, and (2)
the net asset value per share of each
fund involved valued in accordance
with the procedures disclosed in its
respective Investment Company’s
registration statement and as required
by Rule 22c–1 under the Act. No
brokerage commission, fee, or other
remuneration will be paid to any party
in connection with the proposed
transactions.
18. The Section 17 Applicants submit
that the sale of shares of the
Replacement Funds for investment
securities, as contemplated by the
proposed Insurance Company in-kind
purchases, is consistent with the
investment policy and restrictions of the
Investment Companies and the
Replacement Funds because (1) the
shares are sold at their net asset value,
and (2) the portfolio securities are of the
type and quality that the Replacement
Funds would each have acquired with
the proceeds from share sales had the
shares been sold for cash. To assure that
the second of these conditions is met,
Met Investors Advisory LLC, MetLife
Advisers, LLC and the sub-adviser, as
applicable, will examine the portfolio
securities being offered to each
Replacement Fund and accept only
those securities as consideration for
shares that it would have acquired for
each such fund in a cash transaction.
19. The Section 17 Applicants submit
that the proposed Insurance Company
in-kind purchases, as described herein,
are consistent with the general purposes
of the Act as stated in the Findings and
Declaration of Policy in Section 1 of the
Act. The proposed transactions do not
present any of the conditions or abuses
that the Act was designed to prevent.
The Section 17 Applicants submit that
the abuses described in Sections 1(b)(2)
and (3) of the Act will not occur in
connection with the proposed in-kind
purchases.
Conclusion
Applicants assert that for the reasons
summarized above the proposed
substitutions and related transactions
meet the standards of Section 26(c) of
the Act and are consistent with the
standards of Section 17(b) of the Act
VerDate jul<14>2003
18:37 Apr 12, 2005
Jkt 205001
and that the requested orders should be
granted.
For the Commission, by the Division of
Investment Management pursuant to
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5–1737 Filed 4–12–05; 8:45 am]
BILLING CODE 8010–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. IC–26830; File No. 812–13130]
John Hancock Life Insurance
Company (U.S.A.), et al., Notice of
Application
April 7, 2005.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of application for an
order pursuant to Section 26(c) of the
Investment Company Act of 1940 (the
‘‘Act’’), approving the substitution of
securities.
AGENCY:
John Hancock Life
Insurance Company (U.S.A.) (‘‘JHLICO
USA’’) (formerly The Manufacturers Life
Insurance Company (U.S.A.)), John
Hancock Life Insurance Company
(U.S.A.) Separate Account A (‘‘JHLICO
USA Account A’’) (formerly The
Manufacturers Life Insurance Company
(U.S.A.) Separate Account A), John
Hancock Life Insurance Company
(U.S.A.) Separate Account H (‘‘JHLICO
USA Account H’’) (formerly The
Manufacturers Life Insurance Company
(U.S.A.) Separate Account H) (JHLICO
USA Accounts A and H are collectively
referred to herein as the ‘‘JHLICO USA
Accounts’’), John Hancock Life
Insurance Company of New York
(‘‘JHLICO New York’’) (formerly The
Manufacturers Life Insurance Company
of New York) and John Hancock Life
Insurance Company of New York
Separate Account A (‘‘JHLICO NY
Account A’’ and collectively with the
JHLICO USA Accounts, the ‘‘Separate
Accounts’’) (formerly The
Manufacturers Life Insurance Company
of New York Separate Account A)
(JHLICO USA, the JHLICO USA
Accounts, JHLICO New York and
JHLICO NY Account A are collectively
referred to herein as ‘‘Applicants’’).
SUMMARY OF APPLICATION: Applicants
seek an order approving each of the
following substitutions of shares of
series of John Hancock Trust (‘‘JHT’’)
(formerly Manufacturers Investment
Trust) (the ‘‘Substitutions’’): (1) Shares
of JHT 500 Index Trust for shares of
each of the following series of JHT: (a)
APPLICANTS:
PO 00000
Frm 00112
Fmt 4703
Sfmt 4703
19523
Select Growth Trust and (b) Core Value
Trust; (2) shares of JHT Mid Cap Index
Trust for shares of each of the following
series of JHT: (a) Small-Mid Cap Trust
and (b) Small-Mid Cap Growth Trust; (3)
shares of JHT International Equity Index
Trust A for shares of each of the
following series of JHT: (a) International
Equity Select Trust and (b) Global
Equity Select Trust; (4) shares of JHT
Investment Quality Bond Trust for
shares of the following series of JHT:
High Grade Bond Trust; and (5) shares
of JHT U.S. Global Leaders Growth
Trust for shares of the following series
of JHT: Great Companies—America
Trust.
The Application was filed
on October 19, 2004 and amended and
restated on April 1, 2005 and April 5,
2005. Applicants have agreed to file an
amendment during the notice period,
the substance of which is reflected in
this notice.
FILING DATE:
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 28,
2005, 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 natures 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.
Secretary, Securities and
Exchange Commission, 450 Fifth Street,
NW., Washington, DC 20549–0609.
Applicants, c/o John W. Blouch, Esq.,
Dykema Gossett, PLLC, 1300 I Street
NW., Suite 300 West, Washington, DC
20005.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Jeffrey Foor, Staff Attorney, or Zandra
Bailes, Branch Chief, Office of Insurance
Products, Division of Investment
Management, at (202) 551–6795.
The
following is a summary of the
Application. The complete Application
is available for a fee from the
Commission’s Public Reference Branch,
450 Fifth Street, NW., Washington, DC
20549–0102 (202–942–8090).
SUPPLEMENTARY INFORMATION:
E:\FR\FM\13APN1.SGM
13APN1
]]>Agencies
[Federal Register Volume 70, Number 70 (Wednesday, April 13, 2005)]
[Notices]
[Pages 19510-19523]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-1737]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. IC-26829; File No. 812-13158]
MetLife Investors Insurance Company, et al.; Notice of
Application
April 7, 2005.
AGENCY: The Securities and Exchange Commission (``Commission'').
ACTION: Notice of application for an order pursuant to Section 26(c) of
the Investment Company Act of 1940 (the ``Act'') approving certain
substitutions of securities and an order of exemption pursuant to
Section 17(b) of the Act from Section 17(a) of the Act.
