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.
+/- Category: The amount by which a fund over- or underperformed its category during a given calendar year.
+/- Index: The amount by which a fund over- or underperformed its primary index during a given calendar year.
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.
% Net Assets : Morningstar calculates the percentage of net assets figure by dividing the market value of the security by the fund's total net assets. If a few securities take up a large percentage of the fund's net assets, the fund uses a concentrated portfolio strategy. If the percentage figures are low, then the manager is not willing to bet heavily on any particular security.
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
% Cash: The percentage of the fund’s net assets held in cash. Cash encompasses both actual cash and cash equivalents (fixed-income securities with a maturity of one year or less) held by the portfolio plus receivables minus payables.
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.
% Stocks: The percentage listed under the heading Stocks incorporates only the portfolio’s straight common stock holdings.
% Bonds: This data point identifies the percentage of the fund’s net assets held in bonds. Bonds include everything from government notes to high-yield corporate bonds.
% Other: Other includes preferred stocks (equity securities that pay dividends at a specific rate) as well as convertible bonds and convertible preferreds, which are corporate securities that are exchangeable for a set amount of another form of security (usually common shares) at a prestated price. Other also may denote holdings in not-so-neatly-categorized securities, such as warrants and options.
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
Basic Materials: Companies that manufacture chemicals, building materials and paper products. This sector also includes companies engaged in commodities exploration and processing. Companies in this sector include ArcelorMittal, BHP Billiton and Rio Tinto.
Consumer Cyclical: This sector includes retail stores, auto and auto parts manufacturers, companies engaged in residential construction, lodging facilities, restaurants and entertainment companies. Companies in this sector include Ford Motor Company, McDonald’s and News Corporation.
Financial Services: Companies that provide financial services which includes banks, savings and loans, asset management companies, credit services, investment brokerage firms, and insurance companies. Companies in this sector include Allianz, J.P. Morgan Chase and Legg Mason.
Real Estate: This sector includes mortgage companies, property management companies and REITs. Companies in this sector include Kimco Realty Corporation, Vornado Realty Trust and Westfield Group.
Sensitive
Communication Services: Companies that provide communication services using fixed-line networks or those that provide wireless access and services. This sector also includes companies that provide internet services such as access, navigation and internet related software and services. Companies in this sector include AT&T, France Telecom and Verizon Communications.
Energy: Companies that produce or refine oil and gas, oil field services and equipment companies, and pipeline operators. This sector also includes companies engaged in the mining of coal. Companies in this sector include BP, ExxonMobil and Royal Dutch Shell.
Industrials: Companies that manufacture machinery, hand-held tools and industrial products. This sector also includes aerospace and defense firms as well as companies engaged in transportations and logistic services. Companies in this sector include 3M, Boeing and Siemens.
Technology: Companies engaged in the design, development, and support of computer operating systems and applications. This sector also includes companies that provide computer technology consulting services. Also includes companies engaged in the manufacturing of computer equipment, data storage products, networking products, semi¬conductors, and components. Companies in this sector include Apple, Google and Microsoft.
Defensive
Consumer Defensive: Companies engaged in the manufacturing of food, beverages, household and personal products, packaging, or tobacco. Also includes companies that provide services such as education & training services. Companies in this sector include Philip Morris International, Procter & Gamble and Wal-Mart Stores.
Healthcare: This sector includes biotechnology, pharmaceuticals, research services, home healthcare, hospitals, long-term care facilities, and medical equipment and supplies. Companies in this sector include Astra Zeneca, Pfizer and Roche Holding.
Utilities: Electric, gas, and water utilities. Companies in this sector include Electricité de France, Exelon and PG&E Corporation.
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.