N-CSRS 1 d555577dncsrs.htm MET INVESTORS SERIES TRUST FORM N-CSRS Met Investors Series Trust Form N-CSRS

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-10183

 

 

MET INVESTORS SERIES TRUST

(Exact name of registrant as specified in charter)

 

 

501 Boylston Street

Boston, MA 02116

(Address of principal executive offices)(Zip code)

 

 

 

(Name and Address of Agent for Service)    Copy to:

Michael P. Lawlor

MetLife Advisers, LLC

501 Boylston Street

Boston, MA 02116

   

David C. Mahaffey, Esq.

Sullivan & Worcester LLP

1666 K Street, N.W.

Washington, D.C. 20006

 

 

Registrant’s telephone number, including area code: (800) 638-7732

Date of fiscal year end: December 31

Date of reporting period: June 30, 2013

 

 

 

Item 1: Report to Shareholders.

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Managed by AllianceBernstein L.P.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the AllianceBernstein Global Dynamic Allocation Portfolio returned 2.34%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

World equity markets gained during the first half of 2013, while fixed income capital markets moved into negative territory. The first quarter was marked by investor enthusiasm, especially in the U.S. and Japan, however, gains were tempered towards the end of the first half as concerns about tighter U.S. monetary policy weighed on risk sentiment.

In Europe, the European Central Bank announced a cut in its refinancing rate and stated that it would continue to provide unlimited liquidity to euro-area banks. However, recent mixed economic data emanating from the region and its long running recession suggest that the continent’s growth is likely to remain challenged.

In contrast, the U.S. Federal Reserve (“Fed”) announced that the central bank intended to wind down its massive bond-buying program later this year and end it entirely by mid-2014, provided that the American economy continued to improve. This sparked a worldwide sell-off in equity, bond and currency markets on fears of rising global interest rates, although markets recouped some losses after the Fed gave assurances that monetary support would not be ending soon.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio is designed to provide long term growth by participating in up markets and by mitigating the downside. It aims to deliver more consistent returns through broad diversification and reduce volatility by making flexible adjustments to asset allocation. In this way, the Portfolio should capture potential return opportunities and manage risk. In the six months ending June 30, 2013, the Portfolio had solid absolute returns but lagged the benchmark after fees.

At the beginning of 2013, the Portfolio had an overweight in risk assets with global equity, Global Real Estate Investment Trusts (REITs) and commodity holdings all in excess of benchmark weights. The Portfolio was underweight bonds and held no cash. This position was consistent with our view at the time that easy money policies of central banks would continue to provide liquidity to markets creating conditions with low interest rates and where equity volatility was also likely to remain low. At the same time, equity valuations were relatively attractive.

As the year advanced, the Portfolio gradually reduced the overweight to equities in response to rapid price appreciation and rising risks. The Portfolio also diminished its level of diversification: Prospects for a slowdown in bond purchases by the Fed left income-oriented assets vulnerable. Additionally, holdings of emerging market equities were eliminated and the commodities exposure was reduced given concerns about the growth outlook following credit tightening and other policy shifts in China.

During the first half of the year, the Portfolio employed two strategies that allowed for an overweight to equities—even at a time of increasing uncertainty—which was a benefit to performance. First, a small amount of equity put options, which rise in value as equity prices fall were held and, therefore, provided some insurance against a spike in risk aversion. As the equity weight was slowly reduced during the first half of 2013, the Portfolio commensurately trimmed the option position and no longer hold them. Second, a portion of the foreign currency exposure that comes from owning non-U.S. stocks was hedged.

Over the first half of the year, there was a marked dispersion in returns to different asset classes. Global stocks were up but emerging stocks fell. Global REITs had positive returns but underperformed stocks and commodities fell. Global bonds lost value over the period. Relative to the benchmark over the period, the equity overweight in the Portfolio was additive to performance but within stocks the emerging market holdings detracted. REITs were a small contributor, commodities detracted. The underweight to bonds was additive but the decision not to hold cash in lieu of bonds hurt performance—particularly in the second quarter. In addition, the Portfolio holds a 10-year interest rate swap which detracted as yields rose.

The Portfolio ended the period with overall positioning close to benchmark weights. Interest rates remain low despite recent increases in yields, equity market volatility has picked up but is close to long term averages and in our opinion, valuations are unreasonable. The Portfolio has a slight overweight to risk assets—concentrated in global equities with no significant tilts across geographies. The Portfolio holds no Emerging Market equities. Within the risk asset

 

MIST-1

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Managed by AllianceBernstein L.P.

Portfolio Manager Commentary*—(Continued)

 

allocation, very modest exposures to Global REITs and Commodities are maintained for diversification. Cash holdings are negligible and as a consequence bonds are overweight relative to the benchmark.

Dan Loewy

Seth Masters

Portfolio Manager

AllianceBernstein L.P.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
AllianceBernstein Global Dynamic Allocation Portfolio                 

Class B

        2.34           8.41           4.82   
Dow Jones Moderate Index        4.17           10.56           4.33   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 5/2/2011. Index returns are based on an inception date of 5/2/2011.

 

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
U.S. Treasury Notes      18.1   
U.S. Treasury Bonds      3.1   
Federal National Mortgage Association      1.7   
Federal Home Loan Mortgage Corp.      1.6   
Japan Government Twenty Year Bond      0.8   
Japan Government Ten Year Bond      0.7   
Exxon Mobil Corp.      0.5   
Italy Buoni Poliennali Del Tesoro      0.5   
Apple, Inc.      0.4   
Nestle S.A.      0.4   

Top Equity Sectors

 

     % of
Market Value of
Total Investments		  
Financials      11.0   
Consumer Discretionary      4.7   
Industrials      4.6   
Health Care      4.5   
Consumer Staples      4.4   

 

Top Fixed Income Sectors

 

     % of
Market Value of
Total Investments		  
Cash & Cash Equivalents      29.4   
U.S. Treasury & Government Agencies      24.5   
Foreign Government      4.2   

 

MIST-3

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

AllianceBernstein Global Dynamic Allocation Portfolio

         Annualized
Expense
Ratio		     Beginning
Account Value
January 1,
2013		      Ending
Account Value
June 30,
2013		      Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)

    Actual      0.88 %    $ 1,000.00       $ 1,023.40       $ 4.41   
   Hypothetical*      0.88 %    $ 1,000.00       $ 1,020.43       $ 4.41   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 7 of the Consolidated Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—42.5% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.7%

    

BAE Systems plc

     304,648      $ 1,780,597   

Boeing Co. (The)

     36,295        3,718,060   

Cobham plc

     101,121        404,187   

European Aeronautic Defence and Space Co. NV

     54,687        2,907,986   

Finmeccanica S.p.A. (a)

     37,938        188,983   

General Dynamics Corp.

     17,800        1,394,274   

Honeywell International, Inc.

     41,820        3,317,999   

L-3 Communications Holdings, Inc.

     5,205        446,277   

Lockheed Martin Corp.

     14,505        1,573,212   

Meggitt plc

     73,353        574,830   

Northrop Grumman Corp.

     13,305        1,101,654   

Precision Castparts Corp.

     7,825        1,768,528   

Raytheon Co.

     17,795        1,176,605   

Rockwell Collins, Inc. (b)

     7,635        484,135   

Rolls-Royce Holdings plc (a)

     176,737        3,057,971   

Safran S.A. (b)

     23,520        1,224,994   

Singapore Technologies Engineering, Ltd.

     144,900        476,649   

Textron, Inc.

     15,050        392,052   

Thales S.A.

     8,559        398,766   

United Technologies Corp.

     45,045        4,186,482   

Zodiac Aerospace (b)

     3,208        423,419   
   

 

 

  
      30,997,660   
   

 

 

  

Air Freight & Logistics—0.2%

    

C.H. Robinson Worldwide, Inc.

     8,640        486,518   

Deutsche Post AG

     85,234        2,118,137   

Expeditors International of Washington, Inc.

     11,265        428,183   

FedEx Corp.

     15,670        1,544,749   

TNT Express NV

     33,369        249,347   

Toll Holdings, Ltd.

     63,808        308,873   

United Parcel Service, Inc. - Class B

     38,580        3,336,398   

Yamato Holdings Co., Ltd.

     34,693        731,497   
   

 

 

  
      9,203,702   
   

 

 

  

Airlines—0.1%

    

All Nippon Airways Co., Ltd. (b)

     108,656        225,697   

Cathay Pacific Airways, Ltd.

     110,200        192,398   

Deutsche Lufthansa AG (a)

     21,632        437,977   

easyJet plc (b)

     14,904        295,182   

International Consolidated Airlines Group S.A. - Class DI (a)

     86,944        347,384   

Japan Airlines Co., Ltd.

     5,630        289,523   

Qantas Airways, Ltd. (a)

     100,738        123,406   

Ryanair Holdings plc (ADR)

     2,230        114,912   

Singapore Airlines, Ltd.

     50,200        396,044   

Southwest Airlines Co.

     39,825        513,344   
   

 

 

  
      2,935,867   
   

 

 

  

Auto Components—0.3%

    

Aisin Seiki Co., Ltd.

     18,007        689,124   

BorgWarner, Inc. (a)

     6,170        531,545   

Bridgestone Corp. (b)

     61,194        2,085,808   

Auto Components—(Continued)

    

Cie Generale des Etablissements Michelin (b)

     17,160      $ 1,526,677   

Continental AG

     10,341        1,377,870   

Delphi Automotive plc

     15,241        772,566   

Denso Corp.

     45,757        2,146,037   

GKN plc

     152,716        702,910   

Goodyear Tire & Rubber Co. (The) (a)

     13,030        199,229   

Johnson Controls, Inc.

     36,615        1,310,451   

Koito Manufacturing Co., Ltd.

     8,781        167,798   

NGK Spark Plug Co., Ltd.

     17,000        340,455   

NHK Spring Co., Ltd. (b)

     15,100        175,112   

NOK Corp.

     8,947        142,676   

Nokian Renkaat Oyj

     10,573        429,716   

Pirelli & C S.p.A. (b)

     22,232        256,261   

Stanley Electric Co., Ltd.

     13,444        261,921   

Sumitomo Rubber Industries, Ltd. (b)

     16,101        263,357   

Toyoda Gosei Co., Ltd.

     6,145        150,640   

Toyota Boshoku Corp. (b)

     6,200        89,406   

Toyota Industries Corp.

     15,324        627,388   

Yokohama Rubber Co., Ltd. (The) (b)

     19,000        191,021   
   

 

 

  
      14,437,968   
   

 

 

  

Automobiles—1.0%

    

Bayerische Motoren Werke (BMW) AG

     31,123        2,719,060   

Daihatsu Motor Co., Ltd. (b)

     18,533        351,337   

Daimler AG

     90,321        5,459,177   

Fiat S.p.A. (a)

     82,036        568,558   

Ford Motor Co.

     204,535        3,164,156   

Fuji Heavy Industries, Ltd.

     55,012        1,356,475   

General Motors Co. (a)

     41,860        1,394,357   

Harley-Davidson, Inc.

     12,225        670,174   

Honda Motor Co., Ltd.

     153,296        5,696,551   

Isuzu Motors, Ltd.

     111,553        763,858   

Mazda Motor Corp. (a)

     253,592        999,967   

Mitsubishi Motors Corp. (a) (b)

     394,934        541,642   

Nissan Motor Co., Ltd.

     233,649        2,368,001   

Renault S.A.

     18,069        1,207,059   

Suzuki Motor Corp.

     34,294        790,898   

Toyota Motor Corp.

     259,310        15,657,472   

Volkswagen AG

     2,774        540,500   

Yamaha Motor Co., Ltd. (b)

     26,266        340,374   
   

 

 

  
      44,589,616   
   

 

 

  

Beverages—1.0%

    

Anheuser-Busch InBev NV

     75,518        6,699,593   

Asahi Group Holdings, Ltd. (b)

     36,363        904,181   

Beam, Inc.

     8,535        538,644   

Brown-Forman Corp. - Class B

     8,157        551,005   

Carlsberg A/S - Class B

     10,056        897,561   

Coca-Cola Amatil, Ltd.

     53,504        619,573   

Coca-Cola Co. (The) (c)

     207,570        8,325,633   

Coca-Cola Enterprises, Inc.

     14,780        519,665   

Coca-Cola HBC AG (a)

     18,866        441,604   

Coca-Cola West Co., Ltd. (b)

     5,800        103,150   

Constellation Brands, Inc. - Class A (a)

     7,845        408,881   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-5

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Beverages—(Continued)

    

Diageo plc

     235,882      $ 6,765,859   

Dr. Pepper Snapple Group, Inc.

     11,220        515,335   

Heineken Holding NV

     9,519        533,213   

Heineken NV

     21,676        1,377,996   

Kirin Holdings Co., Ltd. (b)

     82,148        1,290,181   

Molson Coors Brewing Co. - Class B

     8,335        398,913   

Monster Beverage Corp. (a)

     8,250        501,353   

PepsiCo, Inc.

     83,455        6,825,784   

Pernod-Ricard S.A. (b)

     19,951        2,211,332   

Remy Cointreau S.A.

     2,393        253,812   

SABMiller plc

     90,073        4,334,198   

Treasury Wine Estates, Ltd.

     60,661        322,021   
   

 

 

  
      45,339,487   
   

 

 

  

Biotechnology—0.5%

    

Actelion, Ltd. (a)

     10,133        610,090   

Alexion Pharmaceuticals, Inc. (a)

     10,400        959,296   

Amgen, Inc.

     41,313        4,075,941   

Biogen Idec, Inc. (a)

     12,680        2,728,736   

Celgene Corp. (a)

     23,150        2,706,467   

CSL, Ltd.

     46,830        2,637,361   

Elan Corp. plc (a)

     45,538        637,121   

Gilead Sciences, Inc. (a)

     81,150        4,155,691   

Grifols S.A.

     14,090        517,022   

Novozymes A/S - B Shares

     21,673        693,273   

Regeneron Pharmaceuticals, Inc. (a)

     4,171        937,974   
   

 

 

  
      20,658,972   
   

 

 

  

Building Products—0.1%

    

Asahi Glass Co., Ltd. (b)

     94,533        615,796   

Assa Abloy AB - Class B

     31,405        1,224,271   

Cie de St-Gobain (b)

     37,444        1,507,199   

Daikin Industries, Ltd.

     22,091        893,318   

Geberit AG

     3,650        903,664   

LIXIL Group Corp.

     25,029        610,025   

Masco Corp.

     19,145        373,136   

TOTO, Ltd.

     28,000        284,889   
   

 

 

  
      6,412,298   
   

 

 

  

Capital Markets—0.9%

    

3i Group plc

     91,019        465,330   

Aberdeen Asset Management plc

     90,118        521,686   

Ameriprise Financial, Inc.

     11,285        912,731   

Bank of New York Mellon Corp. (The)

     63,265        1,774,583   

BlackRock, Inc.

     6,850        1,759,422   

Charles Schwab Corp. (The)

     58,685        1,245,883   

Credit Suisse Group AG (a)

     140,838        3,733,994   

Daiwa Securities Group, Inc.

     156,135        1,311,633   

Deutsche Bank AG

     95,831        4,008,933   

E*Trade Financial Corp. (a)

     13,685        173,252   

Franklin Resources, Inc.

     7,427        1,010,221   

Goldman Sachs Group, Inc. (The)

     24,230        3,664,787   

Hargreaves Lansdown plc

     20,063        269,843   

ICAP plc

     51,459        285,424   

Invesco, Ltd.

     23,850        758,430   

Capital Markets—(Continued)

    

Investec plc

     54,042      $ 338,439   

Julius Baer Group, Ltd. (a)

     21,038        817,524   

Legg Mason, Inc.

     6,380        197,844   

Macquarie Group, Ltd.

     28,722        1,089,311   

Mediobanca S.p.A.

     48,361        251,461   

Morgan Stanley

     74,080        1,809,774   

Nomura Holdings, Inc.

     341,326        2,529,330   

Northern Trust Corp.

     11,680        676,272   

Partners Group Holding AG

     1,632        441,731   

Ratos AB - B Shares (b)

     17,958        139,247   

SBI Holdings, Inc.

     18,994        209,748   

Schroders plc

     9,561        315,703   

State Street Corp.

     25,670        1,673,941   

T. Rowe Price Group, Inc.

     13,590        994,108   

UBS AG (a)

     342,535        5,819,092   
   

 

 

  
      39,199,677   
   

 

 

  

Chemicals—1.2%

    

Air Liquide S.A. (b)

     29,360        3,611,920   

Air Products & Chemicals, Inc.

     11,415        1,045,272   

Air Water, Inc.

     13,767        193,935   

Airgas, Inc.

     3,690        352,247   

Akzo Nobel NV

     22,394        1,257,899   

Arkema S.A. (b)

     5,902        538,891   

Asahi Kasei Corp.

     118,475        783,720   

BASF SE

     86,336        7,710,942   

CF Industries Holdings, Inc.

     3,390        581,385   

Croda International plc

     12,809        483,926   

Daicel Corp.

     27,442        240,469   

Dow Chemical Co. (The)

     64,180        2,064,671   

E.I. du Pont de Nemours & Co.

     49,895        2,619,488   

Eastman Chemical Co.

     8,180        572,682   

Ecolab, Inc.

     14,105        1,201,605   

EMS-Chemie Holding AG

     770        227,162   

FMC Corp.

     7,380        450,623   

Givaudan S.A. (a)

     782        1,009,796   

Hitachi Chemical Co., Ltd.

     9,788        153,281   

Incitec Pivot, Ltd.

     152,651        397,386   

International Flavors & Fragrances, Inc.

     4,345        326,570   

Israel Chemicals, Ltd.

     41,711        410,959   

Israel Corp., Ltd. (The) (a)

     254        152,104   

Johnson Matthey plc

     19,327        774,005   

JSR Corp.

     16,820        340,243   

K&S AG

     16,211        598,335   

Kaneka Corp.

     25,974        171,558   

Kansai Paint Co., Ltd.

     21,548        275,084   

Koninklijke DSM NV

     14,496        943,116   

Kuraray Co., Ltd.

     32,505        456,272   

Lanxess AG

     7,855        472,154   

Linde AG

     17,411        3,242,003   

LyondellBasell Industries NV - Class A

     18,170        1,203,944   

Mitsubishi Chemical Holdings Corp.

     127,132        597,412   

Mitsubishi Gas Chemical Co., Inc.

     36,159        265,814   

Mitsui Chemicals, Inc. (b)

     76,044        171,770   

Monsanto Co.

     28,590        2,824,692   

Mosaic Co. (The)

     14,780        795,312   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-6

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Chemicals—(Continued)

    

Nitto Denko Corp.

     15,570      $ 1,001,709   

Orica, Ltd.

     34,476        648,088   

PPG Industries, Inc.

     8,235        1,205,686   

Praxair, Inc.

     16,015        1,844,287   

Sherwin-Williams Co. (The)

     4,550        803,530   

Shin-Etsu Chemical Co., Ltd.

     38,589        2,560,495   

Showa Denko KK (b)

     140,676        185,828   

Sigma-Aldrich Corp. (b)

     6,515        523,545   

Sika AG

     203        524,121   

Solvay S.A.

     5,574        729,196   

Sumitomo Chemical Co., Ltd.

     139,637        439,348   

Syngenta AG

     8,754        3,413,956   

Taiyo Nippon Sanso Corp. (b)

     22,268        154,264   

Teijin, Ltd.

     87,665        192,713   

Toray Industries, Inc.

     137,548        890,465   

Ube Industries, Ltd.

     94,552        175,432   

Umicore S.A.

     10,771        447,430   

Yara International ASA

     17,365        692,419   
   

 

 

  
      55,951,159   
   

 

 

  

Commercial Banks—3.5%

    

Aozora Bank, Ltd. (a)

     100,635        314,575   

Australia & New Zealand Banking Group, Ltd.

     257,894        6,693,821   

Banca Monte dei Paschi di Siena S.p.A. (a) (b)

     602,432        152,910   

Banco Bilbao Vizcaya Argentaria S.A.

     520,019        4,330,303   

Banco de Sabadell S.A. (b)

     250,373        413,511   

Banco Espirito Santo S.A. (a)

     169,954        134,977   

Banco Popular Espanol S.A. (a)

     118,558        360,558   

Banco Santander S.A.

     1,016,080        6,432,704   

Bank Hapoalim B.M. (a)

     98,966        445,080   

Bank Leumi Le-Israel B.M. (a)

     117,430        388,622   

Bank of East Asia, Ltd.

     115,000        413,227   

Bank of Ireland (a)

     1,982,676        404,587   

Bank of Kyoto, Ltd. (The)

     29,632        247,110   

Bank of Yokohama, Ltd. (The)

     110,009        567,966   

Bankia S.A. (a)

     378,912        292,325   

Banque Cantonale Vaudoise

     284        141,183   

Barclays plc

     1,148,432        4,923,038   

BB&T Corp.

     37,475        1,269,653   

Bendigo and Adelaide Bank, Ltd. (b)

     38,313        351,157   

BNP Paribas S.A.

     93,416        5,103,945   

BOC Hong Kong Holdings, Ltd.

     347,500        1,061,291   

CaixaBank

     109,136        335,155   

Chiba Bank, Ltd. (The)

     69,833        476,034   

Chugoku Bank, Ltd. (The)

     15,798        221,134   

Comerica, Inc.

     10,345        412,041   

Commerzbank AG (a)

     90,935        792,529   

Commonwealth Bank of Australia

     151,260        9,507,655   

Credit Agricole S.A. (a)

     93,606        804,524   

Danske Bank A/S (a)

     61,683        1,050,102   

DBS Group Holdings, Ltd.

     161,100        1,961,089   

DNB ASA

     91,862        1,327,105   

Erste Group Bank AG

     22,253        592,496   

Fifth Third Bancorp.

     49,195        887,970   

Commercial Banks—(Continued)

    

Fukuoka Financial Group, Inc.

     72,326      $ 307,769   

Gunma Bank, Ltd. (The)

     35,171        194,356   

Hachijuni Bank, Ltd. (The)

     38,338        224,897   

Hang Seng Bank, Ltd.

     71,900        1,058,824   

Hiroshima Bank, Ltd. (The) (b)

     46,340        197,659   

Hokuhoku Financial Group, Inc.

     111,000        227,218   

HSBC Holdings plc

     1,737,506        18,005,918   

Huntington Bancshares, Inc.

     46,015        362,598   

Intesa Sanpaolo S.p.A. (b)

     1,092,833        1,748,666   

Iyo Bank, Ltd. (The)

     24,000        229,423   

Joyo Bank, Ltd. (The)

     63,592        348,190   

KBC Groep NV

     21,557        797,335   

KeyCorp

     50,560        558,182   

Lloyds Banking Group plc (a)

     4,297,899        4,143,432   

M&T Bank Corp.

     6,465        722,464   

Mitsubishi UFJ Financial Group, Inc.

     1,197,780        7,432,787   

Mizrahi Tefahot Bank, Ltd. (a)

     11,569        116,443   

Mizuho Financial Group, Inc.

     2,153,460        4,482,126   

National Australia Bank, Ltd.

     220,168        5,931,222   

Natixis

     86,751        361,072   

Nishi-Nippon City Bank, Ltd. (The)

     63,000        164,538   

Nordea Bank AB

     247,447        2,752,532   

Oversea-Chinese Banking Corp., Ltd.

     242,200        1,901,661   

PNC Financial Services Group, Inc. (The)

     28,435        2,073,480   

Raiffeisen Bank International AG

     4,707        137,150   

Regions Financial Corp.

     75,725        721,659   

Resona Holdings, Inc.

     177,226        863,186   

Royal Bank of Scotland Group plc (a)

     199,957        835,039   

Seven Bank, Ltd. (b)

     55,973        203,192   

Shinsei Bank, Ltd.

     154,300        350,121   

Shizuoka Bank, Ltd. (The)

     52,824        569,409   

Skandinaviska Enskilda Banken AB - Class A

     142,784        1,358,444   

Societe Generale S.A.

     66,010        2,247,684   

Standard Chartered plc

     226,821        4,897,022   

Sumitomo Mitsui Financial Group, Inc.

     119,650        5,489,975   

Sumitomo Mitsui Trust Holdings, Inc.

     292,090        1,363,775   

SunTrust Banks, Inc.

     28,840        910,479   

Suruga Bank, Ltd.

     17,000        309,765   

Svenska Handelsbanken AB - A Shares

     46,742        1,868,979   

Swedbank AB - A Shares

     85,125        1,942,790   

U.S. Bancorp

     101,635        3,674,105   

UniCredit S.p.A.

     407,982        1,907,794   

Unione di Banche Italiane SCPA (b)

     80,318        290,501   

United Overseas Bank, Ltd.

     119,400        1,862,493   

Wells Fargo & Co. (c)

     263,380        10,869,693   

Westpac Banking Corp.

     291,745        7,637,703   

Yamaguchi Financial Group, Inc.

     19,000        187,181   

Zions Bancorporation

     9,800        283,024   
   

 

 

  
      157,934,332   
   

 

 

  

Commercial Services & Supplies—0.2%

  

  

ADT Corp. (The) (a)

     12,352        492,227   

Aggreko plc (b)

     25,271        633,561   

Avery Dennison Corp.

     5,360        229,194   

Babcock International Group plc

     34,000        572,456   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-7

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Commercial Services & Supplies—(Continued)

  

  

Brambles, Ltd.

     146,363      $ 1,245,614   

Cintas Corp.

     5,720        260,489   

Dai Nippon Printing Co., Ltd. (b)

     51,963        472,822   

Edenred S.A. (b)

     19,111        584,582   

G4S plc

     132,221        461,991   

Iron Mountain, Inc.

     8,721        232,066   

Park24 Co., Ltd.

     9,180        166,523   

Pitney Bowes, Inc. (b)

     10,710        157,223   

Republic Services, Inc.

     16,015        543,549   

Secom Co., Ltd.

     19,729        1,074,290   

Securitas AB - B Shares

     29,357        255,506   

Serco Group plc

     46,655        438,753   

Societe BIC S.A.

     2,727        272,824   

Stericycle, Inc. (a)

     4,645        512,947   

Toppan Printing Co., Ltd.

     51,929        360,789   

Tyco International, Ltd.

     24,705        814,030   

Waste Management, Inc.

     23,305        939,891   
   

 

 

  
      10,721,327   
   

 

 

  

Communications Equipment—0.4%

    

AAC Technologies Holdings, Inc.

     69,200        387,479   

Cisco Systems, Inc. (c)

     283,670        6,896,018   

F5 Networks, Inc. (a)

     4,245        292,056   

Harris Corp.

     6,020        296,485   

JDS Uniphase Corp. (a)

     12,370        177,880   

Juniper Networks, Inc. (a)

     28,240        545,314   

Motorola Solutions, Inc.

     15,330        885,001   

Nokia Oyj (a) (b)

     351,099        1,307,789   

QUALCOMM, Inc.

     91,385        5,581,796   

Telefonaktiebolaget LM Ericsson - Class B

     286,064        3,243,203   
   

 

 

  
      19,613,021   
   

 

 

  

Computers & Peripherals—0.7%

    

Apple, Inc. (c)

     50,295        19,920,844   

Dell, Inc.

     78,055        1,042,034   

EMC Corp.

     112,510        2,657,486   

Gemalto NV (b)

     7,465        675,902   

Hewlett-Packard Co.

     105,420        2,614,416   

NEC Corp.

     232,087        507,853   

NetApp, Inc. (a)

     19,400        732,932   

SanDisk Corp. (a)

     12,925        789,717   

Seagate Technology plc

     18,870        845,942   

Western Digital Corp.

     11,925        740,423   
   

 

 

  
      30,527,549   
   

 

 

  

Construction & Engineering—0.2%

    

ACS Actividades de Construccion y Servicios S.A.

     13,397        353,224   

Bouygues S.A. (b)

     18,287        465,489   

Chiyoda Corp.

     14,000        164,746   

Ferrovial S.A.

     38,056        607,986   

Fluor Corp.

     8,995        533,493   

Hochtief AG

     2,952        192,329   

Jacobs Engineering Group, Inc. (a)

     6,920        381,500   

JGC Corp.

     20,182        726,536   

Kajima Corp.

     79,151        262,590   

Construction & Engineering—(Continued)

  

  

Kinden Corp.

     12,500      $ 107,077   

Koninklijke Boskalis Westminster NV

     7,126        259,668   

Leighton Holdings, Ltd. (b)

     15,846        221,742   

Obayashi Corp.

     60,450        313,928   

Quanta Services, Inc. (a)

     11,365        300,718   

Shimizu Corp.

     55,178        222,445   

Skanska AB - B Shares

     35,864        592,639   

Taisei Corp.

     90,221        326,601   

Vinci S.A.

     43,586        2,174,436   
   

 

 

  
      8,207,147   
   

 

 

  

Construction Materials—0.2%

    

Boral, Ltd. (b)

     71,078        271,751   

CRH plc

     68,303        1,383,910   

Fletcher Building, Ltd.

     64,021        417,560   

HeidelbergCement AG

     13,219        888,790   

Holcim, Ltd. (a)

     21,522        1,501,858   

Imerys S.A.

     3,188        195,345   

James Hardie Industries plc

     41,039        350,503   

Lafarge S.A. (b)

     17,551        1,073,530   

Taiheiyo Cement Corp. (b)

     110,000        351,630   

Vulcan Materials Co.

     6,920        334,997   
   

 

 

  
      6,769,874   
   

 

 

  

Consumer Finance—0.2%

    

Acom Co., Ltd. (a)

     3,750        119,310   

Aeon Credit Service Co., Ltd. (b)

     6,205        176,235   

American Express Co.

     52,860        3,951,814   

Capital One Financial Corp.

     31,165        1,957,474   

Credit Saison Co., Ltd.

     14,815        371,851   

Discover Financial Services

     27,545        1,312,244   

SLM Corp.

     25,135        574,586   
   

 

 

  
      8,463,514   
   

 

 

  

Containers & Packaging—0.1%

    

Amcor, Ltd.

     113,087        1,044,695   

Ball Corp.

     8,240        342,290   

Bemis Co., Inc.

     5,460        213,704   

MeadWestvaco Corp.

     9,240        315,176   

Owens-Illinois, Inc. (a)

     8,840        245,664   

Rexam plc

     73,967        535,455   

Sealed Air Corp.

     9,335        223,573   

Toyo Seikan Group Holdings, Ltd.

     15,296        235,539   
   

 

 

  
      3,156,096   
   

 

 

  

Distributors—0.0%

    

Genuine Parts Co.

     8,315        649,152   

Jardine Cycle & Carriage, Ltd. (b)

     10,200        342,065   
   

 

 

  
      991,217   
   

 

 

  

Diversified Consumer Services—0.0%

    

Benesse Holdings, Inc.

     6,754        243,742   

H&R Block, Inc.

     14,515        402,791   
   

 

 

  
      646,533   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-8

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Diversified Financial Services—1.0%

  

  

ASX, Ltd.

     18,273      $ 550,299   

Bank of America Corp.

     577,928        7,432,154   

Citigroup, Inc.

     165,051        7,917,496   

CME Group, Inc.

     16,425        1,247,971   

Deutsche Boerse AG

     18,142        1,194,312   

Eurazeo

     2,939        157,313   

Exor S.p.A.

     6,090        180,102   

First Pacific Co., Ltd.

     197,400        210,411   

Groupe Bruxelles Lambert S.A.

     7,584        572,691   

Hong Kong Exchanges and Clearing, Ltd.

     102,700        1,538,797   

Industrivarden AB - C Shares (b)

     11,032        183,351   

ING Groep NV (a)

     360,038        3,289,918   

IntercontinentalExchange, Inc. (a)

     3,890        691,486   

Investment AB Kinnevik - B Shares

     19,443        496,279   

Investor AB - B Shares

     42,815        1,145,631   

Japan Exchange Group, Inc. (b)

     4,645        469,353   

JPMorgan Chase & Co.

     203,690        10,752,795   

Leucadia National Corp.

     10,605        278,063   

London Stock Exchange Group plc

     16,707        338,190   

McGraw Hill Financial, Inc.

     15,015        798,648   

Mitsubishi UFJ Lease & Finance Co., Ltd.

     54,740        259,444   

Moody’s Corp.

     10,355        630,930   

NASDAQ OMX Group, Inc. (The)

     6,280        205,921   

NYSE Euronext

     13,190        546,066   

ORIX Corp.

     103,660        1,416,542   

Pargesa Holding S.A.

     2,586        172,517   

Pohjola Bank plc - A Shares

     12,906        189,842   

Singapore Exchange, Ltd.

     79,600        439,516   

Wendel S.A. (b)

     3,026        311,030   
   

 

 

  
      43,617,068   
   

 

 

  

Diversified Telecommunication Services—1.1%

  

AT&T, Inc. (c)

     300,551        10,639,505   

Belgacom S.A. (b)

     14,388        321,526   

Bezeq The Israeli Telecommunication Corp., Ltd.

     178,533        237,489   

BT Group plc

     740,834        3,466,835   

CenturyLink, Inc.

     33,320        1,177,862   

Deutsche Telekom AG

     264,027        3,079,505   

Elisa Oyj

     13,492        263,476   

France Telecom S.A.

     174,305        1,641,452   

Frontier Communications Corp. (b)

     53,485        216,614   

Hellenic Telecommunications Organization S.A. (a)

     23,036        179,820   

HKT Trust / HKT, Ltd.

     210,500        198,625   

Iliad S.A. (b)

     2,168        467,755   

Inmarsat plc

     42,016        431,198   

Koninklijke KPN NV

     302,760        626,165   

Nippon Telegraph & Telephone Corp.

     41,114        2,145,809   

PCCW, Ltd.

     375,700        176,439   

Portugal Telecom SGPS S.A. (b)

     58,807        228,687   

Singapore Telecommunications, Ltd.

     748,400        2,213,676   

Swisscom AG

     2,192        957,906   

TDC A/S

     69,793        564,630   

Telecom Corp. of New Zealand, Ltd.

     170,483        296,404   

Telecom Italia S.p.A.

     945,866        656,958   

Diversified Telecommunication Services—(Continued)

  

Telecom Italia S.p.A. - Risparmio Shares

     565,017      $ 312,216   

Telefonica Deutschland Holding AG

     26,247        189,982   

Telefonica S.A. (a)

     385,008        4,953,946   

Telekom Austria AG

     20,674        130,412   

Telenor ASA

     65,988        1,308,115   

TeliaSonera AB

     223,860        1,454,513   

Telstra Corp., Ltd.

     408,372        1,777,859   

Verizon Communications, Inc. (c)

     152,820        7,692,959   

Vivendi S.A.

     111,969        2,110,141   

Windstream Corp. (b)

     31,470        242,634   

Ziggo NV

     15,980        637,936   
   

 

 

  
      50,999,049   
   

 

 

  

Electric Utilities—0.7%

    

Acciona S.A. (b)

     2,422        127,661   

American Electric Power Co., Inc.

     26,010        1,164,728   

Cheung Kong Infrastructure Holdings, Ltd.

     58,400        389,824   

Chubu Electric Power Co., Inc. (b)

     60,537        858,254   

Chugoku Electric Power Co., Inc. (The) (b)

     27,934        439,868   

CLP Holdings, Ltd.

     165,982        1,340,132   

Contact Energy, Ltd.

     34,436        136,342   

Duke Energy Corp.

     37,775        2,549,812   

Edison International

     17,475        841,596   

EDP - Energias de Portugal S.A.

     188,656        608,101   

Electricite de France S.A. (b)

     22,724        527,285   

Enel S.p.A. (b)

     618,727        1,939,569   

Entergy Corp.

     9,495        661,612   

Exelon Corp.

     45,784        1,413,810   

FirstEnergy Corp.

     22,425        837,350   

Fortum OYJ

     41,900        782,721   

Hokkaido Electric Power Co., Inc. (a) (b)

     17,197        233,472   

Hokuriku Electric Power Co. (b)

     15,811        248,877   

Iberdrola S.A.

     442,814        2,324,071   

Kansai Electric Power Co., Inc. (The) (a)

     66,133        908,223   

Kyushu Electric Power Co., Inc. (a)

     40,097        604,871   

NextEra Energy, Inc.

     22,675        1,847,559   

Northeast Utilities

     16,805        706,146   

Pepco Holdings, Inc. (b)

     12,270        247,363   

Pinnacle West Capital Corp.

     5,910        327,828   

Power Assets Holdings, Ltd.

     130,400        1,123,008   

PPL Corp.

     31,105        941,237   

Red Electrica Corp. S.A. (b)

     10,172        557,919   

Shikoku Electric Power Co., Inc. (a)

     16,752        303,408   

Southern Co. (The)

     46,905        2,069,918   

SP AusNet

     156,566        167,507   

SSE plc

     90,088        2,079,815   

Terna Rete Elettrica Nazionale S.p.A. (b)

     141,701        588,749   

Tohoku Electric Power Co., Inc. (a)

     42,538        532,809   

Tokyo Electric Power Co., Inc. (a) (b)

     135,885        701,924   

Verbund AG

     6,319        119,524   

Xcel Energy, Inc.

     26,110        739,957   
   

 

 

  
      31,992,850   
   

 

 

  

Electrical Equipment—0.4%

    

ABB, Ltd. (a)

     206,702        4,462,452   

Alstom S.A. (b)

     20,269        663,135   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-9

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Electrical Equipment—(Continued)

  

Eaton Corp. plc

     24,798      $ 1,631,956   

Emerson Electric Co.

     38,955        2,124,606   

Fuji Electric Co., Ltd.

     51,942        183,324   

Furukawa Electric Co., Ltd. (b)

     62,300        144,495   

Legrand S.A.

     23,520        1,086,943   

Mabuchi Motor Co., Ltd.

     2,324        124,205   

Mitsubishi Electric Corp.

     181,739        1,702,610   

Nidec Corp. (b)

     9,565        667,443   

Prysmian S.p.A.

     19,244        357,799   

Rockwell Automation, Inc.

     7,575        629,785   

Roper Industries, Inc.

     5,250        652,155   

Schneider Electric S.A.

     49,598        3,575,787   

Sumitomo Electric Industries, Ltd.

     70,861        847,484   
   

 

 

  
      18,854,179   
   

 

 

  

Electronic Equipment, Instruments & Components—0.4%

  

Amphenol Corp. - Class A

     8,595        669,894   

Citizen Holdings Co., Ltd.

     24,800        138,984   

Corning, Inc.

     79,840        1,136,123   

FLIR Systems, Inc.

     8,035        216,704   

FUJIFILM Holdings Corp.

     43,553        959,638   

Hamamatsu Photonics KK

     6,734        243,432   

Hexagon AB - B Shares

     22,329        595,510   

Hirose Electric Co., Ltd.

     2,855        376,565   

Hitachi High-Technologies Corp.

     5,811        140,107   

Hitachi, Ltd.

     454,158        2,917,378   

Hoya Corp.

     40,950        840,241   

Ibiden Co., Ltd.

     10,667        166,407   

Jabil Circuit, Inc.

     10,005        203,902   

Keyence Corp.

     4,288        1,368,523   

Kyocera Corp.

     15,299        1,557,357   

Molex, Inc.

     7,375        216,382   

Murata Manufacturing Co., Ltd.

     19,146        1,457,633   

Nippon Electric Glass Co., Ltd.

     34,602        168,528   

Omron Corp.

     19,266        574,896   

Shimadzu Corp.

     22,283        179,308   

TDK Corp.

     11,625        401,499   

TE Connectivity, Ltd.

     22,940        1,044,688   

Yaskawa Electric Corp. (b)

     20,000        243,435   

Yokogawa Electric Corp.

     20,143        241,100   
   

 

 

  
      16,058,234   
   

 

 

  

Energy Equipment & Services—0.5%

    

Aker Solutions ASA

     15,334        208,210   

AMEC plc

     27,930        427,946   

Baker Hughes, Inc.

     23,585        1,087,976   

Cameron International Corp. (a)

     13,180        806,089   

Cie Generale de Geophysique - Veritas (a)

     14,864        328,718   

Diamond Offshore Drilling, Inc.

     3,685        253,491   

Ensco plc - Class A

     12,470        724,756   

FMC Technologies, Inc. (a)

     12,730        708,806   

Fugro NV

     6,619        357,226   

Halliburton Co.

     49,690        2,073,067   

Helmerich & Payne, Inc. (b)

     5,605        350,032   

Nabors Industries, Ltd.

     15,555        238,147   

National Oilwell Varco, Inc.

     22,875        1,576,088   

Energy Equipment & Services—(Continued)

  

Noble Corp.

     13,485      $ 506,766   

Petrofac, Ltd.

     24,501        447,922   

Rowan Cos. plc - Class A (a)

     6,620        225,543   

Saipem S.p.A.

     24,919        403,184   

Schlumberger, Ltd. (c)

     71,130        5,097,176   

Seadrill, Ltd.

     35,287        1,423,325   

Subsea 7 S.A. (a)

     24,801        433,962   

Technip S.A. (b)

     9,561        966,325   

Tenaris S.A. (b)

     44,454        894,435   

Transocean, Ltd.

     33,797        1,618,189   

WorleyParsons, Ltd. (b)

     19,519        345,133   
   

 

 

  
      21,502,512   
   

 

 

  

Food & Staples Retailing—0.9%

    

Aeon Co., Ltd. (b)

     56,429        740,850   

Carrefour S.A.

     56,665        1,548,112   

Casino Guichard Perrachon S.A.

     5,296        494,576   

Colruyt S.A.

     7,167        376,771   

Costco Wholesale Corp.

     23,185        2,563,566   

CVS Caremark Corp.

     68,235        3,901,677   

Delhaize Group S.A.

     9,588        589,347   

Distribuidora Internacional de Alimentacion S.A.

     57,264        431,126   

FamilyMart Co., Ltd.

     5,514        235,186   

J Sainsbury plc

     115,053        621,491   

Jeronimo Martins SGPS S.A.

     23,661        498,039   

Kesko Oyj - B Shares (b)

     6,064        167,946   

Koninklijke Ahold NV

     94,812        1,408,549   

Kroger Co. (The)

     29,190        1,008,223   

Lawson, Inc.

     6,176        471,412   

Metcash, Ltd. (b)

     82,552        264,807   

Metro AG

     12,241        387,000   

Olam International, Ltd. (b)

     111,400        143,885   

Safeway, Inc. (b)

     12,800        302,848   

Seven & I Holdings Co., Ltd.

     70,831        2,589,277   

Sysco Corp. (b)

     31,365        1,071,429   

TESCO plc

     757,122        3,804,700   

Wal-Mart Stores, Inc. (c)

     90,124        6,713,337   

Walgreen Co.

     45,895        2,028,559   

Wesfarmers, Ltd.

     94,624        3,412,886   

Whole Foods Market, Inc.

     18,360        945,173   

WM Morrison Supermarkets plc (b)

     207,483        824,240   

Woolworths, Ltd.

     116,823        3,491,982   
   

 

 

  
      41,036,994   
   

 

 

  

Food Products—1.2%

    

Ajinomoto Co., Inc.

     56,281        826,294   

Archer-Daniels-Midland Co.

     35,245        1,195,158   

Aryzta AG (a)

     8,233        461,656   

Associated British Foods plc

     33,487        886,462   

Barry Callebaut AG (a) (b)

     171        156,760   

Calbee, Inc.

     1,698        161,111   

Campbell Soup Co. (b)

     9,600        429,984   

ConAgra Foods, Inc.

     21,770        760,426   

Danone S.A.

     53,666        4,024,989   

DE Master Blenders 1753 NV (a)

     47,528        760,916   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-10

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Food Products—(Continued)

  

General Mills, Inc.

     34,740      $ 1,685,932   

Golden Agri-Resources, Ltd. (b)

     692,600        304,256   

Hershey Co. (The)

     8,135        726,293   

Hormel Foods Corp. (b)

     7,175        276,812   

J.M. Smucker Co. (The)

     5,915        610,132   

Kellogg Co.

     13,185        846,873   

Kerry Group plc - Class A

     14,052        772,399   

Kikkoman Corp.

     15,100        251,235   

Kraft Foods Group, Inc.

     31,713        1,771,805   

Lindt & Spruengli AG

     10        435,120   

Lindt & Spruengli AG (Participation Certifcate)

     80        299,529   

McCormick & Co., Inc.

     7,070        497,445   

Mead Johnson Nutrition Co.

     10,960        868,361   

MEIJI Holdings Co., Ltd.

     5,818        279,540   

Mondelez International, Inc. - Class A

     95,140        2,714,344   

Nestle S.A.

     303,125        19,826,322   

Nippon Meat Packers, Inc.

     15,715        240,393   

Nisshin Seifun Group, Inc.

     17,420        208,679   

Nissin Foods Holdings Co., Ltd. (b)

     5,534        224,037   

Orkla ASA

     71,716        587,529   

Suedzucker AG

     7,737        239,488   

Tate & Lyle plc

     43,670        548,652   

Toyo Suisan Kaisha, Ltd.

     8,477        282,534   

Tyson Foods, Inc. - Class A

     15,510        398,297   

Unilever NV

     153,122        6,006,491   

Unilever plc

     120,643        4,899,477   

Wilmar International, Ltd.

     180,339        446,231   

Yakult Honsha Co., Ltd. (b)

     8,292        343,649   

Yamazaki Baking Co., Ltd.

     9,748        114,676   
   

 

 

  
      56,370,287   
   

 

 

  

Gas Utilities—0.1%

    

AGL Resources, Inc.

     6,260        268,304   

APA Group (b)

     77,505        422,922   

Enagas S.A.

     18,071        446,386   

Gas Natural SDG S.A. (b)

     33,002        662,640   

Hong Kong & China Gas Co., Ltd.

     537,218        1,309,168   

ONEOK, Inc.

     11,020        455,236   

Osaka Gas Co., Ltd.

     175,489        742,768   

Snam S.p.A.

     190,720        868,424   

Toho Gas Co., Ltd. (b)

     38,048        196,809   

Tokyo Gas Co., Ltd.

     229,460        1,269,958   
   

 

 

  
      6,642,615   
   

 

 

  

Health Care Equipment & Supplies—0.5%

  

  

Abbott Laboratories

     84,130        2,934,454   

Baxter International, Inc.

     29,360        2,033,767   

Becton Dickinson & Co.

     10,720        1,059,458   

Boston Scientific Corp. (a)

     76,020        704,705   

C.R. Bard, Inc.

     4,245        461,347   

CareFusion Corp. (a)

     11,870        437,410   

Cochlear, Ltd.

     5,427        304,548   

Coloplast A/S - Class B

     10,444        584,555   

Covidien plc

     25,765        1,619,073   

DENTSPLY International, Inc.

     7,575        310,272   

Health Care Equipment & Supplies—(Continued)

  

Edwards Lifesciences Corp. (a)

     6,210      $ 417,312   

Elekta AB - B Shares

     34,790        529,119   

Essilor International S.A.

     19,175        2,038,911   

Getinge AB - B Shares (b)

     18,927        573,786   

Intuitive Surgical, Inc. (a)

     2,210        1,119,542   

Medtronic, Inc.

     54,725        2,816,696   

Olympus Corp. (a)

     18,706        568,739   

Smith & Nephew plc

     85,081        948,207   

Sonova Holding AG (a)

     4,709        499,272   

St. Jude Medical, Inc.

     16,775        765,443   

Stryker Corp.

     15,530        1,004,480   

Sysmex Corp.

     6,828        446,853   

Terumo Corp.

     14,298        711,530   

Varian Medical Systems, Inc. (a) (b)

     5,915        398,967   

William Demant Holding A/S (a)

     2,521        208,447   

Zimmer Holdings, Inc.

     9,405        704,811   
   

 

 

  
      24,201,704   
   

 

 

  

Health Care Providers & Services—0.5%

  

  

Aetna, Inc.

     20,644        1,311,720   

Alfresa Holdings Corp.

     3,904        209,030   

AmerisourceBergen Corp.

     13,445        750,634   

Cardinal Health, Inc.

     18,240        860,928   

Celesio AG

     7,919        172,032   

Cigna Corp.

     15,445        1,119,608   

DaVita HealthCare Partners, Inc. (a)

     4,550        549,640   

Express Scripts Holding Co. (a)

     43,484        2,682,528   

Extendicare Inc. (b)

     9,850        60,878   

Fresenius Medical Care AG & Co. KGaA

     19,921        1,411,350   

Fresenius SE & Co. KGaA

     11,727        1,445,450   

Humana, Inc.

     8,690        733,262   

Laboratory Corp. of America Holdings (a)

     5,205        521,021   

McKesson Corp.

     12,685        1,452,432   

Medipal Holdings Corp.

     12,587        170,579   

Miraca Holdings, Inc. (b)

     5,243        241,556   

Patterson Cos., Inc.

     4,550        171,080   

Quest Diagnostics, Inc. (b)

     8,535        517,477   

Ramsay Health Care, Ltd.

     12,447        406,744   

Sonic Healthcare, Ltd.

     35,376        479,160   

Suzuken Co., Ltd. (b)

     6,665        224,463   

Tenet Healthcare Corp. (a)

     5,577        257,100   

UnitedHealth Group, Inc.

     55,390        3,626,937   

WellPoint, Inc.

     17,450        1,428,108   
   

 

 

  
      20,803,717   
   

 

 

  

Health Care Technology—0.0%

    

Cerner Corp. (a)

     7,780        747,580   

M3, Inc.

     68        152,771   
   

 

 

  
      900,351   
   

 

 

  

Hotels, Restaurants & Leisure—0.6%

    

Accor S.A.

     14,955        525,253   

Carnival Corp.

     23,980        822,274   

Carnival plc

     17,251        598,342   

Chipotle Mexican Grill, Inc. (a)

     1,715        624,860   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-11

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Hotels, Restaurants & Leisure—(Continued)

  

Compass Group plc

     172,005      $ 2,204,346   

Crown, Ltd.

     37,548        412,237   

Darden Restaurants, Inc.

     6,875        347,050   

Echo Entertainment Group, Ltd.

     73,730        205,889   

Flight Centre, Ltd. (b)

     5,260        187,854   

Galaxy Entertainment Group, Ltd. (a)

     196,771        949,570   

Genting Singapore plc (b)

     574,000        595,322   

InterContinental Hotels Group plc

     25,225        694,206   

International Game Technology

     14,310        239,120   

Marriott International, Inc. - Class A

     13,455        543,178   

McDonald’s Corp.

     54,060        5,351,940   

McDonald’s Holdings Co. Japan, Ltd. (b)

     6,277        173,582   

MGM China Holdings, Ltd.

     89,000        237,580   

OPAP S.A.

     20,901        175,027   

Oriental Land Co., Ltd.

     4,760        736,265   

Sands China, Ltd.

     226,435        1,063,415   

Shangri-La Asia, Ltd.

     147,200        252,252   

SJM Holdings, Ltd.

     181,956        438,319   

Sky City Entertainment Group, Ltd.

     54,026        182,026   

Sodexo

     8,772        730,462   

Starbucks Corp.

     40,700        2,665,443   

Starwood Hotels & Resorts Worldwide, Inc.

     10,505        663,811   

TABCORP Holdings, Ltd.

     68,364        189,733   

Tatts Group, Ltd.

     130,500        377,190   

TUI Travel plc

     41,845        225,994   

Whitbread plc

     16,853        785,908   

William Hill plc

     81,101        545,702   

Wyndham Worldwide Corp.

     7,645        437,523   

Wynn Macau, Ltd.

     145,878        392,840   

Wynn Resorts, Ltd.

     4,240        542,720   

Yum! Brands, Inc.

     24,500        1,698,830   
   

 

 

  
      26,816,063   
   

 

 

  

Household Durables—0.2%

    

Casio Computer Co., Ltd.

     20,900        184,199   

DR Horton, Inc. (b)

     14,850        316,008   

Electrolux AB - Series B

     22,706        574,175   

Garmin, Ltd. (b)

     5,900        213,344   

Harman International Industries, Inc.

     3,590        194,578   

Husqvarna AB - B Shares (b)

     37,767        198,704   

Leggett & Platt, Inc. (b)

     7,480        232,553   

Lennar Corp. - Class A

     8,735        314,809   

Newell Rubbermaid, Inc.

     15,455        405,694   

Panasonic Corp. (a)

     207,428        1,667,111   

Persimmon plc (a)

     28,475        513,697   

PulteGroup, Inc. (a)

     18,080        342,977   

Rinnai Corp.

     3,075        218,910   

Sekisui Chemical Co., Ltd.

     39,915        424,902   

Sekisui House, Ltd.

     50,549        730,976   

Sharp Corp. (a) (b)

     96,178        387,976   

Sony Corp. (b)

     95,175        2,013,768   

Whirlpool Corp.

     4,190        479,168   
   

 

 

  
      9,413,549   
   

 

 

  

Household Products—0.5%

    

Clorox Co. (The) (b)

     6,975      $ 579,902   

Colgate-Palmolive Co.

     47,930        2,745,910   

Henkel AG & Co. KGaA

     12,211        957,053   

Kimberly-Clark Corp.

     21,215        2,060,825   

Procter & Gamble Co. (The) (c)

     147,755        11,375,658   

Reckitt Benckiser Group plc

     60,774        4,308,263   

Svenska Cellulosa AB - B Shares

     54,796        1,371,930   

Unicharm Corp. (b)

     10,761        608,731   
   

 

 

  
      24,008,272   
   

 

 

  

Independent Power Producers & Energy Traders—0.0%

  

AES Corp. (The)

     33,205        398,128   

Electric Power Development Co., Ltd.

     10,970        342,345   

Enel Green Power S.p.A.

     164,032        340,287   

NRG Energy, Inc.

     12,135        324,004   
   

 

 

  
      1,404,764   
   

 

 

  

Industrial Conglomerates—0.8%

    

3M Co.

     34,135        3,732,662   

Danaher Corp.

     31,290        1,980,657   

General Electric Co. (c)

     566,205        13,130,294   

Hopewell Holdings, Ltd.

     53,000        175,620   

Hutchison Whampoa, Ltd.

     200,600        2,096,463   

Keppel Corp., Ltd.

     135,000        1,103,891   

Koninklijke Philips NV

     89,969        2,450,619   

NWS Holdings, Ltd.

     136,500        207,653   

Sembcorp Industries, Ltd.

     91,600        355,967   

Siemens AG

     74,531        7,530,810   

Smiths Group plc

     37,024        738,731   

Toshiba Corp.

     377,779        1,817,208   
   

 

 

  
      35,320,575   
   

 

 

  

Insurance—1.9%

    

ACE, Ltd.

     18,230        1,631,220   

Admiral Group plc

     17,998        364,105   

Aegon NV

     166,830        1,113,747   

Aflac, Inc.

     25,055        1,456,197   

Ageas

     21,761        760,525   

AIA Group, Ltd.

     1,132,073        4,757,612   

Allianz SE

     42,859        6,259,142   

Allstate Corp. (The)

     25,935        1,247,992   

American International Group, Inc. (a)

     79,595        3,557,896   

AMP, Ltd.

     275,453        1,064,192   

Aon plc

     17,330        1,115,186   

Assicurazioni Generali S.p.A.

     109,757        1,915,337   

Assurant, Inc.

     4,355        221,713   

Aviva plc

     276,929        1,422,341   

AXA S.A.

     168,394        3,308,672   

Baloise Holding AG

     4,465        432,388   

Berkshire Hathaway, Inc. - Class B (a) (c)

     98,330        11,005,094   

Chubb Corp. (The)

     14,310        1,211,341   

Cincinnati Financial Corp.

     7,840        359,856   

CNP Assurances

     15,011        214,717   

Dai-ichi Life Insurance Co., Ltd. (The)

     802        1,160,778   

Delta Lloyd NV

     17,290        344,455   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-12

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Insurance—(Continued)

  

Direct Line Insurance Group plc

     77,548      $ 275,195   

Genworth Financial, Inc. - Class A (a)

     26,315        300,254   

Gjensidige Forsikring ASA

     18,753        275,443   

Hannover Rueckversicherung SE

     5,711        410,441   

Hartford Financial Services Group, Inc.

     23,290        720,127   

Insurance Australia Group, Ltd.

     194,916        962,869   

Legal & General Group plc

     554,038        1,449,587   

Lincoln National Corp.

     14,920        544,132   

Loews Corp.

     16,770        744,588   

Mapfre S.A. (b)

     72,178        233,494   

Marsh & McLennan Cos., Inc.

     29,140        1,163,269   

MetLife, Inc. (d)

     56,965        2,606,718   

MS&AD Insurance Group Holdings

     47,639        1,211,577   

Muenchener Rueckversicherungs AG

     16,858        3,095,562   

NKSJ Holdings, Inc.

     31,766        757,588   

Old Mutual plc

     459,964        1,262,408   

Principal Financial Group, Inc.

     14,875        557,069   

Progressive Corp. (The)

     30,055        763,998   

Prudential Financial, Inc.

     25,010        1,826,480   

Prudential plc

     240,381        3,951,778   

QBE Insurance Group, Ltd.

     112,492        1,552,527   

Resolution, Ltd.

     133,299        575,409   

RSA Insurance Group plc

     338,232        613,285   

Sampo Oyj - A Shares

     39,395        1,528,846   

SCOR SE (b)

     14,437        440,871   

Sony Financial Holdings, Inc.

     16,356        258,444   

Standard Life plc

     221,036        1,155,634   

Suncorp Group, Ltd.

     121,053        1,310,757   

Swiss Life Holding AG (a)

     3,016        487,980   

Swiss Re AG (a)

     33,104        2,452,228   

T&D Holdings, Inc.

     54,452        732,487   

Tokio Marine Holdings, Inc.

     65,079        2,063,939   

Torchmark Corp.

     5,060        329,608   

Travelers Cos., Inc. (The)

     20,680        1,652,746   

Tryg A/S

     2,306        189,681   

Unum Group

     15,015        440,991   

Vienna Insurance Group AG Wiener Versicherung Gruppe

     3,620        167,619   

XL Group plc

     16,315        494,671   

Zurich Financial Services AG (a)

     13,942        3,613,190   
   

 

 

  
      88,097,996   
   

 

 

  

Internet & Catalog Retail—0.2%

  

Amazon.com, Inc. (a)

     19,470        5,406,624   

Expedia, Inc.

     5,065        304,660   

Netflix, Inc. (a) (b)

     2,943        621,238   

priceline.com, Inc. (a)

     2,745        2,270,472   

Rakuten, Inc.

     68,279        807,639   

TripAdvisor, Inc. (a)

     5,865        357,003   
   

 

 

  
      9,767,636   
   

 

 

  

Internet Software & Services—0.4%

  

Akamai Technologies, Inc. (a)

     9,500        404,225   

Dena Co., Ltd. (b)

     9,923        193,586   

eBay, Inc. (a)

     62,215        3,217,760   

Google, Inc. - Class A (a) (c)

     14,205        12,505,656   

Internet Software & Services—(Continued)

  

Gree, Inc. (a) (b)

     9,936      $ 88,189   

United Internet AG

     10,030        282,688   

VeriSign, Inc. (a)

     8,345        372,688   

Yahoo Japan Corp.

     1,368        675,990   

Yahoo!, Inc. (a)

     55,855        1,402,519   
   

 

 

  
      19,143,301   
   

 

 

  

IT Services—0.7%

  

Accenture plc - Class A

     34,085        2,452,757   

Amadeus IT Holding S.A. - A Shares

     35,761        1,142,361   

Atos Origin S.A.

     5,237        388,690   

Automatic Data Processing, Inc.

     25,965        1,787,950   

Cap Gemini S.A.

     13,522        657,394   

Cognizant Technology Solutions Corp. - Class A (a)

     16,015        1,002,699   

Computer Sciences Corp.

     8,235        360,446   

Computershare, Ltd.

     44,396        414,310   

Fidelity National Information Services, Inc.

     13,395        573,842   

Fiserv, Inc. (a)

     7,280        636,345   

Fujitsu, Ltd.

     175,016        723,579   

International Business Machines Corp. (c)

     57,655        11,018,447   

Itochu Techno-Solutions Corp.

     2,400        99,339   

Mastercard, Inc. - Class A

     5,800        3,332,100   

Nomura Research Institute, Ltd.

     9,530        311,022   

NTT Data Corp.

     119        422,399   

Otsuka Corp. (b)

     1,560        173,617   

Paychex, Inc. (b)

     17,275        630,883   

SAIC, Inc. (b)

     15,160        211,179   

Teradata Corp. (a)

     9,040        454,079   

Total System Services, Inc.

     8,635        211,385   

Visa, Inc. - Class A

     28,010        5,118,827   

Western Union Co. (The)

     32,250        551,798   
   

 

 

  
      32,675,448   
   

 

 

  

Leisure Equipment & Products—0.1%

  

Hasbro, Inc. (b)

     6,175        276,825   

Mattel, Inc.

     18,235        826,228   

Namco Bandai Holdings, Inc.

     16,710        271,714   

Nikon Corp.

     32,055        747,988   

Sankyo Co., Ltd.

     5,104        241,117   

Sega Sammy Holdings, Inc.

     17,548        439,364   

Shimano, Inc. (b)

     7,441        631,756   

Yamaha Corp.

     14,800        169,690   
   

 

 

  
      3,604,682   
   

 

 

  

Life Sciences Tools & Services—0.1%

  

Agilent Technologies, Inc.

     18,635        796,833   

Life Technologies Corp. (a)

     9,395        695,324   

Lonza Group AG (a)

     5,012        375,697   

PerkinElmer, Inc.

     6,060        196,950   

QIAGEN NV (a)

     22,381        439,594   

Thermo Fisher Scientific, Inc.

     19,560        1,655,363   

Waters Corp. (a)

     4,750        475,237   
   

 

 

  
      4,634,998   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-13

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Machinery—0.9%

    

Alfa Laval AB

     29,571      $ 601,232   

Amada Co., Ltd.

     32,986        217,877   

Andritz AG

     6,844        350,666   

Atlas Copco AB - A Shares (b)

     63,121        1,515,927   

Atlas Copco AB - B Shares

     36,723        783,280   

Caterpillar, Inc.

     35,045        2,890,862   

Cummins, Inc.

     9,555        1,036,335   

Deere & Co.

     20,975        1,704,219   

Dover Corp.

     9,800        761,068   

FANUC Corp.

     18,010        2,611,579   

Fiat Industrial S.p.A.

     80,528        897,051   

Flowserve Corp.

     8,340        450,443   

GEA Group AG

     17,190        607,898   

Hino Motors, Ltd.

     24,133        354,356   

Hitachi Construction Machinery Co., Ltd.

     10,158        205,390   

IHI Corp. (b)

     123,748        469,214   

Illinois Tool Works, Inc.

     23,170        1,602,669   

IMI plc

     30,377        575,217   

Ingersoll-Rand plc

     15,375        853,620   

Invensys plc

     60,969        383,646   

Japan Steel Works, Ltd. (The)

     29,374        161,730   

Joy Global, Inc. (b)

     5,705        276,864   

JTEKT Corp.

     19,317        217,401   

Kawasaki Heavy Industries, Ltd.

     132,697        408,143   

Komatsu, Ltd.

     87,787        2,029,913   

Kone Oyj - Class B (b)

     14,636        1,160,219   

Kubota Corp.

     102,359        1,486,023   

Kurita Water Industries, Ltd.

     10,624        225,469   

Makita Corp.

     10,590        572,390   

MAN SE

     3,313        361,741   

Melrose Industries plc

     119,060        450,734   

Metso Oyj

     12,075        409,141   

Mitsubishi Heavy Industries, Ltd.

     285,000        1,583,536   

Nabtesco Corp.

     10,740        223,422   

NGK Insulators, Ltd.

     24,922        309,122   

NSK, Ltd.

     43,284        414,244   

PACCAR, Inc.

     18,895        1,013,906   

Pall Corp.

     6,210        412,530   

Parker Hannifin Corp.

     8,035        766,539   

Pentair, Ltd.

     11,273        650,339   

Sandvik AB (b)

     100,223        1,193,449   

Scania AB - B Shares

     30,167        601,027   

Schindler Holding AG

     6,600        910,362   

Sembcorp Marine, Ltd. (b)

     77,700        263,377   

SKF AB - B Shares (b)

     36,939        860,868   

SMC Corp.

     5,113        1,029,740   

Snap-on, Inc.

     3,080        275,290   

Stanley Black & Decker, Inc.

     9,040        698,792   

Sulzer AG

     2,255        359,276   

Sumitomo Heavy Industries, Ltd.

     51,676        217,820   

THK Co., Ltd.

     10,752        226,069   

Vallourec S.A.

     9,983        505,156   

Volvo AB - B Shares

     141,398        1,884,585   

Wartsila Oyj Abp

     16,687        722,913   

Weir Group plc (The)

     19,978        656,757   

Xylem, Inc.

     9,900        266,706   

Machinery—(Continued)

    

Yangzijiang Shipbuilding Holdings, Ltd. (b)

     179,890      $ 117,790   

Zardoya Otis S.A. (b)

     14,404        203,467   
   

 

 

  
      42,999,399   
   

 

 

  

Marine—0.1%

    

AP Moeller - Maersk A/S - Class A

     52        350,254   

AP Moeller - Maersk A/S - Class B

     124        886,993   

Kuehne & Nagel International AG

     5,076        556,530   

Mitsui OSK Lines, Ltd. (a) (b)

     101,913        397,719   

Nippon Yusen KK (b)

     150,984        400,423   

Orient Overseas International, Ltd.

     20,500        131,312   
   

 

 

  
      2,723,231   
   

 

 

  

Media—0.9%

    

Axel Springer AG (b)

     3,701        157,694   

British Sky Broadcasting Group plc

     98,833        1,192,638   

Cablevision Systems Corp. - Class A

     11,525        193,851   

CBS Corp. - Class B

     31,910        1,559,442   

Comcast Corp. - Class A

     143,440        6,007,267   

Dentsu, Inc.

     16,987        587,560   

DIRECTV (a)

     33,675        2,075,053   

Discovery Communications, Inc. - Class A (a)

     13,250        1,023,032   

Eutelsat Communications S.A.

     13,449        380,651   

Gannett Co., Inc.

     12,330        301,592   

Hakuhodo DY Holdings, Inc.

     2,194        153,758   

Interpublic Group of Cos., Inc. (The)

     23,415        340,688   

ITV plc

     347,826        743,574   

JCDecaux S.A. (b)

     6,214        169,378   

Kabel Deutschland Holding AG

     8,321        913,677   

Lagardere SCA

     10,478        291,868   

News Corp. - Class A

     109,125        3,557,475   

Omnicom Group, Inc.

     14,255        896,212   

Pearson plc

     76,840        1,364,349   

Publicis Groupe S.A.

     16,780        1,189,877   

Reed Elsevier NV

     64,829        1,075,310   

Reed Elsevier plc

     112,223        1,278,781   

Scripps Networks Interactive, Inc. - Class A

     4,650        310,434   

SES S.A.

     28,569        815,960   

Singapore Press Holdings, Ltd. (b)

     150,000        492,393   

Telenet Group Holding NV

     4,825        220,913   

Time Warner Cable, Inc.

     16,435        1,848,609   

Time Warner, Inc.

     50,885        2,942,171   

Toho Co., Ltd.

     10,694        220,197   

Viacom, Inc. - Class B

     25,420        1,729,831   

Walt Disney Co. (The)

     96,270        6,079,450   

Washington Post Co. (The) - Class B (b)

     253        122,394   

Wolters Kluwer NV

     28,493        600,880   

WPP plc

     118,856        2,030,604   
   

 

 

  
      42,867,563   
   

 

 

  

Metals & Mining—0.9%

    

Alcoa, Inc. (b)

     57,170        447,069   

Allegheny Technologies, Inc. (b)

     5,705        150,098   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-14

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Metals & Mining—(Continued)

    

Alumina, Ltd. (a) (b)

     237,401      $ 211,490   

Anglo American plc

     130,964        2,530,695   

Antofagasta plc

     36,905        448,030   

ArcelorMittal

     94,061        1,048,490   

BHP Billiton plc

     198,456        5,097,237   

BHP Billiton, Ltd.

     301,893        8,699,109   

Boliden AB

     25,554        316,401   

Cliffs Natural Resources, Inc. (b)

     7,625        123,906   

Daido Steel Co., Ltd.

     26,068        132,226   

Fortescue Metals Group, Ltd. (b)

     146,345        401,462   

Freeport-McMoRan Copper & Gold, Inc.

     50,860        1,404,245   

Fresnillo plc

     16,788        225,993   

GlencoreXstrata plc

     939,447        3,908,062   

Hitachi Metals, Ltd. (b)

     15,465        174,043   

Iluka Resources, Ltd. (b)

     39,228        354,168   

JFE Holdings, Inc.

     46,261        1,015,603   

Kobe Steel, Ltd. (a) (b)

     233,670        289,833   

Maruichi Steel Tube, Ltd.

     4,400        112,630   

Mitsubishi Materials Corp.

     104,804        368,838   

Newcrest Mining, Ltd.

     72,074        647,331   

Newmont Mining Corp.

     26,565        795,622   

Nippon Steel Sumitomo Metal Corp.

     714,089        1,929,867   

Norsk Hydro ASA (b)

     87,282        347,632   

Nucor Corp.

     16,970        735,140   

Randgold Resources, Ltd.

     8,235        523,792   

Rio Tinto plc

     119,448        4,895,761   

Rio Tinto, Ltd. (b)

     40,961        1,945,545   

Sumitomo Metal Mining Co., Ltd.

     49,516        552,256   

ThyssenKrupp AG (a)

     36,355        714,160   

United States Steel Corp. (b)

     7,675        134,543   

Vedanta Resources plc (b)

     8,767        136,586   

Voestalpine AG (b)

     10,537        370,931   

Yamato Kogyo Co., Ltd.

     4,000        122,417   
   

 

 

  
      41,311,211   
   

 

 

  

Multi-Utilities—0.5%

    

AGL Energy, Ltd.

     51,715        682,238   

Ameren Corp.

     12,930        445,309   

CenterPoint Energy, Inc.

     22,830        536,277   

Centrica plc

     488,514        2,681,028   

CMS Energy Corp.

     14,185        385,406   

Consolidated Edison, Inc.

     15,705        915,759   

Dominion Resources, Inc.

     30,760        1,747,783   

DTE Energy Co.

     9,240        619,172   

E.ON SE

     169,281        2,777,636   

GDF Suez

     124,740        2,432,218   

Integrys Energy Group, Inc.

     4,190        245,241   

National Grid plc

     344,478        3,896,558   

NiSource, Inc.

     15,250        436,760   

PG&E Corp.

     22,865        1,045,616   

Public Service Enterprise Group, Inc.

     27,070        884,106   

RWE AG

     46,001        1,467,808   

SCANA Corp.

     7,010        344,191   

Sempra Energy

     12,080        987,661   

Suez Environnement Co. (b)

     26,258        338,077   

TECO Energy, Inc. (b)

     10,865        186,769   

Multi-Utilities—(Continued)

    

Veolia Environnement S.A. (b)

     31,802      $ 360,272   

Wisconsin Energy Corp.

     12,325        505,202   
   

 

 

  
      23,921,087   
   

 

 

  

Multiline Retail—0.2%

    

Dollar General Corp. (a)

     14,340        723,166   

Dollar Tree, Inc. (a)

     12,340        627,366   

Don Quijote Co., Ltd.

     5,160        251,593   

Family Dollar Stores, Inc.

     5,240        326,504   

Harvey Norman Holdings, Ltd. (b)

     49,785        115,290   

Isetan Mitsukoshi Holdings, Ltd.

     33,397        443,533   

J Front Retailing Co., Ltd.

     44,915        358,265   

J.C. Penney Co., Inc. (a) (b)

     7,575        129,381   

Kohl’s Corp.

     11,585        585,158   

Macy’s, Inc.

     21,530        1,033,440   

Marks & Spencer Group plc

     151,663        991,068   

Marui Group Co., Ltd.

     20,900        208,438   

Next plc

     15,156        1,048,208   

Nordstrom, Inc.

     8,150        488,511   

Takashimaya Co., Ltd.

     24,372        246,999   

Target Corp.

     35,140        2,419,741   
   

 

 

  
      9,996,661   
   

 

 

  

Office Electronics—0.1%

    

Brother Industries, Ltd.

     22,146        249,455   

Canon, Inc. (b)

     106,633        3,502,222   

Konica Minolta, Inc.

     44,753        338,017   

Ricoh Co., Ltd.

     62,478        743,470   

Xerox Corp.

     70,100        635,807   
   

 

 

  
      5,468,971   
   

 

 

  

Oil, Gas & Consumable Fuels—2.9%

    

Anadarko Petroleum Corp.

     26,765        2,299,916   

Apache Corp.

     20,955        1,756,658   

BG Group plc

     319,830        5,458,535   

BP plc

     1,801,497        12,497,298   

Cabot Oil & Gas Corp.

     11,210        796,134   

Caltex Australia, Ltd.

     12,653        207,838   

Chesapeake Energy Corp. (b)

     27,755        565,647   

Chevron Corp. (c)

     105,280        12,458,835   

ConocoPhillips

     65,120        3,939,760   

CONSOL Energy, Inc.

     12,120        328,452   

Cosmo Oil Co., Ltd. (a)

     51,000        94,108   

Delek Group, Ltd.

     386        100,180   

Denbury Resources, Inc. (a)

     20,965        363,114   

Devon Energy Corp.

     20,180        1,046,938   

ENI S.p.A.

     239,124        4,912,709   

EOG Resources, Inc.

     14,545        1,915,286   

EQT Corp.

     7,980        633,373   

Exxon Mobil Corp. (c)

     243,589        22,008,266   

Galp Energia, SGPS, S.A.

     25,519        377,695   

Hess Corp.

     15,910        1,057,856   

Idemitsu Kosan Co., Ltd. (b)

     2,100        161,565   

Inpex Corp.

     207        865,379   

Japan Petroleum Exploration Co.

     2,700        109,583   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-15

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Oil, Gas & Consumable Fuels—(Continued)

  

  

JX Holdings, Inc.

     211,024      $ 1,023,528   

Kinder Morgan, Inc.

     30,520        1,164,338   

Lundin Petroleum AB (a)

     20,847        411,714   

Marathon Oil Corp.

     37,730        1,304,703   

Marathon Petroleum Corp.

     18,165        1,290,805   

Murphy Oil Corp.

     9,855        600,071   

Neste Oil Oyj (b)

     11,972        174,274   

Newfield Exploration Co. (a)

     7,170        171,291   

Noble Energy, Inc.

     19,190        1,152,168   

Occidental Petroleum Corp.

     43,435        3,875,705   

OMV AG

     13,844        622,791   

Origin Energy, Ltd.

     102,837        1,176,826   

Peabody Energy Corp.

     14,345        210,011   

Phillips 66

     33,560        1,977,020   

Pioneer Natural Resources Co.

     6,615        957,521   

QEP Resources, Inc.

     9,495        263,771   

Range Resources Corp.

     8,735        675,390   

Repsol S.A.

     78,356        1,651,834   

Royal Dutch Shell plc - A Shares

     354,597        11,315,614   

Royal Dutch Shell plc - B Shares

     245,721        8,126,184   

Santos, Ltd.

     90,376        1,032,509   

Showa Shell Sekiyu KK (b)

     17,700        145,641   

Southwestern Energy Co. (a)

     18,635        680,737   

Spectra Energy Corp.

     34,950        1,204,377   

Statoil ASA

     104,904        2,162,645   

Tesoro Corp.

     7,475        391,092   

TonenGeneral Sekiyu KK (b)

     26,075        252,668   

Total S.A.

     200,153        9,760,344   

Tullow Oil plc

     85,356        1,303,854   

Valero Energy Corp.

     29,555        1,027,627   

Whitehaven Coal, Ltd. (b)

     52,431        110,294   

Williams Cos., Inc. (The)

     33,565        1,089,856   

Woodside Petroleum, Ltd.

     61,957        1,971,928   

WPX Energy, Inc. (a) (b)

     10,655        201,806   
   

 

 

  
      133,436,062   
   

 

 

  

Paper & Forest Products—0.1%

    

International Paper Co.

     23,385        1,036,189   

OJI Holdings Corp. (b)

     74,372        299,981   

Stora Enso Oyj - R Shares

     51,600        343,844   

UPM-Kymmene Oyj (b)

     49,207        479,923   
   

 

 

  
      2,159,937   
   

 

 

  

Personal Products—0.2%

    

Avon Products, Inc.

     23,130        486,424   

Beiersdorf AG

     9,489        827,393   

Estee Lauder Cos., Inc. (The) - Class A

     12,920        849,748   

Kao Corp. (b)

     49,524        1,685,372   

L’Oreal S.A.

     22,722        3,715,090   

Shiseido Co., Ltd. (b)

     33,809        502,911   
   

 

 

  
      8,066,938   
   

 

 

  

Pharmaceuticals—3.0%

    

AbbVie, Inc.

     84,130        3,477,934   

Actavis, Inc. (a)

     6,870        867,131   

Pharmaceuticals—(Continued)

  

  

Allergan, Inc.

     16,465      $ 1,387,012   

Astellas Pharma, Inc.

     41,824        2,277,616   

AstraZeneca plc

     117,325        5,549,936   

Bayer AG

     77,732        8,286,753   

Bristol-Myers Squibb Co.

     90,015        4,022,770   

Chugai Pharmaceutical Co., Ltd.

     21,074        436,903   

Daiichi Sankyo Co., Ltd.

     63,299        1,057,005   

Dainippon Sumitomo Pharma Co., Ltd.

     15,000        198,300   

Eisai Co., Ltd. (b)

     23,680        965,841   

Eli Lilly & Co.

     54,750        2,689,320   

Forest Laboratories, Inc. (a)

     12,455        510,655   

GlaxoSmithKline plc

     461,195        11,537,633   

Hisamitsu Pharmaceutical Co., Inc. (b)

     5,825        296,743   

Hospira, Inc. (a) (b)

     8,840        338,660   

Johnson & Johnson (c)

     147,870        12,696,118   

Kyowa Hakko Kirin Co., Ltd. (b)

     21,167        239,483   

Merck & Co., Inc. (c)

     163,305        7,585,517   

Merck KGaA

     6,075        923,944   

Mitsubishi Tanabe Pharma Corp.

     20,801        270,077   

Mylan, Inc. (a)

     21,685        672,886   

Novartis AG

     216,221        15,323,454   

Novo Nordisk A/S - Class B

     38,282        5,960,031   

Ono Pharmaceutical Co., Ltd.

     7,834        531,623   

Orion Oyj - Class B (b)

     9,235        216,004   

Otsuka Holdings Co., Ltd.

     34,114        1,126,525   

Perrigo Co.

     4,710        569,910   

Pfizer, Inc.

     365,826        10,246,786   

Roche Holding AG

     66,040        16,363,680   

Sanofi

     112,207        11,563,724   

Santen Pharmaceutical Co., Ltd. (b)

     7,037        303,541   

Shionogi & Co., Ltd.

     28,098        586,502   

Shire plc

     52,383        1,661,746   

Taisho Pharmaceutical Holdings Co., Ltd.

     2,966        210,546   

Takeda Pharmaceutical Co., Ltd.

     74,250        3,360,211   

Teva Pharmaceutical Industries, Ltd.

     79,841        3,129,620   

Tsumura & Co. (b)

     5,700        168,057   

UCB S.A.

     10,379        558,853   

Zoetis, Inc.

     27,000        834,030   
   

 

 

  
      139,003,080   
   

 

 

  

Professional Services—0.2%

    

Adecco S.A. (a)

     12,465        707,573   

ALS, Ltd. (b)

     32,401        281,420   

Bureau Veritas S.A. (b)

     20,768        537,815   

Capita Group plc

     61,611        907,762   

Dun & Bradstreet Corp. (The) (b)

     2,425        236,316   

Equifax, Inc.

     6,415        378,036   

Experian plc

     94,947        1,646,812   

Intertek Group plc

     15,179        676,370   

Randstad Holding NV

     11,341        463,089   

Robert Half International, Inc.

     7,580        251,883   

Seek, Ltd.

     30,168        248,816   

SGS S.A.

     515        1,103,740   
   

 

 

  
      7,439,632   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-16

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Real Estate Investment Trusts—2.6%

    

Acadia Realty Trust

     6,300      $ 155,547   

Activia Properties, Inc.

     18        141,877   

Advance Residence Investment Corp.

     152        329,419   

Aedifica

     1,000        61,789   

Affine S.A.

     650        10,829   

Agree Realty Corp.

     1,500        44,280   

Alexander’s, Inc.

     250        73,428   

Alexandria Real Estate Equities, Inc.

     8,050        529,046   

Allied Properties Real Estate Investment Trust

     7,750        235,882   

Alstria Office REIT-AG (a)

     7,750        84,726   

American Assets Trust, Inc.

     3,850        118,811   

American Campus Communities, Inc.

     11,950        485,887   

American Tower Corp.

     21,165        1,548,643   

ANF Immobilier

     800        21,920   

Apartment Investment & Management Co. - Class A

     24,365        731,925   

Artis Real Estate Investment Trust

     14,350        206,170   

Ascendas Real Estate Investment Trust (REIT)

     416,200        732,184   

Ashford Hospitality Trust, Inc.

     6,100        69,845   

Associated Estates Realty Corp. (b)

     5,750        92,460   

AvalonBay Communities, Inc.

     20,045        2,704,271   

Befimmo S.C.A. Sicafi

     1,800        113,834   

Beni Stabili S.p.A.

     94,150        58,074   

Big Yellow Group plc

     14,650        85,884   

BioMed Realty Trust, Inc.

     21,950        444,048   

Boardwalk Real Estate Investment Trust

     4,550        252,182   

Boston Properties, Inc.

     25,475        2,686,848   

Brandywine Realty Trust

     17,900        242,008   

BRE Properties, Inc.

     8,750        437,675   

British Land Co. plc

     200,835        1,728,023   

BWP Trust (b)

     61,450        125,977   

Calloway Real Estate Investment Trust

     11,600        283,575   

Camden Property Trust

     9,700        670,658   

Campus Crest Communities, Inc.

     7,350        84,819   

Canadian Apartment Properties

     11,600        249,824   

Canadian Real Estate Investment Trust

     7,750        320,921   

CapitaCommercial Trust (b)

     405,800        468,988   

CapitaMall Trust

     522,550        822,408   

CapLease, Inc.

     10,150        85,666   

CBL & Associates Properties, Inc.

     18,800        402,696   

CDL Hospitality Trusts (b)

     71,850        96,360   

Cedar Realty Trust, Inc.

     8,200        42,476   

CFS Retail Property Trust (REIT) (b)

     425,104        774,370   

Champion

     291,750        133,530   

Charter Hall Retail (b)

     37,550        130,844   

Chartwell Retirement Residences

     19,450        181,425   

Chesapeake Lodging Trust

     5,550        115,384   

Cofinimmo

     1,750        191,250   

Colonial Properties Trust

     9,150        220,698   

Cominar Real Estate Investment Trust

     14,281        282,986   

Commonwealth Property Office Fund (b)

     268,300        269,364   

CommonWealth REIT

     13,500        312,120   

Corio NV

     13,860        549,547   

Corporate Office Properties Trust

     9,200        234,600   

Cousins Properties, Inc.

     12,450        125,745   

Real Estate Investment Trusts—(Continued)

  

  

Crombie Real Estate Investment Trust

     6,100      $ 79,462   

CubeSmart

     15,200        242,896   

Daiwahouse Residential Investment Corp.

     23        91,933   

DCT Industrial Trust, Inc.

     33,300        238,095   

DDR Corp.

     28,850        480,352   

Derwent London plc

     10,500        367,027   

Dexus Property Group

     963,758        936,989   

DiamondRock Hospitality Co.

     22,300        207,836   

Digital Realty Trust, Inc. (b)

     14,700        896,700   

Douglas Emmett, Inc.

     15,150        377,992   

Duke Realty Corp.

     36,750        572,932   

Dundee International Real Estate Investment Trust

     10,650        99,746   

Dundee Real Estate Investment Trust - Class A

     11,900        369,322   

DuPont Fabros Technology, Inc. (b)

     7,350        177,502   

EastGroup Properties, Inc.

     3,450        194,131   

Education Realty Trust, Inc.

     12,900        131,967   

EPR Properties (b)

     5,400        271,458   

Equity Lifestyle Properties, Inc.

     4,300        337,937   

Equity One, Inc.

     6,750        152,752   

Equity Residential

     56,860        3,301,292   

Essex Property Trust, Inc.

     4,350        691,302   

Eurobank Properties Real Estate Investment Co. (a)

     3,050        28,320   

Eurocommercial Properties NV

     3,950        144,923   

Excel Trust, Inc.

     5,150        65,972   

Extra Space Storage, Inc.

     11,950        501,063   

Federal Realty Investment Trust

     7,400        767,232   

Federation Centres, Ltd. (REIT)

     279,395        603,703   

FelCor Lodging Trust, Inc. (a)

     14,200        83,922   

First Industrial Realty Trust, Inc.

     12,250        185,832   

First Potomac Realty Trust

     6,600        86,196   

Fonciere Des Regions

     6,321        473,933   

Fortune Real Estate Investment Trust

     135,850        124,218   

Franklin Street Properties Corp.

     10,050        132,660   

Frontier Real Estate Investment Corp. (b)

     15        137,774   

Gecina S.A. (b)

     4,194        461,831   

General Growth Properties, Inc.

     63,000        1,251,810   

Getty Realty Corp.

     2,850        58,853   

Glimcher Realty Trust

     16,200        176,904   

GLP J-Reit

     135        132,039   

Goodman Group

     356,880        1,581,703   

Government Properties Income Trust

     6,250        157,625   

GPT Group

     346,007        1,210,976   

Granite Real Estate Investment Trust

     5,400        186,076   

Great Portland Estates plc

     39,300        317,458   

H&R Real Estate Investment Trust

     29,344        614,949   

Hamborner REIT AG

     5,150        46,889   

Hammerson plc

     147,736        1,098,786   

Hansteen Holdings plc

     73,000        89,521   

HCP, Inc.

     74,815        3,399,594   

Health Care REIT, Inc.

     44,795        3,002,609   

Healthcare Realty Trust, Inc.

     10,300        262,650   

Hersha Hospitality Trust

     19,250        108,570   

Highwoods Properties, Inc.

     9,200        327,612   

Home Properties, Inc.

     6,000        392,220   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-17

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Real Estate Investment Trusts—(Continued)

  

  

Hospitality Properties Trust

     15,950      $ 419,166   

Host Hotels & Resorts, Inc.

     123,815        2,088,759   

Hudson Pacific Properties, Inc.

     4,850        103,208   

ICADE

     4,812        397,359   

Immobiliare Grande Distribuzione

     15,928        16,088   

Industrial & Infrastructure Fund Investment Corp.

     13        126,256   

Inland Real Estate Corp.

     9,750        99,645   

InnVest Real Estate Investment Trust

     9,700        39,014   

Intervest Offices & Warehouses

     700        16,314   

Intu Properties plc (REIT)

     139,302        663,754   

Investa Office Fund

     65,262        172,652   

Investors Real Estate Trust

     11,500        98,900   

Japan Excellent, Inc. (b)

     17        95,822   

Japan Logistics Fund, Inc.

     15        137,650   

Japan Prime Realty Investment Corp. (REIT) (b)

     165        504,943   

Japan Real Estate Investment Corp.

     124        1,385,896   

Japan Retail Fund Investment Corp.

     433        901,645   

Kenedix Realty Investment Corp.

     25        99,697   

Keppel (REIT)

     149,900        153,135   

Kilroy Realty Corp.

     8,650        458,536   

Kimco Realty Corp.

     68,120        1,459,812   

Kite Realty Group Trust

     10,550        63,617   

Kiwi Income Property Trust

     113,050        92,956   

Klepierre

     20,525        808,971   

Land Securities Group plc

     162,494        2,173,623   

LaSalle Hotel Properties

     10,900        269,230   

Lexington Realty Trust (b)

     24,250        283,240   

Liberty Property Trust

     13,750        508,200   

Link REIT (The)

     476,000        2,326,771   

London & Stamford Property plc

     66,750        105,433   

LTC Properties, Inc.

     3,900        152,295   

Macerich Co. (The)

     23,170        1,412,675   

Mack-Cali Realty Corp.

     10,000        244,900   

Mapletree Commercial Trust

     146,200        136,671   

Mapletree Industrial Trust

     130,250        135,133   

Mapletree Logistics Trust

     163,600        141,967   

Medical Properties Trust, Inc.

     17,100        244,872   

Mercialys S.A. (b)

     4,700        90,620   

Mid-America Apartment Communities, Inc.

     4,850        328,684   

Mirvac Group

     762,987        1,111,510   

Morguard Real Estate Investment Trust

     4,050        62,770   

Mori Hills REIT Investment Corp. (b)

     16        99,715   

Mori Trust Sogo REIT, Inc. (b)

     16        143,285   

Mucklow A & J Group plc

     5,250        29,485   

National Health Investors, Inc.

     2,800        167,608   

National Retail Properties, Inc.

     13,350        459,240   

Nieuwe Steen Investments NV

     6,243        39,955   

Nippon Accommodations Fund, Inc.

     18        117,879   

Nippon Building Fund, Inc. (b)

     142        1,645,554   

Nippon Prologis REIT, Inc.

     28        244,003   

Nomura Real Estate Master Fund, Inc. (a)

     190        188,506   

Nomura Real Estate Office Fund, Inc. (b)

     61        267,564   

Northern Property Real Estate Investment Trust

     3,650        95,128   

Real Estate Investment Trusts—(Continued)

  

  

NorthWest Healthcare Properties Real Estate Investment Trust

     3,400      $ 37,081   

Omega Healthcare Investors, Inc.

     13,250        411,015   

Orix JREIT, Inc. (b)

     185        212,003   

Parkway Properties, Inc.

     4,950        82,962   

Pebblebrook Hotel Trust

     7,000        180,950   

Pennsylvania Real Estate Investment Trust

     7,250        136,880   

Piedmont Office Realty Trust, Inc. - Class A

     19,300        345,084   

Plum Creek Timber Co., Inc.

     8,635        402,995   

Post Properties, Inc.

     6,200        306,838   

Premier Investment Corp.

     18        69,210   

Primary Health Properties plc (b)

     10,704        53,366   

Prime Office REIT-AG

     4,450        20,682   

ProLogis, Inc.

     81,580        3,077,198   

PS Business Parks, Inc.

     2,100        151,557   

Public Storage

     24,125        3,699,086   

Pure Industrial Real Estate Trust

     15,500        67,795   

Ramco-Gershenson Properties Trust

     6,750        104,828   

Realty Income Corp.

     22,416        939,679   

Regency Centers Corp.

     10,500        533,505   

Retail Opportunity Investments Corp.

     7,550        104,945   

RioCan Real Estate Investment Trust

     33,900        814,541   

RLJ Lodging Trust

     14,000        314,860   

Rouse Properties, Inc. (b)

     2,600        51,012   

Sabra Health Care REIT, Inc.

     4,250        110,968   

Saul Centers, Inc.

     1,450        64,467   

Segro plc

     154,245        651,876   

Senior Housing Properties Trust

     21,500        557,495   

Shaftesbury plc

     28,550        258,275   

Silver Bay Realty Trust Corp.

     4,250        70,380   

Simon Property Group, Inc.

     51,410        8,118,667   

SL Green Realty Corp.

     10,500        925,995   

Societe de la Tour Eiffel (b)

     600        35,376   

Societe Immobiliere de Location pour l’Industrie et le Commerce

     950        97,902   

Sovran Self Storage, Inc.

     3,600        233,244   

Spirit Realty Capital, Inc. (b)

     6,700        118,724   

STAG Industrial, Inc.

     4,800        95,760   

Stockland

     470,129        1,488,870   

Strategic Hotels & Resorts, Inc. (a)

     19,100        169,226   

Sun Communities, Inc.

     3,950        196,552   

Sunstone Hotel Investors, Inc. (a)

     18,600        224,688   

Suntec Real Estate Investment Trust

     234,200        290,994   

Tanger Factory Outlet Centers, Inc.

     10,750        359,695   

Taubman Centers, Inc.

     7,300        548,595   

Tokyu REIT, Inc.

     16        93,200   

Top REIT, Inc.

     14        62,805   

UDR, Inc.

     28,600        729,014   

Unibail-Rodamco SE

     3,123        727,644   

Unibail-Rodamco SE (REIT)

     16,647        3,859,973   

United Urban Investment Corp.

     444        597,227   

Universal Health Realty Income Trust

     1,450        62,539   

Urstadt Biddle Properties, Inc. - Class A

     2,650        53,451   

Vastned Retail NV

     2,150        87,832   

Ventas, Inc.

     49,442        3,434,241   

Vornado Realty Trust

     28,190        2,335,541   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-18

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Real Estate Investment Trusts—(Continued)

  

  

Warehouses De Pauw SCA

     1,150      $ 73,007   

Washington Real Estate Investment Trust

     7,500        201,825   

Weingarten Realty Investors

     12,400        381,548   

Wereldhave Belgium NV

     250        27,451   

Wereldhave NV

     2,500        162,284   

Westfield Group

     435,908        4,547,157   

Westfield Retail Trust (REIT)

     611,785        1,726,850   

Weyerhaeuser Co.

     28,840        821,652   

Winthrop Realty Trust

     3,300        39,699   

Workspace Group plc

     11,900        69,995   

WP Carey, Inc.

     6,650        440,030   
   

 

 

  
      120,938,889   
   

 

 

  

Real Estate Management & Development—1.1%

  

Aeon Mall Co., Ltd.

     16,147        400,068   

Agile Property Holdings, Ltd.

     142,900        152,947   

Allreal Holding AG (a)

     1,100        154,640   

Azrieli Group

     3,150        93,508   

Brookfield Office Properties, Inc. (b)

     28,600        475,624   

CA Immobilien Anlagen AG (a)

     8,350        96,198   

Capital & Counties Properties plc

     74,900        373,628   

CapitaLand, Ltd.

     530,100        1,280,464   

CapitaMalls Asia, Ltd. (b)

     282,988        405,424   

Castellum AB

     18,750        253,826   

CBRE Group, Inc. - Class A (a)

     16,155        377,381   

Cheung Kong Holdings, Ltd.

     130,500        1,763,678   

City Developments, Ltd. (b)

     105,300        885,531   

Citycon Oyj

     26,250        81,515   

Conwert Immobilien Invest SE (a)

     6,900        68,203   

Country Garden Holdings Co., Ltd.

     416,803        213,821   

Daejan Holdings plc

     600        33,374   

Daito Trust Construction Co., Ltd.

     6,844        645,258   

Daiwa House Industry Co., Ltd.

     47,810        892,399   

Deutsche Euroshop AG

     5,250        208,829   

Deutsche Wohnen AG

     18,350        311,378   

Development Securities plc

     13,950        38,712   

DIC Asset AG (b)

     2,600        25,809   

Fabege AB

     14,850        145,593   

Fastighets AB Balder - B Shares (a)

     10,350        74,770   

First Capital Realty, Inc. (b)

     9,450        160,390   

Forest City Enterprises, Inc. - Class A (a)

     15,200        272,232   

GAGFAH S.A. (a)

     8,900        109,605   

Global Logistic Properties, Ltd.

     633,168        1,365,935   

Grainger plc

     46,950        103,507   

GSW Immobilien AG

     5,800        223,597   

Hang Lung Properties, Ltd.

     465,700        1,616,818   

Helical Bar plc

     11,300        43,454   

Henderson Land Development Co., Ltd.

     223,750        1,329,715   

Hongkong Land Holdings, Ltd.

     134,750        922,998   

Hufvudstaden AB - A Shares

     12,650        151,264   

Hulic Co., Ltd. (b)

     58,512        627,812   

Hysan Development Co., Ltd.

     130,900        559,476   

IMMOFINANZ AG (a)

     90,201        336,825   

IVG Immobilien AG (a) (b)

     16,600        5,006   

Keppel Land, Ltd.

     153,350        402,705   

Kerry Properties, Ltd.

     134,150        520,780   

Real Estate Management & Development—(Continued)

  

Killam Properties, Inc. (b)

     5,800      $ 59,009   

Klovern AB

     9,300        37,455   

Kungsleden AB

     15,600        90,963   

LEG Immobilien AG (a)

     3,050        158,545   

Lend Lease Group

     51,005        387,085   

Mitsubishi Estate Co., Ltd.

     262,644        6,994,966   

Mitsui Fudosan Co., Ltd.

     175,068        5,149,949   

Mobimo Holding AG (a)

     700        142,540   

New World China Land, Ltd.

     296,350        113,826   

New World Development Co., Ltd.

     782,200        1,075,551   

Nomura Real Estate Holdings, Inc.

     25,259        558,840   

Norwegian Property ASA

     59,600        75,487   

NTT Urban Development Corp.

     233        286,188   

PSP Swiss Property AG (a)

     4,550        393,540   

Quintain Estates & Development plc (a)

     52,050        61,704   

Safestore Holdings plc

     21,350        40,326   

Schroder Real Estate Investment Trust, Ltd.

     40,650        26,273   

Shimao Property Holdings, Ltd.

     158,500        311,802   

Shui On Land, Ltd.

     345,650        100,836   

Sino Land Co., Ltd.

     616,950        859,353   

Soho China, Ltd.

     175,950        138,566   

Sponda Oyj

     27,500        129,250   

St. Modwen Properties plc

     18,850        77,689   

Sumitomo Realty & Development Co., Ltd.

     88,245        3,519,515   

Sun Hung Kai Properties, Ltd.

     325,650        4,186,902   

Swire Pacific, Ltd. - Class A

     63,900        765,293   

Swire Properties, Ltd.

     243,450        719,882   

Swiss Prime Site AG (a)

     11,377        836,166   

TAG Immobilien AG

     14,150        153,991   

Technopolis plc

     7,800        43,675   

Tokyo Tatemono Co., Ltd.

     86,850        723,466   

Tokyu Land Corp.

     90,122        827,040   

Unite Group plc

     20,150        111,272   

UOL Group, Ltd.

     105,650        560,087   

Wallenstam AB - B Shares

     11,700        153,228   

Wharf Holdings, Ltd.

     315,850        2,629,722   

Wheelock & Co., Ltd.

     85,800        425,820   

Wihlborgs Fastigheter AB

     7,550        111,902   

Wing Tai Holdings, Ltd.

     50,850        81,797   

Yanlord Land Group, Ltd. (b)

     75,700        73,139   
   

 

 

  
      51,397,337   
   

 

 

  

Road & Rail—0.4%

    

Asciano, Ltd.

     91,420        417,407   

Aurizon Holdings, Ltd.

     190,855        722,581   

Central Japan Railway Co.

     13,555        1,662,247   

ComfortDelGro Corp., Ltd.

     188,700        271,531   

CSX Corp.

     55,700        1,291,683   

DSV A/S

     17,754        431,577   

East Japan Railway Co.

     31,726        2,466,555   

Hankyu Hanshin Holdings, Inc.

     107,000        609,586   

Kansas City Southern

     6,020        637,879   

Keikyu Corp. (b)

     43,373        372,619   

Keio Corp.

     53,672        369,096   

Keisei Electric Railway Co., Ltd.

     25,811        241,791   

Kintetsu Corp. (b)

     152,710        671,370   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-19

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Road & Rail—(Continued)

  

MTR Corp., Ltd.

     135,700      $ 496,790   

Nippon Express Co., Ltd.

     74,307        352,906   

Norfolk Southern Corp.

     17,090        1,241,588   

Odakyu Electric Railway Co., Ltd. (b)

     58,552        571,520   

Ryder System, Inc.

     2,730        165,957   

Tobu Railway Co., Ltd.

     95,045        489,736   

Tokyu Corp.

     106,569        697,417   

Union Pacific Corp.

     25,465        3,928,740   

West Japan Railway Co.

     15,841        670,572   
   

 

 

  
      18,781,148   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.5%

  

Advanced Micro Devices, Inc. (a) (b)

     32,160        131,213   

Advantest Corp. (b)

     14,107        231,330   

Altera Corp.

     17,170        566,438   

Analog Devices, Inc.

     16,010        721,411   

Applied Materials, Inc.

     66,360        989,428   

ARM Holdings plc

     131,269        1,588,328   

ASM Pacific Technology, Ltd.

     22,500        247,515   

ASML Holding NV

     29,599        2,322,158   

Broadcom Corp. - Class A

     27,505        928,569   

First Solar, Inc. (a) (b)

     3,180        142,241   

Infineon Technologies AG

     101,306        847,585   

Intel Corp. (c)

     268,270        6,497,499   

KLA-Tencor Corp.

     8,940        498,226   

Lam Research Corp. (a)

     9,737        431,739   

Linear Technology Corp.

     12,320        453,869   

LSI Corp. (a)

     29,880        213,343   

Mellanox Technologies, Ltd. (a)

     3,430        168,436   

Microchip Technology, Inc. (b)

     10,300        383,675   

Micron Technology, Inc. (a)

     54,510        781,128   

NVIDIA Corp. (b)

     33,160        465,235   

Rohm Co., Ltd.

     9,078        366,176   

STMicroelectronics NV (b)

     59,703        533,913   

Sumco Corp.

     10,900        120,111   

Teradyne, Inc. (a) (b)

     10,000        175,700   

Texas Instruments, Inc.

     60,980        2,126,373   

Tokyo Electron, Ltd.

     16,125        816,281   

Xilinx, Inc.

     13,990        554,144   
   

 

 

  
      23,302,064   
   

 

 

  

Software—0.8%

    

Adobe Systems, Inc. (a)

     26,370        1,201,417   

Autodesk, Inc. (a)

     12,125        411,523   

BMC Software, Inc. (a)

     7,795        351,866   

CA, Inc.

     18,305        524,072   

Citrix Systems, Inc. (a)

     10,000        603,300   

Dassault Systemes S.A. (b)

     5,854        716,114   

Electronic Arts, Inc. (a)

     16,980        390,031   

GungHo Online Entertainment, Inc. (a) (b)

     330        359,426   

Intuit, Inc.

     14,845        905,990   

Konami Corp. (b)

     9,503        201,056   

Microsoft Corp. (c)

     404,575        13,969,975   

Nexon Co., Ltd.

     10,154        112,018   

NICE Systems, Ltd.

     5,461        201,393   

Nintendo Co., Ltd.

     9,987        1,178,253   

Software—(Continued)

  

Oracle Corp. (c)

     204,190      $ 6,272,717   

Oracle Corp. Japan

     3,633        151,009   

Red Hat, Inc. (a)

     10,305        492,785   

Sage Group plc (The)

     106,153        550,531   

Salesforce.com, Inc. (a)

     27,660        1,056,059   

SAP AG

     86,608        6,341,948   

Symantec Corp.

     37,660        846,220   

Trend Micro, Inc. (b)

     9,924        315,225   
   

 

 

  
      37,152,928   
   

 

 

  

Specialty Retail—0.6%

    

ABC-Mart, Inc.

     2,500        97,555   

Abercrombie & Fitch Co. - Class A

     4,355        197,064   

AutoNation, Inc. (a)

     2,055        89,166   

AutoZone, Inc. (a)

     2,075        879,157   

Bed Bath & Beyond, Inc. (a)

     12,405        879,514   

Best Buy Co., Inc.

     14,165        387,129   

CarMax, Inc. (a)

     12,200        563,152   

Fast Retailing Co., Ltd.

     5,079        1,713,261   

GameStop Corp. - Class A (b)

     6,575        276,347   

Gap, Inc. (The)

     15,920        664,342   

Hennes & Mauritz AB - B Shares

     89,245        2,922,253   

Home Depot, Inc. (The)

     80,880        6,265,774   

Inditex S.A.

     20,508        2,529,713   

Kingfisher plc

     222,166        1,163,026   

L Brands, Inc.

     12,810        630,893   

Lowe’s Cos., Inc.

     61,170        2,501,853   

Nitori Holdings Co., Ltd.

     3,258        262,982   

O’Reilly Automotive, Inc. (a)

     6,375        717,952   

PetSmart, Inc.

     5,830        390,552   

Ross Stores, Inc.

     11,970        775,776   

Sanrio Co., Ltd. (b)

     4,226        196,661   

Shimamura Co., Ltd.

     2,100        255,157   

Staples, Inc. (b)

     36,545        579,604   

Tiffany & Co.

     6,340        461,806   

TJX Cos., Inc.

     39,470        1,975,868   

Urban Outfitters, Inc. (a)

     5,840        234,885   

USS Co., Ltd.

     2,068        262,527   

Yamada Denki Co., Ltd. (b)

     8,630        350,258   
   

 

 

  
      28,224,227   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.5%

  

Adidas AG

     19,666        2,125,562   

Asics Corp.

     14,878        235,695   

Burberry Group plc

     41,577        857,712   

Christian Dior S.A.

     5,125        823,390   

Cie Financiere Richemont S.A. - Class A

     49,067        4,304,236   

Coach, Inc.

     15,310        874,048   

Fossil Group, Inc. (a)

     2,919        301,562   

Hugo Boss AG

     2,978        327,329   

Kering (b)

     7,113        1,439,801   

Li & Fung, Ltd.

     548,300        746,293   

Luxottica Group S.p.A.

     15,588        784,755   

LVMH Moet Hennessy Louis Vuitton S.A.

     23,860        3,842,327   

NIKE, Inc. - Class B

     39,510        2,515,997   

PVH Corp.

     4,308        538,715   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-20

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description       
    
Shares		     Value  

Textiles, Apparel & Luxury Goods—(Continued)

  

Ralph Lauren Corp.

     3,285      $ 570,736   

Swatch Group AG (The)

     6,980        1,971,285   

VF Corp.

     4,745        916,070   

Yue Yuen Industrial Holdings, Ltd.

     69,600        179,282   
   

 

 

  
      23,354,795   
   

 

 

  

Thrifts & Mortgage Finance—0.0%

  

Hudson City Bancorp, Inc.

     25,435        232,985   

People’s United Financial, Inc. (b)

     18,745        279,300   
   

 

 

  
      512,285   
   

 

 

  

Tobacco—0.7%

    

Altria Group, Inc.

     108,975        3,813,035   

British American Tobacco plc

     181,401        9,315,558   

Imperial Tobacco Group plc

     92,184        3,202,949   

Japan Tobacco, Inc.

     103,398        3,654,443   

Lorillard, Inc.

     21,090        921,211   

Philip Morris International, Inc. (c)

     90,415        7,831,747   

Reynolds American, Inc.

     17,530        847,926   

Swedish Match AB

     19,419        686,524   
   

 

 

  
      30,273,393   
   

 

 

  

Trading Companies & Distributors—0.3%

  

Brenntag AG

     4,841        735,129   

Bunzl plc

     31,296        610,840   

Fastenal Co.

     14,410        660,699   

ITOCHU Corp.

     141,010        1,628,143   

Marubeni Corp.

     154,709        1,034,341   

Mitsubishi Corp.

     132,085        2,262,918   

Mitsui & Co., Ltd.

     163,305        2,051,829   

Noble Group, Ltd.

     395,000        302,260   

Rexel S.A.

     14,058        316,153   

Sojitz Corp.

     117,600        195,673   

Sumitomo Corp.

     105,813        1,319,872   

Toyota Tsusho Corp.

     20,026        516,367   

Travis Perkins plc

     23,024        511,574   

Wolseley plc

     25,756        1,192,053   

WW Grainger, Inc.

     3,280        827,150   
   

 

 

  
      14,165,001   
   

 

 

  

Transportation Infrastructure—0.1%

  

Abertis Infraestructuras S.A.

     34,622        601,329   

Aeroports de Paris (b)

     2,791        271,414   

Atlantia S.p.A.

     31,016        503,808   

Auckland International Airport, Ltd.

     99,468        228,264   

Fraport AG Frankfurt Airport Services Worldwide (b)

     3,492        211,053   

Groupe Eurotunnel S.A.

     51,698        392,348   

Hutchison Port Holdings Trust - Class U

     489,902        360,057   

Kamigumi Co., Ltd.

     21,677        174,645   

Koninklijke Vopak NV

     6,659        392,623   

Mitsubishi Logistics Corp.

     11,300        157,823   

Sydney Airport

     17,440        53,835   

Transurban Group (b)

     132,303        816,130   
   

 

 

  
      4,163,329   
   

 

 

  

Water Utilities—0.0%

    

Severn Trent plc

     22,416      $ 565,290   

United Utilities Group plc

     63,846        663,160   
   

 

 

  
      1,228,450   
   

 

 

  

Wireless Telecommunication Services—0.6%

  

Crown Castle International Corp. (a)

     15,760        1,140,866   

KDDI Corp.

     50,588        2,632,160   

Millicom International Cellular S.A.

     5,940        428,266   

NTT DoCoMo, Inc.

     1,437        2,232,875   

Softbank Corp.

     89,232        5,210,119   

Sprint Nextel Corp. (a)

     160,855        1,129,202   

StarHub, Ltd.

     56,000        184,663   

Tele2 AB - B Shares

     29,789        348,542   

Vodafone Group plc

     4,599,519        13,199,318   
   

 

 

  
      26,506,011   
   

 

 

  

Total Common Stocks
(Cost $1,702,892,738)

       1,944,017,489   
   

 

 

  
U.S. Treasury & Government Agencies—25.0%   

Federal Agencies—3.8%

    

Federal Home Loan Banks

    

0.375%, 11/27/13 (b)

     5,960,000        5,965,674   

0.375%, 01/29/14 (b)

     5,965,000        5,971,001   

2.500%, 06/13/14

     4,725,000        4,826,951   

4.750%, 12/16/16

     1,785,000        2,016,277   

Federal Home Loan Mortgage Corp.

    

0.750%, 11/25/14

     24,845,000        25,006,716   

0.750%, 01/12/18 (b)

     10,255,000        9,928,973   

0.875%, 03/07/18 (b)

     4,500,000        4,354,551   

2.000%, 08/25/16 (b)

     3,900,000        4,040,361   

2.375%, 01/13/22 (b)

     16,225,000        15,767,082   

4.375%, 07/17/15

     4,305,000        4,649,555   

5.000%, 07/15/14

     7,710,000        8,090,704   

6.250%, 07/15/32 (b)

     2,480,000        3,286,560   

Federal National Mortgage Association

    

0.500%, 08/09/13 (b)

     5,940,000        5,942,257   

0.500%, 05/27/15 (b)

     6,510,000        6,520,618   

0.500%, 03/30/16

     12,850,000        12,777,989   

0.875%, 02/08/18

     20,645,000        20,043,921   

1.250%, 01/30/17 (b)

     14,970,000        15,061,616   

2.375%, 04/11/16 (b)

     966,000        1,009,990   

2.750%, 03/13/14

     4,560,000        4,640,967   

3.875%, 07/12/13 (b)

     799,000        799,924   

4.625%, 10/15/13

     10,000        10,130   

5.250%, 09/15/16 (b)

     5,445,000        6,196,720   

5.375%, 06/12/17 (b)

     756,000        874,985   

6.625%, 11/15/30

     1,650,000        2,239,093   

7.250%, 05/15/30

     1,941,000        2,781,995   
   

 

 

  
      172,804,610   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-21

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

U.S. Treasury—21.2%

    

U.S. Treasury Bonds

    

2.750%, 08/15/42

     8,785,000      $ 7,582,553   

2.875%, 05/15/43

     5,750,000        5,088,750   

3.125%, 11/15/41

     15,840,000        14,850,000   

3.125%, 02/15/42

     5,645,000        5,285,131   

3.125%, 02/15/43 (b)

     8,925,000        8,330,934   

3.500%, 02/15/39 (b)

     5,264,000        5,349,540   

3.750%, 08/15/41

     8,025,000        8,472,643   

4.250%, 05/15/39

     1,235,000        1,419,865   

4.375%, 11/15/39

     8,320,000        9,752,604   

4.375%, 05/15/40 (b)

     6,650,000        7,799,200   

4.375%, 05/15/41 (b)

     7,495,000        8,790,226   

4.750%, 02/15/37

     1,740,000        2,146,725   

5.375%, 02/15/31 (b)

     14,855,000        19,350,955   

6.000%, 02/15/26 (b)

     7,077,000        9,500,872   

6.250%, 08/15/23

     4,620,000        6,199,462   

6.250%, 05/15/30

     1,815,000        2,571,345   

7.250%, 05/15/16 (e)

     13,085,000        15,550,711   

8.875%, 02/15/19 (b)

     2,158,000        3,017,829   

U.S. Treasury Notes
0.250%, 11/30/13 (b)

     10,620,000        10,626,223   

0.250%, 02/28/14

     11,915,000        11,923,841   

0.250%, 09/15/14

     18,255,000        18,261,426   

0.250%, 01/31/15 (b)

     18,915,000        18,911,312   

0.250%, 05/15/15

     30,080,000        30,030,639   

0.375%, 11/15/14 (b)

     18,250,000        18,287,066   

0.375%, 04/15/15

     23,970,000        23,991,525   

0.625%, 11/30/17

     19,755,000        19,259,584   

0.750%, 08/15/13

     23,053,000        23,071,903   

0.750%, 12/31/17 (b)

     19,375,000        18,955,706   

0.750%, 03/31/18 (b)

     30,165,000        29,361,374   

0.875%, 11/30/16 (e)

     17,792,000        17,803,120   

0.875%, 01/31/17

     21,673,700        21,639,846   

0.875%, 02/28/17 (b)

     17,235,000        17,191,912   

0.875%, 01/31/18

     18,995,000        18,656,661   

1.000%, 01/15/14 (b)

     18,767,500        18,856,214   

1.000%, 09/30/16

     17,635,000        17,754,865   

1.000%, 05/31/18 (b)

     36,865,000        36,231,364   

1.250%, 02/15/14

     5,430,000        5,467,331   

1.250%, 08/31/15 (b)

     25,605,000        26,061,076   

1.250%, 01/31/19 (b)

     6,545,000        6,440,175   

1.625%, 11/15/22

     16,550,000        15,449,690   

1.750%, 05/15/23 (b)

     30,415,000        28,485,533   

1.875%, 10/31/17

     13,345,000        13,730,751   

2.000%, 11/30/13

     24,881,600        25,075,975   

2.000%, 01/31/16

     17,020,000        17,662,233   

2.000%, 04/30/16

     21,417,000        22,240,227   

2.000%, 11/15/21

     17,230,000        16,932,507   

2.000%, 02/15/22 (b)

     9,370,000        9,164,300   

2.000%, 02/15/23 (b)

     9,615,000        9,253,688   

2.125%, 12/31/15 (b)

     15,450,000        16,069,205   

2.125%, 08/15/21

     11,970,000        11,921,378   

2.250%, 01/31/15 (b)

     18,460,000        19,034,715   

2.250%, 11/30/17 (b)

     16,220,000        16,948,635   

2.375%, 07/31/17

     15,830,100        16,641,393   

2.625%, 07/31/14

     24,005,000        24,632,323   

U.S. Treasury—(Continued)

    

U.S. Treasury Notes
2.625%, 01/31/18 (b)

     18,655,000      $ 19,797,619   

2.625%, 08/15/20 (b)

     6,995,000        7,309,775   

2.625%, 11/15/20 (b) (e)

     15,004,000        15,633,463   

2.750%, 02/15/19

     4,678,000        4,979,146   

3.125%, 10/31/16 (e)

     28,880,000        31,068,555   

3.125%, 01/31/17 (b)

     14,130,000        15,242,737   

3.250%, 07/31/16 (e)

     18,515,000        19,944,136   

3.500%, 05/15/20 (b)

     9,995,000        11,057,748   

3.625%, 02/15/20 (b)

     11,270,000        12,572,215   

3.625%, 02/15/21 (b)

     16,280,000        18,094,960   
   

 

 

  
      968,785,415   
   

 

 

  

Total U.S. Treasury & Government Agencies (Cost $1,148,767,878)

       1,141,590,025   
   

 

 

  
Foreign Government—4.3%   

Sovereign—4.3%

    

Australia Government Bonds
5.250%, 03/15/19 (AUD)

     510,000        515,241   

5.750%, 05/15/21 (AUD)

     1,715,000        1,799,533   

6.000%, 02/15/17 (AUD)

     230,000        233,041   

Austria Government Bonds
3.400%, 11/22/22 (144A) (EUR)

     1,165,000        1,695,516   

4.000%, 09/15/16 (144A) (EUR)

     1,850,000        2,664,124   

4.150%, 03/15/37 (144A) (EUR)

     240,000        385,686   

Belgium Government Bonds
3.750%, 09/28/15 (EUR)

     610,000        850,612   

4.250%, 09/28/21 (EUR)

     900,000        1,348,964   

4.250%, 03/28/41 (EUR)

     390,000        575,781   

5.500%, 09/28/17 (EUR)

     900,000        1,378,544   

5.500%, 03/28/28 (EUR)

     815,000        1,363,928   

Bundesrepublik Deutschland
2.000%, 01/04/22 (EUR)

     1,220,000        1,655,916   

2.500%, 01/04/21 (EUR)

     2,715,000        3,856,277   

2.500%, 07/04/44 (EUR)

     380,000        496,701   

4.000%, 07/04/16 (EUR)

     4,990,000        7,204,445   

4.250%, 07/04/39 (EUR)

     920,000        1,608,506   

5.500%, 01/04/31 (EUR)

     1,245,000        2,356,285   

Canadian Government Bonds
2.750%, 06/01/22 (CAD)

     1,075,000        1,054,250   

3.500%, 06/01/20 (CAD)

     420,000        434,165   

4.000%, 06/01/16 (CAD)

     1,370,000        1,398,645   

4.000%, 06/01/41 (CAD)

     675,000        776,279   

5.750%, 06/01/29 (CAD)

     385,000        506,646   

Denmark Government Bonds
4.000%, 11/15/15 (DKK)

     500,000        94,998   

4.000%, 11/15/19 (DKK)

     7,430,000        1,526,741   

4.500%, 11/15/39 (DKK)

     1,645,000        404,324   

Finland Government Bond
3.500%, 04/15/21 (EUR)

     915,000        1,350,485   

France Government Bond OAT
2.250%, 10/25/22 (EUR)

     1,410,000        1,833,166   

3.250%, 04/25/16 (EUR)

     2,885,000        4,032,772   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-22

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Foreign Government—(Continued)

 

Security Description       
Principal
Amount*		     Value  

Sovereign—(Continued)

    

France Government Bond OAT
3.750%, 04/25/21 (EUR)

     3,920,000      $ 5,791,809   

4.500%, 04/25/41 (EUR)

     1,345,000        2,130,975   

5.500%, 04/25/29 (EUR)

     1,310,000        2,257,292   

French Treasury Note BTAN
1.750%, 02/25/17 (EUR)

     3,305,000        4,435,458   

Italy Buoni Poliennali Del Tesoro
3.000%, 04/01/14 (EUR)

     1,000,000        1,319,745   

3.750%, 12/15/13 (EUR)

     896,000        1,181,090   

3.750%, 04/15/16 (EUR)

     2,580,000        3,470,858   

3.750%, 03/01/21 (EUR)

     4,625,000        5,939,459   

5.000%, 08/01/39 (EUR)

     1,010,000        1,321,134   

5.250%, 08/01/17 (EUR)

     2,605,000        3,651,027   

5.250%, 11/01/29 (EUR)

     1,890,000        2,565,656   

5.500%, 11/01/22 (EUR)

     1,270,000        1,773,655   

Japan Government Five Year Bond
0.200%, 06/20/17 (JPY)

     314,800,000        3,170,472   

Japan Government Ten Year Bond
0.800%, 09/20/22 (JPY)

     44,300,000        446,188   

0.800%, 12/20/22 (JPY)

     138,500,000        1,393,287   

1.500%, 12/20/15 (JPY)

     288,600,000        3,006,945   

1.700%, 03/20/17 (JPY)

     1,551,100,000        16,501,418   

1.900%, 06/20/16 (JPY)

     1,140,000,000        12,087,000   

Japan Government Thirty Year Bond
1.900%, 09/20/42 (JPY)

     278,850,000        2,855,176   

2.300%, 03/20/40 (JPY)

     305,700,000        3,410,836   

Japan Government Twenty Year Bond
1.400%, 12/20/22 (JPY)

     876,300,000        9,297,183   

1.700%, 12/20/31 (JPY)

     561,250,000        5,724,077   

1.700%, 09/20/32 (JPY)

     182,400,000        1,847,115   

2.100%, 06/20/29 (JPY)

     683,450,000        7,568,861   

2.100%, 12/20/29 (JPY)

     144,800,000        1,596,082   

2.500%, 12/21/20 (JPY)

     852,300,000        9,751,075   

Mexican Bonos
6.500%, 06/10/21 (MXN)

     29,455,000        2,396,872   

7.250%, 12/15/16 (MXN)

     2,120,000        176,340   

Netherlands Government Bond
2.250%, 07/15/22 (144A) (EUR)

     830,000        1,109,539   

3.750%, 01/15/42 (144A) (EUR)

     190,000        301,994   

4.500%, 07/15/17 (144A) (EUR)

     1,805,000        2,689,400   

5.500%, 01/15/28 (144A) (EUR)

     645,000        1,153,972   

Poland Government Bond
5.500%, 10/25/19 (PLN)

     3,610,000        1,180,880   

South Africa Government Bond
8.250%, 09/15/17 (ZAR)

     12,430,000        1,319,623   

Spain Government Bonds
2.500%, 10/31/13 (EUR)

     665,000        869,925   

3.150%, 01/31/16 (EUR)

     1,465,000        1,923,482   

3.400%, 04/30/14 (EUR)

     1,000,000        1,321,955   

3.800%, 01/31/17 (EUR)

     515,000        681,819   

4.000%, 04/30/20 (EUR)

     3,655,000        4,696,632   

4.200%, 01/31/37 (EUR)

     650,000        725,845   

5.850%, 01/31/22 (EUR)

     785,000        1,110,998   

6.000%, 01/31/29 (EUR)

     190,000        270,798   

Sovereign—(Continued)

    

Sweden Government Bonds
4.500%, 08/12/15 (SEK)

     660,000      $ 105,248   

5.000%, 12/01/20 (SEK)

     6,770,000        1,220,383   

United Kingdom Gilt
2.250%, 03/07/14 (GBP)

     940,000        1,448,507   

3.250%, 01/22/44 (GBP)

     345,000        492,184   

3.750%, 09/07/20 (GBP)

     1,395,000        2,376,102   

4.000%, 09/07/16 (GBP)

     1,170,000        1,961,324   

4.250%, 09/07/39 (GBP)

     2,940,000        5,068,996   

4.750%, 12/07/30 (GBP)

     560,000        1,035,340   

8.000%, 06/07/21 (GBP)

     1,170,000        2,544,345   
   

 

 

  

Total Foreign Government
(Cost $217,842,193)

       196,077,947   
   

 

 

  
Preferred Stocks—0.2%   

Automobiles—0.1%

    

Bayerische Motoren Werke (BMW) AG

     5,036        343,612   

Porsche Automobil Holding SE

     14,397        1,112,342   

Volkswagen AG

     13,595        2,744,643   
   

 

 

  
      4,200,597   
   

 

 

  

Chemicals—0.0%

    

Fuchs Petrolub AG

     3,336        265,160   
   

 

 

  

Household Products—0.1%

    

Henkel AG & Co. KGaA

     16,747        1,571,475   
   

 

 

  

Media—0.0%

    

ProSiebenSat.1 Media AG (a)

     9,769        419,457   
   

 

 

  

Multi-Utilities—0.0%

    

RWE AG (b)

     3,716        114,846   
   

 

 

  

Total Preferred Stocks
(Cost $5,749,880)

       6,571,535   
   

 

 

  
Investment Company Securities—0.0%   

F&C Commercial Property Trust, Ltd.

     56,600        96,866   

IRP Property Investments, Ltd.

     23,750        26,203   

iShares Dow Jones U.S. Real Estate Index Fund (b)

     1,160        77,012   

iShares FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index Fund

     2,400        75,216   

Medicx Fund, Ltd.

     29,750        35,153   

Picton Property Income, Ltd.

     39,350        27,577   

Standard Life Investment Property Income Trust plc

     16,200        14,877   

UK Commercial Property Trust, Ltd.

     46,500        53,960   
   

 

 

  

Total Investment Company Securities
(Cost $401,865)

       406,864   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-23

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Rights—0.0%

 

Security Description   Shares/
Principal
Amount*		     Value  

Hotels, Restaurants & Leisure—0.0%

  

New Hotel, Expires 12/31/13 (a)

     8,603      $ 0   
   

 

 

  

Retail—0.0%

    

Groupe FNAC, Expires 05/16/15 (a) (b)

     7,113        18,545   
   

 

 

  

Total Rights
(Cost $23,705)

       18,545   
   

 

 

  
Short-Term Investments—40.3%   

Mutual Fund—10.4%

    

State Street Navigator Securities Lending MET Portfolio (f)

     477,284,063        477,284,063   
   

 

 

  

U.S. Treasury—1.8%

    

U.S. Treasury Bills

    

0.035%, 07/05/13 (g)

     6,000,000        5,999,977   

0.048%, 09/19/13 (g)

     11,500,000        11,498,786   

0.048%, 09/26/13 (g)

     9,000,000        8,998,967   

0.051%, 09/05/13 (g)

     10,000,000        9,999,083   

0.067%, 07/05/13 (g)

     10,000,000        9,999,927   

0.110%, 08/08/13 (b) (e) (g)

     36,340,000        36,335,857   
   

 

 

  
      82,832,597   
   

 

 

  

Repurchase Agreement—28.1%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $1,283,472,070, on 07/01/13, collateralized by $1,278,170,000 U.S.Government Agency obligations with rates ranging from 0.420% - 4.375%, maturity dates ranging from 02/15/15 - 08/31/17 with a value of $1,309,143,949.

     1,283,471,000        1,283,471,000   
   

 

 

  

Total Short-Term Investments
(Cost $1,843,587,660)

       1,843,587,660   
   

 

 

  

Total Investments—112.3%
(Cost $4,919,265,919) (h)

       5,132,270,065   

Other assets and liabilities
(net)—(12.3)%

       (561,849,749 ) 
   

 

 

  
Net Assets—100.0%     $ 4,570,420,316   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $464,301,718 and the collateral received consisted of cash in the amount of $477,284,063 and non-cash collateral with a value of $2,298,928. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and are held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Consolidated Statement of Assets and Liabilities.
(c) All or a portion of the security was pledged as collateral against open futures contracts. As of June 30, 2013, the market value of securities pledged was $88,387,386.
(d) Affiliated Issuer. (See Note 8 of the Notes to Consolidated Financial Statements for a summary of transactions in securities of affiliated issuers.)
(e) All or a portion of the security was pledged as collateral against open swap contracts and open forward foreign currency exchange contracts. As of June 30, 2013, the market value of securities pledged was $66,482,349.
(f) Represents investment of cash collateral received from securities lending transactions.
(g) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(h) As of June 30, 2013, the aggregate cost of investments was $4,919,265,919. The aggregate unrealized appreciation and depreciation of investments were $310,944,425 and $(97,940,279), respectively, resulting in net unrealized appreciation of $213,004,146.
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $10,000,231, which is 0.2% of net assets.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.
(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(DKK)— Danish Krone
(EUR)— Euro
(GBP)— British Pound
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(PLN)— Polish Zloty
(REIT)— A Real Estate Investment Trust is a pooled investment vehicle that invests primarily in income-producing real estate or real estate related loans or interest.
(SEK)— Swedish Krona
(ZAR)— South African Rand

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-24

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

       

Counterparty

      Settlement Date      In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  

AUD

     4,983,000         BNP Paribas S.A.      09/17/13      $ 4,556,854         $ (25,083 ) 

AUD

     8,278,000         BNP Paribas S.A.      09/17/13        7,637,862           (109,466 ) 

AUD

     9,149,000         Deutsche Bank AG      09/17/13        8,351,362           (30,839 ) 

AUD

     26,277,000         Goldman Sachs & Co.      09/17/13        24,208,474           (310,956 ) 

CAD

     537,063         Deutsche Bank AG      07/18/13        519,990           (9,522 ) 

CHF

     8,286,000         UBS AG      09/17/13        8,763,849           14,627   

EUR

     842,254         UBS AG      08/07/13        1,103,116           (6,636 ) 

EUR

     3,426,000         Goldman Sachs & Co.      09/17/13        4,461,098           (150 ) 

EUR

     10,263,000         Royal Bank of Scotland plc      09/17/13        13,443,504           (80,192 ) 

EUR

     7,588,000         State Street Bank and Trust      09/17/13        9,968,128           (87,897 ) 

GBP

     386,962         Royal Bank of Scotland plc      08/07/13        598,025           (9,618 ) 

GBP

     5,000,000         Citibank N.A.      09/17/13        7,687,140           (86,218 ) 

GBP

     2,971,000         Royal Bank of Scotland plc      09/17/13        4,582,188           (65,720 ) 

GBP

     6,929,000         Royal Bank of Scotland plc      09/17/13        10,686,632           (153,274 ) 

JPY

     45,732,860         Barclays Bank plc      07/19/13        469,210           (8,071 ) 

JPY

     389,310,577         Royal Bank of Scotland plc      07/19/13        4,075,399           (149,858 ) 

JPY

     902,295,000         BNP Paribas S.A.      09/17/13        9,581,524           (480,784 ) 

JPY

     5,244,605,000         Barclays Bank plc      09/17/13        53,671,093           (772,886 ) 

JPY

     6,751,165,000         Barclays Bank plc      09/17/13        68,737,375           (643,682 ) 

JPY

     1,305,556,000         Goldman Sachs & Co.      09/17/13        13,039,261           128,856   

MXN

     1,045,628         State Street Bank and Trust      07/11/13        78,100           2,532   

Contracts to Deliver

                         
AUD     2,840,728         Royal Bank of Scotland plc      07/25/13      $ 2,687,775         $ 94,173   
AUD     7,932,000         BNP Paribas S.A.      09/17/13        7,231,255           17,528   
AUD     14,274,000         Barclays Bank plc      09/17/13        13,376,122           394,687   
AUD     43,680,000         UBS AG      09/17/13        41,241,127           1,516,516   
CAD     5,077,305         Deutsche Bank AG      07/18/13        4,905,040           79,151   
CAD     4,936,000         Royal Bank of Canada      09/17/13        4,836,513           151,809   
CHF     10,797,000         UBS AG      09/17/13        11,647,878           209,162   
DKK     11,541,518         Royal Bank of Scotland plc      07/11/13        2,004,084           (10,292 ) 
EUR     409,940         State Street Bank and Trust      08/07/13        534,762           1,087   
EUR     68,326,285         UBS AG      08/07/13        89,394,011           444,180   
EUR     7,039,000         Barclays Bank plc      09/17/13        9,302,630           137,244   
EUR     11,871,000         Deutsche Bank AG      09/17/13        15,666,420           209,353   
EUR     5,751,000         UBS AG      09/17/13        7,516,977           28,678   
GBP     10,305,229         Royal Bank of Scotland plc      08/07/13        15,888,345           218,408   
GBP     6,662,000         HSBC Bank USA      09/17/13        10,291,624           164,156   
GBP     1,899,000         HSBC Bank USA      09/17/13        2,947,837           61,007   
GBP     3,368,000         Standard Chartered Bank      09/17/13        5,147,011           27,030   
JPY     60,072,070         Deutsche Bank AG      07/19/13        599,689           (6,036 ) 
JPY     8,235,085,225         Goldman Sachs & Co.      07/19/13        81,568,609           (1,468,337 ) 
JPY     9,926,310,000         BNP Paribas S.A.      09/17/13        102,284,587           2,165,703   
JPY     1,864,716,000         BNP Paribas S.A.      09/17/13        19,159,189           351,265   
JPY     1,305,556,000         BNP Paribas S.A.      09/17/13        13,452,961           284,844   
JPY     2,175,865,000         Goldman Sachs & Co.      09/17/13        22,244,128           297,889   
JPY     810,853,000         Royal Bank of Scotland plc      09/17/13        8,500,657           322,220   
MXN     36,839,708         BNP Paribas S.A.      07/11/13        2,973,102           132,248   
PLN     3,930,438         Goldman Sachs & Co.      07/19/13        1,200,610           18,973   
SEK     9,336,852         HSBC Bank USA      07/11/13        1,402,559           10,559   
ZAR     13,168,853         Royal Bank of Scotland plc      07/19/13        1,321,351           (7,556 ) 
                     

 

 

  

Net Unrealized Appreciation

  

      $ 2,960,812   
                     

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-25

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		    Number of
Contracts		      Notional Amount      Unrealized
Appreciation/
(Depreciation)		  

Canada Government Bond 10 Year Futures

    09/19/13      14         CAD         1,913,416       $ (70,054 ) 

Euro Stoxx 50 Index Futures

    09/20/13      627         EUR         16,061,560         296,646   

FTSE 100 Index Futures

    09/20/13      100         GBP         6,085,016         116,329   

German Euro Bund Futures

    09/06/13      84         EUR         11,946,001         (75,913 ) 

German Euro Buxl Futures

    09/06/13      57         EUR         7,384,828         (75,559 ) 

Japanese 10 Year Government Bond Mini Futures

    09/10/13      36         JPY         5,137,714,260         (5,185 ) 

MSCI EAFE E-Mini Index Futures

    09/20/13      41         USD         3,374,117         (12,732 ) 

Russell 2000 Mini Index Futures

    09/20/13      683         USD         66,773,806         (201,796 ) 

S&P 500 E-Mini Index Futures

    09/20/13      4,230         USD         344,730,722         (6,478,772 ) 

S&P Midcap 400 E-Mini Index Futures

    09/20/13      1,321         USD         153,783,245         (824,655 ) 

Topix Index Futures

    09/12/13      188         JPY         2,063,241,360         635,598   

U.S. Treasury Note 10 Year Futures

    09/19/13      1,061         USD         137,194,559         (2,911,746 ) 

Ultra Long U.S. Treasury Bond Futures

    09/19/13      390         USD         59,525,932         (2,074,057 ) 

United Kingdom Long Gilt Bond Futures

    09/26/13      68         GBP         7,766,263         (238,885 ) 
              

 

 

  

Net Unrealized Depreciation

  

    $ (11,920,781 ) 
              

 

 

  

Total Return Swap Agreements

 

Pay/Receive
Floating Rate

   Floating
Rate Index		   Fixed
Rate		     Maturity
Date		  

Counterparty

   Underlying Reference
Instrument		   Notional
Amount		     Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Depreciation		  

Receive

   —     0.1400 %    09/16/13   JPMorgan Chase Bank, N.A.   Dow Jones-UBS
Commodity Index 2
Month Forward		     USD  76,192,516      $ (3,667,299 )    $ —      $ (3,667,299 ) 

Pay

   1-Month
USD-LIBOR		     0.1982 %    02/18/14   UBS AG   Russell 2000 Total
Return Index		     USD 86,890,968        (828,449 )      —        (828,449 ) 

Pay

   1-Month
USD-LIBOR		     0.1982 %    03/17/14   JPMorgan Chase Bank, N.A.   Russell 2000 Total
Return Index		     USD      219,110        (2,089 )      —        (2,089 ) 

Pay

   1-Month
USD-LIBOR		     0.5782 %    04/15/14   Deutsche Bank AG   FTSE EPRA/NAREIT
Global Real Estate
Index Series		     USD 20,689,799        (321,256 )      —        (321,256 ) 
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (4,819,093 )    $ —      $ (4,819,093 ) 
             

 

 

    

 

 

    

 

 

  

Centrally cleared interest rate swap agreements

 

Pay/Receive Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		    Notional
Amount		      Unrealized
Appreciation/
(Depreciation)		  

Pay

    3-Month USD-LIBOR      2.721 %    07/02/23      USD 1,143,000,000       $ 0   
             

 

 

  

Securities in the amount of $714,971 have been received at the custodian bank as collateral for swap contracts.

 

(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(CHF)— Swiss Franc
(DKK)— Danish Krone
(EUR)— Euro
(GBP)— British Pound
(JPY)— Japanese Yen
(LIBOR)— London InterBank Offered Rate
(MXN)— Mexican Peso
(PLN)— Polish Zloty
(SEK)— Swedish Krona
(USD)— United States Dollar
(ZAR)— South African Rand

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-26

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1- unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Consolidated Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 19,559,278       $ 11,438,382       $ —         $ 30,997,660   

Air Freight & Logistics

      5,795,848         3,407,854         —           9,203,702   

Airlines

      628,256         2,307,611         —           2,935,867   

Auto Components

      2,813,791         11,624,177         —           14,437,968   

Automobiles

      5,228,687         39,360,929         —           44,589,616   

Beverages

      19,026,817         26,312,670         —           45,339,487   

Biotechnology

      15,852,027         4,806,945         —           20,658,972   

Building Products

      373,136         6,039,162         —           6,412,298   

Capital Markets

      16,651,248         22,548,429         —           39,199,677   

Chemicals

      18,415,539         37,535,620         —           55,951,159   

Commercial Banks

      22,745,348         135,188,984         —           157,934,332   

Commercial Services & Supplies

      4,181,616         6,539,711         —           10,721,327   

Communications Equipment

      14,674,550         4,938,471         —           19,613,021   

Computers & Peripherals

      29,349,136         1,178,413         —           30,527,549   

Construction & Engineering

      1,215,711         6,991,436         —           8,207,147   

Construction Materials

      334,997         6,434,877         —           6,769,874   

Consumer Finance

      7,796,118         667,396         —           8,463,514   

Containers & Packaging

      1,340,407         1,815,689         —           3,156,096   

Distributors

      649,152         342,065         —           991,217   

Diversified Consumer Services

      402,791         243,742         —           646,533   

Diversified Financial Services

      30,501,530         13,115,538         —           43,617,068   

Diversified Telecommunication Services

      19,969,574         31,029,475         —           50,999,049   

Electric Utilities

      14,348,916         17,643,934         —           31,992,850   

Electrical Equipment

      5,038,502         13,815,677         —           18,854,179   

Electronic Equipment, Instruments & Components

      3,487,693         12,570,541         —           16,058,234   

Energy Equipment & Services

      13,647,937         7,854,575         —           21,502,512   

Food & Staples Retailing

      18,534,812         22,502,182         —           41,036,994   

Food Products

      12,781,862         43,588,425         —           56,370,287   

Gas Utilities

      723,540         5,919,075         —           6,642,615   

Health Care Equipment & Supplies

      16,787,737         7,413,967         —           24,201,704   

Health Care Providers & Services

      16,043,353         4,760,364         —           20,803,717   

Health Care Technology

      747,580         152,771         —           900,351   

Hotels, Restaurants & Leisure

      13,936,749         12,879,314         —           26,816,063   

Household Durables

      2,499,131         6,914,418         —           9,413,549   

Household Products

      16,762,295         7,245,977         —           24,008,272   

Independent Power Producers & Energy Traders

      722,132         682,632         —           1,404,764   

Industrial Conglomerates

      18,843,613         16,476,962         —           35,320,575   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-27

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  

Insurance

    $ 33,951,146      $ 54,146,850      $ —         $ 88,097,996   

Internet & Catalog Retail

      8,959,997        807,639        —           9,767,636   

Internet Software & Services

      17,902,848        1,240,453        —           19,143,301   

IT Services

      28,342,737        4,332,711        —           32,675,448   

Leisure Equipment & Products

      1,103,053        2,501,629        —           3,604,682   

Life Sciences Tools & Services

      3,819,707        815,291        —           4,634,998   

Machinery

      13,660,182        29,339,217        —           42,999,399   

Marine

      —          2,723,231        —           2,723,231   

Media

      28,987,501        13,880,062        —           42,867,563   

Metals & Mining

      3,790,623        37,520,588        —           41,311,211   

Multi-Utilities

      9,285,252        14,635,835        —           23,921,087   

Multiline Retail

      6,333,267        3,663,394        —           9,996,661   

Office Electronics

      635,807        4,833,164        —           5,468,971   

Oil, Gas & Consumable Fuels

      67,408,524        66,027,538        —           133,436,062   

Paper & Forest Products

      1,036,189        1,123,748        —           2,159,937   

Personal Products

      1,336,172        6,730,766        —           8,066,938   

Pharmaceuticals

      45,898,729        93,104,351        —           139,003,080   

Professional Services

      866,235        6,573,397        —           7,439,632   

Real Estate Investment Trusts

      77,291,028        43,647,861        —           120,938,889   

Real Estate Management & Development

      1,344,636        50,052,701        —           51,397,337   

Road & Rail

      7,265,847        11,515,301        —           18,781,148   

Semiconductors & Semiconductor Equipment

      16,060,231        7,241,833        —           23,302,064   

Software

      27,025,955        10,126,973        —           37,152,928   

Specialty Retail

      18,470,834        9,753,393        —           28,224,227   

Textiles, Apparel & Luxury Goods

      5,717,128        17,637,667        —           23,354,795   

Thrifts & Mortgage Finance

      512,285        —          —           512,285   

Tobacco

      13,413,919        16,859,474        —           30,273,393   

Trading Companies & Distributors

      1,487,849        12,677,152        —           14,165,001   

Transportation Infrastructure

      —          4,163,329        —           4,163,329   

Water Utilities

      —          1,228,450        —           1,228,450   

Wireless Telecommunication Services

      2,270,068        24,235,943        —           26,506,011   

Total Common Stocks

      836,589,158        1,107,428,331        —           1,944,017,489   

Total U.S. Treasury & Government Agencies*

      —          1,141,590,025        —           1,141,590,025   

Total Foreign Government*

      —          196,077,947        —           196,077,947   

Total Preferred Stocks*

      —          6,571,535        —           6,571,535   

Investment Company Securities

      152,228        254,636        —           406,864   

Total Rights*

      18,545        —          —           18,545   
Short-Term Investments          

Mutual Fund

      477,284,063        —          —           477,284,063   

U.S. Treasury

      —          82,832,597        —           82,832,597   

Repurchase Agreement

      —          1,283,471,000        —           1,283,471,000   

Total Short-Term Investments

      477,284,063        1,366,303,597        —           1,843,587,660   

Total Investments

    $ 1,314,043,994      $ 3,818,226,071      $ —         $ 5,132,270,065   
                                   

Collateral for securities loaned (Liability)

    $ —        $ (477,284,063 )    $ —         $ (477,284,063 ) 
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 7,483,885      $ —         $ 7,483,885   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (4,523,073 )      —           (4,523,073 ) 

Total Forward Contracts

    $ —        $ 2,960,812      $ —         $ 2,960,812   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 1,048,573      $ —        $ —         $ 1,048,573   

Futures Contracts (Unrealized Depreciation)

      (12,969,354 )      —          —           (12,969,354 ) 

Total Futures Contracts

    $ (11,920,781 )    $ —        $ —         $ (11,920,781 ) 

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-28

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  
Centrally Cleared Swap Contracts           

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —         $ 0      $ —         $ 0   
OTC Swap Contracts           

OTC Swap Contracts at Value (Liabilities)

    $ —         $ (4,819,093 )    $ —         $ (4,819,093 ) 

 

* See Consolidated Schedule of Investments for additional detailed categorizations.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-29

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

 

Consolidated§ Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 3,846,192,347   

Repurchase Agreement

      1,283,471,000   

Affiliated investments at value (c)

      2,606,718   

Cash

      255,907   

Cash denominated in foreign currencies (d)

      3,762,076   

Unrealized appreciation on forward foreign currency exchange contracts

      7,483,885   

Receivable for:

   

Investments sold

      125,902   

Fund shares sold

      2,072,105   

Dividends

      4,412,279   

Interest

      7,960,373   

Variation margin on futures contracts

      953,075   

Swap interest

      1,005,441   
  

 

 

  

Total Assets

      5,160,301,108   

Liabilities

   

Payables for:

   

Investments purchased

      95,861,548   

Fund shares redeemed

      467,610   

Swaps at market value

      4,819,093   

Unrealized depreciation on forward foreign currency exchange contracts

      4,523,073   

Variation margin on futures contracts

      2,312,851   

Collateral for securities loaned

      477,284,063   

Swap interest

      836,874   

Accrued expenses:

   

Management fees

      2,270,286   

Distribution and service fees

      951,115   

Deferred trustees’ fees

      21,608   

Other expenses

      532,671   
  

 

 

  

Total Liabilities

      589,880,792   
  

 

 

  

Net Assets

    $ 4,570,420,316   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 4,320,453,828   

Undistributed net investment income

      8,123,982   

Accumulated net realized gain

      42,750,620   

Unrealized appreciation on investments, affiliated investments, futures contracts, swap contracts and foreign currency transactions

      199,091,886   
  

 

 

  

Net Assets

    $ 4,570,420,316   
  

 

 

  

Net Assets

   

Class B

    $ 4,570,420,316   

Capital Shares Outstanding*

   

Class B

      432,691,931   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.56   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement and affiliated investments, was $3,633,889,705.
(b) Includes securities loaned at value of $464,301,718.
(c) Identified cost of affiliated investments was $1,905,214.
(d) Identified cost of cash denominated in foreign currencies was $3,791,341.

Consolidated§ Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 32,386,869   

Dividends from affiliated investments

      26,204   

Interest

      7,539,920   

Securities lending income

      1,049,639   
  

 

 

  

Total investment income

      41,002,632   

Expenses

   

Management fees

      13,679,375   

Administration fees

      59,206   

Custodian and accounting fees

      439,125   

Distribution and service fees—Class B

      5,596,429   

Audit and tax services

      41,251   

Legal

      10,419   

Trustees’ fees and expenses

      13,519   

Shareholder reporting

      47,365   

Insurance

      10,200   

Miscellaneous

      11,012   
  

 

 

  

Total expenses

      19,907,901   

Less management fee waiver

      (311,344 ) 
  

 

 

  

Net expenses

      19,596,557   
  

 

 

  

Net Investment Income

      21,406,075   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain (loss) on:   

Investments

      (16,771,969 ) 

Futures contracts

      122,502,220   

Written options contracts

      (1,236,312 ) 

Swap contracts

      (81,178,913 ) 

Foreign currency transactions

      30,196,016   
  

 

 

  

Net realized gain

      53,511,042   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      44,924,662   

Affiliated investments

      730,292   

Futures contracts

      (18,407,272 ) 

Written options contracts

      (653,567 ) 

Swap contracts

      (11,778,553 ) 

Foreign currency transactions

      712,526   
  

 

 

  

Net change in unrealized appreciation

      15,528,088   
  

 

 

  

Net realized and unrealized gain

      69,039,130   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 90,445,205   
  

 

 

  

 

(a) Net of foreign withholding taxes of $2,156,389.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-30

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 21,406,075      $ 17,378,965   

Net realized gain

      53,511,042        125,676,376   

Net change in unrealized appreciation

      15,528,088        164,043,908   
  

 

 

    

 

 

  

Increase in net assets from operations

      90,445,205        307,099,249   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (59,427,441 )      (3,105,250 ) 

Net realized capital gains

     

Class B

      (98,772,505 )      (66,687 ) 
  

 

 

    

 

 

  

Total distributions

      (158,199,946 )      (3,171,937 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      496,074,827        1,649,437,074   
  

 

 

    

 

 

  

Total Increase in Net Assets

      428,320,086        1,953,364,386   

Net Assets

     

Beginning of period

      4,142,100,230        2,188,735,844   
  

 

 

    

 

 

  

End of period

    $ 4,570,420,316      $ 4,142,100,230   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 8,123,982      $ 46,145,348   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      34,850,054      $ 382,404,575        165,208,345      $ 1,680,426,232   

Reinvestments

      14,729,976        158,199,946        312,506        3,171,937   

Redemptions

      (4,078,555 )      (44,529,694 )      (3,311,319 )      (34,161,095 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      45,501,475      $ 496,074,827        162,209,532      $ 1,649,437,074   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 496,074,827        $ 1,649,437,074   
    

 

 

      

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-31

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Consolidated§ Financial Highlights

 

Selected per share data                   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		    

Year Ended
      December 31,      

  
       2012     2011(a)  

Net Asset Value, Beginning of Period

    $ 10.70      $ 9.73      $ 10.00   
  

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

       

Net investment income (b)

      0.05        0.05        0.01   

Net realized and unrealized gain (loss) on investments

      0.20        0.93        (0.18 )(c) 
  

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.25        0.98        (0.17 ) 
  

 

 

    

 

 

    

 

 

  

Less Distributions

       

Distributions from net investment income

      (0.15 )      (0.01 )      (0.04 ) 

Distributions from net realized capital gains

      (0.24 )      (0.00 )(d)      (0.06 ) 
  

 

 

    

 

 

    

 

 

  

Total distributions

      (0.39 )      (0.01 )      (0.10 ) 
  

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.56      $ 10.70      $ 9.73   
  

 

 

    

 

 

    

 

 

  

Total Return (%) (e)

      2.34  (f)      10.09        (1.72 )(f) 

Ratios/Supplemental Data

       

Gross ratio of expenses to average net assets (%)

      0.89  (g)      0.91        1.01  (g) 

Net ratio of expenses to average net assets (%) (h)

      0.88  (g)      0.91        0.97  (g) 

Ratio of net investment income to average net assets (%)

      0.96  (g)      0.52        0.13  (g) 

Portfolio turnover rate (%)

      19  (f)      35        15  (f) 

Net assets, end of period (in millions)

    $ 4,570.4      $ 4,142.1      $ 2,188.7   

 

(a) Commencement of operations was May 2, 2011.
(b) Per share amounts based on average shares outstanding during the period.
(c) The per share amount may differ with the change in aggregate gains (losses) as shown in the Consolidated Statement of Operations due to the timing of purchases and sales of Portfolio shares in relation to fluctuating market values during the period.
(d) Distributions from net realized capital gains were less than $0.01.
(e) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(f) Periods less than one year are not computed on an annualized basis.
(g) Computed on an annualized basis.
(h) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-32

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is AllianceBernstein Global Dynamic Allocation Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B Shares are currently offered by the Portfolio.

2. Consolidation of Subsidiary—AllianceBernstein Global Dynamic Allocation Portfolio, Ltd.

The Portfolio may invest up to 10% of its total assets in the AllianceBernstein Global Dynamic Allocation Portfolio, Ltd. which is a wholly-owned and controlled subsidiary of the Portfolio that is organized under the laws of the Cayman Islands as an exempted company (the “Subsidiary”). The Portfolio invests in the Subsidiary in order to gain exposure to the commodities market within the limitations of the federal tax laws, rules and regulations that apply to regulated investment companies. The Portfolio has obtained an opinion from legal counsel to the effect that the annual net profit, if any, realized by the Subsidiary and imputed for income tax purposes to the Portfolio should constitute “qualifying income” for purposes of the Portfolio remaining qualified as a regulated investment company for U.S federal income tax purposes. It is possible that the Internal Revenue Service or a court could disagree with the legal opinion obtained by the Portfolio.

The Subsidiary invests primarily in commodity derivatives, exchange traded notes and total return swaps. Unlike the Portfolio, the Subsidiary may invest without limitation in commodity-linked derivatives; however, the Subsidiary complies with the same 1940 Act asset coverage requirements with respect to its investments in commodity-linked derivatives that are applicable to the Portfolio’s transactions in derivatives. In addition, to the extent applicable to the investment activities of the Subsidiary, the Subsidiary is subject to the same fundamental investment restrictions and follows the same compliance policies and procedures as the Portfolio.

By investing in the Subsidiary, the Portfolio is indirectly exposed to the risks associated with the Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are subject to commodities risk. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the 1940 Act and is not subject to all the investor protections of the 1940 Act. The Portfolio, however, wholly owns and controls the Subsidiary, and the Portfolio and Subsidiary are both managed by AllianceBernstein L.P. (the “Subadviser”), making it unlikely that the Subsidiary will take action contrary to the interests of the Portfolio and its shareholders. Changes in the laws of the United States and/or Cayman Islands could result in the inability of the Portfolio and/or the Subsidiary to operate as described in the Portfolio’s prospectus and could adversely affect the Portfolio. For example, the Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Portfolio shareholders would likely suffer decreased investment returns.

The consolidated Schedule of Investments, Statement of Assets and Liabilities, Statement of Operations, Statement of Changes in Net Assets and the Financial Highlights of the Portfolio includes the account of the Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation for the Portfolio. The Subsidiary has a fiscal year end of December 31st for financial statement consolidation purposes and a nonconforming tax year end of November 30th.

A summary of the Portfolio’s investment in the Subsidiary is as follows:

 

      Inception Date
of Subsidiary		      Subsidiary
Net Assets at
June 30, 2013		      % of
Total Assets at
June 30, 2013		  

AllianceBernstein Global Dynamic Allocation Portfolio, Ltd.

      5/2/2012       $ 43,073,549         0.8 % 

3. Significant Accounting Policies

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these consolidated financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the consolidated financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its consolidated financial statements.

 

MIST-33

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of

 

MIST-34

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to futures transactions, foreign currency transactions, swap transactions, premium amortization adjustments, Real Estate Investment Trusts (REITs), passive foreign investment companies (PFICs), controlled foreign corporations and return of capital adjustments. These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $1,283,471,000, which is included as part of investments at value on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

 

MIST-35

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Consolidated Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Consolidated Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Consolidated Schedule of Investments.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

4. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Consolidated Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Consolidated Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Consolidated Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are

 

MIST-36

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Consolidated Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Consolidated Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Options Contracts - An option contract purchased by the Portfolio gives the Portfolio the right, but not the obligation, to buy (call) or sell (put) an underlying instrument at a fixed exercise price during a specified period. Call options written by the Portfolio give the holder the right to buy the underlying instrument from the Portfolio at a fixed exercise price; put options written by the Portfolio give the holder the right to sell the underlying instrument to the Portfolio at a fixed exercise price.

The Portfolio may use options to hedge against changes in values of securities the Portfolio owns or expects to purchase, to maintain exposure to the broad equity markets or to enhance return. Writing puts or buying calls tend to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tend to decrease the Portfolio’s exposure to the underlying instrument, and can be used to hedge other Portfolio investments. For options used to hedge the Portfolio’s investments, the potential risk to the Portfolio is that the change in value of options contracts may not correspond perfectly to the change in value of the hedged instruments. The Portfolio also bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Portfolio may not be able to enter into a closing transaction due to an illiquid market. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of purchased options is typically the premium initially paid for the option plus any unrealized gains.

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered a loss. The risk associated with writing a call option is that the Portfolio may forgo the opportunity for a profit if the market value of the underlying instrument increases and the option is exercised, requiring the Portfolio to sell the underlying instrument at a price below its market value. When the Portfolio writes a call option on a security it does not own, its exposure on such an option is theoretically unlimited. The risk in writing a put option is that the Portfolio may incur a loss if the market value of the underlying instrument decreases and the option is exercised, requiring the Portfolio to purchase the underlying instrument at a price above its market value. In addition, the Portfolio risks not being able to enter into a closing transaction for the written option as the result of an illiquid market for the option.

Purchases of put and call options are recorded as investments, the value of which are marked-to-market daily. When a purchased option expires without being exercised, the Portfolio will realize a loss equal to the premium paid. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the premium initially paid for the option. When the Portfolio exercises a put option, it will realize a gain or loss from the sale of the underlying instrument and the proceeds from such sale will be decreased by the premium originally paid for the put option. When the Portfolio exercises a call option, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid for the call option.

The premium received for a written option is recorded as an asset and an equivalent liability. The liability is marked-to-market daily in accordance with the option’s valuation policy. When a written option expires without being exercised or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying instrument and the liability related to such option is eliminated. When a written call option is exercised, the Portfolio realizes a gain or loss, as adjusted for the premium received, from the sale of the underlying instrument. When a written put option is exercised, the premium received is offset against the amount paid for the purchase of the underlying instrument.

The purpose of inflation-capped options is to protect the buyer from inflation, above a specified rate, eroding the value of investments in inflation-linked products with a given notional exposure. Inflation-capped options are used to give downside protection to investments in inflation-linked products by establishing a floor on the value of such products.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered

 

MIST-37

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Consolidated Schedule of Investments and restricted cash, if any, is reflected on the Consolidated Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Consolidated Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Consolidated Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Consolidated Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Consolidated Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Consolidated Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust the interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contracts remaining life, to the extent that amount is positive.

Total Return Swaps: The Portfolio may enter into total return swap agreements to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include a

 

MIST-38

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

specified security, basket of securities or securities indices during the specific period, in return for periodic payments based on a fixed or floating rate or the total return from other underlying assets. When a Portfolio pays interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may be required to pay the change in value to the counterparty in addition to the interest payment; conversely, when a Portfolio receives interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may receive the change in value in addition to the interest payment. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty. Total return swaps can also be structured without an interest payment, so that one party pays the other party if the value of the underlying asset increases and receives payment from the other party if the value of the underlying asset decreases.

Centrally Cleared Swaps: Certain clearinghouses currently offer clearing for limited types of derivatives transactions, principally credit derivatives. In a cleared derivative transaction, a Portfolio typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Portfolio’s exposure to the credit risk of the original counterparty. The Portfolio typically will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared derivative transaction. Only a limited number of derivative transactions are currently eligible for clearing.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Consolidated Statement of Assets &
Liabilities Location

    Fair Value     

Consolidated Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate          Unrealized depreciation on futures contracts* (a)    $ 5,451,399   
Equity          Swaps at market value      1,151,794   
   Unrealized appreciation on futures contracts* (a)    $ 1,048,573       Unrealized depreciation on futures contracts* (a)      7,517,955   
Commodity          Swaps at market value (b)      3,667,299   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      7,483,885       Unrealized depreciation on forward foreign currency exchange contracts      4,523,073   
     

 

 

        

 

 

  
Total       $ 8,532,458          $ 22,311,520   
     

 

 

        

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Consolidated Schedule of Investments. Only the current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(c)		     Net Amount  

Barclays Bank plc

    $ 531,931       $ (531,931 )    $ —      $ —   

BNP Paribas S.A.

      2,951,588         (615,333 )      —        2,336,255   

Deutsche Bank AG

      288,504         (288,504 )      —        —   

Goldman Sachs & Co.

      445,718         (445,718 )      —        —   

HSBC Bank USA

      235,722         —        —        235,722   

Royal Bank of Canada

      151,809         —        —        151,809   

Royal Bank of Scotland plc

      634,801         (476,510 )      —        158,291   

Standard Chartered Bank

      27,030         —        —        27,030   

State Street Bank and Trust

      3,619         (3,619 )      —        —   

UBS AG

      2,213,163         (835,085 )      (714,971 )      663,107   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 7,483,885       $ (3,196,700 )    $ (714,971 )    $ 3,572,214   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

MIST-39

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged(c)		      Net Amount  

Barclays Bank plc

    $ 1,424,639       $ (531,931 )    $ —       $ 892,708   

BNP Paribas S.A.

      615,333         (615,333 )      —         —   

Citibank N.A.

      86,218         —        —         86,218   

Deutsche Bank AG

      367,653         (288,504 )      —         79,149   

Goldman Sachs & Co.

      1,779,443         (445,718 )      —         1,333,725   

JPMorgan Chase Bank, N.A.

      3,669,388         —        —         3,669,388   

Royal Bank of Scotland plc

      476,510         (476,510 )      —         —   

State Street Bank and Trust

      87,897         (3,619 )      —         84,278   

UBS AG

      835,085         (835,085 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 9,342,166       $ (3,196,700 )    $ —       $ 6,145,466   
  

 

 

     

 

 

    

 

 

     

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Consolidated Statement of Operations Location—Net Realized
Gain (Loss)

    Interest Rate     Equity     Commodity     Foreign
Exchange		      Total  

Investments (d)

    $ —      $ (9,780,745 )    $ —      $ —       $ (9,780,745 ) 

Forward foreign currency transactions

      —        —        —        29,932,948         29,932,948   

Futures contracts

      (2,905,678 )      125,407,898        —        —         122,502,220   

Swap contracts

      (74,118,871 )      3,660,504        (10,720,546 )      —         (81,178,913 ) 

Written options contracts

      —        (1,236,312 )      —        —         (1,236,312 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ (77,024,549 )    $ 118,051,345      $ (10,720,546 )    $ 29,932,948       $ 60,239,198   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Consolidated Statement of Operations Location—Net Change
in Unrealized Appreciation (Depreciation)

    Interest Rate     Equity     Commodity     Foreign
Exchange		      Total  

Investments (d)

    $ —      $ 1,559,410      $ —      $ —       $ 1,559,410   

Forward foreign currency transactions

      —        —        —        890,635         890,635   

Futures contracts

      (5,064,039 )      (13,343,233 )      —        —         (18,407,272 ) 

Swap contracts

      (4,815,708 )      (4,821,140 )      (2,141,705 )      —         (11,778,553 ) 

Written options contracts

      —        (653,567 )      —        —         (653,567 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ (9,879,747 )    $ (17,258,530 )    $ (2,141,705 )    $ 890,635       $ (28,389,347 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(e)		  

Investments (d)

    $ 4,318,120   

Forward foreign currency transactions

      764,052,055   

Futures contracts long

      261,389,740   

Swap contracts

      1,223,302,521   

Written options contracts

      964,000   

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) Excludes swap interest receivable of $1,005,441 and swap interest payable of $836,874.
  (c) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (d) Includes options purchased which are part of investments as shown in the Consolidated Statement of Assets and Liabilities and net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Consolidated Statement of Operations.
  (e) Averages are based on activity levels during 2013.

5. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies

 

MIST-40

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the consolidated financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Consolidated Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Consolidated Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Consolidated Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

6. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$408,709,749    $ 787,798,047       $ 41,073,467       $ 541,144,213   

 

MIST-41

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Options Written

The Portfolio transactions in options written during the six months June 30, 2013:

 

Call Options

    Notional
Amount		      Premium
Received		  

Options outstanding December 31, 2012

      67,900       $ 1,776,922   

Options written

      6,191,500         3,477,226   

Options bought back

      (6,259,400 )       (5,254,148 ) 
  

 

 

     

 

 

  

Options outstanding June 30, 2013

      —       $ —   
  

 

 

     

 

 

  

Put Options

    Notional
Amount		      Premium
Received		  

Options outstanding December 31, 2012

      1,660,000       $ 674,214   

Options bought back

      (1,660,000 )       (674,214 ) 
  

 

 

     

 

 

  

Options outstanding June 30, 2013

      —       $ —   
  

 

 

     

 

 

  

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with AllianceBernstein L.P. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$13,679,375      0.700 %    First $250 million
     0.650 %    $250 million to $500 million
     0.625 %    $500 million to $1 billion
     0.600 %    Over $1 billion

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.025%    $500 million to $1 billion
0.020%    Over $2 billion

An identical agreement was in place for the period January 1, 2013 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Consolidated Statement of Operations.

Expense Limitation Agreement - The Adviser has entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement continued in effect with respect to the Portfolio until April 28, 2013. Pursuant to that Expense Limitation Agreement, the Adviser had agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and acquired fund fees and expenses but including amounts payable

 

MIST-42

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, were limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under current
Expense Limitation Agreement

Class B

1.20%

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred.

Effective April 29, 2013, there was no longer an expense cap for the Portfolio. For the six months ended June 30, 2013, there were no amounts waived or expenses repaid to the Adviser in accordance with the Expense Limitation Agreement.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Consolidated Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Consolidated Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Consolidated Statement of Assets and Liabilities.

8. Transactions in Securities of Affiliated Issuers

A summary of Portfolio’s transactions in the securities of affiliated issuers during the year six months ended June 30, 2013 was as follows:

 

Security Description

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold      Number of shares
held at
June 30, 2013		      Realized Gain on
shares sold		      Income For
SixMonths
Ended
June 30, 2013		  

MetLife, Inc.

      56,965         —         —         56,965       $ —       $ 26,204   

9. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

 

MIST-43

Met Investors Series Trust

AllianceBernstein Global Dynamic Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

10. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$3,158,007    $ 16,964,236       $ 13,930       $ 4,476,886       $ 3,171,937       $ 21,441,122   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Total  
$146,119,578    $ 11,138,141       $ 160,447,272       $ 317,704,991   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-44

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B and C shares of the American Funds® Balanced Allocation Portfolio returned 6.19% and 5.97%, respectively. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

ECONOMIC AND MARKET REVIEW

During the six-month period ended June 30, 2013, global capital markets continued to respond to changing perceptions about the prospects for economic growth and the efforts by governments throughout the world to both avoid a new economic recession and to meet their fiscal responsibilities. Interest rates jumped in the second quarter following ambiguous comments by Federal Reserve (“Fed”) Chairman Benjamin Bernanke concerning the future of the Fed’s quantitative easing measures. The Five Year Treasury Note yield rose from a 0.74% level at the end of 2012 to a 1.40% level at the end of June. For the entire six-month period, the Barclays U.S. Aggregate Bond Index returned a negative 2.44%. As expected in a rising interest rate environment, long maturity bonds declined more than short maturity bonds. Below investment grade bonds were able to provide modestly positive returns because of strong first quarter returns and higher coupons. Foreign-denominated bonds fell even more sharply because of the impact of a strong U.S. dollar relative to other currencies.

Even with a decline late in the second quarter, U.S. stocks produced strong returns during the first half of 2013. The Standard & Poor’s 500 Index returned 13.82% for the period. Small cap stocks, as measured by the Russell 2000 Index, performed even better with a 15.86% return. While both investment styles posted double digit returns, value style stocks performed slightly better than growth style stocks (15.90% for the Russell 1000 Value Index compared to 11.80% for the Russell 1000 Growth Index). The Health Care and Financial Services sectors were the best performers for the period; the Information Technology and Materials sectors trailed.

On a local currency basis, foreign stocks from developed countries produced a return close to that of domestic stocks as measured by the 11.01% local currency return of the MSCI EAFE Index. A rise in the value of the U.S. dollar reduced that return for U.S. investors to only 4.10%. Emerging market stocks performed even worse as the strong dollar and concerns about China’s slower economic growth produced a return of negative 9.57% in the MSCI Emerging Markets Index. Combining emerging and developed markets, foreign stocks produced a nearly flat return of 0.16% for the six-month period as measured by the MSCI All Country World Ex U.S. Index in U.S. dollars.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The American Funds Balanced Allocation Portfolio invested all of its assets in funds managed by the Capital Research and Management Company to maintain a broad asset allocation of approximately 35% to fixed income and 65% to equities. The underlying funds included funds of the American Funds Insurance Series (AFIS) and shares of retail American Funds. The Portfolio’s broad asset class goals did not change during the period. While the Portfolio did not have a formal asset class goal for cash, it did hold a cumulative cash position of about 6%. This cash position had a mixed impact on relative performance. The cash held in the underlying fixed income funds buffered some of the negative impact of rising interest rates on bonds, but the cash held in the domestic equity funds constrained performance.

The underlying fixed income funds produced returns in line with expectations. The two core bond funds, the AFIS U.S. Government / AAA-Rated Securities Fund and the AFIS Bond Fund, lost value during the period as interest rates rose. The positive impact of the AFIS Bond Fund’s exposure to high-yield bonds, which performed better than investment grade bonds during the full period, was offset by the negative impact of foreign bonds, which performed worse. While the AFIS High-Income Fund added to absolute performance, the Portfolio’s overall underweight to this asset class hurt relative performance. The Portfolio held a slight overweight to foreign bonds, which hurt performance.

All of the underlying domestic equity funds posted strongly positive returns for the period and contributed to absolute performance. The Portfolio’s cumulative tilt toward growth style stocks and its emphasis on large capitalization stocks detracted from relative performance as value style stocks and small and mid-cap stocks fared better over the first six months of 2013. Even with these headwinds, overall strong security selection by these funds had a positive impact on relative performance. Not unexpectedly, those underlying funds with the most exposure to value style stocks (the AFIS Blue Chip Income & Growth Fund and the American Mutual Fund) contributed the most to relative performance. Both funds avoided poor performing Apple, Inc. (-24.6% for the period) and held an overweight in the Microsoft Corporation, which returned over 30% for the period. The AFIS Growth Fund detracted from relative performance due in part to its exposure to Canadian energy companies Pacific Rubiales Energy Corp. and Suncor Energy, Inc.

 

MIST-1

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

As a group, the foreign equity funds detracted from absolute performance in part because a strong U.S. dollar made foreign securities less valuable to U.S. dollar based investors. Within foreign equities, the Portfolio’s exposure to developing countries hurt performance as the shares of companies from the emerging markets declined more than those from developed countries. On a relative basis, both the AFIS International Fund and the AFIS International Growth and Income Fund helped performance.

Investment Committee

MetLife Advisers, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
American Funds® Balanced Allocation Portfolio                      

Class B

        6.19           13.77           5.12           4.05   

Class C

        5.97           13.47           4.79           3.74   
Dow Jones Moderate Index        4.17           10.56           5.47           4.41   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B and Class C shares is 4/28/2008. Index returns are based on an inception date of 4/28/2008.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
American Funds U.S. Government/AAA - Rated Securities Fund (Class 1)      11.9   
American Funds Bond Fund (Class 1)      11.4   
American Funds Growth-Income Fund (Class 1)      10.3   
American Funds Growth Fund (Class 1)      9.2   
American Funds AMCAP Fund (Class R-6)      8.2   
American Funds Blue Chip Income and Growth Fund (Class 1)      8.2   
American Funds Fundamental Investors Fund (Class R-6)      8.2   
American Funds American Mutual Fund (Class R-6)      8.1   
American Funds International Fund (Class 1)      6.0   
American Funds International Growth and Income Fund (Class 1)      5.9   

 

MIST-3

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

American Funds® Balanced Allocation Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)

      Actual      0.71 %     $ 1,000.00         $ 1,061.90         $ 3.63   
     Hypothetical*      0.71 %     $ 1,000.00         $ 1,021.27         $ 3.56   

Class C(a)

      Actual      1.01 %     $ 1,000.00         $ 1,059.70         $ 5.16   
     Hypothetical      1.01 %     $ 1,000.00         $ 1,019.79         $ 5.06   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

 

MIST-4

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—100.1% of Net Assets

 

Security Description   Shares     Value  

Investment Company Securities—100.1%

  

American Funds AMCAP Fund
(Class R-6)

     15,302,586      $    370,628,632   

American Funds American Mutual Fund (Class R-6)

     11,684,750        368,887,552   

American Funds Blue Chip Income and Growth Fund (Class 1) (a)

     32,302,008        370,504,037   

American Funds Bond Fund (Class 1) (a)

     47,518,723        515,102,953   

American Funds Fundamental Investors Fund (Class R-6)

     8,108,931        370,091,619   

American Funds Global Bond Fund (Class 1)

     10,978,182        127,017,565   

American Funds Global Small Capitalization Fund (Class 1)

     6,274,300        136,716,987   

American Funds Growth Fund (Class 1)

     6,269,043        419,398,950   

American Funds Growth-Income Fund (Class 1)

     10,842,824        465,157,152   

American Funds High-Income Bond Fund (Class 1) (a)

     16,409,119        183,125,764   

American Funds International Fund (Class 1)

     15,007,001        273,277,495   

American Funds International Growth and Income Fund (Class 1) (a)

     16,784,093        266,699,237   

Investment Company Securities—(Continued)

  

American Funds New World Fund (Class 1) (a)

     5,921,059      $ 131,625,145   

American Funds U.S. Government/AAA - Rated Securities Fund (Class 1) (a)

     44,710,823        540,553,846   
   

 

 

  

Total Mutual Funds
(Cost $4,213,307,226)

       4,538,786,934   
   

 

 

  

Total Investments—100.1%
(Cost $4,213,307,226) (b)

       4,538,786,934   

Other assets and liabilities (net)—(0.1)%

       (2,440,132 ) 
   

 

 

  
Net Assets—100.0%     $ 4,536,346,802   
   

 

 

  

 

(a) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated Underlying Portfolios.)
(b) As of June 30, 2013, the aggregate cost of investments was $4,213,307,226. The aggregate unrealized appreciation and depreciation of investments were $349,444,267 and $(23,964,559), respectively, resulting in net unrealized appreciation of $325,479,708.

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Investment Company Securities

    $ 4,538,786,934       $ —         $ —         $ 4,538,786,934   

Total Investments

    $ 4,538,786,934       $ —         $ —         $ 4,538,786,934   
                                     

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 2,531,175,952   

Affiliated investments at value (b)

      2,007,610,982   

Receivable for:

   

Investments sold

      1,078   

Fund shares sold

      936,650   
  

 

 

  

Total Assets

      4,539,724,662   

Liabilities

   

Payables for:

   

Investments purchased

      409,782   

Fund shares redeemed

      527,945   

Accrued expenses:

   

Management fees

      219,566   

Distribution and service fees

      2,075,328   

Deferred trustees’ fees

      41,001   

Other expenses

      104,238   
  

 

 

  

Total Liabilities

      3,377,860   
  

 

 

  

Net Assets

    $ 4,536,346,802   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 3,821,322,540   

Undistributed net investment income

      38,488,942   

Accumulated net realized gain

      351,055,612   

Unrealized appreciation on investments and affiliated investments

      325,479,708   
  

 

 

  

Net Assets

    $ 4,536,346,802   
  

 

 

  

Net Assets

   

Class B

    $ 3,446,779   

Class C

      4,532,900,023   

Capital Shares Outstanding*

   

Class B

      335,738   

Class C

      444,047,728   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.27   

Class C

      10.21   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $2,241,312,552.
(b) Identified cost of affiliated investments was $1,971,994,674.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Underlying Portfolios

    $ 44,579,353   

Dividends from Underlying Affiliated Portfolios

      7,964,734   
  

 

 

  

Total investment income

      52,544,087   

Expenses

   

Management fees

      1,319,600   

Administration fees

      10,902   

Custodian and accounting fees

      12,290   

Distribution and service fees—Class B

      4,059   

Distribution and service fees—Class C

      12,461,128   

Audit and tax services

      14,660   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      51,190   

Insurance

      14,169   

Miscellaneous

      12,484   
  

 

 

  

Total expenses

      13,923,604   
  

 

 

  

Net Investment Income

      38,620,483   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      352,971,511   

Affiliated investments

      8,794,331   

Capital gain distributions from Underlying Portfolios

      1,560,532   

Capital gain distributions from Affiliated Underlying Portfolios

      21,012,974   
  

 

 

  

Net realized gain

      384,339,348   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      79,972,692   

Affiliated investments

      (240,353,645 ) 
  

 

 

  

Net change in unrealized depreciation

      (160,380,953 ) 
  

 

 

  

Net realized and unrealized gain

      223,958,395   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 262,578,878   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 38,620,483      $ 55,979,020   

Net realized gain

      384,339,348        295,624,964   

Net change in unrealized appreciation (depreciation)

      (160,380,953 )      187,081,077   
  

 

 

    

 

 

  

Increase in net assets from operations

      262,578,878        538,685,061   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (56,869 )      (48,076 ) 

Class C

      (63,507,458 )      (73,001,962 ) 

Net realized capital gains

     

Class B

      (207,017 )      (24,476 ) 

Class C

      (285,576,021 )      (44,300,244 ) 
  

 

 

    

 

 

  

Total distributions

      (349,347,365 )      (117,374,758 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      235,194,930        (114,943,991 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      148,426,443        306,366,312   

Net Assets

     

Beginning of period

      4,387,920,359        4,081,554,047   
  

 

 

    

 

 

  

End of period

    $ 4,536,346,802      $ 4,387,920,359   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 38,488,942      $ 63,432,786   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      36,776      $ 396,285        81,474      $ 822,344   

Reinvestments

      26,102        263,886        7,291        72,552   

Redemptions

      (7,824 )      (83,678 )      (24,601 )      (248,428 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      55,054      $ 576,493        64,164      $ 646,468   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C

         

Sales

      8,156,159      $ 87,015,634        14,614,114      $ 146,218,328   

Reinvestments

      34,700,147        349,083,479        11,848,708        117,302,206   

Redemptions

      (18,945,722 )      (201,480,676 )      (37,813,970 )      (379,110,993 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      23,910,584      $ 234,618,437        (11,351,148 )    $ (115,590,459 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 235,194,930        $ (114,943,991 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

Financial Highlights

 

Selected per share data       
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010     2009      2008(a)  

Net Asset Value, Beginning of Period

    $ 10.51      $ 9.52       $ 9.84       $ 8.87      $ 6.82       $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (b)

      0.11        0.18         0.20         0.22        0.24         0.08   

Net realized and unrealized gain (loss) on investments

      0.53        1.11         (0.36 )       0.87        1.81         (3.00 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total from investment operations

      0.64        1.29         (0.16 )       1.09        2.05         (2.92 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.19 )      (0.20 )       (0.15 )       (0.12 )      0.00         (0.26 ) 

Distributions from net realized capital gains

      (0.69 )      (0.10 )       (0.01 )       (0.00 )(c)      0.00         (0.00 )(c) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

      (0.88 )      (0.30 )       (0.16 )       (0.12 )      0.00         (0.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.27      $ 10.51       $ 9.52       $ 9.84      $ 8.87       $ 6.82   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return (%) (d)

      6.19  (e)      13.80         (1.79 )       12.40        30.06         (29.20 )(e) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%) (g)

      0.31  (f)      0.32         0.32         0.33        0.36         0.78  (f) 

Net ratio of expenses to average net assets (%) (g) (h)

      0.31  (f)      0.32         0.32         0.33        0.35         0.35  (f) 

Ratio of net investment income to average net assets (%) (i)

      2.13  (f)      1.78         2.06         2.38        2.99         1.32  (f) 

Portfolio turnover rate (%)

      30  (e)      14         7         6        6         12  (e) 

Net assets, end of period (in millions)

    $ 3.4      $ 3.0       $ 2.1       $ 1.5      $ 0.6       $ 0.1   

 

     Class C  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010     2009      2008(a)  

Net Asset Value, Beginning of Period

    $ 10.44      $ 9.45       $ 9.78       $ 8.82      $ 6.82       $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (b)

      0.09        0.13         0.16         0.17        0.17         0.36   

Net realized and unrealized gain (loss) on investments

      0.52        1.13         (0.36 )       0.89        1.83         (3.28 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total from investment operations

      0.61        1.26         (0.20 )       1.06        2.00         (2.92 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.15 )      (0.17 )       (0.12 )       (0.10 )      0.00         (0.26 ) 

Distributions from net realized capital gains

      (0.69 )      (0.10 )       (0.01 )       (0.00 )(c)      0.00         (0.00 )(c) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

      (0.84 )      (0.27 )       (0.13 )       (0.10 )      0.00         (0.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.21      $ 10.44       $ 9.45       $ 9.78      $ 8.82       $ 6.82   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return (%) (d)

      5.97  (e)      13.53         (2.13 )       12.16        29.33         (29.20 )(e) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%) (g)

      0.61  (f)      0.62         0.62         0.63        0.66         0.70  (f) 

Net ratio of expenses to average net assets (%) (g) (h)

      0.61  (f)      0.62         0.62         0.63        0.65         0.65  (f) 

Ratio of net investment income to average net assets (%) (i)

      1.70  (f)      1.30         1.60         1.85        2.19         6.70  (f) 

Portfolio turnover rate (%)

      30  (e)      14         7         6        6         12  (e) 

Net assets, end of period (in millions)

    $ 4,532.9      $ 4,385.0       $ 4,079.5       $ 3,568.7      $ 1,998.3       $ 545.4   

 

(a) Commencement of operations was April 28, 2008.
(b) Per share amounts based on average shares outstanding during the period.
(c) Distributions from net realized capital gains were less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.
(g) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(h) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(i) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is American Funds® Balanced Allocation Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B and C Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio is designed on established principles of asset allocation to achieve a specific risk profile. The Portfolio will invest substantially all of its assets in certain funds of the American Funds Insurance Series (“AFIS”) (“Underlying Portfolios”). AFIS is an open-end diversified investment management company advised by Capital Research and Management Company (“CRMC”), an indirect, wholly owned subsidiary of The Capital Group Companies, Inc.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying Portfolios are valued at their closing daily net asset value. The net asset value of the Portfolio is calculated based on the net asset values of the Underlying Portfolios in which the Portfolio invests. For information about the use of fair value pricing by the Underlying Portfolios that are funds of AFIS, please refer to the prospectus of the Underlying Portfolios.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to short-term capital gain distributions received from underlying portfolios. These adjustments have no impact on net assets or the results of operations.

3. Certain Risks

Market Risk: In the normal course of business, the Underlying Portfolios invest in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty

 

MIST-9

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

risk). The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the companies whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Underlying Portfolios’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments of the applicable Underlying Portfolios.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 1,370,342,055       $ 0       $ 1,445,818,112   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement (the “Management Agreement”) with the Adviser for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board of Trustees (the “Board”) and has overall responsibility for the general management and administration of the Trust.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$1,319,600      0.100 %    First $500 million
     0.075 %    $500 million to $1 billion
     0.050 %    Over $1 billion

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B and Class C Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class C distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 1.00% respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class C Shares with respect to activities primarily intended to result in the sale of Class B and Class C

 

MIST-10

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Shares. However, under the Class B and Class C distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class C distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.55% of average daily net assets of the Portfolio attributable to its Class B and Class C Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and services fees in the Statement of Operations.

Under the terms of the Class B and Class C distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class C Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Underlying Portfolios

A summary of the Portfolio’s transactions in the securities of affiliated Underlying Portfolios for the six months ended June 30, 2013 was as follows:

 

Underlying Portfolio

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

American Funds Blue Chip Income and Growth Fund (Class 1)

      8,791,646         23,919,505         (409,143 )      32,302,008   

American Funds Bond Fund (Class 1)

      40,588,586         6,936,767         (6,630 )      47,518,723   

American Funds High-Income Bond Fund (Class 1)

      18,814,847         225,220         (2,630,948 )      16,409,119   

American Funds International Growth and Income Fund (Class 1)

      4,329,817         12,456,590         (2,314 )      16,784,093   

American Funds New World Fund (Class 1)

      5,946,605         176,029         (201,575 )      5,921,059   

American Funds U.S. Government/AAA - Rated Securities Fund (Class 1)

      43,589,923         1,411,920         (291,020 )      44,710,823   

 

Underlying Portfolio

   Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		      Capital Gain
Distributions from
Underlying
Portfolios		     Dividend Income
from Underlying
Portfolios		     Ending Value
as of
June 30, 2013		  

American Funds Blue Chip Income and Growth Fund (Class 1)

   $ 647,005       $ —      $ 1,550,643      $ 370,504,037   

American Funds Bond Fund (Class 1)

     11,032         5,797,333        2,244,128        515,102,953   

American Funds High-Income Bond Fund (Class 1)

     6,072,173         —        2,529,569        183,125,764   

American Funds International Growth and Income Fund (Class 1)

     1,505         —        134,189        266,699,237   

American Funds New World Fund (Class 1)

     1,930,405         622,351        463,827        131,625,145   

American Funds U.S. Government/AAA - Rated Securities Fund (Class 1)

     132,211         14,593,290        1,042,378        540,553,846   
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ 8,794,331       $ 21,012,974      $ 7,964,734      $ 2,007,610,982   
 

 

 

     

 

 

    

 

 

    

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$73,050,038    $ 50,868,480       $ 44,324,720       $ 2,239,514       $ 117,374,758       $ 53,107,994   

 

MIST-11

Met Investors Series Trust

American Funds® Balanced Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$63,468,412    $ 285,355,937       $ 453,004,025       $ —       $ 801,828,374   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-12

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B and C shares of the American Funds® Growth Allocation Portfolio returned 8.59% and 8.49%, respectively. The Portfolio’s benchmark, the Dow Jones Moderately Aggressive Index1, returned 6.82%.

ECONOMIC AND MARKET REVIEW

During the six-month period ended June 30, 2013, global capital markets continued to respond to changing perceptions about the prospects for economic growth and the efforts by governments throughout the world to both avoid a new economic recession and to meet their fiscal responsibilities. Interest rates jumped in the second quarter following ambiguous comments by Federal Reserve (“Fed”) Chairman Benjamin Bernanke concerning the future of the Fed’s quantitative easing measures. The Five Year Treasury Note yield rose from a 0.74% level at the end of 2012 to a 1.40% level at the end of June. For the entire six-month period, the Barclays U.S. Aggregate Bond Index returned a negative 2.44%. As expected in a rising interest rate environment, long maturity bonds declined more than short maturity bonds. Below investment grade bonds were able to provide modestly positive returns because of strong first quarter returns and higher coupons. Foreign-denominated bonds fell even more sharply because of the impact of a strong U.S. dollar relative to other currencies.

Even with a decline late in the second quarter, U.S. stocks produced strong returns during the first half of 2013. The Standard & Poor’s 500 Index returned 13.82% for the period. Small cap stocks, as measured by the Russell 2000 Index, performed even better with a 15.86% return. While both investment styles posted double digit returns, value style stocks performed slightly better than growth style stocks (15.90% for the Russell 1000 Value Index compared to 11.80% for the Russell 1000 Growth Index). The Health Care and Financial Services sectors were the best performers for the period; the Information Technology and Materials sectors trailed.

On a local currency basis, foreign stocks from developed countries produced a return close to that of domestic stocks as measured by the 11.01% local currency return of the MSCI EAFE Index. A rise in the value of the U.S. dollar reduced that return for U.S. investors to only 4.10%. Emerging market stocks performed even worse as the strong dollar and concerns about China’s slower economic growth produced a return of negative 9.57% in the MSCI Emerging Markets Index. Combining emerging and developed markets, foreign stocks produced a nearly flat return of 0.16% for the six-month period as measured by the MSCI All Country World Ex U.S. Index in U.S. dollars.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The American Funds Growth Allocation Portfolio invested all of its assets in funds managed by the Capital Research and Management Company to maintain a broad asset allocation of approximately 15% to fixed income and 85% to equities. The underlying funds included funds of the American Funds Insurance Series (AFIS) and shares of retail American Funds. The Portfolio’s broad asset class goals did not change during the period. While the Portfolio did not have a formal asset class goal for cash, it did hold a cumulative cash position of about 6%. This cash position had a mixed impact on relative performance. The cash held in the underlying fixed income funds buffered some of the negative impact of rising interest rates on bonds, but the cash held in the domestic equity funds constrained performance.

All of the underlying domestic equity funds posted strongly positive returns for the period and contributed to absolute performance. The Portfolio’s cumulative tilt toward growth style stocks and its emphasis on large capitalization stocks detracted from relative performance as value style stocks and small and mid-cap stocks fared better over the first six months of 2013. Even with these headwinds, overall strong security selection by these funds had a positive impact on relative performance. Not unexpectedly, those underlying funds with the most exposure to value style stocks (the AFIS Blue Chip Income & Growth Fund and the American Mutual Fund) contributed the most to relative performance. Both funds avoided poor performing Apple, Inc. (-24.6% for the period) and held an overweight in the Microsoft Corporation, which returned over 30% for the period. The AFIS Growth Fund detracted from relative performance due in part to its exposure to Canadian energy companies Pacific Rubiales Energy Corp. and Suncor Energy, Inc.

As a group, the foreign equity funds detracted from absolute performance in part because a strong U.S. dollar made foreign securities less valuable to U.S. dollar based investors. Within foreign equities, the Portfolio’s exposure to developing countries hurt performance as the shares of companies from the emerging markets declined much more than those from developed countries. On a relative basis, both the AFIS International Fund and the AFIS International Growth and Income Fund helped performance.

 

MIST-1

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

The underlying fixed income funds produced returns in line with expectations. The two core bond funds, the AFIS U.S. Government / AAA-Rated Securities Fund and the AFIS Bond Fund, lost value during the period as interest rates rose. The positive impact of the AFIS Bond Fund’s exposure to high-yield bonds, which performed better than investment grade bonds during the full period, was offset by the negative impact of foreign bonds, which performed worse. While the AFIS High-Income Fund added to absolute performance, the Portfolio’s overall underweight to this asset class hurt relative performance. The Portfolio held a slight overweight to foreign bonds, which hurt performance.

Investment Committee

MetLife Advisers, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATELY AGGRESSIVE INDEX

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
American Funds® Growth Allocation Portfolio                      

Class B

        8.59           18.18           4.74           3.48   

Class C

        8.49           17.78           4.39           3.13   
Dow Jones Moderately Aggressive Index        6.82           14.95           5.47           4.36   

1 The Dow Jones Moderately Aggressive Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 80% of the risk of an all equity portfolio.

2 Inception of the Class B and Class C shares is 4/28/2008. Index returns are based on an inception date of 4/28/2008.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

 

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
American Funds Growth Fund (Class 1)      12.2   
American Funds AMCAP Fund (Class R-6)      12.2   
American Funds Fundamental Investors Fund (Class R-6)      11.2   
American Funds Growth-Income Fund (Class 1)      10.2   
American Funds Blue Chip Income and Growth Fund (Class 1)      10.2   
American Funds American Mutual Fund (Class R-6)      10.1   
American Funds International Fund (Class 1)      8.0   
American Funds International Growth and Income Fund (Class 1)      6.8   
American Funds Global Small Capitalization Fund (Class 1)      4.9   
American Funds New World Fund (Class 1)      4.7   

 

MIST-3

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

American Funds® Growth Allocation Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)

      Actual      0.52 %     $ 1,000.00         $ 1,085.90         $ 2.69   
     Hypothetical*      0.52 %     $ 1,000.00         $ 1,022.22         $ 2.61   

Class C(a)

      Actual      0.82 %     $ 1,000.00         $ 1,084.90         $ 4.24   
     Hypothetical*      0.82 %     $ 1,000.00         $ 1,020.73         $ 4.11   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

 

MIST-4

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—100.1% of Net Assets

 

Security Description   Shares     Value  

Investment Company Securities—100.1%

  

American Funds AMCAP Fund
(Class R-6)

     13,098,768      $    317,252,154   

American Funds American Mutual Fund (Class R-6)

     8,305,610        262,208,109   

American Funds Blue Chip Income and Growth Fund (Class 1)

     23,035,388        264,215,900   

American Funds Bond Fund (Class 1)

     9,041,243        98,007,073   

American Funds Fundamental Investors Fund (Class R-6)

     6,356,404        290,106,282   

American Funds Global Bond Fund (Class 1)

     4,229,252        48,932,440   

American Funds Global Small Capitalization Fund (Class 1)

     5,789,852        126,160,873   

American Funds Growth Fund (Class 1)

     4,752,607        317,949,424   

American Funds Growth-Income Fund (Class 1)

     6,168,713        264,637,785   

American Funds High-Income Bond Fund (Class 1)

     4,647,605        51,867,272   

American Funds International Fund (Class 1)

     11,392,897        207,464,658   

American Funds International Growth and Income Fund (Class 1) (a)

     11,139,100        177,000,298   

Investment Company Securities—(Continued)

  

American Funds New World Fund (Class 1)

     5,538,676      $ 123,124,775   

American Funds U.S. Government/AAA - Rated Securities Fund (Class 1)

     4,257,647        51,474,953   
   

 

 

  

Total Mutual Funds
(Cost $2,287,565,451)

       2,600,401,996   
   

 

 

  

Total Investments—100.1%
(Cost $2,287,565,451) (b)

       2,600,401,996   

Other assets and liabilities (net)—(0.1)%

       (1,452,986 ) 
   

 

 

  
Net Assets—100.0%     $ 2,598,949,010   
   

 

 

  

 

(a) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated Underlying Portfolios.)
(b) As of June 30, 2013, the aggregate cost of investments was $2,287,565,451. The aggregate unrealized appreciation and depreciation of investments were $315,862,108 and $(3,025,563), respectively, resulting in net unrealized appreciation of $312,836,545.

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Investment Company Securities

    $ 2,600,401,996       $ —         $ —         $ 2,600,401,996   

Total Investments

    $ 2,600,401,996       $ —         $ —         $ 2,600,401,996   
                                     

 

MIST-5

See accompanying notes to financial statements.

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 2,423,401,698   

Affiliated investments at value (b)

      177,000,298   

Receivable for:

   

Fund shares sold

      885,903   
  

 

 

  

Total Assets

      2,601,287,899   

Liabilities

   

Payables for:

   

Investments purchased

      159,000   

Fund shares redeemed

      726,903   

Accrued expenses:

   

Management fees

      138,808   

Distribution and service fees

      1,184,992   

Deferred trustees’ fees

      41,001   

Other expenses

      88,185   
  

 

 

  

Total Liabilities

      2,338,889   
  

 

 

  

Net Assets

    $ 2,598,949,010   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,932,102,326   

Undistributed net investment income

      15,524,055   

Accumulated net realized gain

      338,486,084   

Unrealized appreciation on investments and affiliated investments

      312,836,545   
  

 

 

  

Net Assets

    $ 2,598,949,010   
  

 

 

  

Net Assets

   

Class B

    $ 11,489,368   

Class C

      2,587,459,642   

Capital Shares Outstanding*

   

Class B

      1,128,627   

Class C

      255,629,920   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.18   

Class C

      10.12   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $2,113,411,016.
(b) Identified cost of affiliated investments was $174,154,435.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Underlying Portfolios

    $ 23,738,308   

Dividends from Underlying Affiliated Portfolios

      88,816   
  

 

 

  

Total investment income

      23,827,124   

Expenses

   

Management fees

      827,875   

Administration fees

      10,902   

Custodian and accounting fees

      12,290   

Distribution and service fees—Class B

      13,652   

Distribution and service fees—Class C

      7,031,043   

Audit and tax services

      14,660   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      28,183   

Insurance

      7,893   

Miscellaneous

      8,289   
  

 

 

  

Total expenses

      7,977,909   
  

 

 

  

Net Investment Income

      15,849,215   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      418,712,892   

Affiliated investments

      1,159   

Capital gain distributions from Underlying Portfolios

      3,662,859   
  

 

 

  

Net realized gain

      422,376,910   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (235,433,044 ) 

Affiliated investments

      3,307,376   
  

 

 

  

Net change in unrealized depreciation

      (232,125,668 ) 
  

 

 

  

Net realized and unrealized gain

      190,251,242   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 206,100,457   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 15,849,215      $ 25,719,653   

Net realized gain

      422,376,910        150,965,894   

Net change in unrealized appreciation (depreciation)

      (232,125,668 )      178,401,741   
  

 

 

    

 

 

  

Increase in net assets from operations

      206,100,457        355,087,288   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (151,358 )      (118,594 ) 

Class C

      (26,841,832 )      (28,747,814 ) 

Net realized capital gains

     

Class B

      (636,323 )      0   

Class C

      (148,109,393 )      0   
  

 

 

    

 

 

  

Total distributions

      (175,738,906 )      (28,866,408 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      123,696,882        (125,407,689 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      154,058,433        200,813,191   

Net Assets

     

Beginning of period

      2,444,890,577        2,244,077,386   
  

 

 

    

 

 

  

End of period

    $ 2,598,949,010      $ 2,444,890,577   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 15,524,055      $ 26,668,030   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      138,923      $ 1,456,806        220,289      $ 2,101,602   

Reinvestments

      79,644        787,681        12,484        118,594   

Redemptions

      (52,539 )      (551,642 )      (43,796 )      (413,966 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      166,028      $ 1,692,845        188,977      $ 1,806,230   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C

         

Sales

      8,615,215      $ 89,664,001        13,834,525      $ 130,881,003   

Reinvestments

      17,779,596        174,951,225        3,042,097        28,747,814   

Redemptions

      (13,688,874 )      (142,611,189 )      (30,182,863 )      (286,842,736 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      12,705,937      $ 122,004,037        (13,306,241 )    $ (127,213,919 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 123,696,882        $ (125,407,689 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

Financial Highlights

 

Selected per share data       
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009     2008(a)  

Net Asset Value, Beginning of Period

    $ 10.10      $ 8.80       $ 9.33       $ 8.29       $ 6.17      $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (b)

      0.08        0.15         0.16         0.16         0.13        0.14   

Net realized and unrealized gain (loss) on investments

      0.77        1.30         (0.56 )       0.98         1.99        (3.69 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      0.85        1.45         (0.40 )       1.14         2.12        (3.55 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.15 )      (0.15 )       (0.13 )       (0.10 )       (0.00 )(c)      (0.28 ) 

Distributions from net realized capital gains

      (0.62 )      0.00         0.00         0.00         0.00        (0.00 )(d) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.77 )      (0.15 )       (0.13 )       (0.10 )       (0.00 )(c)      (0.28 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.18      $ 10.10       $ 8.80       $ 9.33       $ 8.29      $ 6.17   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (e)

      8.59  (f)      16.54         (4.41 )       13.78         34.36        (35.45 )(f) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%) (h)

      0.32  (g)      0.33         0.33         0.34         0.36        0.65  (g) 

Net ratio of expenses to average net assets (%) (h) (i)

      0.32  (g)      0.33         0.33         0.34         0.35        0.35  (g) 

Ratio of net investment income to average net assets (%) (j)

      1.59  (g)      1.57         1.70         1.90         1.81        2.37  (g) 

Portfolio turnover rate (%)

      39  (f)      17         8         13         7        5  (f) 

Net assets, end of period (in millions)

    $ 11.5      $ 9.7       $ 6.8       $ 5.1       $ 2.4      $ 0.7   

 

     Class C  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009     2008(a)  

Net Asset Value, Beginning of Period

    $ 10.02      $ 8.73       $ 9.26       $ 8.23       $ 6.14      $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (b)

      0.06        0.10         0.11         0.10         0.09        0.23   

Net realized and unrealized gain (loss) on investments

      0.77        1.30         (0.54 )       1.00         2.00        (3.81 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      0.83        1.40         (0.43 )       1.10         2.09        (3.58 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.11 )      (0.11 )       (0.10 )       (0.07 )       (0.00 )(c)      (0.28 ) 

Distributions from net realized capital gains

      (0.62 )      0.00         0.00         0.00         0.00        (0.00 )(d) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.73 )      (0.11 )       (0.10 )       (0.07 )       (0.00 )(c)      (0.28 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.12      $ 10.02       $ 8.73       $ 9.26       $ 8.23      $ 6.14   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (e)

      8.49  (f)      16.16         (4.73 )       13.48         34.04        (35.78 )(f) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%) (h)

      0.62  (g)      0.63         0.63         0.64         0.66        0.70  (g) 

Net ratio of expenses to average net assets (%) (h) (i)

      0.62  (g)      0.63         0.63         0.64         0.65        0.65  (g) 

Ratio of net investment income to average net assets (%) (j)

      1.23  (g)      1.07         1.17         1.25         1.27        4.65  (g) 

Portfolio turnover rate (%)

      39  (f)      17         8         13         7        5  (f) 

Net assets, end of period (in millions)

    $ 2,587.5      $ 2,435.2       $ 2,237.3       $ 2,360.4       $ 1,938.9      $ 785.5   

 

(a) Commencement of operations was April 28, 2008.
(b) Per share amounts based on average shares outstanding during the period.
(c) Distributions from net investment income were less than $0.01.
(d) Distributions from net realized capital gains were less than $0.01.
(e) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(f) Periods less than one year are not computed on an annualized basis.
(g) Computed on an annualized basis.
(h) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(i) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(j) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is American Funds® Growth Allocation Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B and C Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio is designed on established principles of asset allocation to achieve a specific risk profile. The Portfolio will invest substantially all of its assets in certain funds of the American Funds Insurance Series (“AFIS”) (“Underlying Portfolios”). AFIS is an open-end diversified investment management company advised by Capital Research and Management Company (“CRMC”), an indirect, wholly owned subsidiary of The Capital Group Companies, Inc.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying Portfolios are valued at their closing daily net asset value. The net asset value of the Portfolio is calculated based on the net asset values of the Underlying Portfolios in which the Portfolio invests. For information about the use of fair value pricing by the Underlying Portfolios that are funds of AFIS, please refer to the prospectus of the Underlying Portfolios.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to short-term capital gain distributions received from underlying portfolios. These adjustments have no impact on net assets or the results of operations.

3. Certain Risks

Market Risk: In the normal course of business, the Underlying Portfolios invest in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly

 

MIST-9

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

involving the companies whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Underlying Portfolios’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments of the applicable Underlying Portfolios.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 1,005,353,709       $ 0       $ 1,041,478,320   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement (the “Management Agreement”) with the Adviser for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board of Trustees (the “Board”) and has overall responsibility for the general management and administration of the Trust.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$827,875      0.100 %    First $500 million
     0.075 %    $500 million to $1 billion
     0.050 %    Over $1 billion

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B and Class C Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class C distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 1.00% respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class C Shares with respect to activities primarily intended to result in the sale of Class B and Class C Shares. However, under the Class B and Class C distribution agreements, payments to the Distributor for activities pursuant to the

 

MIST-10

Met Investors Series Trust

American Funds® Growth Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Class B and Class C distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.55% of average daily net assets of the Portfolio attributable to its Class B and Class C Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and services fees in the Statement of Operations.

Under the terms of the Class B and Class C distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class C Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Underlying Portfolios

A summary of the Portfolio’s transactions in the securities of affiliated Underlying Portfolios for the six months ended June 30, 2013 was as follows:

 

Underlying Portfolio

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

American Funds International Growth and Income Fund (Class 1)

      2,812,840         8,328,060         (1,800 )      11,139,100   

 

Underlying Portfolio

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		      Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

American Funds International Growth and Income Fund (Class 1)

    $ 1,159       $ —       $ 88,816       $ 177,000,298   
  

 

 

     

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$28,866,408    $ 26,287,531       $ —       $ —       $ 28,866,408       $ 26,287,531   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$26,703,656    $ 148,478,150       $ 461,338,953       $ —       $ 636,520,759   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-11

Met Investors Series Trust

American Funds® Growth Portfolio

For the six months ended June 30, 2013, the Portfolio had a return of 10.10% for Class C versus 13.82% for its benchmark, the S&P 500 Index1.

A $10,000 INVESTMENT COMPARED TO THE S&P 500 INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year2        10 Year2  
American Funds® Growth Portfolio                      

Class C

        10.10           19.74           4.19           7.53   
S&P 500 Index        13.82           20.60           7.01           7.30   

1 The S&P 500 Index is an unmanaged index consisting of 500 stocks chosen for market size, liquidity, and industry group representation. It is a marketweighted index (stock price times number of shares outstanding) with each stock’s weight in the Index proportionate to its market value.

2 The Portfolio and its corresponding Master Fund have essentially the same investment objectives, policies, and strategies. Since the Portfolio commenced operations on April 28, 2008, the five year and ten year returns disclosed in the table above are based on the performance of the Master Fund adjusted to reflect for the Portfolio’s expenses. Similarly, the historical performance shown in the line graph above for periods prior to April 28, 2008 is the performance of the Master Fund, adjusted to reflect the Portfolio’s expenses.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

MIST-1

Met Investors Series Trust

American Funds® Growth Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

American Funds® Growth Portfolio

             Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class C(a)

      Actual        0.91 %     $ 1,000.00         $ 1,101.00         $ 4.74   
     Hypothetical        0.91 %     $ 1,000.00         $ 1,020.28         $ 4.56   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Master Fund in which it invests.

 

MIST-2

Met Investors Series Trust

American Funds® Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Fund—100.1% of Net Assets

 

Security Description   Shares     Value  

Investment Company Security—100.1%

  

American Funds Growth Fund (Class 1)
(Cost $722,602,904)

     14,562,530      $ 974,233,258   
   

 

 

  

Total Investments—100.1%
(Cost $722,602,904) (a)

       974,233,258   

Other assets and liabilities (net)—(0.1)%

       (552,518 ) 
   

 

 

  
Net Assets—100.0%     $ 973,680,740   
   

 

 

  

 

(a) As of June 30, 2013, the aggregate cost of investments was $722,602,904. The aggregate and net unrealized appreciation of investments was $251,630,354.

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Fund            

Investment Company Security

    $ 974,233,258       $ —         $ —         $ 974,233,258   

Total Investments

    $ 974,233,258       $ —         $ —         $ 974,233,258   
                                     

 

See accompanying notes to financial statements.

 

MIST-3

Met Investors Series Trust

American Funds® Growth Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 974,233,258   

Receivable for:

   

Investments sold

      671,684   
  

 

 

  

Total Assets

      974,904,942   

Liabilities

   

Payables for:

   

Fund shares redeemed

      671,683   

Accrued expenses:

   

Distribution and service fees

      448,181   

Deferred trustees’ fees

      41,001   

Other expenses

      63,337   
  

 

 

  

Total Liabilities

      1,224,202   
  

 

 

  

Net Assets

    $ 973,680,740   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 696,322,319   

Undistributed net investment income

      1,332,199   

Accumulated net realized gain

      24,395,868   

Unrealized appreciation on investments

      251,630,354   
  

 

 

  

Net Assets

    $ 973,680,740   
  

 

 

  

Net Assets

   

Class C

    $ 973,680,740   

Capital Shares Outstanding*

   

Class C

      92,142,537   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class C

    $ 10.57   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $722,602,904.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Master Fund

    $ 4,274,375   
  

 

 

  

Total investment income

      4,274,375   

Expenses

   

Administration fees

      10,902   

Custodian and accounting fees

      12,290   

Distribution and service fees—Class C

      2,679,042   

Audit and tax services

      14,660   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      14,789   

Insurance

      3,138   

Miscellaneous

      4,995   
  

 

 

  

Total expenses

      2,762,939   
  

 

 

  

Net Investment Income

      1,511,436   
  

 

 

  

Net Realized and Unrealized Gain

   

Net realized gain on investments

      29,516,620   
  

 

 

  

Net change in unrealized appreciation on investments

      61,645,731   
  

 

 

  

Net realized and unrealized gain

      91,162,351   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 92,673,787   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

American Funds® Growth Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 1,511,436      $ 4,311,784   

Net realized gain

      29,516,620        50,978,545   

Net change in unrealized appreciation

      61,645,731        93,285,920   
  

 

 

    

 

 

  

Increase in net assets from operations

      92,673,787        148,576,249   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class C

      (4,465,930 )      (3,046,439 ) 

Net realized capital gains

     

Class C

      (49,661,136 )      (240,088 ) 
  

 

 

    

 

 

  

Total distributions

      (54,127,066 )      (3,286,527 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      7,369,402        (103,412,696 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      45,916,123        41,877,026   

Net Assets

     

Beginning of period

      927,764,617        885,887,591   
  

 

 

    

 

 

  

End of period

    $ 973,680,740      $ 927,764,617   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 1,332,199      $ 4,286,693   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class C

         

Sales

      3,444,595      $ 36,573,401        7,131,329      $ 68,034,145   

Reinvestments

      5,391,142        54,127,066        337,080        3,286,527   

Redemptions

      (7,787,469 )      (83,331,065 )      (18,249,921 )      (174,733,368 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      1,048,268      $ 7,369,402        (10,781,512 )    $ (103,412,696 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 7,369,402        $ (103,412,696 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

American Funds® Growth Portfolio

Financial Highlights

 

Selected per share data       
     Class C  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011      2010      2009      2008(a)  

Net Asset Value, Beginning of Period

    $ 10.18      $ 8.70      $ 9.15       $ 7.75       $ 5.58       $ 10.00   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (b)

      0.02        0.04        0.03         0.05         0.04         0.15   

Net realized and unrealized gain (loss) on investments

      0.98        1.47        (0.45 )       1.37         2.13         (4.34 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.00        1.51        (0.42 )       1.42         2.17         (4.19 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.05 )      (0.03 )      (0.03 )       (0.02 )       0.00         (0.23 ) 

Distributions from net realized capital gains

      (0.56 )      0.00  (c)      0.00         0.00         0.00         0.00   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.61 )      (0.03 )      (0.03 )       (0.02 )       0.00         (0.23 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.57      $ 10.18      $ 8.70       $ 9.15       $ 7.75       $ 5.58   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (d)

      10.10  (e)      17.41        (4.60 )       18.33         38.89         (41.84 )(e) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%) (f)

      0.57  (g)      0.57        0.57         0.59         0.65         0.92  (g) 

Net ratio of expenses to average net assets (%) (f) (h)

      0.57  (g)      0.57        0.57         0.59         0.65         0.65  (g) 

Ratio of net investment income to average net assets (%)

      0.31  (g)      0.46        0.35         0.59         0.55         3.09  (g) 

Portfolio turnover rate (%)

      2  (e)      3        3         2         1         0  (e) 

Net assets, end of period (in millions)

    $ 973.7      $ 927.8      $ 885.9       $ 748.2       $ 348.3       $ 68.5   

 

(a) Commencement of operations was April 28, 2008.
(b) Per share amounts based on average shares outstanding during the period.
(c) Distributions from net realized capital gains were less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(g) Computed on an annualized basis.
(h) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

American Funds® Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is American Funds® Growth Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class C Shares are currently offered by the Portfolio.

The Portfolio, a feeder fund, seeks to achieve its investment objective by investing all of its investable assets in a master fund, the Growth Fund (the “Master Fund”), a fund of the American Funds Insurance Series (“AFIS”). AFIS is an open-end diversified investment management company advised by Capital Research and Management Company (“CRMC”), an indirect, wholly owned subsidiary of The Capital Group Companies, Inc. The financial statements of the Master Fund accompany the Portfolio’s financial statements and should be read in conjunction with the Portfolio’s financial statements. As of June 30, 2013, the Portfolio owned approximately 4.45% of the Master Fund.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Master Fund are valued at its closing daily net asset value. The net asset value of the Portfolio is calculated based on the net asset value of the Master Fund in which the Portfolio invests. For information about the use of fair value pricing by the Master Fund, please refer to the Notes to Financial Statements for the Master Fund.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. The Portfolio had no permanent book-tax differences at December 31, 2012.

3. Certain Risks

Market Risk: In the normal course of business, the Master Fund invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Master Fund may decline in response to certain events, including those directly involving the companies whose securities are owned by the Master Fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Master Fund may be exposed to counterparty risk, or the risk that an entity with which the Master Fund has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities

 

MIST-7

Met Investors Series Trust

American Funds® Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

recorded in the financial statements. Financial assets that potentially expose the Master Fund to credit and counterparty risk consist principally of cash due from counterparties and investments. The Master Fund manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Master Fund’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Master Fund restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Master Fund in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment in the Master Fund for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 17,919,264       $ 0       $ 63,146,316   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board of Trustees (the “Board”) and has overall responsibility for the general management and administration of the Trust. The Adviser selects the Master Fund in which the Portfolio will invest and monitors the Master Fund investment program. The Adviser is an affiliate of MetLife. The Adviser currently receives no compensation for its services to the Portfolio. In the event that the Portfolio were to withdraw from the Master Fund and invest its assets directly in investment securities, the Adviser would retain the services of an investment subadviser and would receive a management fee at an annual rate of percentage of the assets of the Portfolio as follows:

 

% per annum

    Average Daily Net Assets  
0.750%      ALL   

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class C Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class C distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 1.00% of the average daily net assets of the Portfolio attributable to its Class C Shares with respect to activities primarily intended to result in the sale of Class C Shares. However, under the Class C distribution agreement, payments to the Distributor for activities pursuant to the Class C distribution plan are currently limited to payments at an annual rate equal to 0.55% of average daily net assets of the Portfolio attributable to its Class C Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class C distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class C Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees

 

MIST-8

Met Investors Series Trust

American Funds® Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$3,046,439    $ 3,035,823       $ 240,088       $ —       $ 3,286,527       $ 3,035,823   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$4,322,319    $ 49,605,275       $ 184,919,732       $ —       $ 238,847,326   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-9

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B and C shares of the American Funds® Moderate Allocation Portfolio returned 4.26% and 4.20%, respectively. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

ECONOMIC AND MARKET REVIEW

During the six-month period ended June 30, 2013, global capital markets continued to respond to changing perceptions about the prospects for economic growth and the efforts by governments throughout the world to both avoid a new economic recession and to meet their fiscal responsibilities. Interest rates jumped in the second quarter following ambiguous comments by Federal Reserve (“Fed”) Chairman Benjamin Bernanke concerning the future of the Fed’s quantitative easing measures. The Five Year Treasury Note yield rose from a 0.74% level at the end of 2012 to a 1.40% level at the end of June. For the entire six-month period, the Barclays U.S. Aggregate Bond Index returned a negative 2.44%. As expected in a rising interest rate environment, long maturity bonds declined more than short maturity bonds. Below investment grade bonds were able to provide modestly positive returns because of strong first quarter returns and higher coupons. Foreign-denominated bonds fell even more sharply because of the impact of a strong U.S. dollar relative to other currencies.

Even with a decline late in the second quarter, U.S. stocks produced strong returns during the first half of 2013. The Standard & Poor’s 500 Index returned 13.82% for the period. Small cap stocks, as measured by the Russell 2000 Index, performed even better with a 15.86% return. While both investment styles posted double digit returns, value style stocks performed slightly better than growth style stocks (15.90% for the Russell 1000 Value Index compared to 11.80% for the Russell 1000 Growth Index). The Health Care and Financial Services sectors were the best performers for the period; the Information Technology and Materials sectors trailed.

On a local currency basis, foreign stocks from developed countries produced a return close to that of domestic stocks as measured by the 11.01% local currency return of the MSCI EAFE Index. A rise in the value of the U.S. dollar reduced that return for U.S. investors to only 4.10%. Emerging market stocks performed even worse as the strong dollar and concerns about China’s slower economic growth produced a return of negative 9.57% in the MSCI Emerging Markets Index. Combining emerging and developed markets, foreign stocks produced a nearly flat return of 0.16% for the six-month period as measured by the MSCI All Country World Ex U.S. Index in U.S. dollars.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The American Funds Moderate Allocation Portfolio invested all of its assets in funds managed by the Capital Research and Management Company to maintain a broad asset allocation of approximately 50% to fixed income and 50% to equities. The underlying portfolios included funds of the American Funds Insurance Series (AFIS) and shares of retail mutual funds. The Portfolio’s broad asset class goals did not change. While the Portfolio did not have a formal asset class goal for cash, it did hold a cumulative cash position of about 6%. This cash position had a mixed impact on relative performance. The cash held in the underlying fixed income funds buffered some of the negative impact of rising interest rates on bonds, but the cash held in the domestic equity funds constrained performance.

The underlying fixed income funds produced returns in line with expectations. The two core bond funds, the AFIS U.S. Government / AAA-Rated Securities Fund and the AFIS Bond Fund, lost value during the period as interest rates rose. The positive impact of the AFIS Bond Fund’s exposure to high-yield bonds, which performed better than investment grade bonds during the full period, was offset by the negative impact of foreign bonds, which performed worse. While the AFIS High-Income Fund added to absolute performance, the Portfolio’s overall underweight to this asset class hurt relative performance. The Portfolio held a slight overweight to foreign bonds, which hurt performance.

All of the underlying domestic equity funds posted strongly positive returns for the period and contributed to absolute performance. The Portfolio’s cumulative tilt toward growth style stocks and its emphasis on large capitalization stocks detracted from relative performance as value style stocks and small and mid-cap stocks fared better over the first six months of 2013. Even with these headwinds, overall strong security selection by these funds had a positive impact on relative performance. Not unexpectedly, those underlying funds with the most exposure to value style stocks (the AFIS Blue Chip Income & Growth Fund and the American Mutual Fund) contributed the most to relative performance. Both funds avoided poor performing Apple, Inc. (-24.6% for the period) and held an overweight in the Microsoft Corporation, which returned over 30% for the period. The AFIS Growth Fund detracted from relative performance due in part to its exposure to Canadian energy companies Pacific Rubiales Energy Corp. and Suncor Energy, Inc.

 

MIST-1

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

As a group, the foreign equity funds detracted from absolute performance in part because a strong dollar made foreign securities less valuable to U.S. dollar based investors. Within foreign equities, the Portfolio’s exposure to developing countries hurt performance as the shares of companies from the emerging markets declined much more than those from developed countries. On a relative basis, both the AFIS International Fund and the AFIS International Growth and Income Fund helped performance.

Investment Committee

MetLife Advisers, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

 


A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
American Funds® Moderate Allocation Portfolio                      

Class B

        4.26           10.30           5.03           4.17   

Class C

        4.20           10.06           4.72           3.88   
Dow Jones Moderate Index        4.17           10.56           5.47           4.41   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B and Class C shares is 4/28/2008. Index returns are based on an inception date of 4/28/2008.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
American Funds U.S. Government/AAA - Rated Securities Fund (Class 1)      22.1   
American Funds Bond Fund (Class 1)      16.9   
American Funds Blue Chip Income and Growth Fund (Class 1)      9.1   
American Funds American Mutual Fund (Class R-6)      9.1   
American Funds Growth-Income Fund (Class 1)      9.1   
American Funds Growth Fund (Class 1)      5.0   
American Funds Fundamental Investors Fund (Class R-6)      5.0   
American Funds AMCAP Fund (Class R-6)      5.0   
American Funds High-Income Bond Fund (Class 1)      5.0   
American Funds International Fund (Class 1)      5.0   

 

MIST-3

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

American Funds® Moderate Allocation Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)

      Actual      0.70 %     $ 1,000.00         $ 1,042.60         $ 3.55   
     Hypothetical*      0.70 %     $ 1,000.00         $ 1,021.32         $ 3.51   

Class C(a)

      Actual      1.00 %     $ 1,000.00         $ 1,042.00         $ 5.06   
     Hypothetical*      1.00 %     $ 1,000.00         $ 1,019.84         $ 5.01   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

 

MIST-4

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—100.1% of Net Assets

 

Security Description   Shares     Value  

Investment Company Securities—100.1%

  

American Funds AMCAP Fund (Class R-6)

     6,316,319      $    152,981,246   

American Funds American Mutual Fund
(Class R-6)

     8,718,973        275,257,991   

American Funds Blue Chip Income and Growth Fund (Class 1)

     24,021,342        275,524,798   

American Funds Bond Fund (Class 1) (a)

     47,373,553        513,529,314   

American Funds Fundamental Investors Fund (Class R-6)

     3,356,021        153,168,813   

American Funds Global Bond Fund (Class 1)

     7,361,736        85,175,287   

American Funds Global Small Capitalization Fund (Class 1)

     1,384,880        30,176,533   

American Funds Growth Fund (Class 1)

     2,289,533        153,169,762   

American Funds Growth-Income Fund (Class 1)

     6,411,857        275,068,654   

American Funds High-Income Bond Fund (Class 1) (a)

     13,652,902        152,366,381   

American Funds International Fund (Class 1)

     8,278,584        150,753,019   

American Funds International Growth and Income Fund (Class 1) (a)

     7,451,599        118,405,911   

Investment Company Securities—(Continued)

  

American Funds New World Fund (Class 1)

     1,336,857      $ 29,718,333   

American Funds U.S. Government/AAA - Rated Securities Fund (Class 1) (a)

     55,405,566        669,853,290   
   

 

 

  

Total Mutual Funds
(Cost $2,880,673,119)

       3,035,149,332   
   

 

 

  

Total Investments—100.1%
(Cost $2,880,673,119) (b)

       3,035,149,332   

Other assets and liabilities (net)—(0.1)%

       (1,674,422 ) 
   

 

 

  
Net Assets—100.0%     $ 3,033,474,910   
   

 

 

  

 

(a) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated Underlying Portfolios.)
(b) As of June 30, 2013, the aggregate cost of investments was $2,880,673,119. The aggregate unrealized appreciation and depreciation of investments were $182,004,023 and $(27,527,810), respectively, resulting in net unrealized appreciation of $154,476,213.

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Investment Company Securities

    $ 3,035,149,332       $ —         $ —         $ 3,035,149,332   

Total Investments

    $ 3,035,149,332       $ —         $ —         $ 3,035,149,332   
                                     

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 1,580,994,436   

Affiliated investments at value (b)

      1,454,154,896   

Receivable for:

   

Investments sold

      1,023,805   

Fund shares sold

      144,452   
  

 

 

  

Total Assets

      3,036,317,589   

Liabilities

   

Payables for:

   

Investments purchased

      2,228   

Fund shares redeemed

      1,166,028   

Accrued expenses:

   

Management fees

      157,080   

Distribution and service fees

      1,387,522   

Deferred trustees’ fees

      41,001   

Other expenses

      88,820   
  

 

 

  

Total Liabilities

      2,842,679   
  

 

 

  

Net Assets

    $ 3,033,474,910   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 2,650,231,225   

Undistributed net investment income

      32,955,633   

Accumulated net realized gain

      195,811,839   

Unrealized appreciation on investments and affiliated investments

      154,476,213   
  

 

 

  

Net Assets

    $ 3,033,474,910   
  

 

 

  

Net Assets

   

Class B

    $ 5,344,825   

Class C

      3,028,130,085   

Capital Shares Outstanding*

   

Class B

      523,248   

Class C

      297,820,928   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.21   

Class C

      10.17   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $1,422,864,425.
(b) Identified cost of affiliated investments was $1,457,808,694.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Underlying Portfolios

    $ 37,085,767   

Dividends from Underlying Affiliated Portfolios

      5,710,512   
  

 

 

  

Total investment income

      42,796,279   

Expenses

   

Management fees

      953,853   

Administration fees

      10,902   

Custodian and accounting fees

      12,290   

Distribution and service fees—Class B

      6,189   

Distribution and service fees—Class C

      8,433,222   

Audit and tax services

      14,660   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      35,116   

Insurance

      9,900   

Miscellaneous

      10,357   
  

 

 

  

Total expenses

      9,509,612   
  

 

 

  

Net Investment Income

      33,286,667   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      188,282,380   

Affiliated investments

      1,390,525   

Capital gain distributions from Underlying Portfolios

      1,187,429   

Capital gain distributions from Affiliated Underlying Portfolios

      23,929,545   
  

 

 

  

Net realized gain

      214,789,879   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (65,081,434 ) 

Affiliated investments

      (56,048,376 ) 
  

 

 

  

Net change in unrealized depreciation

      (121,129,810 ) 
  

 

 

  

Net realized and unrealized gain

      93,660,069   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 126,946,736   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 33,286,667      $ 41,301,315   

Net realized gain

      214,789,879        190,443,162   

Net change in unrealized appreciation (depreciation)

      (121,129,810 )      78,876,105   
  

 

 

    

 

 

  

Increase in net assets from operations

      126,946,736        310,620,582   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (100,822 )      (84,692 ) 

Class C

      (50,974,271 )      (61,824,506 ) 

Net realized capital gains

     

Class B

      (273,594 )      (47,065 ) 

Class C

      (168,130,607 )      (40,417,477 ) 
  

 

 

    

 

 

  

Total distributions

      (219,479,294 )      (102,373,740 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      93,823,421        (92,001,391 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      1,290,863        116,245,451   

Net Assets

     

Beginning of period

      3,032,184,047        2,915,938,596   
  

 

 

    

 

 

  

End of period

    $ 3,033,474,910      $ 3,032,184,047   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 32,955,633      $ 50,744,059   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      84,885      $ 910,137        180,471      $ 1,843,497   

Reinvestments

      36,816        374,416        13,084        131,757   

Redemptions

      (14,487 )      (158,265 )      (63,376 )      (637,488 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      107,214      $ 1,126,288        130,179      $ 1,337,766   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C

         

Sales

      3,683,871      $ 39,050,740        11,008,316      $ 111,947,565   

Reinvestments

      21,629,307        219,104,878        10,193,617        102,241,983   

Redemptions

      (15,603,483 )      (165,458,485 )      (30,150,500 )      (307,528,705 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      9,709,695      $ 92,697,133        (8,948,567 )    $ (93,339,157 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 93,823,421        $ (92,001,391 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

Financial Highlights

 

Selected per share data       
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008(a)  

Net Asset Value, Beginning of Period

    $ 10.58      $ 9.87       $ 10.05       $ 9.28       $ 7.49       $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (b)

      0.14        0.20         0.25         0.24         0.28         0.11   

Net realized and unrealized gain (loss) on investments

      0.31        0.90         (0.20 )       0.69         1.51         (2.34 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.45        1.10         0.05         0.93         1.79         (2.23 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.22 )      (0.25 )       (0.18 )       (0.16 )       0.00         (0.28 ) 

Distributions from net realized capital gains

      (0.60 )      (0.14 )       (0.05 )       0.00         0.00         (0.00 )(c) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.82 )      (0.39 )       (0.23 )       (0.16 )       0.00         (0.28 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.21      $ 10.58       $ 9.87       $ 10.05       $ 9.28       $ 7.49   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (d)

      4.26  (e)      11.28         0.44         10.15         23.90         (22.30 )(e) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (g)

      0.32  (f)      0.32         0.32         0.34         0.37         0.85  (f) 

Net ratio of expenses to average net assets (%) (g) (h)

      0.32  (f)      0.32         0.32         0.34         0.35         0.35  (f) 

Ratio of net investment income to average net assets (%) (i)

      2.67  (f)      1.93         2.51         2.56         3.32         1.75  (f) 

Portfolio turnover rate (%)

      25  (e)      12         7         7         14         13  (e) 

Net assets, end of period (in millions)

    $ 5.3      $ 4.4       $ 2.8       $ 1.6       $ 0.7       $ 0.1   

 

     Class C  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008(a)  

Net Asset Value, Beginning of Period

    $ 10.51      $ 9.81       $ 9.99       $ 9.23       $ 7.48       $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (b)

      0.11        0.14         0.18         0.19         0.24         0.49   

Net realized and unrealized gain (loss) on investments

      0.33        0.91         (0.15 )       0.72         1.51         (2.73 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.44        1.05         0.03         0.91         1.75         (2.24 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.18 )      (0.21 )       (0.16 )       (0.15 )       0.00         (0.28 ) 

Distributions from net realized capital gains

      (0.60 )      (0.14 )       (0.05 )       0.00         0.00         (0.00 )(c) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.78 )      (0.35 )       (0.21 )       (0.15 )       0.00         (0.28 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.17      $ 10.51       $ 9.81       $ 9.99       $ 9.23       $ 7.48   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (d)

      4.20  (e)      10.84         0.19         9.91         23.40         (22.40 )(e) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (g)

      0.62  (f)      0.62         0.62         0.64         0.67         0.70  (f) 

Net ratio of expenses to average net assets (%) (g) (h)

      0.62  (f)      0.62         0.62         0.64         0.65         0.65  (f) 

Ratio of net investment income to average net assets (%) (i)

      2.17  (f)      1.36         1.79         2.04         2.85         8.74  (f) 

Portfolio turnover rate (%)

      25  (e)      12         7         7         14         13  (e) 

Net assets, end of period (in millions)

    $ 3,028.1      $ 3,027.8       $ 2,913.1       $ 2,590.2       $ 1,575.4       $ 449.3   

 

(a) Commencement of operations was April 28, 2008.
(b) Per share amounts based on average shares outstanding during the period.
(c) Distributions from net realized capital gains were less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.
(g) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(h) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(i) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is American Funds® Moderate Allocation Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B and C Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio is designed on established principles of asset allocation to achieve a specific risk profile. The Portfolio will invest substantially all of its assets in certain funds of the American Funds Insurance Series (“AFIS”) (“Underlying Portfolios”). AFIS is an open-end diversified investment management company advised by Capital Research and Management Company (“CRMC”), an indirect, wholly owned subsidiary of The Capital Group Companies, Inc.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying Portfolios are valued at their closing daily net asset value. The net asset value of the Portfolio is calculated based on the net asset values of the Underlying Portfolios in which the Portfolio invests. For information about the use of fair value pricing by the Underlying Portfolios that are funds of AFIS, please refer to the prospectus of the Underlying Portfolios.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to short-term capital gain distributions received from underlying portfolios. These adjustments have no impact on net assets or the results of operations.

3. Certain Risks

Market Risk: In the normal course of business, the Underlying Portfolios invest in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty

 

MIST-9

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

risk). The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the companies whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Underlying Portfolios’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments of the applicable Underlying Portfolios.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 770,125,483       $ 0       $ 862,507,734   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement (the “Management Agreement”) with the Adviser for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board of Trustees (the “Board”) and has overall responsibility for the general management and administration of the Trust.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser

for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$953,853      0.100 %    First $500 million
     0.075 %    $500 million to $1 billion
     0.050 %    Over $1 billion

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B and Class C Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class C distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 1.00% respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class C Shares with respect to activities primarily intended to result in the sale of Class B and Class C

 

MIST-10

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Shares. However, under the Class B and Class C distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class C distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.55% of average daily net assets of the Portfolio attributable to its Class B and Class C Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and services fees in the Statement of Operations.

Under the terms of the Class B and Class C distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class C Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Underlying Portfolios

A summary of the Portfolio’s transactions in the securities of affiliated Underlying Portfolios for the six months ended June 30, 2013 was as follows:

 

Underlying Portfolio

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

American Funds Bond Fund (Class 1)

      45,542,105         1,888,827         (57,379 )      47,373,553   

American Funds High-Income Bond Fund (Class 1)

      13,764,988         196,333         (308,419 )      13,652,902   

American Funds International Growth and Income Fund (Class 1)

      2,004,382         5,449,010         (1,793 )      7,451,599   

American Funds U.S. Government/AAA - Rated Securities Fund (Class 1)

      55,656,770         1,604,255         (1,855,459 )      55,405,566   
          

 

 

  
             123,883,620   
          

 

 

  

 

Underlying Portfolio

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		      Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

American Funds Bond Fund (Class 1)

    $ 114,029       $ 5,783,836       $ 2,238,904       $ 513,529,314   

American Funds High-Income Bond Fund (Class 1)

      583,787         —         2,115,913         152,366,381   

American Funds International Growth and Income Fund (Class 1)

      1,138         —         59,573         118,405,911   

American Funds U.S. Government/AAA - Rated Securities Fund (Class 1)

      691,571         18,145,709         1,296,122         669,853,290   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 1,390,525       $ 23,929,545       $ 5,710,512       $ 1,454,154,896   
  

 

 

     

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$61,909,198    $ 44,073,534       $ 40,464,542       $ 13,813,992       $ 102,373,740       $ 57,887,526   

 

MIST-11

Met Investors Series Trust

American Funds® Moderate Allocation Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$50,779,685    $ 168,345,439       $ 256,686,745       $ —       $ 475,811,869   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-12

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Managed by AQR Capital Management, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the AQR Global Risk Balanced Portfolio returned -5.69%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

In the first half of 2013, the U.S. equity markets were the best performing asset class globally, while emerging market equities, government bonds, and inflation related assets (global inflation-linked bonds and commodities) underperformed. U.S. equities were driven by the relative strength in the U.S. economy, as the housing recovery became more entrenched and employment improved; however, still well below levels of the previous expansion. Despite strength in the equity market, there was increased turbulence in fixed income markets. Chairman Bernanke surprised markets in a May 22 speech that suggested the Federal Reserve (“Fed”) might slow asset purchases in its quantitative easing program if the data continued to improve. After the June 19th Fed meeting, Bernanke laid out a potential timetable in which asset purchases would stop completely by the middle of 2014. This caused bond yields to rise steadily throughout June with a sharp move at the end of the month. In particular, inflation-linked bonds took large losses as both nominal yields rose and inflation expectations declined.

In emerging markets, Chinese growth continued to slow and policymakers appeared to be more comfortable with lower growth levels going forward. The People’s Bank of China was reluctant to provide stimulus due to fears of a credit and housing bubble. The expectation of decreased demand from China reinforced selling pressure in metals such as gold and copper. Commodity exporters such as Australia and Canada were hit particularly hard.

Japanese stocks rallied and the yen fell early in the period due to optimism over expansionary monetary policy announced by new Bank of Japan Governor Haruhiko Kuroda. The moves were partially reversed as the first half of 2013 progressed due to disappointment over the lack of a specific plan for structural reform of the economy.

Early in 2013, fears of a bad outcome in Europe reemerged after deadlocked Italian elections and a banking crisis in Cyprus. Fears subsided after European authorities were successful in containing the Cypriot banking problems, and Italy formed a coalition government. The European Central Bank cut its main refinancing rate in June and many European markets performed well late in the first half of 2013.

PORTFOLIO REVIEW / CURRENT POSITIONING

The AQR Global Risk Balanced Portfolio (“GRB” or the “Portfolio”) is a globally diversified asset allocation portfolio. GRB seeks to provide diversification across three primary sources of risk: equities, government bonds, and inflation-related assets (global inflation-linked bonds and commodities). The Portfolio diversifies by risk rather than dollars; this means that it will generally hold more dollars in low risk assets (typically bonds) and fewer dollars in high risk assets (typically equities). To achieve GRB’s target volatility level of 10%, the Portfolio is normally moderately levered through investments in equity, bond and commodity futures. GRB’s portfolio management process adjusts exposures to each of the three risk categories using a proprietary risk forecasting model. The process seeks to realize a steady risk level in each of the Portfolio’s three categories and for the Portfolio as a whole. Our objective is to keep the Portfolio diversified not only across asset classes, but also through time so no single period has a disproportionate impact on the Portfolio’s long-term results. Our research suggests that this approach, in addition to broad asset diversification, has been effective in helping to protect the Portfolio in periods of market stress, and improves long term risk adjusted returns.

The Portfolio returned -5.7% for the first half of 2013 ending June 30, 2013, underperforming the Dow Jones Global Moderate Portfolio Index by -9.9%. Returns for the three risk categories in the Portfolio were mixed for the 6-month period: equity risk contributed +3.3% while government bonds detracted -3.6% and inflation risk detracted -5.4%. Specifically, the second quarter of 2013 was a difficult period for risk balanced strategies as market perceptions of changing central bank policy drove interest rates higher and caused a repricing of all risky assets. This was compounded by weaker demand from China which hurt inflation-related assets, specifically commodities.

AQR’s systematic Portfolio management process reduces position sizes as volatility increases to maintain the portfolio’s target risk. Additionally, AQR employs a Drawdown Control System which reduces the Portfolio’s target risk when the Portfolio experiences losses beyond a pre-determined threshold. This process is intended to reflect the reality that investors’ risk tolerance is reduced when experiencing losses. Over the second quarter, a rise in market volatility led us to reduce positions sizes. This, coupled with losses in late June, caused us to temporarily reduce our risk target. As the Portfolio’s performance has improved, its risk target has increased to near normal levels.

The Portfolio entered the beginning of 2013 with relatively high exposures as a result of historically low volatility across all asset classes. Throughout June, our active portfolio management process significantly reduced expsoure due to the sharp increase in volatility. This reduction was particularly pronounced in inflation-linked bonds and government bonds—two markets which experienced marked increases in risk. The total Portfolio exposure decreased to 101% at June month-end versus 234% at the end of the first quarter. The largest decrease was in our exposure to global inflation-linked bonds from 53% to 16%, a -70% decrease. Nominal bonds decreased from 120% to 57%, equities decreased from 39% to 16% and commodities decreased from 23% to 12%.

 

MIST-1

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Managed by AQR Capital Management, LLC

Portfolio Manager Commentary*—(Continued)

 

The Portfolio aims to make every asset matter—not just equities. This diversification helps on average, however in the second quarter of 2013 most assets had negative performance, creating an environment where diversification did not pay off. The recent market environment, where all three asset classes negatively contributed to the Portfolio, is unusual and an event expected only to occur approximately 13% of three month periods. Furthermore, the second quarter was particularly poor not just because all asset classes were negative, but more because of the magnitude of the asset class returns. Over the longer term we believe that a risk diversified approach to investing provides more consistent returns across a more diverse spectrum of market environments than a traditional 60/40 portfolio.

Many investors express concern over higher risk allocations to government bonds in a risk balanced portfolio. It is important to note that a risk balanced strategy may still make money in a rising rate environment, especially if rates rise at a slower pace relative to what markets expect. Yet, regardless of the interest rate environment our central tenant remains true: it is extremely hard to forecast returns, and, therefore, it is important to remain diversified. In the shorter term this may lead to divergences from the Dow Jones Moderate Index, but in the long run in our opinion a diversified portfolio outperforms.

Brian Hurst

Michael Mendelson

Yao Hua Ooi

Portfolio Managers

AQR Capital Management, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
AQR Global Risk Balanced Portfolio                 

Class B

        -5.69           1.16           3.53   
Dow Jones Moderate Index        4.17           10.56           4.33   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 5/2/2011. Index returns are based on an inception date of 5/2/2011.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

     % of
Net Assets		  
U.S. Treasury Inflation Indexed Notes      9.1   
Deutsche Bundesrepublik Inflation Linked Bonds      4.1   
United Kingdom Gilt Inflation Linked      2.4   
France Government Bond OAT      2.1   

Exposures by Asset Class*

 

     % of
Net Assets		  
Global Developed Bonds      56.8   
Global Inflation-Linked Bonds      15.7   
Global Developed Equities      12.7   
Commodities - Production Weighted      12.3   
Global Emerging Equities      2.1   
U.S. Mid Cap Equities      0.8   
U.S. Small Cap Equities      0.7   
* The percentages noted above are based on the notional amounts by asset class as a percentage of net assets.    

 

MIST-3

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

 

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

AQR Global Risk Balanced Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)

      Actual      0.90 %     $ 1,000.00         $ 943.10         $ 4.34   
     Hypothetical*      0.90 %     $ 1,000.00         $ 1,020.33         $ 4.51   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 7 of the Notes to Consolidated Financial Statements.