-----------------------------------------------------------------------
Applicants: MetLife Investors Insurance Company (``MetLife
Investors''), MetLife Investors Variable Annuity Account One (``VA
Account One''), MetLife Investors Variable Life Account One (``VL
Account One''), MetLife Investors Variable Life Account Eight (``VL
Account Eight''), First MetLife Investors Insurance Company (``First
MetLife Investors''), First MetLife Investors Variable Annuity Account
One (``First VA Account One''), MetLife Investors Insurance Company of
California (``MetLife Investors of California''), MetLife Investors
Variable Annuity Account Five (``VA Account Five''), MetLife Investors
Variable Life Account Five (``VL Account Five''), General American Life
Insurance Company (``General American''), General American Separate
Account Seven (``Separate Account Seven''), General American Separate
Account Eleven (``Separate Account Eleven''), General American Separate
Account Thirty Three (``Separate Account Thirty Three''), General
American Separate Account Fifty Eight (``Separate Account Fifty
Eight''), General American Separate Account Fifty Nine (``Separate
Account Fifty Nine''), New England Life Insurance Company (``New
England''), New England Variable Life Separate Account (``NEVL Separate
Account''), New England Variable Life Separate Account Four (``NEVL
Separate Account Four''), New England Variable Life Separate Account
Five (``NEVL Separate Account Five''), Metropolitan Life Insurance
Company (``MetLife'') (together with MetLife Investors, First MetLife
Investors, MetLife Investors of California, General American and New
England, the ``Insurance Companies''), Metropolitan Life Separate
Account DCVL (``Separate Account DCVL''), Security Equity Separate
Account Thirteen (``Separate Account Thirteen''), Security Equity
Separate Account Nineteen (``Separate Account Nineteen'') (together
with VA Account One, VL Account One, VL Account Eight, First VA Account
One, VA Account Five, VL Account Five, Separate Account Seven, Separate
Account Eleven, Separate Account Thirty Three, Separate Account Fifty
Eight, Separate Account Fifty Nine, NEVL Separate Account, NEVL
Separate Account Four, NEVL Separate Account Five, Separate Account
DCVL and Separate Account Thirteen, the ``Separate Accounts''), Met
Investors Series Trust (``MIST'') and Metropolitan Series Fund, Inc.
(``Met Series Fund'') (MIST and Met Series Fund are the ``Investment
Companies''). The Insurance Companies and the Separate Accounts are the
``Substitution Applicants.'' The Insurance Companies, the Separate
Accounts and the Investment Companies are the ``Section 17
Applicants.''
Filing Date: The application was filed on January 24, 2005, and
amended on April 5, 2005. Applicants represent that they will file an
amendment to the application during the notice period to conform to the
representations set forth herein.
Summary of Application: Applicants request an order to permit certain
unit investment trusts to substitute (a) shares of Lord Abbett Growth &
Income Portfolio for shares of AIM V.I. Premier Equity Fund, VIP
Contrafund, VP Income and Growth Fund, Goldman Sachs Growth and Income
Fund; (b) shares of Neuberger Berman Real Estate Portfolio for shares
of Alliance Bernstein Real Estate Investment Portfolio; (c) shares of
Janus Aggressive Growth Portfolio for shares of AllianceBernstein
Premier Growth
[[Page 19511]]
Portfolio; (d) shares of MFS Research International Portfolio for
shares of VP International Fund, Putnam VT International Equity Fund;
(e) shares of MetLife Stock Index Portfolio for shares of Dreyfus Stock
Index Portfolio; (f) shares of Oppenheimer Capital Appreciation
Portfolio for shares of MFS Investors Trust Series, Oppenheimer Capital
Appreciation Fund/VA; (g) shares of Lord Abbett Bond Debenture
Portfolio for shares of VIP High Income Portfolio, MFS High Income
Fund; (h) shares of T. Rowe Price Large Cap Growth Portfolio for shares
of MFS Research Series, MFS Emerging Growth Series; (i) shares of Met/
AIM Small Cap Growth Portfolio for shares of MFS New Discovery Series;
(j) shares of PIMCO Total Return Portfolio for shares of Oppenheimer
Strategic Bond Fund/VA; and (k) shares of Third Avenue Small Cap Value
Portfolio for shares of SVS Dreman Small Cap Value Portfolio. The
shares are held by certain of the Separate Accounts to fund certain
group and individual variable annuity contracts and variable life
insurance policies (collectively, the ``Contracts'') issued by the
Insurance Companies (defined below).
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 should be received by the Commission by
5:30 p.m. on April 28, 2005 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
writer's interest, the reason for the request and the issued contested.
Persons may request notification of a hearing by writing to the
Secretary of the Commission.
ADDRESSES: Secretary, Securities and Exchange Commission, 450 Fifth
Street, NW., Washington, DC 20549-0609. Applicants: Richard C. Pearson,
Esq., MetLife Investors Insurance Company, 22 Corporate Plaza Drive,
Newport Beach, California 92660, and Robert N. Hickey, Esq., Sullivan &
Worcester LLP, 1666 K Street, NW., Washington, DC 20006.
FOR FURTHER INFORMATION CONTACT: Robert Lamont, Senior Counsel at 202-
551-6758 or, Lorna MacLeod, Branch Chief, at 202-551-6795, Office of
Insurance Products, Division of Investment Management.
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee from
the Public Reference Branch of the Commission, 450 Fifth Street, NW.,
Washington, DC 20549 (tel. 202-942-8090).
Applicants' Representations
1. MetLife Investors is a stock life insurance company organized
under the laws of Missouri. MetLife Investors is a wholly-owned
subsidiary of MetLife, Inc. MetLife Investors is the depositor and
sponsor of VA Account One, VL Account One and VL Account Eight.
2. VA Account One is registered under the Act as a unit investment
trust. The assets of VA Account One support certain Contracts. Security
interests in the Contracts have been registered under the Securities
Act of 1933.
3. VA Account One is currently divided into 78 sub-accounts, 43 of
which reflect the investment performance of a corresponding series of
MIST or Met Series Fund, and 35 of which reflect the performance of
registered investment companies managed by advisers that are not
affiliated with VA Account One (except, that, in some instances, VA
Account One may own more than 5% of such investment company).
