VA/L Subaccounts: Data Definitions: Snapshot

 Performance

Growth of $10,000 Graph

The Growth of $10,000 graph shows a subaccount's performance based on how $10,000 invested in the subaccount would have grown over time. The returns used in the graph are not load-adjusted. The growth of $10,000 begins at the date of the subaccount's inception, or the first year listed on the graph, whichever is appropriate. Located alongside the subaccount's graph line is a line that represents the growth of $10,000 in either the S&P 500 index (for stock subaccounts and hybrid subaccounts) or the Barclays Aggregate index (for bond subaccounts). The third line represents the subaccount's Morningstar category.

Annual Returns

Total returns calculated on a calendar-year basis. Total return includes both income (in the form of dividends or interest payments) and capital gains or losses (the increase or decrease in the value of a security). Morningstar calculates total return by taking the change in a subaccount's AUV, assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the subaccount) during the period, and then dividing by the initial AUV.

Unless marked as load-adjusted total returns, Morningstar does not adjust total return for sales charges or for redemption fees. Total returns do account for management, administrative, and 12b-1 fees and other costs automatically deducted from subaccount assets.

 Fund Details

Fund Expense %

The percentage of assets deducted each year for underlying fund operating expenses, management fees, and all other asset-based costs incurred by the fund, excluding brokerage fees. Like insurance expenses, fund expenses are reflected in the subaccount's AUV.

Insurance Expense %

The percentage of subaccount assets deducted each year to cover M & E risk charges, and other miscellaneous administration fees.

M&E Risk %

This is the mortality and expense (M & E) risk charge, which is the percentage of the subaccount's assets that the insurance company deducts to cover costs associated with mortality and expense risk. Specifically, it can serve as a source of profit for the insurance company in addition to compensating the company for offering features such as the variable-annuity death benefit and for compensation. The typical M & E charge for variable annuities runs at about 1.25%. Mortality and expense risk charges tend to be much lower for variable-life because they also deduct the cost of insurance from premiums. The typical variable-life M & E risk charge is 0.90%.

Total Expenses

This figure combines the subaccount's fund expense ratio and insurance expense.

Manager Name

The name of the individual or individuals who are employed by the advisor or subadvisor who are directly responsible for managing the fund's portfolio, as taken directly from the fund's prospectus. Other terms that may appear in this column include the following:

Manager Tenure

The number of years the current manager has been managing the subaccount.

 

 Quick Stats

AUV

The most recent month's ending accumulated unit value (AUV), which is the actual dollar value per share to the investor minus fees and expenses.

YTD Return %

The Year-to-date total return of the subaccount, updated daily.

Morningstar Rating

Morningstar rates subaccounts from one to five stars based on how well they've performed (after adjusting for risk and accounting for sales charges) in comparison to similar subaccounts. Within each Morningstar Category, the top 10% of subaccounts receive five stars and the bottom 10% receive one star. Subaccounts are rated for up to three time periods—three-, five-, and 10 years—and these ratings are combined to produce an overall rating. Subaccounts with less than three years of history are not rated. Ratings are objective, based entirely on a mathematical evaluation of past performance. They're a useful tool for identifying subaccounts worthy of further research, but shouldn't be considered buy or sell recommendations.

Morningstar Category

In an effort to distinguish subaccounts by what they own, as well as by their investment objectives and styles, Morningstar developed the Morningstar Categories. While a prospectus objective identifies a subaccount's investment goals based on the wording in the prospectus, the Morningstar Category identifies subaccounts based on their actual investment styles, as measured by the underlying fund's portfolio holdings (portfolio statistics and compositions over the past three years). If the subaccount is new, and we don't have its portfolio yet, we estimate where it will fall before assigning it a more permanent category. When necessary, we may change a category assignment based on current information.

Subaccount Net Assets

This figure is recorded in millions of dollars and represents the subaccount's total asset base, net of fees and expenses.

 

 Portfolio

Top 5 Holdings

These are the top 5 holdings in the fund's portfolio ranked by the % of net assets.

Current Investment Style (Morningstar Style Box)

The Morningstar Style Box is a nine-square grid that provides a graphical representation of the investment style of stocks and funds. For stocks and stock funds, it classifies securities according to market capitalization (the vertical axis) and growth and value factors (the horizontal axis). Fixed-income funds are classified according to credit quality (the vertical axis) and sensitivity to changes in interest rates (the horizontal axis).

Asset Allocation

Note: Negative percentages of cash indicate that the portfolio is leveraged, meaning it has borrowed against its own assets to buy more securities or that it has used other techniques to gain more than 100% exposure to the market.

Top 3 Stock Sectors % (stock funds only)

The top sectors in which the fund has placed its stock assets. Morningstar divides the economy into three super sectors and 11 sub-sectors. Read the global equity classification methodology.  

Cyclical

Sensitive

Defensive

Top 3 Credit Weightings  (bond funds only)

The credit analysis depicts the quality of bonds in the fund's portfolio. The analysis reveals the percentage of fixed-income securities that fall within each credit-quality rating as assigned by Standard & Poor's or Moody's.

At the top of the ratings are AAA bonds. U.S. government bonds are also included within the AAA category (effective 6/30/06). Bonds with a B rating are the lowest bonds that are still considered to be of investment grade. Bonds that are rated lower than B (often called junk bonds or high-yield bonds) are considered to be quite speculative. Any bonds that appear in the NR/NA category are either not rated by Standard & Poor's or Moody's, or do not currently have a rating available.