 

MIST-4

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013

U.S. Treasury & Government Agencies—9.1% of Net Assets

 

Security Description   Shares/
Principal
Amount*		     Value  

U.S. Treasury—9.1%

    

U.S. Treasury Inflation Indexed Notes
0.125%, 04/15/17

     127,566,726      $ 130,885,502   

0.125%, 01/15/22 (a)

     225,824,718        221,184,697   

1.375%, 07/15/18

     46,477,747        50,762,438   

1.625%, 01/15/18

     51,503,782        56,376,503   

2.625%, 07/15/17

     56,436,689        64,024,771   
   

 

 

  

Total U.S. Treasury & Government Agencies (Cost $554,440,014)

       523,233,911   
   

 

 

  
Foreign Government—8.6%   

Sovereign—8.6%

    

Deutsche Bundesrepublik Inflation Linked Bonds
1.500%, 04/15/16 (EUR)

     80,141,212        109,733,925   

1.750%, 04/15/20 (EUR)

     84,930,870        124,523,768   

France Government Bond OAT
0.250%, 07/25/18 (EUR)

     11,502,819        15,142,667   

1.100%, 07/25/22 (EUR)

     51,560,361        70,176,576   

1.300%, 07/25/19 (EUR)

     27,621,378        38,631,876   

United Kingdom Gilt Inflation Linked
1.875%, 11/22/22 (GBP)

     73,746,914        137,200,640   
   

 

 

  

Total Foreign Government
(Cost $528,429,012)

       495,409,452   
   

 

 

  
Short-Term Investments—83.3%   

Mutual Funds—63.9%

    

BlackRock Liquidity Funds T-Fund Portfolio, Institutional Class, 0.010% (b)

     942,286,169        942,286,169   

Dreyfus Treasury & Agency Cash Management, Institutional Class, 0.010% (b)

     942,286,832        942,286,832   

State Street Institutional Liquid Reserve Fund, Institutional Class, 0.090% (b) (c)

     858,135,294        858,135,294   

UBS Select Treasury Preferred Fund, Institutional Class, 0.010% (b)

     945,760,770        945,760,770   
   

 

 

  
      3,688,469,065   
   

 

 

  

U.S. Treasury—10.7%

    

U.S. Treasury Bills
0.060%, 12/12/13 (d)

     87,800,000        87,775,208   

0.065%, 12/12/13 (d)

     70,600,000        70,578,791   

0.067%, 12/12/13 (d)

     35,300,000        35,289,473   

0.070%, 12/12/13 (d)

     424,700,000        424,572,166   
   

 

 

  
      618,215,638   
   

 

 

  

Repurchase Agreements — 8.7%

  

Barclays Bank plc
Repurchase Agreement dated
06/25/13-06/27/13 at 0.06% to be repurchased at $355,619,035, on 07/17/13 (a)

     355,607,125      $ 355,607,125   

Repurchase Agreement dated
06/20/13-06/24/13 at 0.07% to be repurchased at $149,848,819, on 07/17/13 (a)

     149,842,000        149,842,000   
   

 

 

  
      505,449,125   
   

 

 

  

Total Short-Term Investments
(Cost $4,812,126,999)

       4,812,133,828   
   

 

 

  

Total Investments—101.0%
(Cost $5,894,996,025) (e)

       5,830,777,191   

Other assets and liabilities (net)—(1.0)%

       (55,355,803 ) 
   

 

 

  
Net Assets—100.0%     $ 5,775,421,388   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All of the security was pledged as net collateral against open repurchase agreements and reverse repurchase agreements. As of June 30, 2013, the value of securities pledged amounted to $221,184,697. (See Note 3 of the notes to consolidated financial statements for more details on repurchase agreements and reverse repurchase agreements collateral).
(b) The rate shown represents the annualized seven-day yield as of June 30, 2013.
(c) All or a portion of the security was pledged as collateral against open swap contracts. As of June 30, 2013, the market value of securities pledged was $6,933,122.
(d) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(e) As of June 30, 2013, the aggregate cost of investments was $5,894,996,025. The aggregate unrealized appreciation and depreciation of investments were $7,408,632 and $(71,627,466), respectively, resulting in net unrealized depreciation of $(64,218,834).
(EUR)— Euro
(GBP)— British Pound

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-5

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

       

Counterparty

    Settlement Date      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
  EUR      10,580,000         Royal Bank of Scotland plc      09/18/13       $ 14,114,951       $ (338,812 ) 
  EUR      10,740,000         Royal Bank of Scotland plc      09/18/13         14,204,815         (220,341 ) 
  EUR      39,805,868         Royal Bank of Scotland plc      09/18/13         52,319,758         (488,834 ) 
  EUR      59,940,246         Royal Bank of Scotland plc      09/18/13         79,014,491         (966,743 ) 
  EUR      68,131,164         Royal Bank of Scotland plc      09/18/13         89,460,920         (747,839 ) 
  EUR      97,295,970         Royal Bank of Scotland plc      09/18/13         126,574,467         113,890   
  EUR      99,560,552         Royal Bank of Scotland plc      09/18/13         129,962,661         (325,608 ) 
  EUR    107,639,708         Royal Bank of Scotland plc      09/18/13         140,977,233         (820,371 ) 
  EUR    112,218,424         Royal Bank of Scotland plc      09/18/13         146,170,557         (51,783 ) 
  EUR    123,649,990         Royal Bank of Scotland plc      09/18/13         165,124,918         (4,121,187 ) 
  GBP        7,850,000         Royal Bank of Scotland plc      09/18/13         11,856,035         77,337   
  GBP      10,310,000         Royal Bank of Scotland plc      09/18/13         16,174,724         (501,723 ) 
  GBP      11,416,687         Royal Bank of Scotland plc      09/18/13         17,561,845         (206,486 ) 
  GBP      20,442,316         Royal Bank of Scotland plc      09/18/13         31,555,352         (479,460 ) 
  GBP      21,055,923         Royal Bank of Scotland plc      09/18/13         32,547,425         (538,743 ) 
  GBP      27,190,396         Royal Bank of Scotland plc      09/18/13         41,927,945         (593,792 ) 
  GBP      27,311,678         Royal Bank of Scotland plc      09/18/13         41,667,515         (148,993 ) 
  GBP      33,754,709         Royal Bank of Scotland plc      09/18/13         52,959,552         (1,646,497 ) 
  GBP      34,117,544         Royal Bank of Scotland plc      09/18/13         52,220,654         (356,026 ) 
  GBP      74,848,075         Royal Bank of Scotland plc      09/18/13         113,832,096         (49,945 ) 
  JPY 1,193,000,000         Royal Bank of Scotland plc      09/18/13         12,035,077         (2,149 ) 
  RUB      44,645,000         Royal Bank of Scotland plc      09/18/13         1,339,491         837   
  RUB    147,960,000         Royal Bank of Scotland plc      09/18/13         4,427,299         14,743   
  RUB    179,118,000         Royal Bank of Scotland plc      09/18/13         5,397,591         (20,127 ) 
Contracts to Deliver                              
  EUR 1,015,899,423         Royal Bank of Scotland plc      09/18/13       $ 1,333,693,597       $ 10,898,529   
  GBP    366,165,324         Royal Bank of Scotland plc      09/18/13         563,836,611         7,201,343   
  RUB    735,768,000         Royal Bank of Scotland plc      09/18/13         22,416,578         327,419   
             

 

 

  

 

Net Unrealized Appreciation

  

    $ 6,008,639   
             

 

 

  

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		    Number of
Contracts		      Notional Amount      Unrealized
Appreciation/
(Depreciation)		  

Aluminum Futures 3 Months

    07/02/13      56         USD         2,658,960       $ (237,311 ) 

Aluminum Futures 3 Months

    07/05/13      58         USD         2,732,955         (222,643 ) 

Aluminum Futures 3 Months

    07/16/13      50         USD         2,362,580         (191,643 ) 

Aluminum Futures 3 Months

    07/19/13      15         USD         711,024         (59,177 ) 

Aluminum Futures 3 Months

    07/24/13      6         USD         285,527         (24,407 ) 

Aluminum Futures 3 Months

    08/02/13      6         USD         277,911         (16,107 ) 

Aluminum Futures 3 Months

    08/22/13      12         USD         559,787         (33,134 ) 

Aluminum Futures 3 Months

    09/20/13      62         USD         2,776,149         (32,525 ) 

Aluminum Futures 3 Months

    09/24/13      92         USD         4,082,647         (7,622 ) 

Aluminum Futures 3 Months

    09/25/13      184         USD         8,192,894         (40,912 ) 

Aluminum Futures 3 Months

    09/26/13      51         USD         2,264,506         (4,467 ) 

Aluminum HG Futures

    09/18/13      697         USD         34,502,615         (3,673,434 ) 

Amsterdam Index

    07/19/13      46         EUR         3,226,712         (71,008 ) 

Australian 10 Year Treasury Bond Futures

    09/16/13      650         AUD         79,042,516         (1,910,503 ) 

Brent Crude Oil Pent Financial Futures

    08/14/13      1,538         USD         156,876,000         246,080   

CAC 40 Index Futures

    07/19/13      305         EUR         11,703,497         (407,772 ) 

Canada Government Bond 10 Year Futures

    09/19/13      735         CAD         100,069,411         (3,311,840 ) 

Cattle Feeder Futures

    08/29/13      53         USD         3,978,482         (18,058 ) 

Cocoa Futures

    09/13/13      102         USD         2,404,027         (196,747 ) 

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-6

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013

 

Futures Contracts—(Continued)

 

Futures Contracts—Long

    Expiration
Date		    Number of
Contracts		      Notional Amount      Unrealized
Appreciation/
(Depreciation)		  

Coffee Futures

    09/18/13      84         USD         4,084,055       $ (291,455 ) 

Copper Futures 3 Months

    07/02/13      22         USD         4,109,130         (407,080 ) 

Copper Futures 3 Months

    07/05/13      24         USD         4,471,238         (431,588 ) 

Copper Futures 3 Months

    07/16/13      13         USD         2,351,721         (161,864 ) 

Copper Futures 3 Months

    07/19/13      14         USD         2,442,672         (84,047 ) 

Copper Futures 3 Months

    07/24/13      16         USD         2,800,120         (104,120 ) 

Copper Futures 3 Months

    08/02/13      14         USD         2,466,560         (106,632 ) 

Copper Futures 3 Months

    08/22/13      5         USD         929,874         (86,343 ) 

Copper Futures 3 Months

    09/20/13      23         USD         3,921,537         (40,045 ) 

Copper Futures 3 Months

    09/24/13      40         USD         6,676,064         74,186   

Copper Futures 3 Months

    09/25/13      71         USD         12,078,989         (97,437 ) 

Copper Futures 3 Months

    09/26/13      24         USD         4,038,050         11,998   

Copper LME Futures

    09/18/13      282         USD         52,579,351         (4,984,801 ) 

Corn Futures

    09/13/13      1,092         USD         30,931,166         (1,051,316 ) 

Cotton No. 2 Futures

    12/06/13      184         USD         7,854,660         (125,740 ) 

DAX Index Futures

    09/20/13      53         EUR         10,936,944         (496,359 ) 

Euro Stoxx 50 Index Futures

    09/20/13      1,188         EUR         31,850,821         (1,284,183 ) 

European Gas Oil (Ice) Futures

    07/10/13      678         USD         58,274,100         1,610,250   

FTSE 100 Index Futures

    09/20/13      722         GBP         45,576,377         (1,658,363 ) 

FTSE JSE Top 40 Index Futures

    09/19/13      316         ZAR         115,149,396         (522,566 ) 

FTSE MIB Index Futures

    09/20/13      31         EUR         2,500,192         (175,179 ) 

German Euro Bund Futures

    09/06/13      4,065         EUR         582,518,423         (9,423,452 ) 

Gold 100 oz Futures

    08/28/13      137         USD         19,014,265         (2,249,575 ) 

H-Shares Index Futures

    07/30/13      407         HKD         183,522,215         592,207   

Hang Seng Index Futures

    07/30/13      72         HKD         71,731,386         373,001   

Henry Hub Natural Gas Swap Futures

    07/29/13      2,159         USD         20,247,836         (1,005,749 ) 

IBEX 35 Index Futures

    07/19/13      44         EUR         3,549,684         (228,267 ) 

Japanese 10 Year Government Bond Mini Futures

    09/10/13      514         JPY         73,416,668,290         (694,377 ) 

KOSPI 200 Index Futures

    09/12/13      219         KRW         27,627,915,873         (988,500 ) 

Lead Futures

    09/18/13      133         USD         7,424,813         (607,732 ) 

Lead Futures 3 Months

    07/02/13      11         USD         576,580         (15,443 ) 

Lead Futures 3 Months

    07/05/13      14         USD         726,097         (11,642 ) 

Lead Futures 3 Months

    07/16/13      8         USD         411,063         (2,217 ) 

Lead Futures 3 Months

    07/19/13      3         USD         150,117         3,225   

Lead Futures 3 Months

    07/24/13      8         USD         407,207         1,737   

Lead Futures 3 Months

    08/02/13      4         USD         197,406         7,094   

Lead Futures 3 Months

    08/22/13      1         USD         51,427         (221 ) 

Lead Futures 3 Months

    09/20/13      12         USD         608,119         7,007   

Lead Futures 3 Months

    09/24/13      19         USD         949,080         25,026   

Lead Futures 3 Months

    09/25/13      33         USD         1,676,453         15,482   

Lead Futures 3 Months

    09/26/13      12         USD         612,025         3,251   

Lean Hogs Futures

    08/14/13      346         USD         13,590,119         (103,039 ) 

Live Cattle Futures

    08/30/13      409         USD         19,592,249         371,040   

MSCI Taiwan Index Futures

    07/30/13      249         USD         6,721,654         237,896   

Nickel Futures

    09/18/13      92         USD         8,497,083         (932,751 ) 

Nickel Futures 3 Months

    07/02/13      1         USD         99,406         (17,545 ) 

Nickel Futures 3 Months

    07/05/13      1         USD         96,686         (14,810 ) 

Nickel Futures 3 Months

    07/16/13      5         USD         475,958         (66,317 ) 

Nickel Futures 3 Months

    07/19/13      2         USD         183,423         (19,540 ) 

Nickel Futures 3 Months

    07/24/13      3         USD         275,243         (29,354 ) 

Nickel Futures 3 Months

    08/02/13      3         USD         270,221         (24,216 ) 

Nickel Futures 3 Months

    09/20/13      7         USD         586,583         (11,015 ) 

Nickel Futures 3 Months

    09/24/13      15         USD         1,237,884         (4,215 ) 

Nickel Futures 3 Months

    09/25/13      22         USD         1,834,835         (25,341 ) 

Nickel Futures 3 Months

    09/26/13      8         USD         655,457         2,582   

Nymex Heating Oil Pent Futures

    07/30/13      373         USD         44,794,521         (8,560 ) 

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-7

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013

 

Futures Contracts—(Continued)

 

Futures Contracts—Long

    Expiration
Date		    Number of
Contracts		     Notional Amount     Unrealized
Appreciation/
(Depreciation)		  

RBOB Gasoline Fin Futures

    08/29/13      377        USD         44,331,185      $ (1,332,375 ) 

Russell 2000 Mini Index Futures

    09/20/13      452        USD         44,757,745        (701,305 ) 

S&P 500 E-Mini Index Futures

    09/20/13      5,223        USD         427,993,276        (10,336,081 ) 

S&P Midcap 400 E-Mini Index Futures

    09/20/13      413        USD         48,763,828        (942,558 ) 

S&P TSE 60 Index Futures

    09/19/13      243        CAD         34,149,269        (455,633 ) 

SGX CNX NIFTY Index Futures

    07/25/13      941        USD         10,561,023        405,391   

SPI 200 Futures

    09/19/13      230        AUD         27,594,756        (158,223 ) 

Silver Futures

    09/26/13      24        USD         2,380,576        (44,176 ) 

Soybean Futures

    11/14/13      291        USD         18,944,269        (727,669 ) 

Sugar No. 11 Futures

    09/30/13      541        USD         10,085,172        166,995   

Topix Index Futures

    09/12/13      621        JPY         6,760,930,891        2,647,501   

U.S. Treasury Note 10 Year Futures

    09/19/13      9,683        USD         1,256,730,330        (31,225,643 ) 

United Kingdom Long Gilt Bond Futures

    09/26/13      1,143        GBP         133,537,616        (8,571,944 ) 

WTI Bullet Swap Financial Futures

    07/19/13      1,971        USD         189,397,253        922,507   

Wheat Futures

    09/13/13      631        USD         21,877,366        (1,125,354 ) 

Zinc Futures

    09/18/13      172        USD         8,448,485        (476,285 ) 

Zinc Futures 3 Months

    07/02/13      14        USD         662,144        (24,794 ) 

Zinc Futures 3 Months

    07/05/13      17        USD         802,002        (27,482 ) 

Zinc Futures 3 Months

    07/16/13      10        USD         475,516        (18,634 ) 

Zinc Futures 3 Months

    07/19/13      4        USD         188,106        (5,223 ) 

Zinc Futures 3 Months

    07/24/13      8        USD         378,748        (12,568 ) 

Zinc Futures 3 Months

    08/02/13      9        USD         419,077        (6,285 ) 

Zinc Futures 3 Months

    09/20/13      13        USD         598,021        4,435   

Zinc Futures 3 Months

    09/24/13      22        USD         1,002,823        16,564   

Zinc Futures 3 Months

    09/25/13      45        USD         2,073,447        11,504   

Zinc Futures 3 Months

    09/26/13      15        USD         690,875        4,053   

Futures Contracts—Short

                               

Aluminum Futures 3 Months

    07/02/13      (56 )      USD         (2,657,810 )      236,160   

Aluminum Futures 3 Months

    07/05/13      (58 )      USD         (2,730,092 )      219,780   

Aluminum Futures 3 Months

    07/16/13      (50 )      USD         (2,361,444 )      190,507   

Aluminum Futures 3 Months

    07/19/13      (15 )      USD         (719,137 )      67,290   

Aluminum Futures 3 Months

    07/24/13      (6 )      USD         (286,640 )      25,520   

Aluminum Futures 3 Months

    08/02/13      (6 )      USD         (277,415 )      15,611   

Aluminum Futures 3 Months

    08/22/13      (12 )      USD         (559,481 )      32,828   

Aluminum Futures 3 Months

    09/20/13      (62 )      USD         (2,781,952 )      38,328   

Aluminum Futures 3 Months

    09/24/13      (92 )      USD         (4,088,171 )      13,146   

Aluminum Futures 3 Months

    09/25/13      (184 )      USD         (8,189,703 )      37,721   

Aluminum Futures 3 Months

    09/26/13      (51 )      USD         (2,266,558 )      6,519   

Aluminum HG Futures

    09/18/13      (389 )      USD         (17,292,278 )      86,322   

Copper Futures 3 Months

    07/02/13      (22 )      USD         (4,108,465 )      406,415   

Copper Futures 3 Months

    07/05/13      (24 )      USD         (4,456,352 )      416,702   

Copper Futures 3 Months

    07/16/13      (13 )      USD         (2,351,653 )      161,797   

Copper Futures 3 Months

    07/19/13      (14 )      USD         (2,444,043 )      85,418   

Copper Futures 3 Months

    07/24/13      (16 )      USD         (2,789,374 )      93,374   

Copper Futures 3 Months

    08/02/13      (14 )      USD         (2,459,359 )      99,431   

Copper Futures 3 Months

    08/22/13      (5 )      USD         (932,055 )      88,523   

Copper Futures 3 Months

    09/20/13      (23 )      USD         (3,922,559 )      41,067   

Copper Futures 3 Months

    09/24/13      (40 )      USD         (6,664,242 )      (86,008 ) 

Copper Futures 3 Months

    09/25/13      (71 )      USD         (11,899,440 )      (82,112 ) 

Copper Futures 3 Months

    09/26/13      (24 )      USD         (4,014,611 )      (35,437 ) 

Copper LME Futures

    09/18/13      (158 )      USD         (26,713,261 )      46,811   

Lead Futures

    09/18/13      (76 )      USD         (3,844,860 )      (50,615 ) 

Lead Futures 3 Months

    07/02/13      (11 )      USD         (576,657 )      15,520   

Lead Futures 3 Months

    07/05/13      (14 )      USD         (724,284 )      9,829   

Lead Futures 3 Months

    07/16/13      (8 )      USD         (408,110 )      (736 ) 

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-8

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013

 

Futures Contracts—(Continued)

 

Futures Contracts—Short

    Expiration
Date		    Number of
Contracts		     Notional Amount     Unrealized
Appreciation/
(Depreciation)		  

Lead Futures 3 Months

    07/19/13      (3 )      USD         (151,439 )    $ (1,903 ) 

Lead Futures 3 Months

    07/24/13      (8 )      USD         (407,187 )      (1,757 ) 

Lead Futures 3 Months

    08/02/13      (4 )      USD         (196,775 )      (7,725 ) 

Lead Futures 3 Months

    08/22/13      (1 )      USD         (51,232 )      26   

Lead Futures 3 Months

    09/20/13      (12 )      USD         (606,028 )      (9,098 ) 

Lead Futures 3 Months

    09/24/13      (19 )      USD         (949,606 )      (24,500 ) 

Lead Futures 3 Months

    09/25/13      (33 )      USD         (1,652,222 )      (39,712 ) 

Lead Futures 3 Months

    09/26/13      (12 )      USD         (607,355 )      (7,921 ) 

Nickel Futures

    09/18/13      (52 )      USD         (4,313,248 )      37,757   

Nickel Futures 3 Months

    07/02/13      (1 )      USD         (98,758 )      16,898   

Nickel Futures 3 Months

    07/05/13      (1 )      USD         (96,760 )      14,885   

Nickel Futures 3 Months

    07/16/13      (5 )      USD         (466,495 )      56,854   

Nickel Futures 3 Months

    07/19/13      (2 )      USD         (185,497 )      21,614   

Nickel Futures 3 Months

    07/24/13      (3 )      USD         (275,341 )      29,452   

Nickel Futures 3 Months

    08/02/13      (3 )      USD         (268,681 )      22,676   

Nickel Futures 3 Months

    09/20/13      (7 )      USD         (577,590 )      2,022   

Nickel Futures 3 Months

    09/24/13      (15 )      USD         (1,237,450 )      3,781   

Nickel Futures 3 Months

    09/25/13      (22 )      USD         (1,813,787 )      4,293   

Nickel Futures 3 Months

    09/26/13      (8 )      USD         (660,374 )      2,335   

Zinc Futures

    09/18/13      (95 )      USD         (4,366,303 )      (36,947 ) 

Zinc Futures 3 Months

    07/02/13      (14 )      USD         (655,878 )      18,528   

Zinc Futures 3 Months

    07/05/13      (17 )      USD         (800,319 )      25,799   

Zinc Futures 3 Months

    07/16/13      (10 )      USD         (470,009 )      13,126   

Zinc Futures 3 Months

    07/19/13      (4 )      USD         (188,652 )      5,769   

Zinc Futures 3 Months

    07/24/13      (8 )      USD         (378,987 )      12,807   

Zinc Futures 3 Months

    08/02/13      (9 )      USD         (417,001 )      4,209   

Zinc Futures 3 Months

    09/20/13      (13 )      USD         (597,322 )      (5,134 ) 

Zinc Futures 3 Months

    09/24/13      (22 )      USD         (1,003,689 )      (15,699 ) 

Zinc Futures 3 Months

    09/25/13      (45 )      USD         (2,064,134 )      (20,817 ) 

Zinc Futures 3 Months

    09/26/13      (15 )      USD         (686,963 )      (7,965 ) 
            

 

 

  

Net Unrealized Depreciation

  

   $ (85,190,162 ) 
            

 

 

  

Reverse Repurchase Agreement

 

Counterparty

    Interest
Rate		     Settlement
Date		      Maturity
Date		      Principal Amount      Net Closing
Amount		  

Barclays Bank plc

      0.18 %      6/19/2013         07/17/13         USD         758,983,500       $ 758,983,500   
                

 

 

  

Securities pledged as collateral against open reverse repurchase agreements are noted previously in the Consolidated Schedule of Investments. Cash collateral is noted on the Consolidated Statement of Assets and Liabilities.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-9

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013

 

Swap Agreements

Total Return Swap Agreements

 

Pay/Receive
Floating
Rate

    Maturity
Date		    

Counterparty

  

Underlying
Reference
Instrument

   Notional
Amount		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Receive

      07/30/13      Bank of
America N.A.		   MSCI Taiwan
Stock Index Futures		     USD    10,984,828      $ 390,822      $ —      $ 390,822   

Receive

      07/30/13      Bank of
America N.A.		   Hang Seng China Index Futures     HKD    32,619,273        144,575        —        144,575   

Receive

      08/14/13      Bank of America N.A.   Ibovespa Futures     BRL     42,143,947        (1,442,124 )      —        (1,442,124 ) 

Receive

      08/23/13     

Barclays Bank plc

   Wheat Futures     USD      2,720,025        (187,688 )      —        (187,688 ) 

Receive

      09/16/13      Bank of America N.A.   RTS Index Futures     USD      8,995,005        49,295        —        49,295   

Receive

      08/28/13      Bank of America N.A.   U.S. Treasury Note 10 Year Futures     USD  147,512,922        (3,231,672 )      —        (3,231,672 ) 

Receive

      09/20/13      Bank of America N.A.   Swiss Market Index Futures     CHF    27,726,443        (317,678 )      —        (317,678 ) 
          

 

 

    

 

 

    

 

 

  

Totals

  

   $ (4,594,470 )    $ —      $ (4,594,470 ) 
          

 

 

    

 

 

    

 

 

  

 

(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CHF)— Swiss Franc
(EUR)— Euro
(GBP)— British Pound
(HKD)— Hong Kong Dollar
(JPY)— Japanese Yen
(KRW)— South Korea Won
(RUB)— Russian Rouble
(USD)— United States Dollar
(ZAR)— South African Rand

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-10

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Consolidated Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1     Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —        $ 523,233,911      $ —         $ 523,233,911   

Total Foreign Government*

      —          495,409,452        —           495,409,452   
Short-Term Investments          

Mutual Funds

      3,688,469,065        —          —           3,688,469,065   

U.S. Treasury

      —          618,215,638        —           618,215,638   

Repurchase Agreements

      —          505,449,125        —           505,449,125   

Total Short-Term Investments

      3,688,469,065        1,123,664,763        —           4,812,133,828   

Total Investments

    $ 3,688,469,065      $ 2,142,308,126      $ —         $ 5,830,777,191   
                                   
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 18,634,098      $ —         $ 18,634,098   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (12,625,459 )      —           (12,625,459 ) 

Total Forward Contracts

    $ —        $ 6,008,639      $ —         $ 6,008,639   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 10,488,462      $ —        $ —         $ 10,488,462   

Futures Contracts (Unrealized Depreciation)

      (95,678,624 )      —          —           (95,678,624 ) 

Total Futures Contracts

    $ (85,190,162 )    $ —        $ —         $ (85,190,162 ) 
Swap Contracts          

Swap Contracts at Value (Assets)

    $ —        $ 584,692      $ —         $ 584,692   

Swap Contracts at Value (Liabilities)

      —          (5,179,162 )      —           (5,179,162 ) 

Total Swap Contracts

    $ —        $ (4,594,470 )    $ —         $ (4,594,470 ) 

Total Reverse Repurchase Agreements (Liability)

    $ —        $ (758,983,500 )    $ —         $ (758,983,500 ) 

 

* See Consolidated Schedule of Investments for additional detailed categorizations.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-11

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Statement of Assets and Liabilities

 

June 30, 2013

 

Assets

   

Investments at value (a)

    $ 5,830,777,191   

Cash

      26,187,413   

Cash denominated in foreign currencies (b)

      6,715,948   

Cash collateral (c)

      129,617,673   

Foreign cash collateral for futures (d)

      47,421,063   

Swaps at market value

      584,692   

Unrealized appreciation on forward foreign currency exchange contracts

      18,634,098   

Receivable for:

   

Investments sold

      516,360,608   

Fund shares sold

      601,750   

Interest

      3,681,702   

Variation margin on futures contracts

      11,120,683   
  

 

 

  

Total Assets

      6,591,702,821   

Liabilities

   

Payables for:

   

Reverse repurchase agreements

      758,983,500   

Investments purchased

      6,286,317   

Fund shares redeemed

      4,111,872   

Cash collateral for forward foreign currency exchange contracts

      8,430,000   

Interest on reverse repurchase agreements

      45,539   

Swaps at market value

      5,179,162   

Unrealized depreciation on forward foreign currency exchange contracts

      12,625,459   

Variation margin on futures contracts

      16,001,044   

Accrued expenses:

   

Management fees

      2,955,037   

Distribution and service fees

      1,240,193   

Deferred trustees’ fees

      21,608   

Other expenses

      401,702   
  

 

 

  

Total Liabilities

      816,281,433   
  

 

 

  

Net Assets

    $ 5,775,421,388   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 6,043,809,212   

Undistributed net investment income

      5,096,881   

Accumulated net realized loss

      (125,910,015 ) 

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (147,574,690 ) 
  

 

 

  

Net Assets

    $ 5,775,421,388   
  

 

 

  

Net Assets

   

Class B

    $ 5,775,421,388   

Capital Shares Outstanding*

   

Class B

      562,782,527   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.26   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $5,894,996,025.
(b) Identified cost of cash denominated in foreign currencies was $6,940,396.
(c) Includes collateral of, $87,064,673 for futures and $42,553,000 for reverse repurchase agreements.
(d) Identified cost of foreign cash collateral for futures was $47,675,702.

 

Consolidated§ Statement of Operations

 

Six Months Ended June 30, 2013

 

Investment Income

   

Interest

    $ 10,894,951   
  

 

 

  

Total investment income

      10,894,951   

Expenses

   

Management fees

      18,448,561   

Administration fees

      79,142   

Custodian and accounting fees

      384,927   

Distribution and service fees—Class B

      7,583,590   

Interest expense

      1,014,901   

Audit and tax services

      48,001   

Legal

      10,321   

Trustees’ fees and expenses

      13,511   

Shareholder reporting

      64,378   

Insurance

      12,455   

Miscellaneous

      13,419   
  

 

 

  

Total expenses

      27,673,206   

Less management fee waiver

      (389,346 ) 
  

 

 

  

Net expenses

      27,283,860   
  

 

 

  

Net Investment Loss

      (16,388,909 ) 
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      (53,943,861 ) 

Futures contracts

      55,231,511   

Swap contracts

      (90,616,550 ) 

Foreign currency transactions

      14,016,081   
  

 

 

  

Net realized loss

      (75,312,819 ) 
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (185,696,968 ) 

Futures contracts

      (111,605,742 ) 

Swap contracts

      3,704,126   

Foreign currency transactions

      27,904,278   
  

 

 

  

Net change in unrealized depreciation

      (265,694,306 ) 
  

 

 

  

Net realized and unrealized loss

      (341,007,125 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (357,396,034 ) 
  

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-12

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment loss

    $ (16,388,909 )    $ (1,854,038 ) 

Net realized gain (loss)

      (75,312,819 )      305,409,403   

Net change in unrealized appreciation (depreciation)

      (265,694,306 )      104,814,485   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (357,396,034 )      408,369,850   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (120,508,313 )      (18,503,185 ) 

Net realized capital gains

     

Class B

      (224,559,543 )      (19,654,281 ) 
  

 

 

    

 

 

  

Total distributions

      (345,067,856 )      (38,157,466 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      783,623,156        2,739,957,653   
  

 

 

    

 

 

  

Total Increase in Net Assets

      81,159,266        3,110,170,037   

Net Assets

     

Beginning of period

      5,694,262,122        2,584,092,085   
  

 

 

    

 

 

  

End of period

    $ 5,775,421,388      $ 5,694,262,122   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 5,096,881      $ 141,994,103   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      52,476,695      $ 608,715,576        248,596,980      $ 2,735,238,882   

Reinvestments

      31,284,484        345,067,856        3,516,817        38,157,466   

Redemptions

      (15,453,532 )      (170,160,276 )      (2,995,559 )      (33,438,695 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      68,307,647      $ 783,623,156        249,118,238      $ 2,739,957,653   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 783,623,156        $ 2,739,957,653   
    

 

 

      

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-13

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Statement of Cash Flows

 

For the Year Ended June 30, 2013

 

Cash Flows From Operating Activities

   

Net decrease in net assets from operations

    $ (357,396,034 ) 

Adjustments to reconcile net increase/(decrease) in net assets resulting from operations to net cash provided by/(used in) operating activities:

   

Investments purchased

      (1,265,598,642 ) 

Proceeds from investments sold

      3,406,274,831   

Purchases of short-term investments, net

      (2,109,174,552 ) 

Treasury inflation index adjustments

      (4,371,481 ) 

Decrease in interest receivable

      12,886,563   

Decrease in cash collateral, asset

      188,131,460   

Increase in foreign cash collateral for futures

      (47,421,063 ) 

Decrease in swaps at market value, asset

      1,687,333   

Decrease in receivable for variation margin on futures contracts

      15,420,862   

Increase in unrealized appreciation on forward foreign currency exchange contracts

      (18,619,449 ) 

Increase in receivable for investments sold

      (516,360,608 ) 

Decrease in other assets

      8,217   

Decrease in cash collateral, liability

      (50,595,958 ) 

Increase in payable for investments purchased

      6,286,317   

Decrease in payable for foreign cash collateral for futures

      (3,214,916 ) 

Decrease in swaps at market value, liability

      (5,391,459 ) 

Increase in payable for variation margin on futures contracts

      16,001,044   

Decrease in unrealized depreciation on forward foreign currency exchange contracts

      (9,236,027 ) 

Increase in accrued management fees

      75,170   

Increase in accrued distribution and service fees

      57,894   

Increase in deferred trustee’s fees

      5,376   

Decrease in interest on reverse repurchase agreements

      (33,652 ) 

Increase in other expenses

      93,377   

Net realized loss from investments

      53,943,861   

Net change in unrealized (appreciation) depreciation on investments

      185,696,968   
  

 

 

  

Net cash used in operating activities

    $ (500,844,568 ) 
  

 

 

  

Cash Flows From Financing Activities

   

Proceeds from shares sold, including decrease in receivable for shares sold

      616,648,026   

Payment on shares redeemed, net of payable for shares redeemed

      (166,469,315 ) 

Proceeds from issuance of reverse repurchase agreements

      4,853,188,025   

Repayment of reverse repurchase agreements

      (4,779,512,400 ) 
  

 

 

  

Net cash provided by financing activities

    $ 523,854,336   
  

 

 

  

Net increase in cash (a)

    $ 23,009,768   
  

 

 

  

Cash at beginning of period (b)

    $ 9,893,593   
  

 

 

  

Cash at end of period (c)

    $ 32,903,361   
  

 

 

  

Supplemental disclosure of cash flow information:

   

Non cash financing activities included herein consist of reinvestment of dividends and distributions:

    $ 345,067,856   
  

 

 

  

Cash paid for interest and fees on borrowings:

    $ 1,048,553   
  

 

 

  

 

(a) Includes net change in unrealized appreciation (depreciation) on foreign currency of $27,904,278.
(b) Balance includes foreign currency at value of $3,893,593.
(c) Balance includes foreign currency at value of $6,715,948.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-14

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Consolidated§ Financial Highlights

 

Selected per share data                         
     Class B  
     Six Months
Ended
June 30,
2013		     Year

Ended
December 31,
2012		    

Period
May 2,
2011
through
December 31,
2011(a)

     Period
April 19,
2011
through
May 2,
2011(a)		  

Net Asset Value, Beginning of Period

    $ 11.52      $ 10.53      $ 10.36  (b)    $ 10.00   
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

         

Net investment income (loss) (c)

      (0.03 )      (0.00 )(d)      (0.01 )      0.51   

Net realized and unrealized gain (loss) on investments

      (0.58 )      1.11        0.36        (0.15 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      (0.61 )      1.11        0.35        0.36   
  

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

         

Distributions from net investment income

      (0.23 )      (0.06 )      (0.15 )      0.00   

Distributions from net realized capital gains

      (0.42 )      (0.06 )      (0.03 )      0.00   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.65 )      (0.12 )      (0.18 )      0.00   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.26      $ 11.52      $ 10.53      $ 10.36   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (e)

      (5.69 )(f)      10.56        3.38  (f)(g)      3.60  (f)(h) 

Ratios/Supplemental Data

         

Gross ratio of expenses to average net assets (%)

      0.91  (i)      0.98        1.18  (i)   

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.88  (i)      0.89        0.95  (i)   

Net ratio of expenses to average net assets (%) (j)

      0.90  (i)      0.98        1.15  (i)   

Net ratio of expenses to average net assets excluding interest expense (%) (j)

      0.87  (i)      0.89        0.92  (i)   

Ratio of net investment income (loss) to average net assets (%)

      (0.54 )(i)      (0.04 )      (0.06 )(i)   

Portfolio turnover rate (%)

      38  (f)      79        8  (f)   

Net assets, end of period (in millions)

    $ 5,775.4      $ 5,694.3      $ 2,584.1     

 

(a) Commencement of operations was April 19, 2011. Shares first became available to investors through certain separate accounts on the SEC effective date which was May 2, 2011.
(b) Net Asset Value on SEC Effective Date, May 2, 2011.
(c) Per share amounts based on average shares outstanding during the period.
(d) Net investment income (loss) was less than $0.01.
(e) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(f) Periods less than one year are not computed on an annualized basis.
(g) Total return for the period May 2, 2011 to December 31, 2011.
(h) Total return for the period April 19, 2011 to May 2, 2011.
(i) Computed on an annualized basis.
(j) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-15

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is AQR Global Risk Balanced Portfolio (the “Portfolio”), which is non-diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B Shares are currently offered by the Portfolio.

2. Consolidation of Subsidiary—AQR Global Risk Balanced Portfolio, Ltd.

The Portfolio may invest up to 25% of its total assets in the AQR Global Risk Balanced Portfolio, Ltd., which is a wholly-owned and controlled subsidiary of the Portfolio that is organized under the laws of the Cayman Islands as an exempted company (the “Subsidiary”). The Portfolio invests in the Subsidiary in order to gain exposure to the commodities market within the limitations of the federal tax laws, rules and regulations that apply to regulated investment companies. The Portfolio has obtained a private letter ruling from the Internal Revenue Service confirming that the annual net profit, if any, realized by the Subsidiary and imputed for income tax purposes to the Portfolio will constitute “qualifying income” for the purposes of the Portfolio remaining qualified as a regulated investment company for U.S. federal income tax purposes.

The Subsidiary invests primarily in commodity futures and swaps on commodity futures, but it may also invest in other commodity-related instruments and other investments intended to serve as margin or collateral for the Subsidiary’s derivative positions. Unlike the Portfolio, the Subsidiary may invest without limitation in commodity-linked derivatives; however, the Subsidiary complies with the same 1940 Act asset coverage requirements with respect to its investments in commodity-linked derivatives that are applicable to the Portfolio’s transactions in derivatives. In addition, to the extent applicable to the investment activities of the Subsidiary, the Subsidiary is subject to the same fundamental investment restrictions and follows the same compliance policies and procedures as the Portfolio.

By investing in the Subsidiary, the Portfolio is indirectly exposed to the risks associated with the Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are subject to commodities risk. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the 1940 Act and is not subject to all the investor protections of the 1940 Act. The Portfolio, however, wholly owns and controls the Subsidiary, and the Portfolio and Subsidiary are both managed by AQR Capital Management, LLC (the “Subadviser”), making it unlikely that the Subsidiary will take action contrary to the interests of the Portfolio and its shareholders. Changes in the laws of the United States and/or Cayman Islands could result in the inability of the Portfolio and/or the Subsidiary to operate as described in the Portfolio’s prospectus and could adversely affect the Portfolio. For example, the Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Portfolio shareholders would likely suffer decreased investment returns.

The consolidated Schedule of Investments, Statement of Assets and Liabilities, Statement of Operations, Statement of Changes in Net Assets, Statement of Cash Flows and the Financial Highlights of the Portfolio includes the accounts of the Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation for the Portfolio. The Subsidiary has a fiscal year end of December 31st for financial statement consolidation purposes and a nonconforming tax year end of November 30th.

A summary of the Portfolio’s investment in the Subsidiary is as follows:

 

      Inception Date
of Subsidiary		      Subsidiary
Net Assets at
June 30, 2013		      % of
Total Assets at
June 30, 2013		  

AQR Global Risk Balanced Portfolio, Ltd.

      4/19/2011       $ 575,841,109         8.7 % 

3. Significant Accounting Policies

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these consolidated financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the consolidated financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its consolidated financial statements.

 

MIST-16

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013—(Continued)

 

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of

 

MIST-17

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013—(Continued)

 

the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to futures transactions, foreign currency transactions, swap transactions, premium amortization adjustments, controlled foreign corporation reversal and deflationary sell adjustments. These adjustments have no impact on net assets or the results of operations.

 

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

Reverse Repurchase Agreements - The Portfolio may enter into reverse repurchase agreements with qualified institutions. In a reverse repurchase agreement, the Portfolio transfers securities in exchange for cash to a financial institution or counterparty, concurrently with an agreement by the Portfolio to reacquire the same securities at an agreed upon price and date. During the reverse repurchase agreement period, the Portfolio continues to receive principal and interest payments on these securities. The Portfolio will establish a segregated account with its custodian in which it will maintain liquid assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements involve the risk that the market value of the securities transferred by the Portfolio may decline below the agreed upon reacquisition price of the securities. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply

 

MIST-18

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013—(Continued)

 

property held by it in connection with any repurchase transaction against obligations owed to it. Cash received in exchange for securities transferred under reverse repurchase agreements plus accrued interest payments to be made by the Portfolio to counterparties are reflected as liabilities on the Consolidated Statement of Assets and Liabilities. For the six months ended June 30, 2013, the Portfolio had a balance of outstanding reverse repurchase agreement for a total of 181 days. The average amount of borrowings was $857,056,436 and the weighted average interest rate was 0.21%.

At June 30, 2013, the Portfolio had investments in repurchase agreements and reverse repurchase agreements with gross values of $505,449,125 and 758,983,500, respectively which are included on the Consolidated Schedule of Investments. Both transaction types are executed with the same counterparty and under the same Master Repurchase Agreement. The required collateral under the repurchase agreement with the counterparty is net with the collateral required under the reverse repurchase agreement. The netting of this collateral is allowed under the master netting agreement terms which consider all transactions executed under it to constitute a single business and contractual relationship and are made in consideration of each other. At June 30, 2013, the Portfolio has collateral of $263,737,697, comprised of pledged securities of $221,184,697, noted in the Consolidated Schedule of Investments and cash collateral of $42,553,000 as noted on the Consolidated Statement of Assets and Liabilities. The net exposure of the two instruments is properly collateralized at June 30, 2013.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

4. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Consolidated Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Consolidated Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Consolidated Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

 

MIST-19

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013—(Continued)

 

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Consolidated Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Consolidated Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Commodity Futures Contracts and Swaps on Commodity Futures Contracts - The Subsidiary will invest primarily in commodity futures and swaps on commodity futures. Exposure to the commodities markets may subject the Portfolio to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Consolidated Schedule of Investments and restricted cash, if any, is reflected on the Consolidated Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Consolidated Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Consolidated Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Consolidated Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Consolidated Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Consolidated Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon

 

MIST-20

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013—(Continued)

 

notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

Equity Swaps: Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying security and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. If the other party to an equity swap defaults, a Portfolio’s risk of loss consists of the net amount of payments that such Portfolio is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile.

Total Return Swaps: The Portfolio may enter into total return swap agreements to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include a specified security, basket of securities or securities indices during the specific period, in return for periodic payments based on a fixed or floating rate or the total return from other underlying assets. When a Portfolio pays interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may be required to pay the change in value to the counterparty in addition to the interest payment; conversely, when a Portfolio receives interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may receive the change in value in addition to the interest payment. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty. Total return swaps can also be structured without an interest payment, so that one party pays the other party if the value of the underlying asset increases and receives payment from the other party if the value of the underlying asset decreases.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Consolidated Statement of Assets &
Liabilities Location

    Fair Value     

Consolidated Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate          Swaps at market value    $ 3,231,672   
         Unrealized depreciation on futures contracts* (a)      55,137,759   
Equity    Swaps at market value    $ 584,692       Swaps at market value      1,759,802   
   Unrealized appreciation on futures contracts* (a)      4,255,996       Unrealized depreciation on futures contracts* (a)      18,425,997   
         Swaps at market value      187,688   
Commodity    Unrealized appreciation on futures contracts* (a)      6,232,466       Unrealized depreciation on futures contracts* (a)      22,114,868   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      18,634,098       Unrealized depreciation on forward foreign currency exchange contracts      12,625,459   
     

 

 

        

 

 

  
Total         $ 29,707,252          $  113,483,245   
     

 

 

        

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Consolidated Schedule of Investments. Only the current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(b)		     Net Amount  

Bank of America N.A.

    $ 584,692       $ (584,692 )    $ —      $ —   

Royal Bank of Scotland plc

      18,634,098         (12,625,459 )      (6,008,639 )      —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 19,218,790       $ (13,210,151 )    $ (6,008,639 )    $ —   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

MIST-21

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013—(Continued)

 

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged(b)		     Net Amount  

Bank of America N.A.

    $ 4,991,474       $ (584,692 )    $ (4,406,782 )    $ —   

Barclays Bank plc

      187,688         —        —        187,688   

Royal Bank of Scotland plc

      12,625,459         (12,625,459 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 17,804,621       $ (13,210,151 )    $ (4,406,782 )    $ 187,688   
  

 

 

     

 

 

    

 

 

    

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Consolidated Statement of Operations Location—Net
Realized Gain (Loss)

    Interest Rate     Equity     Commodity     Foreign
Exchange		      Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ 12,469,762       $ 12,469,762   

Futures contracts

      (72,530,354 )      202,935,673        (75,173,808 )      —         55,231,511   

Swap contracts

      (82,095,631 )      (8,567,312 )      46,393        —         (90,616,550 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ (154,625,985 )    $ 194,368,361      $ (75,127,415 )    $ 12,469,762       $ (22,915,277 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Consolidated Statement of Operations Location—Net Change
in Unrealized Appreciation (Depreciation)

    Interest Rate     Equity     Commodity     Foreign
Exchange		      Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ 27,855,476       $ 27,855,476   

Futures contracts

      (52,336,763 )      (24,335,977 )      (34,933,002 )      —         (111,605,742 ) 

Swap contracts

      5,594,458        (1,702,644 )      (187,688 )      —         3,704,126   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ (46,742,305 )    $ (26,038,621 )    $ (35,120,690 )    $ 27,855,476       $ (80,046,140 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(c)		  

Forward Foreign currency transactions

    $ 2,197,602,828   

Futures contracts long

      3,729,187,913   

Futures contracts short

      20,062   

Swap contracts

      16,572,122   

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (c) Averages are based on activity levels during 2013.

5. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the consolidated financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions.

 

MIST-22

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013—(Continued)

 

Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Consolidated Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Consolidated Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Consolidated Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

6. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$695,115,226    $ 570,483,416       $ 1,678,760,090       $ 1,727,514,741   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with AQR Capital Management, LLC (“the Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

 

MIST-23

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013—(Continued)

 

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$18,448,561      0.675 %    First $250 million
     0.650 %    $250 million to $750 million
     0.625 %    $750 million to $1 billion
     0.600 %    Over $1 billion

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.030%    Over $3.5 billion

An identical agreement was in place for the period January 1, 2013 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Consolidated Statement of Operations.

Expense Limitation Agreement - The Adviser had entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement continued in effect with respect to the Portfolio until April 28, 2013. Pursuant to that Expense Limitation Agreement, the Adviser had agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and acquired fund fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, were limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under current
Expense Limitation Agreement

Class B

1.10%

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred.

Effective April 29, 2013, there was no longer an expense cap for the Portfolio. For the six months ended June 30, 2013, there were no amounts waived or expenses repaid to the Adviser in accordance with the Expense Limitation Agreement.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Consolidated Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

 

MIST-24

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Notes to Consolidated Financial Statements—June 30, 2013—(Continued)

 

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Consolidated Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Consolidated Statement of Assets and Liabilities.

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

9. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$25,817,343    $ 37,824,231       $ 12,340,123       $ 4,611,260       $ 38,157,466       $ 42,435,491   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$264,230,558    $ 79,761,692       $ 90,100,048       $ —       $ 434,092,298   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-25

Met Investors Series Trust

AQR Global Risk Balanced Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of AQR Global Balanced Risk Portfolio and the Board of Trustees of Met Investors Series Trust:

We have audited the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, of AQR Global Risk Balanced Portfolio, one of the portfolios constituting the Met Investors Series Trust (the “Trust”) as of June 30, 2013, and the related consolidated statement of operations and cash flows for the six months then ended, the consolidated statement of changes in net assets for the six months ended June 30, 2013 and the year ended December 31, 2012, and the consolidated financial highlights for the periods presented. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of June 30, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the AQR Global Risk Balanced Portfolio of the Met Investors Series Trust as of June 30, 2013, the results of its operations and its cash flows for the six months ended June 30, 2013, the changes in its net assets for the six months ended June 30, 2013 and the year ended December 31, 2012, and the financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche, LLP

Boston, Massachusetts

August 23, 2013

 

MIST-26

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Managed by BlackRock Financial Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the BlackRock Global Tactical Strategies Portfolio returned 1.22%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

U.S. stocks had an impressive start to the year, strongly outpacing most other developed markets and emerging-market equities, which registered their worst first-quarter performance since 2008. The U.S. stock rally continued to gather momentum (hitting an all-time high in May) as investors latched onto the latest favorable data on the economy and corporate earnings. Though all sectors yielded positive returns, the market move was uncharacteristically led by defensive segments, with Health Care, Consumer Staples and Utilities at the top. Volatility made a comeback in the second quarter of 2013, particularly in June, when Federal Reserve (“Fed”) Chairman Ben Bernanke signaled the central bank could begin paring back its bond purchases later this year and end them in 2014. Performance subsequently turned negative as the prospect of Fed tapering led to a widespread sell-off in bonds and a corresponding surge in interest rates. Disappointing data out of China and other emerging markets also weighed on sentiment. Despite the June pullback, U.S. stocks finished the second quarter in positive territory and ended the first half of 2013 with double-digit gains across the ranges of style and market cap. On the fixed income side, the large increases in interest rates over the past two months reflected a bond market that repriced both the timing of the Fed’s first tightening (moving it up roughly from year-end 2015 to year-end 2014) and the speed of that tightening (roughly doubling the rate of increases expected in rates).

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s assets are allocated across a broad range of asset classes in a tactical sleeve and the volatility of the Portfolio is generally managed by transferring assets out of the tactical sleeve into cash during periods of high volatility, and back into the tactical sleeve during periods of low volatility. At the broad asset allocation level, the Portfolio was overweight equities relative to the benchmark index and underweight fixed income. Our asset allocation was driven primarily by our tactically bearish view on duration and our constructive view on equities in anticipation of solid second-half domestic growth in 2013, strong policy tailwinds in Japan and a recovery from recession in the eurozone.

Within equities, we continued to employ an overweight in the U.S. versus international markets in line with our view that domestic economic growth was progressing at a much steadier pace than abroad. This domestic tilt was a significant contributor to performance as we saw strong regional divergence with U.S. equities significantly outperforming the broad international market. Within international equities, the Portfolio was overweight Germany and Japan versus the broader Europe, Australasia, Far East (EAFE) region, reflecting our view that the German economy was more stable and secure relative to the eurozone and that Japan’s policy tailwinds and the unprecedented scale of “Abenomics” would drive strong performance. These positions contributed to performance over the six-month period. In addition, the Portfolio continued to hold active sector bets in Health Care, Financials, Industrials and Information Technology (IT), and it continued to do so at period end. Health Care and Financials were both positive contributors, as Health Care benefited from attractive valuations and Financials were bolstered by improving economic data and a robust housing recovery. IT stocks were the worst performers within our sector bets as valuation concerns, lack of corporate spending and fears of slowdown in sector growth caused the stocks to underperform significantly. Industrials were roughly flat relative to the broader U.S. market at the end of the period. Finally, we liquidated our regional position in emerging market equities, as our views have turned tactically bearish due to concerns about the effects of China’s slowing growth upon the broader emerging market complex. In addition, corporate cash flow continued to be weak, which further deteriorated the case for emerging markets.

Within fixed income, the Portfolio remained overweight investment grade corporate credit. We continued to find yields on those credits relatively attractive versus safer fixed income assets, especially given the environment of strong balance sheets, below-average default rates, record corporate cash levels and the continued demand for yield. The Portfolio also held a position in high yield credit for most of the first half of 2013, but we began to scale back that exposure toward the end of May as spreads reached the lows for the year. We exited the position entirely by the end of the period due to extended valuations.

The Portfolio held derivatives during the period as part of its investment strategy. The Portfolio employed derivatives to hedge and/or take outright views through interest rate swaps and index futures. At period end, the Portfolio held DAX futures (German equities), Nikkei futures (Japanese equities) and FTSE futures (UK equities). These equity index futures contributed to performance during the period, as all three markets outperformed the broader EAFE Index significantly. The Portfolio systematically employed interest rate swaps to protect against market volatility. Overall, tactical derivative positions had a positive effect on performance for the period.

At the end of the first half of the year, the Portfolio continued to be overweight equities and underweight fixed income in line with our constructive view of growth on the tailwinds of momentum in housing, steady improvement in employment and strong economic data in the US, as well as signs of recovery in Europe. Within equities, the Portfolio continued to favor domestic equities, with continued overweight allocations to Financials, Health Care, Industrials and Information Technology sectors. Within the international equity allocation, the Portfolio remained overweight Germany relative to the broader Eurozone due to our belief in the country’s stability and security against a backdrop of European volatility. In addition, we

 

MIST-1

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Managed by BlackRock Financial Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

maintained our overweight position in currency-hedged Japanese equities given the unprecedented level of policy support, monetary easing and proactive legislation.

Philip Green

Portfolio Manager

BlackRock Financial Management, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
BlackRock Global Tactical Strategies Portfolio                 

Class B

        1.22           6.77           3.05   
Dow Jones Moderate Index        4.17           10.56           4.33   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 5/2/2011. Index returns are based on an inception date of 5/2/2011.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
Financial Select Sector SPDR Fund      8.6   
SPDR S&P 500 ETF Trust      7.4   
iShares Core S&P 500 ETF      7.0   
iShares Core Total US Bond Market ETF      6.8   
iShares Barclays 1-3 Year Credit Bond Fund      6.7   
Vanguard Total Bond Market ETF      5.8   
iShares MSCI EAFE Index Fund      4.3   
Technology Select Sector SPDR Fund ETF      4.2   
iShares iBoxx $ Investment Grade Corporate Bond Fund      4.0   
Health Care Select Sector SPDR Fund      3.0   

 

MIST-3

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

BlackRock Global Tactical Strategies Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)(b)

    Actual      0.90 %     $ 1,000.00         $ 1,012.20         $ 4.49   
   Hypothetical*      0.90 %     $ 1,000.00         $ 1,020.33         $ 4.51   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 7 of the Notes to Consolidated Financial Statements.

(b) The annualized expense ratio does not include the expenses of the Underlying ETFs in which the Portfolio invests.

 

MIST-4

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Investment Company Securities—68.5% of Net Assets

 

Security Description       
Shares		     Value  
   

Consumer Discretionary Select Sector SPDR Fund (a)

     1,331,516      $ 75,097,502   

Energy Select Sector SPDR Fund (a)

     1,268,091        99,367,611   

Financial Select Sector SPDR Fund (a)

     32,132,890        626,270,026   

Health Care Select Sector SPDR Fund (a)

     4,529,310        215,640,449   

Industrial Select Sector SPDR Fund (a)

     1,729,908        73,642,184   

iShares Barclays 1-3 Year Credit Bond Fund (a) (b)

     4,618,949        485,128,213   

iShares Barclays Intermediate Credit Bond Fund (a) (b)

     1,173,627        126,458,309   

iShares Core S&P 500 ETF (a) (b)

     3,153,483        507,616,159   

iShares Core Total US Bond Market ETF (a) (b)

     4,624,181        495,712,203   

iShares iBoxx $ Investment Grade Corporate Bond Fund (a) (b)

     2,544,703        289,205,496   

iShares MSCI EAFE Index Fund (b)

     5,418,553        310,916,571   

iShares Russell 2000 Index Fund (a) (b)

     1,670,173        162,274,009   

Powershares QQQ Trust Series 1 (a)

     1,945,251        138,521,324   

SPDR S&P 500 ETF Trust (a)

     3,387,529        542,038,515   

Technology Select Sector SPDR Fund ETF (a)

     9,922,609        303,532,609   

Vanguard Short-Term Corporate Bond ETF (a)

     1,458,405        115,359,836   

Vanguard Total Bond Market ETF

     5,264,314        425,777,716   
   

 

 

  

Total Investment Company Securities
(Cost $4,822,871,848)

       4,992,558,732   
   

 

 

  
Short-Term Investments—43.2%   

Mutual Fund—15.2%

  

  

State Street Navigator Securities Lending MET Portfolio (c)

     1,104,556,894        1,104,556,894   
   

 

 

  
   

Repurchase Agreement—28.0%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $2,042,364,702 on 07/01/13, collateralized by $2,079,070,000 U.S. Government Agency obligations with rates ranging from of 0.500% - 5.250%, maturity dates ranging from 01/15/16 - 12/06/22, with a value of $2,083,225,660.

     2,042,363,000      $ 2,042,363,000   
   

 

 

  

Total Short-Term Investments
(Cost $3,146,919,894)

       3,146,919,894   
   

 

 

  

Total Investments—111.7%
(Cost $7,969,791,742) (d)

       8,139,478,626   

Other assets and liabilities (net)—(11.7)%

       (850,216,619 ) 
   

 

 

  
Net Assets—100.0%     $ 7,289,262,007   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $1,077,645,507 and the collateral received consisted of cash in the amount of $1,104,556,894. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(b) Affiliated Issuer. (See Note 8 of the Notes to Consolidated Financial Statements for a summary of transactions in securities of affiliated issuers.)
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $7,969,791,742. The aggregate unrealized appreciation and depreciation of investments were $226,874,773 and $(57,187,889), respectively, resulting in net unrealized appreciation of $169,686,884.
(ETF)— Exchange-Traded Fund

Futures Contracts

 

Futures Contracts—Long

         Expiration
Date		      Number of
Contracts		     Notional
Amount		     Unrealized
Appreciation/
(Depreciation)		  

DAX Index Futures

         09/20/13         1,307        EUR        267,836,786      $ (9,803,240 ) 

FTSE 100 Index Futures

         09/20/13         2,258        GBP        142,387,427        (4,959,448 ) 

Nikkei 225 Index Futures

         09/12/13         5,608        JPY   74,463,780,907        22,722,919   

U.S. Treasury Note 10 Year Futures

         09/19/13         2,800        USD        354,032,913        342,087   

Futures Contracts—Short

                               

Japanese Yen Currency Futures

         09/16/13         (1,700 )      USD     (212,505,695 )      (1,843,055 ) 
            

 

 

  

Net Unrealized Appreciation

  

   $ 6,459,263   
            

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-5

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Swap Agreements

OTC interest rate swap agreements

 

Pay
Floating Rate

   Floating
Rate Index		   Fixed
Rate		     Maturity
Date		    

Counterparty

   Notional Amount     Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Depreciation		  

Pay

   3-Month USD-LIBOR     1.804 %      09/21/22      Goldman Sachs International     USD 168,000,000      $ (11,068,898 )    $ —      $ (11,068,898 ) 

Pay

   3-Month USD-LIBOR     1.846 %      10/22/22      Deutsche Bank AG     USD   65,000,000        (4,161,833 )      —        (4,161,833 ) 

Pay

   3-Month USD-LIBOR     1.673 %      12/12/22      Credit Suisse Group AG     USD   66,000,000        (5,401,301 )      —        (5,401,301 ) 

Pay

   3-Month USD-LIBOR     1.879 %      01/04/23      UBS AG     USD   60,000,000        (3,908,196 )      —        (3,908,196 ) 

Pay

   3-Month USD-LIBOR     1.906 %      01/15/23      Goldman Sachs International     USD   45,000,000        (2,850,881 )      —        (2,850,881 ) 

Pay

   3-Month USD-LIBOR     2.038 %      01/30/23      Deutsche Bank AG     USD   50,000,000        (2,620,510 )      —        (2,620,510 ) 

Pay

   3-Month USD-LIBOR     2.101 %      02/15/23      Deutsche Bank AG     USD   36,000,000        (1,714,205 )      —        (1,714,205 ) 

Pay

   3-Month USD-LIBOR     2.135 %      03/12/23      Deutsche Bank AG     USD   40,000,000        (1,830,244 )      —        (1,830,244 ) 

Pay

   3-Month USD-LIBOR     1.948 %      05/08/23      Deutsche Bank AG     USD   38,000,000        (2,484,014 )      —        (2,484,014 ) 

Pay

   3-Month USD-LIBOR     2.065 %      05/15/23      Goldman Sachs International     USD   30,000,000        (1,653,282 )      —        (1,653,282 ) 

Pay

   3-Month USD-LIBOR     2.096 %      05/22/23      Deutsche Bank AG     USD   30,000,000        (1,579,293 )      —        (1,579,293 ) 
           

 

 

    

 

 

    

 

 

  

Totals

  

   $ (39,272,657 )    $ —      $ (39,272,657 ) 
           

 

 

    

 

 

    

 

 

  

Centrally cleared interest rate swap agreements

 

Pay Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		      Notional Amount      Unrealized
Appreciation/
(Depreciation)		  

Pay

    3-Month USD-LIBOR      2.293 %      05/30/23         USD   40,000,000       $ (1,403,160 ) 

Pay

    3-Month USD-LIBOR      2.355 %      06/17/23         USD 130,000,000         (3,949,166 ) 

Pay

    3-Month USD-LIBOR      2.360 %      06/17/23         USD 260,000,000         (7,779,512 ) 

Pay

    3-Month USD-LIBOR      2.395 %      06/17/23         USD 785,000,000         (20,977,006 ) 

Pay

    3-Month USD-LIBOR      2.305 %      06/18/23         USD 400,000,000         (13,977,400 ) 

Pay

    3-Month USD-LIBOR      2.693 %      07/02/23         USD   70,000,000         —   
             

 

 

  

Total

  

    $ (48,086,244 ) 
             

 

 

  

 

(EUR)— Euro
(GBP)— British Pound
(JPY)— Japanese Yen
(LIBOR)— London InterBank Offered Rate
(USD)— United States Dollar

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-6

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Consolidated Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1     Level 2     Level 3      Total  

Total Investment Company Securities

    $ 4,992,558,732      $ —        $ —         $ 4,992,558,732   
Short-Term Investments          

Mutual Fund

      1,104,556,894        —          —           1,104,556,894   

Repurchase Agreement

      —          2,042,363,000        —           2,042,363,000   

Total Short-Term Investments

      1,104,556,894        2,042,363,000        —           3,146,919,894   

Total Investments

    $ 6,097,115,626      $ 2,042,363,000      $ —         $ 8,139,478,626   
                                   

Collateral for securities loaned (Liability)

    $ —        $ (1,104,556,894 )    $ —         $ (1,104,556,894 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 23,065,006      $ —        $ —         $ 23,065,006   

Futures Contracts (Unrealized Depreciation)

      (16,605,743 )      —          —           (16,605,743 ) 

Total Futures Contracts

    $ 6,459,263      $ —        $ —         $ 6,459,263   
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Depreciation)

    $ —        $ (48,086,244 )    $ —         $ (48,086,244 ) 
OTC Swap Contracts          

OTC Swap Contracts at Value (Liabilities)

    $ —        $ (39,272,657 )    $ —         $ (39,272,657 ) 

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-7

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Consolidated§ Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 3,719,804,666   

Repurchase Agreement

      2,042,363,000   

Affiliated investments at value (c) (d)

      2,377,310,960   

Cash

      16,660,602   

Cash denominated in foreign currencies (e)

      107,463   

Cash collateral (f)

      238,017,000   

Receivable for:

   

Swap cash collateral

      4,200,000   

Fund shares sold

      1,008,229   

Dividends

      18,297,430   

Interest

      1,255   

Variation margin on futures contracts

      22,582,639   

Swap interest

      3,307,611   
  

 

 

  

Total Assets

      8,443,660,855   

Liabilities

   

Payables for:

   

Investments purchased

      1,501,176   

Fund shares redeemed

      1,986,320   

Swaps at market value

      39,272,657   

Variation margin payable on swap contracts

      1,150,716   

Collateral for securities loaned

      1,104,556,894   

Swap interest

      201,024   

Accrued Expenses:

   

Management fees

      3,872,890   

Distribution and service fees

      1,509,138   

Deferred trustees’ fees

      21,608   

Other expenses

      326,425   
  

 

 

  

Total Liabilities

      1,154,398,848   
  

 

 

  

Net Assets

    $ 7,289,262,007   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 7,048,342,791   

Undistributed net investment income

      21,263,038   

Accumulated net realized gain

      130,870,627   

Unrealized appreciation on investments, affiliated investments, futures contracts, swap contracts and foreign currency transactions

      88,785,551   
  

 

 

  

Net Assets

    $ 7,289,262,007   
  

 

 

  

Net Assets

   

Class B

    $ 7,289,262,007   

Capital Shares Outstanding*

   

Class B

      718,975,529   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.14   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Includes securities loaned at value of $504,366,184.
(b) Identified cost of investments, excluding affiliated investments and repurchase agreements, was $3,578,576,870.
(c) Identified cost of affiliated investments was $2,348,851,872.
(d) Includes securities loaned at value of $573,279,323.
(e) Identified cost of cash denominated in foreign currencies was $109,158.
(f) Includes collateral of $35,600,000 for swaps, $99,182,000 for futures contracts and $103,235,000 for centrally cleared swaps.

Consolidated§ Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Underlying ETFs

    $ 21,258,945   

Dividends from affiliated investments

      30,677,739   

Interest

      102,087   

Securities lending income

      1,990,164   
  

 

 

  

Total investment income

      54,028,935   

Expenses

   

Management fees

      23,690,425   

Administration fees

      90,203   

Custodian and accounting fees

      226,566   

Distribution and service fees—Class B

      8,997,266   

Interest expense

      10,451   

Audit and tax services

      17,435   

Legal

      10,554   

Trustees’ fees and expenses

      13,519   

Shareholder reporting

      73,288   

Insurance

      16,668   

Miscellaneous

      16,417   
  

 

 

  

Total expenses

      33,162,792   

Less management fee waiver

      (595,809 ) 
  

 

 

  

Net expenses

      32,566,983   
  

 

 

  

Net Investment Income

      21,461,952   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      118,771,988   

Affiliated investments

      91,179,960   

Futures contracts

      (15,239,572 ) 

Swap contracts

      (25,869,540 ) 

Foreign currency transactions

      6   

Capital gain distributions received from Underlying ETFs

      691,332   
  

 

 

  

Net realized gain

      169,534,174   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      45,452,643   

Affiliated investments

      (54,825,532 ) 

Futures contracts

      10,510,997   

Swap contracts

      (112,987,762 ) 

Foreign currency transactions

      (2,171 ) 
  

 

 

  

Net change in unrealized depreciation

      (111,851,825 ) 
  

 

 

  

Net realized and unrealized gain

      57,682,349   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 79,144,301   
  

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-8

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Consolidated§ Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 21,461,952      $ 74,343,545   

Net realized gain

      169,534,174        202,230,166   

Net change in unrealized appreciation (depreciation)

      (111,851,825 )      183,544,800   
  

 

 

    

 

 

  

Increase in net assets from operations

      79,144,301        460,118,511   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (100,334,481 )      0   

Net realized capital gains

     

Class B

      (162,184,503 )      (77,273 ) 
  

 

 

    

 

 

  

Total distributions

      (262,518,984 )      (77,273 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      714,060,981        2,612,789,365   
  

 

 

    

 

 

  

Total Increase in Net Assets

      530,686,298        3,072,830,603   

Net Assets

     

Beginning of period

      6,758,575,709        3,685,745,106   
  

 

 

    

 

 

  

End of period

    $ 7,289,262,007      $ 6,758,575,709   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 21,263,038      $ 100,135,567   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      51,851,263      $ 546,615,351        269,306,993      $ 2,670,050,202   

Reinvestments

      25,561,732        262,518,984        7,829        77,273   

Redemptions

      (9,071,836 )      (95,073,354 )      (5,712,583 )      (57,338,110 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      68,341,159      $ 714,060,981        263,602,239      $ 2,612,789,365   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 714,060,981        $ 2,612,789,365   
    

 

 

      

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-9

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Consolidated§ Financial Highlights

 

Selected per share data                   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		    

Year Ended December 31,

  
            2012          2011(a)  

Net Asset Value, Beginning of Period

    $ 10.39      $ 9.52      $ 10.00   
  

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

       

Net investment income (b)

      0.03        0.14        0.09   

Net realized and unrealized gain (loss) on investments

      0.11        0.73        (0.44 ) 
  

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.14        0.87        (0.35 ) 
  

 

 

    

 

 

    

 

 

  

Less Distributions

       

Distributions from net investment income

      (0.15 )      0.00        (0.06 ) 

Distributions from net realized capital gains

      (0.24 )      (0.00 )(c)      (0.07 ) 
  

 

 

    

 

 

    

 

 

  

Total distributions

      (0.39 )      (0.00 )      (0.13 ) 
  

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.14      $ 10.39      $ 9.52   
  

 

 

    

 

 

    

 

 

  

Total Return (%) (d)

      1.22  (e)      9.14        (3.41 )(e) 

Ratios/Supplemental Data

       

Gross ratio of expenses to average net assets (%)

      0.92  (f)      0.93        0.96  (f) 

Net ratio of expenses to average net assets (%) (g)

      0.90  (f)      0.93        0.92  (f) 

Ratio of net investment income to average net assets (%) (h)

      0.60  (f)      1.37        1.45  (f) 

Portfolio turnover rate (%)

      38  (e)      62        75  (e) 

Net assets, end of period (in millions)

    $ 7,289.3      $ 6,758.6      $ 3,685.7   

 

(a) Commencement of operations was May 2, 2011.
(b) Per share amounts based on average shares outstanding during the period.
(c) Distributions from net realized capital gains were less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.
(g) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(h) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying ETFs in which it invests.

 

§See Note 2 of the notes to consolidated financial statements.

 

MIST-10

See accompanying notes to consolidated financial statements.

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is BlackRock Global Tactical Strategies Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B Shares are currently offered by the Portfolio.

The Portfolio allocates its assets in a broad range of asset classes, primarily through other investment companies known as exchange traded funds (“Underlying ETFs”), involving primarily series of the iShares® Trust and iShares®, Inc., but the Portfolio also has the ability to invest in series sponsored by other companies.

2. Consolidation of Subsidiary—BlackRock Global Tactical Strategies, Ltd.

The Portfolio may invest up to 6% of its total assets in the BlackRock Global Tactical Strategies, Ltd., which is a wholly-owned and controlled subsidiary of the Portfolio that is organized under the laws of the Cayman Islands as an exempted company (the “Subsidiary”). The Portfolio invests in the Subsidiary in order to gain exposure to the commodities market within the limitations of the federal tax laws, rules and regulations that apply to regulated investment companies. The Portfolio has obtained an opinion from legal counsel to the effect that the annual net profit, if any, realized by the Subsidiary and imputed for income tax purposes to the Portfolio should constitute “qualifying income” for purposes of the Portfolio remaining qualified as a regulated investment company for U.S federal income tax purposes. It is possible that the Internal Revenue Service or a court could disagree with the legal opinion obtained by the Portfolio.

The Subsidiary invests primarily in commodity-linked derivatives and exchange traded funds. Unlike the Portfolio, the Subsidiary may invest without limitation in commodity-linked derivatives; however, the Subsidiary complies with the same 1940 Act asset coverage requirements with respect to its investments in commodity-linked derivatives that are applicable to the Portfolio’s transactions in derivatives. In addition, to the extent applicable to the investment activities of the Subsidiary, the Subsidiary is subject to the same fundamental investment restrictions and follows the same compliance policies and procedures as the Portfolio.

By investing in the Subsidiary, the Portfolio is indirectly exposed to the risks associated with the Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are subject to commodities risk. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the 1940 Act and is not subject to all the investor protections of the 1940 Act. The Portfolio, however, wholly owns and controls the Subsidiary, and the Portfolio and Subsidiary are both managed by BlackRock Financial Management, Inc. (the “Subadviser”), making it unlikely that the Subsidiary will take action contrary to the interests of the Portfolio and its shareholders. Changes in the laws of the United States and/or Cayman Islands could result in the inability of the Portfolio and/or the Subsidiary to operate as described in the Portfolio’s prospectus and could adversely affect the Portfolio. For example, the Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Portfolio shareholders would likely suffer decreased investment returns.

The consolidated Schedule of Investments, Statement of Assets and Liabilities, Statement of Operations, Statement of Changes in Net Assets and the Financial Highlights of the Portfolio includes the account of the Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation for the Portfolio. The Subsidiary has a fiscal year end of December 31st for financial statement consolidation purposes and a nonconforming tax year end of November 30th.

A summary of the Portfolio’s investment in the Subsidiary is as follows:

 

      Inception Date
of Subsidiary		      Subsidiary
Net Assets at
June 30, 2013		      % of
Total Assets at
June 30, 2013		  

BlackRock Global Tactical Strategies, Ltd.

      05/14/2013       $ 1,000         0.0 % 

3. Significant Accounting Policies

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these consolidated financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the consolidated financial statements were issued.

 

MIST-11

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its consolidated financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in the Underlying ETFs are valued at the closing market quotation for their shares. The net asset value of the Portfolio is calculated based on the market values of the Underlying ETFs in which the Portfolio invests. For information about the use of fair value pricing by the Underlying ETFs, please refer to the prospectuses for such Underlying ETFs.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, swap transactions and short-term dividend reclass from Underlying ETFs. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Consolidated Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust

 

MIST-13

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Consolidated Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Consolidated Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $2,042,363,000, which is included on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

4. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Consolidated Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Consolidated Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

 

MIST-14

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Consolidated Schedule of Investments and restricted cash, if any, is reflected on the Consolidated Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Consolidated Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Consolidated Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Consolidated Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Consolidated Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Consolidated Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust the interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio indirectly holds fixed rate bonds through its investment in Underlying ETFs, the value of these bonds (and Underlying ETFs) may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contracts remaining life, to the extent that amount is positive.

 

MIST-15

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Centrally Cleared Swaps: Certain clearinghouses currently offer clearing for limited types of derivatives transactions, principally credit derivatives. In a cleared derivative transaction, a Portfolio typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Portfolio’s exposure to the credit risk of the original counterparty. The Portfolio typically will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared derivative transaction. Only a limited number of derivative transactions are currently eligible for clearing.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Consolidated Statement of Assets &
Liabilities Location

    Fair Value     

Consolidated Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate          Swaps at market value (b)    $ 39,272,657   
         Unrealized depreciation on centrally cleared swaps* (a)      48,086,244   
   Unrealized appreciation on futures contracts** (a)    $ 342,087         
Equity    Unrealized appreciation on futures contracts** (a)      22,722,919       Unrealized depreciation on futures contracts** (a)      14,762,688   
Foreign Exchange          Unrealized depreciation on futures contracts** (a)      1,843,055   
     

 

 

        

 

 

  
Total       $ 23,065,006          $ 103,964,644   
     

 

 

        

 

 

  

 

  * Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Consolidated Schedule of Investments. Only the variation margin is reported within the Consolidated Statement of Assets and Liabilities.
  ** Includes cumulative appreciation/depreciation of futures contracts as reported in the Consolidated Schedule of Investments. Only the current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities in the
Statement of Assets
and Liabilities		      Financial Instrument      Collateral Pledged(c)     Net Amount  

Credit Suisse Group AG

    $ 5,401,301       $ —       $ (5,200,000 )    $ 201,301   

Deutsche Bank AG

      14,390,099         —         (13,000,000 )      1,390,099   

Goldman Sachs International

      15,573,061         —         (14,100,000 )      1,473,061   

UBS AG

      3,908,196         —         (3,300,000 )      608,196   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 39,272,657       $ —       $ (35,600,000 )    $ 3,672,657   
  

 

 

     

 

 

     

 

 

    

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Consolidated Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Equity     Foreign
Exchange		     Total  

Futures contracts

    $ —      $ (10,885,373 )    $ (4,354,199 )    $ (15,239,572 ) 

Swap contracts

      (25,869,540 )      —        —        (25,869,540 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (25,869,540 )    $ (10,885,373 )    $ (4,354,199 )    $ (41,109,112 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated Statement of Operations Location—Net Change in Unrealized
Appreciation (Depreciation)

    Interest Rate     Equity     Foreign
Exchange		     Total  

Futures contracts

    $ 342,087      $ 12,011,965      $ (1,843,055 )    $ 10,510,997   

Swap contracts

      (112,987,762 )      —        —        (112,987,762 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (112,645,675 )    $ 12,011,965      $ (1,843,055 )    $ (102,476,765 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

MIST-16

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(d)		  

Futures contracts long

    $ 46,760,437   

Futures contracts short

      2,125,000   

Swap contracts

      2,186,666,667   

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) Excludes swap interest receivable of $3,307,611 and swap interest payable of $201,024.
  (c) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to over collateralization.
  (d) Averages are based on activity levels during 2013.

5. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the consolidated financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Consolidated Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Consolidated Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Consolidated Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

 

MIST-17

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

6. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases      Sales  
U.S. Government      Non U.S. Government      U.S. Government      Non U.S. Government  
$ 0       $ 1,954,658,033       $ 0       $ 2,147,829,192   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with BlackRock Financial Management, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$23,690,425      0.800 %    First $100 Million
     0.750 %    $100 Million to $300 Million
     0.700 %    $300 Million to $600 Million
     0.675 %    $600 Million to $1 Billion
     0.650 %    Over $1 Billion

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.125%    First $100 Million
0.075%    $100 Million to $300 Million
0.025%    $300 Million to $600 Million
0.020%    Over $3 Billion

An identical agreement was in place for the period January 1, 2013 through April 28, 2013. Amounts waived, if applicable, for the six months ended June 30, 2013 are shown as a management fee waiver in the Consolidated Statement of Operations.

Expense Limitation Agreement - The Adviser entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement continued in effect with respect to the Portfolio until April 28, 2013. Pursuant to that Expense Limitation Agreement, the Adviser had agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business, and Underlying ETFs fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, were limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under current
Expense Limitation Agreement

Class B

1.15%

 

MIST-18

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred.

Effective April 29, 2013, there was no longer an expense cap for the Portfolio. For the six months ended June 30, 2013, there were no amounts waived or expenses repaid to the Adviser in accordance with the Expense Limitation Agreement.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Consolidated Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Consolidated Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Consolidated Statement of Assets and Liabilities.

8. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

The Portfolio does not invest in the Underlying ETF’s for the purpose of exercising control; however, investments by the Portfolio within its principal investment strategies may represent a significant portion of the Underlying ETF’s net assets. Transactions in the Underlying ETF’s for the six months ended June 30, 2013 were as follows:

 

Underlying ETF/Security

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

iShares Barclays 1-3 Year Credit Bond Fund

      3,044,431         1,574,518         —        4,618,949   

iShares Barclays Intermediate Credit Bond Fund

      836,842         336,785         —        1,173,627   

iShares Core S&P 500 ETF

      233,945         2,919,538         —        3,153,483   

iShares Core Total US Bond Market ETF

      3,752,548         871,633         —        4,624,181   

iShares Dow Jones US Real Estate Index Fund

      967,536         —         (967,536 )      —   

iShares iBoxx $ High Yield Corporate Bond Fund

      2,996,610         —         (2,996,610 )      —   

iShares iBoxx $ Investment Grade Corporate Bond Fund

      3,933,758         —         (1,389,055 )      2,544,703   

iShares MSCI EAFE Index Fund

      11,536,997         —         (6,118,444 )      5,418,553   

iShares MSCI Mexico Capped Investable Market Index Fund

      —         2,056,889         (2,056,889 )      —   

iShares MSCI USA Minimum Volatility Index Fund

      1,619,700         336,393         (1,956,093 )      —   

iShares Russell 2000 Index Fund

      1,670,173         —         —        1,670,173   

iShares S&P 100 Index Fund

      1,326,534         —         (1,326,534 )      —   

 

MIST-19

Met Investors Series Trust

BlackRock Global Tactical Strategies Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Underlying ETF/Security

    Net Realized
Gain/(Loss) on Sales
of Underlying ETFs		     Capital Gain
Distributions from
Underlying ETFs		      Dividend Income
from Underlying
ETFs		      Ending Value
as of
June 30, 2013		  

iShares Barclays 1-3 Year Credit Bond Fund

    $ —      $ —       $ 1,965,054       $ 485,128,213   

iShares Barclays Intermediate Credit Bond Fund

      —        —         1,110,875         126,458,309   

iShares Core S&P 500 ETF

      —        —         2,723,327         507,616,159   

iShares Core Total US Bond Market ETF

      —        —         4,120,432         495,712,203   

iShares Dow Jones US Real Estate Index Fund

      7,675,279        —         565,444         —   

iShares iBoxx $ High Yield Corporate Bond Fund

      8,005,963        —         6,725,578         —   

iShares iBoxx $ Investment Grade Corporate Bond Fund

      5,499,804        —         6,218,138         289,205,496   

iShares MSCI EAFE Index Fund

      52,763,627        —         6,239,485         310,916,571   

iShares MSCI Mexico Capped Investable Market Index Fund

      (9,115,912 )      —         —         —   

iShares MSCI USA Minimum Volatility Index Fund

      7,952,756        —         197,808         —   

iShares Russell 2000 Index Fund

      —        —         440,926         162,274,009   

iShares S&P 100 Index Fund

      18,398,443        —         370,672         —   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 91,179,960      $ —       $ 30,677,739       $ 2,377,310,960   
  

 

 

    

 

 

     

 

 

     

 

 

  

9. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

10. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income      Long-Term Capital Gains      Total  
2012      2011      2012      2011      2012      2011  
$ —       $ 51,174,626       $ 77,273       $ 846,156       $ 77,273       $ 52,020,782   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income		      Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$ 253,714,774       $ 7,625,300       $ 162,970,060       $ —       $ 424,310,134   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-20

Met Investors Series Trust

BlackRock High Yield Portfolio

Managed by BlackRock Financial Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the BlackRock High Yield Portfolio returned 1.84% and 1.74%, respectively. The Portfolio’s benchmark, the Barclays U.S. Corporate High Yield 2% Issuer Capped Index1, returned 1.42%.

MARKET ENVIRONMENT / CONDITIONS

The risk rally continued in March as the high yield market went on to return 0.9%, further solidifying its quarterly streak of positive performance, climbing 3.0% in the first quarter. The market experienced a series of tempo shifts in its first three months of the year—elevated uncertainty in January/February aggravated by policy indecision in the US, followed by Euro-area malaise including a contentious Italian election, and an unexpected banking crisis in Cyprus. Despite the suite of events, risk markets remained supported with high yield outperforming virtually all fixed income sectors in March as well as over the three-month span. Risk premiums narrowed 9 basis points during the month, leading to 44 basis points of tightening for the first quarter, representing a period-end spread of T+516 basis points and a yield-to-worst of 5.89% for the JPM Global High Yield Index, which we still find attractive on a relative and absolute risk-reward basis.

Strong high yield new issue volumes re-emerged in March with $40.7 billion pumping from the pipeline. Although volumes were more tepid in February, the market produced its best quarter for issuance on record topping $118.8 billion—roughly $11 billion more than the record $107 billion in the first quarter of 2012. Supply from the international pipeline also crept higher with $31.1 billion pricing quarer-to-date, which is just $17 billion short of the full 2012 total. Prudent new issue trends persisted as companies continued to focus on refinancing. A similar theme played out across the lower-rated space where volumes experienced a notable month-over-month increase. The demand for high yield paper continues to be weaker than 2012, albeit still positive. Dedicated mutual funds witnessed inflows of $500 million for the month, and for the year are tracking just below the $1 billion mark at $800 million—the lightest first quarter flows since 2008.

The levered credit market experienced five defaults in March affecting $5.3 billion (the second highest default month on record), and through the first three months of the year, ten companies have defaulted for a total of $6.8 billion. The 12-month par-weighted default rate marginally increased to 1.3% and remains well below the 25-year average of 4.2%. A durable corporate fundamental backdrop kept default activity subdued in 2012, and we expect default volumes to remain low through 2014 as conditions remain fertile for levered issuers who have reduced debt maturities and continued to enhance liquidity.

The risk-off trade that started in May with a violent interest rate sell off intensified in June and the high yield market sank for the month. While the high yield market outperformed in May as higher-quality sectors reacted more negatively to the rate shock, it largely underperformed in June. In the end, the high yield market turned in a negative performance for the second quarter, but was still ahead of investment grade credit, U.S. Treasuries and emerging market debt. Despite a softer quarter overall, high yield is one of only two fixed income sectors with a positive return over the first half of 2013.

Market turbulence in June quelled high yield new-issue volumes, despite marginal improvements that came in the closing week. Even with a decline in second quarter issuance, year-to-date high yield new issuance volumes equal $218.9 billion, an impressive gain of more than $50 billion versus the same period last year. Refinancing continues to dominate deal flow, although there was an uptick in acquisition-related transactions in June. Dedicated high yield mutual funds experienced marginal outflows in May but outflows reached $9.5 billion in June, culminating in a quarterly result of $11.8 billion (the largest quarterly outflow on record). Year-to-date outflows now total $10.1 billion for high yield mutual funds.

Default volumes were modest in June, with two companies defaulting for $804 million. For the first six months of 2013, 19 companies have defaulted for a total of $9.3 billion. A durable corporate fundamental backdrop kept default activity subdued in the first half of the year and the trailing 12-month par-weighted default rate increased only slightly to 1.1%, which is still well below the 25-year average of 4.2%.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio outperformed relative to its benchmark, the Barclays US Corporate High Yield 2% Issuer Capped Index, for the six-month period. Outperformance was attributable to security selection within both non-rated credit tiers and equities. From a sector standpoint, security selection within the Automotive, Lodging, and Consumer Service boosted results. In contrast, an underweight and selection within Metals, Banking, and Retailers detracted from performance.

During the period, the Portfolio selectively participated in the high yield primary calendar, seeking higher-quality new issues illustrating solid risk-reward profiles and stable fundamentals. While we maintained a riskier stance at the start of the year, we gradually took advantage of market strength to transition the Portfolio to a more balanced risk level (hedged equity beta exposure with bank loan exposure).

Our focus remained on issuers that generate income with appealing risk-reward characteristics, attractive coupons, and stable fundamentals. We continued to favor issuers operating in mature industries, generating consistent cash flows with good earnings visibility, backed by profitable assets. The Portfolio continued to find value within higher-quality income-oriented credits while also adding lower-rated credits and increasing equity/equity-like securities based on their risk-reward profile.

 

MIST-1

Met Investors Series Trust

BlackRock High Yield Portfolio

Managed by BlackRock Financial Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

At period end, the Portfolio held an overweight in the Non Captive Diversified, Gaming, and Lodging sectors relative to the benchmark. Underweights included Banking, Non Captive Consumer, and Food & Beverage. The Portfolio maintained allocations of approximately 17% to bank loans, 2% to preferred securities and 1% to convertible bonds. On an asset allocation basis year to date, the Portfolio increased exposure to bank loans and equities, however we most recently hedged the equity beta exposure with S&P futures and slightly decreased loans towards shorter duration high yield, as we focused on credits with positive growth catalysts or idiosyncratic characteristics. We continue to position the Portfolio with credits identified through bottom-up analysis to find the most attractive risk-adjusted instruments in the capital structure.

James Keenan

Mitch Garfin

Derek Schoenhofen

Charlie McCarthy

Portfolio Managers

BlackRock Financial Management, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

BlackRock High Yield Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. CORPORATE HIGH YIELD 2% ISSUER CAPPED INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year        Since Inception2  
BlackRock High Yield Portfolio                           

Class A

        1.84           10.52           9.64           8.11           —   

Class B

        1.74           10.34           9.39           —           8.97   
Barclays U.S. Corporate High Yield 2% Issuer Capped Index        1.42           9.49           11.00           8.90           —   

1 The Barclays U.S. Corporate High Yield 2% Issuer Capped Index is composed of fixed rate non-investment grade debt with at least one year remaining to maturity that are dollar-denominated, nonconvertible and have an outstanding par value of at least $100 million. It limits issue exposure to a 2% maximum.

2 Inception of Class A shares is 8/30/1996. Inception of Class B shares is 4/28/2008.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Energy Future Intermediate Holding Co. LLC / EFIH Finance, Inc.      3.0   
Harrah’s Property Co.      2.6   
Hilton Hotel Corp.      2.3   
HD Supply, Inc.      1.9   
First Data Corp.      1.7   
American Capital, Ltd.      1.6   
GMAC Capital Trust I      1.5   
HCA, Inc.      1.5   
Ally Financial, Inc.      1.4   
General Motors Co.      1.3   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Corporate Bonds & Notes      75.2   
Floating Rate Loans      15.3   
Common Stocks      6.1   
Preferred Stocks      1.5   
Convertible Preferred Stocks      1.0   
Convertible Bonds      0.9   

 

MIST-3

Met Investors Series Trust

BlackRock High Yield Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

BlackRock High Yield Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

      Actual      0.66 %     $ 1,000.00         $ 1,018.40         $ 3.30   
     Hypothetical*      0.66 %     $ 1,000.00         $ 1,021.52         $ 3.31   

Class B

      Actual      0.91 %     $ 1,000.00         $ 1,017.40         $ 4.55   
     Hypothetical*      0.91 %     $ 1,000.00         $ 1,020.28         $ 4.56   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—80.2% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Advertising—0.4%

  

Affinion Group, Inc.

    

7.875%, 12/15/18 (a)

     1,078,000      $ 813,890   

Checkout Holding Corp.

    

Zero Coupon, 11/15/15 (144A)

     1,159,000        906,917   

inVentiv Health, Inc.

    

9.000%, 01/15/18 (144A) (a)

     760,000        794,200   

MDC Partners, Inc.

    

6.750%, 04/01/20 (144A)

     525,000        523,688   
   

 

 

  
      3,038,695   
   

 

 

  

Aerospace/Defense—0.6%

  

Kratos Defense & Security Solutions, Inc.

    

10.000%, 06/01/17

     1,418,000        1,517,260   

Meccanica Holdings USA, Inc.

    

6.250%, 07/15/19 (144A)

     278,000        285,384   

National Air Cargo Group, Inc.

    

12.375%, 09/02/15 (b) (c)

     2,241,986        2,245,264   

Sequa Corp.

    

7.000%, 12/15/17 (144A)

     640,000        633,600   
   

 

 

  
      4,681,508   
   

 

 

  

Airlines—0.7%

  

American Airlines Pass-Through Trust

    

8.625%, 04/15/23

     1,741,714        1,850,571   

Continental Airlines 2012-3 Pass-Through Certificates

    

6.125%, 04/29/18

     900,000        909,000   

Delta Air Lines Pass-Through Trust

    

9.750%, 06/17/18

     257,206        282,926   

U.S. Airways Group, Inc.

    

6.125%, 06/01/18

     935,000        883,575   

US Airways Pass-Through Trust

    

6.750%, 12/03/22

     660,000        686,400   

10.875%, 10/22/14

     578,387        610,198   
   

 

 

  
      5,222,670   
   

 

 

  

Apparel—0.1%

  

Levi Strauss & Co.

    

6.875%, 05/01/22

     388,000        420,980   

7.750%, 05/15/18 (EUR)

     278,000        381,761   
   

 

 

  
      802,741   
   

 

 

  

Auto Manufacturers—0.4%

  

Jaguar Land Rover Automotive plc

    

8.250%, 03/15/20 (GBP)

     1,362,000        2,247,614   

Navistar International Corp.

    

8.250%, 11/01/21 (a)

     683,000        671,047   
   

 

 

  
      2,918,661   
   

 

 

  

Auto Parts & Equipment—0.6%

  

Continental Rubber of America Corp.

    

4.500%, 09/15/19 (144A)

     440,000        453,057   

Delphi Corp.

    

6.125%, 05/15/21 (a)

     225,000        245,250   

Auto Parts & Equipment—(Continued)

  

GKN Holdings plc

    

5.375%, 09/19/22 (GBP)

     660,000      $ 1,003,475   

IDQ Holdings, Inc.

    

11.500%, 04/01/17 (144A)

     500,000        547,500   

Lear Corp.

    

5.750%, 08/01/14 (h)

     1,395,000        6,975   

8.500%, 12/01/13 (h)

     1,530,000        7,650   

Schaeffler Finance B.V.

    

4.250%, 05/15/18 (EUR)

     364,000        464,325   

4.750%, 05/15/21 (144A) (a)

     385,000        365,750   

Titan International, Inc.

    

7.875%, 10/01/17 (a)

     560,000        588,000   

7.875%, 10/01/17 (144A)

     1,075,000        1,128,750   
   

 

 

  
      4,810,732   
   

 

 

  

Banks—2.0%

    

Ally Financial, Inc.
8.000%, 11/01/31 (a) (d)

     9,267,000        11,132,820   

ATF Bank JSC
9.250%, 02/21/14 (144A)

     100,000        100,000   

CIT Group, Inc.
5.000%, 05/15/17

     1,190,000        1,215,287   

5.250%, 03/15/18

     610,000        626,775   

5.500%, 02/15/19 (144A)

     1,063,000        1,097,548   

6.000%, 04/01/36 (e)

     1,550,000        1,514,668   

6.625%, 04/01/18 (144A)

     145,000        156,600   
   

 

 

  
      15,843,698   
   

 

 

  

Beverages—0.0%

  

Constellation Brands, Inc.

    

7.250%, 05/15/17

     110,000        125,125   
   

 

 

  

Chemicals—2.6%

  

Axiall Corp.

    

4.875%, 05/15/23 (144A)

     310,000        294,500   

Basell Finance Co. B.V.

    

8.100%, 03/15/27 (144A)

     1,114,000        1,410,150   

Celanese U.S. Holdings LLC

    

5.875%, 06/15/21

     719,000        762,140   

Eagle Spinco, Inc.

    

4.625%, 02/15/21 (144A)

     383,000        367,680   

Huntsman International LLC

    

4.875%, 11/15/20 (a)

     808,000        797,900   

8.625%, 03/15/20

     255,000        277,313   

8.625%, 03/15/21

     305,000        334,737   

Ineos Finance plc

    

7.500%, 05/01/20 (144A) (a)

     1,406,000        1,493,875   

INEOS Group Holdings S.A.

    

6.125%, 08/15/18 (144A)

     800,000        764,000   

6.500%, 08/15/18 (EUR)

     883,000        1,098,900   

Momentive Performance Materials, Inc.

    

8.875%, 10/15/20

     2,125,000        2,220,625   

Nexeo Solutions LLC / Nexeo Solutions Finance Corp.
8.375%, 03/01/18

     315,000        313,425   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Chemicals—(Continued)

  

Nova Chemicals Corp.

    

8.625%, 11/01/19

     671,000      $ 735,584   

Nufarm Australia, Ltd.

    

6.375%, 10/15/19 (144A)

     705,000        703,237   

Orion Engineered Carbons Bondco GmbH

    

10.000%, 06/15/18 (EUR)

     937,800        1,333,600   

Perstorp Holding AB

    

8.750%, 05/15/17 (144A) (a)

     585,000        585,000   

PetroLogistics L.P. / PetroLogistics Finance Corp.

    

6.250%, 04/01/20 (144A)

     561,000        549,780   

Rain CII Carbon LLC / CII Carbon Corp.

    

8.250%, 01/15/21 (144A) (a)

     741,000        741,000   

8.500%, 01/15/21 (EUR)

     100,000        130,165   

Rockwood Specialties Group, Inc.

    

4.625%, 10/15/20

     3,821,000        3,840,105   

Tronox Finance LLC

    

6.375%, 08/15/20 (144A) (a)

     177,000        166,823   

US Coatings Acquisition, Inc. / Axalta Coating Systems Dutch Holding B B.V.

    

5.750%, 02/01/21 (EUR)

     260,000        337,583   

7.375%, 05/01/21 (144A) (a)

     1,410,000        1,438,200   
   

 

 

  
      20,696,322   
   

 

 

  

Coal—0.7%

    

Alpha Natural Resources, Inc.
6.250%, 06/01/21 (a)

     534,000        424,530   

CONSOL Energy, Inc.
8.000%, 04/01/17

     863,000        908,307   

8.250%, 04/01/20 (a)

     1,074,000        1,125,015   

Peabody Energy Corp.
6.000%, 11/15/18

     1,300,000        1,303,250   

6.250%, 11/15/21 (a)

     671,000        647,515   

7.875%, 11/01/26

     967,000        976,670   
   

 

 

  
      5,385,287   
   

 

 

  

Commercial Services—5.3%

    

AA Bond Co., Ltd.
9.500%, 07/31/43 (GBP)

     510,000        803,803   

APX Group, Inc.
6.375%, 12/01/19 (144A)

     1,781,000        1,691,950   

8.750%, 12/01/20 (144A)

     1,934,000        1,842,135   

Ashtead Capital, Inc.
6.500%, 07/15/22 (144A)

     1,096,000        1,142,580   

Brickman Group Holdings, Inc.
9.125%, 11/01/18 (144A)

     79,000        84,530   

Catalent Pharma Solutions, Inc.
7.875%, 10/15/18 (144A) (a)

     538,000        542,035   

Ceridian Corp.
8.875%, 07/15/19 (144A) (d)

     4,330,000        4,811,712   

11.000%, 03/15/21 (144A) (d)

     4,557,000        5,035,485   

11.250%, 11/15/15

     373,000        378,129   

EC Finance plc
9.750%, 08/01/17 (EUR)

     1,242,000        1,742,262   

H&E Equipment Services, Inc.
7.000%, 09/01/22

     1,022,000        1,065,435   

Commercial Services—(Continued)

    

Hertz Corp. (The)
4.250%, 04/01/18 (144A) (a)

     566,000      $ 551,850   

5.875%, 10/15/20

     210,000        216,300   

6.250%, 10/15/22 (a)

     825,000        861,094   

6.750%, 04/15/19

     885,000        935,887   

Igloo Holdings Corp.
8.250%, 12/15/17 (144A) (a) (f)

     944,000        962,880   

Interactive Data Corp.
10.250%, 08/01/18 (d)

     3,490,000        3,865,175   

IVS F. S.p.A
7.125%, 04/01/20 (EUR)

     710,000        887,204   

Jaguar Holding Co. II / Jaguar Merger Subordinated, Inc.
9.500%, 12/01/19 (144A)

     535,000        591,175   

La Financiere Atalian S.A.
7.250%, 01/15/20 (EUR)

     525,000        670,553   

Laureate Education, Inc.
9.250%, 09/01/19 (144A)

     915,000        979,050   

Live Nation Entertainment, Inc.
8.125%, 05/15/18 (144A)

     630,000        667,800   

Safway Group Holding LLC / Safway Finance Corp.
7.000%, 05/15/18 (144A)

     666,000        652,680   

Service Corp. International
5.375%, 01/15/22 (144A)

     178,000        177,555   

ServiceMaster Co.
8.000%, 02/15/20 (a)

     585,000        583,538   

TMF Group Holding B.V.
9.875%, 12/01/19 (EUR)

     310,000        403,511   

TransUnion LLC / TransUnion Financing Corp.
11.375%, 06/15/18

     182,000        201,565   

Truven Health Analytics, Inc.
10.625%, 06/01/20 (144A)

     405,000        445,500   

United Rentals North America, Inc.
5.750%, 07/15/18 (a)

     783,000        822,150   

6.125%, 06/15/23 (a)

     4,280,000        4,258,600   

7.375%, 05/15/20 (a)

     660,000        704,550   

7.625%, 04/15/22

     592,000        640,840   

8.250%, 02/01/21

     1,170,000        1,281,150   

Verisure Holding AB
8.750%, 09/01/18 (EUR)

     117,000        163,715   

8.750%, 12/01/18 (EUR)

     186,000        250,581   

WEX, Inc.
4.750%, 02/01/23 (144A)

     783,000        739,935   
   

 

 

  
      41,654,894   
   

 

 

  

Computers—0.4%

    

Spansion LLC
7.875%, 11/15/17

     480,000        489,600   

SunGard Data Systems, Inc.
6.625%, 11/01/19 (144A)

     1,505,000        1,512,525   

7.375%, 11/15/18

     1,420,000        1,498,100   
   

 

 

  
      3,500,225   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Construction Materials—1.2%

    

Ainsworth Lumber Co., Ltd.
7.500%, 12/15/17 (144A)

     1,683,000      $ 1,783,980   

Builders FirstSource, Inc.
7.625%, 06/01/21 (144A)

     1,131,000        1,094,243   

Building Materials Corp. of America
6.750%, 05/01/21 (144A)

     850,000        903,125   

7.000%, 02/15/20 (144A)

     560,000        596,400   

Buzzi Unicem S.p.A.
6.250%, 09/28/18 (EUR)

     438,000        601,935   

Cemex S.A.B. de C.V.
5.875%, 03/25/19 (144A) (a)

     505,000        489,850   

HeidelbergCement Finance Luxembourg S.A.
7.500%, 04/03/20 (EUR)

     179,000        272,022   

Interline Brands, Inc.
7.500%, 11/15/18

     840,000        882,000   

Spie BondCo 3 SCA
11.000%, 08/15/19 (EUR)

     503,000        698,269   

Texas Industries, Inc.
9.250%, 08/15/20 (a)

     770,000        829,675   

USG Corp.
9.750%, 01/15/18 (a)

     1,384,000        1,570,840   
   

 

 

  
      9,722,339   
   

 

 

  

Distribution/Wholesale—1.7%

    

American Builders & Contractors Supply Co., Inc.
5.625%, 04/15/21 (144A)

     630,000        618,975   

HD Supply, Inc.
7.500%, 07/15/20 (144A)

     1,651,000        1,671,637   

8.125%, 04/15/19

     4,354,000        4,767,630   

11.000%, 04/15/20 (d)

     4,928,000        5,741,120   

VWR Funding, Inc.
7.250%, 09/15/17

     170,000        175,950   
   

 

 

  
      12,975,312   
   

 

 

  

Diversified Financial Services—2.7%

    

Air Lease Corp.
4.500%, 01/15/16 (a)

     1,369,000        1,375,845   

Aircastle, Ltd.
6.250%, 12/01/19 (a)

     655,000        680,381   

6.750%, 04/15/17

     1,030,000        1,081,500   

Cantor Commercial Real Estate Co. L.P. / CCRE Finance Corp.
7.750%, 02/15/18 (144A)

     769,000        772,845   

CNG Holdings, Inc.
9.375%, 05/15/20 (144A)

     455,000        436,800   

Co-operative Group Holdings 2011
5.625%, 07/08/20 (GBP) (g)

     640,000        895,535   

6.250%, 07/08/26 (GBP) (g)

     150,000        207,610   

Credit Acceptance Corp.
9.125%, 02/01/17

     896,000        947,520   

Doric Nimrod Air Finance Alpha, Ltd. Pass-Through Trust
5.125%, 11/30/24 (144A)

     1,939,355        1,939,355   

6.500%, 05/30/21 (144A)

     477,568        486,655   

Diversified Financial Services—(Continued)

  

General Motors Financial Co., Inc.
4.250%, 05/15/23 (144A) (a)

     930,000      $ 866,062   

6.750%, 06/01/18 (a)

     960,000        1,044,000   

GETCO Financing Escrow LLC
8.250%, 06/15/18 (144A)

     464,000        438,480   

Icahn Enterprises L.P. / Icahn Enterprises Finance Corp.
7.750%, 01/15/16

     150,000        154,875   

8.000%, 01/15/18 (d)

     3,145,000        3,302,250   

Jefferies Finance LLC / JFIN Co-Issuer Corp.
7.375%, 04/01/20 (144A)

     505,000        489,850   

Jefferies LoanCore LLC / JLC Finance Corp.
6.875%, 06/01/20 (144A)

     1,218,000        1,181,460   

Lehman Brothers Holdings, Inc.
4.750%, 01/16/14 (EUR) (c) (h)

     2,140,000        734,683   

5.000%, 02/05/14 (EUR) (c) (h)

     4,500,000        1,405,781   

5.375%, 10/17/12 (EUR) (c) (h)

     350,000        120,159   

8.800%, 09/22/18 (c) (h)

     489,000        119,194   

8.800%, 12/31/49 (c) (h)

     1,740,000        424,125   

Nuveen Investments, Inc.
9.125%, 10/15/17 (144A) (a)

     878,000        880,195   

Springleaf Finance Corp.
6.900%, 12/15/17

     295,000        289,469   

Trafigura Beheer B.V.
6.375%, 04/08/15 (EUR)

     490,000        655,348   
   

 

 

  
      20,929,977   
   

 

 

  

Electric—4.0%

    

Calpine Corp.
7.500%, 02/15/21 (144A)

     283,000        302,103   

DPL, Inc.
6.500%, 10/15/16

     605,000        632,225   

7.250%, 10/15/21 (a)

     1,000,000        1,035,000   

Dynegy, Inc.
5.875%, 06/01/23 (144A) (a)

     853,000        776,230   

Energy Future Intermediate Holding Co. LLC / EFIH Finance, Inc.
6.875%, 08/15/17 (144A) (a)

     2,865,000        2,907,975   

10.000%, 12/01/20 (d)

     10,909,000        11,945,355   

10.000%, 12/01/20 (144A) (a)

     1,000,000        1,092,500   

11.250%, 12/01/18 (144A) (d) (f)

     3,961,864        3,347,775   

12.250%, 03/01/22 (144A) (d)

     4,121,000        4,553,705   

FPL Energy National Wind Portfolio LLC
6.125%, 03/25/19 (144A)

     42,025        32,359   

GenOn REMA LLC
9.237%, 07/02/17

     475,747        486,451   

9.681%, 07/02/26

     538,000        559,520   

Homer City Generation LP
8.137%, 10/01/19 (f)

     420,000        434,700   

8.734%, 10/01/26 (f)

     635,000        663,575   

Mirant Mid Atlantic Pass-Through Trust
9.125%, 06/30/17

     725,065        797,572   

NRG Energy, Inc.
7.625%, 01/15/18

     710,000        759,700   

7.625%, 05/15/19

     1,000,000        1,045,000   
   

 

 

  
      31,371,745   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electrical Components & Equipment—0.2%

  

Belden, Inc.
5.500%, 09/01/22 (144A)

     240,000      $ 235,800   

5.500%, 04/15/23 (EUR)

     400,000        503,738   

General Cable Corp.
5.750%, 10/01/22 (144A)

     850,000        841,500   
   

 

 

  
      1,581,038   
   

 

 

  

Electronics—0.5%

    

Rexel S.A.
5.125%, 06/15/20 (EUR)

     657,000        856,295   

Techem GmbH
6.125%, 10/01/19 (EUR)

     1,194,000        1,627,993   

6.125%, 10/01/19 (144A) (EUR)

     107,000        145,892   

Trionista Holdco GmbH
5.000%, 04/30/20 (EUR)

     1,066,000        1,372,989   

Trionista TopCo GmbH
6.875%, 04/30/21 (EUR)

     211,000        271,078   
   

 

 

  
      4,274,247   
   

 

 

  

Engineering & Construction—0.1%

    

Aguila 3 S.A.
7.875%, 01/31/18 (144A)

     556,000        572,680   

Weekley Homes LLC / Weekley Finance Corp.
6.000%, 02/01/23 (144A)

     505,000        496,163   
   

 

 

  
      1,068,843   
   

 

 

  

Entertainment—1.4%

    

Cinemark USA, Inc.
5.125%, 12/15/22

     462,000        445,830   

Diamond Resorts Corp.
12.000%, 08/15/18

     2,413,000        2,642,235   

Fontainebleau Las Vegas Holdings LLC
10.250%, 06/15/15 (144A) (h)

     1,425,000        891   

Gala Group Finance plc
8.875%, 09/01/18 (GBP)

     1,573,000        2,526,431   

Isle of Capri Casinos, Inc.
5.875%, 03/15/21 (a)

     430,000        410,650   

7.750%, 03/15/19

     100,000        105,250   

NAI Entertainment Holdings LLC
8.250%, 12/15/17 (144A)

     670,000        716,900   

Regal Entertainment Group
5.750%, 02/01/25

     217,000        206,150   

Scientific Games Corp.
8.125%, 09/15/18

     275,000        294,250   

Scientific Games International, Inc.
9.250%, 06/15/19 (a)

     55,000        59,537   

Sisal Holding Istituto di Pagamento S.p.A.
7.250%, 09/30/17 (EUR)

     177,000        229,010   

Six Flags Entertainment Corp.
5.250%, 01/15/21 (144A)

     1,315,000        1,268,975   

Waterford Gaming LLC / Waterford Gaming Finance Corp.
8.625%, 09/15/14 (144A)

     485,045        109,135   

WMG Acquisition Corp.
11.500%, 10/01/18

     1,675,000        1,917,875   
   

 

 

  
      10,933,119   
   

 

 

  

Environmental Control—0.2%

    

ADS Waste Holdings, Inc.
8.250%, 10/01/20 (144A)

     538,000      $ 548,760   

Casella Waste Systems, Inc.
7.750%, 02/15/19

     182,000        172,900   

Covanta Holding Corp.
6.375%, 10/01/22 (a)

     384,000        388,070   

Darling International, Inc.
8.500%, 12/15/18

     190,000        210,188   

Tervita Corp.
8.000%, 11/15/18 (144A)

     150,000        150,750   
   

 

 

  
      1,470,668   
   

 

 

  

Food—1.0%

    

ARAMARK Corp.
5.750%, 03/15/20 (144A)

     1,581,000        1,616,572   

Bakkavor Finance 2 plc
8.250%, 02/15/18 (GBP)

     1,056,000        1,602,107   

8.750%, 06/15/20 (GBP)

     500,000        765,266   

Del Monte Corp.
7.625%, 02/15/19

     187,000        192,143   

JBS USA LLC / JBS USA Finance, Inc.
11.625%, 05/01/14

     265,000        279,575   

Pinnacle Foods Finance LLC / Pinnacle Foods Finance Corp.
4.875%, 05/01/21 (144A)

     1,109,000        1,059,095   

Post Holdings, Inc.
7.375%, 02/15/22

     1,010,000        1,080,700   

R&R Pik plc
9.250%, 05/15/18 (EUR) (f)

     526,000        676,109   

Smithfield Foods, Inc.
6.625%, 08/15/22

     331,000        355,825   
   

 

 

  
      7,627,392   
   

 

 

  

Forest Products & Paper—0.6%

    

Boise Paper Holdings LLC / Boise Co.-Issuer Co.
8.000%, 04/01/20

     966,000        1,028,790   

Cascades, Inc.
7.750%, 12/15/17 (a)

     700,000        729,750   

Clearwater Paper Corp.
4.500%, 02/01/23 (144A)

     789,000        749,550   

7.125%, 11/01/18

     625,000        668,750   

Sappi Papier Holding GmbH
6.625%, 04/15/21 (144A) (a)

     240,000        232,800   

8.375%, 06/15/19 (144A)

     425,000        448,375   

Unifrax I LLC / Unifrax Holding Co.
7.500%, 02/15/19 (144A)

     855,000        872,100   
   

 

 

  
      4,730,115   
   

 

 

  

Gas—0.6%

    

Sabine Pass LNG L.P.
6.500%, 11/01/20 (144A)

     720,000        727,200   

7.500%, 11/30/16 (d)

     3,854,000        4,147,868   
   

 

 

  
      4,875,068   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Healthcare - Products—2.1%

    

Alere, Inc.
6.500%, 06/15/20 (144A) (a)

     115,000      $ 111,550   

Biomet, Inc.
6.500%, 08/01/20 (d)

     2,933,000        3,022,823   

6.500%, 10/01/20 (d)

     4,451,000        4,439,872   

ConvaTec Healthcare E S.A.
7.375%, 12/15/17 (144A) (EUR)

     594,000        815,705   

DJO Finance LLC / DJO Finance Corp.
7.750%, 04/15/18 (a)

     260,000        256,750   

8.750%, 03/15/18 (a)

     354,000        382,320   

9.875%, 04/15/18 (a)

     554,000        578,930   

Fresenius U.S. Finance II, Inc.
9.000%, 07/15/15 (144A)

     870,000        961,350   

Hologic, Inc.
6.250%, 08/01/20

     953,000        988,142   

IDH Finance plc
6.000%, 12/01/18 (GBP)

     287,000        436,512   

6.000%, 12/01/18 (144A) (GBP)

     100,000        149,053   

Kinetic Concepts, Inc. / KCI USA, Inc.
10.500%, 11/01/18 (a)

     291,000        312,825   

12.500%, 11/01/19 (a)

     726,000        747,780   

Ontex IV S.A.
7.500%, 04/15/18 (144A) (EUR)

     230,000        307,912   

9.000%, 04/15/19 (EUR)

     1,348,000        1,760,765   

Teleflex, Inc.
6.875%, 06/01/19

     805,000        849,275   
   

 

 

  
      16,121,564   
   

 

 

  

Healthcare - Services—3.8%

    

Care UK Health & Social Care plc
9.750%, 08/01/17 (GBP)

     630,000        972,571   

Community Health Systems, Inc.
5.125%, 08/15/18 (a)

     1,065,000        1,080,975   

7.125%, 07/15/20

     718,000        739,540   

8.000%, 11/15/19

     224,000        238,280   

DaVita HealthCare Partners, Inc.
5.750%, 08/15/22

     519,000        517,703   

Fresenius Medical Care U.S. Finance, Inc.
6.875%, 07/15/17

     90,000        98,325   

HCA Holdings, Inc.
6.250%, 02/15/21 (a)

     672,000        685,440   

HCA, Inc.
4.750%, 05/01/23 (a)

     1,124,000        1,076,230   

5.875%, 03/15/22

     5,565,000        5,711,081   

6.500%, 02/15/20 (a)

     1,677,000        1,814,304   

7.250%, 09/15/20

     1,841,000        1,976,774   

7.875%, 02/15/20

     1,005,000        1,082,259   

IASIS Healthcare LLC / IASIS Capital Corp.
8.375%, 05/15/19 (a)

     751,000        758,041   

INC Research LLC
11.500%, 07/15/19 (144A)

     720,000        774,000   

Priory Group No. 3 plc
7.000%, 02/15/18 (144A) (GBP)

     1,010,000        1,551,521   

7.000%, 02/15/18 (GBP)

     448,000        688,199   

Healthcare - Services—(Continued)

    

Symbion, Inc.
8.000%, 06/15/16

     950,000      $ 988,000   

Tenet Healthcare Corp.
4.375%, 10/01/21 (144A)

     1,903,000        1,746,003   

4.500%, 04/01/21 (144A)

     522,000        486,765   

6.250%, 11/01/18

     2,539,000        2,672,297   

6.750%, 02/01/20

     980,000        950,600   

8.000%, 08/01/20

     550,000        568,563   

Vanguard Health Holding Co. II LLC / Vanguard Holding Co. II, Inc.
7.750%, 02/01/19 (a)

     1,075,000        1,139,500   

Voyage Care Bondco plc
6.500%, 08/01/18 (GBP)

     704,000        1,076,102   
   

 

 

  
      29,393,073   
   

 

 

  

Holding Companies - Diversified—0.3%

    

Boart Longyear Management Pty, Ltd.
7.000%, 04/01/21 (144A)

     700,000        659,750   

Odeon & UCI Finco plc
9.000%, 08/01/18 (144A) (GBP)

     573,000        917,258   

9.000%, 08/01/18 (GBP)

     111,000        177,689   

WaveDivision Escrow LLC / WaveDivision Escrow Corp.
8.125%, 09/01/20 (144A)

     450,000        465,750   
   

 

 

  
      2,220,447   
   

 

 

  

Home Builders—2.8%

    

Ashton Woods USA LLC / Ashton Woods Finance Co.
6.875%, 02/15/21 (144A)

     744,000        751,440   

Beazer Homes USA, Inc.
6.625%, 04/15/18 (a)

     1,003,000        1,064,434   

Brookfield Residential Properties, Inc.
6.500%, 12/15/20 (144A)

     937,000        944,028   

Brookfield Residential Properties, Inc. / Brookfield Residential US Corp.
6.125%, 07/01/22 (144A) (a)

     793,000        778,131   

DR Horton, Inc.
4.375%, 09/15/22 (a)

     386,000        366,700   

K Hovnanian Enterprises, Inc.
7.250%, 10/15/20 (144A)

     2,781,000        2,996,527   

9.125%, 11/15/20 (144A)

     255,000        279,225   

KB Home
7.500%, 09/15/22

     740,000        793,650   

Lennar Corp.
5.000%, 11/15/22 (144A) (a)

     910,000        864,500   

PulteGroup, Inc.
6.375%, 05/15/33

     750,000        701,250   

Ryland Group, Inc. (The)
6.625%, 05/01/20

     650,000        682,500   

Shea Homes LP / Shea Homes Funding Corp.
8.625%, 05/15/19 (d)

     2,827,000        3,017,822   

Standard Pacific Corp.
8.375%, 01/15/21 (e)

     5,876,000        6,698,640   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Home Builders—(Continued)

    

Taylor Morrison Communities, Inc. / Monarch Communities, Inc.
5.250%, 04/15/21 (144A)

     870,000      $ 826,500   

William Lyon Homes, Inc.

    

8.500%, 11/15/20 (144A)

     940,000        1,022,250   
   

 

 

  
      21,787,597   
   

 

 

  

Home Furnishings—0.1%

  

Brighthouse Group, Ltd.

    

7.875%, 05/15/18 (GBP)

     184,000        277,756   

DFS Furniture Holdings plc

    

7.625%, 08/15/18 (GBP)

     160,000        251,261   
   

 

 

  
      529,017   
   

 

 

  

Household Products/Wares—1.3%

  

ACCO Brands Corp.

    

6.750%, 04/30/20 (a)

     127,000        127,794   

Jarden Corp.

    

7.500%, 05/01/17 (a)

     655,000        718,044   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu

    

5.750%, 10/15/20

     4,170,000        4,201,275   

6.875%, 02/15/21

     295,000        309,750   

7.125%, 04/15/19

     1,125,000        1,188,281   

7.875%, 08/15/19

     1,040,000        1,133,600   

9.000%, 04/15/19

     435,000        449,137   

Spectrum Brands Escrow Corp.

    

6.375%, 11/15/20 (144A)

     310,000        324,725   

6.625%, 11/15/22 (144A)

     425,000        445,188   

Spectrum Brands, Inc.

    

9.500%, 06/15/18

     907,000        993,165   

Zobele Holding S.p.A.

    

7.875%, 02/01/18 (EUR)

     330,000        430,618   
   

 

 

  
      10,321,577   
   

 

 

  

Housewares—0.1%

  

Libbey Glass, Inc.

    

6.875%, 05/15/20

     429,000        448,841   
   

 

 

  

Insurance—0.3%

  

A-S Co-Issuer Subsidiary, Inc. / A-S Merger Sub LLC

    

7.875%, 12/15/20 (144A) (a)

     562,000        564,810   

American General Institutional Capital A

    

7.570%, 12/01/45 (144A)

     1,000,000        1,190,000   

CNO Financial Group, Inc.

    

6.375%, 10/01/20 (144A)

     560,000        595,000   
   

 

 

  
      2,349,810   
   

 

 

  

Internet—1.0%

  

Cerved Technologies S.p.A.

    

6.375%, 01/15/20 (EUR)

     174,000        219,692   

8.000%, 01/15/21 (EUR)

     178,000        217,792   

IAC / InterActiveCorp

    

4.750%, 12/15/22 (144A)

     730,000        689,850   

Internet—(Continued)

  

VeriSign, Inc.

    

4.625%, 05/01/23 (144A)

     674,000      $ 653,780   

Zayo Group LLC / Zayo Capital, Inc.

    

8.125%, 01/01/20

     2,600,000        2,821,000   

10.125%, 07/01/20 (a)

     2,657,000        2,949,270   
   

 

 

  
      7,551,384   
   

 

 

  

Iron/Steel—0.8%

    

ArcelorMittal
4.250%, 02/25/15 (a)

     435,000        438,262   

4.250%, 08/05/15

     2,111,000        2,132,110   

4.250%, 03/01/16

     605,000        608,025   

5.000%, 02/25/17

     990,000        1,002,375   

6.125%, 06/01/18

     1,072,000        1,104,160   

9.500%, 02/15/15 (a)

     146,000        159,505   

Steel Dynamics, Inc.
6.375%, 08/15/22 (144A)

     750,000        791,250   
   

 

 

  
      6,235,687   
   

 

 

  

Leisure Time—0.4%

    

Brunswick Corp.
4.625%, 05/15/21 (144A)

     760,000        741,000   

Carlson Wagonlit B.V.
6.875%, 06/15/19 (144A)

     785,000        792,850   

Cirsa Funding Luxembourg S.A.
8.750%, 05/15/18 (EUR)

     1,452,000        1,901,335   

Travelport LLC / Travelport Holdings, Inc.
6.400%, 03/01/16 (144A) (i)

     64,605        60,406   

11.875%, 09/01/16 (144A)

     11,636        10,763   
   

 

 

  
      3,506,354   
   

 

 

  

Lodging—0.8%

    

Choice Hotels International, Inc.
5.750%, 07/01/22

     410,000        434,600   

Felcor Lodging LP
5.625%, 03/01/23

     532,000        517,370   

MCE Finance, Ltd.
5.000%, 02/15/21 (144A)

     1,222,000        1,145,625   

MGM Resorts International
6.750%, 10/01/20

     113,000        116,955   

7.500%, 06/01/16 (a)

     523,000        570,070   

7.625%, 01/15/17

     306,000        334,305   

8.625%, 02/01/19 (a)

     65,000        73,450   

MTR Gaming Group, Inc.
11.500%, 08/01/19 (f)

     467,325        488,355   

Station Casinos LLC
7.500%, 03/01/21 (144A)

     2,408,000        2,432,080   
   

 

 

  
      6,112,810   
   

 

 

  

Machinery - Construction & Mining—0.1%

    

Terex Corp.
6.000%, 05/15/21

     1,070,000        1,067,325   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Machinery - Diversified—0.2%

    

DH Services Luxembourg S.a.r.l.
7.750%, 12/15/20 (144A) (a)

     291,000      $ 304,095   

Manitowoc Co., Inc. (The)
5.875%, 10/15/22

     1,075,000        1,080,375   
   

 

 

  
      1,384,470   
   

 

 

  

Media—5.0%

    

AMC Networks, Inc.
4.750%, 12/15/22

     534,000        515,310   

7.750%, 07/15/21

     625,000        682,813   

Cablevision Systems Corp.
5.875%, 09/15/22 (a)

     1,277,000        1,235,497   

CCO Holdings LLC / CCO Holdings Capital Corp.
5.125%, 02/15/23

     1,840,000        1,725,000   

5.250%, 09/30/22

     1,010,000        959,500   

Cengage Learning Acquisitions, Inc.
11.500%, 04/15/20 (144A)

     1,445,000        1,062,075   

Cequel Communications Holdings I LLC / Cequel Capital Corp.
5.125%, 12/15/21 (144A) (a)

     1,200,000        1,128,000   

Clear Channel Communications, Inc.
9.000%, 12/15/19 (144A)

     1,020,000        989,400   

9.000%, 03/01/21

     1,899,000        1,804,050   

Clear Channel Worldwide Holdings, Inc.
6.500%, 11/15/22 (144A) (a)

     2,960,000        3,042,765   

7.625%, 03/15/20

     1,460,000        1,511,100   

DISH DBS Corp.
4.250%, 04/01/18 (144A)

     1,725,000        1,690,500   

5.125%, 05/01/20 (144A)

     1,119,000        1,096,620   

5.875%, 07/15/22

     3,375,000        3,425,625   

Harron Communications L.P. / Harron Finance Corp.
9.125%, 04/01/20 (144A)

     990,000        1,069,200   

McClatchy Co. (The)
9.000%, 12/15/22 (144A)

     870,000        913,500   

MPL 2 Acquisition Canco, Inc.
9.875%, 08/15/18 (144A)

     1,151,000        1,142,367   

Nara Cable Funding, Ltd.
8.875%, 12/01/18 (EUR)

     270,000        366,382   

8.875%, 12/01/18 (144A)

     400,000        410,000   

NBCUniversal Enterprise, Inc.
5.250%, 12/19/49 (144A)

     255,000        255,000   

Nielsen Finance LLC / Nielsen Finance Co.
7.750%, 10/15/18

     1,592,000        1,711,400   

ProQuest LLC / ProQuest Notes Co.
9.000%, 10/15/18 (144A)

     572,000        572,000   

Sirius XM Radio, Inc.
4.250%, 05/15/20 (144A) (a)

     969,000        910,860   

4.625%, 05/15/23 (144A) (a)

     475,000        439,375   

Sterling Entertainment Enterprises LLC
9.750%, 12/15/19 (144A) (b) (j)

     2,750,000        2,750,000   

Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH
5.500%, 01/15/23 (144A)

     960,000        907,200   

5.625%, 04/15/23 (EUR)

     104,000        130,295   

7.500%, 03/15/19 (EUR)

     1,168,000        1,614,207   

Media—(Continued)

    

Unitymedia Kabel BW GmbH
9.500%, 03/15/21 (EUR)

     1,029,000      $ 1,486,731   

Univision Communications, Inc.
5.125%, 05/15/23 (144A) (a)

     1,500,000        1,417,500   

6.750%, 09/15/22 (144A)

     890,000        934,500   

8.500%, 05/15/21 (144A) (a)

     819,000        870,188   
   

 

 

  
      38,768,960   
   

 

 

  

Metal Fabricate/Hardware—0.2%

    

Eco-Bat Finance plc
7.750%, 02/15/17 (EUR)

     1,139,000        1,497,405   
   

 

 

  

Mining—2.3%

    

FMG Resources (August 2006) Pty, Ltd.
6.000%, 04/01/17 (144A) (d)

     2,963,000        2,881,517   

6.375%, 02/01/16 (144A) (a)

     754,200        753,257   

6.875%, 02/01/18 (144A) (a)

     2,200,000        2,172,500   

Global Brass and Copper, Inc.
9.500%, 06/01/19 (144A)

     925,000        989,750   

Kaiser Aluminum Corp.
8.250%, 06/01/20

     690,000        764,175   

New Gold, Inc.
6.250%, 11/15/22 (144A)

     935,000        895,263   

7.000%, 04/15/20 (144A) (a)

     465,000        469,650   

Novelis, Inc.
8.375%, 12/15/17 (a)

     2,030,000        2,151,800   

8.750%, 12/15/20 (d)

     5,201,000        5,578,072   

Taseko Mines, Ltd.
7.750%, 04/15/19

     1,133,000        1,118,838   
   

 

 

  
      17,774,822   
   

 

 

  

Miscellaneous Manufacturing—0.6%

    

Bombardier, Inc.
4.250%, 01/15/16 (144A) (a)

     1,182,000        1,208,595   

GCL Holdings SCA
9.375%, 04/15/18 (144A) (EUR)

     943,000        1,307,240   

SPX Corp.
6.875%, 09/01/17

     495,000        534,600   

Trinseo Materials Operating SCA / Trinseo Materials Finance, Inc.
8.750%, 02/01/19 (144A) (a)

     1,343,000        1,282,565   
   

 

 

  
      4,333,000   
   

 

 

  

Oil & Gas—7.6%

    

Athlon Holdings LP / Athlon Finance Corp.
7.375%, 04/15/21 (144A)

     539,000        532,262   

Atwood Oceanics, Inc.
6.500%, 02/01/20

     1,425,000        1,478,437   

Aurora USA Oil & Gas, Inc.
7.500%, 04/01/20 (144A)

     316,000        309,680   

9.875%, 02/15/17 (144A)

     1,448,000        1,505,920   

Carrizo Oil & Gas, Inc.
7.500%, 09/15/20 (a)

     1,304,000        1,356,160   

8.625%, 10/15/18

     715,000        765,050   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

    

Chaparral Energy, Inc.
7.625%, 11/15/22

     685,000      $ 698,700   

Chesapeake Energy Corp.
5.750%, 03/15/23

     1,720,000        1,741,500   

6.125%, 02/15/21 (a)

     811,000        851,550   

6.875%, 11/15/20

     945,000        1,025,325   

7.250%, 12/15/18 (a)

     720,000        802,800   

Concho Resources, Inc.
5.500%, 10/01/22

     1,169,000        1,157,310   

5.500%, 04/01/23

     275,000        270,875   

6.500%, 01/15/22 (a)

     970,000        1,025,775   

Continental Resources, Inc.
4.500%, 04/15/23 (144A)

     404,000        392,890   

7.125%, 04/01/21

     675,000        742,500   

CrownRock L.P. / CrownRock Finance, Inc.
7.125%, 04/15/21 (144A)

     1,121,000        1,098,580   

CVR Refining LLC / Coffeyville Finance, Inc.
6.500%, 11/01/22 (144A)

     321,000        314,580   

Denbury Resources, Inc.
4.625%, 07/15/23

     2,128,000        1,963,080   

Drill Rigs Holdings, Inc.
6.500%, 10/01/17 (144A)

     891,000        888,772   

Energy XXI Gulf Coast, Inc.
7.750%, 06/15/19

     2,450,000        2,523,500   

9.250%, 12/15/17

     750,000        823,125   

EP Energy LLC / EP Energy Finance, Inc.
9.375%, 05/01/20

     650,000        734,500   

EP Energy LLC / Everest Acquisition Finance, Inc.
6.875%, 05/01/19

     1,135,000        1,214,450   

Halcon Resources Corp.
8.875%, 05/15/21

     528,000        512,160   

9.750%, 07/15/20

     235,000        234,413   

Hilcorp Energy I L.P. / Hilcorp Finance Co.
7.625%, 04/15/21 (144A) (a)

     750,000        795,000   

8.000%, 02/15/20 (144A)

     245,000        263,375   

Kodiak Oil & Gas Corp.
8.125%, 12/01/19

     1,211,000        1,313,935   

Laredo Petroleum, Inc.
7.375%, 05/01/22

     965,000        1,013,250   

9.500%, 02/15/19

     885,000        973,500   

Legacy Reserves L.P. / Legacy Reserves Finance Corp.
6.625%, 12/01/21 (144A) (a)

     431,000        414,838   

Linn Energy LLC / Linn Energy Finance Corp.
6.250%, 11/01/19 (144A)

     2,086,000        1,986,915   

7.750%, 02/01/21

     270,000        270,675   

8.625%, 04/15/20

     1,000,000        1,050,000   

MEG Energy Corp.
6.375%, 01/30/23 (144A)

     677,000        656,690   

6.500%, 03/15/21 (144A)

     2,257,000        2,237,251   

Memorial Production Partners LP / Memorial Production Finance Corp.
7.625%, 05/01/21 (144A)

     559,000        550,615   

Newfield Exploration Co.
5.625%, 07/01/24

     149,000        144,530   

6.875%, 02/01/20

     545,000        561,350   

Oil & Gas—(Continued)

    

Northern Oil and Gas, Inc.
8.000%, 06/01/20 (a)

     902,000      $ 911,020   

Oasis Petroleum, Inc.
6.500%, 11/01/21

     835,000        855,875   

6.875%, 01/15/23

     480,000        494,400   

7.250%, 02/01/19

     315,000        328,388   

Offshore Group Investment, Ltd.
7.125%, 04/01/23 (144A)

     469,000        460,793   

Pacific Drilling S.A.
5.375%, 06/01/20 (144A)

     1,150,000        1,075,250   

PBF Holding Co. LLC / PBF Finance Corp.
8.250%, 02/15/20

     1,405,000        1,471,737   

Penn Virginia Corp.
8.500%, 05/01/20 (144A) (a)

     616,000        597,520   

Plains Exploration & Production Co.
7.625%, 04/01/20

     205,000        226,575   

Precision Drilling Corp.
6.500%, 12/15/21

     100,000        101,250   

6.625%, 11/15/20

     235,000        238,525   

QEP Resources, Inc.
5.250%, 05/01/23 (a)

     323,000        314,925   

5.375%, 10/01/22

     411,000        406,890   

6.875%, 03/01/21

     470,000        506,425   

Range Resources Corp.
5.000%, 08/15/22

     724,000        707,710   

5.000%, 03/15/23 (a)

     515,000        503,412   

5.750%, 06/01/21

     319,000        328,570   

6.750%, 08/01/20

     2,278,000        2,443,155   

8.000%, 05/15/19

     955,000        1,017,075   

Rosetta Resources, Inc.
5.625%, 05/01/21

     756,000        738,045   

SandRidge Energy, Inc.
7.500%, 02/15/23 (a)

     1,165,000        1,106,750   

8.750%, 01/15/20 (a)

     68,000        69,360   

Seadrill, Ltd.
5.625%, 09/15/17 (144A)

     1,957,000        1,927,645   

Seven Generations Energy, Ltd.
8.250%, 05/15/20 (144A)

     281,000        279,595   

SM Energy Co.
5.000%, 01/15/24 (144A)

     1,097,000        1,047,635   

6.500%, 11/15/21

     800,000        840,000   

6.500%, 01/01/23

     298,000        312,900   

6.625%, 02/15/19

     802,000        840,095   

Summit Midstream Holdings LLC / Summit Midstream Finance Corp.
7.500%, 07/01/21 (144A)

     776,000        787,640   

Vanguard Natural Resources LLC / VNR Finance Corp.
7.875%, 04/01/20

     830,000        850,750   

Western Refining, Inc.
6.250%, 04/01/21 (144A)

     532,000        520,030   

Whiting Petroleum Corp.
6.500%, 10/01/18 (a)

     315,000        333,113   
   

 

 

  
      59,838,871   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas Services—1.1%

    

Bonanza Creek Energy, Inc.
6.750%, 04/15/21

     280,000      $ 280,000   

Calfrac Holdings L.P.
7.500%, 12/01/20 (144A)

     171,000        169,290   

Cie Generale de Geophysique - Veritas
6.500%, 06/01/21

     1,410,000        1,424,100   

7.750%, 05/15/17

     619,000        628,285   

FTS International Services LLC / FTS International Bonds, Inc.
8.125%, 11/15/18 (144A)

     1,451,000        1,505,412   

Hornbeck Offshore Services, Inc.
5.875%, 04/01/20

     965,000        969,825   

Key Energy Services, Inc.
6.750%, 03/01/21 (a)

     375,000        360,000   

Oil States International, Inc.
5.125%, 01/15/23 (144A) (a)

     197,000        206,358   

6.500%, 06/01/19 (a)

     1,986,000        2,055,510   

Petroleum Geo-Services ASA
7.375%, 12/15/18 (144A)

     1,050,000        1,141,875   
   

 

 

  
      8,740,655   
   

 

 

  

Packaging & Containers—1.9%

    

Ardagh Packaging Finance plc
7.000%, 11/15/20 (144A) (a)

     2,349,000        2,263,849   

9.250%, 10/15/20 (144A) (EUR)

     483,000        658,560   

Ardagh Packaging Finance plc / Ardagh MP Holdings USA, Inc.
4.875%, 11/15/22 (144A)

     836,000        781,660   

5.000%, 11/15/22 (EUR)

     760,000        939,593   

7.375%, 10/15/17 (EUR)

     294,000        400,862   

9.125%, 10/15/20 (144A)

     224,000        238,840   

Ball Corp.
6.750%, 09/15/20 (a)

     540,000        581,850   

Berry Plastics Corp.
9.750%, 01/15/21

     420,000        474,600   

Beverage Packaging Holdings Luxembourg II S.A.
8.000%, 12/15/16 (EUR)

     3,157,000        4,080,542   

Crown Americas LLC / Crown Americas Capital Corp. III
6.250%, 02/01/21

     271,000        287,260   

Graphic Packaging International, Inc.
4.750%, 04/15/21

     739,000        714,982   

Greif Luxembourg Finance SCA
7.375%, 07/15/21 (144A) (EUR)

     330,000        481,090   

OI European Group B.V.
4.875%, 03/31/21 (EUR)

     936,000        1,203,480   

Pactiv LLC
7.950%, 12/15/25

     1,186,000        1,055,540   

Tekni-Plex, Inc.
9.750%, 06/01/19 (144A)

     852,000        905,250   
   

 

 

  
      15,067,958   
   

 

 

  

Pharmaceuticals—1.3%

    

Capsugel FinanceCo SCA
9.875%, 08/01/19 (EUR)

     195,000      $ 280,727   

9.875%, 08/01/19 (144A) (EUR)

     500,000        719,812   

Omnicare, Inc.
7.750%, 06/01/20

     1,895,000        2,075,025   

Sky Growth Acquisition Corp.
7.375%, 10/15/20 (144A)

     1,336,000        1,369,400   

Valeant Pharmaceuticals International, Inc.
6.375%, 10/15/20 (144A)

     848,000        838,460   

6.750%, 08/15/21 (144A) (a)

     850,000        851,062   

7.250%, 07/15/22 (144A)

     330,000        334,950   

VPII Escrow Corp.
6.750%, 08/15/18 (144A)

     3,504,000        3,591,600   
   

 

 

  
      10,061,036   
   

 

 

  

Pipelines—1.7%

    

Access Midstream Partners L.P. / ACMP Finance Corp.
4.875%, 05/15/23

     1,398,000        1,296,645   

5.875%, 04/15/21

     1,106,000        1,122,590   

6.125%, 07/15/22

     1,077,000        1,090,462   

Atlas Pipeline Partners, L.P.
5.875%, 08/01/23 (144A) (a)

     1,052,000        999,400   

Crosstex Energy L.P. / Crosstex Energy Finance Corp.
8.875%, 02/15/18

     470,000        498,200   

El Paso Corp.
6.700%, 02/15/27

     62,930        63,481   

Genesis Energy L.P. / Genesis Energy Finance Corp.
5.750%, 02/15/21 (144A)

     166,000        161,850   

Holly Energy Partners LP / Holly Energy Finance Corp.
6.500%, 03/01/20

     480,000        483,600   

MarkWest Energy Partners L.P. / MarkWest Energy Finance Corp.
4.500%, 07/15/23 (a)

     1,200,000        1,098,000   

5.500%, 02/15/23

     352,000        346,720   

6.250%, 06/15/22

     996,000        1,025,880   

Regency Energy Partners L.P. / Regency Energy Finance Corp.
4.500%, 11/01/23 (144A)

     1,084,000        981,020   

6.875%, 12/01/18 (a)

     125,000        131,563   

Sabine Pass Liquefaction LLC
5.625%, 02/01/21 (144A)

     2,692,000        2,611,240   

5.625%, 04/15/23 (144A)

     1,101,000        1,040,445   

Tesoro Logistics L.P. / Tesoro Logistics Finance Corp.
5.875%, 10/01/20 (144A) (a)

     344,000        338,840   
   

 

 

  
      13,289,936   
   

 

 

  

Real Estate—1.7%

    

Annington Finance No. 5 plc
13.000%, 01/15/23 (GBP) (f)

     400,000        730,056   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Real Estate—(Continued)

    

Crescent Resources LLC / Crescent Ventures, Inc.
10.250%, 08/15/17 (144A)

     1,850,000      $ 1,905,500   

Realogy Group LLC
7.625%, 01/15/20 (144A) (d)

     4,000,000        4,330,000   

7.875%, 02/15/19 (144A) (a)

     1,560,000        1,645,800   

9.000%, 01/15/20 (144A)

     1,445,000        1,611,175   

Realogy Group LLC / Sunshine Group Florida, Ltd. (The)
3.375%, 05/01/16 (144A) (a)

     1,919,000        1,875,822   

RPG Byty Sro
6.750%, 05/01/20 (EUR)

     755,000        904,126   

Tropicana Entertainment LLC / Tropicana Finance Corp.
9.625%, 12/15/14 (b) (c) (h)

     70,000        0   
   

 

 

  
      13,002,479   
   

 

 

  

Retail—2.2%

    

Asbury Automotive Group, Inc.
8.375%, 11/15/20

     605,000        670,038   

8.375%, 11/15/20 (144A)

     419,000        464,043   

Claire’s Stores, Inc.
7.750%, 06/01/20 (144A)

     652,000        630,810   

9.000%, 03/15/19 (144A) (a)

     1,243,000        1,367,300   

CST Brands, Inc.
5.000%, 05/01/23 (144A)

     529,000        515,775   

Dufry Finance SCA
5.500%, 10/15/20 (144A)

     346,000        346,914   

Enterprise Inns plc
6.500%, 12/06/18 (GBP)

     965,000        1,437,657   

House of Fraser Funding plc
8.875%, 08/15/18 (144A) (GBP)

     780,000        1,230,532   

8.875%, 08/15/18 (GBP)

     718,000        1,132,720   

J. Crew Group, Inc.
8.125%, 03/01/19

     600,000        630,000   

Michaels Stores, Inc.
7.750%, 11/01/18

     585,000        625,950   

New Academy Finance Co. LLC / New Academy Finance Corp.
8.000%, 06/15/18 (144A) (f)

     513,000        525,825   

Party City Holdings, Inc.
8.875%, 08/01/20 (144A) (a)

     1,912,000        2,050,620   

Penske Automotive Group, Inc.
5.750%, 10/01/22

     1,040,000        1,060,800   

PVH Corp.
7.375%, 05/15/20 (a)

     696,000        755,160   

7.750%, 11/15/23

     650,000        749,876   

Rite Aid Corp.
6.750%, 06/15/21 (144A)

     704,000        691,680   

9.250%, 03/15/20 (a)

     830,000        916,113   

Sally Holdings LLC / Sally Capital, Inc.
5.750%, 06/01/22

     813,000        825,195   

6.875%, 11/15/19

     700,000        750,750   

Sonic Automotive, Inc.
5.000%, 05/15/23 (144A)

     227,000        220,190   
   

 

 

  
      17,597,948   
   

 

 

  

Semiconductors—0.3%

  

NXP B.V. / NXP Funding LLC
3.750%, 06/01/18 (144A)

     1,210,000      $ 1,185,800   

5.750%, 02/15/21 (144A) (a)

     920,000        931,500   
   

 

 

  
      2,117,300   
   

 

 

  

Shipbuilding—0.2%

  

Huntington Ingalls Industries, Inc.
6.875%, 03/15/18

     555,000        593,156   

7.125%, 03/15/21

     935,000        1,005,125   
   

 

 

  
      1,598,281   
   

 

 

  

Software—3.0%

  

Epicor Software Corp.
8.625%, 05/01/19

     1,118,000        1,145,950   

First Data Corp.
6.750%, 11/01/20 (144A) (a)

     3,956,000        4,025,230   

7.375%, 06/15/19 (144A) (d)

     4,419,000        4,540,522   

10.625%, 06/15/21 (144A)

     1,982,000        1,957,225   

11.250%, 01/15/21 (144A)

     60,000        59,850   

11.750%, 08/15/21 (144A)

     1,117,000        1,005,300   

IMS Health, Inc.
6.000%, 11/01/20 (144A)

     502,000        510,785   

12.500%, 03/01/18 (144A) (d)

     3,537,000        4,111,762   

Infor US, Inc.
9.375%, 04/01/19

     2,598,000        2,815,583   

Interface Security Systems Holdings, Inc. / Interface Security Systems LLC
9.250%, 01/15/18 (144A)

     491,000        500,820   

Nuance Communications, Inc.
5.375%, 08/15/20 (144A)

     1,725,000        1,686,188   

Sophia L.P. / Sophia Finance, Inc.
9.750%, 01/15/19 (144A)

     989,000        1,058,230   
   

 

 

  
      23,417,445   
   

 

 

  

Storage/Warehousing—0.3%

  

Algeco Scotsman Global Finance plc
9.000%, 10/15/18 (EUR)

     1,092,000        1,432,346   

Mobile Mini, Inc.
7.875%, 12/01/20

     840,000        903,000   
   

 

 

  
      2,335,346   
   

 

 

  

Telecommunications—7.9%

  

Alcatel-Lucent USA, Inc.
6.450%, 03/15/29

     583,000        441,623   

6.500%, 01/15/28

     185,000        138,750   

Avaya, Inc.
7.000%, 04/01/19 (144A) (a)

     885,000        798,713   

10.500%, 03/01/21 (144A) (a)

     1,797,000        1,361,227   

Broadview Networks Holdings, Inc.
10.500%, 11/15/17

     814,500        810,428   

CenturyLink, Inc.
5.625%, 04/01/20 (a)

     1,804,000        1,822,040   

CommScope Holding Co., Inc.
6.625%, 06/01/20 (144A) (f)

     1,355,000        1,294,025   

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Telecommunications—(Continued)

  

Consolidated Communications Finance Co.
10.875%, 06/01/20

     725,000      $ 819,250   

Cricket Communications, Inc.
7.750%, 10/15/20 (a)

     1,166,000        1,119,360   

Crown Castle International Corp.
5.250%, 01/15/23

     1,835,000        1,761,600   

Digicel Group, Ltd.
8.250%, 09/30/20 (144A) (a)

     1,196,000        1,237,860   

Digicel, Ltd.
6.000%, 04/15/21 (144A) (d)

     3,897,000        3,682,665   

DigitalGlobe, Inc.
5.250%, 02/01/21 (144A)

     1,008,000        967,680   

Intelsat Jackson Holdings S.A.
5.500%, 08/01/23 (144A)

     3,987,000        3,747,780   

Intelsat Luxembourg S.A.
6.750%, 06/01/18 (144A)

     1,925,000        1,939,437   

Level 3 Communications, Inc.
8.875%, 06/01/19 (a)

     980,000        1,019,200   

Level 3 Financing, Inc.
7.000%, 06/01/20 (a)

     1,242,000        1,238,895   

8.125%, 07/01/19 (d)

     2,970,000        3,118,500   

8.625%, 07/15/20

     810,000        862,650   

Lynx I Corp.
6.000%, 04/15/21 (GBP)

     3,683,000        5,554,267   

Lynx II Corp.
6.375%, 04/15/23 (144A) (a)

     232,000        233,740   

7.000%, 04/15/23 (GBP)

     513,000        776,346   

MetroPCS Wireless, Inc.
6.625%, 11/15/20

     1,280,000        1,328,000   

NII Capital Corp.
7.625%, 04/01/21

     958,000        744,845   

Phones4u Finance plc
9.500%, 04/01/18 (144A) (GBP)

     965,000        1,497,071   

9.500%, 04/01/18 (GBP)

     530,000        822,225   

Softbank Corp.
4.500%, 04/15/20 (144A)

     2,235,000        2,153,981   

Sprint Capital Corp.
6.875%, 11/15/28

     1,686,000        1,618,560   

Sprint Nextel Corp.
7.000%, 03/01/20 (144A) (d)

     3,215,000        3,472,200   

9.000%, 11/15/18 (144A)

     5,130,000        6,002,100   

Telenet Finance V Luxembourg SCA
6.250%, 08/15/22 (EUR)

     910,000        1,190,423   

6.750%, 08/15/24 (EUR)

     1,213,000        1,599,269   

tw telecom holdings, Inc.
5.375%, 10/01/22

     940,000        932,950   

UPCB Finance II, Ltd.
6.375%, 07/01/20 (144A) (EUR)

     2,103,000        2,788,694   

6.375%, 07/01/20 (EUR)

     620,000        822,154   

Windstream Corp.
6.375%, 08/01/23 (a)

     701,000        655,435   

7.750%, 10/15/20

     459,000        475,065   

7.875%, 11/01/17

     555,000        609,113   
   

 

 

  
      61,458,121   
   

 

 

  

Textiles—0.1%

  

SIWF Merger Sub, Inc. / Springs Industries, Inc.
6.250%, 06/01/21 (144A) (a)

     1,103,000      $ 1,080,940   
   

 

 

  

Transportation—0.6%

  

Gategroup Finance Luxembourg S.A.
6.750%, 03/01/19 (EUR)

     1,225,000        1,578,575   

Gulfmark Offshore, Inc.
6.375%, 03/15/22 (a)

     480,000        476,400   

Jack Cooper Holdings Corp.
9.250%, 06/01/20 (144A) (a)

     2,080,000        2,080,000   

Watco Cos. LLC / Watco Finance Corp.
6.375%, 04/01/23 (144A)

     467,000        464,665   
   

 

 

  
      4,599,640   
   

 

 

  

Trucking & Leasing—0.1%

  

Aviation Capital Group Corp.
6.750%, 04/06/21 (144A)

     1,070,000        1,126,879   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $630,592,354)

       626,977,399   
   

 

 

  
Floating Rate Loans (i)—16.4%   

Aerospace/Defense—0.3%

  

Sequa Corp.
Term Loan
5.250%, 06/19/17

     1,760,975        1,768,310   

Silver II US Holdings LLC
Term Loan
4.000%, 12/13/19

     292,059        290,324   
   

 

 

  
      2,058,634   
   

 

 

  

Airlines—0.3%

  

Northwest Airlines, Inc.
Term Loan
1.679%, 09/10/18

     1,500,583        1,328,091   

2.299%, 03/10/17

     1,189,334        1,100,788   
   

 

 

  
      2,428,879   
   

 

 

  

Auto Parts & Equipment—0.6%

  

Federal-Mogul Corp.
Term Loan
2.128%, 12/29/14

     2,118,579        2,030,054   

2.128%, 12/28/15

     1,334,182        1,278,433   

Schaeffler AG
Term Loan
4.250%, 01/27/17

     1,780,000        1,785,340   
   

 

 

  
      5,093,827   
   

 

 

  

Capital Markets—0.1%

  

Knight Capital Group, Inc.
Term Loan
0.000%, 11/10/17 (k)

     1,010,000        998,638   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (i)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Chemicals—0.7%

  

Ascend Performance Materials LLC
Term Loan
6.750%, 04/10/18

     3,377,250      $ 3,379,378   

Ineos U.S. Finance LLC
Term Loan
4.000%, 05/04/18

     1,238,106        1,215,089   

MacDermid, Inc.
Second Lien Term Loan
0.000%, 12/07/20 (k)

     340,000        344,675   

Oxea S.A.R.L.
Second Lien Term Loan

    

0.000%, 05/22/20 (k)

     560,000        560,000   
   

 

 

  
      5,499,142   
   

 

 

  

Commercial Services—0.4%

  

Catalent Pharma Solutions, Inc.
Term Loan

    

6.500%, 12/29/17

     730,000        726,810   

Interactive Data Corp.
Term Loan

    

3.750%, 02/11/18

     1,241,864        1,237,722   

ServiceMaster Co.
Term Loan

    

4.250%, 01/31/17

     1,502,450        1,486,802   
   

 

 

  
      3,451,334   
   

 

 

  

Distribution/Wholesale—0.3%

  

HD Supply, Inc.
Term Loan

    

4.500%, 10/12/17

     2,627,527        2,629,170   
   

 

 

  

Diversified Financial Services—0.7%

  

American Capital Holdings, Inc.
Term Loan

    

5.500%, 08/22/16

     2,905,000        2,920,745   

Nuveen Investments, Inc.
Term Loan

    

4.195%, 05/13/17

     373,141        371,160   

Ocwen Financial Corp.
Term Loan

    

5.000%, 02/15/18

     1,985,025        2,000,746   
   

 

 

  
      5,292,651   
   

 

 

  

Diversified Telecommunication Services—0.4%

  

Zayo Group LLC
Term Loan

    

4.500%, 07/02/19

     3,264,993        3,267,703   
   

 

 

  

Food—0.1%

  

Advance Pierre Foods, Inc.
Term Loan

    

5.750%, 07/10/17

     673,313        677,100   
   

 

 

  

Forest Products & Paper—0.2%

  

Wilsonart International Holdings LLC
Term Loan

    

4.000%, 10/31/19

     1,313,400        1,306,557   
   

 

 

  

Healthcare - Products—0.2%

  

Bausch & Lomb, Inc.
Term Loan

    

4.000%, 05/17/19

     1,465,228      $ 1,465,228   
   

 

 

  

Healthcare - Services—0.3%

  

LHP Hospital Group, Inc.
Term Loan

    

9.000%, 07/03/18

     843,625        860,497   

Truven Health Analytics, Inc.
Term Loan

    

4.500%, 06/01/19

     1,133,571        1,132,869   
   

 

 

  
      1,993,366   
   

 

 

  

Household Products/Wares—0.1%

  

Spin Holdco, Inc.
Term Loan

    

4.250%, 11/14/19

     730,000        728,405   
   

 

 

  

Insurance—0.1%

  

Alliant Holdings I, Inc.
Term Loan

    

5.000%, 12/20/19

     1,024,850        1,026,772   
   

 

 

  

Leisure Time—0.0%

  

Travelport LLC

    

Second Lien Term Loan

    

9.500%, 01/29/16

     76,597        78,704   

Term Loan

    

8.375%, 12/01/16

     151,648        151,117   
   

 

 

  
      229,821   
   

 

 

  

Lodging—5.2%

  

Harrah’s Property Co.
Mezzanine Term Loan

    

3.690%, 02/13/14

     22,278,802        20,449,427   

Hilton Hotel Corp.
Term Loan

    

4.693%, 11/12/15

     18,171,541        17,898,967   

MGM Resorts International
Mezzanine Term Loan

    

3.500%, 12/20/19

     643,782        640,966   

Station Casinos, Inc.
Term Loan

    

5.000%, 03/01/20

     1,642,163        1,644,215   
   

 

 

  
      40,633,575   
   

 

 

  

Media—0.9%

  

Cengage Learning Acquisitions, Inc.
Term Loan

    

2.700%, 07/03/14

     295,300        221,230   

Clear Channel Communications, Inc.
Term Loan

    

3.845%, 01/29/16

     920,024        839,166   

6.945%, 01/30/19

     2,852,747        2,605,499   

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (i)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—(Continued)

  

EMI Music Publishing, Ltd.
Term Loan

    

4.250%, 06/29/18

     701,663      $ 703,418   

HEMA Holding B.V.
Mezzanine Term Loan

    

8.611%, 07/05/17 (EUR)

     1,805,874        2,158,651   

Weather Channel
Second Lien Term Loan

    

0.000%, 12/11/20 (k)

     610,000        616,100   
   

 

 

  
      7,144,064   
   

 

 

  

Metal Fabricate/Hardware—0.6%

  

Constellium Holdco B.V.
Term Loan

    

6.000%, 03/25/20 (c)

     2,907,713        2,971,319   

Rexnord LLC
Term Loan

    

3.750%, 04/02/18

     1,506,175        1,509,187   
   

 

 

  
      4,480,506   
   

 

 

  

Mining—0.4%

  

FMG America Finance, Inc.
Term Loan

    

5.250%, 10/18/17

     2,905,432        2,892,270   
   

 

 

  

Oil & Gas—1.1%

  

Chesapeake Energy Corp.
Term Loan

    

5.750%, 12/01/17

     3,740,000        3,793,762   

Offshore Group Investments, Ltd.
Term Loan

    

5.750%, 03/22/19

     1,196,229        1,204,201   

6.250%, 10/26/17

     2,694,210        2,693,092   

Samson Investments Co. Second Lien
Term Loan

    

6.000%, 09/25/18

     725,000        725,000   
   

 

 

  
      8,416,055   
   

 

 

  

Packaging & Containers—0.1%

  

Tekni-Plex, Inc.
Term Loan

    

5.500%, 08/25/19 (c)

     760,000        760,000   
   

 

 

  

Pharmaceuticals—0.1%

  

Patheon, Inc.
Term Loan

    

7.250%, 12/06/18

     626,850        633,119   
   

 

 

  

Real Estate—0.2%

  

Realogy Corp.

    

Extended Letter of Credit

    

4.453%, 10/10/16

     279,603        280,512   

Real Estate—(Continued)

    

Realogy Corp.

    

Extended Term Loan

    

4.500%, 03/05/20

     1,516,200      $ 1,521,127   
   

 

 

  
      1,801,639   
   

 

 

  

Retail—0.5%

  

Alliance Boots Holdings, Ltd.
Term Loan

    

3.486%, 07/09/15 (GBP)

     1,170,000        1,768,772   

J C Penney Corp., Inc.
Term Loan

    

6.000%, 05/21/18

     1,840,000        1,845,906   

Rite Aid Corp.
Second Lien Term Loan

    

5.750%, 08/21/20

     350,000        355,688   
   

 

 

  
      3,970,366   
   

 

 

  

Software—0.5%

  

First Data Corp.
Extended Term Loan
4.193%, 03/23/18

     1,925,000        1,881,418   

Kronos, Inc.
Second Lien Term Loan
9.750%, 04/30/20

     1,610,000        1,666,350   
   

 

 

  
      3,547,768   
   

 

 

  

Telecommunications—1.9%

  

Alcatel-Lucent USA, Inc.
Term Loan
7.250%, 01/30/19

     4,780,975        4,835,765   

7.500%, 01/30/19 (EUR)

     825,850        1,081,385   

Avaya, Inc.
Term Loan
8.000%, 03/30/18

     137,029        128,844   

Hawaiian Telcom Communications, Inc.
Term Loan
5.000%, 02/28/17

     638,791        639,749   

Level 3 Financing, Inc.
Term loan
4.750%, 08/01/19

     315,000        315,688   

Virgin Media Investment Holdings, Ltd.
Term Loan
3.500%, 06/05/20

     395,000        391,435   

Vodafone Americas Finance, Inc.
Term Loan
6.250%, 07/11/16 (c)

     3,093,750        3,186,563   

6.875%, 08/11/15 (c)

     4,153,228        4,225,909   
   

 

 

  
      14,805,338   
   

 

 

  

Transportation—0.1%

  

Genesee & Wyoming, Inc.
Term Loan
2.194%, 09/29/17

     844,869        842,756   
   

 

 

  

Total Floating Rate Loans
(Cost $126,152,104)

       128,074,683   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—6.5%

 

Security Description   Shares     Value  

Auto Components—0.3%

  

Delphi Automotive plc

     19,000      $ 963,110   

Goodyear Tire & Rubber Co. (The) (a) (l)

     95,400        1,458,666   

Lear Corp. (a)

     2,395        144,802   
   

 

 

  
      2,566,578   
   

 

 

  

Automobiles—1.3%

  

General Motors Co. (a) (l)

     312,065        10,394,885   
   

 

 

  

Biotechnology—0.0%

  

Ironwood Pharmaceuticals, Inc. (a) (l)

     21,770        216,611   
   

 

 

  

Capital Markets—1.7%

  

American Capital, Ltd. (a) (l)

     1,002,905        12,706,806   

E*Trade Financial Corp. (l)

     50,299        636,785   

Uranium Participation Corp. (l)

     28,400        135,290   
   

 

 

  
      13,478,881   
   

 

 

  

Chemicals—0.3%

  

ADA-ES, Inc. (a) (l)

     5,601        235,914   

Huntsman Corp. (a)

     97,300        1,611,288   

Zemex Minerals Group, Inc. (l)

     87        0   
   

 

 

  
      1,847,202   
   

 

 

  

Commercial Banks—0.3%

  

CIT Group, Inc. (l)

     49,495        2,307,952   
   

 

 

  

Diversified Telecommunication Services—0.2%

  

Broadview Networks Holdings, Inc. (b) (l)

     52,943        333,537   

Level 3 Communications, Inc. (a) (l)

     38,560        812,845   
   

 

 

  
      1,146,382   
   

 

 

  

Forest Products & Paper—0.2%

  

NewPage Corp. (c) (l)

     18,684        1,681,560   
   

 

 

  

Hotels, Restaurants & Leisure—0.2%

  

Caesars Entertainment Corp. (a) (l)

     127,186        1,742,448   
   

 

 

  

Household Durables—0.1%

  

MDC Holdings, Inc. (a)

     9,000        292,590   

Meritage Homes Corp. (l)

     8,800        381,568   

PulteGroup, Inc. (a) (l)

     16,600        314,902   
   

 

 

  
      989,060   
   

 

 

  

Insurance—0.5%

  

American International Group, Inc. (l)

     92,178        4,120,357   
   

 

 

  

Machinery—0.1%

  

Stanley-Martin Communities LLC (b) (c) (l)

     450        561,600   
   

 

 

  

Media—0.4%

  

Cablevision Systems Corp. - Class A (a)

     114,025        1,917,901   

Clear Channel Outdoor Holdings, Inc. -Class A (a) (l)

     31,744        236,810   

HMH Publishing Co., Ltd. (c) (l)

     26,518        710,686   

Media—(Continued)

  

Loral Space & Communications, Inc. (a)

     6,666      $ 399,827   
   

 

 

  
      3,265,224   
   

 

 

  

Metals & Mining—0.1%

  

African Minerals, Ltd. (l)

     159,753        457,610   
   

 

 

  

Paper & Forest Products—0.0%

  

Ainsworth Lumber Co., Ltd. (l)

     53,942        164,129   

Ainsworth Lumber Co., Ltd. (144A) (l)

     10,657        32,426   
   

 

 

  
      196,555   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.1%

  

Freescale Semiconductor, Ltd. (a) (l)

     13,401        181,584   

Spansion, Inc. - Class A (a) (l)

     34,258        428,910   
   

 

 

  
      610,494   
   

 

 

  

Software—0.0%

  

Bankruptcy Management Solution, Inc. (b) (c) (l)

     796        0   
   

 

 

  

Trading Companies & Distributors—0.1%

  

HD Supply Holdings, Inc. (l)

     51,900        975,201   
   

 

 

  

Wireless Telecommunication Services—0.6%

  

Crown Castle International Corp. (l)

     28,902        2,092,216   

SBA Communications Corp. - Class A (a) (l)

     28,902        2,142,216   
   

 

 

  
      4,234,432   
   

 

 

  

Total Common Stocks
(Cost $52,036,915)

       50,793,032   
   

 

 

  
Preferred Stocks—1.6%   

Commercial Banks—1.5%

  

GMAC Capital Trust I, 8.125%

     461,310        12,017,126   
   

 

 

  

Diversified Financial Services—0.0%

  

Marsico Parent Superholdco LLC (144A) (b) (l)

     25        0   
   

 

 

  

Internet Software & Services—0.1%

  

Travelport Holdings, Ltd. (l)

     388,121        311,273   
   

 

 

  

Total Preferred Stocks
(Cost $11,385,120)

       12,328,399   
   

 

 

  
Convertible Preferred Stock—1.1%   

Auto Components—1.1%

  

Dana Holding Corp.
4.000%, 12/31/49 (144A)
(Cost $7,721,070)

     53,890        8,740,284   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Convertible Bonds—0.9%

 

Security Description  

Shares/

Principal
Amount*

     Value  

Coal—0.2%

  

Alpha Appalachia Holdings, Inc.
3.250%, 08/01/15 (a)

     1,162,000      $ 1,051,610   

Peabody Energy Corp.
4.750%, 12/15/66 (a)

     1,396,000        969,348   
   

 

 

  
      2,020,958   
   

 

 

  

Computers—0.3%

  

EMC Corp.
1.750%, 12/01/13

     621,000        917,527   

SanDisk Corp.
1.500%, 08/15/17

     848,000        1,130,490   
   

 

 

  
      2,048,017   
   

 

 

  

Diversified Financial Services—0.0%

  

E*Trade Financial Corp.
Zero Coupon, 08/31/19 (144A)

     76,000        93,433   

Zero Coupon, 08/31/19

     11,000        13,523   
   

 

 

  
      106,956   
   

 

 

  

Insurance—0.2%

  

MGIC Investment Corp.
2.000%, 04/01/20 (a)

     143,000        161,948   

Radian Group, Inc.
2.250%, 03/01/19

     1,143,000        1,458,039   

3.000%, 11/15/17

     169,000        211,250   
   

 

 

  
      1,831,237   
   

 

 

  

Pharmaceuticals—0.2%

  

Omnicare, Inc.
3.750%, 04/01/42

     1,000,000        1,241,249   
   

 

 

  

Total Convertible Bonds
(Cost $7,477,433)

       7,248,417   
   

 

 

  
Warrants—0.0%   

Containers & Packaging—0.0%

  

Smurfit Kappa Group plc, Strike Price $0.01, Expires 10/01/13 (c) (l)

     100        8,670   
   

 

 

  

Media—0.0%

  

HMH Publishing Co., Ltd.,
Expires 06/12/19 (c) (l)

     1,601        0   
   

 

 

  

Software—0.0%

  

Bankruptcy Management Solution, Inc.,
Expires 09/29/17 (c) (l)

     531        0   
   

 

 

  

Total Warrants
(Cost $21)

       8,670   
   

 

 

  
Short-Term Investment—13.0%   
Security Description       
    
Shares		     Value  

Mutual Fund—13.0%

  

State Street Navigator Securities Lending MET Portfolio (m)

     101,561,428      $ 101,561,428   
   

 

 

  

Total Short-Term Investment
(Cost $101,561,428)

       101,561,428   
   

 

 

  

Total Investments—119.7%
(Cost $936,926,445) (n)

       935,732,312   

Other assets and liabilities (net)—(19.7)%

       (153,807,615 ) 
   

 

 

  
Net Assets—100.0%     $ 781,924,697   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $97,437,134 and the collateral received consisted of cash in the amount of $101,561,428 and non-cash collateral with a value of $877,500. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b) Security was valued in good faith under procedures approved by the Board of Trustees. As of June 30, 2013, these securities represent 0.8% of net assets.
(c) Illiquid security. As of June 30, 2013, these securities represent 2.4% of net assets.
(d) All or a portion of the security was pledged as collateral against open reverse repurchase agreements. As of June 30, 2013, the value of securities pledged amounted to $93,128,328.
(e) All or a portion of the security was pledged as collateral against open swap contracts and open forward foreign currency exchange contracts. As of June 30, 2013, the market value of securities pledged was $1,730,558.
(f) Payment-in-kind security for which part of the income earned may be paid as additional principal.
(g) Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.
(h) Security is in default and/or issuer is in bankruptcy.
(i) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(j) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of June 30, 2013, the market value of restricted securities was $2,750,000, which is 0.4% of net assets. See details shown in the Restricted Securities table that follows.
(k) This loan will settle after June 30, 2013, at which time the interest rate will be determined.
(l) Non-income producing security.
(m) Represents investment of cash collateral received from securities lending transactions.

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

(n) As of June 30, 2013, the aggregate cost of investments was $936,926,445. The aggregate unrealized appreciation and depreciation of investments were $20,239,043 and $(21,433,176), respectively, resulting in net unrealized depreciation of $(1,194,133).
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $264,685,651, which is 33.9% of net assets.
(EUR)— Euro
(GBP)— British Pound

 

Restricted Securities

      Acquisition
Date		        Principal
Amount		        Cost        Value  

Sterling Entertainment Enterprises LLC

        12/28/12         $ 2,750,000         $ 2,750,000         $ 2,750,000   

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

       

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
EUR     200,477         Bank of New York Mellon Corp.        07/23/13         $ 260,778         $ 195   
EUR     646,353         Bank of New York Mellon Corp.        07/23/13           854,665           (13,270 ) 
EUR     2,400,000         Deutsche Bank AG        07/23/13           3,199,807           (75,588 ) 

Contracts to Deliver

                           
EUR     1,315,000         BNP Paribas S.A.        07/23/13         $ 1,733,085         $ 21,273   
EUR     1,562,000         Bank of America N.A.        07/23/13           2,044,641           11,295   
EUR     41,849,000         Barclays Bank plc        07/23/13           54,627,299           150,036   
EUR     1,000,000         Deutsche Bank AG        07/23/13           1,300,694           (1,064 ) 
EUR     70,781         Deutsche Bank AG        07/23/13           92,576           436   
EUR     82,000         Goldman Sachs & Co.        07/23/13           106,801           56   
GBP     18,391,000         Barclays Bank plc        07/17/13           28,155,168           186,233   
GBP     825,000         Citibank N.A.        07/17/13           1,276,021           21,365   
GBP     429,652         Citibank N.A.        07/17/13           657,679           4,266   
GBP     282,000         Citibank N.A.        07/17/13           424,025           (4,839 ) 
GBP     101,000         Citibank N.A.        07/17/13           153,658           58   
GBP     105,000         Credit Suisse International        07/17/13           163,101           3,418   
GBP     494,256         Deutsche Bank AG        07/17/13           767,986           16,324   
GBP     5,986         Deutsche Bank AG        07/17/13           9,245           142   
GBP     294,000         Goldman Sachs & Co.        07/17/13           456,694           9,580   
GBP     380,000         Northern Trust Co.        07/17/13           579,471           1,569   
                     

 

 

  

Net Unrealized Appreciation

  

      $ 331,485   
                     

 

 

  

Futures Contracts

 

Futures Contracts—Short

      Expiration
Date		        Number of
Contracts		        Notional
Amount		        Unrealized
Depreciation		  

S&P 500 E-Mini Index Futures

        09/20/13           (528)         USD   (42,182,270)         $ (39,250)   
                   

 

 

  

Reverse Repurchase Agreements

 

Counterparty

    Interest
Rate		     Settlement
Date		      Maturity
Date		      Principal
Amount		      Net Closing
Amount		  

Deutsche Bank AG

      0.55 %      06/05/2013         Open         USD   2,777,000       $ 2,777,000   

Deutsche Bank AG

      (0.50 %)      06/14/2013         Open         USD   2,874,110         2,874,110   

Deutsche Bank AG

      0.55 %      06/05/2013         Open         USD   3,811,000         3,811,000   

Deutsche Bank AG

      0.55 %      06/05/2013         Open         USD   4,059,000         4,059,000   

Deutsche Bank AG

      0.55 %      06/06/2013         Open         USD   4,516,000         4,516,000   

Deutsche Bank AG

      0.55 %      06/05/2013         Open         USD   4,584,000         4,584,000   

Deutsche Bank AG

      0.55 %      06/05/2013         Open         USD   6,542,000         6,542,000   

Deutsche Bank AG

      0.55 %      06/05/2013         Open         USD   7,168,000         7,168,000   

Deutsche Bank AG

      0.58 %      06/10/2013         Open         USD   8,574,000         8,574,000   

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Reverse Repurchase Agreements—(Continued)

 

Counterparty

    Interest
Rate		     Settlement
Date		      Maturity
Date		      Principal Amount      Net Closing
Amount		  

Deutsche Bank AG

      0.55 %      06/26/2013         Open         USD 10,043,599       $ 10,043,599   

Barclays Bank PLC

      0.60 %      07/01/2013         Open         USD 31,312,322         31,312,322   
             

 

 

  

Total

  

    $ 86,261,031   
             

 

 

  

Securities pledged as collateral against open reverse repurchase agreements are noted in the Schedule of Investments.

Swap Agreements

Credit Default Swaps on corporate issues—Sell Protection (a)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

CCO Holdings LLC/ CCO Holdings Capital Corp.
7.25%, due 10/30/2017

     8.000%        09/20/17      Deutsche Bank AG     2.435%        USD        1,500,000      $ 305,582      $ —      $ 305,582   

Caesars Entertainment Operating Co., Inc.
5.625% due 06/01/2015

     5.000%        09/20/15      Barclays Bank Plc     14.540%        USD        572,099        (109,410 )      (147,315 )      37,905   

Caesars Entertainment Operating Co., Inc.
5.625%, due 06/01/2015

     5.000%        12/20/15      Barclays Bank plc     15.927%        USD        3,793,890        (858,684 )      (1,100,228 )      241,544   

Caesars Entertainment Operating Co., Inc.
5.625% due 06/01/2015

     5.000%        03/20/16      Barclays Bank Plc     16.671%        USD        377,047        (97,483 )      (98,032 )      549   

Caesars Entertainment Operating Co., Inc.
5.625% due 06/01/2015

     5.000%        03/20/16      Barclays Bank Plc     16.671%        USD        436,847        (112,944 )      (100,475 )      (12,469 ) 

Caesars Entertainment Operating Co., Inc.
5.625% due 06/01/2015

     5.000%        03/20/16      Barclays Bank Plc     16.671%        USD        3,000,000        (775,630 )      (810,000 )      34,370   

Caesars Entertainment Operating Co., Inc.
5.625% due 06/01/2015

     5.000%        06/20/16      Barclays Bank Plc     17.280%        USD        640,000        (184,589 )      (144,800 )      (39,789 ) 

Caesars Entertainment Operating Co., Inc.
5.625% due 06/01/2015

     5.000%        03/20/17      Barclays Bank Plc     18.744%        USD        436,847        (160,924 )      (146,344 )      (14,580 ) 

Caesars Entertainment Operating Co., Inc.
5.625% due 06/01/2015

     5.000%        06/20/17      Deutsche Bank AG     19.122%        USD        828,299        (324,270 )      (283,693 )      (40,577 ) 

Smithfield’s Foods, Inc.
7.75% due 07/01/2017

     5.000%        06/20/18      Credit Suisse International     3.133%        USD        464,250        39,417        59,538        (20,121 ) 
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (2,278,935 )    $ (2,771,349 )    $ 492,414   
             

 

 

    

 

 

    

 

 

  

 

(a) If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(b) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
(c) The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(EUR)— Euro
(GBP)— British Pound
(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Corporate Bonds & Notes            

Advertising

    $ —         $ 3,038,695       $ —         $ 3,038,695   

Aerospace/Defense

      —           2,436,244         2,245,264         4,681,508   

Airlines

      —           5,222,670         —           5,222,670   

Apparel

      —           802,741         —           802,741   

Auto Manufacturers

      —           2,918,661         —           2,918,661   

Auto Parts & Equipment

      —           4,810,732         —           4,810,732   

Banks

      —           15,843,698         —           15,843,698   

Beverages

      —           125,125         —           125,125   

Chemicals

      —           20,696,322         —           20,696,322   

Coal

      —           5,385,287         —           5,385,287   

Commercial Services

      —           41,654,894         —           41,654,894   

Computers

      —           3,500,225         —           3,500,225   

Construction Materials

      —           9,722,339         —           9,722,339   

Distribution/Wholesale

      —           12,975,312         —           12,975,312   

Diversified Financial Services

      —           20,929,977         —           20,929,977   

Electric

      —           31,371,745         —           31,371,745   

Electrical Components & Equipment

      —           1,581,038         —           1,581,038   

Electronics

      —           4,274,247         —           4,274,247   

Engineering & Construction

      —           1,068,843         —           1,068,843   

Entertainment

      —           10,933,119         —           10,933,119   

Environmental Control

      —           1,470,668         —           1,470,668   

Food

      —           7,627,392         —           7,627,392   

Forest Products & Paper

      —           4,730,115         —           4,730,115   

Gas

      —           4,875,068         —           4,875,068   

Healthcare - Products

      —           16,121,564         —           16,121,564   

Healthcare - Services

      —           29,393,073         —           29,393,073   

Holding Companies - Diversified

      —           2,220,447         —           2,220,447   

Home Builders

      —           21,787,597         —           21,787,597   

Home Furnishings

      —           529,017         —           529,017   

Household Products/Wares

      —           10,321,577         —           10,321,577   

Housewares

      —           448,841         —           448,841   

Insurance

      —           2,349,810         —           2,349,810   

Internet

      —           7,551,384         —           7,551,384   

Iron/Steel

      —           6,235,687         —           6,235,687   

Leisure Time

      —           3,506,354         —           3,506,354   

Lodging

      —           6,112,810         —           6,112,810   

Machinery - Construction & Mining

      —           1,067,325         —           1,067,325   

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  

Machinery - Diversified

    $ —         $ 1,384,470      $ —         $ 1,384,470   

Media

      —           36,018,960        2,750,000         38,768,960   

Metal Fabricate/Hardware

      —           1,497,405        —           1,497,405   

Mining

      —           17,774,822        —           17,774,822   

Miscellaneous Manufacturing

      —           4,333,000        —           4,333,000   

Oil & Gas

      —           59,838,871        —           59,838,871   

Oil & Gas Services

      —           8,740,655        —           8,740,655   

Packaging & Containers

      —           15,067,958        —           15,067,958   

Pharmaceuticals

      —           10,061,036        —           10,061,036   

Pipelines

      —           13,289,936        —           13,289,936   

Real Estate

      —           13,002,479        0         13,002,479   

Retail

      —           17,597,948        —           17,597,948   

Semiconductors

      —           2,117,300        —           2,117,300   

Shipbuilding

      —           1,598,281        —           1,598,281   

Software

      —           23,417,445        —           23,417,445   

Storage/Warehousing

      —           2,335,346        —           2,335,346   

Telecommunications

      —           61,458,121        —           61,458,121   

Textiles

      —           1,080,940        —           1,080,940   

Transportation

      —           4,599,640        —           4,599,640   

Trucking & Leasing

      —           1,126,879        —           1,126,879   

Total Corporate Bonds & Notes

      —           621,982,135        4,995,264         626,977,399   

Total Floating Rate Loans*

      —           128,074,683        —           128,074,683   
Common Stocks           

Auto Components

      2,566,578         —          —           2,566,578   

Automobiles

      10,394,885         —          —           10,394,885   

Biotechnology

      216,611         —          —           216,611   

Capital Markets

      13,478,881         —          —           13,478,881   

Chemicals

      1,847,202         —          0         1,847,202   

Commercial Banks

      2,307,952         —          —           2,307,952   

Diversified Telecommunication Services

      812,845         —          333,537         1,146,382   

Forest Products & Paper

      —           1,681,560        —           1,681,560   

Hotels, Restaurants & Leisure

      1,742,448         —          —           1,742,448   

Household Durables

      989,060         —          —           989,060   

Insurance

      4,120,357         —          —           4,120,357   

Machinery

      —           —          561,600         561,600   

Media

      2,554,538         710,686        —           3,265,224   

Metals & Mining

      457,610         —          —           457,610   

Paper & Forest Products

      196,555         —          —           196,555   

Semiconductors & Semiconductor Equipment

      610,494         —          —           610,494   

Software

      —           —          0         0   

Trading Companies & Distributors

      975,201         —          —           975,201   

Wireless Telecommunication Services

      4,234,432         —          —           4,234,432   

Total Common Stocks

      47,505,649         2,392,246        895,137         50,793,032   
Preferred Stocks           

Commercial Banks

      12,017,126         —          —           12,017,126   

Diversified Financial Services

      —           —          0         0   

Internet Software & Services

      —           311,273        —           311,273   

Total Preferred Stocks

      12,017,126         311,273        0         12,328,399   

Total Convertible Preferred Stock*

      —           8,740,284        —           8,740,284   

Total Convertible Bonds*

      —           7,248,417        —           7,248,417   
Warrants           

Containers & Packaging

      —           8,670        —           8,670   

Media

      —           —          0         0   

Software

      —           —          0         0   

Total Warrants

      —           8,670        0         8,670   

Total Short-Term Investment*

      101,561,428         —          —           101,561,428   

Total Investments

    $ 161,084,203       $ 768,757,708      $ 5,890,401       $ 935,732,312   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (101,561,428 )    $ —         $ (101,561,428 ) 

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

BlackRock High Yield Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 426,246      $ —         $ 426,246   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (94,761 )      —           (94,761 ) 

Total Forward Contracts

    $ —        $ 331,485      $ —         $ 331,485   
Futures Contracts          

Futures Contracts (Unrealized Depreciation)

    $ (39,250 )    $ —        $ —         $ (39,250 ) 
Swap Contracts          

Swap Contracts at Value (Assets)

    $ —        $ 344,999      $ —         $ 344,999   

Swap Contracts at Value (Liabilities)

      —          (2,623,934 )      —           (2,623,934 ) 

Total Swap Contracts

    $ —        $ (2,278,935 )    $ —         $ (2,278,935 ) 

Total Reverse Repurchase Agreements (Liability)

    $ —        $ (86,261,031 )    $ —         $ (86,261,031 ) 

 

* See Schedule of Investments for additional detailed categorizations.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

 

Investments in Securities

   Balance as of
December 31,
2012		     Realized
Gain		     Change in
Unrealized
Appreciation/
(Depreciation)		     Purchases     Sales     Transfers
in to
Level 3		     Transfers
out of
Level 3		     Balance
as of
June 30,
2013		     Change in
Unrealized
Appreciation/
(Depreciation)
from investments
still held at
June 30, 2013		  
Corporate Bonds & Notes                  

Aerospace & Defense

   $ 3,650,726      $ —      $ (21,019 )    $ —      $ (1,384,443 )(a)    $ —      $ —      $ 2,245,264      $ (11,743 ) 

Media

     —        —        —        —        —        2,750,000        —        2,750,000        —   

Real Estate

     0        —        —        —        —        —        —        0        —   
Floating Rate Loans                  

Forest Products & Paper

     1,700,160        1,187,264        (110,280 )      83,579        (2,860,723 )      —        —        —        —   

Health Care-Services

     2,018,090        40,330        (3,735 )      —        (2,054,685 )      —        —        —        —   
Common Stocks                  

Chemicals

     0        —        —        —        —        —        —        0        —   

Diversified Telecommunications Services

     354,186        —        (20,649 )      —        —        —        0        333,537        (20,649 ) 

Machinery

     622,350        —        (60,750 )      —        —        —        —        561,600        (60,750 ) 

Software

     —        —        (113 )      —        —        113        —        0        (113 ) 
Preferred Stock                  

Diversified Financial Services

     0        —        —        —        —        —        —        0        —   

Internet Software & Services

     265        —        —        —        —        —        (265 )      —        —   
Warrants                  

Media

     0        —        —        —        —        —        —        0        —   

Software

     0        —        —        —        —        —        —        0        —   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 8,345,777      $ 1,227,594     $ (216,546 )    $ 83,579      $ (6,299,851 )    $ 2,750,113      $ (265 )    $ 5,890,401      $ (93,255 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Sales include principal reductions.

Corporate Bonds & Notes in the amount of $2,750,000 and Common Stocks in the amount of $113 were transferred into Level 3 due to a decline in market activity for significant observables which resulted in a lack of available market inputs to determine price.

Preferred Stocks in the amount of $265 were transferred out of Level 3 due to an increase in third party pricing information and observable inputs in determining the value of the investment.

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

BlackRock High Yield Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 935,732,312   

Cash

      14,130,564   

Cash denominated in foreign currencies (c)

      2,937,362   

Cash collateral (d)

      4,408,000   

Swaps at market value (e)

      344,999   

Unrealized appreciation on forward foreign currency exchange contracts

      426,246   

Receivable for:

   

Investments sold

      21,749,831   

Fund shares sold

      441,386   

Dividends

      4,000   

Interest

      12,220,750   

Variation margin on futures contracts

      192,720   

Swap interest

      19,784   
  

 

 

  

Total Assets

      992,607,954   

Liabilities

   

Payables for:

   

Reverse repurchase agreements

      86,261,031   

Investments purchased

      17,011,696   

Fund shares redeemed

      892,220   

Cash collateral for swaps

      400,000   

Open swap cash collateral

      1,160,000   

Interest on reverse repurchase agreements

      7,408   

Swaps at market value (f)

      2,623,934   

Unrealized depreciation on forward foreign currency exchange contracts

      94,761   

Collateral for securities loaned

      101,561,428   

Accrued expenses:

   

Management fees

      397,318   

Distribution and service fees

      61,546   

Deferred trustees’ fees

      41,001   

Other expenses

      170,914   
  

 

 

  

Total Liabilities

      210,683,257   
  

 

 

  

Net Assets

    $ 781,924,697   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 722,650,580   

Undistributed net investment income

      26,379,810   

Accumulated net realized gain

      33,377,184   

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (482,877 ) 
  

 

 

  

Net Assets

    $ 781,924,697   
  

 

 

  

Net Assets

   

Class A

    $ 499,667,204   

Class B

      282,257,493   

Capital Shares Outstanding*

   

Class A

      60,681,996   

Class B

      34,563,176   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 8.23   

Class B

      8.17   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $936,926,445.
(b) Includes securities loaned at value of $97,437,134.
(c) Identified cost of cash denominated in foreign currencies was $3,008,677.
(d) Includes collateral of $2,190,000 for swaps and $2,218,000 for futures.
(e) Net premium paid on swaps was $59,538.
(f) Net premium received on swaps was $2,830,887.

 

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends

    $ 724,385   

Interest

      29,456,859   

Securities lending income

      300,154   
  

 

 

  

Total investment income

      30,481,398   

Expenses

   

Management fees

      2,720,729   

Administration fees

      11,522   

Custodian and accounting fees

      132,323   

Distribution and service fees—Class B

      404,553   

Interest expense

      22,024   

Audit and tax services

      34,164   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      20,240   

Insurance

      2,749   

Miscellaneous

      8,068   
  

 

 

  

Total expenses

      3,379,494   
  

 

 

  

Net Investment Income

      27,101,904   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      33,875,919   

Futures contracts

      (1,366,974 ) 

Swap contracts

      763,621   

Foreign currency transactions

      1,378,893   
  

 

 

  

Net realized gain

      34,651,459   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (42,185,149 ) 

Futures contracts

      (39,250 ) 

Swap contracts

      (414,008 ) 

Foreign currency transactions

      841,713   
  

 

 

  

Net change in unrealized depreciation

      (41,796,694 ) 
  

 

 

  

Net realized and unrealized loss

      (7,145,235 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 19,956,669   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-25

Met Investors Series Trust

BlackRock High Yield Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 27,101,904      $ 58,544,249   

Net realized gain

      34,651,459        26,249,592   

Net change in unrealized appreciation (depreciation)

      (41,796,694 )      46,098,314   
  

 

 

    

 

 

  

Increase in net assets from operations

      19,956,669        130,892,155   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (34,767,466 )      (39,965,903 ) 

Class B

      (21,805,323 )      (21,123,189 ) 

Net realized capital gains

     

Class A

      (13,650,688 )      (7,088,726 ) 

Class B

      (8,859,543 )      (3,859,774 ) 
  

 

 

    

 

 

  

Total distributions

      (79,083,020 )      (72,037,592 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (73,501,337 )      66,856,331   
  

 

 

    

 

 

  

Total Increase (Decrease) in Net assets

      (132,627,688 )      125,710,894   

Net Assets

     

Beginning of period

      914,552,385        788,841,491   
  

 

 

    

 

 

  

End of period

    $ 781,924,697      $ 914,552,385   
  

 

 

    

 

 

  

Undistributed Net investment income

     

End of period

    $ 26,379,810      $ 55,850,695   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      11,134,181      $ 96,984,790        7,628,922      $ 65,207,609   

Reinvestments

      5,784,726        48,418,154        5,787,777        47,054,629   

Redemptions

      (22,278,954 )      (200,753,450 )      (9,407,848 )      (80,237,933 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (5,360,047 )    $ (55,350,506 )      4,008,851      $ 32,024,305   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      3,826,503      $ 33,514,960        15,497,271      $ 131,297,831   

Reinvestments

      3,690,116        30,664,866        3,095,782        24,982,963   

Redemptions

      (9,661,716 )      (82,330,657 )      (14,490,468 )      (121,448,768 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (2,145,097 )    $ (18,150,831 )      4,102,585      $ 34,832,026   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (73,501,337 )      $ 66,856,331   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-26

Met Investors Series Trust

BlackRock High Yield Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 8.93      $ 8.36      $ 8.70       $ 8.02       $ 5.80       $ 8.24   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.27        0.59        0.59         0.63         0.77         0.61   

Net realized and unrealized gain (loss) on investments

      (0.10 )      0.73        (0.35 )       0.62         1.85         (2.48 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.17        1.32        0.24         1.25         2.62         (1.87 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.62 )      (0.64 )      (0.58 )       (0.57 )       (0.40 )       (0.57 ) 

Distributions from net realized capital gains

      (0.25 )      (0.11 )      0.00         0.00         0.00         0.00   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.87 )      (0.75 )      (0.58 )       (0.57 )       (0.40 )       (0.57 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 8.23      $ 8.93      $ 8.36       $ 8.70       $ 8.02       $ 5.80   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      1.84  (b)      16.80  (d)      2.50         16.10         47.20         (24.20 ) 

Ratios/Supplemental Data

                

Ratio of expenses to average net assets (%)

      0.66  (e)      0.65        0.65         0.65         0.67         0.67   

Ratio of expenses to average net assets excluding interest expense (%)

      0.65  (e)      0.65        0.65         0.65         0.67         0.67   

Ratio of net investment income to average net assets (%)

      6.07  (e)      6.90        6.91         7.60         11.24         8.40   

Portfolio turnover rate (%)

      68  (b)      85        99         99         92         58   

Net assets, end of period (in millions)

    $ 499.7      $ 589.6      $ 518.4       $ 679.1       $ 563.4       $ 295.7   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011      2010      2009      2008(f)  

Net Asset Value, Beginning of Period

    $ 8.85      $ 8.29      $ 8.64       $ 7.98       $ 5.78       $ 7.66   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.25        0.56        0.56         0.60         0.77         0.41   

Net realized and unrealized gain (loss) on investments

      (0.08 )      0.74        (0.34 )       0.62         1.83         (2.29 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.17        1.30        0.22         1.22         2.60         (1.88 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.60 )      (0.63 )      (0.57 )       (0.56 )       (0.40 )       0.00   

Distributions from net realized capital gains

      (0.25 )      (0.11 )      0.00         0.00         0.00         0.00   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.85 )      (0.74 )      (0.57 )       (0.56 )       (0.40 )       0.00   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 8.17      $ 8.85      $ 8.29       $ 8.64       $ 7.98       $ 5.78   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      1.74  (b)      16.54  (d)      2.34         15.77         46.65         (24.54 )(b) 

Ratios/Supplemental Data

                

Ratio of expenses to average net assets (%)

      0.91  (e)      0.90        0.90         0.90         0.92         0.94  (e) 

Ratio of expenses to average net assets excluding interest expense (%)

      0.90  (e)      0.90        0.90         0.90         0.92         0.94  (e) 

Ratio of net investment income to average net assets (%)

      5.81  (e)      6.65        6.66         7.29         10.88         8.70  (e) 

Portfolio turnover rate (%)

      68  (b)      85        99         99         92         58   

Net assets, end of period (in millions)

    $ 282.3      $ 324.9      $ 270.4       $ 238.0       $ 109.1       $ 13.2   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Periods less than one year are not computed on an annualized basis.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) In 2012 0.00% and 0.13% of the Portfolio’s total return for Class A and Class B, respectively, consists of a voluntary reimbursement by the subadvisor for a realized loss. Excluding this item, total return would have been 16.80% and 16.41% for Class A and Class B, respectively.
(e) Computed on an annualized basis.
(f) Commencement of operations was April 28, 2008.

 

See accompanying notes to financial statements.

 

MIST-27

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is BlackRock High Yield Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-28

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization

 

MIST-29

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, swap transactions, contingent payment debt instrument, premium amortization adjustments, convertible preferred stock and distribution redesignations. These adjustments have no impact on net assets or the results of operations.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Reverse Repurchase Agreements - The Portfolio may enter into reverse repurchase agreements with qualified institutions. In a reverse repurchase agreement, the Portfolio transfers securities in exchange for cash to a financial institution or counterparty, concurrently with an agreement by the Portfolio to reacquire the same securities at an agreed upon price and date. During the reverse repurchase agreement period, the Portfolio continues to receive principal and interest payments on these securities. The Portfolio will establish a segregated account with its custodian in which it will maintain liquid assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements involve the risk that the market value of the securities transferred by the Portfolio may decline below the agreed upon reacquisition price of the securities. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it. Cash received in exchange for securities transferred under reverse repurchase agreements plus accrued interest payments to be made by the Portfolio to counterparties are reflected as liabilities on the Statement of Assets and Liabilities. For the six months ended June 30, 2013, the Portfolio had an outstanding reverse repurchase agreement balance for 21 days. The average amount of borrowings was $129,628,191 and the weighted average interest rate was 0.31%.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high

 

MIST-30

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations or an assignment, the Portfolio generally will have no right to enforce compliance by the borrower, with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower and the Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment.

High Yield Debt Securities - The Portfolio may invest in high yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high yield debt securities are less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s Subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the

 

MIST-31

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Credit Default Swaps: The Portfolio is subject to credit risk in the normal course of pursuing its investment objectives. The Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers, or to create exposure to corporate and/or sovereign issuers to which it is not otherwise exposed. Credit default swaps involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return if a credit event occurs for the referenced entity, obligation or index. A credit event is defined under the terms of each swap agreement and may include, but is not limited to, underlying entity default, bankruptcy, write-down, principal shortfall or interest shortfall. As the seller of protection, if an underlying credit event occurs, the Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation (or underlying securities comprising the referenced index), or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). In return, the Portfolio would receive from the counterparty an upfront or periodic stream of payments throughout the life of the credit default swap agreement, provided that no credit event has occurred. As the seller of protection, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the credit default swap.

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may expire worthless and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced

 

MIST-32

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event, the credit event is settled based on that entities weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less expensive than it would be to buy many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on a credit index or corporate or sovereign issuer serve as some indication of the status of the payment/performance risk and the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity or index also reflects the cost of buying/ selling protection and may reflect upfront payments required to be made to enter into the agreement. Wider credit spreads generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the particular swap agreement. When no implied credit spread is available for a credit default swap, the current unrealized appreciation/depreciation on the position may be used as an indicator of the current status of the payment/performance risk.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of June 30, 2013, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value     

Statement of Assets &
Liabilities Location

    Fair Value  
Credit    Swaps at market value (b)    $ 344,999       Swaps at market value (b)    $ 2,623,934   
Equity          Unrealized depreciation on futures contracts* (a)      39,250   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      426,246       Unrealized depreciation on forward foreign currency exchange contracts      94,761   
     

 

 

        

 

 

  
Total       $ 771,245          $ 2,757,945   
     

 

 

        

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

 

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(c)		      Net Amount  

Bank of America N.A.

    $ 11,295       $ —      $ —       $ 11,295   

Bank of New York Mellon Corp.

      195         (195 )      —         —   

 

MIST-33

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(c)		      Net Amount  

Barclays Bank plc

    $ 336,268       $ (336,268 )    $ —       $ —   

BNP Paribas S.A.

      21,273         —        —         21,273   

Citibank N.A.

      25,689         (4,839 )      —         20,850   

Credit Suisse International

      42,835         —        —         42,835   

Deutsche Bank AG

      322,484         (322,484 )      —         —   

Goldman Sachs & Co.

      9,637         —        —         9,637   

Northern Trust Co.

      1,569         —        —         1,569   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 771,245       $ (663,786 )    $ —       $ 107,459   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged(c)		     Net Amount  

Bank of New York Mellon Corp.

    $ 13,270       $ (195 )    $ —      $ 13,075   

Barclays Bank plc

      2,299,664         (336,268 )      (1,963,396 )      —   

Citibank N.A.

      4,839         (4,839 )      —        —   

Deutsche Bank AG

      400,922         (322,484 )      (78,438 )      —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 2,718,695       $ (663,786 )    $ (2,041,834 )    $ 13,075   
  

 

 

     

 

 

    

 

 

    

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate      Credit     Equity     Foreign
Exchange		      Total  

Forward foreign currency transactions

    $ —       $ —      $ —      $ 1,508,324       $ 1,508,324   

Futures contracts

      2,694         —        (1,369,668 )      —         (1,366,974 ) 

Swap contracts

      —         763,621        —        —         763,621   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  
   $ 2,694       $ 763,621      $ (1,369,668 )    $ 1,508,324       $ 904,971   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Statement of Operations Location—Net Change in Unrealized
Appreciation (Depreciation)

    Interest Rate      Credit     Equity     Foreign
Exchange		      Total  

Forward foreign currency transactions

    $ —       $ —      $ —      $ 959,395       $ 959,395   

Futures contracts

      —         —        (39,250 )      —         (39,250 ) 

Swap contracts

      —         (414,008 )      —        —         (414,008 ) 
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  
   $ —       $ (414,008 )    $ (39,250 )    $ 959,395       $ 506,137   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(d)		  

Forward Foreign currency transactions

    $ 93,757,189   

Futures contracts short

      1,339,388   

Swap contracts

      10,755,140   

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) Excludes swap interest receivable of $19,784.
  (c) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (d) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies

 

MIST-34

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 634,312,864       $ 0       $ 686,136,686   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with BlackRock Financial Management, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

 

MIST-35

Met Investors Series Trust

BlackRock High Yield Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser

for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$2,720,729      0.600 %    ALL

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$61,075,322    $ 63,336,309       $ 10,962,270       $ —       $ 72,037,592       $ 63,336,309   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$68,060,645    $ 11,658,200       $ 38,717,248       $ —       $ 118,436,093   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-36

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Managed by BlackRock Advisors, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the BlackRock Large Cap Core Portfolio returned 12.63%, 12.45%, and 12.42%, respectively. The Portfolio’s benchmark, the Russell 1000 Index1, returned 13.91%.

MARKET ENVIRONMENT / CONDITIONS

U.S. stocks had an impressive start to the year, strongly outpacing most other developed markets and emerging-market equities, which registered their worst first-quarter performance since 2008. The U.S. stock rally continued to gather momentum (hitting an all-time high in May) as investors latched onto the latest favorable data on the economy and corporate earnings. Though all sectors yielded positive returns, the record market move was uncharacteristically led by defensive segments, with Health Care, Consumer Staples and Utilities at the top. Volatility made a comeback in the second quarter of 2013, particularly in June, when Federal Reserve (“Fed”) Chairman Ben Bernanke signaled the central bank could begin paring back its bond purchases later this year and end them in 2014. Performance subsequently turned negative as the prospect of Fed tapering led to a widespread sell-off in bonds and a corresponding surge in interest rates. Disappointing data out of China and other emerging markets also weighed on sentiment. Despite the June pullback, U.S. stocks finished the second quarter in positive territory and ended the first half of 2013 with double-digit gains across the ranges of style and market cap.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio trailed the Russell 1000 Index during the six-month period. Strong performance from positions in the Industrials and Financials sectors were overshadowed by weakness in Health Care and Energy.

Weakness in Health Care was most pronounced in the Biotechnology and Pharmaceuticals industries. The Portfolio’s initial underexposure to biotechnology hurt relative performance as the industry continued to rally. We did increase the Portfolio’s allocation, but the move proved untimely in the short run as a couple of names saw their shares subsequently decline. Nevertheless, at period end, we are comfortable with our Biotechnology positioning given attractive valuations relative to the companies’ pipeline prospects. Within Pharmaceuticals, underexposure to Johnson & Johnson and avoidance of Bristol Myers Squibb hurt performance as the companies experienced pipeline wins and investors generally flocked to safer companies, many offering sizable dividends.

At the sector level, positioning within the Energy sector was another notable detractor from performance, with exposure to Suncor Energy (Canada) and an overweight in PBF Energy representing the majority of the underperformance relative to the benchmark. The Portfolio’s position in Integrated Oil & Gas producer Suncor Energy, which is not in the benchmark index detracted most notably in the first quarter of 2013. Underperformance in Suncor Energy’s shares was driven by operating issues and concerns about production growth. PBF Energy shares fell sharply on narrowing crude price differentials and the company’s reporting of first-quarter earnings that widely missed analysts’ expectations. More broadly, the industry was negatively affected by the Environmental Protection Agency’s proposed new gasoline regulations, which would necessitate higher capital expenditures.

On the positive side, the Industrials sector was the most notable source of strength, with an overweight in airline names, including United Continental Holdings and Delta Air Lines, providing the greatest benefit. Airline stocks soared during the six-month period as a combination of strong demand, higher ticket prices and slimmed-down operations resulted in increased profits industry-wide.

Within Financials, an overweight in U.S. money center banks was especially additive. The Portfolio’s key holdings in this segment, including Citigroup and JP Morgan Chase, climbed on a strong recovery in capital markets activity, progress in cost-saving initiatives and improving trends across the broader U.S. economy. Elsewhere in the sector, lack of exposure to the poor-performing real estate investment trust industry aided relative results.

The year-to-date through June 30 surge has pushed U.S. stocks into record territory, but skepticism and concerns remain, with the potential wind-down of the Fed’s bond-buying program topping the list. We are mindful that the recent run-up in equities may increase short-term volatility. With a longer-term view, however, we believe the combination of decent valuations, declining fiscal drag and good corporate earnings growth against a backdrop of slow (but sustained) economic expansion should support equity market appreciation.

As of June 30, 2013, the Portfolio is positioned with a bias toward domestic cyclical stocks given the valuation premium on defensives and the relative strength of the US economy. This is not a permanent bias, but rather a function of bottom-up and top-down research based on current data. At the same time, the Portfolio was overweight in Health Care, which adds ballast. The Health Care sector is cheaper than other defensive segments of the market and has superior growth prospects, in our view.

 

MIST-1

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Managed by BlackRock Advisors, LLC

Portfolio Manager Commentary*—(Continued)

 

At quarter end, the Portfolio’s largest sector overweights relative to the Russell 1000 Index were in Financials and Information Technology, while Consumer Staples and Utilities are notable underweights.

Peter Stournaras

Portfolio Manager

BlackRock Advisors, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year        Since Inception2  
BlackRock Large Cap Core Portfolio                           

Class A

        12.63           19.92           4.31           6.60           —   

Class B

        12.45           19.58           4.04           —           1.25   

Class E

        12.42           19.74           4.15           —           1.36   
Russell 1000 Index        13.91           21.24           7.12           7.67           —   

1 The Russell 1000 Index is an unmanaged measure of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 90% of the investable U.S. equity market.

2 Inception of Class A shares is 3/23/1998. Inception of Class B and Class E shares is 4/30/2007.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Google, Inc. - Class A      4.0   
JPMorgan Chase & Co.      3.4   
Pfizer, Inc.      3.1   
Citigroup, Inc.      3.1   
Merck & Co., Inc.      3.0   
Bank of America Corp.      3.0   
3M Co.      2.7   
News Corp. - Class A      2.7   
Mastercard, Inc. - Class A      2.6   
CVS Caremark Corp.      2.6   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Financials      22.8   
Information Technology      21.3   
Health Care      13.9   
Consumer Discretionary      12.2   
Energy      10.9   
Industrials      10.9   
Consumer Staples      4.9   
Materials      3.1   

 

MIST-3

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

BlackRock Large Cap Core Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.60 %     $ 1,000.00         $ 1,126.30         $ 3.16   
   Hypothetical*      0.60 %     $ 1,000.00         $ 1,021.82         $ 3.01   

Class B(a)

    Actual      0.85 %     $ 1,000.00         $ 1,124.50         $ 4.48   
   Hypothetical*      0.85 %     $ 1,000.00         $ 1,020.58         $ 4.26   

Class E(a)

    Actual      0.75 %     $ 1,000.00         $ 1,124.20         $ 3.95   
   Hypothetical*      0.75 %     $ 1,000.00         $ 1,021.08         $ 3.76   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—99.2% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.5%

    

Boeing Co. (The)

     123,800      $ 12,682,072   

Raytheon Co.

     67,100        4,436,652   
   

 

 

  
      17,118,724   
   

 

 

  

Airlines—2.1%

    

United Continental Holdings, Inc. (a)

     756,929        23,684,308   
   

 

 

  

Auto Components—1.2%

    

TRW Automotive Holdings Corp. (a)

     210,200        13,965,688   
   

 

 

  

Biotechnology—2.4%

    

Amgen, Inc.

     108,700        10,724,342   

Biogen Idec, Inc. (a)

     29,200        6,283,840   

Celgene Corp. (a)

     54,800        6,406,668   

Gilead Sciences, Inc. (a)

     53,700        2,749,977   

Quintiles Transnational Holdings, Inc. (a)

     15,000        638,400   
   

 

 

  
      26,803,227   
   

 

 

  

Capital Markets—1.5%

    

Goldman Sachs Group, Inc. (The)

     112,483        17,013,054   
   

 

 

  

Chemicals—0.3%

    

Cabot Corp.

     99,131        3,709,482   
   

 

 

  

Commercial Banks—3.8%

    

SunTrust Banks, Inc.

     422,200        13,328,854   

U.S. Bancorp.

     807,375        29,186,606   
   

 

 

  
      42,515,460   
   

 

 

  

Commercial Services & Supplies—0.6%

  

Tyco International, Ltd.

     222,475        7,330,551   
   

 

 

  

Communications Equipment—0.3%

    

Brocade Communications Systems, Inc. (a)

     562,500        3,240,000   
   

 

 

  

Computers & Peripherals—3.5%

    

Apple, Inc.

     52,650        20,853,612   

EMC Corp.

     772,900        18,255,898   
   

 

 

  
      39,109,510   
   

 

 

  

Construction & Engineering—1.7%

    

Fluor Corp.

     129,125        7,658,404   

KBR, Inc.

     341,600        11,102,000   
   

 

 

  
      18,760,404   
   

 

 

  

Consumer Finance—2.3%

    

Discover Financial Services

     559,725        26,665,299   
   

 

 

  

Containers & Packaging—1.1%

    

Packaging Corp. of America

     253,124        12,392,951   
   

 

 

  

Diversified Financial Services—9.8%

    

Bank of America Corp.

     2,656,400        34,161,304   

Citigroup, Inc.

     722,350        34,651,129   

JPMorgan Chase & Co.

     731,254        38,602,899   

Diversified Financial Services—(Continued)

  

NASDAQ OMX Group, Inc. (The)

     117,525      $ 3,853,645   
   

 

 

  
      111,268,977   
   

 

 

  

Electronic Equipment, Instruments & Components—0.9%

  

Avnet, Inc. (a)

     210,000        7,056,000   

TE Connectivity, Ltd.

     65,200        2,969,208   
   

 

 

  
      10,025,208   
   

 

 

  

Energy Equipment & Services—0.7%

  

Oceaneering International, Inc.

     108,350        7,822,870   
   

 

 

  

Food & Staples Retailing—3.7%

  

CVS Caremark Corp.

     519,975        29,732,171   

Wal-Mart Stores, Inc.

     166,025        12,367,202   
   

 

 

  
      42,099,373   
   

 

 

  

Health Care Equipment & Supplies—0.8%

  

Abbott Laboratories

     248,450        8,665,936   
   

 

 

  

Health Care Providers & Services—1.2%

  

McKesson Corp.

     121,850        13,951,825   
   

 

 

  

Industrial Conglomerates—3.3%

  

3M Co.

     284,125        31,069,069   

General Electric Co.

     290,850        6,744,811   
   

 

 

  
      37,813,880   
   

 

 

  

Insurance—5.1%

  

American International Group, Inc. (a)

     620,025        27,715,117   

Chubb Corp. (The)

     167,450        14,174,643   

Travelers Cos., Inc. (The)

     202,475        16,181,802   
   

 

 

  
      58,071,562   
   

 

 

  

Internet Software & Services—4.0%

  

Google, Inc. - Class A (a)

     50,940        44,846,048   
   

 

 

  

IT Services—5.6%

  

Alliance Data Systems Corp. (a) (b)

     46,975        8,503,884   

International Business Machines Corp.

     55,525        10,611,383   

Mastercard, Inc. - Class A

     52,150        29,960,175   

Teradata Corp. (a)

     275,100        13,818,273   
   

 

 

  
      62,893,715   
   

 

 

  

Life Sciences Tools & Services—1.2%

  

Agilent Technologies, Inc.

     319,600        13,666,096   
   

 

 

  

Machinery—1.6%

  

Ingersoll-Rand plc

     270,900        15,040,368   

WABCO Holdings, Inc. (a)

     38,700        2,890,503   
   

 

 

  
      17,930,871   
   

 

 

  

Media—4.9%

  

Comcast Corp. - Class A

     614,900        25,752,012   

News Corp. - Class A

     929,446        30,299,940   
   

 

 

  
      56,051,952   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description  

Shares

     Value  

Multiline Retail—0.8%

  

Dillard’s, Inc. - Class A

     91,911      $ 7,533,945   

Macy’s, Inc.

     29,951        1,437,648   
   

 

 

  
      8,971,593   
   

 

 

  

Oil, Gas & Consumable Fuels—10.2%

  

Chevron Corp.

     203,825        24,120,650   

Exxon Mobil Corp.

     274,100        24,764,935   

Marathon Oil Corp.

     395,075        13,661,694   

Marathon Petroleum Corp.

     268,796        19,100,644   

PBF Energy, Inc. (b)

     278,679        7,217,786   

Suncor Energy, Inc.

     671,035        19,788,822   

Tesoro Corp.

     120,779        6,319,157   
   

 

 

  
      114,973,688   
   

 

 

  

Paper & Forest Products—1.7%

  

Domtar Corp.

     86,700        5,765,550   

International Paper Co.

     301,600        13,363,896   
   

 

 

  
      19,129,446   
   

 

 

  

Pharmaceuticals—8.2%

  

AbbVie, Inc.

     248,450        10,270,923   

Eli Lilly & Co.

     176,025        8,646,348   

Johnson & Johnson

     51,550        4,426,083   

Merck & Co., Inc.

     736,325        34,202,296   

Pfizer, Inc.

     1,246,325        34,909,563   
   

 

 

  
      92,455,213   
   

 

 

  

Semiconductors & Semiconductor Equipment—1.7%

  

Applied Materials, Inc.

     879,450        13,112,599   

Teradyne, Inc. (a) (b)

     354,500        6,228,565   
   

 

 

  
      19,341,164   
   

 

 

  

Software—5.2%

  

Activision Blizzard, Inc.

     592,000        8,441,920   

Microsoft Corp.

     792,700        27,371,931   

Oracle Corp.

     638,300        19,608,576   

Symantec Corp.

     169,900        3,817,653   
   

 

 

  
      59,240,080   
   

 

 

  

Specialty Retail—4.2%

  

Lowe’s Cos., Inc.

     645,000        26,380,500   

Ross Stores, Inc.

     318,800        20,661,428   
   

 

 

  
      47,041,928   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.9%

  

NIKE, Inc. - Class B

     164,591        10,481,155   
   

 

 

  

Tobacco—1.2%

  

Philip Morris International, Inc.

     154,075        13,345,977   
   

 

 

  

Total Common Stocks
(Cost $936,451,138)

       1,122,397,215   
   

 

 

  
Short-Term Investments—2.5%   
Security Description   Shares/
Principal
Amount*		     Value  

Mutual Fund—1.7%

  

State Street Navigator Securities Lending MET Portfolio (c)

     18,841,387      $ 18,841,387   
   

 

 

  

Repurchase Agreement—0.8%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $9,424,008 on 07/01/13, collateralized by $9,625,000 Federal National Mortgage Association at 0.420% due 06/05/15 with a value of $9,612,969.

     9,424,000        9,424,000   
   

 

 

  

Total Short-Term Investments
(Cost $28,265,387)

       28,265,387   
   

 

 

  

Total Investments—101.7%
(Cost $964,716,525) (d)

       1,150,662,602   

Other assets and liabilities (net)—(1.7)%

       (19,653,722 ) 
   

 

 

  
Net Assets—100.0%     $ 1,131,008,880   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $18,654,529 and the collateral received consisted of cash in the amount of $18,841,387. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $964,716,525. The aggregate unrealized appreciation and depreciation of investments were $206,162,563 and $(20,216,486), respectively, resulting in net unrealized appreciation of $185,946,077.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 1,122,397,215       $ —        $ —         $ 1,122,397,215   
Short-Term Investments           

Mutual Fund

      18,841,387         —          —           18,841,387   

Repurchase Agreement

      —           9,424,000        —           9,424,000   

Total Short-Term Investments

      18,841,387         9,424,000        —           28,265,387   

Total Investments

    $ 1,141,238,602       $ 9,424,000      $ —         $ 1,150,662,602   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (18,841,387 )    $ —         $ (18,841,387 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,150,662,602   

Cash

      659   

Receivable for:

   

Investments sold

      850,924   

Fund shares sold

      92,652   

Dividends and interest

      1,138,841   
  

 

 

  

Total Assets

      1,152,745,678   

Liabilities

   

Payables for:

   

Investments purchased

      1,445,897   

Fund shares redeemed

      543,843   

Collateral for securities loaned

      18,841,387   

Accrued Expenses:

   

Management fees

      542,195   

Distribution and service fees

      34,390   

Deferred trustees’ fees

      41,001   

Other expenses

      288,085   
  

 

 

  

Total Liabilities

      21,736,798   
  

 

 

  

Net Assets

    $ 1,131,008,880   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,187,362,995   

Undistributed net investment income

      5,875,007   

Accumulated net realized loss

      (248,175,199 ) 

Unrealized appreciation on investments

      185,946,077   
  

 

 

  

Net Assets

    $ 1,131,008,880   
  

 

 

  

Net Assets

   

Class A

    $ 932,581,627   

Class B

      113,847,703   

Class E

      84,579,550   

Capital Shares Outstanding*

   

Class A

      86,573,305   

Class B

      10,723,360   

Class E

      7,899,924   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.77   

Class B

      10.62   

Class E

      10.71   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $964,716,525.
(b) Includes securities loaned at value of $18,654,529.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 9,511,751   

Interest

      567   

Securities lending income

      42,115   
  

 

 

  

Total investment income

      9,554,433   

Expenses

   

Management fees

      3,307,575   

Administration fees

      14,196   

Custodian and accounting fees

      41,877   

Distribution and service fees—Class B

      142,534   

Distribution and service fees—Class E

      63,850   

Audit and tax services

      19,511   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      40,470   

Insurance

      3,662   

Miscellaneous

      2,823   
  

 

 

  

Total expenses

      3,659,621   

Less management fee waiver

      (78,497 ) 
  

 

 

  

Net expenses

      3,581,124   
  

 

 

  

Net Investment Income

      5,973,309   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain (loss) on:   

Investments

      62,370,056   

Foreign currency transactions

      (1,383 ) 
  

 

 

  

Net realized gain

      62,368,673   
  

 

 

  

Net change in unrealized appreciation on investments

      63,880,555   
  

 

 

  

Net realized and unrealized gain

      126,249,228   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 132,222,537   
  

 

 

  

 

(a) Net of foreign withholding taxes of $32,194.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 5,973,309      $ 16,380,768   

Net realized gain

      62,368,673        59,302,505   

Net change in unrealized appreciation

      63,880,555        63,057,165   
  

 

 

    

 

 

  

Increase in net assets from operations

      132,222,537        138,740,438   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (13,732,623 )      (10,774,634 ) 

Class B

      (1,450,254 )      (1,093,979 ) 

Class E

      (1,130,845 )      (1,034,454 ) 
  

 

 

    

 

 

  

Total distributions

      (16,313,722 )      (12,903,067 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (47,380,780 )      (110,433,024 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      68,528,035        15,404,347   

Net Assets

     

Beginning of period

      1,062,480,845        1,047,076,498   
  

 

 

    

 

 

  

End of period

    $ 1,131,008,880      $ 1,062,480,845   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 5,875,007      $ 16,215,420   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,014,141      $ 11,025,898        941,518      $ 8,935,823   

Reinvestments

      1,343,701        13,732,623        1,136,565        10,774,634   

Redemptions

      (5,661,110 )      (60,302,445 )      (10,874,836 )      (102,527,905 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (3,303,268 )    $ (35,543,924 )      (8,796,753 )    $ (82,817,448 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      657,270      $ 6,846,193        2,006,347      $ 18,478,640   

Reinvestments

      143,874        1,450,254        117,003        1,093,979   

Redemptions

      (1,376,110 )      (14,405,918 )      (2,440,113 )      (22,663,663 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (574,966 )    $ (6,109,471 )      (316,763 )    $ (3,091,044 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      289,818      $ 3,046,874        982,583      $ 9,165,065   

Reinvestments

      111,304        1,130,845        109,698        1,034,454   

Redemptions

      (941,861 )      (9,905,104 )      (3,693,526 )      (34,724,051 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (540,739 )    $ (5,727,385 )      (2,601,245 )    $ (24,524,532 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (47,380,780 )      $ (110,433,024 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 9.71      $ 8.65       $ 8.70       $ 7.82       $ 6.67       $ 11.14   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.06        0.14         0.11         0.10         0.09         0.11   

Net realized and unrealized gain (loss) on investments

      1.16        1.03         (0.06 )       0.89         1.17         (4.10 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.22        1.17         0.05         0.99         1.26         (3.99 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.16 )      (0.11 )       (0.10 )       (0.11 )       (0.11 )       (0.06 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.42 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.16 )      (0.11 )       (0.10 )       (0.11 )       (0.11 )       (0.48 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.77      $ 9.71       $ 8.65       $ 8.70       $ 7.82       $ 6.67   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      12.63  (c)      13.59         0.46         12.64         19.34         (37.17 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.61  (d)      0.64         0.64         0.64         0.65         0.62   

Net ratio of expenses to average net assets (%) (e)

      0.60  (d)      0.63         0.63         0.64         0.65         0.62   

Ratio of net investment income to average net assets (%)

      1.10  (d)      1.54         1.20         1.21         1.39         1.20   

Portfolio turnover rate (%)

      24  (c)      103         98         133         130         103   

Net assets, end of period (in millions)

    $ 932.6      $ 873.0       $ 853.3       $ 939.4       $ 923.5       $ 1,041.2   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 9.56      $ 8.52       $ 8.58       $ 7.72       $ 6.58       $ 11.01   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.04        0.12         0.09         0.08         0.07         0.08   

Net realized and unrealized gain (loss) on investments

      1.15        1.01         (0.07 )       0.87         1.16         (4.04 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.19        1.13         0.02         0.95         1.23         (3.96 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.13 )      (0.09 )       (0.08 )       (0.09 )       (0.09 )       (0.05 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.42 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.13 )      (0.09 )       (0.08 )       (0.09 )       (0.09 )       (0.47 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.62      $ 9.56       $ 8.52       $ 8.58       $ 7.72       $ 6.58   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      12.45  (c)      13.32         0.18         12.36         19.10         (37.36 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.86  (d)      0.89         0.89         0.89         0.90         0.87   

Net ratio of expenses to average net assets (%) (e)

      0.85  (d)      0.88         0.88         0.89         0.90         0.87   

Ratio of net investment income to average net assets (%)

      0.85  (d)      1.29         0.99         0.98         1.11         0.96   

Portfolio turnover rate (%)

      24  (c)      103         98         133         130         103   

Net assets, end of period (in millions)

    $ 113.8      $ 108.1       $ 99.0       $ 79.3       $ 56.6       $ 33.5   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Financial Highlights

 

 

Selected per share data       
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 9.65      $ 8.59       $ 8.65       $ 7.77       $ 6.62       $ 11.07   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.05        0.13         0.09         0.08         0.08         0.09   

Net realized and unrealized gain (loss) on investments

      1.15        1.03         (0.06 )       0.89         1.16         (4.07 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.20        1.16         0.03         0.97         1.24         (3.98 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.14 )      (0.10 )       (0.09 )       (0.09 )       (0.09 )       (0.05 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.42 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.14 )      (0.10 )       (0.09 )       (0.09 )       (0.09 )       (0.47 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.71      $ 9.65       $ 8.59       $ 8.65       $ 7.77       $ 6.62   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      12.42  (c)      13.51         0.21         12.58         19.20         (37.30 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.76  (d)      0.79         0.79         0.79         0.80         0.77   

Net ratio of expenses to average net assets (%) (e)

      0.75  (d)      0.78         0.78         0.79         0.80         0.77   

Ratio of net investment income to average net assets (%)

      0.95  (d)      1.39         1.04         1.06         1.23         1.04   

Portfolio turnover rate (%)

      24  (c)      103         98         133         130         103   

Net assets, end of period (in millions)

    $ 84.6      $ 81.4       $ 94.8       $ 105.2       $ 101.8       $ 96.6   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is BlackRock Large Cap Core Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-13

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions and return of capital adjustment. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $9,424,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

 

MIST-14

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 267,036,619       $ 0       $ 315,994,007   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with BlackRock Advisors, LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$3,307,575      0.625 %    First $250 million
     0.600 %    $250 million to $500 million
     0.575 %    $500 million to $1 billion
     0.550 %    $1 billion to $2 billion
     0.500 %    Over $2 billion

 

MIST-15

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets  
0.025%    $ 500 million to $2 billion   

An identical agreement was in place for the period April 30, 2012 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$12,903,067    $ 12,273,079       $ —       $ —       $ 12,903,067       $ 12,273,079   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$16,251,046    $ —       $ 112,066,035       $ (300,544,384 )    $ (172,227,303 ) 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010

 

MIST-16

Met Investors Series Trust

BlackRock Large Cap Core Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

(the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2016

    Expiring
12/31/2017		      Total  
$93,426,777    $ 207,117,607       $ 300,544,384   

 

MIST-17

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Managed by CBRE Clarion Securities LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the Clarion Global Real Estate Portfolio returned 0.87%, 0.74%, and 0.83%, respectively. The Portfolio’s benchmark, the FTSE EPRA/NAREIT Developed Index1, returned 2.40%.

MARKET ENVIRONMENT / CONDITIONS

The past six months have been a period of positive total returns for investors in the global real estate securities market, with the FTSE EPRA/NAREIT Developed Index returning 2.40%. While global property company shares remain in positive territory on the year, shares were modestly down during the second quarter in the face of headwinds caused by mixed economic news and mention by the U.S. Federal Reserve (“Fed”) mid-way through the quarter that it intends to begin to scale back its quantitative easing program as early as this fall. This news had an unsettling effect on the world’s financial markets, as bond yields moved sharply higher in response to the Fed’s comments. Although a short-term move higher in interest rates typically can cause short-term dislocation among yield-sensitive asset classes, including the listed property company sector, history suggests that property company shares ultimately benefit from the underlying forces that cause rates to move higher, namely positive economic growth.

With respect to the benchmark, the Americas region delivered the strongest performance during the period, up 4.7%, while the Asia-Pacific and European regions lagged, posting returns of +0.1% and -0.3% respectively. Performance in the Americas region was driven by the U.S. market, which was up 6.3%. In the Asia-Pacific region, Japan posted the strongest return, up 15.8%, while all other markets within the region posted negative performance during the period. In Europe, the United Kingdom (”U.K.”) property market was up 2.1% while returns were down modestly on the Continent as France was the only major market to generate positive returns.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s performance trailed the benchmark during the period primarily as the result of stock selection decisions. The impact of stock selection decisions was primarily focused in the U.S. and Europe, which overshadowed the value added from good stock selection in Japan, Hong Kong and Australia. Asset allocation was a drag on performance as an overweight to the underperforming Hong Kong market as well as from cash drag in a positive market more than offset the benefit of an underweight to the underperforming Canadian market. Stock selection in the U.S. was hampered by the outperformance of higher-yielding and often lower-quality stocks during the first part of the year. This trend began to reverse toward the latter half of the period and relative performance improved substantially, although stock selection remained in negative territory for the period. In the European region, the majority of relative underperformance was the result of underweight exposure to U.K. retail, which outperformed during the period as Gross Domestic Product (“GDP”) data surprised to the upside. From an individual security perspective, overweight exposure to underperforming companies such as CapitaLand, Ltd. (Singapore), CapitaCommercial Trust (Singapore) and Sino Land Co., Ltd. (Hong Kong) detracted from relative performance during the period. This overshadowed the value added by overweight exposure to outperforming companies such as SL Green Realty Corp., Kilroy Realty Corp. and Mitsui Fudosan Co., Ltd. (Japan).

Portfolio positioning is focused on investing in attractively priced companies, geographies and property sectors which stand to benefit the most from improving economic conditions. Geographically, we remained cautious on Europe, with the exception of a few markets as-of June 30, 2013. We are more favorably inclined toward the Americas and select markets in the Asia-Pacific region given their superior economic growth outlook and associated growth in real estate cash flows.

During the second quarter, some capital was trimmed from the Asia-Pacific region and rotated to the U.S. and to select markets in Europe, where valuations arguably remain attractive. In the U.S., the Portfolio was overweight the retail, hotel, central business district office and industrial sectors at period end and while maintaining a more cautious view on the suburban office, healthcare, storage and net lease sectors. In Europe, we had a bias toward the dominant Western European retail companies ex the U.K., and maintained a preference for office companies in London, particularly those focused on the supply-constrained West End submarket. In Asia ex-Japan, we

 

MIST-1

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Managed by CBRE Clarion Securities LLC

Portfolio Manager Commentary*—(Continued)

 

generally favored the office and retail sectors, but remain cautious on the residential sector as a result of increasingly effective government cooling measures. In Australia, we preferred companies with an ability to increase cash flows and create value despite softening property fundamentals, while in Japan, we were overweight property companies with significant exposure to the improving Tokyo office market.

T. Ritson Ferguson

Steven D. Burton

Joseph P. Smith

Portfolio Managers

CBRE Clarion Securities LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Clarion Global Real Estate Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE FTSE EPRA /NAREIT DEVELOPED INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
Clarion Global Real Estate Portfolio                      

Class A

        0.87           11.97           4.39           7.37   

Class B

        0.74           11.78           4.14           7.11   

Class E

        0.83           11.94           4.25           7.23   
FTSE EPRA /NAREIT Developed Index        2.40           14.27           4.59           9.26   

1 The FTSE EPRA/NAREIT Developed Index is designed to track the performance of listed real estate companies and Real Estate Investment Trusts worldwide.

2 Inception of Class A, B and E shares is 5/1/2004. Index returns are based on an inception date of 5/1/2004.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  

Simon Property Group, Inc. (REIT)

      4.2   

Mitsubishi Estate Co., Ltd.

      3.9   

Mitsui Fudosan Co., Ltd.

      3.5   

Unibail-Rodamco SE (REIT)

      3.1   

Host Hotels & Resorts, Inc. (REIT)

      2.7   

Equity Residential (REIT)

      2.6   

ProLogis, Inc. (REIT)

      2.4   

Sumitomo Realty & Development Co., Ltd.

      2.2   

Boston Properties, Inc. (REIT)

      2.1   

General Growth Properties, Inc. (REIT)

      2.1   

 

Top Countries

 

     % of
Market Value of
Total Investments		  
United States      50.1   
Japan      14.9   
Hong Kong      8.2   
Australia      7.3   
United Kingdom      5.3   
France      4.9   
Singapore      4.4   
Canada      2.1   
Sweden      0.8   
Germany      0.7   

 

MIST-3

Met Investors Series Trust

Clarion Global Real Estate Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Clarion Global Real Estate Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

    Actual      0.65 %     $ 1,000.00         $ 1,008.70         $ 3.24   
   Hypothetical*      0.65 %     $ 1,000.00         $ 1,021.57         $ 3.26   

Class B

    Actual      0.90 %     $ 1,000.00         $ 1,007.40         $ 4.48   
   Hypothetical*      0.90 %     $ 1,000.00         $ 1,020.33         $ 4.51   

Class E

    Actual      0.80 %     $ 1,000.00         $ 1,008.30         $ 3.98   
   Hypothetical*      0.80 %     $ 1,000.00         $ 1,020.83         $ 4.01   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—98.7% of Net Assets

 

Security Description   Shares     Value  

Australia—7.3%

    

Dexus Property Group (REIT)

     18,600,303      $ 18,083,665   

Federation Centres, Ltd. (REIT)

     5,452,800        11,782,140   

Goodman Group (REIT) (a)

     5,036,883        22,323,615   

GPT Group (REIT)

     41,630        145,699   

Investa Office Fund (REIT)

     1,060,100        2,804,522   

Mirvac Group (REIT) (a)

     11,896,665        17,330,913   

Westfield Group (REIT)

     2,811,304        29,326,008   

Westfield Retail Trust (REIT) (a)

     7,569,415        21,365,744   
   

 

 

  
      123,162,306   
   

 

 

  

Brazil—0.1%

    

Sonae Sierra Brasil S.A.

     216,000        2,361,978   
   

 

 

  

Canada—2.2%

    

Boardwalk Real Estate Investment Trust (REIT)

     146,900        8,141,866   

Calloway Real Estate Investment Trust (REIT)

     310,800        7,597,859   

Canadian Real Estate Investment Trust (REIT)

     79,800        3,304,450   

RioCan Real Estate Investment Trust (REIT)

     711,200        17,088,546   
   

 

 

  
      36,132,721   
   

 

 

  

China—0.2%

    

Country Garden Holdings Co., Ltd.

     7,119,268        3,652,204   
   

 

 

  

France—4.9%

    

Fonciere Des Regions (REIT)

     69,489        5,210,115   

ICADE (REIT) (a)

     58,046        4,793,244   

Klepierre (REIT)

     360,450        14,206,756   

Mercialys S.A. (REIT) (a)

     82,160        1,584,107   

Societe Immobiliere de Location pour l’Industrie et le Commerce (REIT)

     47,900        4,936,309   

Unibail-Rodamco SE (REIT)

     223,804        51,953,682   
   

 

 

  
      82,684,213   
   

 

 

  

Germany—0.7%

    

GSW Immobilien AG (a)

     93,518        3,605,227   

LEG Immobilien AG (b)

     144,900        7,532,206   
   

 

 

  
      11,137,433   
   

 

 

  

Hong Kong—8.2%

    

China Overseas Land & Investment, Ltd. (a)

     1,681,300        4,342,204   

China Resources Land, Ltd. (a)

     1,307,000        3,543,584   

Hang Lung Properties, Ltd.

     1,432,677        4,973,970   

Hongkong Land Holdings, Ltd.

     2,977,645        20,395,993   

Kerry Properties, Ltd.

     830,600        3,224,448   

Link REIT (The) (REIT)

     4,613,000        22,549,150   

New World Development Co., Ltd.

     6,632,400        9,119,768   

Sino Land Co., Ltd.

     6,843,062        9,531,736   

Sun Hung Kai Properties, Ltd.

     1,580,900        20,325,730   

Swire Properties, Ltd.

     3,266,000        9,657,566   

Wharf Holdings, Ltd.

     3,562,080        29,657,372   
   

 

 

  
      137,321,521   
   

 

 

  

Japan—14.9%

    

Activia Properties, Inc. (REIT)

     660        5,202,139   

Hulic Co., Ltd. (a)

     643,000        6,899,154   

Japan—(Continued)

    

Japan Real Estate Investment Corp. (REIT)

     2,201      $ 24,599,656   

Japan Retail Fund Investment Corp. (REIT)

     9,820        20,448,385   

Kenedix Realty Investment Corp. (REIT)

     1,186        4,729,606   

Mitsubishi Estate Co., Ltd.

     2,470,656        65,800,683   

Mitsui Fudosan Co., Ltd.

     2,009,774        59,121,216   

Nippon Accommodations Fund, Inc. (REIT)

     29        189,916   

Nippon Building Fund, Inc. (REIT) (a)

     395        4,577,422   

Nippon Prologis REIT, Inc. (REIT)

     362        3,154,608   

Sumitomo Realty & Development Co., Ltd.

     919,500        36,672,834   

Tokyo Tatemono Co., Ltd.

     1,093,900        9,112,250   

United Urban Investment Corp. (REIT)

     6,875        9,247,596   
   

 

 

  
      249,755,465   
   

 

 

  

Netherlands—0.4%

    

Eurocommercial Properties NV (REIT)

     188,457        6,914,383   
   

 

 

  

Singapore—4.4%

    

Ascendas Real Estate Investment Trust (REIT) (a)

     1,597,000        2,809,461   

CapitaCommercial Trust (REIT) (a)

     12,011,000        13,881,267   

CapitaLand, Ltd. (a)

     7,937,611        19,173,410   

CapitaMall Trust (REIT) (a)

     6,332,823        9,966,819   

Global Logistic Properties, Ltd.

     9,399,500        20,277,573   

Mapletree Greater China Commercial Trust (REIT) (a) (b)

     10,994,000        8,172,875   
   

 

 

  
      74,281,405   
   

 

 

  

Sweden—0.8%

    

Castellum A.B.

     617,230        8,355,688   

Hufvudstaden A.B. - A Shares

     405,248        4,845,793   
   

 

 

  
      13,201,481   
   

 

 

  

Switzerland—0.5%

    

PSP Swiss Property AG (b)

     101,032        8,738,496   
   

 

 

  

United Kingdom—5.3%

    

British Land Co. plc (REIT)

     1,279,677        11,010,587   

Derwent London plc (REIT)

     418,740        14,637,031   

Great Portland Estates plc (REIT)

     1,655,558        13,373,306   

Hammerson plc (REIT)

     1,673,851        12,449,264   

Land Securities Group plc (REIT)

     2,274,426        30,424,168   

Safestore Holdings plc (REIT) (a) (c)

     2,113,000        3,991,087   

Segro plc (REIT)

     950,100        4,015,349   
   

 

 

  
      89,900,792   
   

 

 

  

United States—48.8%

    

AvalonBay Communities, Inc. (REIT)

     232,198        31,325,832   

BioMed Realty Trust, Inc. (REIT)

     592,600        11,988,298   

Boston Properties, Inc. (REIT)

     337,600        35,606,672   

Brandywine Realty Trust (REIT)

     368,300        4,979,416   

BRE Properties, Inc. (REIT)

     316,246        15,818,625   

Campus Crest Communities, Inc. (REIT) (a)

     253,500        2,925,390   

CBL & Associates Properties, Inc. (REIT)

     277,100        5,935,482   

CommonWealth REIT (REIT)

     235,700        5,449,384   

DDR Corp. (REIT) (a)

     995,200        16,570,080   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description       
Shares		     Value  

United States—(Continued)

    

Douglas Emmett, Inc. (REIT)

     565,700      $ 14,114,215   

Duke Realty Corp. (REIT)

     1,200,400        18,714,236   

Equity Residential (REIT)

     755,800        43,881,748   

Essex Property Trust, Inc. (REIT)

     47,400        7,532,808   

Federal Realty Investment Trust (REIT)

     48,234        5,000,901   

General Growth Properties, Inc. (REIT)

     1,781,232        35,393,080   

HCP, Inc. (REIT)

     478,000        21,720,320   

Health Care REIT, Inc. (REIT)

     521,800        34,976,254   

Healthcare Realty Trust, Inc. (REIT)

     163,000        4,156,500   

Healthcare Trust of America, Inc. (REIT) - Class A (a)

     329,100        3,695,793   

Highwoods Properties, Inc. (REIT) (a)

     269,178        9,585,429   

Host Hotels & Resorts, Inc. (REIT)

     2,725,271        45,975,322   

Kilroy Realty Corp. (REIT) (a)

     406,900        21,569,769   

Kimco Realty Corp. (REIT) (a)

     1,227,700        26,309,611   

Lexington Realty Trust (REIT) (a)

     605,500        7,072,240   

Liberty Property Trust (REIT)

     576,600        21,311,136   

Macerich Co. (The) (REIT)

     455,188        27,752,812   

Pebblebrook Hotel Trust (REIT) (a)

     295,900        7,649,015   

Post Properties, Inc. (REIT)

     362,900        17,959,921   

ProLogis, Inc. (REIT)

     1,077,568        40,645,865   

Public Storage (REIT)

     172,500        26,449,425   

Ramco-Gershenson Properties Trust (REIT)

     218,700        3,396,411   

Senior Housing Properties Trust (REIT)

     524,000        13,587,320   

Simon Property Group, Inc. (REIT)

     451,073        71,233,448   

SL Green Realty Corp. (REIT)

     355,960        31,392,112   

Starwood Hotels & Resorts Worldwide, Inc.

     143,800        9,086,722   

Strategic Hotels & Resorts, Inc. (REIT) (b)

     569,900        5,049,314   

Sunstone Hotel Investors, Inc. (REIT) (b)

     586,300        7,082,504   

Tanger Factory Outlet Centers, Inc. (REIT)

     192,720        6,448,411   

Taubman Centers, Inc. (REIT)

     172,813        12,986,897   

UDR, Inc. (REIT)

     1,060,475        27,031,508   

Ventas, Inc. (REIT)

     314,779        21,864,549   

Vornado Realty Trust (REIT)

     349,369        28,945,222   

Weyerhaeuser Co. (REIT)

     357,800        10,193,722   
   

 

 

  
      820,363,719   
   

 

 

  

Total Common Stocks
(Cost $1,435,271,780)

       1,659,608,117   
   

 

 

  

Rights—0.0%

  

Hong Kong—0.0%

  

New Hotel, Expires 12/31/13 (b)
(Cost $0)

     82,905        0   
   

 

 

  
Short-Term Investments—6.0%   

Mutual Fund—4.7%

    

State Street Navigator Securities Lending MET Portfolio (d)

     79,160,593        79,160,593   
   

 

 

  
Security Description   Principal
Amount*		     Value  

Repurchase Agreement—1.3%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $21,484,018 on 07/01/13, collateralized by $22,110,000 U.S. Treasury Note at 0.750% due 06/30/17 with a value of $21,916,538.

     21,484,000      $ 21,484,000   
   

 

 

  

Total Short-Term Investments
(Cost $100,644,593)

       100,644,593   
   

 

 

  

Total Investments—104.7%
(Cost $1,535,916,373) (e)

       1,760,252,710   

Other assets and liabilities (net)—(4.7)%

       (79,362,078 ) 
   

 

 

  
Net Assets—100.0%     $ 1,680,890,632   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $86,833,852 and the collateral received consisted of cash in the amount of $79,160,593 and non-cash collateral with a value of $11,319,075. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Illiquid security. As of June 30, 2013, these securities represent 0.2% of net assets.
(d) Represents investment of cash collateral received from securities lending transactions.
(e) As of June 30, 2013, the aggregate cost of investments was $1,535,916,373. The aggregate unrealized appreciation and depreciation of investments were $245,687,068 and $(21,350,731), respectively, resulting in net unrealized appreciation of $224,336,337.
(REIT)— A Real Estate Investment Trust is a pooled investment vehicle that invests primarily in income-producing real estate or real estate related loans or interest.

 

Ten Largest Industries as of
June 30, 2013 (Unaudited)

   

% of
Net Assets

  

Retail REIT’s

      26.1   

Diversified Real Estate Activities

      15.3   

Office REIT’s

      12.7   

Specialized REIT’s

      12.0   

Diversified REIT’s

      11.5   

Residential REIT’s

      9.2   

Real Estate Operating Companies

      5.8   

Industrial REIT’s

      4.3   

Real Estate Development

      1.3   

Hotels, Resorts & Cruise Lines

      0.5   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Australia

    $ —         $ 123,162,306      $ —         $ 123,162,306   

Brazil

      2,361,978         —          —           2,361,978   

Canada

      36,132,721         —          —           36,132,721   

China

      —           3,652,204        —           3,652,204   

France

      12,405,133         70,279,080        —           82,684,213   

Germany

      —           11,137,433        —           11,137,433   

Hong Kong

      —           137,321,521        —           137,321,521   

Japan

      —           249,755,465        —           249,755,465   

Netherlands

      —           6,914,383        —           6,914,383   

Singapore

      —           74,281,405        —           74,281,405   

Sweden

      —           13,201,481        —           13,201,481   

Switzerland

      —           8,738,496        —           8,738,496   

United Kingdom

      —           89,900,792        —           89,900,792   

United States

      820,363,719         —          —           820,363,719   

Total Common Stocks

      871,263,551         788,344,566        —           1,659,608,117   

Total Rights*

      —           0        —           0   
Short-Term Investments           

Mutual Fund

      79,160,593         —          —           79,160,593   

Repurchase Agreement

      —           21,484,000        —           21,484,000   

Total Short-Term Investments

      79,160,593         21,484,000        —           100,644,593   

Total Investments

    $ 950,424,144       $ 809,828,566      $ —         $ 1,760,252,710   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (79,160,593 )    $ —         $ (79,160,593 ) 

 

* See Schedule of Investments for additional detailed categorizations.

Transfers from Level 2 to Level 1 in the amount of $3,416,929 were due to increased trading activity.

As of June 30, 2013, there were no securities designated as Level 3. The security that was designated as Level 3 at December 31, 2012 was no longer held by the Portfolio as of June 30, 2013. The Level 3 security had comprised 0.0% of net assets of the Portfolio. As such, the Level 3 roll forward of the Level 3 security held at December 31, 2012 has not been presented.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Clarion Global Real Estate Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,760,252,710   

Cash

      752   

Cash denominated in foreign currencies (c)

      538,064   

Receivable for:

   

Investments sold

      6,947,870   

Fund shares sold

      1,266,323   

Dividends and interest

      5,302,903   
  

 

 

  

Total Assets

      1,774,308,622   

Liabilities

   

Payables for:

   

Investments purchased

      12,628,176   

Fund shares redeemed

      331,598   

Collateral for securities loaned

      79,160,593   

Accrued Expenses:

   

Management fees

      828,276   

Distribution and service fees

      112,510   

Deferred trustees’ fees

      41,001   

Other expenses

      315,836   
  

 

 

  

Total Liabilities

      93,417,990   
  

 

 

  

Net Assets

    $ 1,680,890,632   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,913,026,595   

Distributions in excess on net investment income

      (64,873,930 ) 

Accumulated net realized loss

      (391,575,802 ) 

Unrealized appreciation on investments and foreign currency transactions

      224,313,769   
  

 

 

  

Net Assets

    $ 1,680,890,632   
  

 

 

  

Net Assets

   

Class A

    $ 1,116,392,978   

Class B

      521,961,323   

Class E

      42,536,331   

Capital Shares Outstanding*

   

Class A

      103,052,817   

Class B

      48,364,519   

Class E

      3,929,285   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.83   

Class B

      10.79   

Class E

      10.83   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,535,916,373.
(b) Includes securities loaned at value of $86,833,852.
(c) Identified cost of cash denominated in foreign currencies was $538,259.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 26,927,669   

Interest

      978   

Securities lending income

      374,656   
  

 

 

  

Total investment income

      27,303,303   

Expenses

   

Management fees

      5,146,266   

Administration fees

      21,632   

Custodian and accounting fees

      276,316   

Distribution and service fees—Class B

      675,776   

Distribution and service fees—Class E

      32,658   

Audit and tax services

      24,988   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      54,561   

Insurance

      5,135   

Miscellaneous

      6,386   
  

 

 

  

Total expenses

      6,266,840   

Less broker commission recapture

      (88,711 ) 
  

 

 

  

Net expenses

      6,178,129   
  

 

 

  

Net Investment Income

      21,125,174   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      84,837,965   

Foreign currency transactions

      (222,674 ) 
  

 

 

  

Net realized gain

      84,615,291   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (93,416,396 ) 

Foreign currency transactions

      (210 ) 
  

 

 

  

Net change in unrealized depreciation

      (93,416,606 ) 
  

 

 

  

Net realized and unrealized loss

      (8,801,315 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 12,323,859   
  

 

 

  

 

(a) Net of foreign withholding taxes of $1,519,999.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 21,125,174      $ 38,398,108   

Net realized gain

      84,615,291        97,229,356   

Net change in unrealized appreciation (depreciation)

      (93,416,606 )      225,238,437   
  

 

 

    

 

 

  

Increase in net assets from operations

      12,323,859        360,865,901   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (80,780,804 )      (24,066,761 ) 

Class B

      (36,595,373 )      (10,023,626 ) 

Class E

      (2,984,361 )      (824,628 ) 
  

 

 

    

 

 

  

Total distributions

      (120,360,538 )      (34,915,015 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      148,042,536        (103,030,921 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      40,005,857        222,919,965   

Net Assets

     

Beginning of period

      1,640,884,775        1,417,964,810   
  

 

 

    

 

 

  

End of period

    $ 1,680,890,632      $ 1,640,884,775   
  

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income

     

End of period

    $ (64,873,930 )    $ 34,361,434   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      7,283,543      $ 89,073,072        5,757,957      $ 59,957,042   

Reinvestments

      6,916,165        80,780,804        2,371,110        24,066,761   

Redemptions

      (5,092,175 )      (61,184,847 )      (14,963,083 )      (158,311,844 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      9,107,533      $ 108,669,029        (6,834,016 )    $ (74,288,041 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      3,755,057      $ 43,389,942        3,835,940      $ 39,996,260   

Reinvestments

      3,143,932        36,595,373        989,500        10,023,626   

Redemptions

      (3,829,653 )      (44,248,823 )      (7,351,738 )      (76,826,226 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      3,069,336      $ 35,736,492        (2,526,298 )    $ (26,806,340 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      381,391      $ 4,441,169        319,143      $ 3,368,531   

Reinvestments

      255,510        2,984,361        81,244        824,628   

Redemptions

      (323,602 )      (3,788,515 )      (581,959 )      (6,129,699 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      313,299      $ 3,637,015        (181,572 )    $ (1,936,540 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 148,042,536        $ (103,030,921 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.50      $ 9.32       $ 10.23       $ 9.58       $ 7.40       $ 14.08   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.15        0.27         0.23         0.27         0.24         0.32   

Net realized and unrealized gain (loss) on investments

      0.01        2.15         (0.73 )       1.20         2.21         (5.53 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.16        2.42         (0.50 )       1.47         2.45         (5.21 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.83 )      (0.24 )       (0.41 )       (0.82 )       (0.27 )       (0.25 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.22 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.83 )      (0.24 )       (0.41 )       (0.82 )       (0.27 )       (1.47 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.83      $ 11.50       $ 9.32       $ 10.23       $ 9.58       $ 7.40   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      0.87  (c)      26.30         (5.28 )       16.28         35.12         (41.56 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.65  (d)      0.66         0.67         0.69         0.73         0.69   

Net ratio of expenses to average net assets (%) (e)

      0.65  (d)      0.66         0.67         0.69         0.73         0.67   

Ratio of net investment income to average net assets (%)

      2.54  (d)      2.54         2.35         2.86         3.16         2.91   

Portfolio turnover rate (%)

      23  (c)      43         31         55         66         146   

Net assets, end of period (in millions)

    $ 1,116.4      $ 1,080.7       $ 939.0       $ 859.6       $ 727.0       $ 534.1   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.45      $ 9.28       $ 10.20       $ 9.55       $ 7.37       $ 14.01   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.13        0.24         0.21         0.24         0.22         0.29   

Net realized and unrealized gain (loss) on investments

      0.01        2.14         (0.74 )       1.21         2.21         (5.50 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.14        2.38         (0.53 )       1.45         2.43         (5.21 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.80 )      (0.21 )       (0.39 )       (0.80 )       (0.25 )       (0.21 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.22 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.80 )      (0.21 )       (0.39 )       (0.80 )       (0.25 )       (1.43 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.79      $ 11.45       $ 9.28       $ 10.20       $ 9.55       $ 7.37   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      0.74  (c)      25.99         (5.59 )       16.10         34.74         (41.67 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.90  (d)      0.91         0.92         0.94         0.98         0.93   

Net ratio of expenses to average net assets (%) (e)

      0.90  (d)      0.91         0.92         0.94         0.98         0.92   

Ratio of net investment income to average net assets (%)

      2.29  (d)      2.29         2.09         2.60         2.90         2.57   

Portfolio turnover rate (%)

      23  (c)      43         31         55         66         146   

Net assets, end of period (in millions)

    $ 522.0      $ 518.7       $ 443.6       $ 461.3       $ 388.6       $ 279.2   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Financial Highlights

 

 

Selected per share data                                         
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.49      $ 9.31       $ 10.22       $ 9.57       $ 7.38       $ 14.04   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.14        0.25         0.22         0.25         0.23         0.29   

Net realized and unrealized gain (loss) on investments

      0.02        2.15         (0.74 )       1.21         2.22         (5.51 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.16        2.40         (0.52 )       1.46         2.45         (5.22 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.82 )      (0.22 )       (0.39 )       (0.81 )       (0.26 )       (0.22 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.22 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.82 )      (0.22 )       (0.39 )       (0.81 )       (0.26 )       (1.44 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.83      $ 11.49       $ 9.31       $ 10.22       $ 9.57       $ 7.38   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      0.83  (c)      26.13         (5.41 )       16.14         34.96         (41.68 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.80  (d)      0.81         0.82         0.84         0.88         0.83   

Net ratio of expenses to average net assets (%) (e)

      0.80  (d)      0.81         0.82         0.84         0.88         0.81   

Ratio of net investment income to average net assets (%)

      2.39  (d)      2.38         2.17         2.68         3.02         2.62   

Portfolio turnover rate (%)

      23  (c)      43         31         55         66         146   

Net assets, end of period (in millions)

    $ 42.5      $ 41.5       $ 35.3       $ 41.9       $ 40.1       $ 34.7   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Clarion Global Real Estate Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-13

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid in surplus. Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFICs), Real Estate Investment Trusts (REITs), and broker commission recapture. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $21,484,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

 

MIST-14

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 432,457,511       $ 0       $ 387,672,478   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with CBRE Clarion Securities LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

 

MIST-15

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$5,146,266      0.700 %    First $200 million
     0.650 %    $200 million to $750 million
     0.550 %    Over $750 million

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

     

Long-Term Capital Gains

      Total  

2012

    2011      2012      2011      2012      2011  
$34,915,015    $ 54,868,818       $ —       $ —       $ 34,915,015       $ 54,868,818   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$119,363,274    $ —       $ 213,388,542       $ (456,815,477 )    $ (124,063,661 ) 

 

MIST-16

Met Investors Series Trust

Clarion Global Real Estate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2016

    Expiring
12/31/2017		      Expiring
12/31/2018		      Total  
$137,785,589    $ 231,334,681       $ 87,695,207       $ 456,815,477   

 

MIST-17

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Managed by ClearBridge Investments, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the ClearBridge Aggressive Growth Portfolio returned 22.80%, 22.76%, and 22.86%, respectively. The Portfolio’s benchmark, the Russell 3000 Growth Index1, returned 12.23%.

MARKET ENVIRONMENT/CONDITIONS

For the first five months of the year, the stock market had risen strongly with some indices reaching new highs. Market volatility increased somewhat in June as investors focused on a potential tapering of monetary accommodation by the Federal Reserve Board (“Fed”) later in the year.

U.S. economic data were strong enough that the Fed signaled in April its intention to begin to taper its quantitative easing program later in 2013. Almost immediately, market participants drove the 10-year Treasury yield to 2.5% from 1.6% as money started to exit bonds in anticipation of a “normalization” of bond yields. Important from an equity perspective, yields rose not from an uptick in inflation expectations, but rather because the recent strength in the economy appears sustainable. The market rose sharply during the first half of the quarter, pulled back after the Fed announcement, and then rallied again in late June.

U.S. economic data remained encouraging in the second quarter. Most importantly, unemployment claims continued to fall and work force participation steadied. The various Purchasing Manager Indexes remained above 50 points, indicating economic growth. Consumer sentiment climbed to its best level since 2008. In June, auto sales jumped to a 15.9 million annual rate, despite lower incentives. Housing starts rose slightly, to just under a 1 million rate, less than expected, perhaps due to the very wet spring in the Midwest and East.

PORTFOLIO REVIEW/PERIOD END POSITIONING

For the six months ended June 30, 2013, both overall stock selection and overall sector allocation made a positive contribution to the Portfolio’s performance relative to the benchmark index. In particular, stock selection in the Information Technology (IT), Health Care and Energy sectors helped the Portfolio’s relative performance. The Portfolio’s overweight positions in the Health Care and Consumer Discretionary sectors and its underweight positions in the IT and Materials sectors also made a positive contribution to relative performance. Stock selection in the Industrials and Materials sectors detracted from relative performance, while the Portfolio’s underweight position in the Consumer Staples sector detracted from relative performance.

In terms of individual holdings, the leading relative contributors to performance included Biogen Idec Inc., UnitedHealth Group Inc. and Vertex Pharmaceuticals, Inc. in the Health Care sector, Seagate Technology plc in the IT sector and Core Laboratories NV in the Energy sector. Detractors from relative performance included ADT Corp. in the Industrials sector, Freeport-McMoRan Copper & Gold, Inc. in the Materials sector, Citrix Systems, Inc. and Facebook, Inc. in the IT sector and Newfield Exploration Co. in the Energy sector.

We made no significant changes to the Portfolio during the first six months of 2013. During the period, the Portfolio’s positioning with regard to sector weightings was largely consistent, with the largest allocations remaining in the Health Care (36.8% average weight), Consumer Discretionary (19.9%), IT (16.5%) and Energy (16.3%) sectors. The Portfolio had no holdings in the Consumer Staples, Financials, Telecommunications Services and Utilities sectors.

At period end, we continued to emphasize companies that have defensive business models and the ability to grow in a slow economic recovery, and can use their balance sheets opportunistically. While the market seems much more concerned with the movement of interest rates, we continued to concern ourselves more with the movement of our companies’ earnings and cash flows. The media has been focused almost continuously on the macroeconomic backdrop, but we did not let that affect our methods at all this year.

Richard Freeman

Evan Bauman

Portfolio Managers

ClearBridge Investments, LLC

 

MIST-1

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 3000 GROWTH INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year  
ClearBridge Aggressive Growth Portfolio                      

Class A

        22.80           31.61           10.69           8.26   

Class B

        22.76           31.33           10.43           8.00   

Class E

        22.86           31.51           10.53           8.11   
Russell 3000 Growth Index        12.23           17.56           7.58           7.57   

1 The Russell 3000 Growth Index measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Biogen Idec, Inc.      10.2   
UnitedHealth Group, Inc.      8.1   
Anadarko Petroleum Corp.      6.9   
Amgen, Inc.      6.1   
Comcast Corp - Special Class A      5.9   
Forest Laboratories, Inc.      3.9   
Seagate Technology plc      3.5   
Core Laboratories NV      3.5   
Weatherford International, Ltd.      3.3   
SanDisk Corp.      3.0   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Health Care      37.2   
Consumer Discretionary      20.1   
Information Technology      17.1   
Energy      16.0   
Industrials      8.5   
Materials      1.1   

 

MIST-2

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

ClearBridge Aggressive Growth Portfolio
(formerly, Legg Mason
ClearBridge Aggressive Growth Portfolio)

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

    Actual      0.61 %     $ 1,000.00         $ 1,228.00         $ 3.37   
   Hypothetical*      0.61 %     $ 1,000.00         $ 1,021.77         $ 3.06   

Class B

    Actual      0.86 %     $ 1,000.00         $ 1,227.60         $ 4.75   
   Hypothetical*      0.86 %     $ 1,000.00         $ 1,020.53         $ 4.31   

Class E

    Actual      0.76 %     $ 1,000.00         $ 1,228.60         $ 4.20   
   Hypothetical*      0.76 %     $ 1,000.00         $ 1,021.03         $ 3.81   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-3

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—99.7% of Net Assets

 

Security Description   Shares     Value  
   
   

Aerospace & Defense—2.1%

  

Engility Holdings, Inc. (a) (b)

     57,266      $ 1,627,500   

L-3 Communications Holdings, Inc.

     405,600        34,776,144   
   

 

 

  
      36,403,644   
   

 

 

  

Biotechnology—19.5%

  

Amgen, Inc.

     1,105,500        109,068,630   

Biogen Idec, Inc. (a)

     840,060        180,780,912   

ImmunoGen, Inc. (a) (b)

     288,000        4,777,920   

Isis Pharmaceuticals, Inc. (a) (b)

     293,535        7,887,285   

Vertex Pharmaceuticals, Inc. (a)

     552,072        44,093,991   
   

 

 

  
      346,608,738   
   

 

 

  

Commercial Services & Supplies—2.4%

  

ADT Corp. (The) (a)

     409,012        16,299,128   

Tyco International, Ltd.

     822,025        27,085,724   
   

 

 

  
      43,384,852   
   

 

 

  

Communications Equipment—0.1%

  

ARRIS Group, Inc. (a)

     122,915        1,763,830   
   

 

 

  

Computers & Peripherals—6.6%

  

SanDisk Corp. (a)

     884,590        54,048,449   

Seagate Technology plc

     1,400,600        62,788,898   
   

 

 

  
      116,837,347   
   

 

 

  

Construction & Engineering—1.0%

  

Fluor Corp.

     301,610        17,888,489   
   

 

 

  

Electronic Equipment, Instruments & Components—2.5%

  

Dolby Laboratories, Inc. - Class A (b)

     295,300        9,877,785   

TE Connectivity, Ltd.

     773,925        35,244,544   
   

 

 

  
      45,122,329   
   

 

 

  

Energy Equipment & Services—8.9%

  

Core Laboratories NV

     406,070        61,584,576   

National Oilwell Varco, Inc.

     543,778        37,466,304   

Weatherford International, Ltd. (a)

     4,332,900        59,360,730   
   

 

 

  
      158,411,610   
   

 

 

  

Health Care Equipment & Supplies—2.5%

  

Covidien plc

     671,325        42,186,063   

Wright Medical Group, Inc. (a)

     56,921        1,491,899   
   

 

 

  
      43,677,962   
   

 

 

  

Health Care Providers & Services—8.1%

  

UnitedHealth Group, Inc.

     2,197,800        143,911,944   
   

 

 

  

Internet & Catalog Retail—1.6%

  

Liberty Interactive Corp. - Class A (a)

     1,080,900        24,871,509   

Liberty Ventures - Series A (a)

     44,510        3,783,795   
   

 

 

  
      28,655,304   
   

 

 

  
   

Internet Software & Services—0.4%

  

Facebook, Inc. - Class A (a)

     305,900      $ 7,604,674   
   

 

 

  

Machinery—3.0%

  

Pall Corp.

     637,800        42,369,054   

Pentair, Ltd.

     196,304        11,324,778   
   

 

 

  
      53,693,832   
   

 

 

  

Media—18.4%

  

AMC Networks, Inc. - Class A (a)

     470,025        30,744,335   

Cablevision Systems Corp. - Class A (b)

     1,898,500        31,932,770   

CBS Corp. - Class B

     188,600        9,216,882   

Comcast Corp. - Class A

     459,500        19,243,860   

Comcast Corp. - Special Class A

     2,650,000        105,125,500   

DIRECTV (a)

     554,675        34,179,073   

Liberty Global plc - Class A (a)

     171,900        12,734,352   

Liberty Media Corp. - Class A (a)

     276,888        35,098,323   

Madison Square Garden Co. (The) - Class A (a)

     498,350        29,527,238   

Starz - Class A (a)

     298,688        6,601,005   

Viacom, Inc. - Class B

     197,900        13,467,095   
   

 

 

  
      327,870,433   
   

 

 

  

Metals & Mining—1.1%

  

Freeport-McMoRan Copper & Gold, Inc.

     447,900        12,366,519   

Nucor Corp.

     161,300        6,987,516   
   

 

 

  
      19,354,035   
   

 

 

  

Oil, Gas & Consumable Fuels—7.0%

  

Anadarko Petroleum Corp.

     1,421,860        122,180,430   

Newfield Exploration Co. (a)

     116,700        2,787,963   
   

 

 

  
      124,968,393   
   

 

 

  

Pharmaceuticals—7.0%

  

Forest Laboratories, Inc. (a)

     1,686,500        69,146,500   

Teva Pharmaceutical Industries, Ltd. (ADR)

     170,700        6,691,440   

Valeant Pharmaceuticals International, Inc. (a)

     560,470        48,245,258   
   

 

 

  
      124,083,198   
   

 

 

  

Semiconductors & Semiconductor Equipment—5.3%

  

Broadcom Corp. - Class A

     1,120,745        37,836,351   

Cree, Inc. (a) (b)

     594,400        37,958,384   

Intel Corp.

     739,448        17,909,431   
   

 

 

  
      93,704,166   
   

 

 

  

Software—2.2%

  

Advent Software, Inc. (a)

     8,700        305,022   

Autodesk, Inc. (a)

     522,100        17,720,074   

Citrix Systems, Inc. (a)

     340,700        20,554,431   
   

 

 

  
      38,579,527   
   

 

 

  

Total Common Stocks
(Cost $1,173,291,856)

       1,772,524,307   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Rights—0.0%

 

Security Description   Shares/
Principal
Amount*		     Value  

Health Care Equipment & Supplies—0.0%

  

Wright Medical Group, Inc. (a)
(Cost $573,350)

     229,340      $ 621,512   
   

 

 

  
Short-Term Investments—4.4%   

Mutual Fund—4.1%

  

State Street Navigator Securities Lending MET Portfolio (c)

     72,097,052        72,097,052   
   

 

 

  
   

Repurchase Agreement—0.3%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $5,893,005 on 07/01/13 collateralized by $6,130,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $6,015,063.

     5,893,000        5,893,000   
   

 

 

  

Total Short-Term Investments
(Cost $77,990,052)

       77,990,052   
   

 

 

  

Total Investments—104.1%
(Cost $1,251,855,258) (d)

       1,851,135,871   

Other assets and liabilities (net)—(4.1)%

       (73,393,651 ) 
   

 

 

  
Net Assets—100.0%     $ 1,777,742,220   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $71,408,170 and the collateral received consisted of cash in the amount of $72,097,052 and non-cash collateral with a value of $69,767. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $1,251,855,258. The aggregate unrealized appreciation and depreciation of investments were $630,441,017 and $(31,160,404), respectively, resulting in net unrealized appreciation of $599,280,613.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 1,772,524,307       $ —        $ —         $ 1,772,524,307   

Total Rights*

      621,512         —          —           621,512   
Short-Term Investments           

Mutual Fund

      72,097,052         —          —           72,097,052   

Repurchase Agreement

      —           5,893,000        —           5,893,000   

Total Short-Term Investments

      72,097,052         5,893,000        —           77,990,052   

Total Investments

    $ 1,845,242,871       $ 5,893,000      $ —         $ 1,851,135,871   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (72,097,052 )    $ —         $ (72,097,052 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,851,135,871   

Cash

      237   

Receivable for:

   

Fund shares sold

      385,434   

Dividends and interest

      637,442   
  

 

 

  

Total Assets

      1,852,158,984   

Liabilities

   

Payables for:

   

Fund shares redeemed

      1,170,258   

Collateral for securities loaned

      72,097,052   

Accrued Expenses:

   

Management fees

      860,510   

Distribution and service fees

      118,572   

Deferred trustees’ fees

      60,040   

Other expenses

      110,332   
  

 

 

  

Total Liabilities

      74,416,764   
  

 

 

  

Net Assets

    $ 1,777,742,220   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 2,285,514,891   

Undistributed net investment income

      1,866,282   

Accumulated net realized loss

      (1,108,919,566 ) 

Unrealized appreciation on investments

      599,280,613   
  

 

 

  

Net Assets

    $ 1,777,742,220   
  

 

 

  

Net Assets

   

Class A

    $ 1,187,970,280   

Class B

      568,847,936   

Class E

      20,924,004   

Capital Shares Outstanding*

   

Class A

      104,898,185   

Class B

      51,381,542   

Class E

      1,873,462   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.32   

Class B

      11.07   

Class E

      11.17   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,251,855,258.
(b) Includes securities loaned at value of $71,408,170.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 7,828,201   

Interest

      242   

Securities lending income

      74,289   
  

 

 

  

Total investment income

      7,902,732   

Expenses

   

Management fees

      4,901,390   

Administration fees

      20,703   

Custodian and accounting fees

      51,221   

Distribution and service fees—Class B

      662,693   

Distribution and service fees—Class E

      14,605   

Audit and tax services

      19,398   

Legal

      9,771   

Trustees’ fees and expenses

      13,515   

Shareholder reporting

      37,834   

Insurance

      4,014   

Miscellaneous

      5,804   
  

 

 

  

Total expenses

      5,740,948   

Less broker commission recapture

      (1,485 ) 
  

 

 

  

Net expenses

      5,739,463   
  

 

 

  

Net Investment Income

      2,163,269   
  

 

 

  

Net Realized and Unrealized Gain

   

Net realized gain on investments

      40,559,668   
  

 

 

  

Net change in unrealized appreciation on investments

      290,018,805   
  

 

 

  

Net realized and unrealized gain

      330,578,473   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 332,741,742   
  

 

 

  

 

(a) Net of foreign withholding taxes of $57,003.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 2,163,269      $ 6,154,294   

Net realized gain

      40,559,668        15,524,236   

Net change in unrealized appreciation

      290,018,805        183,541,588   
  

 

 

    

 

 

  

Increase in net assets from operations

      332,741,742        205,220,118   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (5,041,108 )      (1,481,500 ) 

Class B

      (1,291,219 )      (108,638 ) 

Class E

      (59,787 )      (19,721 ) 
  

 

 

    

 

 

  

Total distributions

      (6,392,114 )      (1,609,859 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (8,169,213 )      159,450,290   
  

 

 

    

 

 

  

Total Increase in Net Assets

      318,180,415        363,060,549   

Net Assets

     

Beginning of period

      1,459,561,805        1,096,501,256   
  

 

 

    

 

 

  

End of period

    $ 1,777,742,220      $ 1,459,561,805   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 1,866,282      $ 6,095,127   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      9,086,039      $ 97,302,512        31,536,001      $ 286,049,129   

Reinvestments

      484,256        5,041,108        170,287        1,481,500   

Redemptions

      (9,929,214 )      (106,026,778 )      (10,739,022 )      (94,129,243 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (358,919 )    $ (3,683,158 )      20,967,266      $ 193,401,386   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      5,579,635      $ 57,505,802        8,046,574      $ 68,385,093   

Reinvestments

      126,839        1,291,219        12,766        108,638   

Redemptions

      (6,003,666 )      (62,620,992 )      (11,626,737 )      (99,895,338 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (297,192 )    $ (3,823,971 )      (3,567,397 )    $ (31,401,607 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      176,344      $ 1,856,168        244,903      $ 2,104,548   

Reinvestments

      5,821        59,787        2,299        19,721   

Redemptions

      (250,264 )      (2,578,039 )      (539,644 )      (4,673,758 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (68,099 )    $ (662,084 )      (292,442 )    $ (2,549,489 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (8,169,213 )      $ 159,450,290   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011     2010     2009     2008  

Net Asset Value, Beginning of Period

    $ 9.26      $ 7.81      $ 7.55      $ 6.09      $ 4.57      $ 7.54   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

             

Net investment income (a)

      0.02        0.05        0.02        0.01        0.00  (b)      0.01   

Net realized and unrealized gain (loss) on investments

      2.09        1.42        0.25        1.45        1.53        (2.93 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      2.11        1.47        0.27        1.46        1.53        (2.92 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

             

Distributions from net investment income

      (0.05 )      (0.02 )      (0.01 )      (0.00 )(c)      (0.01 )      (0.00 )(c) 

Distributions from net realized capital gains

      0.00        0.00        0.00        0.00        0.00        (0.05 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.05 )      (0.02 )      (0.01 )      (0.00 )(c)      (0.01 )      (0.05 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.32      $ 9.26      $ 7.81      $ 7.55      $ 6.09      $ 4.57   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (d)

      22.80  (e)      18.81        3.55        24.05        33.45        (38.95 ) 

Ratios/Supplemental Data

             

Ratio of expenses to average net assets (%)

      0.61  (f)      0.64        0.65        0.68        0.67        0.65   

Ratio of net investment income to average net assets (%)

      0.35  (f)      0.61        0.27        0.19        0.11        0.13   

Portfolio turnover rate (%)

      3  (e)      4        6        1        3        6   

Net assets, end of period (in millions)

    $ 1,188.0      $ 974.5      $ 657.9      $ 585.2      $ 493.9      $ 580.9   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011     2010     2009     2008  

Net Asset Value, Beginning of Period

    $ 9.04      $ 7.63      $ 7.39      $ 5.97      $ 4.49      $ 7.42   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

             

Net investment income (loss) (a)

      0.00  (b)      0.03        0.00  (b)      0.00  (b)      (0.01 )      (0.01 ) 

Net realized and unrealized gain (loss) on investments

      2.06        1.38        0.24        1.42        1.49        (2.87 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      2.06        1.41        0.24        1.42        1.48        (2.88 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

             

Distributions from net investment income

      (0.03 )      0.00  (c)      0.00        0.00        0.00        0.00   

Distributions from net realized capital gains

      0.00        0.00        0.00        0.00        0.00        (0.05 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.03 )      0.00        0.00        0.00        0.00        (0.05 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.07      $ 9.04      $ 7.63      $ 7.39      $ 5.97      $ 4.49   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (d)

      22.76  (e)      18.51        3.25        23.79        32.96        (39.05 ) 

Ratios/Supplemental Data

             

Ratio of expenses to average net assets (%)

      0.86  (f)      0.89        0.90        0.93        0.92        0.90   

Ratio of net investment income (loss) to average net assets (%)

      0.09  (f)      0.31        0.04        (0.06 )      (0.16 )      (0.13 ) 

Portfolio turnover rate (%)

      3  (e)      4        6        1        3        6   

Net assets, end of period (in millions)

    $ 568.8      $ 467.3      $ 421.4      $ 197.5      $ 152.9      $ 120.4   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Financial Highlights

 

Selected per share data       
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011      2010     2009     2008  

Net Asset Value, Beginning of Period

    $ 9.12      $ 7.70      $ 7.44       $ 6.01      $ 4.51      $ 7.45   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (loss) (a)

      0.01        0.03        0.01         0.00  (b)      (0.00 )(b)      (0.00 )(b) 

Net realized and unrealized gain (loss) on investments

      2.07        1.40        0.25         1.43        1.50        (2.89 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total from investment operations

      2.08        1.43        0.26         1.43        1.50        (2.89 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.03 )      (0.01 )      0.00         0.00        0.00        0.00   

Distributions from net realized capital gains

      0.00        0.00        0.00         0.00        0.00        (0.05 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

      (0.03 )      (0.01 )      0.00         0.00        0.00        (0.05 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.17      $ 9.12      $ 7.70       $ 7.44      $ 6.01      $ 4.51   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total Return (%) (d)

      22.86  (e)      18.57        3.49         23.79        33.26        (39.03 ) 

Ratios/Supplemental Data

              

Ratio of expenses to average net assets (%)

      0.76  (f)      0.79        0.80         0.83        0.82        0.80   

Ratio of net investment income (loss) to average net assets (%)

      0.19  (f)      0.40        0.18         0.00        (0.06 )      (0.03 ) 

Portfolio turnover rate (%)

      3  (e)      4        6         1        3        6   

Net assets, end of period (in millions)

    $ 20.9      $ 17.7      $ 17.2       $ 3.3      $ 3.0      $ 2.5   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Net investment income (loss) was less than $0.01.
(c) Distributions from net investment income were less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio) (the “Portfolio”), which is non-diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-11

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization

 

MIST-12

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to broker commission recapture and, futures reclass. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $5,893,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

 

MIST-13

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 52,829,569       $ 0       $ 56,214,024   

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $25,285,860 in purchases of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with ClearBridge Investments, LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$4,901,390      0.650 %    First $500 million
     0.600 %    $500 million to $1 billion
     0.550 %    $1 billion to $2 billion
     0.500 %    Over $2 billion

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

 

MIST-14

Met Investors Series Trust

ClearBridge Aggressive Growth Portfolio (formerly, Legg Mason ClearBridge Aggressive Growth Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$1,609,859    $ 664,432       $ —       $ —       $ 1,609,859       $ 664,432   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$6,151,064    $ —       $ 309,158,554       $ (1,149,375,980 )    $ (834,066,362 ) 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2015

    Expiring
12/31/2016		     Expiring
12/31/2017		      Expiring
12/31/2018		      Total  
$345,332,542*    $ 659,613,130 *    $ 130,530,096       $ 13,900,212       $ 1,149,375,980   

 

* The Portfolio acquired capital losses in its merger with Legg Mason Value Equity Portfolio on April 29, 2011.