4. VL Account One is registered under the Act as a unit investment
trust. The assets of VL Account One support certain Contracts. Security
interests in the Contracts have been registered under the Securities
Act of 1933.
5. VL Account One is currently divided into 47 sub-accounts, 31 of
which reflect the investment performance of a corresponding series of
MIST or Met Series Fund, and 16 of which reflect the performance of
registered investment companies managed by advisers that are not
affiliated with VL Account One (except, that, in some instances, VL
Account One may own more than 5% of such investment company).
6. VL Account Eight serves as a separate account funding vehicle
for certain Contracts that are exempt from registration under Section
4(2) of the Securities Act of 1933 and Regulation D thereunder.
7. VL Account Eight is currently divided into 20 sub-accounts, 3 of
which reflect the investment performance of a corresponding series of
MIST or Met Series Fund, and 17 of which reflect the performance of
registered investment companies managed by advisers that are not
affiliated with VL Account Eight (except, that, in some instances, VL
Account Eight may own more than 5% of such investment company).
8. First MetLife Investors is a stock life insurance company
organized under the laws of New York. First MetLife Investors is an
indirect wholly-owned subsidiary of MetLife, Inc. First MetLife
Investors is the depositor and sponsor of First VA Account One.
9. First VA Account One is registered under the Act as a unit
investment trust. The assets of First VA Account One support certain
Contracts. Security interests in the Contracts have been registered
under the Securities Act of 1933.
10. First VA Account One is currently divided into 72 sub-accounts,
43 of which reflect the investment performance of a corresponding
series of MIST or Met Series Fund, and 29 of which reflect the
performance of registered investment companies managed by advisers that
are not affiliated with First VA Account One (except, that, in some
instances, First VA Account One may own more than 5% of such investment
company).
11. MetLife Investors of California is a stock life insurance
company organized under the laws of California. MetLife Investors of
California is an indirect wholly-owned subsidiary of MetLife, Inc.
MetLife Investors of California is the depositor and sponsor of VA
Account Five and VL Account Five.
12. VA Account Five is registered under the Act as a unit
investment trust. The assets of VA Account Five support certain
Contracts. Security interests under the Contracts have been registered
under the Securities Act of 1933.
13. VA Account Five is currently divided into 84 sub-accounts, 48
of which reflect the investment performance of a corresponding series
of MIST or Met Series Fund, and 36 of which reflect the performance of
registered investment companies managed by advisers that are not
affiliated with VA Account Five (except, that, in some instances, VA
Account Five may own more than 5% of such investment company).
14. VL Account Five is registered under the Act as a unit
investment trust. The assets of VL Account Five support certain
Contracts. Security interests in the Contracts have been registered
under the Securities Act of 1933.
15. VL Account Five is currently divided into 47 sub-accounts, 31
of which reflect the investment performance of a corresponding series
of MIST or Met Series Fund, and 16 of which reflect the performance of
registered investment companies
[[Page 19512]]
managed by advisers that are not affiliated with VL Account Five
(except, that, in some instances, VL Account Five may own more than 5%
of such investment company).
16. General American is a stock life insurance company organized
under the laws of Missouri. General American is an indirect wholly-
owned subsidiary of MetLife, Inc. General American is the depositor and
sponsor of Separate Account Seven and Separate Account Eleven.
17. Separate Account Seven serves as a separate account funding
vehicle for certain Contracts that are exempt from registration under
Section 4(2) of the Securities Act of 1933 and Regulation D thereunder.
18. Separate Account Seven is currently divided into 58 sub-
accounts, 20 of which reflect the investment performance of a
corresponding series of MIST or Met Series Fund, and 38 of which
reflect the performance of registered investment companies managed by
advisers that are not affiliated with Separate Account Seven (except,
that, in some instances, Separate Account Seven may own more than 5% of
such investment company).
19. Separate Account Eleven is registered under the Act as a unit
investment trust. The assets of Separate Account Eleven support certain
Contracts. Security interests under the Contracts have been registered
under the Securities Act of 1933.
20. Separate Account Eleven is currently divided into 50 sub-
accounts, 34 of which reflect the investment performance of a
corresponding series of MIST or Met Series Fund, and 16 of which
reflect the performance of registered investment companies managed by
advisers that are not affiliated with Separate Account Eleven (except,
that in some instances, Separate Account Eleven may own more than 5% of
such investment company).
21. Separate Account Thirty Three serves as a separate account
funding vehicle for certain Contracts that are exempt from registration
under Section 4(2) of the Securities Act of 1933 and Regulation D
thereunder.
22. Separate Account Thirty Three is currently divided into 58 sub-
accounts, 20 of which reflect the investment performance of a
corresponding series of MIST or Met Series Fund, and 38 of which
reflect the performance of registered investment companies managed by
advisers that are not affiliated with Separate Account Thirty Three
(except, that, in some instances, Separate Account Thirty Three may own
more than 5% of such investment company).
23. Separate Account Fifty Eight serves as a separate account
funding vehicle for certain Contracts that are exempt from registration
under Section 4(2) of the Securities Act of 1933 and Regulation D
thereunder.
24. Separate Account Fifty Eight is currently divided into 34 sub-
accounts, 26 of which reflect the investment performance of a
corresponding series of MIST or Met Series Fund, and 8 of which reflect
the performance of registered investment companies managed by advisers
that are not affiliated with Separate Account Fifty Eight (except,
that, in some instances, Separate Account Fifty Eight may own more than
5% of such investment company).
25. Separate Account Fifty Nine serves as a separate account
funding vehicle for certain Contracts that are exempt from registration
under Section 4(2) of the Securities Act of 1933 and Regulation D
thereunder.
26. Separate Account Fifty Nine is currently divided into 34 sub-
accounts, 26 of which reflect the investment performance of a
corresponding series of MIST or Met Series Fund, and 8 of which reflect
the performance of registered investment companies managed by advisers
that are not affiliated with Separate Account Fifty Nine (except, that,
in some instances, Separate Account Fifty Nine may own more than 5% of
such investment company).
27. New England is a stock life insurance company organized under
the laws of Delaware and re-domesticated in Massachusetts. General
American is an indirect wholly-owned subsidiary of MetLife, Inc. New
England is the depositor and sponsor of NEVL Separate Account, NEVL
Separate Account Four and NEVL Separate Account Five.