 

MIST-15

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Managed by Goldman Sachs Asset Management, L.P.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the Goldman Sachs Mid Cap Value Portfolio returned 15.43% and 15.28%, respectively. The Portfolio’s benchmark, the Russell Midcap Value Index1, returned 16.10%.

MARKET ENVIRONMENT / CONDITIONS

U.S. equities extended their rally from 2012 with a strong first quarter in 2013. The S&P 500 Index rose 3.75% in March and 10.61% for the quarter, finishing at a new record closing high. Despite the overhang of automatic spending cuts that went into effect in March, markets reflected a variety of improving economic indicators. During the quarter, strong momentum in the housing market continued as the Case-Shiller index of house prices rose 8.1% in January, year-over-year, the fastest pace since mid-2006. The employment picture also improved with the unemployment rate dropping to 7.7%. Strong retail sales suggested consumers may have been feeling the effects of better housing and labor market conditions.

After a strong start to the second quarter, the S&P 500 Index lost 1.34% in June, ending seven straight months of gains and leaving returns of 2.91% for the second quarter and 13.82% year-to-date. The S&P 500 Index and Dow Jones Industrial Average both made fresh record highs, fueled by the continued strong rebound in house prices. However, the equity rally halted in mid-May when Federal Reserve Board (“Fed”) Chairman Bernanke announced the potential “tapering” of the pace of quantitative easing asset purchases. Equity markets reacted negatively again in June on news that the slowing could begin later this year, with the program ending by the middle of 2014 if the economy grows as expected. However, markets calmed toward the end of the month. This occurred as a downward revision of first quarter GDP (Gross Domestic Product) growth from 2.4% to 1.8% supported reassurance from the Fed that it would only begin reducing asset purchases if the economy was clearly on track. In China, a sharp spike in interbank lending rates in June further pressured global equity markets. Concerns that the tighter conditions would exacerbate an already slowing Chinese economy weakened commodity prices.

PORTFOLIO REVIEW / PERIOD END POSITIONING

For the six months ended June 30, 2013, stock selection within the Information Technology and Industrials sectors detracted from relative returns, while selection in the Energy and Health Care sectors contributed positively.

Within the Information Technology sector, Altera Corporation was a top detractor from returns. The global semiconductor company announced results for the first quarter of 2013 that fell short of analyst expectations and management provided conservative guidance. We believe there continued to be a degree of seasonality to forward guidance and we maintained our conviction in the company over the long term. This is based on our belief that Altera can continue to gain share against competitors and maintain its strong position in the Programmable Logic Device market. In addition, we expect demand to rise during the second half of 2013 as capital expenditures in the semiconductor industry increase alongside a more favorable macro environment. Within the Industrials sector, Owens Corning, a building materials company, was a top detractor from returns. Its shares fell in mid-February after the company guided earnings lower than consensus, which we believe was driven by increased competition and weak pricing in their composites business. Despite this setback, we think the company’s business fundamentals are strong, especially for insulation and roofing which are being driven by a recovering housing market, replacement demand and energy efficient upgrades. As volumes increase, we believe the company can improve margins significantly due to better pricing, and at period end we found the valuation compelling.

Within the Energy sector, EQT Corporation, a leading and integrated energy company with an emphasis on Appalachian area natural gas production, gathering, transmission and distribution, was a top contributor to returns for the first half of 2013. We believe that the company possesses a strong midstream business and has diversified revenue exposure through its extensive natural gas business in the Marcellus Shale, the lowest-cost natural gas basin in North America. Its shares have risen due to positive reserve data from its Marcellus drilling program and continued benefits from the initial public offering of its midstream master limited partnership. Its shares also rose after EQT agreed to purchase additional acreage in southwestern Pennsylvania and 10 horizontal Marcellus wells from Chesapeake Energy for approximately $113 million, which we viewed positively. We believe EQT also plans to further build out its midstream assets, and we were confident in management’s ability to effectively allocate capital across its three primary business units. Within the Health Care sector, Vertex Pharmaceuticals Inc. was a top contributor to performance. Supportive trial data was released on one of its cystic fibrosis drugs, currently in the development phase, causing its shares to spike as potential for regulatory approval of the treatment seems to have increased. We believe Vertex Pharmaceuticals has an attractive

 

MIST-1

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Managed by Goldman Sachs Asset Management, L.P.

Portfolio Manager Commentary*—(Continued)

 

risk/reward profile and is well positioned to grow its addressable market through its Cystic Fibrosis franchise. At period end, we continued to believe the value of Vertex Pharmaceuticals’ Hepatitis-C franchise is underestimated by the market, which could lead to significant upside for the stock. In our view, Vertex Pharmaceuticals has a robust pipeline of new treatments and maintains a healthy balance sheet that should help fund research on additional therapies.

Andrew Braun

Dolores Bamford

Sean Gallagher

Portfolio Managers

Goldman Sachs Asset Management, L.P.

 

MIST-2

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP VALUE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
Goldman Sachs Mid Cap Value Portfolio                      

Class A

        15.43           27.10           7.06           9.11   

Class B

        15.28           26.77           6.80           8.84   
Russell Midcap Value Index        16.10           27.65           8.87           9.45   

1 The Russell Midcap Value Index is an unmanaged measure of performance of those Russell Midcap companies (the 800 smallest companies in the Russell 1000 Index) with lower price-to-book ratios and higher forecasted growth values.

2 Inception of the Class A and Class B shares is 5/1/2004. Index returns are based on an inception date of 5/1/2004.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
M&T Bank Corp.      2.0   
Aetna, Inc.      1.9   
Altera Corp.      1.8   
AvalonBay Communities, Inc.      1.7   
SLM Corp.      1.6   
Principal Financial Group, Inc.      1.6   
Invesco, Ltd.      1.5   
Pioneer Natural Resources Co.      1.4   
Juniper Networks, Inc.      1.3   
Sempra Energy      1.3   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Financials      29.7   
Industrials      13.1   
Consumer Discretionary      11.5   
Information Technology      11.0   
Utilities      9.4   
Energy      9.0   
Health Care      8.4   
Materials      4.7   
Consumer Staples      3.2   

 

MIST-3

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Goldman Sachs Mid Cap Value Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

    Actual      0.74 %     $ 1,000.00         $ 1,154.30         $ 3.95   
   Hypothetical*      0.74 %     $ 1,000.00         $ 1,021.13         $ 3.71   

Class B

    Actual      0.99 %     $ 1,000.00         $ 1,152.80         $ 5.28   
   Hypothetical*      0.99 %     $ 1,000.00         $ 1,019.89         $ 4.96   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—99.4% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.7%

  

Textron, Inc.

     315,437      $ 8,217,134   

Triumph Group, Inc.

     108,127        8,558,252   
   

 

 

  
      16,775,386   
   

 

 

  

Auto Components—1.7%

  

Delphi Automotive plc

     194,301        9,849,117   

TRW Automotive Holdings Corp. (a)

     92,138        6,121,649   
   

 

 

  
      15,970,766   
   

 

 

  

Beverages—1.9%

  

Constellation Brands, Inc. - Class A (a)

     161,091        8,396,063   

Monster Beverage Corp. (a)

     165,302        10,045,402   
   

 

 

  
      18,441,465   
   

 

 

  

Biotechnology—0.4%

  

Vertex Pharmaceuticals, Inc. (a)

     48,323        3,859,558   
   

 

 

  

Building Products—1.7%

  

Lennox International, Inc.

     80,499        5,195,405   

Owens Corning (a)

     293,307        11,462,438   
   

 

 

  
      16,657,843   
   

 

 

  

Capital Markets—3.6%

  

Invesco, Ltd.

     446,419        14,196,124   

Lazard, Ltd. - Class A

     170,590        5,484,468   

Northern Trust Corp.

     205,184        11,880,154   

Raymond James Financial, Inc.

     59,857        2,572,654   
   

 

 

  
      34,133,400   
   

 

 

  

Chemicals—1.0%

  

Celanese Corp. - Series A

     218,405        9,784,544   
   

 

 

  

Commercial Banks—5.0%

  

CIT Group, Inc. (a)

     209,903        9,787,777   

First Republic Bank

     165,857        6,382,177   

M&T Bank Corp. (b)

     171,055        19,115,396   

Signature Bank (a)

     63,840        5,299,997   

Zions Bancorporation

     252,110        7,280,937   
   

 

 

  
      47,866,284   
   

 

 

  

Commercial Services & Supplies—0.8%

  

Waste Connections, Inc. (b)

     188,653        7,761,184   
   

 

 

  

Communications Equipment—2.1%

  

Juniper Networks, Inc. (a)

     660,607        12,756,321   

Polycom, Inc. (a)

     679,237        7,159,158   
   

 

 

  
      19,915,479   
   

 

 

  

Computers & Peripherals—1.0%

  

NetApp, Inc. (a)

     257,806        9,739,911   
   

 

 

  

Construction & Engineering—0.9%

  

Jacobs Engineering Group, Inc. (a)

     157,585        8,687,661   
   

 

 

  

Consumer Finance—1.6%

  

SLM Corp.

     692,344      $ 15,826,984   
   

 

 

  

Containers & Packaging—1.1%

  

Packaging Corp. of America

     109,582        5,365,135   

Sealed Air Corp.

     214,243        5,131,120   
   

 

 

  
      10,496,255   
   

 

 

  

Diversified Financial Services—2.0%

  

ING U.S., Inc. (a) (b)

     442,481        11,973,536   

NASDAQ OMX Group, Inc. (The)

     217,535        7,132,973   
   

 

 

  
      19,106,509   
   

 

 

  

Electric Utilities—3.9%

  

Northeast Utilities

     192,538        8,090,447   

OGE Energy Corp.

     76,742        5,233,804   

PPL Corp.

     394,691        11,943,350   

Xcel Energy, Inc.

     430,474        12,199,633   
   

 

 

  
      37,467,234   
   

 

 

  

Electrical Equipment—1.4%

  

Hubbell, Inc. - Class B

     67,102        6,643,098   

Sensata Technologies Holding NV (a)

     193,684        6,759,572   
   

 

 

  
      13,402,670   
   

 

 

  

Electronic Equipment, Instruments & Components—0.5%

  

Amphenol Corp. - Class A

     59,493        4,636,884   
   

 

 

  

Energy Equipment & Services—1.6%

  

Cameron International Corp. (a)

     154,387        9,442,309   

Oil States International, Inc. (a)

     62,423        5,782,867   
   

 

 

  
      15,225,176   
   

 

 

  

Food Products—1.3%

  

Hain Celestial Group, Inc. (The) (a) (b)

     71,842        4,667,575   

Ingredion, Inc.

     109,917        7,212,753   

Tyson Foods, Inc. - Class A

     33,735        866,315   
   

 

 

  
      12,746,643   
   

 

 

  

Gas Utilities—0.6%

  

Questar Corp.

     243,629        5,810,552   
   

 

 

  

Health Care Equipment & Supplies—1.9%

  

Boston Scientific Corp. (a)

     648,569        6,012,235   

Hologic, Inc. (a)

     618,532        11,937,667   
   

 

 

  
      17,949,902   
   

 

 

  

Health Care Providers & Services—4.4%

  

Aetna, Inc.

     289,965        18,424,376   

Cardinal Health, Inc.

     250,719        11,833,937   

Humana, Inc.

     140,090        11,820,794   
   

 

 

  
      42,079,107   
   

 

 

  

Hotels, Restaurants & Leisure—1.8%

  

MGM Resorts International (a) (b)

     609,594        9,009,799   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Hotels, Restaurants & Leisure—(Continued)

  

Starwood Hotels & Resorts Worldwide, Inc.

     127,560      $ 8,060,517   
   

 

 

  
      17,070,316   
   

 

 

  

Household Durables—1.9%

  

Toll Brothers, Inc. (a)

     301,641        9,842,546   

Whirlpool Corp.

     77,115        8,818,871   
   

 

 

  
      18,661,417   
   

 

 

  

Independent Power Producers & Energy Traders—1.0%

  

Calpine Corp. (a)

     452,046        9,596,937   
   

 

 

  

Industrial Conglomerates—1.0%

  

Carlisle Cos., Inc.

     157,797        9,832,331   
   

 

 

  

Insurance—8.2%

  

Everest Re Group, Ltd.

     77,456        9,934,507   

Genworth Financial, Inc. - Class A (a)

     725,411        8,276,939   

Hartford Financial Services Group, Inc.

     324,239        10,025,470   

Lincoln National Corp.

     62,202        2,268,507   

Markel Corp. (a)

     12,942        6,819,787   

Principal Financial Group, Inc.

     402,427        15,070,891   

W.R. Berkley Corp.

     180,095        7,358,682   

Willis Group Holdings plc (b)

     232,916        9,498,314   

XL Group plc

     311,891        9,456,535   
   

 

 

  
      78,709,632   
   

 

 

  

Internet & Catalog Retail—1.8%

  

Expedia, Inc.

     92,159        5,543,364   

Liberty Interactive Corp. - Class A (a)

     530,148        12,198,705   
   

 

 

  
      17,742,069   
   

 

 

  

IT Services—2.1%

  

Computer Sciences Corp.

     135,708        5,939,939   

Fidelity National Information Services, Inc.

     220,720        9,455,645   

Teradata Corp. (a)

     96,761        4,860,305   
   

 

 

  
      20,255,889   
   

 

 

  

Life Sciences Tools & Services—0.9%

  

Agilent Technologies, Inc.

     205,432        8,784,272   
   

 

 

  

Machinery—5.4%

  

Flowserve Corp. (b)

     148,368        8,013,356   

Parker Hannifin Corp.

     130,380        12,438,252   

Stanley Black & Decker, Inc.

     162,220        12,539,606   

Timken Co.

     194,005        10,918,601   

Xylem, Inc.

     310,583        8,367,106   
   

 

 

  
      52,276,921   
   

 

 

  

Media—1.9%

  

Liberty Media Corp. - Class A (a)

     98,831        12,527,817   

Scripps Networks Interactive, Inc. - Class A

     87,647        5,851,314   
   

 

 

  
      18,379,131   
   

 

 

  

Metals & Mining—1.9%

  

Carpenter Technology Corp.

     175,621      $ 7,915,239   

Reliance Steel & Aluminum Co.

     154,586        10,134,658   
   

 

 

  
      18,049,897   
   

 

 

  

Multi-Utilities—3.9%

  

CMS Energy Corp.

     312,016        8,477,475   

NiSource, Inc.

     247,807        7,097,192   

SCANA Corp.

     185,030        9,084,973   

Sempra Energy

     154,760        12,653,178   
   

 

 

  
      37,312,818   
   

 

 

  

Multiline Retail—1.0%

  

Macy’s, Inc.

     191,274        9,181,152   
   

 

 

  

Oil, Gas & Consumable Fuels—7.3%

  

Chesapeake Energy Corp.

     533,500        10,872,730   

Concho Resources, Inc. (a)

     109,506        9,167,842   

EQT Corp.

     102,808        8,159,871   

HollyFrontier Corp.

     48,230        2,063,279   

Pioneer Natural Resources Co.

     90,193        13,055,437   

Range Resources Corp.

     118,846        9,189,173   

Southwestern Energy Co. (a)

     239,545        8,750,579   

Tesoro Corp.

     177,949        9,310,292   
   

 

 

  
      70,569,203   
   

 

 

  

Paper & Forest Products—0.7%

  

International Paper Co.

     142,743        6,324,942   
   

 

 

  

Pharmaceuticals—0.8%

  

Mylan, Inc. (a)

     241,063        7,480,185   
   

 

 

  

Real Estate Investment Trusts—9.2%

  

Alexandria Real Estate Equities, Inc.

     138,037        9,071,792   

AvalonBay Communities, Inc.

     122,338        16,504,620   

Camden Property Trust

     86,167        5,957,586   

DDR Corp. (b)

     375,220        6,247,413   

Digital Realty Trust, Inc. (b)

     155,820        9,505,020   

MFA Financial, Inc.

     713,933        6,032,734   

Starwood Property Trust, Inc.

     259,158        6,414,161   

Tanger Factory Outlet Centers, Inc.

     223,707        7,485,236   

Taubman Centers, Inc.

     89,081        6,694,437   

Two Harbors Investment Corp. (b)

     686,729        7,038,972   

Ventas, Inc.

     101,320        7,037,687   
   

 

 

  
      87,989,658   
   

 

 

  

Semiconductors & Semiconductor Equipment—4.3%

  

Altera Corp.

     537,057        17,717,510   

Avago Technologies, Ltd.

     129,490        4,840,336   

KLA-Tencor Corp.

     113,896        6,347,424   

Lam Research Corp. (a)

     282,905        12,544,008   
   

 

 

  
      41,449,278   
   

 

 

  

Software—0.9%

  

PTC, Inc. (a)

     370,158        9,079,976   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Specialty Retail—0.4%

  

AutoZone, Inc. (a)

     8,538      $ 3,617,465   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.9%

  

PVH Corp.

     72,457        9,060,748   
   

 

 

  

Total Common Stocks
(Cost $848,758,607)

       955,765,634   
   

 

 

  
Short-Term Investments—5.6%   

Mutual Fund—4.3%

  

State Street Navigator Securities Lending MET Portfolio (c)

     41,023,667        41,023,667   
   

 

 

  

Repurchase Agreement—1.3%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $12,527,010 on 07/01/13, collateralized by $12,895,000 Federal National Mortgage Association at 1.010% due 07/26/17 with a value of $12,782,169.

     12,527,000        12,527,000   
   

 

 

  

Total Short-Term Investments
(Cost $53,550,667)

       53,550,667   
   

 

 

  

Total Investments—105.0%
(Cost $902,309,274) (d)

       1,009,316,301   

Other assets and liabilities (net)—(5.0)%

       (48,227,266 ) 
   

 

 

  
Net Assets—100.0%     $ 961,089,035   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $40,179,050 and the collateral received consisted of cash in the amount of $41,023,667. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $902,309,274. The aggregate unrealized appreciation and depreciation of investments were $118,567,506 and $(11,560,479), respectively, resulting in net unrealized appreciation of $107,007,027.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 955,765,634       $ —        $ —         $ 955,765,634   
Short-Term Investments           

Mutual Fund

      41,023,667         —          —           41,023,667   

Repurchase Agreement

      —           12,527,000        —           12,527,000   

Total Short-Term Investments

      41,023,667         12,527,000        —           53,550,667   

Total Investments

    $ 996,789,301       $ 12,527,000      $ —         $ 1,009,316,301   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (41,023,667 )    $ —         $ (41,023,667 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,009,316,301   

Cash

      263   

Receivable for:

   

Investments sold

      19,545,564   

Fund shares sold

      228,150   

Dividends and interest

      1,605,243   
  

 

 

  

Total Assets

      1,030,695,521   

Liabilities

   

Payables for:

   

Investments purchased

      27,315,096   

Fund shares redeemed

      530,198   

Collateral for securities loaned

      41,023,667   

Accrued Expenses:

   

Management fees

      564,170   

Distribution and service fees

      41,379   

Deferred trustees’ fees

      41,001   

Other expenses

      90,975   
  

 

 

  

Total Liabilities

      69,606,486   
  

 

 

  

Net Assets

    $ 961,089,035   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 749,563,243   

Undistributed net investment income

      4,055,577   

Accumulated net realized gain

      100,463,188   

Unrealized appreciation on investments

      107,007,027   
  

 

 

  

Net Assets

    $ 961,089,035   
  

 

 

  

Net Assets

   

Class A

    $ 760,664,384   

Class B

      200,424,651   

Capital Shares Outstanding*

   

Class A

      49,325,716   

Class B

      13,012,885   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 15.42   

Class B

      15.40   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $902,309,274.
(b) Includes securities loaned at value of $40,179,050.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends

    $ 7,646,760   

Interest

      670   

Securities lending income

      73,206   
  

 

 

  

Total investment income

      7,720,636   

Expenses

   

Management fees

      3,235,748   

Administration fees

      11,508   

Custodian and accounting fees

      43,917   

Distribution and service fees—Class B

      243,666   

Audit and tax services

      19,511   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      20,637   

Insurance

      2,515   

Miscellaneous

      4,632   
  

 

 

  

Total expenses

      3,605,256   

Less broker commission recapture

      (36,021 ) 
  

 

 

  

Net expenses

      3,569,235   
  

 

 

  

Net Investment Income

      4,151,401   
  

 

 

  

Net Realized and Unrealized Gain

   

Net realized gain on investments

      103,301,416   
  

 

 

  

Net change in unrealized appreciation on investments

      19,526,425   
  

 

 

  

Net realized and unrealized gain

      122,827,841   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 126,979,242   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 4,151,401      $ 10,794,147   

Net realized gain

      103,301,416        39,878,828   

Net change in unrealized appreciation

      19,526,425        78,024,278   
  

 

 

    

 

 

  

Increase in net assets from operations

      126,979,242        128,697,253   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (8,515,979 )      (4,973,239 ) 

Class B

      (1,812,117 )      (1,013,625 ) 

Net realized capital gains

     

Class A

      (27,403,374 )      0   

Class B

      (7,198,478 )      0   
  

 

 

    

 

 

  

Total distributions

      (44,929,948 )      (5,986,864 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      59,314,240        2,942,681   
  

 

 

    

 

 

  

Total Increase in Net Assets

      141,363,534        125,653,070   

Net Assets

     

Beginning of period

      819,725,501        694,072,431   
  

 

 

    

 

 

  

End of period

    $ 961,089,035      $ 819,725,501   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 4,055,577      $ 10,232,272   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      5,215,599      $ 81,225,915        4,608,500      $ 60,201,183   

Reinvestments

      2,463,604        35,919,353        383,441        4,973,239   

Redemptions

      (4,175,814 )      (64,318,860 )      (3,426,497 )      (45,783,868 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      3,503,389      $ 52,826,408        1,565,444      $ 19,390,554   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,218,456      $ 18,364,665        961,054      $ 12,643,676   

Reinvestments

      618,859        9,010,595        78,152        1,013,625   

Redemptions

      (1,361,874 )      (20,887,428 )      (2,287,923 )      (30,105,174 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      475,441      $ 6,487,832        (1,248,717 )    $ (16,447,873 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 59,314,240        $ 2,942,681   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 14.05      $ 11.96       $ 12.82       $ 10.41       $ 7.99       $ 13.57   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.07        0.19         0.13         0.09         0.14         0.17   

Net realized and unrealized gain (loss) on investments

      2.06        2.01         (0.91 )       2.45         2.42         (4.65 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      2.13        2.20         (0.78 )       2.54         2.56         (4.48 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.18 )      (0.11 )       (0.08 )       (0.13 )       (0.14 )       (0.13 ) 

Distributions from net realized capital gains

      (0.58 )      0.00         0.00         0.00         0.00         (0.97 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.76 )      (0.11 )       (0.08 )       (0.13 )       (0.14 )       (1.10 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.42      $ 14.05       $ 11.96       $ 12.82       $ 10.41       $ 7.99   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      15.43  (c)      18.46         (6.13 )       24.56         32.67         (35.92 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.74  (d)      0.75         0.76         0.77         0.77         0.75   

Net ratio of expenses to average net assets (%) (e)

      0.74  (d)      0.75         0.76         0.77         0.77         0.75   

Ratio of net investment income to average net assets (%)

      0.97  (d)      1.45         1.05         0.85         1.64         1.56   

Portfolio turnover rate (%)

      60  (c)      81         74         98         116         99   

Net assets, end of period (in millions)

    $ 760.7      $ 643.9       $ 529.5       $ 432.6       $ 409.4       $ 278.9   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012
      2011
      2010
      2009
      2008
  

Net Asset Value, Beginning of Period

    $ 14.02      $ 11.94       $ 12.80       $ 10.40       $ 7.97       $ 13.53   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.05        0.16         0.10         0.07         0.12         0.14   

Net realized and unrealized gain (loss) on investments

      2.05        2.00         (0.90 )       2.44         2.42         (4.64 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      2.10        2.16         (0.80 )       2.51         2.54         (4.50 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.14 )      (0.08 )       (0.06 )       (0.11 )       (0.11 )       (0.09 ) 

Distributions from net realized capital gains

      (0.58 )      0.00         0.00         0.00         0.00         (0.97 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.72 )      (0.08 )       (0.06 )       (0.11 )       (0.11 )       (1.06 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.40      $ 14.02       $ 11.94       $ 12.80       $ 10.40       $ 7.97   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      15.28  (c)      18.12         (6.29 )       24.23         32.30         (36.07 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.99  (d)      1.00         1.01         1.02         1.02         1.01   

Net ratio of expenses to average net assets (%) (e)

      0.99  (d)      1.00         1.01         1.02         1.02         1.00   

Ratio of net investment income to average net assets (%)

      0.72  (d)      1.18         0.78         0.64         1.37         1.26   

Portfolio turnover rate (%)

      60  (c)      81         74         98         116         99   

Net assets, end of period (in millions)

    $ 200.4      $ 175.8       $ 164.6       $ 147.8       $ 109.7       $ 97.1   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Goldman Sachs Mid Cap Value Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-13

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to broker commission recapture and Real Estate Investment Trusts (REITs). These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $12,527,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities

 

MIST-14

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 571,296,760       $ 0       $ 537,480,919   

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $13,712,676 in purchases of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Goldman Sachs Asset Management, L.P. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$3,235,748      0.750 %    First $200 million
     0.700 %    Over $200 million

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf

 

MIST-15

Met Investors Series Trust

Goldman Sachs Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

Affiliated Broker - During the six months ended June 30, 2013 the Portfolio paid brokerage commissions to affiliated brokers/dealers:

 

Affiliate

    Commission  
Goldman Sachs & Co.    $ 32,090   

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$5,986,864    $ 3,686,711       $ —       $ —       $ 5,986,864       $ 3,686,711   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$17,629,390    $ 27,098,448       $ 84,784,287       $ —       $ 129,512,125   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-16

Met Investors Series Trust

Harris Oakmark International Portfolio

Managed by Harris Associates L.P.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the Harris Oakmark International Portfolio returned 9.47%, 9.36%, and 9.41%, respectively. The Portfolio’s benchmark, the MSCI EAFE Index1, returned 4.10%.

MARKET ENVIRONMENT / CONDITIONS

As we reach the midpoint of the year, we continue to see the repeating theme of investors mindlessly reacting to macroeconomic events. Issues such as the financial condition of global banks, incidents in Greece and Cyprus and monetary instability in the European Union have all been causes of investor distraction. This has resulted in a persistent cloud of fear that has depressed equity market valuations, while inflating valuations in which some consider to be safe global fixed income. The current situation has also been seasoned by ultra-aggressive monetary easing especially in the U.S., the United Kingdom (“U.K.”) and now Japan, resulting in investor anxiety surrounding the end of these policies.

Despite persistent macroeconomic challenges, we believe the environment for corporate profitability remains acceptable. Businesses are still building profits, albeit at a less than robust pace. However, corporate profits and thus company valuations are positively impacted by policies that lead to sustainable growth. While markets seem focused on macroeconomics, we continue to believe the key to improving global economic growth is microeconomic restructuring. This includes labor market reform and changes to social security systems as suggested by the Bank of International Settlements, the central bank to the world’s central banks. Specific structural changes are being considered by policymakers in Italy and Japan, while China is already slowing the expansion of aggressive lending by limiting liquidity growth in its financial system as a whole.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio outperformed its benchmark, the MSCI EAFE Index, mainly due to stock selection. Country weightings also added relative value for the period. Holdings in the U.K., followed by Germany and France, produced the best relative results. Holdings in Australia had the most negative effect for the period. Currency hedging added 1.32% to the Portfolio’s return for the period. Currencies hedged in the Portfolio are the Australian Dollar (“AUD”), Swiss Franc, Swedish Krona and Japanese Yen (“JPY”). We continue to view these currencies as overvalued based on purchasing-power parity. Therefore, as-of June 30, 2013 we still held our hedge positions to offset the risks associated with owning overvalued foreign currencies. Currency hedges are implemented by way of currency forward contracts.

Individual holdings Daiwa Securities Group (Japan) and Olympus (Japan) had the most positive impact on performance during the period. Daiwa’s results over the past two quarters have been healthy and the company’s fiscal 2012 results were strong. Net operating revenues increased 24%, and operating expenses decreased about 7% from the same period last year. The retail unit performed particularly well, as revenues increased 16% for the year and were 44% higher compared with the previous quarter. Operating profit in the retail unit rose 72% versus 2011, and operating margins were better than our estimates. These business successes, combined with the weakened JPY and the strengthened Japanese equity market, reinforce our view that Daiwa is a solid long-term investment for its shareholders.

The medical device business at Olympus is performing well and is compensating for the camera business that has been facing some challenges. Early in the year management lowered its annual revenue guidance by JPY 12 billion due to projected losses of JPY 8 billion from the camera business. As revealed by results released in May 2013, the company’s fourth-quarter overall operating profit was in line with expectations, driven by especially robust profits in the core medical business that were over JPY 30 billion for the first time ever. Compared with the same period last year, flexible endoscopes (+22%) and surgical/medical equipment (+9%) revenues (local-currency) remain strong. Although the camera business continues to struggle, management is implementing some strategic changes (e.g. restructuring to cut costs, reducing capital expenditures, improving manufacturing and inventory controls) to bolster this business. We think the company’s president, Hiroyuki Sasa, has made some solid improvements over the past year and remain confident in his leadership.

Holdings in Sweden and Spain imparted the next largest negative impacts on overall performance compared with the benchmark. Orica (Australia) and AMP (Austrailia) had the most negative impact on performance during the period. Orica’s stock price has been negatively impacted by weak demand for explosives in North America. However, early signs of improvement are apparent driven by coal and aggregates. Meanwhile, volume continues to grow in both Australasia and Latin America. Importantly, explosives demand is tied to mine production and extraction, rather than the mining industry’s capital expenditures, which are now in decline. Though Orica’s ground Support business continues to underperform, we believe that the company has recognized the issue and is thoroughly restructuring the business, which will cut costs and promote cross-selling of the company’s products. Finally, in late June Orica announced that, due to health issues, its Chief Financial Officer (CFO) will leave the company in October and will be replaced by an internal successor. Because the company has known about the CFO’s health issues for some time and can utilize a long transition period, we do not find this departure to be concerning. We believe Orica’s recent performance an example of a circumstance we have seen before—when short-term stock price movement does not reflect the fundamentals of the business. We continued to view Orica as an attractive long-term investment.

AMP’s stock price had been advancing early in the year, but dropped significantly late in June after management preannounced its fiscal second-half financial results. The company realized AUD $32 million worth of losses in its Contemporary Wealth Protection (“CWP”) business during the first five months of the year. This news sent the

 

MIST-1

Met Investors Series Trust

Harris Oakmark International Portfolio

Managed by Harris Associates L.P.

Portfolio Manager Commentary*—(Continued)

 

share price tumbling by nearly 13%. In May, the company noted that investor sentiment, market performance and the economic climate were particularly bad in Australia and had driven up claims and lapse rates. Although these problems were well-known, the magnitude of their persistence was surprising. To address the problems in the CWP division, the company is raising its claims assumptions, believing some of its problems are structural. Management also indicated that it will initiate a cost cutting plan. This is encouraging because AMP has successfully cut costs in the past. Finally, the wealth protection division has a new leader, which we think is good step for implementing further improvements.

At period end, the Portfolio held 59 securities across a variety of countries and industries. During the first half of 2013, we initiated new positions in AMP (Australia), BMW, Continental (both Germany), LVMH (France), and SKF (Sweden) and we eliminated Banco Santander (Spain) during the period. In addition, Portfolio holding Kering (formerly PPR) spun off Groupe Fnac and these shares are now held in the Portfolio. As of June 30, 2013 the Portfolio was most heavily weighted in Switzerland (18%) followed by the U.K. (16%) and Japan (15%). The Portfolio had minimal exposure to companies headquartered in emerging market countries (less than 1%).

As of June 30, 2013 the Portfolio was most heavily weighted in the Financials sector (29%), followed by Consumer Discretionary (25%) and Industrials (18%). Health Care (4%) had the smallest sector weight. The Portfolio had no exposure to Energy, Telecommunication Services or Utilities shares throughout the six month period.

David G. Herro

Robert A. Taylor

Portfolio Managers

Harris Associates L.P.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Harris Oakmark International Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE MSCI EAFE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year  
Harris Oakmark International Portfolio                      

Class A

        9.47           34.69           10.01           11.09   

Class B

        9.36           34.46           9.75           10.81   

Class E

        9.41           34.58           9.84           10.93   
MSCI EAFE Index        4.10           18.62           -0.63           7.67   

1 The MSCI Europe, Australasia and Far East Index (“MSCI EAFE Index”) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

 

Top Holdings

 

     % of
Net Assets		  
Credit Suisse Group AG      5.0   
Daimler AG      4.1   
BNP Paribas S.A.      3.6   
Intesa Sanpaolo S.p.A.      3.6   
Lloyds Banking Group plc      3.1   
Allianz SE      3.0   
Fiat Industrial S.p.A.      2.8   
Orica, Ltd.      2.7   
Kuehne & Nagel International AG      2.6   
Daiwa Securities Group, Inc.      2.6   

Top Countries

 

     % of
Market Value of
Total Investments		  
Switzerland      17.9   
United Kingdom      16.5   
Japan      14.6   
France      11.2   
Germany      11.0   
Italy      6.5   
Australia      5.4   
Netherlands      5.2   
Sweden      5.0   
United States      2.3   

 

MIST-3

Met Investors Series Trust

Harris Oakmark International Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Harris Oakmark International Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.80 %     $ 1,000.00         $ 1,094.70         $ 4.15   
   Hypothetical*      0.80 %     $ 1,000.00         $ 1,020.83         $ 4.01   

Class B(a)

    Actual      1.05 %     $ 1,000.00         $ 1,093.60         $ 5.45   
   Hypothetical*      1.05 %     $ 1,000.00         $ 1,019.59         $ 5.26   

Class E(a)

    Actual      0.95 %     $ 1,000.00         $ 1,094.10         $ 4.93   
   Hypothetical*      0.95 %     $ 1,000.00         $ 1,020.08         $ 4.76   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

Harris Oakmark International Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—96.2% of Net Assets

 

Security Description   Shares     Value  
   

Australia—5.3%

  

Amcor, Ltd.

     2,367,610      $ 21,871,916   

AMP, Ltd.

     16,629,182        64,245,624   

Orica, Ltd. (a)

     4,605,828        86,581,385   
   

 

 

  
      172,698,925   
   

 

 

  

Canada—2.0%

  

Thomson Reuters Corp. (a)

     1,965,200        64,130,136   
   

 

 

  

France—11.0%

  

BNP Paribas S.A.

     2,123,687        116,031,325   

Christian Dior S.A.

     192,071        30,858,401   

Danone S.A.

     760,300        57,023,047   

Groupe FNAC (b)

     35,866        760,963   

Kering

     314,700        63,701,011   

LVMH Moet Hennessy Louis Vuitton S.A.

     203,800        32,819,209   

Publicis Groupe S.A. (a)

     767,100        54,395,398   
   

 

 

  
      355,589,354   
   

 

 

  

Germany—10.8%

  

Allianz SE

     655,400        95,714,819   

Bayerische Motoren Werke (BMW) AG

     950,700        83,057,879   

Continental AG

     196,900        26,235,627   

Daimler AG

     2,193,200        132,561,280   

SAP AG

     146,400        10,720,270   
   

 

 

  
      348,289,875   
   

 

 

  

Ireland—1.1%

  

Bank of Ireland (a) (b)

     20,946,500        4,274,361   

Experian plc

     1,858,700        32,238,292   
   

 

 

  
      36,512,653   
   

 

 

  

Israel—2.1%

  

Check Point Software Technologies, Ltd. (a) (b)

     1,354,400        67,286,592   
   

 

 

  

Italy—6.4%

  

Fiat Industrial S.p.A. (a)

     8,224,500        91,617,795   

Intesa Sanpaolo S.p.A.

     72,455,400        115,937,449   
   

 

 

  
      207,555,244   
   

 

 

  

Japan—14.4%

  

Canon, Inc. (a)

     2,564,700        84,234,232   

Daiwa Securities Group, Inc.

     10,042,000        84,359,172   

FANUC Corp.

     70,500        10,223,006   

Honda Motor Co., Ltd.

     1,863,200        69,237,377   

Meitec Corp.

     657,100        15,299,877   

Olympus Corp. (b)

     1,419,900        43,170,792   

Omron Corp.

     1,653,600        49,343,266   

Rohm Co., Ltd.

     1,068,500        43,099,700   

Secom Co., Ltd.

     364,300        19,836,988   

Toyota Motor Corp.

     759,300        45,847,513   
   

 

 

  
      464,651,923   
   

 

 

  

Mexico—0.2%

  

Grupo Televisa S.A.B. (ADR)

     211,266        5,247,847   
   

 

 

  
   

Netherlands—5.1%

  

Akzo Nobel NV (a)

     1,052,962        59,146,207   

Heineken Holding NV

     247,700      $ 13,875,088   

Koninklijke Ahold NV

     2,289,600        34,014,822   

Koninklijke Philips NV

     2,125,041        57,882,893   
   

 

 

  
      164,919,010   
   

 

 

  

Sweden—5.0%

  

Assa Abloy AB-Class B

     276,200        10,767,195   

Atlas Copco AB-B Shares

     2,055,900        43,851,129   

Hennes & Mauritz AB-B Shares (a)

     2,048,500        67,076,415   

SKF AB-B Shares (a)

     1,655,100        38,572,322   
   

 

 

  
      160,267,061   
   

 

 

  

Switzerland—17.6%

  

Adecco S.A. (a) (b)

     1,344,144        76,300,085   

Compagnie Financiere Richemont S.A.-Class A

     712,700        62,519,197   

Credit Suisse Group AG (b)

     6,061,093        160,695,871   

Geberit AG

     21,200        5,248,677   

Givaudan S.A. (b)

     19,000        24,534,672   

Holcim, Ltd. (b)

     907,900        63,355,491   

Kuehne & Nagel International AG (a)

     771,700        84,608,730   

Nestle S.A.

     942,000        61,612,851   

Novartis AG

     362,100        25,661,812   

Roche Holding AG

     13,200        3,270,754   
   

 

 

  
      567,808,140   
   

 

 

  

United Kingdom—15.2%

  

Diageo plc

     2,205,400        63,258,006   

GlaxoSmithKline plc

     1,486,700        37,192,509   

Lloyds Banking Group plc (b)

     104,394,100        100,642,172   

Schroders plc (a)

     1,900,289        62,676,776   

Signet Jewelers, Ltd.

     261,092        17,605,434   

Smiths Group plc (a)

     2,790,200        55,672,210   

TESCO plc

     12,234,400        61,480,482   

Willis Group Holdings plc

     2,041,300        83,244,214   

Wolseley plc

     221,122        10,234,087   
   

 

 

  
      492,005,890   
   

 

 

  

Total Common Stocks
(Cost $2,792,620,347)

       3,106,962,650   
   

 

 

  
Rights—0.0%   

France—0.0%

  

  

Groupe FNAC, Expires 05/16/2015 (a) (b) (Cost $0)

     4        11   
   

 

 

  
Short-Term Investments—7.8%   

Mutual Fund—5.6%

  

  

State Street Navigator Securities Lending MET Portfolio (c)

     180,775,544        180,775,544   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Harris Oakmark International Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  
   

Repurchase Agreement—2.2%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $71,311,059 on 07/01/13, collateralized by $74,130,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $72,740,063.

     71,311,000      $ 71,311,000   
   

 

 

  

Total Short-Term Investments
(Cost $252,086,544)

       252,086,544   
   

 

 

  

Total Investments—104.0%
(Cost $3,044,706,891) (d)

       3,359,049,205   

Other assets and liabilities (net)—(4.0)%

       (129,909,192 ) 
   

 

 

  
Net Assets—100.0%     $ 3,229,140,013   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $240,183,125 and the collateral received consisted of cash in the amount of $180,775,544 and non-cash collateral with a value of $73,102,271. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $3,044,706,891. The aggregate unrealized appreciation and depreciation of investments were $424,951,298 and $(110,608,984), respectively, resulting in net unrealized appreciation of $314,342,314.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.

 

Ten Largest Industries as of
June 30, 2013 (Unaudited)

   

% of
Net Assets

  

Commercial Banks

      10.4   

Automobiles

      10.3   

Capital Markets

      9.5   

Insurance

      7.5   

Textiles, Apparel & Luxury Goods

      5.9   

Machinery

      5.7   

Chemicals

      5.3   

Professional Services

      3.8   

Media

      3.8   

Food Products

      3.7   

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy       

Counterparty

     

Settlement Date

      In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
  CHF      45,000,000         State Street Bank and Trust      09/18/13      $ 46,334,431         $ 1,340,598   
SEK       34,700,000         State Street Bank and Trust      09/18/13        5,312,309           (146,886 ) 
Contracts to Deliver                                  
  AUD    100,400,000         State Street Bank and Trust      12/18/13      $ 102,136,920         $ 11,388,158   
  CHF    165,300,000         State Street Bank and Trust      09/18/13        179,439,861           4,313,586   
  JPY 4,500,000,000         State Street Bank and Trust      08/19/13        47,448,834           2,067,982   
  SEK    128,000,000         State Street Bank and Trust      09/18/13        19,209,989           155,981   
  SEK    121,000,000         State Street Bank and Trust      09/18/13        18,202,605           190,613   
  SEK      55,000,000         State Street Bank and Trust      09/18/13        8,167,265           (20,004 ) 
                   

 

 

  

 

Net Unrealized Appreciation

  

      $ 19,290,028   
                   

 

 

  

 

(AUD)— Australian Dollar
(CHF)— Swiss Franc
(JPY)— Japanese Yen
(SEK)— Swedish Krona

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Harris Oakmark International Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Australia

    $ —         $ 172,698,925      $ —         $ 172,698,925   

Canada

      64,130,136         —          —           64,130,136   

France

      —           355,589,354        —           355,589,354   

Germany

      —           348,289,875        —           348,289,875   

Ireland

      —           36,512,653        —           36,512,653   

Israel

      67,286,592         —          —           67,286,592   

Italy

      —           207,555,244        —           207,555,244   

Japan

      —           464,651,923        —           464,651,923   

Mexico

      5,247,847         —          —           5,247,847   

Netherlands

      —           164,919,010        —           164,919,010   

Sweden

      —           160,267,061        —           160,267,061   

Switzerland

      —           567,808,140        —           567,808,140   

United Kingdom

      100,849,648         391,156,242        —           492,005,890   

Total Common Stocks

      237,514,223         2,869,448,427        —           3,106,962,650   

Total Rights*

      —           11        —           11   
Short-Term Investments           

Mutual Fund

      180,775,544         —          —           180,775,544   

Repurchase Agreement

      —           71,311,000        —           71,311,000   

Total Short-Term Investments

      180,775,544         71,311,000        —           252,086,544   

Total Investments

    $ 418,289,767       $ 2,940,759,438      $ —         $ 3,359,049,205   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (180,775,544 )    $ —         $ (180,775,544 ) 
Forward Contracts           

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —         $ 19,456,918      $ —         $ 19,456,918   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —           (166,890 )      —           (166,890 ) 

Total Forward Contracts

    $ —         $ 19,290,028      $ —         $ 19,290,028   

 

* See Schedule of Investments for additional detailed categorizations
.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Harris Oakmark International Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 3,359,049,205   

Cash

      812   

Cash denominated in foreign currencies (c)

      483,995   

Unrealized appreciation on forward foreign currency exchange contracts

      19,456,918   

Receivable for:

   

Investments sold

      41,944,901   

Fund shares sold

      776,809   

Dividends

      11,266,733   
  

 

 

  

Total Assets

      3,432,979,373   

Liabilities

   

Payables for:

   

Investments purchased

      18,713,119   

Fund shares redeemed

      1,246,358   

Unrealized depreciation on forward foreign currency exchange contracts

      166,890   

Collateral for securities loaned

      180,775,544   

Accrued Expenses:

   

Management fees

      2,037,948   

Distribution and service fees

      258,570   

Deferred trustees’ fees

      41,001   

Other expenses

      599,930   
  

 

 

  

Total Liabilities

      203,839,360   
  

 

 

  

Net Assets

    $ 3,229,140,013   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 2,827,999,823   

Undistributed net investment income

      32,527,271   

Accumulated net realized gain

      35,246,023   

Unrealized appreciation on investments and foreign currency transactions

      333,366,896   
  

 

 

  

Net Assets

    $ 3,229,140,013   
  

 

 

  

Net Assets

   

Class A

    $ 1,947,481,246   

Class B

      1,154,704,292   

Class E

      126,954,475   

Capital Shares Outstanding*

   

Class A

      121,591,636   

Class B

      73,133,120   

Class E

      7,997,449   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 16.02   

Class B

      15.79   

Class E

      15.87   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $3,044,706,891.
(b) Includes securities loaned at value of $240,183,125.
(c) Identified cost of cash denominated in foreign currencies was $489,734.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 64,968,176   

Interest

      203,655   

Securities lending income

      2,434,055   
  

 

 

  

Total investment income

      67,605,886   

Expenses

   

Management fees

      12,566,144   

Administration fees

      41,172   

Custodian and accounting fees

      679,495   

Distribution and service fees—Class B

      1,443,429   

Distribution and service fees—Class E

      94,986   

Audit and tax services

      24,895   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      81,480   

Insurance

      9,558   

Miscellaneous

      9,050   
  

 

 

  

Total expenses

      14,973,332   

Less management fee waiver

      (285,808 ) 
  

 

 

  

Net expenses

      14,687,524   
  

 

 

  

Net Investment Income

      52,918,362   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      207,583,100   

Foreign currency transactions

      39,776,905   
  

 

 

  

Net realized gain

      247,360,005   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (2,749,321 ) 

Foreign currency transactions

      (1,111,913 ) 
  

 

 

  

Net change in unrealized depreciation

      (3,861,234 ) 
  

 

 

  

Net realized and unrealized gain

      243,498,771   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 296,417,133   
  

 

 

  

 

(a) Net of foreign withholding taxes of $6,480,875.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Harris Oakmark International Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 52,918,362      $ 64,498,121   

Net realized gain

      247,360,005        79,431,654   

Net change in unrealized appreciation (depreciation)

      (3,861,234 )      637,874,142   
  

 

 

    

 

 

  

Increase in net assets from operations

      296,417,133        781,803,917   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (55,521,937 )      (36,645,122 ) 

Class B

      (30,390,349 )      (16,304,255 ) 

Class E

      (3,443,670 )      (1,850,884 ) 
  

 

 

    

 

 

  

Total distributions

      (89,355,956 )      (54,800,261 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (126,415,789 )      (404,342,351 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      80,645,388        322,661,305   

Net Assets

     

Beginning of period

      3,148,494,625        2,825,833,320   
  

 

 

    

 

 

  

End of period

    $ 3,229,140,013      $ 3,148,494,625   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 32,527,271      $ 68,964,865   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      9,310,589      $ 151,237,815        14,633,424      $ 187,870,272   

Reinvestments

      3,595,980        55,521,937        2,867,381        36,645,122   

Redemptions

      (19,438,630 )      (316,045,960 )      (39,274,755 )      (523,077,795 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (6,532,061 )    $ (109,286,208 )      (21,773,950 )    $ (298,562,401 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      4,054,548      $ 64,715,870        6,500,381      $ 81,297,315   

Reinvestments

      1,995,427        30,390,349        1,291,937        16,304,255   

Redemptions

      (7,236,513 )      (114,946,367 )      (14,695,829 )      (192,139,633 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,186,538 )    $ (19,840,148 )      (6,903,511 )    $ (94,538,063 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      705,311      $ 11,272,750        802,938      $ 10,447,573   

Reinvestments

      225,077        3,443,670        145,969        1,850,884   

Redemptions

      (748,370 )      (12,005,853 )      (1,816,718 )      (23,540,344 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      182,018      $ 2,710,567        (867,811 )    $ (11,241,887 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (126,415,789 )      $ (404,342,351 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Harris Oakmark International Portfolio

Financial Highlights

 

Selected per share data                                        
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011     2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 15.06      $ 11.85       $ 13.78      $ 12.05       $ 8.57       $ 17.27   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.27        0.29         0.24        0.16         0.15         0.40   

Net realized and unrealized gain (loss) on investments

      1.15        3.16         (2.17 )      1.83         4.17         (6.46 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.42        3.45         (1.93 )      1.99         4.32         (6.06 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.46 )      (0.24 )       (0.00 )(b)      (0.26 )       (0.84 )       (0.28 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00        0.00         0.00         (2.36 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.46 )      (0.24 )       (0.00 )(b)      (0.26 )       (0.84 )       (2.64 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 16.02      $ 15.06       $ 11.85      $ 13.78       $ 12.05       $ 8.57   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      9.47  (d)      29.47         (13.98 )      16.67         55.46         (40.72 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%)

      0.82  (e)      0.83         0.85        0.85         0.84         0.85   

Net ratio of expenses to average net assets (%) (f)

      0.80  (e)      0.81         0.83        0.84         0.83         0.85   

Ratio of net investment income to average net assets (%)

      3.32  (e)      2.26         1.79        1.33         1.58         3.18   

Portfolio turnover rate (%)

      32  (d)      41         48        51         54         53   

Net assets, end of period (in millions)

    $ 1,947.5      $ 1,929.3       $ 1,775.7      $ 1,479.3       $ 1,082.1       $ 676.3   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011     2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 14.84      $ 11.67       $ 13.61      $ 11.91       $ 8.47       $ 17.09   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.24        0.25         0.21        0.13         0.13         0.36   

Net realized and unrealized gain (loss) on investments

      1.13        3.13         (2.15 )      1.81         4.11         (6.39 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.37        3.38         (1.94 )      1.94         4.24         (6.03 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.42 )      (0.21 )       0.00        (0.24 )       (0.80 )       (0.23 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00        0.00         0.00         (2.36 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.42 )      (0.21 )       0.00        (0.24 )       (0.80 )       (2.59 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.79      $ 14.84       $ 11.67      $ 13.61       $ 11.91       $ 8.47   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      9.36  (d)      29.25         (14.25 )      16.42         55.06         (40.88 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%)

      1.07  (e)      1.08         1.10        1.10         1.09         1.10   

Net ratio of expenses to average net assets (%) (f)

      1.05  (e)      1.06         1.08        1.09         1.08         1.10   

Ratio of net investment income to average net assets (%)

      3.08  (e)      1.98         1.60        1.07         1.30         2.93   

Portfolio turnover rate (%)

      32  (d)      41         48        51         54         53   

Net assets, end of period (in millions)

    $ 1,154.7      $ 1,102.6       $ 948.2      $ 975.9       $ 710.5       $ 433.4   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Harris Oakmark International Portfolio

Financial Highlights

 

Selected per share data                                         
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 14.92      $ 11.74       $ 13.67       $ 11.96       $ 8.50       $ 17.14   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.25        0.27         0.23         0.15         0.13         0.38   

Net realized and unrealized gain (loss) on investments

      1.14        3.13         (2.16 )       1.80         4.14         (6.42 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.39        3.40         (1.93 )       1.95         4.27         (6.04 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.44 )      (0.22 )       0.00         (0.24 )       (0.81 )       (0.24 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (2.36 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.44 )      (0.22 )       0.00         (0.24 )       (0.81 )       (2.60 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.87      $ 14.92       $ 11.74       $ 13.67       $ 11.96       $ 8.50   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      9.41  (d)      29.27         (14.12 )       16.50         55.27         (40.82 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.97  (e)      0.98         1.00         1.00         0.99         1.00   

Net ratio of expenses to average net assets (%) (f)

      0.95  (e)      0.96         0.98         0.99         0.98         1.00   

Ratio of net investment income to average net assets (%)

      3.19  (e)      2.10         1.74         1.22         1.37         3.07   

Portfolio turnover rate (%)

      32  (d)      41         48         51         54         53   

Net assets, end of period (in millions)

    $ 127.0      $ 116.6       $ 101.9       $ 134.9       $ 126.0       $ 81.5   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Distributions from net investment income were less than $0.01.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Harris Oakmark International Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions. These adjustments have no impact on net assets or the results of operations.

 

MIST-13

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $71,311,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign

 

MIST-14

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &

Liabilities Location

    Fair Value     

Statement of Assets &

Liabilities Location

    Fair
Value		  
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts    $ 19,456,918       Unrealized depreciation on forward foreign currency exchange contracts    $ 166,890   
     

 

 

        

 

 

  

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets in the
Statement of Assets
and Liabilities		      Financial Instrument     Collateral Received      Net Amount  

State Street Bank and Trust

    $ 19,456,918       $ (166,890 )    $ —       $ 19,290,028   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities in the
Statement of Assets
and Liabilities		      Financial Instrument     Collateral Pledged      Net Amount  

State Street Bank and Trust

    $ 166,890       $ (166,890 )    $ —       $ —   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

MIST-15

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ 43,942,637   
  

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ (868,438 ) 
  

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(a)		  

Forward foreign currency transactions

    $ 685,262,183   

 

  (a) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

 

MIST-16

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases      Sales  
U.S. Government      Non U.S. Government      U.S. Government      Non U.S. Government  
$ 0       $ 1,018,809,632       $ 0       $ 1,179,356,892   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Harris Associates L.P. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser

for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$12,566,144      0.850 %    First $100 million
     0.800 %    $100 million to $1 billion
     0.750 %    Over $1 billion

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.025%    Over $1 billion

An identical agreement was in place for the period April 30, 2012 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that

 

MIST-17

Met Investors Series Trust

Harris Oakmark International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income      Long-Term Capital Gain      Total  
2012      2011        2012        2011      2012      2011  
$ 54,800,261       $ 400,513       $ —       $ —       $ 54,800,261       $ 400,513   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income		      Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$ 89,242,814       $ —       $ 235,701,512       $ (130,829,687 )    $ 194,114,639   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2017 were $130,829,687.

 

MIST-18

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the Invesco Balanced-Risk Allocation Portfolio returned -3.34%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

The first half of 2013 was a challenging environment for investors as markets faced headwinds especially in commodities and fixed income. Similar to recent years past, equities came charging out of the gates to post handsome returns as improved sentiment coupled with central bank actions encouraged risk appetite. However, the first quarter of 2013 was not absent volatility which provided opportunity for government bonds to post gains as investors coped with news regarding lower than expected U.S. GDP figures, geopolitical risks and seizure of private bank balances in Cyprus by seeking shelter in safe haven assets. Commodities bucked the trend of past years by diverging from equities and posting losses, especially in the metals and agricultural and livestock complexes.

Capital markets were weak and returns unbalanced during the second quarter as commodities and bonds experienced material declines while select equity markets generated small gains. Losses among commodities were broad based with gold and silver particularly hard hit. The more traditional drivers of demand for gold, such as serving as an inflation hedge and its perceived safe haven status, have diminished or disappeared in the last few months, understandably souring sentiment. Industrial metals and energy-related commodities also succumbed to the selling pressure, partly driven by weakening growth prospects for emerging markets, particularly China. Select agricultural commodities escaped the selling stampede, notably soybean and soymeal. Government bonds continued their selloff from May, which intensified after statements made by Fed Reserve (“Fed”) Chairman Ben Bernanke on June 19th led to fears that the Fed might be turning off the easy-money faucet. The majority of the developed equity markets ended the first half of 2013 in positive territory, despite a June selloff, but Hong Kong finished down, countering the overall favorable trend.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Positive absolute performance from the strategic equity exposures, in addition to a slightly positive impact from active positioning, drove results for the reporting period. Strategic commodity and bond exposures detracted from absolute performance. The Portfolio’s relative underperformance occurred from equity dominated markets in the beginning of the period and was perpetuated by a unique observation of correlations converging across all three asset classes while negatively performing. In this environment, the equity-dominant, risk-concentrated benchmark will tend to outperform the Portfolio’s risk-balanced approach.

Equities were the primary driver of results for the period, but gains were not uniform across all markets. During both the first and second quarter, Japanese and U.S. Equities provided narrow leadership across the major equity markets. Only Hong Kong finished lower for the period, in sympathy with emerging markets equities, which struggled during the period.

Sovereign government bonds, delivered mixed results during the 6-month period. In the first quarter, German Bunds were positive as European investors sought safe haven assets after the Italian elections and during the Cyprus banking crisis. Japanese bonds also performed well in the first quarter, while bonds from the U.K. and Canada posted marginal returns. During the second quarter, government bonds sold off across the globe on the realization that the Fed had now signaled that the timeline has been accelerated for both the reduction and cessation of bond purchasing programs. As a result, all six of the Portfolio’s bond exposures declined with U.S. treasuries and U.K. gilts being the worst performers.

Commodities started the year strong, but sold off as weakness in the Chinese and European economies, a rising dollar and increased supply in agricultural and industrial metal commodities acted in concert to depress prices. Heavy selling in gold and silver began in April and accelerated again in June as the U.S. dollar maintained its strength and inflation fears receded. Industrial metals also performed poorly as concerns grew over credit strains in the Chinese economy. Energy prices declined for the period as well, but losses were concentrated in April and caused by poor global economic data. Agriculture was the smallest detractor in the asset class due to favorable returns in soybeans and soymeal as continued congestion in Brazilian ports constricted supplies and bad weather in the U.S. delayed crop plantings.

Despite near-term challenges, we believe our results are consistent with the market environment and our goal to provide a risk mitigating strategy. Our objective remains the same—construct a risk-balanced strategic allocation and adjust tactically to provide investors with consistent, risk-adjusted returns over time.

Tactical positioning continues to overweight all six of the Portfolio’s equity exposures with Japan and US small caps being granted a slight increase during the latter part of the period. Within government bonds, where after the recent sell-off valuations look more reasonable, the Portfolio remains overweight Bunds, has moved to an overweight in the US and Canada and initiated a neutral stance from previously under-weight in Australia. Agriculture exposure sees overweights in soybeans and soymeal reduced to a neutral weight while the underweight to sugar was increased. Within energy, we increased the Portfolio’s overweights to both WTI and Brent crude, while within the metals complex, we have moved from overweight to underweight in copper and continue to maintain slight overweights to gold and silver.

 

MIST-1

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*—(Continued)

 

Please note that our strategy is principally implemented with derivative instruments that include futures, commodity-linked notes and total return swaps. Therefore, all or most of the performance of the strategy, both positive and negative, can be attributed to these instruments. Derivatives can be a more liquid and cost-effective way to gain exposure to asset classes. Additionally, the leverage used in the strategy is inherent in these instruments.

Scott Wolle

Mark Ahnrud

Chris Devine

Scott Hixon

Christian Ulrich

Portfolio Managers

Invesco Advisers, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
Invesco Balanced-Risk Allocation Portfolio                 

Class B

        -3.34           2.08           2.34   
Dow Jones Moderate Index        4.17           10.56           7.53   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 4/23/2012. Index returns are based on an inception date of 4/23/2012.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

 

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Exposures by Asset Class*

 

     

% of

Net Assets

  
Fixed Income      70.7   
Equities      37.4   
Commodities      27.9   

 

  * The percentages noted above are based on the notional amounts by asset class as a percentage of net assets

 

MIST-3

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Invesco Balanced-Risk Allocation Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)

    Actual      0.89 %     $ 1,000.00         $ 966.60         $ 4.34   
   Hypothetical*      0.89 %     $ 1,000.00         $ 1,020.38         $ 4.46   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 7 of the Notes to Consolidated Financial Statements.

 

MIST-4

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Municipals—5.3% of Net Assets

 

Security Description   Shares/
Principal
Amount*		     Value  

Gainesville & Hall County, GA, Development Authority Revenue

    

0.170%, 03/01/21 (a)

     24,300,000      $ 24,300,000   

Minnesota State Office of Higher Education Revenue

    

0.140%, 08/01/47 (a)

     12,242,000        12,242,000   

University of Virginia Real Estate Foundation

    

0.200%, 07/01/26 (a)

     34,000,000        34,000,000   
   

 

 

  

Total Municipals
(Cost $70,542,000)

       70,542,000   
   

 

 

  
Commodity-Linked Securities—1.9%   

Canadian Imperial Bank of Commerce Commodity Linked EMTN Note, U.S. Federal Funds (Effective) Rate minus 0.040% (linked to Canadian Imperial Bank of Commerce Custom 1 Agriculture Commodity Index multiplied by 2), 11/12/13

     5,725,000        4,579,428   

Canadian Imperial Bank of Commerce Commodity Linked EMTN Note, U.S. Federal Funds (Effective) Rate minus 0.040% (linked to Canadian Imperial Bank of Commerce Custom 1 Agriculture Commodity Index multiplied by 2), 12/13/13

     3,800,000        3,337,540   

Cargill, Inc. Commodity Linked Note, one month LIBOR rate (linked to Monthly Rebalance Commodity Excess Return Index, multiplied by 2), 11/20/13 (144A)

     5,705,000        4,954,681   

Cargill, Inc. Commodity Linked Note, one month LIBOR rate (linked to Monthly Rebalance Commodity Excess Return Index, multiplied by 2), 05/12/14

     11,540,387        12,259,733   
   

 

 

  

Total Commodity-Linked Securities
(Cost $26,770,387)

       25,131,382   
   

 

 

  
Short-Term Investments—88.1%   

Mutual Funds—20.7%

    

Premier Portfolio, Institutional Class 0.040% (b) (c)

     46,623,796        46,623,796   

STIC (Global Series) PLC - U.S. Dollar Liquidity Portfolio, Institutional Class 0.000% (b) (c)

     183,930,848        183,930,848   

STIT-Liquid Assets Portfolio, Institutional Class 0.089% (b) (c)

     46,623,796        46,623,796   
   

 

 

  
      277,178,440   
   

 

 

  

U.S. Treasury—6.8%

  

U.S. Treasury Bills

    

0.030%, 09/05/13 (d)

     4,100,000        4,099,774   

0.069%, 11/07/13 (d)

     23,546,000        23,540,305   

0.081%, 10/24/13 (d) (e)

     26,549,000        26,542,215   

U.S. Treasury—(Continued)

  

U.S. Treasury Bills

    

0.086%, 09/05/13 (d)

     12,700,000      $ 12,698,021   

0.096%, 07/25/13 (d)

     11,500,000        11,499,272   

0.135%, 01/09/14 (d) (e)

     8,100,000        8,094,276   

0.137%, 01/09/14 (d) (e)

     4,100,000        4,097,048   
   

 

 

  
      90,570,911   
   

 

 

  

Commercial Paper—60.6%

  

Alpine Securitization Corp.

    

0.142%, 07/24/13 (d)

     45,000,000        44,995,975   

Banque et Caisse d’Epargne de L’Etat

    

0.172%, 09/06/13 (d)

     35,015,000        35,003,922   

Barton Capital LLC

    

0.270%, 12/03/13 (d)

     39,000,000        39,000,000   

Ciesco LLC

    

0.162%, 07/19/13 (d)

     42,019,000        42,015,638   

Collateralized Commercial Paper II Co. LLC

    

0.183%, 08/05/13 (d)

     16,020,000        16,017,197   

0.297%, 12/30/13 (d)

     10,670,000        10,653,817   

Concord Minutemen Capital Co. LLC

    

0.233%, 08/16/13 (d)

     45,000,000        44,986,775   

CRC Funding LLC

    

0.172%, 07/08/13 (d)

     20,000,000        19,999,339   

Deutsche Bank Financial LLC

    

0.223%, 08/28/13 (d)

     42,030,000        42,015,103   

Gotham Funding Corp.

    

0.183%, 08/02/13 (d)

     40,000,000        39,993,600   

Jupiter Securitization Co. LLC

    

0.274%, 09/12/13 (d)

     22,900,000        22,887,462   

KFW

    

0.173%, 09/13/13 (d)

     27,015,000        27,005,560   

0.193%, 08/15/13 (d)

     4,375,000        4,373,961   

Liberty Street Funding LLC

    

0.142%, 07/16/13 (d)

     42,045,000        42,042,547   

Manhattan Asset Funding Co. LLC

    

0.203%, 08/12/13 (d)

     9,820,000        9,817,709   

Market Street Funding LLC

    

0.142%, 08/15/13 (d)

     27,000,000        26,995,275   

0.162%, 07/22/13 (d)

     9,040,000        9,039,156   

National Australia Funding Delaware, Inc.

    

0.157%, 08/12/13 (d)

     40,000,000        39,992,767   

Natixis US Finance Co. LLC

    

0.162%, 07/19/13 (d)

     8,000,000        7,999,360   

0.252%, 09/03/13 (d)

     35,000,000        34,983,822   

Nieuw Amsterdam Receivables Corp.

    

0.152%, 07/19/13 (d)

     42,000,000        41,996,850   

Nordea North America, Inc.

    

0.178%, 07/08/13 (d)

     30,000        29,999   

0.193%, 07/01/13 (d)

     14,720,000        14,720,000   

Scaldis Capital LLC

    

0.172%, 08/19/13 (d)

     32,450,000        32,442,491   

Societe Generale North America, Inc.

    

0.223%, 08/05/13 (d)

     30,712,000        30,705,431   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-5

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Paper—(Continued)

  

Standard Chartered Bank

    

0.223%, 07/16/13 (d)

     30,000,000      $ 29,997,250   

Svenska Handelsbanken AB

    

0.183%, 08/20/13 (d)

     36,000,000        35,991,000   

Svenska Handelsbanken, Inc.

    

0.205%, 07/17/13 (d)

     9,457,000        9,457,021   

Thunder Bay Funding LLC

    

0.203%, 10/23/13 (d)

     30,000,000        29,981,000   

United Overseas Bank, Ltd.

    

0.183%, 09/10/13 (d)

     7,000,000        6,997,515   

UOB Funding LLC

    

0.091%, 07/01/13 (d)

     20,410,000        20,410,000   
   

 

 

  
      812,547,542   
   

 

 

  

Total Short-Term Investments
(Cost $1,180,296,893)

       1,180,296,893   
   

 

 

  

Total Investments—95.3%
(Cost $1,277,609,280) (f)

       1,275,970,275   

Other assets and liabilities (net)—4.7%

       63,570,041   
   

 

 

  
Net Assets—100.0%     $ 1,339,540,316   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(b) Affiliated Issuer. (See Note 8 of the Notes to Consolidated Financial Statements for a summary of transactions in securities of affiliated issuers.)
(c) The rate shown represents the annualized seven-day yield as of June 30, 2013.
(d) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(e) All or a portion of the security was pledged as collateral against open swap contracts. As of June 30, 2013, the market value of securities pledged was $20,303,642.
(f) As of June 30, 2013, the aggregate cost of investments was $1,277,609,280. The aggregate unrealized appreciation and depreciation of investments were $719,346 and $(2,358,351), respectively, resulting in net unrealized depreciation of $(1,639,005).
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $4,954,681, which is 0.4% of net assets.
(EMTN)— Euro Medium-Term Note
(LIBOR)— London InterBank Offered Rate

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		    Number of
Contracts		     Notional Amount     Unrealized
Appreciation/
(Depreciation)		  

Aluminum HG Futures

    07/17/13      451        USD         21,368,738      $ (1,781,244 ) 

Aluminum HG Futures

    09/18/13      350        USD         16,543,628        (1,062,690 ) 

Australian 10 Year Treasury Bond Futures

    09/16/13      1,428        AUD         174,503,028        (4,977,067 ) 

Brent Crude Oil Futures

    09/13/13      278        USD         28,106,207        44,073   

Canada Government Bond 10 Year Futures

    09/19/13      1,400        CAD         191,342,347        (7,006,131 ) 

Copper LME Futures

    07/17/13      326        USD         66,620,163        (11,701,388 ) 

Euro Stoxx 50 Index Futures

    09/20/13      2,730        EUR         72,203,095        (1,663,111 ) 

FTSE 100 Index Futures

    09/20/13      930        GBP         57,885,967        (888,261 ) 

Gas Oil Futures

    07/11/13      168        USD         14,529,104        309,496   

Gasoline RBOB Futures

    07/31/13      211        USD         24,179,230        (113,582 ) 

German Euro Bund Futures

    09/06/13      1,161        EUR         166,294,855        (2,590,458 ) 

Hang Seng Index Futures

    07/30/13      373        HKD         372,003,951        1,881,357   

Japanese 10 Year Government Bond Mini Futures

    09/10/13      82        JPY         11,735,807,610        (346,921 ) 

Russell 2000 Mini Index Futures

    09/20/13      777        USD         76,565,592        (831,402 ) 

S&P 500 E-Mini Index Futures

    09/20/13      1,143        USD         93,106,141        (1,706,146 ) 

Silver Futures

    09/26/13      325        USD         31,275,127        363,623   

Topix Index Futures

    09/12/13      925        JPY         10,076,000,739        3,889,385   

Ultra Long U.S. Treasury Bond Futures

    09/19/13      686        USD         97,629,897        (4,441,084 ) 

United Kingdom Long Gilt Bond Futures

    09/26/13      1,140        GBP         133,072,828        (8,375,608 ) 

WTI Light Sweet Crude Oil Futures

    11/19/13      277        USD         25,707,381        435,879   

Futures Contracts—Short

                               

Aluminum HG Futures

    07/17/13      (451 )      USD         (20,721,625 )      1,134,131   

Copper LME Futures

    07/17/13      (326 )      USD         (60,150,506 )      5,231,730   
            

 

 

  

Net Unrealized Depreciation

  

   $ (34,195,419 ) 
            

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-6

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Swap Agreements

Total Return Swap Agreements

 

Pay/Receive
Floating Rate

    Fixed
Rate		   Maturity
Date		      Counterparty   

Underlying Reference
Instrument

    Notional
Amount		      Market
Value		     Upfront
Premium
Paid/(Received)		      Unrealized
Appreciation/
(Depreciation)		  

Receive

    0.3300%     05/12/14       Barclays Bank PLC    Barclays Commodity Strategy 1452 Index      USD  27,181,087       $ (1,311,576 )    $ —       $ (1,311,576 ) 

Receive

    0.5300%     10/03/13       Barclays Bank PLC    Barclays Commodity Strategy 1635 Excess Return Index      USD  16,150,091         (264,355 )      —         (264,355 ) 

Receive

    0.3000%     04/11/14       Canadian Imperial
Bank of Commerce		    CIBC Dynamic Roll LME Copper Excess Return Index      USD  27,188,320         (1,274,987 )      —         (1,274,987 ) 

Receive

    0.4500%     10/15/13       JP Morgan Chase
Bank N.A.		    Excess Return Commodity Index      USD  15,086,512         73,809        —         73,809   

Receive

    0.2500%     05/07/14       Merrill Lynch    MLCX Dynamic Enhanced Copper Excess Return Index      USD  19,651,287         6,531        —         6,531   

Receive

    0.1400%     02/24/14       Merrill Lynch    Merrill Lynch Gold Excess Return Index      USD  20,235,763         (200,087 )      —         (200,087 ) 

Receive

    0.6000%     11/04/13       Goldman Sachs Intl.    S&P GSCI 3 Month Forward Index      USD  16,664,243         (480,594 )      —         (480,594 ) 

Receive

    0.0900%     04/22/14       JPMorgan Chase
Bank N.A.		    S&P GSCI Gold Index Excess Return      USD  17,485,760         (731,133 )      —         (731,133 ) 

Receive

    0.1200%     05/16/14       Cargill, Inc.    Single Commodity Index Excess Return      USD  26,448,540         —        —         —   
                

 

 

    

 

 

     

 

 

  

Totals

  

    $ (4,182,392 )    $ —       $ (4,182,392 ) 
                

 

 

    

 

 

     

 

 

  

 

(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(EUR)— Euro
(GBP)— British Pound
(HKD)— Hong Kong Dollar
(JPY)— Japanese Yen
(USD)— United States Dollar

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-7

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Consolidated Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1     Level 2     Level 3      Total  

Total Municipals

    $ —        $ 70,542,000      $ —         $ 70,542,000   

Total Commodity-Linked Securities

      —          25,131,382        —           25,131,382   
Short-Term Investments          

Mutual Funds

      277,178,440        —          —           277,178,440   

U.S. Treasury

      —          90,570,911        —           90,570,911   

Commercial Paper

      —          812,547,542        —           812,547,542   

Total Short-Term Investments

      277,178,440        903,118,453        —           1,180,296,893   

Total Investments

    $ 277,178,440      $ 998,791,835      $ —         $ 1,275,970,275   
                                   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 13,289,674      $ —        $ —         $ 13,289,674   

Futures Contracts (Unrealized Depreciation)

      (47,485,093 )      —          —           (47,485,093 ) 

Total Futures Contracts

    $ (34,195,419 )    $ —        $ —         $ (34,195,419 ) 
Swap Contracts          

Swap Contracts at Value (Assets)

    $ —        $ 80,340      $ —         $ 80,340   

Swap Contracts at Value (Liabilities)

      —          (4,262,732 )      —           (4,262,732 ) 

Total Swap Contracts

    $ —        $ (4,182,392 )    $ —         $ (4,182,392 ) 

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-8

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

 

Consolidated§ Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 998,791,835   

Affiliated investments at value (b)

      277,178,440   

Cash denominated in foreign currencies (c)

      131,709   

Cash collateral for futures contracts

      82,218,342   

Swaps at market value

      80,340   

Receivable for:

   

Fund shares sold

      1,029,041   

Interest

      28,798   

Other assets

      907   
  

 

 

  

Total Assets

      1,359,459,412   

Liabilities

   

Due to custodian

      111   

Payables for:

   

Investments purchased

      8,097,779   

Fund shares redeemed

      750,669   

Swaps at market value

      4,262,732   

Net variation margin on futures contracts

      5,612,707   

Swap interest

      30,157   

Accrued expenses:

   

Management fees

      678,069   

Distribution and service fees

      278,249   

Deferred trustees’ fees

      12,462   

Other expenses

      196,161   
  

 

 

  

Total Liabilities

      19,919,096   
  

 

 

  

Net Assets

    $ 1,339,540,316   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,388,538,185   

Accumulated net investment loss

      (4,878,136 ) 

Accumulated net realized loss

      (3,927,025 ) 

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (40,192,708 ) 
  

 

 

  

Net Assets

    $ 1,339,540,316   
  

 

 

  

Net Assets

   

Class B

    $ 1,339,540,316   

Capital Shares Outstanding*

   

Class B

      133,360,260   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.04   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,000,430,840.
(b) Identified cost of affiliated investments was $277,178,440.
(c) Identified cost of cash denominated in foreign currencies was $136,250.

Consolidated§ Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from affiliated investments

    $ 69,230   

Interest

      881,677   
  

 

 

  

Total investment income

      950,907   

Expenses

   

Management fees

      3,921,863   

Administration fees

      18,530   

Custodian and accounting fees

      39,947   

Distribution and service fees—Class B

      1,530,844   

Interest expense

      67,824   

Audit and tax services

      37,082   

Legal

      8,811   

Trustees’ fees and expenses

      14,118   

Shareholder reporting

      12,175   

Insurance

      16   

Organizational expense

      904   

Miscellaneous

      3,248   
  

 

 

  

Total expenses

      5,655,362   

Less management fee waiver

      (184,061 ) 
  

 

 

  

Net expenses

      5,471,301   
  

 

 

  

Net Investment Loss

      (4,520,394 ) 
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      7,808   

Futures contracts

      25,161,641   

Swap contracts

      (24,869,453 ) 

Foreign currency transactions

      (3,730,606 ) 
  

 

 

  

Net realized loss

      (3,430,610 ) 
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (176,102 ) 

Futures contracts

      (39,222,499 ) 

Swap contracts

      (3,169,738 ) 

Foreign currency transactions

      (83,778 ) 
  

 

 

  

Net change in unrealized depreciation

      (42,652,117 ) 
  

 

 

  

Net realized and unrealized loss

      (46,082,727 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (50,603,121 ) 
  

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-9

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Consolidated§ Statement of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Period Ended
December 31,
2012(a)		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment loss

    $ (4,520,394 )    $ (2,601,322 ) 

Net realized gain (loss)

      (3,430,610 )      27,524,072   

Net change in unrealized appreciation (depreciation)

      (42,652,117 )      2,459,409   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (50,603,121 )      27,382,159   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      0        (2,810,093 ) 

Net realized capital gains

     

Class B

      (12,689,759 )      (10,176,103 ) 
  

 

 

    

 

 

  

Total distributions

      (12,689,759 )      (12,986,196 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      429,746,373        958,690,860   
  

 

 

    

 

 

  

Total Increase in Net Assets

      366,453,493        973,086,823   

Net Assets

     

Beginning of period

      973,086,823        0   
  

 

 

    

 

 

  

End of period

    $ 1,339,540,316      $ 973,086,823   
  

 

 

    

 

 

  

Undistributed net investment income (loss)

     

End of period

    $ (4,878,136 )    $ (357,742 ) 
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Period Ended
December 31, 2012(a)		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      43,673,329      $ 462,547,224        93,179,366      $ 962,678,484   

Reinvestments

      1,213,170        12,689,759        1,239,141        12,986,196   

Redemptions

      (4,304,945 )      (45,490,610 )      (1,639,801 )      (16,973,820 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      40,581,554      $ 429,746,373        92,778,706      $ 958,690,860   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 429,746,373        $ 958,690,860   
    

 

 

      

 

 

  

 

(a) Commencement of operations was April 23, 2012.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-10

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Consolidated§ Financial Highlights

 

Selected per share data             
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Period Ended
December 31,
2012(a)		  
      

Net Asset Value, Beginning of Period

    $ 10.49      $ 10.00   
  

 

 

    

 

 

  

Income (Loss) from Investment Operations

     

Net investment loss (b)

      (0.04 )      (0.06 ) 

Net realized and unrealized gain (loss) on investments

      (0.31 )      0.69   
  

 

 

    

 

 

  

Total from investment operations

      (0.35 )      0.63   
  

 

 

    

 

 

  

Less Distributions

     

Distributions from net investment income

      0.00        (0.03 ) 

Distributions from net realized capital gains

      (0.10 )      (0.11 ) 
  

 

 

    

 

 

  

Total distributions

      (0.10 )      (0.14 ) 
  

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.04      $ 10.49   
  

 

 

    

 

 

  

Total Return (%) (c)

      (3.34 )(d)      6.34  (d) 

Ratios/Supplemental Data

     

Gross ratio of expenses to average net assets (%)

      0.92  (e)      1.03  (e) 

Gross ratio of expenses to average net assets excluding interest expense (%)

      0.91  (e)      1.03  (e) 

Net ratio of expenses to average net assets (%) (f)

      0.89  (e)      0.90  (e) 

Net ratio of expenses to average net assets excluding interest expense (%) (f)

      0.88  (e)      0.90  (e) 

Ratio of net investment loss to average net assets (%)

      (0.74 )(e)      (0.80 )(e) 

Portfolio turnover rate (%)

      5  (d)      0  (g) 

Net assets, end of period (in millions)

    $ 1,339.5      $ 973.1   

 

(a) Commencement of operations was April 23, 2012.
(b) Per share amounts based on average shares outstanding during the period.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(g) There were no long term sale transactions during the period ended December 31, 2012.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-11

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust.

The portfolio included in this report is Invesco Balanced-Risk Allocation Portfolio (the “Portfolio”) (commenced operations on April 23, 2012), which is diversified. The Portfolio’s shares first became available to investors through certain separate accounts on April 30, 2012. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered one class of shares: Class B Shares. Class B Shares are currently offered by the Portfolio.

2. Consolidation of Subsidiary—Invesco Balanced-Risk Allocation Portfolio, Ltd.

The Portfolio may invest up to 25% of its total assets in the Invesco Balanced-Risk Allocation Portfolio, Ltd., which is a wholly-owned and controlled subsidiary of the Portfolio that is organized under the laws of the Cayman Islands as an exempted company (the “Subsidiary”). The Portfolio invests in the Subsidiary in order to gain exposure to the commodities market within the limitations of the federal tax laws, rules and regulations that apply to regulated investment companies.

The Portfolio has obtained an opinion from legal counsel to the effect that the annual net profit, if any, realized by the Subsidiary and imputed for income tax purposes to the Portfolio should constitute “qualifying income” for purposes of the Portfolio remaining qualified as a regulated investment company for U.S federal income tax purposes. It is possible that the Internal Revenue Service or a court could disagree with the legal opinion obtained by the Portfolio.

The Subsidiary invests primarily in commodity derivatives, exchange traded notes, cash and cash equivalents, including money market funds affiliated with Invesco Advisers, Inc. (the “Subadviser”). Unlike the Portfolio, the Subsidiary may invest without limitation in commodity-linked derivatives; however, the Subsidiary complies with the same 1940 Act asset coverage requirements with respect to its investments in commodity-linked derivatives that are applicable to the Portfolio’s transactions in derivatives. In addition, to the extent applicable to the investment activities of the Subsidiary, the Subsidiary is subject to the same fundamental investment restrictions and follows the same compliance policies and procedures as the Portfolio.

By investing in the Subsidiary, the Portfolio is indirectly exposed to the risks associated with the Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are subject to commodities risk. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the 1940 Act and is not subject to all the investor protections of the 1940 Act. The Portfolio, however, wholly owns and controls the Subsidiary, and the Portfolio and Subsidiary are both managed by the Subadviser, making it unlikely that the Subsidiary will take action contrary to the interests of the Portfolio and its shareholders. Changes in the laws of the United States and/or Cayman Islands could result in the inability of the Portfolio and/or the Subsidiary to operate as described in the Portfolio’s prospectus and could adversely affect the Portfolio. For example, the Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Portfolio shareholders would likely suffer decreased investment returns.

The consolidated Schedule of Investments, Statement of Assets and Liabilities, Statement of Operations, Statement of Changes in Net Assets and the Financial Highlights of the Portfolio include the account of the Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation for the Portfolio. The Subsidiary has a fiscal year end of December 31st for financial statement consolidation purposes and a nonconforming tax year end of November 30th.

A summary of the Portfolio’s investment in the Subsidiary is as follows:

 

     Inception Date
of Subsidiary		      Subsidiary
Net Assets at
June 30, 2013		      % of
Total Assets at
June 30, 2013		  

Invesco Balanced-Risk Allocation Portfolio, Ltd.

      04/23/2012       $ 289,311,838         21.3 % 

3. Significant Accounting Policies

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these consolidated financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the consolidated financial statements were issued.

 

MIST-12

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its consolidated financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the

 

MIST-13

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to futures transactions, foreign currency transactions, swap transactions, distribution redesignations, foreign currency tax expense reclass, distribution and service fees and controlled foreign corporations. These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign

 

MIST-14

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

4. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Consolidated Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Consolidated Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Commodity Futures Contracts and Swaps on Commodity Futures Contracts - The Subsidiary will invest primarily in commodity futures and swaps on commodity futures. Exposure to the commodities markets may subject the Portfolio to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Consolidated Schedule of Investments and restricted cash, if any, is reflected on the Consolidated Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Consolidated Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Consolidated Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Consolidated Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such

 

MIST-15

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Consolidated Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Consolidated Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

Equity Swaps: Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying security and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. If the other party to an equity swap defaults, a Portfolio’s risk of loss consists of the net amount of payments that such Portfolio is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile.

Total Return Swaps: The Portfolio may enter into total return swap agreements to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include a specified security, basket of securities or securities indices during the specific period, in return for periodic payments based on a fixed or floating rate or the total return from other underlying assets. When a Portfolio pays interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may be required to pay the change in value to the counterparty in addition to the interest payment; conversely, when a Portfolio receives interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may receive the change in value in addition to the interest payment. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty. Total return swaps can also be structured without an interest payment, so that one party pays the other party if the value of the underlying asset increases and receives payment from the other party if the value of the underlying asset decreases.

 

MIST-16

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Consolidated Statement of Assets &
Liabilities Location

    Fair Value     

Consolidated Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate          Unrealized depreciation on futures contracts* (a)    $ 27,737,269   
Equity    Unrealized appreciation on futures contracts* (a)    $ 5,770,742       Unrealized depreciation on futures contracts* (a)      5,088,920   
Commodity    Swaps at market value      80,340       Swaps at market value (b)      4,262,732   
   Unrealized appreciation on futures contracts* (a)      7,518,932       Unrealized depreciation on futures contracts* (a)      14,658,904   
     

 

 

        

 

 

  
Total       $ 13,370,014          $ 51,747,825   
     

 

 

        

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Consolidated Schedule of Investments. Only the current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets in the
Statement of Assets
and Liabilities		      Financial Instrument     Collateral Received(c)      Net Amount  

JPMorgan Chase Bank N.A.

    $ 73,809       $ (73,809 )    $ —       $ —   

Merrill Lynch

      6,531         (6,531 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 80,340       $ (80,340 )    $ —       $ —   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities in the
Statement of Assets
and Liabilities		      Financial Instrument     Collateral Pledged(c)     Net Amount  

Barclays Bank plc

    $ 1,575,931       $ —      $ (1,575,931 )    $ —   

Canadian Imperial Bank of Commerce

      1,274,987         —        (1,274,987 )      —   

Goldman Sachs Intl.

      480,594         —        (480,594 )      —   

JPMorgan Chase Bank N.A.

      731,133         (73,809 )      —        657,324   

Merrill Lynch

      200,087         (6,531 )      (193,556 )      —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 4,262,732       $ (80,340 )    $ (3,525,068 )    $ 657,324   
  

 

 

     

 

 

    

 

 

    

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Consolidated Statement of Operations
Location—Net Realized Gain (Loss)

    Interest Rate      Equity      Commodity      Total  

Futures contracts

    $ (1,728,935 )     $ 52,786,593       $ (25,896,017 )     $ 25,161,641   

Swap contracts

      645,760         —         (25,515,213 )       (24,869,453 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ (1,083,175 )     $ 52,786,593       $ (51,411,230 )     $ 292,188   
  

 

 

     

 

 

     

 

 

     

 

 

  

Consolidated Statement of Operations
Location—Net Change in Unrealized
Appreciation (Depreciation)

    Interest Rate      Equity      Commodity      Total  

Futures contracts

    $ (28,317,064 )     $ (6,590,598 )     $ (4,314,837 )     $ (39,222,499 ) 

Swap contracts

      —         —         (3,169,738 )       (3,169,738 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ (28,317,064 )     $ (6,590,598 )     $ (7,484,575 )     $ (42,392,237 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

MIST-17

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(d)		  

Futures contracts long

    $ 758,471,784   

Futures contracts short

      16,183   

Swap contracts

      777,423   
  (a) Financial instrument not subject to a master netting agreement.
  (b) Excludes swap interest payable of $30,157.
  (c) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to over collateralization.
  (d) Averages are based on activity levels during 2013.

5. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the consolidated financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Consolidated Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Consolidated Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Consolidated Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

 

MIST-18

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

6. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 11,540,387       $ 0       $ 4,358,000   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Invesco Advisers, Inc. (“the Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$3,921,863      0.675 %    First $250 million
     0.650 %    $250 million to $750 million
     0.625 %    $750 million to $1 billion
     0.600 %    Over $1 billion

Management Fee Waiver - The Subadviser agreed to waive the subadvisory fee it receives in an amount equal to any advisory fee it also receives due to the Portfolio’s investment in any investment company, unit investment trust or other collective investment fund, registered or nonregistered, for which the Subadviser or any of its affiliates serves as investment adviser. The Adviser agreed to waive a portion of the management fee related to the Subadviser’s waiving of its subadvisory fee on funds where the Subadviser or any of its affiliates serves as investment adviser. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Consolidated Statement of Operations.

Expense Limitation Agreement - The Adviser entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement continued in effect with respect to the Portfolio until April 28, 2013. Pursuant to that Expense Limitation Agreement, the Adviser had agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and acquired fund fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, were limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under current
Expense Limitation Agreement		  

Class B

  
  1.10 % 

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred.

Effective April 29, 2013, there was no longer an expense cap for the Portfolio. For the six months ended June 30, 2013, there were no amounts waived or expensed repaid to the Adviser in accordance with the Expense Limitation Agreement.

 

MIST-19

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Consolidated Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Consolidated Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Consolidated Statement of Assets and Liabilities.

8. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

 

Security Description

    Number of
shares held at
December 31,
2012		      Shares purchased      Shares sold     Number of
shares held at
June 30,
2013		  

Invesco V.I. Money Market Fund

      11,616,289         —         (11,616,289 )      —   

Premier Portfolio, Institutional Class

      37,193,244         300,159,030         (290,728,478 )      46,623,796   

STIC (Global Series) PLC - U.S. Dollar Liquidity Portfolio, Institutional Class

      143,456,545         147,305,194         (106,830,891 )      183,930,848   

STIT-Liquid Assets Portfolio, Institutional Class

      37,193,244         300,159,030         (290,728,478 )      46,623,796   

 

Security Description

    Net Realized
Gain/(Loss) on sales
of Affiliated
Investments		      Capital Gain
Distributions
from Affiliated
Investments		      Income from
Affiliated
Investments		      Ending Value
as of June 30,
2013		  

Invesco V.I. Money Market Fund

    $ —       $ —       $ 195       $ —   

Premier Portfolio, Institutional Class

      —         —         —         46,623,796   

STIC (Global Series) PLC - U.S. Dollar Liquidity Portfolio, Institutional Class

      —         —         67,369         183,930,848   

STIT-Liquid Assets Portfolio, Institutional Class

      —         —         1,666         46,623,796   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ —       $ —       $ 69,230       $ 277,178,440   
  

 

 

     

 

 

     

 

 

     

 

 

  

9. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

 

MIST-20

Met Investors Series Trust

Invesco Balanced-Risk Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

10. Income Tax Information

The tax character of distributions paid for the period ended December 31, 2012 were as follows:

 

Ordinary Income

    Long-Term Capital Gain      Total  
$10,672,798    $ 2,313,398       $ 12,986,196   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Deferral     Total  
$9,800,440    $ 2,796,545       $ 2,055,768       $ (350,655 )    $ 14,302,098   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-21

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the Invesco Comstock Portfolio returned 17.22% and 17.11%. The Portfolio’s benchmark, the Russell 1000 Value Index1, returned 15.90%.

MARKET ENVIRONMENT / CONDITIONS

Global equity markets had attractive returns throughout the six months ending June 30, 2013, with U.S. equity markets in particular turning in double-digit returns, in some cases reading all-time or multi-year highs during the period. Fixed income markets fared less well, as interest rates jumped late in the period and most bond investors saw their early year gains and more erased within a few short weeks. U.S. consumer spending began the year with headwinds from higher payroll tax rates and concerns about the impact of sequestration and its automatic spending cuts, but investors seemed to shrug off the fiscal policy debates unfolding in Washington D.C. as the improving housing market, along with consistent if not better, economic and employment data led markets generally upward. Toward the end of the period, comments from the Federal Reserve regarding the eventual tapering of bond purchases due to the sustained strength of the economy, became an ironic catalyst to a downturn in almost all asset classes. Fixed income markets reacted the most dramatically, extrapolating the potential slowing of unconventional bond purchase policy with longer term conventional interest rate policy change. Equity markets had a more rational sell-off, seemingly consolidating earlier gains.

In general, U.S. stocks outperformed international and global indices. Within the U.S., value outperformed growth within small, mid and large caps, with large value being the best performing asset class and mid growth being the worst performing asset class, posting slightly negative returns.

PORTFOLIO REVIEW / CURRENT POSITIONING

The Portfolio outperformed the Russell 1000 Value for the 6 month period, ending June 30, 2013. All sectors within the Russell 1000 Value Index posted positive returns for the period, with materials being the only sector that posted negative returns.

On the positive side, strong stock selection and a material overweight to Information Technology acted as a large contributor to relative performance for the period. Notably, Hewlett-Packard Co. and Microsoft experienced outsized performance for the period, returning over 76% and over 31%, respectively. The bulk of the outperformance for Hewlett-Packard came in early 2013, after the company beat fourth quarter 2012 earnings estimates, mainly due to increased earnings from its printer division. Stock selection and an underweight to Materials also boosted relative performance, as Materials was the only sector within the Russell 1000 Value Index to post negative performance. The bulk of the contribution came from not owning mining companies that sold off later during the period, following a sell-off in precious and industrial metals and commodities, in general. Stock selection and an underweight to Telecommunication Services also contributed to relative performance. The Portfolio was materially underweight AT&T and the stock underperformed the sector and benchmark for the period. Stock selection and an overweight to Healthcare also enhanced performance. Specifically, Bristol-Myers Squibb Co. a pharmaceuticals company and WellPoint, Inc., a health benefits provider, performed well for the period. An overweight to Consumer Discretionary, specifically within Media, also acted as a contributor. Stock selection within Financials also enhanced performance, with Citigroup Inc. within Diversified Financials and Allstate Corp. within Insurance being two notable contributors.

On the negative side, cash acted as a detractor from relative performance. Despite a relatively low average position of approximately 3% for the period available for investment opportunities and liquidity for redemptions, cash became a drag in a strong equity market. Weak stock selection within Industrials also dampened relative performance during the period. Emerson Electric Co. was one of the largest detractors within the sector. Despite the stock rallying after periods of announcing strong profits for fourth quarter 2012 and first quarter 2013, investors shunned the stock toward the end of the period.

Turnover remains generally muted with managers trimming positions as stock valuations continue to move higher. Managers added to select positions within energy, diversified financials, industrials and retail. We reduced select holdings based on valuations within

 

MIST-1

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*—(Continued)

 

Pharmaceuticals, Software and Services and Media. While we generally apply a bottom up investment approach, the Portfolio experienced no notable sector or industry shifts as a result of the changes noted above.

The Portfolio’s exposures still reside within Diversified Financials (banks), Media, Energy and Pharmaceuticals. The Portfolio remains underweight Consumer Staples, Health Care, Industrials and Utilities, all based on our assessment of valuation.

Kevin C. Holt

Jason S. Leder

Devin E. Armstrong

Matt Seinsheimer

James Warwick

Portfolio Managers

Invesco Advisers, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 VALUE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
Invesco Comstock Portfolio                      

Class A

        17.22           28.28           8.97           5.54   

Class B

        17.11           27.96           8.72           5.29   
Russell 1000 Value Index        15.90           25.32           6.67           5.82   

1 The Russell 1000 Value Index is an unmanaged measure of the largest capitalized U.S. domiciled companies with a less than average growth orientation. Companies in this index generally have a low price-to-book and price-to-earnings ratio, higher dividend yields and lower forecasted growth values.

2 Inception of Class A and Class B shares is 5/2/2005. Index returns are based on an inception date of 5/2/2005.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Citigroup, Inc.      4.2   
JPMorgan Chase & Co.      3.5   
Microsoft Corp.      2.6   
Viacom, Inc. - Class B      2.5   
Time Warner Cable, Inc.      2.4   
Weatherford International, Ltd.      2.4   
Hewlett-Packard Co.      2.3   
Wells Fargo & Co.      2.3   
Merck & Co., Inc.      2.2   
General Motors Co.      2.2   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Financials      24.2   
Consumer Discretionary      16.7   
Health Care      14.9   
Energy      14.9   
Information Technology      11.1   
Industrials      6.4   
Consumer Staples      5.6   
Materials      2.2   
Utilities      2.0   
Telecommunication Services      2.0   

 

MIST-3

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Invesco Comstock Portfolio
(formerly, Van Kampen Comstock Portfolio)

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.57 %     $ 1,000.00         $ 1,172.20         $ 3.07   
   Hypothetical*      0.57 %     $ 1,000.00         $ 1,021.97         $ 2.86   

Class B(a)

    Actual      0.82 %     $ 1,000.00         $ 1,171.10         $ 4.41   
   Hypothetical*      0.82 %     $ 1,000.00         $ 1,020.73         $ 4.11   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—97.6% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.4%

  

Honeywell International, Inc.

     252,178      $ 20,007,802   

Textron, Inc. (a)

     558,192        14,540,902   
   

 

 

  
      34,548,704   
   

 

 

  

Auto Components—0.9%

  

Johnson Controls, Inc.

     643,090        23,016,191   
   

 

 

  

Automobiles—2.2%

  

General Motors Co. (b)

     1,606,461        53,511,216   
   

 

 

  

Capital Markets—5.5%

  

Bank of New York Mellon Corp. (The)

     1,906,187        53,468,546   

Goldman Sachs Group, Inc. (The)

     171,817        25,987,321   

Morgan Stanley

     1,431,547        34,972,693   

State Street Corp.

     311,900        20,338,999   
   

 

 

  
      134,767,559   
   

 

 

  

Commercial Banks—5.9%

  

Fifth Third Bancorp. (a)

     1,511,441        27,281,510   

PNC Financial Services Group, Inc. (The)

     571,957        41,707,104   

U.S. Bancorp.

     469,678        16,978,860   

Wells Fargo & Co.

     1,371,540        56,603,456   
   

 

 

  
      142,570,930   
   

 

 

  

Communications Equipment—1.2%

  

Cisco Systems, Inc.

     1,246,992        30,314,376   
   

 

 

  

Computers & Peripherals—2.3%

  

Hewlett-Packard Co.

     2,302,807        57,109,614   
   

 

 

  

Diversified Financial Services—9.2%

  

Bank of America Corp.

     3,005,989        38,657,018   

Citigroup, Inc.

     2,119,770        101,685,367   

JPMorgan Chase & Co.

     1,600,224        84,475,825   
   

 

 

  
      224,818,210   
   

 

 

  

Diversified Telecommunication Services—1.1%

  

AT&T, Inc.

     307,359        10,880,509   

Verizon Communications, Inc.

     333,434        16,785,067   
   

 

 

  
      27,665,576   
   

 

 

  

Electric Utilities—2.0%

  

FirstEnergy Corp. (a)

     437,630        16,341,104   

PPL Corp. (a)

     1,053,803        31,888,079   
   

 

 

  
      48,229,183   
   

 

 

  

Electrical Equipment—1.2%

  

Emerson Electric Co.

     512,361        27,944,169   
   

 

 

  

Electronic Equipment, Instruments & Components—1.3%

  

Corning, Inc.

     2,199,331        31,296,480   
   

 

 

  

Energy Equipment & Services—4.9%

  

Halliburton Co.

     1,195,984        49,896,452   

Energy Equipment & Services—(Continued)

  

Noble Corp.

     325,263      $ 12,223,384   

Weatherford International, Ltd. (b)

     4,237,615        58,055,326   
   

 

 

  
      120,175,162   
   

 

 

  

Food & Staples Retailing—1.9%

  

CVS Caremark Corp.

     699,228        39,981,857   

Wal-Mart Stores, Inc.

     79,588        5,928,510   
   

 

 

  
      45,910,367   
   

 

 

  

Food Products—3.3%

  

Archer-Daniels-Midland Co.

     540,093        18,314,553   

Mondelez International, Inc. - Class A

     779,924        22,251,232   

Tyson Foods, Inc. - Class A

     631,740        16,223,083   

Unilever NV

     576,148        22,648,378   
   

 

 

  
      79,437,246   
   

 

 

  

Health Care Providers & Services—4.1%

  

Cardinal Health, Inc. (a)

     441,796        20,852,771   

UnitedHealth Group, Inc.

     757,198        49,581,325   

WellPoint, Inc.

     370,436        30,316,483   
   

 

 

  
      100,750,579   
   

 

 

  

Hotels, Restaurants & Leisure—0.9%

  

Carnival Corp.

     661,774        22,692,230   
   

 

 

  

Household Durables—0.5%

  

Newell Rubbermaid, Inc.

     467,441        12,270,326   
   

 

 

  

Household Products—0.3%

  

Procter & Gamble Co. (The)

     87,366        6,726,308   
   

 

 

  

Industrial Conglomerates—2.1%

  

General Electric Co.

     2,216,112        51,391,637   
   

 

 

  

Insurance—3.1%

  

Aflac, Inc.

     228,137        13,259,322   

Allstate Corp. (The)

     984,079        47,353,882   

Travelers Cos., Inc. (The)

     170,092        13,593,753   
   

 

 

  
      74,206,957   
   

 

 

  

Internet Software & Services—2.8%

  

eBay, Inc. (b)

     699,002        36,152,384   

Yahoo!, Inc. (b)

     1,223,439        30,720,553   
   

 

 

  
      66,872,937   
   

 

 

  

Machinery—1.6%

  

Ingersoll-Rand plc

     694,246        38,544,538   
   

 

 

  

Media—9.0%

  

Comcast Corp. - Class A

     943,306        39,505,655   

News Corp. - Class B

     1,292,811        42,430,057   

Time Warner Cable, Inc.

     524,078        58,948,294   

Time Warner, Inc.

     301,570        17,436,777   

Viacom, Inc. - Class B

     885,285        60,243,644   
   

 

 

  
      218,564,427   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description  

Shares

     Value  

Metals & Mining—0.9%

  

Alcoa, Inc. (a)

     2,754,429      $ 21,539,635   
   

 

 

  

Multiline Retail—1.6%

  

Kohl’s Corp. (a)

     352,555        17,807,553   

Target Corp.

     306,131        21,080,181   
   

 

 

  
      38,887,734   
   

 

 

  

Oil, Gas & Consumable Fuels—9.6%

  

BP plc (ADR)

     1,180,092        49,257,040   

Chevron Corp.

     268,794        31,809,082   

Murphy Oil Corp.

     619,686        37,732,681   

Occidental Petroleum Corp.

     352,212        31,427,877   

QEP Resources, Inc. (a)

     971,508        26,988,492   

Royal Dutch Shell plc (ADR)

     545,506        34,803,283   

Suncor Energy, Inc.

     709,427        20,921,002   
   

 

 

  
      232,939,457   
   

 

 

  

Paper & Forest Products—1.3%

  

International Paper Co.

     694,773        30,785,392   
   

 

 

  

Pharmaceuticals—10.4%

  

Bristol-Myers Squibb Co.

     841,194        37,592,960   

GlaxoSmithKline plc (ADR)

     516,925        25,830,742   

Merck & Co., Inc.

     1,177,134        54,677,874   

Novartis AG

     433,569        30,726,778   

Pfizer, Inc. (a)

     1,550,717        43,435,583   

Roche Holding AG (ADR)

     387,660        23,982,586   

Sanofi (ADR)

     704,929        36,310,893   
   

 

 

  
      252,557,416   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.6%

  

Intel Corp.

     604,595        14,643,291   
   

 

 

  

Software—2.6%

  

Microsoft Corp.

     1,852,553        63,968,655   
   

 

 

  

Specialty Retail—1.1%

  

Lowe’s Cos., Inc.

     238,494        9,754,404   

Staples, Inc. (a)

     1,141,081        18,097,545   
   

 

 

  
      27,851,949   
   

 

 

  

Wireless Telecommunication Services—0.8%

  

Vodafone Group plc (ADR)

     714,433        20,532,804   
   

 

 

  

Total Common Stocks
(Cost $1,878,520,001)

       2,377,041,255   
   

 

 

  
Short-Term Investments—5.6%   

Mutual Fund—3.7%

  

State Street Navigator Securities Lending MET Portfolio (c)

     90,776,759        90,776,759   
   

 

 

  
Security Description   Principal
Amount*		     Value  

Repurchase Agreement—1.9%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $44,999,038 on 07/01/13, collateralized by $44,990,000 U.S. Government Agency obligations at 0.250% - 2.125% due 05/26/15 - 05/31/15 with a value of $45,902,363.

     44,999,000      $ 44,999,000   
   

 

 

  

Total Short-Term Investments
(Cost $135,775,759)

       135,775,759   
   

 

 

  

Total Investments—103.2%
(Cost $2,014,295,760) (d)

       2,512,817,014   

Other assets and liabilities (net)—(3.2)%

       (77,957,630 ) 
   

 

 

  
Net Assets—100.0%     $ 2,434,859,384   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $90,039,813 and the collateral received consisted of cash in the amount of $90,776,759 and non-cash collateral with a value of $2,156,424. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $2,014,295,760. The aggregate unrealized appreciation and depreciation of investments were $537,922,709 and $(39,401,455), respectively, resulting in net unrealized appreciation of $498,521,254.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Deliver       

Counterparty

      Settlement Date        In Exchange
for		        Unrealized
Appreciation		  
  CHF           14,882,150         Bank of New York Mellon Corp.        07/15/13         $ 16,201,256         $ 443,698   
  CHF           10,630,110         Citibank N.A.        07/15/13           11,571,132           315,730   
  CHF           16,463,910         State Street Bank and Trust        07/15/13           17,931,027           498,664   
  EUR           14,158,300         Bank of New York Mellon Corp.        07/15/13           18,898,074           467,981   
  EUR           18,223,555         Canadian Imperial Bank of Commerce        07/15/13           24,322,396           600,493   
  EUR           17,522,649         Citibank N.A.        07/15/13           23,386,954           577,432   
  EUR           11,623,120         State Street Bank and Trust        07/15/13           15,515,354           385,347   
  GBP           14,046,245         Bank of New York Mellon Corp.        07/15/13           21,988,554           626,809   
  GBP           18,962,431         Canadian Imperial Bank of Commerce        07/15/13           29,682,709           844,352   
  GBP           9,832,372         Citibank N.A.        07/15/13           15,392,038           438,815   
  GBP           9,498,590         State Street Bank and Trust        07/15/13           14,872,227           426,626   
                        

 

 

  
  Net Unrealized Appreciation         $ 5,625,947   
                        

 

 

  

 

(CHF)— Swiss Franc
(EUR)— Euro
(GBP)— British Pound

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 34,548,704       $ —         $ —         $ 34,548,704   

Auto Components

      23,016,191         —           —           23,016,191   

Automobiles

      53,511,216         —           —           53,511,216   

Capital Markets

      134,767,559         —           —           134,767,559   

Commercial Banks

      142,570,930         —           —           142,570,930   

Communications Equipment

      30,314,376         —           —           30,314,376   

Computers & Peripherals

      57,109,614         —           —           57,109,614   

Diversified Financial Services

      224,818,210         —           —           224,818,210   

Diversified Telecommunication Services

      27,665,576         —           —           27,665,576   

Electric Utilities

      48,229,183         —           —           48,229,183   

Electrical Equipment

      27,944,169         —           —           27,944,169   

Electronic Equipment, Instruments & Components

      31,296,480         —           —           31,296,480   

Energy Equipment & Services

      120,175,162         —           —           120,175,162   

Food & Staples Retailing

      45,910,367         —           —           45,910,367   

Food Products

      79,437,246         —           —           79,437,246   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  

Health Care Providers & Services

    $ 100,750,579       $ —        $ —         $ 100,750,579   

Hotels, Restaurants & Leisure

      22,692,230         —          —           22,692,230   

Household Durables

      12,270,326         —          —           12,270,326   

Household Products

      6,726,308         —          —           6,726,308   

Industrial Conglomerates

      51,391,637         —          —           51,391,637   

Insurance

      74,206,957         —          —           74,206,957   

Internet Software & Services

      66,872,937         —          —           66,872,937   

Machinery

      38,544,538         —          —           38,544,538   

Media

      218,564,427         —          —           218,564,427   

Metals & Mining

      21,539,635         —          —           21,539,635   

Multiline Retail

      38,887,734         —          —           38,887,734   

Oil, Gas & Consumable Fuels

      232,939,457         —          —           232,939,457   

Paper & Forest Products

      30,785,392         —          —           30,785,392   

Pharmaceuticals

      221,830,638         30,726,778        —           252,557,416   

Semiconductors & Semiconductor Equipment

      14,643,291         —          —           14,643,291   

Software

      63,968,655         —          —           63,968,655   

Specialty Retail

      27,851,949         —          —           27,851,949   

Wireless Telecommunication Services

      20,532,804         —          —           20,532,804   

Total Common Stocks

      2,346,314,477         30,726,778        —           2,377,041,255   
Short-Term Investments           

Mutual Fund

      90,776,759         —          —           90,776,759   

Repurchase Agreement

      —           44,999,000        —           44,999,000   

Total Short-Term Investments

      90,776,759         44,999,000        —           135,775,759   

Total Investments

    $ 2,437,091,236       $ 75,725,778      $ —         $ 2,512,817,014   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (90,776,759 )    $ —         $ (90,776,759 ) 
Forward Contracts           

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —         $ 5,625,947      $ —         $ 5,625,947   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 2,512,817,014   

Cash

      4,302   

Cash denominated in foreign currencies (c)

      169   

Unrealized appreciation on forward foreign currency exchange contracts

      5,625,947   

Receivable for:

   

Investments sold

      7,370,291   

Fund shares sold

      410,173   

Dividends

      5,016,030   

Interest

      39   
  

 

 

  

Total Assets

      2,531,243,965   

Liabilities

   

Payables for:

   

Investments purchased

      3,005,864   

Fund shares redeemed

      1,163,223   

Collateral for securities loaned

      90,776,759   

Accrued Expenses:

   

Management fees

      1,103,812   

Distribution and service fees

      138,883   

Deferred trustees’ fees

      41,001   

Other expenses

      155,039   
  

 

 

  

Total Liabilities

      96,384,581   
  

 

 

  

Net Assets

    $ 2,434,859,384   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 2,274,449,291   

Undistributed net investment income

      23,090,310   

Accumulated net realized loss

      (366,822,893 ) 

Unrealized appreciation on investments and foreign currency transactions

      504,142,676   
  

 

 

  

Net Assets

    $ 2,434,859,384   
  

 

 

  

Net Assets

   

Class A

    $ 1,763,739,234   

Class B

      671,120,150   

Capital Shares Outstanding*

   

Class A

      139,929,508   

Class B

      53,412,919   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 12.60   

Class B

      12.56   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $2,014,295,760.
(b) Includes securities loaned at value of $90,039,813.
(c) Identified cost of cash denominated in foreign currencies was $172.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 27,095,975   

Interest

      3,376   

Securities lending income

      139,172   
  

 

 

  

Total investment income

      27,238,523   

Expenses

   

Management fees

      6,585,058   

Administration fees

      29,132   

Custodian and accounting fees

      89,855   

Distribution and service fees—Class B

      814,943   

Audit and tax services

      19,511   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      48,471   

Insurance

      6,839   

Miscellaneous

      7,401   
  

 

 

  

Total expenses

      7,624,333   

Less management fee waiver

      (208,003 ) 
  

 

 

  

Net expenses

      7,416,330   
  

 

 

  

Net Investment Income

      19,822,193   
  

 

 

  

Net Realized and Unrealized Gain

   

Net realized gain (loss) on:

   

Investments

      87,148,763   

Foreign currency transactions

      (2,184,072 ) 
  

 

 

  

Net realized gain

      84,964,691   
  

 

 

  
Net change in unrealized appreciation on:   

Investments

      249,108,934   

Foreign currency transactions

      9,052,200   
  

 

 

  

Net change in unrealized appreciation

      258,161,134   
  

 

 

  

Net realized and unrealized gain

      343,125,825   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 362,948,018   
  

 

 

  

 

(a) Net of foreign withholding taxes of $654,485.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 19,822,193      $ 38,387,255   

Net realized gain

      84,964,691        147,157,780   

Net change in unrealized appreciation

      258,161,134        172,946,609   
  

 

 

    

 

 

  

Increase in net assets from operations

      362,948,018        358,491,644   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (23,547,092 )      (23,206,545 ) 

Class B

      (7,435,457 )      (7,530,053 ) 
  

 

 

    

 

 

  

Total distributions

      (30,982,549 )      (30,736,598 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (28,480,368 )      (158,108,847 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      303,485,101        169,646,199   

Net Assets

     

Beginning of period

      2,131,374,283        1,961,728,084   
  

 

 

    

 

 

  

End of period

    $ 2,434,859,384      $ 2,131,374,283   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 23,090,310      $ 34,250,666   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      9,145,796      $ 111,981,175        2,850,112      $ 28,861,743   

Reinvestments

      1,987,096        23,547,092        2,297,678        23,206,545   

Redemptions

      (11,034,802 )      (133,446,020 )      (16,197,303 )      (168,067,245 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      98,090      $ 2,082,247        (11,049,513 )    $ (115,998,957 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      2,273,900      $ 27,436,968        7,046,652      $ 69,486,777   

Reinvestments

      629,057        7,435,457        747,029        7,530,053   

Redemptions

      (5,425,833 )      (65,435,040 )      (11,675,121 )      (119,126,720 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (2,522,876 )    $ (30,562,615 )      (3,881,440 )    $ (42,109,890 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (28,480,368 )      $ (158,108,847 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Financial Highlights

 

Selected per share data                                         
     Class A  
   Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
     2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 10.90      $ 9.32       $ 9.55       $ 8.43       $ 6.85       $ 11.26   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.11        0.19         0.17         0.13         0.13         0.21   

Net realized and unrealized gain (loss) on investments

      1.76        1.55         (0.27 )       1.14         1.64         (4.06 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.87        1.74         (0.10 )       1.27         1.77         (3.85 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.17 )      (0.16 )       (0.13 )       (0.15 )       (0.19 )       (0.19 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.37 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.17 )      (0.16 )       (0.13 )       (0.15 )       (0.19 )       (0.56 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.60      $ 10.90       $ 9.32       $ 9.55       $ 8.43       $ 6.85   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      17.22  (c)      18.76         (1.17 )       15.12         26.89         (35.79 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.59  (d)      0.60         0.61         0.64         0.64         0.61   

Net ratio of expenses to average net assets (%) (e)

      0.57  (d)      0.58         0.61         0.64         0.64         0.61   

Ratio of net investment income to average net assets (%)

      1.78  (d)      1.90         1.81         1.51         1.95         2.35   

Portfolio turnover rate (%)

      8  (c)      17         25         29         44         40   

Net assets, end of period (in millions)

    $ 1,763.7      $ 1,524.2       $ 1,406.5       $ 828.0       $ 782.7       $ 1,257.6   

 

     Class B  
   Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
     2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 10.85      $ 9.28       $ 9.52       $ 8.41       $ 6.83       $ 11.22   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.09        0.17         0.14         0.11         0.10         0.19   

Net realized and unrealized gain (loss) on investments

      1.76        1.53         (0.27 )       1.13         1.65         (4.04 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.85        1.70         (0.13 )       1.24         1.75         (3.85 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.14 )      (0.13 )       (0.11 )       (0.13 )       (0.17 )       (0.17 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.37 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.14 )      (0.13 )       (0.11 )       (0.13 )       (0.17 )       (0.54 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.56      $ 10.85       $ 9.28       $ 9.52       $ 8.41       $ 6.83   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      17.11  (c)      18.43         (1.48 )       14.85         26.57         (35.91 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.84  (d)      0.85         0.86         0.89         0.89         0.86   

Net ratio of expenses to average net assets (%) (e)

      0.82  (d)      0.83         0.86         0.89         0.89         0.86   

Ratio of net investment income to average net assets (%)

      1.53  (d)      1.65         1.50         1.28         1.39         2.10   

Portfolio turnover rate (%)

      8  (c)      17         25         29         44         40   

Net assets, end of period (in millions)

    $ 671.1      $ 607.1       $ 555.3       $ 582.6       $ 505.8       $ 107.7   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio) (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions and return of capital adjustment. These adjustments have no impact on net assets or the results of operations.

 

MIST-13

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $44,999,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign

 

MIST-14

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    
    

Asset Derivatives

  

Risk Exposure

   

Statement of Assets & Liabilities Location

    Fair Value  
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts    $ 5,625,947   
     

 

 

  

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets in the
Statement of Assets
and Liabilities		      Financial Instrument      Collateral Received      Net Amount  

Bank of New York Mellon Corp.

    $ 1,538,488       $ —       $ —       $ 1,538,488   

Canadian Imperial Bank of Commerce

      1,444,845         —         —         1,444,845   

Citibank N.A.

      1,331,977         —         —         1,331,977   

State Street Bank and Trust

      1,310,637         —         —         1,310,637   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 5,625,947       $ —       $ —       $ 5,625,947   
  

 

 

     

 

 

     

 

 

     

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ (2,649,617 ) 
  

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ 9,056,725   
  

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(a)		  

Forward foreign currency transactions

   $ 202,293,454   

 

  (a) Averages are based on activity levels during 2013.

 

MIST-15

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 173,361,739       $ 0       $ 222,650,122   

The Portfolio engaged in security transactions with other accounts managed by Invesco Advisers, Inc. that amounted to $414,297 in sales of investments which are included above.

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $67,581,027 in purchases of investments, which are included above.

 

MIST-16

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Invesco Advisers, Inc. (the “Adviser”), for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$6,585,058      0.650 %    First $500 million
     0.600 %    $500 million to $1 billion
     0.525 %    Over $1 billion

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.025%    $1 billion to $2 billion
0.050%    Over $2 billion

An identical agreement was in place for the period April 30, 2012 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

 

MIST-17

Met Investors Series Trust

Invesco Comstock Portfolio (formerly, Van Kampen Comstock Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$30,736,598    $ 17,986,243       $ —       $ —       $ 30,736,598       $ 17,986,243   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$30,855,514    $ —       $ 229,428,153       $ (431,803,416 )    $ (171,519,749 ) 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2017 were $431,803,416.

 

MIST-18

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the Invesco Small Cap Growth Portfolio returned 15.21%, 14.97%, and 15.11%, respectively. The Portfolio’s benchmark, the Russell 2000 Growth Index1, returned 17.44%.

MARKET ENVIRONMENT / CONDITIONS

Global developed equity markets had attractive returns throughout the six months ending June 30, 2013, with U.S. equity markets in particular turning in double-digit returns, in some cases hitting all-time or multi-year highs during the period. Fixed income markets fared less well, as interest rates jumped late in the period and most bond investors saw their early year gains and more erased within a few short weeks. U.S. consumer spending began the year with headwinds from higher payroll tax rates and concerns about the impact of sequestration and its automatic spending cuts, but investors seemed to shrug off the fiscal policy debates unfolding in Washington D.C. as the improving housing market, along with consistent if not better, economic and employment data led markets generally upward. Toward the end of the period, comments from the Fed surrounding the eventual tapering of bond purchases due to the sustained strength of the economy became an ironic catalyst to a downturn in almost all asset classes. Fixed income markets reacted the most dramatically, extrapolating the potential slowing of unconventional bond purchase policy with longer term conventional interest rate policy change. Equity markets had a more rational sell-off, seemingly consolidating earlier gains.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio had strong positive returns but underperformed versus the Russell 2000 Growth Index. Stock selection in the Information Technology sector had the greatest negative impact on relative performance, although performance in Industrials, Consumer Discretionary and Health Care stocks was also below the index. The Portfolio outperformed in the Financials and Energy sectors based on positive stock selection.

The Portfolio underperformed by the widest margin in the Information Technology (IT) sector due primarily to stock selection. The recurring theme in IT corporate spending during the period was a weaker than expected environment for both providers and buyers, with larger deals being delayed in the year and taking longer to close. One of the Portfolio’s leading detractors has been a solid contributor to previous performance. Solarwinds Inc. is a provider of powerful and affordable IT management software. Their lower priced products continued to gain market share through their innovative web-based delivery model. However, the company’s exceptional growth has slowed as their higher purchase price products became a drag on the company’s growth. The company took initial steps during the period to provide higher-end clients better sales and service. NetGear Inc. was also a detractor during the period. This seller of network technology solutions to small business and individual consumers saw a slowdown in their growth which hurt performance. However the company also made an acquisition of a wireless hotspot company, which was less profitable, had slower growth, and few synergies, so we sold the stock based on this divergence from our investment thesis. Arris Group Inc. was another relative detractor. The company has recently entered into strategic corporate partnerships which give it substantial investors with vested interests in the long term success of the company. However the generally weak corporate IT spending environment has hurt near term results.

The Portfolio also underperformed in the Industrials sector. The main impact to the Portfolio’s relative performance in the sector was from stock selection, but this included the impact of not owning several airlines and car rental companies which were up tremendously during the period. One stock we did own in this sector which hurt performance was Tetra Tech Inc. An engineering and construction firm which specializes in water-related projects, the company experienced some setbacks during the period which we believe are temporary in nature.

The Portfolio outperformed by the widest margin in the Financials sector. The Portfolio’s overweight allocation to banks, especially those with resilient niche investment lending or robust loan growth profiles contributed to performance. Banks which benefitted performance included SVB Financial Group, Privatebancorp Inc. and East West Bancorp Inc.

In the Energy sector, Lufkin Industries Inc. has a strong business in artificial lift, which is used to help bring oil and gas to the surface of drilled wells. The stock was up strongly when they agreed in principle to be acquired for a substantial premium and we sold the position, locking in gains. Atwood Oceanics Inc. was another Energy contributor during the period.

 

MIST-1

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Managed by Invesco Advisers, Inc.

Portfolio Manager Commentary*—(Continued)

 

Portfolio positioning is based primarily on our bottom-up stock selection process, and our long term investment horizon leads to relatively low turnover. Throughout the period the Portfolio maintained a “barbell” positioning that provided exposure to cyclical growth opportunities as well as more defensive areas of the market. Changes were modest within this framework, however the most significant changes included an increase in the Industrials and Health Care sectors. Exposure to the Consumer Discretionary and Information Technology sectors was decreased.

Juliet Ellis

Juan Hartsfield

Clay Manley

Portfolio Manager

Invesco Advisers, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 GROWTH INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year  
Invesco Small Cap Growth Portfolio                      

Class A

        15.21           25.28           9.56           9.51   

Class B

        14.97           24.89           9.27           9.29   

Class E

        15.11           25.06           9.38           9.41   
Russell 2000 Growth Index        17.44           23.67           8.89           9.62   

1 The Russell 2000 Growth Index is an unmanaged measure of performance of those Russell 2000 companies (small capitalization companies) that have higher price-to book ratios and higher forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
CoStar Group, Inc.      1.8   
Manhattan Associates, Inc.      1.5   
PAREXEL International Corp.      1.3   
SBA Communications Corp. - Class A      1.2   
Aspen Technology, Inc.      1.2   
Sinclair Broadcast Group, Inc. - Class A      1.1   
ValueClick, Inc.      1.1   
Penn National Gaming, Inc.      1.1   
Affiliated Managers Group, Inc.      1.1   
Pool Corp.      1.1   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Information Technology      24.0   
Health Care      18.6   
Consumer Discretionary      16.4   
Industrials      16.2   
Financials      10.2   
Energy      6.9   
Materials      3.2   
Consumer Staples      2.4   
Telecommunication Services      1.2   
Utilities      0.9   

 

MIST-3

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Invesco Small Cap Growth Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.85 %     $ 1,000.00         $ 1,152.10         $ 4.54   
   Hypothetical*      0.85 %     $ 1,000.00         $ 1,020.58         $ 4.26   

Class B(a)

    Actual      1.10 %     $ 1,000.00         $ 1,149.70         $ 5.86   
   Hypothetical*      1.10 %     $ 1,000.00         $ 1,019.34         $ 5.51   

Class E(a)

    Actual      1.00 %     $ 1,000.00         $ 1,151.10         $ 5.33   
   Hypothetical*      1.00 %     $ 1,000.00         $ 1,019.84         $ 5.01   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—98.6% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.5%

  

Hexcel Corp. (a)

     337,863      $ 11,504,235   

TransDigm Group, Inc.

     79,946        12,533,135   
   

 

 

  
      24,037,370   
   

 

 

  

Air Freight & Logistics—1.5%

  

Forward Air Corp.

     291,591        11,162,104   

HUB Group, Inc. - Class A (a) (b)

     338,003        12,310,069   
   

 

 

  
      23,472,173   
   

 

 

  

Auto Components—1.8%

  

Tenneco, Inc. (a)

     359,033        16,257,014   

TRW Automotive Holdings Corp. (a)

     196,000        13,022,240   
   

 

 

  
      29,279,254   
   

 

 

  

Biotechnology—4.0%

  

Acorda Therapeutics, Inc. (a) (b)

     261,436        8,624,774   

Amarin Corp. plc (ADR) (a) (b)

     734,322        4,259,068   

BioMarin Pharmaceutical, Inc. (a)

     205,784        11,480,689   

Incyte Corp., Ltd. (a) (b)

     640,317        14,086,974   

Seattle Genetics, Inc. (a) (b)

     334,879        10,535,293   

United Therapeutics Corp. (a) (b)

     212,441        13,982,867   
   

 

 

  
      62,969,665   
   

 

 

  

Building Products—1.0%

  

AO Smith Corp. (b)

     423,247        15,355,401   
   

 

 

  

Capital Markets—3.4%

  

Affiliated Managers Group, Inc. (a)

     104,639        17,154,518   

Greenhill & Co., Inc. (b)

     194,099        8,878,088   

SEI Investments Co.

     472,866        13,443,580   

Stifel Financial Corp. (a)

     425,639        15,182,543   
   

 

 

  
      54,658,729   
   

 

 

  

Chemicals—1.9%

  

Intrepid Potash, Inc. (b)

     275,919        5,256,257   

Olin Corp. (b)

     506,724        12,120,838   

Rockwood Holdings, Inc.

     190,120        12,173,384   
   

 

 

  
      29,550,479   
   

 

 

  

Commercial Banks—4.1%

  

East West Bancorp, Inc.

     474,579        13,050,923   

Huntington Bancshares, Inc.

     1,305,746        10,289,278   

PrivateBancorp, Inc.

     644,228        13,664,076   

Prosperity Bancshares, Inc. (b)

     245,534        12,716,206   

SVB Financial Group (a)

     179,720        14,974,270   
   

 

 

  
      64,694,753   
   

 

 

  

Commercial Services & Supplies—1.4%

  

Steelcase, Inc. - Class A

     710,393        10,357,530   

Tetra Tech, Inc. (a)

     472,965        11,119,407   
   

 

 

  
      21,476,937   
   

 

 

  

Communications Equipment—0.6%

  

ARRIS Group, Inc. (a)

     684,634      $ 9,824,498   
   

 

 

  

Construction & Engineering—0.9%

  

MasTec, Inc. (a) (b)

     428,954        14,112,587   
   

 

 

  

Construction Materials—0.7%

  

Martin Marietta Materials, Inc. (b)

     119,164        11,728,121   
   

 

 

  

Distributors—1.1%

  

Pool Corp.

     326,267        17,099,653   
   

 

 

  

Electric Utilities—0.9%

  

ITC Holdings Corp. (b)

     147,384        13,456,159   
   

 

 

  

Electrical Equipment—1.1%

  

Acuity Brands, Inc. (b)

     180,060        13,598,131   

Regal-Beloit Corp.

     49,761        3,226,503   
   

 

 

  
      16,824,634   
   

 

 

  

Electronic Equipment, Instruments & Components—3.7%

  

Cognex Corp.

     256,003        11,576,456   

IPG Photonics Corp. (b)

     152,945        9,288,350   

Littelfuse, Inc.

     192,475        14,360,560   

National Instruments Corp. (b)

     397,524        11,106,820   

SYNNEX Corp. (a) (b)

     285,383        12,065,993   
   

 

 

  
      58,398,179   
   

 

 

  

Energy Equipment & Services—3.2%

  

Atwood Oceanics, Inc. (a)

     225,054        11,714,061   

Dresser-Rand Group, Inc. (a)

     219,518        13,166,690   

Dril-Quip, Inc. (a)

     163,575        14,769,187   

Patterson-UTI Energy, Inc.

     583,666        11,296,855   
   

 

 

  
      50,946,793   
   

 

 

  

Food & Staples Retailing—0.7%

  

Harris Teeter Supermarkets, Inc.

     223,278        10,462,807   
   

 

 

  

Food Products—1.7%

  

B&G Foods, Inc.

     394,147        13,420,705   

Lancaster Colony Corp. (b)

     179,001        13,960,288   
   

 

 

  
      27,380,993   
   

 

 

  

Health Care Equipment & Supplies—4.4%

  

Insulet Corp. (a) (b)

     353,794        11,112,670   

Masimo Corp. (b)

     393,124        8,334,229   

Meridian Bioscience, Inc. (b)

     309,002        6,643,543   

NuVasive, Inc. (a)

     412,165        10,217,570   

Sirona Dental Systems, Inc. (a)

     161,204        10,620,120   

STERIS Corp.

     321,707        13,794,796   

Thoratec Corp. (a)

     307,366        9,623,629   
   

 

 

  
      70,346,557   
   

 

 

  

Health Care Providers & Services—5.2%

  

Centene Corp. (a)

     304,926        15,996,418   

Chemed Corp. (b)

     189,560        13,729,831   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Health Care Providers & Services—(Continued)

  

Health Management Associates, Inc. - Class A (a)

     954,784      $ 15,009,204   

HealthSouth Corp. (a)

     424,570        12,227,616   

MEDNAX, Inc. (a)

     135,782        12,434,916   

VCA Antech, Inc. (a) (b)

     509,578        13,294,890   
   

 

 

  
      82,692,875   
   

 

 

  

Health Care Technology—0.4%

  

HMS Holdings Corp. (a) (b)

     294,988        6,873,220   
   

 

 

  

Hotels, Restaurants & Leisure—5.3%

  

Cheesecake Factory, Inc. (The) (b)

     291,883        12,226,979   

Choice Hotels International, Inc. (b)

     221,724        8,800,226   

Domino’s Pizza, Inc. (b)

     293,732        17,080,516   

Jack in the Box, Inc. (a)

     396,328        15,571,727   

Life Time Fitness, Inc. (a) (b)

     274,212        13,740,763   

Penn National Gaming, Inc. (a) (b)

     326,962        17,283,211   
   

 

 

  
      84,703,422   
   

 

 

  

Household Durables—0.7%

  

Ethan Allen Interiors, Inc. (b)

     361,022        10,397,434   
   

 

 

  

Insurance—0.8%

  

Brown & Brown, Inc.

     369,789        11,921,997   
   

 

 

  

Internet Software & Services—4.4%

  

CoStar Group, Inc. (a)

     217,929        28,128,096   

DealerTrack Holdings, Inc. (a)

     359,242        12,727,944   

OpenTable, Inc. (a) (b)

     178,801        11,434,324   

ValueClick, Inc. (a) (b)

     723,602        17,858,497   
   

 

 

  
      70,148,861   
   

 

 

  

IT Services—0.9%

    

Alliance Data Systems Corp. (a) (b)

     72,871        13,191,837   

EPAM Systems, Inc. (a)

     50,618        1,375,797   
   

 

 

  
      14,567,634   
   

 

 

  

Leisure Equipment & Products—0.6%

  

Brunswick Corp. (b)

     312,374        9,980,349   
   

 

 

  

Life Sciences Tools & Services—2.5%

  

PAREXEL International Corp. (a)

     445,306        20,457,358   

PerkinElmer, Inc.

     320,529        10,417,192   

Techne Corp. (b)

     117,661        8,128,022   
   

 

 

  
      39,002,572   
   

 

 

  

Machinery—5.4%

  

Crane Co.

     223,625        13,399,610   

ITT Corp. (b)

     480,628        14,135,270   

Lincoln Electric Holdings, Inc.

     277,141        15,871,865   

Lindsay Corp. (b)

     162,249        12,165,430   

WABCO Holdings, Inc. (a)

     177,348        13,246,122   

Wabtec Corp.

     309,819        16,553,629   
   

 

 

  
      85,371,926   
   

 

 

  

Marine—0.9%

  

Kirby Corp. (a) (b)

     184,776      $ 14,697,083   
   

 

 

  

Media—1.1%

  

Sinclair Broadcast Group, Inc. - Class A

     614,013        18,039,702   
   

 

 

  

Metals & Mining—0.6%

  

Allied Nevada Gold Corp. (a) (b)

     6,847        44,369   

Carpenter Technology Corp. (b)

     208,914        9,415,754   
   

 

 

  
      9,460,123   
   

 

 

  

Oil, Gas & Consumable Fuels—3.6%

  

Berry Petroleum Co. - Class A

     261,174        11,052,884   

Energen Corp.

     213,574        11,161,377   

Oasis Petroleum, Inc. (a) (b)

     380,944        14,807,294   

Resolute Energy Corp. (a) (b)

     747,041        5,961,387   

Ultra Petroleum Corp. (a) (b)

     670,188        13,283,126   
   

 

 

  
      56,266,068   
   

 

 

  

Pharmaceuticals—1.8%

  

Jazz Pharmaceuticals plc (a)

     200,097        13,752,667   

Salix Pharmaceuticals, Ltd. (a)

     225,590        14,922,778   
   

 

 

  
      28,675,445   
   

 

 

  

Real Estate Investment Trusts—1.8%

  

Colonial Properties Trust

     499,200        12,040,704   

Corrections Corp. of America

     474,137        16,059,020   
   

 

 

  
      28,099,724   
   

 

 

  

Road & Rail—0.8%

  

Swift Transportation Co. (a)

     727,952        12,040,326   
   

 

 

  

Semiconductors & Semiconductor Equipment—4.3%

  

Microsemi Corp. (a)

     507,940        11,555,635   

MKS Instruments, Inc.

     339,615        9,013,382   

Power Integrations, Inc. (b)

     305,827        12,404,343   

Semtech Corp. (a)

     386,893        13,552,862   

Silicon Laboratories, Inc. (a)

     261,608        10,833,188   

Teradyne, Inc. (a) (b)

     656,118        11,527,993   
   

 

 

  
      68,887,403   
   

 

 

  

Software—9.6%

  

ANSYS, Inc. (a)

     184,225        13,466,847   

Aspen Technology, Inc. (a) (b)

     663,035        19,088,778   

Cadence Design Systems, Inc. (a) (b)

     868,823        12,580,557   

CommVault Systems, Inc. (a) (b)

     180,948        13,732,144   

Informatica Corp. (a)

     436,789        15,278,879   

Interactive Intelligence Group, Inc. (a)

     277,195        14,303,262   

Manhattan Associates, Inc. (a)

     306,552        23,653,552   

Mentor Graphics Corp.

     651,620        12,739,171   

MICROS Systems, Inc. (a) (b)

     250,387        10,804,199   

MicroStrategy, Inc. - Class A (a)

     79,130        6,881,145   

SolarWinds, Inc. (a)

     261,343        10,142,722   
   

 

 

  
      152,671,256   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description  

Shares

     Value  

Specialty Retail—4.0%

  

DSW, Inc. - Class A

     204,301      $ 15,009,994   

Group 1 Automotive, Inc. (b)

     197,752        12,721,386   

Monro Muffler Brake, Inc. (b)

     254,930        12,249,387   

Tractor Supply Co. (b)

     133,318        15,679,530   

Vitamin Shoppe, Inc. (a) (b)

     184,094        8,254,775   
   

 

 

  
      63,915,072   
   

 

 

  

Textiles, Apparel & Luxury Goods—1.5%

  

Steven Madden, Ltd. (a)

     248,819        12,037,863   

Under Armour, Inc. - Class A (a) (b)

     192,734        11,508,147   
   

 

 

  
      23,546,010   
   

 

 

  

Trading Companies & Distributors—1.6%

  

Watsco, Inc. (b)

     158,328        13,293,219   

WESCO International, Inc. (a) (b)

     185,046        12,575,726   
   

 

 

  
      25,868,945   
   

 

 

  

Wireless Telecommunication Services—1.2%

  

SBA Communications Corp. - Class A (a)

     259,297        19,219,094   
   

 

 

  

Total Common Stocks
(Cost $1,137,157,484)

       1,563,122,283   
   

 

 

  
Short-Term Investments—22.7%   

Mutual Fund—22.2%

    

State Street Navigator Securities Lending MET Portfolio (c)

     351,722,003        351,722,003   
   

 

 

  
Security Description   Principal
Amount*		     Value  

Repurchase Agreement—0.5%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $8,461,007 on 07/01/13, collateralized by $8,645,000 Federal National Mortgage Association at 0.420% due 06/05/15 with a value of $8,634,194.

     8,461,000      $ 8,461,000   
   

 

 

  

Total Short-Term Investments
(Cost $360,183,003)

       360,183,003   
   

 

 

  

Total Investments—121.3%
(Cost $1,497,340,487) (d)

       1,923,305,286   

Other assets and liabilities
(net)—(21.3)%

       (337,558,740 ) 
   

 

 

  
Net Assets—100.0%     $ 1,585,746,546   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $345,166,419 and the collateral received consisted of cash in the amount of $351,722,003 and non-cash collateral with a value of $1,985,270. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $1,497,340,487. The aggregate unrealized appreciation and depreciation of investments were $456,727,289 and $(30,762,490), respectively, resulting in net unrealized appreciation of $425,964,799.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 1,563,122,283       $ —        $ —         $ 1,563,122,283   
Short-Term Investments           

Mutual Fund

      351,722,003         —          —           351,722,003   

Repurchase Agreement

      —           8,461,000        —           8,461,000   

Total Short-Term Investments

      351,722,003         8,461,000        —           360,183,003   

Total Investments

    $ 1,914,844,286       $ 8,461,000      $ —         $ 1,923,305,286   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (351,722,003 )    $ —         $ (351,722,003 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,923,305,286   

Cash

      585   

Receivable for:

   

Investments sold

      16,755,872   

Fund shares sold

      269,342   

Dividends and interest

      540,214   
  

 

 

  

Total Assets

      1,940,871,299   

Liabilities

   

Payables for:

   

Investments purchased

      778,865   

Fund shares redeemed

      1,272,295   

Collateral for securities loaned

      351,722,003   

Accrued Expenses:

   

Management fees

      1,084,658   

Distribution and service fees

      75,727   

Deferred trustees’ fees

      41,001   

Other expenses

      150,204   
  

 

 

  

Total Liabilities

      355,124,753   
  

 

 

  

Net Assets

    $ 1,585,746,546   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,033,095,957   

Undistributed net investment income

      871,895   

Accumulated net realized gain

      125,813,895   

Unrealized appreciation on investments

      425,964,799   
  

 

 

  

Net Assets

    $ 1,585,746,546   
  

 

 

  

Net Assets

   

Class A

    $ 1,210,797,263   

Class B

      360,942,916   

Class E

      14,006,367   

Capital Shares Outstanding*

   

Class A

      71,964,187   

Class B

      22,098,641   

Class E

      843,434   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 16.82   

Class B

      16.33   

Class E

      16.61   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,497,340,487.
(b) Includes securities loaned at value of $345,166,419.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends

    $ 7,822,501   

Interest

      1,221   

Securities lending income

      429,440   
  

 

 

  

Total investment income

      8,253,162   

Expenses

   

Management fees

      6,936,833   

Administration fees

      20,719   

Custodian and accounting fees

      65,280   

Distribution and service fees—Class B

      437,934   

Distribution and service fees—Class E

      9,700   

Audit and tax services

      19,511   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      41,036   

Insurance

      5,156   

Miscellaneous

      6,717   
  

 

 

  

Total expenses

      7,566,009   

Less management fee waiver

      (123,972 ) 

Less broker commission recapture

      (10,458 ) 
  

 

 

  

Net expenses

      7,431,579   
  

 

 

  

Net Investment Income

      821,583   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain (loss) on:   

Investments

      128,143,637   

Futures contracts

      (1,989,068 ) 

Foreign currency transactions

      93   
  

 

 

  

Net realized gain

      126,154,662   
  

 

 

  

Net change in unrealized appreciation on investments

      103,494,771   
  

 

 

  

Net realized and unrealized gain

      229,649,433   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 230,471,016   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 821,583      $ 6,569,897   

Net realized gain

      126,154,662        95,718,074   

Net change in unrealized appreciation

      103,494,771        158,022,662   
  

 

 

    

 

 

  

Increase in net assets from operations

      230,471,016        260,310,633   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (5,352,864 )      0   

Class B

      (813,978 )      0   

Class E

      (43,094 )      0   

Net realized capital gains

     

Class A

      (72,744,049 )      (74,437,402 ) 

Class B

      (22,123,511 )      (20,528,494 ) 

Class E

      (815,717 )      (737,571 ) 
  

 

 

    

 

 

  

Total distributions

      (101,893,213 )      (95,703,467 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (147,383,452 )      17,544,091   
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (18,805,649 )      182,151,257   
  

 

 

    

 

 

  

Net Assets

     

Beginning of period

      1,604,552,195        1,422,400,938   
  

 

 

    

 

 

  

End of period

    $ 1,585,746,546      $ 1,604,552,195   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 871,895      $ 6,260,248   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      3,286,257      $ 56,042,435        4,202,912      $ 63,039,438   

Reinvestments

      4,987,031        78,096,913        5,009,247        74,437,402   

Redemptions

      (16,922,973 )      (289,091,604 )      (7,606,890 )      (116,357,715 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (8,649,685 )    $ (154,952,256 )      1,605,269      $ 21,119,125   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,527,695      $ 24,994,356        3,079,281      $ 45,355,899   

Reinvestments

      1,508,053        22,937,489        1,419,674        20,528,494   

Redemptions

      (2,607,453 )      (42,389,501 )      (4,634,698 )      (68,176,370 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      428,295      $ 5,542,344        (135,743 )    $ (2,291,977 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      179,883      $ 2,994,773        92,910      $ 1,394,704   

Reinvestments

      55,515        858,811        50,243        737,571   

Redemptions

      (109,569 )      (1,827,124 )      (231,962 )      (3,415,332 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      125,829      $ 2,026,460        (88,809 )    $ (1,283,057 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (147,383,452 )      $ 17,544,091   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Financial Highlights

 

Selected per share data                                        
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009     2008  

Net Asset Value, Beginning of Period

    $ 15.67      $ 14.07       $ 14.19       $ 11.22       $ 8.36      $ 14.86   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (loss) (a)

      0.01        0.07         (0.03 )       (0.03 )       (0.00 )(b)      (0.01 ) 

Net realized and unrealized gain (loss) on investments

      2.28        2.48         (0.09 )       3.00         2.86        (5.35 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      2.29        2.55         (0.12 )       2.97         2.86        (5.36 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.08 )      0.00         0.00         0.00         0.00        0.00   

Distributions from net realized capital gains

      (1.06 )      (0.95 )       0.00         0.00         0.00        (1.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (1.14 )      (0.95 )       0.00         0.00         0.00        (1.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 16.82      $ 15.67       $ 14.07       $ 14.19       $ 11.22      $ 8.36   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (c)

      15.21  (d)      18.51         (0.85 )       26.47         34.21        (38.60 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%)

      0.87  (e)      0.87         0.88         0.89         0.90        0.89   

Net ratio of expenses to average net assets (%) (f)

      0.85  (e)      0.86         0.87         0.87         0.90        0.89   

Ratio of net investment income (loss) to average net assets (%)

      0.15  (e)      0.48         (0.21 )       (0.22 )       0.03        (0.07 ) 

Portfolio turnover rate (%)

      12  (d)      28         40         36         31        43   

Net assets, end of period (in millions)

    $ 1,210.8      $ 1,263.5       $ 1,111.8       $ 1,074.4       $ 719.1      $ 371.6   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009     2008  

Net Asset Value, Beginning of Period

    $ 15.23      $ 13.73       $ 13.88       $ 11.00       $ 8.22      $ 14.66   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (loss) (a)

      (0.01 )      0.03         (0.07 )       (0.06 )       (0.02 )      (0.04 ) 

Net realized and unrealized gain (loss) on investments

      2.21        2.42         (0.08 )       2.94         2.80        (5.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      2.20        2.45         (0.15 )       2.88         2.78        (5.30 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.04 )      0.00         0.00         0.00         0.00        0.00   

Distributions from net realized capital gains

      (1.06 )      (0.95 )       0.00         0.00         0.00        (1.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (1.10 )      (0.95 )       0.00         0.00         0.00        (1.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 16.33      $ 15.23       $ 13.73       $ 13.88       $ 11.00      $ 8.22   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (c)

      14.97  (d)      18.23         (1.08 )       26.18         33.82        (38.73 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%)

      1.12  (e)      1.12         1.13         1.14         1.15        1.14   

Net ratio of expenses to average net assets (%) (f)

      1.10  (e)      1.11         1.12         1.12         1.15        1.14   

Ratio of net investment income (loss) to average net assets (%)

      (0.07 )(e)      0.22         (0.46 )       (0.47 )       (0.23 )      (0.33 ) 

Portfolio turnover rate (%)

      12  (d)      28         40         36         31        43   

Net assets, end of period (in millions)

    $ 360.9      $ 330.0       $ 299.4       $ 282.4       $ 221.8      $ 159.7   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Financial Highlights

 

Selected per share data                                         
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 15.47      $ 13.92       $ 14.06       $ 11.13       $ 8.31       $ 14.80   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (loss) (a)

      0.00  (b)      0.04         (0.05 )       (0.05 )       (0.01 )       (0.03 ) 

Net realized and unrealized gain (loss) on investments

      2.26        2.46         (0.09 )       2.98         2.83         (5.32 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      2.26        2.50         (0.14 )       2.93         2.82         (5.35 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.06 )      0.00         0.00         0.00         0.00         0.00   

Distributions from net realized capital gains

      (1.06 )      (0.95 )       0.00         0.00         0.00         (1.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (1.12 )      (0.95 )       0.00         0.00         0.00         (1.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 16.61      $ 15.47       $ 13.92       $ 14.06       $ 11.13       $ 8.31   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      15.11  (d)      18.34         (1.00 )       26.33         33.94         (38.70 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      1.02  (e)      1.02         1.03         1.04         1.05         1.04   

Net ratio of expenses to average net assets (%) (f)

      1.00  (e)      1.01         1.02         1.02         1.05         1.04   

Ratio of net investment income (loss) to average net assets (%)

      0.04  (e)      0.30         (0.36 )       (0.38 )       (0.13 )       (0.23 ) 

Portfolio turnover rate (%)

      12  (d)      28         40         36         31         43   

Net assets, end of period (in millions)

    $ 14.0      $ 11.1       $ 11.2       $ 11.5       $ 11.3       $ 9.3   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Net investment income (loss) was less than $0.01.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Invesco Small Cap Growth Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-13

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due

 

MIST-14

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

to broker commission recapture, foreign currency gains and losses, return of capital adjustments, passive foreign investment companies (PFICs) and Real Estate Investment Trusts (REITs). These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $8,461,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

 

MIST-15

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

During the six months ended June 30, 2013, the Portfolio entered into equity index futures contracts which were subject to equity price risk. During the period April 12 through April 16, 2013, the Portfolio had bought and sold $109,354,579 in equity index futures contracts. At June 30, 2013, the Portfolio did not have any open futures contracts. For the six months ended June 30, 2013, the Portfolio had realized losses in the amount of $(1,989,068) which are shown under Net realized gain on futures contracts in the Statement of Operations.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to setoff. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

 

MIST-16

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 187,073,671       $ 0       $ 426,207,679   

The Portfolio engaged in security transactions with other accounts managed by Invesco Advisers, Inc. that amounted to $975,949 in purchases and $27,286,964 in sales of investments which are included above.

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $46,382,973 in sales of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Invesco Advisers, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$6,936,833      0.880 %    First $500 million
     0.830 %    Over $500 million

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets  
0.050%      First $500 million   

An identical agreement was in place for the period April 30, 2012 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

 

MIST-17

Met Investors Series Trust

Invesco Small Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$—    $ —       $ 95,703,467       $ —       $ 95,703,467       $ —   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$22,475,965    $ 79,373,727       $ 322,258,720       $ —       $ 424,108,412   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-18

Met Investors Series Trust

Janus Forty Portfolio

Managed by Janus Capital Management LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the Janus Forty Portfolio returned 7.28%, 7.17%, and 7.22%, respectively. The Portfolio’s benchmark, the Russell 1000 Growth Index1, returned 11.80%.

MARKET ENVIRONMENT / CONDITIONS

U.S. equity markets posted strong results in the first half of 2013 as confidence in the U.S. economy increased, due to a stronger housing market and improving jobs data. However economic improvement also stoked concerns the Federal Reserve might ease off its loose monetary policies that have helped fuel the broad market rally. These fears led to increased volatility toward the end of June.

During the six-month period, flows to equity markets increased, helping create a favorable backdrop for stock investing. While most stocks rose, we were pleased to see some individual companies with good fundamentals get rewarded by the market and outperform after putting up impressive results. During the period, capital allocation decisions remained an important issue for investors and businesses alike, as many investors sought high dividend paying companies, and many businesses focused on reducing share count. Developed markets generally outperformed emerging markets during the period, and value stocks generally outperformed growth stocks.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Our selections in Technology and Industrials sectors detracted from relative performance during the period, while stock selection in the Health Care and Financials sectors contributed to relative results.

Two holdings in the Portfolio had a sizable negative impact on performance over the six-month period. We have trimmed both positions to more accurately reflect their long term risk/reward profiles.

During the reporting period, Apple was the largest detractor from performance. We trimmed the position in an effort to more accurately reflect the long-term competitive advantages of the company. However, at current valuation levels we think the market is overlooking some of the positive attributes of the company. Apple is undoubtedly being challenged by Google, a new holding in the Portfolio, to win market share among first-time and lower-end smartphone users. Many of these consumers have shown a preference for low-cost devices that use Google’s Android operating system. However, Apple still has a very sticky customer base of high-end consumers, and we believe there is optionality from a product upgrade cycle or potential innovation.

FANUC, was another large detractor, and we have also trimmed its position size. The company has been affected by the economic slowdown in China. However, we think that over the long term the company will benefit from higher penetration of computer numeric control (CNC) systems in machine tools, and from increased automation in China, as wage inflation becomes a bigger concern for the country’s businesses.

While those two companies weighed on performance during the period, we were pleased with the results of many of the companies in the portfolio. Celgene was the largest contributor during the period. This global biotechnology company seeks to deliver truly innovative and life-changing drugs for the treatment of cancer and other severe immune, inflammatory conditions. We believe there is the potential for continued strong growth ahead for Celgene’s blood-cancer-fighting Revlimid drug franchise and believe its additional pipeline products could further supplement this growth. Some of the new drugs that we believe could become meaningful contributors include Apremilast, an oral drug to treat psoriatic arthritis and psoriasis, Abraxane for pancreatic cancer, and Pomalyst for refractory multiple myeloma. We also appreciate management’s willingness to utilize free cash flow for share repurchases and acquisitions.

News Corp. was also a top contributor. The diversified media company’s plans to split the company into two separate businesses, one for its more profitable entertainment business and the other for publishing businesses, we take as evidence, along with share buybacks and accretive acquisitions, that management is focused on increasing shareholder value. We feel the fundamental growth rates for the company’s global entertainment businesses continue to be strong and are well positioned to gain market share. We also like the company’s role as a provider of media content, which we think will increase in value going forward.

 

MIST-1

Met Investors Series Trust

Janus Forty Portfolio

Managed by Janus Capital Management LLC

Portfolio Manager Commentary*—(Continued)

 

The Portfolio ended the period with an overweight to the Health Care and Consumer Discretionary sectors. The Portfolio ended the period with underweights to the Consumer Staples, Energy and Industrial sectors.

Doug Rao

Portfolio Manager

Janus Capital Management LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Janus Forty Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 GROWTH INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year        Since Inception2  
Janus Forty Portfolio                           

Class A

        7.28           15.22           1.79           9.34           —   

Class B

        7.17           14.94           1.54           —           4.91   

Class E

        7.22           15.05           1.64           —           5.02   
Russell 1000 Growth Index        11.80           17.07           7.47           7.40           —   

1 The Russell 1000 Growth Index is an unmanaged measure of performance of the largest capitalized U.S. companies, within the Russell 1000 companies, that have higher price-to-book ratios and forecasted growth values.

2 Inception of Class A shares is 3/19/1982. Inception of Class B and Class E shares is 4/28/2007.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Express Scripts Holding Co.      7.1   
News Corp. - Class A      6.9   
Celgene Corp.      5.6   
Google, Inc. - Class A      4.1   
Apple, Inc.      3.9   
Zoetis, Inc.      3.6   
EMC Corp.      3.4   
Cie Financiere Richemont S.A. - Class A      3.3   
Precision Castparts Corp.      3.3   
U.S. Bancorp.      3.2   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Consumer Discretionary      28.3   
Health Care      26.0   
Information Technology      23.2   
Financials      8.2   
Industrials      6.4   
Telecommunication Services      3.7   
Materials      2.7   
Consumer Staples      1.5   

 

MIST-3

Met Investors Series Trust

Janus Forty Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Janus Forty Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.64 %     $ 1,000.00         $ 1,072.80         $ 3.29   
   Hypothetical*      0.64 %     $ 1,000.00         $ 1,021.62         $ 3.21   

Class B(a)

    Actual      0.89 %     $ 1,000.00         $ 1,071.70         $ 4.57   
   Hypothetical*      0.89 %     $ 1,000.00         $ 1,020.38         $ 4.46   

Class E(a)

    Actual      0.79 %     $ 1,000.00         $ 1,072.20         $ 4.06   
   Hypothetical*      0.79 %     $ 1,000.00         $ 1,020.88         $ 3.96   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

Janus Forty Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—98.9% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—3.3%

    

Precision Castparts Corp.

     284,475      $ 64,294,195   
   

 

 

  

Auto Components—2.4%

    

Delphi Automotive plc

     918,538        46,560,691   
   

 

 

  

Beverages—1.5%

    

Pernod-Ricard S.A.

     265,237        29,398,384   
   

 

 

  

Biotechnology—9.3%

    

Celgene Corp. (a)

     941,911        110,118,815   

Gilead Sciences, Inc. (a)

     612,528        31,367,559   

Vertex Pharmaceuticals, Inc. (a)

     542,757        43,350,001   
   

 

 

  
      184,836,375   
   

 

 

  

Chemicals—2.0%

    

Monsanto Co.

     403,592        39,874,890   
   

 

 

  

Commercial Banks—3.2%

    

U.S. Bancorp.

     1,742,799        63,002,184   
   

 

 

  

Computers & Peripherals—7.2%

    

Apple, Inc.

     192,252        76,147,172   

EMC Corp.

     2,842,905        67,149,416   
   

 

 

  
      143,296,588   
   

 

 

  

Diversified Telecommunication Services—1.5%

  

Iliad S.A.

     139,712        30,143,470   
   

 

 

  

Electronic Equipment, Instruments & Components—4.7%

  

Amphenol Corp. - Class A

     519,728        40,507,601   

TE Connectivity, Ltd.

     1,153,895        52,548,378   
   

 

 

  
      93,055,979   
   

 

 

  

Health Care Equipment & Supplies—1.6%

  

Intuitive Surgical, Inc. (a)

     61,712        31,262,065   
   

 

 

  

Health Care Providers & Services—9.1%

  

DaVita HealthCare Partners, Inc. (a)

     328,496        39,682,317   

Express Scripts Holding Co. (a)

     2,275,425        140,370,968   
   

 

 

  
      180,053,285   
   

 

 

  

Hotels, Restaurants & Leisure—2.7%

  

MGM Resorts International (a) (b)

     3,631,037        53,666,727   
   

 

 

  

Insurance—4.9%

    

AIA Group, Ltd.

     13,791,700        57,960,531   

Prudential plc

     2,420,674        39,795,016   
   

 

 

  
      97,755,547   
   

 

 

  

Internet & Catalog Retail—3.1%

  

Amazon.com, Inc. (a)

     76,295        21,186,359   

priceline.com, Inc. (a)

     49,370        40,835,408   
   

 

 

  
      62,021,767   
   

 

 

  

Internet Software & Services—7.1%

  

eBay, Inc. (a)

     1,159,008      $ 59,943,894   

Google, Inc. - Class A (a)

     92,414        81,358,513   
   

 

 

  
      141,302,407   
   

 

 

  

IT Services—2.6%

  

Mastercard, Inc. - Class A

     89,227        51,260,911   
   

 

 

  

Machinery—3.1%

  

FANUC Corp.

     421,300        61,091,524   
   

 

 

  

Media—6.9%

  

News Corp. - Class A (b)

     4,170,815        135,968,569   
   

 

 

  

Metals & Mining—0.7%

  

Turquoise Hill Resources, Ltd. (a) (b)

     2,195,666        13,020,299   
   

 

 

  

Pharmaceuticals—5.7%

  

Valeant Pharmaceuticals International, Inc. (a)

     469,341        40,400,873   

Zoetis, Inc. (b)

     2,330,546        71,990,566   
   

 

 

  
      112,391,439   
   

 

 

  

Software—1.3%

  

VMware, Inc. - Class A (a) (b)

     375,437        25,150,525   
   

 

 

  

Specialty Retail—6.0%

  

L Brands, Inc.

     1,181,215        58,174,839   

TJX Cos., Inc.

     1,224,604        61,303,676   
   

 

 

  
      119,478,515   
   

 

 

  

Textiles, Apparel & Luxury Goods—6.9%

  

Cie Financiere Richemont S.A. - Class A

     741,396        65,036,456   

NIKE, Inc. - Class B

     664,926        42,342,488   

Prada S.p.A. (b)

     3,146,100        28,342,724   
   

 

 

  
      135,721,668   
   

 

 

  

Wireless Telecommunication Services—2.1%

  

  

Crown Castle International Corp. (a)

     570,681        41,311,597   
   

 

 

  

Total Common Stocks
(Cost $1,580,295,219)

       1,955,919,601   
   

 

 

  
Short-Term Investments—4.6%   

Mutual Fund—4.2%

  

  

State Street Navigator Securities Lending MET Portfolio (c)

     82,777,398        82,777,398   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Janus Forty Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  

Repurchase Agreement—0.4%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $7,450,006 on 07/01/13, collateralized by $7,610,000 Federal National Mortgage Association at 0.420% due 06/05/15 with a value of $7,600,488.

     7,450,000      $ 7,450,000   
   

 

 

  

Total Short-Term Investments
(Cost $90,227,398)

       90,227,398   
   

 

 

  

Total Investments—103.5%
(Cost $1,670,522,617) (d)

       2,046,146,999   

Other assets and liabilities (net)—(3.5)%

       (69,101,343 ) 
   

 

 

  
Net Assets—100.0%     $ 1,977,045,656   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $80,810,721 and the collateral received consisted of cash in the amount of $82,777,398. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $1,670,522,617. The aggregate unrealized appreciation and depreciation of investments were $407,627,889 and $(32,003,507), respectively, resulting in net unrealized appreciation of $375,624,382.

 

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Janus Forty Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Aerospace & Defense

    $ 64,294,195       $ —        $ —         $ 64,294,195   

Auto Components

      46,560,691         —          —           46,560,691   

Beverages

      —           29,398,384        —           29,398,384   

Biotechnology

      184,836,375         —          —           184,836,375   

Chemicals

      39,874,890         —          —           39,874,890   

Commercial Banks

      63,002,184         —          —           63,002,184   

Computers & Peripherals

      143,296,588         —          —           143,296,588   

Diversified Telecommunication Services

      —           30,143,470        —           30,143,470   

Electronic Equipment, Instruments & Components

      93,055,979         —          —           93,055,979   

Health Care Equipment & Supplies

      31,262,065         —          —           31,262,065   

Health Care Providers & Services

      180,053,285         —          —           180,053,285   

Hotels, Restaurants & Leisure

      53,666,727         —          —           53,666,727   

Insurance

      —           97,755,547        —           97,755,547   

Internet & Catalog Retail

      62,021,767         —          —           62,021,767   

Internet Software & Services

      141,302,407         —          —           141,302,407   

IT Services

      51,260,911         —          —           51,260,911   

Machinery

      —           61,091,524        —           61,091,524   

Media

      135,968,569         —          —           135,968,569   

Metals & Mining

      13,020,299         —          —           13,020,299   

Pharmaceuticals

      112,391,439         —          —           112,391,439   

Software

      25,150,525         —          —           25,150,525   

Specialty Retail

      119,478,515         —          —           119,478,515   

Textiles, Apparel & Luxury Goods

      42,342,488         93,379,180        —           135,721,668   

Wireless Telecommunication Services

      41,311,597         —          —           41,311,597   

Total Common Stocks

      1,644,151,496         311,768,105        —           1,955,919,601   
Short-Term Investments           

Mutual Fund

      82,777,398         —          —           82,777,398   

Repurchase Agreement

      —           7,450,000        —           7,450,000   

Total Short-Term Investments

      82,777,398         7,450,000        —           90,227,398   

Total Investments

    $ 1,726,928,894       $ 319,218,105      $ —         $ 2,046,146,999   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (82,777,398 )    $ —         $ (82,777,398 ) 

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Janus Forty Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 2,046,146,999   

Cash

      2,059,933   

Cash denominated in foreign currencies (c)

      412,143   

Receivable for:

   

Investments sold

      15,381,463   

Fund shares sold

      752,380   

Dividends and interest

      1,000,487   
  

 

 

  

Total Assets

      2,065,753,405   

Liabilities

   

Payables for:

   

Investments purchased

      3,683,859   

Fund shares redeemed

      867,581   

Collateral for securities loaned

      82,777,398   

Accrued expenses:

   

Management fees

      1,005,009   

Distribution and service fees

      104,903   

Deferred trustees’ fees

      41,001   

Other expenses

      227,998   
  

 

 

  

Total Liabilities

      88,707,749   
  

 

 

  

Net Assets

    $ 1,977,045,656   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,381,118,685   

Distributions in excess on net investment income

      (731,736 ) 

Accumulated net realized gain

      221,034,841   

Unrealized appreciation on investments and foreign currency transactions

      375,623,866   
  

 

 

  

Net Assets

    $ 1,977,045,656   
  

 

 

  

Net Assets

   

Class A

    $ 1,456,528,406   

Class B

      480,633,477   

Class E

      39,883,773   

Capital Shares Outstanding*

   

Class A

      17,585,464   

Class B

      6,060,173   

Class E

      493,373   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 82.83   

Class B

      79.31   

Class E

      80.84   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,670,522,617.
(b) Includes securities loaned at value of $80,810,721.
(c) Identified cost of cash denominated in foreign currencies was $415,708.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 10,002,556   

Interest

      3,547   

Securities lending income

      89,775   
  

 

 

  

Total investment income

      10,095,878   

Expenses

   

Management fees

      5,960,318   

Administration fees

      23,938   

Custodian and accounting fees

      105,268   

Distribution and service fees—Class B

      605,887   

Distribution and service fees—Class E

      30,531   

Audit and tax services

      19,518   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      47,180   

Insurance

      5,924   

Miscellaneous

      5,840   
  

 

 

  

Total expenses

      6,827,526   

Less management fee waiver

      (114,043 ) 

Less broker commission recapture

      (18,144 ) 
  

 

 

  

Net expenses

      6,695,339   
  

 

 

  

Net Investment Income

      3,400,539   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      249,236,515   

Foreign currency transactions

      (54,565 ) 
  

 

 

  

Net realized gain

      249,181,950   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (120,300,549 ) 

Foreign currency transactions

      (26,483 ) 
  

 

 

  

Net change in unrealized depreciation

      (120,327,032 ) 
  

 

 

  

Net realized and unrealized gain

      128,854,918   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 132,255,457   
  

 

 

  

 

(a) Net of foreign withholding taxes of $176,050.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Janus Forty Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 3,400,539      $ 15,024,335   

Net realized gain

      249,181,950        6,840,071   

Net change in unrealized appreciation (depreciation)

      (120,327,032 )      340,941,178   
  

 

 

    

 

 

  

Increase in net assets from operations

      132,255,457        362,805,584   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (11,768,970 )      (5,837,440 ) 

Class B

      (2,989,896 )      (1,056,031 ) 

Class E

      (278,459 )      (115,043 ) 
  

 

 

    

 

 

  

Total distributions

      (15,037,325 )      (7,008,514 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      46,635,500        (179,376,050 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      163,853,632        176,421,020   

Net Assets

     

Beginning of period

      1,813,192,024        1,636,771,004   
  

 

 

    

 

 

  

End of period

    $ 1,977,045,656      $ 1,813,192,024   
  

 

 

    

 

 

  

Undistributed (distributions in excess of) net investment income

     

End of period

    $ (731,736 )    $ 10,905,050   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,544,479      $ 126,841,725        410,638      $ 30,486,318   

Reinvestments

      149,523        11,768,970        77,594        5,837,440   

Redemptions

      (719,061 )      (58,913,063 )      (2,947,401 )      (218,879,590 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      974,941      $ 79,697,632        (2,459,169 )    $ (182,555,832 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      404,965      $ 31,420,086        1,133,628      $ 80,840,933   

Reinvestments

      39,648        2,989,896        14,647        1,056,031   

Redemptions

      (818,044 )      (63,869,963 )      (1,112,247 )      (79,127,540 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (373,431 )    $ (29,459,981 )      36,028      $ 2,769,424   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      29,359      $ 2,336,888        161,027      $ 11,717,952   

Reinvestments

      3,623        278,459        1,566        115,043   

Redemptions

      (78,150 )      (6,217,498 )      (158,182 )      (11,422,637 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (45,168 )    $ (3,602,151 )      4,411      $ 410,358   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 46,635,500        $ (179,376,050 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Janus Forty Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 77.85      $ 63.65       $ 69.87       $ 64.76       $ 45.22       $ 83.81   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.17        0.66         0.32         0.29         0.07         0.02   

Net realized and unrealized gain (loss) on investments

      5.48        13.86         (5.32 )       5.94         19.47         (32.34 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      5.65        14.52         (5.00 )       6.23         19.54         (32.32 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.67 )      (0.32 )       (1.22 )       (1.12 )       0.00         (4.38 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.89 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.67 )      (0.32 )       (1.22 )       (1.12 )       0.00         (6.27 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 82.83      $ 77.85       $ 63.65       $ 69.87       $ 64.76       $ 45.22   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      7.28  (c)      22.83         (7.32 )       9.68         43.21         (41.85 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.65  (d)      0.66         0.66         0.67         0.68         0.67   

Net ratio of expenses to average net assets (%) (e)

      0.64  (d)      0.65         0.66         0.67         0.68         0.67   

Ratio of net investment income to average net assets (%)

      0.43  (d)      0.89         0.47         0.46         0.12         0.02   

Portfolio turnover rate (%)

      39  (c)      7         47         41         27         61   

Net assets, end of period (in millions)

    $ 1,456.5      $ 1,293.1       $ 1,213.8       $ 1,395.5       $ 1,271.8       $ 627.8   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 74.48      $ 60.93       $ 66.97       $ 62.17       $ 43.52       $ 81.06   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (loss) (a)

      0.07        0.48         0.15         0.14         (0.07 )       (0.17 ) 

Net realized and unrealized gain (loss) on investments

      5.24        13.23         (5.10 )       5.68         18.72         (31.12 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      5.31        13.71         (4.95 )       5.82         18.65         (31.29 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.48 )      (0.16 )       (1.09 )       (1.02 )       0.00         (4.36 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.89 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.48 )      (0.16 )       (1.09 )       (1.02 )       0.00         (6.25 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 79.31      $ 74.48       $ 60.93       $ 66.97       $ 62.17       $ 43.52   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      7.17  (c)      22.51         (7.54 )       9.40         42.85         (41.99 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.90  (d)      0.91         0.91         0.92         0.93         0.93   

Net ratio of expenses to average net assets (%) (e)

      0.89  (d)      0.90         0.91         0.92         0.93         0.93   

Ratio of net investment income (loss) to average net assets (%)

      0.17  (d)      0.68         0.22         0.23         (0.13 )       (0.27 ) 

Portfolio turnover rate (%)

      39  (c)      7         47         41         27         61   

Net assets, end of period (in millions)

    $ 480.6      $ 479.2       $ 389.8       $ 420.5       $ 314.8       $ 136.4   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Janus Forty Portfolio

Financial Highlights

 

 

Selected per share data                                         
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 75.94      $ 62.10       $ 68.19       $ 63.25       $ 44.23       $ 82.22   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (loss) (a)

      0.11        0.56         0.20         0.19         (0.02 )       (0.10 ) 

Net realized and unrealized gain (loss) on investments

      5.34        13.49         (5.18 )       5.80         19.04         (31.63 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      5.45        14.05         (4.98 )       5.99         19.02         (31.73 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.55 )      (0.21 )       (1.11 )       (1.05 )       0.00         (4.37 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.89 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.55 )      (0.21 )       (1.11 )       (1.05 )       0.00         (6.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 80.84      $ 75.94       $ 62.10       $ 68.19       $ 63.25       $ 44.23   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      7.22  (c)      22.64         (7.45 )       9.50         43.00         (41.94 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.80  (d)      0.81         0.81         0.82         0.83         0.83   

Net ratio of expenses to average net assets (%) (e)

      0.79  (d)      0.80         0.81         0.82         0.83         0.82   

Ratio of net investment income (loss) to average net assets (%)

      0.27  (d)      0.78         0.30         0.30         (0.03 )       (0.15 ) 

Portfolio turnover rate (%)

      39  (c)      7         47         41         27         61   

Net assets, end of period (in millions)

    $ 39.9      $ 40.9       $ 33.2       $ 46.5       $ 50.8       $ 27.8   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Janus Forty Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Janus Forty Portfolio (the “Portfolio”), which is non-diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

Janus Forty Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due

 

MIST-13

Met Investors Series Trust

Janus Forty Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

to broker commission recapture, foreign currency transactions, expired capital loss carryforwards, litigation reclass and passive foreign investment companies (PFICs). These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $7,450,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference

 

MIST-14

Met Investors Series Trust

Janus Forty Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 783,020,922       $ 0       $ 720,980,838   

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $38,545,726 in purchases of investments and $1,959,186 in sales of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Janus Capital Management LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

 

MIST-15

Met Investors Series Trust

Janus Forty Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$5,960,318      0.650 %    First $1 billion
     0.600 %    Over $1 billion

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets  
0.025%    Over $ 1 billion   

An identical agreement was in place for the period April 30, 2012 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

 

MIST-16

Met Investors Series Trust

Janus Forty Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

7. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$7,008,514    $ 31,817,029       $ —       $ —       $ 7,008,514       $ 31,817,029   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$14,992,849    $ —       $ 491,651,183       $ (27,899,566 )    $ 478,744,466   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2017

    Total  
$27,899,566    $ 27,899,566   

 

MIST-17

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Managed by J.P. Morgan Investment Management Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the JPMorgan Core Bond Portfolio returned -2.85%. The Portfolio’s benchmark, the Barclays U.S. Aggregate Bond Index1, returned -2.44%. Since inception on February 28, 2013, the Class A shares of the JPMorgan Core Bond Portfolio returned -2.70%. The Portfolio’s benchmark, the Barclays U.S. Aggregate Bond Index1, returned -2.17% over the same period.

MARKET ENVIRONMENT / CONDITIONS

Market participants reacted to the Federal Reserve (“Fed”) Chairman Ben Bernanke’s testimony to Congress in May during which he indicated that the Fed could begin reducing its $85 billion in monthly asset purchases at one of its next few meetings if improvements in economic growth seemed sustainable. Largely ignored was that he also indicated they could increase purchases or revisit the program as needed. Increases in the Fed’s target short-term interest rates remain dependent on a strong labor market and healthy economy. Despite fairly strong employment numbers as of late, inflation and Gross Domestic Product (GDP) growth remain low, with the Fed suggesting a rate hike in early 2015. In all, U.S. Treasury rates, credit markets and equities have weakened on the Fed’s remarks. The sell-off in Treasuries and risk markets was even more aggressive after the June 19th Federal Open Market Committee (FOMC) meeting when the Fed reiterated the possibility of scaling back asset purchases later in the year and added that purchases may end in mid-2014 if incoming data is consistent with the Fed’s “rosy” forecasts. Although the Fed reinforced that its policies would be data dependent, rates backed up fiercely, sending the ten-year Treasury yield over 2.60% in June, from just 1.63% on May 1st.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Performance during the first six months of 2013 was impacted by the initial ramp-up period for the Portfolio. Compounding this was the volatile nature of the fixed income markets, especially during the final few weeks of the six month time period. February and March were positive months for the Portfolio relative to the benchmark as the Portfolio deployed cash into the marketplace and took advantage of selective spread widening to add positions in various sectors. During the second quarter, the Portfolio trailed the benchmark. The mortgage allocation in the Portfolio detracted as a whole during the same time period, but certain segments of the mortgage allocation performed better than others. Agency and Non-Agency Collateralized Mortgage Obligations (CMOs) did well relative to the benchmark mortgage positions. Detracting from performance during the period was the Portfolio’s allocation to Treasuries, as a longer duration position and curve positioning within this sector worked against the Portfolio. The Portfolio’s underweight to credit relative to the benchmark contributed to performance as credit spreads widened during the period.

At the end of the six month time period, the allocations in the portfolio were as follows: Treasury, 30.70%; Agency debt, 2.41%; Mortgage-Backed Securities (MBS), 44.27%; Asset-Backed Securities (ABS), 4.21%; Commercial Mortgage-Backed Securities (CMBS), 1.40%; Credit, 16.25%; and Cash, 0.76%. At period end, duration was in line with the benchmark and reflective of the uncertainty surrounding interest rates. The Portfolio remained underweight the longer end of the curve relative to the benchmark, with more of a focus upon the belly of the curve (3-10 years).

Douglas Swanson

Peter Simons

Henry Song

Portfolio Managers

J.P. Morgan Investment Management Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-1

Met Investors Series Trust

JPMorgan Core Bond Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. AGGREGATE BOND INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
JPMorgan Core Bond Portfolio                      

Class A

        —           —           —           -2.70   

Class B

        -2.85           -0.88           3.11           2.90   
Barclays U.S. Aggregate Bond Index        -2.44           -0.69           5.19           5.00   

1 The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgagebacked securities.

2 Inception of Class A shares is 2/28/2013. Inception of Class B (formerly Class C) shares is 4/28/2008. Class C shares were converted to Class B shares effective 1/7/2013.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

         
% of
Net Assets		  
U.S. Treasury Notes      24.2   
Fannie Mae Pool      14.2   
Government National Mortgage Association (CMO)      7.1   
Freddie Mac Gold Pool      4.2   
U.S. Treasury Coupon Strips      3.7   
U.S. Treasury Bonds      2.6   
Freddie Mac REMICS (CMO)      2.6   
Fannie Mae REMICS (CMO)      2.6   
Freddie Mac 30 Yr. Gold Pool      2.4   
Ginnie Mae II Pool      2.0   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
U.S. Treasury & Government Agencies      74.5   
Corporate Bonds & Notes      16.2   
Mortgage-Backed Securities      4.6   
Asset-Backed Securities      4.2   
Foreign Government      0.5   

 

MIST-2

Met Investors Series Trust

JPMorgan Core Bond Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

JPMorgan Core Bond Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)(b)

      Actual      0.44 %     $ 1,000.00         $ 973.00         $ 1.46   
     Hypothetical*      0.44 %     $ 1,000.00         $ 1,015.37         $ 1.49   

Class B(a)(c)

      Actual      0.71 %     $ 1,000.00         $ 971.50         $ 3.47   
     Hypothetical*      0.71 %     $ 1,000.00         $ 1,021.27         $ 3.56   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days for Class B and 123 days for Class A) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

(b) Commencement of operations was February 28, 2013.

(c) On January 7, 2013, Class C shares were converted into Class B shares. The financial information of Class B includes the financial information of Class C prior to the conversion.

 

MIST-3

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—73.6% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—34.0%

  

Fannie Mae 10 Yr. Pool
3.670%, 07/25/23 (a)

     2,500,000      $ 2,523,450   

4.500%, 07/01/21

     1,720,123        1,825,136   

Fannie Mae 20 Yr. Pool
4.000%, 02/01/31

     3,532,400        3,684,536   

4.500%, 10/01/30

     1,123,382        1,202,712   

5.000%, 11/01/29

     2,802,048        3,035,216   

6.000%, 02/01/28

     781,489        856,804   

6.000%, 07/01/28

     1,034,332        1,131,349   

Fannie Mae 30 Yr. Pool
3.500%, 07/01/42

     2,985,193        3,034,457   

3.500%, 08/01/42

     2,254,109        2,291,308   

3.500%, 01/01/43

     4,323,549        4,394,900   

3.500%, 03/01/43

     10,393,691        10,573,727   

4.500%, 02/01/40

     1,171,088        1,264,475   

5.000%, 09/01/35

     2,905,578        3,128,398   

6.000%, 12/01/39

     1,759,543        1,912,177   

Fannie Mae ARM Pool
0.530%, 05/01/23 (b)

     20,875,000        20,927,431   

0.578%, 02/01/23 (b)

     5,000,000        5,004,408   

Fannie Mae Benchmark REMIC (CMO)
5.500%, 06/25/37

     1,954,806        2,229,541   

Fannie Mae Pool

    

1.735%, 05/01/20

     15,000,000        14,478,981   

1.750%, 06/01/20

     7,542,000        7,256,517   

1.800%, 02/01/20

     3,120,316        3,038,460   

1.810%, 01/01/20

     4,466,608        4,358,032   

2.010%, 07/01/19

     3,000,000        2,989,153   

2.010%, 06/01/20

     12,541,000        12,128,058   

2.330%, 11/01/22

     17,810,000        16,961,877   

2.350%, 05/01/23

     4,992,541        4,723,161   

2.360%, 05/01/23

     9,500,000        8,978,505   

2.420%, 05/01/23

     5,992,929        5,682,144   

2.420%, 06/01/23

     5,000,000        4,737,347   

2.450%, 11/01/22

     3,000,000        2,850,126   

2.460%, 02/01/23

     1,489,235        1,428,483   

2.500%, 04/01/23

     2,000,000        1,875,922   

2.510%, 06/01/23

     4,000,000        3,818,547   

2.520%, 05/01/23

     25,000,000        23,446,259   

2.530%, 05/01/23

     4,289,000        4,106,460   

2.540%, 05/01/23

     5,000,000        4,791,447   

2.640%, 04/01/23

     1,995,527        1,924,200   

2.640%, 05/01/23

     2,397,285        2,310,362   

2.680%, 04/01/19

     1,000,000        1,033,161   

2.700%, 05/01/23

     5,000,000        4,761,333   

2.703%, 04/01/23

     2,496,913        2,432,409   

2.720%, 03/01/23

     3,287,919        3,196,948   

2.740%, 06/01/23

     3,000,000        2,909,324   

2.900%, 06/01/22

     7,860,005        7,702,564   

3.000%, 05/01/22

     3,500,000        3,504,751   

3.000%, 01/01/43

     6,122,692        5,862,946   

3.200%, 11/01/20

     11,021,619        11,338,288   

3.440%, 11/01/21

     4,178,642        4,320,754   

3.500%, 08/01/26

     1,609,582        1,648,591   

3.500%, 02/01/33

     6,410,578        6,503,151   

3.500%, 05/01/33

     7,807,032        7,919,810   

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae Pool

    

3.500%, 12/01/42

     8,449,274      $ 8,441,926   

3.500%, 03/01/43

     9,929,979        9,921,332   

3.500%, 05/01/43

     32,885,626        32,857,014   

3.500%, 06/01/43

     7,987,678        7,980,775   

3.728%, 07/01/22

     5,986,437        6,328,163   

3.738%, 06/01/18

     1,967,092        2,149,960   

3.770%, 12/01/20

     2,409,624        2,556,353   

3.772%, 05/01/22

     9,968,370        10,548,580   

3.970%, 07/01/21

     4,886,480        5,272,755   

3.990%, 12/01/20

     2,856,244        3,063,438   

4.000%, 10/01/32

     2,575,127        2,656,074   

4.000%, 12/01/40

     1,250,343        1,292,788   

4.000%, 07/01/42

     4,831,550        4,984,639   

4.260%, 12/01/19

     2,856,608        3,148,081   

4.330%, 04/01/20

     4,016,014        4,437,640   

4.380%, 04/01/21

     3,250,000        3,596,602   

4.770%, 06/01/19

     3,717,685        4,164,449   

Fannie Mae REMICS (CMO)

    

0.657%, 03/25/27 (b)

     1,256,120        1,237,251   

0.693%, 05/25/35 (b)

     6,531,192        6,531,192   

0.693%, 10/25/42 (b)

     1,945,875        1,958,305   

1.093%, 03/25/38 (b)

     1,517,837        1,536,282   

3.000%, 05/25/26

     3,591,549        3,637,876   

3.500%, 07/25/24

     3,289,683        3,480,862   

3.500%, 02/25/43

     9,797,579        10,040,422   

3.500%, 03/25/43

     6,275,687        6,510,937   

4.500%, 07/25/38

     1,027,402        1,059,812   

5.000%, 03/25/40

     13,200,000        14,547,812   

5.750%, 08/25/36

     746,588        739,848   

6.000%, 01/25/36

     1,400,000        1,539,547   

6.337%, 01/25/41 (b) (c)

     10,185,473        2,417,710   

6.500%, 07/18/28

     421,346        483,453   

Fannie Mae-Aces

    

2.207%, 01/25/22

     10,000,000        9,530,810   

2.280%, 12/27/22

     9,391,000        8,736,325   

2.389%, 01/25/23 (b)

     3,000,000        2,786,001   

Freddie Mac 15 Yr. Gold Pool

    

3.500%, 05/01/26

     1,577,486        1,648,743   

Freddie Mac 20 Yr. Gold Pool

    

3.500%, 03/01/32

     2,838,510        2,934,865   

Freddie Mac 30 Yr. Gold Pool

    

3.000%, TBA (d)

     10,000,000        9,746,875   

3.500%, 08/01/42

     6,215,612        6,304,587   

3.500%, 10/01/42

     5,628,008        5,708,571   

3.500%, 11/01/42

     7,311,194        7,415,851   

3.500%, 04/01/43

     3,205,563        3,253,059   

3.500%, TBA (d)

     15,000,000        15,192,188   

5.000%, 08/01/39

     3,203,014        3,501,280   

6.000%, 12/01/39

     1,853,711        2,012,013   

Freddie Mac ARM Non-Gold Pool

    

3.990%, 07/01/40 (b)

     9,481,178        10,072,157   

Freddie Mac Gold Pool

    

3.500%, 12/01/32

     8,578,231        8,928,315   

3.500%, 01/01/33

     12,254,568        12,754,617   

3.500%, 02/01/33

     15,377,922        16,005,547   

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—(Continued)

  

Freddie Mac Gold Pool

    

3.500%, 03/01/33

     10,736,163      $ 11,174,649   

3.500%, 04/01/33

     13,919,509        14,489,464   

3.500%, 05/01/33

     5,028,361        5,233,113   

3.500%, 06/01/43

     4,992,000        5,006,875   

4.000%, 09/01/32

     2,716,555        2,918,417   

4.000%, 11/01/32

     6,254,938        6,700,217   

4.000%, 12/01/32

     3,331,968        3,569,172   

4.000%, 01/01/33

     1,380,983        1,479,393   

4.000%, 02/01/33

     1,259,806        1,349,507   

5.000%, 02/01/34

     1,126,938        1,195,472   

Freddie Mac REMICS (CMO)
0.643%, 01/15/41 (b)

     862,947        871,500   

0.950%, 03/15/24 (b)

     1,548,732        1,564,370   

3.500%, 12/15/25

     1,000,000        1,027,787   

3.500%, 12/15/29

     1,756,214        1,829,037   

3.500%, 08/15/39

     5,000,000        5,267,200   

3.500%, 01/15/42

     1,502,659        1,486,177   

4.500%, 03/15/40

     1,000,000        1,034,229   

5.000%, 05/15/22

     15,091,225        15,887,001   

5.000%, 10/15/34

     4,017,029        4,187,444   

6.000%, 07/15/35

     12,664,166        14,164,047   

6.000%, 03/15/36

     2,314,934        2,700,662   

6.178%, 10/15/37 (b) (c)

     11,028,221        1,905,059   

6.208%, 11/15/36 (b) (c)

     8,160,939        1,184,315   

6.500%, 05/15/28

     1,144,238        1,281,280   

6.500%, 03/15/37

     2,037,573        2,362,478   

Freddie Mac Strips

    

0.693%, 08/15/42 (b)

     963,021        964,329   

3.000%, 01/15/43

     9,856,936        9,630,273   

Freddie Mac Strips (CMO)

    

0.643%, 09/15/42 (b)

     10,236,195        10,302,203   

0.693%, 08/15/42 (b)

     4,867,287        4,901,807   

0.693%, 10/15/42 (b)

     1,458,780        1,472,150   

Ginnie Mae II Pool

    

4.375%, 06/20/63

     10,011,087        10,962,140   

4.433%, 05/20/63

     15,628,447        17,152,221   

4.462%, 05/20/63

     10,001,452        11,001,598   

4.479%, 04/20/63

     5,013,656        5,538,590   
   

 

 

  
      741,485,954   
   

 

 

  

Federal Agencies—9.0%

  

Government National Mortgage Association (CMO)

  

  

0.450%, 02/20/63 (b)

     9,930,651        9,903,252   

0.498%, 08/20/60 (b)

     1,430,082        1,427,221   

0.498%, 11/20/62 (b)

     1,054,446        1,052,468   

0.538%, 12/20/62 (b)

     3,410,720        3,384,850   

0.598%, 02/20/62 (b)

     9,930,367        9,910,883   

0.608%, 03/20/63 (b)

     998,039        992,897   

0.618%, 02/20/63 (b)

     2,705,388        2,691,831   

0.668%, 03/20/63 (b)

     4,912,837        4,904,584   

0.678%, 04/20/63 (b)

     10,012,575        9,978,692   

0.692%, 09/20/37 (b)

     819,390        825,976   

0.698%, 01/20/63 (b)

     4,674,017        4,688,932   

Federal Agencies—(Continued)

  

Government National Mortgage Association (CMO)

  

  

0.698%, 04/20/63 (b)

     10,157,105      $ 10,131,844   

0.748%, 04/20/62 (b)

     1,002,326        1,006,027   

1.650%, 02/20/63

     17,067,085        16,635,117   

1.650%, 04/20/63

     10,019,661        9,751,375   

1.750%, 03/20/63

     2,503,436        2,447,286   

2.000%, 03/16/25

     1,637,796        1,729,250   

2.000%, 06/20/62

     3,935,762        3,960,490   

3.500%, 05/20/35

     726,625        751,216   

4.000%, 02/20/37

     671,040        698,885   

4.500%, 08/20/33

     2,281,974        2,329,750   

4.500%, 08/20/34

     1,719,899        1,754,794   

4.500%, 06/20/36

     936,086        972,037   

4.526%, 04/20/43 (b)

     3,557,000        3,890,469   

4.715%, 11/20/42 (b)

     15,537,980        17,659,644   

5.000%, 12/20/33

     2,000,000        2,227,992   

5.000%, 09/20/38

     5,741,715        6,236,970   

5.000%, 06/16/39

     1,497,937        1,672,158   

5.000%, 07/20/39

     4,863,318        5,358,326   

5.000%, 10/20/39

     3,286,699        3,620,183   

5.251%, 06/20/40 (b)

     7,835,933        8,890,470   

5.500%, 02/20/33

     605,124        649,545   

5.500%, 07/16/33 (c)

     2,161,657        472,405   

5.500%, 06/20/36

     1,182,475        1,237,888   

Residual Funding Corp. Principal Strip
Zero Coupon, 07/15/20

     42,209,000        36,067,000   

Tennessee Valley Authority

    

5.250%, 09/15/39

     600,000        675,076   

6.235%, 07/15/45

     4,250,000        4,989,844   

Tennessee Valley Authority Principal Strip

  

  

Zero Coupon, 11/01/25

     1,000,000        629,109   

Zero Coupon, 06/15/35

     750,000        292,640   
   

 

 

  
      196,499,376   
   

 

 

  

U.S. Treasury—30.6%

    

U.S. Treasury Bonds

    

4.375%, 02/15/38

     1,000,000        1,170,938   

4.500%, 05/15/38

     1,000,000        1,193,125   

4.750%, 02/15/37

     2,000,000        2,467,500   

5.000%, 05/15/37

     18,750,000        23,932,612   

5.250%, 11/15/28

     13,000,000        16,526,250   

5.250%, 02/15/29

     500,000        636,094   

5.500%, 08/15/28

     3,000,000        3,903,750   

6.125%, 08/15/29

     5,000,000        6,955,470   

U.S. Treasury Coupon Strips

    

Zero Coupon, 02/15/18

     5,000,000        4,703,915   

Zero Coupon, 05/15/18

     6,000,000        5,598,798   

Zero Coupon, 02/15/21

     30,000,000        25,430,070   

Zero Coupon, 05/15/21

     15,000,000        12,597,150   

Zero Coupon, 11/15/21

     21,000,000        17,254,881   

Zero Coupon, 05/15/22

     5,000,000        4,027,775   

Zero Coupon, 05/15/31

     9,000,000        4,838,805   

Zero Coupon, 11/15/33

     9,000,000        4,363,821   

Zero Coupon, 05/15/35

     4,000,000        1,825,624   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

U.S. Treasury—(Continued)

    

U.S. Treasury Notes

    

0.250%, 10/31/13

     15,000,000      $ 15,007,620   

0.250%, 01/15/15

     10,500,000        10,497,953   

0.750%, 12/31/17

     10,000,000        9,783,590   

0.750%, 02/28/18

     25,000,000        24,388,675   

0.875%, 01/31/18

     20,000,000        19,643,760   

1.000%, 01/15/14

     45,000,000        45,212,715   

1.000%, 08/31/19

     25,000,000        23,937,500   

1.250%, 02/29/20

     11,000,000        10,590,074   

1.375%, 11/30/18

     10,000,000        9,931,250   

1.375%, 01/31/20

     8,000,000        7,777,504   

1.500%, 08/31/18

     37,000,000        37,104,044   

1.750%, 10/31/18

     3,000,000        3,042,186   

1.750%, 05/15/22

     2,500,000        2,383,790   

2.125%, 08/15/21

     40,000,000        39,837,520   

2.375%, 10/31/14

     9,000,000        9,256,644   

2.500%, 04/30/15

     6,000,000        6,236,484   

2.625%, 06/30/14

     6,000,000        6,144,846   

2.625%, 01/31/18

     20,000,000        21,225,000   

2.625%, 08/15/20

     20,000,000        20,900,000   

2.625%, 11/15/20

     24,000,000        25,006,872   

3.125%, 04/30/17

     10,000,000        10,797,660   

3.125%, 05/15/21

     27,000,000        28,993,356   

3.250%, 05/31/16

     8,000,000        8,602,496   

3.625%, 02/15/21

     44,000,000        48,905,296   

4.250%, 11/15/13

     10,000,000        10,153,520   

4.500%, 02/15/16

     25,000,000        27,568,350   

5.125%, 05/15/16

     40,000,000        45,121,880   
   

 

 

  
      665,477,163   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $1,657,100,907)

       1,603,462,493   
   

 

 

  
Corporate Bonds & Notes—16.0%   

Aerospace/Defense—0.1%

    

Northrop Grumman Corp.
1.750%, 06/01/18

     418,000        405,430   

Northrop Grumman Systems Corp.
7.750%, 02/15/31

     350,000        458,054   

United Technologies Corp.
7.500%, 09/15/29

     1,568,000        2,154,145   
   

 

 

  
      3,017,629   
   

 

 

  

Agriculture—0.1%

    

Bunge NA Finance L.P.
5.900%, 04/01/17

     247,000        272,062   

Bunge, Ltd. Finance Corp.
8.500%, 06/15/19

     400,000        493,681   

Cargill, Inc.
7.350%, 03/06/19 (144A)

     1,055,000        1,306,283   
   

 

 

  
      2,072,026   
   

 

 

  

Airlines—0.0%

    

Air Canada
4.125%, 05/15/25 (144A)

     388,000      $ 387,030   
   

 

 

  

Auto Manufacturers—0.2%

    

Daimler Finance North America LLC
1.875%, 01/11/18 (144A)

     328,000        320,073   

2.250%, 07/31/19 (144A)

     2,300,000        2,234,450   

Nissan Motor Acceptance Corp.
1.800%, 03/15/18 (144A)

     789,000        768,180   
   

 

 

  
      3,322,703   
   

 

 

  

Auto Parts & Equipment—0.0%

    

Johnson Controls, Inc.
5.000%, 03/30/20

     635,000        697,396   
   

 

 

  

Banks—4.2%

    

American Express Bank FSB
6.000%, 09/13/17

     1,800,000        2,073,917   

American Express Centurion Bank
5.950%, 06/12/17

     250,000        285,282   

Bank of America Corp.
2.000%, 01/11/18

     2,450,000        2,373,104   

3.300%, 01/11/23

     971,000        917,738   

5.875%, 01/05/21

     2,500,000        2,813,715   

6.000%, 09/01/17

     360,000        403,543   

Bank of Montreal
2.550%, 11/06/22

     500,000        463,999   

Bank of New York Mellon Corp. (The)
4.150%, 02/01/21

     500,000        531,789   

5.450%, 05/15/19

     278,000        321,127   

Bank of Nova Scotia
2.550%, 01/12/17

     300,000        308,764   

4.375%, 01/13/21

     500,000        545,725   

Barclays Bank plc
2.250%, 05/10/17 (144A)

     1,000,000        1,025,900   

5.125%, 01/08/20

     1,080,000        1,194,793   

BB&T Corp.
2.050%, 06/19/18

     833,000        820,872   

2.150%, 03/22/17

     485,000        485,797   

6.850%, 04/30/19

     525,000        637,810   

Canadian Imperial Bank of Commerce

    

1.550%, 01/23/18

     330,000        321,413   

Capital One Financial Corp.

    

4.750%, 07/15/21

     907,000        956,633   

5.250%, 02/21/17

     170,000        187,676   

Capital One N.A.

    

1.500%, 03/22/18

     500,000        481,926   

Citigroup, Inc.

    

1.250%, 01/15/16

     3,000,000        2,964,138   

3.375%, 03/01/23

     231,000        220,978   

5.375%, 08/09/20

     350,000        387,030   

6.125%, 05/15/18

     1,000,000        1,144,738   

8.500%, 05/22/19

     4,138,000        5,213,992   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA

    

3.375%, 01/19/17

     1,230,000        1,291,782   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

    

Credit Suisse

    

4.375%, 08/05/20

     1,000,000      $ 1,072,120   

5.300%, 08/13/19

     300,000        337,496   

Deutsche Bank AG

    

6.000%, 09/01/17

     200,000        230,205   

Fifth Third Bancorp

    

8.250%, 03/01/38

     500,000        634,067   

Goldman Sachs Group, Inc. (The)

    

1.600%, 11/23/15

     420,000        420,958   

5.375%, 03/15/20

     1,000,000        1,085,054   

5.750%, 01/24/22

     1,000,000        1,103,013   

5.950%, 01/15/27

     1,000,000        1,028,260   

6.250%, 09/01/17

     2,900,000        3,286,292   

7.500%, 02/15/19

     3,000,000        3,562,722   

HSBC Bank plc

    

1.500%, 05/15/18 (144A)

     783,000        754,567   

3.100%, 05/24/16 (144A)

     1,038,000        1,089,047   

3.500%, 06/28/15 (144A)

     1,550,000        1,625,319   

4.125%, 08/12/20 (144A)

     2,002,000        2,097,007   

HSBC USA, Inc.

    

1.625%, 01/16/18

     500,000        487,806   

ING Bank NV

    

1.375%, 03/07/16 (144A)

     500,000        494,070   

3.750%, 03/07/17 (144A)

     1,000,000        1,046,640   

KeyCorp

    

5.100%, 03/24/21

     350,000        389,397   

Macquarie Bank, Ltd.

    

5.000%, 02/22/17 (144A)

     1,500,000        1,607,233   

Manufacturers & Traders Trust Co.

    

6.625%, 12/04/17

     970,000        1,141,177   

Morgan Stanley

    

1.750%, 02/25/16

     107,000        106,002   

5.500%, 01/26/20

     2,930,000        3,145,024   

5.625%, 09/23/19

     3,030,000        3,256,738   

5.750%, 10/18/16

     2,757,000        3,043,450   

Nordea Bank AB

    

1.625%, 05/15/18 (144A)

     1,400,000        1,353,814   

4.875%, 01/27/20 (144A)

     1,000,000        1,099,829   

Northern Trust Corp.

    

3.375%, 08/23/21

     887,000        899,406   

PNC Funding Corp.

    

5.125%, 02/08/20

     800,000        879,018   

6.700%, 06/10/19

     1,300,000        1,558,747   

Rabobank Nederland

    

3.875%, 02/08/22

     700,000        704,913   

Royal Bank of Canada

    

1.200%, 09/19/17

     1,000,000        975,660   

2.300%, 07/20/16

     275,000        282,987   

Skandinaviska Enskilda Banken AB
1.750%, 03/19/18 (144A)

     402,000        390,945   

Stadshypotek AB
1.875%, 10/02/19 (144A)

     1,500,000        1,434,450   

Standard Chartered Bank
6.400%, 09/26/17 (144A)

     1,100,000        1,237,401   

State Street Corp.

    

3.100%, 05/15/23

     407,000        381,225   

4.375%, 03/07/21

     300,000        324,703   

Banks—(Continued)

    

SunTrust Banks, Inc.

    

2.750%, 05/01/23

     2,000,000      $ 1,840,186   

3.500%, 01/20/17

     310,000        324,405   

Toronto-Dominion Bank (The)

    

1.400%, 04/30/18

     1,450,000        1,407,379   

2.500%, 07/14/16

     300,000        310,987   

UBS AG

    

5.750%, 04/25/18

     917,000        1,059,703   

5.875%, 12/20/17

     900,000        1,035,227   

US Bancorp
4.125%, 05/24/21

     635,000        676,654   

Wachovia Bank N.A.
6.000%, 11/15/17

     2,491,000        2,842,515   

Wachovia Corp.
5.750%, 02/01/18

     2,800,000        3,224,939   

Wells Fargo & Co.
4.600%, 04/01/21

     2,500,000        2,724,280   

Westpac Banking Corp.
1.375%, 05/30/18 (144A)

     2,000,000        1,933,600   
   

 

 

  
      90,320,818   
   

 

 

  

Beverages—0.2%

    

Anheuser-Busch InBev Finance, Inc.
1.250%, 01/17/18

     310,000        300,978   

Anheuser-Busch InBev Worldwide, Inc.
2.500%, 07/15/22

     950,000        886,918   

Beam, Inc.
3.250%, 05/15/22

     760,000        732,192   

Coca-Cola Co. (The)
1.150%, 04/01/18

     182,000        176,539   

Heineken NV
3.400%, 04/01/22 (144A)

     1,339,000        1,316,225   

PepsiCo, Inc.
0.483%, 02/26/16 (b)

     182,000        182,287   

SABMiller Holdings, Inc.
3.750%, 01/15/22 (144A)

     1,000,000        1,017,686   
   

 

 

  
      4,612,825   
   

 

 

  

Biotechnology—0.2%

    

Amgen, Inc.
4.500%, 03/15/20

     100,000        108,924   

5.700%, 02/01/19

     100,000        114,807   

6.375%, 06/01/37

     2,116,000        2,454,852   

Celgene Corp.
3.250%, 08/15/22

     250,000        237,105   

3.950%, 10/15/20

     500,000        517,974   

Gilead Sciences, Inc.
4.400%, 12/01/21

     630,000        676,516   
   

 

 

  
      4,110,178   
   

 

 

  

Chemicals—0.2%

    

Dow Chemical Co. (The)
4.250%, 11/15/20

     212,000        223,250   

7.375%, 11/01/29

     600,000        755,594   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Chemicals—(Continued)

    

Ecolab, Inc.
4.350%, 12/08/21

     700,000      $ 739,003   

EI du Pont de Nemours & Co.
4.150%, 02/15/43

     107,000        102,813   

PPG Industries, Inc.
7.400%, 08/15/19

     1,220,000        1,476,695   

7.700%, 03/15/38

     220,000        289,754   

Praxair, Inc.
1.250%, 11/07/18

     900,000        864,491   

Rohm & Haas Co.
6.000%, 09/15/17

     236,000        269,106   

7.850%, 07/15/29

     418,000        544,102   
   

 

 

  
      5,264,808   
   

 

 

  

Commercial Services—0.2%

  

ADT Corp. (The)

    

4.125%, 06/15/23

     625,000        588,694   

4.875%, 07/15/42

     420,000        356,560   

ERAC USA Finance LLC

    

4.500%, 08/16/21 (144A)

     1,740,000        1,819,610   

7.000%, 10/15/37 (144A)

     500,000        588,751   
   

 

 

  
      3,353,615   
   

 

 

  

Computers—0.5%

    

Apple, Inc.

    

0.523%, 05/03/18 (b)

     1,100,000        1,095,285   

2.400%, 05/03/23

     1,679,000        1,557,212   

EMC Corp.

    

2.650%, 06/01/20

     1,639,000        1,615,692   

Hewlett-Packard Co.

    

2.650%, 06/01/16

     1,100,000        1,121,230   

4.375%, 09/15/21

     1,000,000        984,163   

5.400%, 03/01/17

     1,000,000        1,090,103   

HP Enterprise Services LLC
7.450%, 10/15/29

     700,000        790,590   

International Business Machines Corp.

    

1.625%, 05/15/20

     3,420,000        3,201,554   
   

 

 

  
      11,455,829   
   

 

 

  

Construction Materials—0.0%

    

CRH America, Inc.
6.000%, 09/30/16

     404,000        454,949   
   

 

 

  

Distribution/Wholesale—0.0%

    

Arrow Electronics, Inc.

    

3.000%, 03/01/18

     49,000        48,930   

6.875%, 06/01/18

     300,000        343,815   

7.500%, 01/15/27

     300,000        343,756   
   

 

 

  
      736,501   
   

 

 

  

Diversified Financial Services—1.5%

    

American Express Co.
1.550%, 05/22/18

     700,000        679,575   

Diversified Financial Services—(Continued)

  

American Honda Finance Corp.

    

1.600%, 02/16/18 (144A)

     219,000      $ 215,317   

2.125%, 02/28/17 (144A)

     1,300,000        1,314,758   

Blackstone Holdings Finance Co. LLC
6.625%, 08/15/19 (144A)

     1,200,000        1,403,909   

Capital One Bank USA N.A.

    

3.375%, 02/15/23

     600,000        567,152   

8.800%, 07/15/19

     300,000        384,807   

Caterpillar Financial Services Corp.

    

1.300%, 03/01/18

     500,000        485,743   

7.150%, 02/15/19

     1,000,000        1,247,411   

Ford Motor Credit Co. LLC

    

1.525%, 05/09/16 (b)

     840,000        845,873   

4.250%, 02/03/17

     1,000,000        1,044,826   

General Electric Capital Corp.

    

4.375%, 09/16/20

     3,500,000        3,705,170   

5.400%, 02/15/17

     2,000,000        2,226,982   

General Electric Capital Corp.

    

5.500%, 01/08/20

     500,000        563,743   

5.625%, 09/15/17

     1,000,000        1,132,670   

6.000%, 08/07/19

     2,350,000        2,728,195   

6.750%, 03/15/32

     1,800,000        2,158,245   

Jefferies Group LLC

    

5.125%, 01/20/23

     300,000        297,687   

6.500%, 01/20/43

     112,000        107,231   

6.875%, 04/15/21

     475,000        522,401   

John Deere Capital Corp.
1.300%, 03/12/18

     400,000        387,471   

Macquarie Group, Ltd.
6.000%, 01/14/20 (144A)

     1,572,000        1,632,333   

MassMutual Global Funding II
5.250%, 07/31/18 (144A)

     880,000        995,431   

Merrill Lynch & Co., Inc.

    

6.050%, 05/16/16

     2,494,000        2,700,521   

6.400%, 08/28/17

     1,276,000        1,440,813   

6.500%, 07/15/18

     997,000        1,118,639   

Murray Street Investment Trust I
4.647%, 03/09/17 (e)

     1,600,000        1,693,981   

PACCAR Financial Corp.
0.800%, 02/08/16

     117,000        115,972   

Toyota Motor Credit Corp.

    

1.375%, 01/10/18

     700,000        682,292   

1.750%, 05/22/17

     500,000        498,267   
   

 

 

  
      32,897,415   
   

 

 

  

Electric—1.5%

    

Arizona Public Service Co.
4.500%, 04/01/42

     200,000        192,585   

Baltimore Gas & Electric Co.
5.200%, 06/15/33

     1,510,000        1,571,715   

CenterPoint Energy Houston Electric LLC
2.250%, 08/01/22

     950,000        873,827   

Cleveland Electric Illuminating Co. (The)
7.880%, 11/01/17

     1,118,000        1,349,799   

CMS Energy Corp.
8.750%, 06/15/19

     885,000        1,141,803   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electric—(Continued)

    

Commonwealth Edison Co.
5.950%, 08/15/16

     200,000      $ 227,691   

Consumers Energy Co.
5.650%, 04/15/20

     200,000        234,872   

DTE Electric Co.

    

3.900%, 06/01/21

     1,000,000        1,064,522   

5.700%, 10/01/37

     300,000        350,960   

Duke Energy Carolinas LLC

    

4.300%, 06/15/20

     619,000        673,663   

6.000%, 01/15/38

     600,000        704,387   

Duke Energy Progress, Inc.
4.100%, 03/15/43

     200,000        182,762   

5.300%, 01/15/19

     200,000        229,743   

5.700%, 04/01/35

     360,000        412,038   

Entergy Arkansas, Inc.
3.050%, 06/01/23

     765,000        729,664   

Florida Power & Light Co.

    

5.625%, 04/01/34

     1,250,000        1,442,495   

Hydro-Quebec

    

8.050%, 07/07/24

     700,000        962,732   

9.400%, 02/01/21

     845,000        1,189,572   

Indiana Michigan Power Co.

    

3.200%, 03/15/23

     330,000        312,807   

Kansas City Power & Light Co.

    

3.150%, 03/15/23

     604,000        573,401   

5.300%, 10/01/41

     315,000        320,219   

Nevada Power Co.

    

6.650%, 04/01/36

     360,000        452,295   

7.125%, 03/15/19

     200,000        247,735   

Nisource Finance Corp.

    

4.800%, 02/15/44

     162,000        146,691   

5.400%, 07/15/14

     500,000        522,547   

6.125%, 03/01/22

     1,875,000        2,116,057   

Northern States Power Co.

    

6.500%, 03/01/28

     628,000        790,562   

Ohio Power Co.

    

5.375%, 10/01/21

     305,000        350,857   

6.600%, 02/15/33

     258,000        304,290   

Pacific Gas & Electric Co.

    

3.500%, 10/01/20

     782,000        814,606   

6.050%, 03/01/34

     1,200,000        1,399,110   

PacifiCorp

    

5.500%, 01/15/19

     500,000        580,914   

PPL Electric Utilities Corp.
2.500%, 09/01/22

     300,000        280,965   

PPL Energy Supply LLC
4.600%, 12/15/21

     800,000        814,099   

PSEG Power LLC

    

5.320%, 09/15/16

     568,000        629,992   

5.500%, 12/01/15

     1,070,000        1,177,338   

Public Service Co. of Colorado

    

2.500%, 03/15/23

     800,000        748,610   

3.200%, 11/15/20

     375,000        384,204   

Public Service Co. of Oklahoma

    

5.150%, 12/01/19

     1,010,000        1,144,413   

Electric—(Continued)

    

Public Service Electric & Gas Co.

    

3.800%, 01/01/43

     700,000      $ 632,376   

State Grid Overseas Investment 2013, Ltd.

    

1.750%, 05/22/18 (144A)

     499,000        478,259   

Virginia Electric and Power Co.

    

2.750%, 03/15/23

     400,000        380,309   

2.950%, 01/15/22

     489,000        482,513   

6.000%, 05/15/37

     685,000        824,475   

Wisconsin Electric Power Co.

    

1.700%, 06/15/18

     840,000        829,609   

4.250%, 12/15/19

     618,000        680,011   

Xcel Energy, Inc.

    

0.750%, 05/09/16

     290,000        285,597   
   

 

 

  
      32,239,691   
   

 

 

  

Electronics—0.1%

    

Koninklijke Philips NV
3.750%, 03/15/22

     1,680,000        1,685,109   
   

 

 

  

Environmental Control—0.1%

    

Republic Services, Inc.

    

5.500%, 09/15/19

     650,000        735,677   

6.086%, 03/15/35

     500,000        551,849   

Waste Management, Inc.

    

7.100%, 08/01/26

     400,000        494,834   

7.375%, 03/11/19

     512,000        617,530   
   

 

 

  
      2,399,890   
   

 

 

  

Food—0.3%

    

ConAgra Foods, Inc.

    

1.300%, 01/25/16

     104,000        104,172   

Kellogg Co.

    

4.150%, 11/15/19

     500,000        536,905   

Kraft Foods Group, Inc.

    

6.125%, 08/23/18

     700,000        821,904   

6.875%, 01/26/39

     600,000        727,889   

Kroger Co. (The)

    

7.500%, 04/01/31

     1,140,000        1,380,457   

8.000%, 09/15/29

     610,000        766,227   

Mondelez International, Inc.

    

5.375%, 02/10/20

     700,000        785,158   

6.125%, 02/01/18

     600,000        693,440   
   

 

 

  
      5,816,152   
   

 

 

  

Gas—0.2%

    

AGL Capital Corp.

    

3.500%, 09/15/21

     1,000,000        1,020,325   

4.400%, 06/01/43

     375,000        347,527   

6.000%, 10/01/34

     1,000,000        1,163,487   

Atmos Energy Corp.

    

4.150%, 01/15/43

     460,000        422,079   

8.500%, 03/15/19

     200,000        261,475   

CenterPoint Energy, Inc.

    

6.500%, 05/01/18

     706,000        834,966   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Gas—(Continued)

    

Sempra Energy

    

2.875%, 10/01/22

     1,100,000      $ 1,027,960   
   

 

 

  
      5,077,819   
   

 

 

  

Healthcare-Products—0.0%

    

Baxter International, Inc.

    

1.850%, 06/15/18

     431,000        427,509   
   

 

 

  

Healthcare-Services—0.1%

    

Aetna, Inc.

    

6.625%, 06/15/36

     297,000        356,611   

Quest Diagnostics, Inc.

    

4.750%, 01/30/20

     400,000        421,956   

UnitedHealth Group, Inc.

    

2.875%, 03/15/23

     250,000        234,903   

5.800%, 03/15/36

     375,000        421,057   

WellPoint, Inc.

    

5.950%, 12/15/34

     272,000        302,805   

7.000%, 02/15/19

     450,000        540,256   
   

 

 

  
      2,277,588   
   

 

 

  

Holding Companies-Diversified—0.1%

  

EADS Finance B.V.

    

2.700%, 04/17/23 (144A)

     249,000        230,721   

Hutchison Whampoa International 11, Ltd.

    

4.625%, 01/13/22 (144A)

     1,100,000        1,123,059   
   

 

 

  
      1,353,780   
   

 

 

  

Household Products/Wares—0.0%

    

Kimberly-Clark Corp.

    

2.400%, 06/01/23

     600,000        559,581   
   

 

 

  

Insurance—0.9%

    

ACE INA Holdings, Inc.

    

2.700%, 03/13/23

     400,000        373,301   

Aflac, Inc.

    

3.625%, 06/15/23

     500,000        485,993   

4.000%, 02/15/22

     450,000        458,928   

6.900%, 12/17/39

     400,000        492,656   

Allstate Corp. (The)

    

3.150%, 06/15/23

     407,000        395,167   

American International Group, Inc.

    

5.850%, 01/16/18

     600,000        674,646   

8.250%, 08/15/18

     600,000        744,086   

Berkshire Hathaway Finance Corp.

    

3.000%, 05/15/22

     1,000,000        967,471   

4.300%, 05/15/43

     831,000        754,740   

CNA Financial Corp.

    

6.950%, 01/15/18

     550,000        628,336   

7.350%, 11/15/19

     500,000        605,405   

Liberty Mutual Group, Inc.

    

5.000%, 06/01/21 (144A)

     700,000        738,387   

Liberty Mutual Insurance Co.

    

7.875%, 10/15/26 (144A)

     500,000        609,323   

Insurance—(Continued)

    

Lincoln National Corp.

    

6.250%, 02/15/20

     800,000      $ 917,293   

8.750%, 07/01/19

     350,000        448,747   

Massachusetts Mutual Life Insurance Co.

    

5.625%, 05/15/33 (144A)

     720,000        772,713   

Nationwide Mutual Insurance Co.

    

8.250%, 12/01/31 (144A)

     1,000,000        1,246,429   

New York Life Global Funding

    

0.800%, 02/12/16 (144A)

     600,000        596,237   

1.650%, 05/15/17 (144A)

     956,000        946,677   

Pacific Life Insurance Co.

    

9.250%, 06/15/39 (144A)

     650,000        863,847   

Pricoa Global Funding I

    

1.600%, 05/29/18 (144A)

     1,378,000        1,328,958   

Principal Financial Group, Inc.

    

8.875%, 05/15/19

     690,000        893,066   

Prudential Insurance Co. of America (The)

    

8.300%, 07/01/25 (144A)

     1,450,000        1,873,426   

XL Group plc

    

6.375%, 11/15/24

     921,000        1,045,300   
   

 

 

  
      18,861,132   
   

 

 

  

Internet—0.1%

    

eBay, Inc.

    

3.250%, 10/15/20

     400,000        407,615   

4.000%, 07/15/42

     700,000        593,646   
   

 

 

  
      1,001,261   
   

 

 

  

Machinery-Diversified—0.0%

    

Deere & Co.

    

8.100%, 05/15/30

     600,000        849,157   
   

 

 

  

Media—0.9%

    

CBS Corp.

    

4.300%, 02/15/21

     515,000        534,697   

5.500%, 05/15/33

     255,000        255,379   

5.900%, 10/15/40

     125,000        130,253   

7.875%, 07/30/30

     140,000        178,378   

Comcast Corp.

    

3.125%, 07/15/22

     900,000        876,894   

4.250%, 01/15/33

     1,880,000        1,798,799   

5.700%, 07/01/19

     1,000,000        1,167,862   

COX Communications, Inc.
3.250%, 12/15/22 (144A)

     1,010,000        950,234   

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
1.750%, 01/15/18

     282,000        272,250   

5.000%, 03/01/21

     1,400,000        1,474,686   

6.350%, 03/15/40

     530,000        553,245   

6.375%, 03/01/41

     300,000        313,523   

Discovery Communications LLC
4.375%, 06/15/21

     1,240,000        1,301,685   

Historic TW, Inc.
6.625%, 05/15/29

     300,000        350,160   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—(Continued)

    

NBCUniversal Media LLC
4.375%, 04/01/21

     1,000,000      $ 1,078,694   

News America, Inc.
6.550%, 03/15/33

     370,000        411,251   

6.900%, 03/01/19

     900,000        1,087,042   

TCI Communications, Inc.
7.125%, 02/15/28

     801,000        1,017,590   

Thomson Reuters Corp.
3.950%, 09/30/21

     2,252,000        2,314,446   

5.850%, 04/15/40

     100,000        108,007   

Time Warner, Inc.
4.700%, 01/15/21

     450,000        481,537   

4.750%, 03/29/21

     300,000        322,724   

7.625%, 04/15/31

     826,000        1,041,217   

Viacom, Inc.
3.250%, 03/15/23

     222,000        209,086   

3.875%, 12/15/21

     380,000        384,831   

6.875%, 04/30/36

     348,000        407,379   
   

 

 

  
      19,021,849   
   

 

 

  

Mining—0.2%

  

BHP Billiton Finance USA, Ltd.

    

2.875%, 02/24/22

     200,000        189,906   

Freeport-McMoRan Copper & Gold, Inc.

    

3.100%, 03/15/20 (144A)

     943,000        871,628   

3.550%, 03/01/22

     650,000        590,432   

5.450%, 03/15/43 (144A)

     62,000        54,675   

Placer Dome, Inc.

    

6.450%, 10/15/35

     700,000        628,741   

Rio Tinto Finance USA plc

    

2.250%, 12/14/18

     1,200,000        1,166,116   

Teck Resources, Ltd.

    

4.500%, 01/15/21

     680,000        683,087   
   

 

 

  
      4,184,585   
   

 

 

  

Miscellaneous Manufacturing—0.2%

  

Eaton Corp.

    

6.950%, 03/20/19

     282,000        339,046   

General Electric Co.

    

5.250%, 12/06/17

     1,250,000        1,411,434   

Ingersoll-Rand Global Holding Co., Ltd.

    

2.875%, 01/15/19 (144A)

     400,000        394,591   

Siemens Financieringsmaatschappij NV

    

5.750%, 10/17/16 (144A)

     820,000        936,858   

6.125%, 08/17/26 (144A)

     800,000        949,808   

Tyco International Finance S.A.

    

8.500%, 01/15/19

     734,000        918,722   

Tyco International, Ltd. / Tyco International Finance S.A.

    

7.000%, 12/15/19

     160,000        191,440   
   

 

 

  
      5,141,899   
   

 

 

  

Multi-National—0.1%

  

African Development Bank

    

8.800%, 09/01/19

     1,275,000        1,682,801   
   

 

 

  

Office/Business Equipment—0.0%

  

Xerox Corp.

    

6.750%, 02/01/17

     800,000      $ 905,019   
   

 

 

  

Oil & Gas—1.3%

  

Anadarko Finance Co.

    

7.500%, 05/01/31

     805,000        1,003,589   

Anadarko Holding Co.

    

7.150%, 05/15/28

     949,000        1,086,849   

Anadarko Petroleum Corp.

    

8.700%, 03/15/19

     1,000,000        1,287,273   

Apache Corp.

    

3.625%, 02/01/21

     870,000        893,024   

5.100%, 09/01/40

     150,000        150,936   

BP Capital Markets plc

    

1.375%, 05/10/18

     518,000        499,296   

2.248%, 11/01/16

     500,000        512,021   

3.561%, 11/01/21

     800,000        802,423   

4.500%, 10/01/20

     675,000        732,299   

Canadian Natural Resources, Ltd.
6.250%, 03/15/38

     200,000        223,400   

Cenovus Energy, Inc.

    

3.000%, 08/15/22

     310,000        294,990   

6.750%, 11/15/39

     600,000        719,182   

Chevron Corp.

    

2.427%, 06/24/20

     686,000        682,090   

3.191%, 06/24/23

     425,000        422,939   

CNOOC Finance 2013, Ltd.

    

1.125%, 05/09/16

     400,000        393,520   

3.000%, 05/09/23

     848,000        766,047   

ConocoPhillips Holding Co.

    

6.950%, 04/15/29

     700,000        891,593   

Devon Energy Corp.

    

4.000%, 07/15/21

     300,000        307,921   

Devon Financing Corp. LLC

    

7.875%, 09/30/31

     886,000        1,147,246   

EOG Resources, Inc.

    

4.100%, 02/01/21

     880,000        934,836   

Marathon Oil Corp.

    

6.600%, 10/01/37

     200,000        238,718   

Nabors Industries, Inc.

    

4.625%, 09/15/21

     510,000        501,323   

9.250%, 01/15/19

     325,000        403,236   

Noble Holding International, Ltd.

    

5.250%, 03/15/42

     600,000        537,411   

Occidental Petroleum Corp.

    

4.100%, 02/01/21

     1,120,000        1,182,831   

Petro-Canada

    

5.950%, 05/15/35

     210,000        225,348   

9.250%, 10/15/21

     243,000        327,504   

Petrobras Global Finance B.V.

    

4.375%, 05/20/23

     873,000        800,840   

Petrobras International Finance Co.

    

6.750%, 01/27/41

     150,000        149,859   

7.875%, 03/15/19

     500,000        578,182   

Shell International Finance B.V.

    

4.300%, 09/22/19

     800,000        887,760   

6.375%, 12/15/38

     600,000        773,000   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

  

Statoil ASA

    

1.150%, 05/15/18

     389,000      $ 376,157   

2.650%, 01/15/24

     393,000        364,470   

6.700%, 01/15/18

     180,000        215,516   

7.250%, 09/23/27

     1,040,000        1,369,283   

Suncor Energy, Inc.

    

5.950%, 12/01/34

     268,000        287,373   

6.100%, 06/01/18

     1,070,000        1,247,352   

Talisman Energy, Inc.

    

7.750%, 06/01/19

     800,000        972,344   

Tosco Corp.

    

7.800%, 01/01/27

     700,000        934,445   

Total Capital Canada, Ltd.

    

0.657%, 01/15/16 (b)

     154,000        154,855   

Total Capital International S.A.

    

2.875%, 02/17/22

     815,000        783,341   

Transocean, Inc.

    

5.050%, 12/15/16

     700,000        761,197   
   

 

 

  
      27,823,819   
   

 

 

  

Oil & Gas Services—0.2%

    

Halliburton Co.

    

6.750%, 02/01/27

     650,000        804,248   

7.450%, 09/15/39

     200,000        273,781   

8.750%, 02/15/21

     350,000        467,238   

Schlumberger Oilfield UK plc

    

4.200%, 01/15/21 (144A)

     600,000        640,779   

Weatherford International, Ltd.

    

9.625%, 03/01/19

     1,298,000        1,640,959   
   

 

 

  
      3,827,005   
   

 

 

  

Pharmaceuticals—0.1%

  

Actavis, Inc.

    

3.250%, 10/01/22

     172,000        160,356   

Medco Health Solutions, Inc.

    

4.125%, 09/15/20

     800,000        822,903   

Merck & Co., Inc.

    

2.800%, 05/18/23

     625,000        591,323   

Pfizer, Inc.

    

3.000%, 06/15/23

     1,100,000        1,066,875   

Sanofi

    

1.250%, 04/10/18

     157,000        152,068   

Zoetis, Inc.

    

1.875%, 02/01/18 (144A)

     93,000        91,042   

4.700%, 02/01/43 (144A)

     26,000        24,280   
   

 

 

  
      2,908,847   
   

 

 

  

Pipelines—0.3%

  

ANR Pipeline Co.

    

7.375%, 02/15/24

     226,000        274,618   

Magellan Midstream Partners L.P.

    

4.250%, 02/01/21

     492,000        517,092   

6.400%, 07/15/18

     1,420,000        1,683,137   

Spectra Energy Capital LLC

    

3.300%, 03/15/23

     308,000        277,873   

Pipelines—(Continued)

  

Spectra Energy Capital LLC

    

5.650%, 03/01/20

     1,600,000      $ 1,774,826   

6.750%, 07/15/18

     218,000        256,564   

8.000%, 10/01/19

     1,000,000        1,265,604   

TransCanada PipeLines, Ltd.

    

0.750%, 01/15/16

     350,000        346,044   

7.250%, 08/15/38

     200,000        260,258   
   

 

 

  
      6,656,016   
   

 

 

  

Real Estate—0.1%

  

WCI Finance LLC / WEA Finance LLC

    

5.700%, 10/01/16 (144A)

     1,060,000        1,184,551   

WEA Finance LLC / WT Finance Aust Pty, Ltd.

    

6.750%, 09/02/19 (144A)

     390,000        460,589   
   

 

 

  
      1,645,140   
   

 

 

  

Real Estate Investment Trusts—0.4%

  

Boston Properties L.P.

    

3.700%, 11/15/18

     800,000        840,237   

5.875%, 10/15/19

     500,000        576,705   

CommonWealth REIT

    

5.875%, 09/15/20

     100,000        103,527   

6.250%, 06/15/17

     840,000        901,367   

Duke Realty L.P.

    

6.750%, 03/15/20

     584,000        670,202   

8.250%, 08/15/19

     170,000        211,851   

ERP Operating L.P.

    

4.625%, 12/15/21

     250,000        264,813   

4.750%, 07/15/20

     450,000        483,983   

HCP, Inc.

    

2.625%, 02/01/20

     300,000        281,041   

5.375%, 02/01/21

     800,000        867,792   

ProLogis L.P.

    

6.875%, 03/15/20

     900,000        1,044,303   

Simon Property Group L.P.

    

5.650%, 02/01/20

     1,185,000        1,353,910   
   

 

 

  
      7,599,731   
   

 

 

  

Retail—0.1%

  

Home Depot, Inc. (The)

    

3.950%, 09/15/20

     350,000        379,439   

4.400%, 04/01/21

     350,000        384,177   

Lowe’s Cos., Inc.

    

3.120%, 04/15/22

     900,000        885,800   

Macy’s Retail Holdings, Inc.

    

6.375%, 03/15/37

     300,000        337,209   

Wal-Mart Stores, Inc.

    

1.125%, 04/11/18

     541,000        525,031   
   

 

 

  
      2,511,656   
   

 

 

  

Software—0.2%

  

Intuit, Inc.

    

5.750%, 03/15/17

     267,000        296,648   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Software—(Continued)

  

Microsoft Corp.

    

2.375%, 05/01/23

     540,000      $ 499,722   

3.000%, 10/01/20

     750,000        765,281   

Oracle Corp.

    

2.500%, 10/15/22

     2,410,000        2,222,449   

5.750%, 04/15/18

     400,000        465,453   

6.500%, 04/15/38

     300,000        375,610   
   

 

 

  
      4,625,163   
   

 

 

  

Telecommunications—0.8%

  

America Movil S.A.B. de C.V.

    

5.000%, 10/16/19

     1,000,000        1,083,189   

AT&T, Inc.

    

3.000%, 02/15/22

     2,000,000        1,922,044   

5.625%, 06/15/16

     388,000        434,081   

6.300%, 01/15/38

     200,000        222,353   

6.450%, 06/15/34

     500,000        569,661   

BellSouth Capital Funding Corp.

    

7.875%, 02/15/30

     105,000        130,125   

BellSouth Corp.

    

5.200%, 12/15/16

     200,000        223,755   

6.550%, 06/15/34

     987,000        1,077,703   

British Telecommunications plc

    

1.625%, 06/28/16

     308,000        309,351   

Cisco Systems, Inc.

    

5.900%, 02/15/39

     900,000        1,067,805   

Crown Castle Towers LLC

    

6.113%, 01/15/20 (144A)

     1,000,000        1,147,475   

Deutsche Telekom International Finance B.V.

    

2.250%, 03/06/17 (144A)

     400,000        401,928   

8.750%, 06/15/30

     500,000        693,635   

Embarq Corp.

    

7.082%, 06/01/16

     747,000        837,040   

France Telecom S.A.

    

8.500%, 03/01/31

     400,000        543,435   

Qwest Corp.

    

6.875%, 09/15/33

     690,000        667,575   

Telefonica Emisiones S.A.U.

    

3.192%, 04/27/18

     210,000        203,408   

5.877%, 07/15/19

     540,000        582,960   

6.421%, 06/20/16

     500,000        548,986   

Verizon Communications, Inc.

    

4.600%, 04/01/21

     1,500,000        1,626,024   

7.750%, 12/01/30

     800,000        1,036,425   

Verizon New England, Inc.

    

7.875%, 11/15/29

     1,000,000        1,245,696   

Verizon Pennsylvania, Inc.

    

6.000%, 12/01/28

     260,000        272,598   

Vodafone Group plc

    

1.500%, 02/19/18

     300,000        287,184   
   

 

 

  
      17,134,436   
   

 

 

  

Transportation—0.3%

  

Burlington Northern Santa Fe LLC

    

3.000%, 03/15/23

     240,000        228,703   

7.950%, 08/15/30

     1,185,000        1,564,675   

Transportation—(Continued)

  

Burlington Northern, Inc.

    

8.750%, 02/25/22

     812,000      $ 1,085,256   

Canadian Pacific Railway Co.

    

6.500%, 05/15/18

     680,000        800,041   

7.125%, 10/15/31

     872,000        1,078,236   

CSX Corp.

    

6.000%, 10/01/36

     300,000        339,726   

7.900%, 05/01/17

     1,000,000        1,201,875   

Ryder System, Inc.

    

3.500%, 06/01/17

     485,000        502,175   
   

 

 

  
      6,800,687   
   

 

 

  

Trucking & Leasing—0.0%

  

Penske Truck Leasing Co. L.P. / PTL Finance
Corp.

    

2.875%, 07/17/18 (144A)

     80,000        80,796   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $361,426,808)

       347,801,840   
   

 

 

  
Mortgage-Backed Securities—4.6%   

Collateralized Mortgage Obligations—2.8%

  

AJAX Mortgage Loan Trust

    

3.500%, 02/25/51 (144A) (b) (f)

     3,281,939        3,281,045   

American Tower Trust I

    

1.551%, 03/15/43 (144A)

     695,000        682,960   

Bear Stearns ALT-A Trust (CMO)

    

0.833%, 07/25/34 (b)

     3,289,770        3,118,748   

CAM Mortgage Trust

    

3.967%, 11/25/57 (144A) (b) (f)

     2,243,821        2,215,773   

Countrywide Alternative Loan Trust

    

0.533%, 08/25/34 (b)

     2,671,197        2,563,115   

Global Mortgage Securitization, Ltd.

    

0.513%, 11/25/32 (144A) (b)

     2,995,461        2,710,658   

Homeowner Assistance Program Reverse Mortgage Loan Trust

    

4.000%, 05/26/53 (144A) (f)

     4,998,512        4,914,387   

JP Morgan Mortgage Trust

    

2.823%, 08/25/34 (b)

     647,775        636,886   

MASTR Asset Securitization Trust

    

5.500%, 12/25/33

     2,313,268        2,417,976   

Merrill Lynch Mortgage Investors Trust (CMO)

    

0.693%, 05/25/29 (b)

     3,300,506        3,134,507   

0.833%, 10/25/28 (b)

     3,279,620        3,212,935   

1.097%, 01/25/29 (b)

     2,198,273        2,120,568   

Sequoia Mortgage Trust (CMO)

    

0.492%, 12/20/34 (b)

     3,405,327        3,227,324   

0.852%, 07/20/33 (b)

     2,160,685        2,056,764   

Springleaf Mortgage Loan Trust

    

1.270%, 06/25/58 (144A) (b)

     3,303,475        3,309,220   

2.310%, 06/25/58 (144A) (b)

     1,240,000        1,242,139   

3.140%, 06/25/58 (144A) (b)

     792,000        794,318   

3.790%, 06/25/58 (144A) (b)

     603,000        604,772   

6.000%, 10/25/57 (144A) (b)

     350,000        359,990   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

Station Place Securitization Trust

    

1.870%, 02/25/15 (b)

     1,000,000      $ 1,000,000   

Structured Asset Mortgage Investments II
Trust (CMO)

    

0.892%, 01/19/34 (b)

     3,179,310        3,038,441   

0.892%, 03/19/34 (b)

     3,331,457        3,193,508   

Structured Asset Mortgage Investments
Trust (CMO)

    

1.092%, 05/19/33 (b)

     3,511,062        3,291,364   

Structured Asset Securities Corp. Mortgage
Loan Trust

    

0.493%, 10/25/27 (b)

     817,251        801,051   

Thornburg Mortgage Securities Trust

    

2.241%, 12/25/44 (b)

     3,053,519        2,995,603   

Vericrest Opportunity Loan Trust

    

3.105%, 11/25/50 (144A) (b)

     945,957        944,466   

Wedgewood Real Estate Trust (CMO)

    

3.967%, 07/25/43 (144A) (b)

     1,887,000        1,887,000   

Wells Fargo Commercial Mortgage Trust

    

2.710%, 03/18/28 (144A) (b)

     1,000,000        948,728   
   

 

 

  
      60,704,246   
   

 

 

  

Commercial Mortgage-Backed Securities—1.8%

  

A10 Securitization LLC

    

2.400%, 11/15/25 (144A)

     1,415,000        1,402,415   

Banc of America Commercial Mortgage Trust

    

5.803%, 04/10/49 (b)

     1,000,000        1,099,041   

5.889%, 07/10/44 (b)

     1,665,000        1,846,660   

BB-UBS Trust

    

2.892%, 06/05/30 (144A)

     1,250,000        1,173,960   

3.430%, 11/05/36 (144A)

     2,950,000        2,762,607   

Bear Stearns Commercial Mortgage Securities Trust

    

0.889%, 06/11/50 (144A) (b)

     1,500,000        1,424,150   

Citigroup Commercial Mortgage Trust

    

2.110%, 01/12/18

     587,611        588,649   

Commercial Mortgage Pass Through Certificates

    

3.612%, 06/10/46

     2,934,000        2,869,704   

Commercial Mortgage Trust

    

3.086%, 04/12/35 (144A)

     1,871,000        1,733,343   

DBRR Trust

    

0.853%, 02/25/45 (144A) (b)

     687,468        687,234   

GS Mortgage Securities Corp. II

    

2.318%, 01/10/30 (144A)

     733,000        726,260   

2.706%, 12/10/27 (144A)

     303,476        299,854   

JP Morgan Chase Commercial Mortgage Securities Trust

    

5.716%, 02/15/51

     3,000,000        3,350,271   

KGS-Alpha SBA COOF Trust

    

0.656%, 05/25/39 (144A) (b) (c)

     14,213,107        370,873   

1.796%, 03/25/39

     13,000,000        828,750   

Ladder Capital Commercial Mortgage Trust

    

3.985%, 02/15/36 (144A)

     768,000        721,154   

LB-UBS Commercial Mortgage Trust

    

5.430%, 02/15/40

     1,500,000        1,645,313   

Commercial Mortgage-Backed Securities—(Continued)

  

Morgan Stanley Re-REMIC Trust

    

2.000%, 07/27/49 (144A)

     1,470,120      $ 1,488,497   

NCUA Guaranteed Notes Trust

    

2.650%, 10/29/20

     3,802,871        3,948,315   

2.900%, 10/29/20

     5,000,000        5,218,765   

RBS Commercial Funding Trust

    

3.260%, 03/11/31 (144A)

     531,000        491,308   

UBS-BAMLL Trust

    

3.663%, 06/10/30 (144A)

     578,000        561,522   

UBS-Barclays Commercial Mortgage Trust

    

3.244%, 04/10/46

     2,228,000        2,120,858   

VNO Mortgage Trust

    

2.996%, 11/15/30 (144A)

     1,400,000        1,305,093   
   

 

 

  
      38,664,596   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $101,487,262)

       99,368,842   
   

 

 

  
Asset-Backed Securities—4.1%                

Asset-Backed - Automobile—2.1%

    

Ally Auto Receivables Trust

    

0.630%, 05/15/17

     1,318,182        1,308,255   

American Credit Acceptance Receivables Trust

    

1.450%, 04/16/18 (144A)

     2,226,211        2,221,756   

4.130%, 06/15/15 (144A)

     2,000,000        2,022,594   

AmeriCredit Automobile Receivables Trust

    

0.490%, 06/08/16

     850,000        849,241   

0.610%, 10/10/17

     185,000        183,708   

0.910%, 10/08/15

     1,410,610        1,412,139   

1.170%, 05/09/16

     740,000        742,038   

BMW Vehicle Lease Trust

    

0.400%, 01/20/15

     874,000        872,609   

0.540%, 09/21/15

     381,000        379,674   

Capital Auto Receivables Asset Trust

    

0.620%, 07/20/16

     990,000        987,921   

CarMax Auto Owner Trust

    

0.600%, 10/16/17

     453,000        448,447   

CarNow Auto Receivables Trust

    

1.160%, 10/16/17 (144A)

     2,782,000        2,779,338   

1.970%, 11/15/17 (144A)

     668,000        667,557   

CFC LLC

    

1.650%, 07/17/17 (144A)

     1,611,996        1,606,852   

2.750%, 11/15/18 (144A)

     667,000        654,809   

CPS Auto Trust

    

1.310%, 06/15/20 (144A)

     1,686,908        1,680,083   

1.820%, 09/15/20 (144A)

     2,500,000        2,492,687   

Exeter Automobile Receivables Trust

    

1.290%, 10/16/17 (144A)

     1,995,207        1,984,838   

Fifth Third Auto Trust

    

0.450%, 01/15/16

     1,515,000        1,513,097   

First Investors Auto Owner Trust

    

0.900%, 10/15/18 (144A)

     497,414        494,776   

Flagship Credit Auto Trust

    

1.320%, 04/16/18 (144A)

     3,680,177        3,670,707   

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Automobile—(Continued)

  

Harley Davidson Motorcycle Trust

    

0.650%, 07/16/18

     1,427,000      $ 1,417,168   

Honda Auto Receivables Owner Trust

    

0.350%, 06/22/15

     682,000        680,826   

0.370%, 10/16/15

     3,000,000        2,992,284   

0.530%, 02/16/17

     1,404,000        1,396,497   

Hyundai Auto Receivables Trust

    

0.400%, 12/15/15

     700,000        699,618   

0.560%, 07/17/17

     423,000        421,822   

0.750%, 09/17/18

     600,000        593,024   

Mercedes-Benz Auto Lease Trust

    

0.490%, 06/15/15

     2,871,000        2,864,945   

Nissan Auto Receivables Owner Trust

    

0.370%, 09/15/15

     778,000        777,250   

Santander Drive Auto Receivables Trust

    

0.480%, 02/16/16

     453,116        452,974   

2.350%, 11/16/15

     2,000,000        2,016,498   

3.010%, 04/16/18

     2,000,000        2,053,998   

SNAAC Auto Receivables Trust

    

1.140%, 07/16/18 (144A)

     1,234,626        1,232,550   

Toyota Auto Receivables Owner Trust

    

0.550%, 01/17/17

     732,000        728,490   
   

 

 

  
      47,301,070   
   

 

 

  

Asset-Backed - Other—2.0%

  

Bayview Opportunity Master Fund IIa Trust

    

3.228%, 03/28/33 (144A) (b)

     1,537,752        1,533,262   

Conix Mortgage Asset Trust

    

4.704%, 12/25/47 (144A) (b) (f)

     1,837,899        1,813,204   

Ford Credit Floorplan Master Owner Trust

    

0.573%, 01/15/18 (b)

     725,000        724,628   

HLSS Servicer Advance Receivables
Backed Notes

    

0.898%, 01/15/44 (144A)

     964,000        960,626   

1.147%, 05/16/44 (144A)

     1,495,000        1,491,487   

1.340%, 10/15/43 (144A)

     1,000,000        999,600   

1.495%, 01/16/46 (144A)

     748,000        738,201   

1.744%, 01/16/46 (144A)

     174,000        172,138   

1.843%, 05/16/44 (144A)

     2,000,000        1,999,400   

John Deere Owner Trust

    

0.410%, 09/15/15

     2,000,000        1,996,342   

0.600%, 03/15/17

     2,000,000        1,990,298   

Kondaur Mortgage Asset Trust

    

4.458%, 09/25/18 (a)

     3,000,000        3,000,000   

LV Tower 52 Issuer LLC

    

5.500%, 06/15/18

     2,400,000        2,400,000   

Nationstar Agency Advance Funding Trust

    

0.997%, 02/15/45 (144A)

     253,000        250,597   

1.892%, 02/18/48 (144A)

     115,000        111,033   

Nationstar Mortgage Advance Receivable Trust

    

1.679%, 06/20/46 (144A)

     2,000,000        1,997,858   

Progreso Receivables Funding I LLC

    

4.000%, 07/09/18 (144A)

     1,000,000        987,500   

Real Estate Asset Trust

    

3.230%, 05/25/52 (144A) (b) (f)

     1,324,536        1,324,536   

Asset-Backed - Other—(Continued)

  

SpringCastle America Funding LLC

    

3.750%, 04/03/21 (144A)

     3,861,406      $ 3,775,806   

Springleaf Funding Trust

    

2.580%, 09/15/21 (144A)

     4,950,000        4,950,000   

3.920%, 01/16/23 (144A)

     2,500,000        2,487,500   

4.820%, 01/16/23 (144A)

     2,000,000        1,971,400   

Stanwich Mortgage Loan Trust

    

2.981%, 02/16/43 (144A)

     816,087        816,601   

3.228%, 04/16/59 (144A)

     2,748,302        2,748,302   

Westgate Resorts LLC

    

2.250%, 08/20/25 (144A)

     1,874,695        1,877,625   
   

 

 

  
      43,117,944   
   

 

 

  

Total Asset-Backed Securities
(Cost $90,781,393)

       90,419,014   
   

 

 

  
Foreign Government—0.5%   

Provincial—0.0%

  

Province of Ontario

    

1.650%, 09/27/19

     1,000,000        955,300   
   

 

 

  

Sovereign—0.5%

  

Israel Government AID Bond

    

Zero Coupon, 08/15/20

     1,500,000        1,268,549   

Zero Coupon, 02/15/22

     3,000,000        2,355,630   

Zero Coupon, 11/01/22

     8,000,000        6,055,512   

Mexico Government International Bond

    

5.750%, 10/12/2110

     500,000        456,250   
   

 

 

  
      10,135,941   
   

 

 

  

Total Foreign Government
(Cost $11,930,541)

       11,091,241   
   

 

 

  
Short-Term Investment—2.2%   

Repurchase Agreement—2.2%

  

Fixed Income Clearing Corp.
Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $49,056,041, on 07/01/13, collateralized by $50,560,000 U.S. Government Agency obligations with a rates ranging from of 0.625% - 1.010%, maturity dates ranging from 06/30/17 - 08/31/17, and an aggregate market value, including accrued interest, of $50,037,750.

     49,056,000        49,056,000   
   

 

 

  

Total Short-Term Investment
(Cost $49,056,000)

       49,056,000   
   

 

 

  

Total Investments—101.0%
(Cost $2,271,782,911) (g)

       2,201,199,430   

Other assets and liabilities (net)—(1.0)%

       (22,560,812 ) 
   

 

 

  
Net Assets—100.0%     $ 2,178,638,618   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Delayed-delivery security.
(b) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(c) Interest only security.
(d) TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(e) Security is a “step-down” bond where the coupon decreases or steps down at a predetermined date. Rate shown is current coupon rate.
(f) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of June 30, 2013, the market value of restricted securities was $13,548,945, which is 0.6% of net assets. See details shown in the Restricted Securities table that follows.
(g) As of June 30, 2013, the aggregate cost of investments was $2,271,782,911. The aggregate unrealized appreciation and depreciation of investments were $4,457,426 and $(75,040,907), respectively, resulting in net unrealized depreciation of $(70,583,481).
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $145,066,077, which is 6.7% of net assets.
(ARM)— Adjustable-Rate Mortgage
(CMO)— Collateralized Mortgage Obligation
(REMIC)— Real Estate Mortgage Investment Conduit

 

Restricted Securities

    Acquisition
Date		      Principal
Amount		      Cost      Value  

AJAX Mortgage Loan Trust

      03/20/13       $ 2,810,067       $ 2,801,063       $ 2,814,828   

AJAX Mortgage Loan Trust

      01/28/13         471,872         468,726         466,217   

CAM Mortgage Trust

      04/25/13         2,243,821         2,243,821         2,215,773   

Conix Mortgage Asset Trust

      05/16/13         1,837,899         1,837,899         1,813,204   

Homeowner Assistance Program Reverse Mortgage Loan Trust

      05/03/13         4,998,512         4,927,505         4,914,387   

Real Estate Asset Trust

      04/01/13         1,324,536         1,324,536         1,324,536   

Swap Agreements

Credit Default Swaps on credit indices—Sell Protection (a)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid		     Unrealized
Depreciation		  

Markit CDX North America Investment Grade,
Series 20

     1.000%        06/20/18      Credit Suisse International     0.009%        USD 20,000,000      $ 122,866      $ 159,244      $ (36,378)   
           

 

 

    

 

 

    

 

 

  

Securities in the amount of $353,148 have been received at the custodian bank as collateral for swap contracts.

 

(a) If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(b) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
(c) The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —         $ 1,603,462,493       $ —         $ 1,603,462,493   

Total Corporate Bonds & Notes*

      —           347,801,840         —           347,801,840   

Total Mortgage-Backed Securities*

      —           99,368,842         —           99,368,842   

Total Asset-Backed Securities*

      —           90,419,014         —           90,419,014   

Total Foreign Government*

      —           11,091,241         —           11,091,241   

Total Short-Term Investment*

      —           49,056,000         —           49,056,000   

Total Investments

    $ —         $ 2,201,199,430       $ —         $ 2,201,199,430   
                                     
Swap Contracts            

Swap Contracts at Value (Assets)

    $ —         $ 122,866       $ —         $ 122,866   

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

JPMorgan Core Bond Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 2,201,199,430   

Cash

      496   

Swaps at market value (b)

      122,866   

Receivable for:

   

Fund shares sold

      547,001   

Principal paydowns

      628,932   

Interest

      10,592,953   

Swap interest

      6,111   

Other assets

      513   
  

 

 

  

Total Assets

      2,213,098,302   

Liabilities

   

Payables for:

   

Investments purchased

      7,647,530   

TBA securities purchased

      25,322,656   

Fund shares redeemed

      450,663   

Accrued expenses:

   

Management fees

      759,278   

Distribution and service fees

      95,572   

Deferred trustees’ fees

      41,001   

Other expenses

      142,984   
  

 

 

  

Total Liabilities

      34,459,684   
  

 

 

  

Net Assets

    $ 2,178,638,618   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 2,222,808,677   

Undistributed net investment income

      6,519,532   

Accumulated net realized gain

      19,930,268   

Unrealized depreciation on investments and swap contracts

      (70,619,859 ) 
  

 

 

  

Net Assets

    $ 2,178,638,618   
  

 

 

  

Net Assets

   

Class A

    $ 1,723,778,820   

Class B (c)

      454,859,798   

Capital Shares Outstanding*

   

Class A

      169,419,655   

Class B (c)

      44,737,293   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.17   

Class B (c)

      10.17   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $2,271,782,911.
(b) Net premium paid on swaps was $159,244.
(c) On January 7, 2013, Class C shares were converted into Class B shares.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Interest

    $ 10,330,411   
  

 

 

  

Total investment income

      10,330,411   

Expenses

   

Management fees

      3,665,997   

Administration fees

      16,778   

Custodian and accounting fees

      98,738   

Distribution and service fees—Class B

      571,670   

Distribution and service fees—Class C (a)

      43,394   

Audit and tax services

      30,574   

Legal

      13,646   

Trustees’ fees and expenses

      13,452   

Shareholder reporting

      16,838   

Insurance

      1,563   

Miscellaneous

      1,749   
  

 

 

  

Total expenses

      4,474,399   

Less management fee waiver

      (866,508 ) 
  

 

 

  

Net expenses

      3,607,891   
  

 

 

  

Net Investment Income

      6,722,520   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      (1,419,828 ) 

Affiliated investments

      21,476,164   

Swap contracts

      208,223   
  

 

 

  

Net realized gain

      20,264,559   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (70,583,481 ) 

Affiliated investments

      (22,755,068 ) 

Swap contracts

      (36,378 ) 
  

 

 

  

Net change in unrealized depreciation

      (93,374,927 ) 
  

 

 

  

Net realized and unrealized loss

      (73,110,368 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (66,387,848 ) 
  

 

 

  

 

(a) On January 7, 2013, Class C shares were converted into Class B shares.

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 6,722,520      $ 10,190,751   

Net realized gain

      20,264,559        9,274,560   

Net change in unrealized appreciation (depreciation)

      (93,374,927 )      4,148,384   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (66,387,848 )      23,613,695   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (9,092,406 )      0   

Class B

      (1,276,261 )      0   

Class C (a)

      0        (12,499,181 ) 

Net realized capital gains

     

Class A

      (7,273,925 )      0   

Class B

      (2,005,553 )      0   

Class C (a)

      0        (2,428,856 ) 
  

 

 

    

 

 

  

Total distributions

      (19,648,145 )      (14,928,037 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      1,783,783,910        122,001   
  

 

 

    

 

 

  

Total Increase in Net Assets

      1,697,747,917        8,807,659   

Net Assets

     

Beginning of period

      480,890,701        472,083,042   
  

 

 

    

 

 

  

End of period

    $ 2,178,638,618      $ 480,890,701   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 6,519,532      $ 10,165,679   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A (b)

         

Sales

      168,072,127      $ 1,778,514,195        0      $ 0   

Reinvestments

      1,551,311        16,366,331        0        0   

Redemptions

      (203,783 )      (2,127,574 )      0        0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      169,419,655      $ 1,792,752,952        0      $ 0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B (a)

         

Sales

      2,843,464      $ 29,798,979        0      $ 0   

Shares converted from Class C

      45,595,758        479,416,762        0        0   

Reinvestments

      311,073        3,281,814        0        0   

Redemptions

      (4,013,002 )      (41,900,743 )      0        0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      44,737,293      $ 470,596,812        0      $ 0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class C (a)

         

Sales

      44,995      $ 473,335        7,320,568      $ 76,505,581   

Shares converted into Class B

      (45,595,758 )      (479,416,762 )      0        0   

Reinvestments

      0        0        1,457,816        14,928,037   

Redemptions

      (59,186 )      (622,427 )      (8,742,410 )      (91,311,617 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (45,609,949 )    $ (479,565,854 )      35,974      $ 122,001   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 1,783,783,910        $ 122,001   
    

 

 

      

 

 

  

 

(a) On January 7, 2013, Class C shares were converted into Class B shares.
(b) Commencement of operations was February 28, 2013.

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Financial Highlights

 

Selected per share data                                       
     Class A                                  
     Period Ended
June 30,
2013(a)
(Unaudited)		                                  
                

Net Asset Value, Beginning of Period

    $ 10.56               
  

 

 

              

Income (Loss) from Investment Operations

               

Net investment income (b)

      0.04               

Net realized and unrealized gain (loss) on investments

      (0.33 )             
  

 

 

              

Total from investment operations

      (0.29 )             
  

 

 

              

Less Distributions

               

Distributions from net investment income

      (0.06 )             

Distributions from net realized capital gains

      (0.04 )             
  

 

 

              

Total distributions

      (0.10 )             
  

 

 

              

Net Asset Value, End of Period

    $ 10.17               
  

 

 

              

Total Return (%) (c)

      (2.70 )(d)             

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.57  (e)             

Net ratio of expenses to average net assets (%) (f)

      0.44  (e)             

Ratio of net investment income to average net assets (%)

      1.11  (e)             

Portfolio turnover rate (%)

      76  (d)             

Net assets, end of period (in millions)

    $ 1,723.8               
     Class B  
     Six Months
Ended
June 30,
2013(g)
(Unaudited)		     Year Ended December 31,  
       2012      2011     2010      2009     2008(h)  

Net Asset Value, Beginning of Period

    $ 10.54      $ 10.36       $ 10.01      $ 9.62       $ 8.58      $ 10.00   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

               

Net investment income (b)

      0.04        0.22         0.29        0.33         0.41        0.87   

Net realized and unrealized gain (loss) on investments

      (0.34 )      0.28         0.28        0.25         0.63        (1.83 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total from investment operations

      (0.30 )      0.50         0.57        0.58         1.04        (0.96 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Less Distributions

               

Distributions from net investment income

      (0.03 )      (0.27 )       (0.22 )      (0.19 )       (0.00 )(i)      (0.46 ) 

Distributions from net realized capital gains

      (0.04 )      (0.05 )       (0.00 )(j)      0.00         0.00        0.00   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total distributions

      (0.07 )      (0.32 )       (0.22 )      (0.19 )       (0.00 )(i)      (0.46 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.17      $ 10.54       $ 10.36      $ 10.01       $ 9.62      $ 8.58   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total Return (%) (c)

      (2.85 )(d)      4.92         5.79        6.10         12.12        (9.61 )(d) 

Ratios/Supplemental Data

               

Gross ratio of expenses to average net assets (%)

      0.83  (e)      0.59         0.59        0.65         0.69        1.05  (e) 

Net ratio of expenses to average net assets (%) (f)

      0.71  (e)      0.59         0.59        0.65         0.65        0.65  (e) 

Ratio of net investment income to average net assets (%)

      0.79  (e)      2.09         2.81        3.34         4.42        13.82  (e) 

Portfolio turnover rate (%)

      76  (d)      11         8        2         1        6  (d) 

Net assets, end of period (in millions)

    $ 454.9      $ 480.9       $ 472.1      $ 373.7       $ 191.4      $ 36.1   

 

(a) Commencement of operations was February 28, 2013.
(b) Per share amounts based on average shares outstanding during the period.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(g) On January 7, 2013, Class C shares were converted into Class B shares. The financial information of Class B includes the financial information of Class C prior to the conversion.
(h) Commencement of operations was April 28,2008.
(i) Distributions from net investment income were less than $0.01.
(j) Distributions from net realized capital gains were less than $0.01.

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is JPMorgan Core Bond Portfolio (the “Portfolio”), which is diversified. Prior to January 7, 2013, the Portfolio sought to achieve its investment objective by investing all of its investable assets in a master fund, the Bond Fund (the “Master Fund”), a fund of the American Funds Insurance Series. On January 7, 2013, the Portfolio’s investment in the Master Fund was withdrawn and J.P. Morgan Investment Management Inc. was hired as the subadviser to the Portfolio, and the name of the Portfolio was changed from the American Funds Bond Portfolio to JPMorgan Core Bond Portfolio. Also on that date, Class C shares of the Portfolio were converted to Class B shares. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Class A commenced operations on February 28, 2013. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are

 

MIST-21

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its

 

MIST-22

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. The Portfolio had no permanent book-tax differences at December 31, 2012.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $49,056,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

When-Issued and Delayed-Delivery Securities - The portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

TBA Purchase & Forward Sale Commitments - The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. TBA forward sales commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

Mortgage Related and Other Asset Backed Securities - The Portfolio may invest in mortgage related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of

 

MIST-23

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

3. Investments in Derivative Instruments

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Credit Default Swaps: The Portfolio is subject to credit risk in the normal course of pursuing its investment objectives. The Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers, or to create exposure to corporate and/or sovereign issuers to which it is not otherwise exposed. Credit default swaps involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return if a credit event occurs for the referenced entity, obligation or index. A credit event is defined under the terms of each swap agreement and may include, but is not limited to, underlying entity default, bankruptcy, write-down, principal shortfall or interest shortfall. As the seller of protection, if an

 

MIST-24

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

underlying credit event occurs, the Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation (or underlying securities comprising the referenced index), or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). In return, the Portfolio would receive from the counterparty an upfront or periodic stream of payments throughout the life of the credit default swap agreement, provided that no credit event has occurred. As the seller of protection, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the credit default swap.

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may expire worthless and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event, the credit event is settled based on that entities weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less expensive than it would be to buy many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on a credit index or corporate or sovereign issuer serve as some indication of the status of the payment/performance risk and the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity or index also reflects the cost of buying/ selling protection and may reflect upfront payments required to be made to enter into the agreement. Wider credit spreads generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the particular swap agreement. When no implied credit spread is available for a credit default swap, the current unrealized appreciation/depreciation on the position may be used as an indicator of the current status of the payment/performance risk.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of June 30, 2013, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value
Credit    Swaps at market value (a)    $122,866
     

 

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of Assets
and Liabilities		      Financial
Instruments		      Collateral
Received(b)		     Net Amount  

Credit Suisse International

    $ 122,866       $ —       $ (122,866 )    $ —   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

MIST-25

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

 

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Credit  

Swap contracts

    $ 208,223   
  

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Credit  

Swap contracts

    $ (36,378 ) 
  

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(c)		  

Swap contracts

    $ 22,500,000   

 

  (a) Excludes swap interest receivable of $6,111.
  (b) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (c) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

 

MIST-26

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases     Sales  
U.S. Government     Non U.S. Government     U.S. Government     Non U.S. Government  
$ 1,693,884,192      $ 910,348,390      $ 429,967,610      $ 496,640,497   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with J.P. Morgan Investment Management, Inc. (“the Subadviser”), effective January 7, 2013, for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$3,665,997      0.550 %    ALL

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction   Average Daily Net Assets  
0.130%     ALL   

An identical agreement was in place for the period January 7, 2013 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Prior to the conversion of Class C Shares to Class B Shares on January 7, 2013, the annual rate was equal to 0.55% of average daily net assets. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

 

MIST-27

Met Investors Series Trust

JPMorgan Core Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

 

Security Description

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		      Net Realized
Gain/(Loss) on sales
of Affiliated
Investments		      Income from
Affiliated
Investments		  

American Funds Bond Fund (Class 1)

      42,622,682         4,572         (42,627,254 )      0       $ 21,476,164       $ 0   

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

9. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$12,499,181    $ 9,384,282       $ 2,428,856       $ 599       $ 14,928,037       $ 9,384,881   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$10,201,305    $ 9,274,548       $ 22,425,707       $ —       $ 41,901,560   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-28

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Managed By J.P. Morgan Investment Management Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the JPMorgan Global Active Allocation Portfolio returned 1.88%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

U.S. and International Developed equity markets were positive in the first six months of 2013, driven by a growing sense of optimism regarding the global economy and supported by accommodative policy from central banks. Risk assets, such as equities, generally performed strongly with some differentiation across regions and asset classes. In the first six months of 2013, the MSCI World Index was up 8.79%. In the U.S., large cap stocks, as represented by the S&P 500 Index, advanced 13.82%, while small cap stocks, as represented by the Russell 2000 Index, outperformed large cap and were up 15.86%. The MSCI EM Index underperformed developed markets in the first half of 2013, declining 9.40% during the period. The Barclays Aggregate Index, a measure of fixed income performance, declined 2.44% for the period. Commodities experienced a challenging six month period, as represented by the Dow Jones UBS Commodities Index falling 10.47%.

The last-minute U.S. fiscal cliff deal at the beginning of the year avoided meaningful financial and economic consequences. If nothing was done, approximately 4.00% of gross domestic product (GDP) would have been eliminated through a combination of spending cuts and increased tax rates. However, compared to what could have happened, the agreement put in place helped lessen fiscal drag in the first half of 2013. While there was some concern that the payroll tax deduction that expired at the end of December would be a headwind for consumer spending and disposable incomes, there were some positive signs at the beginning of the year. In particular, retail sales data came in better than market expectations. An improving domestic housing environment and generally higher prices for U.S. financial assets were likely underpinning supports to retail sales.

During the first half of 2013, a number of events reminded investors that Europe is still able to deliver bouts of volatility. Italy’s elections in February initially failed to provide a clear outcome. As a second incident, European officials rushed to avert a full blown banking crisis in Cyprus. Even with these events, the European Central Bank’s (ECB) Outright Monetary Transaction (OMT) program announced in September 2012 remains an important policy tool that has seemingly curtailed the risk of adverse credit scenarios in the peripheral regions. Elsewhere in developed markets, Japan had a particularly eventful start to the year. The current Prime Minister, Shinzô Abe, pursued economic policies meant to resolve Japan’s macroeconomic problems. Since being coined Abenomics, these economic policies consist of monetary policy, fiscal policy and economic growth strategies to encourage private investment. The first half of the year saw the Japanese yen depreciate against other major currencies, leading to higher Japanese exports and higher equity prices in the region.

The final couple months of the period were significantly impacted by the Federal Reserve (“Fed”). Fed Chairman Ben Bernanke, in late May congressional testimony, first floated the idea that the Federal Open Market Committee might begin to discuss tapering quantitative easing (QE) a few meetings down the road. Bond yields, which were near 1.60% on the U.S. 10-year Treasury note at the beginning of the month, surpassed 2.00% following Bernanke’s testimony. In a mid-June press conference, Fed Chairman Bernanke indicated that the Fed is closer than previously thought to winding down its $85 billion in monthly bond purchases (which presently constitute U.S. QE). The markets reacted swiftly as a long-anticipated rise in Treasury yields, expected to play out over months or quarters, instead occurred over a few days. The U.S. 10-year Treasury yield ended June at 2.49%. Nearly every region and asset class exhibited negative June performance, which was largely attributable to investors’ belief that the Fed may pull back on stimulus sooner than has been expected.

Emerging markets experienced a particularly challenging first six months in 2013. The underperformance relative to developed markets was driven by a stronger U.S. dollar, weaker commodity prices and a slowdown in growth that has pressured margins. Inflation-related protests in Brazil and political unrest in Turkey also negatively impacted the asset class. Finally, the Fed’s suggestions that it may soon taper the liquidity fueling investors’ interest for emerging markets did not help either. Generally, investor interest for more extended asset class exposures, like Emerging Market Equities, had increased alongside accommodative central bank policy.

PORTFOLIO REVIEW / PERIOD END POSITIONING

At its core, the Portfolio’s long-term Strategic Asset Allocation (“SAA”) generates a globally diversified portfolio with exposure to U.S. Equities (25%), International Developed Market Equities (20%), Emerging Market Equities (5%), Investment Grade Fixed Income (25%), Convertible Bonds (20%), and Commodities (5%). Over time, the portfolio managers may overweight or underweight these asset class weights. To inform such asset allocation decisions, the portfolio managers incorporate a combination of qualitative inputs as well as a proprietary quantitative de-risking framework called Systematic Exposure Management (“SEM”). Over time, SEM aims to reduce the Portfolio’s exposure to asset classes exhibiting negative returns or elevated volatility.

The Portfolio began the year with SEM, the primary risk management model employed, showing no necessary de-risking needed across asset classes representated. However, a number of qualitative asset allocation positions were being employed at the beginning of 2013. Most equity asset classes in the Portfolio were above their respective SAA weights. The overweight equity position was driven by numerous positive economic data points, particularly coming out of the U.S. The level of private deleveraging already accomplished in the U.S. supported the possible re-emergence of the U.S. consumer, along with the improving housing market and continued balance sheet strength in the corporate sector being additional positives. We

 

MIST-1

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Managed By J.P. Morgan Investment Management Inc.

Portfolio Manager Commentary*—(Continued)

 

made efforts throughout the reporting period to increase the Portfolio’s allocation to Convertible Bonds (“Converts”), as credit remains one of our preferred asset classes because the equity characteristics inherent in Converts makes them an attractive, relatively low-risk way to capitalize on positive equity market movements while offering some protection of capital in a heightened risk environment. Also qualitatively, the Portfolio held an underweight to Commodities relative to the SAA. The Portfolio management team felt that this underweight was warranted, as SEM was reflecting weak asset class performance, albeit not weak enough to constitute mandatory de-risking at the beginning of the period. Fixed Income was an additional underweight position at the beginning of 2013. The favorable equity view and the historically low interest rate environment were the primary underpinnings to this position.

After a strong market environment in January, SEM suggested that interest rate sensitivity be reduced. The management team implemented this positioning during February and March, which translated into an underweight in Fixed Income. This positioning remained consistent during much of first quarter and was reversed only toward the end of March when SEM signaled a reversal in this view. Outside of this interest rate positioning, SEM was not engaged for any asset classes in the first quarter as negative momentum characteristics were largely absent from the surprisingly calm markets. SEM had little impact on the results given the minimal level of activity.

The overweight equity position in the Portfolio during the first quarter modestly aided performance given the move higher in broad equity indices. One exception was the Portfolio’s overweight to Emerging Market Equities, which turned in lackluster performance compared to U.S. and EAFE Equities. In fact, within the “Opportunistic” portion of the Portfolio, a slight overweight to Emerging Market Equities detracted from performance, while an underweight to Commodities was a positive contributor.

The market environment became more challenging toward the end of the second quarter. Comments from Fed Chairman Bernanke ushered in a more volatile environment and led to SEM de-risking in commodities and fixed income. Commodities, which had moved into de-risking territory toward the beginning of the second quarter of 2013, continued to weaken as the quarter progressed. Given the interest rate volatility caused by the Fed’s comments, SEM signaled increased caution toward duration throughout the back half of the second quarter. The Portfolio’s interest rate sensitivity was lessened, compared to the SAA, due to this transpiring.

The Portfolio employs a duration overlay. This overlay causes the Portfolio to have a greater sensitivity to interest rate movements. Interest rates rose during the period and as a result, the duration overlay detracted from performance.

As of the end of June, the Portfolio remained overweight equities relative to the SAA. This positioning at the end of the period was reflective of a continued, constructive view held by the Portfolio management team. Commodities and Fixed Income were two allocations below their respective SAA weights at the end of June. In the backdrop of a positive qualitative view, the SEM model suggested underweight positions in these areas.

Michael Feser

Anne Lester

Jeffrey A. Geller

Nicole Goldberger

Grace Koo

Jonathan Cummings

Portfolio Managers

J.P. Morgan Investment Management Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

 


A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
JPMorgan Global Active Allocation Portfolio                 

Class B

        1.88           8.34           6.70   
Dow Jones Moderate Index        4.17           10.56           7.53   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 4/23/2012. Index returns are based on an inception date of 4/23/2012.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Equity Holdings

 

         
% of
Net Assets		  
NextEra Energy, Inc.      0.7   
Japan Tobacco, Inc.      0.5   
Roche Holding AG      0.5   
Novartis AG      0.5   
Toyota Motor Corp.      0.4   

Top Fixed Income Issuers

 

         
% of
Net Assets		  
U.S. Treasury Notes      1.3   
Ares Capital Corp.      0.7   
General Electric Capital Corp.      0.6   
WellPoint, Inc.      0.6   
Goldman Sachs Group, Inc. (The)      0.6   

Top Equity Sectors

 

     % of
Market Value of
Total Investments		  
Financials      9.1   
Consumer Discretionary      4.7   
Consumer Staples      4.0   
Health Care      3.4   
Industrials      3.4   

Top Fixed Income Sectors

 

     % of
Market Value of
Total Investments		  
Cash & Cash Equivalents      25.9   
Corporate Bonds & Notes      22.5   
Convertible Bonds      16.5   
U.S. Treasury & Government Agencies      1.4   
Foreign Government      0.3   

 

MIST-3

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

JPMorgan Global Active Allocation Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B

      Actual      1.10 %     $ 1,000.00         $ 1,018.80         $ 5.51   
     Hypothetical*      1.10 %     $ 1,000.00         $ 1,019.34         $ 5.51   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—33.0% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.6%

    

BAE Systems plc

     199,807      $ 1,167,825   

European Aeronautic Defence and Space Co. NV

     33,570        1,785,088   

General Dynamics Corp.

     558        43,708   

Honeywell International, Inc.

     16,681        1,323,471   

United Technologies Corp.

     15,115        1,404,788   
   

 

 

  
      5,724,880   
   

 

 

  

Air Freight & Logistics—0.2%

    

Deutsche Post AG

     32,309        802,906   

FedEx Corp.

     970        95,623   

United Parcel Service, Inc. - Class B

     417        36,062   

Yamato Holdings Co., Ltd.

     26,300        554,532   
   

 

 

  
      1,489,123   
   

 

 

  

Airlines—0.0%

    

Southwest Airlines Co.

     8,323        107,283   
   

 

 

  

Auto Components—0.4%

    

Bridgestone Corp.

     66,400        2,263,256   

Continental AG

     7,575        1,009,319   

Johnson Controls, Inc.

     2,080        74,443   

Valeo S.A.

     9,112        570,059   
   

 

 

  
      3,917,077   
   

 

 

  

Automobiles—1.3%

    

Astra International Tbk PT

     1,117,500        788,161   

Daihatsu Motor Co., Ltd.

     22,000        417,062   

General Motors Co. (a)

     22,724        756,936   

Honda Motor Co., Ltd.

     39,800        1,478,987   

Hyundai Motor Co.

     6,700        1,322,928   

Isuzu Motors, Ltd.

     140,000        958,649   

Mahindra & Mahindra, Ltd. (GDR)

     50,300        821,560   

Mazda Motor Corp. (a)

     196,000        772,869   

Nissan Motor Co., Ltd.

     16,700        169,252   

Toyota Motor Corp.

     61,000        3,683,259   

Yamaha Motor Co., Ltd.

     31,400        406,905   
   

 

 

  
      11,576,568   
   

 

 

  

Beverages—0.8%

    

Carlsberg A/S - Class B

     3,125        278,926   

Cia de Bebidas das Americas (ADR)

     30,300        1,131,705   

Coca-Cola Co. (The)

     27,930        1,120,272   

Coca-Cola Enterprises, Inc.

     12,018        422,553   

Diageo plc

     3,651        104,722   

Dr. Pepper Snapple Group, Inc.

     5,518        253,442   

PepsiCo, Inc.

     9,050        740,199   

SABMiller plc

     43,341        2,085,514   

Tsingtao Brewery Co., Ltd.

     106,000        758,505   
   

 

 

  
      6,895,838   
   

 

 

  

Biotechnology—0.3%

    

Alexion Pharmaceuticals, Inc. (a)

     2,365        218,147   

Biogen Idec, Inc. (a)

     5,426        1,167,675   

Celgene Corp. (a)

     8,214        960,299   
Security Description   Shares     Value  

Biotechnology—(Continued)

    

Onyx Pharmaceuticals, Inc. (a)

     1,796      $ 155,929   

Vertex Pharmaceuticals, Inc. (a)

     3,048        243,444   
   

 

 

  
      2,745,494   
   

 

 

  

Building Products—0.2%

    

Cie de St-Gobain

     18,072        727,436   

Daikin Industries, Ltd.

     12,300        497,388   

Masco Corp.

     19,450        379,081   
   

 

 

  
      1,603,905   
   

 

 

  

Capital Markets—0.8%

    

Credit Suisse Group AG (a)

     62,141        1,647,525   

Deutsche Bank AG

     18,309        765,927   

Goldman Sachs Group, Inc. (The)

     5,373        812,666   

Invesco, Ltd.

     16,308        518,595   

Morgan Stanley

     13,870        338,844   

State Street Corp.

     8,291        540,656   

UBS AG (a)

     136,317        2,315,796   
   

 

 

  
      6,940,009   
   

 

 

  

Chemicals—0.7%

    

Air Products & Chemicals, Inc.

     6,490        594,289   

Asahi Kasei Corp.

     96,000        635,047   

Axiall Corp.

     3,743        159,377   

BASF SE

     13,231        1,181,703   

CF Industries Holdings, Inc.

     651        111,646   

Dow Chemical Co. (The)

     16,621        534,698   

E.I. du Pont de Nemours & Co.

     6,003        315,157   

Nitto Denko Corp.

     8,000        514,687   

Solvay S.A.

     8,493        1,111,062   

Syngenta AG

     1,572        613,061   
   

 

 

  
      5,770,727   
   

 

 

  

Commercial Banks—3.2%

    

Australia & New Zealand Banking Group, Ltd.

     40,287        1,045,678   

Banco Santander Chile (ADR)

     15,500        378,975   

Barclays plc

     423,421        1,815,099   

BNP Paribas S.A.

     30,712        1,678,003   

Capitec Bank Holdings, Ltd.

     10,200        199,149   

China Merchants Bank Co., Ltd.

     208,000        347,558   

CIT Group, Inc. (a)

     887        41,361   

Comerica, Inc.

     4,844        192,936   

Danske Bank A/S (a)

     30,110        512,598   

Fifth Third Bancorp.

     3,565        64,348   

Grupo Financiero Banorte S.A.B. de C.V. - Class O

     56,700        338,692   

HDFC Bank, Ltd. (ADR)

     60,700        2,199,768   

HSBC Holdings plc

     244,377        2,532,499   

Itau Unibanco Holding S.A. (ADR)

     48,000        620,160   

Lloyds Banking Group plc (a)

     675,210        650,943   

Mitsubishi UFJ Financial Group, Inc.

     469,300        2,912,227   

Mizuho Financial Group, Inc.

     389,100        809,857   

OTP Bank plc

     16,600        348,347   

PT Bank Rakyat Indonesia Persero Tbk

     675,000        522,962   

Public Bank Bhd

     86,800        465,388   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-5

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Commercial Banks—(Continued)

    

Sberbank of Russia (ADR) (a)

     75,400      $ 860,661   

Siam Commercial Bank PCL (NVDR)

     79,800        442,547   

Standard Chartered plc

     35,200        759,961   

Sumitomo Mitsui Financial Group, Inc.

     59,700        2,739,252   

Sumitomo Mitsui Trust Holdings, Inc.

     250,000        1,167,255   

SunTrust Banks, Inc.

     5,307        167,542   

Swedbank AB - A Shares

     47,925        1,093,782   

Turkiye Garanti Bankasi A/S

     184,000        800,983   

Wells Fargo & Co.

     54,555        2,251,485   

Westpac Banking Corp.

     8,256        216,137   
   

 

 

  
      28,176,153   
   

 

 

  

Commercial Services & Supplies—0.1%

    

Moshi Moshi Hotline, Inc.

     69,600        861,218   

Tyco International, Ltd.

     5,286        174,174   
   

 

 

  
      1,035,392   
   

 

 

  

Communications Equipment—0.4%

    

Cisco Systems, Inc.

     59,848        1,454,905   

QUALCOMM, Inc.

     17,734        1,083,193   

Telefonaktiebolaget LM Ericsson - Class B

     103,558        1,174,071   
   

 

 

  
      3,712,169   
   

 

 

  

Computers & Peripherals—0.3%

    

Apple, Inc.

     5,626        2,228,346   

EMC Corp.

     14,456        341,451   

Hewlett-Packard Co.

     13,877        344,150   

NetApp, Inc. (a)

     2,294        86,667   
   

 

 

  
      3,000,614   
   

 

 

  

Construction & Engineering—0.1%

    

Fluor Corp.

     12,729        754,957   

Larsen & Toubro, Ltd. (GDR)

     16,800        398,026   
   

 

 

  
      1,152,983   
   

 

 

  

Construction Materials—0.1%

    

Holcim, Ltd. (a)

     9,966        695,452   
   

 

 

  

Consumer Finance—0.1%

    

Capital One Financial Corp.

     8,142        511,399   
   

 

 

  

Containers & Packaging—0.2%

    

Crown Holdings, Inc. (a)

     7,226        297,206   

Smurfit Kappa Group plc

     70,863        1,181,041   
   

 

 

  
      1,478,247   
   

 

 

  

Distributors—0.0%

    

Imperial Holdings, Ltd.

     9,800        208,054   
   

 

 

  

Diversified Financial Services—0.8%

    

African Bank Investments, Ltd.

     105,900        174,838   

Bank of America Corp.

     101,601        1,306,589   

Citigroup, Inc.

     33,879        1,625,176   

Deutsche Boerse AG

     19,216        1,265,015   

Diversified Financial Services—(Continued)

  

  

FirstRand, Ltd.

     194,100      $ 568,061   

IntercontinentalExchange, Inc. (a)

     1,487        264,329   

NYSE Euronext

     1,538        63,673   

ORIX Corp.

     130,100        1,777,851   

Remgro, Ltd.

     22,600        434,279   
   

 

 

  
      7,479,811   
   

 

 

  

Diversified Telecommunication Services—0.5%

  

  

AT&T, Inc.

     17,355        614,367   

BT Group plc

     188,513        882,173   

Deutsche Telekom AG

     45,098        526,005   

Nippon Telegraph & Telephone Corp.

     13,500        704,588   

Telstra Corp., Ltd.

     85,437        371,952   

Verizon Communications, Inc.

     23,639        1,189,987   
   

 

 

  
      4,289,072   
   

 

 

  

Electric Utilities—0.3%

    

American Electric Power Co., Inc.

     3,105        139,042   

Edison International

     10,698        515,216   

Electricite de France S.A.

     19,144        444,215   

N.V. Energy, Inc.

     5,231        122,719   

NextEra Energy, Inc.

     9,947        810,481   

Xcel Energy, Inc.

     11,096        314,461   
   

 

 

  
      2,346,134   
   

 

 

  

Electrical Equipment—0.4%

    

ABB, Ltd. (a)

     20,537        443,369   

Eaton Corp. plc

     1,002        65,942   

Emerson Electric Co.

     21,058        1,148,503   

Schneider Electric S.A.

     17,960        1,294,833   

Sumitomo Electric Industries, Ltd.

     60,300        721,176   
   

 

 

  
      3,673,823   
   

 

 

  

Electronic Equipment, Instruments & Components—0.3%

  

Anritsu Corp.

     34,400        407,595   

Corning, Inc.

     5,892        83,843   

Delta Electronics, Inc.

     186,000        847,119   

Hitachi, Ltd.

     237,000        1,522,419   

TE Connectivity, Ltd.

     2,806        127,785   
   

 

 

  
      2,988,761   
   

 

 

  

Energy Equipment & Services—0.4%

    

Cameron International Corp. (a)

     3,860        236,078   

Ensco plc - Class A

     10,672        620,257   

Noble Corp.

     6,506        244,495   

Petrofac, Ltd.

     27,560        503,846   

Schlumberger, Ltd.

     14,246        1,020,868   

Tenaris S.A. (ADR)

     17,800        716,806   
   

 

 

  
      3,342,350   
   

 

 

  

Food & Staples Retailing—0.7%

    

CVS Caremark Corp.

     16,986        971,260   

Kroger Co. (The)

     2,622        90,564   

Magnit OJSC (GDR) (a)

     19,700        907,347   

Massmart Holdings, Ltd.

     15,900        288,057   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-6

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Food & Staples Retailing—(Continued)

    

President Chain Store Corp.

     75,000      $ 491,725   

Seven & I Holdings Co., Ltd.

     34,100        1,246,549   

Shoprite Holdings, Ltd.

     28,600        536,699   

Sun Art Retail Group, Ltd.

     256,000        370,333   

Wal-Mart de Mexico S.A.B. de C.V.

     271,500        764,373   

Wal-Mart Stores, Inc.

     4,425        329,618   
   

 

 

  
      5,996,525   
   

 

 

  

Food Products—1.2%

    

Archer-Daniels-Midland Co.

     20,391        691,459   

General Mills, Inc.

     9,311        451,863   

Grieg Seafood ASA (a)

     324,584        838,045   

Marine Harvest ASA

     933,651        946,872   

Mondelez International, Inc. - Class A

     25,934        739,897   

Nestle S.A.

     29,141        1,906,009   

Nutreco NV

     29,990        1,274,962   

Salmar ASA (a)

     97,574        995,900   

Tiger Brands, Ltd.

     12,500        374,176   

Tingyi Cayman Islands Holding Corp.

     158,000        411,498   

Unilever NV

     47,175        1,850,526   

Viscofan S.A.

     8,945        447,316   
   

 

 

  
      10,928,523   
   

 

 

  

Gas Utilities—0.0%

    

Questar Corp.

     4,023        95,949   
   

 

 

  

Health Care Equipment & Supplies—0.2%

    

Baxter International, Inc.

     5,562        385,280   

CareFusion Corp. (a)

     8,014        295,316   

Covidien plc

     8,096        463,091   

Intuitive Surgical, Inc. (a)

     666        337,382   

St. Jude Medical, Inc.

     1,879        85,739   
   

 

 

  
      1,566,808   
   

 

 

  

Health Care Providers & Services—0.2%

    

DaVita HealthCare Partners, Inc. (a)

     2,450        295,960   

Humana, Inc.

     5,449        459,786   

UnitedHealth Group, Inc.

     12,435        814,244   
   

 

 

  
      1,569,990   
   

 

 

  

Health Care Technology—0.0%

    

athenahealth, Inc. (a)

     903        76,502   

Cerner Corp. (a)

     1,862        178,920   
   

 

 

  
      255,422   
   

 

 

  

Hotels, Restaurants & Leisure—0.6%

    

InterContinental Hotels Group plc

     67,786        1,865,508   

Marriott International, Inc. - Class A

     5,841        235,801   

Royal Caribbean Cruises, Ltd.

     7,746        258,251   

Sands China, Ltd.

     154,000        723,236   

Sodexo

     16,111        1,341,595   

Starbucks Corp.

     1,990        130,325   

William Hill plc

     39,093        263,044   

Yum! Brands, Inc.

     4,827        334,704   
   

 

 

  
      5,152,464   
   

 

 

  

Household Durables—0.5%

    

Barratt Developments plc (a)

     90,527      $ 424,074   

Berkeley Group Holdings plc

     14,399        465,234   

Electrolux AB - Series B

     33,905        857,368   

Haseko Corp. (a)

     376,000        458,790   

Lennar Corp. - Class A

     2,507        90,352   

NVR, Inc. (a)

     36        33,192   

Persimmon plc (a)

     23,379        421,764   

PulteGroup, Inc. (a)

     13,186        250,138   

Sekisui House, Ltd.

     47,000        679,655   

Taylor Wimpey plc

     415,493        603,306   
   

 

 

  
      4,283,873   
   

 

 

  

Household Products—0.3%

    

Clorox Co. (The)

     1,391        115,648   

Kimberly-Clark Corp.

     4,945        480,357   

Procter & Gamble Co. (The)

     19,762        1,521,476   

Svenska Cellulosa AB - B Shares

     16,915        423,502   

Unilever Indonesia Tbk PT

     142,000        439,950   
   

 

 

  
      2,980,933   
   

 

 

  

Industrial Conglomerates—0.4%

    

Bidvest Group, Ltd.

     29,400        728,527   

General Electric Co.

     35,956        833,820   

Hutchison Whampoa, Ltd.

     99,000        1,034,645   

Jardine Matheson Holdings, Ltd.

     13,600        822,800   

KOC Holding

     73,500        352,885   
   

 

 

  
      3,772,677   
   

 

 

  

Insurance—3.1%

    

ACE, Ltd.

     10,497        939,272   

Aegon NV

     271,381        1,811,723   

Aflac, Inc.

     2,056        119,495   

Ageas

     41,616        1,454,438   

AIA Group, Ltd.

     312,800        1,314,563   

Allianz SE

     23,930        3,494,745   

Aon plc

     4,111        264,543   

AXA S.A.

     166,006        3,261,752   

Berkshire Hathaway, Inc. - Class B (a)

     7,311        818,247   

Delta Lloyd NV

     64,785        1,290,659   

Everest Re Group, Ltd.

     960        123,130   

Hartford Financial Services Group, Inc.

     19,031        588,438   

Lancashire Holdings, Ltd.

     67,819        818,031   

Legal & General Group plc

     238,730        624,614   

Lincoln National Corp.

     1,603        58,461   

Muenchener Rueckversicherungs AG

     7,877        1,446,419   

Ping An Insurance Group Co. of China, Ltd.

     113,000        760,516   

Prudential Financial, Inc.

     8,414        614,474   

Prudential plc

     186,660        3,068,624   

RenaissanceRe Holdings, Ltd.

     803        69,692   

Standard Life plc

     108,149        565,431   

Swiss Re AG (a)

     36,302        2,689,125   

Zurich Financial Services AG (a)

     5,673        1,470,207   
   

 

 

  
      27,666,599   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-7

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Internet & Catalog Retail—0.1%

    

Amazon.com, Inc. (a)

     2,447      $ 679,507   

Expedia, Inc.

     1,533        92,210   

priceline.com, Inc. (a)

     365        301,903   
   

 

 

  
      1,073,620   
   

 

 

  

Internet Software & Services—0.3%

    

eBay, Inc. (a)

     4,992        258,186   

Google, Inc. - Class A (a)

     2,627        2,312,732   

LinkedIn Corp. - Class A (a)

     227        40,474   
   

 

 

  
      2,611,392   
   

 

 

  

IT Services—0.6%

    

Cap Gemini S.A.

     17,065        829,642   

Cielo S.A.

     18,500        464,293   

Cognizant Technology Solutions Corp. - Class A (a)

     4,544        284,500   

Fidelity National Information Services, Inc.

     5,704        244,359   

Infosys, Ltd. (ADR)

     21,200        873,228   

International Business Machines Corp.

     5,356        1,023,585   

Jack Henry & Associates, Inc.

     1,978        93,223   

Visa, Inc. - Class A

     6,406        1,170,697   
   

 

 

  
      4,983,527   
   

 

 

  

Life Sciences Tools & Services—0.0%

    

Mettler-Toledo International, Inc. (a)

     1,103        221,923   

Thermo Fisher Scientific, Inc.

     2,436        206,159   
   

 

 

  
      428,082   
   

 

 

  

Machinery—0.3%

    

Cummins, Inc.

     646        70,065   

Deere & Co.

     2,397        194,756   

Mitsubishi Heavy Industries, Ltd.

     126,000        700,090   

PACCAR, Inc.

     12,734        683,306   

SPX Corp.

     2,351        169,225   

WEG S.A.

     31,600        398,656   
   

 

 

  
      2,216,098   
   

 

 

  

Media—0.8%

    

CBS Corp. - Class B

     11,087        541,822   

Comcast Corp. - Class A

     29,651        1,241,784   

DISH Network Corp. - Class A

     2,444        103,919   

Pearson plc

     40,494        719,000   

Time Warner Cable, Inc.

     3,541        398,292   

Time Warner, Inc.

     19,969        1,154,607   

Walt Disney Co. (The)

     4,601        290,553   

Wolters Kluwer NV

     30,023        633,146   

WPP plc

     98,720        1,686,589   
   

 

 

  
      6,769,712   
   

 

 

  

Metals & Mining—0.3%

    

Alcoa, Inc.

     37,718        294,955   

First Quantum Minerals, Ltd.

     48,999        726,808   

Kumba Iron Ore, Ltd.

     14,100        654,347   

Rio Tinto plc

     18,503        758,374   

Metals & Mining—(Continued)

    

Vale S.A. (ADR)

     46,600      $ 566,656   

Walter Energy, Inc.

     2,169        22,558   
   

 

 

  
      3,023,698   
   

 

 

  

Multi-Utilities—0.3%

    

Centrica plc

     107,447        589,683   

CMS Energy Corp.

     3,029        82,298   

DTE Energy Co.

     4,276        286,535   

GDF Suez

     27,546        537,100   

NiSource, Inc.

     13,919        398,640   

Sempra Energy

     5,184        423,844   
   

 

 

  
      2,318,100   
   

 

 

  

Multiline Retail—0.2%

    

Lojas Renner S.A.

     12,200        349,649   

Macy’s, Inc.

     5,760        276,480   

Nordstrom, Inc.

     930        55,744   

Target Corp.

     13,415        923,757   
   

 

 

  
      1,605,630   
   

 

 

  

Oil, Gas & Consumable Fuels—2.0%

    

Anadarko Petroleum Corp.

     4,576        393,216   

Apache Corp.

     2,597        217,707   

BG Group plc

     86,849        1,482,251   

BP plc

     266,093        1,845,933   

Chevron Corp.

     16,823        1,990,834   

CNOOC, Ltd.

     523,000        887,395   

ConocoPhillips

     12,226        739,673   

ENI S.p.A.

     17,035        349,977   

EOG Resources, Inc.

     2,538        334,204   

Exxon Mobil Corp.

     21,840        1,973,244   

Marathon Petroleum Corp.

     3,515        249,776   

Occidental Petroleum Corp.

     5,610        500,580   

Petroleo Brasileiro S.A. (ADR)

     56,500        828,290   

Phillips 66

     6,764        398,467   

Range Resources Corp.

     1,048        81,031   

Repsol S.A.

     29,628        624,592   

Royal Dutch Shell plc - A Shares

     75,540        2,412,473   

Royal Dutch Shell plc - B Shares

     25,711        850,283   

Tullow Oil plc

     45,219        690,742   

Ultrapar Participacoes S.A.

     26,800        636,325   

Valero Energy Corp.

     2,373        82,509   

Williams Cos., Inc. (The)

     9,706        315,154   
   

 

 

  
      17,884,656   
   

 

 

  

Paper & Forest Products—0.1%

    

Stora Enso Oyj - R Shares

     64,414        429,232   

UPM-Kymmene Oyj

     38,921        379,602   
   

 

 

  
      808,834   
   

 

 

  

Pharmaceuticals—2.8%

    

Actavis, Inc. (a)

     910        114,860   

Allergan, Inc.

     4,480        377,395   

Bayer AG

     32,622        3,477,724   

Bristol-Myers Squibb Co.

     26,813        1,198,273   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-8

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Pharmaceuticals—(Continued)

    

GlaxoSmithKline plc

     96,432      $ 2,412,422   

Johnson & Johnson

     27,418        2,354,109   

Mallinckrodt plc (a)

     253        11,494   

Merck & Co., Inc.

     4,368        202,894   

Novartis AG

     58,128        4,119,497   

Novo Nordisk A/S - Class B

     2,633        409,925   

Otsuka Holdings Co., Ltd.

     14,000        462,313   

Pfizer, Inc.

     11,489        321,807   

Roche Holding AG

     18,267        4,526,277   

Sanofi

     31,759        3,272,989   

Shire plc

     28,883        916,255   

Valeant Pharmaceuticals International, Inc. (a)

     1,811        155,891   

Zoetis, Inc.

     1,263        39,014   
   

 

 

  
      24,373,139   
   

 

 

  

Professional Services—0.1%

    

Experian plc

     55,954        970,496   
   

 

 

  

Real Estate Investment Trusts—0.7%

    

Alexandria Real Estate Equities, Inc.

     620        40,746   

American Campus Communities, Inc.

     2,020        82,133   

Apartment Investment & Management Co. - Class A

     1,423        42,747   

Boston Properties, Inc.

     1,662        175,291   

Brandywine Realty Trust

     10,466        141,500   

CBL & Associates Properties, Inc.

     10,037        214,993   

Digital Realty Trust, Inc.

     1,489        90,829   

First Real Estate Investment Trust

     718,000        688,195   

Goodman Group

     167,284        741,408   

HCP, Inc.

     3,549        161,267   

Highwoods Properties, Inc.

     5,331        189,837   

Host Hotels & Resorts, Inc.

     10,390        175,279   

LaSalle Hotel Properties

     5,564        137,431   

Lippo Malls Indonesia Retail Trust

     1,668,000        644,756   

Mapletree Logistics Trust

     696,000        603,968   

Post Properties, Inc.

     1,413        69,929   

ProLogis, Inc.

     813        30,666   

Simon Property Group, Inc.

     2,357        372,218   

Unibail-Rodamco SE

     4,283        995,646   

Ventas, Inc.

     2,292        159,202   
   

 

 

  
      5,758,041   
   

 

 

  

Real Estate Management & Development—0.5%

  

Deutsche Wohnen AG

     82,530        1,400,436   

GSW Immobilien AG

     31,149        1,200,830   

Hang Lung Properties, Ltd.

     143,000        496,468   

Mitsubishi Estate Co., Ltd.

     19,000        506,025   

TAG Immobilien AG

     37,488        407,973   

Wharf Holdings, Ltd.

     74,000        616,113   
   

 

 

  
      4,627,845   
   

 

 

  

Road & Rail—0.3%

    

CSX Corp.

     35,707        828,045   

East Japan Railway Co.

     5,900        458,699   

Norfolk Southern Corp.

     1,175        85,364   

Union Pacific Corp.

     7,943        1,225,446   
   

 

 

  
      2,597,554   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.8%

  

Applied Materials, Inc.

     16,456      $ 245,359   

ASML Holding NV

     21,168        1,660,713   

Avago Technologies, Ltd.

     3,828        143,091   

Broadcom Corp. - Class A

     16,266        549,140   

KLA-Tencor Corp.

     5,654        315,097   

Lam Research Corp. (a)

     4,948        219,394   

Samsung Electronics Co., Ltd. (GDR)

     3,200        1,880,128   

Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)

     107,000        1,960,240   

Texas Instruments, Inc.

     5,687        198,306   

Xilinx, Inc.

     3,883        153,806   
   

 

 

  
      7,325,274   
   

 

 

  

Software—0.5%

    

Adobe Systems, Inc. (a)

     15,711        715,793   

Citrix Systems, Inc. (a)

     4,156        250,732   

Microsoft Corp.

     51,404        1,774,980   

Oracle Corp.

     32,531        999,352   

SAP AG

     13,997        1,024,943   

VMware, Inc. - Class A (a)

     713        47,764   
   

 

 

  
      4,813,564   
   

 

 

  

Specialty Retail—0.5%

    

AutoZone, Inc. (a)

     1,452        615,198   

Home Depot, Inc. (The)

     15,134        1,172,431   

Kingfisher plc

     177,450        928,940   

Lowe’s Cos., Inc.

     17,778        727,120   

Mr. Price Group, Ltd.

     12,800        174,074   

O’Reilly Automotive, Inc. (a)

     443        49,891   

Ross Stores, Inc.

     3,032        196,504   

TJX Cos., Inc.

     12,073        604,374   
   

 

 

  
      4,468,532   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.2%

  

Cie Financiere Richemont S.A. - Class A

     14,679        1,287,666   

Lululemon Athletica, Inc. (a)

     726        47,568   

VF Corp.

     3,858        744,825   
   

 

 

  
      2,080,059   
   

 

 

  

Tobacco—1.0%

    

British American Tobacco Malaysia Bhd

     13,300        250,888   

British American Tobacco plc

     43,961        2,257,547   

Japan Tobacco, Inc.

     133,000        4,700,680   

Philip Morris International, Inc.

     17,287        1,497,400   
   

 

 

  
      8,706,515   
   

 

 

  

Trading Companies & Distributors—0.1%

  

Marubeni Corp.

     19,000        127,029   

WW Grainger, Inc.

     1,274        321,277   
   

 

 

  
      448,306   
   

 

 

  

Transportation Infrastructure—0.1%

    

CCR S.A.

     67,700        537,025   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-9

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description  

Shares/

Principal
Amount*

     Value  

Wireless Telecommunication Services—0.7%

  

  

China Mobile, Ltd.

     120,500      $ 1,255,441   

MTN Group, Ltd.

     50,600        938,585   

Softbank Corp.

     21,500        1,255,352   

Sprint Nextel Corp. (a)

     6,364        44,675   

Vodafone Group plc

     990,070        2,841,221   
   

 

 

  
      6,335,274   
   

 

 

  

Total Common Stocks
(Cost $282,963,412)

       291,896,054   
   

 

 

  
Corporate Bonds & Notes—23.1%   

Aerospace/Defense—0.4%

    

BAE Systems Finance, Inc.
7.500%, 07/01/27 (144A)

     300,000        375,602   

BAE Systems plc
4.750%, 10/11/21 (144A)

     225,000        237,939   

Boeing Co. (The)
7.250%, 06/15/25

     11,000        13,926   

8.625%, 11/15/31

     125,000        176,991   

General Dynamics Corp.
1.000%, 11/15/17

     117,000        112,785   

2.250%, 11/15/22

     250,000        226,191   

Lockheed Martin Corp.
4.070%, 12/15/42

     187,000        163,273   

7.650%, 05/01/16

     168,000        196,474   

Northrop Grumman Corp.
3.250%, 08/01/23

     400,000        378,524   

Northrop Grumman Systems Corp.
7.750%, 02/15/31

     200,000        261,745   

United Technologies Corp.
5.375%, 12/15/17

     173,000        198,434   

5.400%, 05/01/35

     525,000        584,983   

6.050%, 06/01/36

     100,000        121,088   

6.700%, 08/01/28

     233,000        292,239   

7.500%, 09/15/29

     255,000        350,323   

8.875%, 11/15/19

     41,000        54,603   
   

 

 

  
      3,745,120   
   

 

 

  

Agriculture—0.2%

    

Archer-Daniels-Midland Co.
4.016%, 04/16/43

     150,000        131,305   

5.375%, 09/15/35

     100,000        106,138   

6.625%, 05/01/29

     100,000        119,484   

Bunge NA Finance L.P.
5.900%, 04/01/17

     90,000        99,132   

Bunge, Ltd. Finance Corp.
3.200%, 06/15/17

     131,000        134,017   

Cargill, Inc.
6.125%, 04/19/34 (144A)

     325,000        371,587   

7.350%, 03/06/19 (144A)

     260,000        321,927   

Monsanto Finance Canada Co.
5.500%, 07/30/35

     125,000        137,060   
   

 

 

  
      1,420,650   
   

 

 

  

Airlines—0.0%

    

Air Canada
4.125%, 11/15/26 (144A)

     176,000      $ 175,560   

Continental Airlines 2012-2 Class A Pass-Through Certificates
4.000%, 04/29/26

     42,000        41,895   

Delta Air Lines Pass-Through Trust
4.750%, 11/07/21

     68,465        71,546   
   

 

 

  
      289,001   
   

 

 

  

Auto Manufacturers—0.2%

    

Daimler Finance North America LLC
1.875%, 01/11/18 (144A)

     205,000        200,046   

8.500%, 01/18/31

     330,000        466,912   

Ford Motor Co.
6.375%, 02/01/29

     500,000        529,882   

9.980%, 02/15/47

     275,000        378,719   

Nissan Motor Acceptance Corp.
1.800%, 03/15/18 (144A)

     146,000        142,147   

1.950%, 09/12/17 (144A)

     500,000        496,748   
   

 

 

  
      2,214,454   
   

 

 

  

Auto Parts & Equipment—0.0%

    

Johnson Controls, Inc.
2.600%, 12/01/16

     75,000        77,696   

5.500%, 01/15/16

     135,000        148,323   
   

 

 

  
      226,019   
   

 

 

  

Banks—4.2%

    

American Express Bank FSB
0.493%, 06/12/17 (b)

     500,000        492,641   

American Express Centurion Bank
6.000%, 09/13/17

     250,000        287,286   

Bank of America Corp.
2.000%, 01/11/18

     1,000,000        968,614   

5.625%, 10/14/16

     800,000        885,047   

5.625%, 07/01/20

     2,000,000        2,201,934   

7.625%, 06/01/19

     250,000        300,444   

Bank of America NA
5.300%, 03/15/17

     1,400,000        1,518,418   

Bank of Montreal
1.400%, 09/11/17

     194,000        189,449   

2.550%, 11/06/22

     213,000        197,664   

Bank of New York Mellon Corp. (The)
1.969%, 06/20/17 (c)

     500,000        502,975   

3.550%, 09/23/21

     352,000        358,778   

4.600%, 01/15/20

     200,000        218,505   

Bank of Nova Scotia
1.375%, 12/18/17

     200,000        194,170   

3.400%, 01/22/15

     470,000        488,729   

BB&T Corp.
1.600%, 08/15/17

     44,000        43,030   

2.050%, 06/19/18

     139,000        136,976   

2.150%, 03/22/17

     350,000        350,575   

3.950%, 03/22/22

     175,000        176,293   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-10

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

    

Branch Banking & Trust Co.
0.592%, 09/13/16 (b)

     250,000      $ 247,345   

Canadian Imperial Bank of Commerce
0.900%, 10/01/15

     87,000        87,054   

Capital One Financial Corp.
1.000%, 11/06/15

     91,000        89,766   

5.500%, 06/01/15

     208,000        223,319   

7.375%, 05/23/14

     250,000        264,214   

Capital One N.A.
1.500%, 03/22/18

     500,000        481,927   

Citigroup, Inc.
3.375%, 03/01/23

     192,000        183,670   

6.125%, 11/21/17

     1,600,000        1,818,478   

6.125%, 05/15/18

     1,200,000        1,373,686   

6.625%, 01/15/28

     100,000        113,765   

8.500%, 05/22/19

     473,000        595,993   

Comerica Bank
5.200%, 08/22/17

     250,000        278,623   

5.750%, 11/21/16

     376,000        427,659   
   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
2.125%, 10/13/15

     620,000        634,504   

Credit Suisse of New York

    

5.500%, 05/01/14

     550,000        572,415   

Fifth Third Bancorp

    

3.625%, 01/25/16

     155,000        163,628   

8.250%, 03/01/38

     50,000        63,407   

Goldman Sachs Group, Inc. (The)

    

3.625%, 01/22/23

     500,000        478,387   

5.250%, 07/27/21

     800,000        855,919   

5.375%, 03/15/20

     500,000        542,527   

6.125%, 02/15/33

     1,000,000        1,093,746   

6.250%, 09/01/17

     1,000,000        1,133,204   

7.500%, 02/15/19

     750,000        890,680   

HSBC Bank plc

    

1.500%, 05/15/18 (144A)

     364,000        350,782   

HSBC Bank USA NA

    

4.875%, 08/24/20

     500,000        535,639   

5.875%, 11/01/34

     500,000        531,986   

HSBC USA, Inc.

    

1.625%, 01/16/18

     300,000        292,684   

KeyBank N.A.

    

4.950%, 09/15/15

     167,000        179,902   

KeyCorp.

    

3.750%, 08/13/15

     200,000        210,632   

Morgan Stanley

    

3.750%, 02/25/23

     333,000        318,442   

5.450%, 01/09/17

     1,750,000        1,891,309   

5.500%, 01/26/20

     100,000        107,339   

5.550%, 04/27/17

     650,000        703,159   

5.625%, 09/23/19

     1,100,000        1,182,314   

National City Bank

    

5.800%, 06/07/17

     500,000        569,133   

National City Bank of Indiana

    

4.250%, 07/01/18

     250,000        267,235   

Banks—(Continued)

    

Northern Trust Corp.

    

3.375%, 08/23/21

     500,000      $ 506,993   

PNC Bank NA

    

6.875%, 04/01/18

     350,000        419,776   

Rabobank Nederland

    

3.875%, 02/08/22

     350,000        352,457   

Royal Bank of Canada

    

2.875%, 04/19/16

     500,000        523,445   

State Street Bank and Trust Co.

    

5.250%, 10/15/18

     215,000        245,082   

State Street Corp.

    

3.100%, 05/15/23

     90,000        84,300   

4.375%, 03/07/21

     100,000        108,234   

SunTrust Banks, Inc.

    

0.574%, 04/01/15 (b)

     377,000        374,071   

2.750%, 05/01/23

     300,000        276,028   

6.000%, 09/11/17

     150,000        172,020   

Toronto-Dominion Bank (The)

    

1.400%, 04/30/18

     348,000        337,771   

UBS AG

    

4.875%, 08/04/20

     250,000        276,051   

US Bancorp

    

2.200%, 11/15/16

     175,000        179,506   

US Bank NA

    

0.557%, 10/14/14 (b)

     150,000        150,268   

4.800%, 04/15/15

     200,000        213,831   

Wachovia Bank N.A.

    

6.000%, 11/15/17

     500,000        570,557   

Wachovia Corp.

    

6.605%, 10/01/25

     222,000        267,278   

Wells Fargo & Co.

    

5.125%, 09/15/16

     50,000        55,254   

5.625%, 12/11/17

     700,000        795,686   

Wells Fargo Bank NA

    

4.750%, 02/09/15

     1,000,000        1,055,390   

Westpac Banking Corp.

    

1.033%, 09/25/15 (b)

     200,000        202,168   

4.875%, 11/19/19

     400,000        448,341   
   

 

 

  
      36,880,507   
   

 

 

  

Beverages—0.6%

    

Anheuser-Busch Cos. LLC
5.750%, 04/01/36

     60,000        68,675   

5.950%, 01/15/33

     100,000        117,459   

6.750%, 12/15/27

     65,000        80,584   

6.800%, 08/20/32

     420,000        540,038   

Anheuser-Busch InBev Finance, Inc.
2.625%, 01/17/23

     1,000,000        938,224   

Anheuser-Busch InBev Worldwide, Inc.
2.500%, 07/15/22

     42,000        39,211   

8.000%, 11/15/39

     50,000        71,961   

Beam, Inc.
5.375%, 01/15/16

     191,000        208,758   

Brown-Forman Corp.
1.000%, 01/15/18

     122,000        117,497   

2.250%, 01/15/23

     143,000        131,265   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-11

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Beverages—(Continued)

    

Coca-Cola Co. (The)
7.375%, 07/29/93

     100,000      $ 126,934   

Coca-Cola Refreshments USA, Inc.
7.000%, 05/15/98

     100,000        128,203   

Diageo Capital plc
4.828%, 07/15/20

     250,000        282,362   

4.850%, 05/15/18

     46,000        51,342   

Diageo Investment Corp.
2.875%, 05/11/22

     200,000        193,092   

7.450%, 04/15/35

     70,000        94,688   

Dr Pepper Snapple Group, Inc.
2.000%, 01/15/20

     92,000        86,744   

Molson Coors Brewing Co.
2.000%, 05/01/17

     200,000        199,905   

PepsiCo, Inc.
0.483%, 02/26/16 (b)

     341,000        341,537   

4.500%, 01/15/20

     276,000        304,732   

5.000%, 06/01/18

     250,000        283,002   

5.500%, 01/15/40

     150,000        167,181   

SABMiller plc
6.500%, 07/15/18 (144A)

     250,000        296,722   

6.625%, 08/15/33 (144A)

     150,000        182,048   
   

 

 

  
      5,052,164   
   

 

 

  

Biotechnology—0.2%

    

Amgen, Inc.
3.875%, 11/15/21

     575,000        591,833   

5.150%, 11/15/41

     75,000        74,696   

6.375%, 06/01/37

     500,000        580,069   

6.400%, 02/01/39

     100,000        115,195   

6.900%, 06/01/38

     100,000        122,666   

Celgene Corp.
3.250%, 08/15/22

     174,000        165,025   

Genzyme Corp.
3.625%, 06/15/15

     150,000        158,536   

Gilead Sciences, Inc.
4.400%, 12/01/21

     125,000        134,229   

4.500%, 04/01/21

     100,000        108,364   
   

 

 

  
      2,050,613   
   

 

 

  

Chemicals—0.5%

    

Dow Chemical Co. (The)
3.000%, 11/15/22

     54,000        50,223   

8.550%, 05/15/19

     100,000        127,588   

Ecolab, Inc.
1.450%, 12/08/17

     70,000        67,990   

4.875%, 02/15/15

     150,000        159,116   

EI du Pont de Nemours & Co.
2.750%, 04/01/16

     60,000        62,728   

2.800%, 02/15/23

     165,000        157,218   

4.250%, 04/01/21

     201,000        217,111   

6.500%, 01/15/28

     100,000        122,635   

Mosaic Co. (The)
4.875%, 11/15/41

     100,000        95,672   

Chemicals—(Continued)

  

Mosaic Global Holdings, Inc.
7.300%, 01/15/28

     23,000      $ 27,782   

7.375%, 08/01/18

     800,000        946,609   

Potash Corp. of Saskatchewan, Inc.
5.875%, 12/01/36

     400,000        448,722   

PPG Industries, Inc.
3.600%, 11/15/20

     155,000        159,259   

7.700%, 03/15/38

     140,000        184,389   

9.000%, 05/01/21

     100,000        133,644   

Praxair, Inc.
3.000%, 09/01/21

     30,000        29,575   

Praxair, Inc.
4.050%, 03/15/21

     300,000        319,840   

5.375%, 11/01/16

     180,000        204,035   

Union Carbide Corp.
7.500%, 06/01/25

     701,000        820,389   

7.750%, 10/01/96

     100,000        113,287   

7.875%, 04/01/23

     30,000        37,009   
   

 

 

  
      4,484,821   
   

 

 

  

Commercial Services—0.2%

  

ADT Corp. (The)

    

3.500%, 07/15/22

     423,000        388,969   

4.125%, 06/15/23

     27,000        25,432   

4.875%, 07/15/42

     200,000        169,790   

California Institute of Technology

    

4.700%, 11/01/2111

     165,000        152,525   

ERAC USA Finance LLC

    

1.400%, 04/15/16 (144A)

     11,000        10,918   

3.300%, 10/15/22 (144A)

     100,000        94,924   

6.375%, 10/15/17 (144A)

     395,000        458,661   

6.700%, 06/01/34 (144A)

     300,000        338,461   
   

 

 

  
      1,639,680   
   

 

 

  

Computers—0.4%

  

Apple, Inc.

    

3.850%, 05/04/43

     133,000        118,135   

EMC Corp.

    

2.650%, 06/01/20

     594,000        585,553   

Hewlett-Packard Co.

    

3.000%, 09/15/16

     200,000        205,387   

3.750%, 12/01/20

     150,000        145,194   

4.300%, 06/01/21

     250,000        244,444   

HP Enterprise Services LLC

    

7.450%, 10/15/29

     300,000        338,824   

International Business Machines Corp.

    

1.625%, 05/15/20

     105,000        98,293   

5.700%, 09/14/17

     300,000        346,525   

6.220%, 08/01/27

     1,000,000        1,232,498   
   

 

 

  
      3,314,853   
   

 

 

  

Construction Materials—0.0%

  

CRH America, Inc.

    

6.000%, 09/30/16

     150,000        168,917   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-12

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Distribution/Wholesale—0.0%

  

Arrow Electronics, Inc.

    

3.000%, 03/01/18

     26,000      $ 25,963   

6.000%, 04/01/20

     250,000        270,555   
   

 

 

  
      296,518   
   

 

 

  

Diversified Financial Services—1.7%

  

American Express Co.

    

7.000%, 03/19/18

     280,000        336,862   

American Express Credit Corp.

    

1.750%, 06/12/15

     200,000        202,714   

2.750%, 09/15/15

     150,000        155,589   

American Honda Finance Corp.

    

1.500%, 09/11/17 (144A)

     425,000        415,950   

Ameriprise Financial, Inc.

    

5.650%, 11/15/15

     288,000        318,939   

BlackRock, Inc.

    

3.375%, 06/01/22

     100,000        99,973   

6.250%, 09/15/17

     250,000        294,327   

Blackstone Holdings Finance Co. LLC

    

5.875%, 03/15/21 (144A)

     250,000        282,584   

Boeing Capital Corp.

    

4.700%, 10/27/19

     255,000        288,019   

Capital One Bank USA N.A.

    

3.375%, 02/15/23

     300,000        283,576   

Caterpillar Financial Services Corp.

    

1.250%, 11/06/17

     87,000        84,786   

6.200%, 09/30/13

     400,000        405,568   

7.050%, 10/01/18

     155,000        192,014   

CME Group, Inc.

    

3.000%, 09/15/22

     300,000        282,435   

Credit Suisse USA, Inc.

    

5.125%, 08/15/15

     500,000        539,881   

Ford Motor Credit Co. LLC

    

1.700%, 05/09/16

     333,000        327,567   

4.250%, 09/20/22

     415,000        407,889   

General Electric Capital Corp.

    

1.600%, 11/20/17

     350,000        341,665   

1.625%, 07/02/15

     536,000        542,265   

2.100%, 12/11/19

     35,000        34,065   

5.500%, 01/08/20

     1,500,000        1,691,229   

5.625%, 09/15/17

     500,000        566,335   

6.000%, 08/07/19

     1,000,000        1,160,934   

6.750%, 03/15/32

     1,000,000        1,199,025   

HSBC Finance Corp.

    

0.527%, 01/15/14 (b)

     300,000        299,713   

0.705%, 06/01/16 (b)

     100,000        99,142   

Jefferies Group Inc.

    

5.125%, 04/13/18

     75,000        78,375   

Jefferies Group LLC

    

6.500%, 01/20/43

     42,000        40,212   

8.500%, 07/15/19

     375,000        451,875   

John Deere Capital Corp.

    

0.950%, 06/29/15

     44,000        44,224   

1.200%, 10/10/17

     59,000        57,402   

1.700%, 01/15/20

     43,000        40,668   

Diversified Financial Services—(Continued)

  

John Deere Capital Corp.

    

2.250%, 04/17/19

     75,000      $ 74,907   

2.800%, 01/27/23

     122,000        115,696   

MassMutual Global Funding II

    

2.000%, 04/05/17 (144A)

     250,000        250,514   

Merrill Lynch & Co., Inc.

    

6.400%, 08/28/17

     100,000        112,916   

National Rural Utilities Cooperative Finance Corp.

    

0.523%, 05/27/16 (b)

     500,000        498,705   

8.000%, 03/01/32

     400,000        554,313   

10.375%, 11/01/18

     40,000        55,419   

PACCAR Financial Corp.

    

0.800%, 02/08/16

     217,000        215,093   

1.050%, 06/05/15

     80,000        80,546   

1.600%, 03/15/17

     150,000        148,596   

Toyota Motor Credit Corp.

    

0.443%, 12/05/14 (b)

     458,000        458,159   

1.250%, 10/05/17

     200,000        194,207   

2.050%, 01/12/17

     300,000        303,447   

2.625%, 01/10/23

     400,000        371,616   

4.250%, 01/11/21

     150,000        161,273   
   

 

 

  
      15,161,209   
   

 

 

  

Electric—1.8%

    

Alabama Power Co.

    

5.500%, 10/15/17

     147,000        167,933   

5.700%, 02/15/33

     150,000        172,494   

American Electric Power Co., Inc.

    

1.650%, 12/15/17

     119,000        115,683   

Appalachian Power Co.

    

3.400%, 05/24/15

     75,000        78,275   

5.800%, 10/01/35

     150,000        164,132   

Arizona Public Service Co.

    

8.750%, 03/01/19

     65,000        84,469   

Atlantic City Electric Co.

    

7.750%, 11/15/18

     135,000        171,451   

Baltimore Gas & Electric Co.

    

2.800%, 08/15/22

     143,000        135,475   

CenterPoint Energy Houston Electric LLC

    

5.600%, 07/01/23

     381,000        429,870   

6.950%, 03/15/33

     100,000        131,981   

Cleveland Electric Illuminating Co. (The)

    

5.500%, 08/15/24

     187,000        209,676   

7.880%, 11/01/17

     315,000        380,310   

Commonwealth Edison Co.

    

5.875%, 02/01/33

     150,000        178,018   

6.450%, 01/15/38

     175,000        218,213   

Connecticut Light & Power Co. (The)

    

5.500%, 02/01/19

     250,000        290,758   

Consolidated Edison Co. of New York, Inc.

    

3.950%, 03/01/43

     300,000        271,428   

Consumers Energy Co.

    

3.950%, 05/15/43

     200,000        183,958   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-13

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electric—(Continued)

    

Detroit Edison Co. (The)

    

5.450%, 02/15/35

     30,000      $ 32,872   

Dominion Resources, Inc.

    

5.150%, 07/15/15

     150,000        162,206   

5.250%, 08/01/33

     400,000        434,539   

8.875%, 01/15/19

     200,000        261,247   

DTE Electric Co.

    

5.700%, 10/01/37

     250,000        292,467   

Duke Energy Carolinas LLC

    

4.300%, 06/15/20

     408,000        444,030   

6.000%, 12/01/28

     200,000        223,405   

6.000%, 01/15/38

     60,000        70,439   

Duke Energy Corp.

    

6.250%, 06/15/18

     375,000        438,323   

Duke Energy Progress, Inc.

    

6.125%, 09/15/33

     500,000        582,392   

Entergy Arkansas, Inc.

    

3.050%, 06/01/23

     51,000        48,644   

Florida Power & Light Co.

    

4.950%, 06/01/35

     300,000        325,828   

Indiana Michigan Power Co.

    

3.200%, 03/15/23

     250,000        236,975   

Jersey Central Power & Light Co.

    

6.150%, 06/01/37

     100,000        112,363   

Kansas City Power & Light Co.

    

3.150%, 03/15/23

     100,000        94,934   

6.375%, 03/01/18

     150,000        172,830   

7.150%, 04/01/19

     250,000        305,647   

Nevada Power Co.

    

5.875%, 01/15/15

     700,000        750,212   

6.500%, 08/01/18

     425,000        509,790   

6.650%, 04/01/36

     150,000        188,456   

NextEra Energy Capital Holdings, Inc.

    

1.200%, 06/01/15

     49,000        49,248   

7.875%, 12/15/15

     100,000        115,956   

Nisource Finance Corp.

    

5.250%, 09/15/17

     447,000        497,353   

5.450%, 09/15/20

     75,000        83,636   

6.250%, 12/15/40

     75,000        82,952   

6.800%, 01/15/19

     30,000        35,499   

Northeast Utilities

    

1.022%, 09/20/13 (b)

     95,000        95,132   

Pacific Gas & Electric Co.

    

2.450%, 08/15/22

     91,000        84,079   

3.250%, 06/15/23

     300,000        293,783   

5.800%, 03/01/37

     255,000        289,362   

PacifiCorp

    

5.500%, 01/15/19

     65,000        75,519   

5.900%, 08/15/34

     15,000        17,533   

6.100%, 08/01/36

     116,000        138,960   

6.250%, 10/15/37

     260,000        316,378   

7.700%, 11/15/31

     40,000        54,730   

Peco Energy Co.

    

2.375%, 09/15/22

     250,000        231,618   

5.350%, 03/01/18

     530,000        608,306   

Electric—(Continued)

    

PG&E Corp.

    

5.750%, 04/01/14

     230,000      $ 238,508   

PPL Electric Utilities Corp.

    

2.500%, 09/01/22

     86,000        80,543   

6.450%, 08/15/37

     150,000        189,222   

Progress Energy, Inc.

    

7.000%, 10/30/31

     325,000        394,117   

PSEG Power LLC

    

4.150%, 09/15/21

     110,000        113,247   

5.320%, 09/15/16

     45,000        49,911   

5.500%, 12/01/15

     428,000        470,935   

Public Service Co. of Colorado

    

2.250%, 09/15/22

     47,000        43,187   

3.950%, 03/15/43

     200,000        184,001   

5.125%, 06/01/19

     150,000        173,268   

5.800%, 08/01/18

     130,000        153,650   

Public Service Co. of New Hampshire

    

6.000%, 05/01/18

     410,000        462,665   

Public Service Co. of Oklahoma

    

5.150%, 12/01/19

     50,000        56,654   

Public Service Electric & Gas Co.

    

3.650%, 09/01/42

     56,000        49,244   

San Diego Gas & Electric Co.

    

5.350%, 05/15/35

     100,000        114,519   

6.000%, 06/01/26

     100,000        122,993   

Southern California Edison Co.

    

0.723%, 09/15/14 (b)

     104,000        104,464   

4.650%, 04/01/15

     150,000        160,547   

Southern Power Co.

    

4.875%, 07/15/15

     319,000        341,862   

TECO Finance, Inc.

    

6.572%, 11/01/17

     150,000        174,816   

Toledo Edison Co. (The)

    

6.150%, 05/15/37

     250,000        286,469   

7.250%, 05/01/20

     79,000        97,778   

Virginia Electric and Power Co.

    

1.200%, 01/15/18

     33,000        31,983   

Xcel Energy, Inc.

    

0.750%, 05/09/16

     95,000        93,558   
   

 

 

  
      16,329,908   
   

 

 

  

Electrical Components & Equipment—0.1%

  

  

Emerson Electric Co.

    

5.250%, 10/15/18

     375,000        431,082   

6.000%, 08/15/32

     70,000        84,200   
   

 

 

  
      515,282   
   

 

 

  

Electronics—0.0%

    

Honeywell International, Inc.
5.300%, 03/15/17

     105,000        118,365   

Koninklijke Philips NV

    

3.750%, 03/15/22

     100,000        100,304   

6.875%, 03/11/38

     100,000        124,969   
   

 

 

  
      343,638   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-14

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Engineering & Construction—0.0%

    

ABB Finance USA, Inc.

    

1.625%, 05/08/17

     165,000      $ 163,914   

2.875%, 05/08/22

     100,000        95,806   

Fluor Corp.

    

3.375%, 09/15/21

     105,000        104,600   
   

 

 

  
      364,320   
   

 

 

  

Environmental Control—0.2%

    

Republic Services, Inc.

    

5.500%, 09/15/19

     600,000        679,087   

6.086%, 03/15/35

     230,000        253,850   

Waste Management, Inc.

    

2.900%, 09/15/22

     354,000        325,336   

7.125%, 12/15/17

     179,000        210,662   

7.375%, 03/11/19

     100,000        120,611   

7.375%, 05/15/29

     450,000        557,776   
   

 

 

  
      2,147,322   
   

 

 

  

Food—0.4%

    

ConAgra Foods, Inc.

    

2.100%, 03/15/18

     21,000        20,802   

3.200%, 01/25/23

     200,000        191,254   

6.625%, 08/15/39 (144A)

     125,000        145,378   

7.000%, 04/15/19

     200,000        241,199   

7.125%, 10/01/26

     40,000        48,600   

General Mills, Inc.

    

3.150%, 12/15/21

     244,000        243,670   

5.700%, 02/15/17

     500,000        566,231   

Kellogg Co.

    

4.000%, 12/15/20

     100,000        105,276   

7.450%, 04/01/31

     150,000        193,571   

Kraft Foods Group, Inc.

    

6.125%, 08/23/18

     500,000        587,074   

6.875%, 01/26/39

     300,000        363,945   

Kroger Co. (The)

    

6.400%, 08/15/17

     100,000        115,406   

7.700%, 06/01/29

     110,000        138,723   

Mondelez International, Inc.

    

6.500%, 08/11/17

     250,000        290,662   

6.500%, 11/01/31

     465,000        540,242   
   

 

 

  
      3,792,033   
   

 

 

  

Gas—0.3%

    

AGL Capital Corp.

    

5.875%, 03/15/41

     147,000        167,439   

6.000%, 10/01/34

     250,000        290,872   

6.375%, 07/15/16

     150,000        171,439   

Atmos Energy Corp.

    

6.350%, 06/15/17

     355,000        413,621   

8.500%, 03/15/19

     350,000        457,580   

Sempra Energy

    

1.033%, 03/15/14 (b)

     600,000        601,972   

6.500%, 06/01/16

     350,000        401,342   

9.800%, 02/15/19

     267,000        359,982   
   

 

 

  
      2,864,247   
   

 

 

  

Healthcare-Products—0.3%

    

Baxter International, Inc.

    

1.850%, 06/15/18

     57,000      $ 56,538   

2.400%, 08/15/22

     112,000        103,463   

4.500%, 08/15/19

     125,000        138,328   

Covidien International Finance S.A.

    

2.950%, 06/15/23

     300,000        283,599   

6.000%, 10/15/17

     200,000        231,761   

CR Bard, Inc.
1.375%, 01/15/18

     250,000        242,913   

DENTSPLY International, Inc.

    

1.775%, 08/15/13 (b)

     200,000        200,262   

Hospira, Inc.

    

6.050%, 03/30/17

     150,000        160,509   

6.400%, 05/15/15

     635,000        672,191   

Medtronic, Inc.

    

4.500%, 03/15/14

     150,000        154,045   
   

 

 

  
      2,243,609   
   

 

 

  

Healthcare-Services—0.4%

    

Aetna, Inc.

    

3.950%, 09/01/20

     416,000        428,065   

Kaiser Foundation Hospitals

    

3.500%, 04/01/22

     375,000        370,855   

Quest Diagnostics, Inc.

    

1.123%, 03/24/14 (b)

     180,000        180,691   

3.200%, 04/01/16

     50,000        51,873   

6.400%, 07/01/17

     150,000        169,651   

6.950%, 07/01/37

     25,000        29,179   

UnitedHealth Group, Inc.

    

2.750%, 02/15/23

     46,000        42,815   

2.875%, 03/15/23

     300,000        281,884   

4.700%, 02/15/21

     100,000        109,511   

5.375%, 03/15/16

     77,000        85,288   

5.800%, 03/15/36

     225,000        252,635   

6.625%, 11/15/37

     175,000        212,896   

WellPoint, Inc.

    

3.125%, 05/15/22

     100,000        94,824   

3.300%, 01/15/23

     35,000        33,318   

5.950%, 12/15/34

     270,000        300,578   

7.000%, 02/15/19

     480,000        576,274   
   

 

 

  
      3,220,337   
   

 

 

  

Holding Companies-Diversified—0.1%

    

EADS Finance B.V.

    

2.700%, 04/17/23 (144A)

     279,000        258,519   

Hutchison Whampoa International 12 II, Ltd.

    

2.000%, 11/08/17 (144A)

     200,000        194,189   
   

 

 

  
      452,708   
   

 

 

  

Household Products—0.1%

    

Procter & Gamble Co. (The)

    

5.500%, 02/01/34

     117,000        135,219   

5.800%, 08/15/34

     200,000        239,879   

8.000%, 10/26/29

     160,000        218,624   
   

 

 

  
      593,722   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-15

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Household Products/Wares—0.1%

  

Kimberly-Clark Corp.

    

2.400%, 06/01/23

     350,000      $ 326,422   

3.625%, 08/01/20

     45,000        47,137   

6.125%, 08/01/17

     98,000        114,664   
   

 

 

  
      488,223   
   

 

 

  

Insurance—1.0%

  

ACE INA Holdings, Inc.

    

2.600%, 11/23/15

     50,000        51,893   

2.700%, 03/13/23

     200,000        186,650   

5.700%, 02/15/17

     177,000        199,784   

5.800%, 03/15/18

     336,000        391,308   

5.875%, 06/15/14

     15,000        15,710   

5.900%, 06/15/19

     81,000        96,519   

Aflac, Inc.

    

3.450%, 08/15/15

     300,000        315,404   

8.500%, 05/15/19

     150,000        191,721   

AIG SunAmerica Global Financing X

    

6.900%, 03/15/32 (144A)

     1,110,000        1,355,426   

Allstate Corp. (The)

    

3.150%, 06/15/23

     173,000        167,970   

Aon Corp.

    

3.125%, 05/27/16

     100,000        104,320   

3.500%, 09/30/15

     155,000        162,535   

5.000%, 09/30/20

     200,000        219,325   

Berkshire Hathaway Finance Corp.

    

1.300%, 05/15/18

     129,000        124,758   

3.000%, 05/15/22

     400,000        386,988   

Berkshire Hathaway, Inc.

    

1.900%, 01/31/17

     200,000        202,127   

CNA Financial Corp.

    

7.250%, 11/15/23

     153,000        182,516   

7.350%, 11/15/19

     50,000        60,541   

Liberty Mutual Group, Inc.

    

5.000%, 06/01/21 (144A)

     220,000        232,065   

Lincoln National Corp.

    

6.250%, 02/15/20

     375,000        429,981   

Massachusetts Mutual Life Insurance Co.

    

8.875%, 06/01/39 (144A)

     401,000        587,664   

Nationwide Mutual Insurance Co.

    

7.875%, 04/01/33 (144A)

     200,000        242,570   

8.250%, 12/01/31 (144A)

     135,000        168,268   

9.375%, 08/15/39 (144A)

     138,000        186,726   

New York Life Global Funding

    

2.450%, 07/14/16 (144A)

     150,000        155,408   

New York Life Insurance Co.

    

5.875%, 05/15/33 (144A)

     100,000        112,874   

Pacific Life Insurance Co.

    

9.250%, 06/15/39 (144A)

     200,000        265,799   

Pricoa Global Funding I

    

1.600%, 05/29/18 (144A)

     192,000        185,167   

Principal Financial Group, Inc.

    

6.050%, 10/15/36

     100,000        116,056   

Principal Life Global Funding II

    

0.643%, 05/27/16 (144A) (b)

     500,000        498,278   

Insurance—(Continued)

  

Prudential Insurance Co. of America (The)

    

8.300%, 07/01/25 (144A)

     800,000      $ 1,033,614   

Travelers Cos., Inc. (The)

    

3.900%, 11/01/20

     25,000        26,761   

6.750%, 06/20/36

     175,000        220,826   

Travelers Property Casualty Corp.

    

6.375%, 03/15/33

     100,000        122,280   
   

 

 

  
      8,999,832   
   

 

 

  

Internet—0.1%

  

eBay, Inc.

    

2.600%, 07/15/22

     37,000        34,472   

3.250%, 10/15/20

     408,000        415,767   
   

 

 

  
      450,239   
   

 

 

  

Iron/Steel—0.1%

  

Nucor Corp.

    

5.750%, 12/01/17

     550,000        630,079   
   

 

 

  

Machinery-Construction & Mining—0.1%

  

Caterpillar, Inc.

    

1.500%, 06/26/17

     69,000        68,306   

2.600%, 06/26/22

     31,000        29,609   

5.300%, 09/15/35

     400,000        435,322   

7.300%, 05/01/31

     384,000        514,423   
   

 

 

  
      1,047,660   
   

 

 

  

Machinery-Diversified—0.0%

  

Deere & Co.

    

8.100%, 05/15/30

     61,000        86,331   
   

 

 

  

Media—1.3%

  

CBS Corp.

    

7.875%, 09/01/23

     100,000        123,777   

7.875%, 07/30/30

     175,000        222,973   

8.875%, 05/15/19

     547,000        704,943   

Comcast Corp.

    

4.250%, 01/15/33

     303,000        289,913   

5.875%, 02/15/18

     100,000        116,752   

6.500%, 11/15/35

     185,000        223,878   

7.050%, 03/15/33

     187,000        233,394   

COX Communications, Inc.
6.450%, 12/01/36 (144A)

     255,000        286,045   

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
1.750%, 01/15/18

     141,000        136,125   

2.400%, 03/15/17

     120,000        120,580   

3.500%, 03/01/16

     80,000        84,041   

4.600%, 02/15/21

     100,000        103,714   

5.000%, 03/01/21

     225,000        237,003   

5.200%, 03/15/20

     100,000        107,972   

5.875%, 10/01/19

     200,000        225,079   

Discovery Communications LLC
5.050%, 06/01/20

     375,000        416,025   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-16

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—(Continued)

  

Grupo Televisa S.A.B.
8.500%, 03/11/32

     100,000      $ 125,527   

Historic TW, Inc.
6.875%, 06/15/18

     100,000        120,236   

NBCUniversal Media LLC
2.875%, 01/15/23

     450,000        427,427   

News America, Inc.
7.125%, 04/08/28

     220,000        253,418   

7.250%, 05/18/18

     265,000        323,341   

7.300%, 04/30/28

     218,000        255,014   

7.625%, 11/30/28

     100,000        121,903   

TCI Communications, Inc.
7.875%, 02/15/26

     996,000        1,318,191   

Thomson Reuters Corp.
3.950%, 09/30/21

     500,000        513,865   

5.700%, 10/01/14

     100,000        105,742   

Time Warner Cable, Inc.
6.750%, 07/01/18

     660,000        755,472   

Time Warner Entertainment Co. L.P.
8.375%, 03/15/23

     265,000        330,078   

8.375%, 07/15/33

     250,000        294,655   

Time Warner, Inc.
4.750%, 03/29/21

     500,000        537,874   

6.500%, 11/15/36

     250,000        282,746   

7.625%, 04/15/31

     350,000        441,194   

Viacom, Inc.
3.250%, 03/15/23

     44,000        41,440   

6.125%, 10/05/17

     400,000        460,572   

6.875%, 04/30/36

     375,000        438,986   

Walt Disney Co. (The)
3.750%, 06/01/21

     673,000        701,152   
   

 

 

  
      11,481,047   
   

 

 

  

Metal Fabricate/Hardware—0.0%

    

Precision Castparts Corp.
2.500%, 01/15/23

     300,000        280,076   
   

 

 

  

Mining—0.5%

    

Barrick Gold Corp.
3.850%, 04/01/22

     100,000        84,142   

Barrick Gold Finance Co.
4.875%, 11/15/14

     250,000        256,881   

BHP Billiton Finance USA, Ltd.
2.875%, 02/24/22

     400,000        379,811   

5.400%, 03/29/17

     450,000        507,393   

Freeport-McMoRan Copper & Gold, Inc.
2.375%, 03/15/18 (144A)

     73,000        69,429   

3.100%, 03/15/20 (144A)

     482,000        445,519   

3.875%, 03/15/23 (144A)

     500,000        452,546   

Rio Tinto Finance USA plc
1.375%, 06/17/16

     250,000        248,495   

2.000%, 03/22/17

     500,000        496,747   

2.875%, 08/21/22

     200,000        183,380   

Rio Tinto Finance USA, Ltd.
7.125%, 07/15/28

     280,000        343,084   

Mining—(Continued)

    

Teck Resources, Ltd.
6.250%, 07/15/41

     590,000      $ 558,946   
   

 

 

  
      4,026,373   
   

 

 

  

Miscellaneous Manufacturing—0.3%

    

Cooper US, Inc.
5.450%, 04/01/15

     250,000        268,544   

Eaton Corp.
0.603%, 06/16/14 (b)

     330,000        330,169   

1.500%, 11/02/17 (144A)

     68,000        66,009   

General Electric Co.
2.700%, 10/09/22

     148,000        140,066   

Honeywell, Inc.
6.625%, 06/15/28

     250,000        300,711   

Illinois Tool Works, Inc.
3.900%, 09/01/42

     200,000        178,312   

6.250%, 04/01/19

     172,000        205,974   

Ingersoll-Rand Global Holding Co., Ltd.
4.250%, 06/15/23 (144A)

     135,000        134,152   

6.875%, 08/15/18

     272,000        322,168   

Parker Hannifin Corp.
6.550%, 07/15/18

     500,000        595,922   

Siemens Financieringsmaatschappij NV
5.750%, 10/17/16 (144A)

     230,000        262,777   

Tyco International Finance S.A.
8.500%, 01/15/19

     142,000        177,736   
   

 

 

  
      2,982,540   
   

 

 

  

Office/Business Equipment—0.0%

    

Xerox Corp.
1.094%, 05/16/14 (b)

     135,000        134,904   

6.750%, 02/01/17

     100,000        113,128   
   

 

 

  
      248,032   
   

 

 

  

Oil & Gas—1.6%

    

Anadarko Petroleum Corp.
6.375%, 09/15/17

     540,000        620,989   

Apache Corp.
2.625%, 01/15/23

     115,000        106,034   

3.625%, 02/01/21

     750,000        769,848   

6.000%, 01/15/37

     150,000        168,885   

BP Capital Markets plc
0.875%, 03/11/14 (b)

     72,000        72,214   

1.375%, 11/06/17

     40,000        38,944   

4.500%, 10/01/20

     600,000        650,933   

4.750%, 03/10/19

     575,000        638,564   

Burlington Resources Finance Co.
7.400%, 12/01/31

     300,000        399,630   

Canadian Natural Resources, Ltd.
7.200%, 01/15/32

     200,000        240,849   

Cenovus Energy, Inc.
3.000%, 08/15/22

     50,000        47,579   

5.700%, 10/15/19

     325,000        369,657   

Chevron Corp.

    

1.104%, 12/05/17

     149,000        145,590   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-17

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

    

Chevron Corp.

    

2.427%, 06/24/20

     176,000      $ 174,997   

CNOOC Finance 2013, Ltd.
1.750%, 05/09/18

     600,000        573,909   

ConocoPhillips Holding Co.
6.950%, 04/15/29

     225,000        286,583   

Devon Energy Corp.
2.400%, 07/15/16

     500,000        512,294   

7.950%, 04/15/32

     235,000        307,578   

EOG Resources, Inc.
2.625%, 03/15/23

     73,000        68,309   

5.875%, 09/15/17

     50,000        58,089   

6.875%, 10/01/18

     120,000        147,220   

Hess Corp.
7.875%, 10/01/29

     175,000        218,657   

Kerr-McGee Corp.
7.875%, 09/15/31

     425,000        530,645   

Marathon Oil Corp.
6.000%, 10/01/17

     400,000        458,065   

6.800%, 03/15/32

     30,000        35,545   

Nabors Industries, Inc.
5.000%, 09/15/20

     225,000        229,367   

9.250%, 01/15/19

     175,000        217,127   

Nexen, Inc.
5.875%, 03/10/35

     270,000        282,112   

Occidental Petroleum Corp.
8.450%, 02/15/29

     135,000        183,506   

Petro-Canada
5.350%, 07/15/33

     165,000        166,883   

Petrobras Global Finance B.V.
4.375%, 05/20/23

     84,000        77,057   

Petrobras International Finance Co.
6.750%, 01/27/41

     330,000        329,690   

Phillips 66
1.950%, 03/05/15

     150,000        152,326   

Shell International Finance B.V.
2.375%, 08/21/22

     440,000        411,165   

3.625%, 08/21/42

     25,000        22,071   

5.200%, 03/22/17

     500,000        563,716   

Statoil ASA
1.200%, 01/17/18

     25,000        24,314   

5.100%, 08/17/40

     100,000        106,298   

7.250%, 09/23/27

     205,000        269,907   

Suncor Energy, Inc.
5.950%, 12/01/34

     100,000        107,229   

6.100%, 06/01/18

     600,000        699,450   

7.150%, 02/01/32

     100,000        121,731   

Talisman Energy, Inc.
5.850%, 02/01/37

     100,000        102,096   

7.750%, 06/01/19

     350,000        425,401   

Tosco Corp.
8.125%, 02/15/30

     526,000        728,602   

Total Capital Canada, Ltd.
0.658%, 01/17/14 (b)

     26,000        26,056   

2.750%, 07/15/23

     179,000        167,360   

Oil & Gas—(Continued)

    

Total Capital International S.A.
1.550%, 06/28/17

     38,000      $ 37,661   

2.700%, 01/25/23

     200,000        187,118   

Total Capital S.A.
4.250%, 12/15/21

     150,000        160,469   

4.450%, 06/24/20

     190,000        207,138   

Transocean, Inc.

    

3.800%, 10/15/22

     33,000        31,434   

6.500%, 11/15/20

     75,000        84,421   

7.375%, 04/15/18

     75,000        85,940   

7.500%, 04/15/31

     55,000        61,131   
   

 

 

  
      13,910,383   
   

 

 

  

Oil & Gas Services—0.3%

    

Baker Hughes, Inc.
6.875%, 01/15/29

     153,000        194,346   

Cameron International Corp.
1.205%, 06/02/14 (b)

     155,000        155,686   

6.375%, 07/15/18

     80,000        93,820   

Halliburton Co.
6.700%, 09/15/38

     350,000        441,946   

National Oilwell Varco, Inc.
1.350%, 12/01/17

     29,000        28,253   

2.600%, 12/01/22

     200,000        187,538   

Schlumberger Investment S.A.
1.250%, 08/01/17 (144A)

     643,000        623,891   

Weatherford International, Inc.
6.800%, 06/15/37

     100,000        104,774   

Weatherford International, Ltd.
5.125%, 09/15/20

     100,000        104,815   

6.000%, 03/15/18

     200,000        224,592   

6.750%, 09/15/40

     100,000        103,457   
   

 

 

  
      2,263,118   
   

 

 

  

Pharmaceuticals—1.1%

    

Abbott Laboratories
5.125%, 04/01/19

     158,000        181,769   

AbbVie, Inc.
1.750%, 11/06/17 (144A)

     649,000        635,836   

2.900%, 11/06/22 (144A)

     500,000        467,571   

Allergan, Inc.
5.750%, 04/01/16

     80,000        89,833   

AstraZeneca plc
6.450%, 09/15/37

     110,000        135,133   

Bristol-Myers Squibb Co.
6.875%, 08/01/97

     100,000        130,137   

Cardinal Health, Inc.
4.000%, 06/15/15

     200,000        211,190   

Express Scripts Holding Co.
3.125%, 05/15/16

     95,000        98,786   

6.125%, 11/15/41

     295,000        340,693   

7.250%, 06/15/19

     135,000        166,607   

GlaxoSmithKline Capital plc
2.850%, 05/08/22

     500,000        479,934   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-18

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pharmaceuticals—(Continued)

    

GlaxoSmithKline Capital, Inc.
2.800%, 03/18/23

     143,000      $ 136,086   

5.375%, 04/15/34

     300,000        328,041   

Johnson & Johnson
6.950%, 09/01/29

     700,000        927,387   

McKesson Corp.
0.950%, 12/04/15

     34,000        33,909   

Mead Johnson Nutrition Co.
4.900%, 11/01/19

     135,000        148,187   

5.900%, 11/01/39

     100,000        109,861   

Medco Health Solutions, Inc.
4.125%, 09/15/20

     450,000        462,883   

Merck & Co., Inc.
2.400%, 09/15/22

     62,000        57,423   

6.300%, 01/01/26

     112,000        137,906   

6.550%, 09/15/37

     308,000        395,795   

Merck Sharp & Dohme Corp.
5.950%, 12/01/28

     500,000        596,110   

Mylan, Inc.
1.800%, 06/24/16 (144A)

     230,000        229,375   

Novartis Capital Corp.
2.400%, 09/21/22

     300,000        281,926   

Novartis Securities Investment, Ltd.
5.125%, 02/10/19

     200,000        230,188   

Pfizer, Inc.
0.575%, 06/15/18 (b)

     300,000        300,882   

Sanofi
2.625%, 03/29/16

     419,000        436,255   

Teva Pharmaceutical Finance Co. B.V.
3.650%, 11/10/21

     465,000        465,043   

Teva Pharmaceutical Finance III B.V.
0.772%, 03/21/14 (b)

     95,000        95,177   

Teva Pharmaceutical Finance IV LLC
2.250%, 03/18/20

     98,000        93,745   

Watson Pharmaceuticals, Inc.
1.875%, 10/01/17

     300,000        292,458   

Wyeth LLC
5.500%, 02/15/16

     100,000        111,498   

6.500%, 02/01/34

     806,000        1,009,902   

Zoetis, Inc.
1.875%, 02/01/18 (144A)

     52,000        50,906   

4.700%, 02/01/43 (144A)

     43,000        40,156   
   

 

 

  
      9,908,588   
   

 

 

  

Pipelines—0.5%

    

Enterprise Products Operating LLC
5.250%, 01/31/20

     500,000        558,814   

6.125%, 10/15/39

     400,000        444,832   

6.875%, 03/01/33

     162,000        192,757   

Magellan Midstream Partners L.P.
6.550%, 07/15/19

     595,000        707,440   

Spectra Energy Capital LLC
3.300%, 03/15/23

     237,000        213,818   

6.750%, 07/15/18

     185,000        217,726   

7.500%, 09/15/38

     85,000        106,160   

Pipelines—(Continued)

    

Texas Eastern Transmission L.P.
2.800%, 10/15/22 (144A)

     46,000      $ 42,777   

6.000%, 09/15/17 (144A)

     150,000        170,849   

TransCanada PipeLines, Ltd.
0.750%, 01/15/16

     500,000        494,349   

0.952%, 06/30/16 (b)

     300,000        300,000   

2.500%, 08/01/22

     75,000        69,164   

5.850%, 03/15/36

     176,000        200,652   

7.125%, 01/15/19

     142,000        173,174   

7.250%, 08/15/38

     300,000        390,387   
   

 

 

  
      4,282,899   
   

 

 

  

Real Estate—0.0%

    

WCI Finance LLC / WEA Finance LLC
5.700%, 10/01/16 (144A)

     175,000        195,563   
   

 

 

  

Real Estate Investment Trusts—0.5%

    

Boston Properties L.P.

    

3.800%,02/01/24

     227,000        222,947   

5.625%,11/15/20

     300,000        340,480   

5.875%,10/15/19

     100,000        115,341   

CommonWealth REIT
5.875%,09/15/20

     225,000        232,936   

Duke Realty L.P.
6.750%,03/15/20

     125,000        143,451   

7.375%,02/15/15

     175,000        190,996   

8.250%,08/15/19

     145,000        180,696   

ERP Operating L.P.
4.625%,12/15/21

     100,000        105,925   

4.750%,07/15/20

     190,000        204,348   

5.750%,06/15/17

     600,000        678,646   

HCP, Inc.
3.750%,02/01/19

     100,000        102,613   

5.375%,02/01/21

     100,000        108,474   

5.625%,05/01/17

     345,000        384,207   

ProLogis L.P.
6.625%,05/15/18

     250,000        287,750   

Simon Property Group L.P.
5.650%,02/01/20

     250,000        285,635   

10.350%,04/01/19

     340,000        470,877   
   

 

 

  
      4,055,322   
   

 

 

  

Retail—0.6%

    

CVS Pass-Through Trust
5.880%,01/10/28

     43,660        48,820   

Gap, Inc. (The)
5.950%,04/12/21

     212,000        234,478   

Home Depot, Inc. (The)
5.400%,09/15/40

     200,000        223,103   

5.875%,12/16/36

     100,000        117,584   

Kohl’s Corp.
6.000%,01/15/33

     84,000        84,993   

Lowe’s Cos., Inc.
5.500%,10/15/35

     275,000        296,926   

5.800%,10/15/36

     150,000        168,455   

6.500%,03/15/29

     125,000        148,895   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-19

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Retail—(Continued)

    

Macy’s Retail Holdings, Inc.
6.700%,09/15/28

     135,000      $ 146,888   

6.900%,04/01/29

     113,000        132,036   

7.000%,02/15/28

     150,000        177,083   

McDonald’s Corp.
4.875%,07/15/40

     340,000        362,195   

6.300%,10/15/37

     325,000        406,546   

Nordstrom, Inc.
6.950%,03/15/28

     60,000        74,585   

Target Corp.
6.350%,11/01/32

     250,000        308,273   

6.650%,08/01/28

     182,000        219,619   

6.750%,01/01/28

     66,000        80,747   

Wal-Mart Stores, Inc.
1.125%,04/11/18

     135,000        131,015   

3.250%,10/25/20

     800,000        826,940   

4.125%,02/01/19

     250,000        275,644   

5.250%,09/01/35

     480,000        521,144   

5.875%,04/05/27

     90,000        109,227   

6.750%,10/15/23

     111,000        140,731   

Walgreen Co.
3.100%,09/15/22

     94,000        89,081   
   

 

 

  
      5,325,008   
   

 

 

  

Semiconductors—0.1%

  

Intel Corp.
1.350%, 12/15/17

     88,000        86,119   

3.300%, 10/01/21

     740,000        742,727   

National Semiconductor Corp.
6.600%, 06/15/17

     170,000        199,750   

Texas Instruments, Inc.
1.650%, 08/03/19

     110,000        105,763   
   

 

 

  
      1,134,359   
   

 

 

  

Software—0.3%

  

Intuit, Inc.
5.750%, 03/15/17

     431,000        478,858   

Microsoft Corp.
0.875%, 11/15/17

     65,000        63,120   

5.200%, 06/01/39

     500,000        551,817   

Oracle Corp.
1.200%, 10/15/17

     164,000        159,280   

2.500%, 10/15/22

     1,379,000        1,271,684   

5.000%, 07/08/19

     200,000        228,685   

6.125%, 07/08/39

     70,000        84,323   
   

 

 

  
      2,837,767   
   

 

 

  

Telecommunications—1.5%

  

America Movil S.A.B. de C.V.
5.000%, 10/16/19

     100,000        108,319   

5.625%, 11/15/17

     125,000        141,267   

6.375%, 03/01/35

     600,000        666,982   

AT&T, Inc.
0.660%, 02/12/16 (b)

     750,000        745,863   

Telecommunications—(Continued)

  

AT&T, Inc.

    

1.400%, 12/01/17

     300,000      $ 291,658   

1.700%, 06/01/17

     500,000        495,076   

4.300%, 12/15/42

     308,000        268,234   

BellSouth Capital Funding Corp.
7.875%, 02/15/30

     550,000        681,607   

BellSouth Corp.
6.000%, 11/15/34

     735,000        753,993   

BellSouth Telecommunications, Inc.
6.375%, 06/01/28

     450,000        507,958   

7.000%, 12/01/95

     100,000        109,027   

British Telecommunications plc
2.000%, 06/22/15

     500,000        509,804   

5.950%, 01/15/18

     100,000        115,103   

9.625%, 12/15/30

     75,000        112,908   

Cisco Systems, Inc.
5.900%, 02/15/39

     750,000        889,837   

Deutsche Telekom International Finance B.V.
5.750%, 03/23/16

     100,000        111,167   

8.750%, 06/15/30

     100,000        138,727   

France Telecom S.A.
2.750%, 09/14/16

     500,000        512,422   

8.500%, 03/01/31

     165,000        224,167   

GTE Corp.
6.840%, 04/15/18

     283,000        336,451   

Nippon Telegraph & Telephone Corp.
1.400%, 07/18/17

     500,000        491,609   

Qwest Corp.
6.750%, 12/01/21

     350,000        389,630   

6.875%, 09/15/33

     100,000        96,750   

7.250%, 09/15/25

     133,000        148,712   

Rogers Communications, Inc.
6.800%, 08/15/18

     100,000        120,728   

7.500%, 08/15/38

     100,000        132,261   

8.750%, 05/01/32

     100,000        136,854   

Telefonica Emisiones S.A.U.
3.192%, 04/27/18

     150,000        145,291   

6.421%, 06/20/16

     450,000        494,088   

Verizon Communications, Inc.
0.886%, 03/28/14 (b)

     64,000        64,189   

5.500%, 02/15/18

     100,000        113,878   

5.850%, 09/15/35

     650,000        709,988   

6.900%, 04/15/38

     350,000        430,238   

Verizon Global Funding Corp.
7.750%, 06/15/32

     341,000        435,937   

Verizon Pennsylvania, Inc.
6.000%, 12/01/28

     125,000        131,057   

Vodafone Group plc
1.500%, 02/19/18

     30,000        28,718   

2.500%, 09/26/22

     225,000        199,507   

2.950%, 02/19/23

     550,000        508,452   

5.000%, 09/15/15

     150,000        162,705   

6.250%, 11/30/32

     200,000        221,891   
   

 

 

  
      12,883,053   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-20

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Transportation—0.6%

  

Burlington Northern Santa Fe LLC
3.050%, 09/01/22

     1,120,000      $ 1,080,907   

3.450%, 09/15/21

     510,000        511,469   

5.750%, 03/15/18

     100,000        114,789   

7.950%, 08/15/30

     100,000        132,040   

Canadian National Railway Co.
5.850%, 11/15/17

     190,000        220,155   

6.800%, 07/15/18

     120,000        144,433   

Canadian Pacific Railway Co.
7.250%, 05/15/19

     400,000        490,502   

CSX Corp.
4.100%, 03/15/44

     41,000        35,602   

5.600%, 05/01/17

     150,000        169,074   

7.900%, 05/01/17

     62,000        74,516   

Norfolk Southern Corp.
5.590%, 05/17/25

     100,000        112,803   

5.750%, 04/01/18

     500,000        580,203   

Ryder System, Inc.
2.500%, 03/01/17

     125,000        125,457   

3.600%, 03/01/16

     100,000        105,124   

7.200%, 09/01/15

     100,000        112,228   

Union Pacific Corp.
5.750%, 11/15/17

     150,000        173,183   

6.250%, 05/01/34

     485,000        585,071   

7.125%, 02/01/28

     150,000        190,302   

United Parcel Service of America, Inc.
8.375%, 04/01/20

     75,000        98,808   

8.375%, 04/01/30 (c)

     260,000        364,585   

United Parcel Service, Inc.
1.125%, 10/01/17

     32,000        31,310   

2.450%, 10/01/22

     14,000        13,199   
   

 

 

  
      5,465,760   
   

 

 

  

Trucking & Leasing—0.1%

  

Penske Truck Leasing Co. L.P. / PTL Finance Corp.
2.500%, 03/15/16 (144A)

     325,000        330,583   

2.875%, 07/17/18 (144A)

     93,000        93,925   

3.125%, 05/11/15 (144A)

     110,000        113,663   
   

 

 

  
      538,171   
   

 

 

  

Water—0.1%

  

American Water Capital Corp.
6.085%, 10/15/17

     450,000        519,028   

6.593%, 10/15/37

     100,000        124,421   
   

 

 

  
      643,449   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $212,013,463)

       203,975,524   
   

 

 

  
Convertible Bonds—16.9%   

Advertising—0.0%

  

Publicis Groupe S.A.
1.000%, 01/18/18 (EUR)

     280,000        210,477   
   

 

 

  
Security Description   Principal
Amount*		     Value  

Airlines—0.4%

  

Air France-KLM
2.030%, 02/15/23 (EUR)

     26,522,500      $ 3,387,051   
   

 

 

  

Apparel—0.2%

  

Adidas AG
0.250%, 06/14/19 (EUR)

     1,000,000        1,591,266   
   

 

 

  

Auto Manufacturers—0.3%

  

Volkswagen International Finance NV
5.500%, 11/09/15 (144A) (EUR)

     2,300,000        3,067,501   
   

 

 

  

Banks—0.7%

  

Bank of Kyoto, Ltd. (The)
Zero Coupon, 03/31/14 (JPY)

     141,000,000        1,478,524   

BNP Paribas S.A.
0.250%, 09/21/15 (EUR)

     1,600,000        2,189,479   

0.250%, 09/27/16 (EUR)

     1,700,000        2,329,861   
   

 

 

  
      5,997,864   
   

 

 

  

Beverages—0.2%

  

Asahi Group Holdings, Ltd.
Zero Coupon, 05/26/28 (JPY)

     50,000,000        635,587   

Molson Coors Brewing Co.
2.500%, 07/30/13

     1,448,000        1,462,480   
   

 

 

  
      2,098,067   
   

 

 

  

Biotechnology—0.1%

  

Gilead Sciences, Inc.
1.000%, 05/01/14

     2,000        4,538   

Illumina, Inc.
0.250%, 03/15/16 (144A)

     660,000        713,625   
   

 

 

  
      718,163   
   

 

 

  

Computers—0.1%

  

Cap Gemini S.A.
3.500%, 01/01/14 (EUR)

     2,692,500        1,338,081   
   

 

 

  

Construction Materials—0.1%

  

Asahi Glass Co., Ltd.
Zero Coupon, 11/14/14 (JPY)

     45,000,000        459,392   
   

 

 

  

Diversified Financial Services—0.5%

  

China Overseas Finance Investment Cayman, Ltd.
Zero Coupon, 05/14/14

     400,000        564,000   

Hong Kong Exchanges and Clearing, Ltd.
0.500%, 10/23/17

     3,000,000        3,071,250   

Zeus Cayman II
Zero Coupon, 08/18/16 (JPY)

     60,000,000        801,875   
   

 

 

  
      4,437,125   
   

 

 

  

Electrical Components & Equipment—0.2%

  

Nidec Corp.
Zero Coupon, 09/18/15 (JPY)

     160,000,000        1,678,968   
   

 

 

  

 

See accompanying notes to consolidated financial statements.

 

MIST-21

§See Note 2 of the notes to consolidated financial statements.

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Convertible Bonds—(Continued)

 

Security Description   Principal
Amount*		     Value  

Food—0.1%

  

Nippon Meat Packers, Inc.
Series 5
Zero Coupon, 03/03/14 (JPY)

     85,000,000      $ 1,031,433   
   

 

 

  

Healthcare-Products—0.2%

  

Qiagen Euro Finance S.A.
3.250%, 05/16/26

     1,300,000        1,565,200   
   

 

 

  

Healthcare-Services—0.5%

  

WellPoint, Inc.
2.750%, 10/15/42 (144A)

     3,338,000        4,155,810   
   

 

 

  

Holding Companies-Diversified—2.2%

  

GBL Verwaltung S.A.
1.250%, 02/07/17 (EUR)

     2,300,000        3,110,851   

Groupe Bruxelles Lambert S.A.
0.125%, 09/21/15 (EUR)

     2,300,000        3,175,517   

Industrivarden AB
1.875%, 02/27/17 (EUR)

     1,600,000        2,250,291   

2.500%, 02/27/15 (EUR)

     850,000        1,359,215   

Sofina S.A.
1.000%, 09/19/16

     1,000,000        987,840   

Solidium OY
0.500%, 09/29/15 (EUR)

     2,500,000        3,306,190   

Wharf Finance 2014, Ltd.
2.300%, 06/07/14 (HKD)

     38,000,000        4,991,265   
   

 

 

  
      19,181,169   
   

 

 

  

Home Builders—0.1%

  

Sekisui House, Ltd.
Zero Coupon, 07/05/16 (JPY)

     30,000,000        447,898   
   

 

 

  

Internet—0.5%

  

priceline.com, Inc.
0.350%, 06/15/20 (144A)

     2,537,000        2,386,366   

1.000%, 03/15/18

     2,052,000        2,385,450   
   

 

 

  
      4,771,816   
   

 

 

  

Investment Company Security—1.8%

  

Ares Capital Corp.
4.750%, 01/15/18 (144A)

     2,972,000        3,102,025   

4.875%, 03/15/17

     1,850,000        1,982,969   

5.750%, 02/01/16

     1,012,000        1,105,610   

Billion Express Investments, Ltd.
0.750%, 10/18/15

     2,600,000        2,623,400   

Prospect Capital Corp.
5.375%, 10/15/17

     2,735,000        2,808,355   

5.750%, 03/15/18 (144A)

     377,000        389,724   

5.875%, 01/15/19 (144A)

     854,000        864,675   

Temasek Financial III Pte, Ltd.
Zero Coupon, 10/24/14 (SGD)

     4,000,000        3,246,390   
   

 

 

  
      16,123,148   
   

 

 

  

Iron/Steel—0.4%

  

Salzgitter Finance B.V.
2.000%, 11/08/17 (EUR)

     2,250,000      $ 3,212,796   
   

 

 

  

Mining—0.9%

  

Glencore Finance Europe S.A.
5.000%, 12/31/14

     2,200,000        2,413,400   

Newmont Mining Corp.
1.250%, 07/15/14

     700,000        707,000   

Royal Gold, Inc.
2.875%, 06/15/19

     5,052,000        4,575,218   
   

 

 

  
      7,695,618   
   

 

 

  

Miscellaneous Manufacturing—0.4%

  

Siemens Financieringsmaatschappij NV
1.050%, 08/16/17

     3,750,000        3,802,125   
   

 

 

  

Oil & Gas—0.4%

  

Eni S.p.A.
0.250%, 11/30/15 (EUR)

     2,500,000        3,332,873   
   

 

 

  

Oil & Gas Services—0.7%

  

Subsea 7 S.A.
1.000%, 10/05/17

     2,600,000        2,470,000   

2.250%, 10/11/13

     800,000        800,800   

Technip S.A.
0.250%, 01/01/17 (EUR)

     2,011,644        2,792,474   
   

 

 

  
      6,063,274   
   

 

 

  

Pharmaceuticals—0.3%

  

Sawai Pharmaceutical Co., Ltd.
Zero Coupon, 09/17/15 (JPY)

     151,000,000        1,983,036   

Teva Pharmaceutical Finance Co. LLC
0.250%, 02/01/26

     652,000        682,970   
   

 

 

  
      2,666,006   
   

 

 

  

Real Estate—0.8%

  

British Land Co. Jersey, Ltd.
1.500%, 09/10/17 (GBP)

     2,200,000        3,521,759   

CapitaLand, Ltd.
2.875%, 09/03/16 (SGD)

     4,000,000        3,214,990   

Swiss Prime Site AG
1.875%, 01/20/15 (CHF)

     580,000        639,839   
   

 

 

  
      7,376,588   
   

 

 

  

Real Estate Investment Trusts—2.2%

  

BioMed Realty L.P.
3.750%, 01/15/30 (144A)

     1,985,000        2,401,850   

Boston Properties L.P.
3.625%, 02/15/14 (144A)

     3,897,000        4,026,088   

CapitaCommercial Trust
2.500%, 09/12/17 (SGD)

     1,250,000        1,053,501   

Capital Shopping Centres Jersey, Ltd.
2.500%, 10/04/18 (GBP)

     1,400,000        2,234,731   

Commonwealth Property Office Fund
5.250%, 12/11/16 (AUD)

     1,000,000        1,034,813   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-22

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Convertible Bonds—(Continued)

 

Security Description   Principal
Amount*		     Value  

Real Estate Investment Trusts—(Continued)

  

Derwent London Capital Jersey, Ltd.
2.750%, 07/15/16 (GBP)

     1,300,000      $ 2,347,966   

Gecina S.A.
2.125%, 01/01/16 (EUR)

     415,327        683,458   

ProLogis L.P.
3.250%, 03/15/15

     1,329,000        1,534,165   

Ruby Assets Pte, Ltd.
1.600%, 02/01/19 (SGD)

     2,000,000        1,756,213   

Unibail-Rodamco SE
0.750%, 01/01/18 (EUR)

     903,000        2,829,833   
   

 

 

  
      19,902,618   
   

 

 

  

Retail—0.3%

  

Aeon Co., Ltd.
0.300%, 11/22/13 (JPY)

     154,000,000        2,217,302   

Lotte Shopping Co., Ltd.
Zero Coupon, 07/05/16 (JPY)

     40,000,000        400,786   

Takashimaya Co., Ltd.
Zero Coupon, 11/14/14 (JPY)

     32,000,000        424,360   
   

 

 

  
      3,042,448   
   

 

 

  

Semiconductors—1.3%

  

Intel Corp.
2.950%, 12/15/35

     2,900,000        3,155,562   

3.250%, 08/01/39

     280,000        356,825   

Lam Research Corp.
0.500%, 05/15/16

     3,709,000        3,899,086   

1.250%, 05/15/18

     879,000        975,141   

Linear Technology Corp.
3.000%, 05/01/27

     1,630,000        1,701,312   

Novellus Systems, Inc.
2.625%, 05/15/41

     332,000        467,913   

Xilinx, Inc.
3.125%, 03/15/37

     874,000        1,206,120   
   

 

 

  
      11,761,959   
   

 

 

  

Software—0.1%

  

Nomura Research Institute, Ltd.
Zero Coupon, 03/31/14 (JPY)

     65,000,000        676,674   
   

 

 

  

Telecommunications—0.1%

  

SK Telecom Co., Ltd.
1.750%, 04/07/14

     800,000        1,060,800   
   

 

 

  

Textiles—0.1%

  

Toray Industries, Inc.
Zero Coupon, 03/12/14 (JPY)

     60,000,000        609,498   
   

 

 

  

Transportation—0.6%

  

Deutsche Post AG
0.600%, 12/06/19 (EUR)

     1,700,000        2,532,775   

Fukuyama Transporting Co., Ltd.
Zero Coupon, 03/22/17 (JPY)

     160,000,000        1,957,653   

Transportation—(Continued)

  

Nagoya Railroad Co., Ltd.
0.500%, 03/31/15 (JPY)

     15,000,000      $ 180,127   

Yamato Holdings Co., Ltd.
Zero Coupon, 03/07/16 (JPY)

     70,000,000        906,584   
   

 

 

  
      5,577,139   
   

 

 

  

Water—0.1%

  

Pennon Group plc
4.625%, 08/20/14 (GBP)

     300,000        529,290   
   

 

 

  

Total Convertible Bonds
(Cost $150,009,658)

       149,570,135   
   

 

 

  
U.S. Treasury & Government Agencies—1.5%   

Federal Agencies—0.1%

  

Federal Farm Credit Bank
5.250%, 12/28/27

     585,000        680,633   

Tennessee Valley Authority
5.375%, 04/01/56

     350,000        397,824   
   

 

 

  
      1,078,457   
   

 

 

  

U.S. Treasury—1.4%

  

U.S. Treasury Notes
0.250%, 01/31/14 (d)

     11,775,000        11,783,737   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $12,926,506)

       12,862,194   
   

 

 

  
Convertible Preferred Stocks—0.9%   

Aerospace & Defense—0.1%

  

United Technologies Corp.
7.500%, 08/01/15

     8,900        528,304   
   

 

 

  

Electric Utilities—0.6%

  

NextEra Energy, Inc.
5.599%, 06/01/15

     30,000        1,692,000   

5.889%, 09/01/15

     59,460        3,302,408   
   

 

 

  
      4,994,408   
   

 

 

  

Multi-Utilities—0.1%

  

Dominion Resources, Inc.
6.000%, 07/01/16 (a)

     7,400        370,370   

6.125%, 04/01/16 (a)

     7,400        371,480   
   

 

 

  
      741,850   
   

 

 

  

Real Estate Investment Trusts—0.1%

  

Health Care REIT, Inc.
6.500%, 12/31/49

     22,100        1,372,189   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $7,321,652)

       7,636,751   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-23

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Foreign Government—0.2%

 

Security Description   Principal
Amount*		     Value  

Provincial—0.2%

  

Province of British Columbia
6.500%, 01/15/26

     260,000      $ 337,030   

Province of Ontario
2.450%, 06/29/22

     150,000        141,292   

Province of Quebec Canada
6.350%, 01/30/26

     1,100,000        1,388,981   
   

 

 

  
      1,867,303   
   

 

 

  

Sovereign—0.0%

  

Mexico Government International Bond
3.625%, 03/15/22

     250,000        245,000   
   

 

 

  

Total Foreign Government
(Cost $2,252,795)

       2,112,303   
   

 

 

  
Preferred Stocks—0.2%   

Automobiles—0.1%

  

Volkswagen AG

     4,774        963,805   
   

 

 

  

Household Products—0.1%

  

Henkel AG & Co. KGaA

     9,087        852,690   
   

 

 

  

Machinery—0.0%

  

Marcopolo S.A. (a)

     37,200        212,228   
   

 

 

  

Total Preferred Stocks
(Cost $2,057,807)

       2,028,723   
   

 

 

  
Municipals—0.1%   

American Municipal Power, Inc.
5.939%, 02/15/47

     75,000        78,905   

Class B
7.499%, 02/15/50

     100,000        123,721   

Los Angeles, California Unified School District, Build America Bonds
5.750%, 07/01/34

     100,000        107,599   

6.758%, 07/01/34

     75,000        91,959   

Los Angeles, Department of Airports, Build America Bonds
6.582%, 05/15/39

     65,000        77,587   

Port Authority of New York & New Jersey
4.458%, 10/01/62

     160,000        142,829   

State of California
7.300%, 10/01/39

     260,000        335,509   

5.770%, 05/15/43

     140,000        154,144   

State of Massachusetts
5.456%, 12/01/39

     150,000        165,722   
   

 

 

  

Total Municipals
(Cost $1,386,808)

       1,277,975   
   

 

 

  

 

Short-Term Investments—26.5%   
Security Description   Principal
Amount*		     Value  

U.S. Treasury—0.1%

  

U.S. Treasury Bills

    

0.050%, 08/15/13 (d) (e)

     140,000      $ 139,991   

0.051%, 11/14/13 (d) (e)

     25,000        24,995   

0.054%, 08/15/13 (d) (e)

     760,000        759,950   

0.068%, 11/14/13 (d) (e)

     65,000        64,984   
   

 

 

  
      989,920   
   

 

 

  

Repurchase Agreement—26.4%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $233,661,195, on 07/01/13, collateralized by $239,880,000 U.S.Government Agency obligations with rates ranging from 0.420% - 0.875%, maturity dates ranging from 06/19/15 - 10/26/17, with a value of $238,339,681.

     233,661,000        233,661,000   
   

 

 

  

Total Short-Term Investments
(Cost $234,650,920)

       234,650,920   
   

 

 

  

Total Investments—102.4%
(Cost $905,583,021) (f)

       906,010,579   

Other assets and liabilities (net)—(2.4)%

       (21,474,084 ) 
   

 

 

  
Net Assets—100.0%     $ 884,536,495   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(c) Security is a “step-down” bond where the coupon decreases or steps down at a predetermined date. Rate shown is current coupon rate.
(d) All or a portion of the security was pledged as collateral against open futures contracts. As of June 30, 2013, the market value of securities pledged was $12,473,434.
(e) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(f) As of June 30, 2013, the aggregate cost of investments was $905,583,021. The aggregate unrealized appreciation and depreciation of investments were $20,773,408 and $(20,345,850), respectively, resulting in net unrealized appreciation of $427,558.
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $36,444,301, which is 4.1% of net assets.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.
(AUD)— Australian Dollar
(CHF)— Swiss Franc
(EUR)— Euro
(GBP)— British Pound

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-24

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

(GDR)— A Global Depositary Receipt is a negotiable certificate issued by one country’s bank against a certain number of shares of a company’s stock held in its custody but traded on the stock exchange of another country.
(HKD)— Hong Kong Dollar
(JPY)— Japanese Yen
(NVDR)— Non-Voting Depository Receipts
(SGD)— Singapore Dollar

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
AUD      4,231,492      Credit Suisse International        07/23/13           USD           3,874,523         $ (10,579 ) 
AUD      5,117,826      State Street Bank and Trust        09/24/13           USD           4,712,136           (60,058 ) 
CHF      578,354      State Street Bank and Trust        09/24/13           USD           619,183           (6,412 ) 
EUR      281,978      Citibank N.A.        07/23/13           USD           369,275           (2,207 ) 
EUR      349,227      Citibank N.A.        07/23/13           USD           461,931           (7,322 ) 
EUR      668,174      Citibank N.A.        07/23/13           USD           862,711           7,089   
EUR      60,765      Goldman Sachs & Co.        07/23/13           USD           79,754           (653 ) 
EUR      350,387      Goldman Sachs & Co.        07/23/13           USD           458,704           (2,586 ) 
EUR      269,873      Merrill Lynch & Co., Inc.        07/23/13           USD           353,134           (1,825 ) 
EUR      119,284      Morgan Stanley & Co., Inc.        07/23/13           USD           154,909           370   
EUR      285,368      Societe Generale        07/23/13           USD           379,753           (8,273 ) 
GBP      420,529      Citibank N.A.        09/24/13           USD           649,544           (10,290 ) 
HKD      50,736,712      Credit Suisse International        07/03/13           USD           6,539,846           1,720   
JPY      35,103,535      Credit Suisse International        07/23/13           USD           354,465           (500 ) 
JPY      36,191,372      Credit Suisse International        07/23/13           USD           380,071           (15,137 ) 
JPY      218,112,700      Credit Suisse International        07/23/13           USD           2,282,182           (82,851 ) 
JPY      442,586,400      Credit Suisse International        07/23/13           USD           4,409,281           53,523   
JPY      60,643,700      HSBC Bank plc        07/23/13           USD           625,921           (14,422 ) 
JPY      89,982,457      Morgan Stanley & Co., Inc.        07/23/13           USD           923,179           (15,844 ) 
JPY      44,343,326      State Street Bank and Trust        07/23/13           USD           442,195           4,939   
JPY      77,389,586      UBS AG        07/23/13           USD           765,612           14,743   
JPY      27,212,460      Citibank N.A.        09/24/13           USD           279,679           (5,196 ) 
JPY      17,142,281      State Street Bank and Trust        09/24/13           USD           176,412           (3,504 ) 
NOK      3,611,126      Credit Suisse International        09/24/13           USD           591,245           1,477   
SGD      453,171      Credit Suisse International        07/23/13           USD           357,346           201   
SGD      3,665,046      Credit Suisse International        07/23/13           USD           2,903,745           (12,066 ) 
SGD      1,555,600      Credit Suisse International        09/24/13           USD           1,224,323           3,178   

Contracts to Deliver

                                           
AUD      1,039,985      HSBC Bank plc        07/23/13           USD           1,067,537           117,887   
CAD      749,282      UBS AG        09/24/13           USD           714,413           3,404   
CHF      545,000      HSBC Bank plc        07/23/13           USD           585,914           8,816   
CHF      4,527,091      Westpac Banking Corp.        07/23/13           USD           4,850,150           56,435   
CHF      220,674      State Street Bank and Trust        09/24/13           USD           239,361           5,555   
EUR      7,994,117      Citibank N.A.        07/23/13           USD           10,670,892           264,487   
EUR      382,954      Goldman Sachs & Co.        07/23/13           USD           504,389           5,875   
EUR      1,706,889      HSBC Bank plc        07/23/13           USD           2,273,965           52,009   
EUR      407,974      Societe Generale        07/23/13           USD           532,205           1,122   
EUR      365,200      Societe Generale        07/23/13           USD           477,652           2,250   
EUR      433,880      UBS AG        07/23/13           USD           558,486           (6,321 ) 
EUR      21,926,577      Westpac Banking Corp.        07/23/13           USD           28,679,458           136,365   
EUR      1,828,203      Westpac Banking Corp.        07/23/13           USD           2,397,755           17,877   
EUR      2,094,691      UBS AG        09/24/13           USD           2,749,471           21,911   
GBP      826,841      Goldman Sachs & Co.        07/23/13           USD           1,270,235           12,831   
GBP      4,556,321      HSBC Bank plc        07/23/13           USD           6,955,551           26,605   
GBP      332,234      UBS AG        07/23/13           USD           506,949           1,710   
GBP      1,657,083      UBS AG        09/24/13           USD           2,558,464           39,505   
HKD      24,615,333      UBS AG        07/23/13           USD           3,170,335           (3,603 ) 

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-25

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  

Contracts to Deliver

                                           
HKD      12,173,233      UBS AG        07/23/13           USD           1,568,726         $ (909 ) 
HKD      1,162,402      Credit Suisse International        09/24/13           USD           149,926           8   
JPY      80,000,000      Citibank N.A.        07/23/13           USD           808,064           1,387   
JPY      63,995,000      Goldman Sachs & Co.        07/23/13           USD           623,498           (21,793 ) 
JPY      42,789,467      Goldman Sachs & Co.        07/23/13           USD           431,169           (297 ) 
JPY      36,650,000      Goldman Sachs & Co.        07/23/13           USD           369,174           (385 ) 
JPY      46,086,414      Morgan Stanley & Co., Inc.        07/23/13           USD           453,117           (11,594 ) 
JPY      41,750,000      Morgan Stanley & Co., Inc.        07/23/13           USD           405,667           (15,318 ) 
JPY      73,271,250      Societe Generale        07/23/13           USD           723,003           (15,825 ) 
JPY      2,046,747,284      UBS AG        07/23/13           USD           20,806,198           167,897   
JPY      64,805,784      Westpac Banking Corp.        07/23/13           USD           661,840           8,373   
NOK      12,689,743      Westpac Banking Corp.        07/23/13           USD           2,083,324           (4,256 ) 
SEK      6,025,642      Credit Suisse International        09/24/13           USD           898,397           1,538   
SGD      5,881,105      Citibank N.A.        07/23/13           USD           4,594,911           (45,212 ) 
SGD      10,616,261      UBS AG        07/23/13           USD           8,597,208           221,101   
SGD      1,081,449      Westpac Banking Corp.        07/23/13           USD           877,930           24,679   

Cross Currency
Contracts to Buy

                                           
CAD      243,667      Credit Suisse International        09/24/13           AUD           252,180         $ 1,990   
GBP      188,639      Credit Suisse International        07/23/13           JPY           28,337,345           1,131   
                             

 

 

  

Net Unrealized Appreciation

  

      $ 904,750   
                             

 

 

  

Futures Contracts

 

Futures Contracts—Long

      Expiration
Date		        Number of
Contracts		        Notional Amount        Unrealized
Appreciation/
(Depreciation)		  

Aluminum HG Futures

        07/17/13           17           USD           792,662         $ (54,331 ) 

Aluminum HG Futures

        09/18/13           17           USD           837,499           (85,568 ) 

Brent Crude Oil Futures

        08/15/13           10           USD           1,020,380           (3,180 ) 

Coffee Futures

        09/18/13           8           USD           389,723           (28,523 ) 

Copper High Grade Futures

        09/26/13           15           USD           1,232,364           (85,801 ) 

Corn Futures

        09/13/13           38           USD           1,109,203           (69,428 ) 

Cotton No. 2 Futures

        12/06/13           9           USD           384,751           (6,706 ) 

Gasoline RBOB Futures

        08/30/13           5           USD           587,509           (20,761 ) 

Gold 100 oz Futures

        08/28/13           12           USD           1,713,991           (245,551 ) 

Heating Oil Futures

        08/30/13           5           USD           604,099           (2,806 ) 

Lean Hogs Futures

        08/14/13           10           USD           379,131           10,669   

Light Sweet Crude E-Mini Oil Futures

        07/19/13           1           USD           49,215           (940 ) 

Light Sweet Crude Oil Futures

        08/20/13           18           USD           1,704,827           31,093   

Live Cattle Futures

        08/30/13           11           USD           532,874           4,036   

MSCI EAFE E-Mini Index Futures

        09/20/13           304           USD           25,383,442           (460,002 ) 

MSCI Emerging Markets E-Mini Index Futures

        09/20/13           88           USD           4,118,693           (10,413 ) 

Natural Gas Futures

        08/28/13           59           USD           2,276,044           (176,234 ) 

Nickel Futures

        07/17/13           4           USD           369,129           (41,397 ) 

Nickel Futures

        09/18/13           4           USD           363,645           (34,761 ) 

S&P 500 E-Mini Index Futures

        09/20/13           1,988           USD           159,467,856           (497,436 ) 

Silver Futures

        09/26/13           5           USD           551,988           (65,238 ) 

Soybean Futures

        11/14/13           15           USD           992,571           (53,571 ) 

Soybean Meal Futures

        12/13/13           12           USD           473,227           (24,427 ) 

Soybean Oil Futures

        12/13/13           17           USD           486,472           (26,248 ) 

Sugar No. 11 Futures

        09/30/13           33           USD           621,394           3,969   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-26

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Futures Contracts—(Continued)

 

Futures Contracts—Long

      Expiration
Date		        Number of
Contracts		      Notional Amount      Unrealized
Appreciation/
(Depreciation)		  

U.S. Treasury Note 10 Year Futures

        09/19/13           94         USD           11,886,177       $ 10,698   

Wheat Futures

        09/13/13           17         USD           600,064         (40,976 ) 

Wheat Futures

        09/13/13           6         USD           224,043         (16,743 ) 

Zinc Futures

        07/17/13           9         USD           419,869         (8,569 ) 

Zinc Futures

        09/18/13           9         USD           434,044         (16,894 ) 

Futures Contracts—Short

                                         

Aluminum HG Futures

        07/17/13           (17 )       USD           (824,463 )       86,132   

Mini-Sized Silver Futures

        09/26/13           (1 )       USD           (22,083 )       2,624   

Nickel Futures

        07/17/13           (4 )       USD           (362,271 )       34,539   

U.S. Treasury Note 10 Year Futures

        09/19/13           (343 )       USD           (44,354,922 )       943,984   

Zinc Futures

        07/17/13           (9 )       USD           (428,606 )       17,307   
                    

 

 

  

Net Unrealized Depreciation

                      $ (931,453 ) 
                    

 

 

  

Swap Agreements

Interest rate swap agreements

 

Pay/Receive
Floating Rate

   Floating
Rate Index		   Fixed
Rate		     Maturity
Date		    

Counterparty

    Notional
Amount		     Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Pay

   3-Month USD-LIBOR     2.038 %      02/25/23      Barclays Bank plc      USD        16,250,000      $ (874,848 )    $ —      $ (874,848 ) 

Pay

   3-Month USD-LIBOR     2.064 %      03/11/23      Barclays Bank plc      USD        19,120,000        (996,133 )      —        (996,133 ) 

Pay

   3-Month USD-LIBOR     1.996 %      04/05/23      Barclays Bank plc      USD        22,230,000        (1,319,266 )      —        (1,319,266 ) 

Pay

   3-Month USD-LIBOR     1.887 %      04/29/23      Deutsche Bank AG      USD        21,950,000        (1,528,600 )      —        (1,528,600 ) 

Pay

   3-Month USD-LIBOR     1.942 %      05/10/23      Credit Suisse International      USD        35,610,000        (2,350,531 )      —        (2,350,531 ) 

Pay

   3-Month USD-LIBOR     1.956 %      05/10/23      Deutsche Bank AG      USD        12,460,000        (806,657 )      —        (806,657 ) 

Pay

   3-Month USD-LIBOR     2.316 %      05/31/23      Barclays Bank plc      USD        47,250,000        (1,562,142 )      —        (1,562,142 ) 

Pay

   3-Month USD-LIBOR     2.305 %      05/31/23      Credit Suisse International      USD        10,270,000        (349,817 )      —        (349,817 ) 

Pay

   3-Month USD-LIBOR     2.310 %      06/19/23      Deutsche Bank AG      USD        33,670,000        (1,160,621 )      —        (1,160,621 ) 

Pay

   3-Month USD-LIBOR     2.860 %      06/26/23      Credit Suisse International      USD        31,450,000        489,278        —        489,278   
              

 

 

    

 

 

    

 

 

  

Totals

  

     $ (10,459,337 )    $ —      $ (10,459,337 ) 
              

 

 

    

 

 

    

 

 

  

 

(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(CHF)— Swiss Franc
(EUR)— Euro
(GBP)— British Pound
(HKD)— Hong Kong Dollar
(JPY)— Japanese Yen
(LIBOR)— London InterBank Offered Rate
(NOK)— Norwegian Krone
(SEK)— Swedish Krona
(SGD)— Singapore Dollar
(USD)— United States Dollar

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-27

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy

 

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Consolidated Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 2,771,967       $ 2,952,913       $ —         $ 5,724,880   

Air Freight & Logistics

      131,685         1,357,438         —           1,489,123   

Airlines

      107,283         —           —           107,283   

Auto Components

      74,443         3,842,634         —           3,917,077   

Automobiles

      3,689,585         7,886,983         —           11,576,568   

Beverages

      4,426,676         2,469,162         —           6,895,838   

Biotechnology

      2,745,494         —           —           2,745,494   

Building Products

      379,081         1,224,824         —           1,603,905   

Capital Markets

      2,210,761         4,729,248         —           6,940,009   

Chemicals

      1,715,167         4,055,560         —           5,770,727   

Commercial Banks

      8,918,917         19,257,236         —           28,176,153   

Commercial Services & Supplies

      174,174         861,218         —           1,035,392   

Communications Equipment

      2,538,098         1,174,071         —           3,712,169   

Computers & Peripherals

      3,000,614         —           —           3,000,614   

Construction & Engineering

      1,152,983         —           —           1,152,983   

Construction Materials

      —           695,452         —           695,452   

Consumer Finance

      511,399         —           —           511,399   

Containers & Packaging

      297,206         1,181,041         —           1,478,247   

Distributors

      208,054         —           —           208,054   

Diversified Financial Services

      4,436,945         3,042,866         —           7,479,811   

Diversified Telecommunication Services

      1,804,354         2,484,718         —           4,289,072   

Electric Utilities

      1,901,919         444,215         —           2,346,134   

Electrical Equipment

      1,214,445         2,459,378         —           3,673,823   

Electronic Equipment, Instruments & Components

      1,058,747         1,930,014         —           2,988,761   

Energy Equipment & Services

      2,838,504         503,846         —           3,342,350   

Food & Staples Retailing

      4,461,919         1,534,606         —           5,996,525   

Food Products

      2,668,893         8,259,630         —           10,928,523   

Gas Utilities

      95,949         —           —           95,949   

Health Care Equipment & Supplies

      1,566,808         —           —           1,566,808   

Health Care Providers & Services

      1,569,990         —           —           1,569,990   

Health Care Technology

      255,422         —           —           255,422   

Hotels, Restaurants & Leisure

      959,081         4,193,383         —           5,152,464   

Household Durables

      373,682         3,910,191         —           4,283,873   

Household Products

      2,557,431         423,502         —           2,980,933   

Industrial Conglomerates

      2,738,032         1,034,645         —           3,772,677   

Insurance

      4,356,268         23,310,331         —           27,666,599   

Internet & Catalog Retail

      1,073,620         —           —           1,073,620   

Internet Software & Services

      2,611,392         —           —           2,611,392   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-28

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  

IT Services

    $ 4,153,885      $ 829,642      $ —         $ 4,983,527   

Life Sciences Tools & Services

      428,082        —          —           428,082   

Machinery

      1,117,352        1,098,746        —           2,216,098   

Media

      3,730,977        3,038,735        —           6,769,712   

Metals & Mining

      1,610,977        1,412,721        —           3,023,698   

Multi-Utilities

      1,191,317        1,126,783        —           2,318,100   

Multiline Retail

      1,605,630        —          —           1,605,630   

Oil, Gas & Consumable Fuels

      8,992,080        8,892,576        —           17,884,656   

Paper & Forest Products

      —          808,834        —           808,834   

Pharmaceuticals

      4,775,737        19,597,402        —           24,373,139   

Professional Services

      —          970,496        —           970,496   

Real Estate Investment Trusts

      2,610,637        3,147,404        —           5,758,041   

Real Estate Management & Development

      —          4,627,845        —           4,627,845   

Road & Rail

      2,138,855        458,699        —           2,597,554   

Semiconductors & Semiconductor Equipment

      5,664,561        1,660,713        —           7,325,274   

Software

      3,788,621        1,024,943        —           4,813,564   

Specialty Retail

      3,365,518        1,103,014        —           4,468,532   

Textiles, Apparel & Luxury Goods

      792,393        1,287,666        —           2,080,059   

Tobacco

      1,748,288        6,958,227        —           8,706,515   

Trading Companies & Distributors

      321,277        127,029        —           448,306   

Transportation Infrastructure

      537,025        —          —           537,025   

Wireless Telecommunication Services

      44,675        6,290,599        —           6,335,274   

Total Common Stocks

      122,214,875        169,681,179        —           291,896,054   

Total Corporate Bonds & Notes*

      —          203,975,524        —           203,975,524   

Total Convertible Bonds*

      —          149,570,135        —           149,570,135   

Total U.S. Treasury & Government Agencies*

      —          12,862,194        —           12,862,194   

Total Convertible Preferred Stocks*

      7,636,751        —          —           7,636,751   

Total Foreign Government*

      —          2,112,303        —           2,112,303   

Total Preferred Stocks*

      —          2,028,723        —           2,028,723   

Total Municipals

      —          1,277,975        —           1,277,975   
Short-Term Investments          

U.S. Treasury

      —          989,920        —           989,920   

Repurchase Agreement

      —          233,661,000        —           233,661,000   

Total Short-Term Investments

      —          234,650,920        —           234,650,920   

Total Investments

    $ 129,851,626      $ 776,158,953      $ —         $ 906,010,579   
                                   
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 1,289,988      $ —         $ 1,289,988   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (385,238 )      —           (385,238 ) 

Total Forward Contracts

    $ —        $ 904,750      $ —         $ 904,750   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 1,145,051      $ —        $ —         $ 1,145,051   

Futures Contracts (Unrealized Depreciation)

      (2,076,504 )      —          —           (2,076,504 ) 

Total Futures Contracts

    $ (931,453 )    $ —        $ —         $ (931,453 ) 
Swap Contracts          

Swap Contracts at Value (Assets)

    $ —        $ 489,278      $ —         $ 489,278   

Swap Contracts at Value (Liabilities)

      —          (10,948,615 )      —           (10,948,615 ) 

Total Swap Contracts

    $ —        $ (10,459,337 )    $ —         $ (10,459,337 ) 

 

* See Consolidated Schedule of Investments for additional detailed categorizations.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-29

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 672,349,579   

Repurchase Agreement

      233,661,000   

Cash

      15,743,373   

Cash denominated in foreign currencies (b)

      3,136,404   

Cash collateral on swap contracts

      10,750,000   

Swaps at market value

      489,278   

Unrealized appreciation on forward foreign currency exchange contracts

      1,289,988   

Receivable for:

   

Investments sold

      3,099,838   

Fund shares sold

      2,598,265   

Dividends

      579,030   

Interest

      3,396,553   

Variation margin on futures contracts

      26,797   

Swap interest

      695,673   

Other assets

      864   
  

 

 

  

Total Assets

      947,816,642   

Liabilities

   

Payables for:

   

Investments purchased

      50,191,463   

Fund shares redeemed

      5,164   

Swaps at market value

      10,948,615   

Unrealized depreciation on forward foreign currency exchange contracts

      385,238   

Variation margin on futures contracts

      766,713   

Swap interest

      70,121   

Accrued expenses:

   

Management fees

      528,804   

Distribution and service fees

      176,383   

Deferred trustees’ fees

      12,462   

Other expenses

      195,184   
  

 

 

  

Total Liabilities

      63,280,147   
  

 

 

  

Net Assets

    $ 884,536,495   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 872,380,967   

Undistributed net investment income

      2,516,343   

Accumulated net realized gain

      19,669,764   

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (10,030,579 ) 
  

 

 

  

Net Assets

    $ 884,536,495   
  

 

 

  

Net Assets

   

Class B

    $ 884,536,495   

Capital Shares Outstanding*

   

Class B

      83,237,232   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.63   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement, was $671,922,021.
(b) Identified cost of cash denominated in foreign currencies was $3,138,555.

Consolidated§ Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 4,435,198   

Interest (b)

      3,286,205   
  

 

 

  

Total investment income

      7,721,403   

Expenses

   

Management fees

      2,717,424   

Administration fees

      12,181   

Deferred expense reimbursement

      21,567   

Custodian and accounting fees

      219,012   

Distribution and service fees—Class B

      897,466   

Audit and tax services

      40,036   

Legal

      8,593   

Trustees’ fees and expenses

      14,118   

Shareholder reporting

      6,743   

Insurance

      16   

Organizational expense

      904   

Miscellaneous

      3,262   
  

 

 

  

Total expenses

      3,941,322   
  

 

 

  

Net Investment Income

      3,780,081   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      14,857,358   

Futures contracts

      8,671,977   

Swap contracts

      (5,541,321 ) 

Foreign currency transactions

      3,507,232   
  

 

 

  

Net realized gain

      21,495,246   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (9,852,388 ) 

Futures contracts

      (1,929,691 ) 

Swap contracts

      (10,001,961 ) 

Foreign currency transactions

      201,596   
  

 

 

  

Net change in unrealized depreciation

      (21,582,444 ) 
  

 

 

  

Net realized and unrealized loss

      (87,198 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 3,692,883   
  

 

 

  

 

(a) Net of foreign withholding taxes of $292,375.
(b) Net of foreign withholding taxes of $3,770.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-30

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Statement of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Period Ended
December 31,
2012(a)		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 3,780,081      $ 363,715   

Net realized gain

      21,495,246        5,038,266   

Net change in unrealized appreciation (depreciation)

      (21,582,444 )      11,551,865   
  

 

 

    

 

 

  

Increase in net assets from operations

      3,692,883        16,953,846   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (704,191 )      (1,676,207 ) 

Net realized capital gains

     

Class B

      (4,154,729 )      (2,915,176 ) 
  

 

 

    

 

 

  

Total distributions

      (4,858,920 )      (4,591,383 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      399,542,628        473,797,441   
  

 

 

    

 

 

  

Total Increase in Net Assets

      398,376,591        486,159,904   

Net Assets

     

Beginning of period

      486,159,904        0   
  

 

 

    

 

 

  

End of period

    $ 884,536,495      $ 486,159,904   
  

 

 

    

 

 

  

Undistributed (Distributions in Excess of) Net Investment Income

     

End of period

    $ 2,516,343      $ (559,547 ) 
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Period Ended
December 31, 2012(a)		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      37,145,882      $ 402,009,450        46,752,485      $ 477,991,749   

Reinvestments

      447,414        4,858,920        438,528        4,591,383   

Redemptions

      (672,743 )      (7,325,742 )      (874,334 )      (8,785,691 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      36,920,553      $ 399,542,628        46,316,679      $ 473,797,441   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 399,542,628        $ 473,797,441   
    

 

 

      

 

 

  

 

(a) Commencement of operations was April 23, 2012.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-31

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Consolidated§ Financial Highlights

 

Selected per share data             
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012(a)		  

Net Asset Value, Beginning of Period

    $ 10.50      $ 10.00   
  

 

 

    

 

 

  

Income (Loss) from Investment Operations

     

Net investment income (b)

      0.06        0.02   

Net realized and unrealized gain on investments

      0.14  (c)      0.58   
  

 

 

    

 

 

  

Total from investment operations

      0.20        0.60   
  

 

 

    

 

 

  

Less Distributions

     

Distributions from net investment income

      (0.01 )      (0.04 ) 

Distributions from net realized capital gains

      (0.06 )      (0.06 ) 
  

 

 

    

 

 

  

Total distributions

      (0.07 )      (0.10 ) 
  

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.63      $ 10.50   
  

 

 

    

 

 

  

Total Return (%) (d)

      1.88  (e)      6.02  (e) 

Ratios/Supplemental Data

     

Gross ratio of expenses to average net assets (%)

      1.10  (f)      1.32  (f) 

Net ratio of expenses to average net assets (%) (g)

      1.10  (f)      1.25  (f) 

Ratio of net investment income to average net assets (%)

      1.05  (f)      0.24  (f) 

Portfolio turnover rate (%)

      31  (e)      36  (e) 

Net assets, end of period (in millions)

    $ 884.5      $ 486.2   

 

(a) Commencement of operations was April 23, 2012.
(b) Per share amounts based on average shares outstanding during the period.
(c) The per share amount may differ with the change in aggregate gains (losses) as shown in the Consolidated Statement of Operations due to the timing of purchases and sales of Portfolio shares in relation to fluctuating market values during the period.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.
(g) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-32

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is JPMorgan Global Active Allocation Portfolio (the “Portfolio”) (commenced operations on April 23, 2012), which is diversified. The Portfolio’s shares first became available to investors through certain separate accounts on April 30, 2012. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B Shares are currently offered by the Portfolio.

2. Consolidation of Subsidiary—JPMorgan Global Active Allocation Portfolio, Ltd.

The Portfolio may invest up to 10% of its total assets in the JPMorgan Global Active Allocation Portfolio, Ltd., which is a wholly-owned and controlled subsidiary of the Portfolio that is organized under the laws of the Cayman Islands as an exempted company (the “Subsidiary”). The Portfolio invests in the Subsidiary in order to gain exposure to the commodities market within the limitations of the federal tax laws, rules and regulations that apply to regulated investment companies. The Portfolio has obtained an opinion from legal counsel to the effect that the annual net profit, if any, realized by the Subsidiary and imputed for income tax purposes to the Portfolio should constitute “qualifying income” for purposes of the Portfolio remaining qualified as a regulated investment company for U.S federal income tax purposes. It is possible that the Internal Revenue Service or a court could disagree with the legal opinion obtained by the Portfolio.

The Subsidiary invests primarily in commodity derivatives, exchange traded notes and total return swaps. Unlike the Portfolio, the Subsidiary may invest without limitation in commodity-linked derivatives; however, the Subsidiary complies with the same 1940 Act asset coverage requirements with respect to its investments in commodity-linked derivatives that are applicable to the Portfolio’s transactions in derivatives. In addition, to the extent applicable to the investment activities of the Subsidiary, the Subsidiary is subject to the same fundamental investment restrictions and follows the same compliance policies and procedures as the Portfolio.

By investing in the Subsidiary, the Portfolio is indirectly exposed to the risks associated with the Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are subject to commodities risk. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the 1940 Act and is not subject to all the investor protections of the 1940 Act. The Portfolio, however, wholly owns and controls the Subsidiary, and the Portfolio and Subsidiary are both managed by J.P. Morgan Investment Management, Inc. (the “Subadviser”), making it unlikely that the Subsidiary will take action contrary to the interests of the Portfolio and its shareholders. Changes in the laws of the United States and/or Cayman Islands could result in the inability of the Portfolio and/or the Subsidiary to operate as described in the Portfolio’s prospectus and could adversely affect the Portfolio. For example, the Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Portfolio shareholders would likely suffer decreased investment returns.

The consolidated Schedule of Investments, Statement of Assets and Liabilities, Statement of Operations, Statement of Changes in Net Assets and the Financial Highlights of the Portfolio includes the account of the Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation for the Portfolio. The Subsidiary has a fiscal year end of December 31st for financial statement consolidation purposes and a nonconforming tax year end of November 30th.

A summary of the Portfolio’s investment in the Subsidiary is as follows:

 

      Inception Date
of Subsidiary		      Subsidiary
Net Assets at
June 30, 2013		      % of
Total Assets at
June 30, 2013		  

JPMorgan Global Active Allocation Portfolio, Ltd.

      4/23/2012       $ 16,616,320         1.8 % 

3. Significant Accounting Policies

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these consolidated financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the consolidated financial statements were issued.

 

MIST-33

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its consolidated financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the

 

MIST-34

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, swap transactions, premium amortization adjustments, contingent payment debt instrument adjustments, Real Estate Investment Trusts (REITs), return of capital adjustments, distribution and service fees and controlled foreign corporation reversal. These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $233,661,000, which is included on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

 

MIST-35

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

4. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Consolidated Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Consolidated Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Consolidated Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Consolidated Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Consolidated Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be

 

MIST-36

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Commodity Futures Contracts and Swaps on Commodity Futures Contracts - The Subsidiary will invest primarily in commodity futures and swaps on commodity futures. Exposure to the commodities markets may subject the Portfolio to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Consolidated Schedule of Investments and restricted cash, if any, is reflected on the Consolidated Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Consolidated Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Consolidated Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Consolidated Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Consolidated Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Consolidated Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

Equity Swaps: Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying security and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. If the other party to an equity swap defaults, a Portfolio’s risk of loss consists of the net amount of payments that such Portfolio is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile.

Total Return Swaps: The Portfolio may enter into total return swap agreements to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another

 

MIST-37

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include a specified security, basket of securities or securities indices during the specific period, in return for periodic payments based on a fixed or floating rate or the total return from other underlying assets. When a Portfolio pays interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may be required to pay the change in value to the counterparty in addition to the interest payment; conversely, when a Portfolio receives interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may receive the change in value in addition to the interest payment. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty. Total return swaps can also be structured without an interest payment, so that one party pays the other party if the value of the underlying asset increases and receives payment from the other party if the value of the underlying asset decreases.

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust the interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contracts remaining life, to the extent that amount is positive.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Consolidated Statement of
Assets & Liabilities Location

    Fair Value     

Consolidated Statement of
Assets & Liabilities Location

    Fair Value  
Interest Rate    Swaps at market value (b)    $ 489,278       Swaps at market value (b)    $ 10,948,615   
           
Equity    Unrealized appreciation on futures contracts* (a)      954,682       Unrealized depreciation on futures contracts* (a)      967,851   
Commodity    Unrealized appreciation on futures contracts* (a)      190,369       Unrealized depreciation on futures contracts* (a)      1,108,653   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      1,289,988       Unrealized depreciation on forward foreign currency exchange contracts      385,238   
     

 

 

        

 

 

  
Total       $ 2,924,317          $ 13,410,357   
     

 

 

        

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Consolidated Schedule of Investments. Only the current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(c)		      Net Amount  

Citibank N.A.

    $ 272,963       $ (70,227 )    $ —       $ 202,736   

Credit Suisse International

      554,044         (554,044 )      —         —   

Goldman Sachs & Co.

      18,706         (18,706 )      —         —   

HSBC Bank plc

      205,317         (14,422 )      —         190,895   

Morgan Stanley & Co., Inc.

      370         (370 )      —         —   

Societe Generale

      3,372         (3,372 )      —         —   

State Street Bank and Trust

      10,494         (10,494 )      —         —   

UBS AG

      470,271         (10,833 )      —         459,438   

Westpac Banking Corp.

      243,729         (4,256 )      —         239,473   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 1,779,266       $ (686,724 )    $ —       $ 1,092,542   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

MIST-38

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged(c)		     Net Amount  

Barclays Bank plc

    $ 4,752,389       $ —      $ (4,390,000 )    $ 362,389   

Citibank N.A.

      70,227         (70,227 )      —        —   

Credit Suisse International

      2,821,481         (554,044 )      (2,267,437 )      —   

Deutsche Bank AG

      3,495,878         —        (3,495,878 )      —   

Goldman Sachs & Co.

      25,714         (18,706 )      —        7,008   

HSBC Bank plc

      14,422         (14,422 )      —        —   

Merrill Lynch & Co., Inc.

      1,825         —        —        1,825   

Morgan Stanley & Co., Inc.

      42,756         (370 )      —        42,386   

Societe Generale

      24,098         (3,372 )      —        20,726   

State Street Bank and Trust

      69,974         (10,494 )      —        59,480   

UBS AG

      10,833         (10,833 )      —        —   

Westpac Banking Corp.

      4,256         (4,256 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 11,333,853       $ (686,724 )    $ (10,153,315 )    $ 493,814   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Consolidated Statement of Operations Location—Net Realized Gain
(Loss)

    Interest Rate     Equity     Commodity     Foreign
Exchange		      Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ 3,264,155       $ 3,264,155   

Futures contracts

      (174,579 )      9,166,024        (319,468 )      —         8,671,977   

Swap contracts

      (4,774,178 )      —        (767,143 )      —         (5,541,321 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ (4,948,757 )    $ 9,166,024      $ (1,086,611 )    $ 3,264,155       $ 6,394,811   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Consolidated Statement of Operations Location—Net Change in
Unrealized Appreciation (Depreciation)

    Interest Rate     Equity     Commodity     Foreign
Exchange		      Total  

Forward foreign currency transactions

    $ —      $ —      $ —      $ 174,056       $ 174,056   

Futures contracts

      948,377        (1,959,785 )      (918,283 )      —         (1,929,691 ) 

Swap contracts

      (10,076,025 )      —        74,064        —         (10,001,961 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
   $ (9,127,648 )    $ (1,959,785 )    $ (844,219 )    $ 174,056       $ (11,757,596 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(d)		  

Forward Foreign currency transactions

    $ 126,817,494   

Futures contracts long

      10,466,784   

Futures contracts short

      19,167,787   

Swap contracts

      221,083,446   

 

  (a) Financial instrument not subject to a master netting arrangement.
  (b) Excludes swap interest receivable of $695,673 and swap interest payable of $70,121.
  (c) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (d) Averages are based on activity levels during 2013.

5. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the consolidated financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk

 

MIST-39

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Consolidated Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Consolidated Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Consolidated Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

6. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$7,446,522    $ 457,049,052       $ 0       $ 164,612,366   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with J.P. Morgan Investment Management, Inc. (“the Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

 

MIST-40

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management

Fees earned by

the Adviser

for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$2,717,424      0.800 %    First $250 million
     0.750 %    $250 million to $500 million
     0.720 %    $500 million to $750 million
     0.700 %    Over $750 million

Expense Limitation Agreement - The Adviser has entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement shall continue in effect with respect to the Portfolio until April 27, 2014. Pursuant to that Expense Limitation Agreement, the Adviser has agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and acquired fund fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, are limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under current
Expense Limitation Agreement

Class B

1.25%

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred.

As of June 30, 2013, there were no expenses deferred in 2013 and $21,567 was repaid to the Adviser in accordance with the Expense Limitation Agreement. The amount of expenses deferred in 2012, which were recovered during the six months ended June 30, 2013 was $21,567. Amounts recouped for the six months ended June 30, 2013 are shown as Deferred expense reimbursement in the Consolidated Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Consolidated Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees

 

MIST-41

Met Investors Series Trust

JPMorgan Global Active Allocation Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Consolidated Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Consolidated Statement of Assets and Liabilities.

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

9. Income Tax Information

The tax character of distributions paid for the period ended December 31, 2012 were as follows:

 

Ordinary Income

    Long-Term Capital Gain      Total  
$3,216,051    $ 1,375,332       $ 4,591,383   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Total  
$2,940,544    $ 1,809,501       $ 8,578,608       $ 13,328,653   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-42

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Managed by J.P. Morgan Investment Management Inc. & Dreman Value Management, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the JPMorgan Small Cap Value Portfolio returned 13.26% and 13.09%, respectively. The Portfolio’s benchmark, the Russell 2000 Value Index1, returned 14.39%.

The following section was prepared by J.P. Morgan Investment Management Inc., who assumed management of the Portfolio on April 29, 2013.

MARKET ENVIRONMENT / CONDITIONS

The S&P 500 Index turned in its best first half of the year performance since 1991. Investors applauded continued strength in corporate profits, ongoing improvements in housing and an improved outlook for U.S. fiscal policy. Equity markets sold off from their highs over concerns of the Federal Reserve (“Fed”) altering the pace of their bond buying program and increased stress in the Chinese interbank lending market. For the first six months of 2013, small cap stocks led large cap stocks as the Russell 2000 Index advanced 15.9%, outpacing a solid 13.8% return for the S&P 500 Index.

With all but one company left to report first quarter earnings, expected S&P 500 operating earnings of $25.77/share would be a new quarterly record. Current estimates for the second quarter earnings season are even higher. The strength in the housing market continues as housing starts for the first five months of the year have averaged a 928,000 annual pace which represents a 28.7% increase over the same period in 2012. Perhaps even more significant is the increase in home prices as the national median existing home price for May rose 15.4% over the year-ago period. This was the strongest 12-month price gain since October of 2005. Easing anxiety over the U.S. fiscal situation was also welcomed by investors. The Congressional Budget Office’s (CBO) updated budget projections show the 2013 budget deficit will shrink to $642 billion, the smallest since 2008. This was mostly a result of higher-than-expected revenues and an increase in payments to the Treasury by Fannie Mae and Freddie Mac.

June was quite a volatile month for global markets. The outcome of the Fed’s June Federal Open Market Committee (FOMC) meeting did not deviate far from expectations; however, during his press conference, Chairman Bernanke outlined a detailed and somewhat more aggressive schedule for concluding bond purchases. These developments caught some investors off guard as the yield on the 10-Year U.S. Treasury rose sharply to 2.61%. Volatility in the Chinese credit markets also unsettled investors. The Shanghai Interbank Offered Rate (SHIBOR) peaked at 13.4%, significantly above average levels. Reasons for the rise in lending rates include higher demand for liquidity around quarter end and a regulatory ban on interbank bond repurchases. The People’s Bank of China’s (PBoC) initial reluctance to provide liquidity generated additional uncertainty. Capital markets rebounded after the PBoC provided much needed liquidity and several members of the FOMC reiterated that tapering the pace of bond purchases is not a tightening of monetary policy.

The following section was prepared by Dreman Value Management, LLC, who managed the Portfolio through April 28, 2013.

PORTFOLIO REVIEW

The Portfolio posted a strong absolute return and outperformed the Russell 2000 Value Index benchmark. Stock selection was the main driver of relative performance and we generated the strongest results in the Financials, Industrials, Information Technology, and Health Care sectors. Our relative performance was weakest in the Materials and Consumer Discretionary sectors.

The Financials sector was the strongest performer in the Portfolio as the additions we made over the past 18 months performed well. The Portfolio’s Capital Markets stocks enjoyed a strong first quarter as rising markets lifted their revenue and earnings outlook. Waddell & Reed Financial and Federated Investors were up sharply over the first four months of the year. The Portfolio’s Banks also did well over this time frame and we remained positive on the industry and continued to have an overweight position given attractive valuations. We expected to see further consolidation in the industry and increased dividends and buybacks as balance sheets strengthen and earnings improve. Pricing trends in the Insurance industry continued to improve during the time period, providing a tail wind for associated stocks. The Hanover Insurance Group and Protective Lift appreciated over the four month period. Our positioning in real estate investment trusts (REITs) was neutral as our positive stock selection was offset by our underweight in the industry. Omega Health Care, a REIT focused on long-term care facilities, posted a strong gain over this time period on strong earnings, increased guidance and a dividend increase. We continued to hold the stock in the Portfolio as it remains attractively valued. We remained concerned about the fundamentals of Mortgage REITs due to the implications a rising rate environment will have on their portfolios. The Portfolio held no exposure within this subsection of the REIT’s space given rich valuations and this underweight hurt performance during the first quarter as Mortgage REITs posted a strong return.

Performance in the Industrial industry was strong as stock selection provided alpha. Low valuations and improving fundamentals drove the performance as many stocks exceeded earnings expectations. In the Aerospace and Defense industry, both Esterline Technologies and Alliant Techsystems posted double digit returns. General Cable, a manufacturer of copper and aluminum wire for the distribution of power, was up as end market improvements, especially nonresidential construction, improved in the first few months of 2013. Tutor Perini, a construction and engineering company, exceeded earnings estimates partially driven by emergency repair work in New York related to “Superstorm Sandy”. The company’s backlog has been stable over the past several quarters and we expect it to grow this year as the economy continues to improve. Ryder, a logistics and supply chain management company, beat earnings estimates due to improvements in its utilization rates which helped bolster margins during the fourth

 

MIST-1

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Managed by J.P. Morgan Investment Management Inc. & Dreman Value Management, LLC

Portfolio Manager Commentary*—(Continued)

 

quarter 2012. Management raised guidance for the year and the stock responded accordingly. We remained overweight the Industrials Sector with the backdrop of a slowly improving global economy.

The Materials sector was the worst performing sector on a relative basis as both stock selection and allocation negatively impacted performance. All of the Portfolio’s precious metal stocks fell as both silver and gold prices retreated during the first quarter. We made the decision to sell AuRico Gold during this volatile time as the company continued to struggle with operating issues which compounded the negative price movements of the precious metals. The sector was not a complete loss as our steel stocks performed well, including Worthington Industries and Steel Dynamics, as demand for their products increased.

Stock selection in Energy helped performance. An improved outlook in the Gulf of Mexico (GOM) as well as in International markets was a positive for Superior Energy and Atwood Oceanics. Atwood Oceanics, a contract duller, continued to see high utilization rates on its rigs, effective new builds and strong cost controls that led to expanding margins and a positive earnings surprise. Superior Energy, a specialized oilfield services and equipment company, continued its International expansion and is seeing improvements in the U.S. land markets. The company remained focused on de-levering its balance sheet and we believe this could lead to shareholder friendly actions as cash builds over the coming quarters.

Mark Roach

Mario Trufano

Portfolio Managers

Dreman Value Management, LLC

The following section was prepared by J.P. Morgan Asset Management Inc., who assumed management of the Portfolio on April 29, 2013.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Stock selection in the Pharmaceutical and Insurance industries aided the Portfolio’s relative return, and Clovis Oncology and Stewart Enterprises were the top contributors. Clovis Oncology, a U.S.-based bio-pharmaceutical company rallied after its drug Rucaparib demonstrated encouraging results from phase I/II monotherapy study in patients with solid tumors. Stewart Enterprises, a retail drugstore chain in the U.S. rallied after reporting stronger than expected quarterly results, as well as a positive announcement in May that it was entering into a merger agreement with SCI.

Alternatively, stock selection in Consumer Staples and Semiconductors hurt performance. Redwood Trust and Central Garden & Pet Co. were the top detractors. Redwood Trust, Inc. a company focused on engaging in residential and commercial mortgage banking activities, detracted from performance after a number of downgrades by brokers citing a decline in refinance activity as mortgage rates have risen. Also deleveraging by REITs and banks, reduction in mortgage-backed security investment by money managers, and paring of mortgage loans contributed to selling. Central Garden & Pet Co., a leading innovator, marketer and producer of quality branded products for the lawn, garden and pet supplies markets, replaced its Chief Executive during its fiscal period amid challenging business conditions.

From a proprietary attribution standpoint, the Alpha Model, the team’s quantitative ranking model, made the most meaningful contribution to performance, with the other exposures (beta, risk factors, stock, and sector selection) also contributing. From a factor perspective, Deployment and Valuation both made positive contributions while the impact from Quality was slightly negative.

As of June 30, 2013 our largest relative sector overweights were in the Consumer Cyclical, Insurance and Pharmaceutical industries, and our largest relative underweights were in Financials, REITs, and Industrial Cyclical sectors. At period end, we remained optimistic on the U.S. Equity market as economic fundamentals continued to move forward at a steady pace.

Dennis Ruhl

Phil Hart

Portfolio Managers

J.P. Morgan Investment Management Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 VALUE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
JPMorgan Small Cap Value Portfolio                      

Class A

        13.26           22.44           6.87           8.16   

Class B

        13.09           22.15           6.60           5.97   
Russell 2000 Value Index        14.39           24.76           8.59           7.05   

1 The Russell 2000 Value Index is an unmanaged measure of performance of those Russell 2000 companies that have lower price-to-book ratios and lower forecasted growth values.

2 Inception of Class A shares is 5/2/2005. Inception of Class B shares is 4/28/2008. Index returns are based on an inception date of 5/2/2005.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Rite Aid Corp.      1.2   
Helix Energy Solutions Group, Inc.      1.1   
Portland General Electric Co.      1.1   
Worthington Industries, Inc.      1.1   
Universal Corp.      1.0   
Ocwen Financial Corp.      1.0   
DCT Industrial Trust, Inc.      0.9   
Redwood Trust, Inc.      0.9   
Anworth Mortgage Asset Corp.      0.9   
Capstead Mortgage Corp.      0.9   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Financials      35.0   
Industrials      14.5   
Information Technology      13.0   
Consumer Discretionary      11.9   
Utilities      6.1   
Energy      5.6   
Materials      5.0   
Health Care      4.4   
Consumer Staples      3.7   
Telecommunication Services      0.6   

 

MIST-3

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

JPMorgan Small Cap Value Portfolio
(formerly, Dreman Small Cap Value Portfolio)

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.76 %     $ 1,000.00         $ 1,132.60         $ 4.02   
   Hypothetical*      0.76 %     $ 1,000.00         $ 1,021.03         $ 3.81   

Class B(a)

    Actual      1.01 %     $ 1,000.00         $ 1,130.90         $ 5.34   
   Hypothetical*      1.01 %     $ 1,000.00         $ 1,019.79         $ 5.06   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—96.2% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.8%

    

AAR Corp.

     21,100      $ 463,778   

API Technologies Corp. (a)

     3,900        10,920   

Engility Holdings, Inc. (a)

     20,066        570,276   

GenCorp, Inc. (a)

     260,500        4,235,730   
   

 

 

  
      5,280,704   
   

 

 

  

Airlines—1.3%

    

Alaska Air Group, Inc. (a)

     19,000        988,000   

Republic Airways Holdings, Inc. (a)

     425,900        4,825,447   

SkyWest, Inc.

     151,400        2,049,956   

U.S. Airways Group, Inc. (a)

     55,700        914,594   
   

 

 

  
      8,777,997   
   

 

 

  

Auto Components—0.5%

    

Cooper Tire & Rubber Co.

     13,400        444,478   

Dana Holding Corp.

     37,300        718,398   

Stoneridge, Inc. (a)

     14,800        172,272   

Superior Industries International, Inc.

     108,100        1,860,401   
   

 

 

  
      3,195,549   
   

 

 

  

Biotechnology—1.5%

    

Achillion Pharmaceuticals, Inc. (a)

     8,900        72,802   

Clovis Oncology, Inc. (a)

     39,700        2,659,106   

Durata Therapeutics, Inc. (a)

     24,200        174,240   

Esperion Therapeutics, Inc. (a)

     30,600        431,460   

Insmed, Inc. (a)

     123,600        1,478,256   

InterMune, Inc. (a)

     52,500        505,050   

Lexicon Pharmaceuticals, Inc. (a)

     253,751        550,640   

MiMedx Group, Inc. (a)

     1,300        9,178   

Oncothyreon, Inc. (a)

     628,843        980,995   

PDL BioPharma, Inc.

     287,400        2,218,728   

Receptos, Inc. (a)

     65,700        1,306,773   

Stemline Therapeutics, Inc. (a)

     300        7,152   
   

 

 

  
      10,394,380   
   

 

 

  

Building Products—1.0%

    

Gibraltar Industries, Inc. (a)

     148,500        2,162,160   

NCI Building Systems, Inc. (a)

     115,336        1,763,487   

PGT, Inc. (a)

     208,200        1,805,094   

Ply Gem Holdings, Inc. (a)

     21,400        429,284   

Trex Co., Inc. (a)

     16,600        788,334   
   

 

 

  
      6,948,359   
   

 

 

  

Capital Markets—1.4%

    

Apollo Investment Corp.

     105,800        818,892   

Arlington Asset Investment Corp. - Class A

     48,800        1,304,912   

Artisan Partners Asset Management, Inc. (a)

     8,300        414,253   

Cowen Group, Inc. - Class A (a)

     41,900        121,510   

GAMCO Investors, Inc. - Class A

     16,385        907,893   

Gladstone Capital Corp.

     100,740        823,046   

Investment Technology Group, Inc. (a)

     172,600        2,412,948   

Janus Capital Group, Inc.

     30,100        256,151   

MCG Capital Corp.

     169,900        885,179   

MVC Capital, Inc.

     29,100        366,369   

NGP Capital Resources Co.

     48,500        297,305   

Capital Markets—(Continued)

    

Oppenheimer Holdings, Inc. - Class A

     25,409      $ 483,787   

Piper Jaffray Cos. (a)

     21,900        692,259   
   

 

 

  
      9,784,504   
   

 

 

  

Chemicals—1.2%

  

Axiall Corp.

     14,600        621,668   

Minerals Technologies, Inc.

     115,000        4,754,100   

Tredegar Corp.

     109,825        2,822,503   
   

 

 

  
      8,198,271   
   

 

 

  

Commercial Banks—12.1%

  

1st Source Corp.

     45,701        1,085,856   

1st United Bancorp, Inc.

     3,400        22,848   

American National Bankshares, Inc.

     1,400        32,536   

Bancfirst Corp.

     34,600        1,610,630   

BancorpSouth, Inc.

     175,500        3,106,350   

Bank of Hawaii Corp.

     76,800        3,864,576   

Banner Corp.

     28,800        973,152   

BBCN Bancorp, Inc.

     62,600        890,172   

Bridge Capital Holdings (a)

     600        9,516   

Cascade Bancorp (a)

     11,294        70,136   

Cathay General Bancorp

     97,200        1,978,020   

Center Bancorp, Inc.

     10,906        138,397   

Central Pacific Financial Corp. (a)

     104,801        1,886,418   

Century Bancorp, Inc. - Class A

     4,000        140,000   

Chemical Financial Corp.

     34,500        896,655   

Citizens & Northern Corp.

     9,700        187,404   

City Holding Co.

     82,509        3,213,725   

CoBiz Financial, Inc.

     47,140        391,262   

Columbia Banking System, Inc.

     25,000        595,250   

Community Bank System, Inc.

     63,900        1,971,315   

Community Trust Bancorp, Inc.

     52,424        1,867,343   

Financial Institutions, Inc.

     33,499        616,717   

First Bancorp

     40,900        395,574   

First Busey Corp.

     103,700        466,650   

First Citizens BancShares, Inc. - Class A

     3,900        748,995   

First Commonwealth Financial Corp.

     621,900        4,583,403   

First Community Bancshares, Inc.

     21,500        337,120   

First Financial Bankshares, Inc.

     17,700        985,182   

First Interstate Bancsystem, Inc.

     55,000        1,140,150   

First Merchants Corp.

     20,700        355,005   

FirstMerit Corp.

     207,300        4,152,219   

FNB Corp.

     218,800        2,643,104   

Glacier Bancorp, Inc.

     26,300        583,597   

Great Southern Bancorp, Inc.

     17,600        474,496   

Guaranty Bancorp

     1,800        20,430   

Hancock Holding Co.

     39,400        1,184,758   

Heartland Financial USA, Inc.

     26,083        717,022   

Hudson Valley Holding Corp.

     25,232        428,439   

Lakeland Bancorp, Inc.

     28,100        293,083   

Lakeland Financial Corp.

     12,500        346,875   

MainSource Financial Group, Inc.

     134,704        1,809,075   

MB Financial, Inc.

     56,600        1,516,880   

Metro Bancorp, Inc. (a)

     26,500        530,795   

MetroCorp Bancshares, Inc.

     26,762        261,197   

OFG Bancorp

     264,045        4,781,855   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Commercial Banks—(Continued)

  

OmniAmerican Bancorp, Inc. (a)

     18,144      $ 399,712   

Pacific Continental Corp.

     21,885        258,243   

PacWest Bancorp

     73,400        2,249,710   

Preferred Bank (a)

     4,000        65,920   

Republic Bancorp, Inc .- Class A

     1,100        24,112   

S&T Bancorp, Inc.

     10,700        209,720   

Seacoast Banking Corp. of Florida (a)

     14,400        31,680   

Sierra Bancorp

     9,000        133,200   

Simmons First National Corp. - Class A

     24,700        644,423   

Southside Bancshares, Inc.

     6,200        148,056   

StellarOne Corp.

     17,300        339,945   

Sterling Financial Corp.

     96,200        2,287,636   

Suffolk Bancorp (a)

     8,600        140,524   

Susquehanna Bancshares, Inc.

     183,800        2,361,830   

SVB Financial Group (a)

     26,400        2,199,648   

SY Bancorp, Inc.

     2,000        49,060   

TCF Financial Corp.

     207,200        2,938,096   

Tompkins Financial Corp.

     18,859        852,238   

Tristate Capital Holdings, Inc. (a)

     41,100        565,125   

Trustmark Corp.

     67,900        1,668,982   

UMB Financial Corp.

     87,700        4,882,259   

Umpqua Holdings Corp.

     33,600        504,336   

Union First Market Bankshares Corp.

     89,000        1,832,510   

Univest Corp. of Pennsylvania

     1,500        28,605   

Valley National Bancorp

     29,900        283,153   

Washington Trust Bancorp, Inc.

     17,600        501,952   

Webster Financial Corp.

     52,900        1,358,472   

West Bancorp, Inc.

     6,220        73,085   

Westamerica Bancorp

     35,300        1,612,857   

Wilshire Bancorp, Inc.

     194,600        1,288,252   
   

 

 

  
      84,237,523   
   

 

 

  

Commercial Services & Supplies—3.2%

    

ABM Industries, Inc.

     7,800        191,178   

ARC Document Solutions, Inc. (a)

     224,128        896,512   

Cenveo, Inc. (a)

     884,807        1,884,639   

Consolidated Graphics, Inc. (a)

     50,661        2,381,573   

Courier Corp.

     18,700        267,036   

G&K Services, Inc. - Class A

     51,400        2,446,640   

HNI Corp.

     55,400        1,998,278   

Quad/Graphics, Inc.

     236,307        5,694,999   

Steelcase, Inc. - Class A

     118,300        1,724,814   

United Stationers, Inc.

     142,100        4,767,455   
   

 

 

  
      22,253,124   
   

 

 

  

Communications Equipment—2.0%

    

ARRIS Group, Inc. (a)

     248,000        3,558,800   

Aviat Networks, Inc. (a)

     189,000        495,180   

Bel Fuse, Inc. - Class B

     34,172        459,613   

Black Box Corp.

     50,792        1,286,054   

Calix, Inc. (a)

     39,400        397,940   

Comtech Telecommunications Corp.

     214,382        5,764,732   

Oplink Communications, Inc. (a)

     15,738        273,369   

Symmetricom, Inc. (a)

     103,400        464,266   

Tellabs, Inc.

     640,800        1,268,784   
   

 

 

  
      13,968,738   
   

 

 

  

Computers & Peripherals—0.4%

    

Avid Technology, Inc. (a)

     172,484      $ 1,014,206   

Hutchinson Technology, Inc. (a)

     700        3,311   

QLogic Corp. (a)

     190,400        1,820,224   

STEC, Inc. (a)

     26,100        175,392   
   

 

 

  
      3,013,133   
   

 

 

  

Construction & Engineering—1.3%

    

Argan, Inc.

     73,310        1,143,636   

Comfort Systems USA, Inc.

     66,400        990,688   

EMCOR Group, Inc.

     143,100        5,817,015   

Michael Baker Corp.

     38,579        1,045,877   

Orion Marine Group, Inc. (a)

     21,000        253,890   
   

 

 

  
      9,251,106   
   

 

 

  

Construction Materials—0.0%

  

Headwaters, Inc. (a)

     24,700        218,348   
   

 

 

  

Consumer Finance—1.4%

  

DFC Global Corp. (a)

     130,600        1,803,586   

Green Dot Corp. - Class A (a)

     15,600        311,220   

Nelnet, Inc. - Class A

     51,800        1,869,462   

World Acceptance Corp. (a)

     68,800        5,981,472   
   

 

 

  
      9,965,740   
   

 

 

  

Containers & Packaging—0.5%

  

Graphic Packaging Holding Co. (a)

     296,500        2,294,910   

Myers Industries, Inc.

     77,100        1,157,271   
   

 

 

  
      3,452,181   
   

 

 

  

Diversified Consumer Services—1.0%

  

Corinthian Colleges, Inc. (a)

     300,000        672,000   

Lincoln Educational Services Corp.

     116,464        613,765   

Regis Corp.

     205,400        3,372,668   

Stewart Enterprises, Inc. - Class A

     184,400        2,413,796   
   

 

 

  
      7,072,229   
   

 

 

  

Diversified Financial Services—0.6%

  

Marlin Business Services Corp.

     58,774        1,338,872   

PHH Corp. (a)

     132,300        2,696,274   

Resource America, Inc. - Class A

     14,568        123,828   
   

 

 

  
      4,158,974   
   

 

 

  

Diversified Telecommunication Services—0.5%

  

Fairpoint Communications, Inc. (a)

     3,300        27,555   

magicJack VocalTec, Ltd. (a)

     215,797        3,062,159   

Neutral Tandem, Inc.

     71,800        412,850   

Vonage Holdings Corp. (a)

     44,700        126,501   
   

 

 

  
      3,629,065   
   

 

 

  

Electric Utilities—2.4%

  

El Paso Electric Co.

     139,205        4,915,329   

PNM Resources, Inc.

     67,100        1,488,949   

Portland General Electric Co.

     243,400        7,445,606   

Unitil Corp.

     24,400        704,672   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Electric Utilities—(Continued)

  

UNS Energy Corp.

     47,600      $ 2,129,148   
   

 

 

  
      16,683,704   
   

 

 

  

Electrical Equipment—0.3%

  

LSI Industries, Inc.

     111,565        902,561   

Powell Industries, Inc. (a)

     22,400        1,156,960   
   

 

 

  
      2,059,521   
   

 

 

  

Electronic Equipment, Instruments & Components—2.7%

  

Aeroflex Holding Corp. (a)

     185,500        1,463,595   

Agilysys, Inc. (a)

     46,758        527,898   

Anixter International, Inc. (a)

     8,300        629,223   

Audience, Inc. (a)

     22,600        298,546   

Checkpoint Systems, Inc. (a)

     108,700        1,542,453   

Cognex Corp.

     51,400        2,324,308   

Coherent, Inc.

     45,100        2,483,657   

Electro Scientific Industries, Inc.

     31,200        335,712   

Newport Corp. (a)

     73,600        1,025,248   

Park Electrochemical Corp.

     49,500        1,188,495   

Power-One, Inc. (a)

     325,409        2,056,585   

RealD, Inc. (a)

     13,500        187,650   

Richardson Electronics, Ltd.

     28,200        331,068   

Tech Data Corp. (a)

     37,400        1,761,166   

TTM Technologies, Inc. (a)

     181,100        1,521,240   

Vishay Intertechnology, Inc. (a)

     67,000        930,630   
   

 

 

  
      18,607,474   
   

 

 

  

Energy Equipment & Services—2.7%

  

Cal Dive International, Inc. (a)

     402,300        756,324   

Dawson Geophysical Co. (a)

     31,962        1,178,119   

Exterran Holdings, Inc. (a)

     114,600        3,222,552   

Global Geophysical Services, Inc. (a)

     12,500        59,000   

Helix Energy Solutions Group, Inc. (a)

     345,800        7,967,232   

Hercules Offshore, Inc. (a)

     355,500        2,502,720   

Key Energy Services, Inc. (a)

     23,300        138,635   

Natural Gas Services Group, Inc. (a)

     29,937        703,220   

Parker Drilling Co. (a)

     146,800        731,064   

Pioneer Energy Services Corp. (a)

     28,600        189,332   

SEACOR Holdings, Inc.

     16,534        1,373,149   

Tesco Corp. (a)

     15,600        206,700   
   

 

 

  
      19,028,047   
   

 

 

  

Food & Staples Retailing—1.7%

  

Fairway Group Holdings Corp. (a)

     22,800        551,076   

Nash Finch Co.

     6,500        143,065   

Pantry, Inc. (The) (a)

     4,600        56,028   

Rite Aid Corp. (a)

     2,875,400        8,223,644   

Roundy’s, Inc.

     20,400        169,932   

Spartan Stores, Inc.

     40,000        737,600   

SUPERVALU, Inc. (a)

     317,600        1,975,472   
   

 

 

  
      11,856,817   
   

 

 

  

Food Products—0.3%

  

Farmer Bros Co. (a)

     12,300        172,938   

John B Sanfilippo & Son, Inc.

     1,500        30,240   

Food Products—(Continued)

  

Pinnacle Foods, Inc.

     71,300      $ 1,721,895   

Seneca Foods Corp. - Class A (a)

     10,300        316,004   
   

 

 

  
      2,241,077   
   

 

 

  

Gas Utilities—1.7%

  

AGL Resources, Inc.

     39,800        1,705,828   

Chesapeake Utilities Corp.

     9,700        499,453   

Laclede Group, Inc. (The)

     120,639        5,508,377   

New Jersey Resources Corp.

     1,700        70,601   

Piedmont Natural Gas Co., Inc.

     21,500        725,410   

Southwest Gas Corp.

     70,600        3,303,374   
   

 

 

  
      11,813,043   
   

 

 

  

Health Care Equipment & Supplies—0.9%

  

Greatbatch, Inc. (a)

     40,900        1,341,111   

Medical Action Industries, Inc. (a)

     16,767        129,106   

NuVasive, Inc. (a)

     83,200        2,062,528   

SurModics, Inc. (a)

     103,286        2,066,753   

Symmetry Medical, Inc. (a)

     73,300        617,186   
   

 

 

  
      6,216,684   
   

 

 

  

Health Care Providers & Services—1.5%

  

Amedisys, Inc. (a)

     100,000        1,162,000   

Gentiva Health Services, Inc. (a)

     32,000        318,720   

HealthSouth Corp. (a)

     44,900        1,293,120   

Magellan Health Services, Inc. (a)

     37,700        2,114,216   

Molina Healthcare, Inc. (a)

     78,500        2,918,630   

Providence Service Corp. (The) (a)

     20,900        607,981   

Skilled Healthcare Group, Inc. - Class A (a)

     164,621        1,099,668   

Triple-S Management Corp. - Class B (a)

     41,000        880,270   
   

 

 

  
      10,394,605   
   

 

 

  

Health Care Technology—0.1%

  

MedAssets, Inc. (a)

     52,500        931,350   
   

 

 

  

Hotels, Restaurants & Leisure—1.7%

  

Biglari Holdings, Inc. (a)

     8,621        3,538,058   

Einstein Noah Restaurant Group, Inc.

     28,022        397,912   

Isle of Capri Casinos, Inc. (a)

     129,141        968,558   

Multimedia Games Holding Co., Inc. (a)

     18,600        484,902   

Red Robin Gourmet Burgers, Inc. (a)

     20,800        1,147,744   

Ruth’s Hospitality Group, Inc.

     128,500        1,550,995   

Scientific Games Corp. - Class A (a)

     15,100        169,875   

SeaWorld Entertainment, Inc.

     94,900        3,330,990   

Town Sports International Holdings, Inc.

     12,800        137,856   
   

 

 

  
      11,726,890   
   

 

 

  

Household Durables—1.5%

  

American Greetings Corp. - Class A

     102,300        1,863,906   

Blyth, Inc.

     73,300        1,023,268   

CSS Industries, Inc.

     40,851        1,018,415   

Leggett & Platt, Inc.

     66,400        2,064,376   

Lifetime Brands, Inc.

     600        8,148   

NACCO Industries, Inc. - Class A

     16,200        927,936   

Taylor Morrison Home Corp. - Class A (a)

     121,100        2,952,418   

William Lyon Homes - Class A (a)

     31,900        804,199   
   

 

 

  
      10,662,666   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Household Products—0.5%

    

Central Garden and Pet Co. - Class A (a)

     456,800      $ 3,151,920   
   

 

 

  

Independent Power Producers & Energy Traders—0.2%

  

Atlantic Power Corp.

     74,100        291,954   

NRG Energy, Inc.

     46,500        1,241,550   
   

 

 

  
      1,533,504   
   

 

 

  

Insurance—4.9%

    

American Equity Investment Life Holding Co.

     311,800        4,895,260   

American Safety Insurance Holdings, Ltd. (a)

     21,551        623,901   

Arch Capital Group, Ltd. (a)

     27,800        1,429,198   

Argo Group International Holdings, Ltd.

     49,240        2,087,284   

CNO Financial Group, Inc.

     352,100        4,563,216   

Global Indemnity plc (a)

     6,000        141,300   

Hallmark Financial Services, Inc. (a)

     35,721        326,490   

Horace Mann Educators Corp.

     147,811        3,603,632   

Meadowbrook Insurance Group, Inc.

     49,100        394,273   

Platinum Underwriters Holdings, Ltd.

     96,800        5,538,896   

Primerica, Inc.

     51,000        1,909,440   

ProAssurance Corp.

     89,700        4,678,752   

StanCorp Financial Group, Inc.

     30,200        1,492,182   

Stewart Information Services Corp.

     10,500        274,995   

Symetra Financial Corp.

     148,500        2,374,515   
   

 

 

  
      34,333,334   
   

 

 

  

Internet & Catalog Retail—0.3%

  

Orbitz Worldwide, Inc. (a)

     222,400        1,785,872   
   

 

 

  

Internet Software & Services—1.7%

  

Digital River, Inc. (a)

     130,500        2,449,485   

Gogo, Inc. (a)

     42,500        593,725   

IntraLinks Holdings, Inc. (a)

     295,048        2,142,048   

Marketo, Inc. (a)

     7,800        193,986   

Monster Worldwide, Inc. (a)

     43,400        213,094   

QuinStreet, Inc. (a)

     69,400        598,922   

Textura Corp. (a)

     10,000        260,100   

Tremor Video, Inc. (a)

     261,900        2,357,100   

WebMD Health Corp. (a)

     68,400        2,008,908   

XO Group, Inc. (a)

     49,400        553,280   

Xoom Corp. (a)

     6,700        153,564   
   

 

 

  
      11,524,212   
   

 

 

  

IT Services—1.8%

  

Blackhawk Network Holdings, Inc. (a)

     16,200        375,840   

CACI International, Inc. - Class A (a)

     42,500        2,698,325   

Convergys Corp.

     82,900        1,444,947   

CSG Systems International, Inc. (a)

     112,600        2,443,420   

Euronet Worldwide, Inc. (a)

     57,200        1,822,392   

EVERTEC, Inc. (a)

     16,600        364,702   

Global Cash Access Holdings, Inc. (a)

     149,500        935,870   

Unisys Corp. (a)

     65,200        1,438,964   

Vantiv, Inc. - Class A (a)

     38,000        1,048,800   
   

 

 

  
      12,573,260   
   

 

 

  

Leisure Equipment & Products—0.2%

  

JAKKS Pacific, Inc.

     115,900      $ 1,303,875   
   

 

 

  

Life Sciences Tools & Services—0.1%

  

NanoString Technologies, Inc. (a)

     98,700        789,600   
   

 

 

  

Machinery—3.2%

  

AGCO Corp.

     44,600        2,238,474   

Ampco-Pittsburgh Corp.

     3,400        63,818   

Briggs & Stratton Corp.

     133,400        2,641,320   

Douglas Dynamics, Inc.

     140,242        1,820,341   

Federal Signal Corp. (a)

     94,900        830,375   

FreightCar America, Inc.

     192,449        3,269,709   

Global Brass & Copper Holdings, Inc. (a)

     49,200        651,408   

Hurco Cos., Inc.

     34,682        997,801   

Hyster-Yale Materials Handling, Inc.

     32,400        2,034,396   

Kadant, Inc.

     60,007        1,810,411   

Kaydon Corp.

     9,100        250,705   

Lydall, Inc. (a)

     3,200        46,720   

Mueller Industries, Inc.

     32,700        1,649,061   

Mueller Water Products, Inc. - Class A

     136,200        941,142   

Standex International Corp.

     42,057        2,218,507   

Watts Water Technologies, Inc. - Class A

     10,000        453,400   
   

 

 

  
      21,917,588   
   

 

 

  

Marine—0.1%

  

International Shipholding Corp.

     26,036        607,420   
   

 

 

  

Media—2.1%

  

Digital Generation, Inc. (a)

     114,800        846,076   

Entercom Communications Corp. - Class A (a)

     116,460        1,099,382   

Journal Communications, Inc. - Class A (a)

     161,947        1,212,983   

LIN TV Corp. - Class A (a)

     223,800        3,424,140   

McClatchy Co. (The) - Class A (a)

     169,700        386,916   

Nexstar Broadcasting Group, Inc. - Class A

     21,900        776,574   

Saga Communications, Inc. - Class A

     4,335        199,020   

Scholastic Corp.

     51,065        1,495,694   

Sinclair Broadcast Group, Inc. - Class A

     124,600        3,660,748   

Valassis Communications, Inc.

     49,800        1,224,582   
   

 

 

  
      14,326,115   
   

 

 

  

Metals & Mining—1.6%

  

Coeur Mining, Inc. (a)

     195,000        2,593,500   

Olympic Steel, Inc.

     6,700        164,150   

Schnitzer Steel Industries, Inc. - Class A

     19,000        444,220   

SunCoke Energy, Inc. (a)

     24,900        349,098   

Walter Energy, Inc.

     16,200        168,480   

Worthington Industries, Inc.

     230,400        7,305,984   
   

 

 

  
      11,025,432   
   

 

 

  

Multi-Utilities—1.4%

  

Avista Corp.

     161,500        4,363,730   

NorthWestern Corp.

     132,683        5,294,052   
   

 

 

  
      9,657,782   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Multiline Retail—1.1%

  

Bon-Ton Stores, Inc. (The)

     168,954      $ 3,049,620   

Dillard’s, Inc. - Class A

     58,200        4,770,654   
   

 

 

  
      7,820,274   
   

 

 

  

Oil, Gas & Consumable Fuels—2.7%

  

Alon USA Energy, Inc.

     23,100        334,026   

Alpha Natural Resources, Inc. (a)

     250,300        1,311,572   

Arch Coal, Inc.

     154,300        583,254   

Delek U.S. Holdings, Inc.

     3,700        106,486   

EPL Oil & Gas, Inc. (a)

     134,300        3,943,048   

Equal Energy, Ltd.

     8,300        33,532   

Forest Oil Corp. (a)

     411,100        1,681,399   

Frontline, Ltd. (a)

     25,600        45,312   

Green Plains Renewable Energy, Inc. (a)

     21,500        286,380   

Knightsbridge Tankers, Ltd.

     10,800        79,488   

Panhandle Oil and Gas, Inc. - Class A

     7,106        202,521   

Penn Virginia Corp. (a)

     345,300        1,622,910   

PetroQuest Energy, Inc. (a)

     263,900        1,045,044   

REX American Resources Corp. (a)

     17,400        500,598   

Stone Energy Corp. (a)

     77,900        1,716,137   

W&T Offshore, Inc.

     129,900        1,856,271   

Western Refining, Inc.

     109,300        3,068,051   
   

 

 

  
      18,416,029   
   

 

 

  

Paper & Forest Products—1.6%

  

Buckeye Technologies, Inc.

     31,900        1,181,576   

Domtar Corp.

     29,700        1,975,050   

Neenah Paper, Inc.

     32,500        1,032,525   

PH Glatfelter Co.

     187,100        4,696,210   

Resolute Forest Products, Inc. (a)

     123,100        1,621,227   

Schweitzer-Mauduit International, Inc.

     8,400        418,992   
   

 

 

  
      10,925,580   
   

 

 

  

Pharmaceuticals—0.1%

  

Cornerstone Therapeutics, Inc. (a)

     8,000        64,000   

ViroPharma, Inc. (a)

     32,100        919,665   
   

 

 

  
      983,665   
   

 

 

  

Professional Services—0.8%

  

Barrett Business Services, Inc.

     99,260        5,182,365   

CDI Corp.

     600        8,496   

VSE Corp.

     7,000        287,490   
   

 

 

  
      5,478,351   
   

 

 

  

Real Estate Investment Trusts—11.6%

  

Anworth Mortgage Asset Corp.

     1,111,566        6,224,769   

Apartment Investment & Management Co. - Class A

     92,400        2,775,696   

Ashford Hospitality Trust, Inc.

     306,995        3,515,093   

Capstead Mortgage Corp.

     507,658        6,142,662   

CBL & Associates Properties, Inc.

     196,400        4,206,888   

Colonial Properties Trust

     19,400        467,928   

Coresite Realty Corp.

     156,200        4,968,722   

CubeSmart

     257,500        4,114,850   

CYS Investments, Inc.

     244,300        2,250,003   

Real Estate Investment Trusts—(Continued)

  

DCT Industrial Trust, Inc.

     892,600      $ 6,382,090   

DiamondRock Hospitality Co.

     150,100        1,398,932   

EPR Properties

     35,400        1,779,558   

FelCor Lodging Trust, Inc. (a)

     333,769        1,972,575   

First Industrial Realty Trust, Inc.

     59,800        907,166   

First Potomac Realty Trust

     28,100        366,986   

Getty Realty Corp.

     39,136        808,158   

Home Properties, Inc.

     30,900        2,019,933   

Hospitality Properties Trust

     74,900        1,968,372   

LaSalle Hotel Properties

     37,700        931,190   

Lexington Realty Trust

     130,600        1,525,408   

LTC Properties, Inc.

     46,400        1,811,920   

Parkway Properties, Inc.

     71,300        1,194,988   

Pennsylvania Real Estate Investment Trust

     107,300        2,025,824   

Potlatch Corp.

     142,400        5,758,656   

PS Business Parks, Inc.

     16,800        1,212,456   

RAIT Financial Trust

     456,600        3,433,632   

Redwood Trust, Inc.

     366,800        6,235,600   

Strategic Hotels & Resorts, Inc. (a)

     33,300        295,038   

Sunstone Hotel Investors, Inc. (a)

     203,000        2,452,240   

Taubman Centers, Inc.

     6,300        473,445   

Washington Real Estate Investment Trust

     26,800        721,188   
   

 

 

  
      80,341,966   
   

 

 

  

Real Estate Management & Development—0.3%

  

Alexander & Baldwin, Inc. (a)

     12,239        486,500   

Forestar Group, Inc. (a)

     72,300        1,450,338   
   

 

 

  
      1,936,838   
   

 

 

  

Road & Rail—1.1%

  

Amerco, Inc.

     2,100        339,990   

Arkansas Best Corp.

     51,739        1,187,410   

Celadon Group, Inc.

     24,000        438,000   

Heartland Express, Inc.

     19,500        270,465   

Saia, Inc. (a)

     175,296        5,253,621   
   

 

 

  
      7,489,486   
   

 

 

  

Semiconductors & Semiconductor Equipment—2.8%

  

Advanced Energy Industries, Inc. (a)

     311,500        5,423,215   

Amkor Technology, Inc. (a)

     95,300        401,213   

Brooks Automation, Inc.

     46,700        454,391   

DSP Group, Inc. (a)

     124,699        1,036,249   

Entropic Communications, Inc. (a)

     38,200        163,114   

First Solar, Inc. (a)

     48,400        2,164,932   

GSI Technology, Inc. (a)

     32,300        204,136   

GT Advanced Technologies, Inc. (a)

     26,200        108,730   

Integrated Device Technology, Inc. (a)

     35,700        283,458   

Intermolecular, Inc. (a)

     10,300        74,881   

IXYS Corp.

     29,700        328,482   

LTX-Credence Corp. (a)

     299,139        1,791,843   

Pericom Semiconductor Corp. (a)

     38,700        275,544   

Photronics, Inc. (a)

     144,400        1,163,864   

Rudolph Technologies, Inc. (a)

     39,200        439,040   

Spansion, Inc. - Class A (a)

     360,900        4,518,468   

STR Holdings, Inc. (a)

     92,991        211,089   

Supertex, Inc.

     21,795        521,118   
   

 

 

  
      19,563,767   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description  

Shares

     Value  

Software—1.1%

  

Aspen Technology, Inc. (a)

     79,000      $ 2,274,410   

Cyan, Inc. (a)

     60,500        632,225   

Fair Isaac Corp.

     30,200        1,384,066   

Gigamon, Inc. (a)

     22,400        617,344   

Infoblox, Inc. (a)

     13,200        386,232   

Rosetta Stone, Inc. (a)

     23,100        340,494   

Tableau Software, Inc. - Class A (a)

     23,900        1,324,538   

Telenav, Inc. (a)

     89,800        469,654   
   

 

 

  
      7,428,963   
   

 

 

  

Specialty Retail—1.9%

  

Brown Shoe Co., Inc.

     84,200        1,812,826   

Children’s Place Retail Stores, Inc. (The) (a)

     12,500        685,000   

Conn’s, Inc. (a)

     11,000        569,360   

hhgregg, Inc. (a)

     39,500        630,815   

New York & Co., Inc. (a)

     75,300        478,155   

Office Depot, Inc. (a)

     803,000        3,107,610   

OfficeMax, Inc.

     393,600        4,026,528   

Stein Mart, Inc.

     74,856        1,021,784   

Wet Seal, Inc. (The) - Class A (a)

     203,500        958,485   
   

 

 

  
      13,290,563   
   

 

 

  

Textiles, Apparel & Luxury Goods—1.2%

  

Cherokee, Inc.

     52,800        674,784   

Iconix Brand Group, Inc. (a)

     122,700        3,608,607   

Jones Group, Inc. (The)

     107,700        1,480,875   

Perry Ellis International, Inc.

     38,233        776,512   

Unifi, Inc. (a)

     75,681        1,564,327   
   

 

 

  
      8,105,105   
   

 

 

  

Thrifts & Mortgage Finance—1.3%

  

BankFinancial Corp.

     8,485        72,123   

Beneficial Mutual Bancorp, Inc. (a)

     47,100        395,640   

Charter Financial Corp.

     5,700        57,456   

ESB Financial Corp.

     11,500        139,495   

Fox Chase Bancorp, Inc.

     2,000        34,000   

Kearny Financial Corp. (a)

     4,000        41,960   

OceanFirst Financial Corp.

     27,000        419,850   

Ocwen Financial Corp. (a)

     160,500        6,615,810   

PennyMac Financial Services, Inc. - Class A (a)

     11,200        238,224   

Rockville Financial, Inc.

     46,400        606,912   

Westfield Financial, Inc.

     9,800        68,600   

WSFS Financial Corp.

     12,265        642,563   
   

 

 

  
      9,332,633   
   

 

 

  

Tobacco—1.1%

  

Alliance One International, Inc. (a)

     99,900        379,620   

Universal Corp.

     122,467        7,084,716   
   

 

 

  
      7,464,336   
   

 

 

  

Trading Companies & Distributors—1.0%

  

Aircastle, Ltd.

     77,000        1,231,230   

Applied Industrial Technologies, Inc.

     115,898        5,601,350   
   

 

 

  
      6,832,580   
   

 

 

  

Water Utilities—0.1%

  

California Water Service Group

     30,200      $ 589,202   

Consolidated Water Co., Ltd.

     27,000        308,610   
   

 

 

  
      897,812   
   

 

 

  

Wireless Telecommunication Services—0.1%

  

Leap Wireless International, Inc. (a)

     82,200        553,206   

USA Mobility, Inc.

     8,700        118,059   
   

 

 

  
      671,265   
   

 

 

  

Total Common Stocks
(Cost $632,296,187)

       667,530,930   
   

 

 

  
U.S. Treasury & Government Agencies—0.2%   

U.S. Treasury—0.2%

  

U.S. Treasury Notes
0.250%, 11/30/13 (b)
(Cost $1,010,893)

     1,010,000        1,010,592   
   

 

 

  
Short-Term Investment—1.1%   

Repurchase Agreement—1.1%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $7,700,006 on 07/01/13, collateralized by $8,005,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $7,854,906.

     7,700,000        7,700,000   
   

 

 

  

Total Short-Term Investment
(Cost $7,700,000)

       7,700,000   
   

 

 

  

Total Investments—97.5%
(Cost $641,007,080) (c)

       676,241,522   

Other assets and liabilities (net)—2.5%

       17,636,919   
   

 

 

  
Net Assets—100.0%     $ 693,878,441   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was pledged as collateral against open futures contracts. As of June 30, 2013, the market value of securities pledged was $895,524.
(c) As of June 30, 2013, the aggregate cost of investments was $641,007,080. The aggregate unrealized appreciation and depreciation of investments were $56,074,735 and $(20,840,293), respectively, resulting in net unrealized appreciation of $35,234,442.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		      Notional
Amount		      Unrealized
Appreciation		  

Russell 2000 Mini Index Futures

      09/20/13         243         USD         23,602,676       $ 82,534   
              

 

 

  

 

(USD)— United States Dollar

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  

Total Common Stocks*

    $ 667,530,930       $ —         $ —         $ 667,530,930   

Total U.S. Treasury & Government Agencies*

      —           1,010,592         —           1,010,592   

Total Short-Term Investment*

      —           7,700,000         —           7,700,000   

Total Investments

    $ 667,530,930       $ 8,710,592       $ —         $ 676,241,522   
                                     
Futures Contracts            

Futures Contracts (Unrealized Appreciation)

    $ 82,534       $ —         $ —         $ 82,534   

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 676,241,522   

Cash

      70,901   

Receivable for:

   

Investments sold

      35,424,082   

Fund shares sold

      169,990   

Dividends

      1,770,290   

Interest

      220   

Other assets

      370   
  

 

 

  

Total Assets

      713,677,375   

Liabilities

   

Payables for:

   

Investments purchased

      19,248,472   

Fund shares redeemed

      41,456   

Net variation margin on futures contracts

      3,446   

Accrued expenses:

   

Management fees

      392,035   

Distribution and service fees

      5,688   

Deferred trustees’ fees

      41,001   

Other expenses

      66,836   
  

 

 

  

Total Liabilities

      19,798,934   
  

 

 

  

Net Assets

    $ 693,878,441   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 595,016,687   

Undistributed net investment income

      3,357,453   

Accumulated net realized gain

      60,187,329   

Unrealized appreciation on investments, futures contracts and foreign currency transactions

      35,316,972   
  

 

 

  

Net Assets

    $ 693,878,441   
  

 

 

  

Net Assets

   

Class A

    $ 666,341,868   

Class B

      27,536,573   

Capital Shares Outstanding*

   

Class A

      39,332,759   

Class B

      1,634,827   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 16.94   

Class B

      16.84   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $641,007,080.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 5,295,359   

Interest

      1,267   

Securities lending income

      115,410   
  

 

 

  

Total investment income

      5,412,036   

Expenses

   

Management fees

      2,079,121   

Administration fees

      6,774   

Custodian and accounting fees

      23,374   

Distribution and service fees—Class B

      33,666   

Audit and tax services

      19,511   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      9,590   

Insurance

      1,204   

Miscellaneous

      3,625   
  

 

 

  

Total expenses

      2,199,988   

Less management fee waiver

      (140,610 ) 
  

 

 

  

Net expenses

      2,059,378   
  

 

 

  

Net Investment Income

      3,352,658   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      66,901,756   

Futures contracts

      953,338   
  

 

 

  

Net realized gain

      67,855,094   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (8,916,260 ) 

Futures contracts

      82,534   

Foreign currency transactions

      (4 ) 
  

 

 

  

Net change in unrealized depreciation

      (8,833,730 ) 
  

 

 

  

Net realized and unrealized gain

      59,021,364   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 62,374,022   
  

 

 

  

 

(a) Net of foreign withholding taxes of $5,517.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 3,352,658      $ 5,303,809   

Net realized gain

      67,855,094        8,305,379   

Net change in unrealized appreciation (depreciation)

      (8,833,730 )      39,248,938   
  

 

 

    

 

 

  

Increase in net assets from operations

      62,374,022        52,858,126   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (4,693,106 )      (2,879,129 ) 

Class B

      (137,094 )      (149,683 ) 
  

 

 

    

 

 

  

Total distributions

      (4,830,200 )      (3,028,812 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      233,583,075        28,365,767   
  

 

 

    

 

 

  

Total Increase in Net Assets

      291,126,897        78,195,081   

Net Assets

     

Beginning of period

      402,751,544        324,556,463   
  

 

 

    

 

 

  

End of period

    $ 693,878,441      $ 402,751,544   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 3,357,453      $ 4,834,995   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      16,383,181      $ 269,227,295        3,657,297      $ 52,046,512   

Reinvestments

      295,536        4,693,106        202,328        2,879,129   

Redemptions

      (2,379,820 )      (39,278,082 )      (1,864,981 )      (26,939,734 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      14,298,897      $ 234,642,319        1,994,644      $ 27,985,907   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      119,848      $ 1,976,516        272,559      $ 3,849,589   

Reinvestments

      8,677        137,094        10,571        149,683   

Redemptions

      (193,044 )      (3,172,854 )      (253,456 )      (3,619,412 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (64,519 )    $ (1,059,244 )      29,674      $ 379,860   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 233,583,075        $ 28,365,767   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 15.07      $ 13.14       $ 14.85       $ 12.52       $ 9.80       $ 13.57   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.10        0.21         0.15         0.18         0.11         0.14   

Net realized and unrealized gain (loss) on investments

      1.89        1.84         (1.62 )       2.26         2.70         (3.44 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.99        2.05         (1.47 )       2.44         2.81         (3.30 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.12 )      (0.12 )       (0.24 )       (0.11 )       (0.09 )       (0.10 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.37 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.12 )      (0.12 )       (0.24 )       (0.11 )       (0.09 )       (0.47 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 16.94      $ 15.07       $ 13.14       $ 14.85       $ 12.52       $ 9.80   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      13.26  (c)      15.66         (10.12 )       19.53         29.09         (25.22 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.81  (d)      0.84         0.85         0.87         0.89         0.86   

Net ratio of expenses to average net assets (%) (e)

      0.76  (d)      0.84         0.85         0.87         0.89         0.86   

Ratio of net investment income to average net assets (%)

      1.27  (d)      1.44         1.08         1.39         1.07         1.17   

Portfolio turnover rate (%)

      99  (c)      38         47         41         60         74   

Net assets, end of period (in millions)

    $ 666.3      $ 377.3       $ 302.8       $ 258.5       $ 209.4       $ 174.5   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008(f)  

Net Asset Value, Beginning of Period

    $ 14.97      $ 13.06       $ 14.78       $ 12.48       $ 9.79       $ 13.02   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.08        0.17         0.12         0.16         0.09         0.11   

Net realized and unrealized gain (loss) on investments

      1.87        1.83         (1.62 )       2.24         2.69         (3.34 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.95        2.00         (1.50 )       2.40         2.78         (3.23 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.08 )      (0.09 )       (0.22 )       (0.10 )       (0.09 )       0.00   

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         0.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.08 )      (0.09 )       (0.22 )       (0.10 )       (0.09 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 16.84      $ 14.97       $ 13.06       $ 14.78       $ 12.48       $ 9.79   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      13.09  (c)      15.36         (10.36 )       19.25         28.77         (24.81 )(c) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      1.06  (d)      1.09         1.10         1.12         1.14         1.16  (d) 

Net ratio of expenses to average net assets (%) (e)

      1.01  (d)      1.09         1.10         1.12         1.14         1.16  (d) 

Ratio of net investment income to average net assets (%)

      0.94  (d)      1.18         0.85         1.21         0.79         1.50  (d) 

Portfolio turnover rate (%)

      99  (c)      38         47         41         60         74   

Net assets, end of period (in millions)

    $ 27.5      $ 25.4       $ 21.8       $ 16.3       $ 7.3       $ 0.8   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(f) Commencement of operations was April 28, 2008.

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio) (the “Portfolio”), which is diversified. On April 29, 2013, JPMorgan Investment Management Inc. succeeded Dreman Value Management, LLC as the subadviser to the Portfolio and the name of the Portfolio was changed from the Dreman Small Cap Value Portfolio to the JPMorgan Small Cap Value Portfolio. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

 

MIST-15

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization

 

MIST-16

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to passive foreign investment companies (PFICs), and Real Estate Investment Trusts (REITs). These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $7,700,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of

 

MIST-17

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

  

Risk Exposure

   

Statement of Assets & Liabilities Location

    Fair Value  
Equity    Unrealized appreciation on futures contracts*    $     82,534   
     

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Equity  

Futures contracts

    $ 953,338   
  

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Equity  

Futures contracts

    $ 82,534   
  

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(a)		  

Futures contracts long

    $ 18,200   

 

  (a) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon

 

MIST-18

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 748,632,366       $ 0       $ 523,427,809   

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $23,930,524 in purchases of investments and $12,303,860 in sales of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with J.P. Morgan Investment Management, Inc. (“the Subadviser”) , effective April 29, 2013, for investment subadvisory services in connection with the investment management of the Portfolio. Prior to April 29, 2013, the Adviser had a subadvisory agreement with Dreman Value Management, LLC for investment advisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser

for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$2,079,121      0.800 %    First $100 million
     0.775 %    $100 million to $500 million
     0.750 %    $500 million to $1 billion
     0.725 %    Over $1 billion

 

MIST-19

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.050%    First $50 million
0.100%    $50 million to $500 million
0.075%    $500 million to $1 billion
0.050%    Over $1 billion

Prior to April 29, 2013 the Adviser had agreed, for the period January 1, 2013 to April 28, 2013, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.025%    First $100 million
0.025%    $300 million to $400 million
0.100%    $400 million to $500 million
0.075%    $500 million to $1 billion
0.050%    Over $1 billion

Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

 

MIST-20

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$3,028,812    $ 4,578,532       $ —       $ —       $ 3,028,812       $ 4,578,532   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed

Ordinary

Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$5,061,655    $ —       $ 41,503,139       $ (5,211,213 )    $ 41,353,581   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2017 were $5,211,213.

 

MIST-21

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Board of Trustees’ Consideration of Sub-Advisory Agreement

 

At an in-person meeting of the Board of Trustees (the “Board”) of the Met Investors Series Trust (the “Trust”) held on March 5-6, 2013, the Board, including a majority of the Trustees who are not considered to be “interested persons” of the Trust (the “Independent Trustees”) under the Investment Company Act of 1940, as amended, approved a new subadvisory agreement (the “New Subadvisory Agreement”) between MetLife Advisers, LLC (“MetLife Advisers”) and J.P. Morgan Investment Management Inc. (“JPMIM”) for the JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio) (the “Portfolio”). Representatives of management informed the Board that, if approved by the Board, the New Subadvisory Agreement would become effective on April 29, 2013.

In considering the New Subadvisory Agreement, the Board reviewed a variety of materials provided by MetLife Advisers and JPMIM relating to the Portfolio and JPMIM, including comparative performance, fee and expense information for an appropriate peer group of similar mutual funds, performance information for relevant benchmark indices and other information regarding the nature, extent and quality of services to be provided by JPMIM under the New Subadvisory Agreement.

The Independent Trustees were separately advised by independent legal counsel throughout the process. The Independent Trustees discussed the proposed approval of the New Subadvisory Agreement in a private session with their independent legal counsel at which no representatives of management were present.

In considering whether to approve the New Subadvisory Agreement with JPMIM with respect to the Portfolio, the Board reviewed and analyzed the factors it deemed relevant, including: (1) the nature, extent and quality of the services to be provided to the Portfolio by JPMIM; (2) the performance of the Portfolio and another fund subadvised by JPMIM (the “JPMIM Portfolio”), which is managed in substantially the same manner as the Portfolio would be managed, as compared to a peer group and an appropriate index; (3) JPMIM’s personnel and operations; (4) the financial condition of JPMIM; (5) the level and method of computing the Portfolio’s proposed subadvisory fee; (6) the anticipated profitability of JPMIM under the New Subadvisory Agreement; (7) any “fall-out” benefits that may accrue to JPMIM and its affiliates (i.e., ancillary benefits that may be realized by JPMIM or its affiliates from JPMIM’s relationship with the Trust); (8) the anticipated effect of growth in size on the Portfolio’s performance and expenses; (9) fees paid by comparable institutional and retail accounts; and (10) possible conflicts of interest.

Nature, extent and quality of services. In considering the nature, extent and quality of the services to be provided by JPMIM to the Portfolio, the Board considered information provided to the Board by JPMIM, including JPMIM’s Form ADV. The Board considered JPMIM’s current level of staffing and its overall resources, as well as its compensation program. The Board reviewed JPMIM’s history and investment experience, as well as information regarding the qualifications, background and responsibilities of JPMIM’s investment and compliance personnel who would be providing services to the Portfolio. The Board also considered, among other things, JPMIM’s compliance program and its disciplinary history. The Board noted JPMIM’s regulatory history, including whether it was currently involved in any regulatory actions or investigations as well as material litigation, and any settlements and ameliatory actions undertaken, as appropriate. The Board also noted that the Trust’s Chief Compliance Officer and his staff would be conducting regular, periodic compliance reviews with JPMIM and present reports to the Independent Trustees regarding the same. The compliance reviews would include an evaluation of the regulatory compliance system of JPMIM and procedures reasonably designed by JPMIM to assure compliance with the federal securities laws, including issues related to late trading and market timing, best execution, fair value pricing, and proxy voting procedures, among others. The Board also took into account the financial condition of JPMIM.

The Board considered JPMIM’s investment process and philosophy. The Board took into account that JPMIM’s responsibilities would include the development and maintenance of an investment program for the Portfolio which would be consistent with the Portfolio’s investment objectives, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also reviewed JPMIM’s brokerage policies and practices, including with respect to best execution and soft dollars.

Based on its consideration and review of the foregoing information, the Board concluded that the nature, extent and quality of services to be provided by JPMIM were satisfactory and that there was a reasonable basis on which to conclude that JPMIM would provide a high quality of investment services to the Portfolio.

Performance. The Board considered the performance of the Portfolio as described in the quarterly reports prepared by management. The Board noted that MetLife Advisers reviews with the Board on a quarterly basis detailed information about the Portfolio’s performance results, portfolio composition and investment strategies. The Board also considered information comparing the performance of the Portfolio with the JPMIM Portfolio. The Board noted that the Portfolio underperformed its benchmark, the Russell 2000 Value Index, for the one- and three-year periods ending December 31, 2012, and outperformed its benchmark for the five-year period ending December 31, 2012. The Board also considered the performance of the JPMIM Portfolio. Among other data relating

 

MIST-22

Met Investors Series Trust

JPMorgan Small Cap Value Portfolio (formerly, Dreman Small Cap Value Portfolio)

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

specifically to the JPMIM Portfolio, the Board noted that the JPMIM Portfolio had outperformed the Portfolio for the one-, three- and five-year periods ended December 31, 2012. The Board also noted that the JPMIM Portfolio had outperformed its benchmark, the Russell 2000 Value Index, for the one-, three- and five-year periods ended December 31, 2012. The Trustees took into account that the portfolio managers who managed the JPMIM Portfolio were expected to manage the Portfolio. In addition, the Trustees took into consideration the differences in principal investment strategies between the Portfolio and the JPMIM Portfolio. Based on its review, the Board concluded that the replacement of Dreman Value Management (“Dreman”) by JPMIM was appropriate given the comparative performance records of the Portfolio and JPMIM Portfolio.

Fees and expenses. The Board considered the subadvisory fee payable under the New Subadvisory Agreement. The Board noted that the rate of compensation in the New Subadvisory Agreement’s fee schedule is lower at current asset levels than the rate of compensation MetLife Advisers pays to Dreman for managing the Portfolio under the previous subadvisory agreement (the “Previous Subadvisory Agreement”). The Board also noted that the proposed subadvisory fee for the Portfolio would be paid by MetLife Advisers, not the Portfolio, out of the management fee and that MetLife Advisers would contractually waive a portion of the management fees to reflect lower subadvisory fees paid to JPMIM. It was further noted that MetLife Advisers negotiated such fees at arm’s length.

Profitability. In considering the anticipated profitability to JPMIM and its affiliates of their relationships with the Portfolio, the Board took into account that the rate of compensation provided in the New Subadvisory Agreement’s fee schedule at current asset levels is lower than the rate of compensation in the Previous Subadvisory Agreement’s fee schedule. The Board noted that the proposed subadvisory fee under the New Subadvisory Agreement would be paid by MetLife Advisers, not the Portfolio, out of the management fee that it would receive under the Management Agreement with the Trust. The Board also relied on the ability of MetLife Advisers to negotiate the New Subadvisory Agreement and the fee thereunder at arm’s length.

Economies of scale. The Board also considered the effect of the Portfolio’s growth in size on its performance and fees. The Board noted that the Portfolio’s management fee and proposed subadvisory fee each contained breakpoints that would reduce the fee rate on assets above certain specified asset levels. The Board noted that if the Portfolio’s assets increase over time, the Portfolio may realize economies of scale if assets increase proportionally more than certain other fixed expenses. The Board concluded that the management fee structure for the Portfolio, including breakpoints, was reasonable.

Other factors. The Board considered other benefits that may be realized by JPMIM and its affiliates from their relationship with the Trust, including the opportunity to provide advisory services to additional portfolios of the Trust and reputational benefits. The Board concluded that the benefits that may accrue to JPMIM and its affiliates by virtue of JPMIM’s relationship to the Portfolio were fair and reasonable in light of the anticipated costs of providing investment advisory services to the Portfolio and the anticipated commitment of JPMIM to the Portfolio.

The Board also took into account the expected transaction costs to the Portfolio of the change in subadviser and concluded that the potential benefits from changing subadvisers outweighed those costs. The Board also took into consideration that MetLife Advisers had agreed to waive a portion of its management fee beginning on April 29, 2013 through April 30, 2014.

The Board considered any possible conflicts of interest in the form of material benefits or detriments to the Trust resulting from the nature of the Trust’s and JPMIM’s affiliations. Here, the Board considered possible conflicts of interest that may arise between the Trust and JPMIM in connection with the services to be provided to the Trust and the various relationships and affiliations of JPMIM. The Board considered the procedures for monitoring and managing such potential conflicts.

Conclusion. In considering the approval of the New Subadvisory Agreement, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to various factors. Based on all of the above-mentioned considerations, and the recommendations of management, the Board, including a majority of the Independent Trustees, determined that approval of the New Subadvisory Agreement was in the best interests of the Portfolio. After full consideration of these and other factors, the Board, including a majority of the Independent Trustees, with the assistance of independent legal counsel, approved the New Subadvisory Agreement with respect to the Portfolio.

 

MIST-23

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Managed by Loomis, Sayles & Company, L.P.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the Loomis Sayles Global Markets Portfolio returned 3.35% and 3.20%, respectively. The Portfolio’s benchmarks, the MSCI World Index1 and the Citigroup World Government Bond Index2 (WGBI), returned 8.43% and -5.66%, respectively. A blend of the MSCI World Index1 (60%) and the Citi WGBI2 (40%) returned 2.64%.

MARKET ENVIRONMENT / CONDITIONS

Global equities tended to lag the U.S. in the first quarter. The MSCI All Country World Index posted a gain of only 6.6% in U.S.-Dollar terms, while emerging markets (“EM”), as measured by the MSCI Emerging Markets Index, generated a small loss. U.S. economic statistics, while hardly dynamic, were generally stronger than throughout much of the developed world. As we entered the second quarter of 2013, global developed markets outperformed U.S. markets, which was a reversal of the trend we saw in the first quarter. However, as the second quarter developed, the trend unwound with U.S. markets holding up better than those outside the U.S. Performance was poor almost everywhere as interest rates backed up, market flows were unfavorable, commodities traded lower and currency volatility was exceptional. Emerging markets continued to underperform as the strong U.S. dollar against some EM currencies weighed on returns in addition to soft local market performance. A number of international and emerging market economies have been facing the combination of slowing economic growth and more recently in some cases civil unrest and protest. While this has led to increased volatility and more challenging equity market performance in these countries, it has also started to improve valuations.

The first six months of 2013 saw a shift in many fixed income investors’ appetite for risk. The fixed income markets oscillated from periods where government bond yields declined, which in turn helped bond returns, to the most recent period of rising yields across the globe. As a result, government bond market returns were mixed towards the end of the period. There was a strong reaction to the Federal Reserve’s announcement of the proposed start to taper quantitative easing as early as September. With inflation expectations low and growth prospects moderately improving, we think it will be important to see how the market digests the latest global liquidity shock. While the eurozone dominated news at the beginning of the year, many eyes are on China and the U.S. to be the main engines of global growth. It is unclear what effects the engineered slowdown in China will have on the real economy, but the new government is willing to risk lower growth.

U.S. Investment Grade (“IG”) bonds outperformed treasuries on a duration-matched basis during the first quarter of 2013 but underperformed treasuries on a duration-matched basis during the second half of the period. After posting solid returns throughout April and May, spreads widened in excess of 0.2% in the final month of the quarter on elevated volatility across all risk markets. Flows had previously provided a tailwind to corporate spreads, but recent events have led to a sizable outflow from the asset class. We are utilizing this period of volatility as a buying opportunity, as it is unusual for credit spreads to widen materially while treasury yields are rising, the economy seems resilient, and the credit quality of corporates currently remains healthy.

Similarly to U.S. IG, European IG outperformed governments on an excess return basis during the first quarter of the year and managed to outperform governments on an excess return basis during the second quarter. However, European IG underperformed materially during the last month of the period. Spreads widened over the course of the month on the back of the unwinding of the carry trade stemming from the Fed’s tapering comments. Despite recessionary conditions across Europe as austerity takes hold, corporate balance sheets are currently in relatively decent shape. Markets have dialed back their estimate of future Fed balance sheet expansion, so asset prices have fallen. They have fallen most in markets where volatility-sensitive levered long positions were largest and most crowded. EM positions were the main underperformers, but presently are arguably among the best values.

PORTFOLIO REVIEW / PERIOD END POSITIONING

For the six months ended June 30th, the equity component of the Portfolio underperformed its benchmark, the MSCI World Index, due primarily to stock selection in the Industrial and Health Care sectors. For the six months ended June 30th, Antofogasta (United Kingdom), Fanuc (Japan) and Standard Chartered (United Kingdom) were the largest individual detractors from performance in the period. Shares of mining company Antofagasta fell, after the company warned that copper and gold output would decline due to increasing production costs. Robotics company Fanuc was down earlier in the year, and we have since sold the name. The company issued a disappointing outlook, given its exposure to sales of machinery used to produce iPhone’s aluminum housing. Standard Chartered, an international banking group, issued a disappointing update that confirmed what the market already discerned, namely that March was slower than the first two months of the year. The Chief Financial Officer spoke to a re-acceleration of volumes (lending, trade finance and trading) in April, but margins remain under pressure.

On the upside, the Portfolio’s largest contributors to return were American Express, priceline.com and Roche Group (Switzerland). American Express, a global payment and travel company, reported a solid second quarter despite ongoing noise from legacy asset outflows. Priceline.com, an online travel database, has continued to show strength in international hotel bookings coupled with the potential for synergies from the recent Kayak acquisition. Shares of pharmaceutical company Roche were also a strong performer as investors anticipate a strong increase in gross margins over the next year. Roche’s drug portfolio, particularly its breast cancer franchise, demonstrated strong competitive advantages during this time.

In light of improving market conditions and company-specific issues, we made some changes to the equity sleeve of the Portfolio over the

 

MIST-1

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Managed by Loomis, Sayles & Company, L.P.

Portfolio Manager Commentary*—(Continued)

 

course of the first quarter. The most notable adjustments made were reductions in the Telecommunication Services sector, and an increase in the Financials exposures. We sold out of our positions in CenturyLink and AT&T while adding a new financial name Aberdeen Asset Management (Scotland) to the Portfolio. The company is a well-positioned global money manager with a strong presence in EM.

In the second quarter, we made several changes to the positioning of the equity component of the Portfolio. We sold Caterpillar to fund Deere as we found the valuation compelling and had higher conviction in the latter’s end markets. We eliminated Companhia Hering (Brazil) to start a new position in NewMarket. NewMarket is a specialty chemical company serving energy and industrial customers, with a low capital intensity business model, overseas expansion strategy, and in our view, a value-creating management team. We sold out of Hang Lung (China) to reduce a name. Although the company is a good real estate operator, the higher capital intensity of the business model (without enough other offsetting characteristics) has been a factor the team has wrestled with versus our philosophy. We also started a position in Signet Jewelers (United Kingdom) where we see a strong operator in an attractive segment of retail. We see continued margin opportunity and attractive upside to our base-case scenario.

For the fixed income sleeve, security selection and sector allocation, along with currency allocation, were the main drivers of outperformance for the six-month period. The fixed income Portfolio’s allocation to the Corporate sector drove outperformance due to selections within the U.S. and European Corporate sector. Best-performing industries on an excess return basis were Building Materials, Packaging, and Supermarkets. Selections within Manufacturing (i.e. Arvinmeritor Inc and Lucent Tech, both in U.S. Dollars “USD”) and Services (such as Albertsons Inc in USD and Omnicare Inc and Dex Media Inc in USD) positively contributed to the Portfolio’s performance. On a quality basis, higher rated credit outperformed toward the end of the period, positively impacting the portfolio.

Currency and hedging allocations were another driver of outperformance. While our overweight to selected emerging markets such as the Brazilian Real, Singapore Dollar and South Korean Won dragged on returns, our substantial underweight in Japanese Yen helped boost relative returns for the period. Our corresponding underweights to the Australian Dollar, British Pound, Canadian Dollar and Euro added to excess return.

Country allocation detracted from return during the period mainly due to our preference for U.S. local markets and underweight in European local markets, which are gradually recovering. Our underweight to Japanese local markets also acted as a drag on relative performance. Duration and yield curve positioning also hurt performance. Long positioning along the U.S. dollar curve was the main detractor.

We have largely held positions in the fixed income sleeve constant at the end of the quarter due to numerous headwinds. Corporate fundamentals remain good but generally past their peak. Liquidity and quest for yield still provide support for the sector. Where permitted, we are now generally better buyers of risk, spread product, high yield, and EM currency. However, given that dealer liquidity is poor, Portfolio additions are likely to be modest.

Dan Fuss

Warren Koontz

David Rolley

Eileen Riley

Lee Rosenbaum

Portfolio Managers

Loomis, Sayles & Company, L.P.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE MSCI WORLD INDEX & THE CITIGROUP WORLD GOVERNMENT BOND INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception3  
Loomis Sayles Global Markets Portfolio                      

Class A

        3.35           11.91           6.49           7.57   

Class B

        3.20           11.55           6.23           7.29   
MSCI World Index        8.43           18.58           2.70           2.79   
Citigroup World Government Bond Index        -5.66           -4.50           3.04           4.89   

1 The MSCI World Index is a capitalization weighted index that measures performance of stocks from developed countries around the world. The index returns shown above were calculated with net dividends: they reflect the reinvestment of dividends after the deduction of the maximum possible withholding taxes.

2 The Citigroup World Government Bond Index is an index of bonds issued by governments in the U.S., Europe and Asia.

3 Inception of Class A and Class B shares is 5/1/2006. Index returns are based on an inception date of 5/1/2006.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Citigroup, Inc.      2.3   
Google, Inc. - Class A      2.1   
Roche Holding AG      2.1   
Sanofi      2.0   
Diageo plc      1.9   
Noble Energy, Inc.      1.8   
American Express Co.      1.7   
priceline.com, Inc.      1.6   
CVS Caremark Corp.      1.6   
Adidas AG      1.6   

Top Equity Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Financials      13.6   
Consumer Discretionary      9.8   
Health Care      9.0   
Information Technology      8.8   
Consumer Staples      8.4   

 

Top Fixed Income Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Corporate Bonds & Notes      19.8   
Foreign Government      6.3   
Convertible Bonds      2.1   
Floating Rate Loans      0.2   
Municipals      0.2   

 

MIST-3

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Loomis Sayles Global Markets Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

    Actual      0.77%       $ 1,000.00         $ 1,033.50         $ 3.88   
   Hypothetical*      0.77%       $ 1,000.00         $ 1,020.98         $ 3.86   

Class B

    Actual      1.02 %     $ 1,000.00         $ 1,032.00         $ 5.14   
   Hypothetical*      1.02%       $ 1,000.00         $ 1,019.74         $ 5.11   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—67.6% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—2.6%

  

Precision Castparts Corp. (a)

     29,609      $ 6,691,930   

TransDigm Group, Inc.

     42,535        6,668,212   
   

 

 

  
      13,360,142   
   

 

 

  

Beverages—4.3%

  

Anheuser-Busch InBev NV

     83,195        7,380,659   

Asahi Group Holdings, Ltd. (a)

     192,100        4,776,644   

Diageo plc

     344,638        9,885,333   
   

 

 

  
      22,042,636   
   

 

 

  

Biotechnology—0.5%

  

Gilead Sciences, Inc. (a) (b)

     47,153        2,414,705   
   

 

 

  

Capital Markets—0.8%

  

Aberdeen Asset Management plc

     732,955        4,243,022   
   

 

 

  

Chemicals—3.9%

  

NewMarket Corp. (a)

     9,851        2,586,479   

Potash Corp. of Saskatchewan, Inc.

     132,191        5,040,443   

Praxair, Inc.

     67,962        7,826,504   

Valspar Corp. (The) (a)

     74,314        4,805,886   
   

 

 

  
      20,259,312   
   

 

 

  

Commercial Banks—5.6%

  

Bangkok Bank PCL

     400,000        2,608,572   

Barclays plc

     1,199,075        5,140,132   

HSBC Holdings plc

     567,803        5,884,189   

M&T Bank Corp. (a)

     37,719        4,215,098   

PNC Financial Services Group, Inc. (The)

     53,426        3,895,824   

Standard Chartered plc

     326,447        7,047,929   
   

 

 

  
      28,791,744   
   

 

 

  

Communications Equipment—1.3%

  

QUALCOMM, Inc.

     106,660        6,514,793   
   

 

 

  

Computers & Peripherals—1.6%

  

Apple, Inc.

     20,467        8,106,569   
   

 

 

  

Construction Materials—0.5%

  

Siam Cement PCL

     183,000        2,609,029   
   

 

 

  

Consumer Finance—1.7%

  

American Express Co.

     117,324        8,771,142   
   

 

 

  

Diversified Financial Services—2.3%

  

Citigroup, Inc.

     247,380        11,866,819   
   

 

 

  

Energy Equipment & Services—2.9%

  

Core Laboratories NV

     21,071        3,195,628   

National Oilwell Varco, Inc.

     65,920        4,541,888   

Schlumberger, Ltd.

     101,214        7,252,995   
   

 

 

  
      14,990,511   
   

 

 

  

Food & Staples Retailing—1.6%

  

CVS Caremark Corp.

     144,567        8,266,341   
   

 

 

  

Gas Utilities—1.2%

  

National Fuel Gas Co. (a)

     103,224      $ 5,981,831   
   

 

 

  

Health Care Providers & Services—0.9%

  

UnitedHealth Group, Inc. (a)

     70,315        4,604,226   
   

 

 

  

Hotels, Restaurants & Leisure—1.4%

  

Wyndham Worldwide Corp. (a)

     125,178        7,163,937   
   

 

 

  

Industrial Conglomerates—0.9%

  

Siemens AG

     47,204        4,769,617   
   

 

 

  

Insurance—1.5%

  

ACE, Ltd. (a)

     87,253        7,807,398   
   

 

 

  

Internet & Catalog Retail—1.6%

  

priceline.com, Inc. (b)

     10,090        8,345,742   
   

 

 

  

Internet Software & Services—2.7%

  

Google, Inc. - Class A (b)

     12,283        10,813,585   

Mail.ru Group, Ltd. (GDR) (144A)

     110,064        3,170,797   
   

 

 

  
      13,984,382   
   

 

 

  

Machinery—2.2%

  

Atlas Copco AB - A Shares (a)

     239,567        5,753,490   

Deere & Co. (a)

     69,537        5,649,881   
   

 

 

  
      11,403,371   
   

 

 

  

Multiline Retail—0.6%

  

S.A.C.I. Falabella

     296,852        3,213,632   
   

 

 

  

Oil, Gas & Consumable Fuels—4.0%

  

Cabot Oil & Gas Corp.

     69,740        4,952,935   

EOG Resources, Inc.

     49,625        6,534,620   

Noble Energy, Inc.

     154,548        9,279,062   
   

 

 

  
      20,766,617   
   

 

 

  

Personal Products—1.2%

  

Hengan International Group Co., Ltd.

     587,500        6,349,960   
   

 

 

  

Pharmaceuticals—7.3%

  

Genomma Lab Internacional S.A.B. de C.V. - Class B (a) (b)

     3,157,568        6,235,962   

Hikma Pharmaceuticals plc

     180,636        2,606,425   

Roche Holding AG

     43,416        10,757,806   

Sanofi

     98,296        10,130,097   

Shire plc

     245,595        7,791,008   
   

 

 

  
      37,521,298   
   

 

 

  

Real Estate Management & Development—0.9%

  

Jones Lang LaSalle, Inc.

     53,126        4,841,904   
   

 

 

  

Road & Rail—1.2%

  

Genesee & Wyoming, Inc. - Class A (b)

     72,208        6,126,127   
   

 

 

  

Semiconductors & Semiconductor Equipment—1.4%

  

Texas Instruments, Inc. (a)

     201,757        7,035,267   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Software—1.2%

  

Microsoft Corp.

     171,153      $ 5,909,913   
   

 

 

  

Specialty Retail—3.0%

  

AutoZone, Inc. (a) (b)

     11,539        4,888,959   

Lowe’s Cos., Inc.

     177,205        7,247,685   

Signet Jewelers, Ltd.

     52,596        3,546,548   
   

 

 

  
      15,683,192   
   

 

 

  

Textiles, Apparel & Luxury Goods—2.3%

  

Adidas AG

     76,440        8,261,872   

Burberry Group plc

     162,043        3,342,863   
   

 

 

  
      11,604,735   
   

 

 

  

Tobacco—1.0%

  

British American Tobacco plc

     102,234        5,250,063   
   

 

 

  

Trading Companies & Distributors—0.6%

  

Mills Estruturas e Servicos de Engenharia S.A.

     239,600        3,243,918   
   

 

 

  

Wireless Telecommunication Services—0.9%

  

China Mobile, Ltd.

     456,500        4,756,089   
   

 

 

  

Total Common Stocks
(Cost $309,977,946)

       348,599,984   
   

 

 

  
Corporate Bonds & Notes—19.0%   

Advertising—0.1%

  

Visant Corp.
10.000%, 10/01/17 (a)

     100,000        92,250   

WPP 2008, Ltd.
6.000%, 04/04/17 (GBP)

     160,000        274,954   
   

 

 

  
      367,204   
   

 

 

  

Agriculture—0.0%

  

BAT International Finance plc
3.250%, 06/07/22 (144A)

     150,000        146,825   
   

 

 

  

Airlines—0.6%

  

Delta Air Lines Pass-Through Trust
8.021%, 08/10/22

     1,301,647        1,422,049   

8.954%, 08/10/14

     1,214,711        1,226,858   

United Continental Holdings, Inc.
6.375%, 06/01/18

     305,000        299,662   

US Airways Pass-Through Trust
5.900%,10/01/24

     79,856        83,849   

8.000%,10/01/19

     39,971        43,369   
   

 

 

  
      3,075,787   
   

 

 

  

Auto Manufacturers—0.4%

  

Ford Motor Co.
6.625%,10/01/28

     1,675,000        1,826,174   

Auto Manufacturers—(Continued)

  

Kia Motors Corp.
3.625%, 06/14/16 (144A)

     300,000      $ 311,050   
   

 

 

  
      2,137,224   
   

 

 

  

Auto Parts & Equipment—0.4%

  

Gajah Tunggal Tbk PT
7.750%, 02/06/18 (144A) (a)

     300,000        297,750   

Goodyear Tire & Rubber Co. (The)
7.000%, 03/15/28

     1,228,000        1,214,185   

8.250%, 08/15/20

     300,000        328,500   
   

 

 

  
      1,840,435   
   

 

 

  

Banks—2.5%

  

Akbank TAS
3.875%, 10/24/17 (144A) (a)

     150,000        144,937   

Banco de Credito e Inversiones
3.000%, 09/13/17 (144A)

     600,000        588,082   

Banco do Brasil S.A.
3.875%, 10/10/22

     300,000        262,890   

Banco Latinoamericano de Comercio Exterior S.A.
3.750%, 04/04/17 (144A)

     150,000        151,875   

Banco Santander Brasil S.A.
4.625%, 02/13/17 (144A)

     400,000        406,000   

Banco Santander Chile
6.500%, 09/22/20 (144A) (CLP)

     400,000,000        775,514   

Banco Santander Mexico S.A.
4.125%, 11/09/22 (144A)

     150,000        140,625   

Banco Votorantim S.A.
6.250%, 05/16/16 (144A) (BRL)

     450,000        220,120   

Bank of America Corp.
4.750%, 05/06/19 (EUR) (d)

     285,000        367,260   

Barclays Bank plc
3.680%, 08/20/15 (KRW)

     220,000,000        200,867   

BBVA Bancomer S.A.
6.750%, 09/30/22 (144A)

     300,000        324,000   

Canara Bank
6.365%, 11/28/21 (d)

     200,000        192,396   

Citigroup, Inc.
6.250%, 06/29/17 (NZD)

     300,000        242,530   

Eksportfinans ASA
2.000%, 09/15/15

     90,000        86,400   

Export-Import Bank of Korea

    

3.000%, 05/22/18 (144A) (NOK)

     1,700,000        269,063   

4.000%, 11/26/15 (144A) (PHP)

     8,000,000        191,179   

Goldman Sachs Group, Inc. (The)

    

3.375%, 02/01/18 (CAD)

     300,000        281,501   

6.750%, 10/01/37

     945,000        968,024   

6.875%, 01/18/38 (GBP)

     100,000        166,354   

Hana Bank

    

4.000%, 11/03/16 (144A)

     200,000        210,239   

ICICI Bank, Ltd.

    

6.375%, 04/30/22 (144A) (d)

     300,000        286,500   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Industrial Bank of Korea

    

2.375%, 07/17/17 (144A)

     300,000      $ 291,326   

Itau Unibanco Holding S.A.

    

6.200%, 12/21/21 (144A) (a)

     300,000        303,750   

Macquarie Bank, Ltd.

    

5.000%, 02/22/17 (144A)

     550,000        589,319   

6.625%, 04/07/21 (144A)

     500,000        529,055   

Morgan Stanley

    

5.375%, 11/14/13 (GBP)

     240,000        369,956   

5.750%, 01/25/21

     640,000        694,689   

7.250%, 05/26/15 (AUD)

     300,000        288,262   

7.625%, 03/03/16 (AUD)

     500,000        487,102   

PKO Finance AB

    

4.630%, 09/26/22 (144A)

     450,000        437,220   

Standard Chartered Bank

    

5.875%, 09/26/17 (EUR)

     250,000        366,340   

State Bank of India

    

4.125%, 08/01/17 (144A)

     300,000        297,244   

Turkiye Garanti Bankasi A/S

    

4.000%, 09/13/17 (144A) (a)

     300,000        292,500   

Turkiye Is Bankasi

    

3.875%, 11/07/17 (144A) (a)

     400,000        390,000   

VTB Bank OJSC Via VTB Capital S.A.

    

6.000%, 04/12/17 (144A)

     200,000        208,000   

Wells Fargo & Co.

    

4.625%, 11/02/35 (GBP)

     100,000        150,203   

4.875%, 11/29/35 (GBP)

     100,000        145,769   

Woori Bank Co., Ltd.

    

5.875%, 04/13/21 (144A)

     200,000        213,291   

Yapi ve Kredi Bankasi Via Unicredit Luxembourg S.A.

    

5.188%, 10/13/15 (144A)

     300,000        306,000   
   

 

 

  
      12,836,382   
   

 

 

  

Chemicals—1.0%

  

Braskem Finance, Ltd.
5.750%, 04/15/21 (144A)

     200,000        195,000   

Hercules, Inc.
6.500%, 06/30/29

     10,000        8,700   

Incitec Pivot Finance LLC
6.000%, 12/10/19 (144A)

     80,000        87,655   

INEOS Group Holdings S.A.
6.125%, 08/15/18 (144A)

     200,000        191,000   

Momentive Specialty Chemicals, Inc.
7.875%, 02/15/23 (c)

     899,000        647,280   

8.375%, 04/15/16 (c)

     2,943,000        2,530,980   

9.200%, 03/15/21 (c)

     1,910,000        1,566,200   
   

 

 

  
      5,226,815   
   

 

 

  

Coal—0.1%

  

Adaro Indonesia PT
7.625%, 10/22/19 (144A) (a)

     400,000        420,000   
   

 

 

  

Commercial Services—0.0%

  

RR Donnelley & Sons Co.

    

8.250%, 03/15/19 (a)

     165,000        173,250   
   

 

 

  

Construction Materials—0.1%

  

Masco Corp.

    

6.500%, 08/15/32

     30,000      $ 29,850   

7.750%, 08/01/29

     200,000        220,788   
   

 

 

  
      250,638   
   

 

 

  

Diversified Financial Services—0.9%

  

Banco BTG Pactual S.A.

    

5.750%, 09/28/22 (144A) (a)

     300,000        259,500   

General Electric Capital Corp.

    

7.625%, 12/10/14 (NZD)

     850,000        692,127   

Hyundai Capital Services, Inc.

    

3.500%, 09/13/17 (144A)

     400,000        407,298   

Jefferies Group LLC

    

5.125%, 01/20/23 (a)

     50,000        49,615   

6.250%, 01/15/36

     175,000        168,875   

6.450%, 06/08/27

     50,000        49,250   

6.875%, 04/15/21

     480,000        527,900   

Ladder Capital Finance Holdings LLP / Ladder Capital Finance Corp.

    

7.375%, 10/01/17 (144A)

     90,000        91,800   

SLM Corp.

    

5.500%, 01/25/23 (a)

     555,000        528,473   

5.625%, 08/01/33

     975,000        809,250   

Springleaf Finance Corp.

    

5.400%, 12/01/15 (a)

     390,000        389,025   

5.750%, 09/15/16

     600,000        586,500   

6.900%, 12/15/17

     230,000        225,688   
   

 

 

  
      4,785,301   
   

 

 

  

Electric—0.8%

  

CEZ A/S

    

4.250%, 04/03/22 (144A)

     400,000        396,920   

Dubai Electricity & Water Authority

    

6.375%, 10/21/16 (144A)

     200,000        218,500   

8.500%, 04/22/15 (144A)

     300,000        325,500   

E.CL S.A.

    

5.625%, 01/15/21 (144A)

     250,000        259,572   

Emgesa S.A. E.S.P

    

8.750%, 01/25/21 (144A) (COP)

     1,210,000,000        692,622   

Empresas Publicas de Medellin E.S.P.

    

8.375%, 02/01/21 (144A) (COP)

     1,610,000,000        896,453   

Energy Future Intermediate Holding Co. LLC / EFIH Finance, Inc.

    

11.250%, 12/01/18 (144A) (e)

     1,569,695        1,326,392   

Majapahit Holding B.V.

    

7.750%, 01/20/20 (144A)

     200,000        219,000   
   

 

 

  
      4,334,959   
   

 

 

  

Engineering & Construction—0.0%

  

Sydney Airport Finance Co. Pty., Ltd.

    

5.125%, 02/22/21 (144A)

     140,000        146,716   
   

 

 

  

Food—0.5%

  

BRF S.A.

    

3.950%, 05/22/23 (144A) (a)

     800,000        704,000   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Food—(Continued)

  

BRF S.A.

    

5.875%, 06/06/22 (144A) (a)

     200,000      $ 205,260   

7.750%, 05/22/18 (144A) (BRL)

     480,000        186,076   

Cosan Luxembourg S.A.

    

5.000%, 03/14/23 (144A) (a)

     200,000        190,000   

SUPERVALU, Inc.

    

6.750%, 06/01/21 (144A)

     1,415,000        1,315,950   
   

 

 

  
      2,601,286   
   

 

 

  

Forest Products & Paper—0.2%

  

Celulosa Arauco y Constitucion S.A.

    

4.750%, 01/11/22

     400,000        397,279   

Fibria Overseas Finance, Ltd.

    

6.750%, 03/03/21 (144A)

     150,000        160,725   

Inversiones CMPC S.A.

    

4.375%, 05/15/23 (144A) (a)

     400,000        382,850   

Neenah Paper, Inc.

    

5.250%, 05/15/21 (144A)

     210,000        204,750   
   

 

 

  
      1,145,604   
   

 

 

  

Gas—0.0%

  

China Resources Gas Group, Ltd.

    

4.500%, 04/05/22 (144A)

     200,000        196,043   
   

 

 

  

Healthcare-Services—2.5%

  

HCA, Inc.

    

7.050%, 12/01/27

     80,000        78,400   

7.500%, 11/06/33

     5,060,000        5,211,800   

7.580%, 09/15/25

     375,000        397,500   

7.690%, 06/15/25

     755,000        815,400   

7.750%, 07/15/36

     1,420,000        1,427,100   

Tenet Healthcare Corp.

    

6.875%, 11/15/31

     910,000        782,600   

9.250%, 02/01/15 (a)

     3,900,000        4,226,625   
   

 

 

  
      12,939,425   
   

 

 

  

Holding Companies-Diversified—0.1%

  

Hutchison Whampoa International 11, Ltd.

    

3.500%, 01/13/17 (144A)

     200,000        206,079   

Noble Group, Ltd.

    

6.750%, 01/29/20 (144A)

     300,000        304,500   
   

 

 

  
      510,579   
   

 

 

  

Home Builders—0.2%

  

K. Hovnanian Enterprises, Inc.

    

5.000%, 11/01/21

     700,000        630,000   

7.500%, 05/15/16

     15,000        15,525   

KB Home

    

6.250%, 06/15/15 (a)

     400,000        425,000   
   

 

 

  
      1,070,525   
   

 

 

  

Home Furnishings—0.1%

  

Arcelik A/S

    

5.000%, 04/03/23 (144A)

     300,000        268,500   
   

 

 

  

Household Products/Wares—0.9%

  

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu

    

5.750%, 10/15/20

     900,000      $ 906,750   

7.875%, 08/15/19

     1,200,000        1,308,000   

8.250%, 02/15/21

     1,150,000        1,138,500   

9.875%, 08/15/19

     1,400,000        1,498,000   
   

 

 

  
      4,851,250   
   

 

 

  

Insurance—0.2%

  

Forethought Financial Group, Inc.

    

8.625%, 04/15/21 (144A)

     820,000        945,112   
   

 

 

  

Iron/Steel—0.4%

  

ArcelorMittal

    

7.250%, 03/01/41

     300,000        280,500   

CSN Resources S.A.

    

6.500%, 07/21/20 (144A) (a)

     100,000        97,375   

Gerdau Holdings, Inc.

    

7.000%, 01/20/20 (144A)

     400,000        422,000   

Hyundai Steel Co.

    

4.625%, 04/21/16 (144A)

     400,000        423,479   

Samarco Mineracao S.A.

    

4.125%, 11/01/22 (144A)

     300,000        268,500   

United States Steel Corp.

    

7.500%, 03/15/22 (a)

     290,000        284,200   

Vale Overseas, Ltd.

    

6.875%, 11/21/36

     350,000        354,371   
   

 

 

  
      2,130,425   
   

 

 

  

Lodging—0.1%

  

MGM Resorts International

    

6.750%, 10/01/20

     400,000        414,000   
   

 

 

  

Machinery-Diversified—0.0%

  

Cleaver-Brooks, Inc.

    

8.750%, 12/15/19 (144A)

     65,000        68,250   
   

 

 

  

Media—0.4%

  

Cablevision Systems Corp.

    

8.000%, 04/15/20 (a)

     700,000        763,000   

Clear Channel Communications, Inc.

    

9.000%, 12/15/19 (144A)

     163,000        158,110   

Clear Channel Worldwide Holdings, Inc.

    

7.625%, 03/15/20

     325,000        336,375   

Dex Media, Inc.

    

14.000%, 01/29/17 (e)

     4,983        3,289   

Grupo Televisa S.A.B.

    

7.250%, 05/14/43 (MXN) (a)

     6,000,000        392,728   

Myriad International Holding B.V.

    

6.375%, 07/28/17 (144A)

     100,000        109,500   

Shaw Communications, Inc.

    

5.650%, 10/01/19 (CAD)

     250,000        262,748   
   

 

 

  
      2,025,750   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Mining—0.2%

  

Anglo American Capital plc

    

2.625%, 09/27/17 (144A)

     250,000      $ 243,738   

AngloGold Ashanti Holdings plc

    

5.125%, 08/01/22

     285,000        252,009   

Hecla Mining Co.

    

6.875%, 05/01/21 (144A) (a)

     320,000        296,800   

Vedanta Resources plc

    

6.000%, 01/31/19 (144A) (a)

     300,000        285,000   
   

 

 

  
      1,077,547   
   

 

 

  

Multi-National—0.1%

  

Central American Bank for Economic Integration

    

3.875%, 02/09/17 (144A)

     550,000        571,583   
   

 

 

  

Oil & Gas—1.5%

  

Bill Barrett Corp.

    

7.000%, 10/15/22

     1,000,000        1,000,000   

Chesapeake Energy Corp.

    

6.875%, 11/15/20

     285,000        309,225   

7.250%, 12/15/18 (a)

     2,000,000        2,230,000   

Gazprom OAO Via Gaz Capital S.A.

    

4.950%, 05/23/16 (144A) (a)

     200,000        207,666   

Halcon Resources Corp.

    

8.875%, 05/15/21

     185,000        179,450   

NGC Corp. Capital Trust I

    

8.316%, 06/01/27 (f)

     520,000        0   

Odebrecht Drilling Norbe VIII/IX, Ltd.

    

6.350%, 06/30/21 (144A)

     185,000        186,850   

Pacific Rubiales Energy Corp.

    

5.125%, 03/28/23 (144A)

     300,000        283,500   

Pan American Energy LLC

    

7.875%, 05/07/21 (144A)

     180,000        173,250   

Pertamina Persero PT

    

4.300%, 05/20/23 (144A)

     825,000        763,125   

Petrobras Global Finance B.V.

    

3.000%, 01/15/19

     400,000        371,554   

4.375%, 05/20/23 (a)

     555,000        509,125   

Petrobras International Finance Co.

    

6.250%, 12/14/26 (GBP)

     200,000        320,683   

Reliance Holdings USA, Inc.

    

5.400%, 02/14/22 (144A)

     500,000        507,945   

Rosetta Resources, Inc.

    

5.625%, 05/01/21

     245,000        239,181   

Thai Oil PCL

    

3.625%, 01/23/23 (144A)

     350,000        319,317   
   

 

 

  
      7,600,871   
   

 

 

  

Oil & Gas Services—0.0%

  

Korea National Oil Corp.

    

3.125%, 04/03/17 (144A)

     200,000        201,139   
   

 

 

  

Pharmaceuticals—0.0%

  

Valeant Pharmaceuticals International

    

6.375%, 10/15/20 (144A)

     240,000        237,300   
   

 

 

  

Pipelines—0.1%

  

Transportadora de Gas del Sur S.A.

    

7.875%, 05/14/17 (144A)

     345,000      $ 300,978   
   

 

 

  

Real Estate Investment Trusts—0.1%

  

iStar Financial, Inc.

    

3.875%, 07/01/16 (a)

     20,000        19,200   

4.875%, 07/01/18

     70,000        65,800   

5.875%, 03/15/16

     220,000        224,400   

6.050%, 04/15/15 (a)

     40,000        40,800   
   

 

 

  
      350,200   
   

 

 

  

Retail—1.0%

  

J.C. Penney Corp., Inc.

    

7.400%, 04/01/37

     5,000        4,063   

7.625%, 03/01/97

     250,000        185,000   

Lotte Shopping Co., Ltd.

    

3.375%, 05/09/17 (144A)

     200,000        200,441   

New Albertsons, Inc.

    

7.450%, 08/01/29 (a)

     5,470,000        4,293,950   

Parkson Retail Group, Ltd.

    

4.500%, 05/03/18

     200,000        179,000   

Toys “R” Us, Inc.