28. NEVL Separate Account is registered under the Act as a unit
investment trust. The assets of NEVL Separate Account support certain
Contracts. Security interests under the Contracts have been registered
under the Securities Act of 1933.
29. NEVL Separate Account is currently divided into 47 sub-
accounts, 41 of which reflect the investment performance of a
corresponding series of MIST or Met Series Fund, and 6 of which reflect
the performance of registered investment companies managed by advisers
that are not affiliated with NEVL Separate Account (except, that in
some instances, NEVL Separate Account may own more than 5% of such
investment company).
30. NEVL Separate Account Four serves as a separate account funding
vehicle for certain Contracts that are exempt from registration under
Section 4(2) of the Securities Act of 1933 and Regulation D thereunder.
31. NEVL Separate Account Four is currently divided into 28 sub-
accounts, 20 of which reflect the investment performance of a
corresponding series of MIST or Met Series Fund, and 8 of which reflect
the performance of registered investment companies managed by advisers
that are not affiliated with NEVL Separate Account Four (except, that,
in some instances, NEVL Separate Account Four may own more than 5% of
such investment company).
32. NEVL Separate Account Five serves as a separate account funding
vehicle for certain Contracts that are exempt from registration under
Section 4(2) of the Securities Act of 1933 and Regulation D thereunder.
33. NEVL Separate Account Nine is currently divided into 28 sub-
accounts, 20 of which reflect the investment performance of a
corresponding series of MIST or Met Series Fund, and 8 of which reflect
the performance of registered investment companies managed by advisers
that are not affiliated with NEVL Separate Account Five (except, that,
in some instances, NEVL Separate Account Five may own more than 5% of
such investment company).
34. MetLife is a stock life insurance company organized under the
laws of New York. MetLife is a wholly-owned subsidiary of MetLife,
Inc., a publicly traded company. MetLife is the depositor and sponsor
of MetLife Separate Account DCVL.
35. Separate Account DCVL serves as a separate account funding
vehicle for certain Contracts that are exempt from registration under
Section 4(2) of the Securities Act of 1933 and Regulation D thereunder.
36. Separate Account DCVL is currently divided into 50 sub-
accounts, 20 of which reflect the investment performance of a
corresponding series of MIST or Met Series Fund, and 30 of which
reflect the performance of registered investment companies managed by
advisers that are not affiliated with Separate Account DCVL (except
that in some instances, Separate Account DCVL may own more than 5% of
such investment company).
37. Separate Account Thirteen is registered under the Act as a unit
investment trust. The assets of Separate Account Thirteen support
certain Contracts. Security interests under the Contracts have been
registered under the Securities Act of 1933.
38. Separate Account Thirteen is currently divided into 18 sub-
accounts,
[[Page 19513]]
3 of which reflect the investment performance of a corresponding series
of MIST or Met Series Fund, and 15 of which reflect the performance of
registered investment companies managed by advisers that are not
affiliated with Separate Account Thirteen (except that in some
instances, Separate Account Thirteen may own more than 5% of such
investment company).
39. Separate Account Nineteen serves as a separate account funding
vehicle for certain Contracts that are exempt from registration under
Section 4(2) of the Securities Act of 1933 and Regulation D thereunder.
40. Separate Account Nineteen is currently divided into 1 sub-
account, 0 of which reflects the investment performance of a
corresponding series of MIST or Met Series Fund, and 1 of which
reflects the performance of a registered investment company managed by
an adviser that is not affiliated with Separate Account Nineteen
(except that in some instances, Separate Account Nineteen may own more
than 5% of such investment company).
41. MIST and Met Series Fund are each registered under the Act as
open-end management investment companies of the series type, and their
securities are registered under the Securities Act of 1933.
42. Under the Contracts, the Insurance Companies reserve the right
to substitute shares of one fund with shares of another.
43. Each Insurance Company, on its behalf and on behalf of the
Separate Accounts, proposes to make certain substitutions of shares of
eighteen funds (the ``Existing Funds'') held in sub-accounts of its
respective Separate Accounts for certain series (the ``Replacement
Funds'') of MIST and Met Series Fund. The proposed substitutions are as
follows: (a) Shares of Lord Abbett Growth and Income Portfolio for
shares of AIM V.I. Premier Equity Fund, VIP Contrafund, VP Income &
Growth Fund, Goldman Sachs Growth and Income Fund; (b) shares of
Neuberger Berman Real Estate Portfolio for shares of AllianceBernstein
Real Estate Investment Portfolio; (c) shares of Janus Aggressive Growth
Portfolio for shares of AllianceBernstein Premier Growth Portfolio; (d)
shares of MFS Research International Portfolio for shares of VP
International Fund, Putnam VT International Equity Fund; (e) shares of
MetLife Stock Index Portfolio for shares of Dreyfus Stock Index
Portfolio; (f) shares of Oppenheimer Capital Appreciation Portfolio for
shares of MFS Investors Trust Series, Oppenheimer Capital Appreciation
Fund/VA; (g) shares of Lord Abbett Bond Debenture Portfolio for shares
of VIP High Income Portfolio, MFS High Income Fund; (h) shares of T.
Rowe Price Large Cap Growth Portfolio for shares of MFS Research
Series, MFS Emerging Growth Series; (i) shares of Met/AIM Small Cap
Growth Portfolio for shares of MFS New Discovery Series; (j) shares of
PIMCO Total Return Portfolio for shares of Oppenheimer Strategic Bond
Fund/VA; and (k) shares of Third Avenue Small Cap Value Portfolio for
shares of SVS Dreman Small Cap Value Portfolio.
44. The investment objectives, policies and restrictions of the
Replacement Funds are in each case substantially the same as or
sufficiently similar to the investment objectives, policies and
restrictions of the respective Existing Funds. Set forth below is a
description of the investment objectives and principal investment
policies of each Existing Fund and its corresponding Replacement Fund.