    

7.375%, 10/15/18

     150,000        135,375   
   

 

 

  
      4,997,829   
   

 

 

  

Software—0.4%

  

First Data Corp.
8.750%, 01/15/22 (144A) (e)

     1,217,000        1,250,467   

10.625%, 06/15/21 (144A)

     675,000        666,563   
   

 

 

  
      1,917,030   
   

 

 

  

Telecommunications—3.0%

  

Alcatel-Lucent USA, Inc.
6.450%, 03/15/29

     55,000        41,663   

Altice Financing S.A.
7.875%, 12/15/19 (144A)

     200,000        209,000   

America Movil S.A.B. de C.V.
3.500%, 02/08/15 (CNH)

     4,000,000        633,379   

Bharti Airtel International Netherlands B.V.
5.125%, 03/11/23 (144A)

     205,000        186,304   

British Telecommunications plc
5.750%, 12/07/28 (GBP)

     365,000        621,997   

CenturyLink, Inc.
6.875%, 01/15/28

     45,000        43,875   

7.600%, 09/15/39

     475,000        451,250   

7.650%, 03/15/42

     185,000        175,750   

Colombia Telecomunicaciones S.A. E.S.P.
5.375%, 09/27/22 (144A)

     250,000        236,250   

Eileme 2 AB
11.625%, 01/31/20

     200,000        226,000   

Indosat Palapa Co. B.V.
7.375%, 07/29/20 (144A) (a)

     200,000        214,000   

Level 3 Financing, Inc.
7.000%, 06/01/20

     380,000        379,050   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Telecommunications—(Continued)

  

Millicom International Cellular S.A.
4.750%, 05/22/20 (144A)

     225,000      $ 213,809   

Oi S.A.
9.750%, 09/15/16 (144A) (BRL)

     300,000        124,364   

Qwest Capital Funding, Inc.
7.750%, 02/15/31

     1,445,000        1,423,325   

Softbank Corp.
4.500%, 04/15/20 (144A)

     800,000        771,000   

Sprint Capital Corp.
6.875%, 11/15/28

     1,250,000        1,200,000   

8.750%, 03/15/32

     350,000        385,000   

Sprint Nextel Corp.
7.000%, 08/15/20

     1,500,000        1,575,000   

9.000%, 11/15/18 (144A)

     2,500,000        2,925,000   

11.500%, 11/15/21

     2,000,000        2,660,000   

Telecom Italia Capital S.A.
6.000%, 09/30/34

     350,000        317,381   

Telefonica Emisiones SAU
4.375%, 02/02/16 (EUR)

     140,000        192,636   
   

 

 

  
      15,206,033   
   

 

 

  

Transportation—0.1%

  

Jack Cooper Holdings Corp.
9.250%, 06/01/20 (144A)

     360,000        360,000   

Transnet SOC, Ltd.
4.000%, 07/26/22 (144A)

     300,000        262,320   
   

 

 

  
      622,320   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $94,626,026)

       97,991,115   
   

 

 

  
Foreign Government—6.1%   

Municipal—0.1%

  

Autonomous Community of Madrid Spain
4.300%, 09/15/26 (EUR)

     350,000        369,258   

Sovereign—6.0%

  

Brazil Notas do Tesouro Nacional
6.000%, 05/15/15 (BRL)

     715,000        760,868   

10.000%, 01/01/21 (BRL)

     1,635,000        698,319   

Brazilian Government International Bond
8.500%, 01/05/24 (BRL)

     350,000        144,307   

Bundesrepublik Deutschland
3.750%, 01/04/17 (EUR)

     900,000        1,307,728   

Canadian Government Bonds
1.000%, 08/01/16 (CAD)

     205,000        192,272   

3.000%, 12/01/15 (CAD)

     750,000        741,578   

Costa Rica Government International Bonds
4.250%, 01/26/23 (144A)

     200,000        185,000   

4.375%, 04/30/25 (144A)

     400,000        367,000   

Export Credit Bank of Turkey
5.375%, 11/04/16 (144A)

     200,000        207,750   

Hungary Government International Bonds
6.375%, 03/29/21 (a)

     190,000        197,600   

Sovereign—(Continued)

  

Iceland Government International Bond
5.875%, 05/11/22 (144A)

     500,000      $ 530,000   

Indonesia Treasury Bond
11.500%, 09/15/19 (IDR)

     2,901,000,000        358,152   

Italy Buoni Poliennali Del Tesoro
4.000%, 02/01/37 (EUR)

     380,000        442,284   

4.500%, 08/01/18 (EUR)

     1,665,000        2,270,563   

5.000%, 03/01/22 (EUR)

     220,000        300,956   

Korea Treasury Bonds
2.750%, 09/10/17 (KRW)

     1,200,000,000        1,035,713   

4.000%, 03/10/16 (KRW)

     345,000,000        310,524   

5.000%, 09/10/14 (KRW)

     1,000,000,000        898,898   

Malaysia Government Bonds
3.434%, 08/15/14 (MYR)

     1,600,000        508,203   

4.012%, 09/15/17 (MYR)

     3,070,000        991,288   

4.262%, 09/15/16 (MYR)

     1,960,000        636,305   

Mexican Bonos
6.500%, 06/10/21 (MXN)

     11,200,000        911,389   

6.500%, 06/09/22 (MXN)

     19,920,000        1,615,884   

7.750%, 12/14/17 (MXN)

     13,230,000        1,125,860   

8.000%, 12/17/15 (MXN)

     14,050,000        1,172,560   

8.500%, 12/13/18 (MXN)

     19,850,000        1,753,509   

New Zealand Government Bond
6.000%, 05/15/21 (NZD)

     1,500,000        1,322,398   

Norwegian Government Bonds
4.250%, 05/19/17 (NOK)

     760,000        137,030   

4.500%, 05/22/19 (NOK)

     4,280,000        799,794   

Philippine Government International Bond
4.950%, 01/15/21 (PHP)

     30,000,000        709,583   

Poland Government Bond
4.750%, 04/25/17 (PLN)

     1,000,000        313,796   

Poland Government International Bond
3.000%, 03/17/23

     285,000        257,212   

Portugal Obrigacoes do Tesouro OT
4.100%, 04/15/37 (EUR)

     170,000        154,136   

4.950%, 10/25/23 (EUR)

     330,000        383,111   

Romania Government Bond
5.750%, 01/27/16 (RON)

     1,000,000        294,862   

Singapore Government Bonds
2.250%, 06/01/21 (SGD)

     570,000        453,031   

2.500%, 06/01/19 (SGD)

     1,075,000        885,593   

3.250%, 09/01/20 (SGD)

     1,760,000        1,499,731   

Spain Government Bonds
4.200%, 01/31/37 (EUR)

     355,000        396,423   

4.300%, 10/31/19 (EUR)

     260,000        342,619   

5.850%, 01/31/22 (EUR)

     575,000        813,788   

Sweden Government Bonds
4.500%, 08/12/15 (SEK)

     6,080,000        969,558   

5.000%, 12/01/20 (SEK)

     2,650,000        477,698   

Thailand Government Bond
3.250%, 06/16/17 (THB)

     19,000,000        613,411   

Turkey Government International Bond
3.250%, 03/23/23 (a)

     600,000        523,500   
   

 

 

  
      31,011,784   
   

 

 

  

Total Foreign Government
(Cost $32,440,364)

       31,381,042   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Convertible Bonds—2.0%

 

Security Description   Shares/
Principal
Amount*		     Value  

Auto Manufacturers—0.5%

  

Ford Motor Co.
4.250%, 11/15/16

     1,305,000      $ 2,357,972   
   

 

 

  

Auto Parts & Equipment—0.0%

  

Meritor, Inc.
4.000%, 02/15/27 (g)

     230,000        203,262   
   

 

 

  

Insurance—0.4%

    

Old Republic International Corp.
3.750%, 03/15/18 (a)

     1,875,000        2,109,375   
   

 

 

  

Iron/Steel—0.0%

    

United States Steel Corp.
2.750%, 04/01/19 (a)

     95,000        93,753   
   

 

 

  

Miscellaneous Manufacturing—0.0%

    

Trinity Industries, Inc.
3.875%, 06/01/36

     45,000        52,763   
   

 

 

  

Oil & Gas—0.0%

    

Chesapeake Energy Corp.
2.500%, 05/15/37 (a)

     50,000        47,094   

2.750%, 11/15/35 (a)

     60,000        59,550   
   

 

 

  
      106,644   
   

 

 

  

Pharmaceuticals—0.1%

    

Omnicare, Inc.
3.750%, 12/15/25

     365,000        675,250   
   

 

 

  

Semiconductors—0.7%

    

Intel Corp.
3.250%, 08/01/39

     2,670,000        3,402,581   
   

 

 

  

Telecommunications—0.3%

    

Ciena Corp.
3.750%, 10/15/18 (144A)

     115,000        143,894   

Level 3 Communications, Inc.

    

7.000%, 03/15/15 (144A) (c) (h)

     1,015,000        1,181,206   
   

 

 

  
      1,325,100   
   

 

 

  

Total Convertible Bonds
(Cost $7,736,040)

       10,326,700   
   

 

 

  
Convertible Preferred Stocks—0.9%   

Automobiles—0.5%

  

General Motors Co.
Series B

    

4.750%, 12/01/13

     56,810        2,735,970   
   

 

 

  

Diversified Telecommunication Services—0.4%

  

Lucent Technologies Capital Trust I

    

7.750%, 03/15/17 (a)

     2,063        1,970,165   
   

 

 

  

Oil, Gas & Consumable Fuels—0.0%

  

Chesapeake Energy Corp.
5.000%, 12/31/49

     445      $ 38,524   

Chesapeake Energy Corp.
5.750%, 12/31/49 (144A)

     20        20,512   
   

 

 

  
      59,036   
   

 

 

  

Real Estate Investment Trusts—0.0%

  

Weyerhaeuser Co. Series A
6.375%, 07/01/16 (b)

     2,829        144,307   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $4,414,647)

       4,909,478   
   

 

 

  
Floating Rate Loans (i)—0.2%   

Airlines—0.1%

  

U.S. Airways, Inc.
Term Loan
0.000%, 05/23/19 (j)

     395,000        390,924   
   

 

 

  

Media—0.1%

  

FairPoint Communications, Inc.
Refi Term Loan
7.500%, 02/14/19

     453,863        445,434   
   

 

 

  

Multi-Utilities—0.0%

  

Power Buyer LLC
Delayed Draw Term Loan
0.000%, 05/06/20 (j) (k)

     30,000        29,775   

First Lien Term Loan
4.250%, 05/06/20

     235,000        233,237   

Second Lien Term Loan
8.250%, 11/06/20

     60,000        59,250   
   

 

 

  
      322,262   
   

 

 

  

Total Floating Rate Loans
(Cost $1,170,658)

       1,158,620   
   

 

 

  
Municipals—0.2%   

Tobacco Settlement Financing Corp.

    

6.706%, 06/01/46
(Cost $1,329,704)

     1,330,000        998,671   
   

 

 

  
Preferred Stock—0.2%   

Commercial Banks—0.2%

  

Ally Financial, Inc. ,
7.000% (144A)
(Cost $211,643)

     906        861,125   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mortgage-Backed Securities—0.0%

 

Security Description   Shares/
Principal
Amount*		     Value  

Commercial Mortgage-Backed Securities—0.0%

  

GS Mortgage Securities Trust

    

5.982%, 08/10/45 (d)
(Cost $38,364)

     40,000      $ 38,454   
   

 

 

  
Short-Term Investments—20.8%   

Mutual Fund—17.5%

  

State Street Navigator Securities
Lending MET Portfolio (l)

     90,144,388        90,144,388   
   

 

 

  

Repurchase Agreement—3.3%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $16,813,014 on 07/01/13, collateralized by $17,175,000 Federal Home Loan Bank at 0.250% due 05/26/15 with a value of $17,153,531.

     16,813,000        16,813,000   
   

 

 

  

Total Short-Term Investments
(Cost $106,957,388)

       106,957,388   
   

 

 

  

Total Investments—117.0%
(Cost $558,902,780) (m)

       603,222,577   

Unfunded Loan Commitments—(0.0)%
(Cost $(30,000))

       (30,000 ) 

Net Investments—117.0%
(Cost $558,872,780)

       603,192,577   

Other assets and liabilities (net)—(17.0)%

       (87,604,665 ) 
   

 

 

  
Net Assets—100.0%     $ 515,587,912   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $87,202,810 and the collateral received consisted of cash in the amount of $90,144,388. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(b) Non-income producing security.
(c) Illiquid security. As of June 30, 2013, these securities represent 1.1% of net assets.
(d) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(e) Payment-in-kind security for which part of the income earned may be paid as additional principal.
(f) Security is in default and/or issuer is in bankruptcy.
(g) Security is a “step-down” bond where the coupon decreases or steps down at a predetermined date. Rate shown is current coupon rate.
(h) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of June 30, 2013, the market value of restricted securities was $1,181,206, which is 0.2% of net assets. See details shown in the Restricted Securities table that follows.
(i) Floating rate loans (Senior Loans) often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will have an expected average life of approximately two to four years. The stated interest rate represents the weighted average interest rate of all contracts within the senior loan facility and includes commitment fees on unfunded loan commitments, if any. Senior Loans typically have rates of interest which are determined either daily, monthly, quarterly or semi-annually by reference to a base lending rate, plus a premium. These base rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily, the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit (“CD”) rate or other base lending rates used by commercial lenders.
(j) This loan will settle after June 30, 2013, at which time the interest rate will be determined.
(k) Unfunded or partially unfunded loan commitments. The Portfolio may enter into certain credit agreements for which all or a portion may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion.
(l) Represents investment of cash collateral received from securities lending transactions.
(m) As of June 30, 2013, the aggregate cost of investments was $558,872,780. The aggregate unrealized appreciation and depreciation of investments were $56,130,637 and $(11,810,840), respectively, resulting in net unrealized appreciation of $44,319,797.
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $40,137,444, which is 7.8% of net assets.
(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CLP)— Chilean Peso
(CNH)— Chinese Renminbi
(COP)— Colombian Peso
(EUR)— Euro
(GBP)— British Pound
(GDR)— A Global Depositary Receipt is a negotiable certificate issued by one country’s bank against a certain number of shares of a company’s stock held in its custody but traded on the stock exchange of another country.
(IDR)— Indonesian Rupiah
(KRW)— South Korea Won
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(NOK)— Norwegian Krone
(NZD)— New Zealand Dollar
(PHP)— Philippine Peso
(PLN)— Polish Zloty
(RON)— New Romanian Leu
(SEK)— Swedish Krona
(SGD)— Singapore Dollar
(THB)— Thai Baht

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

 

Restricted Securities

   Acquisition
Date		     Principal
Amount		     Cost     Value  

Level 3 Communications, Inc.

     06/22/09      $ 1,015,000      $ 1,008,045      $ 1,181,206   

 

Countries Diversification as of
June 30, 2013 (Unaudited)

   

% of
Net Assets

  

United States

      57.7   

United Kingdom

      9.5   

Switzerland

      3.6   

Germany

      2.8   

Mexico

      2.7   

Hong Kong

      2.3   

France

      2.0   

Sweden

      1.5   

Ireland

      1.5   

Brazil

      1.5   

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy       

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
  BRL        530,000         Credit Suisse International        08/02/13           USD    261,884           (26,019 ) 
  KRW 615,000,000         Credit Suisse International        09/11/13           USD    546,812           (10,077 ) 
  NZD     3,110,000         Barclays Bank plc        07/31/13           USD 2,441,076           (35,987 ) 
Contracts to Deliver                                    
  AUD    750,000         Credit Suisse International        09/18/13           USD    715,125           33,089   
  BRL 1,850,000         Credit Suisse International        07/08/13           USD    910,164           82,197   
  BRL    530,000         Credit Suisse International        08/02/13           USD    259,702           23,837   
  CAD    850,000         Credit Suisse International        09/05/13           USD    819,340           12,371   
  NZD 2,500,000         Barclays Bank plc        07/31/13           USD 2,087,550           154,198   
  NZD    610,000         Barclays Bank plc        07/31/13           USD    517,842           46,104   
Cross Currency
Contracts to Buy		                                    
  EUR 463,255         Deutsche Bank AG        09/12/13           NOK 3,550,000           20,235   
                   

 

 

  

 

Net Unrealized Appreciation

  

      $ 299,948   
                   

 

 

  

 

(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(EUR)— Euro
(KRW)— South Korea Won
(NZD)— New Zealand Dollar
(NOK)— Norwegian Krone
(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 13,360,142       $ —         $ —         $ 13,360,142   

Beverages

      —           22,042,636         —           22,042,636   

Biotechnology

      2,414,705         —           —           2,414,705   

Capital Markets

      —           4,243,022         —           4,243,022   

Chemicals

      20,259,312         —           —           20,259,312   

Commercial Banks

      8,110,922         20,680,822         —           28,791,744   

Communications Equipment

      6,514,793         —           —           6,514,793   

Computers & Peripherals

      8,106,569         —           —           8,106,569   

Construction Materials

      —           2,609,029         —           2,609,029   

Consumer Finance

      8,771,142         —           —           8,771,142   

Diversified Financial Services

      11,866,819         —           —           11,866,819   

Energy Equipment & Services

      14,990,511         —           —           14,990,511   

Food & Staples Retailing

      8,266,341         —           —           8,266,341   

Gas Utilities

      5,981,831         —           —           5,981,831   

Health Care Providers & Services

      4,604,226         —           —           4,604,226   

Hotels, Restaurants & Leisure

      7,163,937         —           —           7,163,937   

Industrial Conglomerates

      —           4,769,617         —           4,769,617   

Insurance

      7,807,398         —           —           7,807,398   

Internet & Catalog Retail

      8,345,742         —           —           8,345,742   

Internet Software & Services

      13,984,382         —           —           13,984,382   

Machinery

      5,649,881         5,753,490         —           11,403,371   

Multiline Retail

      3,213,632         —           —           3,213,632   

Oil, Gas & Consumable Fuels

      20,766,617         —           —           20,766,617   

Personal Products

      —           6,349,960         —           6,349,960   

Pharmaceuticals

      6,235,962         31,285,336         —           37,521,298   

Real Estate Management & Development

      4,841,904         —           —           4,841,904   

Road & Rail

      6,126,127         —           —           6,126,127   

Semiconductors & Semiconductor Equipment

      7,035,267         —           —           7,035,267   

Software

      5,909,913         —           —           5,909,913   

Specialty Retail

      15,683,192         —           —           15,683,192   

Textiles, Apparel & Luxury Goods

      —           11,604,735         —           11,604,735   

Tobacco

      —           5,250,063         —           5,250,063   

Trading Companies & Distributors

      3,243,918         —           —           3,243,918   

Wireless Telecommunication Services

      —           4,756,089         —           4,756,089   

Total Common Stocks

      229,255,185         119,344,799         —           348,599,984   

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  
Corporate Bonds & Notes           

Advertising

    $ —         $ 367,204      $ —         $ 367,204   

Agriculture

      —           146,825        —           146,825   

Airlines

      —           3,075,787        —           3,075,787   

Auto Manufacturers

      —           2,137,224        —           2,137,224   

Auto Parts & Equipment

      —           1,840,435        —           1,840,435   

Banks

      —           12,836,382        —           12,836,382   

Chemicals

      —           5,226,815        —           5,226,815   

Coal

      —           420,000        —           420,000   

Commercial Services

      —           173,250        —           173,250   

Construction Materials

      —           250,638        —           250,638   

Diversified Financial Services

      —           4,785,301        —           4,785,301   

Electric

      —           4,334,959        —           4,334,959   

Engineering & Construction

      —           146,716        —           146,716   

Food

      —           2,601,286        —           2,601,286   

Forest Products & Paper

      —           1,145,604        —           1,145,604   

Gas

      —           196,043        —           196,043   

Healthcare-Services

      —           12,939,425        —           12,939,425   

Holding Companies-Diversified

      —           510,579        —           510,579   

Home Builders

      —           1,070,525        —           1,070,525   

Home Furnishings

      —           268,500        —           268,500   

Household Products/Wares

      —           4,851,250        —           4,851,250   

Insurance

      —           945,112        —           945,112   

Iron/Steel

      —           2,130,425        —           2,130,425   

Lodging

      —           414,000        —           414,000   

Machinery-Diversified

      —           68,250        —           68,250   

Media

      —           2,025,750        —           2,025,750   

Mining

      —           1,077,547        —           1,077,547   

Multi-National

      —           571,583        —           571,583   

Oil & Gas

      —           7,600,871        0         7,600,871   

Oil & Gas Services

      —           201,139        —           201,139   

Pharmaceuticals

      —           237,300        —           237,300   

Pipelines

      —           300,978        —           300,978   

Real Estate Investment Trusts

      —           350,200        —           350,200   

Retail

      —           4,997,829        —           4,997,829   

Software

      —           1,917,030        —           1,917,030   

Telecommunications

      —           15,206,033        —           15,206,033   

Transportation

      —           622,320        —           622,320   

Total Corporate Bonds & Notes

      —           97,991,115        0         97,991,115   

Total Foreign Government*

      —           31,381,042        —           31,381,042   

Total Convertible Bonds*

      —           10,326,700        —           10,326,700   
Convertible Preferred Stocks           

Automobiles

      2,735,970         —          —           2,735,970   

Diversified Telecommunication Services

      1,970,165         —          —           1,970,165   

Oil, Gas & Consumable Fuels

      38,524         20,512        —           59,036   

Real Estate Investment Trusts

      144,307         —          —           144,307   

Total Convertible Preferred Stocks

      4,888,966         20,512        —           4,909,478   

Total Floating Rate Loans*

      —           1,158,620        —           1,158,620   

Total Municipals

      —           998,671        —           998,671   

Total Preferred Stock*

      —           861,125        —           861,125   

Total Mortgage-Backed Securities*

      —           38,454        —           38,454   
Short-Term Investments           

Mutual Fund

      90,144,388         —          —           90,144,388   

Repurchase Agreement

      —           16,813,000        —           16,813,000   

Total Short-Term Investments

      90,144,388         16,813,000        —           106,957,388   

Total Investments

    $ 324,288,539       $ 278,934,038      $ 0       $ 603,222,577   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (90,144,388 )    $ —         $ (90,144,388 ) 

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  
Forward Contracts           

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —         $ 372,031      $ —         $ 372,031   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —           (72,083 )      —           (72,083 ) 

Total Forward Contracts

    $ —         $ 299,948      $ —         $ 299,948   

 

* See Schedule of Investments for additional detailed categorizations.

Transfers from Level 2 to Level 1 in the amount of $9,367,112 were due to the discontinuation of a systematic fair valuation model factor.

As of June 30, 2013, the security designated as Level 3 was fair valued using significant unobservable inputs under procedures adopted by the Board. Such valuations were based on a review of inputs such as, but not limited to, similar securities, company specific financial information, and company specific news. For this security there was no changes in the valuation techniques used since the December 31, 2012 annual report. The Level 3 security comprised 0.0% of net assets of the Portfolio. As such, the Level 3 roll forward and change in unrealized appreciation (depreciation), of the Level 3 security held at June 30, 2013, have not been presented.

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b) (c)

    $ 603,192,577   

Cash

      3,196   

Cash denominated in foreign currencies (d)

      2,103,519   

Unrealized appreciation on forward foreign currency exchange contracts

      372,031   

Receivable for:

   

Investments sold

      6,112,893   

Fund shares sold

      225,103   

Dividends

      581,695   

Interest

      2,351,548   

Other assets

      411   
  

 

 

  

Total Assets

      614,942,973   

Liabilities

   

Payables for:

   

Investments purchased

      8,109,010   

Fund shares redeemed

      377,556   

Foreign taxes

      4,638   

Unrealized depreciation on forward foreign currency exchange contracts

      72,083   

Collateral for securities loaned

      90,144,388   

Accrued expenses:

   

Management fees

      301,996   

Distribution and service fees

      72,536   

Deferred trustees’ fees

      41,001   

Other expenses

      231,853   
  

 

 

  

Total Liabilities

      99,355,061   
  

 

 

  

Net Assets

    $ 515,587,912   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 531,914,113   

Undistributed net investment income

      4,989,621   

Accumulated net realized loss

      (65,864,367 ) 

Unrealized appreciation on investments and foreign currency transactions

      44,548,545   
  

 

 

  

Net Assets

    $ 515,587,912   
  

 

 

  

Net Assets

   

Class A

    $ 170,647,850   

Class B

      344,940,062   

Capital Shares Outstanding*

   

Class A

      12,990,994   

Class B

      26,444,813   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 13.14   

Class B

      13.04   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $558,872,780.
(b) Includes securities loaned at value of $87,202,810.
(c) Investments at value includes unfunded loan commitments of $30,000.
(d) Identified cost of cash denominated in foreign currencies was $2,154,706.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 4,154,277   

Interest (b)

      3,990,419   

Securities lending income

      190,280   
  

 

 

  

Total investment income

      8,334,976   

Expenses

   

Management fees

      1,611,670   

Administration fees

      5,878   

Custodian and accounting fees

      92,478   

Distribution and service fees—Class B

      357,744   

Audit and tax services

      30,270   

Legal

      11,603   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      8,440   

Insurance

      1,365   

Miscellaneous

      3,620   
  

 

 

  

Total expenses

      2,136,534   

Less broker commission recapture

      (11,960 ) 
  

 

 

  

Net expenses

      2,124,574   
  

 

 

  

Net Investment Income

      6,210,402   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      12,756,444   

Foreign currency transactions

      (45,161 ) 
  

 

 

  

Net realized gain

      12,711,283   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments (c)

      (7,026,028 ) 

Foreign currency transactions

      226,294   
  

 

 

  

Net change in unrealized depreciation

      (6,799,734 ) 
  

 

 

  

Net realized and unrealized gain

      5,911,549   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 12,121,951   
  

 

 

  

 

(a) Net of foreign withholding taxes of $255,373.
(b) Net of foreign withholding taxes of $2,038.
(c) Includes foreign capital gains tax of $4,352.

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 6,210,402      $ 11,468,125   

Net realized gain

      12,711,283        25,142,349   

Net change in unrealized appreciation (depreciation)

      (6,799,734 )      27,323,480   
  

 

 

    

 

 

  

Increase in net assets from operations

      12,121,951        63,933,954   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (4,577,342 )      (4,481,835 ) 

Class B

      (5,962,694 )      (5,479,860 ) 
  

 

 

    

 

 

  

Total distributions

      (10,540,036 )      (9,961,695 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      97,458,831        (24,799,714 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      99,040,746        29,172,545   

Net Assets

     

Beginning of period

      416,547,166        387,374,621   
  

 

 

    

 

 

  

End of period

    $ 515,587,912      $ 416,547,166   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 4,989,621      $ 9,319,255   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      149,316      $ 2,005,631        356,242      $ 4,494,632   

Shares issued through acquisition

      162,507        2,169,470        0        0   

Reinvestments

      350,217        4,577,342        358,547        4,481,835   

Redemptions

      (976,021 )      (13,143,976 )      (2,204,636 )      (27,342,913 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (313,981 )    $ (4,391,533 )      (1,489,847 )    $ (18,366,446 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,397,357      $ 18,697,781        3,067,012      $ 37,960,439   

Shares issued through acquisition

      8,430,155        111,783,861        0        0   

Reinvestments

      459,022        5,962,694        440,858        5,479,860   

Redemptions

      (2,587,749 )      (34,593,972 )      (4,041,199 )      (49,873,567 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      7,698,785      $ 101,850,364        (533,329 )    $ (6,433,268 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 97,458,831        $ (24,799,714 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 13.06      $ 11.42       $ 11.84       $ 10.00       $ 7.29       $ 13.27   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.19        0.36         0.27         0.23         0.27         0.25   

Net realized and unrealized gain (loss) on investments

      0.25        1.59         (0.39 )       1.96         2.64         (5.00 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.44        1.95         (0.12 )       2.19         2.91         (4.75 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.36 )      (0.31 )       (0.30 )       (0.35 )       (0.20 )       (0.54 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.69 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.36 )      (0.31 )       (0.30 )       (0.35 )       (0.20 )       (1.23 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.14      $ 13.06       $ 11.42       $ 11.84       $ 10.00       $ 7.29   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      3.35  (c)      17.24         (1.25 )       22.39         41.00         (39.10 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.77  (d)      0.79         0.80         0.79         0.76         0.73   

Net ratio of expenses to average net assets (%) (e)

      0.77  (d)      0.79         0.80         0.79         0.76         0.72   

Ratio of net investment income to average net assets (%)

      2.83  (d)      2.93         2.22         2.20         3.35         2.48   

Portfolio turnover rate (%)

      30  (c)      33         58         101         108         134   

Net assets, end of period (in millions)

    $ 170.6      $ 173.7       $ 168.9       $ 187.6       $ 565.4       $ 680.0   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 12.95      $ 11.33       $ 11.77       $ 9.95       $ 7.24       $ 13.22   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.17        0.33         0.24         0.19         0.25         0.22   

Net realized and unrealized gain (loss) on investments

      0.24        1.58         (0.40 )       1.96         2.64         (4.98 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.41        1.91         (0.16 )       2.15         2.89         (4.76 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.32 )      (0.29 )       (0.28 )       (0.33 )       (0.18 )       (0.53 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.69 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.32 )      (0.29 )       (0.28 )       (0.33 )       (0.18 )       (1.22 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.04      $ 12.95       $ 11.33       $ 11.77       $ 9.95       $ 7.24   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      3.20  (c)      16.93         (1.48 )       22.01         40.82         (39.26 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      1.02  (d)      1.04         1.05         1.04         1.01         0.98   

Net ratio of expenses to average net assets (%) (e)

      1.02  (d)      1.04         1.05         1.04         1.01         0.97   

Ratio of net investment income to average net assets (%)

      2.59  (d)      2.67         1.99         1.83         2.95         2.23   

Portfolio turnover rate (%)

      30  (c)      33         58         101         108         134   

Net assets, end of period (in millions)

    $ 344.9      $ 242.8       $ 218.5       $ 181.2       $ 101.6       $ 59.1   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Loomis Sayles Global Markets Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-20

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due

 

MIST-21

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

to foreign currency transactions, passive foreign investment companies (PFICs), premium amortization adjustment, broker commission recapture, convertible preferred stock and defaulted bonds. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $16,813,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

 

MIST-22

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value. As of June 30, 2013, the Portfolio had no when-issued and delayed-delivery securities.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations or an assignment, the Portfolio generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower. The Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment.

Unfunded Loan Commitments - The Portfolio may enter into certain credit agreements all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion. These commitments, if any, are disclosed in the Schedule of Investments. As of June 30, 2013, the Portfolio had open unfunded loan commitments of $30,000.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

High Yield Debt Securities - The Portfolio may invest in high yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high yield debt securities are less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s Subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

 

MIST-23

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value     

Statement of Assets &
Liabilities Location

    Fair Value  
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts    $ 372,031       Unrealized depreciation on forward foreign currency exchange contracts    $ 72,083   
     

 

 

        

 

 

  

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets in the
Statement of Assets
and Liabilities		      Financial Instrument     Collateral Received      Net Amount  

Barclays Bank plc

    $ 200,302       $ (35,987 )    $ —       $ 164,315   

Credit Suisse International

      151,494         (36,096 )      —         115,398   

Deutsche Bank AG

      20,235         —        —         20,235   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 372,031       $ (72,083 )    $ —       $ 299,948   
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities in the
Statement of Assets
and Liabilities		      Financial Instrument     Collateral Pledged      Net Amount  

Barclays Bank plc

    $ 35,987       $ (35,987 )    $ —       $ —   

Credit Suisse International

      36,096         (36,096 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 72,083       $ (72,083 )    $ —       $ —   
  

 

 

     

 

 

    

 

 

     

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ 20,206   
  

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ 317,910   
  

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(a)		  

Forward Foreign currency transactions

    $ 6,172,319   

 

  (a) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist

 

MIST-24

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 137,779,655       $ 1,481,624       $ 158,591,260   

With respect to the Portfolio’s merger with Met/Franklin Income Portfolio (see Note 9) on April 26, 2013, the Portfolio acquired securities with a cost of $104,932,223 that are not included in the above non-U.S. Government purchases value.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Loomis, Sayles & Company, L.P. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

 

MIST-25

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$1,611,670      0.700 %    First $ 500 million
     0.650 %    $ 500 million to $1 billion
     0.600 %    Over $1 billion

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$9,961,695    $ 9,728,443       $ —       $ —       $ 9,961,695       $ 9,728,443   

 

MIST-26

Met Investors Series Trust

Loomis Sayles Global Markets Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$10,471,463    $ —       $ 42,753,386       $ (78,017,554 )    $ (24,792,705 ) 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2016

    Expiring
12/31/2017		      Total  
$396,555    $ 77,620,999       $ 78,017,554   

9. Acquisition

At the close of business on April 26, 2013, the Portfolio, with aggregate Class A and Class B net assets of $175,934,064 and $250,560,658, respectively, acquired all of the assets and liabilities of Met/Franklin Income Portfolio of the Trust (“Met/Franklin Income”).

The acquisition was accomplished by a tax-free exchange of 162,507 Class A shares of the Portfolio (valued at $2,169,470) for 430,814 Class A shares of Met/Franklin Income and 8,430,155 Class B shares of the Portfolio (valued at $111,783,861) for 22,467,578 of Class B shares of Met/Franklin Income. Each shareholder of Met/Franklin Income received shares of the Portfolio with the same class designation and at the respective Class NAV, as determined at the close of business on April 26, 2013. The transaction was part of a restructuring designed to eliminate the offering of overlapping Portfolios in the MetLife, Inc. families of funds with similar investment objectives and similar investment strategies that serve as funding vehicles for insurance contracts that are offered by affiliates of MetLife. Some of the investments held by Met/Franklin Income may have been purchased or sold prior to the acquisition for the purpose of complying with the anticipated investment policies or limitations of the Portfolio after the acquisition. If such purchases or sales occurred, the transaction costs were borne by Met/Franklin Income. All other costs associated with the merger were not borne by the shareholders of either portfolio. Met/Franklin Income’s net assets on April 26, 2013, were $2,169,470 and $111,783,861 for Class A and Class B shares, respectively, including investments valued at $112,769,128 with a cost basis of $105,846,223. For financial reporting purposes, assets received, liabilities assumed and shares issued by the Portfolio were recorded at fair value; however, the cost basis of the investments received by the Portfolio from Met/Franklin Income were carried forward to align ongoing reporting of the Portfolio’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The aggregate net assets of the Portfolio immediately after the acquisition were $540,448,053, which included $6,920,215 of acquired unrealized appreciation on investments and foreign currency transactions.

Assuming the acquisition had been completed on January 1, 2013, the Portfolio’s pro-forma results of operations for the period ended June 30, 2013 are as follows:

 

Unaudited

       

Net Investment income

    $ 11,932,183 (a) 

Net realized and unrealized gain on investments

    $ 21,169,260 (b) 
  

 

 

  

Net increase in net assets from operations

    $ 33,101,443   
  

 

 

  

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Met/Franklin Income that have been included in the Portfolio’s Statement of Operations since April 26, 2013.

 

(a) $6,210,402 as reported plus $5,676,177 Met/Franklin Income pre-merger, plus $98,528 in lower advisory fees, minus $52,924 of pro-forma additional other expenses.
(b) $44,548,545 Unrealized appreciation, as reported June 30, 2013, minus $70,640,321 pro-forma December 31, 2012 Unrealized appreciation, plus $12,711,283 Net realized gain as reported, plus $34,549,753 in Net Realized gain from Met/Franklin Income pre-merger.

 

MIST-27

Met Investors Series Trust

Shareholder Votes (Unaudited)

 

At a Joint Special Meeting of Shareholders, held on February 22, 2013, the shareholders of the Portfolio voted for the following proposal:

 

     For      Against      Abstain      Total  
To approve an Agreement and Plan of Reorganization (the “Plan”) providing for the acquisition of all of the assets of Met/Franklin Income Portfolio (“Franklin Portfolio”) by Loomis Sayles Global Markets Portfolio (“Loomis Portfolio”), a series of Met Investors Series Trust, in exchange for shares of Loomis Portfolio and the assumption by Loomis Portfolio of the liabilities of Franklin Portfolio. The Plan also provides for the distribution of these shares of Loomis Portfolio to shareholders of Franklin Portfolio in liquidation and subsequent termination of Franklin Portfolio.      29,088,410.028         9,550,984.059         1,826,730.584         40,466,124.671   

 

MIST-28

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Managed by Lord, Abbett & Co. LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the Lord Abbett Bond Debenture Portfolio returned 1.70%, 1.62%, and 1.71%, respectively. The Portfolio’s benchmarks, the Barclays U.S. Aggregate Bond Index1, Bank of America (BofA) Merrill Lynch High Yield Master II Constrained Index2 and the Hybrid Index3, returned -2.44%, 1.50%, and 2.35%, respectively.

MARKET ENVIRONMENT / CONDITIONS

Fiscal and monetary policy developments loomed large in fixed-income markets in the first half of 2013. The first quarter of the year saw investors flock to select categories of risk assets as U.S. lawmakers reached agreement on legislation to address the “fiscal cliff.” While major equity indices surged, the Treasury market had a more muted reaction, with the yield on the 10-year note remaining within a range of 1.84–2.06%, according to Bloomberg. The U.S. Federal Reserve’s (“Fed”) program to purchase $85 billion per month in Treasury securities and Agency Mortgage-Backed Securities (MBS) may have limited the increase in yields. Higher-risk fixed-income categories posted positive returns.

Developments elsewhere appeared to contribute to the more favorable attitude toward risk assets. Markets in Europe stabilized after policymakers crafted a bailout of debt-plagued Cyprus, though eurozone economies continued their drift toward negative growth. In Japan, Prime Minister Shinzo Abe implemented a massive stimulus program designed to revive that nation’s moribund economy. The program prompted a rally in Japanese equities and a retreat in the yen, as the economy displayed signs of a genuine cyclical pickup. However, we believe that the stimulus policies failed to address some longer-term, fundamental problems that may ultimately undermine the rally.

In the United States, economic data pointed to moderate growth. First-quarter gross domestic product (GDP, revised estimate) rose at an annual rate of 1.8%, up from a 0.4% increase in the fourth quarter of 2012. The economy continued to add jobs at a modest pace, with non-farm payrolls rising by 175,000 in May and 165,000 in April, versus a monthly average of 207,000 for the first quarter of the year.

Inflation remained contained. In April, consumer prices posted the smallest increase since November 2010, while wholesale prices declined. Nonetheless, increasing investor concern during the second quarter that the Fed would begin to reduce the level of monetary stimulus by curtailing bond purchases spurred a rise in interest rates, with the yield on the 10-year Treasury note increasing to 2.5%. Overall, Treasuries lost 3.3% in the second quarter, while credit-sensitive assets fared better. High Yield Bonds posted losses of 1.4%; Floating-Rate Loans managed positive returns of 0.4%, and the Convertible Bond market posted positive gains of 2.2%.

At its June meeting, the Federal Open Markets Committee (FOMC) announced that it would continue its $85 billion per month bond purchase program to “support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with the [central bank’s] dual mandate” of maximum employment and price stability. However, Fed chairman Ben Bernanke indicated in a press conference that the Fed may start tapering off quantitative easing in anticipation of the unemployment rate declining to 7.0% by mid-2014. In addition, the Fed expects unemployment to reach 6.5% by the end of 2014, paving the way for an eventual increase in the fed funds rate in 2015.

PORTFOLIO REVIEW/PERIOD END POSITIONING

Detracting from relative Portfolio performance was an underweight to convertible bonds, as the convertible market outperformed the Hybrid Index during the period. Investors continued their search for yield, and as a result, lower-quality credits outperformed higher-quality credits. Detracting from relative performance was the Portfolio’s underweight to ‘CCC’ rated credits. On an absolute basis, the following sectors were the performance laggards: Energy, Basic Industry, and Real Estate.

A material contributor to relative Portfolio performance was security selection within the Portfolio’s investment grade allocation. Within investment-grade bonds, the Portfolio maintained little to no exposure to U.S. Treasuries, as we continued to see better relative value in corporate bonds. This aided performance as corporates generally outperformed Treasuries during the period. A majority of the sectors within the Portfolio contributed positively to absolute performance. Among the performance leaders were Health Care, Technology and Electronics, and Services.

The Portfolio continued to maintain an overweight asset allocation in high-yield corporates, versus the Hybrid Index. We believed high-yield bonds are still in the midst of a beneficial credit cycle, which should continue to drive demand for the asset class.

 

MIST-1

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Managed by Lord, Abbett & Co. LLC

Portfolio Manager Commentary*—(Continued)

 

On an absolute basis, among the top performing securities in the Portfolio were River Rock Entertainment 9% notes due 2018 and Vertex Pharmaceuticals 3.35% convertible bonds due 2015. Among the worst performing securities in the Portfolio were OGX Petroleum 8.5% notes due 2018 and Salesforce.com Inc. 0.75% convertible bonds due 2015.

As of June 30, 2013, the Portfolio had the following allocation: 13.7% Investment Grade Bonds, 68.3% High Yield Bonds, 16.5% equity-related securities, and 1.4% cash.

Christopher J. Towle

Portfolio Manager

Lord, Abbett & Co. LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. AGGREGATE BOND INDEX,

THE BOFA MERRILL LYNCH HIGH YIELD MASTER II CONSTRAINED INDEX & THE HYBRID INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year  
Lord Abbett Bond Debenture Portfolio                      

Class A

        1.70           8.66           9.03           7.79   

Class B

        1.62           8.39           8.76           7.53   

Class E

        1.71           8.64           8.87           7.64   
Barclays U.S. Aggregate Bond Index        -2.44           -0.69           5.19           4.52   
BofA Merrill Lynch High Yield Master II Constrained Index        1.50           9.59           10.71           8.75   
Hybrid Index        2.35           9.20           8.99           7.65   

1 The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities.

2 The Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index is a market value-weighted index of all domestic and yankee high-yield bonds with maturities of one year or more and have a credit rating lower than BBB-/Baa3, but are not in default. This index limits any individual issuer to a maximum of 2% benchmark exposure.

3 The Hybrid Index is comprised of 60% Merrill Lynch High Yield Master II Constrained Index, 20% Barclays U.S. Aggregate Bond Index, 20% BofA Merrill Lynch All Convertible Index. The BofA Merrill Lynch All Convertible Index is composed of approximately 700 issues of only convertible bonds and preferreds of all qualities.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

         
% of
Net Assets		  

First Data Corp.

      1.4   

Alliance Data Systems Corp.

      1.1   

Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu

      0.9   

Concho Resources, Inc.

      0.9   

Fannie Mae 30 Yr. Pool

      0.9   

SunGard Data Systems, Inc.

      0.8   

DISH DBS Corp.

      0.8   

Hornbeck Offshore Services, Inc.

      0.8   

Community Health Systems, Inc.

      0.7   

Sprint Capital Corp.

      0.7   

 

Top Sectors

 

    

% of
Market Value of
Total Long-Term Investments

  
Corporate Bonds & Notes      82.0   
Convertible Bonds      11.7   
Convertible Preferred Stocks      2.9   
Common Stocks      1.4   
U.S. Treasury & Government Agencies      0.9   
Preferred Stocks      0.4   
Municipals      0.3   
Investment Company Securities      0.2   
Foreign Government      0.1   
Warrants      0.1   

 

MIST-3

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Lord Abbett Bond Debenture Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

      Actual      0.54 %     $ 1,000.00         $ 1,017.00         $ 2.70   
     Hypothetical*      0.54 %     $ 1,000.00         $ 1,022.12         $ 2.71   

Class B

      Actual      0.79 %     $ 1,000.00         $ 1,016.20         $ 3.95   
     Hypothetical*      0.79 %     $ 1,000.00         $ 1,020.88         $ 3.96   

Class E

      Actual      0.69 %     $ 1,000.00         $ 1,017.10         $ 3.45   
     Hypothetical*      0.69 %     $ 1,000.00         $ 1,021.37         $ 3.46   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—80.9% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Advertising—0.4%

    

Affinion Group, Inc.
11.500%, 10/15/15 (a)

     4,250,000      $ 3,272,500   

Griffey Intermediate, Inc./Griffey Finance Sub LLC
7.000%, 10/15/20 (144A) (a)

     3,025,000        2,919,125   
   

 

 

  
      6,191,625   
   

 

 

  

Aerospace/Defense—1.8%

    

BE Aerospace, Inc.
5.250%, 04/01/22 (a)

     7,297,000        7,260,515   

Esterline Technologies Corp.
7.000%, 08/01/20

     2,100,000        2,252,250   

GenCorp, Inc.
7.125%, 03/15/21 (144A)

     2,750,000        2,846,250   

Silver II Borrower / Silver II US Holdings LLC
7.750%, 12/15/20 (144A) (a)

     3,750,000        3,768,750   

Spirit Aerosystems, Inc.
6.750%, 12/15/20

     6,710,000        6,978,400   

Triumph Group, Inc.
4.875%, 04/01/21 (144A)

     2,100,000        2,089,500   
   

 

 

  
      25,195,665   
   

 

 

  

Agriculture—0.2%

    

American Rock Salt Co. LLC / American Rock Capital Corp.
8.250%, 05/01/18 (144A)

     3,450,000        3,277,500   
   

 

 

  

Airlines—0.2%

    

American Airlines 2013-1 Class B Pass Through Trust
5.625%, 01/15/21 (144A)

     1,000,000        1,035,000   

UAL 2007-1 Pass-Through Trust
6.636%, 07/02/22

     1,604,175        1,716,467   

United Continental Holdings, Inc.
6.375%, 06/01/18

     400,000        393,000   

US Airways 2013-1 Class B Pass Through Trust
5.375%, 11/15/21

     350,000        346,500   
   

 

 

  
      3,490,967   
   

 

 

  

Apparel—0.3%

    

Levi Strauss & Co.
6.875%, 05/01/22

     1,000,000        1,085,000   

Perry Ellis International, Inc.
7.875%, 04/01/19

     2,050,000        2,157,625   

Wolverine World Wide, Inc.
6.125%, 10/15/20 (144A)

     700,000        722,750   
   

 

 

  
      3,965,375   
   

 

 

  

Auto Manufacturers—0.2%

    

Chrysler Group LLC/CG Co.-Issuer, Inc.
8.250%, 06/15/21 (a)

     1,000,000        1,103,750   

Jaguar Land Rover Automotive plc
5.625%, 02/01/23 (144A) (a)

     2,500,000        2,425,000   
   

 

 

  
      3,528,750   
   

 

 

  

Auto Parts & Equipment—0.9%

    

Commercial Vehicle Group, Inc.
7.875%, 04/15/19

     4,150,000      $ 4,155,188   

Delphi Corp.
5.000%, 02/15/23

     1,900,000        1,952,250   

International Automotive Components Group S.A.
9.125%, 06/01/18 (144A)

     2,000,000        2,000,000   

Stanadyne Corp.
10.000%, 08/15/14

     1,500,000        1,387,500   

Stanadyne Holdings, Inc.
12.000%, 02/15/15

     4,000,000        2,400,000   

Tenneco, Inc.
6.875%, 12/15/20

     1,250,000        1,337,500   
   

 

 

  
      13,232,438   
   

 

 

  

Banks—2.8%

    

CIT Group, Inc.
4.250%, 08/15/17 (a)

     1,200,000        1,206,000   

5.000%, 08/15/22

     6,000,000        5,955,000   

Discover Bank
8.700%, 11/18/19

     474,000        605,522   

Fifth Third Capital Trust IV
6.500%, 04/15/37 (b)

     4,200,000        4,184,250   

HBOS plc
6.750%, 05/21/18 (144A)

     2,000,000        2,117,674   

LBG Capital No.1 plc
8.000%, 06/15/20 (144A) (b)

     1,400,000        1,420,896   

Morgan Stanley
4.100%, 05/22/23 (a)

     2,900,000        2,679,365   

Nordea Bank AB
4.250%, 09/21/22 (144A) (a)

     1,700,000        1,677,178   

Provident Funding Associates L.P. / PFG Finance Corp.
6.750%, 06/15/21 (144A)

     1,875,000        1,870,312   

Regions Bank
6.450%, 06/26/37

     4,000,000        4,200,000   

7.500%, 05/15/18

     1,950,000        2,274,494   

Royal Bank of Scotland Group plc
6.125%, 12/15/22

     1,000,000        951,570   

7.640%, 09/29/17 (a) (b)

     3,500,000        3,132,500   

SVB Financial Group
5.375%, 09/15/20 (a)

     2,150,000        2,353,177   

Synovus Financial Corp.
7.875%, 02/15/19

     1,500,000        1,661,250   

Wachovia Capital Trust III
5.570%, 07/29/13 (a) (b)

     3,143,000        3,084,069   
   

 

 

  
      39,373,257   
   

 

 

  

Beverages—0.2%

    

Constellation Brands, Inc.
3.750%, 05/01/21 (a)

     800,000        749,000   

4.250%, 05/01/23 (a)

     2,500,000        2,359,375   
   

 

 

  
      3,108,375   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Biotechnology—0.3%

    

STHI Holding Corp.

    

8.000%, 03/15/18 (144A)

     3,500,000      $ 3,780,000   
   

 

 

  

Chemicals—3.1%

    

Ashland, Inc.
4.750%, 08/15/22 (144A)

     3,565,000        3,529,350   

Axiall Corp.
4.875%, 05/15/23 (144A)

     3,900,000        3,705,000   

CF Industries, Inc.
3.450%, 06/01/23 (a)

     1,300,000        1,249,319   

Chemtura Corp.
7.875%, 09/01/18

     3,350,000        3,626,375   

Eagle Spinco, Inc.
4.625%, 02/15/21 (144A)

     4,400,000        4,224,000   

Hexion US Finance Corp. / Hexion Nova Scotia Finance ULC
8.875%, 02/01/18 (a)

     2,200,000        2,244,000   

Huntsman International LLC
8.625%, 03/15/20

     3,500,000        3,806,250   

Ineos Finance plc
7.500%, 05/01/20 (144A) (a)

     1,350,000        1,434,375   

Methanex Corp.
5.250%, 03/01/22

     1,875,000        1,965,476   

Mosaic Global Holdings, Inc.
7.300%, 01/15/28

     4,900,000        5,918,828   

NewMarket Corp.
4.100%, 12/15/22

     1,240,000        1,201,370   

Nufarm Australia, Ltd.
6.375%, 10/15/19 (144A)

     2,200,000        2,194,500   

PetroLogistics L.P. / PetroLogistics Finance Corp.
6.250%, 04/01/20 (144A)

     950,000        931,000   

Phibro Animal Health Corp.
9.250%, 07/01/18 (144A)

     4,225,000        4,541,875   

Rockwood Specialties Group, Inc.
4.625%, 10/15/20

     2,250,000        2,261,250   

TPC Group, Inc.
8.750%, 12/15/20 (144A)

     675,000        690,188   
   

 

 

  
      43,523,156   
   

 

 

  

Coal—0.1%

    

Arch Coal, Inc.
7.250%, 06/15/21 (a)

     1,500,000        1,215,000   
   

 

 

  

Commercial Services—3.1%

    

Alliance Data Systems Corp.
6.375%, 04/01/20 (144A)

     8,500,000        8,755,000   

Avis Budget Car Rental LLC / Avis Budget Finance, Inc.
9.750%, 03/15/20 (a)

     1,100,000        1,265,000   

Ceridian Corp.
11.000%, 03/15/21 (144A) (a)

     525,000        580,125   

11.250%, 11/15/15 (a)

     2,325,000        2,356,969   

FTI Consulting, Inc.
6.000%, 11/15/22 (144A)

     1,750,000        1,771,875   

6.750%, 10/01/20 (a)

     1,000,000        1,052,500   

Great Lakes Dredge & Dock Corp.
7.375%, 02/01/19

     2,300,000        2,383,375   

Commercial Services—(Continued)

  

Hertz Corp. (The)

    

7.500%, 10/15/18

     7,500,000      $ 8,043,750   

Iron Mountain, Inc.

    

7.750%, 10/01/19

     1,425,000        1,531,875   

NES Rentals Holdings, Inc.

    

7.875%, 05/01/18 (144A) (a)

     1,400,000        1,382,500   

Rent-A-Center, Inc.

    

4.750%, 05/01/21 (144A)

     925,000        876,437   

Service Corp. International/US

    

5.375%, 01/15/22 (144A)

     675,000        673,313   

Sotheby’s
5.250%, 10/01/22 (144A) (a)

     4,300,000        4,171,000   

Truven Health Analytics, Inc.
10.625%, 06/01/20 (144A)

     3,300,000        3,630,000   

United Rentals North America, Inc.
6.125%, 06/15/23

     1,300,000        1,293,500   

7.625%, 04/15/22

     2,000,000        2,165,000   

8.250%, 02/01/21 (a)

     2,375,000        2,600,625   
   

 

 

  
      44,532,844   
   

 

 

  

Computers—1.2%

  

Seagate HDD Cayman
6.875%, 05/01/20

     1,500,000        1,590,000   

SRA International, Inc.
11.000%, 10/01/19 (a)

     3,550,000        3,656,500   

SunGard Data Systems, Inc.
6.625%, 11/01/19 (144A)

     5,500,000        5,527,500   

7.375%, 11/15/18

     4,000,000        4,220,000   

7.625%, 11/15/20 (a)

     1,450,000        1,537,000   
   

 

 

  
      16,531,000   
   

 

 

  

Construction Materials—0.9%

    

Associated Materials LLC / AMH New Finance, Inc.
9.125%, 11/01/17 (144A)

     425,000        446,250   

Griffon Corp.
7.125%, 04/01/18

     1,575,000        1,649,812   

Interline Brands, Inc.
10.000%, 11/15/18 (a) (c)

     500,000        537,500   

Louisiana-Pacific Corp.
7.500%, 06/01/20

     1,500,000        1,635,000   

Masco Corp.
7.125%, 03/15/20

     3,000,000        3,345,000   

Nortek, Inc.
8.500%, 04/15/21 (144A)

     1,000,000        1,060,000   

Owens Corning
4.200%, 12/15/22

     1,875,000        1,816,851   

9.000%, 06/15/19 (a)

     1,625,000        1,995,074   
   

 

 

  
      12,485,487   
   

 

 

  

Distribution/Wholesale—0.3%

    

American Builders & Contractors Supply Co., Inc.
5.625%, 04/15/21 (144A)

     700,000        687,750   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Distribution/Wholesale—(Continued)

  

HD Supply, Inc.
10.500%, 01/15/21 (a)

     550,000      $ 569,250   

11.500%, 07/15/20

     1,450,000        1,682,000   

LKQ Corp.
4.750%, 05/15/23 (144A)

     1,650,000        1,575,750   
   

 

 

  
      4,514,750   
   

 

 

  

Diversified Financial Services—3.7%

    

Cantor Fitzgerald L.P.
7.875%, 10/15/19 (144A)

     2,550,000        2,609,423   

Compiler Finance Sub, Inc.
7.000%, 05/01/21 (144A)

     2,850,000        2,764,500   

Discover Financial Services
3.850%, 11/21/22

     1,526,000        1,433,047   

General Motors Financial Co., Inc.
4.250%, 05/15/23 (144A) (a)

     650,000        605,312   

International Lease Finance Corp.
6.250%, 05/15/19 (a)

     2,000,000        2,055,000   

8.250%, 12/15/20 (a)

     1,000,000        1,123,750   

8.750%, 03/15/17

     4,000,000        4,455,000   

Legg Mason, Inc.
5.500%, 05/21/19 (a)

     2,000,000        2,060,934   

Macquarie Group, Ltd.
6.000%, 01/14/20 (144A)

     2,500,000        2,595,950   

Nationstar Mortgage LLC / Nationstar Capital Corp.
6.500%, 07/01/21

     4,200,000        4,032,000   

6.500%, 06/01/22

     2,600,000        2,535,000   

7.875%, 10/01/20

     1,950,000        2,067,000   

Neuberger Berman Group LLC / Neuberger Berman Finance Corp.
5.625%, 03/15/20 (144A) (a)

     700,000        724,500   

5.875%, 03/15/22 (144A)

     3,500,000        3,570,000   

Nuveen Investments, Inc.
9.125%, 10/15/17 (144A)

     5,000,000        5,012,500   

9.500%, 10/15/20 (144A) (a)

     3,600,000        3,582,000   

Raymond James Financial, Inc.
8.600%, 08/15/19

     4,075,000        5,067,218   

Rivers Pittsburgh Borrower L.P. / Rivers Pittsburgh Finance Corp.
9.500%, 06/15/19 (144A) (a)

     2,140,000        2,311,200   

SLM Corp.
6.000%, 01/25/17

     1,300,000        1,358,500   

8.450%, 06/15/18

     1,700,000        1,887,000   
   

 

 

  
      51,849,834   
   

 

 

  

Electric—2.0%

    

AES Corp.
4.875%, 05/15/23

     1,200,000        1,119,000   

Black Hills Corp.
5.875%, 07/15/20

     2,000,000        2,230,718   

Calpine Corp.
7.875%, 07/31/20 (144A)

     725,000        786,625   

Coso Geothermal Power Holdings LLC
7.000%, 07/15/26 (144A)

     976,780        527,461   

DPL, Inc.
7.250%, 10/15/21

     2,650,000        2,742,750   

Electric—(Continued)

  

Duquesne Light Holdings, Inc.
6.400%, 09/15/20 (144A)

     5,000,000      $ 5,819,275   

Energy Future Intermediate Holding Co. LLC / EFIH Finance, Inc.
11.250%, 12/01/18 (144A) (c)

     1,589,833        1,343,409   

Mirant Americas Generation LLC
9.125%, 05/01/31 (a)

     2,075,000        2,220,250   

National Fuel Gas Co.
6.500%, 04/15/18

     5,000,000        5,812,195   

NRG Energy, Inc.
7.625%, 01/15/18

     2,000,000        2,140,000   

NSG Holdings LLC / NSG Holdings, Inc.
7.750%, 12/15/25 (144A)

     3,175,000        3,286,125   
   

 

 

  
      28,027,808   
   

 

 

  

Electrical Components & Equipment—0.3%

  

Anixter, Inc.
5.625%, 05/01/19

     2,125,000        2,199,375   

Belden, Inc.
5.500%, 09/01/22 (144A)

     2,500,000        2,456,250   
   

 

 

  
      4,655,625   
   

 

 

  

Electronics—0.2%

    

Jabil Circuit, Inc.
4.700%, 09/15/22

     1,500,000        1,443,750   

Stoneridge, Inc.
9.500%, 10/15/17 (144A)

     1,725,000        1,845,750   
   

 

 

  
      3,289,500   
   

 

 

  

Energy-Alternate Sources—0.2%

    

Alta Wind Holdings LLC
7.000%, 06/30/35 (144A)

     2,104,151        2,207,585   
   

 

 

  
   

Engineering & Construction—0.5%

  

Dycom Investments, Inc.
7.125%, 01/15/21

     4,375,000        4,637,500   

MasTec, Inc.
4.875%, 03/15/23

     2,400,000        2,280,000   
   

 

 

  
      6,917,500   
   

 

 

  

Entertainment—1.9%

  

CCM Merger, Inc.
9.125%, 05/01/19 (144A) (a)

     2,450,000        2,560,250   

Cedar Fair L.P. / Canada’s Wonderland Co. / Magnum Management Corp.
5.250%, 03/15/21 (144A)

     1,700,000        1,632,000   

Graton Economic Development Authority
9.625%, 09/01/19 (144A)

     3,755,000        4,111,725   

Mohegan Tribal Gaming Authority
11.500%, 11/01/17 (144A)

     3,000,000        3,315,000   

MU Finance plc
8.375%, 02/01/17 (144A)

     2,568,511        2,735,465   

Peninsula Gaming LLC
8.375%, 02/15/18 (144A)

     2,200,000        2,288,000   

Pinnacle Entertainment, Inc.
7.750%, 04/01/22 (a)

     1,500,000        1,567,500   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Entertainment—(Continued)

  

River Rock Entertainment Authority (The)
9.000%, 11/01/18

     2,482,000      $ 2,010,420   

Snoqualmie Entertainment Authority
9.125%, 02/01/15 (144A)

     2,975,000        2,930,375   

Speedway Motorsports, Inc.
6.750%, 02/01/19

     1,600,000        1,672,000   

WMG Acquisition Corp.
6.000%, 01/15/21 (144A) (a)

     720,000        732,600   

11.500%, 10/01/18

     1,000,000        1,145,000   
   

 

 

  
      26,700,335   
   

 

 

  

Environmental Control—0.2%

    

Clean Harbors, Inc.
5.250%, 08/01/20

     2,700,000        2,740,500   
   

 

 

  

Food—1.1%

    

B&G Foods, Inc.
4.625%, 06/01/21

     2,100,000        2,005,500   

Cencosud S.A.
4.875%, 01/20/23 (144A) (a)

     900,000        882,263   

Del Monte Corp.
7.625%, 02/15/19

     2,000,000        2,055,000   

Land O’ Lakes, Inc.
6.000%, 11/15/22 (144A)

     1,750,000        1,802,500   

Michael Foods Holding, Inc.
8.500%, 07/15/18 (144A) (c)

     850,000        875,500   

Post Holdings, Inc.
7.375%, 02/15/22

     3,000,000        3,210,000   

Smithfield Foods, Inc.
6.625%, 08/15/22

     875,000        940,625   

US Foods, Inc.
8.500%, 06/30/19 (a)

     3,500,000        3,657,500   
   

 

 

  
      15,428,888   
   

 

 

  

Forest Products & Paper—0.4%

    

Longview Fibre Paper & Packaging, Inc.
8.000%, 06/01/16 (144A)

     3,000,000        3,127,500   
   

Millar Western Forest Products, Ltd.
8.500%, 04/01/21

     2,000,000        1,975,000   

Unifrax I LLC / Unifrax Holding Co.
7.500%, 02/15/19 (144A)

     1,175,000        1,198,500   
   

 

 

  
      6,301,000   
   

 

 

  

Gas—0.1%

  

LBC Tank Terminals Holding Netherlands B.V.
6.875%, 05/15/23 (144A)

     1,350,000        1,353,375   
   

 

 

  

Hand/Machine Tools—0.5%

  

BC Mountain LLC / BC Mountain Finance, Inc. 7.000%, 02/01/21 (144A)

     1,675,000        1,708,500   

Mcron Finance Sub LLC / Mcron Finance Corp. 8.375%, 05/15/19 (144A)

     3,500,000       
 3,570,000
   

Milacron LLC / Mcron Finance Corp.
7.750%, 02/15/21 (144A)

     2,100,000        2,094,750   
   

 

 

  
      7,373,250   
   

 

 

  

Healthcare-Products—0.4%

  

Biomet, Inc.
6.500%, 08/01/20 (a)

     3,000,000      $ 3,091,875   

Hologic, Inc.
6.250%, 08/01/20

     1,625,000        1,684,922   

Mallinckrodt International Finance S.A.
4.750%, 04/15/23 (144A)

     1,100,000        1,047,865   
   

 

 

  
      5,824,662   
   

 

 

  

Healthcare-Services—3.0%

  

Amsurg Corp.
5.625%, 11/30/20

     1,836,000        1,836,000   

Centene Corp.
5.750%, 06/01/17

     3,250,000        3,404,375   

Community Health Systems, Inc.
8.000%, 11/15/19 (a)

     10,000,000        10,637,500   

DaVita HealthCare Partners, Inc.
5.750%, 08/15/22

     3,500,000        3,491,250   

HCA Holdings, Inc.
6.250%, 02/15/21 (a)

     1,400,000        1,428,000   

7.750%, 05/15/21 (a)

     6,150,000        6,642,000   

HCA, Inc.
7.500%, 02/15/22 (a)

     5,000,000        5,537,500   

7.690%, 06/15/25

     950,000        1,026,000   

HealthSouth Corp.
8.125%, 02/15/20 (a)

     3,400,000        3,680,500   

Vanguard Health Holding Co. II LLC / Vanguard Holding Co. II, Inc.
8.000%, 02/01/18 (a)

     5,000,000        5,300,000   
   

 

 

  
      42,983,125   
   

 

 

  

Holding Companies-Diversified—0.1%

  

Boart Longyear Management Pty, Ltd.
7.000%, 04/01/21 (144A)

     1,500,000        1,413,750   
   

 

 

  

Home Builders—0.7%

    

Brookfield Residential Properties, Inc.
6.500%, 12/15/20 (144A)

     1,600,000        1,612,000   

K. Hovnanian Enterprises, Inc.
5.000%, 11/01/21

     1,050,000        945,000   

KB Home
9.100%, 09/15/17

     2,000,000        2,240,000   

Lennar Corp.
4.125%, 12/01/18 (144A) (a)

     1,100,000        1,042,250   

12.250%, 06/01/17 (a)

     900,000        1,154,250   

Ryland Group, Inc. (The)
5.375%, 10/01/22

     2,000,000        1,930,000   

Taylor Morrison Communities, Inc./Monarch Communities, Inc.
5.250%, 04/15/21 (144A)

     1,500,000        1,425,000   
   

 

 

  
      10,348,500   
   

 

 

  

Household Products—0.6%

  

Avon Products, Inc.
4.600%, 03/15/20 (a)

     1,050,000        1,061,608   

5.000%, 03/15/23 (a)

     1,200,000        1,192,784   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Household Products—(Continued)

  

Elizabeth Arden, Inc.
7.375%, 03/15/21

     5,975,000      $ 6,393,250   
   

 

 

  
      8,647,642   
   

 

 

  

Household Products/Wares—1.5%

  

Prestige Brands, Inc.
8.125%, 02/01/20 (a)

     525,000        573,563   

Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC / Reynolds Group Issuer Lu
5.750%, 10/15/20 (a)

     1,250,000        1,259,375   

8.500%, 05/15/18

     9,500,000        9,785,000   

9.875%, 08/15/19

     1,650,000        1,765,500   

Scotts Miracle-Gro Co. (The)
6.625%, 12/15/20

     4,500,000        4,770,000   

Spectrum Brands Escrow Corp.
6.375%, 11/15/20 (144A) (a)

     2,500,000        2,618,750   

6.625%, 11/15/22 (144A)

     500,000        523,750   
   

 

 

  
      21,295,938   
   

 

 

  

Housewares—0.3%

  

A/S Americas
10.750%, 01/15/16 (144A)

     3,000,000        3,150,000   

RSI Home Products, Inc.
6.875%, 03/01/18 (144A) (a)

     950,000        971,375   
   

 

 

  
      4,121,375   
   

 

 

  

Insurance—0.7%

  

A-S Co-Issuer Subsidiary, Inc./A-S Merger Sub LLC
7.875%, 12/15/20 (144A) (a)

     1,750,000        1,758,750   

Fidelity National Financial, Inc.
6.600%, 05/15/17 (a)

     3,700,000        4,100,988   

HUB International, Ltd.
8.125%, 10/15/18 (144A)

     3,500,000        3,640,000   
   

 

 

  
      9,499,738   
   

 

 

  

Internet—0.7%

  

Cogent Communications Group, Inc.
8.375%, 02/15/18 (144A)

     1,790,000        1,951,100   

Equinix, Inc.
7.000%, 07/15/21

     2,450,000        2,658,250   

Netflix, Inc.
5.375%, 02/01/21 (144A)

     2,650,000        2,636,750   

VeriSign, Inc.
4.625%, 05/01/23 (144A)

     2,550,000        2,473,500   
   

 

 

  
      9,719,600   
   

 

 

  

Iron/Steel—0.4%

  

Allegheny Ludlum Corp.
6.950%, 12/15/25

     2,700,000        2,915,638   

Cliffs Natural Resources, Inc.
5.900%, 03/15/20 (a)

     2,000,000        1,927,216   

Essar Steel Algoma, Inc.
9.875%, 06/15/15 (144A) (a)

     1,000,000        770,000   
   

 

 

  
      5,612,854   
   

 

 

  

Leisure Time—0.2%

  

Royal Caribbean Cruises, Ltd.
5.250%, 11/15/22 (a)

     1,500,000      $ 1,470,000   

Viking Cruises, Ltd.
8.500%, 10/15/22 (144A)

     1,200,000        1,314,000   
   

 

 

  
      2,784,000   
   

 

 

  

Lodging—0.7%

  

Downstream Development Authority of the Quapaw Tribe of Oklahoma
10.500%, 07/01/19 (144A)

     1,700,000        1,802,000   

MCE Finance, Ltd.
5.000%, 02/15/21 (144A)

     3,250,000        3,046,875   

MTR Gaming Group, Inc.
11.500%, 08/01/19 (c)

     1,525,000        1,593,625   

Seminole Hard Rock Entertainment, Inc./Seminole Hard Rock International LLC
5.875%, 05/15/21 (144A)

     1,100,000        1,067,000   

Sugarhouse HSP Gaming Prop Mezz L.P./Sugarhouse HSP Gaming Finance Corp.
6.375%, 06/01/21 (144A)

     2,400,000        2,322,000   
   

 

 

  
      9,831,500   
   

 

 

  

Machinery - Diversified—0.8%

  

Cleaver-Brooks, Inc.
8.750%, 12/15/19 (144A)

     1,750,000        1,837,500   

Flowserve Corp.
3.500%, 09/15/22

     1,500,000        1,440,642   

Manitowoc Co., Inc. (The)
5.875%, 10/15/22

     2,225,000        2,236,125   

8.500%, 11/01/20

     4,900,000        5,341,000   
   

 

 

  
      10,855,267   
   

 

 

  

Media—4.1%

  

AMC Networks, Inc.
4.750%, 12/15/22 (a)

     2,000,000        1,930,000   

7.750%, 07/15/21

     1,500,000        1,638,750   

Cablevision Systems Corp.
5.875%, 09/15/22 (a)

     4,500,000        4,353,750   

CCO Holdings LLC / CCO Holdings Capital Corp.
5.250%, 03/15/21 (144A) (a)

     1,600,000        1,576,000   

5.750%, 09/01/23 (144A)

     3,000,000        2,902,500   

8.125%, 04/30/20

     3,000,000        3,277,500   

Clear Channel Communications, Inc.
4.900%, 05/15/15 (a)

     1,000,000        925,000   

9.000%, 12/15/19 (144A) (a)

     3,500,000        3,395,000   

11.250%, 03/01/21 (144A) (a)

     3,250,000        3,388,125   

DISH DBS Corp.
4.250%, 04/01/18 (144A)

     1,700,000        1,666,000   

4.625%, 07/15/17 (a)

     1,300,000        1,306,500   

5.125%, 05/01/20 (144A)

     2,800,000        2,744,000   

5.875%, 07/15/22

     1,500,000        1,522,500   

6.750%, 06/01/21 (a)

     3,350,000        3,559,375   

Harron Communications L.P. / Harron Finance Corp.
9.125%, 04/01/20 (144A)

     1,575,000        1,701,000   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—(Continued)

  

LIN Television Corp.
8.375%, 04/15/18 (a)

     1,250,000      $ 1,329,688   

Mediacom Broadband LLC / Mediacom Broadband Corp.
6.375%, 04/01/23 (a)

     5,050,000        5,024,750   

Mediacom LLC / Mediacom Capital Corp.
9.125%, 08/15/19

     6,350,000        6,826,250   

Nara Cable Funding, Ltd.
8.875%, 12/01/18 (144A)

     1,575,000        1,638,000   

Ono Finance II plc
10.875%, 07/15/19 (144A)

     1,750,000        1,820,000   

ProQuest LLC / ProQuest Notes Co.
9.000%, 10/15/18 (144A)

     3,150,000        3,150,000   

Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH
5.500%, 01/15/23 (144A)

     2,150,000        2,031,750   
   

 

 

  
      57,706,438   
   

 

 

  

Metal Fabricate/Hardware—0.5%

    

Constellation Enterprises LLC
10.625%, 02/01/16 (144A)

     3,325,000        3,408,125   

Valmont Industries, Inc.
6.625%, 04/20/20 (a)

     3,500,000        3,990,819   
   

 

 

  
      7,398,944   
   

 

 

  

Mining—0.7%

    

Allied Nevada Gold Corp.
8.750%, 06/01/19 (144A) (CAD)

     850,000        695,065   

FMG Resources (August 2006) Pty, Ltd.
8.250%, 11/01/19 (144A) (a)

     5,000,000        5,150,000   

Gold Fields Orogen Holding BVI, Ltd.
4.875%, 10/07/20 (144A)

     1,000,000        845,000   

Mirabela Nickel, Ltd.
8.750%, 04/15/18 (144A) (a)

     2,800,000        2,212,000   

Teck Resources, Ltd.
4.750%, 01/15/22 (a)

     1,400,000        1,392,390   
   

 

 

  
      10,294,455   
   

 

 

  

Miscellaneous Manufacturing—1.5%

    

Actuant Corp.
5.625%, 06/15/22 (a)

     1,075,000        1,088,438   

Amsted Industries, Inc.
8.125%, 03/15/18 (144A)

     2,250,000        2,373,750   

Bombardier, Inc.
6.125%, 01/15/23 (144A)

     1,825,000        1,811,312   

Park-Ohio Industries, Inc.
8.125%, 04/01/21 (a)

     2,000,000        2,170,000   

Polymer Group, Inc.
7.750%, 02/01/19

     3,000,000        3,120,000   

RBS Global, Inc. / Rexnord LLC
8.500%, 05/01/18 (a)

     6,000,000        6,375,000   

SPX Corp.
6.875%, 09/01/17

     3,750,000        4,050,000   
   

 

 

  
      20,988,500   
   

 

 

  

Office Furnishings—0.2%

    

Steelcase, Inc.
6.375%, 02/15/21

     3,000,000      $ 3,240,432   
   

 

 

  

Oil & Gas—9.8%

    

Antero Resources Finance Corp.
7.250%, 08/01/19

     2,500,000        2,606,250   

Atlas Energy Holdings Operating Co. LLC / Atlas Resource Finance Corp.
7.750%, 01/15/21 (144A) (a)

     3,400,000        3,247,000   

Berry Petroleum Co.
6.375%, 09/15/22 (a)

     1,100,000        1,095,875   

6.750%, 11/01/20 (a)

     5,250,000        5,433,750   

BreitBurn Energy Partners L.P. / BreitBurn Finance Corp.
7.875%, 04/15/22

     3,600,000        3,672,000   

Chaparral Energy, Inc.
7.625%, 11/15/22 (a)

     1,700,000        1,734,000   

8.250%, 09/01/21

     5,675,000        5,972,937   

Concho Resources, Inc.
5.500%, 04/01/23 (a)

     4,600,000        4,531,000   

7.000%, 01/15/21

     5,175,000        5,563,125   

Continental Resources, Inc.
4.500%, 04/15/23 (144A) (a)

     1,500,000        1,458,750   

7.375%, 10/01/20

     1,250,000        1,387,500   

8.250%, 10/01/19

     2,000,000        2,190,000   

CrownRock L.P. / CrownRock Finance, Inc.
7.125%, 04/15/21 (144A)

     2,150,000        2,107,000   

Energy XXI Gulf Coast, Inc.
7.750%, 06/15/19 (a)

     3,360,000        3,460,800   

Forest Oil Corp.
7.250%, 06/15/19 (a)

     1,500,000        1,410,000   

Halcon Resources Corp.
8.875%, 05/15/21

     2,800,000        2,716,000   

9.750%, 07/15/20

     1,200,000        1,197,000   

Kerr-McGee Corp.
6.950%, 07/01/24

     5,850,000        6,993,336   

Kodiak Oil & Gas Corp.
5.500%, 01/15/21 (144A) (a)

     2,500,000        2,437,500   

8.125%, 12/01/19 (a)

     3,250,000        3,526,250   

Laredo Petroleum, Inc.
7.375%, 05/01/22 (a)

     1,300,000        1,365,000   

Legacy Reserves L.P. / Legacy Reserves Finance
Corp.
6.625%, 12/01/21 (144A) (a)

     1,300,000        1,251,250   

8.000%, 12/01/20 (144A)

     3,600,000        3,717,000   

Linn Energy LLC / Linn Energy Finance Corp.
7.750%, 02/01/21 (a)

     4,000,000        4,010,000   

Lukoil International Finance B.V.
6.656%, 06/07/22 (144A)

     3,000,000        3,262,500   

MEG Energy Corp.
6.500%, 03/15/21 (144A)

     3,675,000        3,642,844   

Newfield Exploration Co.
5.625%, 07/01/24

     4,950,000        4,801,500   

Oasis Petroleum, Inc.
6.500%, 11/01/21 (a)

     1,500,000        1,537,500   

7.250%, 02/01/19 (a)

     6,000,000        6,255,000   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

  

Offshore Group Investment, Ltd.
7.125%, 04/01/23 (144A)

     1,150,000      $ 1,129,875   

OGX Austria GmbH
8.500%, 06/01/18 (144A)

     2,800,000        882,000   

Pacific Rubiales Energy Corp.
5.125%, 03/28/23 (144A) (a)

     1,700,000        1,606,500   

PDC Energy, Inc.
7.750%, 10/15/22 (144A)

     2,400,000        2,478,000   

Pioneer Natural Resources Co.
7.200%, 01/15/28

     1,510,000        1,834,715   

Plains Exploration & Production Co.
6.500%, 11/15/20

     4,000,000        4,240,820   

6.875%, 02/15/23

     1,100,000        1,176,892   

Precision Drilling Corp.
6.500%, 12/15/21 (a)

     650,000        658,125   

QEP Resources, Inc.
6.800%, 03/01/20

     1,450,000        1,602,250   

6.875%, 03/01/21

     1,000,000        1,077,500   

Range Resources Corp.
5.000%, 03/15/23 (a)

     2,450,000        2,394,875   

8.000%, 05/15/19

     1,975,000        2,103,375   

Rosneft Oil Co. via Rosneft International Finance, Ltd.
4.199%, 03/06/22 (144A)

     1,650,000        1,528,725   

SM Energy Co.
6.500%, 11/15/21

     2,250,000        2,362,500   

6.500%, 01/01/23

     800,000        840,000   

6.625%, 02/15/19

     4,775,000        5,001,813   

Stone Energy Corp.
7.500%, 11/15/22

     4,850,000        5,019,750   

Tesoro Corp.
5.375%, 10/01/22 (a)

     1,500,000        1,518,750   

W&T Offshore, Inc.
8.500%, 06/15/19 (a)

     2,250,000        2,323,125   

Whiting Petroleum Corp.
6.500%, 10/01/18 (a)

     3,000,000        3,172,500   

WPX Energy, Inc.
6.000%, 01/15/22

     3,500,000        3,535,000   
   

 

 

  
      139,069,757   
   

 

 

  

Oil & Gas Services—1.5%

    

Dresser-Rand Group, Inc.
6.500%, 05/01/21

     3,500,000        3,710,000   

FMC Technologies, Inc.
3.450%, 10/01/22

     2,200,000        2,107,455   

Hiland Partners L.P. / Hiland Partners Finance Corp.
7.250%, 10/01/20 (144A)

     1,350,000        1,390,500   

Hornbeck Offshore Services, Inc.
5.000%, 03/01/21 (144A)

     3,000,000        2,782,500   

5.875%, 04/01/20

     3,700,000        3,718,500   

Oil States International, Inc.
6.500%, 06/01/19 (a)

     3,175,000        3,286,125   

SEACOR Holdings, Inc.
7.375%, 10/01/19

     4,150,000        4,378,420   
   

 

 

  
      21,373,500   
   

 

 

  

Packaging & Containers—2.0%

    

AEP Industries, Inc.
8.250%, 04/15/19

     2,500,000      $ 2,690,625   

Ball Corp.
4.000%, 11/15/23 (a)

     2,750,000        2,543,750   

Crown Cork & Seal Co., Inc.
7.375%, 12/15/26 (a)

     8,500,000        9,350,000   

Packaging Dynamics Corp.
8.750%, 02/01/16 (144A)

     1,500,000        1,515,000   

Rock Tenn Co.
3.500%, 03/01/20

     1,280,000        1,252,508   

4.900%, 03/01/22

     1,500,000        1,546,005   

Sealed Air Corp.
6.875%, 07/15/33 (144A)

     4,500,000        4,275,000   

8.375%, 09/15/21 (144A) (a)

     3,200,000        3,616,000   

Tekni-Plex, Inc.
9.750%, 06/01/19 (144A)

     1,760,000        1,870,000   
   

 

 

  
      28,658,888   
   

 

 

  

Pharmaceuticals—0.4%

    

Grifols, Inc.
8.250%, 02/01/18

     1,500,000        1,612,500   

Sky Growth Acquisition Corp.
7.375%, 10/15/20 (144A)

     4,150,000        4,253,750   
   

 

 

  
      5,866,250   
   

 

 

  

Pipelines—2.4%

    

El Paso LLC
6.500%, 09/15/20 (a)

     3,200,000        3,411,638   

7.000%, 06/15/17

     2,000,000        2,174,318   

Energy Transfer Partners L.P.
5.200%, 02/01/22 (a)

     4,500,000        4,762,242   

IFM US Colonial Pipeline 2 LLC
6.450%, 05/01/21 (144A)

     4,900,000        5,250,860   

Inergy Midstream L.P. / NRGM Finance Corp.
6.000%, 12/15/20 (144A)

     650,000        627,250   

Kinder Morgan Finance Co. LLC
6.000%, 01/15/18 (144A)

     2,000,000        2,099,798   

MarkWest Energy Partners L.P. / MarkWest Energy Finance Corp.
5.500%, 02/15/23

     1,475,000        1,452,875   

6.750%, 11/01/20 (a)

     3,000,000        3,165,000   

Panhandle Eastern Pipeline Co. L.P.
7.000%, 06/15/18

     1,850,000        2,215,049   

Regency Energy Partners L.P. / Regency Energy Finance Corp.
4.500%, 11/01/23 (144A) (a)

     900,000        814,500   

5.500%, 04/15/23

     1,100,000        1,083,500   

Sabine Pass Liquefaction LLC
5.625%, 02/01/21 (144A)

     1,925,000        1,867,250   

Tennessee Gas Pipeline Co.
7.500%, 04/01/17

     3,500,000        4,161,325   

Tesoro Logistics L.P. / Tesoro Logistics Finance Corp.
5.875%, 10/01/20 (144A)

     1,500,000        1,477,500   
   

 

 

  
      34,563,105   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Real Estate—0.1%

    

Jones Lang LaSalle, Inc.
4.400%, 11/15/22

     1,100,000      $ 1,079,400   
   

 

 

  

Real Estate Investment Trusts—1.7%

    

American Tower Corp.
4.700%, 03/15/22

     2,750,000        2,773,633   

DDR Corp.
7.875%, 09/01/20

     2,625,000        3,201,865   

Goodman Funding Pty, Ltd.
6.000%, 03/22/22 (144A) (a)

     2,400,000        2,642,858   

6.375%, 11/12/20 (144A)

     1,500,000        1,671,615   

Health Care REIT, Inc.
4.950%, 01/15/21

     2,150,000        2,287,699   

6.125%, 04/15/20

     1,500,000        1,704,005   

Host Hotels & Resorts L.P.
5.250%, 03/15/22

     700,000        725,186   

Kilroy Realty L.P.
3.800%, 01/15/23

     2,225,000        2,084,213   

Omega Healthcare Investors, Inc.
6.750%, 10/15/22

     1,675,000        1,783,875   

ProLogis L.P.
6.875%, 03/15/20 (d)

     4,000,000        4,641,348   

RHP Hotel Properties L.P. / RHP Finance Corp.
5.000%, 04/15/21 (144A)

     1,000,000        970,000   
   

 

 

  
      24,486,297   
   

 

 

  

Retail—5.4%

    

Bon-Ton Department Stores, Inc. (The)
8.000%, 06/15/21 (144A) (a)

     1,350,000        1,371,938   

Brinker International, Inc.
2.600%, 05/15/18 (a)

     2,705,000        2,647,562   

Brookstone Co., Inc.
13.000%, 10/15/14 (144A)

     3,089,000        2,594,760   

Brown Shoe Co., Inc.
7.125%, 05/15/19

     3,500,000        3,657,500   

CDR DB Sub, Inc.
7.750%, 10/15/20 (144A)

     4,500,000        4,511,250   

Claire’s Stores, Inc.
7.750%, 06/01/20 (144A) (a)

     1,000,000        967,500   

8.875%, 03/15/19 (a)

     2,275,000        2,388,750   

9.000%, 03/15/19 (144A)

     1,800,000        1,980,000   

CST Brands, Inc.
5.000%, 05/01/23 (144A)

     2,000,000        1,950,000   

DineEquity, Inc.
9.500%, 10/30/18 (a)

     3,500,000        3,885,000   

Ferrellgas L.P. / Ferrellgas Finance Corp.
6.500%, 05/01/21 (a)

     1,750,000        1,754,375   

J. Crew Group, Inc.
8.125%, 03/01/19 (a)

     3,500,000        3,675,000   

L Brands, Inc.
7.000%, 05/01/20

     3,000,000        3,330,000   

7.600%, 07/15/37 (a)

     1,000,000        1,027,500   

8.500%, 06/15/19 (a)

     1,250,000        1,450,000   

Michaels Stores, Inc.
7.750%, 11/01/18 (a)

     1,400,000        1,498,000   

Retail—(Continued)

  

New Albertsons, Inc.
7.450%, 08/01/29 (a)

     1,000,000      $ 785,000   

7.750%, 06/15/26

     875,000        690,156   

Petco Animal Supplies, Inc.
9.250%, 12/01/18 (144A) (a)

     1,500,000        1,616,250   

Petco Holdings, Inc.
8.500%, 10/15/17 (144A) (c)

     1,500,000        1,530,000   

PVH Corp.
4.500%, 12/15/22

     600,000        576,000   
   

QVC, Inc.
4.375%, 03/15/23 (144A)

     1,425,000        1,329,199   

7.375%, 10/15/20 (144A) (a)

     2,500,000        2,727,110   

Rite Aid Corp.
6.875%, 12/15/28 (144A)

     1,000,000        910,000   

7.700%, 02/15/27

     5,500,000        5,500,000   

9.500%, 06/15/17

     2,000,000        2,075,600   

Sally Holdings LLC / Sally Capital, Inc.
5.750%, 06/01/22 (a)

     1,475,000        1,497,125   

Serta Simmons Holdings LLC
8.125%, 10/01/20 (144A) (a)

     2,500,000        2,543,750   

Shearer’s Foods LLC / Chip Fin Corp.
9.000%, 11/01/19 (144A)

     2,800,000        2,961,000   

Suburban Propane Partners L.P. / Suburban Energy Finance Corp.
7.375%, 08/01/21

     4,093,000        4,256,720   

Tops Holding Corp. / Tops Markets LLC
8.875%, 12/15/17 (144A)

     3,500,000        3,788,750   

Tops Holding II Corp.
8.750%, 06/15/18 (144A) (c)

     1,100,000        1,080,750   

Toys “R” Us Property Co. I LLC
10.750%, 07/15/17

     2,900,000        3,059,500   

Toys “R” Us Property Co. II LLC
8.500%, 12/01/17 (a)

     1,550,000        1,610,062   
   

 

 

  
      77,226,107   
   

 

 

  

Savings & Loans—0.2%

    

People’s United Financial, Inc.
3.650%, 12/06/22

     2,850,000        2,676,332   

Washington Mutual Bank
6.875%, 06/15/11 (e) (f)

     6,000,000        600   
   

 

 

  
      2,676,932   
   

 

 

  

Semiconductors—0.7%

    

Freescale Semiconductor, Inc.
9.250%, 04/15/18 (144A)

     1,000,000        1,077,500   

10.750%, 08/01/20

     4,400,000        4,840,000   

KLA-Tencor Corp.
6.900%, 05/01/18

     2,000,000        2,328,222   

Sensata Technologies B.V.
6.500%, 05/15/19 (144A) (a)

     1,500,000        1,612,500   
   

 

 

  
      9,858,222   
   

 

 

  

Shipbuilding—0.2%

    

Huntington Ingalls Industries, Inc.
7.125%, 03/15/21 (a)

     2,500,000        2,687,500   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Software—2.2%

    

Dun & Bradstreet Corp. (The)
4.375%, 12/01/22 (a)

     2,575,000      $ 2,487,465   

First Data Corp.
8.250%, 01/15/21 (144A) (a)

     7,000,000        7,140,000   

11.250%, 03/31/16 (a)

     1,211,000        1,183,753   

11.250%, 01/15/21 (144A) (a)

     2,925,000        2,917,687   

12.625%, 01/15/21 (a)

     7,650,000        8,089,875   

Infor US, Inc.
9.375%, 04/01/19

     2,200,000        2,384,250   

Mantech International Corp.
7.250%, 04/15/18 (a)

     2,500,000        2,600,000   

Nuance Communications, Inc.
5.375%, 08/15/20 (144A)

     1,750,000        1,710,625   
   

Sophia L.P. / Sophia Finance, Inc.
9.750%, 01/15/19 (144A)

     3,000,000        3,210,000   
   

 

 

  
      31,723,655   
   

 

 

  

Telecommunications—8.6%

    

CC Holdings GS V LLC / Crown Castle GS III Corp.
3.849%, 04/15/23

     2,795,000        2,635,562   

CenturyLink, Inc.
6.150%, 09/15/19 (a)

     5,000,000        5,200,000   

6.450%, 06/15/21 (a)

     3,400,000        3,544,500   

Clearwire Communications LLC / Clearwire Finance, Inc.
12.000%, 12/01/15 (144A) (a)

     2,200,000        2,337,500   

14.750%, 12/01/16 (144A)

     600,000        819,000   

CommScope Holding Co., Inc.
6.625%, 06/01/20 (144A) (c)

     1,650,000        1,575,750   

CommScope, Inc.
8.250%, 01/15/19 (144A)

     1,500,000        1,601,250   

CPI International, Inc.
8.000%, 02/15/18

     2,500,000        2,575,000   

Cricket Communications, Inc.
7.750%, 10/15/20 (a)

     5,700,000        5,472,000   

Crown Castle International Corp.
5.250%, 01/15/23

     1,350,000        1,296,000   

Digicel Group, Ltd.
10.500%, 04/15/18 (144A)

     2,500,000        2,650,000   

Digicel, Ltd.
7.000%, 02/15/20 (144A)

     3,000,000        3,030,000   

DigitalGlobe, Inc.
5.250%, 02/01/21 (144A)

     2,400,000        2,304,000   

Frontier Communications Corp.
7.125%, 01/15/23 (a)

     750,000        746,250   

7.625%, 04/15/24 (a)

     1,400,000        1,403,500   

9.250%, 07/01/21 (a)

     1,225,000        1,399,562   

Hughes Satellite Systems Corp.
7.625%, 06/15/21

     5,000,000        5,312,500   

Intelsat Jackson Holdings S.A.
7.250%, 04/01/19

     850,000        889,313   

7.500%, 04/01/21 (a)

     3,750,000        3,937,500   

Intelsat Luxembourg S.A.
6.750%, 06/01/18 (144A)

     525,000        528,938   

Telecommunications—(Continued)

  

Intelsat Luxembourg S.A.

    

7.750%, 06/01/21 (144A)

     3,175,000      $ 3,206,750   

8.125%, 06/01/23 (144A) (a)

     1,320,000        1,362,900   

Matterhorn Mobile S.A.
6.750%, 05/15/19 (144A) (CHF)

     1,325,000        1,430,840   

MetroPCS Wireless, Inc.
6.625%, 11/15/20

     2,000,000        2,075,000   

7.875%, 09/01/18

     3,500,000        3,727,500   

Millicom International Cellular S.A.
4.750%, 05/22/20 (144A) (a)

     900,000        855,234   

NeuStar, Inc.
4.500%, 01/15/23 (144A)

     1,425,000        1,346,625   

NII Capital Corp.
8.875%, 12/15/19 (a)

     1,500,000        1,267,500   

Sable International Finance, Ltd.
8.750%, 02/01/20 (144A) (a)

     2,225,000        2,447,500   

SBA Telecommunications, Inc.
5.750%, 07/15/20 (144A) (a)

     2,000,000        2,005,000   

8.250%, 08/15/19

     1,950,000        2,110,875   

SES S.A.
3.600%, 04/04/23 (144A) (a)

     1,585,000        1,540,905   
   

Softbank Corp.
4.500%, 04/15/20 (144A)

     2,300,000        2,216,625   

Sprint Capital Corp.
6.900%, 05/01/19

     10,000,000        10,400,000   

Sprint Nextel Corp.
7.000%, 03/01/20 (144A)

     3,000,000        3,240,000   

7.000%, 08/15/20 (a)

     4,400,000        4,620,000   

Syniverse Holdings, Inc.
9.125%, 01/15/19

     3,600,000        3,843,000   

Telemar Norte Leste S.A.
5.500%, 10/23/20 (144A)

     2,095,000        1,948,350   

Telemovil Finance Co., Ltd.
8.000%, 10/01/17 (144A)

     2,700,000        2,855,250   

UPCB Finance V, Ltd.
7.250%, 11/15/21 (144A)

     2,850,000        3,013,875   

ViaSat, Inc.
6.875%, 06/15/20

     2,000,000        2,110,000   

Vimpel-Communications Via VIP Finance Ireland, Ltd. OJSC
7.748%, 02/02/21 (144A) (a)

     2,125,000        2,265,781   

Wind Acquisition Finance S.A.
7.250%, 02/15/18 (144A)

     1,500,000        1,511,250   

11.750%, 07/15/17 (144A)

     6,500,000        6,760,000   

Windstream Corp.
7.000%, 03/15/19

     3,500,000        3,508,750   

7.500%, 04/01/23 (a)

     1,500,000        1,522,500   
   

 

 

  
      122,450,135   
   

 

 

  

Textiles—0.1%

    

SIWF Merger Sub, Inc. / Springs Industries, Inc.
6.250%, 06/01/21 (144A) (a)

     900,000        882,000   
   

 

 

  

Transportation—1.2%

    

Florida East Coast Railway Corp.
8.125%, 02/01/17

     5,500,000        5,816,250   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Transportation—(Continued)

  

Gulfmark Offshore, Inc.
6.375%, 03/15/22

     3,225,000      $ 3,200,812   

Kansas City Southern de Mexico S.A. de C.V.
2.350%, 05/15/20 (144A)

     2,000,000        1,934,912   

Martin Midstream Partners L.P. / Martin Midstream Finance Corp.
7.250%, 02/15/21 (144A) (a)

     1,000,000        1,005,000   

Viterra, Inc.
5.950%, 08/01/20 (144A)

     4,250,000        4,493,640   

Watco Cos. LLC / Watco Finance Corp.
6.375%, 04/01/23 (144A)

     850,000        845,750   
   

 

 

  
      17,296,364   
   

 

 

  

Trucking & Leasing—0.2%

    

NESCO LLC / NESCO Holdings Corp.
11.750%, 04/15/17 (144A) (a)

     2,400,000        2,604,000   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $1,125,617,539)

       1,149,860,221   
   

 

 

  
   
Convertible Bonds—11.6%                

Airlines—0.3%

    

United Airlines, Inc.
4.500%, 01/15/15

     2,600,000        4,545,125   
   

 

 

  
   

Apparel—0.2%

    

Iconix Brand Group, Inc.
1.500%, 03/15/18 (144A)

     2,500,000        2,792,188   
   

 

 

  

Auto Manufacturers—0.4%

    

Ford Motor Co.
4.250%, 11/15/16

     1,200,000        2,168,250   

Volkswagen International Finance NV
5.500%, 11/09/15 (144A) (EUR)

     2,600,000        3,467,610   
   

 

 

  
      5,635,860   
   

 

 

  

Auto Parts & Equipment—0.1%

    

Meritor, Inc.
4.000%, 02/15/27 (g)

     2,000,000        1,767,500   
   

 

 

  

Biotechnology—0.8%

    

Corsicanto, Ltd.
3.500%, 01/15/32

     2,000,000        2,127,500   

Gilead Sciences, Inc.
1.625%, 05/01/16 (a)

     2,650,000        5,997,281   

Illumina, Inc.
0.250%, 03/15/16 (144A)

     2,500,000        2,703,125   
   

 

 

  
      10,827,906   
   

 

 

  

Coal—0.1%

    

Alpha Natural Resources, Inc.
3.750%, 12/15/17

     1,200,000        1,020,000   
   

 

 

  

Commercial Services—0.5%

    

Alliance Data Systems Corp.
1.750%, 08/01/13

     3,000,000        6,815,625   
   

 

 

  

Computers—0.4%

  

EMC Corp.
1.750%, 12/01/13

     1,000,000      $ 1,477,500   

SanDisk Corp.
1.500%, 08/15/17 (a)

     2,750,000        3,666,094   
   

 

 

  
      5,143,594   
   

 

 

  

Diversified Financial Services—0.6%

    

Affiliated Managers Group, Inc.
3.950%, 08/15/38 (a)

     6,350,000        8,167,687   
   

 

 

  

Electrical Components & Equipment—0.1%

  

SunPower Corp.
0.750%, 06/01/18 (144A)

     1,425,000        1,473,450   
   

 

 

  

Healthcare-Products—0.1%

    

Hologic, Inc.
2.000%, 03/01/42 (a) (g)

     1,500,000        1,484,063   
   

 

 

  

Healthcare-Services—0.5%

    

Brookdale Senior Living, Inc.
2.750%, 06/15/18 (a)

     3,650,000        4,297,875   

LifePoint Hospitals, Inc.
3.500%, 05/15/14 (a)

     1,100,000        1,189,375   

WellPoint, Inc.
2.750%, 10/15/42 (144A)

     1,500,000        1,867,500   
   

 

 

  
      7,354,750   
   

 

 

  

Household Products/Wares—0.2%

    

Jarden Corp.
1.875%, 09/15/18 (144A) (a)

     3,000,000        3,369,375   
   

 

 

  
   

Internet—0.4%

  

priceline.com, Inc.
1.000%, 03/15/18 (a)

     2,750,000        3,196,875   

1.250%, 03/15/15

     437,280        1,194,048   

Shutterfly, Inc.
0.250%, 05/15/18 (144A)

     1,075,000        1,183,172   
   

 

 

  
      5,574,095   
   

 

 

  

Lodging—0.1%

    

MGM Resorts International
4.250%, 04/15/15

     825,000        923,484   
   

 

 

  

Machinery-Diversified—0.7%

  

Altra Holdings, Inc.
2.750%, 03/01/31

     3,200,000        3,826,000   

Chart Industries, Inc.
2.000%, 08/01/18

     4,500,000        6,747,187   
   

 

 

  
      10,573,187   
   

 

 

  

Media—0.2%

  

Liberty Interactive LLC
0.750%, 03/30/43 (144A)

     2,200,000        2,414,500   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Convertible Bonds—(Continued)

 

Security Description       
Principal
Amount*		     Value  

Miscellaneous Manufacturing—0.3%

  

Danaher Corp.
Zero Coupon, 01/22/21

     2,500,000      $ 4,600,000   
   

 

 

  

Oil & Gas—0.4%

  

Chesapeake Energy Corp.
2.500%, 05/15/37 (a)

     2,200,000        2,072,125   

Cobalt International Energy, Inc.
2.625%, 12/01/19

     3,000,000        3,181,875   
   

 

 

  
      5,254,000   
   

 

 

  

Oil & Gas Services—0.3%

  

Hornbeck Offshore Services, Inc.
1.500%, 09/01/19 (144A)

     3,500,000        4,243,750   
   

 

 

  

Pharmaceuticals—1.7%

  

ALZA Corp.
Zero Coupon, 07/28/20

     5,000,000        5,887,500   

Auxilium Pharmaceuticals, Inc.
1.500%, 07/15/18

     325,000        313,422   

BioMarin Pharmaceutical, Inc.
1.875%, 04/23/17

     1,650,000        4,571,531   

Medivation, Inc.
2.625%, 04/01/17 (a)

     4,300,000        5,426,063   

Mylan, Inc.
3.750%, 09/15/15

     1,750,000        4,147,500   
   

Onyx Pharmaceuticals, Inc.
4.000%, 08/15/16

     950,000        2,163,031   

Theravance, Inc.
3.000%, 01/15/15

     1,055,000        1,569,972   
   

 

 

  
      24,079,019   
   

 

 

  

Real Estate Investment Trusts—0.8%

  

Boston Properties L.P.
3.625%, 02/15/14 (144A) (a)

     2,000,000        2,066,250   

Host Hotels & Resorts L.P.
2.500%, 10/15/29 (144A)

     4,800,000        6,510,000   

ProLogis L.P.
3.250%, 03/15/15 (a)

     2,700,000        3,116,812   
   

 

 

  
      11,693,062   
   

 

 

  

Semiconductors—1.2%

  

Intel Corp.
3.250%, 08/01/39

     4,250,000        5,416,094   

Micron Technology, Inc.
2.375%, 05/01/32 (144A)

     1,625,000        2,595,938   

ON Semiconductor Corp.
2.625%, 12/15/26

     3,500,000        3,554,687   

Xilinx, Inc.
2.625%, 06/15/17 (a)

     3,500,000        5,000,625   
   

 

 

  
      16,567,344   
   

 

 

  

Software—1.0%

  

Concur Technologies, Inc.
0.500%, 06/15/18 (144A)

     775,000        771,125   

NetSuite, Inc.
0.250%, 06/01/18 (144A)

     2,700,000        2,747,250   

Software—(Continued)

  

Nuance Communications, Inc.
2.750%, 08/15/27 (a)

     3,750,000      $ 4,328,906   

2.750%, 11/01/31 (a)

     1,600,000        1,648,000   

Salesforce.com, Inc.
0.750%, 01/15/15 (a)

     2,300,000        4,164,438   

Workday, Inc.
0.750%, 07/15/18 (144A)

     1,360,000        1,383,800   
   

 

 

  
      15,043,519   
   

 

 

  

Telecommunications—0.2%

  

Nortel Networks Corp.
2.125%, 04/15/14 (e)

     3,300,000        3,203,062   
   

 

 

  

Total Convertible Bonds
(Cost $148,988,249)

       164,566,145   
   

 

 

  
   
Convertible Preferred Stocks—2.8%   

Aerospace & Defense—0.4%

  

United Technologies Corp.
7.500%, 08/01/15 (a)

     100,000        5,936,000   
   

 

 

  

Auto Components—0.1%

  

Cooper-Standard Holding, Inc.
7.000%, 12/31/49 (c)

    5,543        1,094,743   
   

 

 

  

Automobiles—0.2%

  

General Motors Co.
Series B
4.750%, 12/01/13 (a)

     65,000        3,130,400   
   

 

 

  

Capital Markets—0.2%

  

AMG Capital Trust I
5.100%, 04/15/36

     40,000        2,486,000   
   

 

 

  

Commercial Banks—0.5%

  

Fifth Third Bancorp
Series G
8.500%, 12/31/49

     45,000        7,014,150   
   

 

 

  

Diversified Financial Services—0.2%

  

Bank of America Corp.
Series L
7.250%, 12/31/49 (a)

     2,500        2,776,250   
   

 

 

  

Diversified Telecommunication Services—0.0%

  

Intelsat S.A.
Series A
5.750%, 05/01/16 (h)

     6,000        330,000   
   

 

 

  

Electric Utilities—0.5%

  

NextEra Energy, Inc.
5.889%, 09/01/15

     65,000        3,610,100   

PPL Corp.
8.750%, 05/01/14 (a)

     55,000        2,971,100   
   

 

 

  
      6,581,200   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Convertible Preferred Stocks—(Continued)

 

Security Description       
    
Shares		     Value  

Iron/Steel—0.1%

  

ArcelorMittal
6.000%, 01/15/16

     50,000      $ 937,500   
   

 

 

  

Metals & Mining—0.2%

  

Cliffs Natural Resources, Inc.
7.000%, 02/01/16 (a)

     150,000        2,661,000   
   

 

 

  

Real Estate Investment Trusts—0.2%

  

Alexandria Real Estate Equities, Inc.
Series D
7.000%, 12/31/49

     70,000        1,812,300   

Weyerhaeuser Co.
Series A
6.375%, 07/01/16 (h)

     29,925        1,526,474   
   

 

 

  
      3,338,774   
   

 

 

  

Road & Rail—0.2%

  

Genesee & Wyoming, Inc.
5.000%, 10/01/15

     30,000        3,559,500   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $37,054,721)

       39,845,517   
   

 

 

  
Common Stocks—1.4%                

Auto Components—0.1%

    

Cooper-Standard Holding, Inc. (a) (h)

     19,899        925,303   
   

 

 

  

Biotechnology—0.1%

    

Vertex Pharmaceuticals, Inc. (a) (h)

     15,522        1,239,742   
   

 

 

  

Chemicals—0.3%

    

Axiall Corp. (a)

     30,000        1,277,400   

Monsanto Co.

     30,000        2,964,000   
   

 

 

  
      4,241,400   
   

 

 

  

Communications Equipment—0.1%

  

Palo Alto Networks, Inc. (a) (h)

     30,000        1,264,800   
   

 

 

  

Food Products—0.0%

    

Boulder Brands, Inc. (a) (h)

     25,000        301,250   
   

 

 

  

Health Care Providers & Services—0.1%

  

Team Health Holdings, Inc. (a) (h)

     40,000        1,642,800   
   

 

 

  

Oil, Gas & Consumable Fuels—0.2%

  

Concho Resources, Inc. (a) (h)

     29,500        2,469,740   

Kodiak Oil & Gas Corp. (a) (h)

     100,000        889,000   
   

 

 

  
      3,358,740   
   

 

 

  

Paper & Forest Products—0.0%

  

PT Indah Kiat Pulp and Paper Corp. (h)

     1,867,500        208,993   
   

 

 

  

Personal Products—0.1%

  

Estee Lauder Cos., Inc. (The) - Class A (a)

     20,000        1,315,400   
   

 

 

  

Pharmaceuticals—0.0%

    

Bristol-Myers Squibb Co. (a)

     10,000      $ 446,900   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.1%

  

Broadcom Corp. - Class A (a)

     25,000        844,000   

NVIDIA Corp. (a)

     45,000        631,350   
   

 

 

  
      1,475,350   
   

 

 

  

Software—0.2%

    

Informatica Corp. (a) (h)

     35,000        1,224,300   

VMware, Inc. - Class A (a) (h)

     20,000        1,339,800   
   

 

 

  
      2,564,100   
   

 

 

  

Thrifts & Mortgage Finance—0.1%

  

Federal National Mortgage Association (a) (h)

     227,275        320,458   

Nationstar Mortgage Holdings, Inc. (a) (h)

     20,000        748,800   
   

 

 

  
      1,069,258   
   

 

 

  

Total Common Stocks
(Cost $25,672,039)

       20,054,036   
   

 

 

  
U.S. Treasury & Government Agencies—0.9%   

Agency Sponsored Mortgage-Backed—0.9%

  

Fannie Mae 30 Yr. Pool
3.500%, TBA (i)
(Cost $12,265,313)

     12,000,000        12,181,874   
   

 

 

  
Preferred Stocks—0.4%   

Commercial Banks—0.4%

  

GMAC Capital Trust I,
8.125% (b)

     50,000        1,302,500   

Texas Capital Bancshares, Inc.,
6.500%

     86,800        2,125,732   

U.S. Bancorp.
Series A, 3.500% (a) (b)

     2,305        1,976,399   
   

 

 

  
      5,404,631   
   

 

 

  

Thrifts & Mortgage Finance—0.0%

  

Federal National Mortgage Association,
Series S, 8.250% (b) (h)

     136,300        620,165   
   

 

 

  

Total Preferred Stocks
(Cost $8,670,566)

       6,024,796   
   

 

 

  
Municipals—0.3%   

Metropolitan Government of Nashville & Davidson County, Convention Center Authority, Build America Bonds
6.731%, 07/01/43
(Cost $3,403,215)

     3,350,000        3,890,958   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Investment Company Security—0.2%

 

Security Description   Shares/
Principal
Amount*		     Value  

SPDR S&P 500 ETF Trust (a)
(Cost $3,372,163)

     20,000      $ 3,200,200   
   

 

 

  
Foreign Government—0.1%   

Sovereign—0.1%

  

Bermuda Government International Bond 4.138%, 01/03/23 (144A) (a)
(Cost $1,750,000)

     1,750,000        1,723,750   
   

 

 

  
Warrants—0.1%   

Auto Components—0.1%

  

Cooper-Standard Holding, Inc.,
Strike Price $27.33,
Expires 11/27/17 (h)

     20,875        438,375   
   

 

 

  

Media—0.0%

  

Ion Media Second Lien Warrants,
Expires 12/18/16 (h)

     395        122,450   

Ion Media Unsecured Debt Warrant Restricted, Expires 12/18/16 (h)

     390        48,750   
   

 

 

  
      171,200   
   

 

 

  

Total Warrants
(Cost $2,394,059)

       609,575   
   

 

 

  
Short-Term Investments—19.6%   

Mutual Fund—19.0%

  

State Street Navigator Securities Lending MET Portfolio (j)

     269,360,869        269,360,869   
   

 

 

  

Repurchase Agreement—0.6%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $9,040,008, on 07/01/13 collateralized by $9,305,000 U.S. Treasury Note at 0.750% due 06/30/2017 with a value of $9,223,581.

     9,040,000        9,040,000   
   

 

 

  

Total Short-Term Investments
(Cost $278,400,869)

       278,400,869   
   

 

 

  

Total Investments—118.3%
(Cost $1,647,588,733) (k)

       1,680,357,941   

Other assets and liabilities (net)—(18.3)%

       (259,703,920 ) 
   

 

 

  
Net Assets—100.0%     $ 1,420,654,021   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $260,463,925 and the collateral received consisted of cash in the amount of $269,360,869. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(b) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(c) Payment-in-kind security for which part of the income earned may be paid as additional principal.
(d) All or a portion of the security was pledged as collateral against open futures contracts. As of June 30, 2013, the market value of securities pledged was $290,084.
(e) Security is in default and/or issuer is in bankruptcy.
(f) Security was valued in good faith under procedures approved by the Board of Trustees. As of June 30, 2013, these securities represent less than 0.05% of net assets.
(g) Security is a “step-down” bond where the coupon decreases or steps down at a predetermined date. Rate shown is current coupon rate.
(h) Non-income producing security.
(i) TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(j) Represents investment of cash collateral received from securities lending transactions.
(k) As of June 30, 2013, the aggregate cost of investments was $1,647,588,733. The aggregate unrealized appreciation and depreciation of investments were $74,770,759 and $(42,001,551), respectively, resulting in net unrealized appreciation of $32,769,208.
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $465,571,035, which is 32.8% of net assets.
(CAD)— Canadian Dollar
(CHF)— Swiss Franc
(ETF)— Exchange-Traded Fund
(EUR)— Euro

Futures Contracts

 

Futures Contracts—Short

    Expiration
Date		    Number of
Contracts		     Notional
Amount		      Unrealized
Appreciation		  

U.S. Treasury Note 10 Year Futures

    09/19/13      (275 )      USD (35,668,168)       $ 863,481   
          

 

 

  

 

(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Corporate Bonds & Notes            

Advertising

    $ —         $ 6,191,625       $ —         $ 6,191,625   

Aerospace/Defense

      —           25,195,665         —           25,195,665   

Agriculture

      —           3,277,500         —           3,277,500   

Airlines

      —           3,490,967         —           3,490,967   

Apparel

      —           3,965,375         —           3,965,375   

Auto Manufacturers

      —           3,528,750         —           3,528,750   

Auto Parts & Equipment

      —           13,232,438         —           13,232,438   

Banks

      —           39,373,257         —           39,373,257   

Beverages

      —           3,108,375         —           3,108,375   

Biotechnology

      —           3,780,000         —           3,780,000   

Chemicals

      —           43,523,156         —           43,523,156   

Coal

      —           1,215,000         —           1,215,000   

Commercial Services

      —           44,532,844         —           44,532,844   

Computers

      —           16,531,000         —           16,531,000   

Construction Materials

      —           12,485,487         —           12,485,487   

Distribution/Wholesale

      —           4,514,750         —           4,514,750   

Diversified Financial Services

      —           51,849,834         —           51,849,834   

Electric

      —           28,027,808         —           28,027,808   

Electrical Components & Equipment

      —           4,655,625         —           4,655,625   

Electronics

      —           3,289,500         —           3,289,500   

Energy-Alternate Sources

      —           2,207,585         —           2,207,585   

Engineering & Construction

      —           6,917,500         —           6,917,500   

Entertainment

      —           26,700,335         —           26,700,335   

Environmental Control

      —           2,740,500         —           2,740,500   

Food

      —           15,428,888         —           15,428,888   

Forest Products & Paper

      —           6,301,000         —           6,301,000   

Gas

      —           1,353,375         —           1,353,375   

Hand/Machine Tools

      —           7,373,250         —           7,373,250   

Healthcare-Products

      —           5,824,662         —           5,824,662   

Healthcare-Services

      —           42,983,125         —           42,983,125   

Holding Companies-Diversified

      —           1,413,750         —           1,413,750   

Home Builders

      —           10,348,500         —           10,348,500   

Household Products

      —           8,647,642         —           8,647,642   

Household Products/Wares

      —           21,295,938         —           21,295,938   

Housewares

      —           4,121,375         —           4,121,375   

Insurance

      —           9,499,738         —           9,499,738   

Internet

      —           9,719,600         —           9,719,600   

Iron/Steel

      —           5,612,854         —           5,612,854   

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2      Level 3      Total  

Leisure Time

    $ —         $ 2,784,000       $ —         $ 2,784,000   

Lodging

      —           9,831,500         —           9,831,500   

Machinery-Diversified

      —           10,855,267         —           10,855,267   

Media

      —           57,706,438         —           57,706,438   

Metal Fabricate/Hardware

      —           7,398,944         —           7,398,944   

Mining

      —           10,294,455         —           10,294,455   

Miscellaneous Manufacturing

      —           20,988,500         —           20,988,500   

Office Furnishings

      —           3,240,432         —           3,240,432   

Oil & Gas

      —           139,069,757         —           139,069,757   

Oil & Gas Services

      —           21,373,500         —           21,373,500   

Packaging & Containers

      —           28,658,888         —           28,658,888   

Pharmaceuticals

      —           5,866,250         —           5,866,250   

Pipelines

      —           34,563,105         —           34,563,105   

Real Estate

      —           1,079,400         —           1,079,400   

Real Estate Investment Trusts

      —           24,486,297         —           24,486,297   

Retail

      —           77,226,107         —           77,226,107   

Savings & Loans

      —           2,676,332         600         2,676,932   

Semiconductors

      —           9,858,222         —           9,858,222   

Shipbuilding

      —           2,687,500         —           2,687,500   

Software

      —           31,723,655         —           31,723,655   

Telecommunications

      —           122,450,135         —           122,450,135   

Textiles

      —           882,000         —           882,000   

Transportation

      —           17,296,364         —           17,296,364   

Trucking & Leasing

      —           2,604,000         —           2,604,000   

Total Corporate Bonds & Notes

      —           1,149,859,621         600         1,149,860,221   

Total Convertible Bonds*

      —           164,566,145         —           164,566,145   
Convertible Preferred Stocks            

Aerospace & Defense

      5,936,000         —           —           5,936,000   

Auto Components

      —           1,094,743         —           1,094,743   

Automobiles

      3,130,400         —           —           3,130,400   

Capital Markets

      2,486,000         —           —           2,486,000   

Commercial Banks

      7,014,150         —           —           7,014,150   

Diversified Financial Services

      2,776,250         —           —           2,776,250   

Diversified Telecommunication Services

      330,000         —           —           330,000   

Electric Utilities

      6,581,200         —           —           6,581,200   

Iron/Steel

      937,500         —           —           937,500   

Metals & Mining

      2,661,000         —           —           2,661,000   

Real Estate Investment Trusts

      3,338,774         —           —           3,338,774   

Road & Rail

      —           3,559,500         —           3,559,500   

Total Convertible Preferred Stocks

      35,191,274         4,654,243         —           39,845,517   
Common Stocks            

Auto Components

      925,303         —           —           925,303   

Biotechnology

      1,239,742         —           —           1,239,742   

Chemicals

      4,241,400         —           —           4,241,400   

Communications Equipment

      1,264,800         —           —           1,264,800   

Food Products

      301,250         —           —           301,250   

Health Care Providers & Services

      1,642,800         —           —           1,642,800   

Oil, Gas & Consumable Fuels

      3,358,740         —           —           3,358,740   

Paper & Forest Products

      —           208,993         —           208,993   

Personal Products

      1,315,400         —           —           1,315,400   

Pharmaceuticals

      446,900         —           —           446,900   

Semiconductors & Semiconductor Equipment

      1,475,350         —           —           1,475,350   

Software

      2,564,100         —           —           2,564,100   

Thrifts & Mortgage Finance

      1,069,258         —           —           1,069,258   

Total Common Stocks

      19,845,043         208,993         —           20,054,036   

Total U.S. Treasury & Government Agencies*

      —           12,181,874         —           12,181,874   

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  
Preferred Stocks           

Commercial Banks

    $ 3,428,232       $ 1,976,399      $ —         $ 5,404,631   

Thrifts & Mortgage Finance

      620,165         —          —           620,165   

Total Preferred Stocks

      4,048,397         1,976,399        —           6,024,796   

Total Municipals

      —           3,890,958        —           3,890,958   

Total Investment Company Security

      3,200,200         —          —           3,200,200   

Total Foreign Government*

      —           1,723,750        —           1,723,750   
Warrants           

Auto Components

      438,375         —          —           438,375   

Media

      —           171,200        —           171,200   

Total Warrants

      438,375         171,200        —           609,575   
Short-Term Investments           

Mutual Fund

      269,360,869         —          —           269,360,869   

Repurchase Agreement

      —           9,040,000        —           9,040,000   

Total Short-Term Investments

      269,360,869         9,040,000        —           278,400,869   

Total Investments

    $ 332,084,158       $ 1,348,273,183      $ 600       $ 1,680,357,941   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (269,360,869 )    $ —         $ (269,360,869 ) 
Futures Contracts           

Futures Contracts (Unrealized Appreciation)

    $ 863,481       $ —        $ —         $ 863,481   

 

* See Schedule of Investments for additional detailed categorizations.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

 

Investments in Securities

    Balance as of
December 31,
2012		      Accrued
Premiums		      Change in
Unrealized
Depreciation		     Balance as of
June 30,
2013		      Change in Unrealized
Depreciation from
Investments still Held at
June 30, 2013		  
Corporate Bonds & Notes              

Saving & Loans

    $ 600      $ 75       $ (75 )    $ 600       $ (75 ) 
  

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,680,357,941   

Cash

      367,674   

Receivable for:

   

Investments sold

      3,826,784   

Fund shares sold

      460,967   

Dividends

      301,259   

Interest

      21,954,895   

Net variation margin on futures contracts

      21,486   
  

 

 

  

Total Assets

      1,707,291,006   

Liabilities

   

Payables for:

   

Investments purchased

      2,897,542   

TBA securities purchased

      12,265,313   

Fund shares redeemed

      1,066,016   

Collateral for securities loaned

      269,360,869   

Accrued expenses:

   

Management fees

      606,958   

Distribution and service fees

      167,589   

Deferred trustees’ fees

      41,001   

Other expenses

      231,697   
  

 

 

  

Total Liabilities

      286,636,985   
  

 

 

  

Net Assets

    $ 1,420,654,021   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,321,060,441   

Undistributed net investment income

      39,643,834   

Accumulated net realized gain

      26,317,435   

Unrealized appreciation on investments, futures contracts and foreign currency transactions

      33,632,311   
  

 

 

  

Net Assets

    $ 1,420,654,021   
  

 

 

  

Net Assets

   

Class A

    $ 612,043,693   

Class B

      785,772,822   

Class E

      22,837,506   

Capital Shares Outstanding*

   

Class A

      48,025,234   

Class B

      62,251,494   

Class E

      1,804,610   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 12.74   

Class B

      12.62   

Class E

      12.66   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,647,588,733.
(b) Includes securities loaned at value of $260,463,925.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends

    $ 1,403,585   

Interest

      44,934,329   

Securities lending income

      474,919   

Other income

      470,193   
  

 

 

  

Total investment income

      47,283,026   

Expenses

   

Management fees

      3,861,424   

Administration fees

      19,239   

Custodian and accounting fees

      86,572   

Distribution and service fees—Class B

      1,015,393   

Distribution and service fees—Class E

      17,860   

Audit and tax services

      30,535   

Legal

      9,656   

Trustees’ fees and expenses

      13,422   

Shareholder reporting

      49,985   

Insurance

      5,062   

Miscellaneous

      5,279   
  

 

 

  

Total expenses

      5,114,427   
  

 

 

  

Net Investment Income

      42,168,599   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      30,649,966   

Futures contracts

      127,305   

Foreign currency transactions

      2,211   
  

 

 

  

Net realized gain

      30,779,482   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (44,784,939 ) 

Futures contracts

      819,904   

Foreign currency transactions

      (1,656 ) 
  

 

 

  

Net change in unrealized depreciation

      (43,966,691 ) 
  

 

 

  

Net realized and unrealized loss

      (13,187,209 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 28,981,390   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 42,168,599      $ 87,655,076   

Net realized gain

      30,779,482        29,879,340   

Net change in unrealized appreciation (depreciation)

      (43,966,691 )      72,790,457   
  

 

 

    

 

 

  

Increase in net assets from operations

      28,981,390        190,324,873   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (42,518,412 )      (53,800,785 ) 

Class B

      (53,791,660 )      (57,914,519 ) 

Class E

      (1,589,195 )      (1,768,268 ) 
  

 

 

    

 

 

  

Total distributions

      (97,899,267 )      (113,483,572 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (69,783,132 )      (37,787,980 ) 
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (138,701,009 )      39,053,321   

Net Assets

     

Beginning of period

      1,559,355,030        1,520,301,709   
  

 

 

    

 

 

  

End of period

    $ 1,420,654,021      $ 1,559,355,030   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 39,643,834      $ 95,374,502   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      2,973,649      $ 40,303,101        1,978,444      $ 25,774,729   

Reinvestments

      3,285,813        42,518,412        4,314,417        53,800,785   

Redemptions

      (12,068,317 )      (165,988,623 )      (8,385,601 )      (108,358,346 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (5,808,855 )    $ (83,167,110 )      (2,092,740 )    $ (28,782,832 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      2,309,705      $ 30,668,241        4,297,729      $ 55,496,360   

Reinvestments

      4,195,917        53,791,660        4,681,853        57,914,519   

Redemptions

      (5,385,926 )      (71,167,503 )      (9,421,788 )      (120,873,781 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      1,119,696      $ 13,292,398        (442,206 )    $ (7,462,902 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      159,457      $ 2,132,255        119,412      $ 1,540,585   

Reinvestments

      123,673        1,589,195        142,717        1,768,268   

Redemptions

      (273,388 )      (3,629,870 )      (376,601 )      (4,851,099 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      9,742      $ 91,580        (114,472 )    $ (1,542,246 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (69,783,132 )      $ (37,787,980 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 13.43      $ 12.80       $ 12.98       $ 12.24       $ 9.72       $ 12.63   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.38        0.75         0.80         0.79         0.78         0.78   

Net realized and unrealized gain (loss) on investments

      (0.14 )      0.86         (0.17 )       0.76         2.61         (3.00 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.24        1.61         0.63         1.55         3.39         (2.22 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.93 )      (0.98 )       (0.81 )       (0.81 )       (0.87 )       (0.51 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.18 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.93 )      (0.98 )       (0.81 )       (0.81 )       (0.87 )       (0.69 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.74      $ 13.43       $ 12.80       $ 12.98       $ 12.24       $ 9.72   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      1.70  (c)      13.19         4.83         13.18         37.12         (18.40 ) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%)

      0.54  (d)      0.54         0.54         0.53         0.55         0.53   

Ratio of net investment income to average net assets (%)

      5.67  (d)      5.76         6.18         6.40         7.21         6.84   

Portfolio turnover rate (%)

      25  (c)      47         36         42         39         25   

Net assets, end of period (in millions)

    $ 612.0      $ 722.9       $ 715.6       $ 1,163.2       $ 1,006.5       $ 933.7   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 13.29      $ 12.67       $ 12.87       $ 12.14       $ 9.65       $ 12.54   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.36        0.71         0.76         0.76         0.74         0.75   

Net realized and unrealized gain (loss) on investments

      (0.13 )      0.86         (0.19 )       0.76         2.59         (2.97 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.23        1.57         0.57         1.52         3.33         (2.22 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.90 )      (0.95 )       (0.77 )       (0.79 )       (0.84 )       (0.49 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.18 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.90 )      (0.95 )       (0.77 )       (0.79 )       (0.84 )       (0.67 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.62      $ 13.29       $ 12.67       $ 12.87       $ 12.14       $ 9.65   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      1.62  (c)      12.95         4.46         12.97         36.77         (18.60 ) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%)

      0.79  (d)      0.79         0.79         0.78         0.80         0.78   

Ratio of net investment income to average net assets (%)

      5.42  (d)      5.51         5.98         6.16         6.93         6.57   

Portfolio turnover rate (%)

      25  (c)      47         36         42         39         25   

Net assets, end of period (in millions)

    $ 785.8      $ 812.6       $ 780.4       $ 805.0       $ 740.0       $ 533.6   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Financial Highlights

 

Selected per share data       
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 13.33      $ 12.71       $ 12.89       $ 12.16       $ 9.67       $ 12.56   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.37        0.72         0.78         0.77         0.76         0.76   

Net realized and unrealized gain (loss) on investments

      (0.13 )      0.86         (0.18 )       0.76         2.58         (2.97 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.24        1.58         0.60         1.53         3.34         (2.21 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.91 )      (0.96 )       (0.78 )       (0.80 )       (0.85 )       (0.50 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.18 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.91 )      (0.96 )       (0.78 )       (0.80 )       (0.85 )       (0.68 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.66      $ 13.33       $ 12.71       $ 12.89       $ 12.16       $ 9.67   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      1.71  (c)      13.01         4.69         13.03         36.87         (18.52 ) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%)

      0.69  (d)      0.69         0.69         0.68         0.70         0.68   

Ratio of net investment income to average net assets (%)

      5.52  (d)      5.61         6.07         6.26         7.03         6.66   

Portfolio turnover rate (%)

      25  (c)      47         36         42         39         25   

Net assets, end of period (in millions)

    $ 22.8      $ 23.9       $ 24.3       $ 30.0       $ 32.7       $ 23.8   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Lord Abbett Bond Debenture Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-25

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due

 

MIST-26

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

to convertible preferred stocks, foreign currency transactions, premium amortization adjustments, contingent payment debt instruments, and return of capital adjustments. These adjustments have no impact on net assets or the results of operations.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $9,040,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

High Yield Debt Securities - The Portfolio may invest in high yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high yield debt securities generally will be exposed

 

MIST-27

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high yield debt securities are less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s Subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate    Unrealized appreciation on futures contracts*    $ 863,481   
     

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate  

Futures contracts

    $ 127,305   
  

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Interest Rate  

Futures contracts

    $ 819,904   
  

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(a)		  

Futures contracts short

    $ 19,750,000   

 

  (a) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

 

MIST-28

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$12,265,313    $ 366,707,366       $ 0       $ 488,106,370   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Lord, Abbett & Co. LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

 

MIST-29

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$3,861,424      0.600 %    First $250 million
     0.550 %    $250 million to $500 million
     0.500 %    $500 million to $1 billion
     0.450 %    Over $1 billion

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

     

Long-Term Capital Gain

      Total  

2012

    2011      2012      2011      2012      2011  
$113,483,572    $ 123,340,986       $ —       $ —       $ 113,483,572       $ 123,340,986   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$97,718,168    $ —       $ 72,543,462       $ (1,714,547 )    $ 168,547,083   

 

MIST-30

Met Investors Series Trust

Lord Abbett Bond Debenture Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2017 were $1,714,547.

 

MIST-31

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Managed by Lord, Abbett & Co. LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the Lord Abbett Mid Cap Value Portfolio returned 14.48%, 14.32%, and 14.40% respectively. The Portfolio’s benchmark, the Russell Midcap Value Index1, returned 16.10%.

MARKET ENVIRONMENT / CONDITIONS

In the first half of 2013, equity investors appeared to focus on a better outlook for the U.S. economy and continued monetary accommodation from the U.S. Federal Reserve (“Fed”), as they brushed aside concerns about the effect of reduced government spending on growth. While U.S. economic growth was lackluster by historical standards, it stood in contrast to a eurozone mired in recession. Meanwhile, growth in China and other key emerging markets continued to moderate.

U.S. gross domestic product rose 1.8% (third estimate) in the first quarter, up from 0.4% in the previous quarter. Among the factors contributing most to first-quarter growth were stronger consumption, and increases in residential construction and business investment; weighing on growth was a large contraction in government spending and a decline in exports. A widely followed report on manufacturing signaled an improvement in that sector. In June, the Institute for Supply Management’s manufacturing index (a monthly survey of purchasing managers in 18 U.S. manufacturing industries) moved above the critical 50% threshold, recovering from the year’s only sub-50% reading, posted in May. Readings below 50% generally indicate that the manufacturing sector is contracting.

In the consumer sector, the housing market continued its recovery during the first half of the year. Sales of previously owned homes improved slightly over the second half of 2012, with prices firming. Retail sales grew modestly, with the final monthly report before the end of the second quarter showing a 0.6% gain for May. The U.S. economy continued to add jobs at a moderate pace in the year’s first half, led by gains in the service sector. In the first five months of the year, the unemployment rate held below 8%, where it has remained since September 2012.

Inflation remained subdued during the first five months of the year, with overall consumer prices decreasing in March and April. U.S. monetary policy remained accommodative, with the Fed maintaining the fed funds rate at 0–0.25%. The central bank also continued its quantitative easing efforts via the monthly purchase of $40 billion in agency mortgage-backed securities and $45 billion in longer-term Treasury securities. In his May 22 testimony before Congress, Fed chairman Ben Bernanke said the central bank “is prepared to increase or reduce the pace of its asset purchases to ensure that the stance of monetary policy remains appropriate as the outlook for the labor market or inflation changes.”

Investor concern that the Fed would begin to reduce accommodation by slowing the pace of bond purchases contributed to higher yields and lower prices on Treasury notes through June 2013. Market commentators noted that the prospect of continued improvement in the U.S. economy could give the Fed room to withdraw stimulus.

The S&P 500 Index rose 13.8% in the first half of 2013. The index reached a record high on May 21. Of the 10 major sectors, four outperformed the broader market: Financials, Consumer Discretionary, Consumer Staples and Health Care. Growth stocks (as represented by the Russell 3000 Growth Index) underperformed value stocks (as represented by the Russell 3000 Value Index). Large cap stocks (as represented by the Russell 1000 Index) underperformed small caps (as represented by the Russell 2000 Index).

PORTFOLIO REVIEW / PERIOD END POSITIONING

For the six months ended June 30, 2013, the Portfolio underperformed the Russell Midcap Value Index (the “Index”). All of the Portfolio’s underperformance occurred during the first quarter. Strong stock selection enabled the Portfolio to outperform its benchmark during the second quarter.

During the six month period, stock selection within the Information Technology and Consumer Staples sectors detracted from the Portfolio’s relative performance. Within Information Technology, shares of Arrow Electronics, Inc., a provider of products and services to industrial and commercial users of electronic components and enterprise computing solutions, underperformed due to weak demand and disappointing system distribution sales partly related to steep revenue declines in its largest supplier’s server and storage businesses. In addition, shares of Broadcom Corporation, a global semiconductor solutions company that was eliminated from the Portfolio during the period, underperformed due to concerns about recent weakness in smartphone sales, which investors fear will impact component suppliers. Within Consumer Staples, shares of Bunge Ltd., a global agribusiness and food company, underperformed after the company reported fourth quarter 2012 results below consensus expectations. The agribusiness and sugar divisions were the main drivers of weakness. The Portfolio’s relative performance was also hurt by an overweight allocation within the Materials sector.

Contributing to relative performance during the six month period was positive stock selection and an overweight allocation within the Health Care sector. Shares of Actavis, Inc., a generic and specialty pharmaceutical company, rallied following the announcement of a definitive agreement to acquire Warner Chilcott, a pharmaceutical company focused on women’s health. Actavis is expected to benefit from operational and tax synergies, and the merger is consistent with management’s strategy to build out its branded drug business. In addition, shares of Community Health Systems Inc., an operator of hospitals in the United States, rallied due to solid fourth quarter 2012 results driven by higher than expected flu-related admissions. The market also anticipates the company to benefit from the Patient Protection and Affordable Care Act, which is expected to have a positive impact on company’s earnings and margins as the number of

 

MIST-1

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Managed by Lord, Abbett & Co. LLC

Portfolio Manager Commentary*—(Continued)

 

uninsured persons decreases. Stock selection within the Energy sector also benefited relative performance. Shares of Superior Energy Services, Inc., a provider of oilfield services and equipment to the international and U.S. onshore and offshore markets, rose after the company reported solid first quarter 2013 results due to improved U.S. onshore operations driven by increased pressure pumping utilization.

The Health Care sector remained the largest overweight in the Portfolio, primarily concentrated in the Health Care Providers and Services industry. We continue to focus on select Health Care providers that we believe would benefit from an increase in the insured population due to the implementation of the Patient Protection and Affordable Care Act. At the end of the period, the Materials sector was also an overweight relative to the Index, although we reduced exposure due to weakened global demand and competitive pressures. During the past six months, we increased the Portfolio’s exposure to the Information Technology sector with the addition of three new issues within the Software and Semiconductors segments. The Consumer Discretionary sector remained an underweight relative to the Index. However, we are overweight the Specialty Retail industry focusing on companies that are gaining market share and allocating capital more efficiently. The Utilities and Telecommunication Services sectors remained large underweights in the Portfolio as we find more compelling investment opportunities in other segments of the market.

Jeff Diamond

Robert P. Fetch

Portfolio Managers

Lord, Abbett & Co. LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

 


A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP VALUE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year        Since Inception2  
Lord Abbett Mid Cap Value Portfolio                           

Class A

        14.48           26.82           7.41           8.49           —   

Class B

        14.32           26.51           7.14           8.22           —   

Class E

        14.40           26.65           —           —           17.83   
Russell Midcap Value Index        16.10           27.65           8.87           10.92           —   

1 The Russell Midcap Value Index is an unmanaged measure of performance of those Russell Midcap companies (the 800 smallest companies in the Russell 1000 Index) with lower price-to-book ratios and higher forecasted growth values.

2 Inception of Class A shares is 8/20/1997. Inception of Class B shares is 4/3/2001. Inception of Class E shares is 4/25/2012.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Hartford Financial Services Group, Inc.      2.1   
Cigna Corp.      1.8   
SunTrust Banks, Inc.      1.7   
CIT Group, Inc.      1.7   
Jones Lang LaSalle, Inc.      1.6   
Interpublic Group of Cos., Inc. (The)      1.6   
XL Group plc      1.6   
Fidelity National Information Services, Inc.      1.5   
Actavis, Inc.      1.5   
Macy’s, Inc.      1.5   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Financials      31.4   
Industrials      12.9   
Health Care      11.6   
Information Technology      10.8   
Consumer Discretionary      8.9   
Energy      7.7   
Materials      6.7   
Utilities      6.4   
Consumer Staples      3.6   

 

MIST-3

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Lord Abbett Mid Cap Value Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

      Actual      0.67 %     $ 1,000.00         $ 1,144.80         $ 3.56   
     Hypothetical*      0.67 %     $ 1,000.00         $ 1,021.47         $ 3.36   

Class B(a)

      Actual      0.92 %     $ 1,000.00         $ 1,143.20         $ 4.89   
     Hypothetical*      0.92 %     $ 1,000.00         $ 1,020.23         $ 4.61   

Class E(a)

      Actual      0.82 %     $ 1,000.00         $ 1,144.00         $ 4.36   
     Hypothetical*      0.82 %     $ 1,000.00         $ 1,020.73         $ 4.11   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—99.2% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.9%

  

Esterline Technologies Corp. (a)

     140,815      $ 10,179,516   
   

 

 

  

Automobiles—0.5%

  

Harley-Davidson, Inc.

     108,000        5,920,560   
   

 

 

  

Beverages—0.6%

  

Beam, Inc.

     97,900        6,178,469   
   

 

 

  

Capital Markets—4.4%

  

Affiliated Managers Group, Inc. (a)

     63,400        10,393,796   

Ares Capital Corp.

     697,500        11,997,000   

Lazard, Ltd. - Class A

     141,900        4,562,085   

Raymond James Financial, Inc.

     323,400        13,899,732   

TD Ameritrade Holding Corp. (b)

     343,200        8,336,328   
   

 

 

  
      49,188,941   
   

 

 

  

Chemicals—3.1%

  

Ashland, Inc.

     105,900        8,842,650   

Axiall Corp.

     191,200        8,141,296   

CF Industries Holdings, Inc.

     26,000        4,459,000   

Chemtura Corp. (a)

     385,000        7,815,500   

International Flavors & Fragrances, Inc.

     69,700        5,238,652   
   

 

 

  
      34,497,098   
   

 

 

  

Commercial Banks—9.1%

  

CIT Group, Inc. (a)

     414,500        19,328,135   

City National Corp. (b)

     130,600        8,276,122   

Comerica, Inc.

     370,900        14,772,947   

Fifth Third Bancorp.

     736,000        13,284,800   

M&T Bank Corp.

     110,400        12,337,200   

Signature Bank (a) (b)

     62,800        5,213,656   

SunTrust Banks, Inc.

     614,400        19,396,608   

Zions Bancorporation

     303,000        8,750,640   
   

 

 

  
      101,360,108   
   

 

 

  

Commercial Services & Supplies—0.6%

  

Tyco International, Ltd.

     200,000        6,590,000   
   

 

 

  

Computers & Peripherals—1.7%

  

NCR Corp. (a)

     385,100        12,704,449   

NetApp, Inc. (a)

     163,600        6,180,808   
   

 

 

  
      18,885,257   
   

 

 

  

Construction & Engineering—2.3%

  

Jacobs Engineering Group, Inc. (a) (b)

     246,900        13,611,597   

URS Corp.

     258,500        12,206,370   
   

 

 

  
      25,817,967   
   

 

 

  

Containers & Packaging—0.9%

  

Rock-Tenn Co. - Class A

     97,567        9,744,992   
   

 

 

  

Electric Utilities—3.2%

  

Edison International

     84,700        4,079,152   

ITC Holdings Corp. (b)

     65,400        5,971,020   

N.V. Energy, Inc.

     477,300        11,197,458   

Electric Utilities—(Continued)

  

PPL Corp.

     462,800      $ 14,004,328   
   

 

 

  
      35,251,958   
   

 

 

  

Electrical Equipment—1.1%

  

Eaton Corp. plc

     180,200        11,858,962   
   

 

 

  

Electronic Equipment, Instruments & Components—3.3%

  

Anixter International, Inc. (a)

     195,600        14,828,436   

Arrow Electronics, Inc. (a)

     266,300        10,612,055   

TE Connectivity, Ltd.

     261,700        11,917,818   
   

 

 

  
      37,358,309   
   

 

 

  

Energy Equipment & Services—3.8%

  

Atwood Oceanics, Inc. (a) (b)

     144,700        7,531,635   

Cameron International Corp. (a)

     90,600        5,541,096   

Nabors Industries, Ltd.

     366,800        5,615,708   

Rowan Cos. plc - Class A (a)

     219,200        7,468,144   

Superior Energy Services, Inc. (a)

     273,000        7,081,620   

Tidewater, Inc. (b)

     152,000        8,659,440   
   

 

 

  
      41,897,643   
   

 

 

  

Food Products—2.3%

  

Bunge, Ltd.

     202,200        14,309,694   

Kellogg Co.

     93,300        5,992,659   

Pinnacle Foods, Inc.

     240,000        5,796,000   
   

 

 

  
      26,098,353   
   

 

 

  

Health Care Equipment & Supplies—0.6%

  

Hologic, Inc. (a)

     370,000        7,141,000   
   

 

 

  

Health Care Providers & Services—6.4%

  

Cigna Corp.

     277,600        20,123,224   

Community Health Systems, Inc.

     275,800        12,929,504   

DaVita HealthCare Partners, Inc. (a)

     48,200        5,822,560   

Humana, Inc.

     136,500        11,517,870   

Laboratory Corp. of America Holdings (a) (b)

     124,400        12,452,440   

Universal Health Services, Inc. - Class B

     123,000        8,236,080   
   

 

 

  
      71,081,678   
   

 

 

  

Hotels, Restaurants & Leisure—1.1%

  

Hyatt Hotels Corp. - Class A (a) (b)

     148,800        6,005,568   

Orient-Express Hotels, Ltd. - Class A (a)

     484,000        5,885,440   
   

 

 

  
      11,891,008   
   

 

 

  

Household Durables—1.0%

  

Tupperware Brands Corp.

     146,900        11,412,661   
   

 

 

  

Insurance—9.7%

  

ACE, Ltd.

     131,300        11,748,724   

Allstate Corp. (The)

     235,300        11,322,636   

Brown & Brown, Inc.

     209,600        6,757,504   

Everest Re Group, Ltd.

     98,800        12,672,088   

Hartford Financial Services Group, Inc.

     761,000        23,530,120   

Lincoln National Corp.

     424,500        15,481,515   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Insurance—(Continued)

  

Marsh & McLennan Cos., Inc.

     233,600      $ 9,325,312   

XL Group plc

     575,000        17,434,000   
   

 

 

  
      108,271,899   
   

 

 

  

IT Services—1.5%

  

Fidelity National Information Services, Inc.

     401,200        17,187,408   
   

 

 

  

Life Sciences Tools & Services—1.5%

  

Life Technologies Corp. (a)

     53,700        3,974,337   

PerkinElmer, Inc.

     380,500        12,366,250   
   

 

 

  
      16,340,587   
   

 

 

  

Machinery—4.1%

  

Dover Corp.

     172,300        13,380,818   

IDEX Corp.

     189,700        10,207,757   

Kennametal, Inc. (b)

     61,700        2,395,811   

Oshkosh Corp. (a)

     218,000        8,277,460   

Pentair, Ltd.

     195,000        11,249,550   
   

 

 

  
      45,511,396   
   

 

 

  

Media—1.6%

  

Interpublic Group of Cos., Inc. (The)

     1,222,000        17,780,100   
   

 

 

  

Metals & Mining—2.0%

  

Allegheny Technologies, Inc. (b)

     363,000        9,550,530   

Reliance Steel & Aluminum Co.

     190,800        12,508,848   
   

 

 

  
      22,059,378   
   

 

 

  

Multi-Utilities—3.2%

  

CMS Energy Corp.

     473,400        12,862,278   

PG&E Corp.

     126,000        5,761,980   

Sempra Energy

     115,000        9,402,400   

Wisconsin Energy Corp.

     180,000        7,378,200   
   

 

 

  
      35,404,858   
   

 

 

  

Multiline Retail—1.5%

  

Macy’s, Inc.

     352,400        16,915,200   
   

 

 

  

Oil, Gas & Consumable Fuels—3.9%

  

Denbury Resources, Inc. (a)

     375,000        6,495,000   

Noble Energy, Inc.

     185,600        11,143,424   

QEP Resources, Inc.

     260,200        7,228,356   

Range Resources Corp.

     90,700        7,012,924   

Southwestern Energy Co. (a)

     154,800        5,654,844   

Tesoro Corp.

     116,600        6,100,512   
   

 

 

  
      43,635,060   
   

 

 

  

Paper & Forest Products—0.7%

  

International Paper Co.

     173,700        7,696,647   
   

 

 

  

Personal Products—0.7%

  

Avon Products, Inc.

     347,000        7,297,410   
   

 

 

  

Pharmaceuticals—3.0%

  

Actavis, Inc. (a)

     135,000      $ 17,039,700   

Mylan, Inc. (a)

     541,200        16,793,436   
   

 

 

  
      33,833,136   
   

 

 

  

Real Estate Investment Trusts—5.7%

  

BioMed Realty Trust, Inc.

     475,000        9,609,250   

Brandywine Realty Trust

     472,900        6,393,608   

Camden Property Trust

     75,800        5,240,812   

DDR Corp. (b)

     434,000        7,226,100   

Liberty Property Trust

     245,600        9,077,376   

Macerich Co. (The) (b)

     94,800        5,779,956   

Ventas, Inc.

     114,400        7,946,224   

Vornado Realty Trust

     99,700        8,260,145   

Weyerhaeuser Co.

     156,400        4,455,836   
   

 

 

  
      63,989,307   
   

 

 

  

Real Estate Management & Development—2.2%

  

Jones Lang LaSalle, Inc.

     197,800        18,027,492   

Realogy Holdings Corp. (a)

     131,200        6,302,848   
   

 

 

  
      24,330,340   
   

 

 

  

Road & Rail—2.2%

  

Hertz Global Holdings, Inc. (a)

     510,000        12,648,000   

Ryder System, Inc.

     203,500        12,370,765   
   

 

 

  
      25,018,765   
   

 

 

  

Semiconductors & Semiconductor Equipment—3.1%

  

Analog Devices, Inc.

     267,000        12,031,020   

NVIDIA Corp. (b)

     678,700        9,522,161   

NXP Semiconductor NV (a)

     215,800        6,685,484   

Xilinx, Inc.

     152,000        6,020,720   
   

 

 

  
      34,259,385   
   

 

 

  

Software—1.1%

  

Adobe Systems, Inc. (a)

     135,000        6,150,600   

Symantec Corp.

     257,000        5,774,790   
   

 

 

  
      11,925,390   
   

 

 

  

Specialty Retail—3.1%

  

Abercrombie & Fitch Co. - Class A

     259,600        11,746,900   

Chico’s FAS, Inc.

     173,417        2,958,494   

CST Brands, Inc. (a) (b)

     206,282        6,355,549   

Pier 1 Imports, Inc.

     347,000        8,151,030   

Tiffany & Co.

     72,100        5,251,764   
   

 

 

  
      34,463,737   
   

 

 

  

Trading Companies & Distributors—1.5%

  

HD Supply Holdings, Inc. (a)

     268,500        5,045,115   

WESCO International, Inc. (a) (b)

     180,000        12,232,800   
   

 

 

  
      17,277,915   
   

 

 

  

Total Common Stocks
(Cost $924,736,175)

       1,105,552,398   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Short-Term Investments—8.0%

 

Security Description   Shares/
Principal
Amount*		     Value  

Mutual Fund—7.1%

  

State Street Navigator Securities Lending MET Portfolio (c)

     79,484,772      $ 79,484,772   
   

 

 

  

Repurchase Agreement—0.9%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $10,476,009 on 07/01/13, collateralized by $9,940,000 U.S. Treasury Note at 4.125% due 05/15/15 with a value of $10,688,711.

     10,476,000        10,476,000   
   

 

 

  

Total Short-Term Investments
(Cost $89,960,772)

       89,960,772   
   

 

 

  

Total Investments—107.2%
(Cost $1,014,696,947) (d)

       1,195,513,170   

Other assets and liabilities (net)—(7.2)%

       (80,724,194 ) 
   

 

 

  
Net Assets—100.0%     $ 1,114,788,976   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $77,041,480 and the collateral received consisted of cash in the amount of $79,484,772. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $1,014,696,947. The aggregate unrealized appreciation and depreciation of investments were $191,678,615 and $(10,862,392), respectively, resulting in net unrealized appreciation of $180,816,223.

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 1,105,552,398       $ —        $ —         $ 1,105,552,398   
Short-Term Investments           

Mutual Fund

      79,484,772         —          —           79,484,772   

Repurchase Agreement

      —           10,476,000        —           10,476,000   

Total Short-Term Investments

      79,484,772         10,476,000        —           89,960,772   

Total Investments

    $ 1,185,037,170       $ 10,476,000      $ —         $ 1,195,513,170   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (79,484,772 )    $ —         $ (79,484,772 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,195,513,170   

Cash

      649,116   

Receivable for:

   

Investments sold

      10,189,236   

Fund shares sold

      129,377   

Dividends and interest

      1,423,852   
  

 

 

  

Total Assets

      1,207,904,751   

Liabilities

   

Payables for:

   

Investments purchased

      12,108,003   

Fund shares redeemed

      693,634   

Collateral for securities loaned

      79,484,772   

Accrued expenses:

   

Management fees

      592,494   

Distribution and service fees

      159,591   

Deferred trustees’ fees

      63,943   

Other expenses

      13,338   
  

 

 

  

Total Liabilities

      93,115,775   
  

 

 

  

Net Assets

    $ 1,114,788,976   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 969,069,846   

Undistributed net investment income

      3,965,724   

Accumulated net realized loss

      (39,062,817 ) 

Unrealized appreciation on investments

      180,816,223   
  

 

 

  

Net Assets

    $ 1,114,788,976   
  

 

 

  

Net Assets

   

Class A

    $ 328,472,146   

Class B

      747,523,066   

Class E

      38,793,764   

Capital Shares Outstanding*

   

Class A

      16,489,125   

Class B

      38,007,133   

Class E

      1,959,408   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 19.92   

Class B

      19.67   

Class E

      19.80   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,014,696,947.
(b) Includes securities loaned at value of $77,041,480.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 8,558,282   

Interest

      848   

Securities lending income

      209,907   
  

 

 

  

Total investment income

      8,769,037   

Expenses

   

Management fees

      3,578,688   

Administration fees

      14,020   

Custodian and accounting fees

      53,636   

Distribution and service fees—Class B

      932,392   

Distribution and service fees—Class E

      29,219   

Audit and tax services

      19,803   

Legal

      11,685   

Trustees’ fees and expenses

      14,921   

Shareholder reporting

      29,637   

Insurance

      3,515   

Miscellaneous

      5,981   
  

 

 

  

Total expenses

      4,693,497   

Less management fee waiver

      (14,712 ) 

Less broker commission recapture

      (19,959 ) 
  

 

 

  

Net expenses

      4,658,826   
  

 

 

  

Net Investment Income

      4,110,211   
  

 

 

  

Net Realized and Unrealized Gain

   

Net realized gain on investments

      70,472,103   
  

 

 

  

Net change in unrealized appreciation on investments

      73,438,968   
  

 

 

  

Net realized and unrealized gain

      143,911,071   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 148,021,282   
  

 

 

  

 

(a) Net of foreign withholding taxes of $1,013.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 4,110,211      $ 9,133,077   

Net realized gain

      70,472,103        53,908,678   

Net change in unrealized appreciation

      73,438,968        12,305,310   
  

 

 

    

 

 

  

Increase in net assets from operations

      148,021,282        75,347,065   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (3,052,538 )      (270,664 ) 

Class B

      (5,619,674 )      (1,502,171 ) 

Class E

      (326,720 )      0   
  

 

 

    

 

 

  

Total distributions

      (8,998,932 )      (1,772,835 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (71,911,968 )      581,474,194   
  

 

 

    

 

 

  

Total Increase in Net Assets

      67,110,382        655,048,424   

Net Assets

     

Beginning of period

      1,047,678,594        392,630,170   
  

 

 

    

 

 

  

End of period

    $ 1,114,788,976      $ 1,047,678,594   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 3,965,724      $ 8,854,445   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      471,571      $ 9,119,580        842,348      $ 13,660,798   

Shares issued through acquisition

      0        0        16,541,706        281,043,573   

Reinvestments

      162,110        3,052,538        16,305        270,664   

Redemptions

      (1,483,677 )      (28,749,302 )      (2,373,212 )      (39,226,118 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (849,996 )    $ (16,577,184 )      15,027,147      $ 255,748,917   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,062,245      $ 20,187,644        1,962,903      $ 31,424,405   

Shares issued through acquisition

      0        0        21,669,916        363,837,884   

Reinvestments

      302,133        5,619,674        91,540        1,502,171   

Redemptions

      (4,044,383 )      (77,381,682 )      (6,566,763 )      (107,582,351 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (2,680,005 )    $ (51,574,364 )      17,157,596      $ 289,182,109   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E (a)

         

Sales

      40,680      $ 781,557        46,266      $ 752,221   

Shares issued through acquisition

      0        0        2,418,202        40,867,612   

Reinvestments

      17,453        326,720        0        0   

Redemptions

      (253,946 )      (4,868,697 )      (309,247 )      (5,076,665 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (195,813 )    $ (3,760,420 )      2,155,221      $ 36,543,168   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (71,911,968 )      $ 581,474,194   
    

 

 

      

 

 

  

 

(a) Commencement of operations was April 25, 2012.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 17.57      $ 15.38       $ 16.04       $ 12.84       $ 10.40       $ 19.70   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.09        0.23         0.10         0.12         0.11         0.26   

Net realized and unrealized gain (loss) on investments

      2.44        2.07         (0.64 )       3.19         2.60         (7.04 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      2.53        2.30         (0.54 )       3.31         2.71         (6.78 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.18 )      (0.11 )       (0.12 )       (0.11 )       (0.27 )       (0.13 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (2.39 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.18 )      (0.11 )       (0.12 )       (0.11 )       (0.27 )       (2.52 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 19.92      $ 17.57       $ 15.38       $ 16.04       $ 12.84       $ 10.40   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      14.48  (c)      15.00         (3.46 )       25.84         26.86         (38.66 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.67  (d)      0.69         0.73         0.75         0.76         0.75   

Net ratio of expenses to average net assets (%) (e)

      0.67  (d)      0.69         0.73         0.75         0.76         0.75   

Ratio of net investment income to average net assets (%)

      0.92  (d)      1.37         0.65         0.86         1.04         1.78   

Portfolio turnover rate (%)

      35  (c)      66         47         77         113         30   

Net assets, end of period (in millions)

    $ 328.5      $ 304.7       $ 35.6       $ 42.5       $ 38.2       $ 36.9   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 17.34      $ 15.18       $ 15.84       $ 12.69       $ 10.27       $ 19.48   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.06        0.16         0.06         0.08         0.08         0.22   

Net realized and unrealized gain (loss) on investments

      2.42        2.07         (0.64 )       3.15         2.57         (6.95 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      2.48        2.23         (0.58 )       3.23         2.65         (6.73 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.15 )      (0.07 )       (0.08 )       (0.08 )       (0.23 )       (0.09 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (2.39 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.15 )      (0.07 )       (0.08 )       (0.08 )       (0.23 )       (2.48 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 19.67      $ 17.34       $ 15.18       $ 15.84       $ 12.69       $ 10.27   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      14.32  (c)      14.70         (3.70 )       25.53         26.53         (38.77 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.92  (d)      0.94         0.98         1.00         1.01         1.00   

Net ratio of expenses to average net assets (%) (e)

      0.92  (d)      0.94         0.98         1.00         1.01         1.00   

Ratio of net investment income to average net assets (%)

      0.66  (d)      1.00         0.41         0.62         0.76         1.56   

Portfolio turnover rate (%)

      35  (c)      66         47         77         113         30   

Net assets, end of period (in millions)

    $ 747.5      $ 705.4       $ 357.1       $ 382.3       $ 307.1       $ 228.3   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Financial Highlights

 

Selected per share data             
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year
Ended
December 31,
2012(f)		  

Net Asset Value, Beginning of Period

    $ 17.46      $ 16.44   
  

 

 

    

 

 

  

Income (Loss) from Investment Operations

     

Net investment income (a)

      0.07        0.14   

Net realized and unrealized gain on investments

      2.43        0.88   
  

 

 

    

 

 

  

Total from investment operations

      2.50        1.02   
  

 

 

    

 

 

  

Less Distributions

     

Distributions from net investment income

      (0.16 )      0.00   
  

 

 

    

 

 

  

Total distributions

      (0.16 )      0.00   
  

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 19.80      $ 17.46   
  

 

 

    

 

 

  

Total Return (%) (b)

      14.40  (c)      6.20 (c) 

Ratios/Supplemental Data

     

Gross ratio of expenses to average net assets (%)

      0.82  (d)      0.84 (d) 

Net ratio of expenses to average net assets (%) (e)

      0.82  (d)      0.84 (d) 

Ratio of net investment income to average net assets (%) (d)

      0.76  (d)      1.26   

Portfolio turnover rate (%)

      35  (c)      66   

Net assets, end of period (in millions)

    $ 38.8      $ 37.6   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(f) Commencement of operations was April 25, 2012.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Lord Abbett Mid Cap Value Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-13

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to broker commission recapture, merger related adjustments and Real Estate Investment Trust (REITs). These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $10,476,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

 

MIST-14

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 387,829,877       $ 0       $ 450,208,367   

The Portfolio engaged in security transactions with other accounts managed by Lord, Abbett & Co. LLC. that amounted to $1,315,589 in sales of investments which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Lord, Abbett & Co. LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$3,578,688      0.700 %    First $200 million
     0.650 %    $200 million to $500 million
     0.625 %    Over $500 million

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets

0.050%

    First $200 million

(0.025)%

    $500 million to $900 million

0.025%

    Over $1 billion

 

MIST-15

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Any reductions in total advisory fees paid by the Portfolio due to these waivers may be reduced or eliminated by changes in the advisory fee structure at higher asset levels. The Adviser will receive advisory fees equal to 0.650% of the Portfolio’s average daily net assets for amounts over $500 million but less than $900 million (0.025% over the contractual advisory fee rate). As a result, the dollar amount of the waiver will be reduced as assets grow between $500 million up to $900 million, but the advisory fee net of waivers will never exceed the contractual dollar amount that would otherwise be payable under the advisory fee.

An identical agreement was in place for the period April 30, 2012 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2012      2012      2011  
$1,772,835    $ 2,301,448       $ —       $ —       $ 1,772,835       $ 2,301,448   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$8,919,920    $ —       $ 104,798,180       $ (106,955,845 )    $ 6,762,255   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010

 

MIST-16

Met Investors Series Trust

Lord Abbett Mid Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

(the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2017 were $106,955,845*.

 

* The Portfolio acquired capital losses in its merger with MSF Lord Abbett Mid Cap Value on April 27, 2012.

8. Acquisition

At the close of business on April 27, 2012, the Portfolio, with aggregate Class A, Class B and Class E net assets of $41,925,587, $375,659,920 and $1,028, respectively, acquired all of the assets and liabilities of Lord Abbett Mid Cap Value Portfolio of the Metropolitan Series Fund (“MSF Lord Abbett Mid Cap Value”). The acquisition was accomplished by a tax-free exchange of 16,541,706 Class A shares of the Portfolio (valued at $281,043,573) for 13,726,281 Class A shares of MSF Lord Abbett Mid Cap Value; 21,669,916 Class B shares of the Portfolio (valued at $363,837,884) for 17,930,264 of Class B shares of MSF Lord Abbett Mid Cap Value; and 2,418,202 Class E shares of the Portfolio (valued at $40,867,612) for 2,000,483 of Class E shares of MSF Lord Abbett Mid Cap Value. MSF Lord Abbett Mid Cap Value then distributed the Class A, B and E shares of the Portfolio that it received from the Portfolio to its shareholders by class. The transaction was part of a restructuring designed to eliminate the offering of overlapping Portfolios in the MetLife, Inc. families of funds with similar investment objectives and similar investment strategies that serve as funding vehicles for insurance contracts that are offered by affiliates of MetLife. MSF Lord Abbett Mid Cap Value’s net assets on April 27, 2012, were $281,043,573, $363,837,884 and $40,867,612 for Class A, Class B and Class E shares, respectively, including investments valued at $686,007,596 with a cost basis of $627,319,877. For financial reporting purposes, assets received and shares issued by the Portfolio were recorded at fair value; however, the cost basis of the investments received by the Portfolio from MSF Lord Abbett Mid Cap Value were carried forward to align ongoing reporting of the Portfolio’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The Portfolio acquired $(53,973,734) in capital loss carry forwards from MSF Lord Abbett Mid Cap Value.

The net assets of the Portfolio immediately after the acquisition were $1,103,335,604, which included $58,687,719 of acquired unrealized appreciation.

Assuming the acquisition had been completed on January 1, 2012, the Portfolio’s pro-forma results of operations for the year ended December 31, 2012 are as follows:

 

(Unaudited)

       

Net Investment income

    $ 10,353,108 (a) 

Net realized and unrealized gain (loss) on investments

    $ 135,813,180 (b) 
  

 

 

  

Net increase in net assets from operations

    $ 146,166,288   
  

 

 

  

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of MSF Lord Abbett Mid Cap Value that have been included in the Portfolio’s Statement of Operations since April 27, 2012.

 

(a) $9,133,077 as reported plus $1,111,167 MSF Lord Abbett Mid Cap Value pre-merger, plus $72,475 in lower advisory fees, plus $36,389 of pro-forma eliminated other expenses.
(b) $107,377,255 Unrealized appreciation, as reported December 31, 2012, minus $130,479,053 pro-forma December 31, 2011 Unrealized appreciation, plus $53,908,678 Net realized gain as reported, plus $105,006,300 in Net Realized gain from MSF Lord Abbett Mid Cap Value pre-merger.

 

MIST-17

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Managed by Eaton Vance Management

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the Met/Eaton Vance Floating Rate Portfolio returned 1.88% and 1.67%, respectively. The Portfolio’s benchmark, the S&P/LSTA Leveraged Loan Index1, returned 2.31%.

MARKET ENVIRONMENT / CONDITIONS

The U.S. floating-rate loan market, as measured by the S&P/LSTA Leveraged Loan Index, advanced 2.31% for the six month period ended June 30, 2013, with investment income comprising the majority of the return over the period. The loan market posted gains in each of the first five months of 2013, before retreating in late May and June as selling pressure from high-yield bond strategies (many high-yield managers had “crossed over” into loans) and increasing new issue loan supply, tempered loan prices. Index average loan prices ended the period at $97.81, slightly higher than the $97.51 average price six months earlier.

While technical factors ebbed, fundamental conditions remained broadly in check and the default rate remained low at 1.37% by principal amount on a last-twelve-months basis at period end, a level below the market’s long-term averages. Despite the selling of loans in high-yield bond strategies facing redemptions, net demand remained robust throughout the period, with retail loan funds, institutional accounts, and CLOs (collateralized loan obligations) all contributing positively to the demand picture. A sizeable level on new supply in the loans market contributed to the easing in loan prices toward the end of the six month period.

PORTFOLIO REVIEW / PERIOD END POSITIONING

During the first six months of 2013, lower quality loans outpaced their higher quality loan counterparts. Returns for higher quality loans were comprised of primarily investment income as the average price remained close to par throughout the six month period. BB and B-rated loans, which began the period with average prices of $100.38 and $98.90, respectively, ended the period at $99.79 and $99.12. Lower quality CCC loans, on the other hand, finished the period with an average price of $82.89, up from $79.25 six months earlier. Over the six month period, CCC loans advanced 6.49%, while the BB and B loan groups delivered more moderate returns of 1.40% and 2.45%, respectively. The Portfolio’s higher quality focus, with overweight exposures to BB and B loans and a sizeable underweight to the CCC loan group, was a headwind to relative performance. Despite the near term outperformance of lower quality loans, we believe the optimal risk/return profile can be achieved predominately through interest income realized through investments of higher quality loans, rather than seeking the capital gains associated with distressed loans.

From an industry exposures perspective, underweight positions in Utilities and Radio & Television, two of the stronger-performing industry groups during the period, detracted from relative performance. Contributing to relative performance was an overweight exposure to the Electronics/Electrical industry. Among the largest detracting loan positions during the period were holdings in Aerospace & Defense company IAP Worldwide Services and Leisure Goods company Lodgenet Interactive, both of which experienced a decline in price during the period.

The cornerstones of the strategy’s investment philosophy include intense, internal credit research and extreme diversification. As of June 30, 2013, the Portfolio remained diversified across 425 loan issuer positions and 35 industry groups. The Portfolio continued to maintain overweight positions to the BB (41.3% vs. 36.7%) and B (49.4% vs. 46.0%) loan groups, while maintaining limited exposure to the lower quality CCC segment (1.1% vs. 8.4%). The Portfolio’s higher quality positioning was also exhibited in its average loan price of $99.52 vs. a $97.81 average loan price for the Index as of June 30, 2013.

Given the floating-rate nature of the asset class, the Portfolio is exposed to minimal interest rate risk as the loans in the Portfolio reset their coupons every 58 days on average as of June 30, 2013.

Scott H. Page

Craig P. Russ

Andrew N. Sveen

Portfolio Managers

Eaton Vance Management

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-1

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE S&P/LSTA LEVERAGED LOAN INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
Met/Eaton Vance Floating Rate Portfolio                 

Class A

        1.88           5.63           4.76   

Class B

        1.67           5.34           4.47   
S&P/LSTA Leveraged Loan Index        2.31           7.32           5.41   

1 The Standard & Poor’s/Loan Syndications and Trading Association (S&P/LSTA) Index is a weekly total return index that uses mark-to-market pricing to calculate market value change. The Index tracks the current outstanding balance and spread over LIBOR for fully funded term loans. The facilities included represent a broad cross section of leveraged loans syndicated in the U.S., including dollar-denominated loans to overseas issuers.

2 Inception of the Class A and Class B shares is 4/30/2010. Index returns are based on an inception date of 4/30/2010.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

         
% of
Net Assets		  
HCA, Inc.      1.2   
Valeant Pharmaceuticals International, Inc.      1.2   
HJ Heinz Co.      1.2   
Intelsat Jackson Holdings, Ltd.      1.1   
SunGard Data Systems, Inc.      1.0   
Asurion LLC      1.0   
NBTY, Inc.      0.9   
MEG Energy Corp.      0.9   
Ineos U.S. Finance LLC      0.9   
Community Health Systems, Inc.      0.8   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Floating Rate Loans      100.0   
Corporate Bonds & Notes      0.0   

 

MIST-2

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Met/Eaton Vance Floating Rate Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

      Actual      0.67 %     $ 1,000.00         $ 1,018.80         $ 3.35   
     Hypothetical*      0.67 %     $ 1,000.00         $ 1,021.47         $ 3.36   

Class B

      Actual      0.92 %     $ 1,000.00         $ 1,016.70         $ 4.60   
     Hypothetical*      0.92 %     $ 1,000.00         $ 1,020.23         $ 4.61   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-3

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—97.8% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Advertising—0.6%

  

Affinion Group, Inc.
Term Loan
6.500%, 10/10/16

     2,070,025      $ 1,972,069   

inVentiv Health, Inc.
Incremental Term Loan
7.750%, 05/15/18

     1,555,356        1,533,970   

Term Loan
7.500%, 08/04/16

     1,681,243        1,660,228   
   

 

 

  
      5,166,267   
   

 

 

  

Aerospace/Defense—2.0%

  

DAE Aviation Holdings, Inc.
Term Loan
6.250%, 10/29/18

     682,913        683,767   

6.250%, 11/02/18

     309,587        309,974   

Ducommun, Inc.
Term Loan
4.750%, 06/27/17

     388,487        395,528   

DynCorp International LLC
Term Loan
6.250%, 07/07/16

     1,750,814        1,761,756   

Evergreen International Aviation, Inc.
Term Loan
5.000%, 06/30/15 (b)

     101,124        80,899   

Flying Fortress, Inc.
Term Loan
3.500%, 06/30/17

     2,729,167        2,718,932   

Hawker Beechcraft Acquisition Company LLC
Term Loan
5.750%, 02/14/20

     775,000        776,453   

Sequa Corp.
Term Loan
5.250%, 06/19/17

     1,517,375        1,527,334   

Silver II US Holdings LLC
Term Loan
4.000%, 12/13/19

     4,431,491        4,406,218   

Transdigm, Inc.
Term Loan
3.750%, 02/28/20

     5,329,625        5,280,768   
   

 

 

  
      17,941,629   
   

 

 

  

Apparel—0.0%

  

Wolverine Worldwide, Inc.
Term Loan
4.000%, 07/31/19

     409,125        411,679   
   

 

 

  

Auto Manufacturers—0.8%

  

Chrysler Group LLC
Term Loan
0.000%, 05/24/17 (c)

     4,850,000        4,876,399   

HHI Holdings LLC
Term Loan
5.000%, 10/05/18

     1,902,796        1,924,202   
   

 

 

  
      6,800,601   
   

 

 

  

Auto Parts & Equipment—3.3%

  

Affinia Group Intermediate Holdings, Inc.
Term Loan
4.750%, 04/15/20

     550,000      $ 547,938   

Allison Transmission, Inc.
Term Loan
3.200%, 08/07/17

     1,396,799        1,403,492   

4.250%, 08/23/19

     4,036,684        4,062,543   

Federal-Mogul Corp.
Term Loan
2.130%, 12/29/14

     3,547,924        3,395,235   

2.130%, 12/28/15

     2,853,863        2,731,044   

Goodyear Tire & Rubber Co. (The)
Second Lien Term Loan
4.750%, 04/30/19

     7,300,000        7,329,660   

Jason, Inc.
Term Loan
5.000%, 02/28/19

     513,333        513,333   

Metaldyne Co. LLC
Term Loan
5.000%, 12/18/18

     1,268,625        1,271,797   

Schaeffler AG
Term Loan
4.250%, 01/27/17

     775,000        776,937   

Tomkins LLC
Term Loan
3.750%, 09/29/16

     2,955,007        2,974,400   

Tower International, Inc.
Term Loan
5.750%, 04/16/20

     800,000        804,000   

Veyance Technologies, Inc.
First Lien Term Loan
5.250%, 09/08/17

     3,366,563        3,354,780   
   

 

 

  
      29,165,159   
   

 

 

  

Beverages—0.1%

  

Constellation Brands, Inc.
Term Loan
2.750%, 05/01/20

     800,000        797,900   
   

 

 

  

Biotechnology—0.0%

  

Alkermes, Inc.
Term Loan
3.500%, 09/18/19

     373,120        369,856   
   

 

 

  

Capital Markets—0.4%

  

American Stock Transfer & Trust Co. LLC
First Lien Term Loan
0.000%, 06/11/20 (c)

     675,000        671,625   

Compass Investors, Inc.
Term Loan
5.250%, 12/27/19

     2,064,625        2,071,399   

Mitel Networks Corp.
Term Loan
7.000%, 02/27/19

     723,188        725,447   
   

 

 

  
      3,468,471   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Chemicals—4.2%

  

AI Chem & Cy S.C.A.
Term Loan
4.500%, 10/03/19

     425,000      $ 425,531   

Arysta LifeScience Corp.
First Lien Term Loan
4.500%, 05/25/20

     2,250,000        2,242,012   

AZ Chem US, Inc.
Term Loan
5.250%, 12/22/17

     921,316        929,147   

Chemtura Corp.
Term Loan
5.380%, 08/27/16

     1,442,425        1,451,440   

Emerald Performance Materials LLC
Term Loan
6.750%, 05/18/18

     668,251        669,921   

General Chemical Corp.
Term Loan
5.002%, 10/06/15

     287,537        289,424   

Huntsman International LLC
Extended Term Loan
2.731%, 04/19/17

     1,348,302        1,353,720   

Ineos U.S. Finance LLC
Term Loan
4.000%, 05/04/18

     8,103,374        7,970,852   

MacDermid, Inc.
First Lien Term Loan
4.000%, 06/07/20

     750,000        748,594   

Second Lien Term Loan
7.750%, 12/07/20

     500,000        507,500   

Omnova Solutions, Inc.
Term Loan
4.250%, 05/31/18

     1,781,819        1,790,728   

Oxea S.A.R.L.
First Lien Term Loan
0.000%, 11/22/19 (c)

     675,000        672,469   

PQ Corp.
Term Loan
4.500%, 08/07/17

     1,863,635        1,867,275   

Rockwood Specialties Group, Inc.
Term Loan
3.750%, 02/09/18

     1,105,412        1,111,491   

Taminco NV
Term Loan
4.250%, 02/15/19

     370,327        371,947   

Tronox Pigments (Netherlands) B.V.
Term Loan
4.500%, 03/19/20

     4,275,000        4,302,484   

U.S. Coatings Acquisition, Inc.
Term Loan
4.750%, 02/03/20

     5,012,438        5,022,733   

Unifrax Corp.
Term Loan
4.250%, 11/28/18

     277,829        278,246   

Univar, Inc.
Term Loan
5.000%, 06/30/17

     4,977,431        4,880,217   
   

 

 

  
      36,885,731   
   

 

 

  

Coal—1.1%

  

Alpha Natural Resources, Inc.
Term Loan
3.504%, 05/22/20

     2,775,000      $ 2,690,016   

Arch Coal, Inc.
Term Loan
5.750%, 05/16/18

     2,822,811        2,813,109   

Murray Energy Corp.
Term Loan
4.750%, 05/24/19

     375,000        375,469   

Patriot Coal Corp.
Term Loan
9.250%, 10/04/13

     800,000        795,250   

Walter Energy, Inc.
Term Loan
5.750%, 04/02/18

     3,336,381        3,287,263   
   

 

 

  
      9,961,107   
   

 

 

  

Commercial Services—7.0%

  

Allied Security Holdings LLC
First Lien Term Loan
5.250%, 02/03/17

     391,009        393,453   

Altegrity, Inc.
Term Loan
5.000%, 02/21/15

     2,495,849        2,396,015   

7.750%, 02/20/15

     398,549        395,560   

Audio Visual Services Group, Inc.
Term Loan
6.750%, 11/09/18

     1,069,625        1,077,647   

Avis Budget Car Rental LLC
Term Loan
3.000%, 03/15/19

     548,625        547,425   

BakerCorp International, Inc.
Term Loan
4.250%, 02/14/20

     2,269,313        2,259,856   

BAR/BRI Review Courses, Inc.
Term Loan
6.000%, 06/16/17

     588,094        588,094   

Booz Allen Hamilton Inc.
Term Loan
4.500%, 07/31/19

     794,000        790,857   

Brickman Group Holdings, Inc.
Term Loan
4.000%, 10/14/16

     427,751        429,889   

4.000%, 09/28/18

     539,501        539,726   

Catalent Pharma Solutions, Inc.
Term Loan
3.695%, 09/15/16

     2,223,136        2,215,727   

4.250%, 09/15/17

     1,084,810        1,082,098   

ClientLogic Corp.
Extended Term Loan
7.028%, 01/30/17

     2,394,165        2,388,180   

Corporate Executive Board Co. (The)
Term Loan
5.000%, 07/02/19

     497,500        499,055   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Services—(Continued)

  

Genpact International, Inc.
Term Loan
3.500%, 08/30/19

     1,542,250      $ 1,555,745   

Hertz Corp. (The)
Term Loan
3.000%, 03/11/18

     2,541,630        2,533,159   

3.750%, 03/11/18

     1,791,000        1,798,277   

IAP Worldwide Services, Inc.
Term Loan
10.000%, 12/31/15

     1,315,139        789,083   

Interactive Data Corp.
Term Loan
3.750%, 02/11/18

     3,504,504        3,493,553   

ISS Holdings A/S
Term Loan
3.750%, 04/30/18

     450,000        450,774   

John Henry Holdings, Inc.
Term Loan
6.000%, 12/06/18

     597,000        602,224   

KAR Auction Services, Inc.
Term Loan
3.750%, 05/19/17

     2,712,385        2,724,252   

Language Line LLC
Term Loan
6.250%, 06/20/16

     1,982,127        1,966,765   

Laureate Education, Inc.
Extended Term Loan
5.250%, 06/18/18

     6,556,953        6,561,051   

Live Nation Entertainment, Inc.
Term Loan
4.500%, 11/07/16

     2,723,621        2,744,592   

Merrill Communications LLC
First Lien Term Loan
7.250%, 03/08/18

     698,250        701,160   

Monitronics International, Inc.
Term Loan
4.250%, 03/23/18

     1,812,201        1,820,129   

ServiceMaster Co.
Extended Term Loan
4.450%, 01/31/17

     2,910,846        2,891,745   

Term Loan
4.250%, 01/31/17

     1,417,875        1,406,178   

U.S. Security Holdings, Inc.
Term Loan
6.000%, 07/28/17

     688,323        693,915   

Visant Holding Corp.
Term Loan
5.250%, 12/22/16

     1,831,515        1,754,004   

Weight Watchers International, Inc.
Term Loan
3.750%, 04/02/20

     7,175,000        7,145,819   

West Corp.
Term Loan
3.750%, 06/29/18

     5,232,133        5,241,289   
   

 

 

  
      62,477,296   
   

 

 

  

Computers—2.5%

  

Acxiom Corp.
Extended Term Loan
3.250%, 03/15/15

     648,774      $ 650,599   

Attachmate Corp.
First Lien Term Loan
7.272%, 11/22/17

     2,798,125        2,811,117   

Expert Global Solutions, Inc.
Term Loan
8.500%, 04/03/18

     1,862,680        1,888,292   

iPayment, Inc.
Term Loan
5.750%, 05/08/17

     2,575,443        2,549,689   

Mercury Payment Systems Canada LLC
Term Loan
5.500%, 07/03/17

     959,873        973,071   

Moneygram International, Inc.
Term Loan
4.250%, 03/20/20

     423,938        424,467   

Sirius Computer Solutions, Inc.
Term Loan
7.000%, 11/30/18

     525,000        528,609   

SkillSoft Corp.
Term Loan
5.000%, 05/26/17

     729,371        735,753   

SunGard Data Systems, Inc.
Term Loan
3.943%, 02/28/17

     2,360,904        2,366,806   

4.000%, 03/08/20

     6,807,938        6,836,306   

TASC, Inc.
Term Loan
4.500%, 12/18/15

     1,271,743        1,275,718   

TNS, Inc. First Lien
Term Loan
5.000%, 02/14/20

     858,796        862,017   

VeriFone, Inc.
Term Loan
4.250%, 12/28/18

     202,476        202,560   
   

 

 

  
      22,105,004   
   

 

 

  

Construction Materials—0.7%

  

Fairmount Minerals, Ltd.
Term Loan
5.250%, 03/15/17

     3,136,655        3,145,478   

Preferred Sands Holdings Co.
Term Loan
9.000%, 12/15/16

     1,921,984        1,749,006   

Summit Materials I LLC
Term Loan
5.000%, 01/30/19

     445,508        446,251   

Tank Holding Corp.
Term Loan
4.250%, 07/09/19

     932,704        926,875   
   

 

 

  
      6,267,610   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Containers & Packaging—1.1%

  

BWAY Corp.
Term Loan
4.500%, 08/07/17

     2,636,750      $ 2,649,934   

Pact Group Pty Ltd.
Term Loan
3.750%, 05/29/20

     1,500,000        1,494,375   

Reynolds Group Holdings, Inc.
Term Loan
4.750%, 09/28/18

     5,409,125        5,430,534   

Sealed Air Corp.
Term Loan
4.000%, 10/03/18

     515,813        520,787   
   

 

 

  
      10,095,630   
   

 

 

  

Distribution/Wholesale—1.0%

  

American Builders & Contractors Supply Co., Inc.
Term Loan
3.500%, 04/16/20

     1,250,000        1,243,304   

Autoparts Group Holdings, Inc.
First Lien Term Loan
6.500%, 07/28/17

     361,681        357,160   

Michael Foods Group, Inc.
Term Loan
4.250%, 02/23/18

     2,187,501        2,211,198   

VWR Funding, Inc.
Extended Term Loan
4.195%, 04/03/17

     2,213,875        2,208,340   

4.450%, 04/03/17

     3,133,881        3,123,110   
   

 

 

  
      9,143,112   
   

 

 

  

Diversified Consumer Services—0.3%

  

Bright Horizons Family Solutions, Ltd.
Term Loan
4.000%, 01/30/20

     1,496,241        1,503,161   

McGraw-Hill Global Education Holdings LLC
Term Loan
9.000%, 03/22/19

     798,000        788,224   

WASH Multifamily Laundry Systems LLC
Term Loan
5.250%, 02/21/19

     300,000        301,875   
   

 

 

  
      2,593,260   
   

 

 

  

Diversified Financial Services—3.3%

  

Altisource Solutions S.A.R.L.
First Lien Term Loan
5.750%, 11/27/19

     1,219,997        1,227,622   

American Capital Holdings, Inc.
Term Loan
5.500%, 08/22/16

     800,000        802,240   

Citco Funding LLC
Term Loan
4.250%, 05/23/18

     2,458,832        2,452,685   

Clipper Acquisitions Corp.
Term Loan
4.000%, 02/06/20

     1,519,869        1,536,967   

Diversified Financial Services—(Continued)

  

Grosvenor Capital Management Holdings LLP
Extended Term Loan
4.250%, 12/05/16

     1,429,808      $ 1,427,127   

Hamilton Lane Advisors LLC
Term Loan
5.250%, 02/23/18

     642,747        644,354   

Harbourvest Partners LLC
Term Loan
4.750%, 11/21/17

     816,891        823,018   

Home Loan Servicing Solutions, Ltd.
Term Loan
0.000%, 06/19/20 (c)

     1,050,000        1,044,750   

La Frontera Generation LLC
Term Loan
4.500%, 09/30/20

     650,000        647,360   

LPL Holdings, Inc.
Term Loan
2.695%, 03/29/17

     484,375        483,366   

4.000%, 03/29/19

     3,463,819        3,459,489   

MIP Delaware LLC
Term Loan
4.000%, 03/09/20

     757,833        759,728   

Nuveen Investments, Inc.
Term Loan
4.195%, 05/13/17

     6,025,000        6,006,925   

Ocwen Financial Corp.
Term Loan
5.000%, 02/15/18

     1,197,000        1,206,277   

Serta Simmons Holdings LLC
Term Loan
5.000%, 10/01/19

     1,571,063        1,576,954   

Shield Finance Co. S.A.R.L.
Term Loan
6.500%, 05/10/19

     965,250        962,837   

Trans Union LLC
Term Loan
4.250%, 02/10/19

     2,900,921        2,919,052   

Walter Investment Management Corp.
Term Loan
5.750%, 11/28/17

     1,212,872        1,221,059   
   

 

 

  
      29,201,810   
   

 

 

  

Electric—2.0%

  

AES Corp.
Term Loan
3.750%, 06/01/18

     2,544,339        2,555,471   

Calpine Corp.
Term Loan
4.000%, 04/02/18

     4,889,750        4,892,670   

4.000%, 10/09/19

     794,000        793,628   

Covanta Energy Corp.
Term Loan
3.500%, 03/28/19

     395,000        399,691   

Equipower Resources Holdings LLC
Term Loan
0.000%, 12/15/20 (c)

     575,000        572,125   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electric—(Continued)

  

LSP Madison Funding LLC
Term Loan
5.580%, 06/28/19

     579,333      $ 584,402   

NRG Energy, Inc.
Term Loan
2.750%, 07/02/18

     4,067,182        4,035,226   

Raven Power Finance LLC
Term Loan
8.250%, 11/15/18

     497,500        499,987   

Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc.
Extended Term Loan
4.720%, 10/10/17

     5,151,565        3,621,550   
   

 

 

  
      17,954,750   
   

 

 

  

Electrical Components & Equipment—0.2%

  

Pelican Products, Inc.
First Lien Delayed Draw Term Loan
7.000%, 07/11/18

     816,750        819,813   

Tallgrass Operations LLC
Term Loan
5.250%, 11/13/18

     1,142,946        1,153,661   
   

 

 

  
      1,973,474   
   

 

 

  

Electronics—2.8%

  

Aeroflex, Inc.
Term Loan
4.500%, 11/09/19

     1,783,830        1,790,519   

Allflex Holdings, Inc.
First Lien Term Loan
0.000%, 06/11/20 (c)

     625,000        626,302   

CDW LLC
Term Loan
3.500%, 04/29/20

     3,017,438        2,988,835   

CompuCom Systems, Inc.
Term Loan
4.250%, 05/08/20

     1,275,000        1,267,430   

DG FastChannel, Inc.
Term Loan
7.250%, 07/26/18

     1,238,207        1,233,563   

Eagle Parent, Inc.
Term Loan
4.500%, 05/16/18

     2,572,697        2,580,737   

Edwards (Cayman Islands II), Ltd.
Term Loan
4.750%, 03/26/20

     1,769,393        1,767,181   

EIG Investors Corp.
First Lien Term Loan
6.250%, 11/08/19

     1,990,000        2,002,438   

Fender Musical Instruments Corp.
Term Loan
5.750%, 04/03/19

     475,000        477,660   

Generac Power Systems, Inc.
Term Loan
3.500%, 05/29/20

     2,500,000        2,495,313   

Electronics—(Continued)

  

NXP B.V.
Term Loan
4.500%, 03/03/17

     1,955,000      $ 1,987,584   

4.750%, 01/11/20

     895,500        909,306   

Sensata Technologies Finance Co. LLC
Term Loan
3.750%, 05/11/18

     1,735,364        1,754,338   

Sensus USA, Inc.
First Lien Term Loan
4.750%, 05/09/17

     3,103,563        3,100,977   
   

 

 

  
      24,982,183   
   

 

 

  

Engineering & Construction—0.1%

  

Brock Holdings III, Inc.
Term Loan
6.010%, 03/16/17

     815,852        824,010   
   

 

 

  

Entertainment—1.5%

  

Affinity Gaming LLC
Term Loan
5.500%, 11/09/17

     408,465        413,060   

Ameristar Casinos, Inc.
Term Loan
4.000%, 04/16/18

     770,906        773,315   

Dave & Buster’s, Inc.
Term Loan
4.500%, 06/01/16

     582,045        585,683   

Hoyts Group Holdings LLC
First Lien Term Loan
4.000%, 05/22/20

     450,000        450,000   

Penn National Gaming, Inc.
Term Loan
3.750%, 07/16/18

     1,263,928        1,272,021   

Pinnacle Entertainment, Inc.
Incremental Term Loan
4.000%, 03/19/19

     543,125        544,653   

Scientific Games International, Inc.
Term Loan
0.000%, 05/22/20 (c)

     3,550,000        3,512,597   

SeaWorld Parks & Entertainment, Inc.
Term Loan
3.000%, 05/14/20

     3,051,974        3,037,190   

Seminole Hard Rock Entertainment, Inc.
Term Loan
3.500%, 05/15/20

     275,000        275,687   

Seminole Tribe of Florida, Inc.
Term Loan
3.030%, 04/29/20

     650,000        649,594   

Six Flags Theme Parks, Inc.
Term Loan
4.000%, 12/20/18

     2,037,572        2,052,664   
   

 

 

  
      13,566,464   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Environmental Control—1.0%

  

ADS Waste Holdings, Inc.
Term Loan
4.250%, 10/09/19

     5,350,619      $ 5,340,586   

Progressive Waste Solutions, Ltd.
Term Loan
3.500%, 10/24/19

     522,375        524,660   

Tervita Corp.
Term Loan
6.250%, 05/15/18

     2,596,000        2,594,147   
   

 

 

  
      8,459,393   
   

 

 

  

Food—5.6%

  

Advance Pierre Foods, Inc.
Term Loan
5.750%, 07/10/17

     1,271,813        1,281,881   

American Seafoods Group LLC
Term Loan
4.250%, 03/16/18

     427,215        424,545   

ARAMARK Corp.
Extended Term Loan
3.703%, 07/26/16

     314,351        315,765   

3.776%, 07/26/16

     1,987,191        1,997,862   

3.776%, 07/26/16

     2,345,733        2,354,149   

Term Loan
4.000%, 09/09/19

     2,500,000        2,511,250   

Blue Buffalo Co., Ltd.
Term Loan
4.750%, 08/08/19

     1,240,641        1,244,776   

Brasa Holdings, Inc.
First Lien Term Loan
7.500%, 07/19/19

     421,813        428,140   

Centerplate, Inc.
Term Loan
5.750%, 10/15/18

     373,125        373,125   

Clearwater Seafoods, Ltd.
Term Loan
0.000%, 06/24/19 (c)

     450,000        452,438   

Del Monte Foods Co.
Term Loan
4.000%, 03/08/18

     7,019,960        7,006,039   

Dole Food Co., Inc.
Term Loan
3.750%, 04/01/20

     1,720,688        1,716,744   

High Liner Foods, Inc.
Term Loan
4.750%, 12/31/17

     581,799        587,617   

HJ Heinz Co.
Term Loan
3.500%, 06/05/20

     10,275,000        10,287,176   

JBS USA Holdings, Inc.
Term Loan
3.750%, 05/25/18

     5,643,562        5,636,507   

Mill US Acquisition LLC
First Lien Term Loan
0.000%, 05/22/20 (c)

     1,000,000        995,625   

Food—(Continued)

  

NPC International, Inc.
Term Loan
4.500%, 12/28/18

     638,083      $ 645,660   

Pinnacle Foods Finance LLC
Term Loan
3.250%, 04/29/20

     3,690,750        3,676,526   

Supervalu, Inc.
Term Loan
5.000%, 03/21/19

     2,666,480        2,654,259   

US Foods, Inc.
Term Loan
4.500%, 03/29/19

     3,900,000        3,872,700   

Windsor Quality Food Co., Ltd.
Term Loan
5.000%, 02/16/17

     1,114,375        1,117,495   
   

 

 

  
      49,580,279   
   

 

 

  

Food Service—0.4%

  

OSI Restaurant Partners LLC
Term Loan
3.500%, 10/25/19

     2,583,750        2,578,099   

Sagittarius Restaurants LLC
Term Loan
6.250%, 10/01/18

     598,500        601,867   
   

 

 

  
      3,179,966   
   

 

 

  

Hand/Machine Tools—0.1%

  

Apex Tool Group LLC
Term Loan
4.500%, 02/01/20

     698,250        699,704   

Milacron LLC
Term Loan
4.250%, 03/28/20

     399,000        400,244   
   

 

 

  
      1,099,948   
   

 

 

  

Healthcare - Products—3.0%

  

Alere, Inc.
Incremental Term Loan
4.250%, 06/30/17

     444,375        447,263   

Alere, Inc.
Term Loan
4.250%, 06/30/17

     3,224,025        3,241,499   

Bausch & Lomb, Inc.
Term Loan
4.000%, 05/17/19

     2,895,805        2,903,406   

Biomet, Inc.
Extended Term Loan
3.960%, 07/25/17

     5,456,173        5,443,018   

BSN Medical Acquisition Holding GmbH
Term Loan
5.000%, 08/28/19

     550,000        554,583   

CHG Buyer Corp.
First Lien Term Loan
5.000%, 11/22/19

     841,533        847,582   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Healthcare - Products—(Continued)

  

Convatec, Inc.
Term Loan
5.000%, 12/22/16

     3,234,053      $ 3,259,321   

DJO Finance LLC
Term Loan
4.750%, 09/15/17

     2,791,119        2,815,542   

Hologic, Inc.
Term Loan
4.500%, 08/01/19

     1,811,313        1,819,661   

Kinetic Concepts, Inc.
Term Loan
4.500%, 05/04/18

     4,309,594        4,317,674   

MedAssets, Inc.
Term Loan
4.000%, 12/13/19

     487,000        488,218   

Sage Products, Inc.
Term Loan
4.250%, 12/13/19

     528,168        529,048   
   

 

 

  
      26,666,815   
   

 

 

  

Healthcare - Services—7.6%

  

Alliance Healthcare Services, Inc.
Delayed Draw Term Loan
0.500%, 06/03/19 (d)

     228,571        229,286   

Term Loan
4.250%, 06/03/19

     971,429        972,643   

Apria Healthcare Group, Inc.
Term Loan
6.750%, 04/05/20

     575,000        573,562   

Ardent Medical Services, Inc.
Term Loan
6.750%, 07/02/18

     3,013,616        3,029,940   

ATI Holdings LLC
Term Loan
5.750%, 12/20/19

     422,875        425,254   

Community Health Systems, Inc.
Extended Term Loan
3.770%, 01/25/17

     7,452,862        7,471,494   

CRC Health Corp.
Extended Term Loan
4.695%, 11/16/15

     2,067,582        2,072,751   

DaVita, Inc.
Term Loan
4.000%, 11/01/19

     3,009,875        3,020,882   

4.500%, 10/20/16

     1,828,125        1,840,110   

Drumm Investors LLC
Term Loan
5.000%, 05/04/18

     1,263,249        1,215,562   

Emdeon Business Services LLC
Term Loan
3.750%, 11/02/18

     2,438,395        2,432,909   

Emergency Medical Services Corp.
Term Loan
4.000%, 05/25/18

     5,417,379        5,415,445   

Healthcare - Services—(Continued)

  

HCA, Inc.
Extended Term Loan
2.695%, 05/01/16

     887,500      $ 885,651   

2.945%, 05/01/18

     5,056,543        5,042,324   

Term Loan
3.026%, 03/31/17

     5,175,000        5,156,132   

Health Management Associates, Inc.
Term Loan
3.500%, 11/16/18

     3,008,999        3,008,999   

Iasis Healthcare LLC
Term Loan
4.500%, 05/03/18

     1,537,238        1,538,391   

Kindred Healthcare, Inc.
Term Loan
4.250%, 06/01/18

     1,692,107        1,681,532   

LHP Hospital Group, Inc.
Term Loan
9.000%, 07/03/18

     521,063        532,786   

Medpace, Inc.
Term Loan
5.500%, 06/16/17

     580,161        580,887   

MMM Holdings, Inc.
Term Loan
9.750%, 10/09/17

     677,368        684,989   

MSO of Puerto Rico, Inc.
Term Loan
9.750%, 10/26/17

     492,632        498,789   

Multiplan, Inc.
Term Loan
4.000%, 08/25/17

     2,359,114        2,369,645   

MX USA, Inc.
Term Loan
6.500%, 04/28/17

     567,518        570,356   

One Call Medical, Inc.
Term Loan
5.500%, 08/16/19

     870,625        875,703   

Onex Carestream Finance L.P.
First Lien Term Loan
5.000%, 06/07/19

     2,850,000        2,815,267   

Physiotherapy Associates Holdings, Inc.
First Lien Term Loan
8.000%, 04/30/18

     471,559        458,002   

Radnet Management, Inc.
Term Loan
4.260%, 10/10/18

     1,663,437        1,666,556   

Select Medical Corp.
Incremental Term Loan
3.550%, 02/13/16

     746,250        750,914   

Term Loan
4.000%, 06/01/18

     1,254,108        1,261,685   

Sheridan Holdings, Inc.
Term Loan
4.500%, 06/29/18

     619,139        621,461   

Steward Health Care System LLC
Term Loan
6.750%, 04/15/20

     350,000        352,511   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Healthcare - Services—(Continued)

  

TriZetto Group, Inc. (The)
Term Loan
4.750%, 05/02/18

     1,680,601      $ 1,687,744   

Truven Health Analytics, Inc.
Term Loan
4.500%, 06/01/19

     1,612,813        1,608,780   

Universal Health Services, Inc.
Term Loan
2.443%, 11/15/16

     617,698        622,200   

Vanguard Health Holding Co II. LLC
Term Loan
3.750%, 01/29/16

     2,675,313        2,689,359   

WC Luxco S.A.R.L.
Term Loan
4.250%, 03/15/18

     1,021,736        1,024,163   
   

 

 

  
      67,684,664   
   

 

 

  

Home Builders—0.1%

  

Armstrong World Industries, Inc.
Term Loan
3.500%, 03/16/20

     798,000        800,095   
   

 

 

  

Home Furnishings—0.3%

  

Tempur-Pedic International, Inc.
Term Loan
3.500%, 03/18/20

     2,509,245        2,494,189   

Wilton Brands LLC
Term Loan
7.500%, 08/30/18

     601,563        601,187   
   

 

 

  
      3,095,376   
   

 

 

  

Household Products/Wares—0.9%

  

Prestige Brands, Inc.
Term Loan
3.750%, 01/31/19

     320,265        322,334   

Spectrum Brands, Inc.
Term Loan
4.501%, 12/17/19

     3,151,996        3,166,441   

Spin Holdco, Inc.
Term Loan
4.250%, 11/14/19

     1,550,000        1,547,416   

Sun Products Corp. (The)
Term Loan
5.500%, 03/23/20

     2,144,625        2,124,965   

WNA Holdings, Inc.
First Lien Term Loan
0.000%, 05/15/20 (c)

     132,000        131,835   

0.000%, 06/08/20 (c)

     243,000        242,696   
   

 

 

  
      7,535,687   
   

 

 

  

Independent Power Producers & Energy Traders—0.3%

  

Calpine Construction Finance Co.L.P.
Term Loan
3.000%, 05/04/20

     1,025,000        1,016,763   

3.250%, 01/31/22

     400,000        396,850   

Independent Power Producers & Energy Traders—(Continued)

  

Dynegy Holdings, Inc.
Term Loan
4.000%, 04/23/20

     953,846      $ 950,269   
   

 

 

  
      2,363,882   
   

 

 

  

Industrial Conglomerates—0.1%

  

IG Investment Holdings LLC First Lien
Term Loan
6.000%, 10/31/19

     771,125        772,571   
   

 

 

  

Insurance—2.3%

  

Alliant Holdings I, Inc.
Term Loan
5.000%, 12/20/19

     1,940,250        1,945,403   

AmWINS Group, Inc.
Term Loan
5.000%, 09/06/19

     895,500        899,082   

Asurion LLC
Term Loan
4.500%, 05/24/19

     9,005,997        8,944,081   

CNO Financial Group, Inc.
Term Loan
3.000%, 09/28/16

     850,000        856,375   

3.750%, 09/20/18

     1,854,397        1,877,577   

Cooper Gay Swett & Crawford Ltd.
First Lien Term Loan
5.000%, 04/16/20

     475,000        478,958   

Cunningham Lindsey US, Inc.
First Lien Term Loan
5.000%, 12/10/19

     896,061        899,421   

HUB International, Ltd.
Extended Term Loan
3.695%, 06/13/17

     3,665,457        3,672,657   

Sedgwick Claims Management Services, Inc.
First Lien Term Loan
4.250%, 06/12/18

     625,000        626,172   

StoneRiver Holdings, Inc.
First Lien Term Loan
4.500%, 11/20/19

     425,000        422,432   
   

 

 

  
      20,622,158   
   

 

 

  

Internet—2.4%

  

Ascend Learning
Term Loan
7.000%, 05/23/17

     1,880,902        1,875,730   

Getty Images, Inc.
Term Loan
4.750%, 10/18/19

     5,696,375        5,651,516   

Go Daddy Operating Co. LLC
Term Loan
4.250%, 12/17/18

     2,547,076        2,539,914   

Internet Brands, Inc.
Term Loan
6.253%, 03/15/19

     1,920,188        1,928,588   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Internet—(Continued)

  

RP Crown Parent LLC
First Lien Term Loan
6.750%, 12/21/18

     3,559,619      $ 3,577,417   

Sabre, Inc.
Term Loan
5.250%, 02/19/19

     1,169,125        1,177,888   

Softlayer Technologies, Inc.
Term Loan
7.750%, 11/05/16

     721,179        728,391   

SS&C Technologies, Inc.
Term Loan
3.500%, 06/07/19

     1,198,484        1,194,739   

SurveyMonkey.com LLC
Term Loan
5.500%, 02/05/19

     548,625        554,111   

Web.com Group, Inc.
Term Loan
4.500%, 10/27/17

     1,910,883        1,930,788   
   

 

 

  
      21,159,082   
   

 

 

  

Iron/Steel—0.2%

  

Essar Steel Algoma, Inc.
Term Loan
8.750%, 09/19/14

     992,500        1,009,042   

United Distribution Group, Inc.
Term Loan
7.500%, 10/09/18

     1,140,800        1,095,168   
   

 

 

  
      2,104,210   
   

 

 

  

Leisure Time—1.6%

  

Alpha D2 Limited
Term Loan
4.500%, 09/30/19

     2,875,722        2,882,912   

Bombardier Recreational Products, Inc.
Term Loan
4.000%, 01/30/19

     3,149,143        3,150,129   

Cedar Fair, L.P.
Term Loan
3.250%, 03/06/20

     1,197,000        1,203,284   

ClubCorp Operations, Inc.
Term Loan
5.000%, 11/30/16

     2,643,047        2,679,389   

Equinox Holdings, Inc.
Term Loan
4.500%, 01/31/20

     1,172,063        1,172,795   

SRAM LLC
Term Loan
4.011%, 04/10/20

     1,934,153        1,925,691   

Town Sports International, Inc.
Term Loan
5.750%, 05/11/18

     852,477        859,936   
   

 

 

  
      13,874,136   
   

 

 

  

Lodging—0.9%

  

Caesars Entertainment Operating Co., Inc
Extended Term Loan
5.443%, 01/26/18

     3,912,103      $ 3,465,635   

Four Seasons Holdings. Inc.
First Lien Term Loan
0.000%, 06/30/20 (c)

     700,000        702,625   

Las Vegas Sands LLC
Extended Term Loan
2.700%, 11/23/16

     1,525,024        1,523,662   

MGM Resorts International
Term Loan
3.500%, 12/20/19

     2,487,500        2,471,020   
   

 

 

  
      8,162,942   
   

 

 

  

Machinery - Construction & Mining—0.1%

  

Terex Corp.
Term Loan
4.500%, 04/28/17

     503,531        509,196   
   

 

 

  

Machinery - Diversified—0.1%

  

Alliance Laundry Systems LLC
Term Loan
4.500%, 12/07/18

     343,797        345,230   

CPM Acquisition Corp.
First Lien Term Loan
6.250%, 08/29/17

     471,438        472,027   

Manitowoc Co., Inc. (The)
Term Loan
4.250%, 11/13/17

     127,298        127,775   
   

 

 

  
      945,032   
   

 

 

  

Media—7.9%

  

Acosta, Inc.
Term Loan
5.000%, 03/02/18

     4,440,124        4,469,265   

Advanstar Communications, Inc.
First Lien Term Loan
5.500%, 06/06/19

     748,125        744,384   

Advantage Sales & Marketing, Inc.
First Lien Term Loan
4.250%, 12/18/17

     4,548,623        4,559,048   

AMC Entertainment, Inc.
Term Loan
3.500%, 04/30/20

     2,369,063        2,367,878   

Atlantic Broadband Finance LLC
Term Loan
3.250%, 12/02/19

     818,813        821,371   

BBHI Acquisition LLC
Term Loan
4.500%, 12/14/17

     1,231,409        1,237,694   

Bragg Communications, Inc.
Term Loan
3.500%, 02/28/18

     395,000        396,975   

Cequel Communications LLC
Term Loan
3.500%, 02/14/19

     6,097,813        6,070,592   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Media—(Continued)

  

Charter Communications Operating LLC
Term Loan
0.000%, 04/10/20 (c)

     1,325,000      $ 1,315,581   

3.000%, 01/04/21

     2,784,374        2,772,966   

Clear Channel Communications, Inc.
Term Loan
3.845%, 01/29/16

     448,575        411,343   

6.945%, 01/30/19

     1,323,104        1,209,400   

Crossmark Holdings, Inc.
Term Loan
4.500%, 12/20/19

     995,000        993,134   

Crown Media Holdings, Inc.
Term Loan
4.000%, 07/14/18

     886,825        883,766   

CSC Holdings, Inc.
Term Loan
2.695%, 04/17/20

     3,275,000        3,246,344   

Cumulus Media, Inc.
First Lien Term Loan
4.500%, 09/17/18

     4,859,693        4,883,991   

Entercom Radio LLC
Term Loan
5.010%, 11/23/18

     473,733        479,260   

Entravision Communications Corp.
Term Loan
0.500%, 05/29/20 (d)

     700,000        692,125   

Foxco Acquisition Sub LLC
Term Loan
5.500%, 07/14/17

     1,339,879        1,355,511   

Gray Television, Inc.
Term Loan
4.750%, 10/15/19

     481,982        485,898   

Instant Web, Inc.
Delayed Draw Term Loan
3.570%, 08/07/14

     112,358        80,898   

Term Loan
3.570%, 08/07/14

     1,077,849        776,051   

ION Media Networks, Inc.
Term Loan
7.250%, 07/31/18

     1,319,622        1,322,096   

Kabel Deutschland GMBH
Term Loan
3.250%, 02/01/19

     3,025,000        3,023,739   

Kasima LLC
Term Loan
3.250%, 05/14/21

     950,000        939,313   

LIN Television Corp.
Term Loan
4.000%, 12/21/18

     541,755        546,378   

LodgeNet Interactive Corp.
Reinstated Term Loan
6.750%, 03/31/18

     816,438        551,096   

Mediacom LLC
Term Loan
4.500%, 10/23/17

     486,216        486,595   

Media—(Continued)

  

Mission Broadcasting, Inc.
Term Loan
4.250%, 12/03/19

     400,140      $ 403,141   

National CineMedia LLC
Term Loan
2.950%, 11/26/19

     500,000        497,813   

Nexstar Broadcasting, Inc.
Term Loan
4.250%, 12/03/19

     946,485        957,133   

Nielsen Finance LLC
Term Loan
2.943%, 05/02/16

     5,349,100        5,371,834   

Nine Entertainment Group Ltd.
Term Loan
3.500%, 02/05/20

     1,725,000        1,721,407   

Raycom TV Broadcasting, Inc.
Term Loan
4.250%, 05/31/17

     808,500        816,585   

Regal Cinemas, Inc.
Term Loan
2.720%, 08/23/17

     2,510,625        2,514,549   

Rentpath, Inc.
Term Loan
6.250%, 05/29/20

     1,025,000        1,005,781   

Sinclair Television Group, Inc.
Term Loan
3.000%, 04/09/20

     473,813        474,849   

Sterling Entertainment Enterprises LLC
Term Loan
3.200%, 12/28/17 (b)

     750,000        740,400   

Tribune Co.
Term Loan
4.000%, 12/31/19

     1,641,750        1,656,785   

Univision Communications, Inc.
Extended Term Loan
4.500%, 03/02/20

     4,820,770        4,785,477   

Weather Channel
Second Lien Term Loan
7.000%, 12/11/20

     700,000        708,750   

WMG Acquisition Corp.
Delayed Draw Term Loan
0.000%, 07/01/20 (c)

     550,000        546,219   

Term Loan
3.750%, 07/01/20

     450,000        447,938   
   

 

 

  
      69,771,353   
   

 

 

  

Metal Fabricate/Hardware—1.0%

  

Ameriforge Group, Inc.
First Lien Term Loan
6.000%, 12/19/19

     522,375        521,722   

Constellium Holdco B.V.
Term Loan
6.000%, 03/25/20

     498,229        511,930   

Grede Holdings LLC
Term Loan
4.500%, 05/02/18

     948,110        951,665   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Metal Fabricate/Hardware—(Continued)

  

JFB Firth Rixson, Inc.
Term Loan
4.250%, 06/30/17

     298,500      $ 298,251   

JMC Steel Group
Term Loan
4.750%, 04/03/17

     3,460,541        3,453,333   

Rexnord LLC
Term Loan
3.750%, 04/02/18

     2,648,220        2,649,875   

WireCo WorldGroup, Inc.
Term Loan
6.000%, 02/15/17

     620,313        618,762   
   

 

 

  
      9,005,538   
   

 

 

  

Mining—1.6%

  

FMG America Finance, Inc.
Term Loan
5.250%, 10/18/17

     6,778,800        6,751,027   

Neenah Foundry Co.
Term Loan
6.750%, 04/26/17

     475,000        475,000   

Noranda Aluminum Acquisition Corp.
Term Loan
5.750%, 02/28/19

     987,500        967,750   

Novelis, Inc.
Term Loan
3.750%, 03/10/17

     3,825,509        3,843,443   

SunCoke Energy, Inc.
Term Loan
4.000%, 07/26/18

     373,310        372,377   

Waupaca Foundry, Inc.
Term Loan
4.888%, 06/29/17

     1,402,057        1,402,057   
   

 

 

  
      13,811,654   
   

 

 

  

Miscellaneous Manufacturing—0.8%

  

Colfax Corp.
Term Loan
3.250%, 01/11/19

     671,625        672,464   

Husky Injection Molding Systems, Ltd.
Term Loan
4.250%, 06/29/18

     2,711,154        2,714,966   

RGIS Services LLC
Extended Term Loan
4.526%, 10/18/16

     465,280        465,862   

Term Loan
5.500%, 10/18/17

     2,323,100        2,347,755   

TriMas Corp.
Term Loan
3.750%, 10/10/19

     868,438        877,122   
   

 

 

  
      7,078,169   
   

 

 

  

Multi-Utilities—0.0%

  

Power Buyer LLC
Delayed Draw Term Loan
0.500%, 05/06/20 (d)

     33,333        33,000   

Multi-Utilities—(Continued)

  

Power Buyer LLC
First Lien Term Loan
4.250%, 05/06/20

     266,667      $ 264,833   
   

 

 

  
      297,833   
   

 

 

  

Office/Business Equipment—1.0%

  

Brand Energy & Infrastructure Services, Inc.
Term Loan
6.250%, 10/23/18

     818,813        828,706   

Education Management LLC
Term Loan
8.250%, 03/29/18

     1,997,588        1,846,343   

Quintiles Transnational Corp.
Term Loan
4.500%, 06/08/18

     6,194,221        6,210,417   
   

 

 

  
      8,885,466   
   

 

 

  

Oil & Gas—2.2%

  

Citgo Petroleum Corp.
Term Loan
8.000%, 06/24/15

     97,500        98,231   

9.000%, 06/23/17

     1,357,714        1,389,111   

Crestwood Holdings LLC
Term Loan
0.000%, 05/24/19 (c)

     1,950,000        1,967,063   

Emerald Expositions Holdings, Inc.
Term Loan
5.500%, 06/17/20

     750,000        751,406   

Frac Tech International LLC
Term Loan
8.500%, 05/06/16

     994,847        962,869   

MEG Energy Corp.
Term Loan
3.750%, 03/31/20

     8,010,292        7,995,273   

Obsidian Natural Gas Trust
Term Loan
7.000%, 11/02/15

     1,977,512        1,982,455   

Oxbow Carbon and Mineral Holdings LLC
Extended Term Loan
3.695%, 05/08/16

     1,540,665        1,543,554   

Samson Investments Co.
Second Lien Term Loan
6.000%, 09/25/18

     825,000        825,000   

Sheridan Production Partners I LLC
Term Loan
5.000%, 09/14/19

     1,932,945        1,925,696   

5.000%, 09/25/19

     412,577        411,031   
   

 

 

  
      19,851,689   
   

 

 

  

Packaging & Containers—0.6%

  

Berry Plastics Holding Corp.
Term Loan
2.195%, 04/03/15

     3,013,574        3,014,113   

3.500%, 02/07/20

     2,119,688        2,099,089   

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Packaging & Containers—(Continued)

  

TricorBraun, Inc.
Term Loan
4.000%, 05/03/18

     620,313      $ 623,414   
   

 

 

  
      5,736,616   
   

 

 

  

Paper & Forest Products—0.1%

  

Expera Specialty Solutions LLC
Term Loan
0.000%, 12/21/18 (c)

     525,000        521,063   
   

 

 

  

Pharmaceuticals—3.0%

  

Aptalis Pharma, Inc.
Term Loan
5.500%, 02/10/17

     2,255,000        2,259,495   

Auxilium Pharmaceuticals, Inc.
Term Loan
7.250%, 04/15/18

     567,813        565,446   

Grifols, Inc.
Term Loan
4.250%, 06/01/17

     3,057,842        3,077,773   

Par Pharmaceutical Cos., Inc.
Term Loan
4.250%, 09/30/19

     1,141,389        1,136,192   

Pharmaceutical Product Development, Inc.
Term Loan
4.250%, 12/05/18

     1,840,750        1,847,270   

RPI Finance Trust
Incremental Term Loan
4.000%, 11/09/18

     856,946        858,731   

Term Loan
3.500%, 05/09/18

     3,201,079        3,209,082   

Valeant Pharmaceuticals International, Inc.
Term Loan
0.000%, 06/24/20 (c)

     4,775,000        4,772,870   

3.500%, 02/13/19

     1,709,721        1,698,857   

3.500%, 12/11/19

     4,626,750        4,599,281   

Warner Chilcott Co. LLC
Term Loan
3.750%, 03/17/16

     278,000        278,637   

4.250%, 03/15/18

     174,367        174,782   

Warner Chilcott Corp.
Term Loan
4.250%, 03/15/18

     1,861,027        1,865,448   
   

 

 

  
      26,343,864   
   

 

 

  

Pipelines—0.2%

  

Energy Transfer Equity L.P.
Term Loan
3.750%, 03/24/17

     1,147,500        1,153,327   

Ruby Western Pipeline Holdings LLC
Term Loan
3.500%, 03/27/20

     475,000        473,813   
   

 

 

  
      1,627,140   
   

 

 

  

Real Estate—0.3%

  

RE/MAX International, Inc.
Term Loan
5.500%, 04/15/16

     1,684,931      $ 1,697,568   

Realogy Corp.
Extended Term Loan
4.500%, 03/05/20

     498,750        501,555   

Starwood Property Trust, Inc.
Term Loan
3.500%, 04/17/20

     274,313        274,198   
   

 

 

  
      2,473,321   
   

 

 

  

Retail—7.3%

  

99 Cents Only Stores
Term Loan
5.260%, 01/11/19

     1,947,905        1,955,210   

Albertson’s LLC
Term Loan
4.250%, 03/21/16

     422,554        422,686   

4.750%, 03/21/19

     275,696        274,088   

Bass Pro Group LLC
Term Loan
4.000%, 11/20/19

     1,343,890        1,344,864   

Burger King Corp.
Term Loan
3.750%, 09/27/19

     2,679,750        2,694,585   

David’s Bridal, Inc.
Term Loan
5.000%, 10/11/19

     646,750        649,378   

DineEquity, Inc.
Term Loan
3.750%, 10/19/17

     2,624,443        2,632,098   

Dunkin’ Brands Group, Inc.
Term Loan
3.750%, 02/14/20

     6,069,934        6,065,667   

Evergreen Acquisition Co, L.P.
Term Loan
5.000%, 07/09/19

     643,512        650,913   

FTD, Inc.
Term Loan
4.750%, 06/11/18

     1,064,856        1,065,522   

General Nutrition Centers, Inc.
Term Loan
3.750%, 03/02/18

     6,364,961        6,362,307   

Harbor Freight Tools USA, Inc.
Term Loan
6.500%, 11/14/17

     967,688        976,397   

J Crew Group, Inc.
Term Loan
4.000%, 03/07/18

     3,650,500        3,638,333   

Jo-Ann Stores, Inc.
Term Loan
4.000%, 03/16/18

     2,760,964        2,761,828   

Landry’s, Inc.
Term Loan
4.750%, 04/24/18

     2,493,075        2,499,826   

Michaels Stores, Inc.
Term Loan
3.750%, 01/28/20

     2,500,000        2,495,572   

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Retail—(Continued)

  

National Vision, Inc.
Term Loan
7.000%, 08/02/18

     765,313      $ 769,139   

NBTY, Inc.
Term Loan
3.500%, 10/01/17

     8,115,571        8,129,944   

Neiman Marcus Group, Inc. (The)
Extended Term Loan
4.000%, 05/16/18

     4,950,000        4,940,333   

Ollie’s Bargain Outlet, Inc.
Term Loan
5.250%, 09/27/19

     472,626        473,216   

P.F. Chang’s China Bistro, Inc.
Term Loan
5.250%, 07/02/19

     397,000        402,211   

Pantry, Inc.
Term Loan
5.750%, 08/02/19

     421,813        423,394   

Party City Holdings, Inc.
Term Loan
4.250%, 07/29/19

     1,343,250        1,341,991   

Pep Boys-Manny, Moe & Jack (The)
Term Loan
5.000%, 10/11/18

     448,875        451,395   

Petco Animal Supplies, Inc.
Term Loan
4.000%, 11/24/17

     3,719,773        3,725,003   

Pilot Travel Centers LLC
Term Loan
3.750%, 03/30/18

     1,325,615        1,306,725   

4.250%, 08/07/19

     446,625        441,461   

Rite Aid Corp.
Second Lien Term Loan
5.750%, 08/21/20

     450,000        458,719   

Term Loan
4.000%, 02/21/20

     3,740,625        3,743,430   

Wendy’s International, Inc.
Term Loan
3.250%, 05/15/19

     1,316,486        1,315,253   
   

 

 

  
      64,411,488   
   

 

 

  

Semiconductors—0.5%

  

Freescale Semiconductor, Inc.
Term Loan
5.000%, 03/02/20

     2,817,938        2,799,446   

Microsemi Corp.
Term Loan
3.750%, 02/19/20

     1,312,728        1,320,386   

Spansion LLC
Term Loan
5.250%, 12/11/18

     744,231        748,882   
   

 

 

  
      4,868,714   
   

 

 

  

Software—4.5%

  

Applied Systems, Inc.
Incremental First Lien Term Loan
4.250%, 06/08/17

     1,836,365        1,844,974   

Software—(Continued)

  

Aspect Software, Inc.
Term Loan
7.000%, 05/06/16

     2,022,096      $ 2,028,398   

CCC Information Services, Inc.
Term Loan
4.000%, 12/20/19

     423,187        424,245   

Cinedigm Digital Funding I LLC
Term Loan
3.750%, 02/28/18

     1,650,775        1,662,124   

First Data Corp.
Extended Term Loan
4.193%, 03/23/18

     4,023,844        3,930,793   

Term Loan
4.193%, 03/24/17

     500,000        490,875   

4.193%, 09/24/18

     1,850,000        1,806,756   

Hyland Software, Inc.
First Lien Term Loan
5.500%, 10/25/19

     348,250        348,424   

IMS Health, Inc.
Term Loan
3.750%, 09/01/17

     3,201,460        3,205,862   

Infor, Inc.
Term Loan
3.750%, 05/29/20

     450,000        448,538   

5.250%, 04/05/18

     6,716,123        6,766,494   

ION Trading Technologies S.A.R.L
First Lien Term Loan
4.500%, 05/22/20

     625,000        622,917   

Kronos, Inc.
Term Loan
4.500%, 10/30/19

     1,567,125        1,577,899   

Magic Newco LLC
First Lien Term Loan
7.250%, 12/12/18

     1,364,688        1,374,497   

Mitchell International, Inc
First Lien Term Loan
3.813%, 03/28/16

     2,042,025        2,042,876   

Renaissance Learning, Inc.
Term Loan
5.750%, 11/13/18

     570,688        577,108   

Rocket Software, Inc.
Term Loan
5.750%, 02/08/18

     418,628        419,325   

Rovi Solutions Corp.
Term Loan
3.500%, 03/29/19

     748,125        746,255   

SafeNet, Inc.
Term Loan
2.695%, 04/12/14

     355,335        356,150   

Serena Software, Inc.
Extended Term Loan
4.193%, 03/10/16

     1,700,000        1,691,500   

Term Loan
5.000%, 03/10/16

     325,000        323,781   

Sophia L.P.
Term Loan
4.500%, 07/19/18

     1,277,827        1,282,619   

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Software—(Continued)

  

SumTotal Systems LLC
First Lien Term Loan
6.250%, 11/16/18

     1,271,813      $ 1,271,018   

SymphonyIRI Group, Inc.
Term Loan
4.500%, 12/01/17

     1,282,733        1,289,147   

Vertafore, Inc.
First Lien Term Loan
4.250%, 10/02/19

     1,047,375        1,050,430   

Wall Street Systems, Inc.
First Lien Term Loan
5.750%, 10/24/19

     1,967,120        1,972,038   

Websense, Inc.
Term Loan
4.500%, 06/25/20

     800,000        801,000   
   

 

 

  
      40,356,043   
   

 

 

  

Telecommunications—4.6%

  

Arris Group, Inc.
Term Loan
3.500%, 04/17/20

     1,022,438        1,016,899   

Cellular South, Inc.
Term Loan
3.250%, 05/22/20

     374,063        374,063   

CommScope, Inc.
Term Loan
3.750%, 01/12/18

     2,223,813        2,231,458   

Cricket Communications, Inc.
Term Loan
4.750%, 10/10/19

     472,625        470,262   

4.750%, 03/09/20

     3,050,000        3,027,759   

Crown Castle International Corp.
Term Loan
3.250%, 01/31/19

     1,773,056        1,771,209   

Genesys Telecom Holdings U.S., Inc.
Term Loan
4.000%, 02/07/20

     547,500        548,527   

Intelsat Jackson Holdings, Ltd.
Term Loan
4.250%, 04/02/18

     9,828,088        9,861,877   

MCC Iowa LLC
Term Loan
1.920%, 01/30/15

     1,178,195        1,177,458   

3.250%, 01/29/21

     950,000        944,057   

SBA Finance LLC
Term Loan
3.750%, 06/29/18

     315,926        316,913   

3.750%, 09/27/19

     155,792        156,182   

Syniverse Holdings, Inc.
Delayed Draw Term Loan
4.000%, 04/23/19

     1,200,000        1,199,500   

Term Loan
5.000%, 04/23/19

     1,806,750        1,815,220   

Telesat Canada / Telesat LLC
Term Loan
3.500%, 03/28/19

     3,687,820        3,693,584   

Telecommunications—(Continued)

  

UPC Financing Partnership
Term Loan
3.250%, 06/30/21

     4,028,489      $ 4,014,643   

4.000%, 01/29/21

     775,000        776,937   

Virgin Media Investment Holdings, Ltd.
Term Loan
3.500%, 06/05/20

     5,975,000        5,928,323   

WaveDivision Holdings LLC
Term Loan
4.000%, 10/15/19

     298,500        298,002   

Windstream Corp.
Term Loan
4.000%, 08/08/19

     891,000        894,258   
   

 

 

  
      40,517,131   
   

 

 

  

Transportation—0.2%

  

Atlantic Aviation FBO, Inc.
Term Loan
3.250%, 05/20/20

     425,000        424,734   

Swift Transportation Co., Inc.
Term Loan
4.000%, 12/21/17

     1,170,994        1,180,691   
   

 

 

  
      1,605,425   
   

 

 

  

Total Floating Rate Loans
(Cost $869,789,878)

       867,930,942   
   

 

 

  
Corporate Bonds & Notes—0.0%   

Aerospace/Defense—0.0%

  

Erickson Air-Crane, Inc.
6.000%, 11/02/20 (b)
(Cost $55,460)

     71,875        55,099   
   

 

 

  
Short-Term Investment—4.2%   

Repurchase Agreement—4.2%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $37,107,031 on 07/01/13, collateralized by $38,575,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $37,851,719.

     37,107,000        37,107,000   
   

 

 

  

Total Short-Term Investment
(Cost $37,107,000)

       37,107,000   
   

 

 

  

Total Investments—102.0%
(Cost $906,952,338) (e)

       905,093,041   

Unfunded Loan Commitments—(0.1)%
(Cost $(961,904))

       (961,904 ) 

Net Investments—101.9%
(Cost $905,990,434)

       904,131,137   

Other assets and liabilities
(net)—(1.9)%

       (17,035,050 ) 
   

 

 

  
Net Assets—100.0%     $ 887,096,087   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Floating rate loans (Senior Loans) often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, Senior Loans will have an expected average life of approximately two to four years. The stated interest rate represents the weighted average interest rate of all contracts within the senior loan facility and includes commitment fees on unfunded loan commitments, if any. Senior Loans typically have rates of interest which are determined either daily, monthly, quarterly or semi-annually by reference to a base lending rate, plus a premium. These base rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily, the prime rate offered by one or more major United States banks (the “Prime Rate”) and the certificate of deposit (“CD”) rate or other base lending rates used by commercial lenders.
(b) Security was valued in good faith under procedures approved by the Board of Trustees. As of June 30, 2013, these securities represent 0.1% of net assets.
(c) This loan will settle after June 30, 2013, at which time the interest rate will be determined.
(d) Unfunded or partially unfunded loan commitments. The Portfolio may enter into certain credit agreements for which all or a portion may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion.
(e) As of June 30, 2013, the aggregate cost of investments was $905,990,434. The aggregate unrealized appreciation and depreciation of investments were $3,506,391 and $(5,365,688), respectively, resulting in net unrealized depreciation of $(1,859,297).

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Floating Rate Loans            

Advertising

    $ —         $ 5,166,267       $ —         $ 5,166,267   

Aerospace/Defense

      —           17,860,730         80,899         17,941,629   

Apparel

      —           411,679         —           411,679   

Auto Manufacturers

      —           6,800,601         —           6,800,601   

Auto Parts & Equipment

      —           29,165,159         —           29,165,159   

Beverages

      —           797,900         —           797,900   

Biotechnology

      —           369,856         —           369,856   

Capital Markets

      —           3,468,471         —           3,468,471   

Chemicals

      —           36,885,731         —           36,885,731   

Coal

      —           9,961,107         —           9,961,107   

Commercial Services

      —           62,477,296         —           62,477,296   

Computers

      —           22,105,004         —           22,105,004   

Construction Materials

      —           6,267,610         —           6,267,610   

Containers & Packaging

      —           10,095,630         —           10,095,630   

Distribution/Wholesale

      —           9,143,112         —           9,143,112   

Diversified Consumer Services

      —           2,593,260         —           2,593,260   

Diversified Financial Services

      —           29,201,810         —           29,201,810   

Electric

      —           17,954,750         —           17,954,750   

Electrical Components & Equipment

      —           1,973,474         —           1,973,474   

Electronics

      —           24,982,183         —           24,982,183   

Engineering & Construction

      —           824,010         —           824,010   

Entertainment

      —           13,566,464         —           13,566,464   

Environmental Control

      —           8,459,393         —           8,459,393   

Food

      —           49,580,279         —           49,580,279   

Food Service

      —           3,179,966         —           3,179,966   

Hand/Machine Tools

      —           1,099,948         —           1,099,948   

Healthcare - Products

      —           26,666,815         —           26,666,815   

Healthcare - Services

      —           67,684,664         —           67,684,664   

Home Builders

      —           800,095         —           800,095   

Home Furnishings

      —           3,095,376         —           3,095,376   

Household Products/Wares

      —           7,535,687         —           7,535,687   

Independent Power Producers & Energy Traders

      —           2,363,882         —           2,363,882   

Industrial Conglomerates

      —           772,571         —           772,571   

Insurance

      —           20,622,158         —           20,622,158   

Internet

      —           21,159,082         —           21,159,082   

Iron/Steel

      —           2,104,210         —           2,104,210   

Leisure Time

      —           13,874,136         —           13,874,136   

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2      Level 3      Total  

Lodging

    $ —         $ 8,162,942       $ —         $ 8,162,942   

Machinery - Construction & Mining

      —           509,196         —           509,196   

Machinery - Diversified

      —           945,032         —           945,032   

Media

      —           69,030,953         740,400         69,771,353   

Metal Fabricate/Hardware

      —           9,005,538         —           9,005,538   

Mining

      —           13,811,654         —           13,811,654   

Miscellaneous Manufacturing

      —           7,078,169         —           7,078,169   

Multi-Utilities

      —           297,833         —           297,833   

Office/Business Equipment

      —           8,885,466         —           8,885,466   

Oil & Gas

      —           19,851,689         —           19,851,689   

Packaging & Containers

      —           5,736,616         —           5,736,616   

Paper & Forest Products

      —           521,063         —           521,063   

Pharmaceuticals

      —           26,343,864         —           26,343,864   

Pipelines

      —           1,627,140         —           1,627,140   

Real Estate

      —           2,473,321         —           2,473,321   

Retail

      —           64,411,488         —           64,411,488   

Semiconductors

      —           4,868,714         —           4,868,714   

Software

      —           40,356,043         —           40,356,043   

Telecommunications

      —           40,517,131         —           40,517,131   

Transportation

      —           1,605,425         —           1,605,425   

Total Floating Rate Loans

      —           867,109,643         821,299         867,930,942   

Total Corporate Bonds & Notes*

      —           —           55,099         55,099   

Total Short-Term Investment*

      —           37,107,000         —           37,107,000   

Total Investments

    $ —         $ 904,216,643       $ 876,398       $ 905,093,041   
                                     

 

* See Schedule of Investments for additional detailed categorizations.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

 

Investments in Securities

   Balance as of
December 31,
2012		     Change in
Unrealized
Appreciation/
(Depreciation)		     Accrued
Discount/
(Premium)		     Realized
Gain		     Purchases     Sales     Balance as of
June 30,
2013		     Change in Unrealized
Appreciation/
(Depreciation) from
Investments still Held at
June 30, 2013		  
Floating Rate Loans                

Aerospace/Defense

   $ —      $ (1,514 )    $ 1,599      $ 1,972      $ 89,125      $ (10,283 ) (a)    $ 80,899      $ (1,514 ) 

Media

     —        5,166        234        —        735,000        —        740,400        5,166   
Corporate Bonds & Notes                

Aerospace/Defense

     —        (361 )      361        —        55,099        —        55,099        (361 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ —      $ 3,291      $ 2,194      $ 1,972      $ 879,224      $ (10,283 )    $ 876,398      $ 3,291   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Sales include principal reductions.

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 904,131,137   

Cash

      4,500,655   

Receivable for:

   

Investments sold

      7,443,297   

Fund shares sold

      565,001   

Interest

      5,874,116   
  

 

 

  

Total Assets

      922,514,206   

Liabilities

   

Payables for:

   

Investments purchased

      34,615,512   

Fund shares redeemed

      117,185   

Accrued expenses:

   

Management fees

      440,343   

Distribution and service fees

      16,947   

Deferred trustees’ fees

      30,432   

Other expenses

      197,700   
  

 

 

  

Total Liabilities

      35,418,119   
  

 

 

  

Net Assets

    $ 887,096,087   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 866,862,896   

Undistributed net investment income

      18,015,544   

Accumulated net realized gain

      4,076,944   

Unrealized depreciation on investments

      (1,859,297 ) 
  

 

 

  

Net Assets

    $ 887,096,087   
  

 

 

  

Net Assets

   

Class A

    $ 802,945,423   

Class B

      84,150,664   

Capital Shares Outstanding*

   

Class A

      77,228,740   

Class B

      8,127,384   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.40   

Class B

      10.35   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $905,990,434.
(b) Investments at value includes unfunded loan commitments of $961,904.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Interest

    $ 21,125,473   
  

 

 

  

Total investment income

      21,125,473   

Expenses

   

Management fees

      2,584,924   

Administration fees

      10,861   

Custodian and accounting fees

      171,134   

Distribution and service fees—Class B

      95,153   

Audit and tax services

      54,585   

Legal

      9,657   

Trustees’ fees and expenses

      13,448   

Shareholder reporting

      20,459   

Insurance

      2,602   

Miscellaneous

      4,850   
  

 

 

  

Total expenses

      2,967,673   
  

 

 

  

Net Investment Income

      18,157,800   
  

 

 

  

Net Realized and Unrealized Gain

   

Net realized gain on investments

      4,173,712   
  

 

 

  

Net change in unrealized depreciation on investments

      (7,404,150 ) 
  

 

 

  

Net realized and unrealized loss

      (3,230,438 ) 
  

 

 

  

Net Increase in Net Assets From Operations

    $ 14,927,362   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 18,157,800      $ 35,548,921   

Net realized gain

      4,173,712        3,957,301   

Net change in unrealized appreciation (depreciation)

      (7,404,150 )      18,805,885   
  

 

 

    

 

 

  

Increase in net assets from operations

      14,927,362        58,312,107   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (32,615,338 )      (26,402,311 ) 

Class B

      (3,061,308 )      (2,179,825 ) 

Net realized capital gains

     

Class A

      (3,689,518 )      (2,120,418 ) 

Class B

      (364,441 )      (185,019 ) 
  

 

 

    

 

 

  

Total distributions

      (39,730,605 )      (30,887,573 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      80,595,203        41,207,562   
  

 

 

    

 

 

  

Total Increase in Net Assets

      55,791,960        68,632,096   

Net Assets

     

Beginning of period

      831,304,127        762,672,031   
  

 

 

    

 

 

  

End of period

    $ 887,096,087      $ 831,304,127   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 18,015,544      $ 35,534,390   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      3,551,386      $ 38,372,566        4,022,565      $ 42,194,239   

Reinvestments

      3,480,811        36,304,856        2,774,585        28,522,728   

Redemptions

      (857,137 )      (9,051,068 )      (4,065,448 )      (42,374,721 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      6,175,060      $ 65,626,354        2,731,702      $ 28,342,246   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      2,181,077      $ 23,034,132        2,733,292      $ 28,587,355   

Reinvestments

      329,716        3,425,749        230,716        2,364,845   

Redemptions

      (1,092,990 )      (11,491,032 )      (1,736,754 )      (18,086,884 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      1,417,803      $ 14,968,849        1,227,254      $ 12,865,316   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 80,595,203        $ 41,207,562   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Financial Highlights

 

Selected per share data                           
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010(a)  

Net Asset Value, Beginning of Period

    $ 10.69      $ 10.34       $ 10.34       $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (b)

      0.23        0.46         0.42         0.25   

Net realized and unrealized gain (loss) on investments

      (0.03 )      0.30         (0.18 )       0.09   
  

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.20        0.76         0.24         0.34   
  

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.44 )      (0.38 )       (0.21 )       0.00   

Distributions from net realized capital gains

      (0.05 )      (0.03 )       (0.03 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.49 )      (0.41 )       (0.24 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.40      $ 10.69       $ 10.34       $ 10.34   
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      1.88  (d)      7.51         2.33         3.40 (d) 

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      0.67  (e)      0.68         0.68         0.69 (e) 

Net ratio of expenses to average net assets (%)

      0.67  (e)      0.68         0.68         0.69 (e) 

Ratio of net investment income to average net assets (%)

      4.26  (e)      4.42         4.10         3.71 (e) 

Portfolio turnover rate (%)

      25  (d)      42         40         31 (d) 

Net assets, end of period (in millions)

    $ 802.9      $ 759.9       $ 706.2       $ 536.1   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010(a)  

Net Asset Value, Beginning of Period

    $ 10.64      $ 10.29       $ 10.32       $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (b)

      0.21        0.44         0.40         0.25   

Net realized and unrealized gain (loss) on investments

      (0.03 )      0.30         (0.19 )       0.07   
  

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.18        0.74         0.21         0.32   
  

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.42 )      (0.36 )       (0.21 )       0.00   

Distributions from net realized capital gains

      (0.05 )      (0.03 )       (0.03 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.47 )      (0.39 )       (0.24 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.35      $ 10.64       $ 10.29       $ 10.32   
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      1.67  (d)      7.33         2.01         3.20 (d) 

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      0.92  (e)      0.93         0.93         0.94 (e) 

Net ratio of expenses to average net assets (%)

      0.92  (e)      0.93         0.93         0.94 (e) 

Ratio of net investment income to average net assets (%)

      4.01  (e)      4.18         3.86         3.73 (e) 

Portfolio turnover rate (%)

      25  (d)      42         40         31 (d) 

Net assets, end of period (in millions)

    $ 84.2      $ 71.4       $ 56.4       $ 20.2   

 

(a) Commencement of operations was April 30, 2010.
(b) Per share amounts based on average shares outstanding during the period.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) Computed on an annualized basis.

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Met/Eaton Vance Floating Rate Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-24

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. The Portfolio had no permanent book-tax differences at December 31, 2012.

 

MIST-25

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $37,107,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations or an assignment, the Portfolio generally will have no right to enforce compliance by the borrower, with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower and the Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment.

Unfunded Loan Commitments - The Portfolio may enter into certain credit agreements all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion. These commitments, if any, are disclosed in the Schedule of Investments. As of June 30, 2013, the Portfolio had open unfunded loan commitments of $961,904.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 286,023,339       $ 0       $ 208,480,877   

 

MIST-26

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Eaton Vance Management (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$2,584,924      0.625 %    First $100 million
     0.600 %    Over $100 million

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The tax character of distributions paid for the period ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$30,069,012    $ 14,085,195       $ 818,561       $ —       $ 30,887,573       $ 14,085,195   

 

MIST-27

Met Investors Series Trust

Met/Eaton Vance Floating Rate Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$36,977,020    $ 2,541,993       $ 5,542,478       $ —       $ 45,061,491   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-28

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Managed by Franklin Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the Met/Franklin Low Duration Total Return Portfolio returned 0.02% and -0.05%, respectively. The Portfolio’s benchmark, the Barclays U.S. Government/Credit 1-3 Year Bond Index1, returned 0.07%.

MARKET ENVIRONMENT / CONDITIONS

The United States (U.S.) economy, as measured by gross domestic product, grew slowly during the six months ended June 30, 2013. Lackluster consumer spending and declines in exports and commercial real estate hindered first-quarter growth. Large cuts in federal and local government spending, volatile energy prices, business disruptions caused by Hurricane Sandy and the continuing effects of extreme weather conditions on farm production also hurt the economy during the period. However, generally positive labor market, manufacturing, and home sales and construction trends suggested the U.S. economic recovery remained largely intact. Consumer sentiment rose to a five-year high, although potential U.S. tax hikes and spending cuts that took effect in 2013 contributed to fluctuations in consumer and business confidence.

In December 2012, the Federal Reserve Board (“Fed”) announced a 6.5% unemployment target as a guide to maintaining the historically low federal funds target rate. In 2013, the Fed agreed to continue purchases of mortgage-backed securities and long-term Treasuries at a monthly pace of $85 billion. Although inflation rose slightly during the reporting period, the Fed noted little evidence of wage pressures. On January 1, 2013, Congress agreed to a budget bill that maintained some tax cuts for most Americans but increased rates on the wealthiest. Congress, however, was unable to resolve differences related to a series of automatic federal spending cuts known as the “sequester.” The cuts will reduce funding for domestic and defense programs by $85 billion in the current U.S. fiscal year. In May 2013, the Fed stated it could begin slowing its monthly quantitative easing purchases in 2013 if economic conditions improved and terminate the program in mid-2014 if the unemployment rate fell to 7%. Anticipating an interest rate rise, many investors abruptly sold their fixed income instruments, and the 10-year U.S. Treasury yield rose to 2.52% at period-end from 1.78% on December 31, 2012.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Financial markets ended the period in a volatile fashion as uncertainty regarding domestic monetary policy drove volatility measures higher. Although High Yield and Corporate Loans outperformed U.S. Treasuries, most spread sectors generally underperformed U.S. Treasuries over the period. Below-Investment Grade Corporate Credit produced strong returns over the period, so our relatively overweighted exposure to Floating Rate Corporate Loan Debt benefited results. Yield accrual and yield curve movements in non-U.S. markets benefited many of our positions in Non-U.S. Dollar Denominated Bonds, while Foreign Currencies detracted from performance. The Portfolio’s exposure to Commercial Mortgage-Backed Securities (CMBS) contributed to results and our security selection within the sector provided a strong boost to performance. Our allocation to Non-Agency Residential Mortgage-Backed Securities (MBS) also benefited the Portfolio as the sector delivered positive performance. U.S. yield curve movements also supported results as we had a slightly short duration position.

At period end we remained slightly overweight in many of the credit sectors, including Corporate Credit and securitized products, based on our belief that valuations remained relatively attractive on a longer term basis. We increased allocations across Corporate Credit sectors, including High Yield securities, Investment Grade Corporate Debt and the Corporate Loan sector. We reduced exposure to Agency MBS and Treasury Inflation Protected Securities while we increased our allocation to CMBS as we found what we considered to be attractive valuations in those sectors. We remained convinced that many of the best opportunities in global bond markets were outside of the U.S., and we maintained strong exposure to International Bonds and Currencies.

 

MIST-1

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Managed by Franklin Advisers, Inc.

Portfolio Manager Commentary*—(Continued)

 

The Portfolio utilized derivatives such as currency forwards and options, principally as a tool for efficient portfolio management and to manage overall portfolio risk. These derivative transactions may provide the same, or similar, net long or short exposure to select currencies in a less expensive way than by directly purchasing securities. In those markets where portfolio securities are readily available, the cost difference in normal market conditions may be small.

Roger A. Bayston

Kent Burns

Christopher J. Molumphy

Portfolio Managers

Franklin Advisers, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

 


A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. GOVT/CREDIT 1-3 YEAR BOND INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
Met/Franklin Low Duration Total Return Portfolio                 

Class A

        0.02           2.34           1.57   

Class B

        -0.05           2.08           1.32   
Barclays U.S. Govt/Credit 1-3 Year Bond Index        0.07           0.74           1.04   

1 The Barclays U.S. Govt/Credit 1-3 Year Bond Index measures performance of U.S. Dollar-denominated U.S. Treasuries, government-related, and investment grade U.S. Corporate securities that have maturities ranging from one to three years.

2 Inception of the Class A and B shares is 4/29/2011. Index returns are based on an inception date of 4/29/2011.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

         
% of
Net Assets		  
U.S. Treasury Notes      22.2   
Fannie Mae ARM Pool      3.5   
Nykredit Realkredit AS      1.6   
Fannie Mae 15 Yr. Pool      1.4   
Freddie Mac ARM Non-Gold Pool      1.4   
U.S. Treasury Inflation Indexed Notes      1.3   
Korea Treasury Bonds      1.3   
Morgan Stanley      1.3   
Freddie Mac Multifamily Structured Pass-Through Certificates      1.1   
Bear Stearns Commercial Mortgage Securities, Inc.      1.0   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Corporate Bonds & Notes      37.2   
U.S. Treasury & Government Agencies      33.9   
Mortgage-Backed Securities      9.7   
Foreign Government      6.8   
Floating Rate Loans      6.7   
Asset-Backed Securities      3.9   
Municipals      1.8   
Purchased Options      0.0   
Common Stocks      0.0   

 

MIST-3

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Met/Franklin Low Duration Total Return Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

      Actual      0.52 %     $ 1,000.00         $ 1,000.20         $ 2.58   
     Hypothetical*      0.52 %     $ 1,000.00         $ 1,022.22         $ 2.61   

Class B(a)

      Actual      0.77 %     $ 1,000.00         $ 999.50         $ 3.82   
     Hypothetical*      0.77 %     $ 1,000.00         $ 1,020.98         $ 3.86   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—34.4% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Advertising—0.1%

  

inVentiv Health, Inc.
9.000%, 01/15/18 (144A)

     600,000      $ 627,000   
   

 

 

  

Aerospace/Defense—0.1%

  

Boeing Co. (The)
0.950%, 05/15/18

     1,500,000        1,435,224   
   

 

 

  

Agriculture—0.5%

  

Lorillard Tobacco Co.
3.500%, 08/04/16

     3,800,000        3,972,710   

Reynolds American, Inc.
1.050%, 10/30/15

     1,000,000        999,719   
   

 

 

  
      4,972,429   
   

 

 

  

Auto Manufacturers—0.4%

  

Daimler Finance North America LLC
1.950%, 03/28/14 (144A)

     4,200,000        4,225,389   
   

 

 

  

Banks—11.7%

  

AIB Mortgage Bank

    

2.625%, 07/28/17 (EUR)

     3,000,000        3,939,546   

4.875%, 06/29/17 (EUR)

     3,050,000        4,271,690   

Ally Financial, Inc.

    

4.500%, 02/11/14

     1,000,000        1,008,500   

5.500%, 02/15/17

     500,000        522,405   

Banco Bradesco S.A. of the Cayman Islands
2.374%, 05/16/14 (144A) (a)

     4,200,000        4,239,077   

Bank of America Corp.
1.828%, 07/11/14 (a)

     6,000,000        6,064,044   

Bank of Ireland Mortgage Bank
3.250%, 06/22/16 (EUR)

     2,500,000        3,334,240   

Bank of Montreal
0.800%, 11/06/15

     3,000,000        2,996,376   

BB&T Corp.
2.050%, 06/19/18

     1,000,000        985,440   

BBVA U.S. Senior SAU
2.399%, 05/16/14 (a)

     4,200,000        4,222,642   

CIT Group, Inc.

    

4.250%, 08/15/17

     700,000        703,500   

5.000%, 05/15/17

     400,000        408,500   

5.250%, 03/15/18

     500,000        513,750   

Commonwealth Bank of Australia
3.750%, 10/15/14 (144A)

     4,200,000        4,362,540   

Credit Suisse of New York
2.200%, 01/14/14

     4,200,000        4,236,368   

Goldman Sachs Group, Inc. (The)
3.300%, 05/03/15

     4,200,000        4,329,037   

5.125%, 10/16/14 (EUR)

     3,000,000        4,109,216   

HSBC Bank Brasil S.A. - Banco Multiplo
4.000%, 05/11/16 (144A)

     4,200,000        4,305,000   

JPMorgan Chase & Co.

    

4.375%, 01/30/14 (EUR)

     4,900,000        6,523,477   

6.125%, 04/01/14 (EUR)

     1,500,000        2,034,392   

Morgan Stanley

    

1.556%, 04/25/18 (a)

     4,000,000        3,923,080   

6.000%, 05/13/14

     10,000,000        10,400,500   

Banks—(Continued)

    

Nordea Bank AB
2.125%, 01/14/14 (144A)

     4,200,000      $ 4,237,750   

Nykredit Realkredit AS

    

2.000%, 10/01/13 (DKK)

     30,000,000        5,257,987   

2.000%, 04/01/14 (DKK)

     45,000,000        7,950,223   

2.000%, 01/01/16 (DKK)

     18,000,000        3,239,566   

4.000%, 01/01/16 (DKK)

     9,000,000        1,697,012   

PNC Funding Corp.
2.700%, 09/19/16

     1,300,000        1,352,985   

Realkredit Danmark AS
4.000%, 01/01/16 (DKK)

     9,000,000        1,696,375   

Royal Bank of Canada
0.644%, 03/08/16 (a)

     3,000,000        3,004,815   

Royal Bank of Scotland plc (The)
4.875%, 08/25/14 (144A)

     4,200,000        4,346,076   

6.934%, 04/09/18 (EUR)

     1,500,000        2,040,336   

Santander US Debt S.A. Unipersonal
2.991%, 10/07/13 (144A)

     4,200,000        4,223,948   

U.S. Bancorp
1.375%, 09/13/13

     4,200,000        4,205,048   

U.S. Bank N.A.
3.778%, 04/29/20 (a)

     1,000,000        1,047,216   

UBS AG
2.250%, 01/28/14

     2,441,000        2,464,487   

Wachovia Corp.

    

0.616%, 10/28/15 (a)

     1,032,000        1,019,968   

0.647%, 10/15/16 (a)

     5,143,000        5,050,467   
   

 

 

  
      130,267,579   
   

 

 

  

Beverages—0.8%

  

Constellation Brands, Inc.
7.250%, 09/01/16

     2,000,000        2,272,500   

7.250%, 05/15/17

     2,000,000        2,275,000   

Heineken NV
0.800%, 10/01/15 (144A)

     4,000,000        3,979,440   
   

 

 

  
      8,526,940   
   

 

 

  

Biotechnology—0.2%

  

Gilead Sciences, Inc.
2.400%, 12/01/14

     1,000,000        1,022,230   

3.050%, 12/01/16

     1,000,000        1,057,020   
   

 

 

  
      2,079,250   
   

 

 

  

Chemicals—0.1%

  

INEOS Group Holdings S.A.
6.500%, 08/15/18 (144A) (EUR)

     800,000        996,064   
   

 

 

  

Coal—0.2%

  

Peabody Energy Corp.
7.375%, 11/01/16

     1,500,000        1,665,000   
   

 

 

  

Commercial Services—0.4%

  

Block Financial LLC
5.125%, 10/30/14

     4,200,000        4,401,629   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Computers—1.0%

    

Apple, Inc.
0.523%, 05/03/18 (a)

     7,000,000      $ 6,969,998   

Hewlett-Packard Co.
1.823%, 09/19/14 (a)

     4,200,000        4,240,371   
   

 

 

  
      11,210,369   
   

 

 

  

Construction Materials—0.1%

  

Cemex Finance LLC
9.500%, 12/14/16 (144A)

     1,200,000        1,269,000   

Euramax International, Inc.
9.500%, 04/01/16

     300,000        287,250   
   

 

 

  
      1,556,250   
   

 

 

  

Diversified Financial Services—2.7%

  

American Honda Finance Corp.
1.600%, 02/16/18 (144A)

     3,500,000        3,441,137   

Banque PSA Finance S.A.
3.375%, 04/04/14 (144A)

     4,100,000        4,116,154   

CNH Capital LLC
3.875%, 11/01/15

     700,000        703,500   

Ford Motor Credit Co. LLC
2.375%, 01/16/18

     2,000,000        1,925,694   

7.000%, 04/15/15

     2,000,000        2,168,222   

GE Capital European Funding
2.000%, 02/27/15 (EUR)

     3,000,000        3,982,829   

4.625%, 07/04/14 (EUR)

     3,000,000        4,062,544   

Hyundai Capital America
4.000%, 06/08/17 (144A)

     300,000        310,784   

John Deere Capital Corp.
0.380%, 10/08/14 (a)

     4,000,000        4,003,092   

Merrill Lynch & Co., Inc.
5.450%, 07/15/14

     4,000,000        4,171,416   

Nuveen Investments, Inc.
9.125%, 10/15/17 (144A)

     1,500,000        1,503,750   

SLM Corp.
8.450%, 06/15/18

     100,000        111,000   
   

 

 

  
      30,500,122   
   

 

 

  

Electric—1.1%

  

Duke Energy Corp.
2.100%, 06/15/18

     800,000        795,048   

GDF Suez
1.625%, 10/10/17 (144A)

     1,000,000        984,820   

Georgia Power Co.
0.625%, 11/15/15

     1,000,000        991,431   

Korea Hydro & Nuclear Power Co., Ltd.
6.250%, 06/17/14 (144A)

     4,300,000        4,486,628   

Korea Western Power Co., Ltd.
3.125%, 05/10/17 (144A)

     2,100,000        2,097,100   

State Grid Overseas Investment 2013, Ltd.
1.750%, 05/22/18 (144A)

     2,000,000        1,916,868   

Virginia Electric and Power Co.
1.200%, 01/15/18

     900,000        872,274   
   

 

 

  
      12,144,169   
   

 

 

  

Food—0.8%

  

Dean Foods Co.
7.000%, 06/01/16

     2,000,000      $ 2,175,000   

Kraft Foods Group, Inc.
1.625%, 06/04/15

     3,000,000        3,031,989   

2.250%, 06/05/17

     2,000,000        2,014,034   

Safeway, Inc.
3.400%, 12/01/16

     600,000        625,453   

TESCO plc
2.000%, 12/05/14 (144A)

     1,000,000        1,012,774   
   

 

 

  
      8,859,250   
   

 

 

  

Gas—0.4%

    

Sempra Energy
2.000%, 03/15/14

     4,200,000        4,235,771   
   

 

 

  

Health Care Providers & Services—0.1%

  

  

Aetna, Inc.
1.500%, 11/15/17

     1,000,000        970,891   
   

 

 

  

Healthcare-Products—0.3%

    

Baxter International, Inc.
1.850%, 06/15/18

     3,000,000        2,975,703   

3.200%, 06/15/23

     500,000        490,439   
   

 

 

  
      3,466,142   
   

 

 

  

Healthcare-Services—0.1%

    

Laboratory Corp. of America Holdings
2.200%, 08/23/17

     1,000,000        992,829   
   

 

 

  

Holding Companies-Diversified—0.2%

    

Hutchison Whampoa International 09/16, Ltd.
4.625%, 09/11/15 (144A)

     2,000,000        2,132,166   

Hutchison Whampoa International 11, Ltd.
3.500%, 01/13/17 (144A)

     400,000        412,158   
   

 

 

  
      2,544,324   
   

 

 

  

Home Builders—2.0%

    

Centex Corp.
5.250%, 06/15/15

     3,000,000        3,191,250   

6.500%, 05/01/16

     6,000,000        6,690,000   

DR Horton, Inc.
4.750%, 05/15/17

     2,000,000        2,065,000   

5.625%, 01/15/16

     3,425,000        3,617,656   

Toll Brothers Finance Corp.
5.150%, 05/15/15

     6,000,000        6,240,000   
   

 

 

  
      21,803,906   
   

 

 

  

Household Products—0.4%

    

Avon Products, Inc.
2.375%, 03/15/16

     3,000,000        3,024,312   

Colgate-Palmolive Co.
0.900%, 05/01/18

     2,000,000        1,924,086   
   

 

 

  
      4,948,398   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Household Products/Wares—0.2%

    

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC
8.500%, 05/15/18

     2,000,000      $ 2,060,000   
   

 

 

  

Insurance—0.8%

    

Prudential Covered Trust
2.997%, 09/30/15 (144A)

     8,100,000        8,358,552   
   

 

 

  

Iron/Steel—0.1%

    

ArcelorMittal
5.000%, 02/25/17

     1,500,000        1,518,750   
   

 

 

  

Lodging—0.2%

    

Caesars Entertainment Operating Co., Inc.
11.250%, 06/01/17

     1,000,000        1,041,250   

MGM Resorts International
6.625%, 07/15/15

     1,000,000        1,066,250   
   

 

 

  
      2,107,500   
   

 

 

  

Media—1.2%

    

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
2.400%, 03/15/17

     2,700,000        2,713,049   

DISH DBS Corp.
4.250%, 04/01/18 (144A)

     500,000        490,000   

7.125%, 02/01/16

     1,500,000        1,623,750   

NBCUniversal Media LLC
2.100%, 04/01/14

     4,200,000        4,250,581   

Walt Disney Co. (The)
0.265%, 02/11/15 (a)

     4,500,000        4,496,481   
   

 

 

  
      13,573,861   
   

 

 

  

Mining—0.6%

    

FMG Resources (August 2006) Pty, Ltd.
6.000%, 04/01/17 (144A)

     900,000        875,250   

6.875%, 02/01/18 (144A)

     500,000        493,750   

Rio Tinto Finance USA plc
1.625%, 08/21/17

     2,600,000        2,550,046   

Xstrata Finance Canada, Ltd.
2.050%, 10/23/15 (144A)

     3,000,000        3,000,948   
   

 

 

  
      6,919,994   
   

 

 

  

Office/Business Equipment—0.4%

    

Xerox Corp.
1.094%, 05/16/14 (a)

     4,200,000        4,197,022   
   

 

 

  

Oil & Gas—3.1%

    

Anadarko Petroleum Corp.
5.750%, 06/15/14

     2,000,000        2,091,108   

BG Energy Capital plc
2.875%, 10/15/16 (144A)

     4,500,000        4,710,105   

BP Capital Markets plc
0.700%, 11/06/15

     4,000,000        3,984,988   

Oil & Gas—(Continued)

    

Chesapeake Energy Corp.
9.500%, 02/15/15

     1,500,000      $ 1,657,500   

Chevron Corp.
1.104%, 12/05/17

     6,000,000        5,862,672   

CNOOC Finance 2013, Ltd.
1.750%, 05/09/18

     3,000,000        2,869,545   

CNPC General Capital, Ltd.
1.950%, 04/16/18 (144A)

     1,500,000        1,435,899   

2.750%, 04/19/17 (144A)

     800,000        801,053   

CNPC HK Overseas Capital, Ltd.
3.125%, 04/28/16 (144A)

     500,000        521,324   

Drill Rigs Holdings, Inc.
6.500%, 10/01/17 (144A)

     400,000        399,000   

Lukoil International Finance B.V.
3.416%, 04/24/18 (144A)

     2,300,000        2,236,750   

Petrohawk Energy Corp.
7.875%, 06/01/15

     700,000        715,050   

Phillips 66
1.950%, 03/05/15

     2,700,000        2,741,869   

Quicksilver Resources, Inc.
7.000%, 06/21/19 (144A) (a)

     700,000        630,000   

Woodside Finance, Ltd.
4.500%, 11/10/14 (144A)

     4,200,000        4,382,931   
   

 

 

  
      35,039,794   
   

 

 

  

Oil & Gas Services—0.4%

    

CGG
9.500%, 05/15/16

     500,000        521,875   

Schlumberger Norge
1.950%, 09/14/16 (144A)

     4,000,000        4,075,544   
   

 

 

  
      4,597,419   
   

 

 

  

Pharmaceuticals—1.0%

    

AbbVie, Inc.
1.033%, 11/06/15 (144A) (a)

     3,500,000        3,533,453   

Express Scripts Holding Co.
2.750%, 11/21/14

     1,000,000        1,021,998   

McKesson Corp.
1.400%, 03/15/18

     2,000,000        1,930,418   

Watson Pharmaceuticals, Inc.
1.875%, 10/01/17

     2,000,000        1,949,720   

Zoetis, Inc.
1.150%, 02/01/16 (144A)

     1,800,000        1,793,886   

1.875%, 02/01/18 (144A)

     1,200,000        1,174,741   
   

 

 

  
      11,404,216   
   

 

 

  

Pipelines—0.4%

    

Enterprise Products Operating LLC
1.250%, 08/13/15

     3,700,000        3,712,143   

Kinder Morgan Finance Co. LLC
6.000%, 01/15/18 (144A)

     500,000        524,950   

Kinder Morgan Finance Co. ULC
5.700%, 01/05/16

     500,000        535,548   
   

 

 

  
      4,772,641   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Retail—0.7%

    

Costco Wholesale Corp.
0.650%, 12/07/15

     1,000,000      $ 998,026   

Dollar General Corp.
1.875%, 04/15/18

     2,000,000        1,929,654   

Edcon Pty, Ltd.
9.500%, 03/01/18 (144A) (EUR)

     800,000        968,427   

Wal-Mart Stores, Inc.
0.600%, 04/11/16

     4,000,000        3,973,276   
   

 

 

  
      7,869,383   
   

 

 

  

Semiconductors—0.1%

    

Freescale Semiconductor, Inc.
9.250%, 04/15/18 (144A)

     1,500,000        1,616,250   
   

 

 

  

Telecommunications—1.5%

  

Embarq Corp.
7.082%, 06/01/16

     2,071,000        2,320,628   

Qwest Corp.
7.500%, 10/01/14

     4,200,000        4,520,716   

Sprint Nextel Corp.
9.000%, 11/15/18 (144A)

     2,000,000        2,340,000   

Telefonica Emisiones S.A.U.
3.192%, 04/27/18

     2,300,000        2,227,798   

Verizon Communications, Inc.
0.700%, 11/02/15

     1,000,000        993,284   

1.950%, 03/28/14

     4,200,000        4,242,282   

Wind Acquisition Finance S.A.
11.750%, 07/15/17 (144A)

     500,000        520,000   
   

 

 

  
      17,164,708   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $381,409,304)

       383,629,015   
   

 

 

  
U.S. Treasury & Government Agencies—31.4%   

Agency Sponsored Mortgage - Backed—7.4%

  

Fannie Mae 15 Yr. Pool
4.000%, 04/01/26

     4,081,569        4,302,878   

4.000%, 05/01/26

     4,273,570        4,504,482   

4.500%, 09/01/24

     2,435,618        2,583,847   

4.500%, 03/01/25

     4,499,860        4,772,072   

Fannie Mae ARM Pool
1.904%, 03/01/35 (a)

     87,417        91,185   

1.934%, 02/01/36 (a)

     153,708        160,462   

2.070%, 11/01/35 (a)

     293,430        307,125   

2.085%, 03/01/36 (a)

     497,216        524,951   

2.125%, 05/01/19 (a)

     105,775        105,591   

2.160%, 07/01/35 (a)

     240,976        256,089   

2.175%, 07/01/36 (a)

     112,265        116,074   

2.226%, 01/01/20 (a)

     160,955        168,502   

2.230%, 06/01/35 (a)

     123,726        131,460   

2.323%, 06/01/33 (a)

     115,638        118,172   

2.363%, 06/01/32 (a)

     4,317        4,366   

2.365%, 01/01/33 (a)

     196,923        198,074   

2.429%, 02/01/35 (a)

     177,934        189,000   

Agency Sponsored Mortgage - Backed—(Continued)

  

Fannie Mae ARM Pool
2.492%, 11/01/34 (a)

     8,862,583      $ 9,539,928   

2.588%, 02/01/32 (a)

     91,810        97,572   

2.623%, 08/01/33 (a)

     130,735        139,548   

2.649%, 11/01/36 (a)

     6,135,506        6,501,327   

2.658%, 09/01/35 (a)

     10,803,682        11,469,334   

2.685%, 04/01/35 (a)

     1,598,188        1,709,839   

2.693%, 12/01/35 (a)

     230,971        238,391   

2.706%, 10/01/33 (a)

     66,716        70,913   

2.750%, 05/01/34 (a)

     148,985        150,172   

2.810%, 11/01/35 (a)

     61,250        64,874   

2.825%, 11/01/34 (a)

     41,402        41,817   

2.845%, 08/01/35 (a)

     1,434,701        1,530,555   

2.856%, 11/01/35 (a)

     4,736,317        5,056,382   

3.754%, 05/01/34 (a)

     133,801        134,554   

Freddie Mac ARM Non-Gold Pool
2.375%, 05/01/34 (a)

     379,487        404,419   

2.495%, 07/01/37 (a)

     747,755        797,566   

2.528%, 07/01/36 (a)

     142,249        151,587   

2.655%, 01/01/35 (a)

     173,803        184,628   

2.658%, 03/01/35 (a)

     1,182,090        1,256,659   

2.725%, 04/01/34 (a)

     1,402,696        1,482,609   

2.751%, 01/01/35 (a)

     1,557,065        1,656,849   

2.787%, 06/01/37 (a)

     7,427,515        7,980,944   

2.839%, 07/01/35 (a)

     426,726        457,036   

2.953%, 06/01/37 (a)

     633,954        678,993   

3.075%, 04/01/35 (a)

     122,048        123,974   

3.345%, 09/01/37 (a)

     659,017        701,645   

Freddie Mac Multifamily Structured Pass-Through Certificates
2.902%, 08/25/20

     7,691,700        8,031,027   

3.342%, 12/25/19

     3,476,791        3,697,449   
   

 

 

  
      82,884,921   
   

 

 

  

U.S. Treasury—24.0%

  

U.S. Treasury Bonds
11.250%, 02/15/15

     4,000,000        4,708,124   

U.S. Treasury Inflation Indexed Notes
0.125%, 04/15/16

     3,160,500        3,241,734   

1.250%, 04/15/14

     7,471,704        7,573,857   

1.875%, 07/15/13

     3,798,330        3,801,593   

U.S. Treasury Notes
0.250%, 07/15/15

     21,700,000        21,640,672   

0.375%, 03/15/15

     22,000,000        22,025,784   

1.750%, 07/31/15

     11,000,000        11,311,091   

1.875%, 06/30/15

     32,800,000        33,784,000   

2.500%, 04/30/15

     14,000,000        14,551,796   

4.000%, 02/15/15

     38,000,000        40,277,036   

4.125%, 05/15/15

     25,000,000        26,763,675   

4.250%, 08/15/15

     33,000,000        35,686,398   

4.500%, 02/15/16

     38,000,000        41,903,892   
   

 

 

  
      267,269,652   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $354,731,838)

       350,154,573   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mortgage-Backed Securities—8.9%

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—2.8%

  

Arkle Master Issuer plc
1.674%, 05/17/60 (144A) (a)

     2,275,000      $ 2,278,528   

Banc of America Funding Corp.
0.362%, 07/20/36 (a)

     1,133,552        1,093,214   

Credit Suisse First Boston Mortgage Securities Corp.
2.651%, 04/25/34 (a)

     2,841,097        2,896,729   

Fosse Master Issuer plc
1.677%, 10/18/54 (144A) (a)

     3,687,647        3,723,550   

Granite Master Issuer plc
0.272%, 12/20/54 (a)

     2,093,603        2,028,702   

Holmes Master Issuer plc
1.677%, 10/15/54 (144A) (a)

     1,202,436        1,209,311   

Kildare Securities, Ltd.
0.394%, 12/10/43 (144A) (a)

     3,316,603        3,184,430   

MASTR Adjustable Rate Mortgages Trust
0.393%, 05/25/47 (a)

     1,357,743        1,319,375   

Merrill Lynch Mortgage Investors Trust
1.097%, 01/25/29 (a)

     1,905,170        1,837,826   

MLCC Mortgage Investors, Inc.
0.933%, 03/25/28 (a)

     998,177        993,040   

2.250%, 04/25/35 (a)

     1,117,432        1,094,588   

Permanent Master Issuer plc
1.675%, 07/15/42 (144A) (a)

     3,970,000        3,993,260   

Springleaf Mortgage Loan Trust
2.220%, 10/25/57 (144A) (a)

     2,771,559        2,811,766   

WaMu Mortgage Pass-Through Certificates
0.483%, 07/25/45 (a)

     543,354        502,313   

Wells Fargo Mortgage Backed Securities Trust
2.636%, 06/25/35 (a)

     1,998,311        1,948,193   
   

 

 

  
      30,914,825   
   

 

 

  

Commercial Mortgage-Backed Securities—6.1%

  

Banc of America Large Loan, Inc.
2.493%, 11/15/15 (144A) (a)

     2,859,902        2,862,121   

Banc of America Merrill Lynch Commercial Mortgage, Inc.
5.061%, 03/11/41 (a)

     403,819        405,141   

5.460%, 09/10/45 (a)

     3,200,000        3,410,909   

5.695%, 07/10/46 (a)

     4,024,000        4,016,427   

Bear Stearns Commercial Mortgage Securities, Inc.
5.611%, 09/11/41 (a)

     3,620,000        3,526,553   

5.611%, 03/11/39 (a)

     3,961,000        4,035,847   

5.905%, 06/11/40 (a)

     3,200,000        3,553,997   

Citigroup / Deutsche Bank Commercial Mortgage Trust
5.617%, 10/15/48

     3,200,000        3,532,451   

Citigroup Commercial Mortgage Trust
5.482%, 10/15/49

     2,000,000        1,861,356   

Commercial Mortgage Trust 2005-GG5
5.277%, 04/10/37 (a)

     1,300,000        1,381,484   

G-FORCE 2005-RR LLC
4.830%, 08/22/36 (144A)

     1,348,922        1,365,783   
Security Description   Principal
Amount*		     Value  

Commercial Mortgage-Backed Securities—(Continued)

  

German Residential Asset Note Distributor plc
1.615%, 01/20/21 (EUR) (a)

     2,500,503      $ 3,245,014   

2.095%, 01/20/21 (EUR) (a)

     2,281,039        2,948,330   

Greenwich Capital Commercial Funding Corp.
6.056%, 07/10/38 (a)

     6,965,000        7,278,905   

JP Morgan Chase Commercial Mortgage Securities Corp.
5.464%, 12/12/43

     3,500,000        3,470,194   

6.056%, 04/15/45 (a)

     2,410,000        2,413,998   

JP Morgan Chase Commercial Mortgage Securities Trust 2006-CIBC14
5.633%, 12/12/44 (a)

     3,700,000        4,006,112   

LB-UBS Commercial Mortgage Trust 2006-C1
5.276%, 02/15/41 (a)

     930,000        908,463   

ML-CFC Commercial Mortgage Trust 2006-3 5.409%, 07/12/46 (a)

     3,009,446        3,327,038   

Morgan Stanley Capital I Trust
5.677%, 03/12/44 (a)

     1,100,000        1,119,901   

Talisman-6 Finance plc
0.391%, 10/22/16 (EUR) (a)

     2,536,273        2,954,698   

Wachovia Bank Commercial Mortgage Trust
5.077%, 10/15/35 (144A) (a)

     2,179,625        2,188,119   

5.919%, 05/15/43 (a)

     2,700,000        2,294,892   

Wachovia Bank Commercial Mortgage Trust Series 2006-C27
5.795%, 07/15/45 (a)

     2,400,000        2,617,519   
   

 

 

  
      68,725,252   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $97,902,411)

       99,640,077   
   

 

 

  
Foreign Government—6.3%   

Commercial Banks—0.8%

    

Bank Negara Malaysia Monetary Notes
Zero Coupon, 07/04/13 (MYR)

     180,000        56,957   

Zero Coupon, 07/11/13 (MYR)

     170,000        53,762   

Zero Coupon, 07/18/13 (MYR)

     160,000        50,570   

Zero Coupon, 07/25/13 (MYR)

     140,000        44,224   

Zero Coupon, 08/06/13 (MYR)

     530,000        167,253   

Zero Coupon, 08/15/13 (MYR)

     650,000        204,971   

Zero Coupon, 08/27/13 (MYR)

     280,000        88,225   

Zero Coupon, 09/05/13 (MYR)

     380,000        119,623   

Zero Coupon, 09/17/13 (MYR)

     385,000        121,078   

Zero Coupon, 09/26/13 (MYR)

     420,000        131,989   

Zero Coupon, 10/08/13 (MYR)

     5,000        1,570   

Zero Coupon, 10/31/13 (MYR)

     1,950,000        611,058   

Zero Coupon, 11/12/13 (MYR)

     520,000        162,789   

Zero Coupon, 11/19/13 (MYR)

     1,020,000        319,134   

Zero Coupon, 12/05/13 (MYR)

     280,000        87,491   

Zero Coupon, 12/10/13 (MYR)

     380,000        118,689   

Zero Coupon, 12/12/13 (MYR)

     1,010,000        315,429   

Zero Coupon, 12/19/13 (MYR)

     100,000        31,211   

Zero Coupon, 12/26/13 (MYR)

     940,000        293,216   

Zero Coupon, 12/31/13 (MYR)

     560,000        174,611   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Foreign Government—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Banks—(Continued)

    

Bank Negara Malaysia Monetary Notes
Zero Coupon, 01/09/14 (MYR)

     595,000      $ 185,334   

Zero Coupon, 01/16/14 (MYR)

     880,000        273,945   

Zero Coupon, 02/06/14 (MYR)

     15,000        4,663   

Zero Coupon, 02/18/14 (MYR)

     200,000        62,111   

Zero Coupon, 02/20/14 (MYR)

     485,000        150,594   

Zero Coupon, 02/25/14 (MYR)

     160,000        49,660   

Zero Coupon, 03/06/14 (MYR)

     2,500,000        775,363   

Zero Coupon, 03/13/14 (MYR)

     60,000        18,598   

Zero Coupon, 03/20/14 (MYR)

     450,000        139,404   

Zero Coupon, 03/27/14 (MYR)

     280,000        86,700   

Zero Coupon, 04/03/14 (MYR)

     130,000        40,233   

Zero Coupon, 04/24/14 (MYR)

     170,000        52,512   

Zero Coupon, 05/15/14 (MYR)

     650,000        200,438   

Zero Coupon, 05/20/14 (MYR)

     680,000        209,604   

Zero Coupon, 05/27/14 (MYR)

     1,325,000        408,188   

Zero Coupon, 06/03/14 (MYR)

     2,380,000        733,278   

Zero Coupon, 06/05/14 (MYR)

     1,422,000        437,752   

Zero Coupon, 06/10/14 (MYR)

     140,000        43,081   

Zero Coupon, 06/17/14 (MYR)

     1,840,000        565,882   

Zero Coupon, 06/19/14 (MYR)

     1,310,000        403,107   

Korea Monetary Stabilization Bonds
2.470%, 04/02/15 (KRW)

     650,000,000        565,697   

2.740%, 02/02/15 (KRW)

     179,540,000        157,019   

2.840%, 12/02/14 (KRW)

     65,040,000        56,999   

Monetary Authority of Singapore
Zero Coupon, 07/26/13 (SGD)

     460,000        362,860   
   

 

 

  
      9,136,872   
   

 

 

  

Sovereign—5.5%

  

Hungary Government Bonds
5.500%, 02/12/14 (HUF)

     1,500,000        6,672   

5.500%, 12/22/16 (HUF)

     18,990,000        85,089   

7.500%, 10/24/13 (HUF)

     43,840,000        195,314   

7.750%, 08/24/15 (HUF)

     3,800,000        17,816   

8.000%, 02/12/15 (HUF)

     12,120,000        56,314   

Hungary Government International Bond
6.750%, 07/28/14 (EUR)

     700,000        952,430   

Hungary Treasury Bills
3.950%, 07/24/13 (HUF) (b)

     10,500,000        46,222   

4.059%, 07/17/13 (HUF) (b)

     9,500,000        41,855   

4.187%, 03/05/14 (HUF) (b)

     28,280,000        121,323   

4.242%, 01/08/14 (HUF) (b)

     6,470,000        27,898   

4.286%, 09/18/13 (HUF) (b)

     4,040,000        17,659   

4.292%, 03/05/14 (HUF) (b)

     137,420,000        589,537   

4.318%, 03/05/14 (HUF) (b)

     48,500,000        208,067   

4.354%, 01/08/14 (HUF) (b)

     68,710,000        296,275   

Indonesia Retail Bond

    

7.950%, 08/15/13 (IDR)

     19,500,000,000        1,967,072   

Indonesia Treasury Bonds

    

9.000%, 09/15/13 (IDR)

     2,390,000,000        241,844   

Ireland Government Bonds

    

4.000%, 01/15/14 (EUR)

     250,000        331,518   

4.600%, 04/18/16 (EUR)

     3,078,000        4,291,514   

Sovereign—(Continued)

  

Korea Treasury Bonds

    

2.750%, 12/10/15 (KRW)

     151,040,000      $ 131,839   

3.000%, 12/10/13 (KRW)

     16,045,000,000        14,072,675   

3.250%, 12/10/14 (KRW)

     62,530,000        55,119   

3.250%, 06/10/15 (KRW)

     186,850,000        164,829   

Malaysia Government Bonds

    

3.197%, 10/15/15 (MYR)

     1,660,000        524,174   

3.434%, 08/15/14 (MYR)

     1,340,000        425,620   

3.461%, 07/31/13 (MYR)

     2,090,000        661,683   

3.741%, 02/27/15 (MYR)

     1,595,000        509,255   

3.835%, 08/12/15 (MYR)

     1,625,000        519,908   

4.720%, 09/30/15 (MYR)

     130,000        42,500   

5.094%, 04/30/14 (MYR)

     5,765,000        1,855,352   

8.000%, 10/30/13 (MYR)

     10,000        3,217   

Mexican Bonos

    

6.000%, 06/18/15 (MXN)

     101,000        8,030   

6.250%, 06/16/16 (MXN)

     764,000        61,822   

7.000%, 06/19/14 (MXN)

     19,820,000        1,572,240   

8.000%, 12/19/13 (MXN)

     50,200,000        3,945,385   

8.000%, 12/17/15 (MXN)

     20,714,000        1,728,713   

9.500%, 12/18/14 (MXN)

     8,960,000        743,085   

Mexico Cetes

    

Zero Coupon, 09/19/13 (MXN)

     116,620,000        892,085   

Zero Coupon, 10/31/13 (MXN)

     3,200,000        24,365   

Zero Coupon, 01/09/14 (MXN)

     10,936,000        82,625   

Zero Coupon, 04/03/14 (MXN)

     2,140,000        16,020   

Zero Coupon, 04/30/14 (MXN)

     12,140,000        90,606   

Poland Government Bonds

    

Zero Coupon, 07/25/13 (PLN)

     375,000        112,634   

Zero Coupon, 01/25/14 (PLN)

     3,035,000        899,073   

Zero Coupon, 07/25/14 (PLN)

     60,000        17,532   

Zero Coupon, 07/25/15 (PLN)

     723,000        204,364   

Zero Coupon, 01/25/16 (PLN)

     2,553,000        708,239   

3.980%, 01/25/17 (PLN) (a)

     5,746,000        1,717,211   

3.980%, 01/25/21 (PLN) (a)

     5,829,000        1,690,791   

5.000%, 10/24/13 (PLN)

     4,890,000        1,481,187   

5.500%, 04/25/15 (PLN)

     1,556,000        488,384   

5.750%, 04/25/14 (PLN)

     8,705,000        2,679,328   

6.250%, 10/24/15 (PLN)

     1,551,000        498,251   

Singapore Treasury Bills

    

0.193%, 08/12/13 (SGD) (b)

     440,000        347,044   

0.194%, 11/01/13 (SGD) (b)

     740,000        583,317   

0.243%, 05/02/14 (SGD) (b)

     401,000        315,565   

0.254%, 07/25/13 (SGD) (b)

     275,000        216,928   

Sweden Government Bonds

    

1.500%, 08/30/13 (SEK)

     1,670,000        249,246   

6.750%, 05/05/14 (SEK)

     58,070,000        9,078,944   

Sweden Treasury Bills

    

0.842%, 09/18/13 (SEK) (b)

     12,560,000        1,869,195   

0.871%, 12/18/13 (SEK) (b)

     5,300,000        786,848   
   

 

 

  
      61,569,647   
   

 

 

  

Total Foreign Government
(Cost $73,643,152)

       70,706,519   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—6.2%

 

Security Description   Principal
Amount*		     Value  

Aerospace/Defense—0.1%

  

Silver II US Holdings LLC
Term Loan
4.000%, 12/13/19

     793,218      $ 788,506   

Transdigm, Inc.
Term Loan
3.750%, 02/28/20

     907,302        898,229   
   

 

 

  
      1,686,735   
   

 

 

  

Agriculture—0.0%

  

American Rock Salt Holdings LLC
Term Loan
5.500%, 04/25/17

     407,087        406,985   
   

 

 

  

Auto Parts & Equipment—0.2%

  

Allison Transmission, Inc.
Term Loan
3.200%, 08/07/17

     280,672        282,075   

4.250%, 08/23/19

     546,888        549,453   

Tomkins LLC
Term Loan
3.750%, 09/29/16

     1,026,465        1,032,239   
   

 

 

  
      1,863,767   
   

 

 

  

Chemicals—0.4%

  

Arysta LifeScience Corp.
First Lien Term Loan
4.500%, 05/30/20

     979,979        972,021   

Ineos U.S. Finance LLC
Term Loan
4.000%, 05/04/18

     622,996        611,415   

MacDermid, Inc.
First Lien Term Loan
4.000%, 06/07/20

     220,000        219,175   

Tronox Pigments (Netherlands) B.V.
Term Loan
4.500%, 03/19/20

     1,265,312        1,273,366   

U.S. Coatings Acquisition, Inc.
Term Loan
4.750%, 02/01/20

     1,095,594        1,097,380   
   

 

 

  
      4,173,357   
   

 

 

  

Coal—0.3%

  

Arch Coal, Inc.
Term Loan
5.750%, 05/16/18

     2,102,706        2,101,392   

Walter Energy, Inc.
Term Loan
5.750%, 04/02/18

     982,894        961,801   
   

 

 

  
      3,063,193   
   

 

 

  

Commercial Services—0.7%

  

Avis Budget Car Rental LLC
Term Loan
3.000%, 03/15/19

     1,127,175        1,131,120   

Commercial Services—(Continued)

  

Genpact International, Inc.
Term Loan
3.500%, 08/30/19

     190,000      $ 190,119   

Hertz Corp. (The)
Term Loan
3.750%, 03/11/18

     728,003        728,003   

Interactive Data Corp.
Term Loan
3.750%, 02/11/18

     1,158,962        1,155,096   

KAR Auction Services, Inc.
Term Loan
3.750%, 05/19/17

     2,214,141        2,235,087   

Weight Watchers International, Inc.
Term Loan
3.750%, 04/02/20

     1,861,590        1,853,911   
   

 

 

  
      7,293,336   
   

 

 

  

Computers—0.3%

  

BMC Software, Inc.
Term Loan
0.000%, 05/30/14 (d)

     2,000,000        2,001,920   

Moneygram International, Inc.
Term Loan
4.250%, 03/28/20

     1,023,167        1,027,649   
   

 

 

  
      3,029,569   
   

 

 

  

Computers & Peripherals—0.1%

  

Dell, Inc.
First Lien Term Loan
4.000%, 02/28/14 (c)

     984,615        979,692   

Second Lien Term Loan
5.250%, 02/05/21 (c)

     615,385        612,308   
   

 

 

  
      1,592,000   
   

 

 

  

Containers & Packaging—0.2%

  

Pact Group Pty Ltd.
Term Loan
3.750%, 05/29/20

     350,000        348,688   

Reynolds Group Holdings, Inc.
Term Loan
4.750%, 09/28/18

     1,989,098        1,997,591   
   

 

 

  
      2,346,279   
   

 

 

  

Diversified Financial Services—0.1%

  

Trans Union LLC
Term Loan
4.250%, 02/10/18

     1,141,214        1,148,917   
   

 

 

  

Entertainment—0.1%

  

Ameristar Casinos, Inc.
Term Loan
4.000%, 04/14/18

     273,003        273,799   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Entertainment—(Continued)

  

Cinemark USA, Inc.
Term Loan
3.200%, 12/18/19

     413,692      $ 414,726   
   

 

 

  
      688,525   
   

 

 

  

Food—0.6%

  

Advance Pierre Foods, Inc.
Term Loan
5.750%, 07/10/17

     337,062        338,958   

ARAMARK Corp.
Extended Letter of Credit
3.695%, 07/26/16

     25,984        26,026   

Extended Term Loan
3.776%, 07/26/16

     556,130        557,031   

Term Loan
4.000%, 09/09/19

     440,000        440,000   

Del Monte Foods Co.
Term Loan
4.000%, 03/08/18

     2,826,852        2,822,146   

HJ Heinz Co.
Term Loan
3.500%, 06/05/20

     1,512,886        1,514,520   

Pinnacle Foods Finance LLC
Term Loan
3.250%, 04/29/20

     458,244        456,181   
   

 

 

  
      6,154,862   
   

 

 

  

Healthcare-Products—0.2%

  

Bausch & Lomb, Inc.
Term Loan
4.000%, 05/17/19

     1,661,237        1,661,237   

Hologic, Inc.
Term Loan
4.500%, 08/01/19

     463,287        465,284   
   

 

 

  
      2,126,521   
   

 

 

  

Healthcare-Services—0.5%

  

Community Health Systems, Inc.
Extended Term Loan
3.773%, 01/25/17

     1,495,428        1,499,002   

DaVita, Inc.
Term Loan
4.000%, 11/01/19

     1,024,938        1,027,956   

4.500%, 10/20/16

     1,481,050        1,489,381   

HCA, Inc.
Extended Term Loan
2.945%, 05/01/18

     60,000        59,803   

2.750%, 03/31/17

     1,140,504        1,144,781   

Term Loan
3.026%, 03/31/17

     179,496        178,879   

WC Luxco S.A.R.L.
Term Loan
4.250%, 03/15/18

     589,739        591,161   
   

 

 

  
      5,990,963   
   

 

 

  

Insurance—0.0%

  

Asurion LLC
Term Loan
4.500%, 05/24/19

     161,837      $ 160,664   

4.750%, 07/18/17

     219,551        219,162   
   

 

 

  
      379,826   
   

 

 

  

Machinery-Construction & Mining—0.1%

  

Terex Corp.
Term Loan
4.500%, 04/28/17

     613,304        619,947   
   

 

 

  

Media—0.3%

  

CSC Holdings, Inc.
Term Loan
2.695%, 04/17/20

     1,493,556        1,479,554   

Entravision Communications Corp.
Term Loan
3.000%, 05/31/20 (c)

     550,000        544,041   

Foxco Acquisition Sub LLC
Term Loan
5.500%, 07/14/17

     377,524        381,773   

Nine Entertainment Group Ltd.
Term Loan
3.500%, 02/05/20

     865,651        862,404   

WMG Acquisition Corp.
Term Loan
0.000%, 07/01/20 (d)

     280,000        278,444   
   

 

 

  
      3,546,216   
   

 

 

  

Metal Fabricate/Hardware—0.0%

  

Rexnord LLC
Term Loan
3.750%, 04/01/18

     396,808        397,602   
   

 

 

  

Mining—0.1%

  

FMG America Finance, Inc.
Term Loan
5.250%, 10/18/17

     805,310        801,662   
   

 

 

  

Oil & Gas—0.0%

  

Pacific Drilling S.A.
Term Loan
4.500%, 06/04/18

     230,000        229,971   
   

 

 

  

Packaging & Containers—0.1%

  

Berry Plastics Holding Corp.
Term Loan
3.500%, 02/08/20

     936,854        928,277   
   

 

 

  

Pharmaceuticals—0.3%

  

Par Pharmaceutical Cos., Inc.
Term Loan
4.250%, 09/30/19

     706,450        703,006   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (a)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Pharmaceuticals—(Continued)

  

Valeant Pharmaceuticals International, Inc. Term Loan
0.000%, 06/24/20 (d)

     420,000      $ 419,108   

3.500%, 02/13/19

     389,481        387,452   

3.500%, 12/11/19

     814,010        809,178   

Warner Chilcott Co. LLC
Term Loan
4.250%, 03/15/18

     100,644        100,886   

Warner Chilcott Corp.
Term Loan
4.250%, 03/15/18

     1,074,174        1,076,762   
   

 

 

  
      3,496,392   
   

 

 

  

Retail—0.8%

  

BJ’s Wholesale Club, Inc.
Term Loan
4.250%, 09/26/19

     3,169,170        3,163,228   

Burger King Corp.
Term Loan
3.750%, 09/28/19

     835,802        842,217   

DineEquity, Inc.
Term Loan
3.750%, 10/19/17

     440,640        442,369   

Dunkin’ Brands Group, Inc.
Term Loan
3.750%, 02/11/20

     711,431        710,702   

Evergreen Acquisition Co, L.P.
Term Loan
5.000%, 07/09/19

     2,350,050        2,361,554   

Party City Holdings, Inc.
Term Loan
4.250%, 07/29/19

     1,184,050        1,178,378   
   

 

 

  
      8,698,448   
   

 

 

  

Semiconductors—0.1%

  

Freescale Semiconductor, Inc.
Term Loan
3.750%, 06/01/16 (c)

     1,000,000        880,000   
   

 

 

  

Telecommunications—0.6%

  

Intelsat Jackson Holdings, Ltd.
Term Loan
4.250%, 04/02/18

     2,082,728        2,089,757   

Telesat Canada / Telesat LLC
Term Loan
3.500%, 03/28/19

     1,225,152        1,228,980   

UPC Financing Partnership
Term Loan
3.250%, 06/30/21

     1,968,585        1,962,128   

4.000%, 01/28/21

     238,500        238,947   

Virgin Media Investment Holdings, Ltd.
Term Loan
0.000%, 06/07/20 (d)

     1,600,375        1,585,932   
   

 

 

  
      7,105,744   
   

 

 

  

Total Floating Rate Loans
(Cost $68,540,634)

       68,649,094   
   

 

 

  
Asset-Backed Securities—3.6%   
Security Description   Principal
Amount*		     Value  

Asset-Backed - Home Equity—0.8%

  

Argent Securities, Inc.
0.553%, 10/25/35 (a)

     1,270,000      $ 1,107,319   

Bayview Financial Acquisition Trust
0.825%, 08/28/44 (a)

     1,419,143        1,394,089   

HSBC Home Equity Loan Trust 2005-2
0.462%, 01/20/35 (a)

     2,149,794        2,121,631   

MASTR Asset Backed Securities Trust
0.923%, 09/25/34 (a)

     1,400,000        1,358,483   

Morgan Stanley ABS Capital I
1.393%, 05/25/33 (a)

     522,807        499,519   

Residential Funding Mortgage Securities II Home Loan Trust
5.480%, 06/25/34

     916,580        951,629   

Terwin Mortgage Trust 2005-8HE
0.563%, 07/25/35 (144A) (a)

     1,556,043        1,553,057   
   

 

 

  
      8,985,727   
   

 

 

  

Asset-Backed - Other—2.8%

  

Aames Mortgage Investment Trust
0.898%, 10/25/35 (a)

     807,516        805,509   

Ameriquest Mortgage Securities, Inc.
1.018%, 06/25/34 (a)

     2,361,436        2,286,168   

Apidos CDO
4.850%, 04/15/25 (144A) (e)

     1,710,000        1,710,000   

Chase Funding Mortgage Loan Asset-Backed Certificates
5.351%, 02/25/35 (a)

     677,930        692,429   

Citigroup Mortgage Loan Trust, Inc.
0.343%, 10/25/36 (a)

     1,565,525        1,548,509   

Conseco Financial Corp.
6.740%, 02/01/31

     1,323,361        1,342,137   

Countryplace Manufactured Housing Contract Trust
4.800%, 12/15/35 (144A) (a)

     225,512        231,337   

Countrywide Asset-Backed Certificates
0.433%, 04/25/36 (a)

     767,537        762,709   

0.703%, 06/25/35 (a)

     1,797,308        1,765,041   

0.893%, 12/25/34 (a)

     1,318,136        1,306,153   

0.943%, 03/25/34 (a)

     691,000        640,501   

CREST 2004-1, Ltd.
0.606%, 01/28/20 (144A) (a)

     1,892,687        1,741,272   

CT CDO III, Ltd.
5.471%, 06/25/35 (144A)

     2,470,000        2,485,956   

CT CDO IV, Ltd.
0.502%, 10/20/43 (144A) (a)

     3,447,665        3,218,947   

G-Star 2002-2, Ltd.
2.193%, 10/25/37 (144A) (a)

     378,011        376,677   

Greenpoint Mortgage Funding Trust
0.913%, 07/25/30 (a)

     1,165,450        1,153,303   

GSAMP Trust 2005-HE3
0.863%, 06/25/35 (a)

     1,691,922        1,555,501   

JPMorgan Mortgage Acquisition Corp.
0.343%, 05/25/36 (a)

     529,826        512,797   

LNR CDO 2003-1, Ltd.
1.493%, 07/23/36 (144A) (a)

     201,305        200,083   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Asset-Backed Securities—(Continued)

 

Security Description  

Contracts/

Principal
Amount*

     Value  

Asset-Backed - Other—(Continued)

  

Long Beach Mortgage Loan Trust
0.663%, 08/25/35 (a)

     2,107,795      $ 2,040,663   

Morgan Stanley ABS Capital I
0.928%, 01/25/35 (a)

     926,644        878,917   

Newcastle CDO V, Ltd.
0.613%, 12/24/39 (144A) (a)

     1,135,383        1,078,863   

Park Place Securities, Inc.
0.643%, 09/25/35 (a)

     675,000        625,010   

Structured Asset Securities Corp.
0.493%, 02/25/36 (a)

     2,530,473        2,464,478   
   

 

 

  
      31,422,960   
   

 

 

  

Total Asset-Backed Securities
(Cost $39,492,768)

       40,408,687   
   

 

 

  
Municipals—1.7%                

Acalanes Union High School District, General Obligation Unlimited
1.427%, 08/01/18

     1,000,000        968,150   

California State Public Works Board
3.183%, 12/01/14

     3,685,000        3,755,126   

City of Burleson, Texas, Refunding, General Obligation, Ltd.
3.000%, 03/01/14

     1,010,000        1,027,321   

City of Cleveland, Ohio, Public Improvements, General Obligation, Ltd.
2.250%, 12/01/15

     1,295,000        1,331,584   

Florida Hurricane Catastrophe Fund Finance Corp.
2.107%, 07/01/18

     2,000,000        1,934,720   

New York State Dormitory Authority, Revenue, Refunding (Assured Guaranty Insured) 4.000%, 10/01/14

     2,085,000        2,172,737   

New York State Urban Development Corp., Revenue, Refunding
5.000%, 01/01/15

     2,000,000        2,132,900   

Reading School District, Refunding, General Obligation Unlimited
5.000%, 04/01/15

     2,500,000        2,651,825   

State of Illinois, Refunding, General Obligation Unlimited
5.000%, 01/01/16

     2,500,000        2,705,750   
   

 

 

  

Total Municipals
(Cost $19,005,167)

       18,680,113   
   

 

 

  
Purchased Options—0.0%                

Call Options—0.0%

    

AUD Currency, Strike Price 1.05 Expires 07/15/13 (AUD)

     7,800,000        7   

Put Options—0.0%

    

EUR Currency, Strike Price 1.28 Expires 11/14/13 (EUR)

     20,000,000        399,138   
   

 

 

  

Total Purchased Options
(Cost $656,306)

       399,145   
   

 

 

  
Common Stock—0.0%   
Security Description  

Shares/

Principal
Amount*

     Value  

Forest Products & Paper—0.0%

    

NewPage Corp. (f)
(Cost $554,408)

     2,400      $ 216,000   
   

 

 

  
Short-Term Investments—8.3%           

Repurchase Agreement—8.2%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $91,316,076 on 07/01/13, collateralized by $89,995,000 U.S.Treasury Note at 2.125% due 05/31/15 with a value of $93,144,825.

     91,316,000        91,316,000   
   

 

 

  

Foreign Government—0.1%

    

Singapore Treasury Bill
0.201%, 08/22/13 (SGD) (b)

     1,690,000        1,332,937   
   

 

 

  

Total Short-Term Investments
(Cost $92,663,124)

       92,648,937   
   

 

 

  

Total Investments—100.8%
(Cost $1,128,599,112) (g)

       1,125,132,160   

Unfunded Loan Commitments—(0.4)%
(Cost $(4,150,000))

       (4,150,000 ) 

Net Investments—100.4%
(Cost $1,124,449,112)

       1,120,982,160   

Other assets and liabilities (net)—(0.4)%

       (4,374,165 ) 
   

 

 

  
Net Assets—100.0%     $ 1,116,607,995   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(b) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(c) Unfunded or partially unfunded loan commitments. The Portfolio may enter into certain credit agreements for which all or a portion may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion.
(d) This loan will settle after June 30, 2013, at which time the interest rate will be determined.
(e) Security was valued in good faith under procedures approved by the Board of Trustees. As of June 30, 2013, these securities represent 0.2% of net assets.
(f) Illiquid security. As of June 30, 2013, these securities represent 0.0% of net assets.
(g) As of June 30, 2013, the aggregate cost of investments was $1,124,449,112. The aggregate unrealized appreciation and depreciation of investments were $13,156,193 and $(16,623,145), respectively, resulting in net unrealized depreciation of $(3,466,952).
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $140,321,496, which is 12.6% of net assets.

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

(ARM)— Adjustable-Rate Mortgage
(AUD)— Australian Dollar
(CDO)— Collateralized Debt Obligation
(DKK)— Danish Krone
(EUR)— Euro
(HUF)— Hungarian Forint
(IDR)— Indonesian Rupiah
(KRW)— South Korea Won
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(PLN)— Polish Zloty
(SEK)— Swedish Krona
(SGD)— Singapore Dollar

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

   

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
AUD    4,377,547    Deutsche Bank London        03/31/14         $ 4,468,600         $ (537,681 ) 
CAD    259,000    Citibank N.A.        02/11/14           256,405           (11,455 ) 
CAD    194,000    Deutsche Bank London        02/12/14           191,467           (7,995 ) 
CAD    130,000    Deutsche Bank London        02/14/14           128,180           (5,241 ) 
CAD    260,000    Deutsche Bank London        02/19/14           256,115           (10,266 ) 
CAD    261,000    Deutsche Bank London        02/20/14           255,842           (9,054 ) 
CAD    262,000    Barclays Bank plc        02/21/14           255,805           (8,077 ) 
CAD    131,000    Barclays Bank plc        02/24/14           127,511           (3,656 ) 
CAD    211,000    Barclays Bank plc        02/25/14           204,339           (4,852 ) 
CAD    132,000    Deutsche Bank London        02/25/14           127,949           (3,151 ) 
CAD    185,000    Barclays Bank plc        02/26/14           178,904           (4,002 ) 
CAD    132,000    HSBC Bank plc        03/06/14           127,398           (2,627 ) 
CAD    165,000    Barclays Bank plc        03/07/14           158,882           (2,922 ) 
CAD    144,000    HSBC Bank plc        03/07/14           138,413           (2,303 ) 
CAD    1,042,200    Deutsche Bank AG        05/28/14           999,999           (16,956 ) 
CHF    40,250    Deutsche Bank London        04/16/14           43,917           (1,150 ) 
CHF    1,440,250    Deutsche Bank London        04/16/15           1,593,197           (50,475 ) 
CLP    1,129,880,000    Deutsche Bank AG        05/09/14           2,299,074           (156,354 ) 
CLP    1,133,875,000    JPMorgan Chase Bank N.A.        05/09/14           2,308,848           (158,551 ) 
EUR    700,000    Deutsche Bank AG        07/05/13           905,310           5,855   
INR    6,818,000    JPMorgan Chase Bank N.A.        08/06/13           125,526           (11,504 ) 
INR    119,574,000    Deutsche Bank AG        08/07/13           2,190,762           (191,377 ) 
SEK    11,363,310    Deutsche Bank AG        05/28/14           1,700,000           (17,563 ) 
SGD    1,629,622    Morgan Stanley & Co., Inc.        11/08/13           1,323,390           (37,363 ) 
SGD    3,496,264    Morgan Stanley & Co., Inc.        11/18/13           2,808,696           (49,546 ) 
SGD    1,623,132    Deutsche Bank AG        05/06/14           1,315,209           (34,088 ) 

Contracts to Deliver

                                
CHF    40,250    Deutsche Bank London        04/16/14         $ 44,732         $ 1,965   
CHF    1,440,250    Deutsche Bank London        04/16/15           1,621,355           78,633   
DKK    20,500,000    Deutsche Bank London        09/11/13           3,541,811           (38,502 ) 
DKK    19,000,000    Deutsche Bank London        09/27/13           3,318,487           (424 ) 
DKK    30,600,000    Deutsche Bank London        11/06/13           5,290,456           (56,984 ) 
DKK    46,800,000    Deutsche Bank London        01/09/14           8,264,171           80,285   
EUR    1,455,100    Deutsche Bank London        07/05/13           1,842,913           (51,139 ) 
EUR    923,000    Barclays Bank plc        07/26/13           1,199,716           (1,821 ) 
EUR    410,000    Deutsche Bank London        07/29/13           499,667           (34,066 ) 
EUR    1,046,650    Barclays Bank plc        08/01/13           1,287,379           (75,154 ) 
EUR    46,169    Citibank N.A.        08/08/13           57,627           (2,478 ) 
EUR    5,933    Citibank N.A.        08/09/13           7,415           (309 ) 
EUR    17,272    Barclays Bank plc        08/23/13           21,628           (859 ) 
EUR    30,815    Barclays Bank plc        09/12/13           39,557           (566 ) 
EUR    152,186    Barclays Bank plc        09/16/13           197,027           (1,131 ) 
EUR    87,929    UBS AG        09/17/13           113,762           (729 ) 
EUR    31,978    Barclays Bank plc        09/19/13           42,125           486   
EUR    21,514    Barclays Bank plc        09/24/13           27,963           (51 ) 

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

   

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
EUR    3,100,000    Deutsche Bank London        01/23/14         $ 4,183,450         $ 144,167   
EUR    3,653,125    Deutsche Bank London        01/30/14           4,897,745           137,530   
EUR    1,461,250    Deutsche Bank London        01/30/14           1,946,531           42,445   
EUR    1,355,480    Deutsche Bank London        01/30/14           1,827,932           61,671   
EUR    3,300,000    Deutsche Bank London        02/03/14           4,483,545           183,361   
EUR    5,000,000    Deutsche Bank London        02/05/14           6,768,500           252,987   
EUR    3,400,000    Deutsche Bank London        02/06/14           4,441,420           10,843   
EUR    1,816,000    Deutsche Bank London        02/06/14           2,334,468           (31,982 ) 
EUR    395,300    Deutsche Bank London        03/18/14           512,985           (2,267 ) 
EUR    118,600    JPMorgan Chase Bank N.A.        03/19/14           155,396           806   
EUR    198,000    JPMorgan Chase Bank N.A.        03/20/14           257,398           (687 ) 
EUR    198,000    JPMorgan Chase Bank N.A.        03/21/14           256,219           (1,868 ) 
EUR    198,000    JPMorgan Chase Bank N.A.        03/24/14           257,177           (915 ) 
EUR    158,000    JPMorgan Chase Bank N.A.        03/25/14           204,548           (1,406 ) 
EUR    3,060,000    Deutsche Bank London        03/26/14           3,921,390           (67,354 ) 
EUR    178,275    Deutsche Bank London        03/26/14           232,168           (216 ) 
EUR    2,752,764    Deutsche Bank London        04/03/14           3,537,715           (50,732 ) 
EUR    1,689,780    Deutsche Bank AG        04/10/14           2,217,025           14,146   
EUR    2,414,290    Deutsche Bank AG        04/22/14           3,169,481           21,808   
EUR    513,104    Deutsche Bank AG        04/22/14           676,066           7,098   
EUR    300,000    Deutsche Bank AG        05/05/14           397,050           5,881   
EUR    1,824,000    Deutsche Bank AG        05/07/14           2,399,326           20,984   
EUR    6,170,000    Goldman Sachs & Co.        05/07/14           8,117,252           72,094   
EUR    2,350,000    Goldman Sachs & Co.        05/08/14           3,077,584           13,359   
EUR    400,000    Deutsche Bank AG        05/09/14           525,100           3,526   
EUR    2,750,000    Deutsche Bank AG        05/12/14           3,632,750           46,847   
EUR    2,909,965    Citibank N.A.        05/13/14           3,840,717           46,196   
EUR    715,290    Deutsche Bank AG        05/28/14           928,053           (4,773 ) 
EUR    693,000    Goldman Sachs & Co.        05/30/14           893,520           (10,251 ) 
EUR    3,500,000    Deutsche Bank AG        06/02/14           4,595,150           30,546   
EUR    35,796    Deutsche Bank AG        06/05/14           46,582           (104 ) 
EUR    93,500    Deutsche Bank AG        06/09/14           122,773           826   
JPY    64,350,000    HSBC Bank plc        02/12/14           691,846           41,867   
JPY    64,319,000    JPMorgan Chase Bank N.A.        02/12/14           691,876           42,210   
JPY    85,250,000    Citibank N.A.        02/13/14           922,544           61,449   
JPY    42,690,000    JPMorgan Chase Bank N.A.        02/13/14           461,279           30,075   
JPY    42,710,000    JPMorgan Chase Bank N.A.        02/18/14           461,271           29,837   
JPY    42,570,000    Citibank N.A.        02/19/14           461,221           31,196   
JPY    42,760,000    Goldman Sachs & Co.        02/19/14           461,290           29,346   
JPY    21,350,000    Barclays Bank plc        02/25/14           230,626           14,941   
JPY    42,660,000    Barclays Bank plc        02/27/14           461,267           30,289   
JPY    14,279,000    Deutsche Bank London        02/27/14           155,996           11,740   
JPY    436,983,750    Deutsche Bank AG        05/07/14           4,500,000           80,802   
JPY    55,178,000    Deutsche Bank AG        05/12/14           559,842           1,782   
JPY    281,655,500    Morgan Stanley & Co., Inc.        05/12/14           2,863,254           14,645   
JPY    265,900,000    Morgan Stanley & Co., Inc.        05/19/14           2,609,319           (80,259 ) 
JPY    82,910,000    Barclays Bank plc        06/10/14           851,965           13,021   
JPY    88,300,000    HSBC Bank plc        06/10/14           912,831           19,347   
JPY    59,880,000    JPMorgan Chase Bank N.A.        06/10/14           608,559           2,649   
JPY    29,200,000    Deutsche Bank AG        06/11/14           303,863           8,391   
JPY    81,810,000    JPMorgan Chase Bank N.A.        06/11/14           851,978           24,150   
JPY    34,500,000    JPMorgan Chase Bank N.A.        06/17/14           365,137           16,000   
                    

 

 

  

Net Unrealized Depreciation

  

      $ (67,154 ) 
                    

 

 

  

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		    Number of
Contracts		     Notional
Amount		     Unrealized
Appreciation/
(Depreciation)		  

U.S. Treasury Note 2 Year Futures

    09/30/13      374        USD         82,347,379      $ (67,379 ) 

Futures Contracts—Short

                               

U.S. Treasury Note 10 Year Futures

    09/19/13      (19 )      USD         (2,449,765 )      45,077   
            

 

 

  
             $ (22,302 ) 
            

 

 

  

Swap Agreements

Centrally cleared credit default swap agreements

 

Reference Obligation

    Fixed Deal
(Pay) Rate		      Maturity
Date		      Implied Credit
Spread at
June 30,
2013(b)		      Notional
Amount(c)		      Unrealized
Depreciation		  

Markit CDX North America, Series 20

      1.000%         06/20/18         2.731%         USD         1,000,000       $ (1,761)   
                 

 

 

  

OTC Credit Default Swaps on corporate issues—Buy Protection (a)

 

Reference Obligation

   Fixed Deal
(Pay) Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

American Axle & Manufacturing, Inc.
5.000%, due 06/20/2018

     (5.000%)        06/20/18      Barclays Bank plc     3.528%        USD        500,000      $ (33,420)      $ (34,103)      $ 683   

American Axle & Manufacturing, Inc. 5.000% 06/20/2018

     (5.000%)        06/20/18      Credit Suisse Group AG     3.528%        USD        2,300,000        (153,730)        (138,686)        (15,044)   

Centex Corp.
5.250%, due 06/15/2015

     (5.000%)        06/20/15      JPMorgan Chase Bank N.A.     0.253%        USD        3,000,000        (282,965)        (137,578)        (145,387)   

Centex Corp.
5.250%, due 06/15/2015

     (5.000%)        06/20/16      Credit Suisse Group AG     0.359%        USD        6,000,000        (827,591)        (737,831)        (89,760)   

Constellation Brands, Inc.
5.000%, due 09/20/2016

     (5.000%)        09/20/16      Barclays Bank plc     0.677%        USD        2,000,000        (276,722)        (241,928)        (34,794)   

Constellation Brands, Inc.
5.000%, due 06/20/2017

     (5.000%)        06/20/17      Barclays Bank plc     0.944%        USD        2,000,000      $ (315,748)        (262,181)        (53,567)   

D.R. Horton, Inc.
5.000%, due 03/20/2016

     (5.000%)        03/20/16      JPMorgan Chase Bank N.A.     1.038%        USD        3,425,000        (366,310)        (394,626)        28,316   

D.R. Horton, Inc.
5.000% due 06/20/2017

     (5.000%)        06/20/17      Citibank N.A.     1.576%        USD        2,000,000        (262,693)        (281,353)        18,660   

Dean Foods Co.
5.000%, due 06/20/2016

     (5.000%)        06/20/16      JPMorgan Chase Bank N.A.     1.474%        USD        2,000,000        (206,238)        (193,666)        (12,572)   

Embarq Corp.
7.082%, due 06/01/2016

     (5.000%)        06/20/16      Credit Suisse Group AG     0.881%        USD        2,071,000        (251,538)        (247,588)        (3,950)   

First Data Corp.
5.000% 03/20/2015

     (5.000%)        03/20/15      Barclays Bank plc     2.209%        USD        1,600,000        (76,359)        (99,699)        23,340   

First Data Corp.
5.000%, due 03/20/2015

     (5.000%)        03/20/15      Barclays Bank plc     2.209%        USD        2,600,000        (124,083)        (120,307)        (3,776)   

GenOn Energy, Inc.
5.000%, due 06/20/2014

     (5.000%)        06/20/14      Credit Suisse Group AG     0.624%        USD        5,000,000        (215,431)        (270,907)        55,476   

Hilton Worldwide, Inc.
4.957%, due 11/15/2013

     (5.000%)        12/20/13      Credit Suisse Group AG     0.349%        USD        3,000,000        (67,657)        (113,004)        45,347   

Intelsat SA
6.500%, due 11/01/2013

     (5.000%)        12/20/13      Credit Suisse Group AG     0.196%        USD        2,900,000        (67,584)        (150,955)        83,371   

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

OTC Credit Default Swaps on corporate issues—Buy Protection (a)—(Continued)

 

Reference Obligation

   Fixed Deal
(Pay) Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Merrill Lynch & Co., Inc.
5.000%, due 03/20/2013

     (5.000%)        09/20/14      Credit Suisse Group AG     0.406%        USD        4,000,000      $ (227,429)      $ (310,962)      $ 83,533   

Merrill Lynch & Co., Inc.
1.000%, due 09/20/2017

     (1.000%)        09/20/17      Credit Suisse Group AG     1.063%        USD        2,000,000        5,124        4,498        626   

Morgan Stanley
5.000%, due 06/20/2013

     (5.000%)        06/20/14      Credit Suisse Group AG     0.737%        USD        5,000,000        (209,589)        (322,282)        112,693   

Morgan Stanley
5.000%, due 03/20/2013

     (5.000%)        06/20/14      Credit Suisse Group AG     0.737%        USD        5,000,000        (209,589)        (321,647)        112,058   

Toll Brothers, Inc.
5.150%, due 05/15/2015

     (5.000%)        06/20/15      Credit Suisse Group AG     0.631%        USD        3,000,000        (259,456)        (330,262)        70,806   

Toll Brothers, Inc.
5.150%, due 05/15/2015

     (5.000%)        06/20/15      Credit Suisse Group AG     0.631%        USD        3,000,000        (259,456)        (316,024)        56,568   
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (4,688,464)      $ (5,021,091)      $ 332,627   
             

 

 

    

 

 

    

 

 

  

OTC Credit Default Swaps on corporate and sovereign issues—Sell Protection (d)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Bank of America Corp.
5.000%, due 09/20/2017

     1.000%        09/20/17      Credit Suisse Group AG     1.166%        USD        2,000,000      $ (13,515)      $ (4,498)      $ (9,017)   

Berkshire Hathaway, Inc.
1.000%, due 09/20/2017

     1.000%        09/20/17      Barclays Bank plc     0.905%        USD        6,000,000        23,542        (84,614)        108,156   

Celanese US Holdings LLC
6.500%, 10/13/2016

     1.800%        06/20/16      Credit Suisse Group AG     0.000%        USD        500,000        3,730        —        3,730   

First Data Corp.
5.000%, due 03/20/2016

     5.000%        03/20/16      Barclays Bank plc     4.046%        USD        2,000,000        49,944        (5,000)        54,944   

First Data Corp.
5.000% 03/20/2016

     5.000%        03/20/16      Barclays Bank plc     4.046%        USD        1,000,000        24,972        39,817        (14,845)   

Goodyear Tire & Rubber Co. (The)
5.000% 06/20/2018

     5.000%        06/20/18      Barclays Bank plc     4.343%        USD        500,000        14,531        11,623        2,908   

Goodyear Tire & Rubber Co. (The)
5.000% 06/20/2018

     5.000%        06/20/18      Credit Suisse Group AG     4.343%        USD        2,300,000        66,841        46,871        19,970   

PSEG Power
1.000% due 06/20/2017

     1.000%        06/20/17      Credit Suisse Group AG     0.811%        USD        1,000,000        7,373        (47,638)        55,011   

Republic of Lithuania
4.500%, due 03/05/2013

     1.000%        06/20/16      Credit Suisse Group AG     0.818%        USD        400,000        2,149        (18,566)        20,715   

Safeway, Inc.
1.000% due 09/20/2017

     1.000%        09/20/17      Citibank N.A.     1.640%        USD        650,000        (16,910)        (78,061)        61,151   
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ 162,657      $ (140,066)      $ 302,723   
             

 

 

    

 

 

    

 

 

  

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

OTC Credit Default Swaps on credit indices—Sell Protection (d)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Markit CMBX North America,
Series 2

     1.090%        03/15/49      Credit Suisse Group AG     0.000%        USD        1,100,000      $ (163,559)      $ (165,721)      $ 2,162   

Markit CMBX North America,
Series 2

     1.090%        03/15/49      Credit Suisse Group AG     0.000%        USD        1,200,000        (178,428)        (168,786)        (9,642)   

Markit LCDX North America,
Series 19

     2.500%        12/20/17      Barclays Bank plc     1.123%        USD        2,940,000        96,162        41,454        54,708   

Markit LCDX North America,
Series 19

     2.500%        12/20/17      Barclays Bank plc     1.123%        USD        2,352,000        76,930        32,340        44,590   

Markit LCDX North America,
Series 19

     2.500%        12/20/17      Barclays Bank plc     1.123%        USD        2,352,000        76,930        29,400        47,530   

Markit LCDX North America,
Series 19

     2.500%        12/20/17      Barclays Bank plc     1.123%        USD        2,352,000        76,930        32,340        44,590   

Markit LCDX North America,
Series 20

     2.500%        06/20/18      Barclays Bank plc     1.225%        USD        2,000,000        51,250        80,000        (28,750)   

Markit LCDX North America,
Series 20

     2.500%        06/20/18      Credit Suisse Group AG     1.225%        USD        1,700,000        43,563        44,625        (1,062)   

Markit MCDX North America,
Series 20

     1.000%        06/20/18      Citibank N.A.     1.225%        USD        3,000,000        (51,490)        (21,384)        (30,106)   

Markit MCDX North America,
Series 20

     1.000%        06/20/18      Citibank N.A.     1.225%        USD        3,000,000        (51,491)        (10,792)        (40,699)   
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (23,203)      $ (106,524)      $ 83,321   
             

 

 

    

 

 

    

 

 

  

 

(a) If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(b) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
(c) The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(d) If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(CHF)— Swiss Franc
(CLP)— Chilean Peso
(DKK)— Danish Krone
(EUR)— Euro
(INR)— Indian Rupee
(JPY)— Japanese Yen
(SEK)— Swedish Krona
(SGD)— Singapore Dollar
(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1     Level 2     Level 3      Total  

Total Corporate Bonds & Notes*

    $ —        $ 383,629,015      $ —         $ 383,629,015   

Total U.S. Treasury & Government Agencies*

      —          350,154,573        —           350,154,573   

Total Mortgage-Backed Securities*

      —          99,640,077        —           99,640,077   

Total Foreign Government*

      —          70,706,519        —           70,706,519   

Total Floating Rate Loans*

      —          68,649,094        —           68,649,094   
Asset-Backed Securities          

Asset-Backed - Home Equity

      —          8,985,727        —           8,985,727   

Asset-Backed - Other

      —          29,712,960        1,710,000         31,422,960   

Total Asset-Backed Securities

      —          38,698,687        1,710,000         40,408,687   

Total Municipals

      —          18,680,113        —           18,680,113   

Total Purchased Options*

      —          399,145        —           399,145   

Total Common Stock*

      —          216,000        —           216,000   
Short-Term Investments          

Repurchase Agreement

      —          91,316,000        —           91,316,000   

Foreign Government

      —          1,332,937        —           1,332,937   

Total Short-Term Investments

      —          92,648,937        —           92,648,937   

Total Investments

    $ —        $ 1,123,422,160      $ 1,710,000       $ 1,125,132,160   
                                   
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 1,788,082      $ —         $ 1,788,082   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (1,855,236 )      —           (1,855,236 ) 

Total Forward Contracts

    $ —        $ (67,154 )    $ —         $ (67,154 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 45,077      $ —        $ —         $ 45,077   

Futures Contracts (Unrealized Depreciation)

      (67,379 )      —          —           (67,379 ) 

Total Futures Contracts

    $ (22,302 )    $ —        $ —         $ (22,302 ) 
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Depreciation)

    $ —        $ (1,761 )    $ —         $ (1,761 ) 
OTC Swap Contracts          

OTC Swap Contracts at Value (Assets)

    $ —        $ 619,971      $ —         $ 619,971   

OTC Swap Contracts at Value (Liabilities)

      —          (5,168,981 )      —           (5,168,981 ) 

Total OTC Swap Contracts

    $ —        $ (4,549,010 )    $ —         $ (4,549,010 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

 

Investments in Securities

    Balance as of
December 31,
2012		      Change in
Unrealized
Appreciation/
(Depreciation)		      Purchase      Balance as of
June 30,
2013		      Change in
Unrealized
Appreciation/
(Depreciation)
from investments
still held at
June 30,
2013		  
Asset-Backed Securities               

Asset-Backed - Other

    $ —       $ —       $ 1,710,000.00       $ 1,710,000       $ —   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,120,982,160   

Cash

      2,081,867   

Cash denominated in foreign currencies (c)

      533,348   

Cash collateral (d)

      3,993,937   

Swaps at market value (e)

      619,971   

Unrealized appreciation on forward foreign currency exchange contracts

      1,788,082   

Receivable for:

   

Investments sold

      4,529,886   

Fund shares sold

      1,776,767   

Principal paydowns

      228,633   

Interest

      7,246,635   

Cash collateral on swaps

      430,209   

Swap interest

      29,568   
  

 

 

  

Total Assets

      1,144,241,063   

Liabilities

   

Payables for:

   

Investments purchased

      18,053,700   

Fund shares redeemed

      451,494   

Swaps at market value (f)

      5,168,981   

Unrealized depreciation on forward foreign currency exchange contracts

      1,855,236   

Variation margin payable on swap contracts

      2,916   

Variation margin on futures contracts

      10,203   

Open cash collateral on swaps

      1,230,000   

Swap interest

      92,883   

Accrued expenses:

   

Management fees

      431,540   

Distribution and service fees

      24,815   

Deferred trustees’ fees

      21,608   

Other expenses

      289,692   
  

 

 

  

Total Liabilities

      27,633,068   
  

 

 

  

Net Assets

    $ 1,116,607,995   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,123,370,458   

Undistributed net investment income

      13,615,274   

Accumulated net realized loss

      (17,518,144 ) 

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (2,859,593 ) 
  

 

 

  

Net Assets

    $ 1,116,607,995   
  

 

 

  

Net Assets

   

Class A

    $ 982,281,808   

Class B

      134,326,187   

Capital Shares Outstanding*

   

Class A

      98,862,779   

Class B

      13,559,171   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 9.94   

Class B

      9.91   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,124,449,112.
(b) Investments at value includes unfunded loan commitments of $4,150,000.
(c) Identified cost of cash denominated in foreign currencies was $534,735.
(d) Includes collateral of $3,905,000 for swaps, $1,557 for centrally cleared swaps and $87,380 for futures.
(e) Net premium paid on swaps was $207,150.
(f) Net premium received on swaps was $5,474,831.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Interest (a)

    $ 15,910,638   
  

 

 

  

Total investment income

      15,910,638   

Expenses

   

Management fees

      2,648,175   

Administration fees

      13,474   

Custodian and accounting fees

      183,423   

Distribution and service fees—Class B

      128,069   

Audit and tax services

      43,956   

Legal

      9,770   

Trustees’ fees and expenses

      13,517   

Shareholder reporting

      21,090   

Insurance

      3,014   

Miscellaneous

      5,243   
  

 

 

  

Total expenses

      3,069,731   

Less management fee waiver

      (148,144 ) 
  

 

 

  

Net expenses

      2,921,587   
  

 

 

  

Net Investment Income

      12,989,051   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      2,985,173   

Futures contracts

      (247,449 ) 

Swap contracts

      (1,807,996 ) 

Foreign currency transactions

      2,793,780   
  

 

 

  

Net realized gain

      3,723,508   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (18,271,845 ) 

Futures contracts

      (82,011 ) 

Swap contracts

      1,873,350   

Foreign currency transactions

      (524,455 ) 
  

 

 

  

Net change in unrealized depreciation

      (17,004,961 ) 
  

 

 

  

Net realized and unrealized loss

      (13,281,453 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (292,402 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $54,331.

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 12,989,051      $ 16,050,641   

Net realized gain

      3,723,508        931,185   

Net change in unrealized appreciation (depreciation)

      (17,004,961 )      25,354,775   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (292,402 )      42,336,601   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (17,639,187 )      (18,675,670 ) 

Class B

      (1,756,188 )      (1,332,614 ) 
  

 

 

    

 

 

  

Total distributions

      (19,395,375 )      (20,008,284 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      110,046,429        141,545,050   
  

 

 

    

 

 

  

Total Increase in Net Assets

      90,358,652        163,873,367   

Net Assets

     

Beginning of period

      1,026,249,343        862,375,976   
  

 

 

    

 

 

  

End of period

    $ 1,116,607,995      $ 1,026,249,343   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 13,615,274      $ 20,021,598   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      5,199,844      $ 52,560,461        11,073,616      $ 110,759,964   

Reinvestments

      1,763,919        17,639,187        1,888,339        18,675,670   

Redemptions

      (991,844 )      (9,937,496 )      (2,053,499 )      (20,427,988 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      5,971,919      $ 60,262,152        10,908,456      $ 109,007,646   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      6,432,681      $ 64,431,908        5,347,627      $ 53,337,952   

Reinvestments

      176,147        1,756,188        135,017        1,332,614   

Redemptions

      (1,636,248 )      (16,403,819 )      (2,219,552 )      (22,133,162 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      4,972,580      $ 49,784,277        3,263,092      $ 32,537,404   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 110,046,429        $ 141,545,050   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Financial Highlights

 

Selected per share data                    
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,		  
       2012      2011(a)  

Net Asset Value, Beginning of Period

    $ 10.12      $ 9.88       $ 10.00   
  

 

 

    

 

 

     

 

 

  

Income (Loss) From Investment Operations

        

Net investment income (b)

      0.12        0.17         0.09   

Net realized and unrealized gain (loss) on investments

      (0.12 )      0.29         (0.21 ) 
  

 

 

    

 

 

     

 

 

  

Total from investment operations

      0.00        0.46         (0.12 ) 
  

 

 

    

 

 

     

 

 

  

Less Distributions

        

Distributions from net investment income

      (0.18 )      (0.22 )       0.00   
  

 

 

    

 

 

     

 

 

  

Total distributions

      (0.18 )      (0.22 )       0.00   
  

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.94      $ 10.12       $ 9.88   
  

 

 

    

 

 

     

 

 

  

Total Return (%) (d)

      0.02  (c)      4.67         (1.20 )(c) 

Ratios/Supplemental Data

        

Gross ratio of expenses to average net assets (%)

      0.55  (e)      0.57         0.59  (e) 

Net ratio of expenses to average net assets (%) (f)

      0.52  (e)      0.53         0.56  (e) 

Ratio of net investment income to average net assets (%)

      2.46  (e)      1.70         1.40  (e) 

Portfolio turnover rate (%)

      41  (c)      60         76  (c) 

Net assets, end of period (in millions)

    $ 982.3      $ 939.7       $ 809.9   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,		  
       2012      2011(a)  

Net Asset Value, Beginning of Period

    $ 10.08      $ 9.86       $ 10.00   
  

 

 

    

 

 

     

 

 

  

Income (Loss) From Investment Operations

        

Net investment income (b)

      0.11        0.14         0.09   

Net realized and unrealized gain (loss) on investments

      (0.11 )      0.29         (0.23 ) 
  

 

 

    

 

 

     

 

 

  

Total from investment operations

      0.00        0.43         (0.14 ) 
  

 

 

    

 

 

     

 

 

  

Less Distributions

        

Distributions from net investment income

      (0.17 )      (0.21 )       0.00   
  

 

 

    

 

 

     

 

 

  

Total distributions

      (0.17 )      (0.21 )       0.00   
  

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.91      $ 10.08       $ 9.86   
  

 

 

    

 

 

     

 

 

  

Total Return (%) (d)

      (0.05 )(c)      4.40         (1.40 )(c) 

Ratios/Supplemental Data

        

Gross ratio of expenses to average net assets (%)

      0.80  (e)      0.82         0.84  (e) 

Net ratio of expenses to average net assets (%) (f)

      0.77  (e)      0.78         0.81  (e) 

Ratio of net investment income to average net assets (%)

      2.22  (e)      1.45         1.37  (e) 

Portfolio turnover rate (%)

      41  (c)      60         76  (c) 

Net assets, end of period (in millions)

    $ 134.3      $ 86.6       $ 52.5   

 

(a) Commencement of operations was April 29, 2011.
(b) Per share amounts based on average shares outstanding during the period.
(c) Periods less than one year are not computed on an annualized basis.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Met/Franklin Low Duration Total Return Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered two classes of shares: Class A and B Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-25

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization

 

MIST-26

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, swap transactions, defaulted bonds, premium amortization adjustments and paydown transactions. These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $91,316,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations or an assignment, the Portfolio generally will have no right to enforce compliance by the borrower, with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower and the Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment.

Unfunded Loan Commitments - The Portfolio may enter into certain credit agreements all or a portion of which may be unfunded. The Portfolio is obligated to fund these commitments at the borrower’s discretion. These commitments, if any, are disclosed in the Schedule of Investments. As of June 30, 2013, the Portfolio had open unfunded loan commitments of $4,150,000.

Mortgage Related and Other Asset Backed Securities - The Portfolio may invest in mortgage related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of

 

MIST-27

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

High Yield Debt Securities - The Portfolio may invest in high yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high yield debt securities are less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s Subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

 

MIST-28

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Options Contracts - An option contract purchased by the Portfolio gives the Portfolio the right, but not the obligation, to buy (call) or sell (put) an underlying instrument at a fixed exercise price during a specified period. Call options written by the Portfolio give the holder the right to buy the underlying instrument from the Portfolio at a fixed exercise price; put options written by the Portfolio give the holder the right to sell the underlying instrument to the Portfolio at a fixed exercise price.

The Portfolio may use options to hedge against changes in values of securities the Portfolio owns or expects to purchase, to maintain exposure to the broad equity markets or to enhance return. Writing puts or buying calls tend to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tend to decrease the Portfolio’s exposure to the underlying instrument, and can be used to hedge other Portfolio investments. For options used to hedge the Portfolio’s investments, the potential risk to the Portfolio is that the change in value of options contracts may not correspond perfectly to the change in value of the hedged instruments. The Portfolio also bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Portfolio may not be able to enter into a closing transaction due to an illiquid market. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of purchased options is typically the premium initially paid for the option plus any unrealized gains.

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered a loss. The risk associated with writing a call option is that the Portfolio may forgo the opportunity for a profit if the market value of the underlying instrument increases and the option is exercised, requiring the Portfolio to sell the underlying instrument at a price below its market value. When the Portfolio writes a call option on a security it does not own, its exposure on such an option is theoretically unlimited. The risk in writing a put option is that the Portfolio may incur a loss if the market value of the underlying instrument decreases and the option is exercised, requiring the Portfolio to purchase the underlying instrument at a price above its market value. In addition, the Portfolio risks not being able to enter into a closing transaction for the written option as the result of an illiquid market for the option.

Purchases of put and call options are recorded as investments, the value of which are marked-to-market daily. When a purchased option expires without being exercised, the Portfolio will realize a loss equal to the premium paid. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the premium initially paid for the option. When the Portfolio exercises a put option, it will realize a gain or loss from the sale of the underlying instrument and the proceeds from such sale will be decreased by the premium originally paid for the put option. When the Portfolio exercises a call option, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid for the call option.

The premium received for a written option is recorded as an asset and an equivalent liability. The liability is marked-to-market daily in accordance with the option’s valuation policy. When a written option expires without being exercised or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying instrument and the liability related to such option is eliminated. When a written call option is exercised, the Portfolio realizes a gain or loss, as adjusted for the premium received, from the sale of the underlying instrument. When a written put option is exercised, the premium received is offset against the amount paid for the purchase of the underlying instrument.

The purpose of inflation-capped options is to protect the buyer from inflation, above a specified rate, eroding the value of investments in inflation-linked products with a given notional exposure. Inflation-capped options are used to give downside protection to investments in inflation-linked products by establishing a floor on the value of such products.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains

 

MIST-29

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Credit Default Swaps: The Portfolio is subject to credit risk in the normal course of pursuing its investment objectives. The Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers, or to create exposure to corporate and/or sovereign issuers to which it is not otherwise exposed. Credit default swaps involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return if a credit event occurs for the referenced entity, obligation or index. A credit event is defined under the terms of each swap agreement and may include, but is not limited to, underlying entity default, bankruptcy, write-down, principal shortfall or interest shortfall. As the seller of protection, if an underlying credit event occurs, the Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation (or underlying securities comprising the referenced index), or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). In return, the Portfolio would receive from the counterparty an upfront or periodic stream of payments throughout the life of the credit default swap agreement, provided that no credit event has occurred. As the seller of protection, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the credit default swap.

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may expire worthless and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event, the credit event is settled based on that entities weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less expensive than it would be to buy many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on a credit index or corporate or sovereign issuer serve as some indication of the status of the payment/performance risk and the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity or index also reflects the cost of buying/ selling protection and may reflect upfront payments required to be made to enter into the agreement. Wider credit spreads generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit

 

MIST-30

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

event occurring as defined under the terms of the particular swap agreement. When no implied credit spread is available for a credit default swap, the current unrealized appreciation/depreciation on the position may be used as an indicator of the current status of the payment/performance risk.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of June 30, 2013, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value     

Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate    Unrealized appreciation on futures contracts* (b)    $ 45,077       Unrealized depreciation on futures contracts* (b)    $ 67,379   
Credit    Swaps at market value (c)      619,971       Swaps at market value (c)      5,168,981   
         Unrealized depreciation on centrally cleared swaps** (b)      1,761   
Foreign Exchange    Investments at market value (a) (b)      399,145         
   Unrealized appreciation on forward foreign currency exchange contracts      1,788,082       Unrealized depreciation on forward foreign currency exchange contracts      1,855,236   
     

 

 

        

 

 

  
Total       $ 2,852,275          $ 7,093,357   
     

 

 

        

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.
  ** Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(d)		      Net Amount  

Barclays Bank plc

    $ 549,927       $ (549,927 )    $ —       $ —   

Citibank N.A.

      138,841         (138,841 )      —         —   

Credit Suisse Group AG

      128,780         (128,780 )      —         —   

Deutsche Bank AG

      248,492         (248,492 )      —         —   

Deutsche Bank London

      1,005,627         (958,678 )      —         46,949   

Goldman Sachs & Co.

      114,799         (10,252 )      —         104,547   

HSBC Bank plc

      61,214         (4,931 )      —         56,283   

JPMorgan Chase Bank N.A.

      145,728         (145,728 )      —         —   

Morgan Stanley & Co., Inc.

      14,645         (14,645 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 2,408,053       $ (2,200,274 )    $ —       $ 207,779   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

MIST-31

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged(d)		     Net Amount  

Barclays Bank plc

    $ 929,423       $ (549,927 )    $ —      $ 379,496   

Citibank N.A.

      396,826         (138,841 )      —        257,985   

Credit Suisse Group AG

      3,104,552         (128,780 )      (2,975,000 )      772   

Deutsche Bank AG

      421,216         (248,492 )      —        172,724   

Deutsche Bank London

      958,678         (958,678 )      —        —   

Goldman Sachs & Co.

      10,252         (10,252 )      —        —   

HSBC Bank plc

      4,931         (4,931 )      —        —   

JPMorgan Chase Bank N.A.

      1,030,443         (145,728 )      (884,715 )      —   

Morgan Stanley & Co., Inc.

      167,167         (14,645 )      —        152,522   

UBS AG

      729         —        —        729   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 7,024,217       $ (2,200,274 )    $ (3,859,715 )    $ 964,228   
  

 

 

     

 

 

    

 

 

    

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Credit     Foreign
Exchange		     Total  

Investments (a)

    $ 1,997,850      $ —      $ (24,170 )    $ 1,973,680   

Forward foreign currency transactions

      —        —        2,882,628        2,882,628   

Futures contracts

      (247,449 )      —        —        (247,449 ) 

Swap contracts

      —        (1,807,996 )      —        (1,807,996 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 1,750,401      $ (1,807,996 )    $ 2,858,458      $ 2,800,863   
  

 

 

    

 

 

    

 

 

    

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation
(Depreciation)

    Interest Rate     Credit     Foreign
Exchange		     Total  

Investments (a)

    $ 140,251      $ —      $ (257,161 )    $ (116,910 ) 

Forward foreign currency transactions

      —        —        (430,935 )      (430,935 ) 

Futures contracts

      (82,011 )      —        —        (82,011 ) 

Swap contracts

      —        1,873,350        —        1,873,350   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 58,240      $ 1,873,350      $ (688,096 )    $ 1,243,494   
  

 

 

    

 

 

    

 

 

    

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(e)		  

Investments (a)

    $ 75,785,454   

Forward Foreign currency transactions

      155,197,454   

Futures contracts long

      57,966,667   

Futures contracts short

      20,150,000   

Swap contracts

      95,776,342   

 

  (a) Includes options purchased which are part of investments as shown in the Statement of Assets and Liabilities and net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.
  (b) Financial instrument not subject to a master netting agreement.
  (c) Excludes swap interest receivable of $29,568 and swap interest payable of $92,883.
  (d) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (e) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

 

MIST-32

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$208,897,401    $ 259,608,715       $ 285,116,194       $ 129,233,063   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Franklin Advisers, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

 

MIST-33

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$2,648,175      0.520 %    First $100 million
     0.510 %    $100 million to $250 million
     0.500 %    $250 million to $500 million
     0.490 %    $500 million to $1 billion
     0.470 %    $1 billion to $1.5 billion
     0.450 %    Over $1.5 billion

The subadvisory fee the Adviser pays to the Subadviser in connection with the investment management of the Portfolio is calculated based on the aggregate average daily net assets of the Portfolio and certain other portfolios of the Trust that are managed by the Subadviser and/or its affiliates.

Management Fee Waiver - For the period April 29, 2013 to April 27, 2014, the Adviser has contractually agreed to waive a portion of the management fee reflecting the difference, if any, between the subadvisory fee payable by the Adviser to the Subadviser that was calculated based solely on the assets of the Portfolio and the fee that was calculated when the Portfolio’s assets were aggregated with those of the Met/Templeton International Bond Portfolio, a series of the Trust.

Prior to April 29, 2013, the Adviser contractually agreed, for the period April 30, 2012 to April 28, 2013, to waive a portion of the management fee reflecting the difference, if any, between the subadvisory fee payable by the Adviser to the Subadviser that was calculated based solely on the assets of the Portfolio and the fee that was calculated when the Portfolio’s assets were aggregated with those of the Met/Franklin Income Portfolio, Met/Franklin Mutual Shares Portfolio, Met/Templeton Growth Portfolio and Met/Templeton International Bond Portfolio, each a series of the Trust. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Expense Limitation Agreement - The Adviser has entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement continued in effect with respect to the Portfolio until April 28, 2013. Pursuant to that Expense Limitation Agreement, the Adviser had agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and acquired fund fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, were limited to the following expense ratios as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under current
Expense Limitation Agreement

  

Class A

    Class B  

0.75%

      1.00 % 

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratios for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratios as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred.

Effective April 29, 2013, there was no longer an expense cap for the Portfolio. For the six months ended June 30, 2013, there were no amounts waived or expenses repaid to the Adviser in accordance with the Expense Limitation Agreement.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

 

MIST-34

Met Investors Series Trust

Met/Franklin Low Duration Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$20,008,284    $ —       $ —       $ —       $ 20,008,284       $ —   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$19,175,541    $ —       $ 4,463,243       $ (10,697,237 )    $ 12,941,547   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the post-enactment accumulated capital losses were $10,697,237.

 

MIST-35

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Managed by Franklin Advisers, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the Met/Templeton International Bond Portfolio returned -1.66% and -1.74%, respectively. The Portfolio’s benchmark, the Citigroup World Government Bond Index (WGBI) ex-U.S.1, returned -7.14%.

MARKET ENVIRONMENT / CONDITIONS

The global economic recovery was mixed during the first six months of 2013. Emerging markets continued to lead the recovery with many economies returning to and exceeding pre-crisis activity levels. Although some developed economies, such as those of Australia and some Scandinavian countries, also enjoyed relatively strong recoveries, the United States (U.S.) and the eurozone continued to experience growth that was slow by the standards of previous recoveries. As fears surrounding the issues of sovereign debt in Europe, the possibility of another recession in the U.S., and a potential “hard landing” in China eased, financial market performance was positive. Improving sentiment, relatively strong fundamentals, and continued provision of global liquidity supported risk assets as equity markets performed well and bond prices generally declined. Policymakers in the largest developed economies continued to increase their already unprecedented efforts to supply liquidity. Actions elsewhere in the world were mixed, with some policymakers less willing to reverse previous tightening efforts in response to the external environment.

The still-ongoing eurozone sovereign debt crisis led to periods of risk aversion, when yields declined, equity markets sold off and perceived safe haven assets rallied, alternating with periods of heightened risk appetite, where yields increased and investors again favored risk assets. This was particularly true during the second quarter of 2013, when global financial markets saw a spike in volatility as market participants became concerned about the U.S. Federal Reserve Board potentially scaling back the pace of its monetary easing. Against this backdrop, increased liquidity creation continued, in particular from the Bank of Japan’s commitment to increase inflation. Economic data among the largest economies remained inconsistent with continued dire predictions of a severe global economic slowdown.

PORTFOLIO REVIEW / PERIOD END POSITIONING

As part of the Portfolio’s investment strategy, we used currency forward contracts to hedge or gain exposure to various currencies. Overall, our diversified currency exposure contributed to relative results, but detracted from absolute performance. Among currencies, the Portfolio’s underweighted exposure to the euro benefited relative results, but this effect was partially offset by its overweighted exposure to peripheral European currencies. The Japanese yen depreciated against the U.S. dollar during the year and the Portfolio’s net-negative and underweighted position in the yen helped absolute and relative performance. Conversely, the Portfolio’s currency exposures in Asia ex-Japan detracted from both absolute and relative results. We maintained a defensive posture with respect to interest rate risk in developed and emerging markets. Nevertheless, select duration exposures in Europe contributed to absolute and relative performance. Sovereign credit exposures were largely neutral for absolute and relative results.

At period-end, the Portfolio had a shorter duration position than the benchmark index, a stance arising from our assessment that there is limited scope for further global interest rate reductions. However, we maintained some duration exposure in countries where we believed long-term bond yields could benefit from declining risk premiums. We also built positions in currencies of countries we believed to have attractive medium-term growth prospects and rising short-term interest rate differentials. In particular, we favored Asian, some Latin American and non-euro European currencies. Our net-negative position in the yen reflected our pessimistic view on the relative prospects for the Japanese economy and served as an implicit hedge against potential rising yields in the U.S., given the yen’s historically strong correlation to long-term U.S. Treasury yields.

Michael Hasenstab

Canyon Chan

Portfolio Managers

Franklin Advisers, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-1

Met Investors Series Trust

Met/Templeton International Bond Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE CITIGROUP WORLD GOVERNMENT BOND INDEX (“WGBI”) EX-U.S.

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
Met/Templeton International Bond Portfolio                 

Class A

        -1.66           7.28           8.63   

Class B

        -1.74           6.96           8.37   
Citigroup World Government Bond Index (“WGBI”) ex-U.S.        -7.14           -5.72           3.37   

1 The Citigroup World Government Bond Index (“WGBI”) ex-U.S. is an index of bonds issued by governments primarily in Europe and Asia.

2 Inception of Class A and Class B shares is 5/1/2009. Index returns are based on an inception date of 5/1/2009.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

         
% of
Net Assets		  
Korea Monetary Stabilization Bonds      9.0   
Poland Government Bonds      8.4   
Ireland Government Bonds      8.3   
Mexican Bonos      7.2   
Korea Treasury Bonds      7.1   
Sweden Government Bonds      5.6   
Canadian Government Bonds      4.0   
Indonesia Treasury Bonds      3.3   
Singapore Government Bonds      3.2   
Bank Negara Malaysia Monetary Notes      2.8   

Top Countries

 

     % of
Market Value of
Total Investments		  
South Korea      16.6   
United States      9.8   
Poland      8.7   
Mexico      8.7   
Ireland      8.6   
Sweden      8.0   
Malaysia      4.9   
Canada      4.3   
Australia      4.1   
Hungary      3.9   

 

MIST-2

Met Investors Series Trust

Met/Templeton International Bond Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Met/Templeton International Bond Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

    Actual      0.72 %     $ 1,000.00         $ 983.40         $ 3.54   
   Hypothetical*      0.72 %     $ 1,000.00         $ 1,021.22         $ 3.61   

Class B

    Actual      0.97 %     $ 1,000.00         $ 982.60         $ 4.77   
   Hypothetical*      0.97 %     $ 1,000.00         $ 1,019.98         $ 4.86   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-3

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Foreign Government—87.4% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Australia—4.0%

    

New South Wales Treasury Corp.
5.500%, 08/01/13 (AUD)

     5,175,000      $ 4,743,194   

5.500%, 03/01/17 (AUD)

     12,800,000        12,623,178   

Queensland Treasury Corp.
6.000%, 08/14/13 (AUD)

     6,880,000        6,316,114   

6.000%, 08/21/13 (AUD)

     12,135,000        11,146,107   

6.000%, 09/14/17 (AUD)

     12,500,000        12,601,515   
   

 

 

  
      47,430,108   
   

 

 

  

Brazil—2.7%

    

Brazil Notas do Tesouro Nacional
6.000%, 05/15/15 (BRL)

     13,495,000        14,360,719   

6.000%, 08/15/16 (BRL)

     3,245,000        3,457,229   

6.000%, 08/15/18 (BRL)

     3,075,000        3,304,276   

6.000%, 05/15/45 (BRL)

     6,400,000        7,264,494   

10.000%, 01/01/17 (BRL)

     8,025,000        3,511,515   
   

 

 

  
      31,898,233   
   

 

 

  

Canada—4.1%

    

Canadian Government Bonds
1.000%, 02/01/14 (CAD)

     12,171,000        11,566,905   

1.000%, 11/01/14 (CAD)

     7,165,000        6,796,292   

1.000%, 02/01/15 (CAD)

     17,581,000        16,665,424   

2.000%, 03/01/14 (CAD)

     2,624,000        2,509,679   

2.000%, 12/01/14 (CAD)

     6,372,000        6,127,347   

2.250%, 08/01/14 (CAD)

     2,155,000        2,072,874   

2.500%, 09/01/13 (CAD)

     2,249,000        2,143,211   

Canadian Treasury Bill
0.967%, 08/15/13 (CAD) (a)

     1,420,000        1,348,467   
   

 

 

  
      49,230,199   
   

 

 

  

Hungary—3.8%

    

Hungary Government Bonds
5.500%, 02/12/14 (HUF)

     237,400,000        1,055,980   

5.500%, 02/12/16 (HUF)

     168,700,000        755,994   

6.500%, 06/24/19 (HUF)

     153,000,000        708,818   

6.750%, 08/22/14 (HUF)

     719,960,000        3,265,876   

6.750%, 02/24/17 (HUF)

     153,300,000        712,163   

6.750%, 11/24/17 (HUF)

     753,380,000        3,502,923   

7.000%, 06/24/22 (HUF)

     152,040,000        712,482   

7.500%, 10/24/13 (HUF)

     77,600,000        345,721   

7.500%, 11/12/20 (HUF)

     75,040,000        363,779   

7.750%, 08/24/15 (HUF)

     200,360,000        939,350   

8.000%, 02/12/15 (HUF)

     109,300,000        507,850   

Hungary Government International Bonds
3.875%, 02/24/20 (EUR) (b)

     6,510,000        7,880,746   

4.375%, 07/04/17 (EUR)

     580,000        747,407   

5.750%, 06/11/18 (EUR)

     4,840,000        6,457,357   

6.250%, 01/29/20

     10,995,000        11,489,775   

6.375%, 03/29/21 (b)

     4,058,000        4,220,320   

Hungary Treasury Bills
4.899%, 01/08/14 (HUF) (a)

     61,640,000        265,789   

5.863%, 09/18/13 (HUF) (a)

     274,100,000        1,198,104   

6.351%, 07/24/13 (HUF) (a)

     50,700,000        223,188   
   

 

 

  
      45,353,622   
   

 

 

  

Iceland—0.3%

  

Iceland Government International Bond
5.875%, 05/11/22 (144A)

     3,080,000      $ 3,264,800   
   

 

 

  

Indonesia—3.6%

  

Indonesia Retail Bond
7.950%, 08/15/13 (IDR)

     40,500,000,000        4,085,457   

Indonesia Treasury Bonds
10.000%, 09/15/24 (IDR)

     186,070,000,000        22,272,082   

10.000%, 02/15/28 (IDR)

     34,960,000,000        4,209,508   

12.800%, 06/15/21 (IDR)

     93,010,000,000        12,555,825   
   

 

 

  
      43,122,872   
   

 

 

  

Ireland—8.3%

  

Ireland Government Bonds

    

4.400%, 06/18/19 (EUR)

     1,532,000        2,090,802   

4.500%, 10/18/18 (EUR)

     1,042,000        1,446,568   

4.500%, 04/18/20 (EUR)

     5,387,000        7,320,625   

5.000%, 10/18/20 (EUR)

     25,040,000        34,923,723   

5.400%, 03/13/25 (EUR)

     21,787,510        30,745,319   

5.500%, 10/18/17 (EUR)

     12,324,600        17,734,772   

5.900%, 10/18/19 (EUR) (b)

     3,639,000        5,332,883   
   

 

 

  
      99,594,692   
   

 

 

  

Israel—0.7%

  

Israel Government Bond - Fixed
3.500%, 09/30/13 (ILS)

     31,257,000        8,642,898   
   

 

 

  

Lithuania—1.4%

  

Lithuania Government International Bonds

    

6.125%, 03/09/21 (144A) (b)

     930,000        1,036,950   

6.750%, 01/15/15 (144A)

     7,480,000        7,970,688   

7.375%, 02/11/20 (144A)

     6,420,000        7,623,750   
   

 

 

  
      16,631,388   
   

 

 

  

Malaysia—4.8%

  

Bank Negara Malaysia Monetary Notes

    

2.711%, 05/27/14 (MYR) (a)

     60,000        18,484   

2.713%, 05/20/14 (MYR) (a)

     100,000        30,824   

2.716%, 08/15/13 (MYR) (a)

     3,190,000        1,005,933   

2.716%, 08/27/13 (MYR) (a)

     1,400,000        441,123   

2.717%, 08/06/13 (MYR) (a)

     2,600,000        820,487   

2.717%, 03/27/14 (MYR) (a)

     250,000        77,410   

2.719%, 07/25/13 (MYR) (a)

     690,000        217,959   

2.720%, 07/11/13 (MYR) (a)

     850,000        268,809   

2.720%, 05/20/14 (MYR) (a)

     600,000        184,945   

2.721%, 02/20/14 (MYR) (a)

     7,475,000        2,321,014   

2.721%, 04/24/14 (MYR) (a)

     1,070,000        330,515   

2.722%, 03/27/14 (MYR) (a)

     440,000        136,242   

2.723%, 06/05/14 (MYR) (a)

     780,000        240,117   

2.726%, 05/27/14 (MYR) (a)

     150,000        46,210   

2.727%, 01/16/14 (MYR) (a)

     1,600,000        498,082   

2.727%, 02/18/14 (MYR) (a)

     6,715,000        2,085,374   

2.727%, 02/20/14 (MYR) (a)

     5,375,000        1,668,957   

2.727%, 03/20/14 (MYR) (a)

     420,000        130,111   

2.730%, 02/06/14 (MYR) (a)

     470,000        146,105   

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Foreign Government—(Continued)

 

Security Description   Principal
Amount*		     Value  

Malaysia—(Continued)

  

Bank Negara Malaysia Monetary Notes

    

2.730%, 06/19/14 (MYR) (a)

     4,520,000      $ 1,390,875   

2.731%, 07/25/13 (MYR) (a)

     790,000        249,547   

2.731%, 06/10/14 (MYR) (a)

     6,340,000        1,950,934   

2.732%, 01/16/14 (MYR) (a)

     1,930,000        600,812   

2.732%, 06/05/14 (MYR) (a)

     1,810,000        557,195   

2.734%, 04/03/14 (MYR) (a)

     170,000        52,613   

2.736%, 03/20/14 (MYR) (a)

     260,000        80,545   

2.738%, 06/17/14 (MYR) (a)

     2,970,000        913,407   

2.740%, 07/25/13 (MYR) (a)

     185,000        58,438   

2.740%, 01/09/14 (MYR) (a)

     1,820,000        566,903   

2.740%, 06/03/14 (MYR) (a)

     3,820,000        1,176,942   

2.745%, 12/26/13 (MYR) (a)

     290,000        90,460   

2.746%, 02/25/14 (MYR) (a)

     3,355,000        1,041,309   

2.753%, 02/25/14 (MYR) (a)

     2,015,000        625,406   

2.755%, 04/03/14 (MYR) (a)

     40,000        12,379   

2.758%, 07/11/13 (MYR) (a)

     1,025,000        324,152   

2.758%, 09/17/13 (MYR) (a)

     13,455,000        4,231,458   

2.758%, 09/26/13 (MYR) (a)

     1,050,000        329,972   

2.759%, 05/15/14 (MYR) (a)

     60,000        18,502   

2.760%, 09/05/13 (MYR) (a)

     5,770,000        1,816,386   

2.760%, 05/27/14 (MYR) (a)

     40,000        12,323   

2.762%, 12/05/13 (MYR) (a)

     2,860,000        893,659   

2.766%, 03/13/14 (MYR) (a)

     310,000        96,090   

2.771%, 01/09/14 (MYR) (a)

     75,000        23,361   

2.772%, 11/12/13 (MYR) (a)

     60,000        18,783   

2.774%, 11/19/13 (MYR) (a)

     100,000        31,288   

2.777%, 06/05/14 (MYR) (a)

     960,000        295,529   

2.778%, 12/19/13 (MYR) (a)

     630,000        196,630   

2.778%, 06/10/14 (MYR) (a)

     240,000        73,852   

2.780%, 12/05/13 (MYR) (a)

     90,000        28,122   

2.781%, 03/20/14 (MYR) (a)

     370,000        114,621   

2.782%, 11/26/13 (MYR) (a)

     1,000,000        312,698   

2.782%, 12/10/13 (MYR) (a)

     120,000        37,481   

2.784%, 12/05/13 (MYR) (a)

     215,000        67,181   

2.784%, 03/13/14 (MYR) (a)

     105,000        32,547   

2.790%, 01/09/14 (MYR) (a)

     240,000        74,757   

2.793%, 09/26/13 (MYR) (a)

     9,600,000        3,016,883   

2.795%, 11/26/13 (MYR) (a)

     300,000        93,809   

2.804%, 12/31/13 (MYR) (a)

     175,000        54,566   

2.823%, 06/19/14 (MYR) (a)

     2,400,000        738,517   

2.833%, 09/05/13 (MYR) (a)

     380,000        119,623   

2.852%, 11/12/13 (MYR) (a)

     580,000        181,572   

2.862%, 10/08/13 (MYR) (a)

     80,000        25,116   

Malaysia Government Bonds

    

3.197%, 10/15/15 (MYR)

     2,825,000        892,043   

3.434%, 08/15/14 (MYR)

     13,100,000        4,160,912   

3.461%, 07/31/13 (MYR)

     2,205,000        698,091   

3.741%, 02/27/15 (MYR)

     18,340,000        5,855,629   

3.835%, 08/12/15 (MYR)

     13,165,000        4,212,054   

4.720%, 09/30/15 (MYR)

     24,290,000        7,941,043   

8.000%, 10/30/13 (MYR)

     10,000        3,217   
   

 

 

  
      57,058,933   
   

 

 

  

Mexico—8.4%

  

Mexican Bonos

    

6.000%, 06/18/15 (MXN)

     133,665,000      $ 10,626,684   

6.250%, 06/16/16 (MXN)

     27,588,000        2,232,402   

7.000%, 06/19/14 (MXN)

     14,591,000        1,157,445   

7.750%, 12/14/17 (MXN)

     195,000,000        16,594,304   

8.000%, 12/19/13 (MXN)

     578,394,000        45,457,904   

8.000%, 12/17/15 (MXN)

     83,978,000        7,008,488   

9.500%, 12/18/14 (MXN)

     38,610,000        3,202,066   

Mexican Udibonos

    

2.500%, 12/10/20 (MXN)

     12,176,363        958,318   

3.500%, 12/14/17 (MXN)

     22,490,867        1,873,827   

4.000%, 06/13/19 (MXN)

     15,424,714        1,321,215   

4.500%, 12/18/14 (MXN)

     8,781,936        717,962   

5.000%, 06/16/16 (MXN)

     22,485,915        1,924,849   

Mexico Cetes

    

3.594%, 04/30/14 (MXN) (a)

     77,180,000        576,028   

3.617%, 01/09/14 (MXN) (a)

     77,180,000        583,121   

3.628%, 04/03/14 (MXN) (a)

     77,180,000        577,749   

3.743%, 10/31/13 (MXN) (a)

     115,770,000        881,490   

3.775%, 04/30/14 (MXN) (a)

     178,290,000        1,330,655   

3.845%, 04/30/14 (MXN) (a)

     183,690,000        1,370,958   

3.901%, 01/09/14 (MXN) (a)

     317,319,000        2,397,453   
   

 

 

  
      100,792,918   
   

 

 

  

Norway—2.1%

  

Norway Treasury Bill
1.493%, 09/18/13 (NOK) (a)

     154,742,000        25,388,046   
   

 

 

  

Peru—0.2%

  

Peru Government Bond
7.840%, 08/12/20 (PEN)

     5,663,000        2,342,756   
   

 

 

  

Philippines—0.1%

  

Philippine Treasury Bill
0.537%, 11/13/13 (PHP) (a)

     43,220,000        995,441   
   

 

 

  

Poland—8.4%

  

Poland Government Bonds

    

Zero Coupon, 07/25/13 (PLN)

     2,285,000        686,318   

Zero Coupon, 01/25/14 (PLN)

     19,150,000        5,672,900   

Zero Coupon, 07/25/14 (PLN)

     9,090,000        2,656,117   

Zero Coupon, 07/25/15 (PLN)

     65,365,000        18,476,182   

Zero Coupon, 01/25/16 (PLN)

     15,667,000        4,346,253   

3.980%, 01/25/17 (PLN) (c)

     28,518,000        8,522,700   

3.980%, 01/25/21 (PLN) (c)

     28,929,000        8,391,299   

5.000%, 10/24/13 (PLN)

     52,720,000        15,968,954   

5.500%, 04/25/15 (PLN)

     8,411,000        2,639,971   

5.750%, 04/25/14 (PLN)

     52,875,000        16,274,494   

6.250%, 10/24/15 (PLN)

     53,896,000        17,313,808   
   

 

 

  
      100,948,996   
   

 

 

  

Russia—1.8%

  

Russian Foreign Bond - Eurobond
7.500%, 03/31/30 (144A) (d)

     18,774,000        21,989,048   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Foreign Government—(Continued)

 

Security Description   Principal
Amount*		     Value  

Serbia—0.7%

  

Republic of Serbia
4.875%, 02/25/20 (144A)

     3,150,000      $ 2,866,500   

5.250%, 11/21/17 (144A)

     1,720,000        1,677,000   

7.250%, 09/28/21 (144A)

     3,740,000        3,852,200   
   

 

 

  
      8,395,700   
   

 

 

  

Singapore—3.2%

  

Singapore Government Bonds
0.250%, 02/01/14 (SGD)

     23,435,000        18,487,673   

3.625%, 07/01/14 (SGD)

     23,750,000        19,367,858   
   

 

 

  
      37,855,531   
   

 

 

  

Slovenia—0.4%

  

Slovenia Government International Bonds
5.500%, 10/26/22 (144A)

     3,200,000        2,944,000   

5.850%, 05/10/23 (144A) (b)

     1,850,000        1,720,500   
   

 

 

  
      4,664,500   
   

 

 

  

South Korea—16.0%

    

Korea Monetary Stabilization Bonds

    

2.334%, 08/13/13 (KRW) (a)

     4,153,300,000        3,625,650   

2.370%, 09/10/13 (KRW) (a)

     8,134,600,000        7,121,481   

2.470%, 04/02/15 (KRW)

     40,784,600,000        35,494,976   

2.550%, 05/09/14 (KRW)

     3,709,900,000        3,256,805   

2.570%, 06/09/14 (KRW)

     8,226,000,000        7,193,279   

2.740%, 02/02/15 (KRW)

     481,310,000        420,935   

2.760%, 06/02/15 (KRW)

     6,555,600,000        5,731,938   

2.780%, 10/02/14 (KRW)

     2,536,400,000        2,221,805   

2.820%, 08/02/14 (KRW)

     636,300,000        557,820   

2.840%, 12/02/14 (KRW)

     1,407,530,000        1,233,519   

3.280%, 06/02/14 (KRW)

     9,018,300,000        7,939,871   

3.470%, 02/02/14 (KRW)

     5,175,740,000        4,553,006   

3.480%, 12/02/13 (KRW)

     3,764,160,000        3,307,629   

3.590%, 10/02/13 (KRW)

     2,195,770,000        1,927,379   

3.590%, 04/02/14 (KRW)

     7,606,760,000        6,705,738   

3.900%, 08/02/13 (KRW)

     18,102,610,000        15,867,907   

Korea Treasury Bonds

    

2.750%, 12/10/15 (KRW)

     11,222,000,000        9,795,414   

3.000%, 12/10/13 (KRW)

     80,949,800,000        70,999,081   

3.250%, 12/10/14 (KRW)

     2,150,000,000        1,895,166   

3.250%, 06/10/15 (KRW)

     2,412,300,000        2,127,997   
   

 

 

  
      191,977,396   
   

 

 

  

Sri Lanka—1.2%

    

Sri Lanka Government Bonds

    

6.400%, 08/01/16 (LKR)

     56,200,000        378,477   

6.400%, 10/01/16 (LKR)

     35,400,000        237,192   

6.500%, 07/15/15 (LKR)

     80,900,000        570,125   

6.600%, 06/01/14 (LKR)

     29,200,000        215,814   

7.000%, 03/01/14 (LKR)

     900,000        6,734   

7.500%, 08/01/13 (LKR)

     131,000,000        1,002,353   

8.000%, 11/15/18 (LKR)

     31,300,000        208,046   

8.500%, 07/15/13 (LKR)

     45,100,000        345,753   

8.500%, 04/01/18 (LKR)

     79,670,000        548,401   

8.500%, 06/01/18 (LKR)

     1,410,000        9,674   

8.500%, 07/15/18 (LKR)

     45,000,000        308,933   

Sri Lanka—(Continued)

  

Sri Lanka Government Bonds

    

9.000%, 05/01/21 (LKR)

     3,530,000      $ 23,504   

11.000%, 08/01/15 (LKR)

     522,600,000        3,992,299   

11.000%, 09/01/15 (LKR)

     762,125,000        5,820,630   

11.750%, 04/01/14 (LKR)

     890,000        6,825   

11.750%, 03/15/15 (LKR)

     11,590,000        89,897   

Sri Lanka Treasury Bills

    

10.764%, 10/11/13 (LKR) (a)

     20,000,000        149,669   

11.426%, 08/02/13 (LKR) (a)

     13,990,000        106,492   
   

 

 

  
      14,020,818   
   

 

 

  

Sweden—7.8%

    

Export-Import Bank of Korea
1.450%, 05/19/14 (144A) (SEK)

     25,960,000        3,871,180   

Kommuninvest I Sverige AB
2.250%, 05/05/14 (SEK)

     125,580,000        18,894,228   

Sweden Government Bonds
1.500%, 08/30/13 (SEK)

     164,060,000        24,485,822   

6.750%, 05/05/14 (SEK)

     270,210,000        42,245,934   

Sweden Treasury Bill
0.871%, 12/18/13 (SEK) (a)

     23,740,000        3,524,484   
   

 

 

  
      93,021,648   
   

 

 

  

Ukraine—2.6%

    

Financing of Infrastrucural Projects State Enterprise
7.400%, 04/20/18 (144A)

     400,000        348,203   

8.375%, 11/03/17 (144A) (b)

     440,000        404,800   

Ukraine Government International Bonds
4.950%, 10/13/15 (144A) (EUR)

     150,000        186,461   

6.250%, 06/17/16 (144A) (b)

     3,440,000        3,190,600   

6.580%, 11/21/16 (144A)

     5,050,000        4,683,875   

7.750%, 09/23/20 (144A)

     6,949,000        6,340,962   

7.800%, 11/28/22 (144A) (b)

     1,760,000        1,570,800   

7.950%, 02/23/21 (144A) (b)

     9,704,000        8,927,680   

9.250%, 07/24/17 (144A)

     5,650,000        5,635,875   
   

 

 

  
      31,289,256   
   

 

 

  

Venezuela—0.3%

    

Venezuela Government International Bond
10.750%, 09/19/13

     3,985,000        3,994,963   
   

 

 

  

Vietnam—0.5%

    

Vietnam Government International Bond
6.750%, 01/29/20 (144A) (b)

     5,080,000        5,384,800   
   

 

 

  

Total Foreign Government
(Cost $1,031,144,702)

       1,045,289,562   
   

 

 

  
Short-Term Investments—11.1%   

Discount Notes—7.1%

    

Federal Home Loan Bank Discount Notes
0.010%, 07/01/13 (a)

     25,000,000        25,000,000   

0.020%, 07/08/13 (a)

     60,025,000        60,024,767   
   

 

 

  
      85,024,767   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Short-Term Investments—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Mutual Fund—1.7%

  

State Street Navigator Securities Lending MET Portfolio (e)

     19,900,268      $ 19,900,268   
   

 

 

  

Repurchase Agreement—2.3%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $28,159,023 on 07/01/13, collateralized by $26,235,000 Federal National Mortgage Association at 4.375% due 10/15/15 with a value of $28,727,325.

     28,159,000        28,159,000   
   

 

 

  

Total Short-Term Investments
(Cost $133,084,035)

       133,084,035   
   

 

 

  

Total Investments—98.5%
(Cost $1,164,228,737) (f)

       1,178,373,597   

Other assets and liabilities (net)—1.5%

       18,087,741   
   

 

 

  
Net Assets—100.0%     $ 1,196,461,338   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $18,958,668 and the collateral received consisted of cash in the amount of $19,900,268. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(d) Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.
(e) Represents investment of cash collateral received from securities lending transactions.
(f) As of June 30, 2013, the aggregate cost of investments was $1,164,228,737. The aggregate unrealized appreciation and depreciation of investments were $49,415,393 and $(35,270,533), respectively, resulting in net unrealized appreciation of $14,144,860.
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $95,490,672, which is 8.0% of net assets.
(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(EUR)— Euro
(HUF)— Hungarian Forint
(IDR)— Indonesian Rupiah
(ILS)— Israeli Shekel
(KRW)— South Korea Won
(LKR)— Sri Lankan Rupee
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(NOK)— Norwegian Krone
(PEN)— Peruvian Nuevo Sol
(PHP)— Philippine Peso
(PLN)— Polish Zloty
(SEK)— Swedish Krona
(SGD)— Singapore Dollar

 

Top Industries as of
June 30, 2013 (Unaudited)

   

% of
Net Assets

  

Global Government Investment Grade

      63.0   

Global Government High Yield

      18.2   
  

 

 

  
     81.2   
  

 

 

  

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

    Settlement
Date		    In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
CLP      753,400,000       Morgan Stanley & Co., Inc.    08/01/13      USD         1,562,585       $ (87,499 ) 
CLP      376,530,000       Morgan Stanley & Co., Inc.    08/22/13      USD         777,232         (42,274 ) 
CLP      864,300,000       Morgan Stanley & Co., Inc.    01/13/14      USD         1,756,172         (97,981 ) 
CLP      438,100,000       Barclays Bank plc    02/11/14      USD         888,281         (50,231 ) 
CLP      438,900,000       Deutsche Bank AG    02/12/14      USD         888,642         (49,146 ) 
CLP      370,000,000       Deutsche Bank AG    02/14/14      USD         750,553         (42,987 ) 
CLP      993,900,000       Morgan Stanley & Co., Inc.    02/14/14      USD         2,010,519         (109,844 ) 
CLP      433,400,000       Deutsche Bank AG    02/18/14      USD         879,054         (50,580 ) 
CLP      405,100,000       JPMorgan Chase Bank N.A.    02/21/14      USD         823,374         (49,232 ) 
CLP      687,600,000       JPMorgan Chase Bank N.A.    02/24/14      USD         1,394,867         (81,268 ) 
CLP      488,550,000       Morgan Stanley & Co., Inc.    02/24/14      USD         988,268         (54,936 ) 
CLP      360,850,000       Deutsche Bank AG    02/25/14      USD         729,580         (40,277 ) 
CLP      245,250,000       Deutsche Bank AG    02/26/14      USD         495,454         (27,020 ) 
CLP      313,500,000       Morgan Stanley & Co., Inc.    02/26/14      USD         633,782         (34,988 ) 
CLP      303,150,000       Deutsche Bank AG    02/27/14      USD         612,919         (33,953 ) 
CLP      303,150,000       Deutsche Bank AG    02/28/14      USD         612,078         (33,170 ) 

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Buy

     

Counterparty

    Settlement
Date		    In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
CLP      246,100,000       JPMorgan Chase Bank N.A.    02/28/14      USD         497,524       $ (27,561 ) 
CLP      39,050,000       Deutsche Bank AG    03/03/14      USD         78,897         (4,348 ) 
CLP      1,155,000,000       Barclays Bank plc    03/05/14      USD         2,332,156         (127,630 ) 
CLP      39,050,000       Deutsche Bank AG    03/05/14      USD         78,682         (4,148 ) 
CLP      113,400,000       Morgan Stanley & Co., Inc.    03/10/14      USD         229,091         (12,756 ) 
CLP      408,600,000       JPMorgan Chase Bank N.A.    03/21/14      USD         826,289         (47,657 ) 
CLP      1,182,768,000       Deutsche Bank AG    05/09/14      USD         2,406,691         (163,673 ) 
CLP      8,066,295,000       Deutsche Bank AG    05/09/14      USD         16,413,257         (1,116,221 ) 
CLP      9,313,680,000       JPMorgan Chase Bank N.A.    05/09/14      USD         18,964,936         (1,302,342 ) 
CLP      440,900,000       Morgan Stanley & Co., Inc.    05/12/14      USD         894,320         (58,437 ) 
INR      14,658,000       JPMorgan Chase Bank N.A.    07/22/13      USD         267,861         (22,078 ) 
INR      39,449,500       Deutsche Bank AG    07/29/13      USD         718,354         (57,696 ) 
INR      80,751,000       HSBC Bank plc    07/29/13      USD         1,469,764         (117,432 ) 
INR      120,290,000       HSBC Bank plc    07/29/13      USD         2,186,157         (171,668 ) 
INR      8,330,700       Deutsche Bank AG    07/31/13      USD         138,260         1,204   
INR      166,621,000       Deutsche Bank AG    07/31/13      USD         3,026,528         (237,132 ) 
INR      1,228,565,000       HSBC Bank plc    08/12/13      USD         22,431,349         (1,905,930 ) 
INR      24,992,000       Deutsche Bank AG    08/28/13      USD         439,683         (23,268 ) 
INR      30,450,000       HSBC Bank plc    08/28/13      USD         539,248         (31,892 ) 
INR      8,330,700       Deutsche Bank AG    08/30/13      USD         137,518         1,241   
INR      39,449,500       HSBC Bank plc    08/30/13      USD         697,357         (40,273 ) 
INR      35,346,000       Deutsche Bank AG    09/06/13      USD         614,795         (26,727 ) 
INR      27,220,000       HSBC Bank plc    09/27/13      USD         446,934         4,479   
INR      8,330,700       Deutsche Bank AG    09/30/13      USD         136,818         1,274   
JPY      330,341,000       Barclays Bank plc    07/02/13      USD         3,380,918         (50,196 ) 
KRW      2,328,000,000       HSBC Bank plc    09/26/13      USD         2,049,656         (18,973 ) 
KRW      2,321,000,000       Deutsche Bank AG    06/27/14      USD         1,986,647         23,573   
MXN      35,485,000       Deutsche Bank AG    10/11/13      USD         2,669,349         45,007   
MXN      16,965,000       HSBC Bank plc    03/10/14      USD         1,291,391         (9,951 ) 
MYR      10,421,193       HSBC Bank plc    08/27/13      USD         3,309,786         (23,437 ) 
MYR      7,165,900       JPMorgan Chase Bank N.A.    08/27/13      USD         2,276,334         (16,550 ) 
MYR      21,469,000       HSBC Bank plc    10/01/13      USD         6,868,981         (113,474 ) 
MYR      58,458,531       JPMorgan Chase Bank N.A.    10/16/13      USD         18,655,986         (274,534 ) 
MYR      3,043,000       JPMorgan Chase Bank N.A.    10/18/13      USD         979,559         (22,821 ) 
MYR      5,541,000       HSBC Bank plc    10/22/13      USD         1,798,910         (57,114 ) 
MYR      4,132,000       Deutsche Bank AG    10/23/13      USD         1,332,689         (33,869 ) 
MYR      2,756,789       HSBC Bank plc    10/24/13      USD         889,000         (22,494 ) 
MYR      2,837,000       JPMorgan Chase Bank N.A.    10/31/13      USD         916,255         (24,831 ) 
MYR      2,742,080       Deutsche Bank AG    11/19/13      USD         880,000         (19,172 ) 
MYR      1,632,000       HSBC Bank plc    11/20/13      USD         522,872         (10,559 ) 
MYR      27,560,000       JPMorgan Chase Bank N.A.    01/02/14      USD         8,622,470         11,615   
MYR      3,409,400       Deutsche Bank AG    01/08/14      USD         1,102,188         (34,426 ) 
MYR      697,000       JPMorgan Chase Bank N.A.    01/16/14      USD         227,147         (8,953 ) 
MYR      4,429,000       JPMorgan Chase Bank N.A.    01/30/14      USD         1,425,949         (40,511 ) 
MYR      3,758,000       JPMorgan Chase Bank N.A.    02/04/14      USD         1,193,584         (18,358 ) 
MYR      7,610,828       HSBC Bank plc    02/06/14      USD         2,399,000         (19,150 ) 
MYR      50,424,120       JPMorgan Chase Bank N.A.    05/14/14      USD         16,703,919         (1,005,815 ) 
MYR      99,141,840       HSBC Bank plc    06/06/14      USD         31,426,709         (586,008 ) 
PHP      62,498,000       Deutsche Bank AG    09/24/13      USD         1,495,096         (49,888 ) 
PHP      22,900,000       HSBC Bank plc    09/30/13      USD         546,044         (16,529 ) 
PHP      18,300,000       HSBC Bank plc    10/03/13      USD         438,734         (15,623 ) 
PHP      75,232,000       Deutsche Bank AG    10/04/13      USD         1,799,808         (60,457 ) 
PHP      60,346,000       HSBC Bank plc    10/04/13      USD         1,446,661         (51,471 ) 
PHP      89,969,000       HSBC Bank plc    10/07/13      USD         2,163,289         (83,480 ) 
PHP      51,894,000       HSBC Bank plc    10/11/13      USD         1,248,622         (49,191 ) 
PHP      29,478,000       JPMorgan Chase Bank N.A.    10/11/13      USD         709,612         (28,284 ) 
PHP      17,593,000       Deutsche Bank AG    10/16/13      USD         422,715         (16,171 ) 

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Buy

     

Counterparty

    Settlement
Date		    In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
SGD      12,676,300       JPMorgan Chase Bank N.A.    07/31/13      USD         10,161,363       $ (159,747 ) 
SGD      10,161,130       Morgan Stanley & Co., Inc.    08/01/13      USD         8,168,111         (150,951 ) 
SGD      7,822,083       Deutsche Bank AG    08/06/13      USD         6,281,789         (110,100 ) 
SGD      2,353,000       Deutsche Bank AG    08/07/13      USD         1,902,798         (46,259 ) 
SGD      4,687,000       Deutsche Bank AG    08/12/13      USD         3,789,618         (91,509 ) 
SGD      8,472,703       Barclays Bank plc    08/13/13      USD         6,842,758         (157,667 ) 
SGD      1,398,000       HSBC Bank plc    08/15/13      USD         1,122,811         (19,765 ) 
SGD      1,863,000       Barclays Bank plc    08/19/13      USD         1,505,941         (35,995 ) 
SGD      2,796,000       Deutsche Bank AG    08/19/13      USD         2,264,518         (58,415 ) 
SGD      1,398,000       HSBC Bank plc    08/19/13      USD         1,122,891         (19,840 ) 
SGD      1,821,000       Deutsche Bank AG    08/26/13      USD         1,469,793         (32,973 ) 
SGD      1,827,000       Deutsche Bank AG    08/26/13      USD         1,463,474         (21,920 ) 
SGD      2,274,000       Deutsche Bank AG    08/27/13      USD         1,832,245         (37,994 ) 
SGD      1,138,500       Deutsche Bank AG    08/30/13      USD         911,019         (12,706 ) 
SGD      3,051,000       Deutsche Bank AG    09/19/13      USD         2,444,320         (36,857 ) 
SGD      2,180,000       JPMorgan Chase Bank N.A.    09/19/13      USD         1,782,211         (62,031 ) 
SGD      2,190,000       JPMorgan Chase Bank N.A.    10/21/13      USD         1,769,697         (41,500 ) 
SGD      3,014,189       Morgan Stanley & Co., Inc.    11/08/13      USD         2,447,774         (69,107 ) 
SGD      3,284,900       Deutsche Bank AG    12/23/13      USD         2,615,366         (22,855 ) 
SGD      2,353,000       HSBC Bank plc    02/07/14      USD         1,902,029         (44,930 ) 
SGD      1,138,500       Deutsche Bank AG    02/28/14      USD         919,851         (21,285 ) 
SGD      4,013,100       HSBC Bank plc    03/14/14      USD         3,217,688         (50,311 ) 
SGD      3,488,000       HSBC Bank plc    03/19/14      USD         2,795,880         (42,937 ) 
SGD      3,002,184       Deutsche Bank AG    05/06/14      USD         2,432,642         (63,050 ) 
SGD      2,625,000       HSBC Bank plc    06/20/14      USD         2,084,988         (13,023 ) 

Contracts to Deliver

                          
EUR      776,000       Barclays Bank plc    07/16/13      USD         950,833       $ (59,303 ) 
EUR      3,154,000       Morgan Stanley & Co., Inc.    07/16/13      USD         3,865,132         (240,498 ) 
EUR      716,000       Morgan Stanley & Co., Inc.    07/16/13      USD         877,437         (54,596 ) 
EUR      3,585,000       UBS AG    07/16/13      USD         4,393,059         (273,613 ) 
EUR      1,218,000       Barclays Bank plc    07/18/13      USD         1,499,297         (86,213 ) 
EUR      3,585,000       UBS AG    07/18/13      USD         4,409,908         (256,801 ) 
EUR      913,000       Barclays Bank plc    07/19/13      USD         1,127,555         (60,931 ) 
EUR      670,000       Deutsche Bank AG    07/22/13      USD         825,745         (46,429 ) 
EUR      4,966,000       Morgan Stanley & Co., Inc.    07/22/13      USD         6,120,471         (344,033 ) 
EUR      609,000       Deutsche Bank AG    07/23/13      USD         749,582         (43,189 ) 
EUR      799,500       Citibank N.A.    07/26/13      USD         1,037,831         (2,937 ) 
EUR      5,010,000       Deutsche Bank AG    07/31/13      USD         6,228,432         (293,582 ) 
EUR      5,010,000       JPMorgan Chase Bank N.A.    07/31/13      USD         6,220,416         (301,598 ) 
EUR      97,460       Barclays Bank plc    08/01/13      USD         119,876         (6,998 ) 
EUR      48,862       Barclays Bank plc    08/01/13      USD         60,150         (3,459 ) 
EUR      5,009,000       UBS AG    08/01/13      USD         6,165,077         (355,661 ) 
EUR      5,009,000       HSBC Bank plc    08/02/13      USD         6,197,886         (322,877 ) 
EUR      5,012,330       Barclays Bank plc    08/05/13      USD         6,805,892         280,704   
EUR      1,143,798       Barclays Bank plc    08/05/13      USD         1,414,014         (75,013 ) 
EUR      1,362,600       JPMorgan Chase Bank N.A.    08/06/13      USD         1,665,949         (107,929 ) 
EUR      502,668       Citibank N.A.    08/08/13      USD         627,420         (26,976 ) 
EUR      146,742       Citibank N.A.    08/09/13      USD         183,385         (7,651 ) 
EUR      1,943,000       Deutsche Bank AG    08/09/13      USD         2,428,089         (101,407 ) 
EUR      2,537,900       JPMorgan Chase Bank N.A.    08/09/13      USD         3,167,655         (136,313 ) 
EUR      900,000       Goldman Sachs & Co.    08/12/13      USD         1,117,665         (54,017 ) 
EUR      1,710,000       Goldman Sachs & Co.    08/14/13      USD         2,116,809         (109,407 ) 
EUR      650,000       Morgan Stanley & Co., Inc.    08/15/13      USD         828,279         (17,948 ) 
EUR      2,080,000       Barclays Bank plc    08/16/13      USD         2,581,831         (126,105 ) 
EUR      2,341,000       Barclays Bank plc    08/19/13      USD         2,887,097         (160,675 ) 

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		    In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
EUR      2,080,000       Barclays Bank plc    08/20/13      USD         2,574,832       $ (133,154 ) 
EUR      1,313,000       Deutsche Bank AG    08/20/13      USD         1,625,982         (83,434 ) 
EUR      2,600,000       JPMorgan Chase Bank N.A.    08/20/13      USD         3,231,722         (153,260 ) 
EUR      4,541,000       UBS AG    08/22/13      USD         5,620,169         (291,887 ) 
EUR      698,541       Barclays Bank plc    08/23/13      USD         874,713         (34,741 ) 
EUR      416,915       Barclays Bank plc    08/23/13      USD         522,061         (20,735 ) 
EUR      2,704,732       Barclays Bank plc    08/26/13      USD         3,388,596         (132,835 ) 
EUR      421,287       Deutsche Bank AG    08/28/13      USD         529,497         (19,004 ) 
EUR      19,595       Deutsche Bank AG    08/28/13      USD         24,628         (884 ) 
EUR      225,000       Deutsche Bank AG    09/04/13      USD         283,894         (9,058 ) 
EUR      429,852       Barclays Bank plc    09/10/13      USD         544,171         (15,515 ) 
EUR      495,000       Deutsche Bank AG    09/10/13      USD         625,769         (18,742 ) 
EUR      1,516,100       Deutsche Bank AG    09/11/13      USD         1,947,279         (26,758 ) 
EUR      421,332       Barclays Bank plc    09/12/13      USD         540,856         (7,742 ) 
EUR      225,000       JPMorgan Chase Bank N.A.    09/13/13      USD         290,250         (2,714 ) 
EUR      1,201,923       Barclays Bank plc    09/16/13      USD         1,556,070         (8,930 ) 
EUR      1,120,359       UBS AG    09/17/13      USD         1,449,520         (9,284 ) 
EUR      281,896       Barclays Bank plc    09/19/13      USD         371,342         4,285   
EUR      685,747       Barclays Bank plc    09/24/13      USD         891,320         (1,611 ) 
EUR      3,307,000       Deutsche Bank AG    09/24/13      USD         4,295,363         (10,780 ) 
EUR      1,538,000       Deutsche Bank AG    09/26/13      USD         1,992,495         (10,200 ) 
EUR      3,630,000       Barclays Bank plc    09/27/13      USD         4,723,538         (3,261 ) 
EUR      4,440,000       Deutsche Bank AG    09/30/13      USD         5,732,362         (49,260 ) 
EUR      1,620,000       HSBC Bank plc    09/30/13      USD         2,084,098         (25,413 ) 
EUR      1,200,000       Morgan Stanley & Co., Inc.    09/30/13      USD         1,545,900         (16,700 ) 
EUR      2,310,000       UBS AG    10/07/13      USD         2,991,750         (16,365 ) 
EUR      3,220,000       UBS AG    10/09/13      USD         4,207,896         14,721   
EUR      3,217,000       UBS AG    10/11/13      USD         4,175,184         (14,129 ) 
EUR      268,031       Barclays Bank plc    10/25/13      USD         349,625         558   
EUR      8,218,000       Deutsche Bank AG    10/29/13      USD         10,705,589         2,735   
EUR      4,118,000       UBS AG    10/29/13      USD         5,368,019         4,871   
EUR      1,370,039       Deutsche Bank AG    10/31/13      USD         1,773,139         (11,174 ) 
EUR      92,609       Deutsche Bank AG    11/04/13      USD         120,854         239   
EUR      652,963       Barclays Bank plc    11/05/13      USD         850,034         (396 ) 
EUR      1,990,000       Deutsche Bank AG    11/05/13      USD         2,591,040         (768 ) 
EUR      1,525,000       Deutsche Bank AG    11/08/13      USD         1,959,625         (26,591 ) 
EUR      413,121       JPMorgan Chase Bank N.A.    11/12/13      USD         528,991         (9,084 ) 
EUR      309,733       Deutsche Bank AG    11/15/13      USD         395,412         (8,011 ) 
EUR      650,000       Morgan Stanley & Co., Inc.    11/15/13      USD         829,286         (17,329 ) 
EUR      86,267       Deutsche Bank AG    11/19/13      USD         110,831         (1,533 ) 
EUR      1,287,000       Deutsche Bank AG    11/20/13      USD         1,647,875         (28,469 ) 
EUR      302,256       JPMorgan Chase Bank N.A.    11/20/13      USD         385,865         (7,830 ) 
EUR      1,380,000       Deutsche Bank AG    12/03/13      USD         1,799,458         1,855   
EUR      263,000       UBS AG    12/09/13      USD         345,266         2,669   
EUR      1,340,000       JPMorgan Chase Bank N.A.    12/13/13      USD         1,749,122         3,531   
EUR      16,117,434       Deutsche Bank AG    01/07/14      USD         21,181,532         182,754   
EUR      8,953,000       UBS AG    01/13/14      USD         11,726,013         61,050   
EUR      1,858,400       Citibank N.A.    01/28/14      USD         2,487,412         65,850   
EUR      2,553,000       Citibank N.A.    02/10/14      USD         3,457,196         130,268   
EUR      419,000       HSBC Bank plc    02/10/14      USD         566,635         20,617   
EUR      1,915,000       UBS AG    02/10/14      USD         2,592,757         97,235   
EUR      1,023,000       Barclays Bank plc    02/11/14      USD         1,382,175         49,050   
EUR      10,382,000       Deutsche Bank AG    02/11/14      USD         13,931,917         402,586   
EUR      446,000       UBS AG    02/13/14      USD         598,220         17,006   
EUR      956,000       JPMorgan Chase Bank N.A.    02/19/14      USD         1,277,035         31,157   
EUR      956,000       JPMorgan Chase Bank N.A.    02/19/14      USD         1,278,316         32,438   
EUR      1,022,000       Goldman Sachs & Co.    02/21/14      USD         1,368,049         36,142   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		    In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
EUR      1,421,320       Deutsche Bank AG    02/27/14      USD         1,879,724       $ 27,338   
EUR      252,000       Deutsche Bank AG    02/27/14      USD         333,275         4,847   
EUR      13,630,862       Deutsche Bank AG    03/03/14      USD         17,934,806         169,440   
EUR      457,000       Deutsche Bank AG    03/05/14      USD         595,243         (382 ) 
EUR      1,405,634       Barclays Bank plc    03/07/14      USD         1,839,188         7,151   
EUR      8,070,000       Deutsche Bank AG    03/07/14      USD         10,562,823         44,767   
EUR      2,142,782       Barclays Bank plc    03/10/14      USD         2,791,488         (1,366 ) 
EUR      10,839,830       Citibank N.A.    03/10/14      USD         14,161,696         33,303   
EUR      714,000       HSBC Bank plc    03/10/14      USD         931,770         1,158   
EUR      2,023,000       Morgan Stanley & Co., Inc.    03/10/14      USD         2,643,555         6,822   
EUR      651,717       Barclays Bank plc    03/17/14      USD         848,060         (1,412 ) 
EUR      462,068       Citibank N.A.    03/18/14      USD         599,850         (2,430 ) 
EUR      399,325       Barclays Bank plc    03/21/14      USD         518,564         (1,944 ) 
EUR      840,650       Citibank N.A.    03/26/14      USD         1,093,434         (2,363 ) 
EUR      1,040,000       Deutsche Bank AG    03/26/14      USD         1,351,220         (4,432 ) 
EUR      205,485       Deutsche Bank AG    03/31/14      USD         264,957         (2,904 ) 
EUR      640,496       Deutsche Bank AG    04/03/14      USD         823,133         (11,804 ) 
EUR      2,372,000       Deutsche Bank AG    04/04/14      USD         3,053,120         (38,994 ) 
EUR      1,005,008       Barclays Bank plc    04/07/14      USD         1,293,495         (16,652 ) 
EUR      3,821,000       HSBC Bank plc    04/10/14      USD         4,993,550         12,309   
EUR      4,186,153       Deutsche Bank AG    04/11/14      USD         5,478,628         21,314   
EUR      1,911,000       UBS AG    04/11/14      USD         2,501,977         10,686   
EUR      3,193,000       JPMorgan Chase Bank N.A.    04/14/14      USD         4,185,043         22,367   
EUR      3,696,678       HSBC Bank plc    04/16/14      USD         4,838,693         19,305   
EUR      989,372       Barclays Bank plc    04/22/14      USD         1,302,983         13,072   
EUR      31,188,000       Deutsche Bank AG    04/22/14      USD         40,843,805         181,915   
EUR      274,083       JPMorgan Chase Bank N.A.    04/22/14      USD         358,784         1,444   
EUR      3,529,000       Deutsche Bank AG    04/23/14      USD         4,625,460         24,431   
EUR      2,045,873       Barclays Bank plc    04/25/14      USD         2,672,319         4,917   
EUR      692,175       Barclays Bank plc    04/30/14      USD         902,735         245   
EUR      9,737,000       Deutsche Bank AG    05/07/14      USD         12,808,245         112,020   
EUR      7,580,000       Goldman Sachs & Co.    05/07/14      USD         9,972,248         88,569   
EUR      6,590,000       Goldman Sachs & Co.    05/08/14      USD         8,630,330         37,462   
EUR      17,552,000       UBS AG    05/12/14      USD         23,175,222         288,030   
EUR      8,138,999       Goldman Sachs & Co.    05/13/14      USD         10,688,540         75,491   
EUR      685,000       Goldman Sachs & Co.    05/20/14      USD         887,589         (5,681 ) 
EUR      469,000       Goldman Sachs & Co.    05/20/14      USD         607,707         (3,890 ) 
EUR      469,000       Barclays Bank plc    05/21/14      USD         603,720         (7,881 ) 
EUR      195,330       Barclays Bank plc    06/05/14      USD         255,189         439   
EUR      1,516,100       Deutsche Bank AG    06/09/14      USD         1,990,753         13,392   
EUR      505,700       Deutsche Bank AG    06/09/14      USD         664,022         4,467   
EUR      1,546,000       Deutsche Bank AG    06/13/14      USD         2,052,701         36,282   
JPY      330,341,000       Barclays Bank plc    07/02/13      USD         4,191,879         861,157   
JPY      411,460,000       Barclays Bank plc    07/29/13      USD         4,581,960         432,926   
JPY      105,370,000       Barclays Bank plc    08/09/13      USD         1,346,065         283,497   
JPY      105,400,000       Citibank N.A.    08/09/13      USD         1,346,827         283,956   
JPY      105,370,000       Deutsche Bank AG    08/12/13      USD         1,350,343         287,760   
JPY      186,225,000       Deutsche Bank AG    08/19/13      USD         2,378,489         500,478   
JPY      151,899,000       Deutsche Bank AG    08/19/13      USD         1,940,049         408,203   
JPY      639,006,000       HSBC Bank plc    08/20/13      USD         8,098,935         1,654,764   
JPY      152,028,000       JPMorgan Chase Bank N.A.    08/20/13      USD         1,926,051         392,897   
JPY      305,946,000       UBS AG    08/20/13      USD         3,885,769         800,401   
JPY      151,705,000       Barclays Bank plc    08/22/13      USD         1,919,102         389,191   
JPY      303,103,000       Citibank N.A.    08/23/13      USD         3,834,563         777,823   
JPY      149,920,000       Deutsche Bank AG    08/23/13      USD         1,897,842         385,925   
JPY      300,880,000       HSBC Bank plc    08/23/13      USD         3,810,633         776,312   
JPY      427,709,000       Barclays Bank plc    08/26/13      USD         5,428,468         1,115,039   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		    In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
JPY      302,459,000       JPMorgan Chase Bank N.A.    08/26/13      USD         3,836,851       $ 786,564   
JPY      350,622,000       UBS AG    08/26/13      USD         4,444,442         908,432   
JPY      256,658,000       Deutsche Bank AG    08/27/13      USD         3,281,064         692,666   
JPY      488,094,000       HSBC Bank plc    08/27/13      USD         6,241,611         1,319,179   
JPY      244,017,000       JPMorgan Chase Bank N.A.    08/27/13      USD         3,121,320         660,406   
JPY      150,260,000       JPMorgan Chase Bank N.A.    08/30/13      USD         1,919,213         403,819   
JPY      109,297,635       Barclays Bank plc    09/18/13      USD         1,401,252         298,846   
JPY      109,471,259       JPMorgan Chase Bank N.A.    09/27/13      USD         1,301,254         197,035   
JPY      66,105,000       JPMorgan Chase Bank N.A.    09/30/13      USD         853,601         186,798   
JPY      104,580,000       JPMorgan Chase Bank N.A.    10/18/13      USD         1,188,146         133,079   
JPY      597,790,000       Barclays Bank plc    10/22/13      USD         6,106,547         75,456   
JPY      100,800,000       Barclays Bank plc    10/22/13      USD         1,026,477         9,508   
JPY      94,232,353       Citibank N.A.    11/08/13      USD         1,179,792         228,938   
JPY      157,477,000       HSBC Bank plc    11/12/13      USD         1,686,952         97,868   
JPY      92,567,000       JPMorgan Chase Bank N.A.    11/13/13      USD         1,170,216         236,123   
JPY      229,154,000       Citibank N.A.    11/15/13      USD         2,897,108         584,676   
JPY      119,300,000       Morgan Stanley & Co., Inc.    11/15/13      USD         1,508,122         304,246   
JPY      93,849,000       UBS AG    11/15/13      USD         1,185,860         238,814   
JPY      379,208,000       Citibank N.A.    11/19/13      USD         4,696,598         869,807   
JPY      306,357,000       Deutsche Bank AG    11/19/13      USD         3,780,015         688,403   
JPY      425,961,000       Citibank N.A.    11/20/13      USD         5,265,799         967,159   
JPY      79,941,000       HSBC Bank plc    11/20/13      USD         989,749         183,014   
JPY      152,982,000       JPMorgan Chase Bank N.A.    11/20/13      USD         1,895,629         351,792   
JPY      122,208,000       UBS AG    11/20/13      USD         1,513,449         280,172   
JPY      296,207,000       Deutsche Bank AG    01/07/14      USD         3,421,234         430,713   
JPY      44,450,000       Citibank N.A.    01/10/14      USD         509,462         60,675   
JPY      88,890,000       UBS AG    01/14/14      USD         1,015,746         118,228   
JPY      44,440,000       UBS AG    01/14/14      USD         508,962         60,253   
JPY      183,890,000       HSBC Bank plc    01/15/14      USD         2,094,419         237,667   
JPY      44,590,000       Deutsche Bank AG    01/16/14      USD         502,570         52,335   
JPY      138,210,000       UBS AG    01/16/14      USD         1,557,822         162,287   
JPY      109,940,000       UBS AG    01/16/14      USD         1,238,202         128,115   
JPY      60,980,000       Deutsche Bank AG    01/17/14      USD         687,886         72,150   
JPY      110,740,000       JPMorgan Chase Bank N.A.    01/17/14      USD         1,250,686         132,507   
JPY      359,980,000       UBS AG    01/27/14      USD         4,080,481         445,177   
JPY      342,205,982       Deutsche Bank AG    01/28/14      USD         3,821,396         365,541   
JPY      443,025,359       HSBC Bank plc    01/28/14      USD         4,950,004         475,999   
JPY      133,761,000       Goldman Sachs & Co.    02/12/14      USD         1,441,079         90,001   
JPY      164,870,000       HSBC Bank plc    02/12/14      USD         1,772,567         107,266   
JPY      164,783,000       JPMorgan Chase Bank N.A.    02/12/14      USD         1,772,563         108,141   
JPY      218,400,000       Citibank N.A.    02/13/14      USD         2,363,445         157,426   
JPY      109,360,000       JPMorgan Chase Bank N.A.    02/13/14      USD         1,181,670         77,044   
JPY      46,833,020       Goldman Sachs & Co.    02/18/14      USD         503,148         30,066   
JPY      109,420,000       JPMorgan Chase Bank N.A.    02/18/14      USD         1,181,743         76,441   
JPY      87,100,000       JPMorgan Chase Bank N.A.    02/18/14      USD         935,804         55,967   
JPY      109,070,000       Citibank N.A.    02/19/14      USD         1,181,710         79,929   
JPY      109,540,000       Goldman Sachs & Co.    02/19/14      USD         1,181,706         75,177   
JPY      144,240,000       HSBC Bank plc    02/24/14      USD         1,543,499         86,352   
JPY      54,700,000       Barclays Bank plc    02/25/14      USD         590,879         38,279   
JPY      144,300,000       JPMorgan Chase Bank N.A.    02/25/14      USD         1,556,592         98,821   
JPY      358,900,000       Barclays Bank plc    02/27/14      USD         3,833,582         207,750   
JPY      109,290,000       Barclays Bank plc    02/27/14      USD         1,181,712         77,596   
JPY      36,614,000       Deutsche Bank AG    02/27/14      USD         400,002         30,105   
JPY      160,000,000       JPMorgan Chase Bank N.A.    03/03/14      USD         1,759,479         142,977   
JPY      159,900,000       HSBC Bank plc    03/04/14      USD         1,756,178         140,665   
JPY      178,400,000       UBS AG    03/04/14      USD         1,940,607         138,184   
JPY      578,374,700       Barclays Bank plc    03/07/14      USD         5,833,748         (9,952 ) 

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
JPY      109,701,956       Citibank N.A.      03/17/14         USD         1,145,892       $ 37,359   
JPY      323,500,000       Citibank N.A.      03/19/14         USD         3,407,236         138,202   
JPY      142,403,000       Citibank N.A.      03/19/14         USD         1,491,521         52,510   
JPY      200,950,000       Morgan Stanley & Co., Inc.      03/19/14         USD         2,100,559         69,918   
JPY      164,310,000       Barclays Bank plc      03/24/14         USD         1,736,947         76,455   
JPY      160,844,000       Deutsche Bank AG      03/24/14         USD         1,703,621         78,156   
JPY      86,066,450       Barclays Bank plc      03/25/14         USD         907,396         37,610   
JPY      177,260,000       Barclays Bank plc      04/21/14         USD         1,822,228         30,087   
JPY      106,500,000       JPMorgan Chase Bank N.A.      04/21/14         USD         1,093,289         16,548   
JPY      100,800,000       Citibank N.A.      04/22/14         USD         1,030,095         10,966   
JPY      627,180,000       JPMorgan Chase Bank N.A.      04/22/14         USD         6,406,922         65,876   
JPY      796,134,720       Deutsche Bank AG      05/12/14         USD         8,077,666         25,713   
JPY      791,049,590       Morgan Stanley & Co., Inc.      05/12/14         USD         8,041,655         41,133   
JPY      462,800,000       Citibank N.A.      06/09/14         USD         4,666,734         (16,139 ) 
JPY      693,100,000       HSBC Bank plc      06/09/14         USD         7,000,303         (12,876 ) 
JPY      464,700,000       JPMorgan Chase Bank N.A.      06/09/14         USD         4,667,303         (34,796 ) 
JPY      596,690,000       Barclays Bank plc      06/10/14         USD         6,131,456         93,706   
JPY      635,480,000       HSBC Bank plc      06/10/14         USD         6,569,491         139,235   
JPY      430,940,000       JPMorgan Chase Bank N.A.      06/10/14         USD         4,379,630         19,061   
JPY      210,400,000       Deutsche Bank AG      06/11/14         USD         2,189,477         60,459   
JPY      588,770,000       JPMorgan Chase Bank N.A.      06/11/14         USD         6,131,514         173,804   
JPY      119,465,000       Citibank N.A.      06/16/14         USD         1,257,526         48,569   
JPY      248,300,000       JPMorgan Chase Bank N.A.      06/17/14         USD         2,627,930         115,152   
JPY      481,311,000       Barclays Bank plc      06/30/14         USD         4,946,670         74,772   
JPY      330,341,000       Barclays Bank plc      06/30/14         USD         3,395,077         51,319   

Cross Currency Contracts to Buy

                            
HUF      388,774,000       JPMorgan Chase Bank N.A.      09/23/13         EUR         1,250,680       $ 73,267   
HUF      311,219,000       JPMorgan Chase Bank N.A.      09/25/13         EUR         1,000,543         59,218   
HUF      789,872,400       Deutsche Bank AG      03/19/14         EUR         2,501,357         144,533   
HUF      236,727,980       JPMorgan Chase Bank N.A.      03/19/14         EUR         750,407         42,352   
HUF      396,052,000       JPMorgan Chase Bank N.A.      03/20/14         EUR         1,250,677         76,929   
HUF      393,926,000       JPMorgan Chase Bank N.A.      03/21/14         EUR         1,250,678         67,616   
NOK      17,891,400       UBS AG      11/08/13         EUR         2,399,759         (193,349 ) 
PLN      39,200,000       Deutsche Bank AG      07/05/13         EUR         8,915,372         190,574   
PLN      35,870,000       Deutsche Bank AG      08/19/13         EUR         8,436,030         (219,673 ) 
PLN      4,666,000       Barclays Bank plc      02/11/14         EUR         1,082,523         (25,043 ) 
PLN      4,666,000       Deutsche Bank AG      02/11/14         EUR         1,084,839         (28,060 ) 
PLN      4,666,000       Deutsche Bank AG      02/14/14         EUR         1,082,925         (25,830 ) 
PLN      5,956,000       Morgan Stanley & Co., Inc.      05/27/14         EUR         1,395,452         (61,458 ) 
SEK      261,920,000       Barclays Bank plc      04/30/14         EUR         30,304,994         (710,633 ) 
SEK      14,943,320       Deutsche Bank AG      05/07/14         EUR         1,736,384         (50,630 ) 
SEK      15,023,913       Morgan Stanley & Co., Inc.      05/08/14         EUR         1,740,060         (43,551 ) 
SEK      38,634,000       UBS AG      06/30/14         EUR         4,360,841         27,627   
                 

 

 

  

Net Unrealized Appreciation

  

    $ 12,517,249   
                 

 

 

  

Cash in the amount of $2,585,000 and securities in the amount of $3,724,000 have been received at the custodian bank as collateral for forward foreign currency exchange contracts.

 

(CLP)— Chilean Peso
(EUR)— Euro
(HUF)— Hungarian Forint
(INR)— Indian Rupee
(JPY)— Japanese Yen
(KRW)— South Korea Won

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(NOK)— Norwegian Krone
(PHP)— Philippine Peso
(PLN)— Polish Zloty
(SEK)— Swedish Krona
(SGD)— Singapore Dollar
(USD)— United States Dollar

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Foreign Government*

    $ —         $ 1,045,289,562      $ —         $ 1,045,289,562   
Short-Term Investments           

Discount Notes

      —           85,024,767        —           85,024,767   

Mutual Fund

      19,900,268         —          —           19,900,268   

Repurchase Agreement

      —           28,159,000        —           28,159,000   

Total Short-Term Investments

      19,900,268         113,183,767        —           133,084,035   

Total Investments

    $ 19,900,268       $ 1,158,473,329      $ —         $ 1,178,373,597   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (19,900,268 )    $ —         $ (19,900,268 ) 
Forward Contracts           

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —         $ 29,545,386      $ —         $ 29,545,386   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —           (17,028,137 )      —           (17,028,137 ) 

Total Forward Contracts

    $ —         $ 12,517,249      $ —         $ 12,517,249   

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Met/Templeton International Bond Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,178,373,597   

Cash

      850,389   

Cash denominated in foreign currencies (c)

      4,697,249   

Unrealized appreciation on forward foreign currency exchange contracts

      29,545,386   

Receivable for:

   

Investments sold

      8,659,293   

Open cash collateral for forward currency exchange contracts

      570,000   

Fund shares sold

      218,708   

Interest

      12,616,700   
  

 

 

  

Total Assets

      1,235,531,322   

Liabilities

   

Payables for:

   

Fund shares redeemed

      63,190   

Foreign taxes

      948,356   

Unrealized depreciation on forward foreign currency exchange contracts

      17,028,137   

Collateral for securities loaned

      19,900,268   

Accrued expenses:

   

Management fees

      594,577   

Distribution and service fees

      15,545   

Deferred trustees’ fees

      41,001   

Other expenses

      478,910   
  

 

 

  

Total Liabilities

      39,069,984   
  

 

 

  

Net Assets

    $ 1,196,461,338   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,145,741,869   

Undistributed net investment income

      7,815,749   

Accumulated net realized gain

      17,544,255   

Unrealized appreciation on investments and foreign currency transactions

      25,359,465   
  

 

 

  

Net Assets

    $ 1,196,461,338   
  

 

 

  

Net Assets

   

Class A

    $ 1,122,359,973   

Class B

      74,101,365   

Capital Shares Outstanding*

   

Class A

      98,627,405   

Class B

      6,546,803   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.38   

Class B

      11.32   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,164,228,737.
(b) Includes securities loaned at value of $18,958,668.
(c) Identified cost of cash denominated in foreign currencies was $4,738,518.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Interest (a)

    $ 22,996,579   

Securities lending income

      76,173   
  

 

 

  

Total investment income

      23,072,752   

Expenses

   

Management fees

      3,524,859   

Administration fees

      14,827   

Custodian and accounting fees

      576,687   

Distribution and service fees—Class B

      95,895   

Audit and tax services

      44,561   

Legal

      9,657   

Trustees’ fees and expenses

      13,483   

Shareholder reporting

      28,137   

Insurance

      3,464   

Miscellaneous

      5,538   
  

 

 

  

Total expenses

      4,317,108   
  

 

 

  

Net Investment Income

      18,755,644   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      (1,593,249 ) 

Foreign currency transactions

      24,181,891   
  

 

 

  

Net realized gain

      22,588,642   
  

 

 

  
Net change in unrealized depreciation on:   

Investments (b)

      (59,532,819 ) 

Foreign currency transactions

      (5,007,857 ) 
  

 

 

  

Net change in unrealized depreciation

      (64,540,676 ) 
  

 

 

  

Net realized and unrealized loss

      (41,952,034 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (23,196,390 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $769,172.
(b) Includes foreign capital gains tax of $617,099.

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 18,755,644      $ 40,555,887   

Net realized gain

      22,588,642        21,474,687   

Net change in unrealized appreciation (depreciation)

      (64,540,676 )      83,540,686   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (23,196,390 )      145,571,260   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (25,258,496 )      (101,866,698 ) 

Class B

      (1,507,561 )      (7,551,771 ) 

Net realized capital gains

     

Class A

      (5,070,835 )      0   

Class B

      (340,003 )      0   
  

 

 

    

 

 

  

Total distributions

      (32,176,895 )      (109,418,469 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      126,904,627        95,178,284   
  

 

 

    

 

 

  

Total Increase in Net Assets

      71,531,342        131,331,075   

Net Assets

     

Beginning of period

      1,124,929,996        993,598,921   
  

 

 

    

 

 

  

End of period

    $ 1,196,461,338      $ 1,124,929,996   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 7,815,749      $ 15,826,162   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      8,660,147      $ 105,769,779        5,746,559      $ 65,733,843   

Reinvestments

      2,542,274        30,329,331        9,311,398        101,866,698   

Redemptions

      (847,831 )      (10,202,074 )      (7,032,089 )      (79,312,673 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      10,354,590      $ 125,897,036        8,025,868      $ 88,287,868   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      550,180      $ 6,531,501        1,336,249      $ 15,480,445   

Reinvestments

      155,650        1,847,564        693,459        7,551,771   

Redemptions

      (625,248 )      (7,371,474 )      (1,426,002 )      (16,141,800 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      80,582      $ 1,007,591        603,706      $ 6,890,416   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 126,904,627        $ 95,178,284   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010     2009(a)  

Net Asset Value, Beginning of Period

    $ 11.88      $ 11.54       $ 12.45       $ 11.02      $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) From Investment Operations

             

Net investment income (b)

      0.19        0.43         0.50         0.49        0.34   

Net realized and unrealized gain (loss) on investments

      (0.38 )      1.15         (0.47 )       1.03        0.68   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      (0.19 )      1.58         0.03         1.52        1.02   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

             

Distributions from net investment income

      (0.26 )      (1.24 )       (0.92 )       (0.09 )      0.00   

Distributions from net realized capital gains

      (0.05 )      0.00         (0.02 )       (0.00 )(c)      0.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.31 )      (1.24 )       (0.94 )       (0.09 )      0.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.38      $ 11.88       $ 11.54       $ 12.45      $ 11.02   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (d)

      (1.66 )(e)      14.64         (0.06 )       13.73        10.20 (e) 

Ratios/Supplemental Data

             

Ratio of expenses to average net assets (%)

      0.72  (f)      0.73         0.74         0.73        0.73  (f) 

Ratio of net investment income to average net assets (%)

      3.21  (f)      3.78         4.09         4.18        4.87  (f) 

Portfolio turnover rate (%)

      9  (e)      35         46         18        15  (e) 

Net assets, end of period (in millions)

    $ 1,122.4      $ 1,048.6       $ 926.3       $ 747.3      $ 645.1   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010     2009(a)  

Net Asset Value, Beginning of Period

    $ 11.80      $ 11.48       $ 12.41       $ 11.00      $ 10.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) From Investment Operations

             

Net investment income (b)

      0.17        0.40         0.46         0.46        0.41   

Net realized and unrealized gain (loss) on investments

      (0.36 )      1.14         (0.46 )       1.03        0.59   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      (0.19 )      1.54         0.00         1.49        1.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

             

Distributions from net investment income

      (0.24 )      (1.22 )       (0.91 )       (0.08 )      0.00   

Distributions from net realized capital gains

      (0.05 )      0.00         (0.02 )       (0.00 )(c)      0.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.29 )      (1.22 )       (0.93 )       (0.08 )      0.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 11.32      $ 11.80       $ 11.48       $ 12.41      $ 11.00   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (d)

      (1.74 )(e)      14.29         (0.33 )       13.54        10.00 (e) 

Ratios/Supplemental Data

             

Ratio of expenses to average net assets (%)

      0.97  (f)      0.98         0.99         0.98        0.98  (f) 

Ratio of net investment income to average net assets (%)

      2.96  (f)      3.53         3.81         3.86        5.71  (f) 

Portfolio turnover rate (%)

      9  (e)      35         46         18        15  (e) 

Net assets, end of period (in millions)

    $ 74.1      $ 76.3       $ 67.3       $ 46.3      $ 9.7   

 

(a) Commencement of operations was May 1, 2009.
(b) Per share amounts based on average shares outstanding during the period.
(c) Distributions from net realized capital gains were less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Met/Templeton International Bond Portfolio (the “Portfolio”), which is non-diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-18

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-19

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, distribution redesignations and premium amortization adjustments. These adjustments have no impact on net assets or the results of operations.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $28,159,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

 

MIST-20

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

Mortgage Related and Other Asset Backed Securities - The Portfolio may invest in mortgage related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

 

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

High Yield Debt Securities - The Portfolio may invest in high yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high yield debt securities are less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s Subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

 

MIST-21

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value     

Statement of Assets &
Liabilities Location

    Fair Value  
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts    $ 29,545,386       Unrealized depreciation on forward foreign currency exchange contracts    $ 17,028,137   
     

 

 

        

 

 

  

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(a)		     Net Amount  

Barclays Bank plc

    $ 4,513,614       $ (2,134,219 )    $ —      $ 2,379,395   

Citibank N.A.

      4,527,417         (58,496 )      (3,942,120 )      526,801   

Deutsche Bank AG

      5,716,394         (3,852,235 )      —        1,864,159   

Goldman Sachs & Co.

      432,908         (172,995 )      —        259,913   

HSBC Bank plc

      5,276,190         (3,896,621 )      —        1,379,569   

JPMorgan Chase Bank N.A.

      4,852,786         (3,987,598 )      (865,188 )      —   

Morgan Stanley & Co., Inc.

      422,119         (422,119 )      —        —   

UBS AG

      3,803,958         (1,411,089 )      —        2,392,869   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 29,545,386       $ (15,935,372 )    $ (4,807,308 )    $ 8,802,706   
  

 

 

     

 

 

    

 

 

    

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged		      Net Amount  

Barclays Bank plc

    $ 2,134,219       $ (2,134,219 )    $ —       $ —   

Citibank N.A.

      58,496         (58,496 )      —         —   

Deutsche Bank AG

      3,852,235         (3,852,235 )      —         —   

Goldman Sachs & Co.

      172,995         (172,995 )      —         —   

HSBC Bank plc

      3,896,621         (3,896,621 )      —         —   

JPMorgan Chase Bank N.A.

      3,987,598         (3,987,598 )      —         —   

Morgan Stanley & Co., Inc.

      1,514,884         (422,119 )      —         1,092,765   

UBS AG

      1,411,089         (1,411,089 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 17,028,137       $ (15,935,372 )    $ —       $ 1,092,765   
  

 

 

     

 

 

    

 

 

     

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ 24,663,154   
  

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Foreign
Exchange		  

Forward foreign currency transactions

    $ (4,452,758 ) 
  

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(b)		  

Forward foreign currency transactions

    $ 1,014,700,378   

 

  (a) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (b) Averages are based on activity levels during 2013.

 

MIST-22

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

 

MIST-23

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 220,576,371       $ 0       $ 85,340,959   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Franklin Advisers, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by

the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$3,524,859      0.600 %    ALL

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of

 

MIST-24

Met Investors Series Trust

Met/Templeton International Bond Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$105,548,486    $ 62,195,831       $ 3,869,983       $ 378,415       $ 109,418,469       $ 62,574,246   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$26,680,429    $ 5,358,477      $ 74,089,473       $ —       $ 106,128,379   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-25

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the MetLife Aggressive Strategy Portfolio returned 10.20% and 10.08%, respectively. The Portfolio’s benchmark, the Dow Jones Aggressive Index1, returned 9.28%.

MARKET ENVIRONMENT / CONDITIONS

During the six-month period ended June 30, 2013, global capital markets continued to respond to changing perceptions about the prospects for economic growth and the efforts by governments throughout the world to both avoid a new economic recession and to meet their fiscal responsibilities. Even with a decline late in the second quarter, U.S. stocks produced strong returns during the first half of 2013. The Standard & Poor’s 500 Index returned 13.82% for the period. Small cap stocks, as measured by the Russell 2000 Index, performed even better with a 15.86% return. While both investment styles posted double digit returns, value style stocks performed slightly better than growth style stocks (15.90% for the Russell 1000 Value Index compared to 11.80% for the Russell 1000 Growth Index). The Health Care and Financial Services sectors were the best performers for the period; the Information Technology and Materials sectors trailed.

On a local currency basis, foreign stocks from developed countries produced a return close to that of domestic stocks as measured by the 11.01% local currency return of the MSCI EAFE Index. A rise in the value of the U.S. dollar reduced that return for U.S. investors to only 4.10%. Emerging market stocks performed even worse as the strong dollar and concerns about China’s slower economic growth produced a return of negative 9.57% in the MSCI Emerging Markets Index. Combining emerging and developed markets, foreign stocks produced a nearly flat return of 0.16% for the six month period as measured by the MSCI All Country World Ex U.S. Index in U.S. dollars.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The MetLife Aggressive Strategy Portfolio invested in underlying portfolios of the Met Investors Series Trust and the Metropolitan Series Fund to maintain a broad asset allocation of approximately 100% to equities, although we expect that some residual cash will be held by the underlying portfolios. While there was no change in the Portfolio’s strategic asset class goals during the period, there were several changes in the underlying portfolios used by the portfolio manager to achieve those allocations. Most notable was the addition of the JPMorgan Small Cap Value Portfolio, the T. Rowe Price Small Cap Growth Portfolio, and the Frontier Mid Cap Growth Portfolio. In addition, to more closely reflect the global equity markets, the position in the MFS® Emerging Market Equity Portfolio was increased from 3.0% to 4.5%. The Aggressive Strategy Portfolio was able to post a positive return for the period because of its 70% exposure to domestic equities, which returned over 14% for the period. Good selection by several underlying equity managers also helped relative performance.

Despite negative returns in the final month of the period, all of the underlying domestic equity portfolios produced strongly positive returns during the six-month period ending June 30, 2013. Among the biggest contributors to both absolute and relative returns were several large cap domestic value portfolios, which were helped by the general strength of value-style stocks relative to growth-style stocks. Equally important was that these portfolios did not hold market giant Apple, Inc., which declined 24.6% for the period. One of these strong performing value portfolios was the Invesco Comstock Portfolio, which had very good security selection in the Information Technology sector, where they owned Hewlett-Packard Corporation and Microsoft Corporation. The MFS® Value Portfolio’s underweight in the Information Technology sector and good security selection in the Financial Services and Industrials sectors were the major factors helping its relative performance. In the Financial Services sector, it owned Prudential Financial, Inc. and State Street Corporation; while in the Industrials sector it owned aerospace manufacturer Lockheed Martin and industrial technology company Honeywell International, Inc. The Davis Venture Value Portfolio benefited mostly from good security selection in the Consumer Discretionary sector, where it held NetFlix, Inc., and the Information Technology sector, where it owned Google, Inc. The T. Rowe Price Large Cap Value Portfolio’s positive relative return was due to good security selection in the Information Technology sector. While most underlying portfolios with a growth-style orientation struggled during the period, the Clearbridge Aggressive Growth Portfolio belied its growth oriented investment style with strong security selection. In the Health Care sector, it owned biotech company Biogen Idec, Inc., and in the Information Technology sector, they avoided Apple, Inc. and owned Irish data storage device company Seagate Technology, plc.

Since growth-style stocks lagged value stocks during the six-month period, it was not surprising that several underlying equity portfolios with a growth style were among the largest detractors to the Portfolio’s relative performance. The Jennison Growth Portfolio was hurt by owning American Tower Corporation, a communication infrastructure real estate investment trust. It was also hurt by not owning Microsoft Corporation. The BlackRock Capital Appreciation Portfolio (formerly called the BlackRock Legacy Large Cap Growth Portfolio) was hurt mostly by weak overall security selection. For example, it owned drug company Allergan, Inc. in the Health Care sector, which fell sharply in early May. The T. Rowe Price Large Cap Growth Portfolio was hurt by its growth style and by its selection in the Financial Services and Information Technology sectors. It owned American Tower Corp. and held a large overweight position in Apple, Inc. The Third Avenue Small Value Portfolio also hurt relative performance due mostly to its 7% cash position and its sector weightings, including a large overweight to the weak Materials sector.

The investment return on foreign equities for U.S. dollar-based investors was constrained by the strong U.S. dollar relative to most foreign currencies, especially the Japanese yen. In addition, exposure to the stocks of developing countries had an overall negative impact on

 

MIST-1

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

the Portfolio’s performance relative to both developed foreign and domestic stocks. For the Portfolio, this exposure came primarily from the MFS Emerging Markets Equity Portfolio and the Baillie Gifford International Stock Portfolio, the latter of which held nearly 23% of its assets in companies from emerging market countries. Consistent with the overall decline in the real estate investment trust market during the period, the Clarion Global Real Estate Portfolio detracted from relative performance. On the positive side, the Harris Oakmark International Portfolio had strong relative performance throughout the period due to consistently strong security selection across all sectors and regions. From Japan, they owned brokerage company Daiwa Securities Co., Ltd. and health care equipment producer Olympus Corporation, and from the United Kingdom, they held Lloyds Banking Group PLC.

Investment Committee

MetLife Advisers, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

 


A $10,000 INVESTMENT COMPARED TO THE DOW JONES AGGRESSIVE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
MetLife Aggressive Strategy Portfolio                      

Class A

        10.20           20.30           5.05           5.28   

Class B

        10.08           19.97           4.78           5.05   
Dow Jones Aggressive Index        9.28           19.32           5.84           7.50   

1 The Dow Jones Aggressive Index is a benchmark designed for asset allocation strategists who are willing to take 100% of the risk of the global equity securities market. It is a total returns index formed by equally weighing nine equity style indices with monthly rebalancing. The nine Dow Jones equity style indices include: U.S. Large Cap Value, U.S. Large Cap Growth, U.S. Mid Cap Value, U.S. Small Cap Value, U.S. Mid Cap Growth, U.S. Small Cap Growth, Emerging Markets LN, Europe/Canada, and Asia/Pacific.

2 Inception of the Class B shares is 11/4/2004. Inception of the Class A shares is 5/2/2005. Index returns are based on an inception date of 11/4/2004.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A)      6.2   
T. Rowe Price Large Cap Growth Portfolio (Class A)      6.1   
Jennison Growth Portfolio (Class A)      6.1   
ClearBridge Aggressive Growth Portfolio (formerly Legg Mason ClearBridge Aggressive Growth Portfolio) (Class A)      5.2   
T. Rowe Price Large Cap Value Portfolio (Class A)      5.1   
MFS® Value Portfolio (Class A)      5.1   
Clarion Global Real Estate Portfolio (Class A)      4.6   
Harris Oakmark International Portfolio (Class A)      4.6   
Davis Venture Value Portfolio (Class A)      4.1   
MFS® Emerging Markets Equity Portfolio (Class A)      4.0   

 

MIST-3

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

MetLife Aggressive Strategy Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)(b)

      Actual      0.83 %     $ 1,000.00         $ 1,102.00         $ 4.33   
     Hypothetical*      0.83 %     $ 1,000.00         $ 1,020.68         $ 4.16   

Class B(a)(b)

      Actual      1.08 %     $ 1,000.00         $ 1,100.80         $ 5.63   
     Hypothetical*      1.08 %     $ 1,000.00         $ 1,019.44         $ 5.41   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

(b) The annualized expense ratio shown reflects an expense limitation agreement between MetLife Advisers, LLC and the Portfolio as described in Note 5 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—100.0% of Net Assets

 

Security Description   Shares     Value  

Affiliated Investment Companies—100.0%

  

Baillie Gifford International Stock Portfolio (Class A) (a)

     6,930,763      $ 62,584,790   

BlackRock Capital Appreciation Portfolio (formerly BlackRock Legacy Large Cap Growth Portfolio) (Class A) (a)

     2,163,727        66,145,145   

BlackRock Large Cap Value Portfolio (Class A) (a)

     4,767,925        49,824,816   

Clarion Global Real Estate Portfolio (Class A) (b)

     6,998,796        75,796,960   

ClearBridge Aggressive Growth Portfolio (formerly Legg Mason ClearBridge Aggressive Growth Portfolio) (Class A) (b)

     7,584,007        85,850,959   

Davis Venture Value Portfolio (Class A) (a)

     1,834,968        68,095,651   

Frontier Mid Cap Growth Portfolio (Class A) (a)

     913,372        28,268,858   

Goldman Sachs Mid Cap Value Portfolio (Class A) (b)

     2,376,801        36,650,265   

Harris Oakmark International Portfolio (Class A) (b)

     4,726,203        75,666,518   

Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A) (b)

     8,050,481        101,436,063   

Invesco Small Cap Growth Portfolio (Class A) (b)

     2,510,644        42,254,136   

Janus Forty Portfolio (Class A) (b)

     799,196        66,189,387   

Jennison Growth Portfolio (Class A) (a)

     7,977,670        100,518,644   

JPMorgan Small Cap Value Portfolio (formerly Dreman Small Cap Value Portfolio) (Class A) (b)

     1,800,442        30,499,496   

Loomis Sayles Small Cap Growth Portfolio (Class A) (a) (c)

     3,669,037        50,412,574   

Met/Artisan Mid Cap Value Portfolio (Class A) (a)

     158,204        36,559,375   

Met/Dimensional International Small Company Portfolio (Class A) (a)

     4,646,734        63,613,788   

MFS® Emerging Markets Equity Portfolio (Class A) (b)

     6,783,034        66,202,409   

MFS® Research International Portfolio (Class A) (b)

     6,263,671        65,142,178   

MFS® Value Portfolio (Class A) (a)

     5,499,903        83,708,531   

Morgan Stanley Mid Cap Growth Portfolio (Class A) (b)

     2,783,863        37,582,148   

Neuberger Berman Genesis Portfolio (Class A) (a)

     1,766,827        26,272,713   

T. Rowe Price Large Cap Growth Portfolio (Class A) (a)

     5,135,092        100,596,459   

T. Rowe Price Large Cap Value Portfolio (Class A) (b)

     3,015,105        84,211,884   

T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)

     3,593,265        37,082,494   

T. Rowe Price Small Cap Growth Portfolio (Class A) (a)

     433,386        8,290,678   

Third Avenue Small Cap Value Portfolio (Class A) (b)

     1,719,179        30,532,612   

Van Eck Global Natural Resources Portfolio (Class A) (a)

     5,137,611        62,678,853   
   

 

 

  

Total Mutual Funds
(Cost $1,447,898,818)

       1,642,668,384   
   

 

 

  

Total Investments—100.0%
(Cost $1,447,898,818) (d)

     $ 1,642,668,384   

Other assets and liabilities (net)—0.0%

       (492,592 ) 
   

 

 

  
Net Assets—100.0%     $ 1,642,175,792   
   

 

 

  

 

(a) A Portfolio of Metropolitan Series Fund. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b) A Portfolio of Met Investors Series Trust. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c) Non-income producing security.
(d) As of June 30, 2013, the aggregate cost of investments was $1,447,898,818. The aggregate unrealized appreciation and depreciation of investments were $200,806,913 and $(6,037,347), respectively, resulting in net unrealized appreciation of $194,769,566.

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Affiliated Investment Companies

    $ 1,642,668,384       $ —         $ —         $ 1,642,668,384   

Total Investments

    $ 1,642,668,384       $ —         $ —         $ 1,642,668,384   
                                     

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Affiliated investments at value (a)

      1,642,668,384   

Receivable for:

   

Investments sold

      72,378   

Fund shares sold

      2,621,837   
  

 

 

  

Total Assets

      1,645,362,599   

Liabilities

   

Due to Adviser

      25,163   

Payables for:

   

Investments purchased

      1,787,539   

Fund shares redeemed

      906,676   

Accrued expenses:

   

Management fees

      99,014   

Distribution and service fees

      221,824   

Deferred trustees’ fees

      56,947   

Other expenses

      89,644   
  

 

 

  

Total Liabilities

      3,186,807   
  

 

 

  

Net Assets

    $ 1,642,175,792   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,579,441,137   

Undistributed net investment income

      14,707,892   

Accumulated net realized loss

      (146,742,803 ) 

Unrealized appreciation on affiliated investments

      194,769,566   
  

 

 

  

Net Assets

    $ 1,642,175,792   
  

 

 

  

Net Assets

   

Class A

    $ 571,798,137   

Class B

      1,070,377,655   

Capital Shares Outstanding*

   

Class A

      50,045,450   

Class B

      93,937,310   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.43   

Class B

      11.39   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of affiliated investments was $1,447,898,818.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Affiliated Underlying Portfolios

    $ 16,829,714   
  

 

 

  

Total investment income

      16,829,714   

Expenses

   

Management fees

      512,814   

Administration fees

      10,902   

Deferred expense reimbursement

      74,364   

Custodian and accounting fees

      12,290   

Distribution and service fees—Class B

      1,321,543   

Audit and tax services

      16,391   

Legal

      11,604   

Trustees’ fees and expenses

      13,783   

Miscellaneous

      1,563   
  

 

 

  

Total expenses

      1,975,254   
  

 

 

  

Net Investment Income

      14,854,460   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain on:   

Affiliated investments

      20,946,305   

Capital gain distributions from Affiliated Underlying Portfolios

      14,603,727   
  

 

 

  

Net realized gain

      35,550,032   
  

 

 

  

Net change in unrealized appreciation on affiliated investments

      60,847,817   
  

 

 

  

Net realized and unrealized gain

      96,397,849   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 111,252,309   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 14,854,460      $ 7,174,629   

Net realized gain

      35,550,032        45,498,969   

Net change in unrealized appreciation

      60,847,817        110,025,071   
  

 

 

    

 

 

  

Increase in net assets from operations

      111,252,309        162,698,669   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (736,790 )      (536,616 ) 

Class B

      (8,281,024 )      (6,332,536 ) 
  

 

 

    

 

 

  

Total distributions

      (9,017,814 )      (6,869,152 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      474,077,952        (91,648,450 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      576,312,447        64,181,067   

Net Assets

     

Beginning of period

      1,065,863,345        1,001,682,278   
  

 

 

    

 

 

  

End of period

    $ 1,642,175,792      $ 1,065,863,345   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 14,707,892      $ 8,871,246   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,786,096      $ 20,294,136        1,019,506      $ 10,049,202   

Shares issued through acquisition

      44,617,982        505,967,920        0        0   

Reinvestments

      67,042        736,790        54,039        536,616   

Redemptions

      (2,963,511 )      (33,937,478 )      (769,543 )      (7,587,028 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      43,507,609      $ 493,061,368        304,002      $ 2,998,790   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      5,170,489      $ 57,817,568        6,813,119      $ 66,979,229   

Reinvestments

      754,879        8,281,024        639,005        6,332,536   

Redemptions

      (7,576,192 )      (85,082,008 )      (17,013,625 )      (167,959,005 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,650,824 )    $ (18,983,416 )      (9,561,501 )    $ (94,647,240 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 474,077,952        $ (91,648,450 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Financial Highlights

 

Selected per share data                            
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 10.48      $ 9.03       $ 9.68       $ 8.39       $ 6.31       $ 12.61   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (loss) (a)

      0.04        0.09         (0.01 )       0.08         0.12         0.11   

Net realized and unrealized gain (loss) on investments

      1.02        1.44         (0.51 )       1.33         1.96         (4.71 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.06        1.53         (0.52 )       1.41         2.08         (4.60 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.11 )      (0.08 )       (0.13 )       (0.12 )       0.00         (0.41 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.29 ) 

Distributions from return of capital

      0.00        0.00         0.00         0.00         0.00         (0.00 ) (b) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.11 )      (0.08 )       (0.13 )       (0.12 )       0.00         (1.70 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.43      $ 10.48       $ 9.03       $ 9.68       $ 8.39       $ 6.31   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      10.20  (d)      17.05         (5.57 )       16.92         32.96         (40.67 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (e)

      0.10  (f)      0.10         0.10         0.11         0.12         0.11   

Net ratio of expenses to average net assets (%) (e) (g)

      0.10  (f)      0.10         0.10         0.10         0.10         0.10   

Ratio of net investment income (loss) to average net assets (%) (h)

      0.33  (f)(i)      0.89         (0.08 )       0.87         1.75         1.11   

Portfolio turnover rate (%)

      7  (d)      13         23         13         40         30   

Net assets, end of period (in millions)

    $ 571.8      $ 68.5       $ 56.3       $ 1.2       $ 0.3       $ 0.2   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 10.43      $ 8.99       $ 9.64       $ 8.37       $ 6.31       $ 12.58   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.15        0.07         0.06         0.09         0.10         0.08   

Net realized and unrealized gain (loss) on investments

      0.90        1.43         (0.60 )       1.28         1.96         (4.70 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.05        1.50         (0.54 )       1.37         2.06         (4.62 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.09 )      (0.06 )       (0.11 )       (0.10 )       0.00         (0.36 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.29 ) 

Distributions from return of capital

      0.00        0.00         0.00         0.00         0.00         (0.00 ) (b) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.09 )      (0.06 )       (0.11 )       (0.10 )       0.00         (1.65 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.39      $ 10.43       $ 8.99       $ 9.64       $ 8.37       $ 6.31   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      10.08  (d)      16.74         (5.78 )       16.50         32.65         (40.81 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (e)

      0.35  (f)      0.35         0.35         0.36         0.37         0.36   

Net ratio of expenses to average net assets (%) (e) (g)

      0.35  (f)      0.35         0.35         0.35         0.35         0.35   

Ratio of net investment income to average net assets (%) (h)

      1.13  (f)(i)      0.67         0.61         1.02         1.51         0.84   

Portfolio turnover rate (%)

      7  (d)      13         23         13         40         30   

Net assets, end of period (in millions)

    $ 1,070.4      $ 997.4       $ 945.4       $ 798.0       $ 653.6       $ 500.9   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Distributions from return of capital were less than $0.01.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(f) Computed on an annualized basis.
(g) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(h) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.
(i) The income earned by the Portfolio through the investments in Underlying Portfolios is not annualized.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MetLife Aggressive Strategy Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio is designed on established principles of asset allocation to achieve a specific risk profile. The Portfolio will invest substantially all of its assets in other portfolios of the Trust or of Metropolitan Series Fund (“Underlying Portfolios”).

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying Portfolios are valued at their closing daily net asset value. The net asset value of the Portfolio is calculated based on the net asset values of the Underlying Portfolios in which the Portfolio invests. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to short-term capital gain distributions received from Underlying Portfolios. These adjustments have no impact on net assets or the results of operations.

3. Certain Risks

Market Risk: In the normal course of business, the Underlying Portfolios invest in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the companies whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

 

MIST-10

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Underlying Portfolios’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments of the applicable Underlying Portfolios.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of the Underlying Portfolios by the Portfolio, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 95,235,483       $ 0       $ 106,627,971   

With respect to the Portfolio’s merger with Zenith Equity Portfolio (see Note 9) on April 26, 2013, the Portfolio acquired securities with a cost of $512,194,667 that are not included in the above non-U.S. Government purchases value.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board of Trustees (the “Board”) and has overall responsibility for the general management and administration of the Trust.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$512,814      0.100 %    First $500 million
     0.075 %    $500 million to $1 billion
     0.050 %    Over $1 billion

In addition to the above management fee paid to the Adviser, the Portfolio indirectly pays MetLife Advisers a management fee through its investments in the Underlying Portfolios.

Expense Limitation Agreement - The Adviser has entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement shall continue in effect with respect to the Portfolio until April 27, 2014. Pursuant to that Expense Limitation Agreement, the Adviser has agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business, and Underlying Portfolios’ fees and expenses but including amounts payable

 

MIST-11

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, are limited to the following expense ratios as a percentage of the Portfolio’s average daily net assets:

 

     Maximum Expense Ratio
under Current Expense
Limitation Agreement		     Expenses Deferred in  
       2008      2009      2010      2011      2012  
       Subject to repayment until December 31,  
     Class A     Class B     2013      2014      2015      2016      2017  

MetLife Aggressive Strategy Portfolio

      0.10 %      0.35 %    $ 67,252       $ 120,935       $ 93,182       $ 22,483       $ 5,609   

Strategic Growth Portfolio*

      N/A        N/A      $ —       $ —       $ —       $ —       $ —   

 

  * On November 7, 2008, the Strategic Growth Portfolio, a series of the Trust, merged with and into MetLife Aggressive Strategy Portfolio. At that time, the Adviser was entitled to a subsidy amount of $197,052 from the Portfolio. The repayment of such subsidy amount will be repaid, as applicable, by the MetLife Aggressive Strategy Portfolio. During the six months ended June 30, 2013, the Portfolio repaid $65,845 of the subsidy amount for the Strategic Growth Portfolio.

As of June 30, 2013, there were no expenses deferred in 2013 and $74,364 was repaid to the Adviser in accordance with the Expense Limitation Agreement. The amount of expenses deferred in 2008, which were recovered during the six months ended June 30, 2013 was $74,364. Amounts recouped for the six months ended June 30, 2013 are shown as Deferred expense reimbursement in the Statement of Operations.

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratios for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratios as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred. As of June 30, 2013, there was $309,461 in expense deferrals eligible for recoupment by the Adviser.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

 

MIST-12

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

 

Underlying Portfolio (Class A)

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

Baillie Gifford International Stock

      4,617,608         2,387,199         (74,044 )      6,930,763   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      1,489,277         703,431         (28,981 )      2,163,727   

BlackRock Large Cap Value

      3,250,899         1,724,187         (207,161 )      4,767,925   

Clarion Global Real Estate

      4,656,855         2,594,187         (252,246 )      6,998,796   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      5,717,628         2,413,013         (546,634 )      7,584,007   

Davis Venture Value

      1,602,370         611,841         (379,243 )      1,834,968   

Frontier Mid Cap Growth

      —         1,082,948         (169,576 )      913,372   

Goldman Sachs Mid Cap Value

      1,518,804         950,422         (92,425 )      2,376,801   

Harris Oakmark International

      3,558,024         1,570,758         (402,579 )      4,726,203   

Invesco Comstock (formerly Van Kampen Comstock)

      5,870,197         2,575,356         (395,072 )      8,050,481   

Invesco Small Cap Growth

      2,730,868         907,455         (1,127,679 )      2,510,644   

Janus Forty

      547,750         260,919         (9,473 )      799,196   

Jennison Growth

      5,439,576         2,701,866         (163,772 )      7,977,670   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      1,417,955         567,427         (184,940 )      1,800,442   

Loomis Sayles Small Cap Growth

      2,878,530         1,149,193         (358,686 )      3,669,037   

Met/Artisan Mid Cap Value

      107,431         60,065         (9,292 )      158,204   

Met/Dimensional International Small Company

      3,093,346         1,636,120         (82,732 )      4,646,734   

MFS® Emerging Markets Equity

      2,914,796         3,940,035         (71,797 )      6,783,034   

MFS® Research International

      5,174,518         2,102,425         (1,013,272 )      6,263,671   

MFS® Value

      3,835,484         1,925,157         (260,738 )      5,499,903   

Morgan Stanley Mid Cap Growth

      1,806,157         1,062,166         (84,460 )      2,783,863   

Neuberger Berman Genesis

      807,029         1,006,455         (46,657 )      1,766,827   

T. Rowe Price Large Cap Growth

      3,612,394         1,629,048         (106,350 )      5,135,092   

T. Rowe Price Large Cap Value

      2,175,826         981,533         (142,254 )      3,015,105   

T. Rowe Price Mid Cap Growth

      2,237,759         1,483,993         (128,487 )      3,593,265   

T. Rowe Price Small Cap Growth

      —         438,280         (4,894 )      433,386   

Third Avenue Small Cap Value

      1,333,110         546,436         (160,367 )      1,719,179   

Turner Mid Cap Growth

      926,645         418,663         (1,345,308 )      —   

Van Eck Global Natural Resources

      3,312,345         1,895,117         (69,851 )      5,137,611   

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

Baillie Gifford International Stock

    $ 187,315      $ —       $ 743,175       $ 62,584,790   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      53,018        —         392,965         66,145,145   

BlackRock Large Cap Value

      609,881        1,892,163         489,406         49,824,816   

Clarion Global Real Estate

      229,806        —         3,818,273         75,796,960   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      1,722,719        —         251,320         85,850,959   

Davis Venture Value

      241,669        803,015         672,351         68,095,651   

Frontier Mid Cap Growth

      (2,527,060 )      267,414         141,893         28,268,858   

Goldman Sachs Mid Cap Value

      113,632        894,132         277,864         36,650,265   

Harris Oakmark International

      1,661,004        —         1,532,396         75,666,518   

Invesco Comstock (formerly Van Kampen Comstock)

      213,280        —         933,100         101,436,063   

Invesco Small Cap Growth

      6,948,551        1,741,049         128,115         42,254,136   

Janus Forty

      319,671        —         369,205         66,189,387   

Jennison Growth

      711,573        737,710         300,548         100,518,644   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      797,985        —         153,010         30,499,496   

Loomis Sayles Small Cap Growth

      578,414        —         —         50,412,574   

Met/Artisan Mid Cap Value

      450,445        —         243,734         36,559,375   

Met/Dimensional International Small Company

      361,815        1,292,458         931,557         63,613,788   

MFS® Emerging Markets Equity

      358,673        —         636,825         66,202,409   

 

MIST-13

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

MFS® Research International

    $ 3,762,384      $ —       $ 1,328,856       $ 65,142,178   

MFS® Value

      1,638,962        1,862,714         1,097,013         83,708,531   

Morgan Stanley Mid Cap Growth

      39,352        —         207,436         37,582,148   

Neuberger Berman Genesis

      188,252        —         145,972         26,272,713   

T. Rowe Price Large Cap Growth

      409,865        —         216,203         100,596,459   

T. Rowe Price Large Cap Value

      689,091        —         1,023,647         84,211,884   

T. Rowe Price Mid Cap Growth

      565,492        1,292,188         104,583         37,082,494   

T. Rowe Price Small Cap Growth

      (887 )      305,286         19,759         8,290,678   

Third Avenue Small Cap Value

      514,512        —         266,798         30,532,612   

Turner Mid Cap Growth

      (106,718 )      3,515,598         —         —   

Van Eck Global Natural Resources

      213,609        —         403,710         62,678,853   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 20,946,305      $ 14,603,727       $ 16,829,714       $ 1,642,668,384   
  

 

 

    

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$6,869,152    $ 9,039,397       $ —       $ —       $ 6,869,152       $ 9,039,397   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$8,927,620    $ —       $ 81,954,842       $ (124,156,661 )    $ (33,274,199 ) 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2017

    Expiring
12/31/2018		      Total  
$120,734,956*    $ 3,421,705       $ 124,156,661   

 

  * The Portfolio acquired capital losses in the merger with MetLife Aggressive Allocation Portfolio of the Metropolitan Series Fund on April 29, 2011.

9. Acquisition

At the close of business on April 26, 2013, the Portfolio, with aggregate Class A and Class B net assets of $73,784,334 and $1,073,640,005, respectively, acquired all of the assets and liabilities of Zenith Equity Portfolio of the Metropolitan Series Fund (“Zenith Equity”).

 

MIST-14

Met Investors Series Trust

MetLife Aggressive Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The acquisition was accomplished by a tax-free exchange of 44,617,982 Class A shares of the Portfolio (valued at $505,967,920) for 1,460,084 Class A shares of Zenith Equity. Each shareholder of Zenith Equity received Class A shares of the Portfolio at the Class NAV, as determined at the close of business on April 26, 2013. The transaction was part of a restructuring designed to eliminate the offering of overlapping Portfolios in the MetLife, Inc. families of funds with similar investment objectives and similar investment strategies that serve as funding vehicles for insurance contracts that are offered by affiliates of MetLife. Some of the investments held by Zenith Equity may have been purchased or sold prior to the acquisition for the purpose of complying with the anticipated investment policies or limitations of the Portfolio after the acquisition. If such purchases or sales occurred, the transaction costs were borne by Zenith Equity. All other costs associated with the merger were not borne by the shareholders of either portfolio. Zenith Equity’s net assets on April 26, 2013, were $505,967,920 for Class A shares, including investments valued at $506,025,400 with a cost basis of $512,194,667. For financial reporting purposes, assets received, liabilities assumed and shares issued by the Portfolio were recorded at fair value; however, the cost basis of the investments received by the Portfolio from Zenith Equity were carried forward to align ongoing reporting of the Portfolio’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The aggregate net assets of the Portfolio immediately after the acquisition were $1,653,392,258, which included $(6,169,267) of acquired unrealized depreciation.

Assuming the acquisition had been completed on January 1, 2013, the Portfolio’s pro-forma results of operations for the period ended June 30, 2013 are as follows:

 

Net Investment income

    $ 22,112,334  (a) 

Net realized and unrealized gain on investments

    $ 138,145,707  (b) 
  

 

 

  

Net increase in net assets from operations

    $ 160,258,041   
  

 

 

  

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Zenith Equity that have been included in the Portfolio’s Statement of Operations since April 26, 2013.

 

  (a) $14,854,460 as reported plus $7,392,816 Zenith Equity pre-merger, minus $80,324 in higher advisory fees, minus $54,618 of pro-forma additional other expenses.
  (b) $194,769,566 Unrealized appreciation, as reported June 30, 2013, minus $124,708,212 pro-forma December 31, 2012 Unrealized appreciation, plus $35,550,032 Net realized gain as reported, plus $32,534,321 in Net Realized gain from Zenith Equity pre-merger.

 

MIST-15

Met Investors Series Trust

Shareholder Votes (Unaudited)

 

At a Joint Special Meeting of Shareholders, held on February 22, 2013, the shareholders of the Portfolio voted for the following proposal:

 

     For      Against      Abstain      Total  
To approve an Agreement and Plan of Reorganization (the “Plan”) providing for the acquisition of all of the assets of Zenith Equity Portfolio (“Zenith Portfolio”) by MetLife Aggressive Strategy Portfolio (“MetLife Aggressive Portfolio”), a series of Met Investors Series Trust, in exchange for shares of MetLife Aggressive Portfolio and the assumption by MetLife Aggressive Portfolio of the liabilities of Zenith Portfolio. The Plan also provides for the distribution of these shares of MetLife Aggressive Portfolio to shareholders of Zenith Portfolio in liquidation and subsequent termination of Zenith Portfolio.      1,224,502.049         70,518.987         93,896.196        
 1,388,917.232
   

 

MIST-16

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Managed by MetLife Advisers, LLC and Pacific Investment Management Company LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the MetLife Balanced Plus Portfolio returned 4.31%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

During the first quarter of 2013, U.S. equity indices reached new highs and Treasuries sold off across the yield curve as signs of renewed momentum in the world’s largest economy fueled risk appetite. Investors discounted negative fiscal policy developments—including Congress’ failure to reach a deal on sequestration—and instead focused on positive news out of the housing and labor markets. The Federal Reserve (“Fed”) announced no change to its $85 billion dollar monthly asset purchase program, although Chairman Bernanke clarified the Fed’s thinking on how it might wind down these purchases in the future. In his March press conference, Bernanke stressed that the third round of quantitative easing (QE3) was not an “all or nothing” proposition but rather that the central bank could vary the pace of purchases as economic conditions evolved. In Europe, a botched rescue of the Cypriot financial system set new precedents in the eurozone’s four-year old debt crisis.

Conditions in financial markets deteriorated during the second quarter as investors reacted to signals by the Fed that it would begin to slow the pace of asset purchases later this year. The shift in tone fueled a broad-based sell-off of fixed income assets, undermining market liquidity, and sending yields higher across the risk spectrum. In Europe, the European Central Bank (ECB) lowered its benchmark interest rate to 0.5% during the quarter. Across the Pacific, the Bank of Japan (BoJ) stunned markets by introducing a host of new monetary measures aimed at ending the country’s chronic history of deflation.

TOTAL PORTFOLIO REVIEW / PERIOD END POSITIONING

The MetLife Balanced Plus Portfolio was composed of two segments. Approximately 70% of the Portfolio’s assets were invested in a variety of underlying portfolios of the Met Investors Series Trust and the Metropolitan Series Fund to achieve and maintain a broad asset allocation of approximately 40% to fixed income and 30% to equities. These assets (the “Base Sleeve”) were managed by the Investment Committee of MetLife Advisers. The remaining 30% of the assets (the “Overlay Sleeve”) were invested in various fixed income instruments that served as the collateral for equity index derivative instruments purchased by the Overlay Sleeve’s subadviser, Pacific Investment Management Company (PIMCO), to keep the Portfolio’s overall volatility level within the desired range by changing the Portfolio’s total realized equity exposure. When equity volatility is judged to be neutral, the Portfolio’s total equity exposure will be approximately 60%.

For the six month period, the Portfolio benefitted from an above neutral equity position in the Overlay Sleeve during a stock market rally. This advantage was offset by the negative impact from the Overlay Sleeve’s long duration bond strategy in a rising interest rate environment. Within the Base Sleeve, relative performance was hurt the most by its exposure to Treasury Inflation-Protected Securities (TIPS) and emerging market equities.

BASE SLEEVE PORTFOLIO REVIEW / PERIOD END POSITIONING

As a whole, the underlying bond portfolios detracted from the Portfolio’s performance over the period on an absolute basis and had an overall neutral impact on a relative performance. Those bond portfolios with a focus on below investment grade bonds—the BlackRock High Yield Portfolio and the Met/Eaton Vance Floating Rate Portfolio—produced positive total returns on the strength of a good first quarter. The two underlying bond portfolios with a shorter average maturity than the Barclays U.S. Aggregate Bond Index (the “Index”) (the Western Asset Management U.S. Government Portfolio and the Met/Franklin Low Duration Total Return Portfolio) both held up better than the Index in a rising interest rate environment. Although negative for the period, the Met/Templeton International Bond Portfolio did much better than its foreign bond benchmark due in a large part by avoiding Japan. The biggest absolute detractor to performance was the PIMCO Inflation Protected Bond Portfolio, which fell sharply during the second quarter in line with the decline in TIPS. A sizable exposure to TIPS also hurt the relative performance of the PIMCO Total Return Portfolio during the second quarter, erasing the excess return it earned earlier in the year.

Despite negative equity market returns in the final month of the period, all of the underlying domestic equity portfolios produced strongly positive returns during the six month period ending June. The biggest contributors to both absolute and relative returns were several large cap domestic value portfolios, which were helped by the general strength of value style stocks relative to growth style stocks. Equally important was that these portfolios did not hold market giant Apple, Inc., which began the year with a market weight of 2.9% and posted a six month return 38% less than the overall market (-24.6% for Apple and +13.9% for the Russell 1000 Index). Therefore, a large cap portfolio earned an excess relative return of about 1.1% simply by not owning Apple.

Among the biggest contributing underlying equity portfolios, the Invesco Comstock Portfolio had very good security selection, especially in the Information Technology sector where it owned Hewlett-Packard Corporation and Microsoft Corporation (while avoiding Apple, Inc.). The MFS® Value Portfolio’s underweight in the Information Technology sector and good security selection in the Financial Services and Industrials sectors were the major factors helping its relative performance. In the Financial Services sector, they owned Prudential Financial, Inc. and State Street Corporation, while in the Industrials sector they owned aerospace manufacturer Lockheed Martin and industrial technology company Honeywell International, Inc. The T. Rowe Large Cap Value Portfolio’s positive relative return was driven the most by good security selection in the Information Technology sector, where it held larger than benchmark positions in Microsoft Corporation and Dell, Inc. The ClearBridge Aggressive Growth Portfolio belied its growth-oriented investment style with overall strong security selection. In the Health Care sector, it owned biotech company Biogen Idec, Inc., and in the Information Technology sector, it avoided Apple, Inc. and owned Irish data storage device company Seagate Technology, PLC.

 

MIST-1

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Managed by MetLife Advisers, LLC and Pacific Investment Management Company LLC

Portfolio Manager Commentary*—(Continued)

 

Since growth style stocks did worse than value stocks during the period, it was not unexpected that several underlying equity portfolios with a growth style were among the largest detractors to the Portfolio’s relative performance. The Jennison Growth Portfolio was hurt by owning American Tower Corporation, a communication infrastructure Real Estate Investment Trust. It was also hurt by not owning Microsoft Corporation. The BlackRock Capital Appreciation Portfolio (formerly called the BlackRock Legacy Large Cap Growth Portfolio) was hurt mostly by weak overall security selection. For example, it owned drug company Allergan, Inc. in the Health Care sector, which fell sharply in early May. The Third Avenue Small Cap Value Portfolio also hurt relative performance due mostly to its 7% cash position and its sector weightings, including a large overweight to the weak Materials sector.

The performance of the foreign equity portfolios was mixed. On the positive side, the Harris Oakmark International had strong relative performance throughout the period due to consistently strong security selection across all sectors and regions. From Japan, they owned brokerage company Daiwa Securities Co., Ltd. and health care equipment producer Olympus Corporation, and from the United Kingdom, it held Lloyds Banking Group PLC. The investment return on foreign equities for U.S. dollar-based investors was constrained by the strong U.S. dollar relative to most foreign currencies, especially the Japanese yen. In addition, exposure to the stocks of developing countries had an overall negative impact on the Portfolio’s performance relative to both developed foreign and domestic stocks. For the Portfolio, this exposure came primarily from the MFS® Emerging Market Equity Portfolio and the Baillie Gifford International Stock Portfolio, the latter of which held nearly 23% of its assets in companies from emerging market countries. Consistent with the overall decline in the commodity markets during the period, the Van Eck Global Natural Resources Portfolio detracted from relative performance.

OVERLAY SLEEVE PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s volatility management strategy resulted in an overweight to equities during most of the period. The Portfolio’s overweight to U.S. equities, obtained via equity futures contracts, resulted in positive absolute and relative returns, given the outperformance of U.S. equity markets.

Tactical underweight duration positioning in the fixed income collateral during the first half of the year added to relative performance as rates rose across the yield curve. However, the Portfolio’s overweight to intermediate maturities while maintaining an underweight to longer-term maturities detracted from relative returns as intermediate maturities underperformed long-end maturities. Diversified duration exposure to Canada also detracted from returns as rates rose in concert with U.S. interest rates. Modest exposures to well-capitalized Financials and Sovereign bonds added to returns as spreads tightened on these securities.

In regards to Portfolio positioning, equity exposure in the Overlay Sleeve ended the period with an underweight exposure to equities as equity and fixed income volatility spiked amid investors’ negative reactions to signals by the Fed that it would begin to slow the pace of asset purchases later this year. Prior to de-risking, the Portfolio had maintained an overweight to equities for most of the period. In terms of the fixed income allocation, the collateral ended the year with a slight overweight to duration relative to the benchmark. The Portfolio was predominately overweight duration in 8- to 15-year maturities, where superior opportunities for price appreciation exist compared to those available at the short-end, where potential rate rises and volatility are constrained by Fed intervention. The collateral of the Portfolio was primarily composed of U.S. Treasuries, but also included modest exposures to high quality Corporates, Agencies, Sovereign, and Municipal bonds.

Base Sleeve

Investment Committee

MetLife Advisers, LLC

 

Overlay Sleeve

Vineer Bhansali

Steve A. Rodosky

Portfolio Managers

Pacific Investment Management Company LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

MetLife Balanced Plus Portfolio

 


A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
MetLife Balanced Plus Portfolio                 

Class B

        4.31           11.83           5.27   
Dow Jones Moderate Index        4.17           10.56           4.33   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 5/2/2011. Index returns are based on an inception date of 5/2/2011.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
U.S. Treasury Bonds      15.8   
U.S. Treasury Notes      9.7   
BlackRock Bond Income Portfolio (Class A)      8.0   
PIMCO Total Return Portfolio (Class A)      7.8   
JPMorgan Core Bond Portfolio (Class A)      5.5   
Harris Oakmark International Portfolio (Class A)      3.6   
MFS® Research International Portfolio (Class A)      3.5   
Met/Franklin Low Duration Total Return Portfolio (Class A)      3.4   
Western Asset Management U.S. Government Portfolio (Class A)      3.3   
Western Asset Management Strategic Bond Opportunities Portfolio (Class A)      3.2   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Mutual Funds      70.8   
U.S. Treasury & Government Agencies      27.6   
Foreign Government      0.6   
Corporate Bonds & Notes      0.5   
Municipals      0.5   

 

MIST-3

Met Investors Series Trust

MetLife Balanced Plus Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

MetLife Balanced Plus Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)(b)

     Actual      0.92 %     $ 1,000.00         $ 1,043.10         $ 4.66   
     Hypothetical*      0.92 %     $ 1,000.00         $ 1,020.23         $ 4.61   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

(b) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—69.5% of Net Assets

 

Security Description       
    
Shares		     Value  

Affiliated Investment Companies—69.5%

  

Baillie Gifford International Stock Portfolio
(Class A) (a)

     16,385,466      $ 147,960,754   

BlackRock Bond Income Portfolio (Class A) (a)

     5,802,578        615,943,611   

BlackRock Capital Appreciation Portfolio (formerly BlackRock Legacy Large Cap Growth Portfolio) (Class A) (a)

     1,794,483        54,857,340   

BlackRock High Yield Portfolio (Class A) (b)

     9,381,164        77,206,982   

Clarion Global Real Estate Portfolio
(Class A) (b)

     9,723,888        105,309,711   

ClearBridge Aggressive Growth Portfolio (formerly Legg Mason ClearBridge Aggressive Growth Portfolio) (Class A) (b)

     5,266,917        59,621,500   

Frontier Mid Cap Growth Portfolio
(Class A) (a)

     2,227,416        68,938,524   

Goldman Sachs Mid Cap Value Portfolio
(Class A) (b)

     11,418,279        176,069,860   

Harris Oakmark International Portfolio
(Class A) (b)

     17,140,104        274,413,065   

Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A) (b)

     4,718,438        59,452,318   

Invesco Small Cap Growth Portfolio
(Class A) (b)

     8,795,345        148,025,648   

Jennison Growth Portfolio (Class A) (a)

     4,192,991        52,831,683   

JPMorgan Core Bond Portfolio (Class A) (b)

     42,029,267        427,437,640   

JPMorgan Small Cap Value Portfolio (formerly Dreman Small Cap Value Portfolio)
(Class A) (b)

     8,533,271        144,553,608   

Met/Artisan Mid Cap Value Portfolio
(Class A) (a)

     325,718        75,270,253   

Met/Dimensional International Small Company Portfolio (Class A) (a)

     8,004,810        109,585,844   

Met/Eaton Vance Floating Rate Portfolio
(Class A) (b)

     10,015,250        104,158,599   

Met/Franklin Low Duration Total Return Portfolio (Class A) (b)

     26,099,225        259,426,294   

Met/Templeton International Bond Portfolio (Class A) (b)

     13,405,344        152,552,820   

MFS® Emerging Markets Equity Portfolio
(Class A) (b)

     9,964,273        97,251,304   

MFS® Research International Portfolio
(Class A) (b)

     25,963,905        270,024,608   

MFS® Value Portfolio (Class A) (a)

     3,857,463        58,710,590   

Morgan Stanley Mid Cap Growth Portfolio
(Class A) (b)

     5,360,320        72,364,315   

Neuberger Berman Genesis Portfolio
(Class A) (a)

     3,867,473        57,509,323   

PIMCO Inflation Protected Bond Portfolio
(Class A) (b)

     14,158,515        142,434,656   

PIMCO Total Return Portfolio (Class A) (b)

     50,955,046        598,212,240   

T. Rowe Price Large Cap Value Portfolio
(Class A) (b)

     1,924,438        53,749,547   

T. Rowe Price Small Cap Growth Portfolio
(Class A) (a)

     7,577,206        144,951,950   

Third Avenue Small Cap Value Portfolio
(Class A) (b)

     8,165,038        145,011,084   

Affiliated Investment Companies—(Continued)

  

Van Eck Global Natural Resources Portfolio
(Class A) (a)

     8,252,370      $ 100,678,910   

Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (a)

     18,570,792        244,205,915   

Western Asset Management U.S. Government Portfolio (Class A) (a)

     21,444,398        256,475,002   
   

 

 

  

Total Mutual Funds
(Cost $5,213,756,191)

       5,355,195,498   
   

 

 

  
U.S. Treasury & Government Agencies—27.1%   

Federal Agencies—1.1%

  

Federal Home Loan Mortgage Corp.

    

1.750%, 05/30/19

     36,000,000        35,440,488   

2.375%, 01/13/22

     10,500,000        10,203,658   

6.250%, 07/15/32

     30,000,000        39,756,780   

Federal National Mortgage Association

    

6.625%, 11/15/30

     1,300,000        1,764,134   
   

 

 

  
      87,165,060   
   

 

 

  

U.S. Treasury—26.0%

  

U.S. Treasury Bonds

    

2.750%, 11/15/42

     11,500,000        9,915,162   

3.000%, 05/15/42

     3,000,000        2,734,686   

3.125%, 11/15/41 (c)

     115,100,000        107,906,250   

3.125%, 02/15/42 (c)

     172,400,000        161,409,500   

3.125%, 02/15/43

     6,200,000        5,787,316   

3.750%, 08/15/41 (c)

     70,600,000        74,538,139   

4.250%, 11/15/40 (c)

     177,700,000        204,327,279   

4.375%, 05/15/40

     7,100,000        8,326,965   

4.375%, 05/15/41 (c)

     153,500,000        180,026,642   

4.500%, 05/15/38

     30,000,000        35,793,750   

4.500%, 08/15/39

     25,000,000        29,890,625   

5.375%, 02/15/31

     54,600,000        71,125,018   

5.500%, 08/15/28

     24,200,000        31,490,250   

6.000%, 02/15/26

     26,700,000        35,844,750   

6.250%, 08/15/23

     88,000,000        118,085,000   

6.250%, 05/15/30

     1,600,000        2,266,750   

6.500%, 11/15/26

     39,900,000        56,121,824   

8.000%, 11/15/21

     57,700,000        83,651,498   

U.S. Treasury Notes

    

0.125%, 12/31/13

     76,800,000        76,800,000   

0.250%, 10/31/13

     37,000,000        37,018,796   

0.250%, 01/31/14

     16,400,000        16,412,169   

0.250%, 02/28/14

     42,000,000        42,031,164   

0.250%, 03/31/14

     55,374,000        55,410,768   

0.250%, 05/31/14

     52,100,000        52,130,531   

0.500%, 10/15/13

     19,703,000        19,725,323   

0.750%, 12/15/13

     56,450,000        56,615,398   

1.000%, 01/15/14

     78,400,000        78,770,597   

1.250%, 02/15/14

     43,013,000        43,308,714   

1.250%, 03/15/14

     19,987,000        20,141,579   

1.375%, 02/28/19

     54,000,000        53,409,348   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description       
Principal
Amount*		     Value  

U.S. Treasury—(Continued)

  

U.S. Treasury Notes

    

1.500%, 12/31/13

     3,000,000      $ 3,020,391   

1.750%, 01/31/14

     11,600,000        11,709,655   

1.875%, 02/28/14

     10,700,000        10,822,462   

3.500%, 05/15/20

     12,000,000        13,275,936   

3.625%, 02/15/21

     137,600,000        152,940,198   

U.S. Treasury Principal Strips

    

Zero Coupon, 11/15/27

     39,600,000        24,955,960   

Zero Coupon, 05/15/39

     6,700,000        2,635,519   

Zero Coupon, 02/15/41

     24,000,000        8,781,912   
   

 

 

  
      1,999,157,824   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $2,182,841,573)

       2,086,322,884   
   

 

 

  
Foreign Government—0.6%   

Municipal—0.3%

  

Junta de Castilla y Leon

    

6.270%, 02/19/18 (EUR)

     7,500,000        10,342,881   

6.505%, 03/01/19 (EUR)

     7,500,000        10,400,732   
   

 

 

  
      20,743,613   
   

 

 

  

Provincial—0.3%

  

Province of Quebec Canada

    

5.750%, 12/01/36 (CAD)

     22,000,000        26,337,872   
   

 

 

  

Total Foreign Government
(Cost $50,330,668)

       47,081,485   
   

 

 

  
Corporate Bonds & Notes—0.5%   

Banks—0.1%

  

Banco del Estado de Chile

    

2.000%, 11/09/17 (144A)

     5,000,000        4,765,390   

Export-Import Bank of Korea

    

1.750%, 02/27/18

     6,700,000        6,313,062   
   

 

 

  
      11,078,452   
   

 

 

  

Capital Markets—0.0%

  

Morgan Stanley

    

1.875%, 01/24/14 (d)

     500,000        502,922   
   

 

 

  

Diversified Financial Services—0.1%

  

Bank of America Corp.

    

1.696%, 01/30/14 (d)

     1,000,000        1,005,504   

Citigroup, Inc.

    

1.727%, 01/13/14 (d)

     1,000,000        1,005,693   

LeasePlan Corp. NV

    

3.000%, 10/23/17 (144A) (e)

     5,100,000        5,116,320   

MassMutual Global Funding II

    

2.500%, 10/17/22 (144A) (e)

     4,000,000        3,625,984   
   

 

 

  
      10,753,501   
   

 

 

  

Machinery—0.1%

  

Vessel Management Services, Inc.

    

3.432%, 08/15/36

     3,854,000      $ 3,863,068   
   

 

 

  

Oil & Gas—0.1%

  

Statoil ASA

    

2.450%, 01/17/23

     5,400,000        5,002,463   
   

 

 

  

Software—0.1%

  

Microsoft Corp.

    

3.500%, 11/15/42

     4,500,000        3,850,996   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $36,945,413)

       35,051,402   
   

 

 

  
Municipals—0.4%   

Metropolitan Transportation Authority NY, Dedicated Tax Fund Revenue, Refunding

    

5.000%, 11/15/29

     4,000,000        4,326,000   

New Mexico State Hospital Equipment Loan Council Hospital Revenue

    

5.000%, 08/01/42

     1,000,000        1,036,890   

New York State Dormitory Authority, State Personal Income Tax Revenue, Refunding

    

5.000%, 02/15/42

     6,000,000        6,308,280   

Pennsylvania State Economic Development Financing Authority Unemployment Compensation Revenue, Refunding

    

5.000%, 07/01/22

     4,000,000        4,418,360   

San Francisco Bay Area CA, Toll Authority, Toll Bridge Revenue, Refunding

    

5.000%, 04/01/30

     7,930,000        8,558,373   

University of California CA, Revenue

    

1.796%, 07/01/19

     8,500,000        8,262,170   

Utah County UT Hospital Revenue, Intermountain Healthcare Health Services, Inc.

    

5.000%, 05/15/43

     2,000,000        2,083,020   
   

 

 

  

Total Municipals
(Cost $37,575,262)

       34,993,093   
   

 

 

  
Mortgage-Backed Securities—0.0%   

Commercial Mortgage-Backed Securities—0.0%

  

JPMorgan Chase Commercial Mortgage Securities Corp.

    

4.106%, 07/15/46 (144A)

     100,000        106,568   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $101,000)

       106,568   
   

 

 

  
Purchased Option—0.0%   

Put Option

    

S&P 500 Index, Strike Price $675
Expires 09/19/13
(Cost $167,625)

     6,080        76,000   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Short-Term Investments—1.8%

 

Security Description   Principal
Amount*
     Value  

Commercial Paper—0.5%

  

Banco do Brasil S.A.

    

1.217%, 01/24/14 (f)

     25,000,000      $ 24,829,540   

Itau Unibanco S.A. New York

    

1.521%, 10/31/13 (f)

     10,000,000        9,949,918   

Santander Consumer Bank SA

    

3.100%, 10/01/13 (f)

     4,200,000        4,166,727   
   

 

 

  
      38,946,185   
   

 

 

  

Discount Notes—0.5%

  

Fannie Mae

    

0.125%, 01/27/14 (f)

     10,000,000        9,992,708   

Freddie Mac

    

0.160%, 01/14/14 (f)

     18,392,000        18,375,897   

0.160%, 02/04/14 (f)

     12,500,000        12,487,889   
   

 

 

  
      40,856,494   
   

 

 

  

U.S. Treasury—0.1%

  

U.S. Treasury Bills

    

0.132%, 01/09/14 (c) (f) (g)

     3,738,000        3,735,408   

0.138%, 01/09/14 (f)

     757,000        756,451   
   

 

 

  
      4,491,859   
   

 

 

  

Repurchase Agreements—0.7%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $5,487,005 on 07/01/13, collateralized by $5,650,000 U.S. Treasury Note at 0.750% due 06/30/17 with a value of $5,600,563.

     5,487,000        5,487,000   

Goldman Sachs & Co.
Repurchase Agreement dated 06/28/2013 at 0.150% to be repurchased at $46,300,579 on 07/01/13, collateralized by $49,036,000 Federal Home Loan Mortgage Corp. at 3.000% due 06/01/43 with a value of $47,883,654.

     46,300,000        46,300,000   
   

 

 

  
      51,787,000   
   

 

 

  

Total Short-Term Investments
(Cost $136,081,538)

       136,081,538   
   

 

 

  

Total Investments—99.9%
(Cost $7,657,799,270) (h)

       7,694,908,468   

Other assets and liabilities (net)—0.1%

       9,478,059   
   

 

 

  
Net Assets—100.0%     $ 7,704,386,527   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) A Portfolio of Metropolitan Series Fund. (See Note 7 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b) A Portfolio of Met Investors Series Trust. (See Note 7 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c) All or a portion of the security was pledged as collateral against open futures contracts. As of June 30, 2013, the market value of securities pledged was $74,483,626.
(d) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(e) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of June 30, 2013, the market value of restricted securities was $8,742,304, which is 0.1% of net assets. See details shown in the Restricted Securities table that follows.
(f) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(g) All or a portion of the security was pledged as collateral against open forward foreign currency contracts. As of June 30, 2013, the market value of securities pledged was $741,485.
(h) As of June 30, 2013, the aggregate cost of investments was $7,657,799,270. The aggregate unrealized appreciation and depreciation of investments were $288,957,243 and $(251,848,045), respectively, resulting in net unrealized appreciation of $37,109,198.
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $13,614,262, which is 0.2% of net assets.
(CAD)— Canadian Dollar
(EUR)— Euro

 

Restricted Securities

      Acquisition
Date		        Principal
Amount		        Cost        Value  

LeasePlan Corp. NV

        10/15/12         $ 5,100,000         $ 5,097,113         $ 5,116,320   

MassMutual Global Funding II

        10/10/12           4,000,000           3,972,061           3,625,984   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
BRL 18,393,280      UBS AG        08/02/13         $ 9,052,702         $ (867,179 ) 

Contracts to Deliver

                                  
CAD 29,679,000      Citibank N.A.        09/23/13         $ 29,087,221           923,460   
EUR 14,999,000      Bank of America N.A.        09/17/13           19,808,669           278,676   
                   

 

 

  

Net Unrealized Appreciation

  

      $ 334,957   
              

 

 

  

Futures Contracts

 

Futures Contracts-Long

      Expiration
Date		        Number of
Contracts		        Notional
Amount		        Unrealized
Depreciation		  

S&P 500 E-Mini Index Futures

        09/20/13           18,817           USD 1,532,061,666         $ (27,360,261 ) 

U.S. Treasury Bond Futures

        09/19/13           1,060           USD    148,318,299           (4,323,925 ) 
                   

 

 

  

Net Unrealized Depreciation

  

      $ (31,684,186 ) 
                   

 

 

  

 

(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(EUR)— Euro
(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1     Level 2     Level 3      Total  

Total Mutual Funds*

    $ 5,355,195,498      $ —        $ —         $ 5,355,195,498   

Total U.S. Treasury & Government Agencies*

      —          2,086,322,884        —           2,086,322,884   

Total Foreign Government*

      —          47,081,485        —           47,081,485   

Total Corporate Bonds & Notes*

      —          35,051,402        —           35,051,402   

Total Municipals

      —          34,993,093        —           34,993,093   

Total Mortgage-Backed Securities*

      —          106,568        —           106,568   

Total Purchased Option

      76,000        —          —           76,000   
Short-Term Investments          

Commercial Paper

      —          38,946,185        —           38,946,185   

Discount Notes

      —          40,856,494        —           40,856,494   

U.S. Treasury

      —          4,491,859        —           4,491,859   

Repurchase Agreements

      —          51,787,000        —           51,787,000   

Total Short-Term Investments

      —          136,081,538        —           136,081,538   

Total Investments

    $ 5,355,271,498      $ 2,339,636,970      $ —         $ 7,694,908,468   
                                   
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 1,202,136      $ —         $ 1,202,136   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (867,179 )      —           (867,179 ) 

Total Forward Contracts

    $ —        $ 334,957      $ —         $ 334,957   
Futures Contracts          

Futures Contracts (Unrealized Depreciation)

    $ (31,684,186 )    $ —        $ —         $ (31,684,186 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Balanced Plus Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 2,339,712,970   

Affiliated investments at value (b)

      5,355,195,498   

Cash

      565   

Cash denominated in foreign currencies (c)

      602,783   

Cash collateral for futures contracts

      69,000   

Unrealized appreciation on forward foreign currency exchange contracts

      1,202,136   

Receivable for:

   

Fund shares sold

      8,468,324   

Interest

      16,977,138   

Variation margin on futures contracts

      265,000   
  

 

 

  

Total Assets

      7,722,493,414   

Liabilities

   

Payables for:

   

Investments purchased

      5,835,170   

Fund shares redeemed

      132,367   

Cash collateral for forward foreign currency exchange contracts

      1,090,000   

Unrealized depreciation on forward foreign currency exchange contracts

      867,179   

Variation margin on futures contracts

      6,868,205   

Accrued expenses:

   

Management fees

      1,557,838   

Distribution and service fees

      1,592,130   

Deferred trustees’ fees

      21,608   

Other expenses

      142,390   
  

 

 

  

Total Liabilities

      18,106,887   
  

 

 

  

Net Assets

    $ 7,704,386,527   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 7,120,153,012   

Undistributed net investment income

      132,153,569   

Accumulated net realized gain

      446,340,626   

Unrealized appreciation on investments, affiliated investments, futures contracts and foreign currency transactions

      5,739,320   
  

 

 

  

Net Assets

    $ 7,704,386,527   
  

 

 

  

Net Assets

   

Class B

    $ 7,704,386,527   

Capital Shares Outstanding*

   

Class B

      714,307,769   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.79   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $2,444,043,079.
(b) Identified cost of affiliated investments was $5,213,756,191.
(c) Identified cost of cash denominated in foreign currencies was $617,132.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from affiliated investments

    $ 128,673,819   

Interest

      21,504,178   
  

 

 

  

Total investment income

      150,177,997   

Expenses

   

Management fees

      9,007,967   

Administration fees

      35,881   

Custodian and accounting fees

      87,752   

Distribution and service fees—Class B

      9,100,036   

Interest expense

      352   

Audit and tax services

      18,179   

Legal

      9,806   

Trustees’ fees and expenses

      13,446   

Shareholder reporting

      22,494   

Insurance

      4,498   

Miscellaneous

      4,662   
  

 

 

  

Total expenses

      18,305,073   

Less management fee waiver

      (123,972 ) 
  

 

 

  

Net expenses

      18,181,101   
  

 

 

  

Net Investment Income

      131,996,896   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      275,938   

Affiliated investments

      67,907,562   

Futures contracts

      323,114,463   

Foreign currency transactions

      1,457,487   

Capital gain distributions from Affiliated Underlying Portfolios

      66,944,327   
  

 

 

  

Net realized gain

      459,699,777   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (133,010,223 ) 

Affiliated investments

      (144,282,958 ) 

Futures contracts

      (32,695,023 ) 

Foreign currency transactions

      44,157   
  

 

 

  

Net change in unrealized depreciation

      (309,944,047 ) 
  

 

 

  

Net realized and unrealized gain

      149,755,730   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 281,752,626   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 131,996,896      $ 76,000,849   

Net realized gain

      459,699,777        208,808,760   

Net change in unrealized appreciation (depreciation)

      (309,944,047 )      280,964,199   
  

 

 

    

 

 

  

Increase in net assets from operations

      281,752,626        565,773,808   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (94,628,528 )      (6,497 ) 

Net realized capital gains

     

Class B

      (152,861,468 )      0   
  

 

 

    

 

 

  

Total distributions

      (247,489,996 )      (6,497 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      1,210,816,208        2,741,602,136   
  

 

 

    

 

 

  

Total Increase in Net Assets

      1,245,078,838        3,307,369,447   

Net Assets

     

Beginning of period

      6,459,307,689        3,151,938,242   
  

 

 

    

 

 

  

End of period

    $ 7,704,386,527      $ 6,459,307,689   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 132,153,569      $ 94,785,201   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      93,175,301      $ 1,033,230,829        275,325,275      $ 2,778,844,068   

Reinvestments

      22,747,242        247,489,996        647        6,497   

Redemptions

      (6,327,616 )      (69,904,617 )      (3,657,779 )      (37,248,429 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      109,594,927      $ 1,210,816,208        271,668,143      $ 2,741,602,136   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 1,210,816,208        $ 2,741,602,136   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Financial Highlights

 

Selected per share data  
     Class B  
     Six Months Ended
June 30,		    

Period Ended
December 31,

  
     2013 (Unaudited)     2012     2011(a)  

Net Asset Value, Beginning of Period

    $ 10.68      $ 9.46      $ 10.00   
  

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

       

Net investment income (b)

      0.20        0.16        0.01   

Net realized and unrealized gain (loss) on investments

      0.28        1.06        (0.54 ) 
  

 

 

    

 

 

    

 

 

  

Total from investment operations

      0.48        1.22        (0.53 ) 
  

 

 

    

 

 

    

 

 

  

Less Distributions

       

Distributions from net investment income

      (0.14 )      (0.00 )(c)      (0.01 ) 

Distributions from net realized capital gains

      (0.23 )      0.00        0.00   
  

 

 

    

 

 

    

 

 

  

Total distributions

      (0.37 )      0.00        (0.01 ) 
  

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.79      $ 10.68      $ 9.46   
  

 

 

    

 

 

    

 

 

  

Total Return (%) (d)

      4.31 (e)      13.11        (5.28 )(e) 

Ratios/Supplemental Data

       

Gross ratio of expenses to average net assets (%) (g)

      0.50  (f)      0.51        0.54  (f) 

Net ratio of expenses to average net assets (%) (g) (h)

      0.50  (f)      0.51        0.54  (f) 

Ratio of net investment income to average net assets (%)

      1.84  (f)(i)      1.55        0.17  (f) 

Portfolio turnover rate (%)

      10  (e)      13        10  (e) 

Net assets, end of period (in millions)

    $ 7,704.4      $ 6,459.3      $ 3,151.9   

 

(a) Commencement of operations was May 2, 2011.
(b) Per share amounts based on average shares outstanding during the period.
(c) Distributions from net investment income were less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.
(g) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(h) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(i) The income earned by the Portfolio through the investments in Underlying Portfolios is not annualized.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust.

The portfolio included in this report is MetLife Balanced Plus Portfolio (the “Portfolio”) which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B Shares are currently offered by the Portfolio.

Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio invests approximately 70% of its assets (the “Base Portion”) in other Portfolios of the Trust or of Metropolitan Series Fund (“Underlying Portfolios”) and approximately 30% of its assets (the “Overlay Portion”) in a portfolio of fixed income instruments that serve as collateral for derivative instruments, primarily stock index futures.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized

 

MIST-13

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

 

MIST-14

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to futures transactions, foreign currency transactions, premium amortization adjustments, short term dividend reclass from Underlying Fund and mortgage dollar rolls. These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $51,787,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Secured Borrowing Transactions - The Portfolio may enter into transactions consisting of a transfer of a security by the Portfolio to a financial institution or counterparty, with a simultaneous agreement to reacquire the same, or substantially the same security, at an agreed upon price and future settlement date. Such transactions are treated as secured borrowings, and not as purchases and sales. The Portfolio receives cash from the transfer of the security to use for other investment purposes. During the period ended December 31, 2012, the Portfolio entered into secured borrowing transactions involving U.S. Treasury and sovereign debt securities. During the term of the borrowing, the Portfolio is not entitled to receive principal and interest payments, if any, made on the security transferred to the counterparty during the term of the agreement. The difference between the transfer price and the reacquisition price, known as the “price drop”, is included in net investment income with the cost of the secured borrowing transaction being recorded in interest expense over the term of the borrowing. The agreed upon proceeds for securities to be reacquired by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells TBA mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Secured borrowing transactions and mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to reacquire may be less than the agreed upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the secured borrowing transaction or mortgage dollar roll.

Mortgage Related and Other Asset Backed Securities - The Portfolio may invest in mortgage related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

 

MIST-15

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Options Contracts - An option contract purchased by the Portfolio gives the Portfolio the right, but not the obligation, to buy (call) or sell (put) an underlying instrument at a fixed exercise price during a specified period. Call options written by the Portfolio give the holder the right to buy the underlying instrument from the Portfolio at a fixed exercise price; put options written by the Portfolio give the holder the right to sell the underlying instrument to the Portfolio at a fixed exercise price.

The Portfolio may use options to hedge against changes in values of securities the Portfolio owns or expects to purchase, to maintain exposure to the broad equity markets or to enhance return. Writing puts or buying calls tend to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tend to decrease the Portfolio’s exposure to the underlying instrument, and can be used to hedge other Portfolio investments. For options used to hedge the Portfolio’s investments, the potential risk to the Portfolio is that the change in value of options contracts may not correspond perfectly to the change in value of the hedged instruments. The Portfolio also bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Portfolio may not be able to enter into a closing transaction due to an illiquid market. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of purchased options is typically the premium initially paid for the option plus any unrealized gains.

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered a loss. The risk associated with writing a call option is that the Portfolio may forgo the opportunity for a profit if the market value of the underlying instrument increases and the option is exercised, requiring

 

MIST-16

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

the Portfolio to sell the underlying instrument at a price below its market value. When the Portfolio writes a call option on a security it does not own, its exposure on such an option is theoretically unlimited. The risk in writing a put option is that the Portfolio may incur a loss if the market value of the underlying instrument decreases and the option is exercised, requiring the Portfolio to purchase the underlying instrument at a price above its market value. In addition, the Portfolio risks not being able to enter into a closing transaction for the written option as the result of an illiquid market for the option.

Purchases of put and call options are recorded as investments, the value of which are marked-to-market daily. When a purchased option expires without being exercised, the Portfolio will realize a loss equal to the premium paid. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the premium initially paid for the option. When the Portfolio exercises a put option, it will realize a gain or loss from the sale of the underlying instrument and the proceeds from such sale will be decreased by the premium originally paid for the put option. When the Portfolio exercises a call option, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid for the call option.

The premium received for a written option is recorded as an asset and an equivalent liability. The liability is marked-to-market daily in accordance with the option’s valuation policy. When a written option expires without being exercised or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying instrument and the liability related to such option is eliminated. When a written call option is exercised, the Portfolio realizes a gain or loss, as adjusted for the premium received, from the sale of the underlying instrument. When a written put option is exercised, the premium received is offset against the amount paid for the purchase of the underlying instrument.

The purpose of inflation-capped options is to protect the buyer from inflation, above a specified rate, eroding the value of investments in inflation-linked products with a given notional exposure. Inflation-capped options are used to give downside protection to investments in inflation-linked products by establishing a floor on the value of such products.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

      Liability Derivatives  

Risk Exposure

   

Statement of Assets &

Liabilities Location

    Fair Value      Statement of Assets &
Liabilities Location		   Fair Value  
Interest Rate          Unrealized depreciation on futures

contracts* (b)

   $ 4,323,925   
Equity    Investments at market value (a)(b)    $ 76,000        
         Unrealized depreciation on futures
contracts* (b)		     27,360,261   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      1,202,136       Unrealized depreciation on
forward foreign currency
exchange contracts		     867,179   
     

 

 

       

 

 

  
Total       $ 1,278,136         $ 32,551,365   
     

 

 

       

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		      Collateral
Received(c)		     Net Amount  

Bank of America N.A.

    $ 278,676       $ —       $ (278,676 )    $ —   

Citibank N.A.

      923,460         —         (800,000 )      123,460   
  

 

 

     

 

 

     

 

 

    

 

 

  
   $ 1,202,136       $ —       $ (1,078,676 )    $ 123,460   
  

 

 

     

 

 

     

 

 

    

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		      Collateral
Pledged(c)		     Net Amount  

UBS AG

    $ 867,179       $ —       $ (742,000 )    $ 125,179   
  

 

 

     

 

 

     

 

 

    

 

 

  

 

MIST-17

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Equity     Foreign
Exchange		      Total  

Investments (a)

    $ —      $ (287,849 )    $ —       $ (287,849 ) 

Forward foreign currency transactions

      —        —        1,608,091         1,608,091   

Futures contracts

      (3,867,863 )      326,982,326        —         323,114,463   
  

 

 

    

 

 

    

 

 

     

 

 

  
   $ (3,867,863 )    $ 326,694,477      $ 1,608,091       $ 324,434,705   
  

 

 

    

 

 

    

 

 

     

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation
(Depreciation)

    Interest Rate     Equity     Foreign
Exchange		      Total  

Investments (a)

    $ —      $ (26,222 )    $ —       $ (26,222 ) 

Forward foreign currency transactions

      —        —        64,304         64,304   

Futures contracts

      (3,085,232 )      (29,609,791 )      —         (32,695,023 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  
   $ (3,085,232 )    $ (29,636,013 )    $ 64,304       $ (32,656,941 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount (d)		  

Investments (a)

    $ 1,292,375   

Forward foreign currency transactions

      38,095,400   

Futures contracts long

      87,816,333   

 

  (a) Includes options purchased which are part of investments as shown in the Statement of Assets and Liabilities and net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.
  (b) Financial instrument not subject to a master netting agreement.
  (c) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (d) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close

 

MIST-18

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$518,919,563    $ 1,555,501,740       $ 66,076,828       $ 621,219,040   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is responsible for managing the Base Portion of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Pacific Investment Management Company LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Overlay Portion of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets of the Overlay Portion of the Portfolio.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management

Fees earned by

the Adviser (Overlay
Portion managed by PIMCO)
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
of the Overlay Portion
$4,063,838      0.725 %    First $250 million
     0.700 %    $250 million to $750 million
     0.675 %    $750 million to $1 billion
     0.650 %    Over $1 billion

 

Management

Fees earned by

the Adviser (Base Portion
managed by MetLife Advisers)
for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
of the Base Portion
$4,944,129      0.100 %    First $500 Million
     0.075 %    $500 Million to $1 Billion
     0.050 %    Over $1 Billion

In addition to the above management fees paid to the Adviser, the Portfolio indirectly pays MetLife Advisers a management fee through its investment in the Underlying Portfolios.

 

MIST-19

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

Overlay Portion:

 

% per annum reduction

    Average Daily Net Assets
of the Overlay Portion
0.050%    First $250 million
0.025%    $250 million to $750 million

An identical agreement was in place for the period January 1, 2013 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Expense Limitation Agreement - The Adviser had entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement continued in effect with respect to the Portfolio until April 28, 2013. Pursuant to that Expense Limitation Agreement, the Adviser had agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business, and Underlying Portfolios’ fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, were limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio
under current Expense
Limitation Agreement

Class B

0.65%

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred.

Effective April 29, 2013, there was no longer an expense cap for the Portfolio. For the six months ended June 30, 2013, there were no amounts waived or expenses repaid to the Adviser in accordance with the Expense Limitation Agreement.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

 

MIST-20

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

7. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

The Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolio’s net assets. Transactions in the Underlying Portfolios for the six months ended June 30, 2013 were as follows:

 

Underlying Portfolio (Class A)

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

Baillie Gifford International Stock

      22,153,698         3,046,170         (8,814,402 )      16,385,466   

BlackRock Bond Income

      5,718,897         1,175,918         (1,092,237 )      5,802,578   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      1,555,793         243,429         (4,739 )      1,794,483   

BlackRock High Yield

      10,368,586         2,220,883         (3,208,305 )      9,381,164   

Clarion Global Real Estate

      8,286,606         1,775,308         (338,026 )      9,723,888   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      4,965,575         668,301         (366,959 )      5,266,917   

Frontier Mid Cap Growth

      —         2,231,569         (4,153 )      2,227,416   

Goldman Sachs Mid Cap Value

      9,916,673         1,850,901         (349,295 )      11,418,279   

Harris Oakmark International

      22,412,541         2,942,665         (8,215,102 )      17,140,104   

Invesco Comstock (formerly Van Kampen Comstock)

      4,294,824         615,023         (191,409 )      4,718,438   

Invesco Small Cap Growth

      7,379,597         1,556,854         (141,106 )      8,795,345   

Jennison Growth

      —         4,200,804         (7,813 )      4,192,991   

JPMorgan Core Bond

      —         42,110,644         (81,377 )      42,029,267   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      7,559,681         1,082,132         (108,542 )      8,533,271   

Met/Artisan Mid Cap Value

      229,555         96,979         (816 )      325,718   

Met/Dimensional International Small Company

      6,711,166         1,323,320         (29,676 )      8,004,810   

Met/Eaton Vance Floating Rate

      8,186,577         1,855,841         (27,168 )      10,015,250   

Met/Franklin Low Duration Total Return

      20,997,559         5,172,936         (71,270 )      26,099,225   

Met/Templeton International Bond

      11,368,738         2,073,157         (36,551 )      13,405,344   

MFS® Emerging Markets Equity

      8,315,831         1,675,510         (27,068 )      9,964,273   

MFS® Research International

      28,097,212         4,207,527         (6,340,834 )      25,963,905   

MFS® Value

      3,336,662         641,712         (120,911 )      3,857,463   

Morgan Stanley Mid Cap Growth

      3,713,430         1,660,130         (13,240 )      5,360,320   

Neuberger Berman Genesis

      3,386,903         500,781         (20,211 )      3,867,473   

PIMCO Inflation Protected Bond

      11,218,800         2,979,165         (39,450 )      14,158,515   

PIMCO Total Return

      51,535,317         10,158,461         (10,738,732 )      50,955,046   

T. Rowe Price Large Cap Value

      —         1,927,983         (3,545 )      1,924,438   

T. Rowe Price Small Cap Growth Mutual Fund

      6,253,934         1,342,304         (19,032 )      7,577,206   

Third Avenue Small Cap Value

      7,202,711         1,069,396         (107,069 )      8,165,038   

Van Eck Global Natural Resources

      6,827,482         1,446,969         (22,081 )      8,252,370   

Western Asset Management Strategic Bond Opportunities*

      16,057,839         3,259,057         (746,104 )      18,570,792   

Western Asset Management U.S. Government

      17,192,557         4,310,560         (58,719 )      21,444,398   

 

  * The Portfolio had ownership of at least 25% of the outstanding voting securities of the Underlying Portfolio as of June 30,2013. The most recent Annual Report of the Underlying Portfolio is available without charge, upon request, by calling (800) 848-3854 or on the Securities and Exchange Commission’s website at http:// www.sec.gov.

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

Baillie Gifford International Stock

    $ 7,729,979      $ —       $ 2,416,948       $ 147,960,754   

BlackRock Bond Income

      8,967,120        14,286,085         23,437,949         615,943,611   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      6,481        —         445,134         54,857,340   

BlackRock High Yield

      3,031,904        1,992,124         5,073,818         77,206,982   

Clarion Global Real Estate

      699,401        —         7,233,272         105,309,711   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      914,094        —         236,901         59,621,500   

Frontier Mid Cap Growth

      (1,453 )      1,606,803         852,591         68,938,524   

Goldman Sachs Mid Cap Value

      702,240        6,011,084         1,868,028         176,069,860   

 

MIST-21

Met Investors Series Trust

MetLife Balanced Plus Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

Harris Oakmark International

    $ 29,630,847      $ —       $ 7,332,618       $ 274,413,065   

Invesco Comstock (formerly Van Kampen Comstock)

      398,044        —         742,785         59,452,318   

Invesco Small Cap Growth

      169,090        8,354,101         614,735         148,025,648   

Jennison Growth

      1,328        533,523         217,361         52,831,683   

JPMorgan Core Bond

      (14,074 )      1,750,918         2,188,648         427,437,640   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      122,377        —         976,360         144,553,608   

Met/Artisan Mid Cap Value

      28,314        —         703,499         75,270,253   

Met/Dimensional International Small Company

      (78,439 )      3,057,287         2,203,581         109,585,844   

Met/Eaton Vance Floating Rate

      5,422        457,393         4,043,352         104,158,599   

Met/Franklin Low Duration Total Return

      2,162        —         4,485,574         259,426,294   

Met/Templeton International Bond

      (17,612 )      662,054         3,297,780         152,552,820   

MFS® Emerging Markets Equity

      (34,818 )      —         1,315,598         97,251,304   

MFS® Research International

      5,646,067        —         7,401,950         270,024,608   

MFS® Value

      324,569        1,778,440         1,047,381         58,710,590   

Morgan Stanley Mid Cap Growth

      251        —         555,374         72,364,315   

Neuberger Berman Genesis

      35,325        —         449,084         57,509,323   

PIMCO Inflation Protected Bond

      (12,411 )      7,903,498         3,321,217         142,434,656   

PIMCO Total Return

      8,314,554        11,062,288         25,199,982         598,212,240   

T. Rowe Price Large Cap Value

      2,198        —         884,834         53,749,547   

T. Rowe Price Small Cap Growth Mutual Fund

      32,468        7,488,729         484,685         144,951,950   

Third Avenue Small Cap Value

      194,976        —         1,703,569         145,011,084   

Van Eck Global Natural Resources

      (87,557 )      —         914,387         100,678,910   

Western Asset Management Strategic Bond Opportunities

      1,169,670        —         11,766,176         244,205,915   

Western Asset Management U.S. Government

      25,045        —         5,258,648         256,475,002   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 67,907,562      $ 66,944,327       $ 128,673,819       $ 5,355,195,498   
  

 

 

    

 

 

     

 

 

     

 

 

  

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

9. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$6,497    $ 4,059,770       $ —       $ —       $ 6,497       $ 4,059,770   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$160,993,726    $ 85,827,508       $ 303,165,883       $ —       $ 549,987,117   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-22

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the MetLife Balanced Strategy Portfolio returned 6.70% and 6.57%, respectively. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

The global capital markets continued to respond to changing perceptions about the prospects for economic growth and the efforts by governments throughout the world to both avoid a new economic recession and to meet their fiscal responsibilities. Interest rates jumped in the second quarter following ambiguous comments by Federal Reserve Chairman Benjamin Bernanke. The Five Year Treasury Note yield rose from a 0.74% level at the end of 2012 to a 1.40% level at the end of June. For the entire six month period, the Barclays U.S. Aggregate Bond Index returned a negative 2.44%. As expected in a declining interest rate environment, long maturity bonds declined more than short maturity bonds. Below investment grade bonds were able to modestly positive return because of a strong first quarter return and a higher coupon. Foreign denominated bonds fell even more sharply because of the impact of a strong U.S. dollar relative to other currencies.

Even with a decline late in the second quarter, U.S. stocks produced strong returns during the first half of 2013. The Standard & Poor’s 500 Index returned 13.82% for the period. Small cap stocks, as measured by the Russell 2000 Index, did even better with a 15.86% return. While both investment styles posted double digit returns, value style stocks did slightly better than growth style stocks (15.90% for the Russell 1000 Value Index compared to 11.80% for the Russell 1000 Growth Index). The Health Care and Financial Services sectors were the best performers for the period; the Information Technology and Materials sectors trailed.

On a local currency basis, foreign stocks from developed countries produced a return close to that of domestic stocks as measured by the 11.01% local currency return of the MSCI EAFE Index. A rise in the value of dollar reduced that return for U.S. investors to only 4.10%. Emerging market stocks did even worse as the strong dollar and concerns about China’s slower economic growth produced a return of negative 9.57% in the MSCI Emerging Markets Index. Combining emerging and developed markets, foreign stocks produced a nearly flat return of 0.16% for the six month period as measured by the MSCI All Country World Ex U.S. Index in U.S. dollars.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The MetLife Balanced Strategy Portfolio invested in underlying portfolios of the Met Investors Series Trust and the Metropolitan Series Fund to maintain a broad asset allocation of approximately 65% to equities and 35% to fixed income. While the Portfolio’s strategic asset class goals did not change during the period, there were several changes in the underlying portfolios used to achieve those allocations. Most notable was the addition of the JPMorgan Core Bond Portfolio to add diversity to the fixed income segment. Two new equity portfolios were added: the JPMorgan Small Cap Value Portfolio and the T. Rowe Price Small Cap Growth Portfolio. In addition, to more closely reflect the global equity markets, the position in the MFS® Emerging Market Equity Portfolio was increased from 1.0% to 2.0%.

Despite negative returns in the final month of the period, all of the underlying domestic equity portfolios produced strongly positive returns during the six-month period ending June 30, 2013. Among the biggest contributors to both absolute and relative returns were several large cap domestic value portfolios, which were helped by the general strength of value style stocks relative to growth style stocks. Equally important was that these portfolios did not hold market giant Apple, Inc., which declined 24.6% for the period. One of these strong performing value portfolios was the Invesco Comstock Portfolio, which had very good security selection in the Information Technology sector where it owned Hewlett-Packard Corporation and Microsoft Corporation. The MFS® Value Portfolio’s underweight in the Information Technology sector and good security selection in the Financial Services and Industrials sectors were the major factors helping its relative performance. In the Financial Services sector, it owned Prudential Financial, Inc. and State Street Corporation; while in the Industrials sector it owned aerospace manufacturer Lockheed Martin and industrial technology company Honeywell International, Inc. The Davis Venture Value Portfolio benefitted mostly from good security selection in the Consumer Discretionary sector, where it held NetFlix, Inc., and the Information Technology sector, where it owned Google, Inc. The T. Rowe Price Large Cap Value Portfolio’s relative return was due to positive security selection in the Information Technology sector. While most underlying portfolios with a growth style orientation struggled during the period, the ClearBridge Aggressive Growth Portfolio belied its growth oriented investment style with strong security selection. In the Health Care sector, it owned biotech company Biogen Idec, Inc., and in the Information Technology sector, it avoided Apple, Inc. and owned Irish data storage device company Seagate Technology, PLC.

Since growth style stocks lagged value stocks during the six month period, it was not surprising that several underlying equity portfolios with a growth style were among the largest detractors to the Portfolio’s relative performance. The Jennison Growth Portfolio was hurt by owning American Tower Corporation, a communication infrastructure real estate investment trust. It was also hurt by not owning Microsoft Corporation. The BlackRock Capital Appreciation Portfolio (formerly called the BlackRock Legacy Large Cap Growth Portfolio) was hurt mostly by weak overall security selection. For example, they owned drug company Allergan, Inc. in the Health Care sector, which fell sharply in early May. The T. Rowe Price Large Cap Growth Portfolio was hurt by its growth style and by its selection in the Financial Services and Information Technology sectors. It owned American Tower Corp. and held a large overweight position in Apple, Inc. The Third Avenue Small Value Portfolio also hurt relative

 

MIST-1

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

performance due mostly to its 7% cash position and its sector weightings, including a large overweight to the weak Materials sector.

The investment return on foreign equities for U.S. dollar-based investors was constrained by the strong dollar relative to most foreign currencies, especially the Japanese yen. In addition, exposure to the stocks of developing countries had an overall negative impact on the Portfolio’s performance relative to both developed foreign and domestic stocks. For the Portfolio, this exposure came primarily from the MFS Emerging Markets Equity Portfolio and the Baillie Gifford International Stock Portfolio, the latter of which held nearly 23% of its assets in companies from emerging market countries. Consistent with the overall decline in the real estate investment trust market during the period, the Clarion Global Real Estate Portfolio detracted from relative performance. On the positive side, the Harris Oakmark International Portfolio had strong relative performance throughout the period due to consistently strong security selection across all sectors and regions. From Japan, they owned brokerage company Daiwa Securities Co., Ltd. and health care equipment producer Olympus Corporation, and from the United Kingdom, they held Lloyds Banking Group PLC.

As a whole, the underlying bond portfolios detracted from the Portfolio’s performance over the period on an absolute basis and had an overall neutral impact on relative performance. Those bond portfolios with a focus on below investment grade bonds—the Lord Abbett Bond Debenture Portfolio, the BlackRock High Yield Portfolio, and the Met/Eaton Vance Floating Rate Portfolio—produced positive total returns on the strength of a good first quarter. The two underlying bond portfolios with a shorter average maturity than the Barclays U.S. Aggregate Bond Index (the “Index”) (the Western Asset Management U.S. Government Portfolio and the Met/Franklin Low Duration Total Return Portfolio) both held up better than the Index in a rising interest rate environment. Although negative for the period, the Met/Templeton International Bond Portfolio did much better than its foreign bond benchmark due to avoiding exposure to fixed income securities tied to the Japanese yen. The biggest absolute detractor to the Portfolio’s performance was the PIMCO Inflation-Protected Bond Portfolio, which fell sharply during the second quarter in line with the decline in Treasury Inflation Protected Securities (TIPS). A sizable exposure to TIPS also hurt the relative performance of the PIMCO Total Return Portfolio during the second quarter, erasing the excess return it earned earlier in the year.

Investment Committee

MetLife Advisers, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
MetLife Balanced Strategy Portfolio                      

Class A

        6.70           15.08           5.58           5.63   

Class B

        6.57           14.76           5.31           5.21   
Dow Jones Moderate Index        4.17           10.56           5.47           6.28   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 11/4/2004. Inception of the Class A shares is 5/2/2005. Index returns are based on an inception date of 11/4/2004.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
PIMCO Total Return Portfolio (Class A)      8.0   
MFS® Value Portfolio (Class A)      6.3   
Davis Venture Value Portfolio (Class A)      5.2   
BlackRock Bond Income Portfolio (Class A)      5.1   
T. Rowe Price Large Cap Value Portfolio (Class A)      4.5   
Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A)      4.2   
BlackRock Large Cap Value Portfolio (Class A)      4.2   
Harris Oakmark International Portfolio (Class A)      4.1   
Western Asset Management U.S. Government Portfolio (Class A)      3.8   
Invesco Small Cap Growth Portfolio (Class A)      3.7   

 

MIST-3

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

MetLife Balanced Strategy Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

      Actual      0.68 %     $ 1,000.00         $ 1,067.00         $ 3.49   
     Hypothetical*      0.68 %     $ 1,000.00         $ 1,021.42         $ 3.41   

Class B(a)

      Actual      0.93 %     $ 1,000.00         $ 1,065.70         $ 4.76   
     Hypothetical*      0.93 %     $ 1,000.00         $ 1,020.18         $ 4.66   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

 

MIST-4

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—100.0% of Net Assets

 

Security Description   Shares     Value  

Affiliated Investment Companies—100.0%

  

Baillie Gifford International Stock Portfolio (Class A) (a)

     33,853,823      $ 305,700,022   

BlackRock Bond Income Portfolio (Class A) (a)

     5,042,012        535,209,568   

BlackRock Capital Appreciation Portfolio (formerly BlackRock Legacy Large Cap Growth Portfolio) (Class A) (a)

     7,068,510        216,084,360   

BlackRock High Yield Portfolio (Class A) (b)

     7,632,152        62,812,610   

BlackRock Large Cap Value Portfolio (Class A) (a)

     41,564,621        434,350,291   

Clarion Global Real Estate Portfolio (Class A) (b)

     18,599,891        201,436,816   

ClearBridge Aggressive Growth Portfolio (formerly Legg Mason ClearBridge Aggressive Growth Portfolio) (Class A) (b)

     19,700,814        223,013,214   

Davis Venture Value Portfolio (Class A) (a)

     14,736,346        546,865,787   

Goldman Sachs Mid Cap Value Portfolio (Class A) (b)

     14,187,053        218,764,365   

Harris Oakmark International Portfolio (Class A) (b)

     26,578,777        425,526,220   

Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A) (b)

     34,945,648        440,315,169   

Invesco Small Cap Growth Portfolio (Class A) (b)

     23,026,919        387,543,043   

Janus Forty Portfolio (Class A) (b)

     3,127,323        259,004,864   

Jennison Growth Portfolio (Class A) (a)

     25,648,369        323,169,455   

JPMorgan Core Bond Portfolio (Class A) (b)

     33,342,207        339,090,246   

JPMorgan Small Cap Value Portfolio (formerly Dreman Small Cap Value Portfolio) (Class A) (b)

     6,159,296        104,338,468   

Lord Abbett Bond Debenture Portfolio (Class A) (b)

     5,820,187        74,149,178   

Met/Artisan Mid Cap Value Portfolio (Class A) (a)

     474,266        109,598,185   

Met/Dimensional International Small Company Portfolio (Class A) (a)

     15,358,232        210,254,196   

Met/Eaton Vance Floating Rate Portfolio (Class A) (b)

     19,796,564        205,884,263   

Met/Franklin Low Duration Total Return Portfolio (Class A) (b)

     20,284,399        201,626,926   

Met/Templeton International Bond Portfolio (Class A) (b)

     26,562,189        302,277,711   

MFS® Emerging Markets Equity Portfolio (Class A) (b)

     19,163,066        187,031,529   

MFS® Research International Portfolio (Class A) (b)

     30,647,250        318,731,396   

MFS® Value Portfolio (Class A) (a)

     43,006,313        654,556,076   

Neuberger Berman Genesis Portfolio (Class A) (a)

     11,066,627        164,560,750   

PIMCO Inflation Protected Bond Portfolio (Class A) (b)

     27,527,436        276,926,010   

PIMCO Total Return Portfolio (Class A) (b)

     71,186,273        835,726,848   

Pioneer Fund Portfolio (Class A) (b)

     15,329        245,423   

T. Rowe Price Large Cap Growth Portfolio (Class A) (a)

     16,679,955        326,760,311   

T. Rowe Price Large Cap Value Portfolio (Class A) (b)

     16,886,791        471,648,081   

Affiliated Investment Companies—(Continued)

  

T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)

     21,318,768      $ 220,009,688   

T. Rowe Price Small Cap Growth Portfolio (Class A) (a)

     2,775,060        53,086,903   

Third Avenue Small Cap Value Portfolio (Class A) (b)

     9,173,386        162,919,339   

Van Eck Global Natural Resources Portfolio (Class A) (a)

     15,876,998        193,699,379   

Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (a)

     5,525,481        72,660,075   

Western Asset Management U.S. Government Portfolio (Class A) (a)

     33,182,523        396,862,981   
   

 

 

  

Total Mutual Funds
(Cost $9,265,590,425)

       10,462,439,746   
   

 

 

  

Total Investments—100.0%
(Cost $9,265,590,425) (c)

       10,462,439,746   

Other assets and liabilities
(net)—0.0%

       (2,711,839 ) 
   

 

 

  
Net Assets—100.0%     $ 10,459,727,907   
   

 

 

  

 

(a) A Portfolio of Metropolitan Series Fund. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b) A Portfolio of Met Investors Series Trust. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c) As of June 30, 2013, the aggregate cost of investments was $9,265,590,425. The aggregate unrealized appreciation and depreciation of investments were $1,307,125,637 and $(110,276,316), respectively, resulting in net unrealized appreciation of $1,196,849,321.

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Affiliated Investment Companies

    $ 10,462,439,746       $ —         $ —         $ 10,462,439,746   

Total Investments

    $ 10,462,439,746       $ —         $ —         $ 10,462,439,746   
                                     

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Affiliated investments at value (a)

    $ 10,462,439,746   

Receivable for:

   

Investments sold

      5,205,820   

Fund shares sold

      161,335   
  

 

 

  

Total Assets

      10,467,806,901   

Liabilities

   

Due to Adviser

      1,370   

Payables for:

   

Fund shares redeemed

      5,367,153   

Accrued expenses:

   

Management fees

      466,317   

Distribution and service fees

      2,176,853   

Deferred trustees’ fees

      41,001   

Other expenses

      26,300   
  

 

 

  

Total Liabilities

      8,078,994   
  

 

 

  

Net Assets

    $ 10,459,727,907   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 9,227,459,263   

Undistributed net investment income

      200,194,295   

Accumulated net realized loss

      (164,774,972 ) 

Unrealized appreciation on affiliated investments

      1,196,849,321   
  

 

 

  

Net Assets

    $ 10,459,727,907   
  

 

 

  

Net Assets

   

Class A

    $ 3,013,270   

Class B

      10,456,714,637   

Capital Shares Outstanding*

   

Class A

      256,469   

Class B

      893,755,632   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.75   

Class B

      11.70   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of affiliated investments was $9,265,590,425.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Affiliated Underlying Portfolios

    $ 216,405,048   
  

 

 

  

Total investment income

      216,405,048   

Expenses

   

Management fees

      2,822,039   

Administration fees

      10,902   

Deferred expense reimbursement

      8,215   

Custodian and accounting fees

      12,290   

Distribution and service fees—Class B

      13,176,865   

Audit and tax services

      14,661   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Miscellaneous

      2,764   
  

 

 

  

Total expenses

      16,070,859   
  

 

 

  

Net Investment Income

      200,334,189   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain on:   

Affiliated investments

      220,353,505   

Capital gain distributions from Affiliated Underlying Portfolios

      161,654,065   
  

 

 

  

Net realized gain

      382,007,570   
  

 

 

  

Net change in unrealized appreciation on affiliated investments

      85,675,857   
  

 

 

  

Net realized and unrealized gain

      467,683,427   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 668,017,616   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 200,334,189      $ 181,839,627   

Net realized gain

      382,007,570        286,876,172   

Net change in unrealized appreciation

      85,675,857        847,801,002   
  

 

 

    

 

 

  

Increase in net assets from operations

      668,017,616        1,316,516,801   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (62,473 )      (56,222 ) 

Class B

      (216,504,479 )      (217,200,076 ) 
  

 

 

    

 

 

  

Total distributions

      (216,566,952 )      (217,256,298 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (194,585,781 )      (610,459,513 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      256,864,883        488,800,990   

Net Assets

     

Beginning of period

      10,202,863,024        9,714,062,034   
  

 

 

    

 

 

  

End of period

    $ 10,459,727,907      $ 10,202,863,024   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 200,194,295      $ 216,427,058   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      51,170      $ 603,953        35,493      $ 376,102   

Reinvestments

      5,404        62,473        5,289        56,222   

Redemptions

      (29,356 )      (347,526 )      (22,210 )      (235,823 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      27,218      $ 318,900        18,572      $ 196,501   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      8,904,505      $ 104,626,888        21,768,959      $ 232,301,120   

Reinvestments

      18,810,120        216,504,479        20,509,922        217,200,076   

Redemptions

      (43,748,803 )      (516,036,048 )      (99,306,483 )      (1,060,157,210 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (16,034,178 )    $ (194,904,681 )      (57,027,602 )    $ (610,656,014 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (194,585,781 )      $ (610,459,513 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.27      $ 10.10       $ 10.43       $ 9.37       $ 7.28       $ 12.15   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.23        0.21         0.20         0.18         0.29         0.17   

Net realized and unrealized gain (loss) on investments

      0.52        1.21         (0.35 )       1.10         1.80         (3.83 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.75        1.42         (0.15 )       1.28         2.09         (3.66 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.27 )      (0.25 )       (0.18 )       (0.22 )       0.00         (0.53 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.68 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.27 )      (0.25 )       (0.18 )       (0.22 )       0.00         (1.21 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.75      $ 11.27       $ 10.10       $ 10.43       $ 9.37       $ 7.28   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      6.70  (c)      14.24         (1.51 )       13.85         28.71         (31.75 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (d)

      0.05  (e)      0.06         0.06         0.06         0.06         0.06   

Net ratio of expenses to average net assets (%) (d) (f)

      0.05  (e)      0.06         0.06         0.06         0.06         0.06   

Ratio of net investment income to average net assets (%) (g)

      1.92  (e)(h)      1.98         1.93         1.88         3.72         1.75   

Portfolio turnover rate (%)

      10  (c)      10         26         13         28         23   

Net assets, end of period (in millions)

    $ 3.0      $ 2.6       $ 2.1       $ 2.4       $ 1.8       $ 1.7   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.21      $ 10.05       $ 10.38       $ 9.33       $ 7.27       $ 12.12   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.22        0.19         0.16         0.17         0.21         0.19   

Net realized and unrealized gain (loss) on investments

      0.51        1.20         (0.33 )       1.08         1.85         (3.87 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.73        1.39         (0.17 )       1.25         2.06         (3.68 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.24 )      (0.23 )       (0.16 )       (0.20 )       0.00         (0.49 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.68 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.24 )      (0.23 )       (0.16 )       (0.20 )       0.00         (1.17 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.70      $ 11.21       $ 10.05       $ 10.38       $ 9.33       $ 7.27   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      6.57  (c)      13.93         (1.70 )       13.58         28.34         (31.93 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (d)

      0.30  (e)      0.31         0.31         0.31         0.31         0.31   

Net ratio of expenses to average net assets (%) (d) (f)

      0.30  (e)      0.31         0.31         0.31         0.31         0.31   

Ratio of net investment income to average net assets (%) (g)

      1.73  (e)(h)      1.79         1.56         1.75         2.59         1.94   

Portfolio turnover rate (%)

      10  (c)      10         26         13         28         23   

Net assets, end of period (in millions)

    $ 10,456.7      $ 10,200.3       $ 9,711.9       $ 9,252.1       $ 7,049.3       $ 4,841.9   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(g) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.
(h) The income earned by the Portfolio through the investments in Underlying Portfolios is not annualized.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MetLife Balanced Strategy Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio is designed on established principles of asset allocation to achieve a specific risk profile. The Portfolio will invest substantially all of its assets in other portfolios of the Trust or of Metropolitan Series Fund (“Underlying Portfolios”).