------------------------------------------------------------------------
Existing fund Replacement fund
------------------------------------------------------------------------
AIM V.I. Premier Equity Fund--seeks Lord Abbett Growth and Income
to achieve long-term growth of Portfolio--seeks long-term growth
capital. Income is a secondary of capital and income without
objective. The Fund normally excessive fluctuation in market
invests at least 80% of its net value. The Portfolio normally
assets in equity securities. The invests 80% of its net assets in
Fund may also invest in preferred equity securities of large (at
stocks and debt instruments that least $5 billion of market
have prospects for growth of capitalization), seasoned U.S. and
capital and may invest up to 25% multinational companies that are
of its total assets in foreign believed to be undervalued. The
securities. The portfolio managers Portfolio may also invest in
focus on undervalued equity foreign securities.
securities.
VIP Contrafund Portfolio--seeks
long-term capital appreciation.
The Portfolio invests primarily in
common stocks of large companies
believed to be undervalued. The
Portfolio may invest in both
domestic and foreign securities.
VP Income & Growth Fund--seeks to
achieve capital growth by
investing in common stocks. Income
is a secondary objective. The
portfolio managers select stocks
primarily from the largest 1,500
publicly traded U.S. companies.
Securities are ranked by their
value as well as growth potential.
The Fund seeks to provide better
returns than the S&P 500 without
taking on significant additional
risks. The portfolio managers
attempt to create a dividend yield
for the Fund that will be greater
than that of the S&P 500.
Goldman Sachs Growth and Income
Fund--seeks long-term growth of
capital and growth of income.
Normally, the Fund invests at
least 65% of its total assets in
equity securities that have
favorable prospects for capital
appreciation and/or dividend-
paying ability. Up to 25% of the
Fund's assets may be invested in
foreign securities including
securities of issuers in emerging
market countries. The Fund may
invest up to 35% of its total
assets in fixed income securities.
AllianceBernstein Real Estate Neuberger Berman Real Estate
Investment Portfolio \1\--seeks Portfolio \1\--seeks total return
total return from long-term growth through investment in real estate
of capital and from income. The securities, emphasizing both
Portfolio invests, normally, at capital appreciation and current
least 80% of its net assets in income. The Portfolio invests,
equity securities of real estate normally, at least 80% of its
investment trusts and other real assets in equity securities of
estate industry companies. The real estate investment trusts and
Portfolio seeks to invest in real other securities issued by real
estate companies whose underlying estate companies. The Portfolio
portfolios are diversified may invest up to 20% of its assets
geographically and by property in investment grade or non-
type. The Portfolio may invest up investment grade (minimum rating
to 20% of its net assets in of B) debt securities.
mortgage-backed securities.
[[Page 19514]]
AllianceBernstein Premier Growth Janus Aggressive Growth Portfolio
Portfolio \2\--seeks growth of \2\--seeks long-term growth of
capital by pursuing aggressive capital. The Portfolio invests
investment policies. The Portfolio primarily in common stocks
invests primarily in the selected for their growth
securities of a small number of potential. Investments may be made
U.S. companies. The Portfolio in companies of any size. The
looks for companies with superior Portfolio may invest without limit
growth prospects. The Portfolio in foreign securities and up to
may invest up to 20% of its assets 35% of its assets in high yield/
in foreign securities and up to high risk debt securities.
20% of its assets in convertible
securities which may be below
investment grade.
VP International Fund \3\--seeks MFS Research International
capital growth. The portfolio Portfolio3--seeks capital
managers look for companies with appreciation. Normally, at least
earnings and revenue growth. The 65% of the Portfolio's net assets
Fund's assets will be primarily are invested in common stocks and
invested in common stocks related securities of foreign
companies in at least three companies (including up to 25% of
developed countries (excluding the its net assets in emerging market
U.S.). issuers) located in at least five
countries. The Portfolio seeks
companies of any size with
favorable growth prospects and
attractive valuations.
Putnam VT International Equity
Fund--seeks equity capital
appreciation. The Fund invests
mainly in common stocks of
companies outside the U.S. Under
normal circumstances, at least 80%
of the Fund's net assets are
invested in equity securities. The
Fund invests mainly in mid- and
large-sized companies, although it
can invest in companies of any
size. The Fund emphasizes
investments in developed
countries, although it can also
invest in emerging market
countries.
Dreyfus Stock Index Portfolio-- MetLife Stock Index Portfolio--
seeks to match the total return of seeks to equal the performance of
the S&P 500 Index. The Fund the S&P 500 Index. The Portfolio
generally invests in all 500 purchases the common stocks of all
securities of the S&P 500 Index the companies in the S&P 500
proportion to their weighting in Index.
the S&P 500 Index.
MFS Investors Trust Series \4\-- Oppenheimer Capital Appreciation
seeks mainly to provide long-term Portfolio \4\--seeks capital
growth of capital and secondarily appreciation. The Portfolio mainly
reasonable current income. invests in common stocks of growth
Normally, the Series invests at companies of any market
least 65% of its net assets in capitalization. The Portfolio
common stocks and related equity currently focuses on the
securities. While the Series may securities of mid-cap and large-
invest in companies of any size, cap companies. The Portfolio may
the Series generally focuses on also purchase the securities of
companies with large market foreign issuers.
capitalizations believed to have
substantial growth prospects and
attractive valuations based on
current and expected earnings and
cash flow. The Series will also
seek to generate gross income
equal to approximately 90% of the
dividend yield of the S&P 500
Index. The Series may invest in
foreign equity securities.
Oppenheimer Capital Appreciation
Fund/VA--seeks capital
appreciation. The Fund invests
mainly in common stocks of growth
companies of any market
capitalization. The Fund currently
focuses on the securities of mid-
cap and large-cap domestic
companies, but buys foreign stocks
as well.
VIP High Income Portfolio--seeks a Lord Abbett Bond Debenture
high level of current income, Portfolio--seeks to provide high
while also considering growth of current income and the opportunity
capital. The Portfolio normally for capital appreciation to
invests primarily in income- produce a high total return. The
producing debt securities, Portfolio normally invests
preferred stocks and convertible substantially all of its net
securities, with an emphasis on assets in high yield and
lower-quality debt securities. The investment grade debt securities.
Portfolio may invest in domestic Up to 80% of the Portfolio' total
and foreign issuers. assets may be invested in junk
bonds. At least 20% of the
Portfolio's assets must be
invested in any combination of
investment grade debt securities,
U.S. government securities and
cash equivalents. Up to 20% of the
Portfolio's assets may be invested
in foreign securities.
MFS High Income Series--seeks high
current income by investing
primarily in a managed diversified
portfolio of fixed income
securities, some of which may
involve equity features. Normally,
the Series invests at least 80% of
its net assets in high income
fixed income securities (junk
bonds). The Series may also invest
in foreign securities (including
emerging market securities.)
MFS Emerging Growth Series--seeks T. Rowe Price Large Cap Growth
to provide long-term growth of Portfolio--seeks long-term growth
capital. Normally the Series of capital and, secondarily,
invests at least 65% of its net dividend income. Normally, the
assets in common stocks and Portfolio invests at least 80% of
related securities of emerging its assets in the common stocks
growth companies of any size and other securities of large
(currently invests primarily in capitalization growth companies
large-cap companies). The Series (i.e., those within the market
may invest in foreign securities capitalization range of the
including emerging market Russell 1000 Index). The
securities. investment adviser seeks companies
that have the ability to pay
increasing dividends through
strong cash flow.
MFS Research Series--seeks to
provide long-term growth of
capital and future income. The
Series invests at least 80% of its
net assets in common stocks and
related securities. The Series
focuses on large cap companies
believed to have favorable
prospects for long-term growth,
attractive valuations and superior
management. The Series may invest
in companies of any size, in debt
securities rated below investment
grade, and in foreign securities,
including emerging market
securities.
[[Page 19515]]
MFS New Discovery Series--seeks Met/AIM Small Cap Growth Portfolio--
capital appreciation. The Series seeks long-term growth of capital.
normally invests at least 65% of The Portfolio normally invests at
its net assets in equity least 80% of its net assets in
securities of emerging growth equity related securities of small-
companies. The Series generally cap companies. To be a small-cap
focuses on smaller capitalization company it will have a market
companies that have market capitalization at the time of
capitalizations within the range purchase, no larger than the
of companies in the Russell 2000 largest capitalized company
Index at the time of purchase. The included in the Russell 2000
Series may also invest in foreign Index. The Portfolio may invest up
securities. to 20% of its net assets in equity
securities of issuers whose
capitalizations are outside the
range of market capitalization of
company included in the Russell
2000 Index, in investment grade
non-convertible debt securities
and U.S.-government securities.
The Portfolio may invest up to 25%
of its total assets in foreign
securities.
Oppenheimer Strategic Bond Fund/VA-- PIMCO Total Return Portfolio--seeks
seeks a high level of current maximum total return, consistent
income principally derived from with the preservation of capital
interest on debt securities. The and prudent investment management.
Fund invests in debt securities of The Portfolio normally invests at
issuers in three market sectors: least 65% of its assets in a
foreign governments and companies diversified portfolio of fixed
(including emerging market income instruments of varying
issuers); U.S. government maturities. The Portfolio invests
securities; and lower-grade, high primarily in investment grade debt
yield securities of U.S. and obligations, U.S. government
foreign companies. The Fund may securities and commercial paper
invest in securities of any and other short-term obligations.
maturity and may invest without Up to 20% of the Portfolio's net
limit in junk bonds. assets may be invested in
securities denominated in foreign
currencies and the Portfolio may
invest beyond that limit in U.S.
dollar-denominated securities of
foreign issuers.
SVS Dreman Small Cap Value Third Avenue Small Cap Value
Portfolio \5\--seeks long-term Portfolio \5\--seeks long-term
capital appreciation. Normally, capital appreciation. Normally,
the Portfolio invests at least 80% the Portfolio, which is non-
of its net assets in undervalued diversified, invests at least 80%
stocks of small U.S. companies, of its net assets in equity
which the Portfolio defines as securities of small companies. The
companies that are similar in Portfolio considers a ``small
market value to those in the company'' to be one whose market
Russell 2000 Value Index. The capitalization is no greater than
Portfolio may also invest up to or less than the range of
20% of its net assets in capitalizations of companies in
securities of foreign companies in the Russell 2000 Index or the S&P
the form of dollar-denominated Small Cap 600 Index at the time of
American Depositary Receipts. the investment. The Portfolio
seeks to acquire common stocks of
well-financed companies at a
substantial discount to what the
investment adviser believes is
their true value.
------------------------------------------------------------------------
\1\ As of December 31, 2004, neither AllianceBernstein Real Estate
Investment Portfolio nor Neuberger Berman Real Estate Portfolio had
any investments in mortgage-backed securities or debt securities
including in non-investment grade debt securities. Each Portfolio had
over 92% of its assets invested in real estate investment trusts, with
the balance in cash or common stock equities.
\2\ With respect to AllianceBernstein Premier Growth Portfolio and Janus
Aggressive Growth Portfolio, although there is no restriction on Janus
Aggressive Growth Portfolio's investment in foreign securities,
normally the Portfolio does not invest more than approximately 20% of
its assets in foreign securities. With respect to investments in high
yield/high risk debt securities, neither Portfolio currently invests
more than a minimal amount in such securities.
\3\ As of December 31, 2004 MFS Research International Portfolio and VP
International Fund had 2.8% and 0%, respectively, of their assets
invested in emerging market issuers.
\4\ With respect to MFS Investors Trust Series and Oppenheimer Capital
Appreciation Portfolio, the S&P 500 Index is the benchmark for both
Portfolios. Although income is not a stated objective of Oppenheimer
Capital Appreciation Portfolio, approximately 72% of the Portfolio's
assets are invested in dividend paying securities. Moreover, at
December 31, 2003, 14 of the top 25 securities held by Oppenheimer
Capital Appreciation Portfolio are held by MFS Investors Trust Series.
Oppenheimer Capital Appreciation Portfolio's current yield as of
December 31, 2003 was 1.1%. MFS Investors Trust Series' current yield
as of December 31, 2003 was 1.6%.
\5\ Although Third Avenue Small Cap Value Portfolio is classified as a
non-diversified fund, its investments are similar to a diversified
fund. As of December 31, 2004, Third Avenue Small Cap Portfolio's top
ten holdings amounted to 21.32% of its portfolio with no holding in
excess of 2.63%. SVS Dream Small Cap Value Portfolio's top ten
holdings at December 31, 2004 amounted to 18.4% of its portfolio with
no holding in excess of 3.1%. It is anticipated that the Third Avenue
Small Cap Value Portfolio will continue to be managed as a diversified
fund.