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying Portfolios are valued at their closing daily net asset value. The net asset value of the Portfolio is calculated based on the net asset values of the Underlying Portfolios in which the Portfolio invests. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to short-term capital gain distributions received from Underlying Portfolios. These adjustments have no impact on net assets or the results of operations.

3. Certain Risks

Market Risk: In the normal course of business, the Underlying Portfolios invest in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the companies whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

 

MIST-10

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Underlying Portfolios’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments of the applicable Underlying Portfolios.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of the Underlying Portfolios by the Portfolio, for the six months ended June 30, 2013 were as follows:

 

Purchases      Sales  
U.S. Government      Non U.S. Government      U.S. Government      Non U.S. Government  
$ 0       $ 1,062,767,753       $ 0       $ 1,111,899,704   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board of Trustees (the “Board”) and has overall responsibility for the general management and administration of the Trust.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$2,822,039      0.100 %    First $500 million
     0.075 %    $500 million to $1 billion
     0.050 %    Over $1 billion

In addition to the above management fee paid to the Adviser, the Portfolio indirectly pays MetLife Advisers a management fee through its investments in the Underlying Portfolios.

Expense Limitation Agreement - On November 7, 2008, the Strategic Growth and Income Portfolio, a series of the Trust, merged with and into the Portfolio.

The Adviser had entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting the expenses of the Strategic Growth and Income Portfolio. The Expense Limitation Agreement with respect to the Strategic Growth and Income Portfolio has since expired. Pursuant to the Expense Limitation Agreement, the Adviser had agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Strategic Growth and Income Portfolio other than interest, taxes, brokerage commissions, other expenditures which were capitalized in accordance with the GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and Underlying Portfolios’ fees and expenses but including amounts payable pursuant a plan adopted in accordance with Rule 12b-1 under the 1940 Act were limited to a certain percentage of Strategic Growth and Income Portfolio’s average daily net assets, as set forth in the Expense Limitation Agreement.

 

MIST-11

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

At the time of the merger, the Adviser, subject to approval by the Trust’s Board, was entitled to an aggregate reimbursement of $280,240 from the Strategic Growth and Income Portfolio. Such amount was a contractual obligation of the Strategic Growth and Income Portfolio under the Expense Limitation Agreement. As a result of the merger, the Portfolio assumed this contractual obligation of the Strategic Growth and Income Portfolio. Any reimbursement of the Adviser owed by the Strategic Growth and Income Portfolio will now be made by the Portfolio, subject to prior approval by the Trust’s Board. The obligation to reimburse the Adviser for any expenses of the Strategic Growth and Income Portfolio paid by the Adviser expires on December 31, 2013.

As of June 30, 2013, there were no expenses deferred in 2013 and $8,215 was repaid to the Adviser in accordance with the Expense Limitation Agreement. The amount of expenses deferred in 2008, which were recovered during the six months ended June 30, 2013 was $8,215. As of June 30, 2013, there was $115,766 in expense deferrals eligible for recoupment by the Adviser. Amounts recouped for the six months ended June 30, 2013 are shown as Deferred expense reimbursement in the Statement of Operations.

 

Expenses Deferred in  
2008      2009      2010      2011      2012      2013  
Subject to repayment until December 31,  
2013      2014      2015      2016      2017      2018  
$ 115,766       $ —       $ —       $ —       $ —       $ —   

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

The Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolio’s net assets. Transactions in the Underlying Portfolios for the six months ended June 30, 2013 were as follows:

 

Underlying Portfolio (Class A)

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

Baillie Gifford International Stock

      33,387,041         576,693         (109,911 )      33,853,823   

BlackRock Bond Income

      5,249,076         522,350         (729,414 )      5,042,012   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      7,156,850         63,143         (151,483 )      7,068,510   

 

MIST-12

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Underlying Portfolio (Class A)

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

BlackRock High Yield

      11,479,132         718,162         (4,565,142 )      7,632,152   

BlackRock Large Cap Value

      41,864,889         3,064,904         (3,365,172 )      41,564,621   

Clarion Global Real Estate

      17,948,796         1,257,370         (606,275 )      18,599,891   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      22,087,370         92,988         (2,479,544 )      19,700,814   

Davis Venture Value

      15,470,069         494,527         (1,228,250 )      14,736,346   

Goldman Sachs Mid Cap Value

      14,681,380         723,785         (1,218,112 )      14,187,053   

Harris Oakmark International

      27,420,985         794,506         (1,636,714 )      26,578,777   

Invesco Comstock (formerly Van Kampen Comstock)

      37,780,641         505,316         (3,340,309 )      34,945,648   

Invesco Small Cap Growth

      26,413,055         1,624,918         (5,011,054 )      23,026,919   

Janus Forty

      2,624,504         508,619         (5,800 )      3,127,323   

Jennison Growth

      25,871,695         408,412         (631,738 )      25,648,369   

JPMorgan Core Bond

      —         33,342,209         (2 )      33,342,207   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      —         6,159,322         (26 )      6,159,296   

Lord Abbett Bond Debenture

      7,626,362         394,461         (2,200,636 )      5,820,187   

Met/Artisan Mid Cap Value

      518,681         5,057         (49,472 )      474,266   

Met/Dimensional International Small Company

      14,898,711         776,948         (317,427 )      15,358,232   

Met/Eaton Vance Floating Rate

      18,895,507         929,750         (28,693 )      19,796,564   

Met/Franklin Low Duration Total Return

      19,894,288         420,576         (30,465 )      20,284,399   

Met/Templeton International Bond*

      25,909,354         698,850         (46,015 )      26,562,189   

MFS® Emerging Markets Equity

      9,376,925         9,811,083         (24,942 )      19,163,066   

MFS® Research International

      39,883,034         900,824         (10,136,608 )      30,647,250   

MFS® Value

      44,092,077         2,348,587         (3,434,351 )      43,006,313   

Neuberger Berman Genesis

      15,552,396         98,595         (4,584,364 )      11,066,627   

PIMCO Inflation Protected Bond

      25,371,478         2,195,113         (39,155 )      27,527,436   

PIMCO Total Return

      78,488,010         4,519,644         (11,821,381 )      71,186,273   

Pioneer Fund

      7,052,166         1,854         (7,038,691 )      15,329   

T. Rowe Price Large Cap Growth

      17,191,272         55,439         (566,756 )      16,679,955   

T. Rowe Price Large Cap Value

      16,834,880         704,847         (652,936 )      16,886,791   

T. Rowe Price Mid Cap Growth

      21,636,144         1,289,121         (1,606,497 )      21,318,768   

T. Rowe Price Small Cap Growth

      —         2,775,801         (741 )      2,775,060   

Third Avenue Small Cap Value

      12,899,353         122,171         (3,848,138 )      9,173,386   

Van Eck Global Natural Resources

      15,627,757         260,840         (11,599 )      15,876,998   

Western Asset Management Strategic Bond Opportunities

      7,265,928         275,833         (2,016,280 )      5,525,481   

Western Asset Management U.S. Government

      32,416,641         815,719         (49,837 )      33,182,523   

 

* The Portfolio had ownership of at least 25% of the outstanding voting securities of the Underlying Portfolio as of June 30, 2013. The most recent Annual Report of the Underlying Portfolio is available without charge, upon request, by calling (800) 848-3854 or on the Securities and Exchange Commission’s website at http://www.sec.gov.

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

Baillie Gifford International Stock

    $ 4,463      $ —       $ 5,227,128       $ 305,700,022   

BlackRock Bond Income

      7,550,542        12,942,785         21,234,109         535,209,568   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      238,861        —         1,859,846         216,084,360   

BlackRock High Yield

      8,178,000        1,694,017         4,314,558         62,812,610   

BlackRock Large Cap Value

      8,937,070        24,277,690         6,279,403         434,350,291   

Clarion Global Real Estate

      (1,227,288 )      —         14,685,875         201,436,816   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      8,161,384        —         967,999         223,013,214   

Davis Venture Value

      2,418,404        9,396,446         7,867,482         546,865,787   

Goldman Sachs Mid Cap Value

      2,579,183        8,050,876         2,501,922         218,764,365   

Harris Oakmark International

      13,174,109        —         12,267,177         425,526,220   

Invesco Comstock (formerly Van Kampen Comstock)

      7,142,731        —         5,987,999         440,315,169   

Invesco Small Cap Growth

      17,806,533        23,702,094         1,744,117         387,543,043   

Janus Forty

      173,427        —         2,065,243         259,004,864   

Jennison Growth

      2,768,323        3,484,108         1,419,452         323,169,455   

JPMorgan Core Bond

      —        1,452,257         1,815,321         339,090,246   

 

MIST-13

Met Investors Series Trust

MetLife Balanced Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

    $ 17      $ —       $ 733,405       $ 104,338,468   

Lord Abbett Bond Debenture

      3,986,688        —         5,101,652         74,149,178   

Met/Artisan Mid Cap Value

      5,498,689        —         1,107,225         109,598,185   

Met/Dimensional International Small Company

      1,400,145        6,158,645         4,438,928         210,254,196   

Met/Eaton Vance Floating Rate

      25,767        944,822         8,352,229         205,884,263   

Met/Franklin Low Duration Total Return

      5,315        —         3,643,090         201,626,926   

Met/Templeton International Bond

      100,549        1,371,517         6,831,709         302,277,711   

MFS® Emerging Markets Equity

      133,268        —         2,646,112         187,031,529   

MFS® Research International

      32,415,467        —         9,341,196         318,731,396   

MFS® Value

      22,071,160        21,506,219         12,665,717         654,556,076   

Neuberger Berman Genesis

      18,199,561        —         1,374,421         164,560,750   

PIMCO Inflation Protected Bond

      37,530        16,088,560         6,760,753         276,926,010   

PIMCO Total Return

      25,551,119        16,171,713         36,839,296         835,726,848   

Pioneer Fund

      8,824,996        —         28,432         245,423   

T. Rowe Price Large Cap Growth

      1,929,695        —         1,025,649         326,760,311   

T. Rowe Price Large Cap Value

      601,098        —         8,105,794         471,648,081   

T. Rowe Price Mid Cap Growth

      3,286,477        11,556,277         935,310         220,009,688   

T. Rowe Price Small Cap Growth

      (44 )      2,856,039         184,848         53,086,903   

Third Avenue Small Cap Value

      14,843,790        —         2,046,372         162,919,339   

Van Eck Global Natural Resources

      39,852        —         1,838,592         193,699,379   

Western Asset Management Strategic Bond Opportunities

      3,478,259        —         3,662,211         72,660,075   

Western Asset Management U.S. Government

      18,365        —         8,504,476         396,862,981   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 220,353,505      $ 161,654,065       $ 216,405,048       $ 10,462,439,746   
  

 

 

    

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income     Long-Term Capital Gains     Total  
2012     2011     2012     2011     2012     2011  
$ 217,256,298      $ 156,435,957      $ —      $ —      $ 217,256,298      $ 156,435,957   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$216,462,684    $ —       $ 896,925,161       $ (332,534,238 )    $ 780,853,607   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2017

    Expiring
12/31/2018		      Total  
$275,330,464    $ 57,203,774       $ 332,534,238   

 

MIST-14

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the MetLife Defensive Strategy Portfolio returned 2.53% and 2.37%, respectively. The Portfolio’s benchmark, the Dow Jones Moderately Conservative Index1, returned 1.47%.

MARKET ENVIRONMENT / CONDITIONS

The global capital markets continued to respond to changing perceptions about the prospects for economic growth and the efforts by governments throughout the world to both avoid a new economic recession and to meet their fiscal responsibilities. Interest rates jumped in the second quarter following ambiguous comments by Federal Reserve Chairman Benjamin Bernanke. The Five Year Treasury Note yield rose from a 0.74% level at the end of 2012 to a 1.40% level at the end of June. For the entire six month period, the Barclays U.S. Aggregate Bond Index returned a negative 2.44%. As expected in a declining interest rate environment, long maturity bonds declined more than short maturity bonds. Below investment grade bonds were able to modestly positive return because of a strong first quarter return and a higher coupon. Foreign denominated bonds fell even more sharply because of the impact of a strong U.S. dollar relative to other currencies.

Even with a decline late in the second quarter, U.S. stocks produced strong returns during the first half of 2013. The Standard & Poor’s 500 Index returned 13.82% for the period. Small cap stocks, as measured by the Russell 2000 Index, did even better with a 15.86% return. While both investment styles posted double digit returns, value style stocks did slightly better than growth style stocks (15.90% for the Russell 1000 Value Index compared to 11.80% for the Russell 1000 Growth Index). The Health Care and Financial Services sectors were the best performers for the period; the Information Technology and Materials sectors trailed.

On a local currency basis, foreign stocks from developed countries produced a return close to that of domestic stocks as measured by the 11.01% local currency return of the MSCI EAFE Index. A rise in the value of dollar reduced that return for U.S. investors to only 4.10%. Emerging market stocks did even worse as the strong dollar and concerns about China’s slower economic growth produced a return of negative 9.57% in the MSCI Emerging Markets Index. Combining emerging and developed markets, foreign stocks produced a nearly flat return of 0.16% for the six month period as measured by the MSCI All Country World Ex U.S. Index in U.S. dollars.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The MetLife Defensive Strategy Portfolio invested in underlying portfolios of the Met Investors Series Trust and the Metropolitan Series Fund to maintain a broad asset allocation of approximately 65% to fixed income and 35% to equities. While there was no change in the Portfolio’s strategic asset class goals during the period, there were several changes in the underlying portfolios used by the portfolio manager to achieve those allocations. Most notable was the addition of the JPMorgan Core Bond Portfolio to add diversity to the fixed income segment; several new equity portfolios were added, including the JPMorgan Small Cap Value Portfolio and the Frontier Mid Cap Growth Portfolio. In addition, to more closely reflect the global equity markets, a small 0.50% position in the MFS® Emerging Market Equity Portfolio was added.

As a whole, the underlying bond portfolios detracted from the Portfolio’s performance over the period on an absolute basis and had an overall neutral impact on relative performance. Those bond portfolios with a focus on below investment grade bonds—the Lord Abbett Bond Debenture Portfolio, the BlackRock High Yield Portfolio, and the Met/Eaton Vance Floating Rate Portfolio—produced positive total returns on the strength of a good first quarter. The two underlying bond portfolios with a shorter average maturity than the Barclays U.S. Aggregate Bond Index (the Western Asset Management U.S. Government Bond Portfolio and the Met/Franklin Templeton Low Duration Portfolio) both held up better than the Index in a rising interest rate environment. Although negative for the period, the Met/Templeton International Bond Portfolio did much better than its foreign bond benchmark due to avoiding exposure to fixed income securities tied to the Japanese yen. The biggest absolute detractor to the Portfolio’s performance was the PIMCO Inflation Protected Bond Portfolio, which fell sharply during the second quarter in line with the decline in Treasury Inflation Protected Securities (TIPS). A sizable exposure to TIPS also hurt the relative performance of the PIMCO Total Return Portfolio during the second quarter, erasing the excess returned it earned earlier in the year.

Despite negative returns in the final month of the period, all of the underlying domestic equity portfolios produced strongly positive returns during the six-month period ending June 30, 2013. Among the biggest contributors to both absolute and relative returns were several large cap domestic value portfolios, which were helped by the general strength of value style stocks relative to growth style stocks. Equally important was that these portfolios did not hold market giant Apple, Inc., which declined 24.6% for the period. One of these strong performing value portfolios was the Invesco Comstock Portfolio, which had very good security selection in the Information Technology sector where it owned Hewlett-Packard Corporation and Microsoft Corporation. The MFS® Value Portfolio’s underweight in the Information Technology sector and good security selection in the Financial Services and Industrials sectors were the major factors helping its relative performance. In the Financial Services sector, it owned Prudential Financial, Inc. and State Street Corporation; while in the Industrials sector it owned aerospace manufacturer Lockheed Martin and industrial technology company Honeywell International, Inc. The Davis Venture Value Portfolio benefitted mostly from good security selection in the Consumer Discretionary sector, where it held NetFlix, Inc., and the Information Technology sector, where it owned Google, Inc. The T. Rowe Price Large Cap Value Portfolio’s relative return was due to positive security selection in the Information Technology sector. While most underlying portfolios with

 

MIST-1

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

a growth style orientation struggled during the period, the ClearBridge Aggressive Growth Portfolio belied its growth oriented investment style with strong security selection. In the Health Care sector, it owned biotech company Biogen Idec, Inc., and in the Information Technology sector, it avoided Apple, Inc. and owned Irish data storage device company Seagate Technology, PLC.

Since growth style stocks lagged value stocks during the six month period, it was not surprising that several underlying equity portfolios with a growth style were among the largest detractors to the Portfolio’s relative performance. The Jennison Growth Portfolio was hurt by owning American Tower Corporation, a communication infrastructure real estate investment trust. It was also hurt by not owning Microsoft Corporation. The BlackRock Capital Appreciation Portfolio (formerly called the BlackRock Legacy Large Cap Growth Portfolio) was hurt mostly by weak overall security selection. For example, they owned drug company Allergan, Inc. in the Health Care sector, which fell sharply in early May. The T. Rowe Price Large Cap Growth Portfolio was hurt by its growth style and by its selection in the Financial Services and Information Technology sectors. It owned American Tower Corp. and held a large overweight position in Apple, Inc. The Third Avenue Small Value Portfolio also hurt relative performance due mostly to its 7% cash position and its sector weightings, including a large overweight to the weak Materials sector.

The investment return on foreign equities for U.S. dollar-based investors was constrained by the strong dollar relative to most foreign currencies, especially the Japanese yen. In addition, exposure to the stocks of developing countries had an overall negative impact on the Portfolio’s performance relative to both developed foreign and domestic stocks. For the Portfolio, this exposure came primarily from the MFS Emerging Markets Equity Portfolio and the Baillie Gifford International Stock Portfolio, the latter of which held nearly 23% of its assets in companies from emerging market countries. Consistent with the overall decline in the real estate investment trust market during the period, the Clarion Global Real Estate Portfolio detracted from relative performance. On the positive side, the Harris Oakmark International Portfolio had strong relative performance throughout the period due to consistently strong security selection across all sectors and regions. From Japan, they owned brokerage company Daiwa Securities Co., Ltd. and health care equipment producer Olympus Corporation, and from the United Kingdom, they held Lloyds Banking Group PLC.

Investment Committee

MetLife Advisers, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATELY CONSERVATIVE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
MetLife Defensive Strategy Portfolio                      

Class A

        2.53           8.63           5.86           5.57   

Class B

        2.37           8.31           5.57           4.98   
Dow Jones Moderately Conservative Index        1.47           6.14           5.15           5.42   

1 The Dow Jones Moderately Conservative Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 40% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 11/4/2004. Inception of the Class A shares is 5/2/2005. Index returns are based on an inception date of 11/4/2004.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

 

     % of
Net Assets		  
PIMCO Total Return Portfolio (Class A)      16.7   
Western Asset Management U.S. Government Portfolio (Class A)      10.1   
BlackRock Bond Income Portfolio (Class A)      9.4   
PIMCO Inflation Protected Bond Portfolio (Class A)      7.8   
JPMorgan Core Bond Portfolio (Class A)      6.8   
MFS® Value Portfolio (Class A)      4.5   
Met/Franklin Low Duration Total Return Portfolio (Class A)      4.0   
Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A)      3.5   
T. Rowe Price Large Cap Value Portfolio (Class A)      3.5   
BlackRock Large Cap Value Portfolio (Class A)      3.0   

 

MIST-3

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

MetLife Defensive Strategy Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

      Actual      0.63 %     $ 1,000.00         $ 1,025.30         $ 3.16   
     Hypothetical*      0.63 %     $ 1,000.00         $ 1,021.67         $ 3.16   

Class B(a)

      Actual      0.88 %     $ 1,000.00         $ 1,023.70         $ 4.42   
     Hypothetical*      0.88 %     $ 1,000.00         $ 1,020.43         $ 4.41   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

 

MIST-4

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—100.0% of Net Assets

 

Security Description   Shares     Value  

Affiliated Investment Companies—100.0%

  

Baillie Gifford International Stock Portfolio (Class A) (a)

     6,019,727      $ 54,358,134   

BlackRock Bond Income Portfolio (Class A) (a)

     2,457,928        260,909,053   

BlackRock Capital Appreciation Portfolio (formerly BlackRock Legacy Large Cap Growth Portfolio) (Class A) (a)

     1,834,388        56,077,243   

BlackRock High Yield Portfolio (Class A) (b)

     5,455,750        44,900,822   

BlackRock Large Cap Value Portfolio (Class A) (a)

     8,044,725        84,067,375   

Clarion Global Real Estate Portfolio (Class A) (b)

     2,464,196        26,687,238   

ClearBridge Aggressive Growth Portfolio (formerly Legg Mason ClearBridge Aggressive Growth Portfolio) (Class A) (b)

     1,241,754        14,056,657   

Davis Venture Value Portfolio (Class A) (a)

     1,510,178        56,042,691   

Frontier Mid Cap Growth Portfolio (Class A) (a)

     723,911        22,405,050   

Goldman Sachs Mid Cap Value Portfolio (Class A) (b)

     1,090,445        16,814,659   

Harris Oakmark International Portfolio (Class A) (b)

     3,441,389        55,096,637   

Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A) (b)

     7,787,155        98,118,153   

Invesco Small Cap Growth Portfolio (Class A) (b)

     1,666,956        28,054,869   

Jennison Growth Portfolio (Class A) (a)

     3,330,496        41,964,248   

JPMorgan Core Bond Portfolio (Class A) (b)

     18,490,794        188,051,370   

JPMorgan Small Cap Value Portfolio (formerly Dreman Small Cap Value Portfolio) (Class A) (b)

     827,216        14,013,046   

Lord Abbett Bond Debenture Portfolio (Class A) (b)

     1,541,508        19,638,817   

Met/Artisan Mid Cap Value Portfolio (Class A) (a)

     72,835        16,831,509   

Met/Eaton Vance Floating Rate Portfolio (Class A) (b)

     5,391,612        56,072,770   

Met/Franklin Low Duration Total Return Portfolio (Class A) (b)

     11,287,573        112,198,474   

Met/Templeton International Bond Portfolio (Class A) (b)

     7,366,239        83,827,804   

MFS® Emerging Markets Equity Portfolio (Class A) (b)

     1,331,145        12,991,974   

MFS® Research International Portfolio (Class A) (b)

     4,001,577        41,616,399   

MFS® Value Portfolio (Class A) (a)

     8,254,591        125,634,882   

Neuberger Berman Genesis Portfolio (Class A) (a)

     2,830,182        42,084,809   

PIMCO Inflation Protected Bond Portfolio (Class A) (b)

     21,467,834        215,966,410   

PIMCO Total Return Portfolio (Class A) (b)

     39,410,823        462,683,061   

T. Rowe Price Large Cap Growth Portfolio (Class A) (a)

     2,145,895        42,038,081   

T. Rowe Price Large Cap Value Portfolio (Class A) (b)

     3,511,252        98,069,258   

Third Avenue Small Cap Value Portfolio (Class A) (b)

     1,579,206        28,046,691   

Affiliated Investment Companies—(Continued)

  

Van Eck Global Natural Resources Portfolio (Class A) (a)

     2,230,136      $ 27,207,653   

Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (a)

     3,625,758        47,678,722   

Western Asset Management U.S. Government Portfolio (Class A) (a)

     23,437,196        280,308,860   
   

 

 

  

Total Mutual Funds
(Cost $2,645,923,641)

       2,774,513,419   
   

 

 

  

Total Investments—100.0%
(Cost $2,645,923,641) (c)

       2,774,513,419   

Other assets and liabilities (net)—0.0%

       (803,106 ) 
   

 

 

  
Net Assets—100.0%     $ 2,773,710,313   
   

 

 

  

 

(a) A Portfolio of Metropolitan Series Fund. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b) A Portfolio of Met Investors Series Trust. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c) As of June 30, 2013, the aggregate cost of investments was $2,645,923,641. The aggregate unrealized appreciation and depreciation of investments were $174,434,583 and $(45,844,805), respectively, resulting in net unrealized appreciation of $128,589,778.

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Affiliated Investment Companies

    $ 2,774,513,419       $ —       $ —       $ 2,774,513,419   

Total Investments

    $ 2,774,513,419       $ —       $ —       $ 2,774,513,419   
                                     

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Affiliated investments at value (a)

    $ 2,774,513,419   

Receivable for:

   

Investments sold

      1,988,760   

Fund shares sold

      29,263   
  

 

 

  

Total Assets

      2,776,531,442   

Liabilities

   

Payables for:

   

Fund shares redeemed

      2,018,023   

Accrued expenses:

   

Management fees

      146,952   

Distribution and service fees

      580,644   

Deferred trustees’ fees

      41,001   

Other expenses

      34,509   
  

 

 

  

Total Liabilities

      2,821,129   
  

 

 

  

Net Assets

    $ 2,773,710,313   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 2,466,952,329   

Undistributed net investment income

      69,012,742   

Accumulated net realized gain

      109,155,464   

Unrealized appreciation on affiliated investments

      128,589,778   
  

 

 

  

Net Assets

    $ 2,773,710,313   
  

 

 

  

Net Assets

   

Class A

    $ 24,750   

Class B

      2,773,685,563   

Capital Shares Outstanding*

   

Class A

      2,208   

Class B

      248,975,922   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.21   

Class B

      11.14   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of affiliated investments was $2,645,923,641.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Affiliated Underlying Portfolios

    $ 73,948,980   
  

 

 

  

Total investment income

      73,948,980   

Expenses

   

Management fees

      911,546   

Administration fees

      10,902   

Custodian and accounting fees

      12,290   

Distribution and service fees—Class B

      3,627,847   

Audit and tax services

      14,660   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Miscellaneous

      2,676   
  

 

 

  

Total expenses

      4,603,044   
  

 

 

  

Net Investment Income

      69,345,936   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Affiliated investments

      110,127,510   

Capital gain distributions from Affiliated Underlying Portfolios

      44,293,029   
  

 

 

  

Net realized gain

      154,420,539   
  

 

 

  

Net change in unrealized depreciation on affiliated investments

      (150,526,218 ) 
  

 

 

  

Net realized and unrealized gain

      3,894,321   
  

 

 

  

Net Increase in Net Assets from Operations

    $ 73,240,257   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Statements of Changes in Net Assets

 

     Six Months Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 69,345,936      $ 68,017,477   

Net realized gain

      154,420,539        90,024,489   

Net change in unrealized appreciation (depreciation)

      (150,526,218 )      142,152,014   
  

 

 

    

 

 

  

Increase in net assets from operations

      73,240,257        300,193,980   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (3,008 )      (2,474 ) 

Class B

      (84,499,855 )      (81,768,760 ) 

Net realized capital gains

     

Class A

      (2,242 )      (697 ) 

Class B

      (68,427,836 )      (24,902,541 ) 
  

 

 

    

 

 

  

Total distributions

      (152,932,941 )      (106,674,472 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (128,070,675 )      (30,040,945 ) 
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (207,763,359 )      163,478,563   

Net Assets

     

Beginning of period

      2,981,473,672        2,817,995,109   
  

 

 

    

 

 

  

End of period

    $ 2,773,710,313      $ 2,981,473,672   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 69,012,742      $ 84,169,669   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      399      $ 4,785        351      $ 4,049   

Reinvestments

      465        5,250        289        3,171   

Redemptions

      (6,283 )      (72,678 )      (152 )      (1,696 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (5,419 )    $ (62,643 )      488      $ 5,524   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      6,421,505      $ 74,522,983        31,400,951      $ 348,774,722   

Reinvestments

      13,605,667        152,927,691        9,795,344        106,671,301   

Redemptions

      (30,565,431 )      (355,458,706 )      (43,596,494 )      (485,492,492 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (10,538,259 )    $ (128,008,032 )      (2,400,199 )    $ (30,046,469 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (128,070,675 )      $ (30,040,945 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Financial Highlights

 

Selected per share data  
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.57      $ 10.83       $ 10.89       $ 10.14       $ 8.68       $ 11.28   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.39        0.29         0.25         0.29         0.50         0.27   

Net realized and unrealized gain (loss) on investments

      (0.09 )      0.90         (0.03 )       0.83         1.41         (2.51 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.30        1.19         0.22         1.12         1.91         (2.24 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.38 )      (0.35 )       (0.28 )       (0.37 )       (0.29 )       (0.16 ) 

Distributions from net realized capital gains

      (0.28 )      (0.10 )       0.00         0.00         (0.16 )       (0.20 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.66 )      (0.45 )       (0.28 )       (0.37 )       (0.45 )       (0.36 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.21      $ 11.57       $ 10.83       $ 10.89       $ 10.14       $ 8.68   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      2.53  (c)      11.20         1.99         11.25         23.24         (20.48 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (d)

      0.07  (e)      0.07         0.07         0.08         0.10         0.09   

Net ratio of expenses to average net assets (%) (d) (f)

      0.07  (e)      0.07         0.07         0.08         0.10         0.09   

Ratio of net investment income to average net assets (%) (g)

      3.26  (e)(i)      2.61         2.32         2.75         5.53         2.74   

Portfolio turnover rate (%)

      14  (c)      11         30         19         28         30   

Net assets, end of period (in millions)

    $ —  (h)    $ 0.1       $ 0.1       $ 0.1       $ 0.1       $ —  (h) 
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.49      $ 10.76       $ 10.82       $ 10.09       $ 8.65       $ 11.25   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.28        0.26         0.21         0.24         0.37         0.29   

Net realized and unrealized gain (loss) on investments

      0.00        0.89         (0.01 )       0.84         1.51         (2.55 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.28        1.15         0.20         1.08         1.88         (2.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.35 )      (0.32 )       (0.26 )       (0.35 )       (0.28 )       (0.14 ) 

Distributions from net realized capital gains

      (0.28 )      (0.10 )       0.00         0.00         (0.16 )       (0.20 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.63 )      (0.42 )       (0.26 )       (0.35 )       (0.44 )       (0.34 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.14      $ 11.49       $ 10.76       $ 10.82       $ 10.09       $ 8.65   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      2.37  (c)      10.91         1.77         10.90         22.91         (20.65 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (d)

      0.32  (e)      0.32         0.32         0.33         0.35         0.35   

Net ratio of expenses to average net assets (%) (d) (f)

      0.32  (e)      0.32         0.32         0.33         0.35         0.35   

Ratio of net investment income to average net assets (%) (g)

      2.21  (e)(i)      2.35         1.94         2.29         3.99         2.93   

Portfolio turnover rate (%)

      14  (c)      11         30         19         28         30   

Net assets, end of period (in millions)

    $ 2,773.7      $ 2,981.4       $ 2,817.9       $ 2,546.9       $ 1,904.4       $ 1,143.4   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(g) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.
(h) Net Assets less than 1/10 of $1 million.
(i) The income earned by the Portfolio through the investments in Underlying Portfolios is not annualized.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MetLife Defensive Strategy Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio is designed on established principles of asset allocation to achieve a specific risk profile. The Portfolio will invest substantially all of its assets in other portfolios of the Trust or of Metropolitan Series Fund (“Underlying Portfolios”).

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying Portfolios are valued at their closing daily net asset value. The net asset value of the Portfolio is calculated based on the net asset values of the Underlying Portfolios in which the Portfolio invests. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to short-term capital gain distributions received from Underlying Portfolios. These adjustments have no impact on net assets or the results of operations.

3. Certain Risks

Market Risk: In the normal course of business, the Underlying Portfolios invest in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the companies whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

 

MIST-10

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Underlying Portfolios’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments of the applicable Underlying Portfolios.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of the Underlying Portfolios by the Portfolio, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 422,406,860       $ 0       $ 589,821,440   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board of Trustees (the “Board”) and has overall responsibility for the general management and administration of the Trust.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$911,546      0.100 %    First $500 million
     0.075 %    $500 million to $1 billion
     0.050 %    Over $1 billion

In addition to the above management fee paid to the Adviser, the Portfolio indirectly pays MetLife Advisers a management fee through its investments in the Underlying Portfolios.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate

 

MIST-11

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

The Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolio’s net assets. Transactions in the Underlying Portfolios for the six months ended June 30, 2013 were as follows:

 

Underlying Portfolio (Class A)

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

Baillie Gifford International Stock

      6,518,341         118,206         (616,820 )      6,019,727   

BlackRock Bond Income

      2,834,881         161,654         (538,607 )      2,457,928   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      2,108,996         17,409         (292,017 )      1,834,388   

BlackRock High Yield

      6,704,599         541,892         (1,790,741 )      5,455,750   

BlackRock Large Cap Value

      9,164,252         627,021         (1,746,548 )      8,044,725   

Clarion Global Real Estate

      2,630,905         191,077         (357,786 )      2,464,196   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      —         1,296,651         (54,897 )      1,241,754   

Davis Venture Value

      1,801,689         53,851         (345,362 )      1,510,178   

Frontier Mid Cap Growth

      —         734,173         (10,262 )      723,911   

Goldman Sachs Mid Cap Value

      2,139,535         58,744         (1,107,834 )      1,090,445   

Harris Oakmark International

      4,026,643         109,188         (694,442 )      3,441,389   

Invesco Comstock (formerly Van Kampen Comstock)

      8,251,570         699,279         (1,163,694 )      7,787,155   

Invesco Small Cap Growth

      1,927,153         124,967         (385,164 )      1,666,956   

Jennison Growth

      2,561,184         1,015,141         (245,829 )      3,330,496   

JPMorgan Core Bond

      —         18,491,245         (451 )      18,490,794   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      —         850,232         (23,016 )      827,216   

Lord Abbett Bond Debenture

      2,223,545         108,713         (790,750 )      1,541,508   

Met/Artisan Mid Cap Value

      151,036         808         (79,009 )      72,835   

Met/Eaton Vance Floating Rate

      5,561,509         255,305         (425,202 )      5,391,612   

Met/Franklin Low Duration Total Return

      11,733,357         211,468         (657,252 )      11,287,573   

Met/Templeton International Bond

      7,582,707         193,130         (409,598 )      7,366,239   

MFS® Emerging Markets Equity

      —         1,331,177         (32 )      1,331,145   

MFS® Research International

      5,834,524         124,191         (1,957,138 )      4,001,577   

MFS® Value

      8,647,575         757,871         (1,150,855 )      8,254,591   

Neuberger Berman Genesis

      4,539,096         27,289         (1,736,203 )      2,830,182   

PIMCO Inflation Protected Bond

      19,998,880         1,711,088         (242,134 )      21,467,834   

PIMCO Total Return

      48,536,467         2,485,439         (11,611,083 )      39,410,823   

Pioneer Fund

      6,173,383         1,487         (6,174,870 )      —   

T. Rowe Price Large Cap Growth

      1,699,138         636,894         (190,137 )      2,145,895   

T. Rowe Price Large Cap Value

      3,677,376         325,674         (491,798 )      3,511,252   

Third Avenue Small Cap Value

      1,879,689         22,086         (322,569 )      1,579,206   

Van Eck Global Natural Resources

      2,346,378         77,092         (193,334 )      2,230,136   

Western Asset Management Strategic Bond Opportunities

      4,259,292         181,442         (814,976 )      3,625,758   

Western Asset Management U.S. Government

      23,975,923         509,784         (1,048,511 )      23,437,196   

 

MIST-12

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

Baillie Gifford International Stock

    $ 408,153      $ —       $ 970,629       $ 54,358,134   

BlackRock Bond Income

      6,621,454        6,288,806         10,317,499         260,909,053   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      372,128        —         512,974         56,077,243   

BlackRock High Yield

      5,297,388        1,276,264         3,250,566         44,900,822   

BlackRock Large Cap Value

      2,289,043        4,940,295         1,277,803         84,067,375   

Clarion Global Real Estate

      2,325,025        —         2,013,487         26,687,238   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      35,358        —         60,422         14,056,657   

Davis Venture Value

      4,993,318        1,023,211         856,718         56,042,691   

Frontier Mid Cap Growth

      (372 )      550,510         292,107         22,405,050   

Goldman Sachs Mid Cap Value

      6,562,893        653,431         203,063         16,814,659   

Harris Oakmark International

      6,004,671        —         1,673,130         55,096,637   

Invesco Comstock (formerly Van Kampen Comstock)

      6,991,831        —         1,318,543         98,118,153   

Invesco Small Cap Growth

      2,984,912        1,801,266         132,546         28,054,869   

Jennison Growth

      204,740        449,902         183,293         41,964,248   

JPMorgan Core Bond

      5        798,663         998,329         188,051,370   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      19,000        —         100,873         14,013,046   

Lord Abbett Bond Debenture

      981,981        —         1,406,746         19,638,817   

Met/Artisan Mid Cap Value

      7,907,323        —         176,549         16,831,509   

Met/Eaton Vance Floating Rate

      242,982        270,605         2,392,144         56,072,770   

Met/Franklin Low Duration Total Return

      4,451        —         2,114,515         112,198,474   

Met/Templeton International Bond

      844,741        385,199         1,918,727         83,827,804   

MFS® Emerging Markets Equity

      12        —         181,724         12,991,974   

MFS® Research International

      901,483        —         1,287,794         41,616,399   

MFS® Value

      6,974,109        4,061,830         2,392,145         125,634,882   

Neuberger Berman Genesis

      7,158,595        —         380,415         42,084,809   

PIMCO Inflation Protected Bond

      530,047        12,542,808         5,270,753         215,966,410   

PIMCO Total Return

      18,104,456        9,250,239         21,072,120         462,683,061   

Pioneer Fund

      9,537,689        —         22,805         —   

T. Rowe Price Large Cap Growth

      532,073        —         131,822         42,038,081   

T. Rowe Price Large Cap Value

      6,311,007        —         1,733,271         98,069,258   

Third Avenue Small Cap Value

      2,818,414        —         369,913         28,046,691   

Van Eck Global Natural Resources

      730,945        —         256,773         27,207,653   

Western Asset Management Strategic Bond Opportunities

      1,307,358        —         2,480,230         47,678,722   

Western Asset Management U.S. Government

      130,297        —         6,198,552         280,308,860   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 110,127,510      $ 44,293,029       $ 73,948,980       $ 2,774,513,419   
  

 

 

    

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011      2012      2011      2012      2011  
$81,771,234    $ 58,356,942       $ 24,903,238       $ —       $ 106,674,472       $ 58,356,942   

 

MIST-13

Met Investors Series Trust

MetLife Defensive Strategy Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$84,382,502    $ 68,080,775       $ 234,023,017       $ —       $ 386,486,294   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-14

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the MetLife Growth Strategy Portfolio returned 9.10% and 8.98%, respectively. The Portfolio’s benchmark, the Dow Jones Moderately Aggressive Index1, returned 6.82%.

MARKET ENVIRONMENT / CONDITIONS

The global capital markets continued to respond to changing perceptions about the prospects for economic growth and the efforts by governments throughout the world to both avoid a new economic recession and to meet their fiscal responsibilities. Interest rates jumped in the second quarter following ambiguous comments by Federal Reserve Chairman Benjamin Bernanke. The Five Year Treasury Note yield rose from a 0.74% level at the end of 2012 to a 1.40% level at the end of June. For the entire six month period, the Barclays U.S. Aggregate Bond Index returned a negative 2.44%. As expected in a declining interest rate environment, long maturity bonds declined more than short maturity bonds. Below investment grade bonds were able to modestly positive return because of a strong first quarter return and a higher coupon. Foreign denominated bonds fell even more sharply because of the impact of a strong U.S. dollar relative to other currencies.

Even with a decline late in the second quarter, U.S. stocks produced strong returns during the first half of 2013. The Standard & Poor’s 500 Index returned 13.82% for the period. Small cap stocks, as measured by the Russell 2000 Index, did even better with a 15.86% return. While both investment styles posted double digit returns, value style stocks did slightly better than growth style stocks (15.90% for the Russell 1000 Value Index compared to 11.80% for the Russell 1000 Growth Index). The Health Care and Financial Services sectors were the best performers for the period; the Information Technology and Materials sectors trailed.

On a local currency basis, foreign stocks from developed countries produced a return close to that of domestic stocks as measured by the 11.01% local currency return of the MSCI EAFE Index. A rise in the value of dollar reduced that return for U.S. investors to only 4.10%. Emerging market stocks did even worse as the strong dollar and concerns about China’s slower economic growth produced a return of negative 9.57% in the MSCI Emerging Markets Index. Combining emerging and developed markets, foreign stocks produced a nearly flat return of 0.16% for the six month period as measured by the MSCI All Country World Ex U.S. Index in U.S. dollars.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The MetLife Growth Strategy Portfolio invested in underlying portfolios of the Met Investors Series Trust and the Metropolitan Series Fund to maintain a broad asset allocation of approximately 85% to equities and 15% to fixed income. While there was no change in the Portfolio’s strategic asset class goals during the period, there were several changes in the underlying portfolios used by the portfolio manager to achieve those allocations. Most notable was the addition of the JPMorgan Core Bond Portfolio to add diversity to the fixed income segment; several new equity portfolios were added, including the JPMorgan Small Cap Value Portfolio, the T. Rowe Price Small Cap Growth Portfolio, and the Frontier Mid Cap Growth Portfolio. In addition, to more closely reflect the global equity markets, the position in the MFS® Emerging Market Equity Portfolio was increased from 2.0% to 3.5%.

Despite negative returns in the final month of the period, all of the underlying domestic equity portfolios produced strongly positive returns during the six-month period ending June 30, 2013. Among the biggest contributors to both absolute and relative returns were several large cap domestic value portfolios, which were helped by the general strength of value style stocks relative to growth style stocks. Equally important was that these portfolios did not hold market giant Apple, Inc., which declined 24.6% for the period. One of these strong performing value portfolios was the Invesco Comstock Portfolio, which had very good security selection in the Information Technology sector where it owned Hewlett-Packard Corporation and Microsoft Corporation. The MFS® Value Portfolio’s underweight in the Information Technology sector and good security selection in the Financial Services and Industrials sectors were the major factors helping its relative performance. In the Financial Services sector, it owned Prudential Financial, Inc. and State Street Corporation; while in the Industrials sector it owned aerospace manufacturer Lockheed Martin and industrial technology company Honeywell International, Inc. The Davis Venture Value Portfolio benefitted mostly from good security selection in the Consumer Discretionary sector, where it held NetFlix, Inc., and the Information Technology sector, where it owned Google, Inc. The T. Rowe Price Large Cap Value Portfolio’s relative return was due to positive security selection in the Information Technology sector. While most underlying portfolios with a growth style orientation struggled during the period, the ClearBridge Aggressive Growth Portfolio belied its growth oriented investment style with strong security selection. In the Health Care sector, it owned biotech company Biogen Idec, Inc., and in the Information Technology sector, it avoided Apple, Inc. and owned Irish data storage device company Seagate Technology, PLC.

Since growth style stocks lagged value stocks during the six month period, it was not surprising that several underlying equity portfolios with a growth style were among the largest detractors to the Portfolio’s relative performance. The Jennison Growth Portfolio was hurt by owning American Tower Corporation, a communication infrastructure real estate investment trust. It was also hurt by not owning Microsoft Corporation. The BlackRock Capital Appreciation Portfolio (formerly called the BlackRock Legacy Large Cap Growth Portfolio) was hurt mostly by weak overall security selection. For example, they owned drug company Allergan, Inc. in the Health Care sector, which fell sharply in early May. The T. Rowe Price Large Cap Growth Portfolio was hurt by its growth style and by its selection in the Financial Services and Information Technology sectors. It owned American Tower Corp. and held a large overweight position in

 

MIST-1

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

Apple, Inc. The Third Avenue Small Value Portfolio also hurt relative performance due mostly to its 7% cash position and its sector weightings, including a large overweight to the weak Materials sector.

The investment return on foreign equities for U.S. dollar-based investors was constrained by the strong dollar relative to most foreign currencies, especially the Japanese yen. In addition, exposure to the stocks of developing countries had an overall negative impact on the Portfolio’s performance relative to both developed foreign and domestic stocks. For the Portfolio, this exposure came primarily from the MFS Emerging Markets Equity Portfolio and the Baillie Gifford International Stock Portfolio, the latter of which held nearly 23% of its assets in companies from emerging market countries. Consistent with the overall decline in the real estate investment trust market during the period, the Clarion Global Real Estate Portfolio detracted from relative performance. On the positive side, the Harris Oakmark International Portfolio had strong relative performance throughout the period due to consistently strong security selection across all sectors and regions. From Japan, they owned brokerage company Daiwa Securities Co., Ltd. and health care equipment producer Olympus Corporation, and from the United Kingdom, they held Lloyds Banking Group PLC.

As a whole, the underlying bond portfolios detracted from the Portfolio’s performance over the period on an absolute basis and had an overall neutral impact on relative performance. Those bond portfolios with a focus on below investment grade bonds—the Lord Abbett Bond Debenture Portfolio and the Met/Eaton Vance Floating Rate Portfolio—produced positive total returns on the strength of a good first quarter. Although negative for the period, the Met/Templeton International Bond Portfolio did much better than its foreign bond benchmark due to avoiding exposure to fixed income securities tied to the Japanese yen. The biggest absolute detractor to the Portfolio’s performance was the PIMCO Inflation-Protected Bond Portfolio, which fell sharply during the second quarter in line with the decline in Treasury Inflation Protected Securities (TIPS). A sizable exposure to TIPS also hurt the relative performance of the PIMCO Total Return Portfolio during the second quarter, erasing the excess return it earned earlier in the year.

Investment Committee

MetLife Advisers, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

MetLife Growth Strategy Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATELY AGGRESSIVE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
MetLife Growth Strategy Portfolio                      

Class A

        9.10           18.68           5.16           5.56   

Class B

        8.98           18.37           4.89           5.28   
Dow Jones Moderately Aggressive Index        6.82           14.95           5.66           6.93   

1 The Dow Jones Moderately Aggressive Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 80% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 11/4/2004. Inception of the Class A shares is 5/2/2005. Index returns are based on an inception date of 11/4/2004.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
T. Rowe Price Large Cap Value Portfolio (Class A)      6.2   
MFS® Value Portfolio (Class A)      6.2   
Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A)      5.2   
T. Rowe Price Large Cap Growth Portfolio (Class A)      5.2   
Jennison Growth Portfolio (Class A)      5.1   
Harris Oakmark International Portfolio (Class A)      4.6   
ClearBridge Aggressive Growth Portfolio (formerly Legg Mason ClearBridge Aggressive Growth Portfolio      4.3   
Davis Venture Value Portfolio (Class A)      4.1   
BlackRock Large Cap Value Portfolio (Class A)      4.1   
Baillie Gifford International Stock Portfolio (Class A)      3.8   

 

MIST-3

Met Investors Series Trust

MetLife Growth Strategy Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

MetLife Growth Strategy Portfolio

          
Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

     Actual      0.75 %     $ 1,000.00         $ 1,091.00         $ 3.89   
     Hypothetical*      0.75 %     $ 1,000.00         $ 1,021.08         $ 3.76   

Class B(a)

     Actual      1.00 %     $ 1,000.00         $ 1,089.80         $ 5.18   
     Hypothetical*      1.00 %     $ 1,000.00         $ 1,019.84         $ 5.01   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

 

MIST-4

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—100.0% of Net Assets

 

Security Description   Shares     Value  

Affiliated Investment Companies—100.0%

  

Baillie Gifford International Stock Portfolio (Class A) (a)

     34,900,745      $ 315,153,724   

BlackRock Bond Income Portfolio (Class A) (a)

     717,665        76,180,093   

BlackRock Capital Appreciation Portfolio (formerly BlackRock Legacy Large Cap Growth Portfolio) (Class A) (a)

     8,293,983        253,547,061   

BlackRock Large Cap Value Portfolio (Class A) (a)

     32,644,023        341,130,038   

Clarion Global Real Estate Portfolio (Class A) (b)

     21,663,259        234,613,100   

ClearBridge Aggressive Growth Portfolio (formerly Legg Mason ClearBridge Aggressive Growth Portfolio) (Class A) (b)

     31,183,222        352,994,076   

Davis Venture Value Portfolio (Class A) (a)

     9,232,042        342,601,078   

Frontier Mid Cap Growth Portfolio (Class A) (a)

     4,031,527        124,775,766   

Goldman Sachs Mid Cap Value Portfolio (Class A) (b)

     7,939,874        122,432,859   

Harris Oakmark International Portfolio (Class A) (b)

     24,047,713        385,003,879   

Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A) (b)

     34,386,974        433,275,870   

Invesco Small Cap Growth Portfolio (Class A) (b)

     10,005,219        168,387,838   

Janus Forty Portfolio (Class A) (b)

     3,049,597        252,567,647   

Jennison Growth Portfolio (Class A) (a)

     33,521,090        422,365,735   

JPMorgan Core Bond Portfolio (Class A) (b)

     7,460,374        75,872,003   

JPMorgan Small Cap Value Portfolio (formerly Dreman Small Cap Value Portfolio) (Class A) (b)

     9,114,074        154,392,406   

Loomis Sayles Small Cap Growth Portfolio (Class A) (a) (c)

     11,907,913        163,614,731   

Lord Abbett Bond Debenture Portfolio (Class A) (b)

     9,574,154        121,974,728   

Met/Artisan Mid Cap Value Portfolio (Class A) (a)

     742,906        171,678,122   

Met/Dimensional International Small Company Portfolio (Class A) (a)

     17,943,294        245,643,690   

Met/Eaton Vance Floating Rate Portfolio (Class A) (b)

     15,171,110        157,779,546   

Met/Templeton International Bond Portfolio (Class A) (b)

     16,501,678        187,789,096   

MFS® Emerging Markets Equity Portfolio (Class A) (b)

     26,287,295        256,563,996   

MFS® Research International Portfolio (Class A) (b)

     23,712,390        246,608,852   

MFS® Value Portfolio (Class A) (a)

     33,834,939        514,967,771   

Morgan Stanley Mid Cap Growth Portfolio (Class A) (b)

     9,320,588        125,827,934   

Neuberger Berman Genesis Portfolio (Class A) (a)

     8,834,443        131,368,161   

PIMCO Inflation Protected Bond Portfolio (Class A) (b)

     21,474,993        216,038,432   

PIMCO Total Return Portfolio (Class A) (b)

     13,825,469        162,311,005   

T. Rowe Price Large Cap Growth Portfolio (Class A) (a)

     21,876,601        428,562,617   

Affiliated Investment Companies—(Continued)

  

T. Rowe Price Large Cap Value Portfolio (Class A) (b)

     18,541,182      $ 517,855,212   

T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)

     16,755,254        172,914,218   

T. Rowe Price Small Cap Growth Portfolio (Class A) (a)

     2,173,616        41,581,268   

Third Avenue Small Cap Value Portfolio (Class A) (b)

     8,708,470        154,662,419   

Van Eck Global Natural Resources Portfolio (Class A) (a)

     18,767,808        228,967,256   
   

 

 

  

Total Mutual Funds
(Cost $7,103,831,090)

       8,302,002,227   
   

 

 

  

Total Investments—100.0%
(Cost $7,103,831,090) (d)

       8,302,002,227   

Other assets and liabilities (net)—0.0%

       (2,232,274 ) 
   

 

 

  
Net Assets—100.0%     $ 8,299,769,953   
   

 

 

  

 

(a) A Portfolio of Metropolitan Series Fund. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b) A Portfolio of Met Investors Series Trust. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c) Non-income producing security.
(d) As of June 30, 2013, the aggregate cost of investments was $7,103,831,090. The aggregate unrealized appreciation and depreciation of investments were $1,267,019,523 and $(68,848,386), respectively, resulting in net unrealized appreciation of $1,198,171,137.

 

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Affiliated Investment Companies

    $ 8,302,002,227       $ —         $ —         $ 8,302,002,227   

Total Investments

    $ 8,302,002,227       $ —         $ —         $ 8,302,002,227   
                                     

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Growth Strategy Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Affiliated investments at value (a)

    $ 8,302,002,227   

Receivable for:

   

Investments sold

      1,213   

Fund shares sold

      1,434,357   
  

 

 

  

Total Assets

      8,303,437,797   

Liabilities

   

Due to Adviser

      1,223   

Payables for:

   

Investments purchased

      38,469   

Fund shares redeemed

      1,397,100   

Accrued expenses:

   

Management fees

      376,013   

Distribution and service fees

      1,724,726   

Deferred trustees’ fees

      41,001   

Other expenses

      89,312   
  

 

 

  

Total Liabilities

      3,667,844   
  

 

 

  

Net Assets

    $ 8,299,769,953   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 8,037,417,748   

Undistributed net investment income

      112,714,773   

Accumulated net realized loss

      (1,048,533,705 ) 

Unrealized appreciation on affiliated investments

      1,198,171,137   
  

 

 

  

Net Assets

    $ 8,299,769,953   
  

 

 

  

Net Assets

   

Class A

    $ 5,943,363   

Class B

      8,293,826,590   

Capital Shares Outstanding*

   

Class A

      486,827   

Class B

      682,210,659   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 12.21   

Class B

      12.16   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of affiliated investments was $7,103,831,090.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Affiliated Underlying Portfolios

    $ 124,663,752   
  

 

 

  

Total investment income

      124,663,752   

Expenses

   

Management fees

      2,108,979   

Administration fees

      10,902   

Deferred expense reimbursement

      7,335   

Custodian and accounting fees

      12,290   

Distribution and service fees—Class B

      9,610,119   

Audit and tax services

      16,416   

Legal

      11,604   

Trustees’ fees and expenses

      13,466   

Miscellaneous

      2,694   
  

 

 

  

Total expenses

      11,793,805   
  

 

 

  

Net Investment Income

      112,869,947   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain on:   

Affiliated investments

      152,698,052   

Capital gain distributions from Affiliated Underlying Portfolios

      111,072,221   
  

 

 

  

Net realized gain

      263,770,273   
  

 

 

  

Net change in unrealized appreciation on affiliated investments

      251,038,061   
  

 

 

  

Net realized and unrealized gain

      514,808,334   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 627,678,281   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 112,869,947      $ 93,494,873   

Net realized gain

      263,770,273        287,467,286   

Net change in unrealized appreciation

      251,038,061        635,852,468   
  

 

 

    

 

 

  

Increase in net assets from operations

      627,678,281        1,016,814,627   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (53,725 )      (47,107 ) 

Class B

      (116,318,395 )      (116,049,871 ) 
  

 

 

    

 

 

  

Total distributions

      (116,372,120 )      (116,096,978 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      765,534,979        (603,862,940 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      1,276,841,140        296,854,709   

Net Assets

     

Beginning of period

      7,022,928,813        6,726,074,104   
  

 

 

    

 

 

  

End of period

    $ 8,299,769,953      $ 7,022,928,813   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 112,714,773      $ 116,216,946   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      12,544      $ 154,575        23,982      $ 260,595   

Shares issued through acquisition

      236,946        2,886,005        0        0   

Reinvestments

      4,538        53,725        4,374        47,107   

Redemptions

      (12,690 )      (156,303 )      (41,845 )      (452,825 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      241,338      $ 2,938,002        (13,489 )    $ (145,123 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      8,017,725      $ 96,517,417        13,178,304      $ 141,211,593   

Shares issued through acquisition

      80,579,552        977,429,966        0        0   

Reinvestments

      9,857,491        116,318,395        10,815,459        116,049,871   

Redemptions

      (35,203,366 )      (427,668,801 )      (79,961,501 )      (860,979,281 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      63,251,402      $ 762,596,977        (55,967,738 )    $ (603,717,817 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 765,534,979        $ (603,862,940 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.40      $ 10.01       $ 10.56       $ 9.29       $ 7.12       $ 12.89   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.15        0.16         0.15         0.14         0.16         0.16   

Net realized and unrealized gain (loss) on investments

      0.88        1.43         (0.52 )       1.31         2.01         (4.77 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.03        1.59         (0.37 )       1.45         2.17         (4.61 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.22 )      (0.20 )       (0.18 )       (0.18 )       0.00         (0.41 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.75 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.22 )      (0.20 )       (0.18 )       (0.18 )       0.00         (1.16 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.21      $ 11.40       $ 10.01       $ 10.56       $ 9.29       $ 7.12   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      9.10  (c)      16.04         (3.64 )       15.77         30.48         (37.74 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (d)

      0.06  (e)      0.06         0.06         0.06         0.06         0.06   

Net ratio of expenses to average net assets (%) (d) (f)

      0.06  (e)      0.06         0.06         0.06         0.06         0.06   

Ratio of net investment income to average net assets (%) (g)

      1.19  (e)(h)      1.49         1.39         1.51         2.02         1.50   

Portfolio turnover rate (%)

      8  (c)      12         24         14         39         23   

Net assets, end of period (in millions)

    $ 5.9      $ 2.8       $ 2.6       $ 2.8       $ 2.9       $ 2.4   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.34      $ 9.96       $ 10.51       $ 9.25       $ 7.11       $ 12.85   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.18        0.14         0.12         0.12         0.15         0.13   

Net realized and unrealized gain (loss) on investments

      0.83        1.42         (0.51 )       1.30         1.99         (4.75 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.01        1.56         (0.39 )       1.42         2.14         (4.62 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.19 )      (0.18 )       (0.16 )       (0.16 )       0.00         (0.37 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.75 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.19 )      (0.18 )       (0.16 )       (0.16 )       0.00         (1.12 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 12.16      $ 11.34       $ 9.96       $ 10.51       $ 9.25       $ 7.11   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      8.98  (c)      15.72         (3.87 )       15.49         30.10         (37.87 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (d)

      0.31  (e)      0.31         0.31         0.31         0.31         0.31   

Net ratio of expenses to average net assets (%) (d) (f)

      0.31  (e)      0.31         0.31         0.31         0.31         0.31   

Ratio of net investment income to average net assets (%) (g)

      1.30  (e)(h)      1.33         1.18         1.31         1.92         1.28   

Portfolio turnover rate (%)

      8  (c)      12         24         14         39         23   

Net assets, end of period (in millions)

    $ 8,293.8      $ 7,020.1       $ 6,723.5       $ 7,456.1       $ 6,915.0       $ 5,380.6   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(g) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.
(h) The income earned by the Portfolio through the investments in Underlying Portfolios is not annualized.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MetLife Growth Strategy Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio is designed on established principles of asset allocation to achieve a specific risk profile. The Portfolio will invest substantially all of its assets in other portfolios of the Trust or of Metropolitan Series Fund (“Underlying Portfolios”).

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying Portfolios are valued at their closing daily net asset value. The net asset value of the Portfolio is calculated based on the net asset values of the Underlying Portfolios in which the Portfolio invests. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to short-term capital gain distributions received from Underlying Portfolios. These adjustments have no impact on net assets or the results of operations.

3. Certain Risks

Market Risk: In the normal course of business, the Underlying Portfolios invest in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the companies whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

 

MIST-10

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Underlying Portfolios’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments of the applicable Underlying Portfolios.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of the Underlying Portfolios by the Portfolio, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 638,977,139       $ 0       $ 746,111,330   

With respect to the Portfolio’s merger with Met/Franklin Templeton Founding Portfolio (see Note 9) on April 26, 2013, the Portfolio acquired securities with a cost of $1,000,541,556 that are not included in the above non-U.S. Government purchases value.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board of Trustees (the “Board”) and has overall responsibility for the general management and administration of the Trust.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$2,108,979      0.100 %    First $500 million
     0.075 %    $500 million to $1 billion
     0.050 %    Over $1 billion

In addition to the above management fee paid to the Adviser, the Portfolio indirectly pays MetLife Advisers a management fee through its investments in the Underlying Portfolios.

Expense Limitation Agreement - On November 7, 2008, the Strategic Conservative Growth Portfolio, a series of the Trust, merged with and into the Portfolio.

The Adviser had entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting the expenses of the Strategic Conservative Growth Portfolio. The Expense Limitation Agreement with respect to the Strategic Conservative Growth Portfolio has since expired. Pursuant to the Expense Limitation Agreement, the Adviser had agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Strategic Conservative Growth Portfolio other than interest, taxes, brokerage commissions, other expenditures which were capitalized in accordance with the GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and Underlying Portfolios’ fees and expenses but

 

MIST-11

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

including amounts payable pursuant a plan adopted in accordance with Rule 12b-1 under the 1940 Act were limited to a certain percentage of Strategic Conservative Growth Portfolio’s average daily net assets, as set forth in the Expense Limitation Agreement.

At the time of the merger, the Adviser, subject to approval by the Trust’s Board, was entitled to an aggregate reimbursement of $275,495 from the Strategic Conservative Growth Portfolio. Such amount was a contractual obligation of the Strategic Conservative Growth Portfolio under the Expense Limitation Agreement. As a result of the merger, the Portfolio assumed this contractual obligation of the Strategic Conservative Growth Portfolio. Any reimbursement of the Adviser owed by the Strategic Conservative Growth Portfolio will now be made by the Portfolio, subject to prior approval by the Trust’s Board. The obligation to reimburse the Adviser for any expenses of the Strategic Conservative Growth Portfolio paid by the Adviser expires on December 31, 2013.

As of June 30, 2013, there were no expenses deferred in 2013 and $7,335 was repaid to the Adviser in accordance with the Expense Limitation Agreement. The amount of expenses deferred in 2008, which were recovered during the six months ended June 30, 2013 was $7,335. As of June 30, 2013, there was $105,467 in expense deferrals eligible for recoupment by the Adviser. Amounts recouped for the six months ended June 30, 2013 are shown as Deferred expense reimbursement in the Statement of Operations.

 

Expenses Deferred in

  

2008

    2009      2010      2011      2012  

Subject to repayment until December 31,

  

2013

    2014      2015      2016      2017  
$105,467    $ —       $ —       $ —       $ —   

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

 

MIST-12

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

The Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolio’s net assets. Transactions in the Underlying Portfolios for the six months ended June 30, 2013 were as follows:

 

Underlying Portfolio (Class A)

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

Baillie Gifford International Stock

      30,623,198         4,736,686         (459,139 )      34,900,745   

BlackRock Bond Income

      591,112         219,375         (92,822 )      717,665   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      7,378,649         1,033,666         (118,332 )      8,293,983   

BlackRock Large Cap Value

      28,790,235         5,934,712         (2,080,924 )      32,644,023   

Clarion Global Real Estate

      18,537,066         3,797,340         (671,147 )      21,663,259   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      30,015,516         3,751,820         (2,584,114 )      31,183,222   

Davis Venture Value

      10,628,995         1,358,659         (2,755,612 )      9,232,042   

Frontier Mid Cap Growth

      —         4,081,027         (49,500 )      4,031,527   

Goldman Sachs Mid Cap Value

      5,050,080         3,218,352         (328,558 )      7,939,874   

Harris Oakmark International

      23,604,655         3,402,581         (2,959,523 )      24,047,713   

Invesco Comstock (formerly Van Kampen Comstock)

      32,434,302         4,451,571         (2,498,899 )      34,386,974   

Invesco Small Cap Growth

      13,601,947         1,823,393         (5,420,121 )      10,005,219   

Janus Forty

      2,708,494         381,719         (40,616 )      3,049,597   

Jennison Growth

      29,681,521         4,397,828         (558,259 )      33,521,090   

JPMorgan Core Bond

      —         7,559,424         (99,050 )      7,460,374   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      9,425,485         1,135,009         (1,446,420 )      9,114,074   

Loomis Sayles Small Cap Growth*

      12,631,150         1,415,050         (2,138,287 )      11,907,913   

Lord Abbett Bond Debenture

      10,373,567         1,736,011         (2,535,424 )      9,574,154   

Met/Artisan Mid Cap Value

      713,188         93,950         (64,232 )      742,906   

Met/Dimensional International Small Company*

      15,389,257         2,906,447         (352,410 )      17,943,294   

Met/Eaton Vance Floating Rate

      12,779,224         2,603,265         (211,379 )      15,171,110   

Met/Templeton International Bond

      11,744,029         4,983,706         (226,057 )      16,501,678   

MFS® Emerging Markets Equity

      12,893,875         13,740,663         (347,243 )      26,287,295   

MFS® Research International

      27,453,906         3,355,745         (7,097,261 )      23,712,390   

MFS® Value

      30,600,846         5,559,848         (2,325,755 )      33,834,939   

Morgan Stanley Mid Cap Growth

      5,890,355         3,579,435         (149,202 )      9,320,588   

Neuberger Berman Genesis

      5,321,268         3,760,568         (247,393 )      8,834,443   

PIMCO Inflation Protected Bond

      17,134,483         4,641,243         (300,733 )      21,474,993   

PIMCO Total Return

      15,902,006         2,649,494         (4,726,031 )      13,825,469   

T. Rowe Price Large Cap Growth

      19,760,252         2,618,832         (502,483 )      21,876,601   

T. Rowe Price Large Cap Value

      17,349,104         2,470,768         (1,278,690 )      18,541,182   

T. Rowe Price Mid Cap Growth

      14,877,827         2,855,090         (977,663 )      16,755,254   

T. Rowe Price Small Cap Growth

      —         2,200,915         (27,299 )      2,173,616   

Third Avenue Small Cap Value

      8,860,796         1,123,982         (1,276,308 )      8,708,470   

Turner Mid Cap Growth

      6,061,518         2,720,410         (8,781,928 )      —   

Van Eck Global Natural Resources

      16,207,712         2,816,175         (256,079 )      18,767,808   

 

* The Portfolio had ownership of at least 25% of the outstanding voting securities of the Underlying Portfolio as of June 30, 2013. The most recent Annual Report of the Underlying Portfolio is available without charge, upon request, by calling (800) 848-3854 or on the Securities and Exchange Commission’s website at http:// www.sec.gov.

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

Baillie Gifford International Stock

    $ (1,588,164 )    $ —       $ 4,803,399       $ 315,153,724   

BlackRock Bond Income

      836,984        1,636,423         2,684,738         76,180,093   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      202,577        —         1,923,970         253,547,061   

BlackRock Large Cap Value

      6,143,197        16,692,841         4,317,588         341,130,038   

Clarion Global Real Estate

      (811,899 )      —         15,165,580         234,613,100   

 

MIST-13

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

    $ 7,730,755      $ —       $ 1,342,225       $ 352,994,076   

Davis Venture Value

      256,420        5,119,125         4,286,156         342,601,078   

Frontier Mid Cap Growth

      (750,359 )      869,952         461,607         124,775,766   

Goldman Sachs Mid Cap Value

      671,222        3,864,788         1,201,037         122,432,859   

Harris Oakmark International

      16,831,727        —         9,935,201         385,003,879   

Invesco Comstock (formerly Van Kampen Comstock)

      5,208,563        —         5,149,389         433,275,870   

Invesco Small Cap Growth

      44,332,711        8,804,624         647,887         168,387,838   

Janus Forty

      1,372,343        —         1,802,434         252,567,647   

Jennison Growth

      2,470,118        4,003,196         1,630,932         422,365,735   

JPMorgan Core Bond

      (4,292 )      288,554         360,693         75,872,003   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      993,743        —         985,758         154,392,406   

Loomis Sayles Small Cap Growth

      2,837,276        —         —         163,614,731   

Lord Abbett Bond Debenture

      8,024,612        —         7,455,567         121,974,728   

Met/Artisan Mid Cap Value

      1,064,460        —         1,516,216         171,678,122   

Met/Dimensional International Small Company

      1,545,443        6,393,457         4,608,171         245,643,690   

Met/Eaton Vance Floating Rate

      101,764        643,713         5,690,423         157,779,546   

Met/Templeton International Bond*

      446,098        756,160         3,766,537         187,789,096   

MFS® Emerging Markets Equity

      (622,811 )      —         3,220,982         256,563,996   

MFS® Research International

      24,688,802        —         6,320,981         246,608,852   

MFS® Value

      14,742,491        14,812,319         8,723,459         514,967,771   

Morgan Stanley Mid Cap Growth

      140,070        —         896,332         125,827,934   

Neuberger Berman Genesis

      1,016,514        —         949,129         131,368,161   

PIMCO Inflation Protected Bond

      244,196        11,138,049         4,680,444         216,038,432   

PIMCO Total Return

      4,287,953        2,815,320         6,413,322         162,311,005   

T. Rowe Price Large Cap Growth

      1,716,341        —         1,182,972         428,562,617   

T. Rowe Price Large Cap Value

      3,553,330        —         8,128,124         517,855,212   

T. Rowe Price Mid Cap Growth

      1,110,128        7,961,119         644,336         172,914,218   

T. Rowe Price Small Cap Growth

      (7,431 )      1,986,267         128,555         41,581,268   

Third Avenue Small Cap Value

      3,253,897        —         1,721,136         154,662,419   

Turner Mid Cap Growth

      (72,487 )      23,286,314         —         —   

Van Eck Global Natural Resources

      731,760        —         1,918,472         228,967,256   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 152,698,052      $ 111,072,221       $ 124,663,752       $ 8,302,002,227   
  

 

 

    

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

     

Long-Term Capital Gains

      Total  

2012

    2011      2012      2011      2012      2011  
$116,096,978    $ 112,936,651       $ —       $ —       $ 116,096,978       $ 112,936,651   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$116,252,572    $ —       $ 701,102,398       $ (1,046,332,286 )    $ (228,977,316 ) 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010

 

MIST-14

Met Investors Series Trust

MetLife Growth Strategy Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

(the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2017

    Expiring
12/31/2018		      Total  
$919,705,413    $ 126,626,873       $ 1,046,332,286   

9. Acquisition

At the close of business on April 26, 2013, the Portfolio, with aggregate Class A and Class B net assets of $3,015,664 and $7,455,544,431, respectively, acquired all of the assets and liabilities of Met/Franklin Templeton Founding Strategy Portfolio of the Trust (“Met/Franklin Templeton Founding Strategy”).

The acquisition was accomplished by a tax-free exchange of 236,946 Class A shares of the Portfolio (valued at $2,886,005) for 366,460 Class A shares of Met/Franklin Templeton Founding Strategy and 80,579,552 Class B shares of the Portfolio (valued at $977,429,966) for 124,846,451 Class B shares of Met/Franklin Templeton Founding Strategy. Each shareholder of Met/Franklin Templeton Founding Strategy received shares of the Portfolio with the same class designation and at the respective Class NAV, as determined at the close of business on April 26, 2013. The transaction was part of a restructuring designed to eliminate the offering of overlapping Portfolios in the MetLife, Inc. families of funds with similar investment objectives and similar investment strategies that serve as funding vehicles for insurance contracts that are offered by affiliates of MetLife. Some of the investments held by Met/Franklin Templeton Founding Strategy may have been purchased or sold prior to the acquisition for the purpose of complying with the anticipated investment policies or limitations of the Portfolio after the acquisition. If such purchases or sales occurred, the transaction costs were borne by Met/Franklin Templeton Founding Strategy. All other costs associated with the merger were not borne by the shareholders of either portfolio. Met/Franklin Templeton Founding Strategy’s net assets on April 26, 2013, were $2,886,005 and $977,429,966 for Class A and Class B shares, respectively, including investments valued at $980,600,544 with a cost basis of $1,000,541,556. For financial reporting purposes, assets received, liabilities assumed and shares issued by the Portfolio were recorded at fair value; however, the cost basis of the investments received by the Portfolio from Met/Franklin Templeton Founding Strategy were carried forward to align ongoing reporting of the Portfolio’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The aggregate net assets of the Portfolio immediately after the acquisition were $8,438,876,066, which included $(19,941,012) of acquired unrealized depreciation.

Assuming the acquisition had been completed on January 1, 2013, the Portfolio’s pro-forma results of operations for the period ended June 30, 2013 are as follows:

 

Net Investment income

    $ 128,403,603  (a) 

Net realized and unrealized gain on investments

    $ 574,092,018  (b) 
  

 

 

  

Net increase in net assets from operations

    $ 702,495,621   
  

 

 

  

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Met/Franklin Templeton Founding Strategy that have been included in the Portfolio’s Statement of Operations since April 26, 2013.

 

(a) $112,869,947 as reported plus $15,532,840 Met/Franklin Templeton Founding Strategy pre-merger, minus $15,006 in higher advisory fees, plus $15,822 of pro-forma eliminated other expenses.
(b) $1,198,171,137 Unrealized appreciation, as reported June 30, 2013, minus $1,095,356,997 pro-forma December 31, 2012 Unrealized depreciation, plus $263,770,273 Net realized gain as reported, plus $207,507,605 in Net Realized gain from Met/Franklin Templeton Founding Strategy pre-merger.

 

MIST-15

Met Investors Series Trust

Shareholder Votes (Unaudited)

 

At a Joint Special Meeting of Shareholders, held on February 22, 2013, the shareholders of the Portfolio voted for the following proposal:

 

     For      Against      Abstain      Total  
To approve an Agreement and Plan of Reorganization (the “Plan”) providing for the acquisition of all of the assets of Met/Franklin Templeton Founding Strategy Portfolio (“Founding Strategy”) by MetLife Growth Strategy Portfolio (“MetLife Growth Strategy”), a series of Met Investors Series Trust, in exchange for shares of MetLife Growth Strategy and the assumption by MetLife Growth Strategy of the liabilities of Founding Strategy. The Plan also provides for the distribution of these shares of MetLife Growth Strategy to shareholders of Founding Strategy in liquidation and subsequent termination of Founding Strategy.      77,553,479.973         4,764,013.347         8,028,886.342         90,346,379.662   

 

MIST-16

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the MetLife Moderate Strategy Portfolio returned 4.60% and 4.54%, respectively. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

The global capital markets continued to respond to changing perceptions about the prospects for economic growth and the efforts by governments throughout the world to both avoid a new economic recession and to meet their fiscal responsibilities. Interest rates jumped in the second quarter following ambiguous comments by Federal Reserve Chairman Benjamin Bernanke. The Five Year Treasury Note yield rose from a 0.74% level at the end of 2012 to a 1.40% level at the end of June. For the entire six month period, the Barclays U.S. Aggregate Bond Index returned a negative 2.44%. As expected in a declining interest rate environment, long maturity bonds declined more than short maturity bonds. Below investment grade bonds were able to modestly positive return because of a strong first quarter return and a higher coupon. Foreign denominated bonds fell even more sharply because of the impact of a strong U.S. dollar relative to other currencies.

Even with a decline late in the second quarter, U.S. stocks produced strong returns during the first half of 2013. The Standard & Poor’s 500 Index returned 13.82% for the period. Small cap stocks, as measured by the Russell 2000 Index, did even better with a 15.86% return. While both investment styles posted double digit returns, value style stocks did slightly better than growth style stocks (15.90% for the Russell 1000 Value Index compared to 11.80% for the Russell 1000 Growth Index). The Health Care and Financial Services sectors were the best performers for the period; the Information Technology and Materials sectors trailed.

On a local currency basis, foreign stocks from developed countries produced a return close to that of domestic stocks as measured by the 11.01% local currency return of the MSCI EAFE Index. A rise in the value of dollar reduced that return for U.S. investors to only 4.10%. Emerging market stocks did even worse as the strong dollar and concerns about China’s slower economic growth produced a return of negative 9.57% in the MSCI Emerging Markets Index. Combining emerging and developed markets, foreign stocks produced a nearly flat return of 0.16% for the six month period as measured by the MSCI All Country World Ex U.S. Index in U.S. dollars.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The MetLife Moderate Strategy Portfolio invested in underlying portfolios of the Met Investors Series Trust and the Metropolitan Series Fund to maintain a broad asset allocation of approximately 50% to fixed income and 50% to equities. While there was no change in the Portfolio’s strategic asset class goals during the period, there were several changes in the underlying portfolios used by the portfolio manager to achieve those allocations. Most notable was the addition of the JPMorgan Core Bond Portfolio to add diversity to the fixed income segment. A new equity portfolio was added: the JPMorgan Small Cap Value Portfolio. In addition, to more closely reflect the global equity markets, the position in the MFS® Emerging Market Equity Portfolio was modestly increased from 1.0% to 1.5%.

As a whole, the underlying bond portfolios detracted from the Portfolio’s performance over the period on an absolute basis and had an overall neutral impact on relative performance. Those bond portfolios with a focus on below investment grade bonds—the Lord Abbett Bond Debenture Portfolio, the BlackRock High Yield Portfolio, and the Met/Eaton Vance Floating Rate Portfolio—produced positive total returns on the strength of a good first quarter. The two underlying bond portfolios with a shorter average maturity than the Barclays U.S. Aggregate Bond Index (the Western Asset Management U.S. Government Bond Portfolio and the Met/Franklin Templeton Low Duration Portfolio) both held up better than the Index in a rising interest rate environment. Although negative for the period, the Met/Templeton International Bond Portfolio did much better than its foreign bond benchmark due to avoiding exposure to fixed income securities tied to the Japanese yen. The biggest absolute detractor to the Portfolio’s performance was the PIMCO Inflation Protected Bond Portfolio, which fell sharply during the second quarter in line with the decline in Treasury Inflation Protected Securities (TIPS). A sizable exposure to TIPS also hurt the relative performance of the PIMCO Total Return Portfolio during the second quarter, erasing the excess returned it earned earlier in the year.

Despite negative returns in the final month of the period, all of the underlying domestic equity portfolios produced strongly positive returns during the six-month period ending June 30, 2013. Among the biggest contributors to both absolute and relative returns were several large cap domestic value portfolios, which were helped by the general strength of value style stocks relative to growth style stocks. Equally important was that these portfolios did not hold market giant Apple, Inc., which declined 24.6% for the period. One of these strong performing value portfolios was the Invesco Comstock Portfolio, which had very good security selection in the Information Technology sector where it owned Hewlett-Packard Corporation and Microsoft Corporation. The MFS® Value Portfolio’s underweight in the Information Technology sector and good security selection in the Financial Services and Industrials sectors were the major factors helping its relative performance. In the Financial Services sector, it owned Prudential Financial, Inc. and State Street Corporation; while in the Industrials sector it owned aerospace manufacturer Lockheed Martin and industrial technology company Honeywell International, Inc. The Davis Venture Value Portfolio benefitted mostly from good security selection in the Consumer Discretionary sector, where it held NetFlix, Inc., and the Information Technology sector, where it owned Google, Inc. The T. Rowe Price Large Cap Value Portfolio’s relative return was due to positive security selection in the Information Technology sector. While most underlying portfolios with a growth style orientation struggled during the period, the

 

MIST-1

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Managed by MetLife Advisers, LLC

Portfolio Manager Commentary*—(Continued)

 

ClearBridge Aggressive Growth Portfolio belied its growth oriented investment style with strong security selection. In the Health Care sector, it owned biotech company Biogen Idec, Inc., and in the Information Technology sector, it avoided Apple, Inc. and owned Irish data storage device company Seagate Technology, PLC.

Since growth style stocks lagged value stocks during the six month period, it was not surprising that several underlying equity portfolios with a growth style were among the largest detractors to the Portfolio’s relative performance. The Jennison Growth Portfolio was hurt by owning American Tower Corporation, a communication infrastructure real estate investment trust. It was also hurt by not owning Microsoft Corporation. The BlackRock Capital Appreciation Portfolio (formerly called the BlackRock Legacy Large Cap Growth Portfolio) was hurt mostly by weak overall security selection. For example, they owned drug company Allergan, Inc. in the Health Care sector, which fell sharply in early May. The T. Rowe Price Large Cap Growth Portfolio was hurt by its growth style and by its selection in the Financial Services and Information Technology sectors. It owned American Tower Corp. and held a large overweight position in Apple, Inc. The Third Avenue Small Value Portfolio also hurt relative performance due mostly to its 7% cash position and its sector weightings, including a large overweight to the weak Materials sector.

The investment return on foreign equities for U.S. dollar-based investors was constrained by the strong dollar relative to most foreign currencies, especially the Japanese yen. In addition, exposure to the stocks of developing countries had an overall negative impact on the Portfolio’s performance relative to both developed foreign and domestic stocks. For the Portfolio, this exposure came primarily from the MFS Emerging Markets Equity Portfolio and the Baillie Gifford International Stock Portfolio, the latter of which held nearly 23% of its assets in companies from emerging market countries. Consistent with the overall decline in the real estate investment trust market during the period, the Clarion Global Real Estate Portfolio detracted from relative performance. On the positive side, the Harris Oakmark International Portfolio had strong relative performance throughout the period due to consistently strong security selection across all sectors and regions. From Japan, they owned brokerage company Daiwa Securities Co., Ltd. and health care equipment producer Olympus Corporation, and from the United Kingdom, they held Lloyds Banking Group PLC.

Investment Committee

MetLife Advisers, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
MetLife Moderate Strategy Portfolio                      

Class A

        4.60           11.78           5.82           5.77   

Class B

        4.54           11.56           5.56           5.23   
Dow Jones Moderate Index        4.17           10.56           5.47           6.28   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 11/4/2004. Inception of the Class A shares is 5/2/2005. Index returns are based on an inception date of 11/4/2004.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
PIMCO Total Return Portfolio (Class A)      15.2   
BlackRock Bond Income Portfolio (Class A)      7.2   
Western Asset Management U.S. Government Portfolio (Class A)      6.9   
MFS® Value Portfolio (Class A)      5.2   
JPMorgan Core Bond Portfolio (Class A)      5.2   
T. Rowe Price Large Cap Value Portfolio (Class A)      4.6   
BlackRock Large Cap Value Portfolio (Class A)      4.1   
PIMCO Inflation Protected Bond Portfolio (Class A)      3.7   
Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A)      3.6   
BlackRock Capital Appreciation Portfolio (formerly BlackRock Legacy Large Cap Growth Portfolio)      3.1   

 

MIST-3

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

MetLife Moderate Strategy Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

      Actual      0.64 %     $ 1,000.00         $ 1,046.00         $ 3.25   
     Hypothetical*      0.64 %     $ 1,000.00         $ 1,021.62         $ 3.21   

Class B(a)

      Actual      0.89 %     $ 1,000.00         $ 1,045.40         $ 4.51   
     Hypothetical*      0.89 %     $ 1,000.00         $ 1,020.38         $ 4.46   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

 

MIST-4

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—100.0% of Net Assets

 

Security Description   Shares     Value  

Affiliated Investment Companies—100.0%

  

Baillie Gifford International Stock Portfolio (Class A) (a)

     10,401,829      $ 93,928,518   

BlackRock Bond Income Portfolio (Class A) (a)

     3,227,667        342,616,869   

BlackRock Capital Appreciation Portfolio (formerly BlackRock Legacy Large Cap Growth Portfolio) (Class A) (a)

     4,808,835        147,006,084   

BlackRock High Yield Portfolio (Class A) (b)

     9,436,077        77,658,913   

BlackRock Large Cap Value Portfolio (Class A) (a)

     18,778,502        196,235,351   

Clarion Global Real Estate Portfolio (Class A) (b)

     8,555,759        92,658,870   

ClearBridge Aggressive Growth Portfolio (formerly Legg Mason ClearBridge Aggressive Growth Portfolio) (Class A) (b)

     9,708,668        109,902,123   

Davis Venture Value Portfolio (Class A) (a)

     2,659,137        98,680,588   

Goldman Sachs Mid Cap Value Portfolio (Class A) (b)

     3,200,889        49,357,707   

Harris Oakmark International Portfolio (Class A) (b)

     9,032,631        144,612,424   

Invesco Comstock Portfolio (formerly Van Kampen Comstock Portfolio) (Class A) (b)

     13,438,973        169,331,057   

Invesco Small Cap Growth Portfolio (Class A) (b)

     5,899,358        99,286,191   

Jennison Growth Portfolio (Class A) (a)

     9,463,250        119,236,954   

JPMorgan Core Bond Portfolio (Class A) (b)

     24,142,968        245,533,983   

JPMorgan Small Cap Value Portfolio (formerly Dreman Small Cap Value Portfolio) (Class A) (b)

     2,831,408        47,964,060   

Lord Abbett Bond Debenture Portfolio (Class A) (b)

     2,667,294        33,981,330   

Met/Artisan Mid Cap Value Portfolio (Class A) (a)

     213,969        49,446,031   

Met/Dimensional International Small Company Portfolio (Class A) (a)

     3,502,285        47,946,282   

Met/Eaton Vance Floating Rate Portfolio (Class A) (b)

     9,263,322        96,338,554   

Met/Franklin Low Duration Total Return Portfolio (Class A) (b)

     14,314,201        142,283,159   

Met/Templeton International Bond Portfolio (Class A) (b)

     8,250,613        93,891,979   

MFS® Emerging Markets Equity Portfolio (Class A) (b)

     6,644,562        64,850,925   

MFS® Research International Portfolio (Class A) (b)

     11,657,029        121,233,100   

MFS® Value Portfolio (Class A) (a)

     16,167,584        246,070,624   

Neuberger Berman Genesis Portfolio (Class A) (a)

     5,021,212        74,665,428   

PIMCO Inflation Protected Bond Portfolio (Class A) (b)

     17,324,386        174,283,326   

PIMCO Total Return Portfolio (Class A) (b)

     61,456,417        721,498,335   

Pioneer Fund Portfolio (Class A) (b)

     9,219        147,597   

T. Rowe Price Large Cap Growth Portfolio (Class A) (a)

     5,547,669        108,678,829   

T. Rowe Price Large Cap Value Portfolio (Class A) (b)

     7,759,675        216,727,728   

T. Rowe Price Mid Cap Growth Portfolio (Class A) (b)

     4,804,999        49,587,585   

Affiliated Investment Companies—(Continued)

  

Third Avenue Small Cap Value Portfolio (Class A) (b)

     4,171,305      $ 74,082,380   

Van Eck Global Natural Resources Portfolio (Class A) (a)

     3,656,011        44,603,331   

Western Asset Management Strategic Bond Opportunities Portfolio (Class A) (a)

     2,563,005        33,703,514   

Western Asset Management U.S. Government Portfolio (Class A) (a)

     27,389,634        327,580,028   
   

 

 

  

Total Mutual Funds
(Cost $4,323,793,278)

       4,755,609,757   
   

 

 

  

Total Investments—100.0%
(Cost $4,323,793,278) (c)

       4,755,609,757   

Other assets and liabilities (net)—0.0%

       (1,292,378 ) 
   

 

 

  
Net Assets—100.0%     $ 4,754,317,379   
   

 

 

  

 

(a) A Portfolio of Metropolitan Series Fund. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b) A Portfolio of Met Investors Series Trust. (See Note 6 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(c) As of June 30, 2013, the aggregate cost of investments was $4,323,793,278. The aggregate unrealized appreciation and depreciation of investments were $474,423,701 and $(42,607,222), respectively, resulting in net unrealized appreciation of $431,816,479.

 

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Mutual Funds            

Affiliated Investment Companies

    $ 4,755,609,757       $ —         $ —         $ 4,755,609,757   

Total Investments

    $ 4,755,609,757       $ —         $ —         $ 4,755,609,757   
                                     

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Affiliated investments at value (a)

    $ 4,755,609,757   

Receivable for:

   

Investments sold

      2,588,862   

Fund shares sold

      257,887   
  

 

 

  

Total Assets

      4,758,456,506   

Liabilities

   

Payables for:

   

Fund shares redeemed

      2,846,749   

Accrued expenses:

   

Management fees

      228,872   

Distribution and service fees

      989,972   

Deferred trustees’ fees

      41,001   

Other expenses

      32,533   
  

 

 

  

Total Liabilities

      4,139,127   
  

 

 

  

Net Assets

    $ 4,754,317,379   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 4,107,449,668   

Undistributed net investment income

      108,802,744   

Accumulated net realized gain

      106,248,488   

Unrealized appreciation on affiliated investments

      431,816,479   
  

 

 

  

Net Assets

    $ 4,754,317,379   
  

 

 

  

Net Assets

   

Class A

    $ 1,346,362   

Class B

      4,752,971,017   

Capital Shares Outstanding*

   

Class A

      115,070   

Class B

      407,627,288   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.70   

Class B

      11.66   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of affiliated investments was $4,323,793,278.

 

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Affiliated Underlying Portfolios

    $ 116,521,494   
  

 

 

  

Total investment income

      116,521,494   

Expenses

   

Management fees

      1,393,342   

Administration fees

      10,902   

Custodian and accounting fees

      12,290   

Distribution and service fees—Class B

      6,035,239   

Audit and tax services

      14,660   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Miscellaneous

      2,700   
  

 

 

  

Total expenses

      7,492,255   
  

 

 

  

Net Investment Income

      109,029,239   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Affiliated investments

      117,810,478   

Capital gain distributions from Affiliated Underlying Portfolios

      70,924,347   
  

 

 

  

Net realized gain

      188,734,825   
  

 

 

  

Net change in unrealized depreciation on affiliated investments

      (82,922,262 ) 
  

 

 

  

Net realized and unrealized gain

      105,812,563   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 214,841,802   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 109,029,239      $ 97,661,894   

Net realized gain

      188,734,825        150,645,859   

Net change in unrealized appreciation (depreciation)

      (82,922,262 )      299,222,889   
  

 

 

    

 

 

  

Increase in net assets from operations

      214,841,802        547,530,642   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (35,529 )      (34,017 ) 

Class B

      (116,026,649 )      (125,446,751 ) 

Net realized capital gains

     

Class A

      (2,474 )      0   

Class B

      (8,894,029 )      0   
  

 

 

    

 

 

  

Total distributions

      (124,958,681 )      (125,480,768 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (95,309,382 )      (175,808,091 ) 
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (5,426,261 )      246,241,783   

Net Assets

     

Beginning of period

      4,759,743,640        4,513,501,857   
  

 

 

    

 

 

  

End of period

    $ 4,754,317,379      $ 4,759,743,640   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 108,802,744      $ 115,835,683   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      48,210      $ 569,103        7,938      $ 86,549   

Reinvestments

      3,259        38,003        3,129        34,017   

Redemptions

      (49,597 )      (585,607 )      (5,304 )      (58,555 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      1,872      $ 21,499        5,763      $ 62,011   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      7,764,927      $ 91,987,184        21,961,274      $ 241,035,954   

Reinvestments

      10,750,489        124,920,678        11,572,579        125,446,751   

Redemptions

      (26,341,989 )      (312,238,743 )      (49,376,296 )      (542,352,807 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (7,826,573 )    $ (95,330,881 )      (15,842,443 )    $ (175,870,102 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (95,309,382 )      $ (175,808,091 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.51      $ 10.51       $ 10.70       $ 9.76       $ 8.29       $ 11.73   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.28        0.25         0.22         0.25         0.33         0.27   

Net realized and unrealized gain (loss) on investments

      0.25        1.07         (0.19 )       0.97         1.70         (3.22 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.53        1.32         0.03         1.22         2.03         (2.95 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.32 )      (0.32 )       (0.22 )       (0.28 )       (0.33 )       (0.21 ) 

Distributions from net realized capital gains

      (0.02 )      0.00         0.00         0.00         (0.23 )       (0.28 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.34 )      (0.32 )       (0.22 )       (0.28 )       (0.56 )       (0.49 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.70      $ 11.51       $ 10.51       $ 10.70       $ 9.76       $ 8.29   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      4.60  (c)      12.70         0.17         12.66         26.35         (26.19 ) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%) (d)

      0.06  (e)      0.06         0.06         0.06         0.07         0.07   

Ratio of net investment income to average net assets (%) (f)

      2.34  (e)(g)      2.23         2.09         2.50         3.82         2.74   

Portfolio turnover rate (%)

      11  (c)      11         25         16         28         22   

Net assets, end of period (in millions)

    $ 1.3      $ 1.3       $ 1.1       $ 1.1       $ 1.1       $ 0.9   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.45      $ 10.46       $ 10.66       $ 9.73       $ 8.26       $ 11.70   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.27        0.23         0.20         0.21         0.28         0.25   

Net realized and unrealized gain (loss) on investments

      0.25        1.05         (0.20 )       0.98         1.73         (3.23 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.52        1.28         0.00         1.19         2.01         (2.98 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.29 )      (0.29 )       (0.20 )       (0.26 )       (0.31 )       (0.18 ) 

Distributions from net realized capital gains

      (0.02 )      0.00         0.00         0.00         (0.23 )       (0.28 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.31 )      (0.29 )       (0.20 )       (0.26 )       (0.54 )       (0.46 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.66      $ 11.45       $ 10.46       $ 10.66       $ 9.73       $ 8.26   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      4.54  (c)      12.39         (0.12 )       12.40         26.09         (26.42 ) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%) (d)

      0.31  (e)      0.31         0.31         0.31         0.32         0.32   

Ratio of net investment income to average net assets (%) (f)

      2.08  (e)(g)      2.06         1.84         2.07         3.26         2.45   

Portfolio turnover rate (%)

      11  (c)      11         25         16         28         22   

Net assets, end of period (in millions)

    $ 4,753.0      $ 4,758.4       $ 4,512.4       $ 4,205.8       $ 3,054.2       $ 1,915.1   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(e) Computed on an annualized basis.
(f) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying Portfolios in which it invests.
(g) The income earned by the Portfolio through the investments in Underlying Portfolios is not annualized.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MetLife Moderate Strategy Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio is designed on established principles of asset allocation to achieve a specific risk profile. The Portfolio will invest substantially all of its assets in other portfolios of the Trust or of Metropolitan Series Fund (“Underlying Portfolios”).

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying Portfolios are valued at their closing daily net asset value. The net asset value of the Portfolio is calculated based on the net asset values of the Underlying Portfolios in which the Portfolio invests. For information about the use of fair value pricing by the Underlying Portfolios, please refer to the prospectuses of the Underlying Portfolios.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying Portfolios are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to short-term capital gain distributions received from Underlying Portfolios. These adjustments have no impact on net assets or the results of operations.

3. Certain Risks

Market Risk: In the normal course of business, the Underlying Portfolios invest in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Underlying Portfolios may decline in response to certain events, including those directly involving the companies whose securities are owned by the Underlying Portfolios; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

 

MIST-10

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Credit and Counterparty Risk: The Underlying Portfolios may be exposed to counterparty risk, or the risk that an entity with which the Underlying Portfolios have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Underlying Portfolios to credit and counterparty risk consist principally of cash due from counterparties and investments. The Underlying Portfolios manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Underlying Portfolios’ investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Underlying Portfolios restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments of the applicable Underlying Portfolios.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and in the Underlying Portfolios in which it invests.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of the Underlying Portfolios by the Portfolio, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 556,482,523       $ 0       $ 596,807,099   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board of Trustees (the “Board”) and has overall responsibility for the general management and administration of the Trust.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$1,393,342      0.100 %    First $500 million
     0.075 %    $500 million to $1 billion
     0.050 %    Over $1 billion

In addition to the above management fee paid to the Adviser, the Portfolio indirectly pays MetLife Advisers a management fee through its investments in the Underlying Portfolios.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate

 

MIST-11

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

The Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolio’s net assets. Transactions in the Underlying Portfolios for the six months ended June 30, 2013 were as follows:

 

Underlying Portfolio (Class A)

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

Baillie Gifford International Stock

      10,391,643         180,066         (169,880 )      10,401,829   

BlackRock Bond Income

      3,698,151         213,075         (683,559 )      3,227,667   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      4,987,067         43,736         (221,968 )      4,808,835   

BlackRock High Yield

      10,723,728         919,044         (2,206,695 )      9,436,077   

BlackRock Large Cap Value

      19,525,209         1,408,420         (2,155,127 )      18,778,502   

Clarion Global Real Estate

      8,381,951         600,380         (426,572 )      8,555,759   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      10,155,086         96,908         (543,326 )      9,708,668   

Davis Venture Value

      2,882,950         90,877         (314,690 )      2,659,137   

Goldman Sachs Mid Cap Value

      3,426,843         166,158         (392,112 )      3,200,889   

Harris Oakmark International

      9,605,787         272,453         (845,609 )      9,032,631   

Invesco Comstock (formerly Van Kampen Comstock)

      13,201,458         1,007,165         (769,650 )      13,438,973   

Invesco Small Cap Growth

      6,162,494         417,957         (681,093 )      5,899,358   

Jennison Growth

      8,058,366         1,491,817         (86,933 )      9,463,250   

JPMorgan Core Bond

      —         24,143,113         (145 )      24,142,968   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      —         2,831,849         (441 )      2,831,408   

Lord Abbett Bond Debenture

      3,559,806         186,526         (1,079,038 )      2,667,294   

Met/Artisan Mid Cap Value

      242,583         2,318         (30,932 )      213,969   

Met/Dimensional International Small Company

      3,478,541         178,241         (154,497 )      3,502,285   

Met/Eaton Vance Floating Rate

      8,875,870         425,660         (38,208 )      9,263,322   

Met/Franklin Low Duration Total Return

      14,035,244         293,539         (14,582 )      14,314,201   

Met/Templeton International Bond

      8,066,002         217,546         (32,935 )      8,250,613   

MFS® Emerging Markets Equity

      4,375,423         2,301,516         (32,377 )      6,644,562   

MFS® Research International

      13,970,041         352,114         (2,665,126 )      11,657,029   

MFS® Value

      17,282,096         901,673         (2,016,185 )      16,167,584   

Neuberger Berman Genesis

      7,237,125         46,481         (2,262,394 )      5,021,212   

PIMCO Inflation Protected Bond

      15,853,265         1,487,414         (16,293 )      17,324,386   

PIMCO Total Return

      66,316,493         3,956,475         (8,816,551 )      61,456,417   

Pioneer Fund

      6,561,603         1,758         (6,554,142 )      9,219   

T. Rowe Price Large Cap Growth

      5,354,723         281,851         (88,905 )      5,547,669   

T. Rowe Price Large Cap Value

      7,845,628         342,149         (428,102 )      7,759,675   

T. Rowe Price Mid Cap Growth

      5,048,748         295,883         (539,632 )      4,804,999   

Third Avenue Small Cap Value

      6,027,119         57,598         (1,913,412 )      4,171,305   

Van Eck Global Natural Resources

      3,643,040         45,986         (33,015 )      3,656,011   

Western Asset Management Strategic Bond Opportunities

      3,403,253         126,658         (966,906 )      2,563,005   

Western Asset Management U.S. Government

      26,720,505         696,295         (27,166 )      27,389,634   

 

MIST-12

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

Baillie Gifford International Stock

    $ 377,024      $ —       $ 1,615,362       $ 93,928,518   

BlackRock Bond Income

      8,291,039        8,278,014         13,581,023         342,616,869   

BlackRock Capital Appreciation (formerly BlackRock Legacy Large Cap Growth)

      334,944        —         1,288,668         147,006,084   

BlackRock High Yield

      2,012,798        2,168,714         5,523,582         77,658,913   

BlackRock Large Cap Value

      6,153,560        11,156,362         2,885,583         196,235,351   

Clarion Global Real Estate

      (23,716 )      —         6,782,132         92,658,870   

ClearBridge Aggressive Growth (formerly Legg Mason ClearBridge Aggressive Growth)

      761,083        —         455,721         109,902,123   

Davis Venture Value

      3,499,860        1,726,745         1,445,774         98,680,588   

Goldman Sachs Mid Cap Value

      2,907,301        1,848,216         574,359         49,357,707   

Harris Oakmark International

      6,139,010        —         4,206,621         144,612,424   

Invesco Comstock (formerly Van Kampen Comstock)

      3,493,144        —         2,205,968         169,331,057   

Invesco Small Cap Growth

      5,316,974        6,096,582         448,616         99,286,191   

Jennison Growth

      31,175        1,257,643         512,373         119,236,954   

JPMorgan Core Bond

      2        1,049,428         1,311,785         245,533,983   

JPMorgan Small Cap Value (formerly Dreman Small Cap Value)

      389        —         337,270         47,964,060   

Lord Abbett Bond Debenture

      1,466,592        —         2,413,594         33,981,330   

Met/Artisan Mid Cap Value

      3,290,344        —         507,271         49,446,031   

Met/Dimensional International Small Company

      676,336        1,412,796         1,018,292         47,946,282   

Met/Eaton Vance Floating Rate

      19,628        443,671         3,922,050         96,338,554   

Met/Franklin Low Duration Total Return

      2,280        —         2,571,869         142,283,159   

Met/Templeton International Bond

      67,767        426,672         2,125,309         93,891,979   

MFS® Emerging Markets Equity

      174,239        —         913,026         64,850,925   

MFS® Research International

      4,652,721        —         3,651,243         121,233,100   

MFS® Value

      12,646,688        8,256,694         4,862,638         246,070,624   

Neuberger Berman Genesis

      9,000,829        —         647,959         74,665,428   

PIMCO Inflation Protected Bond

      10,813        10,090,308         4,240,161         174,283,326   

PIMCO Total Return

      14,203,144        14,060,076         32,028,969         721,498,335   

Pioneer Fund

      8,402,569        —         26,960         147,597   

T. Rowe Price Large Cap Growth

      238,980        —         332,352         108,678,829   

T. Rowe Price Large Cap Value

      5,387,191        —         3,729,187         216,727,728   

T. Rowe Price Mid Cap Growth

      2,603,768        2,652,426         214,675         49,587,585   

Third Avenue Small Cap Value

      13,912,440        —         964,760         74,082,380   

Van Eck Global Natural Resources

      118,505        —         422,655         44,603,331   

Western Asset Management Strategic Bond Opportunities

      1,635,006        —         1,731,328         33,703,514   

Western Asset Management U.S. Government

      6,051        —         7,022,359         327,580,028   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 117,810,478      $ 70,924,347       $ 116,521,494       $ 4,755,609,757   
  

 

 

    

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gains      Total  

2012

    2011       2012        2011       2012      2011  
$125,480,768    $ 82,509,082       $ —       $ —       $ 125,480,768       $ 82,509,082   

 

MIST-13

Met Investors Series Trust

MetLife Moderate Strategy Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$115,871,310    $ 8,559,521       $ 432,589,388       $ —       $ 557,020,219   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-14

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Managed by MetLife Advisers, LLC and MetLife Investment Management, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the MetLife Multi-Index Targeted Risk Portfolio returned 3.55%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

During the first six months of 2013, equity indexes rallied as investors reacted to positive macroeconomic numbers and central bank intervention. Better than expected macroeconomic data included U.S. jobless claims, payrolls, retail sales, durable goods orders, and home sales. The markets were supported by central bank intervention, including rate cuts by the European Central Bank (“ECB”), Reserve Bank of Australia, Bank of Korea, Bank of Israel, and ECB President Draghi’s comments that monetary policy would remain accommodative for as long as needed. However, the six-month period ended on a negative note on news that the Federal Reserve may start reducing the pace of bond purchases and end quantitative easing sooner than the market expected. Other concerns included increasing tensions between North and South Korea, slower growth in China, political uncertainty in Europe, weakness in commodity prices, and unrest in Turkey and the Middle East. U.S. bonds fell during the six-month period, as signs of an improving U.S. economy and the Federal Reserve news dampened the appeal of fixed income securities.

TOTAL PORTFOLIO REVIEW / PERIOD END POSITIONING

The MetLife Multi-Index Targeted Risk Portfolio (“MITR”) was composed of two segments. Approximately 75% of the Portfolio’s assets (the “Base Sleeve”) were invested in a variety of underlying index portfolios of the Metropolitan Series Fund (“MSF”) to achieve and maintain a broad asset allocation of approximately 40% to fixed income and 35% to equities. The “Base Sleeve” was managed by the Investment Committee of MetLife Advisers, LLC. The remaining 25% of the Portfolio’s assets (the “Overlay Sleeve”) were invested in cash and money market instruments that served as the collateral for derivative instruments used for two purposes. First, equity index futures and derivatives are used to keep the Portfolio’s overall volatility level within the desired range by changing the Portfolio’s equity exposure in response to equity market volatility. Through the use of these equity derivatives, the Portfolio’s total equity exposure can range from a minimum of 10% to a maximum of 70%. Second, interest rate swaps and other derivatives are used to manage the Portfolio’s duration. The “Overlay Sleeve” was managed by MetLife Investment Management, LLC.

BASE SLEEVE PORTFOLIO REVIEW / PERIOD END POSITIONING

Approximately 75% of the assets were invested in the Base Sleeve to add a 40% Fixed Income and a 35% Equity allocation to the Portfolio. Expressed in terms solely of the Base Sleeve, the allocation was approximately 53% Fixed Income and 47% Equity. The Fixed Income assets of the Base Sleeve were invested in the MSF Barclays Aggregate Bond Index Portfolio, a portfolio that seeks to replicate the performance of the Barclays Capital Aggregate Bond Index. The Equity assets were invested among portfolios that seek to replicate the returns of indices for the S&P 500 Index, the S&P 400 Mid Cap Index, the Russell 2000 Index, and the MSCI EAFE Index.

During the first six months of 2013 the fixed income allocation generated negative performance, while the equity allocation produced positive returns. All of the five underlying portfolios tracked closely to their respective index as per design. The Base Sleeve maintained a constant allocation to the passive index funds, and as such, sector selection, security selection or segment weighting did not significantly contribute to or detract from the overall Portfolio performance relative to the benchmark.

OVERLAY SLEEVE PORTFOLIO REVIEW / PERIOD END POSITIONING

A quantitative approach is used in the Overlay Sleeve to manage the Portfolio’s overall volatility level based on market signals driven by realized equity price volatility. During the period, realized equity volatility was close to the long-term average equity volatility and indicated a neutral level of equity exposure close to 60%, the same as the benchmark equity allocation. This slight underweighting of equities led to underperformance relative to the benchmark index as equities continued their strong performance through most of the period. As equities turned negative at the end of the period, however, the underweight exposure resulted in positive relative returns for the Portfolio. The overall equity exposure ranged between 50% and 69% during the period.

 

MIST-1

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Managed by MetLife Advisers, LLC and MetLife Investment Management, LLC

Portfolio Manager Commentary*—(Continued)

 

Interest rate derivatives are used to manage the sources of risk in the Portfolio and to provide additional diversification. In a period of rising interest rates, these interest rate derivatives detracted from both absolute and relative performance.

Base Sleeve

Investment Committee

MetLife Advisers, LLC

Overlay Sleeve

Chris Johnson

Portfolio Manager

MetLife Investment Management, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

 


A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

CUMULATIVE RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        Since Inception2  
MetLife Multi-Index Targeted Risk Portfolio            

Class B

        3.55           5.21   
Dow Jones Moderate Index        4.17           6.30   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 11/5/2012. Index returns are based on an inception date of 11/5/2012.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Barclays Aggregate Bond Index Portfolio (formerly Barclays Capital Aggregate Bond Index Portfolio) (Class A)      39.4   
MetLife Stock Index Portfolio (Class A)      17.8   
MSCI EAFE Index Portfolio (Class A)      9.9   
MetLife Mid Cap Stock Index Portfolio (Class A)      5.2   
Russell 2000 Index Portfolio (Class A)      3.2   

Top Sectors

 

     % of
Market Value of
Total Investments		  
Mutual Funds      75.5   
Cash & Cash Equivalents      24.5   

 

MIST-3

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

MetLife Multi-Index Targeted Risk Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)(b)

      Actual      0.82 %     $ 1,000.00         $ 1,035.50         $ 4.14   
     Hypothetical*      0.82 %     $ 1,000.00         $ 1,020.73         $ 4.11   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects an expense limitation agreement between MetLife Advisers, LLC and the Portfolio as described in Note 6 of the Notes to Financial Statements.

(b) The annualized expense ratio reflects the expenses of both the Portfolio and the Underlying Portfolios in which it invests.

 

MIST-4

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—75.5% of Net Assets

 

Security Description

   Shares/
Principal
Amount*		     Value  

Affiliated Investment Companies—75.5%

    

Barclays Aggregate Bond Index Portfolio (formerly Barclays Capital Aggregate Bond Index Portfolio) (Class A) (a)

     5,278,955      $ 57,487,816   

MetLife Mid Cap Stock Index Portfolio (Class A) (a)

     478,212        7,579,663   

MetLife Stock Index Portfolio (Class A) (a)

     707,337        25,930,971   

MSCI EAFE Index Portfolio (Class A) (a)

     1,232,916        14,425,117   

Russell 2000 Index Portfolio (Class A) (a)

     278,965        4,619,656   
   

 

 

  

Total Mutual Funds
(Cost $111,914,585)

       110,043,223   
   

 

 

  
Short-Term Investments—24.4%                

Discount Notes — 17.6%

    

Fannie Mae Discount Notes

    

0.041%, 07/02/13 (b)

     400,000        400,000   

0.051%, 07/02/13 (b)

     400,000        399,999   

0.081%, 07/02/13 (b)

     200,000        200,000   

0.081%, 09/09/13 (b)

     700,000        699,891   

0.091%, 09/09/13 (b)

     500,000        499,912   

0.091%, 10/16/13 (b)

     1,600,000        1,599,572   

0.101%, 07/02/13 (b)

     400,000        399,999   

0.122%, 07/02/13 (b)

     400,000        399,999   

0.122%, 09/09/13 (b)

     1,700,000        1,699,603   

0.127%, 07/02/13 (b)

     600,000        599,998   

0.142%, 09/09/13 (b)

     1,600,000        1,599,564   

0.152%, 09/09/13 (b)

     2,000,000        1,999,417   

Federal Home Loan Bank Discount Notes

    

0.061%, 09/04/13 (b)

     300,000        299,967   

0.066%, 09/04/13 (b)

     500,000        499,941   

0.071%, 09/04/13 (b)

     300,000        299,962   

0.076%, 09/04/13 (b)

     300,000        299,959   

0.081%, 07/02/13 (b)

     200,000        200,000   

0.081%, 09/04/13 (b)

     400,000        399,942   

0.101%, 09/04/13 (b)

     200,000        199,964   

0.112%, 07/02/13 (b)

     319,000        318,999   

0.112%, 09/04/13 (b)

     900,000        899,821   

0.122%, 11/22/13 (b)

     2,300,000        2,298,896   

0.132%, 09/04/13 (b)

     500,000        499,883   

Federal Home Loan Mortgage Corp. Discount Notes

    

0.086%, 10/28/13 (b)

     100,000        99,972   

0.091%, 10/28/13 (b)

     1,100,000        1,099,673   

0.092%, 10/28/13 (b)

     400,000        399,880   

0.095%, 10/28/13 (b)

     400,000        399,876   

0.096%, 10/28/13 (b)

     500,000        499,843   

0.096%, 10/28/13 (b)

     600,000        599,812   

0.101%, 10/28/13 (b)

     5,200,000        5,198,281   

0.117%, 10/28/13 (b)

     700,000        699,734   
   

 

 

  
      25,712,359   
   

 

 

  

U.S. Treasury — 6.5%

    

U.S. Treasury Bills

    

0.028%, 07/11/13 (b) (c)

     100,000        99,999   

U.S. Treasury—(Continued)

    

U.S. Treasury Bills

    

0.029%, 07/11/13 (b) (c)

     400,000      $ 399,997   

0.030%, 07/11/13 (b) (c)

     300,000        299,997   

0.040%, 07/11/13 (b) (c)

     300,000        299,997   

0.046%, 07/11/13 (b) (c)

     100,000        99,999   

0.056%, 11/14/13 (b)

     500,000        499,896   

0.063%, 11/14/13 (b)

     200,000        199,953   

0.063%, 11/14/13 (b)

     100,000        99,976   

0.064%, 07/11/13 (b) (c)

     300,000        299,995   

0.065%, 11/14/13 (b)

     600,000        599,855   

0.065%, 07/11/13 (b) (c)

     200,000        199,996   

0.066%, 07/11/13 (b) (c)

     300,000        299,995   

0.069%, 11/14/13 (b)

     200,000        199,949   

0.074%, 11/14/13 (b)

     500,000        499,863   

0.080%, 07/11/13 (b) (c)

     300,000        299,993   

0.081%, 07/11/13 (b) (c)

     400,000        399,991   

0.085%, 07/11/13 (b) (c)

     200,000        199,995   

0.090%, 07/11/13 (b) (c)

     500,000        499,988   

0.091%, 07/11/13 (b) (c)

     300,000        299,993   

0.091%, 07/11/13 (b) (c)

     100,000        99,997   

0.094%, 07/11/13 (b) (c)

     200,000        199,995   

0.095%, 07/11/13 (b) (c)

     200,000        199,995   

0.095%, 07/11/13 (b) (c)

     1,000,000        999,974   

0.095%, 07/11/13 (b) (c)

     500,000        499,987   

0.096%, 07/11/13 (b) (c)

     200,000        199,995   

0.107%, 07/11/13 (b) (c)

     300,000        299,991   

0.115%, 07/11/13 (b) (c)

     1,200,000        1,199,962   
   

 

 

  
      9,499,323   
   

 

 

  

Repurchase Agreement—0.3%

    

Fixed Income Clearing Corp.
Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $411,000 on 07/01/13, collateralized by $430,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $421,938.

     411,000        411,000   
   

 

 

  

Total Short-Term Investments
(Cost $35,622,682)

       35,622,682   
   

 

 

  

Total Investments— 99.9%
(Cost $147,537,267) (d)

       145,665,905   

Other assets and liabilities (net)—0.1%

       126,571   
   

 

 

  
Net Assets—100.0%     $ 145,792,476   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) A Portfolio of Metropolitan Series Fund. (See Note 7 of the Notes to Financial Statements for a summary of transactions in the securities of affiliated issuers.)
(b) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(c) All or a portion of the security was pledged as collateral against open futures contracts. As of June 30, 2013, the market value of securities pledged was $1,340,000.
(d) As of June 30, 2013, the aggregate cost of investments was $147,537,267. The aggregate unrealized appreciation and depreciation of investments were $1,064,747 and $(2,936,109), respectively, resulting in net unrealized depreciation of $(1,871,362).

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		      Notional
Amount		      Unrealized
Depreciation		  

MSCI EAFE E-Mini Index Futures

      09/20/13         69         USD         5,897,104       $ (240,139 ) 

Russell 2000 Mini Index Futures

      09/20/13         20         USD         1,952,435         (3,035 ) 

S&P 500 E-Mini Index Futures

      09/20/13         130         USD         10,519,781         (124,331 ) 

S&P Midcap 400 E-Mini Index Futures

      09/20/13         26         USD         3,036,966         (26,426 ) 

U.S. Treasury Note 10 Year Futures

      09/19/13         359         USD         46,857,048         (1,421,111 ) 
              

 

 

  

Net Unrealized Depreciation

  

    $ (1,815,042 ) 
              

 

 

  

 

(USD)— United States Dollar

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1     Level 2      Level 3      Total  
Mutual Funds           

Affiliated Investment Companies

    $ 110,043,223      $ —         $ —         $ 110,043,223   
Short-Term Investments           

Discount Notes

      —          25,712,359         —           25,712,359   

U.S. Treasury

      —          9,499,323         —           9,499,323   

Repurchase Agreement

      —          411,000         —           411,000   

Total Short-Term Investments

      —          35,622,682         —           35,622,682   

Total Investments

    $ 110,043,223      $ 35,622,682       $ —         $ 145,665,905   
                                    
Futures Contracts           

Futures Contracts (Unrealized Depreciation)

    $ (1,815,042 )    $ —         $ —         $ (1,815,042 ) 

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 35,622,682   

Affiliated investments at value (b)

      110,043,223   

Cash

      297   

Cash collateral for futures contracts

      27,034   

Receivable for:

   

Fund shares sold

      1,525,830   

From investment adviser

      3,478   

Other assets

      803   
  

 

 

  

Total Assets

      147,223,347   

Liabilities

   

Payables for:

   

Investments purchased

      1,143,529   

Fund shares redeemed

      1,125   

Net variation margin on futures contracts

      96,989   

Accrued expenses:

   

Management fees

      19,116   

Distribution and service fees

      27,025   

Deferred trustees’ fees

      7,350   

Other expenses

      135,737   
  

 

 

  

Total Liabilities

      1,430,871   
  

 

 

  

Net Assets

    $ 145,792,476   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 145,724,188   

Undistributed net investment income

      1,791,557   

Accumulated net realized gain

      1,963,135   

Unrealized depreciation on affiliated investments and futures contracts

      (3,686,404 ) 
  

 

 

  

Net Assets

    $ 145,792,476   
  

 

 

  

Net Assets

   

Class B

    $ 145,792,476   

Capital Shares Outstanding*

   

Class B

      13,872,197   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.51   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $35,622,682.
(b) Identified cost of affiliated investments was $111,914,585.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Affiliated Underlying Portfolios

    $ 2,030,623   

Interest

      10,350   
  

 

 

  

Total investment income

      2,040,973   

Expenses

   

Management fees

      73,339   

Administration fees

      8,663   

Custodian and accounting fees

      15,884   

Distribution and service fees—Class B

      103,101   

Audit and tax services

      18,333   

Legal

      32,192   

Trustees’ fees and expenses

      14,826   

Shareholder reporting

      3,959   

Miscellaneous

      2,995   
  

 

 

  

Total expenses

      273,292   

Less expenses reimbursed by the Adviser

      (25,850 ) 
  

 

 

  

Net expenses

      247,442   
  

 

 

  

Net Investment Income

      1,793,531   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      6   

Affiliated investments

      3,738   

Futures contracts

      1,628,192   

Capital gain distributions from Affiliated Underlying Portfolios

      397,565   
  

 

 

  

Net realized gain

      2,029,501   
  

 

 

  
Net change in unrealized depreciation on:   

Affiliated investments

      (2,020,789 ) 

Futures contracts

      (1,867,398 ) 
  

 

 

  

Net change in unrealized depreciation

      (3,888,187 ) 
  

 

 

  

Net realized and unrealized loss

      (1,858,686 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (65,155 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Period Ended
December 31,
2012(a)		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income (loss)

    $ 1,793,531      $ (9,630 ) 

Net realized gain

      2,029,501        35,739   

Net change in unrealized appreciation (depreciation)

      (3,888,187 )      201,783   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (65,155 )      227,892   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net realized capital gains

     

Class B

      (98,639 )      0   
  

 

 

    

 

 

  

Total distributions

      (98,639 )      0   
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      122,087,973        23,640,405   
  

 

 

    

 

 

  

Total Increase in Net Assets

      121,924,179        23,868,297   

Net Assets

     

Beginning of period

      23,868,297        0   
  

 

 

    

 

 

  

End of period

    $ 145,792,476      $ 23,868,297   
  

 

 

    

 

 

  

Accumulated Undistributed Net Investment Income (Loss)

     

End of period

    $ 1,791,557      $ (1,974 ) 
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Period Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      12,062,099      $ 127,934,633        2,349,640      $ 23,642,306   

Reinvestments

      9,306        98,639        0        0   

Redemptions

      (548,660 )      (5,945,299 )      (188 )      (1,901 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      11,522,745      $ 122,087,973        2,349,452      $ 23,640,405   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 122,087,973        $ 23,640,405   
    

 

 

      

 

 

  

 

(a) Commencement of operations was November 5, 2012.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Financial Highlights

 

Selected per share data  
     Class B  
     Six Months Ended
June 30, 2013
(Unaudited)		     Period Ended
December 31,
2012 (a)		  

Net Asset Value, Beginning of Period

    $ 10.16      $ 10.00   
  

 

 

    

 

 

  

Income (Loss) from Investment Operations

     

Net investment income (loss) (b)

      0.23        (0.01 ) 

Net realized and unrealized gain on investments

      0.13 (c)      0.17   
  

 

 

    

 

 

  

Total from investment operations

      0.36        0.16   
  

 

 

    

 

 

  

Less Distributions

     

Distributions from net realized capital gains

      (0.01 )      0.00   
  

 

 

    

 

 

  

Total distributions

      (0.01 )      0.00   
  

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.51      $ 10.16   
  

 

 

    

 

 

  

Total Return (%) (d)

      3.55  (e)      1.60  (e) 
  

 

 

    

 

 

  

Ratios/Supplemental Data

     

Gross ratio of expenses to average net assets (%) (g)

      0.66 (f)      9.45  (f) 

Net ratio of expenses to average net assets (%) (g) (h)

      0.60 (f)      0.60  (f) 

Ratio of net investment income (loss) to average net assets (%)

      1.87  (f)(j)      (0.57 )(f) 

Portfolio turnover rate (%)

      0 (e)(k)      0  (e)(i) 

Net assets, end of period (in millions)

    $ 145.8      $ 23.9   

 

(a) Commencement of operations was November 5, 2012.
(b) Per share amounts based on average shares outstanding during the period.
(c) The per share amount may differ with the change in aggregate gains (losses) as shown in the Statement of Operations due to the timing of purchases and sales of Portfolio shares in relation to fluctuating market values during the period.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.
(g) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(h) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(i) There were no long term purchase or sale transactions during the period ended December 31, 2012.
(j) The income earned by the Portfolio through the investments in Underlying Portfolios is not annualized.
(k) Rounds to less than 1%.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MetLife Multi-Index Targeted Risk Portfolio (the “Portfolio”) (commenced operations on November 5, 2012), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio invests approximately 75% of its assets (the “Base Portion”) in other Portfolios of the Trust or of Metropolitan Series Fund (“Underlying Portfolios”) and approximately 25% of its assets (the “Overlay Portion”) in a portfolio of fixed income instruments that serve as collateral for derivative instruments, primarily stock index futures.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are

 

MIST-10

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

 

MIST-11

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to, distribution and service fees and ordinary loss netting to reduce short-term capital gains. These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $411,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Mortgage Related and Other Asset Backed Securities - The Portfolio may invest in mortgage related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the

 

MIST-12

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate    Unrealized depreciation on futures contracts*    $ 1,421,111   
Equity    Unrealized depreciation on futures contracts*      393,931   
     

 

 

  
Total       $ 1,815,042   
     

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Equity     Total  

Futures contracts

    $ (50,450 )    $ 1,678,642      $ 1,628,192   
  

 

 

    

 

 

    

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Interest Rate     Equity     Total  

Futures contracts

    $ (1,405,680 )    $ (461,718 )    $ (1,867,398 ) 
  

 

 

    

 

 

    

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount (a)		  

Futures contracts long

    $ 26,280,183   

 

  (a) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon

 

MIST-13

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 94,275,581       $ 0       $ 101,831   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is responsible for managing the Base Portion of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with MetLife Investment Management, LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Overlay Portion of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets of the Overlay Portion of the Portfolio.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management Fees earned by
the Adviser (Overlay
Portion managed by the Subadviser)
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
of the Overlay Portion
$20,684      0.500 %    First $250 million
     0.485 %    $250 million to $500 million
     0.470 %    $500 million to $1 billion
     0.450 %    Over $1 billion

 

Management Fees
earned by the Adviser (Base
Portion managed by MLA)
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
of the Base Portion
$52,655      0.070 %    First $500 million
     0.060 %    $500 million to $1 billion
     0.050 %    Over $1 billion

In addition to the above management fees paid to the Adviser, the Portfolio indirectly pays MLA a management fee through its investment in the Underlying Portfolios.

 

MIST-14

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Expense Limitation Agreement - The Adviser has entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement shall continue in effect with respect to the Portfolio until April 27, 2014. Pursuant to that Expense Limitation Agreement, the Adviser has agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business, and Underlying Portfolios’ fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, are limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under Current
Expense Limitation Agreement

    Expenses Deferred in  
   2012      2013  
   Subject to repayment until December 31,  

Class B

    2017      2018  
0.60%    $ 148,313       $ 25,850   

Amounts waived for the six months ended June 30, 2013 are shown as expenses reimbursed by the Adviser in the Statement of Operations.

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred. As of June 30, 2013, there was $174,163 in expense deferrals eligible for recoupment by the Adviser.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

 

MIST-15

Met Investors Series Trust

MetLife Multi-Index Targeted Risk Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

7. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

The Portfolio does not invest in the Underlying Portfolios for the purpose of exercising control; however, investments by the Portfolio within its principal investment strategies may represent a significant portion of the Underlying Portfolio’s net assets. Transactions in the Underlying Portfolios for the six months ended June 30, 2013, 2013 were as follows:

 

Underlying Portfolio (Class A)

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

Barclays Aggregate Bond Index (formerly Barclays Capital Aggregate Bond Index)

      815,881         4,467,250         (4,176 )      5,278,955   

MetLife Mid Cap Stock Index

      83,245         395,795         (828 )      478,212   

MetLife Stock Index

      121,281         586,613         (557 )      707,337   

MSCI EAFE Index

      208,393         1,025,484         (961 )      1,232,916   

Russell 2000 Index

      50,161         229,450         (646 )      278,965   

 

Underlying Portfolio (Class A)

    Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios		     Capital Gain
Distributions from
Underlying
Portfolios		      Dividend Income
from Underlying
Portfolios		      Ending Value
as of
June 30, 2013		  

Barclays Aggregate Bond Index (formerly Barclays Capital Aggregate Bond Index)

    $ (1,337 )    $ —       $ 1,311,138       $ 57,487,816   

MetLife Mid Cap Stock Index

      1,223        142,138         57,997         7,579,663   

MetLife Stock Index

      1,625        255,427         314,787         25,930,971   

MSCI EAFE Index

      1,201        —         299,102         14,425,117   

Russell 2000 Index

      1,026        —         47,599         4,619,656   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 3,738      $ 397,565       $ 2,030,623       $ 110,043,223   
  

 

 

    

 

 

     

 

 

     

 

 

  

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

9. Income Tax Information

The tax character of distributions paid for the period ended December 31, 2012 were as follows:

 

Ordinary Income

    Long-Term Capital Gain      Total  
$—    $ —       $ —   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain
      Net
Unrealized
Appreciation		      Loss Carryforward
and Deferrals		      Total  
$31,777    $ 52,851       $ 149,427       $ —       $ 234,055   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-16

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Managed by Massachusetts Financial Services Company

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the MFS® Emerging Markets Equity Portfolio returned -10.40% and -10.53%, respectively. The Portfolio’s benchmark, the MSCI Emerging Markets (EM) Index1, returned -9.57%.

MARKET ENVIRONMENT / CONDITIONS

Just prior to the reporting period, a last minute political agreement concerning the U.S. fiscal cliff averted the worst-case scenario and markets gravitated towards risk assets. However, the implementation of the U.S. budget sequester, combined with the uncertainty surrounding the Italian election results, inserted a continued degree of caution as we entered the period. During the first few months of 2013, market sentiment improved markedly, as global macroeconomic indicators improved and fears of fiscal austerity in the U.S. waned. Late in the period, however, global growth dynamics looked to be weakening again, though markets were generally unfazed, continuing their risk-on path, especially in light of continued easing by global central banks and the Bank of Japan in particular. At the end of the period, the growing risk of tapering of quantitative easing by the U.S. Federal Reserve (“Fed”) caused sovereign bond yields to spike, credit spreads to widen, and equity valuations to fall. The tapering comments also contributed to downward pressure in emerging markets as dollar liquidity has tightened, impacting near-term rates and exacerbating concerns about an economic slowdown in the region. Emerging markets have now degraded to a point where they trade at close to a 25% discount based on 2014 forward price-to-earnings relative to developed markets.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Stock selection in the Consumer Staples sector held back relative performance. Holding South African health and beauty company Clicks Group weighed on relative returns as the stock underperformed the benchmark. Stock selection in the Telecommunication Services sector also had a negative impact on relative returns. However, there were no individual stocks within this sector that were among the Portfolio’s largest relative detractors during the period. Other factors that dampened relative results included the Portfolio’s positions in Indian steel manufacturer Steel Authority of India, South Korean automotive parts manufacturer Mando Corp., independent Energy company China Shenhua Energy, heavy truck manufacturer Sinotruk (Hong Kong), export trading company Li & Fung (Hong Kong), Brazilian steel company Usinas Siderurgicas de Minas Gerais, direct broadcast satellite subscription provider Dish TV (India) and Brazilian steel producer Gerdau. Not holding internet software service provider Tencent Holdings (China) also negatively impacted relative performance as the stock posted solid performance during the period.

Stock selection in the Industrials sector was a primary contributor to relative performance. However, there were no individual stocks within this sector that were among the Portfolio’s top contributors.

Favorable stock selection in the Financials sector was another positive factor for relative returns. The Portfolio’s holdings of Indonesian financial services firm Bank Negara Indonesia Persero boosted relative performance as the stock delivered positive performance during the period. Elsewhere, the Portfolio’s holdings of semiconductor assembly and testing company Siliconware Precision Industries (Taiwan), cordless phone and electronic learning products manufacturer VTech Holdings (Hong Kong), semiconductor manufacturers Taiwan Semiconductor and Seoul Semiconductor (South Korea), multinational media group Naspers (South Africa), ayurvedic and natural health care products maker Dabur India Limited (India), South Korean automaker Kia Motors and footwear manufacturer Stella International Holdings (Hong Kong) benefited relative performance as all eight stocks outperformed the benchmark. Additionally, ownership in shares of hospitality company Minor International (Thailand) aided relative results.

We continue to favor small and mid-cap names in emerging markets where we feel we can drive value for our shareholders given our local presence. Additionally, these are companies that should continue to benefit from the growing middle class and growing disposable income in this part of the world. Emerging markets have continued to experience downward pressure particularly as two of its larger markets have struggled. Both Brazil and China have been challenged for what seems like the better part of 3-4 years and there are probably more questions than answers for both countries at this point. We have been overweight Asian Autos, specifically the Chinese and Indian auto industry. In China, we own the actual auto makers while our Indian exposure is more weighted towards auto parts or supplies. This year we have seen a rebound in volumes in the local auto market in China as they’re growing about 15% after declining last year in the low single digits. Similarly, in India, we’ve seen a bit of a slowdown in the market and we’ve been building our positions through period-end.

In the Korean auto market our discomfort with auto parts company Mando providing loans to a related company caused us to consolidate our position in one of the larger auto companies. The stock has been weak and at what we feel to be interesting levels. This is probably the most diversified auto company in emerging markets with exposure to Russia, China, India, Brazil and even into Turkey. We no longer own any of the housing companies in Latin America. Changing regulation in Mexico with respect to a move towards building apartments versus individual homes has changed the dynamics of the industry and many of the construction companies are now having problems with their lenders. In Brazil the excess inventory has been absorbed by the market which has hurt the real estate brokers even though we feel this slowdown may be temporary.

We continue our underweight to Basic Materials, and have no exposure to chemicals, paper, containers and precious metals, In Metals & Mining we’ve been more weighted towards the mining sector, than to the metals sector. We are trying to differentiate between quality and believe miners are better business because the assets have a worth. The steel companies we own, also have exposure to iron ore

 

MIST-1

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Managed by Massachusetts Financial Services Company

Portfolio Manager Commentary*—(Continued)

 

so they’re not just processing companies. Here we’re also tilting towards the quality steel makers and are concentrating our position in markets where we believe steel is short of supply. Brazil and India are domestic markets that fit this category and also have import tariff protection. Valuations are cheap versus long term returns. Valuation sensitivity has caused us to be underweight Consumer Staples over the past few quarters. We believe emerging market Consumer Staples have some of the most interesting companies on a global basis, however, we’ve had issues with the rich valuations of the sector. During the period we started a position in geographically diversified beer company SAB Miller that has a lower multiple than a pure emerging market play.

Jose Luis Garcia

Robert Lau

Portfolio Managers

Massachusetts Financial Services Company

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE MSCI EMERGING MARKETS (EM) INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
MFS® Emerging Markets Equity Portfolio                      

Class A

        -10.40           1.04           -2.24           2.37   

Class B

        -10.53           0.70           -2.49           2.11   
MSCI Emerging Markets (EM) Index        -9.57           2.87           -0.43           4.02   

1 The MSCI Emerging Markets (EM) Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

2 Inception of Class A and Class B shares is 5/1/2006. Index returns are based on an inception date of 5/1/2006.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Taiwan Semiconductor Manufacturing Co., Ltd.      4.2   
Samsung Electronics Co., Ltd.      3.8   
Kia Motors Corp.      2.2   
Naspers, Ltd. - N Shares      2.2   
Siliconware Precision Industries Co.      1.9   
China Construction Bank Corp. - Class H      1.7   
Komercni Banka A/S      1.7   
Hon Hai Precision Industry Co., Ltd.      1.7   
Sberbank of Russia      1.6   
Petroleo Brasileiro S.A.(ADR)      1.6   

Top Countries

 

     % of
Market Value of
Total Investments		  
Brazil      18.7   
Hong Kong      10.4   
South Korea      10.0   
Taiwan      8.9   
India      8.8   
China      7.4   
Russia      5.2   
Mexico      4.8   
South Africa      4.1   
United States      2.6   

 

MIST-3

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

MFS® Emerging Markets Equity Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.99 %     $ 1,000.00         $ 896.00         $ 4.65   
   Hypothetical*      0.99 %     $ 1,000.00         $ 1,019.89         $ 4.96   

Class B(a)

    Actual      1.24 %     $ 1,000.00         $ 894.70         $ 5.83   
   Hypothetical*      1.24 %     $ 1,000.00         $ 1,018.65         $ 6.21   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—98.6% of Net Assets

 

Security Description   Shares     Value  

Argentina—0.3%

  

Arcos Dorados Holdings, Inc. - Class A (a)

     412,980      $ 4,823,606   
   

 

 

  

Australia—1.3%

  

Iluka Resources, Ltd. (a)

     2,105,369        19,008,245   
   

 

 

  

Brazil—18.3%

  

Abril Educacao S.A.

     373,800        6,533,354   

All America Latina Logistica S.A.

     1,305,100        5,533,084   

Alupar Investimento S.A. (b)

     738,600        6,249,476   

Anhanguera Educacional Participacoes S.A.

     1,278,100        7,389,020   

Banco Santander Brasil S.A.

     1,207,600        7,333,220   

BM&FBovespa S.A.

     2,470,200        13,683,049   

Brasil Brokers Participacoes S.A.

     2,579,500        7,571,974   

Brasil Insurance Participacoes e Administracao S.A.

     1,216,700        11,941,529   

Brazil Pharma S.A. (b)

     1,284,700        5,907,196   

CCR S.A.

     635,060        5,037,561   

CETIP S.A. - Mercados Organizados

     672,440        6,883,066   

Cia de Bebidas das Americas (ADR)

     400,082        14,943,063   

CIA Hering

     457,300        6,414,722   

EDP - Energias do Brasil S.A.

     1,088,800        5,528,538   

Embraer S.A. (ADR)

     153,270        5,654,130   

Estacio Participacoes S.A.

     1,071,420        7,682,667   

Fleury S.A.

     829,800        6,768,261   

Gerdau S.A. (ADR) (a)

     1,763,800        10,071,298   

Itau Unibanco Holding S.A. (ADR)

     852,492        11,014,197   

Kroton Educacional S.A.

     708,152        9,806,573   

Lojas Renner S.A.

     136,200        3,903,462   

LPS Brasil Consultoria de Imoveis S.A.

     1,018,500        8,261,747   

M Dias Branco S.A.

     305,600        11,435,947   

Multiplan Empreendimentos Imobiliarios S.A.

     299,310        6,947,034   

Multiplus S.A.

     329,400        4,806,626   

Odontoprev S.A.

     1,067,600        4,401,784   

Petroleo Brasileiro S.A. (ADR)

     1,767,482        23,719,608   

Raia Drogasil S.A.

     442,000        4,288,570   

Tim Participacoes S.A. (ADR)

     412,128        7,665,581   

Totvs S.A.

     306,000        4,798,414   

Tractebel Energia S.A.

     329,400        5,118,111   

Transmissora Alianca de Energia
Eletrica S.A.

     557,750        5,341,662   

Vale S.A. (ADR) (a)

     1,736,010        22,828,532   
   

 

 

  
      275,463,056   
   

 

 

  

Chile—0.3%

  

Aguas Andinas S.A. - Class A

     5,576,688        3,972,450   
   

 

 

  

China—7.4%

  

51job, Inc. (ADR) (a) (b)

     59,050        3,986,466   

Anhui Conch Cement Co., Ltd. - Class H (a)

     4,542,000        12,152,586   

Bank of China, Ltd. - Class H

     38,670,000        15,785,699   

China Construction Bank Corp. - Class H

     36,148,060        25,391,229   

China Pacific Insurance Group Co., Ltd. - Class H

     5,562,600        17,612,192   

China Shenhua Energy Co., Ltd. - Class H

     4,937,500        12,407,893   

Guangzhou Automobile Group Co., Ltd. - Class H (a)

     14,106,000        13,272,107   

Wumart Stores, Inc. - Class H (a)

     5,623,000        10,247,591   
   

 

 

  
      110,855,763   
   

 

 

  

Cyprus—0.5%

  

Global Ports Investments plc (GDR)

     526,770      $ 7,011,309   
   

 

 

  

Czech Republic—1.7%

  

Komercni Banka A/S (a)

     135,454        25,123,825   
   

 

 

  

Hong Kong—10.4%

  

Ajisen China Holdings, Ltd. (a)

     9,073,000        7,036,330   

China Mobile, Ltd.

     836,000        8,709,947   

China Unicom Hong Kong, Ltd. (a)

     16,332,000        21,542,051   

Dairy Farm International Holdings, Ltd. (a)

     885,000        10,646,122   

First Pacific Co., Ltd.

     8,184,800        8,724,274   

Geely Automobile Holdings, Ltd. (a)

     22,895,000        9,856,199   

Hang Lung Properties, Ltd.

     4,373,000        15,182,186   

Li & Fung, Ltd. (a)

     16,736,000        22,779,422   

Shangri-La Asia, Ltd.

     4,738,000        8,119,353   

Sinotruk Hong Kong, Ltd.

     14,066,000        6,845,635   

Stella International Holdings, Ltd.

     7,736,000        21,411,900   

VTech Holdings, Ltd. (a)

     1,018,100        15,378,400   
   

 

 

  
      156,231,819   
   

 

 

  

India—8.9%

  

CESC, Ltd.

     1,412,875        8,053,730   

Dabur India, Ltd.

     8,390,887        22,087,603   

Dish TV India, Ltd. (b)

     10,959,239        11,192,496   

Exide Industries, Ltd.

     6,007,361        12,254,443   

Housing Development Finance Corp.

     1,577,769        22,907,398   

ICICI Bank, Ltd.

     1,158,177        20,784,249   

Reliance Industries, Ltd.

     1,592,624        23,056,517   

Steel Authority of India, Ltd.

     7,997,434        6,822,520   

Thermax, Ltd.

     569,160        5,698,322   
   

 

 

  
      132,857,278   
   

 

 

  

Indonesia—1.9%

  

Bank Negara Indonesia Persero Tbk PT

     33,729,000        14,525,200   

Mitra Adiperkasa Tbk PT (b)

     6,103,000        4,292,645   

XL Axiata Tbk PT

     19,482,500        9,450,760   
   

 

 

  
      28,268,605   
   

 

 

  

Japan—1.5%

  

Chugoku Marine Paints, Ltd. (a)

     708,000        3,509,003   

GLORY, Ltd.

     482,600        11,319,012   

Inpex Corp.

     2,010        8,402,953   
   

 

 

  
      23,230,968   
   

 

 

  

Luxembourg—1.9%

  

O’Key Group S.A. (GDR)

     1,576,505        17,814,507   

Tenaris S.A. (ADR) (a)

     253,572        10,211,344   
   

 

 

  
      28,025,851   
   

 

 

  

Malaysia—2.3%

  

Astro Malaysia Holdings Bhd

     18,189,400        17,442,831   

CIMB Group Holdings Bhd

     2,782,600        7,207,505   

Top Glove Corp. Bhd

     5,129,600        10,113,706   
   

 

 

  
      34,764,042   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Mexico—4.8%

  

America Movil S.A.B. de C.V. - Series L (ADR)

     709,536      $ 15,432,408   

Arca Continental S.A.B. de C.V. (a)

     760,315        5,827,882   

Bolsa Mexicana de Valores S.A.B. de C.V. (a)

     1,925,000        4,786,706   

Compartamos S.A.B. de C.V. (a)

     3,304,760        5,705,403   

Concentradora Fibra Hotelera Mexicana S.A. de C.V. (a)

     1,881,000        3,752,579   

Genomma Lab Internacional S.A.B. de C.V. - Class B (a) (b)

     2,599,900        5,134,609   

Grupo Financiero Banorte S.A.B. de C.V. - Class O (a)

     673,600        4,023,680   

Grupo Financiero Santander Mexico S.A.B. de C.V. - Class B (ADR) (a) (b)

     301,080        4,278,347   

Grupo Mexico S.A.B. de C.V. Series B (a)

     1,539,346        4,455,003   

Kimberly-Clark de Mexico S.A.B. de C.V. - Class A

     1,678,337        5,504,889   

Macquarie Mexico Real Estate Management S.A. de C.V. (b)

     3,707,800        8,012,255   

Promotora y Operadora de Infraestructura S.A.B. de C.V. (b)

     626,400        5,752,315   
   

 

 

  
      72,666,076   
   

 

 

  

Panama—0.3%

  

Copa Holdings S.A. - Class A

     38,113        4,997,377   
   

 

 

  

Peru—0.4%

  

Credicorp, Ltd.

     47,477        6,075,157   
   

 

 

  

Russia—5.2%

  

Gazprom OAO (ADR)

     776,252        5,099,976   

Gazprom OAO (GDR)

     1,360,094        8,956,023   

M Video OJSC

     1,378,082        6,890,410   

Magnit OJSC

     42,069        8,413,800   

Mobile Telesystems OJSC (ADR)

     812,270        15,384,394   

NovaTek OAO (GDR)

     72,559        8,670,800   

Sberbank of Russia

     8,607,581        24,733,454   
   

 

 

  
      78,148,857   
   

 

 

  

South Africa—4.1%

  

Clicks Group, Ltd. (a)

     1,976,186        11,172,764   

Mr. Price Group, Ltd.

     537,964        7,316,053   

MTN Group, Ltd.

     559,141        10,371,571   

Naspers, Ltd. - N Shares

     440,797        32,407,936   
   

 

 

  
      61,268,324   
   

 

 

  

South Korea—10.0%

  

E-Mart Co., Ltd. (a)

     72,683        12,756,621   

Hana Financial Group, Inc.

     527,900        15,270,143   

Kia Motors Corp.

     610,110        32,983,794   

NHN Corp.

     48,799        12,434,684   

Samsung Electronics Co., Ltd.

     48,049        56,394,169   

Seoul Semiconductor Co., Ltd.

     421,288        12,359,094   

TK Corp. (b)

     427,116        8,484,294   
   

 

 

  
      150,682,799   
   

 

 

  

Taiwan—8.9%

  

Asustek Computer, Inc.

     1,307,000      $ 11,181,780   

Formosa Plastics Corp.

     2,448,000        5,902,526   

Hon Hai Precision Industry Co., Ltd.

     10,125,760        24,891,363   

Siliconware Precision Industries Co.

     22,930,000        28,712,675   

Taiwan Semiconductor Manufacturing Co., Ltd.

     17,591,842        63,664,837   
   

 

 

  
      134,353,181   
   

 

 

  

Thailand—1.8%

  

Bangkok Bank PCL (a)

     3,119,000        20,340,337   

Minor International PCL (a)

     8,077,050        6,458,515   
   

 

 

  
      26,798,852   
   

 

 

  

Turkey—2.2%

  

BIM Birlesik Magazalar A/S

     230,029        4,980,577   

Turkcell Iletisim Hizmetleri A/S (b)

     1,567,565        9,086,187   

Turkiye Garanti Bankasi A/S (a)

     4,280,658        18,634,417   
   

 

 

  
      32,701,181   
   

 

 

  

United Arab Emirates—0.5%

  

Lamprell plc (b)

     3,610,694        7,693,881   
   

 

 

  

United Kingdom—2.4%

  

SABMiller plc

     279,000        13,425,124   

Standard Chartered plc (a)

     1,012,806        22,086,559   
   

 

 

  
      35,511,683   
   

 

 

  

United States—1.3%

  

Cognizant Technology Solutions Corp. - Class A (b)

     305,670        19,137,999   
   

 

 

  

Total Common Stocks
(Cost $1,533,537,983)

       1,479,672,184   
   

 

 

  
Preferred Stock—0.5%   

Brazil—0.5%

  

Usinas Siderurgicas de Minas Gerais S.A. (b)
(Cost $11,115,952)

     2,125,800        7,078,537   
   

 

 

  
Rights—0.0%   

Hong Kong—0.0%

  

First Pacific Co., Ltd., Strike Price $8.10, Expires 07/03/13 (b)
(Cost $0)

     1,013,850        27,451   
   

 

 

  
Short-Term Investments—11.2%   

Mutual Fund—9.9%

  

State Street Navigator Securities Lending MET Portfolio (c)

     148,248,071        148,248,071   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  

Repurchase Agreement—1.3%

  

Fixed Income Clearing Corp.
Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $20,527,017 on 07/01/13, collateralized by $19,555,000 U.S. Government Agency obligations at 0.250% to 4.125% due 05/15/15 to 05/26/15 with a value of $20,939,117.

     20,527,000      $ 20,527,000   
   

 

 

  

Total Short-Term Investments
(Cost $168,775,071)

       168,775,071   
   

 

 

  

Total Investments—110.3%
(Cost $1,713,429,006) (d)

       1,655,553,243   

Other assets and liabilities (net)—(10.3)%

       (154,442,267 ) 
   

 

 

  
Net Assets—100.0%     $ 1,501,110,976   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $141,232,492 and the collateral received consisted of cash in the amount of $148,248,071. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(b) Non-income producing security.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $1,713,429,006. The aggregate unrealized appreciation and depreciation of investments were $113,986,912 and $(171,862,675), respectively, resulting in net unrealized depreciation of $(57,875,763).
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.
(GDR)— A Global Depositary Receipt is a negotiable certificate issued by one country’s bank against a certain number of shares of a company’s stock held in its custody but traded on the stock exchange of another country.

 

Ten Largest Industries as of
June 30, 2013 (Unaudited)

   

% of
Net Assets

  

Commercial Banks

      16.2   

Semiconductors & Semiconductor Equipment

      10.7   

Oil, Gas & Consumable Fuels

      6.0   

Food & Staples Retailing

      5.8   

Metals & Mining

      4.7   

Wireless Telecommunication Services

      4.4   

Media

      4.1   

Automobiles

      3.7   

Textiles, Apparel & Luxury Goods

      3.0   

Real Estate Management & Development

      2.5   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Argentina

    $ 4,823,606       $ —        $ —         $ 4,823,606   

Australia

      —           19,008,245        —           19,008,245   

Brazil

      275,463,056         —          —           275,463,056   

Chile

      3,972,450         —          —           3,972,450   

China

      3,986,466         106,869,297        —           110,855,763   

Cyprus

      7,011,309         —          —           7,011,309   

Czech Republic

      —           25,123,825        —           25,123,825   

Hong Kong

      —           156,231,819        —           156,231,819   

India

      —           132,857,278        —           132,857,278   

Indonesia

      —           28,268,605        —           28,268,605   

Japan

      —           23,230,968        —           23,230,968   

Luxembourg

      28,025,851         —          —           28,025,851   

Malaysia

      —           34,764,042        —           34,764,042   

Mexico

      72,666,076         —          —           72,666,076   

Panama

      4,997,377         —          —           4,997,377   

Peru

      6,075,157         —          —           6,075,157   

Russia

      44,459,380         33,689,477        —           78,148,857   

South Africa

      —           61,268,324        —           61,268,324   

South Korea

      —           150,682,799        —           150,682,799   

Taiwan

      —           134,353,181        —           134,353,181   

Thailand

      6,458,515         20,340,337        —           26,798,852   

Turkey

      —           32,701,181        —           32,701,181   

United Arab Emirates

      —           7,693,881        —           7,693,881   

United Kingdom

      —           35,511,683        —           35,511,683   

United States

      19,137,999         —          —           19,137,999   

Total Common Stocks

      477,077,242         1,002,594,942        —           1,479,672,184   

Total Preferred Stock*

      7,078,537         —          —           7,078,537   

Total Rights*

      —           27,451        —           27,451   
Short-Term Investments           

Mutual Fund

      148,248,071         —          —           148,248,071   

Repurchase Agreement

      —           20,527,000        —           20,527,000   

Total Short-Term Investments

      148,248,071         20,527,000        —           168,775,071   

Total Investments

    $ 632,403,850       $ 1,023,149,393      $ —         $ 1,655,553,243   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (148,248,071 )    $ —         $ (148,248,071 ) 

 

* See Schedule of Investments for additional detailed categorizations.

Transfers from Level 2 to Level 1 in the amount of $113,741,268 were due to the application of a systematic fair valuation model factor.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,655,553,243   

Cash

      830   

Cash denominated in foreign currencies (c)

      2,506,776   

Receivable for:

   

Fund shares sold

      1,041,502   

Dividends and interest

      6,157,303   
  

 

 

  

Total Assets

      1,665,259,654   

Liabilities

   

Payables for:

   

Investments purchased

      13,126,976   

Fund shares redeemed

      233,140   

Foreign taxes

      724,186   

Collateral for securities loaned

      148,248,071   

Accrued expenses:

   

Management fees

      1,074,147   

Distribution and service fees

      123,209   

Deferred trustees’ fees

      41,001   

Other expenses

      577,948   
  

 

 

  

Total Liabilities

      164,148,678   
  

 

 

  

Net Assets

    $ 1,501,110,976   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,633,893,732   

Undistributed net investment income

      7,664,330   

Accumulated net realized loss

      (81,824,107 ) 

Unrealized depreciation on investments and foreign currency transactions

      (58,622,979 ) 
  

 

 

  

Net Assets

    $ 1,501,110,976   
  

 

 

  

Net Assets

   

Class A

    $ 909,083,328   

Class B

      592,027,648   

Capital Shares Outstanding*

   

Class A

      93,139,038   

Class B

      61,134,367   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 9.76   

Class B

      9.68   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,713,429,006.
(b) Includes securities loaned at value of $141,232,492.
(c) Identified cost of cash denominated in foreign currencies was $2,507,586.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 19,341,582   

Interest

      779   

Securities lending income

      495,418   
  

 

 

  

Total investment income

      19,837,779   

Expenses

   

Management fees

      6,039,749   

Administration fees

      17,108   

Custodian and accounting fees

      753,845   

Distribution and service fees—Class B

      786,752   

Audit and tax services

      25,013   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      31,590   

Insurance

      3,735   

Miscellaneous

      4,924   
  

 

 

  

Total expenses

      7,685,838   

Less management fee waiver

      (123,972 ) 
  

 

 

  

Net expenses

      7,561,866   
  

 

 

  

Net Investment Income

      12,275,913   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments (b)

      12,639,457   

Futures contracts

      (1,530,933 ) 

Foreign currency transactions

      (992,583 ) 
  

 

 

  

Net realized gain

      10,115,941   
  

 

 

  
Net change in unrealized depreciation on:   

Investments (c)

      (180,324,028 ) 

Foreign currency transactions

      (24,737 ) 
  

 

 

  

Net change in unrealized depreciation

      (180,348,765 ) 
  

 

 

  

Net realized and unrealized loss

      (170,232,824 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (157,956,911 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $1,639,329.
(b) Net of foreign capital gains tax of $1,064,709.
(c) Includes foreign capital gains tax of $1,381,400.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 12,275,913      $ 15,626,649   

Net realized gain

      10,115,941        19,819,776   

Net change in unrealized appreciation (depreciation)

      (180,348,765 )      161,796,561   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (157,956,911 )      197,242,986   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (12,814,992 )      (5,305,959 ) 

Class B

      (6,808,230 )      (4,543,628 ) 
  

 

 

    

 

 

  

Total distributions

      (19,623,222 )      (9,849,587 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      459,264,558        14,217,163   
  

 

 

    

 

 

  

Total Increase in Net Assets

      281,684,425        201,610,562   

Net Assets

     

Beginning of period

      1,219,426,551        1,017,815,989   
  

 

 

    

 

 

  

End of period

    $ 1,501,110,976      $ 1,219,426,551   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 7,664,330      $ 15,011,639   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      40,821,142      $ 434,196,127        4,997,800      $ 50,964,051   

Reinvestments

      1,238,163        12,814,992        504,369        5,305,959   

Redemptions

      (1,273,195 )      (13,704,551 )      (3,755,949 )      (39,577,246 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      40,786,110      $ 433,306,568        1,746,220      $ 16,692,764   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      5,752,593      $ 60,610,440        8,331,678      $ 83,982,582   

Reinvestments

      662,924        6,808,230        434,797        4,543,628   

Redemptions

      (3,881,656 )      (41,460,680 )      (8,861,268 )      (91,001,811 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      2,533,861      $ 25,957,990        (94,793 )    $ (2,475,601 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 459,264,558        $ 14,217,163   
  

 

 

    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.04      $ 9.36       $ 11.65       $ 9.50       $ 5.75       $ 14.39   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.11        0.15         0.16         0.12         0.10         0.23   

Net realized and unrealized gain (loss) on investments

      (1.25 )      1.63         (2.28 )       2.15         3.79         (7.42 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.14 )      1.78         (2.12 )       2.27         3.89         (7.19 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.14 )      (0.10 )       (0.17 )       (0.12 )       (0.14 )       (0.19 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.14 )      (0.10 )       (0.17 )       (0.12 )       (0.14 )       (1.45 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.76      $ 11.04       $ 9.36       $ 11.65       $ 9.50       $ 5.75   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (10.40 )(c)      19.10         (18.42 )       24.00         69.17         (55.38 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      1.01  (d)      1.07         1.09         1.12         1.17         1.11   

Net ratio of expenses to average net assets (%) (e)

      0.99  (d)      1.07         1.09         1.12         1.17         1.11   

Ratio of net investment income to average net assets (%)

      2.11  (d)      1.50         1.50         1.19         1.39         2.34   

Portfolio turnover rate (%)

      16  (c)      29         40         35         92         108   

Net assets, end of period (in millions)

    $ 909.1      $ 578.1       $ 473.5       $ 596.0       $ 419.7       $ 437.0   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 10.94      $ 9.27       $ 11.56       $ 9.44       $ 5.71       $ 14.32   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.08        0.13         0.14         0.09         0.07         0.21   

Net realized and unrealized gain (loss) on investments

      (1.22 )      1.62         (2.28 )       2.13         3.79         (7.39 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (1.14 )      1.75         (2.14 )       2.22         3.86         (7.18 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.12 )      (0.08 )       (0.15 )       (0.10 )       (0.13 )       (0.17 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.26 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.12 )      (0.08 )       (0.15 )       (0.10 )       (0.13 )       (1.43 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 9.68      $ 10.94       $ 9.27       $ 11.56       $ 9.44       $ 5.71   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (10.53 )(c)      18.90         (18.70 )       23.65         68.95         (55.53 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      1.26  (d)      1.32         1.34         1.37         1.42         1.38   

Net ratio of expenses to average net assets (%) (e)

      1.24  (d)      1.32         1.34         1.37         1.42         1.38   

Ratio of net investment income to average net assets (%)

      1.44  (d)      1.25         1.30         0.90         0.94         2.21   

Portfolio turnover rate (%)

      16  (c)      29         40         35         92         108   

Net assets, end of period (in millions)

    $ 592.0      $ 641.3       $ 544.3       $ 576.5       $ 340.7       $ 140.3   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MFS® Emerging Markets Equity Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-13

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, foreign capital gain tax and passive foreign investment companies (PFICs). These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $20,527,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

 

MIST-14

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

During the six months ended June 30, 2013, the Portfolio entered into equity index futures contracts which were subject to equity price risk. During the period April 13 through April 16, 2013, the Portfolio had bought and sold $374,236,218 in equity index futures contracts. At June 30, 2013, the Portfolio did not have any open futures contracts. For the six months ended June 30, 2013, the Portfolio had realized losses in the amount of $(1,530,933) which are shown under Net realized loss on futures contracts in the Statement of Operations.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

 

MIST-15

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 648,569,521       $ 0       $ 212,585,188   

The Portfolio engaged in security transactions with other accounts managed by Massachusetts Financial Services Co. that amounted to $1,773,726 in purchases and $2,179,089 in sales of investments which are included above.

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $23,022,132 in purchases of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Massachusetts Financial Services Company (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser

for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$6,039,749      1.050 %    First $250 million
     1.000 %    $250 million to $500 million
     0.850 %    $500 million to $1 billion
     0.750 %    Over $1 billion

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets  
0.050%    $ 500 million to $1 billion   

An identical agreement was in place for the period January 1, 2013 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

 

MIST-16

Met Investors Series Trust

MFS® Emerging Markets Equity Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$9,849,587    $ 17,055,473       $ —       $ —       $ 9,849,587       $ 17,055,473   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$19,394,369    $ —       $ 103,943,500       $ (78,504,868 )    $ 44,833,001   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2017 were $78,504,868.

 

MIST-17

Met Investors Series Trust

MFS® Research International Portfolio

Managed by Massachusetts Financial Services Company

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the MFS® Research International Portfolio returned 3.55%, 3.42%, and 3.49%, respectively. The Portfolio’s benchmarks, the MSCI EAFE Index1 and the MSCI All Country (AC) World (ex-U.S.) Index2, returned 4.10% and -0.04%, respectively.

MARKET ENVIRONMENT / CONDITIONS

Just prior to the reporting period, a last minute political agreement concerning the U.S. fiscal cliff averted the worst-case scenario and markets gravitated towards risk assets. However, the implementation of the U.S. budget sequester, combined with the uncertainty surrounding the Italian election results, inserted a continued degree of caution as we entered the period. During the first few months of 2013, market sentiment improved markedly, as global macroeconomic indicators improved and fears of fiscal austerity in the U.S. waned. Late in the period, however, global growth dynamics looked to be weakening again, though markets were generally unfazed, continuing their risk-on path, especially in light of continued easing by global central banks and the Bank of Japan in particular. At the end of the period, the growing risk of tapering of quantitative easing by the U.S. Federal Reserve (“Fed”) caused sovereign bond yields to spike, credit spreads to widen and equity valuation to fall. On a relative basis, Europe is showing signs of improvement, with eurozone manufacturing purchasing managers’ index looking like it’s bottoming out, peripheral debt spreads normalizing and the European Central Bank signaling the chance of further easing.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Stock selection in the Financials sector detracted from relative performance, led by the Portfolio’s holdings of financial services firms, Erste Group Bank (Austria) and Standard Chartered (United Kingdom), as both stocks declined during the period. Stock selection in the Consumer Discretionary sector also weighed on relative results. Holding Investment company Li & Fung (Hong Kong), and not holding strong-performing Japanese car maker Toyota, were among the Portfolio’s top relative detractors for the reporting period. Elsewhere, the Portfolio’s ownership of Austrialian mining operators, Rio Tinto (U.K.) and Newcrest Mining, mining equipment manufacturer Joy Global (United States), paint and specialty chemicals manufacturer Akzo Nobel (Netherlands), as well as oil and gas exploration company INPEX (Japan), hampered relative returns. Not owning shares of strong-performing Japanese Information Technology investment firm SoftBank was an additional negative factor.

Stock selection in the Information Technology sector contributed to the Portfolio’s performance relative to the MSCI EAFE Index. Holding Information Technology solutions and consulting services company Nomura Research Institute Ltd. (Japan) and online information portal Yahoo! Japan aided relative results as both stocks performed well during the period. The combination of an underweight position and stock selection in the Materials sector benefited relative returns. Avoiding mining giant BHP Billiton (Australia) helped relative performance as the stock declined during the period. Security selection in the Health Care and Telecommunication Services sectors also had a positive impact on relative returns. In the Health Care sector, the Portfolio’s holdings of Swiss pharmaceutical and diagnostic company Roche Holdings boosted relative returns as the stock outperformed the benchmark. Within the Telecommunication Services sector, Telecommunications company KDDI (Japan) also supported relative results as the stock delivered solid performance. Individual securities in other sectors that benefited relative results included automotive parts manufacturer Denso (Japan), parcel delivery services company Yamato Holdings (Japan), banking and financial services firm Sumitomo Mitsui Financial Group (Japan), tobacco company Japan Tobacco and consumer finance firm AEON Credit Service Company (Hong Kong) as all five stocks posted strong performance.

In Capital goods, the Portfolio has been adding some cyclicality at the margin which is consistent with what was done earlier in the year. That said, the Portfolio’s defensive bias in an environment that remains uncertain and where investors are becoming more concerned with China has been a positive. Weakness in autos and mining resulted in adding to some positions due to the more cyclical nature of the sector. Metals and Mining are currently an underweight, however, within the context of pure mining companies, the Portfolio is essentially neutral relative to the benchmark. The correction in commodity prices had been halved from peak levels and has degraded on a normalized basis.

Despite the volatility and underperformance in the Information Technology sector, it has proven difficult to find strong fundamental ideas outside of positions already held. The aim has been to own the structurally superior names that have typically provided better returns, growth and corporate governance. That said, during the seocond quarter, the Portfolio trimmed some of these names as they became expensive and reallocated towards restructuring stories that are defensible and cheap. The Portfolio also shifted more towards business services as it pays to own these names during times of uncertainty.

The Portfolio still remains fairly constructive on European banks and has maintained the slight overweight started earlier this year. The Portfolio continues to be overweight emerging market Financials albeit less so than in previous periods. Volatility in these markets combined with the sale of positions in Mexico and Thailand contributed to the lower exposure. Taking a longer term view, the balance sheets of emerging market banks are better, the fundamentals are better and valuations are once again reasonable. The Portfolio is overweight Japanese banks given their strong capital positions, liquid balance sheets with no funding risk, no credit cycle risk, decent top-line growth and attractive valuations. The underweight to Australian banks remains, which has hurt performance over the near term.

After having had a good run which started during the second half of last year, the Consumer Staples sector gave back some of that performance during the second quarter. Overall, first quarter results came in a bit lighter than had been expected mainly due to top line weakness. The slowdown in emerging markets was the primary driver

 

MIST-1

Met Investors Series Trust

MFS® Research International Portfolio

Managed by Massachusetts Financial Services Company

Portfolio Manager Commentary*—(Continued)

 

of that weakness, however, rising treasury yields and more recently earnings downgrades due to currency translation losses have also pressured the sector.

During the first quarter, valuation convergence for European pharmaceuticals made it difficult to differentiate between some of the larger cap names, resulting in additions to various holdings. Leaving aside the macroeconomic environment, absolute valuations are not as attractive as they were 2-3 years ago and there are risks that investors may turn cautious towards the sector if pipelines fail to underpin current valuation premiums. The larger pharmaceutical companies need to continue to grow and generics and price regulations, in the context of their sheer size, will make that difficult. They are therefore leveraged to future research and development success: if it materializes organic growth comes through, which in turn eases the pressure to do growth-enhancing but typically value-destructive mergers and acquisitions. The Portfolio remains focused on longer duration cash flows and good capital allocation discipline. The holdings in Europe and Japan have done well and the Portfolio has trimmed some of these names into strength.

The Energy sector has remained challenged, with fears over emerging market demand, and a strengthening U.S. dollar contributing to an increasingly tough market for the commodity. The fact that Brent oil prices have held above $100/barrell is indeed something of a surprise, given the weakness of other commodities, and given poor indicators of demand from refining margins. This either points to a geopolitical risk premium (Middle East conflict), struggling non-Organization of the Petroleum Exporting Countries supply (maintenance and outages in the North Sea, Gulf of Mexico), or the persistent net long exposure of the financial investor in paper markets, which remains very high by historic standards. With this in mind, we remained cautious about taking on macroeconomic beta, and have tried to keep positions concentrated in companies with resilience to downside macro risks through either a strong balance sheet or a flexible business model. All of the stocks in the Energy sleeve have business models which can endure a period of lower oil prices.

Jose Luis Garcia

Thomas Melendez

Portfolio Managers

Massachusetts Financial Services Company

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

MFS® Research International Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE MSCI EAFE INDEX & THE MSCI AC WORLD (EX-U.S.) INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year  
MFS® Research International Portfolio                      

Class A

        3.55           17.27           0.31           8.66   

Class B

        3.42           17.01           0.07           8.40   

Class E

        3.49           17.27           0.18           8.51   
MSCI EAFE Index        4.10           18.62           -0.63           7.67   
MSCI AC World (ex-U.S.) Index        -0.04           13.63           -0.80           8.62   

1 The MSCI Europe, Australasia and Far East Index (“MSCI EAFE Index”) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada.

2 The MSCI AC World (ex-U.S.) Index is an unmanaged free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets, excluding the U.S. The index returns shown above were calculated with net dividends: they reflect the reinvestment of dividends after the deduction of the maximum possible withholding taxes.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Royal Dutch Shell plc - A Shares      2.6   
Nestle S.A.      2.6   
HSBC Holdings plc      2.5   
Novartis AG      2.3   
Roche Holding AG      2.2   
GlaxoSmithKline plc      2.1   
Sumitomo Mitsui Financial Group, Inc.      2.0   
Honda Motor Co., Ltd.      1.9   
Danone S.A.      1.9   
Rio Tinto plc      1.9   

Top Countries

 

     % of
Market Value of
Total Investments		  
Japan      24.0   
United Kingdom      18.9   
Switzerland      10.7   
France      10.0   
Germany      6.0   
Hong Kong      5.3   
Netherlands      3.7   
Australia      3.2   
Sweden      3.2   
United States      2.9   

 

MIST-3

Met Investors Series Trust

MFS® Research International Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

MFS® Research International Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.70 %     $ 1,000.00         $ 1,035.50         $ 3.53   
   Hypothetical*      0.70 %     $ 1,000.00         $ 1,021.32         $ 3.51   

Class B(a)

    Actual      0.95 %     $ 1,000.00         $ 1,034.20         $ 4.79   
   Hypothetical*      0.95 %     $ 1,000.00         $ 1,020.08         $ 4.76   

Class E(a)

    Actual      0.85 %     $ 1,000.00         $ 1,034.90         $ 4.29   
   Hypothetical*      0.85 %     $ 1,000.00         $ 1,020.58         $ 4.26   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

MFS® Research International Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—98.5% of Net Assets

 

Security Description   Shares     Value  

Argentina—0.8%

    

Arcos Dorados Holdings, Inc. - Class A (a)

     1,616,779      $ 18,883,979   
   

 

 

  

Australia—3.2%

    

Iluka Resources, Ltd. (a)

     2,331,596        21,050,727   

Newcrest Mining, Ltd.

     371,197        3,333,897   

Oil Search, Ltd.

     1,056,669        7,419,772   

Westpac Banking Corp.

     1,613,026        42,228,017   
   

 

 

  
      74,032,413   
   

 

 

  

Austria—0.8%

    

Erste Group Bank AG

     709,537        18,891,751   
   

 

 

  

Belgium—0.9%

    

KBC Groep NV (a)

     552,131        20,421,818   
   

 

 

  

Brazil—2.1%

    

Diagnosticos da America S.A.

     1,210,300        6,275,650   

EDP - Energias do Brasil S.A.

     2,827,300        14,356,022   

Itau Unibanco Holding S.A. (ADR)

     463,810        5,992,425   

M Dias Branco S.A.

     319,800        11,967,329   

Tim Participacoes S.A. (ADR)

     545,436        10,145,109   
   

 

 

  
      48,736,535   
   

 

 

  

Canada—0.5%

    

Cenovus Energy, Inc.

     378,448        10,795,322   
   

 

 

  

China—0.2%

    

Wumart Stores, Inc. - Class H

     2,775,000        5,057,276   
   

 

 

  

Denmark—0.5%

    

TDC A/S

     1,395,783        11,291,973   
   

 

 

  

France—9.9%

    

BNP Paribas S.A.

     655,360        35,806,731   

Danone S.A.

     584,723        43,854,646   

Dassault Systemes S.A.

     79,821        9,764,424   

GDF Suez

     819,540        15,979,640   

Legrand S.A.

     165,469        7,646,914   

LVMH Moet Hennessy Louis Vuitton S.A.

     134,176        21,607,214   

Pernod-Ricard S.A.

     230,984        25,601,844   

Publicis Groupe S.A.

     338,357        23,993,044   

Schneider Electric S.A.

     480,152        34,616,739   

Suez Environnement Co. (a)

     739,707        9,523,875   
   

 

 

  
      228,395,071   
   

 

 

  

Germany—6.0%

    

Bayer AG

     300,915        32,079,557   

GSW Immobilien AG (a)

     204,198        7,872,069   

Infineon Technologies AG

     1,455,614        12,178,516   

Linde AG

     212,434        39,556,118   

Siemens AG

     355,916        35,962,698   

Symrise AG

     260,933        10,535,386   
   

 

 

  
      138,184,344   
   

 

 

  

Hong Kong—5.3%

    

AIA Group, Ltd.

     9,008,800      $ 37,860,078   

China Resources Gas Group, Ltd. (a)

     2,710,000        6,883,199   

China Unicom Hong Kong, Ltd.

     9,968,850        13,149,001   

Hutchison Whampoa, Ltd.

     1,810,000        18,916,238   

Li & Fung, Ltd. (a)

     17,483,540        23,796,901   

Sands China, Ltd.

     4,563,207        21,430,354   

Sinotruk Hong Kong, Ltd.

     150,000        73,002   
   

 

 

  
      122,108,773   
   

 

 

  

India—1.4%

    

HDFC Bank, Ltd. (ADR)

     357,713        12,963,519   

ICICI Bank, Ltd.

     383,880        6,888,979   

Reliance Industries, Ltd.

     887,399        12,846,931   
   

 

 

  
      32,699,429   
   

 

 

  

Indonesia—0.2%

    

PT Bank Rakyat Indonesia Persero Tbk

     5,524,500        4,280,155   
   

 

 

  

Ireland—0.7%

    

Experian plc

     873,101        15,143,533   
   

 

 

  

Israel—0.1%

    

Bezeq The Israeli Telecommunication Corp., Ltd.

     2,597,059        3,454,677   
   

 

 

  

Italy—0.8%

    

Telecom Italia S.p.A. - Risparmio Shares

     12,624,582        6,976,060   

UniCredit S.p.A.

     2,322,443        10,860,146   
   

 

 

  
      17,836,206   
   

 

 

  

Japan—23.8%

    

Aeon Credit Service Co., Ltd. (a)

     431,800        12,264,044   

Canon, Inc. (a)

     595,600        19,561,706   

Chugoku Marine Paints, Ltd.

     760,441        3,768,912   

Denso Corp.

     869,600        40,784,890   

GLORY, Ltd.

     702,800        16,483,634   

Honda Motor Co., Ltd.

     1,191,100        44,261,829   

Inpex Corp.

     3,184        13,310,946   

Japan Tobacco, Inc.

     1,193,000        42,164,750   

JGC Corp.

     925,000        33,299,252   

KDDI Corp.

     833,124        43,348,525   

Kobayashi Pharmaceutical Co., Ltd. (a)

     111,600        5,895,535   

Lawson, Inc. (a)

     168,500        12,861,553   

Miraca Holdings, Inc.

     159,600        7,353,091   

Mitsubishi Corp.

     750,197        12,852,589   

Mitsubishi Estate Co., Ltd.

     1,101,000        29,322,800   

Mitsubishi UFJ Financial Group, Inc.

     4,221,800        26,198,249   

Nippon Television Network Corp.

     864,270        15,808,854   

Nomura Research Institute, Ltd.

     545,600        17,806,270   

Santen Pharmaceutical Co., Ltd.

     584,100        25,195,158   

Sony Financial Holdings, Inc.

     578,800        9,145,707   

Sumitomo Mitsui Financial Group, Inc.

     1,012,600        46,461,750   

Tokyo Gas Co., Ltd.

     3,826,000        21,175,194   

Yahoo Japan Corp.

     35,784        17,682,464   

Yamato Holdings Co., Ltd.

     1,543,600        32,546,592   
   

 

 

  
      549,554,294   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

MFS® Research International Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description

   Shares     Value  

Netherlands—3.7%

    

Akzo Nobel NV

     569,302      $ 31,978,413   

Delta Lloyd NV

     462,660        9,217,199   

Heineken NV

     252,966        16,081,667   

ING Groep NV (b)

     2,990,787        27,328,903   
   

 

 

  
      84,606,182   
   

 

 

  

Russia—0.6%

    

Sberbank of Russia (ADR) (a)

     1,155,098        13,170,131   
   

 

 

  

Singapore—0.7%

    

DBS Group Holdings, Ltd.

     1,377,000        16,762,384   
   

 

 

  

Spain—0.6%

    

Amadeus IT Holding S.A. - A Shares

     116,198        3,711,867   

Banco Santander S.A.

     1,793,690        11,355,677   
   

 

 

  
      15,067,544   
   

 

 

  

Sweden—3.1%

    

Atlas Copco AB - A Shares (a)

     1,108,353        26,618,430   

Hennes & Mauritz AB - B Shares (a)

     442,104        14,476,325   

Tele2 AB - B Shares

     785,456        9,190,113   

Telefonaktiebolaget LM Ericsson - Class B

     1,941,939        22,016,410   
   

 

 

  
      72,301,278   
   

 

 

  

Switzerland—10.7%

    

Kuehne & Nagel International AG (a)

     147,400        16,160,848   

Nestle S.A.

     911,038        59,587,737   

Novartis AG

     755,557        53,545,876   

Roche Holding AG

     209,512        51,913,799   

Schindler Holding AG

     189,772        26,395,388   

Sonova Holding AG (b)

     120,263        12,750,895   

UBS AG (b)

     1,520,730        25,834,639   
   

 

 

  
      246,189,182   
   

 

 

  

Taiwan—0.6%

    

Taiwan Semiconductor Manufacturing Co., Ltd.

     4,001,753        14,482,335   
   

 

 

  

Thailand—0.5%

    

Kasikornbank PCL (NVDR)

     1,777,600        10,827,395   
   

 

 

  

United Kingdom—18.8%

    

Barclays plc

     8,011,760        34,344,393   

BG Group plc

     1,419,787        24,231,489   

BP plc

     5,995,436        41,591,383   

BT Group plc

     2,838,217        13,281,828   

Cairn Energy plc (b)

     1,224,860        4,697,472   

Compass Group plc

     923,241        11,831,882   

GlaxoSmithKline plc

     1,913,099        47,859,657   

Hiscox, Ltd.

     1,176,402        10,218,818   

HSBC Holdings plc

     5,474,382        56,731,473   

Reckitt Benckiser Group plc

     318,091        22,549,443   

Rio Tinto plc

     1,063,438        43,586,650   

United Kingdom—(Continued)

    

Royal Dutch Shell plc - A Shares

     1,885,517      $ 60,169,100   

Standard Chartered plc

     1,151,017        24,850,237   

Vodafone Group plc

     5,498,560        15,779,311   

Whitbread plc

     455,804        21,255,571   
   

 

 

  
      432,978,707   
   

 

 

  

United States—2.0%

    

Autoliv, Inc. (a)

     251,741        19,482,236   

Cognizant Technology Solutions Corp. - Class A (b)

     155,357        9,726,902   

Joy Global, Inc. (a)

     353,375        17,149,288   
   

 

 

  
      46,358,426   
   

 

 

  

Total Common Stocks
(Cost $2,067,577,694)

       2,272,511,113   
   

 

 

  
Short-Term Investments—8.7%   

Mutual Fund—7.8%

    

State Street Navigator Securities Lending MET Portfolio (c)

     180,334,525        180,334,525   
   

 

 

  

Repurchase Agreement—0.9%

    

Fixed Income Clearing Corp.
Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $19,984,017 on 07/01/13, collateralized by $20,775,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $20,385,469.

     19,984,000        19,984,000   
   

 

 

  

Total Short-Term Investments
(Cost $200,318,525)

       200,318,525   
   

 

 

  

Total Investments—107.2%
(Cost $2,267,896,219) (d)

       2,472,829,638   

Other assets and liabilities (net)—(7.2)%

       (165,243,756 ) 
   

 

 

  
Net Assets—100.0%     $ 2,307,585,882   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $172,407,904 and the collateral received consisted of cash in the amount of $180,334,525 and non-cash collateral with a value of $441,600. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Represents investment of cash collateral received from securities lending transactions.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

MFS® Research International Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

(d) As of June 30, 2013, the aggregate cost of investments was $2,267,896,219. The aggregate unrealized appreciation and depreciation of investments were $342,621,509 and $(137,688,090), respectively, resulting in net unrealized appreciation of $204,933,419.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.
(NVDR)— Non-Voting Depository Receipts

 

Ten Largest Industries as of
June 30, 2013 (Unaudited)

   

% of
Net Assets

  

Commercial Banks

      17.3   

Pharmaceuticals

      9.1   

Oil, Gas & Consumable Fuels

      7.6   

Food Products

      5.0   

Machinery

      3.8   

Chemicals

      3.7   

Wireless Telecommunication Services

      3.4   

Hotels, Restaurants & Leisure

      3.2   

Metals & Mining

      2.9   

Insurance

      2.9   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

MFS® Research International Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Argentina

    $ 18,883,979       $ —        $ —         $ 18,883,979   

Australia

      —           74,032,413        —           74,032,413   

Austria

      —           18,891,751        —           18,891,751   

Belgium

      —           20,421,818        —           20,421,818   

Brazil

      48,736,535         —          —           48,736,535   

Canada

      10,795,322         —          —           10,795,322   

China

      —           5,057,276        —           5,057,276   

Denmark

      —           11,291,973        —           11,291,973   

France

      —           228,395,071        —           228,395,071   

Germany

      —           138,184,344        —           138,184,344   

Hong Kong

      —           122,108,773        —           122,108,773   

India

      12,963,519         19,735,910        —           32,699,429   

Indonesia

      —           4,280,155        —           4,280,155   

Ireland

      —           15,143,533        —           15,143,533   

Israel

      —           3,454,677        —           3,454,677   

Italy

      —           17,836,206        —           17,836,206   

Japan

      —           549,554,294        —           549,554,294   

Netherlands

      —           84,606,182        —           84,606,182   

Russia

      —           13,170,131        —           13,170,131   

Singapore

      —           16,762,384        —           16,762,384   

Spain

      —           15,067,544        —           15,067,544   

Sweden

      —           72,301,278        —           72,301,278   

Switzerland

      —           246,189,182        —           246,189,182   

Taiwan

      —           14,482,335        —           14,482,335   

Thailand

      —           10,827,395        —           10,827,395   

United Kingdom

      —           432,978,707        —           432,978,707   

United States

      46,358,426         —          —           46,358,426   

Total Common Stocks

      137,737,781         2,134,773,332        —           2,272,511,113   
Short-Term Investments           

Mutual Fund

      180,334,525         —          —           180,334,525   

Repurchase Agreement

      —           19,984,000        —           19,984,000   

Total Short-Term Investments

      180,334,525         19,984,000        —           200,318,525   

Total Investments

    $ 318,072,306       $ 2,154,757,332      $ —         $ 2,472,829,638   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (180,334,525 )    $ —         $ (180,334,525 ) 

Transfers from Level 2 to Level 1 in the amount of $42,607,131 were due to the discontinuation of a systematic fair valuation model factor.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

MFS® Research International Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 2,472,829,638   

Cash

      619   

Cash denominated in foreign currencies (c)

      4,933,748   

Receivable for:

   

Investments sold

      3,452,588   

Fund shares sold

      677,104   

Dividends and interest

      8,614,143   
  

 

 

  

Total Assets

      2,490,507,840   

Liabilities

   

Payables for:

   

Fund shares redeemed

      633,060   

Collateral for securities loaned

      180,334,525   

Accrued Expenses:

   

Management fees

      1,221,146   

Distribution and service fees

      159,127   

Deferred trustees’ fees

      41,001   

Other expenses

      533,099   
  

 

 

  

Total Liabilities

      182,921,958   
  

 

 

  

Net Assets

    $ 2,307,585,882   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 2,487,517,708   

Undistributed net investment income

      36,372,100   

Accumulated net realized loss

      (420,859,332 ) 

Unrealized appreciation on investments and foreign currency transactions

      204,555,406   
  

 

 

  

Net Assets

    $ 2,307,585,882   
  

 

 

  

Net Assets

   

Class A

    $ 1,540,498,663   

Class B

      756,120,846   

Class E

      10,966,373   

Capital Shares Outstanding*

   

Class A

      148,087,033   

Class B

      73,262,454   

Class E

      1,057,870   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.40   

Class B

      10.32   

Class E

      10.37   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $2,267,896,219.
(b) Includes securities loaned at value of $172,407,904.
(c) Identified cost of cash denominated in foreign currencies was $4,971,607.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 47,747,747   

Interest

      373   

Securities lending income

      1,809,867   
  

 

 

  

Total investment income

      49,557,987   

Expenses

   

Management fees

      8,649,349   

Administration fees

      31,908   

Custodian and accounting fees

      669,469   

Distribution and service fees—Class B

      975,440   

Distribution and service fees—Class E

      8,615   

Audit and tax services

      25,012   

Legal

      9,657   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      76,795   

Insurance

      8,257   

Miscellaneous

      8,052   
  

 

 

  

Total expenses

      10,476,020   

Less management fee waiver

      (695,548 ) 
  

 

 

  

Net expenses

      9,780,472   
  

 

 

  

Net Investment Income

      39,777,515   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments (b)

      147,026,512   

Futures contracts

      (4,052,859 ) 

Foreign currency transactions

      (837,256 ) 
  

 

 

  

Net realized gain

      142,136,397   
  

 

 

  
Net change in unrealized depreciation on:   

Investments (c)

      (82,246,067 ) 

Foreign currency transactions

      (366,017 ) 
  

 

 

  

Net change in unrealized depreciation

      (82,612,084 ) 
  

 

 

  

Net realized and unrealized gain

      59,524,313   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 99,301,828   
  

 

 

  

 

(a) Net of foreign withholding taxes of $4,669,118.
(b) Net of foreign capital gains tax of $387,433.
(c) Includes foreign capital gains tax of $619,907.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

MFS® Research International Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 39,777,515      $ 64,370,001   

Net realized gain (loss)

      142,136,397        (9,030,206 ) 

Net change in unrealized appreciation (depreciation)

      (82,612,084 )      355,138,650   
  

 

 

    

 

 

  

Increase in net assets from operations

      99,301,828        410,478,445   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (44,608,151 )      (42,745,331 ) 

Class B

      (20,387,657 )      (14,235,363 ) 

Class E

      (305,107 )      (241,003 ) 
  

 

 

    

 

 

  

Total distributions

      (65,300,915 )      (57,221,697 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (312,983,544 )      (304,049,306 ) 
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (278,982,631 )      49,207,442   

Net Assets

     

Beginning of period

      2,586,568,513        2,537,361,071   
  

 

 

    

 

 

  

End of period

    $ 2,307,585,882      $ 2,586,568,513   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 36,372,100      $ 61,895,500   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      9,245,724      $ 99,946,432        20,332,156      $ 193,072,967   

Reinvestments

      4,301,654        44,608,151        4,485,344        42,745,331   

Redemptions

      (39,575,307 )      (431,573,484 )      (50,578,495 )      (488,223,696 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (26,027,929 )    $ (287,018,901 )      (25,760,995 )    $ (252,405,398 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      2,601,689      $ 27,538,089        5,866,692      $ 54,803,540   

Reinvestments

      1,981,308        20,387,657        1,504,795        14,235,363   

Redemptions

      (6,879,758 )      (73,140,822 )      (12,348,402 )      (118,308,155 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (2,296,761 )    $ (25,215,076 )      (4,976,915 )    $ (49,269,252 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      14,605      $ 155,104        30,304      $ 282,170   

Reinvestments

      29,507        305,107        25,369        241,003   

Redemptions

      (113,558 )      (1,209,778 )      (301,787 )      (2,897,829 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (69,446 )    $ (749,567 )      (246,114 )    $ (2,374,656 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (312,983,544 )      $ (304,049,306 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

MFS® Research International Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 10.34      $ 9.03       $ 10.28       $ 9.38       $ 7.41       $ 14.43   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.17        0.25         0.22         0.18         0.17         0.30   

Net realized and unrealized gain (loss) on investments

      0.20        1.27         (1.26 )       0.90         2.07         (5.76 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.37        1.52         (1.04 )       1.08         2.24         (5.46 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.31 )      (0.21 )       (0.21 )       (0.18 )       (0.27 )       (0.26 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.30 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.31 )      (0.21 )       (0.21 )       (0.18 )       (0.27 )       (1.56 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.40      $ 10.34       $ 9.03       $ 10.28       $ 9.38       $ 7.41   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      3.55  (c)      16.97         (10.44 )       11.65         31.93         (42.25 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.75  (d)      0.75         0.77         0.78         0.81         0.77   

Net ratio of expenses to average net assets (%) (e)

      0.70  (d)      0.70         0.73         0.75         0.80         0.77   

Ratio of net investment income to average net assets (%)

      3.20  (d)      2.59         2.24         1.91         2.20         2.85   

Portfolio turnover rate (%)

      19  (c)      36         39         50         72         75   

Net assets, end of period (in millions)

    $ 1,540.5      $ 1,800.5       $ 1,804.3       $ 1,707.5       $ 1,049.1       $ 840.8   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 10.25      $ 8.95       $ 10.20       $ 9.31       $ 7.35       $ 14.32   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.16        0.22         0.20         0.15         0.15         0.27   

Net realized and unrealized gain (loss) on investments

      0.19        1.26         (1.26 )       0.90         2.06         (5.71 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.35        1.48         (1.06 )       1.05         2.21         (5.44 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.28 )      (0.18 )       (0.19 )       (0.16 )       (0.25 )       (0.23 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.30 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.28 )      (0.18 )       (0.19 )       (0.16 )       (0.25 )       (1.53 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.32      $ 10.25       $ 8.95       $ 10.20       $ 9.31       $ 7.35   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      3.42  (c)      16.71         (10.71 )       11.40         31.57         (42.36 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      1.00  (d)      1.00         1.02         1.03         1.06         1.01   

Net ratio of expenses to average net assets (%) (e)

      0.95  (d)      0.95         0.98         1.00         1.05         1.01   

Ratio of net investment income to average net assets (%)

      3.01  (d)      2.29         2.02         1.65         1.93         2.54   

Portfolio turnover rate (%)

      19  (c)      36         39         50         72         75   

Net assets, end of period (in millions)

    $ 756.1      $ 774.5       $ 720.7       $ 775.8       $ 712.9       $ 525.7   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

MFS® Research International Portfolio

Financial Highlights

 

Selected per share data                                         
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 10.30      $ 8.99       $ 10.24       $ 9.34       $ 7.37       $ 14.36   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.16        0.23         0.21         0.16         0.16         0.29   

Net realized and unrealized gain (loss) on investments

      0.20        1.27         (1.27 )       0.90         2.06         (5.74 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.36        1.50         (1.06 )       1.06         2.22         (5.45 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.29 )      (0.19 )       (0.19 )       (0.16 )       (0.25 )       (0.24 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (1.30 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.29 )      (0.19 )       (0.19 )       (0.16 )       (0.25 )       (1.54 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.37      $ 10.30       $ 8.99       $ 10.24       $ 9.34       $ 7.37   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      3.49  (c)      16.83         (10.62 )       11.54         31.74         (42.33 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.90  (d)      0.90         0.92         0.93         0.96         0.91   

Net ratio of expenses to average net assets (%) (e)

      0.85  (d)      0.85         0.88         0.90         0.95         0.91   

Ratio of net investment income to average net assets (%)

      3.09  (d)      2.42         2.14         1.79         2.07         2.66   

Portfolio turnover rate (%)

      19  (c)      36         39         50         72         75   

Net assets, end of period (in millions)

    $ 11.0      $ 11.6       $ 12.3       $ 17.4       $ 19.4       $ 19.2   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

MFS® Research International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is MFS® Research International Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-13

Met Investors Series Trust

MFS® Research International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-14

Met Investors Series Trust

MFS® Research International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to broker commission recapture, foreign currency transactions, foreign capital gain tax and passive foreign investment companies (PFICs). These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $19,984,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

 

MIST-15

Met Investors Series Trust

MFS® Research International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

During the six months ended June 30, 2013, the Portfolio entered into equity index futures contracts which were subject to equity price risk. During the period April 12 through April 16, 2013, the Portfolio had bought and sold $247,855,377 in equity index futures contracts. At June 30, 2013, the Portfolio did not have any open futures contracts. For the six months ended June 30, 2013, the Portfolio had realized losses in the amount of $4,052,859 which are shown under Net realized gain on futures contracts in the Statement of Operations.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

 

MIST-16

Met Investors Series Trust

MFS® Research International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 474,514,013       $ 0       $ 852,223,258   

The Portfolio engaged in security transactions with other accounts managed by Massachusetts Financial Services Co. that amounted to $73,500 in purchases and $2,291,369 in sales of investments, which are included above.

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $64,141,622 in sales of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Massachusetts Financial Services Company (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser

for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$8,649,349      0.800 %    First $200 million
     0.750 %    $200 million to $500 million
     0.700 %    $500 million to $1 billion
     0.650 %    Over $1 billion

 

MIST-17

Met Investors Series Trust

MFS® Research International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.100%    First $200 million
0.050%    $200 million to $500 million
0.100%    Over $1.5 billion

An identical agreement was in place for the period April 30, 2012 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$57,221,697    $ 49,809,753       $ —       $ —       $ 57,221,697       $ 49,809,753   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$65,219,830    $ —       $ 234,434,844       $ (513,551,789 )    $ (213,897,115 ) 

 

MIST-18

Met Investors Series Trust

MFS® Research International Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2016

    Expiring
12/31/2017		      Expiring
12/31/2018		      Total  
$306,850,739    $ 169,884,123       $ 22,179,811       $ 498,914,673   

As of December 31, 2012, the post-enactment accumulated capital losses were $14,637,116.

 

MIST-19

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Managed by Morgan Stanley Investment Management Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the Morgan Stanley Mid Cap Growth Portfolio returned 15.30%, 15.13%, and 15.10%, respectively. The Portfolio’s benchmark, the Russell MidCap Growth Index1, returned 14.70%.

MARKET ENVIRONMENT / CONDITIONS

Modest growth in the U.S. economy and a backdrop of accommodative monetary policy drove the stock market to positive returns for the six-month period ended June 30, 2013. Concerns about the effects of automatic federal spending cuts (known as sequestration) and higher payroll taxes, flare ups in the European debt crisis and slackening growth in China contributed to volatility throughout the period. Nevertheless, stock prices trended higher as many investors continued to believe the Federal Reserve (“Fed”) and other central banks around the world would continue providing ample liquidity through interest rate cuts and asset purchase programs. Although the Dow Jones Industrial Average and S&P 500 Index, two of the most commonly cited measures of the U.S. stock market, reached new highs in May, the market pulled back in June after the Fed announced its intention to scale back stimulus in the second half of the year.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Information Technology sector contributed the most to relative performance during the period, as stock selection was favorable. LinkedIn Corp., the professional networking web site, was the Portfolio’s top contributing holding in the sector. Stock selection and an underweight in the Materials sector also added value, led by a position in Rockwood Holdings, a specialty chemicals maker. Stock selection in the Consumer Discretionary sector modestly boosted performance, although the relative gain was somewhat offset by the negative impact of an underweight in the sector. Tesla Motors, an electric car manufacturer, was the most beneficial holding in this sector.

However, stock selection in the Industrials sector was disadvantageous to relative results. The main detractors included a position in Intertek (United Kingdom), a product testing and certifications provider, and less exposure to capital goods companies, which performed well during the period. Stock selection in the Health Care sector dampened relative performance, with underperformance driven by a holding in Health Care insurance company Qualicorp (Brazil). The Energy sector was another area of weakness. Both stock selection and an underweight in the sector hurt performance, as the Portfolio had less exposure to strong-performing Energy stocks.

At the security level, one of the few changes made to the Portfolio was the addition of Panera Bread in April. Panera owns, operates, and franchises retail bakery-cafes in the U.S. and Canada. We believe the company is uniquely positioned due to its focus on serving fresh, high-quality food centered on its artisan bread platform, which is delivered fresh from multiple national fresh dough facilities. We think the company has scale, reputation, and quality competitive advantages that can be leveraged to introduce new menu items such as pasta, as well as the ability to layer on additional daytime menu options, which could, over time, improve the company’s already strong unit-level economics and overall returns on invested capital. Panera was added to the Portfolio based on our assessment of the quality of the company as characterized by the nature and sustainability of its competitive advantages, as well as its end game potential and attractive free cash flow yield.

As of June 30, 2013, Information Technology, Industrials and Financials were the Portfolio’s largest sector weights. The smallest sectors were Telecommunication Services (zero exposure), Utilities and Energy. All sector weights are a result of our bottom-up stock selection process, rather than top-down sector allocation.

Dennis P. Lynch

David S. Cohen

Sam G. Chainani

Alexander T. Norton

Jason C. Yeung

Armistead Nash

Portfolio Managers

Morgan Stanley Investment Management Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-1

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP GROWTH INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year        Since Inception2  
Morgan Stanley Mid Cap Growth Portfolio                           

Class A

        15.30           17.90           7.76           9.20           —   

Class B

        15.13           17.60           7.50           8.91           —   

Class E

        15.10           17.64           —           —           11.48   
Russell MidCap Growth Index        14.70           22.88           7.61           9.94           —   

1 The Russell MidCap Growth Index is an unmanaged measure of performance of those Russell Midcap companies (the 800 smallest companies in the Russell 1000 Index) with higher price-to-book ratios and higher forecasted growth values.

2 Inception of the Class A shares is 5/1/2001. Inception of the Class B shares is 2/12/2001. Inception of the Class E shares is 4/27/2010.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Illumina, Inc.      4.1   
Solera Holdings, Inc.      3.4   
Motorola Solutions, Inc.      3.3   
Edenred      3.3   
Akamai Technologies, Inc.      2.8   
Gartner, Inc.      2.8   
Dollar Tree, Inc.      2.6   
Carter’s, Inc.      2.6   
Panera Bread Co.- Class A      2.6   
athenahealth, Inc.      2.5   

Top Sectors

 

         
% of
Market Value of
Total Long-Term Investments		  
Information Technology      29.8   
Consumer Discretionary      20.6   
Industrials      12.9   
Financials      10.6   
Health Care      10.2   
Consumer Staples      6.6   
Materials      4.9   
Energy      2.9   
Utilities      1.5   

 

MIST-2

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Morgan Stanley Mid Cap Growth Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.67 %     $ 1,000.00         $ 1,153.00         $ 3.58   
   Hypothetical*      0.67 %     $ 1,000.00         $ 1,021.47         $ 3.36   

Class B(a)

    Actual      0.92 %     $ 1,000.00         $ 1,151.30         $ 4.91   
   Hypothetical*      0.92 %     $ 1,000.00         $ 1,020.23         $ 4.61   

Class E(a)

    Actual      0.82 %     $ 1,000.00         $ 1,151.00         $ 4.37   
   Hypothetical*      0.82 %     $ 1,000.00         $ 1,020.73         $ 4.11   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-3

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—96.9% of Net Assets

 

Security Description   Shares     Value  

Automobiles—2.4%

  

Tesla Motors, Inc. (a) (b)

     266,987      $ 28,682,413   
   

 

 

  

Beverages—1.7%

  

Monster Beverage Corp. (a)

     331,027        20,116,511   
   

 

 

  

Biotechnology—0.6%

  

Ironwood Pharmaceuticals, Inc. (a) (b)

     697,768        6,942,792   
   

 

 

  

Chemicals—2.4%

  

Rockwood Holdings, Inc.

     445,940        28,553,538   
   

 

 

  

Commercial Services & Supplies—6.3%

  

Covanta Holding Corp.

     878,098        17,579,522   

Edenred

     1,269,326        38,827,111   

Stericycle, Inc. (a)

     164,265        18,139,784   
   

 

 

  
      74,546,417   
   

 

 

  

Communications Equipment—3.3%

  

Motorola Solutions, Inc.

     683,432        39,454,529   
   

 

 

  

Computers & Peripherals—0.6%

  

3D Systems Corp. (a) (b)

     172,830        7,587,237   
   

 

 

  

Construction Materials—2.3%

  

Martin Marietta Materials, Inc. (b)

     277,269        27,288,815   
   

 

 

  

Diversified Financial Services—5.5%

  

IntercontinentalExchange, Inc. (a)

     112,284        19,959,604   

McGraw Hill Financial, Inc.

     324,052        17,236,326   

MSCI, Inc. (a)

     839,222        27,920,916   
   

 

 

  
      65,116,846   
   

 

 

  

Electric Utilities—1.4%

  

Brookfield Infrastructure Partners L.P.

     465,535        17,001,338   
   

 

 

  

Food Products—4.7%

  

McCormick & Co., Inc. (b)

     375,860        26,445,510   

Mead Johnson Nutrition Co.

     369,420        29,269,146   
   

 

 

  
      55,714,656   
   

 

 

  

Health Care Equipment & Supplies—2.0%

  

Intuitive Surgical, Inc. (a)

     46,215        23,411,595   
   

 

 

  

Health Care Providers & Services—0.8%

  

Qualicorp S.A. (a)

     1,217,161        9,218,644   
   

 

 

  

Health Care Technology—2.5%

  

athenahealth, Inc. (a) (b)

     348,505        29,525,344   
   

 

 

  

Hotels, Restaurants & Leisure—5.2%

  

Dunkin’ Brands Group, Inc. (b)

     456,520        19,548,186   

Panera Bread Co. - Class A (a) (b)

     162,912        30,291,857   

Wyndham Worldwide Corp.

     194,424        11,126,886   
   

 

 

  
      60,966,929   
   

 

 

  

Insurance—4.8%

  

Arch Capital Group, Ltd. (a) (b)

     547,304      $ 28,136,899   

Progressive Corp. (The)

     1,135,369        28,861,080   
   

 

 

  
      56,997,979   
   

 

 

  

Internet & Catalog Retail—3.5%

  

Groupon, Inc. (a) (b)

     3,169,506        26,940,801   

TripAdvisor, Inc. (a) (b)

     227,266        13,833,681   
   

 

 

  
      40,774,482   
   

 

 

  

Internet Software & Services—11.9%

  

Akamai Technologies, Inc. (a) (b)

     776,207        33,027,608   

Dropbox, Inc. (a) (c) (d)

     460,161        3,925,173   

LinkedIn Corp. - Class A (a)

     151,606        27,031,350   

Mail.ru Group, Ltd. (GDR)

     206,996        5,929,266   

MercadoLibre, Inc. (b)

     98,154        10,577,075   

Qihoo 360 Technology Co., Ltd. (ADR) (a) (b)

     305,472        14,103,642   

SINA Corp. (a)

     98,693        5,500,161   

Yandex NV - Class A (a)

     1,003,087        27,715,294   

Youku Tudou, Inc. (ADR) (a) (b)

     686,589        13,175,643   
   

 

 

  
      140,985,212   
   

 

 

  

IT Services—2.8%

  

Gartner, Inc. (a) (b)

     576,072        32,830,343   
   

 

 

  

Life Sciences Tools & Services—4.1%

  

Illumina, Inc. (a) (b)

     641,012        47,973,338   
   

 

 

  

Machinery—1.0%

  

Colfax Corp. (a)

     231,867        12,082,589   
   

 

 

  

Media—2.7%

  

Aimia, Inc.

     837,219        12,530,025   

Morningstar, Inc. (b)

     242,472        18,810,977   
   

 

 

  
      31,341,002   
   

 

 

  

Multiline Retail—2.6%

  

Dollar Tree, Inc. (a)

     607,843        30,902,738   
   

 

 

  

Oil, Gas & Consumable Fuels—2.8%

  

Range Resources Corp.

     350,875        27,129,655   

Ultra Petroleum Corp. (a) (b)

     290,069        5,749,168   
   

 

 

  
      32,878,823   
   

 

 

  

Professional Services—5.2%

  

IHS, Inc. - Class A (a)

     273,868        28,586,342   

Intertek Group plc

     329,544        14,684,336   

Verisk Analytics, Inc. - Class A (a)

     303,345        18,109,697   
   

 

 

  
      61,380,375   
   

 

 

  

Semiconductors & Semiconductor Equipment —1.7%

  

First Solar, Inc. (a) (b)

     439,494        19,658,567   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description

   Shares     Value  

Software—8.4%

  

Salesforce.com, Inc. (a) (b)

     692,496      $ 26,439,497   

ServiceNow, Inc. (a)

     173,248        6,997,487   

Solera Holdings, Inc.

     711,895        39,616,957   

Splunk, Inc. (a)

     175,122        8,118,656   

Workday, Inc. - Class A (a)

     183,570        11,765,001   

Zynga, Inc. - Class A (a) (b)

     2,323,917        6,460,489   
   

 

 

  
      99,398,087   
   

 

 

  

Specialty Retail—1.1%

  

Sally Beauty Holdings, Inc. (a)

     196,487        6,110,746   

Ulta Salon Cosmetics & Fragrance, Inc. (a) (b)

     64,700        6,480,352   
   

 

 

  
      12,591,098   
   

 

 

  

Textiles, Apparel & Luxury Goods—2.6%

  

Carter’s, Inc.

     413,571        30,633,204   
   

 

 

  

Total Common Stocks
(Cost $954,903,696)

       1,144,555,441   
   

 

 

  
Preferred Stocks—0.2%   

Internet Software & Services—0.1%

  

Dropbox, Inc., Series A (a) (c) (d)

     51,888        442,605   

Peixe Urbano, Inc., Series C (a) (c) (d)

     71,709        139,832   
   

 

 

  
      582,437   
   

 

 

  

Software—0.1%

  

Palantir Technologies, Inc. Series G (a) (c) (d)

     541,563        1,554,286   
   

 

 

  

Total Preferred Stocks
(Cost $4,488,033)

       2,136,723   
   

 

 

  
Short-Term Investments—26.7%   

Mutual Fund—23.9%

  

State Street Navigator Securities Lending MET Portfolio (e)

     282,176,714        282,176,714   
   

 

 

  
Security Description   Principal
Amount*		     Value  

Repurchase Agreement—2.8%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $33,567,028 on 07/01/13, collateralized by $35,030,000 Federal National Mortgage Association at 0.875% due 10/26/17 with a value of $34,241,825.

     33,567,000      $ 33,567,000   
   

 

 

  

Total Short-Term Investments
(Cost $315,743,714)

       315,743,714   
   

 

 

  

Total Investments—123.8%
(Cost $1,275,135,443) (f)

       1,462,435,878   

Other assets and liabilities (net)—(23.8)%

       (280,967,528 ) 
   

 

 

  
Net Assets—100.0%     $ 1,181,468,350   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $274,461,291 and the collateral received consisted of cash in the amount of $282,176,714 and non-cash collateral with a value of $1,223,630. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(c) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of June 30, 2013, the market value of restricted securities was $6,061,896, which is 0.5% of net assets. See details shown in the Restricted Securities table that follows.
(d) Security was valued in good faith under procedures approved by the Board of Trustees. As of June 30, 2013, these securities represent 0.5% of net assets.
(e) Represents investment of cash collateral received from securities lending transactions.
(f) As of June 30, 2013, the aggregate cost of investments was $1,275,135,443. The aggregate unrealized appreciation and depreciation of investments were $224,828,929 and $(37,528,494), respectively, resulting in net unrealized appreciation of $187,300,435.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.
(GDR)— A Global Depositary Receipt is a negotiable certificate issued by one country’s bank against a certain number of shares of a company’s stock held in its custody but traded on the stock exchange of another country.

 

Restricted Securities

    Acquisition
Date		      Shares      Cost      Value  

Dropbox, Inc.

      05/01/12         460,161       $ 4,165,241       $ 3,925,173   

Dropbox, Inc., Series A

      05/25/12         51,888         470,124         442,605   

Palantir Technologies, Inc.

      07/19/12         541,563         1,657,184         1,554,286   

Peixe Urbano, Inc., Series C

      12/02/11         71,709         2,360,725         139,832   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Automobiles

    $ 28,682,413       $ —        $ —         $ 28,682,413   

Beverages

      20,116,511         —          —           20,116,511   

Biotechnology

      6,942,792         —          —           6,942,792   

Chemicals

      28,553,538         —          —           28,553,538   

Commercial Services & Supplies

      35,719,306         38,827,111        —           74,546,417   

Communications Equipment

      39,454,529         —          —           39,454,529   

Computers & Peripherals

      7,587,237         —          —           7,587,237   

Construction Materials

      27,288,815         —          —           27,288,815   

Diversified Financial Services

      65,116,846         —          —           65,116,846   

Electric Utilities

      17,001,338         —          —           17,001,338   

Food Products

      55,714,656         —          —           55,714,656   

Health Care Equipment & Supplies

      23,411,595         —          —           23,411,595   

Health Care Providers & Services

      9,218,644         —          —           9,218,644   

Health Care Technology

      29,525,344         —          —           29,525,344   

Hotels, Restaurants & Leisure

      60,966,929         —          —           60,966,929   

Insurance

      56,997,979         —          —           56,997,979   

Internet & Catalog Retail

      40,774,482         —          —           40,774,482   

Internet Software & Services

      131,130,773         5,929,266        3,925,173         140,985,212   

IT Services

      32,830,343         —          —           32,830,343   

Life Sciences Tools & Services

      47,973,338         —          —           47,973,338   

Machinery

      12,082,589         —          —           12,082,589   

Media

      31,341,002         —          —           31,341,002   

Multiline Retail

      30,902,738         —          —           30,902,738   

Oil, Gas & Consumable Fuels

      32,878,823         —          —           32,878,823   

Professional Services

      46,696,039         14,684,336        —           61,380,375   

Semiconductors & Semiconductor Equipment

      19,658,567         —          —           19,658,567   

Software

      99,398,087         —          —           99,398,087   

Specialty Retail

      12,591,098         —          —           12,591,098   

Textiles, Apparel & Luxury Goods

      30,633,204         —          —           30,633,204   

Total Common Stocks

      1,081,189,555         59,440,713        3,925,173         1,144,555,441   

Total Preferred Stocks*

      —           —          2,136,723         2,136,723   
Short-Term Investments           

Mutual Fund

      282,176,714         —          —           282,176,714   

Repurchase Agreement

      —           33,567,000        —           33,567,000   

Total Short-Term Investments

      282,176,714         33,567,000        —           315,743,714   

Total Investments

    $ 1,363,366,269       $ 93,007,713      $ 6,061,896       $ 1,462,435,878   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (282,176,714 )    $ —         $ (282,176,714 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Transfers from Level 2 to Level 1 in the amount of $17,264,864 were due to the discontinuation of a systematic fair valuation model factor.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

 

Investments in Securities

    Balance as of
December 31,
2012		      Realized
Loss		     Change in
Unrealized
Appreciation/
(Depreciation)		     Sales      Balance as of
June 30,
2013		      Change in Unrealized
Depreciation from
investments still held at
June 30, 2013		  
Common Stocks                

Internet Software & Services

    $ 4,164,043      $ —      $ (238,870 )    $ —       $ 3,925,173       $ (238,870 )
Preferred Stocks                

Internet Software & Services

      810,874        —        (228,437 )      —         582,437         (228,437 )

Software

      1,657,183        —        (102,897 )      —         1,554,286         (102,897 )

Transportation Infrastructure

      434,949        (5,976,980 )      5,542,031        0         —         —  
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total

    $ 7,067,049      $ (5,976,980 )    $ 4,971,827      $ 0       $ 6,061,896       $ (570,204 )
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,462,435,878   

Cash

      172,077   

Cash denominated in foreign currencies

      115,031   

Receivable for:

   

Investments sold

      2,165,547   

Fund shares sold

      320,152   

Dividends

      623,804   

Interest

      28   
  

 

 

  

Total Assets

      1,465,832,517   

Liabilities

   

Payables for:

   

Fund shares redeemed

      1,229,495   

Collateral for securities loaned

      282,176,714   

Accrued expenses:

   

Management fees

      615,964   

Distribution and service fees

      76,565   

Deferred trustees’ fees

      47,036   

Other expenses

      218,393   
  

 

 

  

Total Liabilities

      284,364,167   
  

 

 

  

Net Assets

    $ 1,181,468,350   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,371,042,689   

Undistributed net investment income

      2,364,897   

Accumulated net realized loss

      (379,233,918 ) 

Unrealized appreciation on investments and foreign currency transactions

      187,294,682   
  

 

 

  

Net Assets

    $ 1,181,468,350   
  

 

 

  

Net Assets

   

Class A

    $ 800,977,967   

Class B

      364,464,411   

Class E

      16,025,972   

Capital Shares Outstanding*

   

Class A

      59,343,008   

Class B

      27,900,910   

Class E

      1,212,753   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 13.50   

Class B

      13.06   

Class E

      13.21   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,275,135,443.
(b) Includes securities loaned at value of $274,461,291.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 4,644,820   

Interest

      2,297   

Securities lending income

      1,826,967   
  

 

 

  

Total investment income

      6,474,084   

Expenses

   

Management fees

      3,499,719   

Administration fees

      13,672   

Custodian and accounting fees

      71,245   

Distribution and service fees—Class B

      428,753   

Distribution and service fees—Class E

      11,963   

Audit and tax services

      23,515   

Legal

      9,688   

Trustees’ fees and expenses

      13,563   

Shareholder reporting

      48,199   

Insurance

      3,202   

Miscellaneous

      5,064   
  

 

 

  

Total expenses

      4,128,583   

Less management fee waiver

      (49,589 ) 
  

 

 

  

Net expenses

      4,078,994   
  

 

 

  

Net Investment Income

      2,395,090   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain (loss) on:   

Investments

      12,962,351   

Futures contracts

      (585,324 ) 

Foreign currency transactions

      (16,589 ) 
  

 

 

  

Net realized gain

      12,360,438   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      137,325,437   

Foreign currency transactions

      (4,034 ) 
  

 

 

  

Net change in unrealized appreciation

      137,321,403   
  

 

 

  

Net realized and unrealized gain

      149,681,841   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 152,076,931   
  

 

 

  

 

(a) Net of foreign withholding taxes of $232,364.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 2,395,090      $ 9,040,191   

Net realized gain

      12,360,438        12,141,444   

Net change in unrealized appreciation

      137,321,403        50,597,721   
  

 

 

    

 

 

  

Increase in net assets from operations

      152,076,931        71,779,356   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (6,497,822 )      0   

Class B

      (2,272,736 )      0   

Class E

      (112,563 )      0   
  

 

 

    

 

 

  

Total distributions

      (8,883,121 )      0   
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      58,188,120        101,333,588   
  

 

 

    

 

 

  

Total Increase in Net Assets

      201,381,930        173,112,944   

Net Assets

     

Beginning of period

      980,086,420        806,973,476   
  

 

 

    

 

 

  

End of period

    $ 1,181,468,350      $ 980,086,420   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 2,364,897      $ 8,852,928   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      7,195,534      $ 93,097,583        14,185,070      $ 171,283,998   

Reinvestments

      517,755        6,497,822        0        0   

Redemptions

      (3,340,189 )      (43,384,805 )      (9,257,024 )      (108,061,482 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      4,373,100      $ 56,210,600        4,928,046      $ 63,222,516   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,971,490      $ 24,542,119        6,563,583      $ 74,205,752   

Reinvestments

      186,903        2,272,736        0        0   

Redemptions

      (1,857,736 )      (23,181,917 )      (3,014,351 )      (34,111,320 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      300,657      $ 3,632,938        3,549,232      $ 40,094,432   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      13,627      $ 173,889        79,744      $ 917,766   

Reinvestments

      9,151        112,563        0        0   

Redemptions

      (153,724 )      (1,941,870 )      (253,375 )      (2,901,126 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (130,946 )    $ (1,655,418 )      (173,631 )    $ (1,983,360 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 58,188,120        $ 101,333,588   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Financial Highlights

 

Selected per share data                                        
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009     2008  

Net Asset Value, Beginning of Period

    $ 11.81      $ 10.78       $ 11.91       $ 9.01       $ 5.71      $ 11.82   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.03        0.12         0.03         0.07         0.02        0.02   

Net realized and unrealized gain (loss) on investments

      1.77        0.91         (0.75 )       2.85         3.28        (5.10 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      1.80        1.03         (0.72 )       2.92         3.30        (5.08 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.11 )      0.00         (0.09 )       (0.02 )       (0.00 )(b)      (0.15 ) 

Distributions from net realized capital gains

      0.00        0.00         (0.32 )       0.00         0.00        (0.88 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.11 )      0.00         (0.41 )       (0.02 )       (0.00 )(b)      (1.03 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 13.50      $ 11.81       $ 10.78       $ 11.91       $ 9.01      $ 5.71   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (c)

      15.30  (d)      9.55         (6.67 )       32.41         57.83        (46.67 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%)

      0.68  (e)      0.72         0.72         0.80         0.90        0.89   

Net ratio of expenses to average net assets (%) (f)

      0.67  (e)      0.71         0.71         0.78         0.90        0.89   

Ratio of net investment income to average net assets (%)

      0.53  (e)      1.07         0.22         0.63         0.24        0.25   

Portfolio turnover rate (%)

      27  (d)      36         34         48         33        38   

Net assets, end of period (in millions)

    $ 801.0      $ 649.3       $ 539.5       $ 567.5       $ 21.7      $ 16.3   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011     2010     2009     2008  

Net Asset Value, Beginning of Period

    $ 11.42      $ 10.45       $ 11.57      $ 8.76      $ 5.57      $ 11.55   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (loss) (a)

      0.02        0.09         (0.00 )(g)      0.02        0.00 (g)      (0.00 )(g) 

Net realized and unrealized gain (loss) on investments

      1.70        0.88         (0.73 )      2.79        3.19        (4.97 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.72        0.97         (0.73 )      2.81        3.19        (4.97 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.08 )      0.00         (0.07 )      (0.00 )(b)      0.00        (0.13 ) 

Distributions from net realized capital gains

      0.00        0.00         (0.32 )      0.00        0.00        (0.88 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.08 )      0.00         (0.39 )      (0.00 )(b)      0.00        (1.01 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 13.06      $ 11.42       $ 10.45      $ 11.57      $ 8.76      $ 5.57   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (c)

      15.13  (d)      9.28         (6.92 )      32.09        57.27        (46.75 ) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.93  (e)      0.97         0.97        1.05        1.15        1.14   

Net ratio of expenses to average net assets (%) (f)

      0.92  (e)      0.96         0.96        1.03        1.15        1.14   

Ratio of net investment income (loss) to average net assets (%)

      0.27  (e)      0.80         (0.03 )      0.24        0.00 (h)      (0.03 ) 

Portfolio turnover rate (%)

      27  (d)      36         34        48        33        38   

Net assets, end of period (in millions)

    $ 364.5      $ 315.3       $ 251.4      $ 237.9      $ 107.5      $ 58.0   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Financial Highlights

 

 

Selected per share data                           
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010(i)  

Net Asset Value, Beginning of Period

    $ 11.56      $ 10.56       $ 11.69       $ 9.71   
  

 

 

    

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

           

Net investment income (a)

      0.02        0.10         0.01         0.04   

Net realized and unrealized gain (loss) on investments

      1.72        0.90         (0.74 )       1.94   
  

 

 

    

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.74        1.00         (0.73 )       1.98   
  

 

 

    

 

 

     

 

 

     

 

 

  

Less Distributions

           

Distributions from net investment income

      (0.09 )      0.00         (0.08 )       0.00   

Distributions from net realized capital gains

      0.00        0.00         (0.32 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

  

Total distributions

      (0.09 )      0.00         (0.40 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 13.21      $ 11.56       $ 10.56       $ 11.69   
  

 

 

    

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      15.10  (d)      9.47         (6.87 )       20.39 (d) 

Ratios/Supplemental Data

           

Gross ratio of expenses to average net assets (%)

      0.83  (e)      0.87         0.87         0.95 (e) 

Net ratio of expenses to average net assets (%) (f)

      0.82  (e)      0.86         0.86         0.93 (e) 

Ratio of net investment income to average net assets (%)

      0.35  (e)      0.87         0.06         0.50 (e) 

Portfolio turnover rate (%)

      27  (d)      36         34         48   

Net assets, end of period (in millions)

    $ 16.0      $ 15.5       $ 16.0       $ 20.8   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Distributions from net investment income were less than $0.01.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(g) Net investment income (loss) was less than $0.01.
(h) Ratio of net investment income to average net assets was less than 0.01%.
(i) Commencement of operations was April 27, 2010.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Morgan Stanley Mid Cap Growth Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-13

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, Real Estate Investment Trusts (REITs) and passive foreign investment companies (PFICs). These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $33,567,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

 

MIST-14

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

During the six months ended June 30, 2013, the Portfolio entered into equity index futures contracts which were subject to equity price risk. During the period April 16 through April 18, 2013, the Portfolio had bought and sold $45,993,629 in equity index futures contracts. At June 30, 2013, the Portfolio did not have any open futures contracts. For the six months ended June 30, 2013, the Portfolio had realized loss in the amount of $(585,324) which are shown under Net realized gain (loss) on futures contracts in the Statement of Operations.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

 

MIST-15

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 342,888,969       $ 0       $ 287,697,002   

The Portfolio engaged in security transactions with other accounts managed by Morgan Stanley Investment Management Inc. that amounted to $10,733,355 in purchases and $10,954,435 in sales of investments which are included above.

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $15,358,448 in purchases of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Morgan Stanley Investment Management Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$3,499,719      0.700 %    First $200 million
     0.650 %    $200 million to $500 million
     0.625 %    Over $500 million

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.050%    First $200 million

An identical agreement was in place for the period April 30, 2012 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that

 

MIST-16

Met Investors Series Trust

Morgan Stanley Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$—    $ 6,329,786       $ —       $ 21,259,646       $ —       $ 27,589,432   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Depreciation		      Loss Carryforwards     Total  
$8,896,511    $ —       $ 50,424,013       $ (392,044,865 )    $ (332,724,341 ) 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2015

    Expiring
12/31/2016		     Total  
$183,964,797*    $ 208,080,068 **    $ 392,044,865   

 

* The Portfolio acquired capital losses in the merger with FI Mid Cap Opportunities Portfolio, a series of Metropolitan Series Fund, on April 30, 2010.

 

MIST-17

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Managed by OppenheimerFunds, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

Effective April 29, 2013, OppenheimerFunds, Inc. (“Oppenheimer”) became the subadviser to the Portfolio, and the Portfolio changed its investment objective, principal investment strategies and name. Prior to that date, Templeton Global Advisors Limited was the Portfolio’s subadviser.

For the six month period ended June 30, 2013, the Class A, B, and E shares of the Oppenheimer Global Equity Portfolio returned 8.03%, 7.86%, and 7.98%, respectively. The Portfolio’s benchmark, the MSCI ACWI (All Country World Index)1, returned 6.05%.

MARKET ENVIRONMENT / CONDITIONS

Equities performed positively for the period as central banks throughout the world, including the U.S., Europe and Japan, took steps to maintain highly accommodative monetary policy and stimulate their respective economies. In addition, a clear recovery in the U.S. provided further support for equity markets. However, later in the period, the Federal Reserve (“Fed”) appeared to weigh the merits of backing away from its quantitative easing policy. Additionally, fears began to creep into the markets about a possible slowdown in the word’s emerging economies. As a result, risk assets sold off across the board, with emerging market stocks and bonds absorbing the brunt of the selling, although investment grade credit was certainly not immune.

PORTFOLIO REVIEW / PERIOD END POSITIONING

During the period, the strongest performing stocks for the Portfolio included European Aeronautic Defence & Space NV (“EADS”) (Industrials) (Netherlands), KDDI Corp. (Telecommunication Services) (Japan), LM Ericsson Telefonaktiebolaget AB (“Ericsson”) (Information Technology) (Sweden) and Health Care stocks WellPoint, Inc. (United States) and Aetna, Inc. (United States).

EADS is the Franco-German manufacturer of Airbus planes. The company enjoyed strong sales and earnings as its air fleet continued to renew itself and expand. EADS has a defense business that accounts for roughly 25% of its earnings, a percentage significantly below that of its chief rival, Boeing, and has therefore been less affected by declining defense spending in the U.S. and Europe.

KDDI is a Japanese telecommunications firm that offers fixed line telephone, mobile and digital TV. The company has been gaining share with a “triple play” offering and the company began to wind down a large scale investment phase.

Ericsson is a world-leading provider of telecommunications equipment and related services to mobile and fixed network operators. The company announced strong equipment sales growth as North American operators increased their capital expenditure spending significantly.

Wellpoint is a North American health insurance company. The early concern that Obamacare would supplant the private insurance market has not come to pass. Moreover, our thesis has been that WellPoint is part of the solution to rising healthcare costs. The early indications from discussions around the health exchanges, both public and private, seem less negative than most were imagining, and this has been a plus for the stock.

Aetna is much the same story as Wellpoint. Generally, higher interest rates are helpful in managing the liability book, and similar to Wellpoint, the economics of Obamacare look better than many feared.

During the period, the most significant detractors from the Portfolio’s performance were DLF Ltd. (Financials) (India), Fusion-io, Inc. (Information Technology) (United States), LVMH Moet Hennessy Louis Vuitton SA (Consumer Discretionary) (France), Technip S.A. (Energy) (France) and FANUC Corp. (Industrials) (Japan).

DLF, the largest real estate company in India, raised capital to meet the regulatory criteria for public listing. We were happy to participate in the offering and believed the related near-term concerns were overblown.

Fusion-io produces solid state data storage components. The market for this technology is at an early stage of development and therefore Fusion-io’s stock tends to be relatively volatile. During the period, investors were disappointed by revenues that were below aggressive projections as the company’s two biggest clients, Apple and Facebook, slowed their data center expansion. Growth in sales to other customers accelerated and the customer base of large companies continues to expand. We believe that the data storage market will increasingly move toward solid state technology and that Fusion-io’s intellectual property in the area is very good.

Luxury goods company LVMH Moet Hennessy Louis Vuitton had a volatile period. It experienced declines in April due to weakened demand in Asia.

Technip is a global oil service company that suffered from investors’ negative read-through of competitor Saipem’s poor results. Technip, by contrast, announced results in line with analyst expectations, but investors’ caution on the sector led to the sell-off, in our opinion.

FANUC is a leading manufacturer of automated factory and industrial robots. Apple is one of Fanuc’s top clients and the stock has been weak on the back of recent disappointments in Apple’s iPhone shipments.

At period end, the Portfolio had its largest overweight positions in Information Technology, Consumer Discretionary, Health Care and Industrials and its most significant underweight positions in Energy,

 

MIST-1

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Managed by OppenheimerFunds, Inc.

Portfolio Manager Commentary*—(Continued)

 

Materials, Consumer Staples, Utilities, Telecommunication Services and Financials. The Portfolio had its largest overweight positions in Germany, France, Sweden, India, Spain and Brazil and its most significant underweights in the U.S., United Kingdom, Canada, Australia and China. Despite being underweight in the U.S. relative to the Index, the Portfolio had its largest allocation to that country at period end.

In our opinion, the volatility seen in the second quarter was probably inevitable. Though there was some spillover to equity markets, we see the excesses as being largely in the fixed income realm. Equities still seem buoyed by a steep yield curve, valuations that are not high, and a persistent apathy on the part of investors. In the current environment, we are focused on adding to our holdings in a variety of well positioned Financial companies.

Rajeev Bhaman

Portfolio Manager

OppenheimerFunds, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)


A $10,000 INVESTMENT COMPARED TO THE MSCI ACWI (ALL COUNTRY WORLD INDEX)

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year        Since Inception2  
Oppenheimer Global Equity Portfolio3                           

Class A

        8.03           25.02           6.24           9.15           —   

Class B

        7.86           24.67           5.93           —           7.00   

Class E

        7.98           24.87           6.07           8.99           —   
MSCI ACWI (All Country World Index)        6.05           16.57           2.30           7.59           —   

1 The MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 24 developed and 21 emerging market indices. The index returns shown above were calculated with net dividends: they reflect the reinvestment of dividends after the deduction of the maximum possible withholding taxes.

2 Inception of the Class A shares is 3/3/1997. Inception of the Class B shares is 4/26/2004. Inception of the Class E shares is 5/1/2001.

3 Effective April 29, 2013, Oppenheimer became the subadviser to the Portfolio. In addition, the Portfolio’s investment objective and principal investment strategies changed and the name of the Portfolio was changed from Met/Templeton Growth Portfolio to Oppenheimer Global Equity Portfolio. On April 26, 2013, the Oppenheimer Global Equity Portfolio of the Metropolitan Series Fund (the “MSF Predecessor Fund”) merged with and into the Portfolio. The MSF Predecessor Fund was the accounting and performance survivor of that merger. As a result, the historical performance shown for the Portfolio from May 1, 2005 to April 29, 2013 is the performance of the MSF Predecessor Fund managed by Oppenheimer using the same investment objective and strategies as the Portfolio. The historical performance shown for the Portfolio prior to May 1, 2005 is the performance of the MSF Predecessor Fund when it was managed by a former subadviser using different investment objectives and strategies.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

MIST-3

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Telefonaktiebolaget LM Ericsson - Class B      3.2   
European Aeronautic Defence and Space Co. NV      2.6   
Google, Inc.- Class A      2.5   
WellPoint, Inc.      2.2   
SAP AG      2.1   
eBay, Inc.      2.1   
Walt Disney Co. (The)      2.1   
UBS AG      2.0   
Bayerische Motoren Werke (BMW) AG      1.9   
LVMH Moet Hennessy Louis Vuitton S.A.      1.8   

Top Countries

 

     % of
Market Value of
Total Investments		  
United States      39.4   
Germany      10.9   
Japan      9.0   
Switzerland      6.0   
France      5.9   
Sweden      4.7   
Brazil      3.6   
India      3.6   
Spain      3.5   
United Kingdom      3.2   

 

MIST-4

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

 

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Oppenheimer Global Equity Portfolio
(formerly Met/Templeton Growth Portfolio)

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

      Actual      0.64 %     $ 1,000.00         $ 1,080.30         $ 3.30   
     Hypothetical*      0.64 %     $ 1,000.00         $ 1,021.62         $ 3.21   

Class B(a)

     Actual      0.89 %     $ 1,000.00         $ 1,078.60         $ 4.59   
     Hypothetical*      0.89 %     $ 1,000.00         $ 1,020.38         $ 4.46   

Class E(a)

     Actual      0.79 %     $ 1,000.00         $ 1,079.80         $ 4.07   
     Hypothetical*      0.79 %     $ 1,000.00         $ 1,020.88         $ 3.96   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

 

MIST-5

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Schedule of Investments as of June 30, 2013

Common Stocks—97.0% of Net Assets

 

Security Description   Shares     Value  

Australia—0.2%

  

Iluka Resources, Ltd. (a)

     174,300      $ 1,573,661   
   

 

 

  

Belgium—0.1%

  

ThromboGenics NV (a) (b)

     29,837        1,143,926   
   

 

 

  

Brazil—3.6%

  

BM&FBovespa S.A.

     1,322,100        7,323,439   

Cia de Bebidas das Americas (ADR)

     186,050        6,948,968   

Embraer S.A. (ADR)

     261,430        9,644,153   

Itau Unibanco Holding S.A. (ADR)

     573,946        7,415,382   
   

 

 

  
      31,331,942   
   

 

 

  

Denmark—1.1%

  

Carlsberg A/S - Class B

     54,424        4,857,681   

FLSmidth & Co. A/S (a)

     104,246        4,740,894   
   

 

 

  
      9,598,575   
   

 

 

  

Finland—0.5%

  

Fortum OYJ

     234,953        4,389,086   
   

 

 

  

France—5.9%

  

Kering (a)

     78,250        15,839,225   

LVMH Moet Hennessy Louis Vuitton S.A.

     99,011        15,944,370   

Societe Generale S.A.

     133,664        4,551,348   

Technip S.A.

     146,610        14,817,785   
   

 

 

  
      51,152,728   
   

 

 

  

Germany—8.9%

  

Allianz SE

     96,270        14,059,301   

Bayer AG

     125,052        13,331,382   

Deutsche Bank AG

     262,930        10,999,245   

Linde AG

     46,441        8,647,512   

SAP AG

     253,736        18,580,045   

Siemens AG

     116,640        11,785,615   
   

 

 

  
      77,403,100   
   

 

 

  

India—3.6%

  

DLF, Ltd.

     2,581,466        7,821,441   

ICICI Bank, Ltd. (ADR)

     283,790        10,854,968   

Infosys, Ltd.

     171,711        7,174,639   

Zee Entertainment Enterprises, Ltd.

     1,326,086        5,256,497   
   

 

 

  
      31,107,545   
   

 

 

  

Ireland—0.6%

  

Shire plc

     162,970        5,169,896   
   

 

 

  

Italy—1.9%

  

Brunello Cucinelli S.p.A.

     46,450        1,147,364   

Gtech S.p.A.

     142,075        3,556,239   

Prysmian S.p.A.

     223,770        4,160,503   

Tod’s S.p.A. (a)

     55,698        7,841,463   
   

 

 

  
      16,705,569   
   

 

 

  

Japan—8.9%

    

Dai-ichi Life Insurance Co., Ltd. (The)

     6,756      $ 9,778,322   

FANUC Corp.

     37,300        5,408,768   

KDDI Corp.

     299,270        15,571,407   

Keyence Corp.

     34,600        11,042,654   

Kyocera Corp.

     69,600        7,084,913   

Murata Manufacturing Co., Ltd.

     176,800        13,460,229   

Nidec Corp. (a)

     86,500        6,035,947   

Sumitomo Mitsui Financial Group, Inc.

     198,000        9,084,956   
   

 

 

  
      77,467,196   
   

 

 

  

Mexico—2.2%

    

Fomento Economico Mexicano S.A.B.
de C.V. (ADR)

     113,784        11,741,371   

Grupo Televisa S.A.B. (ADR)

     276,714        6,873,576   
   

 

 

  
      18,614,947   
   

 

 

  

Netherlands—2.6%

    

European Aeronautic Defence and Space Co. NV

     420,937        22,383,360   
   

 

 

  

Spain—3.5%

    

Banco Bilbao Vizcaya Argentaria S.A.

     1,204,812        10,032,713   

Inditex S.A.

     110,642        13,647,969   

Repsol S.A.

     306,783        6,467,338   
   

 

 

  
      30,148,020   
   

 

 

  

Sweden—4.7%

    

Assa Abloy AB - Class B

     335,789        13,090,172   

Telefonaktiebolaget LM Ericsson - Class B

     2,464,288        27,938,454   
   

 

 

  
      41,028,626   
   

 

 

  

Switzerland—6.0%

    

Credit Suisse Group AG (b)

     290,039        7,689,714   

Nestle S.A.

     145,659        9,527,034   

Roche Holding AG

     40,942        10,144,787   

Transocean, Ltd.

     161,568        7,747,186   

UBS AG (b)

     999,948        16,987,431   
   

 

 

  
      52,096,152   
   

 

 

  

Taiwan—1.0%

    

Taiwan Semiconductor Manufacturing Co., Ltd.

     2,466,498        8,926,251   
   

 

 

  

United Kingdom—3.2%

    

Prudential plc

     769,792        12,655,105   

Unilever plc

     366,281        14,875,172   
   

 

 

  
      27,530,277   
   

 

 

  

United States—38.5%

    

3M Co.

     118,760        12,986,406   

Adobe Systems, Inc. (b)

     294,100        13,399,196   

Aetna, Inc.

     230,120        14,621,825   

Allergan, Inc.

     66,530        5,604,487   

Altera Corp.

     443,270        14,623,477   

Citigroup, Inc.

     219,050        10,507,829   

Colgate-Palmolive Co.

     275,500        15,783,395   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Schedule of Investments as of June 30, 2013

Common Stocks—(Continued)

 

Security Description       
Shares		     Value  

United States—(Continued)

    

eBay, Inc. (b)

     357,170      $ 18,472,832   

Emerson Electric Co.

     139,250        7,594,695   

Facebook, Inc. - Class A (b)

     214,230        5,325,758   

Fidelity National Financial, Inc. - Class A (a)

     217,800        5,185,818   

Fusion-io, Inc. (a) (b)

     278,460        3,965,270   

Gilead Sciences, Inc. (a) (b)

     174,360        8,928,976   

Goldman Sachs Group, Inc. (The)

     60,920        9,214,150   

Google, Inc. - Class A (b)

     24,430        21,507,439   

Intuit, Inc.

     207,360        12,655,181   

Juniper Networks, Inc. (a) (b)

     455,740        8,800,339   

Maxim Integrated Products, Inc. (a)

     458,080        12,725,462   

McDonald’s Corp.

     142,590        14,116,410   

McGraw Hill Financial, Inc.

     262,650        13,970,354   

Medivation, Inc. (a) (b)

     45,930        2,259,756   

Microsoft Corp.

     370,720        12,800,962   

St. Jude Medical, Inc. (a)

     93,720        4,276,444   

Theravance, Inc. (a) (b)

     205,480        7,917,144   

Tiffany & Co. (a)

     151,260        11,017,778   

United Parcel Service, Inc. - Class B

     109,060        9,431,509   

Vertex Pharmaceuticals, Inc. (b)

     115,560        9,229,777   

Walt Disney Co. (The)

     281,890        17,801,353   

WellPoint, Inc. (a)

     237,640        19,448,458   

Zimmer Holdings, Inc.

     134,740        10,097,416   
   

 

 

  
      334,269,896   
   

 

 

  

Total Common Stocks
(Cost $676,861,514)

       842,040,753   
   

 

 

  
Preferred Stock—1.9%                

Germany—1.9%

    

Bayerische Motoren Werke (BMW) AG
(Cost $10,438,581)

     243,436        16,609,889   
   

 

 

  
Rights—0.1%                

France—0.0%

    

Groupe FNAC, Expires 05/16/2015 (a) (b)

     51,965        135,483   
   

 

 

  

Spain—0.1%

    

Repsol S.A., Expires 07/12/2013 (b)

     309,416        172,378   
   

 

 

  

Total Rights
(Cost $355,999)

       307,861   
   

 

 

  
Short-Term Investments—7.6%                

Mutual Fund—6.9%

    

State Street Navigator Securities Lending MET Portfolio (c)

     59,845,124        59,845,124   
   

 

 

  

Repurchase Agreement—0.7%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $6,197,005 on 07/01/13, collateralized by $6,470,000 Federal National Mortgage Association at 0.875% due 10/26/17 with a value of $6,324,425.

     6,197,000      $ 6,197,000   
   

 

 

  

Total Short-Term Investments
(Cost $66,042,124)

       66,042,124   
   

 

 

  

Total Investments—106.6%
(Cost $753,698,218) (d)

       925,000,627   

Other assets and liabilities (net)—(6.6)%

       (57,202,777 ) 
   

 

 

  
Net Assets—100.0%     $ 867,797,850   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $58,349,180 and the collateral received consisted of cash in the amount of $59,845,124 and non-cash collateral with a value of $983,000. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $753,698,218. The aggregate unrealized appreciation and depreciation of investments were $198,013,229 and $(26,710,820), respectively, resulting in net unrealized appreciation of $171,302,409.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.

 

Ten Largest Industries as of
June 30, 2013 (Unaudited)

   

% of
Net Assets

  

Software

      6.6   

Internet Software & Services

      5.2   

Capital Markets

      5.2   

Commercial Banks

      4.8   

Insurance

      4.8   

Textiles, Apparel & Luxury Goods

      4.7   

Communications Equipment

      4.2   

Semiconductors & Semiconductor Equipment

      4.2   

Pharmaceuticals

      4.0   

Health Care Providers & Services

      3.9   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Schedule of Investments as of June 30, 2013

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  
Common Stocks           

Australia

    $ —         $ 1,573,661      $ —         $ 1,573,661   

Belgium

      —           1,143,926        —           1,143,926   

Brazil

      31,331,942         —          —           31,331,942   

Denmark

      —           9,598,575        —           9,598,575   

Finland

      —           4,389,086        —           4,389,086   

France

      —           51,152,728        —           51,152,728   

Germany

      —           77,403,100        —           77,403,100   

India

      10,854,968         20,252,577        —           31,107,545   

Ireland

      —           5,169,896        —           5,169,896   

Italy

      —           16,705,569        —           16,705,569   

Japan

      —           77,467,196        —           77,467,196   

Mexico

      18,614,947         —          —           18,614,947   

Netherlands

      —           22,383,360        —           22,383,360   

Spain

      —           30,148,020        —           30,148,020   

Sweden

      —           41,028,626        —           41,028,626   

Switzerland

      7,747,186         44,348,966        —           52,096,152   

Taiwan

      —           8,926,251        —           8,926,251   

United Kingdom

      —           27,530,277        —           27,530,277   

United States

      334,269,896         —          —           334,269,896   

Total Common Stocks

      402,818,939         439,221,814        —           842,040,753   

Total Preferred Stock*

      —           16,609,889        —           16,609,889   

Total Rights*

      307,861         —          —           307,861   
Short-Term Investments           

Mutual Fund

      59,845,124         —          —           59,845,124   

Repurchase Agreement

      —           6,197,000        —           6,197,000   

Total Short-Term Investments

      59,845,124         6,197,000        —           66,042,124   

Total Investments

    $ 462,971,924       $ 462,028,703      $ —         $ 925,000,627   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (59,845,124 )    $ —         $ (59,845,124 ) 

 

* See Schedule of Investments for additional detailed categorizations.

Transfers from Level 2 to Level 1 in the amount of $7,542,950 were due to the discontinuation of a systematic fair valuation model factor.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

 

Statement of Assets and Liabilities

 

June 30, 2013

 

Assets

   

Investments at value (a) (b)

    $ 925,000,627   

Cash

      997   

Cash denominated in foreign currencies (c)

      1,322,257   

Receivable for:

   

Investments sold

      2,967,156   

Fund shares sold

      254,329   

Dividends and interest

      631,982   

Other assets

      875   
  

 

 

  

Total Assets

      930,178,223   

Liabilities

   

Payables for:

   

Investments purchased

      1,128,353   

Fund shares redeemed

      557,515   

Collateral for securities loaned

      59,845,124   

Accrued expenses:

   

Management fees

      462,547   

Distribution and service fees

      88,537   

Deferred trustees’ fees

      44,794   

Other expenses

      253,503   
  

 

 

  

Total Liabilities

      62,380,373   
  

 

 

  

Net Assets

    $ 867,797,850   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 769,086,733   

Undistributed net investment income

      629,377   

Accumulated net realized loss

      (73,206,114 ) 

Unrealized appreciation on investments and foreign currency transactions

      171,287,854   
  

 

 

  

Net Assets

    $ 867,797,850   
  

 

 

  

Net Assets

   

Class A

    $ 430,171,456   

Class B

      405,636,441   

Class E

      31,989,953   

Capital Shares Outstanding*

   

Class A

      24,457,550   

Class B

      23,146,385   

Class E

      1,823,967   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 17.59   

Class B

      17.52   

Class E

      17.54   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $753,698,218.
(b) Includes securities loaned at value of $58,349,180.
(c) Identified cost of cash denominated in foreign currencies was $1,323,332.

 

Statement of Operations (a)

 

Six Months Ended June 30, 2013

 

Investment Income

   

Dividends (b)

    $ 10,629,908   

Interest

      231   

Securities lending income

      521,128   
  

 

 

  

Total investment income

      11,151,267   

Expenses

   

Management fees

      2,231,512   

Administration fees

      7,114   

Custodian and accounting fees

      140,085   

Distribution and service fees—Class B

      392,002   

Distribution and service fees—Class E

      14,374   

Audit and tax services

      15,070   

Legal

      25,572   

Trustees’ fees and expenses

      13,826   

Shareholder reporting

      34,400   

Insurance

      207   

Miscellaneous

      22,647   
  

 

 

  

Total expenses

      2,896,809   

Less management fee waiver

      (44,847 ) 
  

 

 

  

Net expenses

      2,851,962   
  

 

 

  

Net Investment Income

      8,299,305   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain (loss) on:   

Investments

      17,558,425   

Foreign currency transactions

      (89,789 ) 
  

 

 

  

Net realized gain

      17,468,636   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments (c)

      26,264,621   

Foreign currency transactions

      (36,199 ) 
  

 

 

  

Net change in unrealized appreciation

      26,228,422   
  

 

 

  

Net realized and unrealized gain

      43,697,058   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 51,996,363   
  

 

 

  

 

(a) See Note 8 of the Notes to Financial Statements.
(b) Net of foreign withholding taxes of $1,166,673.
(c) Includes change in foreign capital gains tax of $24,396.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Statements of Changes in Net Assets (a)

 

     Six Months
Ended
June 30,
2013		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 8,299,305      $ 10,674,660   

Net realized gain (loss)

      17,468,636        (11,352,914 ) 

Net change in unrealized appreciation

      26,228,422        127,138,005   
  

 

 

    

 

 

  

Increase in net assets from operations

      51,996,363        126,459,751   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (9,136,910 )      (6,477,159 ) 

Class B

      (4,727,843 )      (3,462,856 ) 

Class E

      (224,300 )      (169,733 ) 
  

 

 

    

 

 

  

Total distributions

      (14,089,053 )      (10,109,748 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      156,721,956        (68,906,332 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      194,629,266        47,443,671   

Net Assets

     

Beginning of period

      673,168,584        625,724,913   
  

 

 

    

 

 

  

End of period

    $ 867,797,850      $ 673,168,584   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 629,377      $ 6,419,125   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,536,212      $ 27,359,450        860,460      $ 12,951,010   

Shares issued through acquisition

      198,591        3,526,980        0        0   

Reinvestments

      513,887        9,136,910        430,662        6,477,159   

Redemptions

      (2,501,799 )      (44,644,776 )      (3,798,136 )      (57,416,970 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (253,109 )    $ (4,621,436 )      (2,507,014 )    $ (37,988,801 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      785,737      $ 13,953,225        1,135,489      $ 16,721,661   

Shares issued through acquisition

      8,955,697        158,515,826        0        0   

Reinvestments

      266,808        4,727,843        231,011        3,462,856   

Redemptions

      (2,028,459 )      (36,014,436 )      (3,267,012 )      (49,400,703 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      7,979,783      $ 141,182,458        (1,900,512 )    $ (29,216,186 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      182,501      $ 3,237,776        35,456      $ 535,428   

Shares issued through acquisition

      1,102,678        19,528,426        0        0   

Reinvestments

      12,651        224,300        11,316        169,733   

Redemptions

      (158,317 )      (2,829,568 )      (158,109 )      (2,406,506 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      1,139,513      $ 20,160,934        (111,337 )    $ (1,701,345 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 156,721,956        $ (68,906,332 ) 
    

 

 

      

 

 

  

 

(a) See Note 8 of the Notes to Financial Statements.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Financial Highlights (a)

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 16.63      $ 13.91       $ 15.44       $ 13.48       $ 9.90       $ 17.50   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (b)

      0.19        0.26         0.25         0.20         0.19         0.30   

Net realized and unrealized gain (loss) on investments

      1.15        2.71         (1.48 )       1.97         3.68         (7.06 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.34        2.97         (1.23 )       2.17         3.87         (6.76 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.38 )      (0.25 )       (0.30 )       (0.21 )       (0.29 )       (0.31 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.53 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.38 )      (0.25 )       (0.30 )       (0.21 )       (0.29 )       (0.84 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 17.59      $ 16.63       $ 13.91       $ 15.44       $ 13.48       $ 9.90   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      8.03  (d)      21.52         (8.24 )       16.23         40.31         (40.37 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.65  (e)      0.62         0.62         0.61         0.64         0.61   

Net ratio of expenses to average net assets (%) (f)

      0.64  (e)      0.62         0.62         0.61         0.64         0.61   

Ratio of net investment income to average net assets (%)

      2.19  (e)      1.74         1.65         1.45         1.68         2.16   

Portfolio turnover rate (%)

      9  (d)      13         12         18         14         20   

Net assets, end of period (in millions)

    $ 430.2      $ 411.0       $ 378.6       $ 458.8       $ 451.6       $ 349.0   
     Class B  
     Six Months
Ended
June 30,
2013		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 16.54      $ 13.83       $ 15.36       $ 13.42       $ 9.86       $ 17.44   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (b)

      0.19        0.22         0.21         0.16         0.16         0.26   

Net realized and unrealized gain (loss) on investments

      1.11        2.70         (1.47 )       1.96         3.66         (7.04 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.30        2.92         (1.26 )       2.12         3.82         (6.78 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.32 )      (0.21 )       (0.27 )       (0.18 )       (0.26 )       (0.27 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.53 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.32 )      (0.21 )       (0.27 )       (0.18 )       (0.26 )       (0.80 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 17.52      $ 16.54       $ 13.83       $ 15.36       $ 13.42       $ 9.86   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      7.86  (d)      21.17         (8.40 )       15.93         39.80         (40.56 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.90  (e)      0.87         0.87         0.86         0.89         0.86   

Net ratio of expenses to average net assets (%) (f)

      0.89  (e)      0.87         0.87         0.86         0.89         0.86   

Ratio of net investment income to average net assets (%)

      2.12  (e)      1.49         1.40         1.19         1.42         1.91   

Portfolio turnover rate (%)

      9  (d)      13         12         18         14         20   

Net assets, end of period (in millions)

    $ 405.6      $ 250.9       $ 236.1       $ 265.5       $ 225.9       $ 166.1   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Financial Highlights (a)

 

Selected per share data  
     Class E  
     Six Months
Ended
June 30,
2013		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 16.56      $ 13.85       $ 15.38       $ 13.43       $ 9.86       $ 17.44   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (b)

      0.22  (g)      0.24         0.23         0.18         0.17         0.28   

Net realized and unrealized gain (loss) on investments

      1.11        2.69         (1.48 )       1.96         3.67         (7.05 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.33        2.93         (1.25 )       2.14         3.84         (6.77 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.35 )      (0.22 )       (0.28 )       (0.19 )       (0.27 )       (0.28 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (0.53 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.35 )      (0.22 )       (0.28 )       (0.19 )       (0.27 )       (0.81 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 17.54      $ 16.56       $ 13.85       $ 15.38       $ 13.43       $ 9.86   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      7.98  (d)      21.35         (8.39 )       16.08         40.07         (40.49 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.80  (e)      0.77         0.77         0.76         0.79         0.76   

Net ratio of expenses to average net assets (%) (f)

      0.79  (e)      0.77         0.77         0.76         0.79         0.76   

Ratio of net investment income to average net assets (%)

      2.46  (e)(g)      1.60         1.51         1.30         1.54         2.01   

Portfolio turnover rate (%)

      9  (d)      13         12         18         14         20   

Net assets, end of period (in millions)

    $ 32.0      $ 11.3       $ 11.0       $ 14.6       $ 14.5       $ 11.2   

 

(a) See Note 8 of the Notes to Financial Statements.
(b) Per share amounts based on average shares outstanding during the period.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(g) Net investment income per share and the ratio of net investment income to average net assets for Class E during 2013 were impacted by the timing of dividends received from the Portfolio’s investments and the assets received through a merger with the Metropolitan Series Fund Oppenheimer Global Equity Portfolio.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Notes to Financial Statements—June 30, 2013

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio) (the “Portfolio”), which is diversified. As of close of business April 26, 2013, the Oppenheimer Global Equity Portfolio of the Metropolitan Series Fund (“MSF Oppenheimer Global Equity Predecessor”) merged with and into the Portfolio (see Note 8). The MSF Oppenheimer Global Equity Predecessor was the accounting survivor of the merger with and into the Portfolio. OppenheimerFunds, Inc. succeeded Templeton Global Advisors Limited as the subadviser to the Portfolio and the name of the Portfolio was changed from the Met/Templeton Growth Portfolio to the Oppenheimer Global Equity Portfolio. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board.

The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third

 

MIST-13

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Notes to Financial Statements—June 30, 2013—(Continued)

 

party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its

 

MIST-14

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Notes to Financial Statements—June 30, 2013—(Continued)

 

taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFICs) and commission recapture. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $6,197,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

 

MIST-15

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Notes to Financial Statements—June 30, 2013—(Continued)

 

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 71,775,354       $ 0       $ 92,328,661   

The Portfolio engaged in security transactions with other accounts managed by OppenheimerFunds, Inc. that amounted to $438,135 in purchases and $228,666 in sales of investments which are included above.