45. The following tables compare the total operating expenses of
the Existing Fund and the Replacement Fund for each proposed
substitution. The comparative expenses are based on actual expenses,
including waivers, for the year ended December 31, 2003. In some cases,
the expense caps for certain Replacement Funds were decreased effective
May 1, 2004, and the management fee was reduced effective January 1,
2005. In such cases the expenses of each Fund as of December 31, 2003,
have been restated to reflect the expense cap in effect as of May 1,
2004, or revised management fee, as the case may be. Where a Fund has
multiple classes of shares involved in the proposed substitution, the
expenses of each class are presented.
------------------------------------------------------------------------
Lord Abbett
AIM V.I. Growth and
Premier Equity Income
Fund (Class 1) Portfolio
(percent) (Class A)
(percent)
------------------------------------------------------------------------
Management Fee.......................... 0.61 0.56
12b-1 Fee............................... .............. ..............
Other Expenses.......................... 0.24 0.06
Total Expenses.......................... 0.85 0.62
Waivers................................. .............. ..............
Net Expenses............................ 0.85 0.62
------------------------------------------------------------------------
[[Page 19516]]
------------------------------------------------------------------------
Janus
AllianceBernstein Aggressive
Premier Growth Growth
Portfolio (Class Portfolio
A) (percent) (Class A) *
(percent)
------------------------------------------------------------------------
Management Fee....................... 1.00 0.70
12b-1 Fee............................ ................. ..............
Other Expenses....................... 0.05 0.12
Total Expenses....................... 1.05 0.82
Waivers.............................. ................. ..............
Net Expenses......................... 1.05 0.82
------------------------------------------------------------------------
* Restated to reflect lowered management fee.
----------------------------------------------------------------------------------------------------------------
AllianceBernstein Real Estate Neuberger Berman Real Estate
Investment Portfolio Portfolio
---------------------------------------------------------------
Class A Class B Class A Class B
(percent) (percent) (percent) (percent)
----------------------------------------------------------------------------------------------------------------
Management Fee.................................. 0.90 0.90 0.70 0.70
12b-1 Fee....................................... .............. 0.25 .............. 0.25
Other Expenses.................................. 0.34 0.34 0.41 0.41
Total Expenses.................................. 1.24 1.49 1.11 1.36
Waivers......................................... 0.25 0.35 0.21 0.21
Net Expenses.................................... 0.89 1.14 0.90 1.15
----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
Lord Abbett
VP Income & Growth and
Growth Fund Income
(Class 1) Portfolio
(percent) (Class A)
(percent)
------------------------------------------------------------------------
Management Fee.......................... 0.70 0.56
12b-1 Fee............................... .............. ..............
Other Expenses.......................... .............. 0.06
Total Expenses.......................... 0.70 0.62
Waivers................................. .............. ..............
Net Expenses............................ 0.70 0.62
------------------------------------------------------------------------
------------------------------------------------------------------------
MFS Research
VP International
International Portfolio
Fund (Class 1) (Class A)
(percent) (percent)
------------------------------------------------------------------------
Management Fee.......................... 1.33 0.80
12b-1 Fee............................... .............. ..............
Other Expenses.......................... 0.01 0.31
Total Expenses.......................... 1.34 1.11
Waivers................................. .............. 0.02
Net Expenses............................ 1.34 1.09
------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Dreyfus Stock Index Fund MetLife Stock Index Fund
---------------------------------------------------------------
Initial Service Class A Class B
(percent) (percent) (percent) (percent)
----------------------------------------------------------------------------------------------------------------
Management Fee.................................. 0.25 0.25 0.25 0.25
12b-1 fee....................................... .............. 0.25 .............. 0.25
Other Expenses.................................. 0.02 0.02 0.06 0.06
Total Expenses.................................. 0.27 0.52 0.31 0.56
Waivers......................................... .............. .............. .............. ..............
Net Expenses.................................... 0.27 0.52 0.31 0.56
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
VIP High Income Portfolio Lord Abbett Bond Debenture
-------------------------------- Portfolio *
-------------------------------
Initial Service 2 Class A Class B
(percent) (percent) (percent) (percent)
----------------------------------------------------------------------------------------------------------------
Management Fee.................................. 0.58 0.58 0.53 0.53
12b-1 Fee....................................... .............. 0.25 .............. 0.25
Other Expenses.................................. 0.11 0.12 0.07 0.06
Total Expenses.................................. 0.69 0.95 0.60 0.84
[[Page 19517]]
Waivers......................................... .............. .............. .............. ..............
Net Expenses.................................... 0.69 0.95 0.60 0.84
----------------------------------------------------------------------------------------------------------------
* Restated to reflect lowered management fee.
------------------------------------------------------------------------
VIP Contrafund Lord Abbett
Portfolio Growth and
(Initial) Income (Class
(percent) A) (percent)
------------------------------------------------------------------------
Management Fee.......................... 0.58 0.56
12b-1 Fee............................... .............. ..............
Other Expenses.......................... 0.09 0.06
Total Expenses.......................... 0.67 0.62
Waivers................................. .............. ..............
Net Expenses............................ 0.67 0.62
------------------------------------------------------------------------
------------------------------------------------------------------------
Goldman Sachs Lord Abbett
Growth and Growth and
Income Fund Income (Class
(percent) A) (percent)
------------------------------------------------------------------------
Management Fee.......................... 0.75 0.56
12b-1 Fee............................... .............. ..............
Other Expenses.......................... 0.45 0.06
Total Expenses.......................... 1.20 0.62
Waivers................................. 0.30 ..............
Net Expenses............................ 0.90 0.62
------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
MFS High Income Series Lord Abbett Bond Debenture Portfolio *
---------------------------------------------------------------------------------------------------
Initial (percent) Service (percent) Class A (percent) Class B (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Management Fee...................................... 0.75 0.75 0.53 0.53
12b-1 Fee........................................... ....................... 0.25 ....................... 0.25
Other Expenses...................................... 0.15 0.15 0.07 0.06
Total Expenses...................................... 0.90 1.15 0.60 0.84
Waivers............................................. ....................... ....................... ....................... .......................
Net Expenses........................................ 0.90 1.15 0.60 0.84
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Restated to reflect lowered management fee.
------------------------------------------------------------------------
T. Rowe Price
MFS Emerging Large Cap
Growth Series Growth
(Initial) Portfolio
(percent) (Class A)
(percent)
------------------------------------------------------------------------
Management Fee.......................... 0.75 0.63
12b-1 Fee............................... .............. ..............
Other Expenses.......................... 0.12 0.16
Total Expenses.......................... 0.87 0.79
Waivers................................. .............. ..............
Net Expenses............................ 0.87 0.79
------------------------------------------------------------------------
------------------------------------------------------------------------
T. Rowe Price
MFS Research Large Cap
Series Growth
(Initial) Portfolio
(Percent) (Class A)
(Percent)
------------------------------------------------------------------------
Management Fee.......................... 0.75 0.63
12b-1 Fee............................... .............. ..............
Other Expenses.......................... 0.12 0.16
Total Expenses.......................... 0.87 0.79
Waivers................................. .............. ..............
Net Expenses............................ 0.87 0.79
------------------------------------------------------------------------
[[Page 19518]]
----------------------------------------------------------------------------------------------------------------
MFS New Discovery Series Met/AIM Small Cap Growth
-------------------------------- Portfolio
-------------------------------
Initial Service Class A Class B
(Percent) (Percent) (Percent) (Percent)
----------------------------------------------------------------------------------------------------------------
Management Fee.................................. 0.90 0.90 0.90 0.90
12b-1 Fee....................................... .............. 0.25 .............. 0.25
Other Expenses.................................. 0.14 0.14 0.26 0.21
Total Expenses.................................. 1.04 1.29 1.16 1.36
Waivers......................................... .............. .............. 0.12 0.06
Net Expenses.................................... 1.04 1.29 1.04 1.30
----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------
Oppenheimer
MFS Investors Capital
Trust Series Appreciation
(Initial) Portfolio
(Percent) (Class A)
(Percent)
------------------------------------------------------------------------
Management Fee.......................... 0.75 0.63
12b-1 Fee............................... .............. ..............
Other Expenses.......................... 0.12 0.12
Total Expenses.......................... 0.87 0.75
Waivers................................. .............. 0.03
Net Expenses............................ 0.87 0.72
------------------------------------------------------------------------
------------------------------------------------------------------------
PIMCO Total
Oppenheimer Return
Strategic Bond Portfolio
Fund/VA (Class (Class A)
A) (percent) (percent)
------------------------------------------------------------------------
Management Fee.......................... 0.72 0.50
12b-1 Fee............................... .............. ..............
Other Expenses.......................... 0.05 0.09
Total Expenses.......................... 0.77 0.57
Waivers................................. 0.02 ..............
Net Expenses............................ 0.75 0.59
------------------------------------------------------------------------
------------------------------------------------------------------------
Oppenheimer
Oppenheimer Capital
Capital Appreciation
Appreciation Portfolio
Fund/VA (Class (Class A)
A) (Percent) (Percent)
------------------------------------------------------------------------
Management Fee.......................... 0.65 0.63
12b-1 Fee............................... .............. ..............
Other Expenses.......................... 0.02 0.12
Total Expenses.......................... 0.67 0.75
Waivers................................. .............. 0.03
Net Expenses............................ 0.67 0.72
------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Putnam VT International Equity MFS Research International
Fund Portfolio
---------------------------------------------------------------
Class A Class B Class A Class B
(Percent) (Percent) (Percent) (Percent)
----------------------------------------------------------------------------------------------------------------
Management Fee.................................. 0.80 0.80 0.80 0.80
12b-1 Fee....................................... .............. 0.25% .............. 0.25
Other Expenses.................................. 0.22 0.22 0.31 0.34
Total Expenses.................................. 1.02 1.27 1.11 1.39
Waivers......................................... .............. .............. 0.02 0.06
Net Expenses.................................... 1.02 1.27 1.09 1.33
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
SVS Dreman Small Cap Value Third Avenue Small Cap Value
Portfolio Portfolio
---------------------------------------------------------------
Class A Class B Class A Class B
(Percent) (Percent) (Percent) (Percent)
----------------------------------------------------------------------------------------------------------------
Management Fee.................................. 0.75 0.75 0.75 0.75
12b-1 Fee....................................... .............. 0.25 .............. 0.25
Other Expenses.................................. 0.05 0.19 0.18 0.18
Total Expenses.................................. 0.80 1.19 0.93 1.18
[[Page 19519]]
Waivers......................................... .............. .............. .............. ..............
Net Expenses.................................... 0.80 1.19 0.93 1.18
----------------------------------------------------------------------------------------------------------------
46. Met Advisers, LLC or Met Investors Advisory, LLC is the adviser
of each of the Replacement Funds. Each Replacement Fund currently
offers up to three classes of shares, two of which, Class A and Class
B, are involved in the substitutions. No Rule 12b-1 Plan has been
adopted for any Replacement Fund's Class A shares. Each Replacement
Fund's Class B shares has adopted a Rule 12b-1 distribution plan
whereby up to 0.50% of a Fund's assets attributable to its Class B
shares may be used to finance the distribution of the Fund's shares.
Currently, payments under the plan are limited to 0.25% for Class B
shares.
47. Met Investors Advisory, LLC has entered into agreement with
MIST whereby, for the period ended April 30, 2006, and any subsequent
year in which the agreement is in effect, the total annual operating
expenses of the following Replacement Funds (excluding interest, taxes,
brokerage commissions and Rule 12b-1 fees) will not exceed the amounts
stated. These expense caps may be extended by the investment adviser
from year to year as follows:
------------------------------------------------------------------------
Percent
------------------------------------------------------------------------
Met/AIM Small Cap Growth Portfolio........................... 1.05
Third Avenue Small Cap Value Portfolio....................... 0.95
MFS Research International Portfolio......................... 1.00
Oppenheimer Capital Appreciation Portfolio................... 0.75
Janus Aggressive Growth Portfolio............................ 0.90
Neuberger Berman Real Estate Portfolio....................... 0.90
------------------------------------------------------------------------
48. The annuity contracts are individual flexible premium fixed and
variable deferred and immediate annuity contracts. Many of the annuity
contracts provide that a maximum of 12 transfers can be made every year
without charge or that a $10 contractual limit charge will apply or
that no transfer charge will apply. During t