With respect to the Portfolio’s merger with MSF Oppenheimer Global Equity Predecessor (see Note 8) on April 26, 2013, the Portfolio acquired securities with a cost of $163,476,576 that are not included in the above non-U.S. Government purchases value.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general

 

MIST-16

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Notes to Financial Statements—June 30, 2013—(Continued)

 

management and administration of the Trust. The Adviser has entered into a subadvisory agreement with OppenheimerFunds, Inc. (the “Subadviser”), effective April 29, 2013, for investment subadvisory services in connection with the investment management of the Portfolio. Prior to April 29, 2013, the Adviser had a subadvisory agreement with Templeton Global Advisers Limited for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$2,231,512      0.700 %    First $100 million
     0.680 %    $100 million to $250 million
     0.670 %    $250 million to $500 million
     0.660 %    $500 million to $750 million
     0.650 %    Over $750 million

Prior to April 29, 2013, the MSF Oppenheimer Global Equity Predecessor paid the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

% per annum

    Average Daily Net Assets
0.900%    Of the first $50 million
0.550%    Of the next $50 million
0.500%    Of the next $400 million
0.475%    On amounts in excess of $500 Million

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.040%    $462.5 million to $500 million
0.030%    $500 million to $550 million
0.070%    $550 million to $750 million
0.060%    $750 million to $1.05 billion
0.085%    Over $1.05 billion

Amounts waived for the period ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

 

MIST-17

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Notes to Financial Statements—June 30, 2013—(Continued)

 

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

7. Income Tax Information

The income tax information in this note does not reflect the acquisition which took place on April 26, 2013. (See Note 8 for further information)

The tax character of distributions paid by the MSF Oppenheimer Global Equity Predecessor, the accounting survivor, for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

     

Long-Term Capital Gains

      Total  

2012

    2011      2012      2011      2012      2011  
$10,109,748    $ 13,640,119       $ —       $ —       $ 10,109,748       $ 13,640,119   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Other
Accumulated
Capital Losses		     Total  
$10,482,640    $ —       $ 134,969,208       $ (68,143,676 )    $ (20,314,160 )    $ 56,994,012   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the post-enactment accumulated short-term capital losses were $5,721,768 and the accumulated long-term capital losses were $14,592,392. The pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/19

    Expiring
12/31/18		      Expiring
12/31/17		      Total  
$14,078,843    $ 36,289,723       $ 17,775,110       $ 68,143,676   

8. Acquisition

At the close of business on April 26, 2013, the Portfolio with aggregate Class A, Class B and Class E net assets of $3,526,980, $158,515,826 and $19,528,426, respectively, acquired all the assets and liabilities of the Oppenheimer Global Equity Portfolio of the Metropolitan Series Fund (the “MSF Oppenheimer Global Equity Predecessor”). The MSF Oppenheimer Global Equity Predecessor was the accounting survivor of the merger for financial reporting purposes, therefore, the financial statements presented for the Portfolio reflect the historical results of MSF Oppenheimer Global Equity Predecessor prior to the acquisition and the combined results thereafter. The number and value of shares issued by the Portfolio were in amounts equal to the number and value of shares held by MSF Oppenheimer Global Equity Predecessor shareholders as of the acquisition date. The Met/Templeton Growth Portfolio was the tax survivor.

 

MIST-18

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Notes to Financial Statements—June 30, 2013—(Continued)

 

The acquisition was accomplished by a tax-free exchange of 427,378 Class A shares of the Portfolio (valued at $3,526,980) for 198,591 Class A shares of MSF Oppenheimer Global Equity Predecessor, 19,311,254 Class B shares of the Portfolio (valued at $158,515,826) for 8,955,697 of Class B shares of MSF Oppenheimer Global Equity Predecessor and 2,366,957 Class E shares of the Portfolio (valued at $19,528,426) for 1,102,678 Class E shares of MSF Oppenheimer Global Equity Predecessor. Each shareholder of MSF Oppenheimer Global Equity Predecessor received shares of the Portfolio with the same class designation and at the respective Class NAV, as determined at the close of business on April 26, 2013. The transaction was part of a restructuring designed to eliminate the offering of overlapping Portfolios in the MetLife, Inc. families of funds with similar investment objectives and similar investment strategies that serve as funding vehicles for insurance contracts that are offered by affiliates of MetLife. Some of the investments held by the Portfolio may have been purchased or sold prior to the acquisition for the purpose of complying with the anticipated investment policies or limitations of the Portfolio after the acquisition. If such purchases or sales occurred, the transaction costs were borne by the Portfolio. All other costs associated with the merger were not borne by the shareholders of either portfolio. MSF Oppenheimer Global Equity Predecessor’s net assets on April 26, 2013, were $435,783,822, $262,590,705 and $11,704,411 for Class A, Class B and Class E shares, respectively, including investments valued at $707,687,652 with a cost basis of $519,329,715. For financial reporting purposes, assets received, liabilities assumed and shares issued by the Portfolio were recorded at fair value; however, the cost basis of the investments received by the Portfolio from MSF Oppenheimer Global Equity Predecessor were carried forward to align ongoing reporting of the Portfolio’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The Portfolio acquired $79,245,462 in capital loss carryforwards from MSF Oppenheimer Global Equity Predecessor.

The aggregate net assets of the Portfolio immediately after the acquisition were $891,650,170, which included $3,849,213 of acquired net unrealized appreciation on investments and foreign currency transactions.

Assuming the acquisition had been completed on January 1, 2013, the Portfolio’s pro-forma results of operations for the period ended June 30, 2013 are as follows:

 

Net Investment income

    $ 10,601,717 (a) 

Net realized and unrealized gain on investments

    $ 75,418,655 (b) 
  

 

 

  

Net increase in net assets from operations

    $ 86,020,372   
  

 

 

  

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the pre-merger Portfolio that have been included in the Portfolio’s Statement of Operations since April 26, 2013.

 

(a) $8,299,305, as reported June 30, 2013, plus $2,384,382 Portfolio pre-merger, minus $183,706 in higher net advisory fees, plus $101,736 of pro-forma eliminated other expenses.
(b) $171,287,854 Unrealized appreciation, as reported June 30, 2013, minus $176,142,538 pro-forma December 31, 2012 Unrealized appreciation, plus $17,468,636 Net realized gain as reported, plus $62,804,703 in Net realized gain from the Portfolio pre-merger.

 

MIST-19

Met Investors Series Trust

Shareholder Votes (Unaudited)

 

At a Joint Special Meeting of Shareholders, held February 22, 2013, the shareholders of the portfolio voted for the following proposal:

 

     For      Against      Abstain      Total  
To approve an Agreement and Plan of Reorganization (the “Plan”) providing for the acquisition of all of the assets of Oppenheimer Global Equity Portfolio (“MSF Portfolio”) by Met/Templeton Growth Portfolio (to be renamed Oppenheimer Global Equity Portfolio) (“MIST Portfolio”), a series of Met Investors Series Trust, in exchange for shares of MIST Portfolio and the assumption by MIST Portfolio of the liabilities of MSF Portfolio. The Plan also provides for the distribution of these shares of MIST Portfolio to shareholders of MSF Portfolio in liquidation and subsequent termination of MSF Portfolio.      36,318,296.138         1,735,012.970         2,959,373.462         41,012,682.570   

 

MIST-20

Met Investors Series Trust

Oppenheimer Global Equity Portfolio (formerly, Met/Templeton Growth Portfolio)

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of Oppenheimer Global Equity Portfolio (formerly Met/Templeton Growth Portfolio) and the Board of Trustees of Met Investors Series Trust:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the Oppenheimer Global Equity Portfolio (formerly Met/Templeton Growth Portfolio), one of the portfolios constituting the Met Investors Series Trust, (the “Trust”) as of June 30,2013, and the related statement of operations for the six months then ended, the statement of changes in net assets for the six months ended June 30, 2013 and the year ended December 31, 2012, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of June 30, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Oppenheimer Global Equity Portfolio (formerly Met/Templeton Growth Portfolio) of the Met Investors Series Trust, as of June 30, 2013, the results of its operations for the six months then ended, the changes in its net assets for the six months ended June 30, 2013 and the year ended December 31, 2012, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche, LLP

Boston, Massachusetts

August 23, 2013

 

MIST-21

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Managed by Pacific Investment Management Company LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the PIMCO Inflation Protected Bond Portfolio returned -7.97%, -8.08%, and -7.98%, respectively. The Portfolio’s benchmark, the Barclays U.S. TIPS Index1, returned -7.39%.

MARKET ENVIRONMENT / CONDITIONS

Treasury Inflation-Protected Securities (TIPS) returned -7.39 percent during the first half of 2013, as represented by the Barclays U.S. TIPS Index. TIPS sold off across the entire yield curve, with rates rising more than 100 basis points (bps) along the 5-10 year portion of the curve, as comments from central bankers on possible tapering of asset purchases caused a broad market sell-off. In addition, inflation expectations fell, causing breakeven levels to narrow over the first half of the year.

U.S. equity indices reached new highs in the first quarter as signs of renewed momentum in the world’s largest economy fueled risk appetite. Investors discounted negative fiscal policy developments—including Congress’ failure to reach a deal on sequestration—and instead focused on positive news out of the housing and labor markets. However, conditions in financial markets deteriorated in the second quarter as investors reacted to signals by the Federal Reserve (“Fed”) that it would begin to slow the pace of asset purchases later this year if its forecasts are met. The shift in tone fueled a broad-based sell-off of fixed income assets, undermining market liquidity, and sending yields higher across the risk spectrum. While patchy, economic activity in aggregate looks to be on track so far in 2013, with the labor market generating an average of 200,000 new jobs a month since the start of the year, there is concern that the recent deterioration in financial conditions will adversely impact the real economy. Thirty-year fixed mortgage rates rose over half a percentage point in June to the highest level since August 2011. While it will take time before the effect of higher rates on housing demand is fully known, the notable decline in mortgage refinancing applications in June offers an early clue.

In Europe, a botched rescue of the Cypriot financial system set new precedents in the eurozone’s four-year old debt crisis. Although market reaction to the latest flare-up was relatively calm, the worry is that such precedents may engender instability and handicap leaders’ efforts to resolve future crises. Concurrently, the European Central Bank (ECB) remains committed to keeping rates low for as long as necessary to facilitate governments’ implementation of structural economic reforms. The ECB lowered its benchmark interest rate to 0.5 percent during the second quarter as eurozone gross domestic product (GDP) contracted in the first three months of the year, and the unemployment rate continued to reach new highs. Strict austerity programs are likely exacerbating the situation and European governments have responded by pushing for a relaxation of budget targets. The question now is whether countries can succeed in spreading austerity out over a longer time horizon without abandoning the fiscal sustainability that markets ultimately demand.

Across the Pacific, Japan’s new government unveiled an aggressive fiscal stimulus package designed to boost employment and growth. The Bank of Japan (BoJ) stunned markets by introducing a host of new monetary measures aimed at ending the country’s chronic history of deflation. Along with a potent dose of fiscal stimulus—affectionately dubbed “Abenomics” after the country’s new Prime Minister—the combined measures constitute one of the boldest economic policy experiments in the country’s history.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio’s overweight duration position within TIPS detracted from performance as rates rose over the period and the sector underperformed like-duration Treasuries. A focus on the 5-15 year portion of the curve was negative for performance as these maturities underperformed the longer-end of the TIPS yield curve. Tactical exposure to U.K. inflation-linked bonds (ILBs) contributed to returns as the U.K. real yield curve fell over the holding period. Modest exposure to non-agency mortgage-backed securities added to returns as they benefited from the ongoing housing recovery. Exposure to select locally denominated debt in Brazil, predominately through the use of interest rate swaps, detracted from returns as rates rose on the Brazilian yield curve. Finally, emerging market currency positioning was negative for performance as most currencies depreciated versus the U.S. dollar during the first half of the year.

 

MIST-1

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Managed by Pacific Investment Management Company LLC

Portfolio Manager Commentary*—(Continued)

 

At period end, the Portfolio remained in risk reduction mode while preferring liquidity and high quality income over price appreciation, as risk premiums still appeared richly priced relative to our outlook. We maintained a slight overweight to duration, and within TIPS, remained focused on intermediate maturities to capture higher real yields and attractive roll-down. At period end, we also remained underweight the long end of the real yield curve. We continue to hold Mexican ILBs and have added Brazilian ILB exposure given stronger sovereign balance sheets and higher real yields in both of these countries.

Mihir P. Worah

Portfolio Manager

Pacific Investment Management Company LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. TIPS INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year        Since Inception2  
PIMCO Inflation Protected Bond Portfolio                           

Class A

        -7.97           -4.59           4.99           5.40           —   

Class B

        -8.08           -4.76           4.73           5.41           —   

Class E

        -7.98           -4.66           4.84           —           5.81   
Barclays U.S. TIPS Index        -7.39           -4.78           4.41           5.19           —   

1 The Barclays U.S. TIPS Index is an unmanaged market index comprised of all U.S. Treasury Inflation Protected Securities rated investment grade (Baa3 or better), have at least one year to final maturity, and at least $250 million par amount outstanding.

2 Inception of Class A and Class B shares is 5/1/2003. Inception of Class E shares is 5/1/2006. Index returns are based on an inception date of 5/1/2003.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

         
% of
Net Assets		  
U.S. Treasury Inflation Indexed Notes      54.2   
U.S. Treasury Inflation Indexed Bonds      39.3   
Bundesrepublik Deutschland Bundesobligation Inflation Linked Bond      1.6   
Commonwealth Bank of Australia      1.3   
Dexia Credit Local S.A.      1.0   
Italy Buoni Ordinari del Tesoro BOT      1.0   
Intesa Sanpaolo S.p.A.      0.9   
Australia Government Bonds      0.9   
Instituto de Credito Oficial      0.8   
Banc of America Large Loan, Inc.      0.7   

 

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
U.S. Treasury & Government Agencies      80.9   
Corporate Bonds & Notes      6.7   
Foreign Government      5.4   
Mortgage-Backed Securities      4.3   
Asset-Backed Securities      2.3   
Floating Rate Loans      0.4   

 

 

MIST-3

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

 

Understanding Your Portfolio’s Expenses

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

PIMCO Inflation Protected Bond Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

    Actual      0.56 %     $ 1,000.00         $ 920.30         $ 2.67   
   Hypothetical*      0.56 %     $ 1,000.00         $ 1,022.02         $ 2.81   

Class B

    Actual      0.81 %     $ 1,000.00         $ 919.20         $ 3.85   
   Hypothetical*      0.81 %     $ 1,000.00         $ 1,020.78         $ 4.06   

Class E

    Actual      0.71 %     $ 1,000.00         $ 920.20         $ 3.38   
   Hypothetical*      0.71 %     $ 1,000.00         $ 1,021.27         $ 3.56   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

U.S. Treasury & Government Agencies—96.1% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage - Backed—1.7%

  

Fannie Mae 30 Yr. Pool
3.000%, TBA (a)

     14,000,000      $ 13,678,437   

Fannie Mae ARM Pool
1.374%, 07/01/44 (b)

     31,254        31,741   

1.374%, 09/01/44 (b)

     53,356        54,201   

2.492%, 11/01/34

     1,477,097        1,589,988   

Fannie Mae REMICS (CMO)
0.253%, 07/25/37 (b)

     1,230,241        1,162,308   

0.262%, 12/25/36 (b)

     120,079        113,456   

0.343%, 08/25/34 (b)

     183,857        179,962   

0.543%, 07/25/37 (b)

     77,738        77,999   

0.573%, 07/25/37 (b)

     477,279        479,522   

0.873%, 02/25/41 (b)

     5,829,833        5,883,275   

2.571%, 05/25/35 (b)

     776,016        794,424   

Fannie Mae Whole Loan (CMO)
0.543%, 05/25/42 (b)

     97,046        97,222   

Freddie Mac ARM Non-Gold Pool
2.367%, 01/01/34

     146,780        156,475   

Freddie Mac REMICS (CMO)
0.343%, 10/15/20 (b)

     893,757        893,307   

0.423%, 02/15/19 (b)

     2,100,924        2,103,271   

0.643%, 08/15/33 (b)

     5,609,152        5,645,269   

Freddie Mac Strips (CMO)
0.643%, 09/15/42 (b)

     11,520,391        11,596,555   

Freddie Mac Structured Pass-Through Securities
0.453%, 08/25/31 (b)

     73,820        72,011   

Freddie Mac Structured Pass-Through Securities (CMO)
1.374%, 10/25/44 (b)

     4,393,998        4,436,651   

1.374%, 02/25/45 (b)

     1,321,882        1,340,283   

Ginnie Mae (CMO)
0.492%, 03/20/37 (b)

     7,024,663        7,047,697   
   

 

 

  
      57,434,054   
   

 

 

  

Federal Agencies—0.8%

    

Federal Home Loan Mortgage Corp.
2.500%, 10/02/19

     18,100,000        18,299,698   

Federal National Mortgage Association
1.250%, 03/14/14

     10,700,000        10,778,099   
   

 

 

  
      29,077,797   
   

 

 

  

U.S. Treasury—93.6%

    

U.S. Treasury Inflation Indexed Bonds
0.125%, 01/15/23 (c)

     213,688,591        207,194,381   

0.625%, 02/15/43 (c) (d)

     46,838,409        39,391,851   

0.750%, 02/15/42 (c)

     17,496,400        15,402,291   

1.750%, 01/15/28 (c)

     161,785,280        181,262,772   

2.000%, 01/15/26 (c) (e) (f)

     99,834,918        115,285,969   

2.125%, 02/15/40

     25,605,706        31,118,922   

2.375%, 01/15/25 (c) (d) (e) (f)

     190,490,906        226,922,292   

2.375%, 01/15/27 (c) (d) (e)

     123,924,194        149,202,747   

2.500%, 01/15/29

     61,086,276        75,346,134   

3.625%, 04/15/28 (c)

     59,849,976        83,065,243   

3.875%, 04/15/29 (c) (d) (e) (f)

     144,358,859        208,057,205   

U.S. Treasury—(Continued)

  

U.S. Treasury Inflation Indexed Notes
0.125%, 04/15/16 (c) (d) (e) (f)

     140,873,500      $ 144,494,372   

0.125%, 04/15/17 (c) (d) (f)

     19,660,974        20,172,474   

0.125%, 01/15/22 (c) (d) (e)

     123,518,574        120,980,638   

0.125%, 07/15/22 (c)

     252,765,416        247,058,478   

0.500%, 04/15/15 (c)

     22,857,456        23,427,110   

0.625%, 07/15/21 (c) (d)

     294,031,852        303,449,986   

1.125%, 01/15/21 (c)

     51,986,079        55,596,668   

1.250%, 04/15/14 (c)

     67,899,177        68,827,495   

1.250%, 07/15/20 (c)

     186,859,506        202,976,138   

1.375%, 07/15/18

     2,695,925        2,944,457   

1.375%, 01/15/20 (d) (e)

     129,524,703        141,121,179   

1.625%, 01/15/15

     83,299,572        86,612,063   

1.625%, 01/15/18 (c)

     18,979,983        20,775,660   

1.875%, 07/15/13

     6,203,939        6,209,268   

1.875%, 07/15/15

     80,936,027        86,038,801   

1.875%, 07/15/19

     2,395,976        2,701,276   

2.000%, 07/15/14

     101,529,395        104,813,262   

2.000%, 01/15/16

     33,390,885        35,861,276   

2.375%, 01/15/17

     3,857,120        4,275,378   

2.625%, 07/15/17 (d) (e) (f)

     141,146,342        160,123,891   

U.S. Treasury Notes
0.250%, 03/31/14 (d)

     93,000        93,062   

0.250%, 04/30/14 (e) (f)

     913,000        913,606   

1.250%, 04/15/14 (f)

     690,000        695,849   

2.000%, 02/15/23

     100,000        96,242   
   

 

 

  
      3,172,508,436   
   

 

 

  

Total U.S. Treasury & Government Agencies (Cost $3,419,532,847)

       3,259,020,287   
   

 

 

  
Corporate Bonds & Notes—7.9%   

Banks—6.8%

    

Achmea Hypotheekbank NV
3.200%, 11/03/14 (144A)

     483,000        501,354   

Ally Financial, Inc.
3.475%, 02/11/14 (b)

     17,600,000        17,668,464   

3.672%, 06/20/14 (b)

     1,300,000        1,311,492   

ANZ National International, Ltd.
0.714%, 08/19/14 (144A) (b)

     5,000,000        5,018,755   

Banco Bradesco S.A. of the Cayman Islands
2.374%, 05/16/14 (144A) (b)

     16,200,000        16,350,725   

Banco Mercantil del Norte S.A.
4.375%, 07/19/15 (144A)

     5,600,000        5,810,000   

Banco Santander Brazil S.A.
2.373%, 03/18/14 (144A) (b)

     1,200,000        1,194,205   

BBVA Bancomer S.A.
6.500%, 03/10/21 (144A)

     5,000,000        5,250,000   

BPCE S.A.
2.375%, 10/04/13 (144A)

     10,740,000        10,787,256   

Commonwealth Bank of Australia
0.553%, 09/17/14 (144A) (b)

     7,500,000        7,521,150   

0.697%, 07/12/13 (144A) (b)

     29,700,000        29,704,782   

0.773%, 06/25/14 (144A) (b) (g)

     7,900,000        7,934,855   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Dexia Credit Local S.A.
0.756%, 04/29/14 (144A) (b)

     32,400,000      $ 32,453,104   

Duesseldorfer Hypothekenbank AG
1.875%, 12/13/13 (EUR)

     13,578,000        17,804,264   

Eksportfinans ASA
2.375%, 05/25/16

     4,100,000        3,925,750   

ICICI Bank, Ltd.
2.023%, 02/24/14 (144A) (b)

     4,500,000        4,508,860   

ING Bank Australia, Ltd.
3.469%, 06/24/14 (AUD) (b)

     800,000        734,740   

Intesa Sanpaolo S.p.A.

    

2.674%, 02/24/14 (144A) (b)

     27,700,000        27,801,770   

3.125%, 01/15/16

     3,200,000        3,146,426   

Morgan Stanley

    

0.579%, 01/09/14 (b)

     8,925,000        8,901,134   

Swedbank AB

    

3.375%, 05/27/14 (EUR)

     6,240,000        8,348,482   

Turkiye Garanti Bankasi A/S

    

2.776%, 04/20/16 (144A) (b)

     1,600,000        1,564,000   

Westpac Banking Corp.

    

2.700%, 12/09/14 (144A)

     4,900,000        5,049,327   

3.585%, 08/14/14 (144A) (g)

     6,700,000        6,933,696   
   

 

 

  
      230,224,591   
   

 

 

  

Diversified Financial Services—0.5%

  

Credit Agricole Home Loan SFH

    

1.026%, 07/21/14 (144A) (b)

     2,000,000        2,007,108   

HSBC Finance Corp.

    

0.527%, 01/15/14 (b)

     3,800,000        3,796,367   

Hyundai Capital Services, Inc.

    

4.375%, 07/27/16 (144A)

     1,700,000        1,802,072   

LeasePlan Corp. NV

    

3.250%, 05/22/14 (EUR)

     6,000,000        8,016,328   

RCI Banque S.A.

    

2.148%, 04/11/14 (144A) (b)

     1,600,000        1,603,310   
   

 

 

  
      17,225,185   
   

 

 

  

Home Builders—0.2%

  

D.R. Horton, Inc.

    

5.250%, 02/15/15

     7,500,000        7,800,000   
   

 

 

  

Media—0.2%

  

DISH DBS Corp.

    

7.000%, 10/01/13

     6,200,000        6,268,200   
   

 

 

  

Oil & Gas—0.1%

  

Petrobras International Finance Co.

    

3.875%, 01/27/16

     4,300,000        4,423,952   
   

 

 

  

Pipelines—0.1%

  

AK Transneft OJSC Via TransCapitalInvest, Ltd.

    

7.700%, 08/07/13 (144A)

     2,700,000        2,708,727   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $265,820,621)

       268,650,655   
   

 

 

  
Foreign Government—6.4%   
Security Description   Principal
Amount*		     Value  

Provincial—0.7%

  

  

New South Wales Treasury Corp.

    

2.500%, 11/20/35 (AUD)

     2,500,000      $ 2,617,099   

2.750%, 11/20/25 (AUD)

     17,300,000        19,562,284   
   

 

 

  
      22,179,383   
   

 

 

  

Sovereign—5.7%

  

Australia Government Bonds

    

3.000%, 09/20/25 (AUD)

     1,997,000        2,350,886   

4.000%, 08/20/20 (AUD)

     16,700,000        28,059,068   

Brazil Notas do Tesouro Nacional Series B

    

6.000%, 08/15/40 (BRL)

     7,600,000        8,575,660   

6.000%, 08/15/50 (BRL)

     5,300,000        6,032,885   

Bundesrepublik Deutschland Bundesobligation Inflation Linked Bond

    

0.750%, 04/15/18 (EUR)

     39,183,000        53,442,696   

Canadian Government Bonds

    

4.250%, 12/01/21 (CAD)

     18,019,644        22,378,146   

Instituto de Credito Oficial

    

1.966%, 03/25/14 (EUR) (b)

     20,800,000        26,846,884   

Italy Buoni Ordinari del Tesoro BOT

    

Zero Coupon, 09/13/13 (EUR)

     24,900,000        32,373,928   

United Kingdom Gilt Inflation Linked

    

2.500%, 07/26/16 (GBP)

     2,800,000        14,511,806   
   

 

 

  
      194,571,959   
   

 

 

  

Total Foreign Government
(Cost $231,417,522)

       216,751,342   
   

 

 

  
Mortgage-Backed Securities—5.1%   

Collateralized Mortgage Obligations—3.3%

  

American General Mortgage Loan Trust

    

5.150%, 03/25/58 (144A) (b)

     2,339,297        2,359,850   

Arran Residential Mortgages Funding plc

    

1.402%, 11/19/47 (144A) (EUR) (b)

     608,555        792,901   

Banc of America Funding Corp.

    

2.701%, 02/20/36 (b)

     2,085,002        2,050,606   

Banc of America Mortgage Securities, Inc.

    

2.798%, 06/25/35 (b)

     521,389        478,835   

3.110%, 09/25/35 (b)

     294,778        268,555   

4.871%, 11/25/34 (b)

     123,021        118,992   

6.500%, 09/25/33

     74,640        76,944   

BCAP LLC Trust

    

5.340%, 03/26/37 (144A) (b)

     2,617,761        2,400,685   

Bear Stearns Adjustable Rate Mortgage Trust

    

2.240%, 08/25/35 (b)

     222,213        219,753   

2.600%, 03/25/35 (b)

     1,576,502        1,553,763   

2.793%, 03/25/35 (b)

     9,583        9,475   

2.836%, 03/25/35 (b)

     802,466        731,804   

3.148%, 01/25/35 (b)

     3,341,561        3,279,779   

Bear Stearns ALT-A Trust

    

0.353%, 02/25/34 (b)

     337,012        327,641   

2.864%, 09/25/35 (b)

     2,219,306        1,818,690   

Chase Mortgage Finance Corp.

    

2.758%, 02/25/37 (b)

     256,132        248,936   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

Citigroup Mortgage Loan Trust, Inc.

    

2.270%, 09/25/35 (b)

     349,097      $ 341,441   

2.290%, 09/25/35 (b)

     325,338        315,853   

2.540%, 05/25/35 (b)

     72,649        70,318   

2.570%, 10/25/35 (b)

     5,440,043        5,216,262   

Countrywide Alternative Loan Trust

    

0.372%, 02/20/47 (b)

     1,577,697        1,045,879   

0.373%, 05/25/47 (b)

     541,239        410,333   

0.473%, 12/25/35 (b)

     45,036        36,495   

5.500%, 06/25/35

     1,200,000        1,076,828   

Countrywide Home Loan Mortgage
Pass-Through Trust

    

0.483%, 04/25/35 (b)

     1,253,600        1,060,157   

0.533%, 06/25/35 (144A) (b)

     219,644        197,441   

2.778%, 11/19/33 (b)

     50,009        47,921   

2.963%, 08/25/34 (b)

     354,845        306,307   

4.835%, 11/20/34 (b)

     749,425        684,831   

Deutsche ALT-A Securities, Inc. Alternate Loan Trust

    

0.293%, 10/25/36 (b)

     52,736        26,258   

5.869%, 10/25/36

     932,713        681,707   

5.886%, 10/25/36

     932,713        682,437   

First Horizon Alternative Mortgage Securities
2.334%, 06/25/34 (b)

     436,424        428,111   

Granite Mortgages plc
0.889%, 09/20/44 (GBP) (b)

     960,649        1,427,494   

Greenpoint Mortgage Funding Trust
0.273%, 10/25/46 (b)

     58        57   

0.413%, 06/25/45 (b)

     511,357        451,608   

0.463%, 11/25/45 (b)

     227,210        187,329   

GSR Mortgage Loan Trust
2.664%, 09/25/35 (b)

     773,103        759,469   

2.816%, 05/25/35 (b)

     981,870        877,114   

3.025%, 01/25/35 (b)

     618,419        601,028   

5.099%, 11/25/35 (b)

     1,589,622        1,442,648   

Harborview Mortgage Loan Trust
0.412%, 05/19/35 (b)

     130,280        106,955   

0.472%, 02/19/36 (b)

     267,723        191,763   

Holmes Master Issuer plc
1.561%, 10/15/54 (144A) (EUR) (b)

     12,553,335        16,458,540   

Indymac Index Mortgage Loan Trust
2.845%, 11/25/35 (b)

     1,569,704        1,340,131   

JPMorgan Mortgage Trust
2.240%, 07/27/37 (144A) (b)

     1,491,659        1,282,826   

2.858%, 07/25/35 (b)

     492,452        491,916   

2.974%, 07/25/35 (b)

     500,051        491,965   

3.010%, 08/25/35 (b)

     896,625        823,128   

3.094%, 08/25/35 (b)

     674,914        657,723   

4.480%, 02/25/35 (b)

     905,648        905,178   

5.119%, 06/25/35 (b)

     2,472,143        2,491,235   

5.207%, 09/25/35 (b)

     273,236        265,684   

Master Adjustable Rate Mortgages Trust
2.301%, 12/25/33 (b)

     351,499        347,254   

2.626%, 11/21/34 (b)

     561,069        572,588   

Mellon Residential Funding Corp.
0.633%, 12/15/30 (b)

     71,140        68,051   

Collateralized Mortgage Obligations—(Continued)

  

Mellon Residential Funding Corp.
0.893%, 11/15/31 (b)

     493,117      $ 480,852   

Merrill Lynch Mortgage Investors, Inc.
5.003%, 12/25/35 (b)

     527,945        487,414   

MLCC Mortgage Investors, Inc.
0.443%, 11/25/35 (b)

     257,580        237,813   

1.193%, 10/25/35 (b)

     433,023        426,044   

1.664%, 10/25/35 (b)

     1,769,460        1,709,751   

National Credit Union Administration Guaranteed Notes
0.643%, 10/07/20 (b)

     4,061,855        4,082,164   

0.753%, 12/08/20 (b)

     5,800,694        5,836,949   

Permanent Master Issuer plc
1.511%, 07/15/42 (144A) (EUR) (b)

     1,500,000        1,963,482   

RBSSP Resecuritization Trust
2.590%, 07/26/45 (144A) (b)

     10,590,032        10,986,321   

Residential Accredit Loans, Inc.
0.493%, 08/25/35 (b)

     221,285        172,388   

1.528%, 09/25/45 (b)

     228,314        189,900   

Sequoia Mortgage Trust
0.392%, 07/20/36 (b)

     2,257,743        1,994,458   

0.892%, 10/19/26 (b)

     130,103        128,171   

Structured Adjustable Rate Mortgage Loan Trust
1.563%, 01/25/35 (b)

     175,827        133,383   

2.578%, 02/25/34 (b)

     308,497        304,767   

5.500%, 12/25/34 (b)

     664,779        639,718   

Structured Asset Mortgage Investments, Inc.
0.383%, 06/25/36 (b)

     134,975        105,724   

0.403%, 05/25/46 (b)

     62,001        38,207   

0.442%, 07/19/35 (b)

     324,345        285,868   

0.852%, 10/19/34 (b)

     157,410        154,354   

Structured Asset Securities Corp.
2.718%, 10/28/35 (144A) (b)

     177,601        166,400   

Swan Trust
4.110%, 04/25/41 (AUD) (b)

     386,628        349,322   

TBW Mortgage Backed Pass-Through Certificates
6.015%, 07/25/37

     403,474        340,481   

Thornburg Mortgage Securities Trust
6.098%, 09/25/37 (b)

     2,992,283        3,090,517   

WaMu Mortgage Pass-Through Certificates
0.453%, 11/25/45 (b)

     243,338        216,373   

0.483%, 10/25/45 (b)

     1,535,900        1,388,265   

0.939%, 05/25/47 (b)

     621,297        523,449   

0.979%, 12/25/46 (b)

     143,453        125,785   

1.169%, 08/25/46 (b)

     10,541,878        8,593,559   

1.174%, 02/25/46 (b)

     248,097        222,448   

1.368%, 11/25/42 (b)

     35,230        32,232   

2.470%, 07/25/46 (b)

     959,018        879,280   

2.470%, 11/25/46 (b)

     343,952        302,332   

2.862%, 12/25/35 (b)

     361,162        329,133   

5.273%, 08/25/35 (b)

     331,110        317,889   

Wells Fargo Mortgage Backed Securities Trust
2.626%, 09/25/34 (b)

     701,052        707,761   

2.649%, 10/25/35 (b)

     32,602        31,658   

2.696%, 11/25/34 (b)

     367,207        365,856   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

Wells Fargo Mortgage Backed Securities Trust
2.720%, 04/25/36 (b)

     1,502,413      $ 1,403,257   

2.770%, 03/25/36 (b)

     245,031        231,338   

5.592%, 04/25/36 (b)

     621,598        592,115   
   

 

 

  
      112,174,650   
   

 

 

  

Commercial Mortgage-Backed Securities—1.8%

  

Banc of America Large Loan, Inc.
2.493%, 11/15/15 (144A) (b)

     20,805,240        20,821,385   

5.665%, 02/17/51 (144A) (b)

     1,000,000        1,138,400   

5.698%, 06/24/50 (144A) (b)

     1,700,000        1,923,669   

Banc of America Merrill Lynch Commercial Mortgage, Inc.
0.363%, 06/10/49 (144A) (b)

     56,567        56,446   

5.857%, 06/10/49 (b)

     1,156,567        1,288,286   

5.935%, 02/10/51 (b)

     1,100,000        1,241,838   

Commercial Mortgage Pass-Through Certificates
3.156%, 07/10/46 (144A)

     2,262,339        2,350,683   

Credit Suisse Mortgage Capital Certificates
5.383%, 02/15/40 (144A)

     1,600,000        1,752,371   

5.467%, 09/18/39 (144A) (b)

     1,891,942        2,083,847   

Eclipse, Ltd.
0.674%, 01/25/20 (GBP) (b)

     701,833        1,019,417   

GS Mortgage Securities Corp. II
1.103%, 03/06/20 (144A) (b)

     461,633        462,720   

1.260%, 03/06/20 (144A) (b)

     3,600,000        3,609,069   

4.592%, 08/10/43 (144A)

     25,000        26,853   

JPMorgan Chase Commercial Mortgage Securities Corp.
4.654%, 01/12/37

     368,245        369,242   

5.794%, 02/12/51 (b)

     1,500,000        1,707,185   

Merrill Lynch/Countrywide Commercial Mortgage Trust
5.700%, 09/12/49

     5,400,000        6,048,043   

RBSCF Trust
6.208%, 12/16/49 (144A) (b)

     2,600,000        2,880,629   

Vornado DP LLC
4.004%, 09/13/28 (144A)

     7,000,000        7,295,330   

Wachovia Bank Commercial Mortgage Trust
0.273%, 06/15/20 (144A) (b)

     2,037,990        2,020,462   

5.088%, 08/15/41 (b)

     1,500,000        1,546,218   
   

 

 

  
      59,642,093   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $163,892,184)

       171,816,743   
   

 

 

  
Asset-Backed Securities—2.7%   

Asset-Backed - Credit Card—0.2%

    

Citibank Omni Master Trust
2.943%, 08/15/18 (144A) (b)

     7,100,000        7,291,437   
   

 

 

  

Asset-Backed - Home Equity—0.2%

    

Asset Backed Funding Certificates
0.893%, 06/25/34 (b)

     664,229        622,416   

Asset-Backed - Home Equity—(Continued)

  

Bear Stearns Asset Backed Securities Trust
0.853%, 10/25/32 (b)

     19,464      $ 18,064   

1.193%, 10/25/37 (b)

     3,005,895        2,592,773   

Carrington Mortgage Loan Trust
0.513%, 10/25/35 (b)

     144,151        143,532   

First NLC Trust
0.263%, 08/25/37 (144A) (b)

     1,567,873        765,423   

HSBC Home Equity Loan Trust
0.342%, 03/20/36 (b)

     1,839,960        1,823,089   

HSI Asset Securitization Corp. Trust
0.243%, 10/25/36 (b)

     9,115        4,382   

Soundview Home Loan Trust
0.253%, 11/25/36 (144A) (b)

     62,914        23,235   
   

 

 

  
      5,992,914   
   

 

 

  

Asset-Backed - Other—1.6%

    

Alzette European CLO S.A.
0.590%, 12/15/20 (144A) (b)

     430,554        427,281   

American Money Management Corp.
0.498%, 05/03/18 (144A) (b)

     51,533        51,432   

Aquilae CLO plc
0.581%, 01/17/23 (EUR) (b)

     3,596,683        4,579,489   

ARES CLO, Ltd.
0.502%, 03/12/18 (144A) (b)

     1,356,140        1,348,519   

Conseco Finance Securitizations Corp.
6.681%, 12/01/33 (b)

     2,788,378        2,865,117   

Countrywide Asset-Backed Certificates
0.373%, 07/25/36 (b)

     4,266,141        4,136,894   

0.443%, 04/25/36 (b)

     257,353        249,644   

Credit-Based Asset Servicing and Securitization LLC
0.313%, 07/25/37 (144A) (b)

     173,774        87,653   

CSAB Mortgage Backed Trust
5.720%, 09/25/36

     1,058,896        858,568   

Duane Street CLO
0.525%, 11/08/17 (144A) (b)

     155,015        154,825   

Equity One ABS, Inc.
0.493%, 04/25/34 (b)

     115,686        95,488   

Gallatin Funding, Ltd.
0.525%, 08/15/17 (144A) (b)

     129,622        129,266   

Harbourmaster CLO, Ltd.
0.469%, 06/15/20 (EUR) (b)

     371,089        476,350   

Harvest CLO S.A.
0.825%, 03/29/17 (EUR) (b)

     137,151        178,018   

Hillmark Funding
0.524%, 05/21/21 (144A) (b)

     15,600,000        15,091,565   

JPMorgan Mortgage Acquisition Corp.
0.253%, 03/25/47 (b)

     388,114        362,370   

Landmark CDO, Ltd.
0.575%, 06/01/17 (144A) (b)

     701,013        699,552   

Magi Funding plc
0.578%, 04/11/21 (144A) (EUR) (b)

     1,860,163        2,365,900   

Morgan Stanley IXIS Real Estate Capital Trust
0.243%, 11/25/36 (b)

     875        370   

Nautique Funding, Ltd.
0.527%, 04/15/20 (144A) (b)

     962,297        934,039   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Asset-Backed Securities—(Continued)

 

Security Description       
    
Principal
Amount*		     Value  

Asset-Backed - Other—(Continued)

  

Navigare Funding CLO, Ltd.
0.534%, 05/20/19 (144A) (b)

     158,581      $ 157,411   

NYLIM Flatiron CLO, Ltd.
0.495%, 08/08/20 (144A) (b)

     600,000        588,800   

Park Place Securities, Inc.
0.453%, 09/25/35 (b)

     30,826        29,882   

1.213%, 12/25/34 (b)

     2,216,901        2,213,645   

Penta CLO S.A.
0.518%, 06/04/24 (EUR) (b)

     4,357,383        5,384,841   

Small Business Administration Participation Certificates
5.510%, 11/01/27

     4,109,458        4,575,135   

Structured Asset Securities Corp.
0.333%, 05/25/47 (b)

     3,200,000        2,915,027   

1.694%, 04/25/35 (b)

     575,694        535,056   

Symphony CLO, Ltd.
0.515%, 05/15/19 (144A) (b)

     3,500,000        3,466,765   

Wood Street CLO B.V.
0.587%, 03/29/21 (144A) (EUR) (b)

     566,099        720,413   
   

 

 

  
      55,679,315   
   

 

 

  

Asset-Backed - Student Loan—0.7%

  

College Loan Corp. Trust
0.526%, 01/25/24 (b)

     900,000        873,932   

Nelnet Student Loan Trust
0.976%, 07/25/18 (b)

     459,095        460,088   

North Carolina State Education Assistance Authority
0.726%, 10/26/20 (b)

     2,200,184        2,201,900   

SLM Student Loan Trust
0.286%, 10/25/17 (b)

     573,536        570,880   

0.366%, 07/25/22 (b)

     123,269        123,217   

0.776%, 10/25/17 (b)

     480,408        480,796   

1.776%, 04/25/23 (b)

     16,292,140        16,750,748   

1.843%, 12/15/17 (144A) (b)

     532,096        533,568   

2.350%, 04/15/39 (144A) (b) (g)

     1,881,634        1,887,252   
   

 

 

  
      23,882,381   
   

 

 

  

Total Asset-Backed Securities
(Cost $90,389,409)

       92,846,047   
   

 

 

  
Floating Rate Loans (b)—0.5%   

Diversified Financial Services—0.3%

    

Springleaf Finance Corp. Term Loan
4.250%, 05/10/17

     8,791,470        8,811,602   
   

 

 

  

Healthcare-Services—0.2%

    

Iasis Healthcare LLC Term Loan
3.250%, 05/03/18

     7,136,389        7,134,605   
   

 

 

  

Total Floating Rate Loans
(Cost $15,871,490)

       15,946,207   
   

 

 

  
Convertible Preferred Stock—0.0%   
Security Description   Shares/
Contracts/
Principal
Amount*		     Value  

Commercial Banks—0.0%

  

Wells Fargo & Co. Series L
7.500%, 12/31/49
(Cost $900,000)

     900      $ 1,074,600   
   

 

 

  
Purchased Option—0.0%                

Put Option—0.0%

    

OTC - 30 Year Interest Rate Swap
3.875%, Expires 04/14/14
(Counterparty- Deutsche Bank Securities)
(Cost $1,032,255)

     20,300,000        761,128   
   

 

 

  
Municipals—0.0%                

Tobacco Settlement Financing Corp.
7.467%, 06/01/47
(Cost $726,260)

     760,000        653,858   
   

 

 

  
Short-Term Investments—44.9%   

Commercial Paper—2.3%

    

Banco Bilbao Vizcaya Argentaria S.A.
3.094%, 10/21/13 (h)

     1,600,000        1,584,469   

Dexia Credit Local S.A.
1.700%, 09/06/13

     18,700,000        18,700,000   

1.400%, 09/20/13

     24,700,000        24,700,000   

Santander S.A.
1.704%, 10/11/13 (h)

     800,000        796,124   

Standard Chartered Bank
0.935%, 10/01/13 (h)

     30,800,000        30,725,225   
   

 

 

  
      76,505,818   
   

 

 

  

Discount Note—0.1%

    

Federal Home Loan Bank
0.067%, 09/06/13 (h)

     1,400,000        1,399,713   

Foreign Government—3.5%

    

Japan Treasury Bills
0.032%, 08/05/13 (JPY) (h)

     10,810,000,000        108,985,901   

0.039%, 08/12/13 (JPY) (h)

     790,000,000        7,964,503   
   

 

 

  
      116,950,404   
   

 

 

  

U.S. Treasury—2.0%

    

U.S. Treasury Bills
0.035%, 08/15/13 (h) (i)

     1,020,000        1,019,955   

0.081%, 02/06/14 (f) (h) (i)

     1,511,000        1,510,252   

0.082%, 02/06/14 (f) (h) (i)

     2,230,000        2,228,876   

0.083%, 02/06/14 (f) (h) (i)

     1,785,000        1,784,095   

0.084%, 02/06/14 (f) (h) (i)

     1,956,000        1,954,984   

0.085%, 02/06/14 (f) (h) (i)

     862,000        861,551   

0.086%, 02/06/14 (f) (h) (i)

     1,835,000        1,834,036   

0.086%, 02/06/14 (f) (h) (i)

     153,000        152,920   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Short-Term Investments—(Continued)

 

Security Description   Principal
Amount*		     Value  

U.S. Treasury—(Continued)

  

U.S. Treasury Bills
0.088%, 02/06/14 (f) (h) (i)

     540,000      $ 539,711   

0.095%, 02/06/14 (f) (h) (i)

     335,000        334,805   

0.106%, 05/01/14 (h) (i)

     836,000        835,252   

0.113%, 05/01/14 (h) (i)

     807,000        806,230   

0.115%, 05/01/14 (h) (i)

     950,000        949,077   

0.116%, 05/01/14 (h) (i)

     3,500,000        3,496,572   

0.118%, 05/29/14 (f) (h) (i)

     11,673,000        11,660,351   

0.119%, 05/29/14 (f) (h) (i)

     16,811,000        16,792,396   

0.123%, 05/01/14 (h) (i)

     545,000        544,436   

0.127%, 04/03/14 (h) (i)

     371,000        370,630   

0.128%, 05/29/14 (f) (h) (i)

     8,657,000        8,646,677   

0.130%, 05/29/14 (f) (h) (i)

     12,297,000        12,282,336   

0.132%, 12/12/13 (f) (h) (i)

     251,000        250,851   
   

 

 

  
      68,855,993   
   

 

 

  

Repurchase Agreements—37.0%

    

Barclays Capital, Inc.
Repurchase Agreement dated 06/21/13 at 0.070% to be repurchased at $250,008,264 on 07/08/13 collateralized by $217,474,536 U.S. Treasury obligations with rates ranging from 2.000% - 4.500%, maturity dates ranging from 01/15/26 - 08/15/39 with a value of $251,661,978

     250,000,000        250,000,000   

Repurchase Agreement dated 06/27/13 at 0.090% to be repurchased at $215,003,225 on 07/03/13 collateralized by $216,292,022 U.S. Treasury Inflation Indexed Bonds with rates ranging from 0.125% - 1.250%, maturity dates ranging from 04/15/14 - 02/15/42 with a value of $220,980,389.

     215,000,000        215,000,000   

Repurchase Agreement dated 06/28/13 at 0.100% to be repurchased at $31,200,260 on 07/01/13 collateralized by $32,391,000 U.S. Treasury Note at 0.625% due 05/31/17 with a value of $31,879,838.

     31,200,000        31,200,000   

Repurchase Agreement dated 06/28/13 at 0.180% to be repurchased at $32,800,492 on 07/01/13 collateralized by $32,449,569 U.S. Treasury Inflation Indexed Note at 0.625% due 07/15/21 with a value of $33,533,320.

     32,800,000        32,800,000   

Credit Suisse Securities (USA) LLC
Repurchase Agreement dated 06/28/13 at 0.170% to be repurchased at $100,001,417 on 07/01/13 collateralized by $97,374,000 U.S. Treasury Note at 2.125% due 12/31/15 with a value of $101,287,948.

     100,000,000        100,000,000   

Repurchase Agreements—(Continued)

  

JPMorgan Securities, LLC
Repurchase Agreement dated 06/28/13 at 0.120% to be repurchased at $142,601,426 on 07/01/13 collateralized by $155,461,000 U.S. Treasury Bond at 3.125% due 02/15/43 with a value of $145,149,583.

     142,600,000      $ 142,600,000   

Repurchase Agreement dated 06/28/13 at 0.200% to be repurchased at $461,107,685 on 07/01/13 collateralized by $470,593,000 U.S. Government obligations with rates ranging from 0.000% - 4.750%, maturity dates ranging from 05/15/14 - 06/26/14 with a value of $470,721,695.

     461,100,000        461,100,000   

Morgan Stanley & Co., LLC
Repurchase Agreement dated 06/28/13 at 0.200% to be repurchased at $11,100,185 on 07/01/13 collateralized by $13,262,400 U.S. Treasury Bond at 2.750% due 11/15/42 with a value of $11,437,786.

     11,100,000        11,100,000   

Repurchase Agreement dated 06/28/13 at 0.220% to be repurchased at $11,000,202 on 07/01/13 collateralized by $10,128,000 Federal Home Loan Mortgage Corp. at 3.750% due 03/27/19 with a value of $11,147,586.

     11,000,000        11,000,000   
   

 

 

  
      1,254,800,000   
   

 

 

  

Total Short-Term Investments
(Cost $1,520,624,083)

       1,518,511,928   
   

 

 

  

Total Investments—163.6%
(Cost $5,710,206,671) (j)

       5,546,032,795   

Other assets and liabilities (net)—(63.6)%

       (2,155,111,146 ) 
   

 

 

  
Net Assets—100.0%     $ 3,390,921,649   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(b) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(c) All or a portion of this security has been transferred in an open Secured-Borrowing Transaction. (See Note 2 of the Notes to Financial Statements.)
(d) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of June 30, 2013, the market value of securities pledged was $5,286,442.
(e) All or a portion of the security was pledged as collateral against open futures contracts. As of June 30, 2013, the market value of securities pledged was $2,228,728.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

 

 

(f) All or a portion of the security was pledged as collateral against open swap contracts and open forward foreign currency exchange contracts. As of June 30, 2013, the market value of securities pledged was $13,372,291.
(g) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of June 30, 2013, the market value of restricted securities was $16,755,803, which is 0.5% of net assets. See details shown in the Restricted Securities table that follows.
(h) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(i) All or a portion of the security was pledged as collateral against open Secured-Borrowing transactions. As of June 30, 2013, the value of securities pledged amounted to $48,543,112.
(j) As of June 30, 2013, the aggregate cost of investments was $5,710,206,671. The aggregate unrealized appreciation and depreciation of investments were $22,554,326 and $(186,728,202), respectively, resulting in net unrealized depreciation of $(164,173,876).
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $296,259,702, which is 8.7% of net assets.
(ARM)— Adjustable-Rate Mortgage
(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CDO)— Collateralized Debt Obligation
(CLO)— Collateralized Loan Obligation
(CMO)— Collateralized Mortgage Obligation
(EUR)— Euro
(GBP)— British Pound
(JPY)— Japanese Yen

 

Restricted Securities

    Acquisition
Date		    Principal
Amount		      Cost      Value  

Commonwealth Bank of Australia

    06/18/09    $ 7,900,000       $ 7,900,000       $ 7,934,855   

SLM Student Loan Trust

    05/05/11      1,881,634         1,904,949         1,887,252   

Westpac Banking Corp.

    08/12/10      6,700,000         7,210,255         6,933,696   

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

       

Counterparty

      Settlement
Date		      In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  

AUD

     4,891,000         Deutsche Bank AG      07/10/13      $ 4,628,661         $ (158,227 ) 

AUD

     7,424,000         Deutsche Bank AG      07/10/13        7,227,026           (441,399 ) 

AUD

     4,083,000         JPMorgan Chase Bank N.A.      07/10/13        3,924,420           (192,508 ) 

BRL

     2,652,050         JPMorgan Chase Bank N.A.      07/02/13        1,196,990           (8,449 ) 

BRL

     2,649,690         Morgan Stanley & Co., LLC      07/02/13        1,180,000           7,483   

BRL

     44,706,301         UBS AG      08/02/13        22,003,299           (2,107,746 ) 

EUR

     9,425,000         Barclays Bank plc      07/02/13        12,521,405           (253,359 ) 

EUR

     4,646,000         Deutsche Bank AG      07/02/13        6,226,927           (179,464 ) 

EUR

     8,297,000         Deutsche Bank AG      07/02/13        10,983,128           (183,343 ) 

EUR

     116,267,000         Deutsche Bank AG      07/02/13        152,379,531           (1,040,654 ) 

EUR

     14,430,000         JPMorgan Chase Bank N.A.      07/02/13        18,878,264           (95,462 ) 

EUR

     141,791,000         Morgan Stanley & Co., LLC      07/02/13        188,238,612           (3,676,435 ) 

GBP

     2,895,000         Credit Suisse International      07/02/13        4,356,973           46,176   

GBP

     11,341,000         Goldman Sachs & Co.      07/02/13        17,512,772           (263,683 ) 

GBP

     7,597,000         JPMorgan Chase Bank N.A.      07/02/13        11,867,921           (313,267 ) 

INR

     183,597,960         Citibank N.A.      07/15/13        3,354,000           (271,604 ) 

INR

     322,806,350         Credit Suisse International      07/15/13        5,749,000           (329,457 ) 

INR

     125,248,200         Goldman Sachs & Co.      07/15/13        2,310,000           (207,228 ) 

INR

     121,914,100         JPMorgan Chase Bank N.A.      07/15/13        2,230,000           (183,204 ) 

INR

     54,850,400         UBS AG      07/15/13        1,012,000           (91,126 ) 

INR

     510,999,840         UBS AG      07/15/13        9,099,000           (519,907 ) 

INR

     1,319,416,850         UBS AG      10/17/13        21,940,913           (125,991 ) 

JPY

     362,400,000         Citibank N.A.      07/18/13        3,844,885           (190,706 ) 

JPY

     790,000,000         Citibank N.A.      07/18/13        7,955,874           9,914   

JPY

     539,300,000         Credit Suisse International      07/18/13        5,719,965           (282,054 ) 

JPY

     1,416,200,000         JPMorgan Chase Bank N.A.      07/18/13        14,495,736           (215,800 ) 

MXN

     311,203,540         UBS AG      09/18/13        25,359,862           (1,507,635 ) 

Contracts to Deliver

                         

AUD

     80,597,000         Westpac Banking Corp.      07/10/13      $ 78,856,105         $ 5,189,459   

BRL

     2,652,050         JPMorgan Chase Bank N.A.      07/02/13        1,180,000           (8,541 ) 

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

       

Counterparty

      Settlement
Date		      In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  

BRL

     2,649,690         Morgan Stanley & Co., LLC      07/02/13      $ 1,195,924         $ 8,441   

BRL

     2,119,932         BNP Paribas S.A.      08/02/13        972,000           28,571   

BRL

     2,787,904         Barclays Bank plc      08/02/13        1,270,000           29,305   

BRL

     684,058         Barclays Bank plc      08/02/13        307,200           2,775   

BRL

     7,370,352         Deutsche Bank AG      08/02/13        3,240,000           (40,012 ) 

BRL

     933,574         Deutsche Bank AG      08/02/13        417,800           2,333   

BRL

     11,757,617         JPMorgan Chase Bank N.A.      08/02/13        5,377,000           144,532   

BRL

     1,432,368         JPMorgan Chase Bank N.A.      08/02/13        630,000           (7,444 ) 

BRL

     2,665,030         Morgan Stanley & Co., LLC      08/02/13        1,180,000           (6,013 ) 

CAD

     24,961,000         Barclays Bank plc      09/23/13        24,468,762           782,127   

EUR

     11,274,000         Credit Suisse International      07/02/13        14,575,399           (99,397 ) 

EUR

     141,791,000         Morgan Stanley & Co., LLC      07/02/13        183,151,718           (1,410,459 ) 

EUR

     141,791,000         UBS AG      07/02/13        188,238,612           3,676,435   

EUR

     116,267,000         Deutsche Bank AG      08/02/13        152,403,481           1,046,002   

EUR

     24,601,200         Barclays Bank plc      09/13/13        31,912,677           (119,599 ) 

GBP

     21,831,000         Deutsche Bank AG      07/02/13        33,205,038           1,189   

GBP

     2,000         Deutsche Bank AG      07/02/13        3,063           21   

GBP

     11,341,000         Goldman Sachs & Co.      08/02/13        17,509,200           263,740   

INR

     1,319,416,850         UBS AG      07/15/13        22,306,287           154,812   

INR

     152,490,080         Barclays Bank plc      10/17/13        2,518,000           (3,234 ) 

INR

     69,608,700         Barclays Bank plc      10/17/13        1,143,000           (7,894 ) 

INR

     49,440,000         Barclays Bank plc      10/17/13        824,000           6,571   

INR

     102,582,900         Deutsche Bank AG      10/17/13        1,710,000           13,919   

INR

     48,545,160         Deutsche Bank AG      10/17/13        794,000           (8,634 ) 

INR

     29,167,560         JPMorgan Chase Bank N.A.      10/17/13        478,000           (4,249 ) 

INR

     62,636,730         UBS AG      10/17/13        1,027,000           (8,621 ) 

JPY

     171,600,000         Barclays Bank plc      07/18/13        1,748,018           17,728   

JPY

     1,080,900,000         Citibank N.A.      07/18/13        11,035,109           136,096   

JPY

     789,800,000         Citibank N.A.      07/18/13        7,776,095           (187,676 ) 

JPY

     601,200,000         JPMorgan Chase Bank N.A.      07/18/13        6,079,396           17,331   

JPY

     10,810,000,000         Citibank N.A.      08/05/13        111,064,877           2,057,079   

JPY

     321,000,000         Citibank N.A.      08/12/13        3,249,942           12,880   

JPY

     469,000,000         Goldman Sachs & Co.      08/12/13        4,748,838           19,299   
                     

 

 

  

Net Unrealized Depreciation

  

      $  (1,076,263)   
                     

 

 

  

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		      Notional
Amount		      Unrealized
Depreciation		  

90 Day EuroDollar Futures

      09/14/15         586         USD        145,220,965       $ (544,890 ) 

90 Day EuroDollar Futures

      03/14/16         1,118         USD        276,387,690         (1,820,865 ) 

U.S. Treasury Bond Futures

      09/19/13         213         USD        29,764,422         (829,703 ) 

U.S. Treasury Note 10 Year Futures

      09/19/13         104         USD        13,468,138         (305,638 ) 
             

 

 

  

Net Unrealized Depreciation

  

    $ (3,501,096 ) 
             

 

 

  

Options Written

 

Foreign Currency Options Written

    Strike
Price		      Counterparty      Expiration
Date		      Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation		  

Put - OTC USD vs JPY

    $ 95         BNP Paribas S.A.         07/05/13         (11,300,000 )    $ (107,350 )    $ (5,300 )    $ 102,050   
             

 

 

    

 

 

    

 

 

  

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Options Written—(Continued)

 

 

Inflation Capped Options

   Strike
Index		   Counterparty  

Exercise Index

   Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation		  

Floor - OTC CPURNSA Index

   0.000   Deutsche Bank AG   Maximum of ((1 + 0.000%)10
- Inflation Adjustment) or 0		     01/22/2018      $ (4,500,000 )    $ (43,650 )    $ (12,675 )    $ 30,975   

Floor - OTC CPURNSA Index

   0.000   BNP Paribas S.A.   Maximum of ((1 + 0.000%)10
- Inflation Adjustment) or 0		     03/01/2018        (3,500,000 )      (30,100 )      (10,818 )      19,282   

Floor - OTC CPURNSA Index

   215.949   Deutsche Bank AG   Maximum of ((1 + 0.000%)10
- Inflation Adjustment) or 0		     03/10/2020        (5,100,000 )      (38,250 )      (8,104 )      30,146   

Floor - OTC CPURNSA Index

   216.687   Citibank N.A.   Maximum of ((1 + 0.000%)10
- Inflation Adjustment) or 0		     04/07/2020        (49,000,000 )      (436,720 )      (76,642 )      360,078   

Floor - OTC CPURNSA Index

   217.965   Citibank N.A.   Maximum of ((1 + 0.000%)10
- Inflation Adjustment) or 0		     09/29/2020        (4,700,000 )      (60,630 )      (3,918 )      56,712   
 

 

 

    

 

 

    

 

 

  

Totals

  

   $ (609,350 )    $ (112,157 )    $ 497,193   
           

 

 

    

 

 

    

 

 

  

CPURNSA— Consumer Price All Urban Non-Seasonally Adjusted

 

Interest Rate
Swaptions

   Exercise
Rate		  

Counterparty

  

Floating Rate
Index

   Pay/
Receive
Floating
Rate		   Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation/
(Depreciation)		  

Call - OTC - 2-Year Interest Rate Swap

   1.600%   Goldman Sachs & Co.   3-Month USD-LIBOR   Receive     07/02/13      $          (96,800,000 )    $ (174,240 )    $ —      $ 174,240   

Call - OTC - 10-Year Interest Rate Swap

   1.800%  

Barclays Bank plc

   3-Month USD-LIBOR   Receive     07/29/13          (16,500,000 )      (74,280 )      (50 )      74,230   

Call - OTC - 10-Year Interest Rate Swap

   1.800%   JPMorgan Chase Bank N.A.   3-Month USD-LIBOR   Receive     07/29/13          (25,700,000 )      (83,260 )      (77 )      83,183   

Call - OTC - 10-Year Interest Rate Swap

   1.800%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Receive     07/29/13          (26,300,000 )      (122,455 )      (79 )      122,376   

Call - OTC - 10-Year Interest Rate Swap

   1.800%   Goldman Sachs & Co.   3-Month USD-LIBOR   Receive     07/29/13          (47,500,000 )      (193,970 )      (143 )      193,827   

Call - OTC - 5-Year Interest Rate Swap

   0.750%   Deutsche Bank AG   3-Month USD-LIBOR   Receive     09/03/13          (5,900,000 )      (4,130 )      (159 )      3,971   

Put - OTC - 2-Year Interest Rate Swap

   1.150%  

Barclays Bank plc

   6-Month EUR-LIBOR   Pay     07/24/13          (25,200,000 )      (43,013 )      (1,073 )      41,940   

Call - OTC - 5-Year Interest Rate Swap

   0.750%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Receive     09/03/13          (45,400,000 )      (25,040 )      (1,226 )      23,814   

Put - OTC - 2-Year Interest Rate Swap

   1.150%   Credit Suisse International   6-Month EUR-LIBOR   Pay     07/24/13          (39,800,000 )      (82,191 )      (1,694 )      80,497   

Put - OTC - 5-Year Interest Rate Swap

   1.700%   Citibank N.A.   6-Month EUR-LIBOR   Pay     07/24/13          (5,600,000 )      (25,234 )      (3,054 )      22,180   

Put - OTC - 5-Year Interest Rate Swap

   1.700%  

Barclays Bank plc

   6-Month EUR-LIBOR   Pay     07/24/13          (20,200,000 )      (101,915 )      (11,017 )      90,898   

Put - OTC - 10-Year Interest Rate Swap

   2.650%   JPMorgan Chase Bank N.A.   3-Month USD-LIBOR   Pay     07/29/13          (800,000 )      (2,000 )      (12,006 )      (10,006 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.700%   Deutsche Bank AG   6-Month EUR-LIBOR   Pay     07/24/13          (23,800,000 )      (125,406 )      (12,980 )      112,426   

Put - OTC - 5-Year Interest Rate Swap

   1.250%   Deutsche Bank AG   3-Month USD-LIBOR   Pay     09/03/13          (5,900,000 )      (15,930 )      (127,440 )      (111,510 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.400%   Deutsche Bank AG   3-Month USD-LIBOR   Pay     09/03/13          (15,400,000 )      (51,220 )      (244,198 )      (192,978 ) 

Put - OTC - 10-Year Interest Rate Swap

   2.900%   JPMorgan Chase Bank N.A.   3-Month USD-LIBOR   Pay     09/30/13          (24,900,000 )      (431,828 )      (414,084 )      17,744   

Put - OTC - 10-Year Interest Rate Swap

   2.650%   Goldman Sachs & Co.   3-Month USD-LIBOR   Pay     07/29/13          (31,400,000 )      (166,195 )      (471,251 )      (305,056 ) 

Put - OTC - 5-Year Interest Rate Swap

   2.850%   Deutsche Bank AG   3-Month USD-LIBOR   Pay     04/14/14          (85,300,000 )      (1,023,600 )      (568,780 )      454,820   

Put - OTC - 5-Year Interest Rate Swap

   1.450%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Pay     09/03/13          (62,100,000 )      (314,790 )      (881,385 )      (566,595 ) 

Put - OTC - 10-Year Interest Rate Swap

   2.900%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Pay     09/30/13          (58,900,000 )      (1,019,335 )      (979,499 )      39,836   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Options Written—(Continued)

 

Interest Rate
Swaptions

   Exercise
Rate		  

Counterparty

  

Floating Rate
Index

   Pay/
Receive
Floating
Rate		   Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation/
(Depreciation)		  

Put - OTC - 5-Year Interest Rate Swap

   1.250%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Pay     09/03/13      $          (45,400,000 )    $ (115,760 )    $ (980,640 )    $ (864,880 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.500%   Goldman Sachs & Co.   3-Month USD-LIBOR   Pay     10/28/13          (59,800,000 )      (165,725 )      (1,066,114 )      (900,389 ) 

Put - OTC - 3-Year Interest Rate Swap

   1.600%   Goldman Sachs & Co.   3-Month USD-LIBOR   Pay     07/02/13          (96,800,000 )      (484,000 )      (2,044,268 )      (1,560,268 ) 
               

 

 

    

 

 

    

 

 

  

Totals

  

   $ (4,845,517 )    $ (7,821,217 )    $ (2,975,700 ) 
               

 

 

    

 

 

    

 

 

  

 

Options on Exchange-Traded Futures Contracts

    Exercise
Price		    Expiration
Date		     

Number
of Contracts

    Premiums
Received		     Market
Value		     Unrealized
Appreciation/
(Depreciation)		  

Call - 10 Year U.S. Treasury Note Futures

    $133.0      08/23/13       (195)    $ (61,969 )    $ (6,095 )      55,874   

Put - 10 Year U.S. Treasury Note Futures

      129.0      08/23/13       (195)      (109,937 )      (545,391 )      (435,454 ) 
           

 

 

    

 

 

    

 

 

  

Totals

    $ (171,906 )    $ (551,486 )    $ (379,580 ) 
           

 

 

    

 

 

    

 

 

  

Swap Agreements

OTC interest rate swap agreements

 

Pay/Receive
Floating Rate

   Floating
Rate Index		   Fixed
Rate		     Maturity
Date		   

Counterparty

    Notional
Amount		      Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Pay

   INF EUR FRCPXTOB     2.000 %    09/01/16    BNP Paribas S.A.      EUR        10,000,000       $ 383,583      $ 13,658      $ 369,925   

Pay

   INF EUR FRCPXTOB     1.950 %    09/01/17    Credit Suisse International      EUR        5,400,000         205,125        31,816        173,309   

Pay

   INF EUR FRCPXTOB     1.950 %    09/01/17    Societe Generale      EUR        16,500,000         626,770        —        626,770   

Pay

   INF EUR FRCPXTOB     2.000 %    02/01/18    Citibank N.A.      EUR        3,200,000         110,255        1,033        109,222   

Pay

   INF EUR FRCPXTOB     2.000 %    02/01/18    Deutsche Bank AG      EUR        2,100,000         72,355        1,463        70,892   

Pay

   INF EUR FRCPXTOB     2.000 %    02/01/18    Morgan Stanley Capital Services, LLC      EUR        300,000         10,336        121        10,215   

Pay

   INF EUR FRCPXTOB     2.150 %    04/01/21    BNP Paribas S.A.      EUR        3,200,000         108,947        37,259        71,688   

Pay

   INF EUR FRCPXTOB     2.150 %    04/01/21    Citibank N.A.      EUR        2,700,000         91,924        42,131        49,793   

Pay

   INF EUR FRCPXTOB     2.150 %    04/01/21    Credit Suisse International      EUR        2,100,000         71,496        3,291        68,205   

Pay

   INF EUR FRCPXTOB     2.150 %    04/01/21    Deutsche Bank AG      EUR        8,200,000         279,177        156,053        123,124   

Pay

   INF EUR FRCPXTOB     2.150 %    04/01/21    Goldman Sachs & Co.      EUR        8,700,000         296,200        76,648        219,552   

Pay

   INF EUR FRCPXTOB     2.150 %    04/01/21    Morgan Stanley Capital Services, LLC      EUR        2,900,000         98,733        (10,586 )      109,319   

Pay

   INF EUR FRCPXTOB     2.100 %    07/25/21    BNP Paribas S.A.      EUR        6,300,000         249,628        (60,767 )      310,395   

Pay

   INF EUR FRCPXTOB     1.950 %    07/25/21    Credit Suisse International      EUR        1,900,000         7,103        (1,578 )      8,681   

Pay

   INF EUR FRCPXTOB     2.100 %    07/25/21    JPMorgan Chase Bank N.A.      EUR        2,500,000         99,059        (24,033 )      123,092   

Pay

   INF EUR FRCPXTOB     2.100 %    07/25/21    Societe Generale      EUR        4,200,000         166,419        (35,687 )      202,106   

Receive

   INF USD CPURNSA     2.415 %    02/12/17    Goldman Sachs & Co.      USD        39,500,000         (909,606 )      21,811        (931,417 ) 

Receive

   INF USD CPURNSA     2.250 %    07/15/17    BNP Paribas S.A.      USD        27,900,000         (621,305 )      33,197        (654,502 ) 

Receive

   INF USD CPURNSA     2.315 %    11/16/17    Deutsche Bank AG      USD        12,700,000         (280,099 )      —        (280,099 ) 

Receive

   INF USD CPURNSA     2.500 %    07/15/22    BNP Paribas S.A.      USD        9,500,000         (218,747 )      137,800        (356,547 ) 

Receive

   INF USD CPURNSA     2.500 %    07/15/22    Deutsche Bank AG      USD        8,700,000         (200,326 )      55,958        (256,284 ) 

Receive

   INF USD CPURNSA     2.500 %    07/15/22    Citibank N.A.      USD        12,500,000         (287,825 )      95,375        (383,200 ) 

Receive

   INF USD CPURNSA     2.560 %    05/08/23    Deutsche Bank AG      USD        32,900,000         (654,282 )      —        (654,282 ) 

Pay

   IRS AUD     4.500 %    12/11/23    UBS AG      AUD        1,000,000         (25,667 )      (4,721 )      (20,946 ) 

Pay

   ZCS BRL CDI     8.150 %    01/02/15    Goldman Sachs & Co.      BRL        100,000         (796 )      (240 )      (556 ) 

Pay

   ZCS BRL CDI     8.255 %    01/02/15    Goldman Sachs & Co.      BRL        13,300,000         (68,874 )      16,785        (85,659 ) 

Pay

   ZCS BRL CDI     7.900 %    01/02/15    JPMorgan Chase Bank N.A.      BRL        50,400,000         (450,954 )      (179,944 )      (271,010 ) 

Pay

   ZCS BRL CDI     8.630 %    01/02/15    Morgan Stanley Capital Services, LLC      BRL        189,100,000         (327,377 )      876,977        (1,204,354 ) 

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Swap Agreements—(Continued)

 

Pay/Receive
Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		   

Counterparty

    Notional
Amount		      Market
Value		     Upfront
Premium
Paid/(Received)		      Unrealized
Appreciation/
(Depreciation)		  

Pay

    ZCS BRL CDI      8.560 %    01/02/15    UBS AG      BRL        28,200,000       $ (158,772 )    $ 21,275       $ (180,047 ) 

Pay

    ZCS BRL CDI      8.260 %    01/02/15    UBS AG      BRL        104,400,000         (535,299 )      127,056         (662,355 ) 
                  

 

 

    

 

 

     

 

 

  

Totals

  

    $ (1,862,819 )    $ 1,432,151       $ (3,294,970 ) 
                  

 

 

    

 

 

     

 

 

  

Centrally cleared Interest Rate Swap agreements

 

Pay/Receive Floating Rate

   Floating
Rate Index		     Fixed
Rate		     Maturity
Date		   Notional
Amount		     Unrealized
Appreciation		  

Receive

     3-Month USD-LIBOR        2.750%      06/19/43     USD        63,900,000      $  4,970,389   
           

 

 

  

Centrally cleared Credit Default Swap agreements

 

Reference Obligation

    Fixed Deal
(Pay) Rate		      Maturity
Date		     

Implied Credit
Spread at
June 30,
2013(b)

    Notional
Amount(c)		      Unrealized
Appreciation		  

Markit CDX North America High Yield, Series 20

      (5.000%)         06/20/18       4.286%      USD         19,700,000       $ 75,057   
                 

 

 

  

OTC Credit Default Swaps on corporate issues—Buy Protection (a)

 

Reference Obligation

   Fixed Deal
(Pay) Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid		     Unrealized
Depreciation		  

D.R. Horton, Inc. 5.375%, due 6/15/2012

     (1.000%)        03/20/15      JPMorgan Chase Bank N.A.     0.651%        USD        7,500,000      $ (45,269)      $ 403,143      $ (448,412)   

Echostar DBS Corp. 6.625%, due 10/1/2014

     (3.650%)        12/20/13      Citibank N.A.     0.459%        USD        6,200,000        (95,866)        —        (95,866)   

Intesa Sanpaolo S.p.A. 4.750%, due 6/15/2017

     (3.000%)        03/20/14      Goldman Sachs & Co.     1.628%        EUR        7,000,000        (92,280)        405,885        (498,165)   

Intesa Sanpaolo S.p.A. 4.750%, due 6/15/2017

     (3.000%)        03/20/14      JPMorgan Chase Bank N.A.     1.608%        USD        16,400,000        (166,007)        768,894        (934,901)   
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (399,422)      $ 1,577,922      $ (1,977,344)   
             

 

 

    

 

 

    

 

 

  

OTC Credit Default Swaps on sovereign issues—Sell Protection (d)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
(Received)		     Unrealized
Depreciation		  

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000%        06/20/20      Deutsche Bank AG     2.076%        USD        1,000,000      $ (66,865)      $ (33,147)      $ (33,718)   
             

 

 

    

 

 

    

 

 

  

 

(a) If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(b) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

 

 

(c) The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(d) If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(EUR)— Euro
(GBP)— British Pound
(LIBOR)— London InterBank Offered Rate
(INR)— Indian Rupee
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1     Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —        $ 3,259,020,287      $ —         $ 3,259,020,287   

Total Corporate Bonds & Notes*

      —          268,650,655        —           268,650,655   

Total Foreign Government*

      —          216,751,342        —           216,751,342   

Total Mortgage-Backed Securities*

      —          171,816,743        —           171,816,743   

Total Asset-Backed Securities*

      —          92,846,047        —           92,846,047   

Total Floating Rate Loans*

      —          15,946,207        —           15,946,207   

Total Convertible Preferred Stock*

      1,074,600        —          —           1,074,600   

Total Purchased Option*

      —          761,128        —           761,128   

Total Municipals

      —          653,858        —           653,858   
Short-Term Investments          

Commercial Paper

      —          76,505,818        —           76,505,818   

Discount Note

      —          1,399,713        —           1,399,713   

Foreign Government

      —          116,950,404        —           116,950,404   

U.S. Treasury

      —          68,855,993        —           68,855,993   

Repurchase Agreements

      —          1,254,800,000        —           1,254,800,000   

Total Short-Term Investments

      —          1,518,511,928        —           1,518,511,928   

Total Investments

    $ 1,074,600      $ 5,544,958,195      $ —         $ 5,546,032,795   
                                   

Secured Borrowings (Liability)

    $ —        $ (2,142,539,593 )    $ —         $ (2,142,539,593 ) 
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 13,674,218      $ —         $ 13,674,218   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (14,750,481 )      —           (14,750,481 ) 

Total Forward Contracts

    $ —        $ (1,076,263 )    $ —         $ (1,076,263 ) 
Futures Contracts          

Futures Contracts (Unrealized Depreciation)

    $ (3,501,096 )    $ —        $ —         $ (3,501,096 ) 
Written Options          

Foreign Currency Options Written at Value

    $ —        $ (5,300 )    $ —         $ (5,300 ) 

Inflation Capped Options at Value

      —          (112,157 )      —           (112,157 ) 

Interest Rate Swaptions at Value

      —          (7,821,217 )      —           (7,821,217 ) 

Options on Exchange-Traded Futures Contracts at Value

      (551,486 )      —          —           (551,486 ) 

Total Written Options

    $ (551,486 )    $ (7,938,674 )    $ —         $ (8,490,160 ) 
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —        $ 5,045,446      $ —         $ 5,045,446   

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Schedule of Investments as of June 30, 2013

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  
OTC Swap Contracts           

OTC Swap Contracts at Value (Assets)

    $ —         $ 2,877,110      $ —         $ 2,877,110   

OTC Swap Contracts at Value (Liabilities)

      —           (5,206,216 )      —           (5,206,216 ) 

Total OTC Swap Contracts

    $ —         $ (2,329,106 )    $ —         $ (2,329,106 ) 

 

* See Schedule of Investments for additional detailed categorizations.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

 

Investments in Securities

    Balance as of
December 31,
2012		      Realized
Loss		     Change in
Unrealized
Appreciation		      Sales     Balance as of
June 30,
2013		      Change in Unrealized
Appreciation/(Depreciation)
from investments still
held at June 30, 2013		  
Asset-Backed Securities                

Asset-Backed - Automobile

    $ 282,112       $ (1,093 )    $ 4,152       $ (285,171 ) (a)    $   —       $   —   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

(a) Sales include principal reductions.

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013

 

Assets

   

Investments at value (a)

    $ 4,291,232,795   

Repurchase Agreement

      1,254,800,000   

Cash

      520,556   

Cash denominated in foreign currencies (b)

      315,358   

Cash collateral for centrally cleared swaps

      764,000   

Swaps at market value (c)

      2,877,110   

Unrealized appreciation on forward foreign currency exchange contracts

      13,674,218   

Receivable for:

   

Investments sold

      1,881,752   

TBA securities sold

      6,045,938   

Open swap cash collateral

      420,000   

Fund shares sold

      1,674,559   

Interest

      19,789,577   

Variation margin on futures contracts

      31,149   

Swap interest

      447   

Variation margin on swap contracts

      360,370   

Miscellaneous assets

      418,250   
  

 

 

  

Total Assets

      5,594,806,079   

Liabilities

   

Payables for:

   

Investments purchased

      1,535,022   

TBA securities purchased

      20,072,344   

Secured borrowings

      2,142,539,593   

Fund shares redeemed

      2,393,626   

Cash collateral (d)

      6,140,000   

Options written at value (e)

      8,490,160   

Swaps at market value (f)

      5,206,216   

Unrealized depreciation on forward foreign currency exchange contracts

      14,750,481   

Variation margin on swap contracts

      326,197   

Swap interest

      284,352   

Accrued Expenses:

   

Management fees

      1,338,440   

Distribution and service fees

      378,885   

Deferred trustees’ fees

      41,001   

Other expenses

      388,113   
  

 

 

  

Total Liabilities

      2,203,884,430   
  

 

 

  

Net Assets

    $ 3,390,921,649   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 3,688,148,487   

Distributions in excess of net investment income

      (567,132 ) 

Accumulated net realized loss

      (124,258,548 ) 

Unrealized depreciation on investments, written options contracts, futures contracts, swap contracts and foreign currency transactions

      (172,401,158 ) 
  

 

 

  

Net Assets

    $ 3,390,921,649   
  

 

 

  

Net Assets

   

Class A

    $ 1,584,418,048   

Class B

      1,746,756,928   

Class E

      59,746,673   

Capital Shares Outstanding*

   

Class A

      157,468,567   

Class B

      174,574,718   

Class E

      5,964,802   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.06   

Class B

      10.01   

Class E

      10.02   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement, was $4,455,406,671.
(b) Identified cost of cash denominated in foreign currencies was $322,465.
(c) Net premium paid on swaps was $230,822.
(d) Includes collateral of $5,895,000 for swaps and $245,000 for TBA.
(e) Premiums received on written options were $5,734,123.
(f) Net premium paid on swaps was $2,746,104.

Statement of Operations

 

Six Months Ended June 30, 2013

 

Investment Income

   

Dividends

    $ 33,750   

Interest

      18,215,236   
  

 

 

  

Total investment income

      18,248,986   

Expenses

   

Management fees

      8,519,620   

Administration fees

      45,942   

Custodian and accounting fees

      308,580   

Distribution and service fees—Class B

      2,394,369   

Distribution and service fees—Class E

      49,887   

Interest expense

      1,206,759   

Audit and tax services

      57,265   

Legal

      9,658   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      92,560   

Insurance

      11,716   

Miscellaneous

      10,481   
  

 

 

  

Total expenses

      12,720,303   
  

 

 

  

Net Investment Income

      5,528,683   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      1,563,770   

Futures contracts

      115,471   

Written options contracts

      1,482,396   

Swap contracts

      2,990,482   

Foreign currency transactions

      40,781,606   
  

 

 

  

Net realized gain

      46,933,725   
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (334,462,876 ) 

Futures contracts

      (3,909,686 ) 

Written options contracts

      (3,628,312 ) 

Swap contracts

      (2,445,316 ) 

Foreign currency transactions

      (8,148,541 ) 
  

 

 

  

Net change in unrealized depreciation

      (352,594,731 ) 
  

 

 

  

Net realized and unrealized loss

      (305,661,006 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (300,132,323 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 5,528,683      $ 57,240,269   

Net realized gain

      46,933,725        70,588,931   

Net change in unrealized appreciation (depreciation)

      (352,594,731 )      193,939,080   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (300,132,323 )      321,768,280   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (38,778,159 )      (53,342,842 ) 

Class B

      (39,507,606 )      (58,088,625 ) 

Class E

      (1,439,192 )      (2,029,280 ) 

Net realized capital gains

     

Class A

      (92,280,355 )      (97,891,576 ) 

Class B

      (105,520,314 )      (114,231,139 ) 

Class E

      (3,658,670 )      (3,877,625 ) 
  

 

 

    

 

 

  

Total distributions

      (281,184,296 )      (329,461,087 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      241,384,446        314,104,962   
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (339,932,173 )      306,412,155   

Net Assets

     

Beginning of period

      3,730,853,822        3,424,441,667   
  

 

 

    

 

 

  

End of period

    $ 3,390,921,649      $ 3,730,853,822   
  

 

 

    

 

 

  

Undistributed (Distributions in Excess of) Net Investment Income

     

End of period

    $ (567,132 )    $ 73,629,142   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      9,985,387      $ 113,391,937        13,387,571      $ 157,992,826   

Reinvestments

      11,979,754        131,058,514        13,539,339        151,234,418   

Redemptions

      (6,877,166 )      (76,226,710 )      (16,943,909 )      (198,039,040 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      15,087,975      $ 168,223,741        9,983,001      $ 111,188,204   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      8,647,030      $ 97,405,415        24,402,427      $ 286,988,583   

Reinvestments

      13,317,532        145,027,920        15,496,382        172,319,764   

Redemptions

      (15,389,815 )      (168,926,038 )      (22,798,433 )      (265,107,764 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      6,574,747      $ 73,507,297        17,100,376      $ 194,200,583   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      387,508      $ 4,341,875        1,224,519      $ 14,365,196   

Reinvestments

      467,694        5,097,862        530,719        5,906,905   

Redemptions

      (877,066 )      (9,786,329 )      (988,046 )      (11,555,926 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (21,864 )    $ (346,592 )      767,192      $ 8,716,175   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 241,384,446        $ 314,104,962   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Statement of Cash Flows

 

For the Six Months Ended June 30, 2013

 

Cash Flows From Operating Activities

   

Net decrease in net assets from operations

    $ (300,132,323 ) 

Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:

   

Investments purchased

      (728,865,114 ) 

Proceeds from investments sold

      923,780,030   

Sales of short-term investments, net

      196,606,239   

Net amortization/accretion of premium (discount)

      14,534,693   

Premium received on open written options, net

      1,483,162   

Increase in interest receivable

      (2,052,248 ) 

Increase in cash collateral, asset

      (749,000 ) 

Decrease in swaps at market value, asset

      1,076,064   

Decrease in receivable for variation margin on swap contracts

      826,746   

Increase in receivable for variation margin on futures contracts

      (31,149 ) 

Decrease in receivable for swap interest

      21,733   

Increase in unrealized appreciation on forward foreign currency exchange contracts

      (1,703,023 ) 

Increase in receivable for investments sold

      (1,881,752 ) 

Increase in receivable for TBA securities sold

      (613,125 ) 

Decrease in receivable for swap cash collateral

      270,000   

Decrease in miscellaneous assets

      18,184   

Increase in payable for investments purchased

      1,389,416   

Increase in payable for TBA securities purchased

      20,072,344   

Decrease in payable for securities sold short, at value

      (5,432,814 ) 

Decrease in cash collateral, liability

      (6,000,000 ) 

Increase in swaps at market value, liability

      4,253,039   

Decrease in payable for variation margin on futures contracts

      (20,073 ) 

Increase in unrealized depreciation on forward foreign currency exchange contracts

      9,814,506   

Increase in payable for swap interest

      245,254   

Increase in payable variation margin on swap contracts

      326,197   

Decrease in accrued management fees

      (142,784 ) 

Decrease in accrued distribution and service fees

      (51,895 ) 

Increase in deferred trustee’s fees

      5,376   

Increase in other expenses

      68,165   

Net realized gain from investments and written options

      (3,046,166 ) 

Net change in unrealized (appreciation) depreciation on investments and written options

      338,091,188   
  

 

 

  

Net cash provided by operating activities

    $ 462,160,870   
  

 

 

  

Cash Flows From Financing Activities

   

Proceeds from shares sold, net of receivable for shares sold

      214,689,401   

Payment on shares redeemed, net of payable for shares redeemed

      (254,002,034 ) 

Proceeds from issuance of reverse repurchase agreements

      80,754,250   

Repayment of reverse repurchase agreements

      (80,754,250 ) 

Proceeds from secured borrowings

      8,357,106,050   

Repayment of secured borrowings

      (8,779,272,237 ) 

Decrease cash due to custodian

      (298,017 ) 
  

 

 

  

Net cash used in financing activities

    $ (461,776,837 ) 
  

 

 

  

Net increase in cash (a)

    $ 384,033   
  

 

 

  

Cash at beginning of period (b)

    $ 451,881   
  

 

 

  

Cash at end of period (c)

    $ 835,914   
  

 

 

  

Supplemental disclosure of cash flow information:

   

Non cash financing activities included herein consist of reinvestment of dividends and distributions:

    $ 281,184,296   
  

 

 

  

Cash paid for interest and fees on borrowings:

    $ 1,206,759   
  

 

 

  

 

(a) Includes net change in unrealized appreciation (depreciation) on foreign currency of $(8,148,541).
(b) Balance includes foreign currency at value of $451,881.
(c) Balance includes foreign currency at value of $315,358.

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,

2013		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.83      $ 11.91       $ 11.43       $ 11.17       $ 9.84       $ 10.98   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.02        0.20         0.24         0.16         0.29         0.40   

Net realized and unrealized gain (loss) on investments

      (0.89 )      0.85         1.02         0.71         1.46         (1.09 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.87 )      1.05         1.26         0.87         1.75         (0.69 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.27 )      (0.40 )       (0.22 )       (0.30 )       (0.42 )       (0.43 ) 

Distributions from net realized capital gains

      (0.63 )      (0.73 )       (0.56 )       (0.31 )       0.00         (0.02 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.90 )      (1.13 )       (0.78 )       (0.61 )       (0.42 )       (0.45 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.06      $ 11.83       $ 11.91       $ 11.43       $ 11.17       $ 9.84   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (7.97 )(c)      9.33         11.48         8.00         18.37         (6.88 ) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%)

      0.56  (d)      0.58         0.51         0.51         0.53         0.53   

Ratio of expenses to average net assets excluding interest expense (%)

      0.50  (d)      0.50         0.50         0.51         0.53         0.53   

Ratio of net investment income to average net assets (%)

      0.44  (d)      1.70         2.07         1.38         2.78         3.74   

Portfolio turnover rate (%)

      15  (c)      53         458         527         668         1,143   

Net assets, end of period (in millions)

    $ 1,584.4      $ 1,685.0       $ 1,576.3       $ 1,273.4       $ 1,160.3       $ 824.7   

 

     Class B  
     Six Months
Ended
June 30,

2013		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.76      $ 11.84       $ 11.38       $ 11.13       $ 9.80       $ 10.96   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.01        0.17         0.21         0.13         0.27         0.37   

Net realized and unrealized gain (loss) on investments

      (0.89 )      0.85         1.01         0.71         1.45         (1.10 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.88 )      1.02         1.22         0.84         1.72         (0.73 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.24 )      (0.37 )       (0.20 )       (0.28 )       (0.39 )       (0.41 ) 

Distributions from net realized capital gains

      (0.63 )      (0.73 )       (0.56 )       (0.31 )       0.00         (0.02 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.87 )      (1.10 )       (0.76 )       (0.59 )       (0.39 )       (0.43 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.01      $ 11.76       $ 11.84       $ 11.38       $ 11.13       $ 9.80   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (8.08 )(c)      9.13         11.14         7.76         18.05         (7.06 ) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%)

      0.81  (d)      0.83         0.76         0.76         0.78         0.78   

Ratio of expenses to average net assets excluding interest expense (%)

      0.75  (d)      0.75         0.75         0.76         0.78         0.78   

Ratio of net investment income to average net assets (%)

      0.18  (d)      1.46         1.83         1.13         2.55         3.44   

Portfolio turnover rate (%)

      15  (c)      53         458         527         668         1,143   

Net assets, end of period (in millions)

    $ 1,746.8      $ 1,975.4       $ 1,786.3       $ 1,391.6       $ 971.4       $ 542.9   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Financial Highlights

 

Selected per share data       
     Class E  
     Six Months
Ended
June 30,
2013		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.78      $ 11.85       $ 11.39       $ 11.13       $ 9.80       $ 10.96   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.01        0.18         0.22         0.14         0.28         0.37   

Net realized and unrealized gain (loss) on investments

      (0.89 )      0.86         1.00         0.71         1.45         (1.09 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.88 )      1.04         1.22         0.85         1.73         (0.72 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.25 )      (0.38 )       (0.20 )       (0.28 )       (0.40 )       (0.42 ) 

Distributions from net realized capital gains

      (0.63 )      (0.73 )       (0.56 )       (0.31 )       0.00         (0.02 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.88 )      (1.11 )       (0.76 )       (0.59 )       (0.40 )       (0.44 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.02      $ 11.78       $ 11.85       $ 11.39       $ 11.13       $ 9.80   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (7.98 )(c)      9.22         11.18         7.90         18.15         (6.92 ) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%)

      0.71  (d)      0.73         0.66         0.66         0.68         0.68   

Ratio of expenses to average net assets excluding interest expense (%)

      0.65  (d)      0.65         0.65         0.66         0.68         0.68   

Ratio of net investment income to average net assets (%)

      0.26  (d)      1.54         1.91         1.24         2.63         3.47   

Portfolio turnover rate (%)

      15  (c)(e)      53         458         527         668         1,143   

Net assets, end of period (in millions)

    $ 59.7      $ 70.5       $ 61.9       $ 52.8       $ 48.5       $ 38.8   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rate would have been 13% for the six months ended June 30, 2013.

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is PIMCO Inflation Protected Bond Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-24

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization

 

MIST-25

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to futures and swap transactions, foreign currency transactions, paydown, premium amortization, deferred deflation adjustments and treasury rolls. These adjustments have no impact on net assets or the results of operations.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Short Sales - The Portfolio may enter into a “short sale” of securities in circumstances in which, at the time the short position is open, the Portfolio owns an equal amount of the securities sold short or owns preferred stocks or debt securities, convertible or exchangeable without payment of further consideration, into an equal number of securities sold short. This kind of short sale, which is referred to as one “against the box,” may be entered into by the Portfolio to, for example, lock in a sale price for a security the Portfolio does not wish to sell immediately.

The Portfolio may also make short sales of a security it does not own, in anticipation of a decline in the market value of that security. To complete such a transaction, the Portfolio must borrow the security to make delivery to the buyer. The Portfolio then is obligated to replace the security borrowed by purchasing it at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold short by the Portfolio. Until the security is replaced, the Portfolio is required to pay to the lender any dividends or interest which accrue during the period of the loan. To borrow the security, the Portfolio also may be required to pay a premium, which would increase the cost of the security sold short. Until the Portfolio replaces a borrowed security, the Portfolio will segregate with its custodian, or set aside in the Portfolio’s records, cash or other liquid assets at such a level that (i) the amount segregated, or set aside, plus the amount deposited with the broker as collateral will equal the current value of the security sold short and (ii) the amount segregated plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time it was sold short. The Portfolio will incur a loss as a result of the short sale if the price of the security increases between the date of the short sale and the date on which the Portfolio replaces the borrowed security. The Portfolio will realize a gain if the security declines in price between those dates. This result is the opposite of what one would expect from a cash purchase of a long position in a security. The amount of any gain will be decreased, and the amount of any loss increased, by the amount of any premium, dividends or interest the Portfolio may be required to pay in connection with a short sale. No more than one third of the Portfolio’s net assets will be, when added together: (i) deposited as collateral for the obligation to replace securities borrowed to effect short sales; and (ii) segregated in connection with short sales.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $1,254,800,000, which is included on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Reverse Repurchase Agreements - The Portfolio may enter into reverse repurchase agreements with qualified institutions. In a reverse repurchase agreement, the Portfolio transfers securities in exchange for cash to a financial institution or counterparty, concurrently with an agreement by the Portfolio to reacquire the same securities at an agreed upon price and date. During the reverse

 

MIST-26

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

repurchase agreement period, the Portfolio continues to receive principal and interest payments on these securities. The Portfolio will establish a segregated account with its custodian in which it will maintain liquid assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements involve the risk that the market value of the securities transferred by the Portfolio may decline below the agreed upon reacquisition price of the securities. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it. Cash received in exchange for securities transferred under reverse repurchase agreements plus accrued interest payments to be made by the Portfolio to counterparties are reflected as liabilities on the Statement of Assets and Liabilities. For the six months ended June 30, 2013, the Portfolio had an outstanding reverse repurchase agreement balance for 34 days. The average amount of borrowings was $45,918,147 and the weighted average interest rate was 0.19%.

Secured Borrowing Transactions - The Portfolio may enter into transactions consisting of a transfer of a security by the Portfolio to a financial institution or counterparty, with a simultaneous agreement to reacquire the same, or substantially the same security, at an agreed upon price and future settlement date. Such transactions are treated as secured borrowings, and not as purchases and sales. The Portfolio receives cash from the transfer of the security to use for other investment purposes. During the period ended June 30, 2013, the Portfolio entered into secured borrowing transactions involving U.S. Treasury and sovereign debt securities. During the term of the borrowing, the Portfolio is not entitled to receive principal and interest payments, if any, made on the security transferred to the counterparty during the term of the agreement. The difference between the transfer price and the reacquisition price, known as the “price drop”, is included in net investment income with the cost of the secured borrowing transaction being recorded in interest expense over the term of the borrowing. The agreed upon proceeds for securities to be reacquired by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities.

For the six months ended June 30, 2013, the Portfolio’s average amount of borrowings was $1,115,482,974 and the weighted average interest rate was 0.216%. At June 30, 2013, the amount of the Portfolio’s outstanding borrowings was $2,142,539,593. For the six months ended June 30, 2013, the Portfolio had an outstanding secured borrowing transaction balance for 181 days.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells TBA mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Secured borrowing transactions and mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to reacquire may be less than the agreed upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the secured borrowing transaction or mortgage dollar roll.

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

TBA Purchase & Forward Sale Commitments - The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. TBA forward sales commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations or an assignment, the Portfolio generally will have no right to enforce compliance by the borrower, with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower and the Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment.

 

MIST-27

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Mortgage Related and Other Asset Backed Securities - The Portfolio may invest in mortgage related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

High Yield Debt Securities - The Portfolio may invest in high yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high yield debt securities are less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s Subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

 

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of

 

MIST-28

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Options Contracts - An option contract purchased by the Portfolio gives the Portfolio the right, but not the obligation, to buy (call) or sell (put) an underlying instrument at a fixed exercise price during a specified period. Call options written by the Portfolio give the holder the right to buy the underlying instrument from the Portfolio at a fixed exercise price; put options written by the Portfolio give the holder the right to sell the underlying instrument to the Portfolio at a fixed exercise price.

The Portfolio may use options to hedge against changes in values of securities the Portfolio owns or expects to purchase, to maintain exposure to the broad equity markets or to enhance return. Writing puts or buying calls tend to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tend to decrease the Portfolio’s exposure to the underlying instrument, and can be used to hedge other Portfolio investments. For options used to hedge the Portfolio’s investments, the potential risk to the Portfolio is that the change in value of options contracts may not correspond perfectly to the change in value of the hedged instruments. The Portfolio also bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Portfolio may not be able to enter into a closing transaction due to an illiquid market. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of purchased options is typically the premium initially paid for the option plus any unrealized gains.

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered a loss. The risk associated with writing a call option is that the Portfolio may forgo the opportunity for a profit if the market value of the underlying instrument increases and the option is exercised, requiring the Portfolio to sell the underlying instrument at a price below its market value. When the Portfolio writes a call option on a security it does not own, its exposure on such an option is theoretically unlimited. The risk in writing a put option is that the Portfolio may incur a loss if the market value of the underlying instrument decreases and the option is exercised, requiring the Portfolio to purchase the underlying instrument at a price above its market value. In addition, the Portfolio risks not being able to enter into a closing transaction for the written option as the result of an illiquid market for the option.

Purchases of put and call options are recorded as investments, the value of which are marked-to-market daily. When a purchased option expires without being exercised, the Portfolio will realize a loss equal to the premium paid. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the premium initially paid for the option. When the Portfolio exercises a put option, it will realize a gain or loss from the sale of the underlying instrument and the proceeds from such sale will be decreased by the premium originally paid for the put option. When the Portfolio exercises a call option, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid for the call option.

 

The premium received for a written option is recorded as an asset and an equivalent liability. The liability is marked-to-market daily in accordance with the option’s valuation policy. When a written option expires without being exercised or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying instrument and the liability related to such option is eliminated. When a written call option is exercised, the Portfolio realizes a gain or loss, as adjusted for the premium received, from the sale of the underlying instrument. When a written put option is exercised, the premium received is offset against the amount paid for the purchase of the underlying instrument.

The purpose of inflation-capped options is to protect the buyer from inflation, above a specified rate, eroding the value of investments in inflation-linked products with a given notional exposure. Inflation-capped options are used to give downside protection to investments in inflation-linked products by establishing a floor on the value of such products.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

 

MIST-29

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Credit Default Swaps: The Portfolio is subject to credit risk in the normal course of pursuing its investment objectives. The Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers, or to create exposure to corporate and/or sovereign issuers to which it is not otherwise exposed. Credit default swaps involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return if a credit event occurs for the referenced entity, obligation or index. A credit event is defined under the terms of each swap agreement and may include, but is not limited to, underlying entity default, bankruptcy, write-down, principal shortfall or interest shortfall. As the seller of protection, if an underlying credit event occurs, the Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation (or underlying securities comprising the referenced index), or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). In return, the Portfolio would receive from the counterparty an upfront or periodic stream of payments throughout the life of the credit default swap agreement, provided that no credit event has occurred. As the seller of protection, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the credit default swap.

 

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may expire worthless and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event, the credit event is settled based on that entities weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less expensive than it would be to buy

 

MIST-30

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on a credit index or corporate or sovereign issuer serve as some indication of the status of the payment/performance risk and the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity or index also reflects the cost of buying/ selling protection and may reflect upfront payments required to be made to enter into the agreement. Wider credit spreads generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the particular swap agreement. When no implied credit spread is available for a credit default swap, the current unrealized appreciation/depreciation on the position may be used as an indicator of the current status of the payment/performance risk.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of June 30, 2013, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

 

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust the interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contracts remaining life, to the extent that amount is positive.

Asset Swaps: Asset swaps combine an interest rate swap with a bond and are used to alter the cash flow profile of a bond. Asset swaps can be used to transform the cash flow characteristics of referenced assets, so that the Portfolio can hedge the currency, credit, and interest rate risks to create synthetic investments with more suitable cash flow characteristics. An asset swap involves transactions in which a Portfolio acquires or sells a bond position and then enters into an interest rate swap which transforms the fixed coupon of the bond into a floating coupon.

Centrally Cleared Swaps: Certain clearinghouses currently offer clearing for limited types of derivatives transactions, principally credit derivatives. In a cleared derivative transaction, a Portfolio typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Portfolio’s exposure to the credit risk of the original counterparty. The Portfolio typically will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared derivative transaction. Only a limited number of derivative transactions are currently eligible for clearing.

 

MIST-31

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value     

Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate    Investments at market value (a)    $ 761,128         
   Swaps at market value (c)      2,877,110       Swaps at market value (c)    $ 4,739,929   
   Unrealized appreciation on centrally cleared swaps* (b)      4,970,389         
         Unrealized depreciation on futures contracts** (b)      3,501,096   
         Options written at value (d)      8,484,860   
         Swaps at market value (c)      466,287   
Credit    Unrealized appreciation on centrally cleared swaps* (b)      75,057         
         Option written at market value      5,300   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      13,674,218       Unrealized depreciation on forward foreign currency exchange contracts      14,750,481   
     

 

 

        

 

 

  
Total       $ 22,357,902          $ 31,947,953   
     

 

 

        

 

 

  

 

  * Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.
  ** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(e)		     Net Amount  

Barclays Bank plc

    $ 838,506       $ (396,227 )    $ —      $ 442,279   

BNP Paribas S.A.

      770,729         (770,729 )      —        —   

Citibank N.A.

      2,418,148         (1,117,290 )      (420,000 )      880,858   

Credit Suisse International

      329,900         (329,900 )      —        —   

Deutsche Bank AG

      2,176,124         (2,176,124 )      —        —   

Goldman Sachs & Co.

      579,239         (579,239 )      —        —   

JPMorgan Chase Bank N.A.

      260,922         (260,922 )      —        —   

Morgan Stanley & Co., LLC

      15,924         (15,924 )      —        —   

Morgan Stanley Capital Services, LLC

      109,069         (109,069 )      —        —   

Societe Generale

      793,189         —        (793,189 )      —   

UBS AG

      3,831,247         (3,831,247 )      —        —   

Westpac Banking Corp.

      5,189,459         —        (3,870,000 )      1,319,459   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 17,312,456       $ (9,586,671 )    $ (5,083,189 )    $ 2,642,596   
  

 

 

     

 

 

    

 

 

    

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged(e)		     Net Amount  

Barclays Bank plc

    $ 396,227       $ (396,227 )    $ —      $ —   

BNP Paribas S.A.

      856,170         (770,729 )      (20,987 )      64,454   

Citibank N.A.

      1,117,290         (1,117,290 )      —        —   

Credit Suisse International

      712,601         (329,900 )      (308,469 )      74,232   

Deutsche Bank AG

      4,227,642         (2,176,124 )      (2,051,518 )      —   

Goldman Sachs & Co.

      5,124,244         (579,239 )      (4,545,005 )      —   

JPMorgan Chase Bank N.A.

      2,117,321         (260,922 )      (1,586,131 )      270,268   

Morgan Stanley & Co., LLC

      5,092,907         (15,924 )      —        5,076,983   

Morgan Stanley Capital Services, LLC

      3,170,206         (109,069 )      (2,397,441 )      663,696   

UBS AG

      5,080,763         (3,831,247 )      (969,767 )      279,749   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 27,895,371       $ (9,586,671 )    $ (11,879,318 )    $ 6,429,382   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

MIST-32

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Credit     Foreign
Exchange		     Total  

Investments (a)

    $ —      $ —      $ 100,674      $ 100,674   

Forward foreign currency transactions

      —        —        40,857,085        40,857,085   

Futures contracts

      115,471        —        —        115,471   

Swap contracts

      2,631,749        358,733        —        2,990,482   

Written options contracts

      1,338,953        —        143,443        1,482,396   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 4,086,173      $ 358,733      $ 41,101,202      $ 45,546,108   
  

 

 

    

 

 

    

 

 

    

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation
(Depreciation)

    Interest Rate     Credit     Foreign
Exchange		     Total  

Investments (a)

    $ 387,263      $ —      $ —      $ 387,263   

Forward foreign currency transactions

      —        —        (8,111,483 )      (8,111,483 ) 

Futures contracts

      (3,909,686 )      —        —        (3,909,686 ) 

Swap contracts

      (1,784,957 )      (660,359 )      —        (2,445,316 ) 

Written options contracts

      (3,730,362 )      —        102,050        (3,628,312 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (9,037,742 )    $ (660,359 )    $ (8,009,433 )    $ (17,707,534 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(f)		  

Investments (a)

    $ 25,400,000   

Forward Foreign currency transactions

      1,210,373,217   

Futures contracts long

      455,744,566   

Swap contracts

      502,570,980   

Written options contracts

      1,065,290,257   

 

  (a) Includes options purchased which are part of investments as shown in the Statement of Assets and Liabilities and net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.
  (b) Financial instrument not subject to a master netting agreement.
  (c) Excludes swap interest receivable of $447 and swap interest payable of $284,352.
  (d) Includes exchange traded written options with a value of $(551,486) not subject to master netting agreement.
  (e) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (f) Averages are based on activity levels during 2013.

Options Written

The Portfolio transactions in options written during the six months June 30, 2013:

 

Call Options

    Notional
Amount		      Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2012

      242,700,000         –       $ 1,630,388   

Options written

      2,037,300,000         195         1,432,346   

Options bought back

      (83,000,000 )       –         (916,940 ) 

Options exercised

      (54,900,000 )       –         (619,468 ) 

Options expired

      (1,878,000,000 )       –         (786,982 ) 
  

 

 

     

 

 

     

 

 

  

Options outstanding June 30, 2013

      264,100,000         195       $ 739,344   
  

 

 

     

 

 

     

 

 

  

Put Options

    Notional
Amount		      Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2012

      400,100,000         –       $ 4,102,969   

Options written

      2,460,000,000         195         5,038,558   

Options bought back

      (133,500,000 )       –         (831,445 ) 

Options exercised

      (113,700,000 )       –         (435,725 ) 

Options expired

      (1,933,500,000 )       –         (2,879,578 ) 
  

 

 

     

 

 

     

 

 

  

Options outstanding June 30, 2013

      679,400,000         195       $ 4,994,779   
  

 

 

     

 

 

     

 

 

  

 

MIST-33

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions and, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$482,091,796    $ 148,185,737       $ 805,750,108       $ 89,688,990   

 

MIST-34

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

Purchases and sales of mortgage dollar rolls and TBA transactions for the six months ended June 30, 2013 were as follows:

 

Purchases

    Sales  
$65,778,828    $ 46,124,297   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Pacific Investment Management Company LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$8,519,620      0.500 %    First $1.2 billion
     0.450 %    Over $1.2 billion

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of

 

MIST-35

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Notes to Financial Statements—June 30, 2013—(Continued)

 

indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$310,184,267    $ 189,579,364       $ 19,276,820       $ 6,687,680       $ 329,461,087       $ 196,267,044   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$277,962,790    $ 2,711,378       $ 3,451,235       $ —       $ 284,125,403   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-36

Met Investors Series Trust

PIMCO Inflation Protected Bond Portfolio

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of PIMCO Inflation Protected Bond Portfolio and the Board of Trustees of Met Investors Series Trust:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of the PIMCO Inflation Protected Bond Portfolio, one of the portfolios constituting Met Investors Series Trust (the “Trust”), as of June 30, 2013, and the related statements of operations and cash flows for the six months then ended, the statement of changes in net assets for the six months ended June 30, 2013 and the year ended December 31, 2012, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of June 30, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the PIMCO Inflation Protected Bond Portfolio of the Met Investors Series Trust as of June 30, 2013, the results of its operations and its cash flows for the six months ended June 30, 2013, the changes in its net assets for the six months ended June 30, 2013 and the year ended December 31, 2012, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche, LLP

Boston, Massachusetts

August 23, 2013

 

MIST-37

Met Investors Series Trust

PIMCO Total Return Portfolio

Managed by Pacific Investment Management Company LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the PIMCO Total Return Portfolio returned -2.80%, -2.92%, and -2.83%, respectively. The Portfolio’s benchmark, the Barclays U.S. Aggregate Bond Index1, returned -2.44%.

MARKET ENVIRONMENT / CONDITIONS

U.S. interest rates sold off during the first half of the year and ended the period significantly above their beginning levels. Treasuries with maturities longer than 2 years ended with higher yields. Intermediate and long-dated maturity yields rose following Chairman Bernanke’s comments that the Federal Reserve (“Fed”) could begin tapering asset purchases by the end of 2013. The 10-year U.S. Treasury yield rose 73 basis points during the period to end June at 2.49 percent. Developed market yields also rose around the globe. The broad rates sell-off led the U.S. Treasury yield curve to steepen as the 2-year U.S. Treasury rose 11 basis points, while the 30-year U.S. Treasury rose 55 basis points. The Barclays U.S. Aggregate Bond Index, a widely used index of U.S. high-grade bonds that includes Treasuries, returned -2.44 percent during the first half of the year.

U.S. equity indices reached new highs in the first quarter as signs of renewed momentum in the world’s largest economy fueled risk appetite. Investors discounted negative fiscal policy developments—including Congress’ failure to reach a deal on sequestration—and instead focused on positive news out of the housing and labor markets. However, conditions in financial markets deteriorated in the second quarter as investors reacted to signals by the Fed that it would begin to slow the pace of asset purchases later this year if its forecasts are met. The shift in tone fueled a broad-based sell-off of fixed income assets, undermining market liquidity, and sending yields higher across the risk spectrum. While patchy, economic activity in aggregate looks to be on track so far in 2013, with the labor market generating an average of 200,000 new jobs a month since the start of the year, there is concern that the recent deterioration in financial conditions will adversely impact the real economy. Thirty-year fixed mortgage rates rose over half a percentage point in June to the highest level since August 2011. While it will take time before the effect of higher rates on housing demand is fully known, the notable decline in mortgage refinancing applications in June offers an early clue.

In Europe, a botched rescue of the Cypriot financial system set new precedents in the eurozone’s four-year old debt crisis. Although market reaction to the latest flare-up was relatively calm, the worry is that such precedents may engender instability and handicap leaders’ efforts to resolve future crises. Concurrently, the European Central Bank (ECB) remains committed to keeping rates low for as long as necessary to facilitate governments’ implementation of structural economic reforms. The ECB lowered its benchmark interest rate to 0.5 percent during the second quarter as eurozone gross domestic product (GDP) contracted in the first three months of the year, and the unemployment rate continued to reach new highs. Strict austerity programs are likely exacerbating the situation and European governments have responded by pushing for a relaxation of budget targets. The question now is whether countries can succeed in spreading austerity out over a longer time horizon without abandoning the fiscal sustainability that markets ultimately demand.

Across the Pacific, Japan’s new government unveiled an aggressive fiscal stimulus package designed to boost employment and growth. The Bank of Japan (BoJ) stunned markets by introducing a host of new monetary measures aimed at ending the country’s chronic history of deflation. Along with a potent dose of fiscal stimulus—affectionately dubbed “Abenomics” after the country’s new Prime Minister—the combined measures constitute one of the boldest economic policy experiments in the country’s history.

PORTFOLIO REVIEW / PERIOD END POSITIONING

An underweight to U.S. duration, through the use of cash bonds and interest rate swaps, for most of the first half added to performance as rates rose across the curve during the period; however, a focus on the intermediate portion of the yield curve detracted from returns as rates rose most along this portion of the curve. An allocation to non-Agency mortgages contributed to performance, as they benefited from the ongoing housing recovery. In the corporate bond sector, an underweight to corporate securities added to returns as they underperformed like-duration Treasuries. Modest exposure to emerging markets, especially to Brazilian local-denominated debt through the use of interest rate swaps and cash bonds, was negative for performance as rates rose in this country. Finally, holdings of inflation-linked bonds detracted from performance as breakeven inflation levels narrowed amid reduced inflation expectations and technical factors.

In regards to Portfolio positioning as of June 30, 2013, PIMCO has continued in risk reduction mode while preferring liquidity and high quality income over price appreciation, as risk premiums still appear richly priced relative to our outlook. We have maintained high quality duration in countries with healthier balance sheets and independent monetary policy—including the U.S., Australia, Canada, Brazil, and Mexico. We are concentrated on the intermediate portion of the yield curve which offers the best potential for price appreciation given the suppression of yields on shorter maturities. We have selectively added holdings in Agency Mortgage backed Securities (MBS) to neutral/overweight versus the benchmark; likewise, we have utilized security selection to take advantage of relative coupon valuations. We have shifted credit exposure towards securities higher in the capital structure and looked to individual credit selections to achieve superior risk-adjusted returns. We continued to hold non-Agency MBS and commercial MBS that have senior positions in the

 

MIST-1

Met Investors Series Trust

PIMCO Total Return Portfolio

Managed by Pacific Investment Management Company LLC

Portfolio Manager Commentary*—(Continued)

 

capital structure as another source of yield. We have retained longer dated Treasury Inflation-Protected Securities (TIPS) positions given attractive valuations and to protect against potentially higher long-term inflation. We have retained exposure to select corporate and quasi-sovereign bonds in countries with strong balance sheets such as Brazil and Mexico.

William H. Gross

Portfolio Manager

Pacific Investment Management Company LLC

 

MIST-2

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

Met Investors Series Trust

PIMCO Total Return Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. AGGREGATE BOND INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year  
PIMCO Total Return Portfolio                      

Class A

        -2.80           1.30           7.37           5.71   

Class B

        -2.92           0.99           7.11           5.46   

Class E

        -2.83           1.14           7.21           5.56   
Barclays U.S. Aggregate Bond Index        -2.44           -0.69           5.19           4.52   

1 The Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities and commercial mortgagebacked securities.

 

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

         
% of
Net Assets		  
Fannie Mae 30 Yr. Pool      33.3   
U.S. Treasury Notes      25.6   
U.S. Treasury Inflation Indexed Bonds      5.3   
Federal Home Loan Mortgage Corp.      4.4   
Fannie Mae 15 Yr. Pool      3.7   
Ginnie Mae I 30 Yr. Pool      2.4   
Freddie Mac 30 Yr. Gold Pool      2.1   
U.S. Treasury Inflation Indexed Notes      2.0   
Province of Ontario      1.9   
Brazil Notas do Tesouro Nacional      1.7   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
U.S. Treasury & Government Agencies      74.7   
Corporate Bonds & Notes      10.6   
Foreign Government      4.4   
Mortgage-Backed Securities      3.9   
Municipals      3.8   
Asset-Backed Securities      1.7   
Convertible Preferred Stocks      0.5   
Preferred Stocks      0.3   
Floating Rate Loans      0.1   

 

MIST-3

Met Investors Series Trust

PIMCO Total Return Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

PIMCO Total Return Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

    Actual      0.51 %     $ 1,000.00         $ 972.00         $ 2.49   
   Hypothetical*      0.51 %     $ 1,000.00         $ 1,022.27         $ 2.56   

Class B

    Actual      0.76 %     $ 1,000.00         $ 970.80         $ 3.71   
   Hypothetical*      0.76 %     $ 1,000.00         $ 1,021.03         $ 3.81   

Class E

    Actual      0.66 %     $ 1,000.00         $ 971.70         $ 3.23   
   Hypothetical*      0.66 %     $ 1,000.00         $ 1,021.52         $ 3.31   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—82.5% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—43.9%

  

Fannie Mae 10 Yr. Pool
2.500%, 08/01/22

     416,291      $ 427,778   

3.000%, 12/01/20

     393,845        411,050   

3.000%, 02/01/21

     1,114,458        1,163,282   

3.000%, 08/01/21

     801,114        836,158   

3.000%, 11/01/21

     198,567        207,288   

3.000%, 03/01/22

     825,981        862,358   

3.000%, 05/01/22

     2,741,822        2,861,380   

3.500%, 10/01/20

     4,443,467        4,645,634   

4.500%, 11/01/18

     54,495        57,767   

4.500%, 12/01/18

     36,822        39,032   

4.500%, 05/01/19

     1,390,544        1,473,838   

5.500%, 11/01/17

     192,170        203,111   

5.500%, 09/01/18

     316,840        334,965   

5.500%, 10/01/18

     142,260        150,262   

Fannie Mae 15 Yr. Pool
2.500%, TBA (a)

     81,000,000        81,468,277   

3.000%, 07/01/26

     371,938        382,895   

3.000%, 12/01/26

     476,448        490,443   

3.000%, 02/01/27

     1,346,774        1,387,101   

3.000%, TBA (a)

     99,000,000        101,830,786   

3.500%, 10/01/25

     7,923,446        8,266,193   

3.500%, 11/01/25

     113,581        118,482   

3.500%, 12/01/25

     8,060,533        8,403,194   

3.500%, 01/01/26

     60,463        63,019   

3.500%, 03/01/26

     5,584,433        5,819,685   

3.500%, 04/01/26

     78,185        81,474   

3.500%, 07/01/26

     4,321,906        4,502,827   

3.500%, 08/01/26

     3,888,532        4,053,384   

3.500%, 09/01/26

     11,317,463        11,794,547   

3.500%, 12/01/26

     4,501,269        4,691,781   

3.500%, TBA (a)

     17,000,000        17,706,562   

4.000%, 03/01/22

     132,757        140,225   

4.000%, 07/01/24

     50,956        53,869   

4.000%, 02/01/25

     1,772,162        1,872,448   

4.000%, 09/01/25

     108,516        114,407   

4.000%, 06/01/26

     88,556        93,376   

4.000%, TBA (a)

     14,000,000        14,747,577   

4.500%, 02/01/18

     25,671        27,251   

4.500%, 04/01/18

     1,173,981        1,247,250   

4.500%, 05/01/18

     886,235        941,841   

4.500%, 06/01/18

     158,565        168,320   

4.500%, 08/01/18

     13,799        14,669   

4.500%, 10/01/18

     48,414        51,449   

4.500%, 03/01/19

     33,833        35,860   

4.500%, 10/01/19

     594,476        631,579   

4.500%, 08/01/20

     820,102        871,121   

4.500%, 10/01/20

     44,424        47,160   

4.500%, 12/01/20

     457,373        485,620   

4.500%, 01/01/22

     35,900        38,610   

4.500%, 02/01/23

     617,213        655,637   

4.500%, 03/01/23

     377,551        401,042   

4.500%, 05/01/23

     124,799        132,388   

4.500%, 06/01/23

     652,524        692,448   

4.500%, 01/01/24

     13,854        14,684   

4.500%, 04/01/24

     179,857        190,944   

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 15 Yr. Pool
4.500%, 05/01/24

     610,151      $ 647,078   

4.500%, 08/01/24

     127,823        135,725   

4.500%, 10/01/24

     830,100        880,658   

4.500%, 11/01/24

     197,125        209,455   

4.500%, 02/01/25

     1,800,270        1,909,358   

4.500%, 03/01/25

     1,138,250        1,206,658   

4.500%, 04/01/25

     566,529        600,894   

4.500%, 05/01/25

     1,845,113        1,957,091   

4.500%, 06/01/25

     204,561        216,933   

4.500%, 07/01/25

     6,975,136        7,398,505   

4.500%, 08/01/25

     287,261        304,715   

4.500%, 09/01/25

     533,554        565,756   

4.500%, 11/01/25

     294,850        312,950   

4.500%, 04/01/26

     34,624        36,724   

4.500%, 01/01/27

     64,989        68,906   

4.500%, TBA (a)

     16,000,000        16,961,875   

5.500%, 12/01/17

     7,767        8,202   

5.500%, 01/01/18

     201,119        212,965   

5.500%, 02/01/18

     1,589,137        1,682,904   

5.500%, 11/01/18

     6,217        6,585   

5.500%, 09/01/19

     208,049        219,739   

5.500%, 09/01/20

     32,439        35,023   

5.500%, 12/01/20

     6,009        6,367   

5.500%, 03/01/22

     350,640        370,278   

5.500%, 04/01/22

     313,063        334,751   

5.500%, 07/01/22

     233,402        250,786   

5.500%, 09/01/22

     141,444        152,635   

5.500%, 10/01/22

     1,097,116        1,183,317   

5.500%, 11/01/22

     293,550        313,237   

5.500%, 12/01/22

     229,736        247,921   

5.500%, 02/01/23

     372,701        402,259   

5.500%, 03/01/23

     52,887        57,040   

5.500%, 07/01/23

     25,029        27,010   

5.500%, 08/01/23

     173,488        187,236   

5.500%, 10/01/23

     254,381        274,578   

5.500%, 11/01/23

     42,239        44,619   

5.500%, 12/01/23

     114,226        123,192   

5.500%, 01/01/24

     33,794        36,198   

5.500%, 03/01/24

     206,377        222,631   

5.500%, 09/01/24

     141,150        149,064   

5.500%, 01/01/25

     2,723,482        2,937,508   

5.500%, 05/01/25

     855,471        905,961   

6.000%, 03/01/17

     8,476        8,636   

6.000%, 04/01/17

     17,330        18,249   

6.000%, 06/01/17

     7,975        8,400   

6.000%, 07/01/17

     41,877        44,066   

6.500%, 12/01/13

     8        8   

6.500%, 04/01/16

     20,692        21,612   

6.500%, 06/01/16

     10,006        10,536   

6.500%, 07/01/16

     34,253        36,179   

6.500%, 08/01/16

     2,088        2,213   

6.500%, 09/01/16

     13,054        13,852   

6.500%, 10/01/16

     28,215        30,025   

6.500%, 02/01/17

     22,596        23,867   

6.500%, 07/01/17

     24,512        24,741   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 15 Yr. Pool
6.500%, 10/01/17

     9,977      $ 10,774   

Fannie Mae 20 Yr. Pool
4.000%, 04/01/29

     161,316        168,884   

4.000%, 05/01/29

     515,262        539,635   

4.000%, 03/01/30

     316,941        332,005   

4.000%, 05/01/30

     457,091        478,396   

4.000%, 08/01/30

     427,867        446,126   

4.000%, 09/01/30

     261,006        272,376   

4.000%, 10/01/30

     10,802        11,264   

4.000%, 11/01/30

     1,104,141        1,151,484   

4.000%, 12/01/30

     150,127        156,569   

4.000%, 09/01/31

     572,265        597,527   

4.000%, 11/01/31

     123,486        128,961   

4.500%, 01/01/25

     28,308        30,409   

4.500%, 04/01/28

     84,206        89,872   

4.500%, 05/01/29

     617,111        654,354   

4.500%, 06/01/29

     212,071        225,349   

4.500%, 07/01/29

     59,142        62,681   

4.500%, 03/01/30

     43,701        46,435   

4.500%, 05/01/30

     20,963        22,216   

4.500%, 06/01/30

     3,413,139        3,615,476   

4.500%, 07/01/30

     205,388        217,708   

4.500%, 04/01/31

     123,909        131,239   

5.000%, 05/01/23

     354,818        381,653   

5.000%, 01/01/25

     300,422        324,674   

5.000%, 09/01/25

     91,716        99,758   

5.000%, 11/01/25

     124,084        133,645   

5.000%, 01/01/26

     222,342        241,876   

5.000%, 03/01/26

     152,723        166,194   

5.000%, 02/01/27

     17,671        19,007   

5.000%, 05/01/27

     485,617        525,442   

5.000%, 08/01/27

     11,784        12,765   

5.000%, 03/01/28

     53,816        58,210   

5.000%, 04/01/28

     1,644,393        1,778,986   

5.000%, 05/01/28

     1,937,828        2,084,288   

5.000%, 06/01/28

     5,867,107        6,347,854   

5.000%, 01/01/29

     187,903        202,247   

5.000%, 05/01/29

     890,964        958,035   

5.000%, 07/01/29

     269,055        289,486   

5.000%, 12/01/29

     67,694        73,390   

5.500%, 02/01/19

     39,556        42,956   

5.500%, 10/01/22

     55,081        59,830   

5.500%, 06/01/23

     530,649        575,794   

5.500%, 02/01/25

     6,644        7,279   

5.500%, 03/01/25

     1,374,705        1,510,632   

5.500%, 10/01/25

     11,304        12,358   

5.500%, 11/01/26

     69,431        75,632   

5.500%, 01/01/27

     153,218        166,938   

5.500%, 06/01/27

     29,567        32,205   

5.500%, 07/01/27

     636,204        697,360   

5.500%, 08/01/27

     269,324        292,997   

5.500%, 11/01/27

     115,920        125,865   

5.500%, 12/01/27

     582,758        633,810   

5.500%, 01/01/28

     289,045        314,594   

5.500%, 03/01/28

     154,329        167,560   

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 20 Yr. Pool
5.500%, 04/01/28

     427,661      $ 464,401   

5.500%, 05/01/28

     182,189        197,700   

5.500%, 06/01/28

     53,653        58,277   

5.500%, 07/01/28

     27,124        29,415   

5.500%, 09/01/28

     400,321        436,635   

5.500%, 10/01/28

     69,199        75,076   

5.500%, 12/01/28

     29,147        31,639   

5.500%, 01/01/29

     370,420        401,594   

5.500%, 07/01/29

     210,878        229,264   

5.500%, 10/01/29

     673,839        732,694   

5.500%, 04/01/30

     598,007        653,271   

6.000%, 08/01/18

     9,051        9,829   

6.000%, 12/01/18

     11,489        12,490   

6.000%, 02/01/19

     17,264        18,749   

6.000%, 06/01/22

     1,355,612        1,472,184   

6.000%, 09/01/22

     359,645        391,073   

6.000%, 10/01/22

     224,223        243,742   

6.000%, 01/01/23

     394,093        428,412   

6.000%, 12/01/26

     36,794        40,205   

6.000%, 07/01/27

     133,113        145,366   

6.000%, 11/01/27

     27,377        30,011   

6.000%, 09/01/28

     175,152        190,939   

6.000%, 10/01/28

     125,109        136,406   

Fannie Mae 30 Yr. Pool
3.000%, 05/01/43

     6,000,000        5,870,402   

3.000%, TBA (a)

     113,000,000        110,377,963   

3.500%, TBA (a)

     20,000,000        20,303,124   

4.000%, 05/01/34

     335,773        351,530   

4.000%, 05/01/35

     348,414        364,764   

4.000%, 01/01/39

     45,001        46,886   

4.000%, 02/01/39

     187,055        194,846   

4.000%, 04/01/39

     754,571        785,999   

4.000%, 05/01/39

     2,002,712        2,095,515   

4.000%, 06/01/39

     102,284        106,545   

4.000%, 09/01/39

     53,316        55,537   

4.000%, 12/01/39

     9,369,990        9,771,974   

4.000%, 03/01/40

     53,195        55,445   

4.000%, 05/01/40

     422,338        440,198   

4.000%, 06/01/40

     20,414        21,278   

4.000%, 07/01/40

     8,378,679        8,727,672   

4.000%, 08/01/40

     7,106,736        7,406,227   

4.000%, 09/01/40

     73,339,480        76,445,125   

4.000%, 10/01/40

     15,365,739        16,013,901   

4.000%, 11/01/40

     3,101,783        3,232,532   

4.000%, 12/01/40

     19,998,024        20,849,892   

4.000%, 01/01/41

     10,056,006        10,483,567   

4.000%, 02/01/41

     33,799,662        35,247,356   

4.000%, 03/01/41

     9,389,654        9,809,405   

4.000%, 04/01/41

     16,498,877        17,202,163   

4.000%, 05/01/41

     732,168        763,815   

4.000%, 06/01/41

     8,154,067        8,506,531   

4.000%, 07/01/41

     5,560,596        5,800,957   

4.000%, 08/01/41

     22,914,648        23,905,147   

4.000%, 09/01/41

     11,957,598        12,486,970   

4.000%, 10/01/41

     11,581,825        12,081,953   

4.000%, 11/01/41

     42,978,548        44,836,094   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
4.000%, 12/01/41

     42,416,884      $ 44,250,379   

4.000%, 01/01/42

     13,217,150        13,794,781   

4.000%, 02/01/42

     5,698,044        5,945,923   

4.000%, 03/01/42

     31,150,642        32,499,891   

4.000%, 04/01/42

     9,308,838        9,729,728   

4.000%, 05/01/42

     11,083,944        11,563,579   

4.000%, 06/01/42

     1,572,079        1,640,215   

4.000%, 07/01/42

     2,834,350        2,961,642   

4.000%, 08/01/42

     618,337        646,356   

4.000%, 12/01/42

     131,763        137,733   

4.000%, TBA (a)

     475,000,000        494,414,955   

4.500%, 09/01/33

     1,074,973        1,140,351   

4.500%, 10/01/33

     1,217,944        1,292,209   

4.500%, 01/01/34

     1,694,535        1,797,593   

4.500%, 07/01/34

     464,670        492,551   

4.500%, 12/01/34

     25,135        26,644   

4.500%, 01/01/35

     1,189,179        1,261,485   

4.500%, 08/01/35

     2,516,873        2,662,060   

4.500%, 09/01/35

     766,120        810,631   

4.500%, 10/01/35

     861,575        913,271   

4.500%, 11/01/35

     6,242        6,616   

4.500%, 07/01/36

     86,645        91,675   

4.500%, 12/01/36

     1,836,000        1,942,585   

4.500%, 01/01/37

     7,218,801        7,637,873   

4.500%, 02/01/37

     287,305        303,878   

4.500%, 08/01/37

     889,228        940,524   

4.500%, 12/01/37

     29,375,667        31,138,257   

4.500%, 06/01/38

     35,856,924        38,008,399   

4.500%, 08/01/38

     78,327        82,845   

4.500%, 11/01/38

     149,560        158,187   

4.500%, 12/01/38

     535,425        566,311   

4.500%, 01/01/39

     188,569        199,446   

4.500%, 02/01/39

     576,144        609,445   

4.500%, 03/01/39

     304,704        322,310   

4.500%, 04/01/39

     1,479,944        1,567,488   

4.500%, 05/01/39

     390,537        415,836   

4.500%, 06/01/39

     271,933        288,455   

4.500%, 07/01/39

     679,087        718,325   

4.500%, 08/01/39

     226,409        239,476   

4.500%, 09/01/39

     2,134,161        2,257,472   

4.500%, 10/01/39

     44,840        47,431   

4.500%, 11/01/39

     12,536,198        13,260,534   

4.500%, 12/01/39

     1,657,407        1,753,811   

4.500%, 01/01/40

     3,956,996        4,185,629   

4.500%, 02/01/40

     3,811,527        4,032,262   

4.500%, 04/01/40

     725,824        769,014   

4.500%, 05/01/40

     8,307,608        8,803,046   

4.500%, 06/01/40

     3,252,723        3,446,422   

4.500%, 07/01/40

     3,593,801        3,807,662   

4.500%, 08/01/40

     27,176,481        28,749,297   

4.500%, 09/01/40

     68,502,000        72,575,228   

4.500%, 10/01/40

     30,271,883        32,073,334   

4.500%, 11/01/40

     3,977,904        4,214,625   

4.500%, 12/01/40

     7,151,788        7,577,397   

4.500%, 01/01/41

     2,299,347        2,437,945   

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
4.500%, 02/01/41

     4,429,230      $ 4,694,893   

4.500%, 03/01/41

     6,396,397        6,781,747   

4.500%, 04/01/41

     26,069,228        27,641,587   

4.500%, 05/01/41

     49,050,397        52,032,891   

4.500%, 06/01/41

     32,105,762        34,041,884   

4.500%, 07/01/41

     31,354,466        33,245,429   

4.500%, 08/01/41

     16,291,252        17,275,630   

4.500%, 09/01/41

     6,269,732        6,648,897   

4.500%, 10/01/41

     368,062        390,258   

4.500%, 11/01/41

     12,364,820        13,110,239   

4.500%, 12/01/41

     3,294,108        3,486,235   

4.500%, 02/01/42

     310,579        332,769   

4.500%, 03/01/42

     857,403        918,545   

4.500%, 04/01/42

     675,014        717,468   

4.500%, 06/01/42

     416,155        445,889   

4.500%, 09/01/42

     28,078        29,700   

4.500%, TBA (a)

     245,000,000        259,073,750   

5.000%, 11/01/28

     150,595        163,426   

5.000%, 04/01/29

     644,665        699,595   

5.000%, 03/01/32

     4,280        4,645   

5.000%, 09/01/32

     4,981        5,389   

5.000%, 10/01/32

     15,818        17,112   

5.000%, 11/01/32

     3,933        4,255   

5.000%, 03/01/33

     6,699        7,247   

5.000%, 04/01/33

     6,100,039        6,599,104   

5.000%, 05/01/33

     1,114,787        1,205,992   

5.000%, 06/01/33

     2,404,483        2,601,199   

5.000%, 07/01/33

     11,981,300        12,962,524   

5.000%, 08/01/33

     500,107        541,184   

5.000%, 09/01/33

     1,046,231        1,131,977   

5.000%, 10/01/33

     853,016        923,861   

5.000%, 11/01/33

     1,722        1,898   

5.000%, 12/01/33

     9,178        9,929   

5.000%, 01/01/34

     241,792        266,270   

5.000%, 03/01/34

     291,288        314,571   

5.000%, 04/01/34

     836,763        911,373   

5.000%, 05/01/34

     1,062,625        1,150,434   

5.000%, 06/01/34

     859,417        928,316   

5.000%, 10/01/34

     4,722        5,100   

5.000%, 11/01/34

     1,562,116        1,689,832   

5.000%, 12/01/34

     597,802        647,800   

5.000%, 01/01/35

     1,011,669        1,096,916   

5.000%, 02/01/35

     21,835,593        23,616,055   

5.000%, 03/01/35

     20,531,487        22,162,690   

5.000%, 04/01/35

     180,669        195,022   

5.000%, 05/01/35

     280,678        302,467   

5.000%, 06/01/35

     12,068,498        13,031,849   

5.000%, 07/01/35

     39,386,150        42,519,303   

5.000%, 08/01/35

     4,045,260        4,356,304   

5.000%, 09/01/35

     4,960,152        5,340,532   

5.000%, 10/01/35

     10,345,383        11,145,168   

5.000%, 11/01/35

     1,970,771        2,122,045   

5.000%, 12/01/35

     2,226,890        2,397,662   

5.000%, 01/01/36

     207,772        223,706   

5.000%, 02/01/36

     8,290,043        8,931,135   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
5.000%, 03/01/36

     2,524,444      $ 2,720,200   

5.000%, 04/01/36

     98,496        106,050   

5.000%, 05/01/36

     96,819        104,215   

5.000%, 06/01/36

     408,746        440,648   

5.000%, 07/01/36

     203,788        219,421   

5.000%, 08/01/36

     2,565,247        2,761,967   

5.000%, 09/01/36

     570,702        614,468   

5.000%, 10/01/36

     208,864        224,464   

5.000%, 11/01/36

     1,497,381        1,612,048   

5.000%, 12/01/36

     1,364,644        1,469,724   

5.000%, 01/01/37

     260,344        279,789   

5.000%, 02/01/37

     12,385,867        13,333,701   

5.000%, 03/01/37

     278,598        299,406   

5.000%, 04/01/37

     11,166,643        12,008,503   

5.000%, 05/01/37

     1,833,089        1,969,996   

5.000%, 06/01/37

     884,605        950,674   

5.000%, 07/01/37

     3,593,248        3,875,612   

5.000%, 08/01/37

     1,071,907        1,157,095   

5.000%, 01/01/38

     269,182        289,286   

5.000%, 02/01/38

     4,170,247        4,494,508   

5.000%, 03/01/38

     1,462,506        1,574,203   

5.000%, 04/01/38

     1,355,625        1,456,873   

5.000%, 05/01/38

     9,583,178        10,319,592   

5.000%, 06/01/38

     542,628        583,156   

5.000%, 07/01/38

     123,297        132,505   

5.000%, 08/01/38

     4,612,451        4,971,468   

5.000%, 12/01/38

     388,002        416,981   

5.000%, 01/01/39

     21,172,221        22,753,514   

5.000%, 02/01/39

     5,180,407        5,583,077   

5.000%, 03/01/39

     54,566        58,807   

5.000%, 04/01/39

     6,255,573        6,742,378   

5.000%, 05/01/39

     180,716        194,213   

5.000%, 06/01/39

     2,166,014        2,335,136   

5.000%, 07/01/39

     3,676,135        3,953,660   

5.000%, 09/01/39

     27,471        29,607   

5.000%, 10/01/39

     22,975        24,977   

5.000%, 11/01/39

     6,275,966        6,744,700   

5.000%, 05/01/40

     784,182        852,700   

5.000%, 06/01/40

     382,125        415,836   

5.000%, 07/01/40

     3,924,900        4,280,169   

5.000%, 08/01/40

     111,048        121,706   

5.000%, 09/01/40

     81,878        87,993   

5.000%, 11/01/40

     918,009        991,152   

5.000%, 02/01/41

     194,135        209,023   

5.000%, 03/01/41

     323,479        353,157   

5.000%, 04/01/41

     1,264,199        1,382,922   

5.000%, 05/01/41

     6,985,572        7,626,485   

5.000%, 06/01/41

     2,085,449        2,276,784   

5.000%, 07/01/41

     3,356,424        3,625,802   

5.000%, 08/01/41

     428,936        468,290   

5.000%, 10/01/41

     350,161        376,313   

5.000%, 01/01/42

     1,085,668        1,171,835   

5.000%, 04/01/42

     707,324        760,153   

5.000%, 11/01/42

     382,073        420,771   

5.000%, TBA (a)

     47,000,000        50,570,704   

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
5.500%, 12/01/28

     64,879      $ 71,091   

5.500%, 06/01/33

     170,350        185,822   

5.500%, 07/01/33

     25,205        27,585   

5.500%, 04/01/34

     7,336        8,044   

5.500%, 05/01/34

     132,043        144,772   

5.500%, 06/01/34

     103,979        114,004   

5.500%, 07/01/34

     79,313        87,598   

5.500%, 08/01/34

     630,127        689,688   

5.500%, 09/01/34

     15,439        16,927   

5.500%, 11/01/34

     695,902        762,991   

5.500%, 12/01/34

     1,782,755        1,954,625   

5.500%, 01/01/35

     994,441        1,090,311   

5.500%, 02/01/35

     1,403,014        1,538,037   

5.500%, 03/01/35

     205,050        223,741   

5.500%, 05/01/35

     4,516        4,925   

5.500%, 06/01/35

     685,642        747,779   

5.500%, 08/01/35

     29,377        32,020   

5.500%, 09/01/35

     10,118,956        11,035,999   

5.500%, 10/01/35

     175,097        190,965   

5.500%, 12/01/35

     3,889,576        4,242,407   

5.500%, 01/01/36

     62,479        68,141   

5.500%, 02/01/36

     8,596        9,326   

5.500%, 04/01/36

     61,103        66,291   

5.500%, 05/01/36

     3,954,668        4,299,402   

5.500%, 06/01/36

     3,726,990        4,043,432   

5.500%, 07/01/36

     3,761,553        4,124,074   

5.500%, 09/01/36

     603,965        659,377   

5.500%, 10/01/36

     40,174        43,584   

5.500%, 11/01/36

     207,886        225,535   

5.500%, 12/01/36

     3,252,089        3,528,208   

5.500%, 01/01/37

     189,947        206,074   

5.500%, 02/01/37

     491,345        533,127   

5.500%, 03/01/37

     9,476,536        10,312,519   

5.500%, 04/01/37

     324,851        352,419   

5.500%, 05/01/37

     34,544        37,464   

5.500%, 06/01/37

     230,617        250,117   

5.500%, 07/01/37

     1,146,616        1,243,699   

5.500%, 08/01/37

     502,016        547,512   

5.500%, 12/01/37

     482,663        523,477   

5.500%, 01/01/38

     34,211,759        37,104,694   

5.500%, 02/01/38

     6,463,869        7,012,897   

5.500%, 03/01/38

     5,178,122        5,703,192   

5.500%, 04/01/38

     2,165,280        2,348,374   

5.500%, 05/01/38

     31,174,389        33,811,697   

5.500%, 06/01/38

     3,906,240        4,239,717   

5.500%, 07/01/38

     4,781,539        5,185,955   

5.500%, 08/01/38

     1,195,052        1,296,106   

5.500%, 09/01/38

     31,775        34,463   

5.500%, 10/01/38

     225,743        244,831   

5.500%, 11/01/38

     4,564,257        4,950,209   

5.500%, 12/01/38

     1,501,539        1,632,194   

5.500%, 01/01/39

     45,623        49,488   

5.500%, 04/01/39

     504,916        547,784   

5.500%, 05/01/39

     13,386,421        14,518,373   

5.500%, 06/01/39

     16,515        17,912   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
5.500%, 08/01/39

     502,563      $ 546,545   

5.500%, 09/01/39

     1,017,733        1,108,759   

5.500%, 11/01/39

     764,936        829,619   

5.500%, 12/01/39

     14,915        16,181   

5.500%, 01/01/40

     1,381,718        1,499,033   

5.500%, 06/01/40

     19,520        21,170   

5.500%, 09/01/40

     470,522        510,309   

5.500%, 12/01/40

     377,697        412,979   

5.500%, 09/01/41

     17,866,786        19,377,596   

5.500%, TBA (a)

     190,000,000        206,357,822   

6.000%, 12/01/28

     104,615        116,239   

6.000%, 01/01/29

     52,156        57,996   

6.000%, 02/01/29

     278,817        310,038   

6.000%, 04/01/29

     8,954        9,958   

6.000%, 06/01/29

     12,458        13,854   

6.000%, 07/01/32

     200,748        221,148   

6.000%, 11/01/32

     132,843        146,307   

6.000%, 01/01/33

     39,506        44,101   

6.000%, 02/01/33

     56,560        62,308   

6.000%, 03/01/33

     50,674        55,822   

6.000%, 04/01/33

     39,351        43,945   

6.000%, 05/01/33

     53,509        58,931   

6.000%, 07/01/33

     53,280        58,678   

6.000%, 08/01/33

     83,568        92,035   

6.000%, 01/01/34

     124,392        136,244   

6.000%, 09/01/34

     89,596        98,787   

6.000%, 11/01/34

     19,741        21,449   

6.000%, 04/01/35

     2,353,246        2,626,052   

6.000%, 05/01/35

     126,534        139,279   

6.000%, 07/01/35

     182,931        200,087   

6.000%, 09/01/35

     40,858        44,741   

6.000%, 12/01/35

     139,888        153,435   

6.000%, 03/01/36

     292,326        318,107   

6.000%, 04/01/36

     105,130        114,542   

6.000%, 05/01/36

     754,155        822,148   

6.000%, 06/01/36

     164,087        178,558   

6.000%, 07/01/36

     321,441        349,790   

6.000%, 08/01/36

     8,742,458        9,514,240   

6.000%, 09/01/36

     1,867,592        2,032,299   

6.000%, 10/01/36

     1,194,830        1,302,015   

6.000%, 11/01/36

     694,606        757,181   

6.000%, 12/01/36

     8,556,804        9,311,538   

6.000%, 01/01/37

     339,539        369,398   

6.000%, 02/01/37

     16,657,885        18,105,790   

6.000%, 03/01/37

     1,390,972        1,512,860   

6.000%, 04/01/37

     3,394,103        3,694,027   

6.000%, 05/01/37

     2,179,160        2,371,396   

6.000%, 06/01/37

     1,501,421        1,632,589   

6.000%, 07/01/37

     13,796,240        14,995,406   

6.000%, 08/01/37

     5,184,632        5,636,948   

6.000%, 09/01/37

     7,508,285        8,159,904   

6.000%, 10/01/37

     1,354,918        1,472,452   

6.000%, 11/01/37

     264,443        287,712   

6.000%, 12/01/37

     91,179        99,220   

6.000%, 01/01/38

     839,523        912,467   

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
6.000%, 02/01/38

     871,724      $ 951,573   

6.000%, 03/01/38

     118,443        128,717   

6.000%, 05/01/38

     3,562,655        3,872,147   

6.000%, 06/01/38

     225,369        245,318   

6.000%, 07/01/38

     1,957,762        2,127,620   

6.000%, 08/01/38

     1,638,925        1,781,402   

6.000%, 09/01/38

     1,574,962        1,711,737   

6.000%, 10/01/38

     1,136,660        1,237,008   

6.000%, 11/01/38

     671,050        729,322   

6.000%, 12/01/38

     1,191,648        1,294,272   

6.000%, 01/01/39

     995,055        1,088,095   

6.000%, 06/01/39

     338,847        368,680   

6.000%, 07/01/39

     6,046        6,570   

6.000%, 09/01/39

     2,138,982        2,323,423   

6.000%, 04/01/40

     91,784        99,746   

6.000%, 05/01/40

     17,737        19,711   

6.000%, 06/01/40

     465,056        505,398   

6.000%, 07/01/40

     108,153        117,534   

6.000%, 10/01/40

     3,086,179        3,353,895   

6.000%, 05/01/41

     136,666,052        148,362,166   

6.000%, TBA (a)

     43,000,000        46,762,500   

7.500%, 09/01/30

     1,225        1,402   

8.000%, 10/01/25

     2,454        2,911   

Fannie Mae ARM Pool
1.374%, 08/01/41 (b)

     500,010        512,556   

1.374%, 07/01/42 (b)

     530,295        541,239   

1.374%, 08/01/42 (b)

     479,508        487,970   

1.374%, 10/01/44 (b)

     832,285        847,213   

1.424%, 09/01/41 (b)

     1,669,072        1,726,720   

1.877%, 09/01/35 (b)

     3,565,559        3,745,349   

1.915%, 06/01/33 (b)

     77,160        80,459   

2.023%, 01/01/35 (b)

     486,968        514,604   

2.053%, 11/01/35 (b)

     422,084        443,182   

2.095%, 02/01/31 (b)

     257,080        258,866   

2.121%, 10/01/28 (b)

     199,343        208,295   

2.121%, 08/01/36 (b)

     962,895        1,025,575   

2.256%, 12/01/34 (b)

     3,076,583        3,274,256   

2.261%, 07/01/32 (b)

     40,874        41,256   

2.261%, 03/01/35 (b)

     103,328        109,268   

2.308%, 10/01/35 (b)

     916,413        977,167   

2.347%, 08/01/35 (b)

     1,906,896        1,996,456   

2.353%, 11/01/35 (b)

     1,187,108        1,262,042   

2.354%, 12/01/34 (b)

     1,204,631        1,275,570   

2.356%, 09/01/31 (b)

     78,967        84,233   

2.364%, 07/01/33 (b)

     67,385        71,554   

2.387%, 02/01/35 (b)

     311,882        330,147   

2.403%, 03/01/33 (b)

     6,903        7,333   

2.410%, 05/01/34 (b)

     1,356,018        1,425,610   

2.437%, 05/01/35 (b)

     871,757        933,651   

2.456%, 04/01/34 (b)

     19,333        20,635   

2.462%, 01/01/35 (b)

     155,352        165,835   

2.467%, 01/01/35 (b)

     118,287        125,326   

2.472%, 05/01/35 (b)

     129,160        138,018   

2.488%, 01/01/35 (b)

     123,662        131,295   

2.492%, 11/01/34 (b)

     5,022,130        5,405,959   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae ARM Pool
2.496%, 11/01/34 (b)

     8,680      $ 9,198   

2.506%, 02/01/35 (b)

     79,268        84,517   

2.519%, 12/01/34 (b)

     108,393        115,056   

2.534%, 01/01/35 (b)

     43,021        45,691   

2.616%, 10/01/34 (b)

     37,317        39,712   

2.627%, 11/01/35 (b)

     579,271        619,831   

2.685%, 04/01/35 (b)

     235,134        247,663   

2.708%, 09/01/32 (b)

     284,918        302,329   

2.776%, 11/01/34 (b)

     236,756        252,039   

2.816%, 08/01/35 (b)

     1,198,524        1,275,410   

2.885%, 11/01/32 (b)

     106,004        113,056   

2.935%, 09/01/34 (b)

     1,506,840        1,604,133   

4.452%, 12/01/36 (b)

     581,205        615,734   

4.580%, 09/01/34 (b)

     135,603        144,755   

5.339%, 01/01/36 (b)

     365,682        392,998   

Fannie Mae Pool
2.310%, 08/01/22

     8,200,000        7,835,292   

2.475%, 04/01/19

     15,200,000        15,564,344   

2.870%, 09/01/27

     7,300,000        6,561,201   

3.240%, 07/01/22

     23,290,274        23,642,530   

3.330%, 11/01/21

     1,557,669        1,659,650   

4.000%, 07/18/28

     2,000,000        2,108,047   

5.000%, 08/01/35

     4,234,339        4,559,057   

8.000%, 08/01/14

     431        438   

Fannie Mae REMICS (CMO)
0.593%, 09/18/31 (b)

     586,721        578,516   

1.093%, 04/25/32 (b)

     211,499        215,011   

2.571%, 05/25/35 (b)

     2,471,756        2,530,386   

Freddie Mac 15 Yr. Gold Pool
5.500%, 05/01/14

     2,059        2,090   

5.500%, 04/01/16

     3,730        3,958   

5.500%, 09/01/19

     544,132        586,868   

6.000%, 06/01/14

     2,554        2,611   

6.000%, 03/01/15

     242        247   

Freddie Mac 20 Yr. Gold Pool
4.000%, 06/01/30

     318,790        334,648   

4.000%, 09/01/30

     1,253,466        1,315,762   

4.000%, 10/01/30

     67,868        71,249   

5.500%, 04/01/21

     33,898        36,952   

5.500%, 12/01/22

     2,098        2,255   

5.500%, 03/01/23

     433,935        466,781   

5.500%, 06/01/26

     8,905        9,654   

5.500%, 08/01/26

     4,542        4,921   

5.500%, 06/01/27

     169,164        181,834   

5.500%, 12/01/27

     202,681        218,344   

5.500%, 01/01/28

     117,707        127,694   

5.500%, 02/01/28

     34,722        37,341   

5.500%, 05/01/28

     316,344        341,326   

5.500%, 06/01/28

     520,445        561,785   

6.000%, 03/01/21

     87,009        94,339   

6.000%, 01/01/22

     395,209        429,065   

6.000%, 10/01/22

     1,296,401        1,407,232   

6.000%, 12/01/22

     79,558        86,344   

6.000%, 04/01/23

     75,464        81,893   

Agency Sponsored Mortgage-Backed—(Continued)

  

Freddie Mac 30 Yr. Gold Pool
4.000%, 09/01/40

     119,307      $ 124,139   

4.000%, 11/01/40

     1,220,158        1,269,573   

4.000%, 12/01/40

     512,886        537,486   

4.000%, 01/01/41

     60,314        62,756   

4.000%, 10/01/41

     5,229,110        5,442,112   

4.000%, 11/01/41

     2,543,365        2,652,063   

4.000%, 01/01/42

     1,306,991        1,362,850   

4.000%, TBA (a)

     30,000,000        31,185,546   

4.500%, 06/01/35

     253,174        266,874   

4.500%, 09/01/38

     28,184        29,647   

4.500%, 02/01/39

     315,133        331,622   

4.500%, 10/01/39

     247,430        260,515   

4.500%, 04/01/40

     1,789,709        1,886,197   

4.500%, 08/01/40

     133,950        141,172   

4.500%, 10/01/40

     371,583        395,818   

4.500%, 12/01/40

     48,080        51,228   

4.500%, 04/01/41

     23,359,781        24,667,474   

4.500%, 05/01/41

     6,463,210        6,825,023   

4.500%, 09/01/41

     987,946        1,043,252   

4.500%, 10/01/41

     308,823        330,317   

4.500%, TBA (a)

     6,000,000        6,317,813   

5.500%, 03/01/32

     56,338        61,153   

5.500%, 01/01/33

     5,105        5,540   

5.500%, 05/01/33

     9,811        10,632   

5.500%, 08/01/33

     6,113        6,625   

5.500%, 10/01/33

     13,613        14,753   

5.500%, 12/01/33

     4,367        4,733   

5.500%, 01/01/34

     6,149        6,664   

5.500%, 05/01/34

     120,646        130,747   

5.500%, 09/01/34

     75,780        82,056   

5.500%, 01/01/35

     121,859        131,952   

5.500%, 07/01/35

     5,706        6,193   

5.500%, 10/01/35

     124,033        134,019   

5.500%, 11/01/35

     241,258        260,682   

5.500%, 12/01/35

     105,484        113,977   

5.500%, 01/01/36

     227,466        245,092   

5.500%, 02/01/36

     203,217        222,490   

5.500%, 04/01/36

     86,226        92,633   

5.500%, 06/01/36

     6,056,064        6,557,681   

5.500%, 07/01/36

     174,948        188,753   

5.500%, 08/01/36

     211,255        227,545   

5.500%, 10/01/36

     60,009        64,784   

5.500%, 12/01/36

     1,555,779        1,675,748   

5.500%, 02/01/37

     144,595        155,346   

5.500%, 03/01/37

     52,842        56,814   

5.500%, 04/01/37

     107,659        115,860   

5.500%, 06/01/37

     231,386        249,137   

5.500%, 07/01/37

     1,276,614        1,374,312   

5.500%, 08/01/37

     344,893        376,889   

5.500%, 09/01/37

     173,370        187,111   

5.500%, 10/01/37

     47,849        51,404   

5.500%, 11/01/37

     1,328,859        1,428,590   

5.500%, 12/01/37

     67,028        72,027   

5.500%, 01/01/38

     420,982        452,262   

5.500%, 02/01/38

     1,083,759        1,164,285   

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Freddie Mac 30 Yr. Gold Pool
5.500%, 03/01/38

     433,141      $ 465,340   

5.500%, 04/01/38

     914,788        983,750   

5.500%, 05/01/38

     1,754,901        1,885,293   

5.500%, 06/01/38

     1,321,209        1,419,378   

5.500%, 07/01/38

     2,170,514        2,331,948   

5.500%, 08/01/38

     5,857,365        6,305,183   

5.500%, 09/01/38

     1,444,082        1,551,668   

5.500%, 10/01/38

     42,034,605        45,158,672   

5.500%, 11/01/38

     18,469,556        19,842,408   

5.500%, 12/01/38

     20,714        22,282   

5.500%, 01/01/39

     3,053,242        3,280,104   

5.500%, 02/01/39

     560,581        602,383   

5.500%, 03/01/39

     422,370        453,753   

5.500%, 09/01/39

     226,260        247,369   

5.500%, 02/01/40

     437,059        469,534   

5.500%, 03/01/40

     38,575        41,441   

5.500%, 05/01/40

     12,686        13,628   

5.500%, 08/01/40

     402,203        432,088   

5.500%, 02/01/41

     145,982        159,639   

Freddie Mac ARM Non-Gold Pool
2.279%, 10/01/34 (b)

     107,965        113,176   

2.311%, 02/01/35 (b)

     99,372        105,136   

2.375%, 11/01/31 (b)

     46,288        49,203   

2.377%, 11/01/34 (b)

     193,327        205,311   

2.393%, 08/01/35 (b)

     1,275,962        1,361,437   

2.399%, 02/01/35 (b)

     194,890        208,229   

2.399%, 06/01/35 (b)

     2,436,099        2,574,877   

2.417%, 09/01/35 (b)

     859,065        910,341   

2.442%, 09/01/35 (b)

     490,506        519,611   

2.459%, 01/01/35 (b)

     461,185        491,193   

2.501%, 02/01/35 (b)

     119,719        127,169   

2.503%, 02/01/35 (b)

     88,540        94,430   

2.553%, 02/01/35 (b)

     111,619        118,199   

2.556%, 02/01/35 (b)

     47,841        50,813   

2.560%, 01/01/35 (b)

     113,003        119,945   

2.597%, 01/01/29 (b)

     754,265        808,192   

2.779%, 02/01/35 (b)

     113,966        121,635   

2.902%, 11/01/34 (b)

     67,632        72,429   

2.905%, 11/01/34 (b)

     100,260        106,980   

2.980%, 11/01/34 (b)

     51,314        54,731   

3.086%, 08/01/32 (b)

     202,213        214,235   

5.336%, 03/01/35 (b)

     289,300        310,798   

Freddie Mac REMICS (CMO)
0.443%, 07/15/34 (b)

     212,770        212,036   

1.875%, 11/15/23 (b)

     776,823        806,280   

3.500%, 07/15/32

     79,531        82,001   

3.500%, 01/15/42

     21,015,146        20,503,196   

6.500%, 01/15/24

     52,151        57,997   

Freddie Mac Structured Pass-Through Securities (CMO)
1.374%, 10/25/44 (b)

     1,726,214        1,742,970   

1.374%, 02/25/45 (b)

     154,506        156,656   

1.574%, 07/25/44 (b)

     8,891,705        9,128,722   

Ginnie Mae I 15 Yr. Pool
6.000%, 04/15/14

     4,885        5,023   

Agency Sponsored Mortgage-Backed—(Continued)

  

Ginnie Mae I 30 Yr. Pool
3.000%, 11/15/42

     500,000      $ 495,491   

3.000%, 05/15/43

     20,000,002        19,819,648   

3.000%, 06/15/43

     35,502,300        35,182,152   

3.000%, TBA (a)

     36,000,000        35,589,377   

3.500%, 01/15/42

     5,739,330        5,899,339   

3.500%, 02/15/42

     3,000,001        3,088,396   

3.500%, 07/15/42

     20,477,045        21,047,933   

3.500%, 09/15/42

     783,622        805,469   

3.500%, 11/15/42

     11,000,001        11,306,675   

3.500%, 06/15/43

     2,000,000        2,055,758   

3.500%, TBA (a)

     21,000,000        21,541,405   

4.000%, TBA (a)

     2,000,000        2,096,250   

5.000%, 03/15/33

     6,367        6,935   

5.000%, 10/15/33

     16,133        17,562   

5.000%, 12/15/33

     83,685        91,258   

5.000%, 05/15/34

     10,957        11,918   

5.000%, 07/15/34

     20,110        21,905   

5.000%, 11/15/35

     8,883        9,635   

5.000%, 03/15/36

     7,566        8,232   

5.000%, 03/15/38

     932,043        1,006,073   

5.000%, 06/15/38

     1,531,026        1,652,630   

5.000%, 08/15/38

     37,721        40,717   

5.000%, 10/15/38

     284,537        307,472   

5.000%, 11/15/38

     5,670,729        6,121,134   

5.000%, 01/15/39

     949,985        1,028,803   

5.000%, 02/15/39

     417,702        451,911   

5.000%, 03/15/39

     1,323,789        1,433,503   

5.000%, 04/15/39

     10,794,027        11,689,130   

5.000%, 05/15/39

     10,093,488        11,032,942   

5.000%, 06/15/39

     1,615,979        1,750,054   

5.000%, 07/15/39

     6,876,439        7,446,966   

5.000%, 09/15/39

     779,889        842,568   

5.000%, 10/15/39

     2,405,143        2,604,694   

5.000%, 05/15/40

     122,296        132,790   

5.000%, 09/15/40

     1,345,007        1,456,381   

5.000%, 12/15/40

     101,516        109,893   

5.000%, 07/15/41

     77,298        83,645   

7.000%, 10/15/23

     16,227        18,639   

7.500%, 01/15/26

     15,661        17,892   

Ginnie Mae I Pool
5.000%, TBA (a)

     1,000,000        1,078,437   

7.500%, 04/15/31

     5,472,113        5,711,048   

Ginnie Mae II 30 Yr. Pool
3.500%, TBA (a)

     10,000,000        10,262,499   

Ginnie Mae II ARM Pool
1.625%, 01/20/23 (b)

     31,295        32,669   

1.625%, 01/20/26 (b)

     15,937        16,482   

1.625%, 02/20/26 (b)

     16,445        17,168   

1.625%, 01/20/27 (b)

     8,616        8,995   

1.625%, 02/20/27 (b)

     11,737        12,174   

1.625%, 11/20/27 (b)

     26,384        27,510   

1.625%, 02/20/28 (b)

     18,785        19,611   

1.625%, 03/20/28 (b)

     20,957        21,878   

1.625%, 10/20/28 (b)

     20,846        21,739   

1.625%, 10/20/29 (b)

     12,492        13,027   

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Ginnie Mae II ARM Pool
1.625%, 01/20/30 (b)

     56,633      $ 59,125   

1.625%, 11/20/30 (b)

     77,983        81,324   

1.625%, 03/20/32 (b)

     993        1,037   

1.625%, 03/20/33 (b)

     9,251        9,660   

1.750%, 05/20/26 (b)

     25,688        26,792   

1.750%, 06/20/27 (b)

     9,102        9,494   

1.750%, 08/20/27 (b)

     96,236        100,506   

1.750%, 09/20/27 (b)

     83,531        87,236   

1.750%, 05/20/28 (b)

     8,804        9,183   

1.750%, 04/20/29 (b)

     7,257        7,569   

1.750%, 05/20/29 (b)

     14,143        14,749   

1.750%, 07/20/29 (b)

     15,001        15,667   

1.750%, 08/20/29 (b)

     14,868        15,528   

1.750%, 09/20/29 (b)

     20,409        21,315   

1.750%, 06/20/30 (b)

     18,611        19,413   

1.750%, 04/20/31 (b)

     21,689        22,624   

1.750%, 08/20/31 (b)

     5,871        6,133   

1.750%, 04/20/32 (b)

     12,246        12,774   

1.750%, 05/20/32 (b)

     28,117        29,330   

1.750%, 07/20/32 (b)

     15,768        16,470   

1.750%, 09/20/33 (b)

     102,346        106,905   

2.000%, 02/20/22 (b)

     17,894        18,646   

2.000%, 04/20/22 (b)

     2,253        2,341   

2.000%, 04/20/30 (b)

     33,916        35,237   

2.000%, 05/20/30 (b)

     44,448        46,181   

2.125%, 10/20/31 (b)

     6,715        7,017   

2.250%, 04/20/29 (b)

     16,910        17,595   

2.500%, 11/20/26 (b)

     17,174        17,955   

2.500%, 10/20/30 (b)

     5,938        6,209   
   

 

 

  
      3,828,101,683   
   

 

 

  

Federal Agencies—5.8%

  

Federal Home Loan Mortgage Corp.
0.875%, 03/07/18

     3,300,000        3,193,337   

1.000%, 03/08/17

     68,400,000        68,064,840   

1.000%, 06/29/17

     54,800,000        54,308,389   

1.000%, 07/28/17

     66,800,000        65,861,594   

1.000%, 09/29/17

     42,600,000        42,093,017   

1.250%, 05/12/17

     21,400,000        21,429,896   

1.250%, 08/01/19

     27,500,000        26,223,752   

1.250%, 10/02/19

     58,400,000        55,329,153   

1.750%, 05/30/19

     11,200,000        11,025,930   

2.375%, 01/13/22

     11,000,000        10,689,547   

3.750%, 03/27/19

     10,900,000        11,981,727   

5.000%, 02/16/17

     7,800,000        8,880,066   

5.500%, 08/23/17

     1,600,000        1,866,904   

Federal National Mortgage Association
0.875%, 08/28/17

     15,600,000        15,290,870   

0.875%, 12/20/17

     300,000        292,253   

0.875%, 02/08/18

     23,500,000        22,815,798   

0.875%, 05/21/18

     4,200,000        4,059,140   

1.125%, 04/27/17

     42,900,000        42,751,051   

1.250%, 01/30/17

     7,700,000        7,747,124   

5.000%, 02/13/17

     8,200,000        9,347,114   

Federal Agencies—(Continued)

  

Federal National Mortgage Association
5.000%, 05/11/17

     9,100,000      $ 10,385,539   

5.375%, 06/12/17

     9,700,000        11,226,664   

Government National Mortgage Association (CMO)
0.493%, 01/16/31 (b)

     47,491        47,922   

0.693%, 02/16/30 (b)

     19,259        19,452   
   

 

 

  
      504,931,079   
   

 

 

  

U.S. Treasury—32.8%

  

U.S. Treasury Inflation Indexed Bonds
0.625%, 02/15/43

     1,618,288        1,361,006   

0.750%, 02/15/42

     29,329,635        25,819,230   

1.750%, 01/15/28

     137,305,763        153,836,141   

2.000%, 01/15/26

     53,894,060        62,235,028   

2.375%, 01/15/25

     31,334,710        37,327,473   

2.375%, 01/15/27

     90,287,730        108,704,982   

2.500%, 01/15/29 (c)

     48,305,814        59,582,227   

3.625%, 04/15/28

     5,750,920        7,981,650   

3.875%, 04/15/29

     2,546,154        3,669,644   

U.S. Treasury Inflation Indexed Notes
0.125%, 04/15/17

     10,647,624        10,924,632   

0.125%, 01/15/22

     42,432,033        41,560,182   

0.125%, 07/15/22

     29,324,800        28,662,705   

0.625%, 07/15/21

     12,690,525        13,097,015   

1.125%, 01/15/21

     20,197,380        21,600,149   

1.250%, 07/15/20

     31,988,400        34,747,399   

1.375%, 01/15/20

     6,667,108        7,264,021   

1.875%, 07/15/19

     6,970,112        7,858,258   

2.125%, 01/15/19

     4,548,978        5,144,253   

U.S. Treasury Notes
0.250%, 04/15/16

     227,900,000        225,710,109   

0.625%, 04/30/18

     14,100,000        13,626,325   

0.750%, 10/31/17

     255,300,000        250,493,211   

0.750%, 12/31/17

     177,900,000        174,050,066   

0.750%, 02/28/18

     34,000,000        33,168,598   

0.750%, 03/31/18

     73,300,000        71,347,215   

0.875%, 01/31/18

     71,000,000        69,735,348   

0.875%, 07/31/19

     118,200,000        112,585,500   

1.000%, 05/31/18

     44,800,000        44,029,978   

1.000%, 06/30/19

     74,800,000        71,901,500   

1.000%, 09/30/19 (c) (d)

     256,400,000        245,182,500   

1.000%, 11/30/19

     12,100,000        11,528,081   

1.125%, 05/31/19

     9,100,000        8,831,978   

1.125%, 12/31/19

     22,400,000        21,462,000   

1.125%, 03/31/20

     10,700,000        10,195,088   

1.125%, 04/30/20 (d)

     182,000,000        173,070,716   

1.250%, 10/31/19

     4,500,000        4,364,649   

1.375%, 01/31/20

     20,200,000        19,638,198   

1.375%, 05/31/20

     13,300,000        12,835,537   

1.500%, 08/31/18 (c) (d) (e)

     192,400,000        192,941,029   

1.625%, 08/15/22 (c) (d) (e)

     121,200,000        113,710,204   

1.625%, 11/15/22

     76,800,000        71,694,029   

1.750%, 05/15/23

     14,200,000        13,299,180   

2.000%, 02/15/22

     11,400,000        11,149,736   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

U.S. Treasury—(Continued)

  

U.S. Treasury Notes
2.000%, 02/15/23

     103,900,000      $ 99,995,646   

2.625%, 04/30/18

     27,000,000        28,636,875   

2.625%, 08/15/20

     68,800,000        71,896,000   

2.875%, 03/31/18

     33,800,000        36,250,500   

3.500%, 02/15/18

     20,300,000        22,337,937   
   

 

 

  
      2,867,043,728   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $7,336,247,478)

       7,200,076,490   
   

 

 

  
Corporate Bonds & Notes—11.7%   

Agriculture—0.0%

  

Reynolds American, Inc.
7.625%, 06/01/16

     2,400,000        2,798,112   
   

 

 

  

Banks—6.3%

  

Ally Financial, Inc.
3.125%, 01/15/16

     5,000,000        4,988,095   

3.475%, 02/11/14 (b)

     8,900,000        8,934,621   

3.672%, 06/20/14 (b)

     9,000,000        9,079,560   

4.500%, 02/11/14

     9,000,000        9,076,500   

4.625%, 06/26/15

     2,600,000        2,665,083   

5.500%, 02/15/17

     15,000,000        15,672,150   

6.750%, 12/01/14

     9,458,000        9,954,545   

7.500%, 09/15/20

     7,100,000        8,182,750   

8.300%, 02/12/15

     3,500,000        3,771,250   

American Express Bank FSB
6.000%, 09/13/17

     31,500,000        36,293,544   

American Express Centurion Bank
6.000%, 09/13/17

     26,500,000        30,452,316   

Australia & New Zealand Banking Group, Ltd.
2.125%, 01/10/14 (144A)

     17,100,000        17,243,640   

Banco Santander Brazil S.A.
2.373%, 03/18/14 (144A) (b)

     20,800,000        20,699,557   

4.250%, 01/14/16 (144A)

     18,200,000        18,382,000   

Banco Santander Chile
1.876%, 01/19/16 (144A) (b)

     6,900,000        6,900,000   

Bank of China (Hong Kong), Ltd.
5.550%, 02/11/20 (144A)

     2,500,000        2,608,062   

Bank of India
4.750%, 09/30/15

     3,100,000        3,190,982   

Bank of Montreal
1.950%, 01/30/18 (144A)

     5,700,000        5,826,540   

2.850%, 06/09/15 (144A)

     800,000        833,040   

Bank of Nova Scotia
1.650%, 10/29/15 (144A)

     6,100,000        6,218,340   

1.950%, 01/30/17 (144A)

     800,000        817,440   

Barclays Bank plc
5.200%, 07/10/14

     900,000        938,880   

10.179%, 06/12/21 (144A)

     17,900,000        22,700,601   

BBVA Bancomer S.A.
4.500%, 03/10/16 (144A)

     3,900,000        4,046,250   

6.500%, 03/10/21 (144A)

     7,800,000        8,190,000   

Banks—(Continued)

  

BNP Paribas S.A.
1.179%, 01/10/14 (b)

     26,000,000      $ 26,071,526   

BPCE S.A.
2.375%, 10/04/13 (144A)

     2,400,000        2,410,560   

CIT Group, Inc.
5.250%, 04/01/14 (144A)

     2,600,000        2,639,000   

Citigroup, Inc.
2.275%, 08/13/13 (b)

     7,000,000        7,015,036   

5.500%, 10/15/14

     35,000,000        36,812,405   

Credit Agricole S.A.
8.375%, 10/13/19 (144A) (b)

     13,600,000        14,399,000   

Credit Suisse of New York
2.200%, 01/14/14

     5,700,000        5,749,356   

Dexia Credit Local S.A.
0.756%, 04/29/14 (144A) (b)

     1,200,000        1,201,967   

2.750%, 04/29/14

     9,300,000        9,456,147   

Export-Import Bank of Korea
4.000%, 01/29/21

     2,500,000        2,479,270   

5.125%, 06/29/20

     4,300,000        4,552,548   

GMAC International Finance B.V.
7.500%, 04/21/15 (EUR)

     2,800,000        3,878,056   

HSBC Bank plc
2.000%, 01/19/14 (144A)

     6,000,000        6,051,756   

ING Bank NV
2.000%, 10/18/13 (144A) (f)

     3,300,000        3,312,448   

Intesa Sanpaolo S.p.A.
2.674%, 02/24/14 (144A) (b)

     14,100,000        14,151,803   

3.125%, 01/15/16

     8,100,000        7,964,390   

JPMorgan Chase & Co.
3.150%, 07/05/16

     3,800,000        3,946,680   

JPMorgan Chase Bank N.A.
0.602%, 06/13/16 (b)

     5,300,000        5,206,688   

6.000%, 10/01/17

     23,600,000        26,882,548   

Lloyds TSB Bank plc
12.000%, 12/16/24 (144A) (b)

     5,700,000        7,592,149   

Morgan Stanley
0.727%, 10/18/16 (b)

     1,900,000        1,839,331   

National Bank of Canada
2.200%, 10/19/16 (144A)

     1,400,000        1,445,921   

Nordea Bank AB
2.125%, 01/14/14 (144A)

     2,700,000        2,724,268   

Nykredit Realkredit A/S
1.308%, 04/01/38 (DKK) (b)

     1,557,380        280,486   

1.321%, 10/01/38 (DKK) (b)

     3,595,871        645,426   

Realkredit Danmark A/S
1.358%, 01/01/38 (DKK) (b)

     6,154,006        1,108,346   

1.360%, 01/01/38 (DKK) (b)

     4,943,992        888,264   

Royal Bank of Scotland Group plc
6.990%, 10/05/17 (144A) (b)

     2,000,000        1,870,000   

Santander Issuances S.A. Unipersonal
7.300%, 07/27/19 (GBP) (b)

     5,000,000        7,680,461   

Santander US Debt S.A. Unipersonal
2.991%, 10/07/13 (144A)

     24,300,000        24,438,559   

State Bank of India
4.500%, 07/27/15 (144A)

     12,200,000        12,715,340   

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Banks—(Continued)

  

Sumitomo Mitsui Banking Corp.
1.950%, 01/14/14 (144A) (f)

     7,400,000      $ 7,451,770   

Turkiye Garanti Bankasi A/S
2.776%, 04/20/16 (144A) (b)

     3,800,000        3,714,500   

UBS AG
1.276%, 01/28/14 (b)

     1,279,000        1,285,719   

2.250%, 08/12/13

     8,658,000        8,672,779   

UFJ Finance Aruba AEC
6.750%, 07/15/13

     220,000        220,445   

United Overseas Bank, Ltd.
5.375%, 09/03/19 (144A) (b)

     470,000        487,400   

Wells Fargo & Co.
7.980%, 03/15/18 (b)

     20,300,000        22,939,000   

Woori Bank Co., Ltd.
6.025%, 03/13/14 (144A) (b) (f)

     305,000        306,475   
   

 

 

  
      550,153,569   
   

 

 

  

Biotechnology—0.0%

  

Amgen, Inc.
1.875%, 11/15/14

     2,000,000        2,030,196   
   

 

 

  

Chemicals—0.2%

  

Braskem Finance, Ltd.
5.750%, 04/15/21 (144A)

     3,300,000        3,217,500   

ICI Wilmington, Inc.
5.625%, 12/01/13

     340,000        346,243   

Rohm & Haas Co.
6.000%, 09/15/17

     8,500,000        9,692,389   
   

 

 

  
      13,256,132   
   

 

 

  

Diversified Financial Services—1.5%

  

ANZ Capital Trust II
5.360%, 12/15/13 (144A)

     525,000        525,000   

Banque PSA Finance S.A.
2.182%, 04/04/14 (144A) (b) (f)

     14,900,000        14,769,848   

Bear Stearns Cos. LLC (The)
6.400%, 10/02/17

     1,600,000        1,845,512   

7.250%, 02/01/18

     4,200,000        5,001,112   

BM&FBovespa S.A.
5.500%, 07/16/20 (144A)

     1,000,000        1,021,250   

Dragon 2012 LLC
1.972%, 03/12/24

     923,933        905,663   

Ford Motor Credit Co. LLC
2.750%, 05/15/15

     5,600,000        5,678,344   

7.000%, 04/15/15

     900,000        975,700   

8.000%, 06/01/14

     2,500,000        2,644,090   

8.000%, 12/15/16

     500,000        585,568   

8.700%, 10/01/14

     500,000        542,686   

12.000%, 05/15/15

     4,000,000        4,716,708   

General Electric Capital Corp.
6.375%, 11/15/67 (b)

     5,100,000        5,304,000   

International Lease Finance Corp.
6.750%, 09/01/16 (144A)

     5,300,000        5,724,000   

Lehman Brothers Holdings, Inc.
6.750%, 12/28/17 (g)

     14,800,000        1,480   

Diversified Financial Services—(Continued)

  

Merrill Lynch & Co., Inc.
6.400%, 08/28/17

     3,100,000      $ 3,500,408   

6.875%, 04/25/18

     23,000,000        26,471,229   

SLM Corp.
0.576%, 01/27/14 (b)

     11,600,000        11,497,990   

5.000%, 10/01/13

     3,839,000        3,858,195   

5.375%, 05/15/14

     8,235,000        8,399,700   

6.250%, 01/25/16

     3,200,000        3,392,000   

8.450%, 06/15/18

     8,300,000        9,213,000   

Springleaf Finance Corp.
6.900%, 12/15/17

     3,200,000        3,140,000   

SteelRiver Transmission Co. LLC
4.710%, 06/30/17 (144A) (f)

     7,572,962        7,789,276   
   

 

 

  
    127,502,759   
   

 

 

  

Electric—1.1%

    

Arizona Public Service Co.
4.650%, 05/15/15

     165,000        175,658   

Centrais Eletricas Brasileiras S.A.
6.875%, 07/30/19 (144A)

     54,400,000        56,848,000   

Entergy Corp.
3.625%, 09/15/15

     14,300,000        14,815,529   

Korea Hydro & Nuclear Power Co., Ltd.
3.125%, 09/16/15 (144A)

     11,200,000        11,538,005   

Majapahit Holding B.V.
7.250%, 06/28/17

     2,040,000        2,249,100   

7.750%, 01/20/20

     5,000,000        5,475,000   

TECO Finance, Inc.
6.750%, 05/01/15

     4,400,000        4,798,737   
   

 

 

  
    95,900,029   
   

 

 

  

Forest Products & Paper—0.1%

  

International Paper Co.
5.250%, 04/01/16

     6,500,000        7,056,790   
   

 

 

  

Gas—0.0%

  

ENN Energy Holdings, Ltd.
6.000%, 05/13/21 (144A)

     1,600,000        1,689,194   
   

 

 

  

Holding Companies-Diversified—0.0%

  

Hutchison Whampoa International , Ltd.
6.250%, 01/24/14 (144A)

     245,000        251,594   

Noble Group, Ltd.
4.875%, 08/05/15 (144A)

     700,000        724,500   
   

 

 

  
    976,094   
   

 

 

  

Insurance—0.8%

  

American General Institutional Capital
8.125%, 03/15/46 (144A)

     24,700,000        29,763,500   

American International Group, Inc.
5.000%, 06/26/17 (EUR)

     10,700,000        15,386,153   

5.050%, 10/01/15

     6,300,000        6,829,250   

5.450%, 05/18/17

     700,000        771,635   

6.765%, 11/15/17 (GBP)

     2,500,000        4,421,020   

8.625%, 05/22/68 (GBP) (b)

     2,500,000        4,444,975   

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Insurance—(Continued)

  

CNA Financial Corp.
5.850%, 12/15/14

     5,000,000      $ 5,318,810   
   

 

 

  
    66,935,343   
   

 

 

  

Investment Company Security—0.1%

    

Temasek Financial I, Ltd.
4.300%, 10/25/19 (144A)

     5,500,000        5,936,804   
   

 

 

  

Iron/Steel—0.0%

    

Gerdau Trade, Inc.
5.750%, 01/30/21 (144A)

     1,900,000        1,871,500   
   

 

 

  

Media—0.3%

    

Historic TW, Inc.
9.150%, 02/01/23

     155,000        210,453   

Pearson Dollar Finance plc
5.700%, 06/01/14 (144A)

     13,500,000        13,907,430   

Time Warner, Inc.
5.875%, 11/15/16

     6,500,000        7,419,886   
   

 

 

  
      21,537,769   
   

 

 

  

Mining—0.0%

    

AngloGold Ashanti Holdings plc
5.375%, 04/15/20

     2,400,000        2,243,753   
   

 

 

  

Oil & Gas—0.5%

    

Gazprom OAO Via Gaz Capital S.A.
8.125%, 07/31/14

     3,600,000        3,824,280   

8.146%, 04/11/18 (144A)

     11,000,000        12,595,000   

Indian Oil Corp., Ltd.
4.750%, 01/22/15

     2,200,000        2,272,910   

Novatek Finance, Ltd.
5.326%, 02/03/16 (144A)

     3,100,000        3,247,250   

Petrobras International Finance Co.
5.375%, 01/27/21

     14,300,000        14,367,124   

5.750%, 01/20/20

     4,800,000        4,993,815   

Ras Laffan Liquefied natural Gas Co. Ltd III
5.500%, 09/30/14

     1,400,000        1,463,000   
   

 

 

  
      42,763,379   
   

 

 

  

Oil & Gas Services—0.1%

    

Cameron International Corp.
1.205%, 06/02/14 (b)

     9,100,000        9,140,277   
   

 

 

  

Pharmaceuticals—0.1%

    

Teva Pharmaceutical Finance Co. B.V.
1.175%, 11/08/13 (b)

     8,000,000        8,024,144   
   

 

 

  

Pipelines—0.2%

    

AK Transneft OJSC Via TransCapitalInvest, Ltd.
8.700%, 08/07/18 (144A)

     2,500,000        2,943,750   

NGPL PipeCo LLC
7.119%, 12/15/17 (144A)

     16,400,000        15,908,000   
   

 

 

  
      18,851,750   
   

 

 

  

Real Estate—0.0%

    

Qatari Diar Finance QSC
3.500%, 07/21/15

     1,000,000      $ 1,032,500   
   

 

 

  

Real Estate Investment Trusts—0.1%

  

HCP, Inc.
6.700%, 01/30/18

     7,500,000        8,778,330   
   

 

 

  

Retail—0.0%

    

CVS Pass-Through Trust
6.943%, 01/10/30

     960,696        1,131,198   
   

 

 

  

Savings & Loans—0.1%

    

Nationwide Building Society
6.250%, 02/25/20 (144A)

     10,800,000        12,039,440   
   

 

 

  

Telecommunications—0.0%

    

Deutsche Telekom International Finance B.V.
5.250%, 07/22/13

     425,000        426,001   

Qtel International Finance, Ltd.
3.375%, 10/14/16 (144A)

     400,000        416,160   
   

 

 

  
      842,161   
   

 

 

  

Transportation—0.1%

    

Con-way, Inc.
7.250%, 01/15/18

     7,000,000        7,955,493   

Norfolk Southern Corp.
5.590%, 05/17/25

     12,000        13,536   
   

 

 

  
      7,969,029   
   

 

 

  

Trucking & Leasing—0.1%

    

GATX Corp.
6.000%, 02/15/18

     5,000,000        5,600,180   

GATX Financial Corp.
5.800%, 03/01/16

     5,000,000        5,463,385   
   

 

 

  
      11,063,565   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $952,042,613)

       1,021,523,817   
   

 

 

  
Foreign Government—4.9%   

Municipal—0.2%

    

Autonomous Community of Madrid Spain
5.750%, 02/01/18 (EUR)

     4,400,000        6,031,088   

Autonomous Community of Valencia Spain
4.750%, 03/20/14 (EUR)

     500,000        652,322   

Junta de Castilla y Leon
6.270%, 02/19/18 (EUR)

     4,000,000        5,516,203   

6.505%, 03/01/19 (EUR)

     4,000,000        5,547,057   
   

 

 

  
      17,746,670   
   

 

 

  

Provincial—2.7%

    

Province of British Columbia
4.300%, 06/18/42 (CAD)

     400,000        409,368   

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Foreign Government—(Continued)

 

Security Description   Principal
Amount*		     Value  

Provincial—(Continued)

    

Province of Ontario
1.600%, 09/21/16

     300,000      $ 304,403   

1.650%, 09/27/19

     8,700,000        8,311,110   

2.850%, 06/02/23 (CAD)

     2,700,000        2,462,630   

3.000%, 07/16/18

     4,300,000        4,513,710   

3.150%, 06/02/22 (CAD)

     49,900,000        47,255,779   

4.000%, 06/02/21 (CAD)

     56,400,000        57,284,853   

4.200%, 03/08/18 (CAD)

     2,200,000        2,269,073   

4.200%, 06/02/20 (CAD)

     14,300,000        14,757,948   

4.300%, 03/08/17 (CAD)

     7,400,000        7,616,364   

4.400%, 06/02/19 (CAD)

     9,100,000        9,497,849   

4.600%, 06/02/39 (CAD)

     4,600,000        4,836,189   

5.500%, 06/02/18 (CAD)

     2,600,000        2,827,441   

Province of Quebec
2.750%, 08/25/21

     600,000        589,312   

3.000%, 09/01/23 (CAD)

     700,000        641,688   

3.500%, 07/29/20

     10,600,000        11,152,260   

3.500%, 12/01/22 (CAD)

     13,200,000        12,740,253   

4.250%, 12/01/21 (CAD)

     28,800,000        29,616,872   

4.500%, 12/01/16 (CAD)

     400,000        413,548   

4.500%, 12/01/17 (CAD)

     4,700,000        4,896,366   

4.500%, 12/01/18 (CAD)

     5,400,000        5,653,698   

4.500%, 12/01/19 (CAD)

     1,200,000        1,259,618   

4.500%, 12/01/20 (CAD)

     3,700,000        3,879,564   
   

 

 

  
      233,189,896   
   

 

 

  

Regional Government—0.0%

    

Province of Ontario
4.400%, 04/14/20

     2,700,000        2,993,771   
   

 

 

  
      2,993,771   
   

 

 

  

Sovereign—2.0%

    

Banco Nacional de Desenvolvimento Economico e Social
4.125%, 09/15/17 (144A) (EUR)

     2,700,000        3,629,025   

Brazil Letras do Tesouro Nacional
Zero Coupon, 01/01/17 (BRL)

     1,000,000        311,978   

Brazil Notas do Tesouro Nacional
10.000%, 01/01/17 (BRL)

     306,953,000        134,314,020   

10.000%, 01/01/21 (BRL)

     13,962,000        5,963,261   

10.000%, 01/01/23 (BRL)

     26,828,000        11,363,527   

Korea Housing Finance Corp.
4.125%, 12/15/15 (144A)

     2,500,000        2,631,160   

Mexican Bonos
6.000%, 06/18/15 (MXN)

     70,900,000        5,636,718   

6.250%, 06/16/16 (MXN)

     89,100,000        7,209,911   

10.000%, 12/05/24 (MXN)

     5,300,000        551,497   
   

 

 

  
      171,611,097   
   

 

 

  

Total Foreign Government
(Cost $474,023,521)

       425,541,434   
   

 

 

  
Mortgage-Backed Securities—4.3%   
Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—2.9%

  

Adjustable Rate Mortgage Trust
2.897%, 11/25/35 (b)

     865,242      $ 725,776   

American Home Mortgage Assets
1.094%, 11/25/46 (b)

     4,837,756        2,657,239   

American Home Mortgage Investment Trust
2.416%, 02/25/45 (b)

     2,269,628        2,252,563   

Arran Residential Mortgages Funding plc
1.603%, 05/16/47 (144A) (EUR) (b)

     11,920,440        15,748,916   

Banc of America Funding Corp.
2.639%, 05/25/35 (b)

     3,091,763        3,097,300   

2.701%, 02/20/36 (b)

     7,739,244        7,611,570   

5.630%, 01/20/47 (b)

     427,843        325,394   

BCAP LLC Trust
0.363%, 01/25/37 (b)

     2,853,768        2,041,425   

5.250%, 02/26/36 (144A)

     10,361,379        9,445,775   

5.250%, 08/26/37 (144A)

     18,798,119        18,998,319   

Bear Stearns Adjustable Rate Mortgage Trust
2.240%, 08/25/35 (b)

     41,458        40,999   

2.320%, 08/25/35 (b)

     1,237,221        1,217,605   

2.959%, 02/25/33 (b)

     30,174        26,633   

Bear Stearns ALT-A Trust
1.033%, 11/25/34 (b)

     1,034,588        1,002,388   

2.709%, 05/25/35 (b)

     2,570,247        2,348,180   

2.845%, 11/25/36 (b)

     5,956,206        4,041,452   

2.864%, 09/25/35 (b)

     1,958,211        1,604,727   

2.911%, 11/25/36 (b)

     3,471,614        2,279,510   

Bear Stearns Structured Products, Inc.
2.639%, 01/26/36 (b)

     2,039,915        1,537,876   

2.653%, 12/26/46 (b)

     1,372,385        935,432   

CC Mortgage Funding Corp.
0.443%, 08/25/35 (144A) (b)

     86,145        74,017   

Chase Mortgage Finance Corp.
5.107%, 12/25/35 (b)

     11,296,509        10,794,232   

5.741%, 09/25/36 (b)

     6,900,975        6,316,131   

Citigroup Mortgage Loan Trust, Inc.
2.270%, 09/25/35 (b)

     4,604,753        4,503,770   

2.290%, 09/25/35 (b)

     1,514,503        1,470,349   

2.570%, 10/25/35 (b)

     7,718,958        7,401,431   

Countrywide Alternative Loan Trust
0.402%, 03/20/46 (b)

     283,565        200,489   

4.807%, 05/25/35 (b) (h) (i)

     5,570,206        850,465   

Countrywide Home Loan Mortgage Pass-Through Trust
0.483%, 04/25/35 (b)

     147,483        124,725   

0.513%, 03/25/35 (b)

     1,250,621        1,011,071   

0.533%, 06/25/35 (144A) (b)

     4,217,158        3,790,875   

2.763%, 09/20/36 (b)

     6,049,236        3,963,514   

Credit Suisse First Boston Mortgage Securities Corp.
0.827%, 03/25/32 (144A) (b)

     106,716        97,585   

6.000%, 11/25/35

     3,319,827        2,697,210   

6.500%, 04/25/33

     100,032        106,077   

Downey Savings & Loan Association Mortgage Loan Trust
2.552%, 07/19/44 (b)

     988,901        964,324   

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

First Horizon Alternative Mortgage Securities
4.507%, 01/25/36 (b) (h) (i)

     64,864,167      $ 9,175,880   

First Horizon Mortgage Pass-Through Trust
2.615%, 08/25/35 (b)

     376,651        359,066   

Granite Mortgages plc
0.490%, 09/20/44 (EUR) (b)

     414,053        524,939   

0.588%, 01/20/44 (EUR) (b)

     415,778        527,668   

0.884%, 01/20/44 (GBP) (b)

     668,808        995,861   

0.889%, 09/20/44 (GBP) (b)

     3,474,428        5,162,887   

Greenpoint Mortgage Funding Trust
0.273%, 01/25/47 (b)

     10        10   

0.413%, 06/25/45 (b)

     99,777        88,119   

GSR Mortgage Loan Trust
2.664%, 09/25/35 (b)

     118,939        116,841   

2.881%, 04/25/36 (b)

     4,402,272        4,025,750   

6.000%, 03/25/32

     280        292   

Harborview Mortgage Loan Trust
0.382%, 01/19/38 (b)

     232,046        186,801   

0.412%, 05/19/35 (b)

     1,530,792        1,256,726   

Holmes Master Issuer plc
1.561%, 10/15/54 (144A) (EUR) (b)

     6,235,644        8,175,484   

Indymac ARM Trust
1.786%, 01/25/32 (b)

     610        569   

1.820%, 01/25/32 (b)

     35,489        32,940   

Indymac Index Mortgage Loan Trust
2.566%, 12/25/34 (b)

     255,755        243,043   

JPMorgan Mortgage Trust
3.005%, 07/25/35 (b)

     5,189,146        5,241,489   

4.480%, 02/25/35 (b)

     440,666        440,437   

5.263%, 07/25/35 (b)

     8,255,066        8,459,883   

5.750%, 01/25/36

     768,908        698,509   

MASTR Alternative Loans Trust
0.593%, 03/25/36 (b)

     863,085        182,309   

Merrill Lynch Mortgage Investors, Inc.
0.403%, 02/25/36 (b)

     1,622,256        1,401,197   

0.573%, 08/25/35 (b)

     8,700,000        7,412,426   

MLCC Mortgage Investors, Inc.
0.443%, 11/25/35 (b)

     188,232        173,786   

1.193%, 10/25/35 (b)

     320,061        314,902   

2.255%, 11/25/35 (b)

     3,320,028        3,085,584   

2.440%, 10/25/35 (b)

     938,147        931,152   

Morgan Stanley Mortgage Loan Trust
5.500%, 08/25/35

     5,249,813        5,339,679   

Nomura Asset Acceptance Corp.
4.976%, 05/25/35

     4,398,193        4,051,413   

RBSSP Resecuritization Trust
0.433%, 06/27/36 (144A) (b)

     8,300,000        6,585,145   

Residential Accredit Loans, Inc.
0.373%, 06/25/46 (b)

     2,106,747        942,546   

0.593%, 03/25/33 (b)

     451,763        437,241   

0.633%, 06/25/34 (b)

     3,501,542        3,336,962   

6.000%, 06/25/36

     2,765,083        2,137,282   

Residential Asset Securitization Trust
0.593%, 05/25/33 (b)

     236,677        228,833   

0.593%, 01/25/46 (b)

     1,961,755        887,694   

Collateralized Mortgage Obligations—(Continued)

  

Residential Funding Mortgage Securities I
0.543%, 06/25/18 (b)

     9,996      $ 9,672   

Sequoia Mortgage Trust
0.542%, 07/20/33 (b)

     466,902        454,309   

Structured Adjustable Rate Mortgage Loan Trust
2.535%, 04/25/35 (b)

     12,400,082        11,755,216   

2.608%, 01/25/35 (b)

     3,719,234        3,402,957   

2.609%, 08/25/35 (b)

     274,349        251,207   

Structured Asset Mortgage Investments, Inc.
0.423%, 05/25/45 (b)

     1,550,587        1,261,896   

0.442%, 07/19/35 (b)

     1,820,782        1,727,212   

Structured Asset Securities Corp.
2.718%, 10/28/35 (144A) (b)

     55,500        52,000   

WaMu Mortgage Pass-Through Certificates
1.568%, 06/25/42 (b)

     241,808        220,147   

1.568%, 08/25/42 (b)

     126,070        115,482   

2.220%, 02/27/34 (b)

     352,548        356,934   

Wells Fargo Mortgage Backed Securities Trust
2.493%, 09/25/33 (b)

     1,324,365        1,320,380   

2.641%, 03/25/36 (b)

     23,897,257        22,563,619   

2.720%, 04/25/36 (b)

     2,409,432        2,250,415   

5.592%, 04/25/36 (b)

     1,199,723        421,249   
   

 

 

  
      251,629,384   
   

 

 

  

Commercial Mortgage-Backed Securities—1.4%

  

Banc of America Large Loan, Inc.
2.493%, 11/15/15 (144A) (b)

     6,434,779        6,439,772   

Banc of America Merrill Lynch Commercial Mortgage, Inc.
5.451%, 01/15/49

     8,400,000        9,312,853   

Bear Stearns Commercial Mortgage Securities, Inc.
5.331%, 02/11/44

     400,000        437,968   

5.700%, 06/11/50

     5,300,000        6,019,215   

Commercial Mortgage Pass-Through Certificates
5.383%, 02/15/40

     900,000        968,526   

Credit Suisse Mortgage Capital Certificates
5.467%, 09/15/39

     21,435,723        23,614,922   

European Loan Conduit
0.353%, 05/15/19 (EUR) (b)

     577,645        725,575   

Greenwich Capital Commercial Funding Corp.
4.799%, 08/10/42 (b)

     100,000        104,317   

5.444%, 03/10/39

     7,700,000        8,511,056   

GS Mortgage Securities Corp. II
1.103%, 03/06/20 (144A) (b)

     1,519,193        1,522,769   

JPMorgan Chase Commercial Mortgage Securities Corp.
4.070%, 11/15/43 (144A)

     4,800,000        5,051,270   

5.420%, 01/15/49

     400,000        442,870   

LB-UBS Commercial Mortgage Trust
5.866%, 09/15/45 (b)

     14,594,502        16,266,944   

Merrill Lynch Floating Trust
0.731%, 07/09/21 (144A) (b)

     10,349,833        10,314,364   

Merrill Lynch/Countrywide Commercial Mortgage Trust
5.485%, 03/12/51 (b)

     2,200,000        2,434,197   

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Mortgage-Backed Securities—(Continued)

  

Merrill Lynch/Countrywide Commercial Mortgage Trust
6.093%, 08/12/49 (b)

     7,400,000      $ 8,367,772   

Morgan Stanley Capital I
6.090%, 06/11/49 (b)

     3,600,000        4,049,305   

Morgan Stanley Re-REMIC Trust
5.982%, 08/12/45 (144A) (b)

     900,000        1,007,645   

Wachovia Bank Commercial Mortgage Trust
5.937%, 06/15/49 (b)

     16,700,000        18,678,783   
   

 

 

  
      124,270,123   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $361,693,270)

       375,899,507   
   

 

 

  
Municipals—4.2%   

American Municipal Power-Ohio, Inc., Combined Hydroelectric Projects Revenue, Build America Bonds, Taxable
8.084%, 02/15/50

     6,900,000        9,180,105   

Bay Area Toll Bridge Authority, Build America Bonds
7.043%, 04/01/50

     10,400,000        13,247,312   

Buckeye Tobacco Settlement Financing Authority
5.875%, 06/01/47

     3,500,000        2,821,735   

California Infrastructure & Economic Development Bank Revenue, Build America Bonds
6.486%, 05/15/49

     2,500,000        2,778,075   

California State General Obligation Unlimited, Build America Bonds
7.950%, 03/01/36

     5,700,000        6,764,247   

7.550%, 04/01/39

     2,900,000        3,883,216   

7.625%, 03/01/40

     16,600,000        22,296,622   

California State Public Works Board Lease Revenue Build America Bonds, Taxable, University Projects
7.804%, 03/01/35

     3,100,000        3,532,171   

California State University Revenue, Build America Bonds
6.484%, 11/01/41

     4,400,000        4,802,336   

Calleguas-Las Virgenes California Public Financing Water Revenue Authority, Build America Bonds
5.944%, 07/01/40

     7,800,000        8,673,132   

Chicago Transit Authority Transfer Tax Receipts Revenue
6.300%, 12/01/21

     1,100,000        1,225,400   

6.899%, 12/01/40

     14,500,000        16,832,905   

Clark County NV, Airport Revenue
6.820%, 07/01/45

     4,800,000        6,231,120   

Clark County NV, Refunding
4.750%, 06/01/30 (AGM)

     5,500,000        5,767,850   

District of Columbia, Income Tax Revenue
5.000%, 12/01/25

     5,530,000        6,386,707   

5.000%, 12/01/26

     5,000,000        5,713,150   

East Baton Rouge Sewer Commission, Build America Bonds
6.087%, 02/01/45

     17,000,000      $ 18,594,770   

Irvine Ranch CA, Water District, Build America Bonds, Taxable
6.622%, 05/01/40

     21,700,000        26,637,184   

Kansas Development Finance Authority
5.000%, 11/15/29

     6,300,000        6,603,030   

Los Angeles CA, Wastewater System Revenue, Build America Bonds
5.713%, 06/01/39

     2,300,000        2,475,444   

Los Angeles Department of Water & Power Revenue, Build America Bonds
6.166%, 07/01/40

     60,200,000        67,476,976   

5.000%, 07/01/44 (AMBAC)

     2,900,000        3,069,708   

6.603%, 07/01/50

     3,200,000        4,018,048   

Los Angeles, California Unified School District, Build America Bonds
4.500%, 07/01/25 (NATL-RE)

     5,000,000        5,290,000   

4.500%, 01/01/28 (NATL-RE)

     3,700,000        3,843,819   

6.758%, 07/01/34

     1,100,000        1,348,732   

Massachusetts School Building Authority, Sales Tax Revenue
5.000%, 08/15/26

     5,600,000        6,372,408   

Metropolitan Transportation Authority Build America Bonds, Metro Transit Authority
6.089%, 11/15/40

     200,000        232,644   

New York City Transitional Finance Authority, Future Tax Secured Revenue
5.000%, 02/01/31

     1,100,000        1,195,821   

New York State Dormitory Authority, State Personal Income Tax Revenue
5.000%, 03/15/31

     1,500,000        1,614,930   

New York State Dormitory Authority, Taxable, General Purpose Bonds
5.000%, 12/15/30

     1,700,000        1,848,002   

New York State Thruway Authority
5.000%, 03/15/30

     400,000        430,896   

Newport Beach CA, Certificates of Participation, Build America Bonds
7.168%, 07/01/40

     31,650,000        37,172,925   

Palomar Community College District
4.750%, 05/01/32 (AGM)

     300,000        311,784   

Pennsylvania Economic Development Financing Authority, Build America Bonds
6.532%, 06/15/39

     1,000,000        1,156,700   

Port Authority of New York & New Jersey, One Hundred Sixtieth
5.647%, 11/01/40 (GO OF AUTH)

     3,000,000        3,294,900   

Public Power Generation Agency, Build America Bonds, Whelan Energy Centre Unit
7.242%, 01/01/41

     1,800,000        2,002,806   

State of California General Obligation Unlimited, Build America Bonds
7.700%, 11/01/30

     100,000        120,440   

7.500%, 04/01/34

     2,900,000        3,759,212   

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Municipals—(Continued)

 

Security Description       
Principal
Amount*		     Value  

State of California General Obligation Unlimited, Build America Bond
7.600%, 11/01/40

     1,900,000      $ 2,573,056   

6.548%, 05/15/48

     3,400,000        4,058,784   

State of Georgia
6.655%, 04/01/57

     1,300,000        1,386,736   

State of Texas Transportation Commission Mobility Funding
4.750%, 04/01/35

     3,500,000        3,645,075   

State of Texas Transportation Commission Revenue, Build America Bonds
5.178%, 04/01/30

     2,300,000        2,573,539   

State of Wisconsin, General Fund Annual Appropriation Revenue
5.050%, 05/01/18 (AGM)

     2,900,000        3,231,354   

Tobacco Settlement Financing Corp.
5.000%, 06/01/41

     500,000        398,015   

7.467%, 06/01/47

     7,470,000        6,426,740   

Tobacco Settlement Funding Corp.
5.875%, 05/15/39

     2,000,000        1,999,440   

University of California, Limited Project
5.000%, 05/15/28

     15,600,000        17,132,856   
   

 

 

  

Total Municipals
(Cost $332,102,905)

       362,432,857   
   

 

 

  
Asset-Backed Securities—1.9%   

Asset-Backed - Home Equity—0.5%

  

Asset Backed Funding Certificates
0.893%, 06/25/34 (b)

     3,295,284        3,087,849   

Asset Backed Securities Corp.
0.273%, 05/25/37 (b)

     38,967        38,386   

Bear Stearns Asset Backed Securities Trust
0.443%, 04/25/37 (b)

     15,761,000        8,097,009   

0.993%, 10/27/32 (b)

     19,042        17,577   

1.193%, 10/25/37 (b)

     6,063,615        5,230,250   

Carrington Mortgage Loan Trust
0.513%, 10/25/35 (b)

     350,975        349,468   

Citigroup Mortgage Loan Trust, Inc.
0.253%, 07/25/45 (b)

     772,427        571,595   

Countrywide Asset-Backed Certificates
0.543%, 04/25/36 (b)

     14,207,240        13,296,357   

First Franklin Mortgage Loan Trust
0.553%, 10/25/35 (b)

     13,551,000        11,388,301   

Merrill Lynch Mortgage Investors, Inc.
0.693%, 06/25/36 (b)

     3,500,000        3,086,755   

Morgan Stanley ABS Capital I
0.253%, 05/25/37 (b)

     346,273        181,563   

Option One Mortgage Loan Trust
0.833%, 08/25/33 (b)

     24,577        22,480   

Renaissance Home Equity Loan Trust
0.633%, 08/25/33 (b)

     214,169        196,661   

Soundview Home Loan Trust
0.273%, 06/25/37 (b)

     32,952        27,717   
   

 

 

  
      45,591,968   
   

 

 

  

Asset-Backed - Other—1.3%

  

Blackrock Senior Income Series Corp.
0.516%, 04/20/19 (144A) (b)

     7,870,863      $ 7,685,504   

Conseco Financial Corp.
6.220%, 03/01/30

     79,892        86,768   

Galaxy CLO, Ltd.
0.516%, 04/25/19 (144A) (b)

     11,039,359        10,914,943   

Hillmark Funding
0.524%, 05/21/21 (144A) (b)

     29,600,000        28,635,277   

Lehman XS Trust
0.593%, 10/25/35 (b)

     8,906,167        8,453,458   

Mid-State Trust
7.791%, 03/15/38

     159,346        166,127   

Mountain View Funding CLO
0.537%, 04/15/19 (144A) (b)

     4,891,170        4,857,283   

MSIM Peconic Bay, Ltd.
0.556%, 07/20/19 (144A) (b)

     5,016,799        4,989,520   

Octagon Investment Partners V, Ltd.
0.573%, 11/28/18 (144A) (b)

     5,075,205        5,026,390   

Pacifica CDO, Ltd.
0.536%, 01/26/20 (144A) (b)

     7,783,942        7,727,796   

Penta CLO S.A.
0.518%, 06/04/24 (EUR) (b)

     2,808,091        3,470,231   

Popular ABS Mortgage Pass-Through Trust
0.283%, 06/25/47 (b)

     1,059,340        954,272   

Small Business Administration Participation Certificates
5.500%, 10/01/18

     21,619        23,236   

6.220%, 12/01/28

     6,694,156        7,659,498   

Structured Asset Securities Corp. Mortgage Loan Trust 2006-BC1
0.353%, 03/25/36 (b)

     9,088,597        8,554,242   

Tobacco Settlement Financing Corp.
6.250%, 06/01/42

     1,300,000        1,292,291   

United States Small Business Administration
5.471%, 03/10/18

     2,054,947        2,238,075   

Wood Street CLO B.V.
0.544%, 11/22/21 (EUR) (b)

     8,026,919        10,215,078   
   

 

 

  
      112,949,989   
   

 

 

  

Asset-Backed - Student Loan—0.1%

  

SLM Student Loan Trust
0.406%, 01/25/19 (b)

     3,979,734        3,979,714   

0.726%, 01/25/17 (b)

     1,402,980        1,405,204   

2.843%, 12/16/19 (144A) (b)

     2,200,000        2,244,700   
   

 

 

  
      7,629,618   
   

 

 

  

Total Asset-Backed Securities
(Cost $157,545,555)

       166,171,575   
   

 

 

  
Convertible Preferred Stock—0.5%   

Commercial Banks—0.5%

  

Wells Fargo & Co.
Series L
7.500%, 12/31/49
(Cost $25,992,734)

     36,950        44,118,300   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Preferred Stock—0.3%

 

Security Description  

Shares/

Principal
Amount*

     Value  

Commercial Banks—0.3%

  

GMAC Capital Trust I,
8.125% (b)
(Cost $28,270,000)

     1,130,800      $ 29,457,340   
   

 

 

  
Floating Rate Loan (b)—0.1%   

Diversified Financial Services—0.1%

  

Springleaf Finance Corp.
Term Loan
5.500%, 05/10/17
(Cost $12,603,548)

     12,644,522        12,673,478   
   

 

 

  
Short-Term Investments—4.8%   

U.S. Treasury—0.1%

  

U.S. Treasury Bills
0.020%, 08/22/13 (j)

     350,000        349,990   

0.036%, 08/08/13 (j) (k)

     4,700,000        4,699,826   

0.039%, 08/15/13 (j)

     300,000        299,986   

0.041%, 08/08/13 (j) (k)

     1,100,000        1,099,953   
   

 

 

  
      6,449,755   
   

 

 

  

Commercial Paper—0.5%

  

Electricite de France S.A.
0.796%, 01/10/14 (j)

     5,100,000        5,078,127   

Itau Unibanco S.A. New York
1.438%, 11/08/13 (j)

     30,000,000        29,839,901   

1.470%, 10/31/13 (j)

     8,900,000        8,855,427   
   

 

 

  
      43,773,455   
   

 

 

  

Repurchase Agreements—4.2%

  

Barclays Capital, Inc.
Repurchase Agreement dated 06/26/13 at 0.060% to be repurchased at $88,702,365 on 07/12/13 collateralized by $86,244,000 U.S. Treasury Note at 2.125% due 12/31/15 with a value of $89,710,578.

     88,700,000        88,700,000   

Citigroup Global Markets, Inc.
Repurchase Agreement dated 06/28/13 at 0.150% to be repurchased at $300,004 on 07/01/13 collateralized by $312,000 U.S. Treasury Note at 0.750% due 10/31/17 with a value of $306,162.

     300,000        300,000   

Repurchase Agreement dated 6/28/13 at 0.020% to be repurchased at $49,700,828 on 07/01/13 collateralized by $51,885,000 U.S. Treasury Note at 0.625% due 09/30/17 with a value of $50,735,851.

     49,700,000        49,700,000   

Repurchase Agreements—(Continued)

  

Repurchase Agreement dated 06/28/13 at 0.220% to be repurchased at $50,000,917 on 07/01/13 collateralized by $52,535,000 Federal Home Loan Mortgage Corp. at 1.620% due 11/21/19 with a value of $51,038,435.

     50,000,000      $ 50,000,000   

Goldman Sachs & Co.
Repurchase Agreement dated 06/28/2013 at 0.150% to be repurchased at $19,700,246 on 07/01/13, collateralized by $20,864,000 Federal Home Loan Mortgage Corp. at 3.000% due 06/01/43 with a value of $20,373,696.

     19,700,000        19,700,000   

Morgan Stanley & Co., LLC
Repurchase Agreement dated 06/28/13 at 0.200% to be repurchased at $100,001,667 on 07/01/13 collateralized by $119,480,200 U.S. Treasury Bond at 2.750% due 11/15/42 with a value of $103,042,353.

     100,000,000        100,000,000   

Repurchase Agreements dated 06/28/13 at 0.220% to be repurchased at $55,501,018 on 07/01/13 collateralized by $56,735,000 U.S.Government Agency obligations with rates ranging from 1.330% - 3.750%, maturity dates ranging from 03/27/19 - 10/24/19 with a value of $57,132,402.

     55,500,000        55,500,000   
   

 

 

  
      363,900,000   
   

 

 

  

Total Short-Term Investments
(Cost $414,123,210)

       414,123,210   
   

 

 

  

Total Investments—115.2%
(Cost $10,094,644,834) (l)

       10,052,018,008   

Other assets and liabilities (net)—(15.2)%

       (1,329,860,975 ) 
   

 

 

  
Net Assets—100.0%     $ 8,722,157,033   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(b) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(c) All or a portion of the security was pledged as collateral against open futures contracts. As of June 30, 2013, the market value of securities pledged was $14,845,659.

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

 

(d) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of June 30, 2013, the market value of securities pledged was $48,717,946.
(e) All or a portion of the security was pledged as collateral against open swap contracts and open forward foreign currency exchange contracts. As of June 30, 2013, the market value of securities pledged was $30,268,365.
(f) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of June 30, 2013, the market value of restricted securities was $33,629,817, which is 0.4% of net assets. See details shown in the Restricted Securities table that follows.
(g) Security is in default and/or issuer is in bankruptcy.
(h) Interest only security.
(i) Illiquid security. As of June 30, 2013, these securities represent 0.1% of net assets.
(j) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(k) All or a portion of the security was pledged as collateral against TBA securities. As of June 30, 2013, the value of securities pledged amounted to $3,715,000.
(l) As of June 30, 2013, the aggregate cost of investments was $10,094,644,834. The aggregate unrealized appreciation and depreciation of investments were $185,006,082 and $(227,632,908), respectively, resulting in net unrealized depreciation of $(42,626,826).
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $589,750,921, which is 6.8% of net assets.
(AGM)— Assured Guaranty Municipal Corporation
(AMBAC)— American Municipal Bond Assurance Corporation.
(ARM)— Adjustable-Rate Mortgage
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CDO)— Collateralized Debt Obligation
(CLO)— Collateralized Loan Obligation
(CMO)— Collateralized Mortgage Obligation
(DKK)— Danish Krone
(EUR)— Euro
(GBP)— British Pound
(GO OF AUTH)— General Obligation of Authority
(MXN)— Mexican Peso
(NATL-RE) — National Reinsurance
(REMIC)— Real Estate Mortgage Investment Conduit

 

Restricted Securities

    Acquisition
Date		      Principal
Amount		      Cost      Value  

Banque PSA Finance S.A.

      03/28/11       $ 14,900,000       $ 14,900,000       $ 14,769,848   

ING Bank NV

      10/13/10         3,300,000         3,299,377         3,312,448   

SteelRiver Transmission Co. LLC

      11/17/10         7,572,962         7,572,963         7,789,276   

Sumitomo Mitsui Banking Corp.

      01/06/11         7,400,000         7,398,389         7,451,770   

Woori Bank Co., Ltd.

      02/06/04         305,000         304,924         306,475   

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

       

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
DKK     103,220,000         BNP Paribas S.A.        08/15/13         $ 17,883,586         $ 138,360   
DKK     195,000         Credit Suisse International        08/15/13           34,114           (67 ) 
DKK     49,380,000         Deutsche Bank AG        08/15/13           8,771,961           (150,340 ) 
EUR     13,435,000         Barclays Bank plc        07/02/13           17,848,814           (361,154 ) 
EUR     4,600,000         Citibank N.A.        07/02/13           6,129,932           (142,345 ) 
EUR     4,904,000         Citibank N.A.        07/02/13           6,492,597           (109,308 ) 
EUR     6,624,000         Citibank N.A.        07/02/13           8,827,103           (204,977 ) 
EUR     6,726,000         Credit Suisse International        07/02/13           8,654,592           100,302   
EUR     14,666,000         Credit Suisse International        07/02/13           19,548,282           (458,291 ) 
EUR     28,706,000         Credit Suisse International        07/02/13           37,112,064           253,085   
EUR     10,416,000         Deutsche Bank AG        07/02/13           13,775,629           (217,648 ) 
EUR     11,411,000         Deutsche Bank AG        07/02/13           15,105,277           (252,155 ) 
EUR     15,390,000         Deutsche Bank AG        07/02/13           20,516,748           (484,363 ) 
EUR     26,110,000         Deutsche Bank AG        07/02/13           34,531,650           (545,583 ) 
EUR     30,019,000         Deutsche Bank AG        07/02/13           38,937,225           136,990   
EUR     50,211,000         Deutsche Bank AG        07/02/13           66,466,661           (1,109,540 ) 
EUR     6,619,000         JPMorgan Chase Bank N.A.        07/02/13           8,733,466           (117,848 ) 
EUR     10,508,000         JPMorgan Chase Bank N.A.        07/02/13           13,747,248           (69,516 ) 
EUR     215,504,000         Morgan Stanley & Co., LLC        07/02/13           286,098,369           (5,587,706 ) 
EUR     11,021,000         BNP Paribas S.A.        08/02/13           14,419,943           (72,701 ) 
EUR     1,866,000         Credit Suisse International        08/02/13           2,434,150           (4,974 ) 

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Buy

       

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
EUR     2,962,000         Deutsche Bank AG        08/02/13         $ 3,880,280         $ (24,320 ) 
EUR     24,841,000         Deutsche Bank AG        08/02/13           32,561,732           (223,483 ) 
EUR     116,000         Barclays Bank plc        09/17/13           154,287           (3,245 ) 
EUR     11,399,000         Citibank N.A.        09/17/13           15,287,130           (444,648 ) 
EUR     25,819,000         Citibank N.A.        09/17/13           34,625,706           (1,007,139 ) 
GBP     1,500,000         Citibank N.A.        07/02/13           2,353,905           (72,481 ) 
GBP     2,000,000         Citibank N.A.        07/02/13           3,112,192           (70,293 ) 
GBP     2,668,000         Citibank N.A.        07/02/13           4,151,664           (93,771 ) 
GBP     3,421,000         Citibank N.A.        07/02/13           5,368,472           (165,304 ) 
GBP     1,000,000         Credit Suisse International        07/02/13           1,567,742           (46,792 ) 
GBP     1,000,000         Credit Suisse International        07/02/13           1,567,742           (46,792 ) 
GBP     1,963,000         Credit Suisse International        07/02/13           2,954,314           31,310   
GBP     14,481,000         Goldman Sachs & Co.        07/02/13           22,361,561           (336,690 ) 
IDR     3,968,800,000         Credit Suisse International        08/12/13           400,000           (1,891 ) 
IDR     16,864,000,000         JPMorgan Chase Bank N.A.        08/12/13           1,700,000           (8,377 ) 
JPY     165,100,000         Citibank N.A.        07/18/13           1,672,187           (7,438 ) 
JPY     759,500,000         Citibank N.A.        07/18/13           7,692,463           (34,215 ) 
JPY     1,383,800,000         Citibank N.A.        07/18/13           14,537,501           (584,263 ) 
JPY     165,500,000         Credit Suisse International        07/18/13           1,755,339           (86,557 ) 
JPY     277,000,000         Credit Suisse International        07/18/13           2,937,938           (144,871 ) 
JPY     724,000,000         Credit Suisse International        07/18/13           7,424,324           (124,032 ) 
JPY     1,006,700,000         Deutsche Bank AG        07/18/13           10,570,360           (419,526 ) 
MXN     277,929         BNP Paribas S.A.        09/18/13           21,374           (72 ) 
MXN     145,818         JPMorgan Chase Bank N.A.        09/18/13           11,319           (143 ) 
MXN     146,197         JPMorgan Chase Bank N.A.        09/18/13           11,418           (213 ) 
MXN     8,715,772         JPMorgan Chase Bank N.A.        09/18/13           706,159           (38,138 ) 
MXN     146,263         Morgan Stanley & Co., LLC        09/18/13           11,389           (179 ) 
MXN     146,937         Morgan Stanley & Co., LLC        09/18/13           11,538           (276 ) 
MXN     276,071         UBS AG        09/18/13           21,020           139   
MXN     287,677         UBS AG        09/18/13           22,215           (166 ) 
MXN     1,094,694,691         UBS AG        09/18/13           89,206,265           (5,303,280 ) 
MYR     3,040,000         Barclays Bank plc        07/15/13           1,000,000           (38,684 ) 
MYR     3,042,500         Barclays Bank plc        07/15/13           1,000,000           (37,893 ) 
MYR     3,048,000         Barclays Bank plc        07/15/13           1,000,000           (36,154 ) 
MYR     3,046,000         Credit Suisse International        07/15/13           1,000,000           (36,786 ) 

Contracts to Deliver

                                    
BRL     694,252         Morgan Stanley & Co., LLC        08/02/13         $ 311,687         $ 2,726   
BRL     222,690         Morgan Stanley & Co., LLC        08/02/13           100,000           897   
BRL     257,570,074         UBS AG        08/02/13           126,769,403           12,143,528   
CAD     221,453,000         Barclays Bank plc        09/23/13           217,464,697           7,317,817   
DKK     147,324,000         Barclays Bank plc        08/15/13           26,094,719           372,328   
EUR     24,841,000         Deutsche Bank AG        07/02/13           32,556,615           222,341   
EUR     215,504,000         Morgan Stanley & Co., LLC        07/02/13           278,366,948           (2,143,715 ) 
EUR     215,504,000         UBS AG        07/02/13           286,098,369           5,587,706   
EUR     112,400,000         Deutsche Bank AG        08/01/13           141,565,552           (4,757,250 ) 
EUR     243,000         Deutsche Bank AG        08/02/13           318,335           1,995   
EUR     21,100,000         UBS AG        09/04/13           26,636,007           (836,312 ) 
EUR     417,000         Citibank N.A.        09/17/13           554,885           11,915   
EUR     2,914,968         UBS AG        09/20/13           3,828,737           33,143   
EUR     200,000         BNP Paribas S.A.        04/01/14           252,678           (8,034 ) 
EUR     1,000,000         Citibank N.A.        04/01/14           1,267,350           (36,211 ) 
EUR     300,000         BNP Paribas S.A.        06/02/14           379,359           (11,893 ) 
EUR     1,600,000         Credit Suisse International        06/02/14           2,028,800           (57,876 ) 
EUR     200,000         BNP Paribas S.A.        07/01/14           253,000           (7,892 ) 
EUR     200,000         BNP Paribas S.A.        08/01/14           253,120           (7,851 ) 

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Forward Foreign Currency Exchange Contracts—(Continued)

 

Contracts to Deliver

       

Counterparty

      Settlement
Date		        In Exchange
for		        Unrealized
Appreciation/
(Depreciation)		  
GBP     28,033,000         Deutsche Bank AG        07/02/13         $ 42,638,305         $ 1,526   
GBP     14,481,000         Goldman Sachs & Co.        08/02/13           22,356,999           336,762   
IDR     20,832,800,000         Deutsche Bank AG        08/12/13           2,103,261           13,529   
JPY     735,200,000         BNP Paribas S.A.        07/18/13           7,506,100           92,876   
JPY     129,400,000         Credit Suisse International        07/18/13           1,326,944           22,168   
JPY     3,786,291,000         UBS AG        07/18/13           38,351,042           172,824   
MXN     66,275,040         Barclays Bank plc        09/18/13           5,117,368           37,711   
MXN     23,044,824         Barclays Bank plc        09/18/13           1,782,000           15,727   
MXN     104,746,920         JPMorgan Chase Bank N.A.        09/18/13           8,130,000           101,662   
MXN     21,943,254         JPMorgan Chase Bank N.A.        09/18/13           1,698,000           16,157   
MXN     20,321,214         JPMorgan Chase Bank N.A.        09/18/13           1,532,000           (25,522 ) 
MXN     16,672,481         JPMorgan Chase Bank N.A.        09/18/13           1,273,000           (4,864 ) 
MXN     8,627,042         JPMorgan Chase Bank N.A.        09/18/13           661,000           (220 ) 
MXN     31,763,102         Morgan Stanley & Co., LLC        09/18/13           2,371,000           (63,486 ) 
MXN     30,829,590         Morgan Stanley & Co., LLC        09/18/13           2,420,000           57,063   
MXN     19,957,784         Morgan Stanley & Co., LLC        09/18/13           1,540,000           10,334   
MXN     14,232,019         Morgan Stanley & Co., LLC        09/18/13           1,088,000           (2,815 ) 
MXN     11,909,094         Morgan Stanley & Co., LLC        09/18/13           880,000           (32,774 ) 
MXN     9,935,625         Morgan Stanley & Co., LLC        09/18/13           757,000           (4,517 ) 
MXN     16,799,187         UBS AG        09/18/13           1,266,000           (21,575 ) 
MXN     3,270,603         UBS AG        09/18/13           245,000           (5,676 ) 
MYR     2,900,300         Deutsche Bank AG        07/15/13           935,430           18,290   
MYR     3,711,000         JPMorgan Chase Bank N.A.        07/15/13           1,200,000           26,498   
MYR     2,898,500         UBS AG        07/15/13           935,453           18,882   
MYR     2,666,700         UBS AG        07/15/13           860,503           17,233   
                     

 

 

  

Net Unrealized Depreciation

  

      $ (41,287 ) 
                     

 

 

  

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		    Number of
Contracts		     Notional
Amount		     Unrealized
Appreciation/
(Depreciation)		  

3-Month Euribor

    12/15/14      132        EUR        32,780,682      $ 19,158   

3-Month Euribor

    03/16/15      126        EUR        31,330,151        (65,930 ) 

3-Month Euribor

    06/15/15      120        EUR        29,817,158        (70,494 ) 

90 Day EuroDollar Futures

    09/15/14      143        USD        35,524,012        24,000   

90 Day EuroDollar Futures

    12/15/14      344        USD        85,408,793        10,707   

90 Day EuroDollar Futures

    06/15/15      6,014        USD        1,490,326,775        (2,087,300 ) 

90 Day EuroDollar Futures

    09/14/15      871        USD        215,784,683        (745,671 ) 

90 Day EuroDollar Futures

    12/14/15      3,927        USD        973,123,525        (6,099,775 ) 

90 Day EuroDollar Futures

    03/14/16      1,040        USD        257,381,238        (1,970,238 ) 

U.S. Treasury Note 10 Year Futures

    09/19/13      5,954        USD        772,899,515        (19,346,390 ) 

Futures Contracts—Short

                        

Call Options on 10 Year Eurobond Futures, Strike EUR 148

    08/23/13      (62 )      EUR        (25,367 )      29,791   

Put Options on 10 Year Eurobond Futures, Strike EUR 142

    08/23/13      (62 )      EUR        (46,707 )      (74,783 ) 
           

 

 

  

Net Unrealized Depreciation

  

   $ (30,376,925 ) 
           

 

 

  

Options Written

 

Foreign Currency Options Written

    Strike
Price		    Counterparty      Expiration
Date		    Number of
Contracts		     Premiums
Received		     Market
Value		     Unrealized
Appreciation		  

Put - OTC USD vs JPY

    95      BNP Paribas S.A.       07/05/13      (69,100,000 )    $ (564,380 )    $ (32,408 )    $ 531,972   
             

 

 

    

 

 

    

 

 

  

 

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Options Written—(Continued)

 

Inflation Capped Options

   Strike
Index		   Counterparty   

Exercise Index

   Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation		  

Floor - OTC CPURNSA Index

   215.949   Deutsche Bank AG    Maximum of ((1 + 0.000%)10
- Inflation Adjustment) or 0		     03/10/2020      $ (5,800,000 )    $ (43,500 )    $ (9,217 )    $ 34,283   

Floor - OTC CPURNSA Index

   215.949   Citibank N.A.    Maximum of ((1 + 0.000%)10
- Inflation Adjustment) or 0		     03/12/2020        (16,200,000 )      (137,080 )      (25,264 )      111,816   

Floor - OTC CPURNSA Index

   216.687   Citibank N.A.    Maximum of ((1 + 0.000%)10
- Inflation Adjustment) or 0		     04/07/2020        (38,800,000 )      (346,040 )      (60,688 )      285,352   

Floor - OTC CPURNSA Index

   217.965   Citibank N.A.    Maximum of ((1 + 0.000%)10
- Inflation Adjustment) or 0		     09/29/2020        (17,500,000 )      (225,750 )      (14,590 )      211,160   

Floor - OTC CPURNSA Index

   218.011   Deutsche Bank AG    Maximum of ((Final Reference Index/Initial Ref Index)-1) or 0
- Inflation Adjustment) or 0		     10/13/2020        (18,000,000 )      (176,400 )      (32,846 )      143,554   
            

 

 

    

 

 

    

 

 

  

Totals

  

   $ (928,770 )    $ (142,605 )    $ 786,165   
            

 

 

    

 

 

    

 

 

  

CPURNSA—Consumer Price All Urban Non-Seasonally Adjusted

 

Interest Rate
Swaptions

   Exercise
Rate		  

Counterparty

  

Floating
Rate Index

   Pay/Receive
Floating Rate		   Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation/
(Depreciation)		  

Call - OTC - 5-Year Interest Rate Swap

   0.700%   UBS AG   3-Month USD-LIBOR   Receive     07/18/13      $          (70,100,000 )    $ (21,030 )    $ (7 )    $ 21,023   

Put - OTC - 2-Year Interest Rate Swap

   1.200%   Deutsche Bank AG   3-Month USD-LIBOR   Pay     07/11/13          (104,900,000 )      (740,358 )      (10 )      740,348   

Call - OTC - 10-Year Interest Rate Swap

   1.800%   Barclays Bank plc   3-Month USD-LIBOR   Receive     07/29/13          (32,200,000 )      (148,140 )      (97 )      148,043   

Call - OTC - 10-Year Interest Rate Swap

   1.800%   JPMorgan Chase Bank N.A.   3-Month USD-LIBOR   Receive     07/29/13          (41,900,000 )      (176,653 )      (126 )      176,527   

Call - OTC - 10-Year Interest Rate Swap

   1.800%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Receive     07/29/13          (55,900,000 )      (276,375 )      (168 )      276,207   

Call - OTC - 10-Year Interest Rate Swap

   1.800%   Goldman Sachs & Co.   3-Month USD-LIBOR   Receive     07/29/13          (90,800,000 )      (440,275 )      (272 )      440,003   

Call - OTC - 5-Year Interest Rate Swap

   0.750%   Deutsche Bank AG   3-Month USD-LIBOR   Receive     09/03/13          (17,300,000 )      (12,110 )      (467 )      11,643   

Put - OTC - 2-Year Interest Rate Swap

   1.150%   Credit Suisse International   6-Month EUR-LIBOR   Pay     07/24/13          (35,200,000 )      (77,718 )      (1,498 )      76,220   

Call - OTC - 5-Year Interest Rate Swap

   0.750%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Receive     09/03/13          (109,500,000 )      (61,200 )      (2,957 )      58,243   

Put - OTC - 5-Year Interest Rate Swap

   1.700%   Deutsche Bank AG   6-Month EUR-LIBOR   Pay     07/24/13          (6,400,000 )      (31,718 )      (3,491 )      28,227   

Call - OTC - 5-Year Interest Rate Swap

   0.900%   Deutsche Bank AG   3-Month USD-LIBOR   Receive     09/03/13          (42,500,000 )      (44,625 )      (3,868 )      40,757   

Call - OTC - 5-Year Interest Rate Swap

   0.650%   Citibank N.A.   Markit CDX North America Investment Grade, Series 20   Receive     09/18/13          (23,300,000 )      (16,310 )      (8,411 )      7,899   

Call - OTC - 5-Year Interest Rate Swap

   0.650%   Bank of America N.A.   Markit CDX North America Investment Grade, Series 20   Receive     09/18/13          (23,300,000 )      (11,650 )      (8,411 )      3,239   

Call - OTC - 5-Year Interest Rate Swap

   0.700%   Citibank N.A.   Markit CDX North America Investment Grade, Series 20   Receive     09/18/13          (12,300,000 )      (10,455 )      (8,785 )      1,670   

Put - OTC - 5-Year Interest Rate Swap

   1.700%   Barclays Bank plc   6-Month EUR-LIBOR   Pay     07/24/13          (16,300,000 )      (82,381 )      (8,890 )      73,491   

Call - OTC - 5-Year Interest Rate Swap

   1.000%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Receive     09/03/13          (60,800,000 )      (60,800 )      (12,099 )      48,701   

Call - OTC - 1-Year Interest Rate Swap

   0.400%   Goldman Sachs Bank USA   6-Month EUR-LIBOR   Receive     03/12/14          (36,600,000 )      (75,472 )      (44,353 )      31,119   

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Options Written—(Continued)

 

Interest Rate
Swaptions

   Exercise
Rate		  

Counterparty

  

Floating
Rate Index

   Pay/Receive
Floating Rate		   Expiration
Date		     Notional
Amount		     Premiums
Received		     Market
Value		     Unrealized
Appreciation/
(Depreciation)		  

Call - OTC - 1-Year Interest Rate Swap

   0.400%   Barclays Bank plc   6-Month
EUR-LIBOR		   Receive     03/12/14      $          (36,700,000 )    $ (70,948 )    $ (44,474 )    $ 26,474   

Put - OTC - 1-Year Interest Rate Swap

   0.400%   Goldman Sachs Bank USA   6-Month EUR-LIBOR   Pay     03/12/14          (36,600,000 )      (75,472 )      (106,143 )      (30,671 ) 

Put - OTC - 1-Year Interest Rate Swap

   0.400%   Barclays Bank plc   6-Month EUR-LIBOR   Pay     03/12/14          (36,700,000 )      (80,408 )      (106,433 )      (26,025 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.400%   Deutsche Bank AG   3-Month
USD-LIBOR		   Pay     09/03/13          (10,200,000 )      (36,210 )      (161,741 )      (125,531 ) 

Call - OTC - 5-Year Interest Rate Swap

   1.100%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Receive     09/03/13          (433,900,000 )      (520,680 )      (180,502 )      340,178   

Put - OTC - 5-Year Interest Rate Swap

   1.250%   Deutsche Bank AG   3-Month USD-LIBOR   Pay     09/03/13          (17,300,000 )      (46,710 )      (373,680 )      (326,970 ) 

Put - OTC - 10-Year Interest Rate Swap

   2.650%   Barclays Bank plc   3-Month USD-LIBOR   Pay     07/29/13          (32,200,000 )      (230,750 )      (483,258 )      (252,508 ) 

Put - OTC - 10-Year Interest Rate Swap

   2.650%   JPMorgan Chase Bank N.A.   3-Month USD-LIBOR   Pay     07/29/13          (41,900,000 )      (218,285 )      (628,835 )      (410,550 ) 

Put - OTC - 10-Year Interest Rate Swap

   2.650%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Pay     07/29/13          (55,900,000 )      (397,755 )      (838,947 )      (441,192 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.100%   Deutsche Bank AG   3-Month USD-LIBOR   Pay     09/03/13          (42,500,000 )      (241,188 )      (1,198,118 )      (956,930 ) 

Put - OTC - 10-Year Interest Rate Swap

   2.650%   Goldman Sachs & Co.   3-Month USD-LIBOR   Pay     07/29/13          (90,800,000 )      (377,460 )      (1,362,726 )      (985,266 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.000%   UBS AG   3-Month USD-LIBOR   Pay     07/18/13          (70,100,000 )      (210,300 )      (2,038,508 )      (1,828,208 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.250%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Pay     09/03/13          (109,500,000 )      (276,695 )      (2,365,200 )      (2,088,505 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.500%   Goldman Sachs & Co.   3-Month USD-LIBOR   Pay     10/28/13          (180,700,000 )      (497,565 )      (3,221,520 )      (2,723,955 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.450%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Pay     09/03/13          (229,600,000 )      (1,129,158 )      (3,258,712 )      (2,129,554 ) 

Put - OTC - 5-Year Interest Rate Swap

   1.650%   Morgan Stanley Capital Services, LLC   3-Month USD-LIBOR   Pay     09/03/13          (433,900,000 )      (1,041,360 )      (3,854,333 )      (2,812,973 ) 
               

 

 

    

 

 

    

 

 

  

Totals

  

   $ (7,738,214 )    $ (20,327,040 )    $ (12,588,826 ) 
               

 

 

    

 

 

    

 

 

  

 

Options on Exchange-Traded Futures Contracts

    Exercise
Price		    Expiration
Date		      Number of
Contracts		     Premiums
Received		     Market
Value		     Unrealized
Appreciation/
(Depreciation)		  

Call - 10 Year U.S. Treasury Note Futures

    $133.0      08/23/13         (715 )    $ (211,044 )    $ (22,344 )    $ 188,700   

Put - 10 Year U.S. Treasury Note Futures

      129.0      08/23/13         (715 )      (415,738 )      (1,999,765 )      (1,584,027 ) 
          

 

 

    

 

 

    

 

 

  
           $ (626,782 )    $ (2,022,109 )    $ (1,395,327 ) 
          

 

 

    

 

 

    

 

 

  

Swap Agreements

OTC interest rate swap agreements

 

Pay/Receive
Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		     

Counterparty

    Notional Amount      Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Pay

    IRS BRL TIIE      9.130 %      01/02/17       Deutsche Bank AG      BRL          13,000,000       $ (214,353 )    $ 40,695      $ (255,048 ) 

Pay

    IRS BRL TIIE      9.095 %      01/02/17       Goldman Sachs Bank USA      BRL        7,600,000         (130,058 )      —        (130,058 ) 

Pay

    IRS BRL TIIE      9.140 %      01/02/17       Morgan Stanley Capital Services, LLC      BRL        5,000,000         (82,782 )      16,379        (99,161 ) 

Pay

    IRS BRL TIIE      8.640 %      01/02/17       Morgan Stanley Capital Services, LLC      BRL        4,900,000         (94,706 )      (5,659 )      (89,047 ) 

Pay

    IRS BRL TIIE      8.900 %      01/02/17       UBS AG      BRL        21,600,000         (400,607 )      (16,216 )      (384,391 ) 

 

See accompanying notes to financial statements.

 

MIST-25

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Swap Agreements—(Continued)

 

Pay/Receive
Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		     

Counterparty

    Notional Amount      Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Pay

    IRS MXN TIIE      5.600 %      09/06/16      

Barclays Bank plc

      MXN        313,000,000       $ 365,577      $ 145,041      $ 220,536   

Pay

    IRS MXN TIIE      5.600 %      09/06/16       Morgan Stanley Capital Services, LLC      MXN        37,200,000         43,449        7,444        36,005   

Pay

    IRS MXN TIIE      5.500 %      09/13/17      

Barclays Bank plc

      MXN        296,000,000         43,541        (179,911 )      223,452   

Pay

    IRS MXN TIIE      5.000 %      09/13/17      

Barclays Bank plc

      MXN        4,900,000         (6,542 )      (2,831 )      (3,711 ) 

Pay

    IRS MXN TIIE      5.500 %      09/13/17       Morgan Stanley Capital Services, LLC      MXN        136,000,000         20,005        (63,908 )      83,913   

Pay

    IRS MXN TIIE      5.000 %      06/11/18       JPMorgan Chase Bank N.A.      MXN        140,000,000         (332,263 )      (211,683 )      (120,580 ) 

Pay

    IRS MXN TIIE      5.000 %      06/11/18       Morgan Stanley Capital Services, LLC      MXN        264,000,000         (626,553 )      (428,178 )      (198,375 ) 

Pay

    IRS MXN TIIE      6.350 %      06/02/21       Morgan Stanley Capital Services, LLC      MXN        30,900,000         2,688        7,317        (4,629 ) 

Pay

    IRS MXN TIIE      5.500 %      09/02/22       Morgan Stanley Capital Services, LLC      MXN        700,000         (3,806 )      (1,068 )      (2,738 ) 

Pay

    IRS MXN TIIE      5.750 %      06/05/23       BNP Paribas S.A.      MXN        100,000         (486 )      (128 )      (358 ) 

Pay

    IRS MXN TIIE      5.750 %      06/05/23      

Barclays Bank plc

      MXN        100,000         (486 )      (287 )      (199 ) 

Pay

    IRS MXN TIIE      6.000 %      06/05/23      

Barclays Bank plc

      MXN        200,000         (681 )      (348 )      (333 ) 

Pay

    IRS MXN TIIE      5.750 %      06/05/23       Deutsche Bank AG      MXN        200,000         (972 )      (337 )      (635 ) 

Pay

    IRS MXN TIIE      5.750 %      06/05/23       Goldman Sachs Bank USA      MXN        200,000         (972 )      (486 )      (486 ) 

Pay

    IRS MXN TIIE      6.000 %      06/05/23       JPMorgan Chase Bank N.A.      MXN        300,000         (1,022 )      (1,099 )      77   
                  

 

 

    

 

 

    

 

 

  

Totals

  

    $ (1,421,029 )    $ (695,263 )    $ (725,766 ) 
                  

 

 

    

 

 

    

 

 

  

Centrally cleared interest rate swap agreements

 

Pay/Receive Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		      Notional
Amount		      Unrealized
Appreciation/
(Depreciation)		  

Pay

    3-Month USD-LIBOR      1.500 %      03/18/16       USD     1,203,500,000       $ (3,589,336 ) 

Receive

    3-Month USD-LIBOR      4.250 %      06/15/41       USD     335,900,000         46,718,791   

Receive

    3-Month USD-LIBOR      2.750 %      06/19/43       USD     167,400,000         13,381,866   

Pay

    Federal Funds Effective Rate      1.000 %      10/15/17       USD     417,900,000         (5,964,926 ) 
               

 

 

  

Total

  

    $ 50,546,395   
               

 

 

  

OTC Credit Default Swaps on corporate issues—Buy Protection (a)

 

Reference Obligation

   Fixed Deal
(Pay) Rate		   Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		   Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid		     Unrealized
Depreciation		  

Con-way, Inc.
7.250%, due 1/15/2018

   (1.834%)     03/20/18      Bank of America N.A.     1.717%     USD        10,000,000      $ (52,257)      $ —      $ (52,257)   

Pearson Dollar Finance plc 5.700%, due 6/1/2014

   (0.830%)     06/20/14      JPMorgan Chase Bank N.A.     0.195%     USD        5,000,000        (31,349)        —        (31,349)   

Pearson Dollar Finance plc
5.700%, due 6/1/2014

   (0.760%)     06/20/14      Morgan Stanley
Capital Services, LLC		     0.195%     USD        8,500,000        (47,421)        —        (47,421)   

Rohm & Haas Co.
6.000%, due 9/15/2017

   (0.423%)     09/20/17      Bank of America N.A.     0.388%     USD        8,500,000        (12,315)        —        (12,315)   
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (143,342)      $ —      $ (143,342)   
             

 

 

    

 

 

    

 

 

  

 

See accompanying notes to financial statements.

 

MIST-26

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

OTC Credit Default Swaps on corporate and sovereign issues—Sell Protection (d)

 

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Barclays Bank plc 1.551%, due 10/27/2015

     1.000 %      03/20/14      Deutsche Bank AG     0.491 %      EUR        1,000,000      $ 4,852      $ 6,894      $ (2,042 ) 

Berkshire Hathaway Finance Corp. 4.625%, due 10/15/2013

     1.000 %      03/20/15      Goldman Sachs International     0.447 %      USD        3,100,000        29,685        (54,777 )      84,462   

Berkshire Hathaway Finance Corp. 4.625%, due 10/15/2013

     1.000 %      03/20/16      Citibank N.A.     0.639 %      USD        900,000        8,827        (10,165 )      18,992   

Berkshire Hathaway, Inc. 1.900%, due 1/31/2017

     1.000 %      12/20/13     

Barclays Bank plc

     0.238 %      USD        1,600,000        5,915        9,049        (3,134 ) 

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      06/20/15      Citibank N.A.     1.252 %      USD        11,700,000        (57,907 )      (327,293 )      269,386   

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      06/20/15      Deutsche Bank AG     1.252 %      USD        6,100,000        (30,191 )      (66,949 )      36,758   

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      06/20/15      JPMorgan Chase Bank N.A.     1.252 %      USD        12,700,000        (62,856 )      (139,386 )      76,530   

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      09/20/15      Citibank N.A.     1.295 %      USD        1,200,000        (7,821 )      (18,832 )      11,011   

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      09/20/15      JPMorgan Chase Bank N.A.     1.295 %      USD        4,100,000        (26,723 )      (41,229 )      14,506   

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      09/20/15      UBS AG     1.295 %      USD        1,600,000        (10,429 )      (15,139 )      4,710   

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      12/20/15      Morgan Stanley Capital Services, LLC     1.353 %      USD        37,100,000        (320,457 )      (214,047 )      (106,410 ) 

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      03/20/16      Citibank N.A.     1.400 %      USD        14,000,000        (150,312 )      (265,618 )      115,306   

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      03/20/16      Deutsche Bank AG     1.400 %      USD        25,000,000        (268,414 )      (146,458 )      (121,956 ) 

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      03/20/16      Morgan Stanley Capital Services, LLC     1.400 %      USD        25,000,000        (268,414 )      (146,458 )      (121,956 ) 

Brazilian Government International Bond 12.250% due 3/6/2030

     1.000 %      06/20/16      Citibank N.A.     1.440 %      USD        19,300,000        (247,762 )      (65,160 )      (182,602 ) 

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      06/20/16      Deutsche Bank AG     1.440 %      USD        11,000,000        (141,212 )      (36,869 )      (104,343 ) 

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      09/20/16      JPMorgan Chase Bank N.A.     1.473 %      USD        5,900,000        (88,018 )      (34,458 )      (53,560 ) 

Brazilian Government International Bond 12.250%, due 3/6/2030

     1.000 %      12/20/16     

Barclays Bank plc

     1.526 %      USD        31,100,000        (552,521 )      (783,302 )      230,781   

China Government International Bond 4.750%, due 10/29/2013

     1.000 %      03/20/15      Deutsche Bank AG     0.492 %      USD        15,000,000        131,931        85,576        46,355   

General Electric Capital Corp. 5.625%, due 9/15/2017

     4.200 %      12/20/13      Citibank N.A.     0.318 %      USD        21,900,000        412,209        —        412,209   

General Electric Capital Corp.
5.625%, due 9/15/2017

     4.000 %      12/20/13      Citibank N.A.     0.318 %      USD        20,800,000        371,335        —        371,335   

General Electric Capital Corp.
5.625%, due 9/15/2017

     4.850 %      12/20/13      Citibank N.A.     0.318 %      USD        9,100,000        199,961        —        199,961   

General Electric Capital Corp.
5.625%, due 9/15/2017

     4.325 %      12/20/13      Citibank N.A.     0.318 %      USD        10,200,000        198,169        —        198,169   

General Electric Capital Corp.
5.625%, due 9/15/2017

     4.875 %      12/20/13      Citibank N.A.     0.318 %      USD        3,100,000        68,495        —        68,495   

General Electric Capital Corp.
5.625%, due 9/15/2017

     4.000 %      12/20/13      Citibank N.A.     0.318 %      USD        3,600,000        64,269        —        64,269   

General Electric Capital Corp.
5.625%, due 9/15/2017

     1.000 %      12/20/15      Morgan Stanley Capital Services, Inc.     0.642 %      USD        6,500,000        57,378        (127,348 )      184,726   

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      03/20/15      Citibank N.A.     0.733 %      USD        4,300,000        19,861        (98,727 )      118,588   

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      03/20/15      Deutsche Bank AG     0.733 %      USD        6,400,000        29,561        (146,943 )      176,504   

 

See accompanying notes to financial statements.

 

MIST-27

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

OTC Credit Default Swaps on corporate and sovereign issues—Sell Protection (d)—(Continued)

 

Reference Obligation

   Fixed Deal
Receive Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid/
(Received)		     Unrealized
Appreciation/
(Depreciation)		  

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      09/20/15      Citibank N.A.     0.789 %      USD        1,900,000        8,896        (28,651 )      37,547   

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      09/20/15      UBS AG     0.789 %      USD        600,000        2,809        (8,488 )      11,297   

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      03/20/16     

Barclays Bank plc

     0.880 %      USD        10,800,000        35,192        (82,990 )      118,182   

Mexico Government International Bond 5.950%, due 3/19/2019

     1.000 %      03/20/16      Citibank N.A.     0.880 %      USD        6,900,000        22,484        (125,166 )      147,650   

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      03/20/16      Deutsche Bank AG     0.880 %      USD        19,600,000        63,868        (143,793 )      207,661   

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      06/20/16      Citibank N.A.     0.914 %      USD        10,000,000        25,477        (21,564 )      47,041   

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      09/20/16      Goldman Sachs International     0.942 %      USD        4,600,000        8,465        (21,933 )      30,398   

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      09/20/16      Morgan Stanley Capital Services, LLC     0.942 %      USD        9,400,000        17,298        (40,540 )      57,838   

Mexico Government International Bond 7.500%, due 4/8/2033

     1.000 %      09/20/16      UBS AG     0.942 %      USD        4,100,000        7,545        (17,990 )      25,535   

Mexico Government International Bond
5.950% due 3/19/2019

     1.000 %      06/20/17     

Barclays Bank plc

     1.078 %      USD        900,000        (2,722 )      (15,834 )      13,112   

Mexico Government International Bond
5.950% due 3/19/2019

     1.000 %      06/20/17      Goldman Sachs International     1.078 %      USD        2,900,000        (8,772 )      (12,796 )      4,024   

Republic of Indonesia
6.750%, due 3/10/2014

     1.000 %      09/20/15      Citibank N.A.     1.021 %      USD        1,400,000        (635 )      (31,728 )      31,093   

Republic of Indonesia
7.250% due 4/20/2015

     1.000 %      06/20/16     

Barclays Bank plc

     1.228 %      USD        5,000,000        (33,305 )      (78,629 )      45,324   

Republic of Indonesia
7.250% due 4/20/2015

     1.000 %      06/20/16     

Barclays Bank plc

     1.228 %      USD        5,600,000        (37,302 )      (89,360 )      52,058   

Republic of Indonesia
6.750% due 3/10/2014

     1.000 %      06/20/16      Citibank N.A.     1.228 %      USD        1,700,000        (11,324 )      (32,306 )      20,982   

Republic of Indonesia
6.750% due 3/10/2014

     1.000 %      06/20/16      Citibank N.A.     1.228 %      USD        4,200,000        (27,976 )      (77,852 )      49,876   

Republic of Indonesia
7.250%, due 4/20/2015

     1.000 %      09/20/16      Morgan Stanley Capital Services, LLC     1.276 %      USD        5,900,000        (51,323 )      (87,543 )      36,220   

Republic of Indonesia
7.250%, due 4/20/2015

     1.000 %      09/20/16      UBS AG     1.276 %      USD        2,600,000        (22,617 )      (41,034 )      18,417   

Republic of Indonesia
6.750% due 3/10/2014

     1.000 %      06/20/21      UBS AG     2.440 %      USD        1,700,000        (164,206 )      (124,288 )      (39,918 ) 

U.S. Treasury Note
4.875%, due 8/15/2016

     0.250 %      09/20/15      UBS AG     0.132 %      EUR        31,800,000        109,010        (477,132 )      586,142   

U.S. Treasury Note
4.875%, due 8/15/2016

     0.250 %      03/20/16      BNP Paribas S.A.     0.145 %      EUR        21,500,000        80,711        (303,267 )      383,978   
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (609,016 )    $ (4,500,523 )    $ 3,891,507   
             

 

 

    

 

 

    

 

 

  

OTC Credit Default Swaps on credit indices—Sell Protection (d)

 

Reference Obligation

   Fixed Deal
Receive
Rate		     Maturity
Date		    

Counterparty

   Implied Credit
Spread at
June 30,
2013(b)		     Notional
Amount(c)		     Market
Value		     Upfront
Premium
Paid		     Unrealized
Appreciation		  

Markit CDX North America Investment Grade, Series 9

     0.553%        12/20/17      JPMorgan Chase Bank N.A.     0.201%        USD 1,928,998      $ 29,708      $ —      $ 29,708   
           

 

 

    

 

 

    

 

 

  

 

(a) If the Portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

 

See accompanying notes to financial statements.

 

MIST-28

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

 

(b) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or indices as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
(c) The maximum potential amount of future undiscounted payments that the Portfolio could be required to make under a credit default swap contract would be the notional amount of the contract. These potential amounts would be partially offset by any recovery values of the referenced debt obligation or net amounts received from the settlement purchased protection credit default swap contracts entered into by the Portfolio for the same referenced debt obligation.
(d) If the Portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Portfolio will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(DKK)— Danish Krone
(EUR)— Euro
(GBP)— British Pound
(IDR)— Indonesian Rupiah
(JPY)— Japanese Yen
(LIBOR)— London InterBank Offered Rate
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-29

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1     Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —        $ 7,200,076,490      $ —         $ 7,200,076,490   

Total Corporate Bonds & Notes*

      —          1,021,523,817        —           1,021,523,817   

Total Foreign Government*

      —          425,541,434        —           425,541,434   

Total Mortgage-Backed Securities*

      —          375,899,507        —           375,899,507   

Total Municipals

      —          362,432,857        —           362,432,857   

Total Asset-Backed Securities*

      —          166,171,575        —           166,171,575   

Total Convertible Preferred Stock*

      44,118,300        —          —           44,118,300   

Total Preferred Stock*

      29,457,340        —          —           29,457,340   

Total Floating Rate Loan*

      —          12,673,478        —           12,673,478   
Short-Term Investments          

U.S. Treasury

      —          6,449,755        —           6,449,755   

Commercial Paper

      —          43,773,455        —           43,773,455   

Repurchase Agreements

      —          363,900,000        —           363,900,000   

Total Short-Term Investments

      —          414,123,210        —           414,123,210   

Total Investments

    $ 73,575,640      $ 9,978,442,368      $ —         $ 10,052,018,008   
                                   
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 27,313,824      $ —         $ 27,313,824   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (27,355,111 )      —           (27,355,111 ) 

Total Forward Contracts

    $ —        $ (41,287 )    $ —         $ (41,287 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 83,656      $ —        $ —         $ 83,656   

Futures Contracts (Unrealized Depreciation)

      (30,460,581 )      —          —           (30,460,581 ) 

Total Futures Contracts

    $ (30,376,925 )    $ —        $ —         $ (30,376,925 ) 
Written Options          

Foreign Currency Options Written at Value

    $ —        $ (32,408 )    $ —         $ (32,408 ) 

Inflation Capped Options at Value

      —          (142,605 )      —           (142,605 ) 

Interest Rate Swaptions at Value

      —          (20,327,040 )      —           (20,327,040 ) 

Options on Exchange-Traded Futures Contracts at Value

      (2,022,109 )      —          —           (2,022,109 ) 

Total Written Options

    $ (2,022,109 )    $ (20,502,053 )    $ —         $ (22,524,162 ) 
Centrally Cleared Swap Contracts          

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —        $ 60,100,657      $ —         $ 60,100,657   

Centrally Cleared Swap Contracts (Unrealized Depreciation)

      —          (9,554,262 )      —           (9,554,262 ) 

Total Centrally Cleared Swap Contracts

    $ —        $ 50,546,395      $ —         $ 50,546,395   

 

See accompanying notes to financial statements.

 

MIST-30

Met Investors Series Trust

PIMCO Total Return Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  
OTC Swap Contracts           

OTC Swap Contracts at Value (Assets)

    $ —         $ 2,489,171      $ —         $ 2,489,171   

OTC Swap Contracts at Value (Liabilities)

      —           (4,632,850 )      —           (4,632,850 ) 

Total OTC Swap Contracts

    $ —         $ (2,143,679 )    $ —         $ (2,143,679 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-31

Met Investors Series Trust

PIMCO Total Return Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 10,052,018,008   

Cash denominated in foreign currencies (b)

      2,178,690   

Cash collateral (c)

      19,000   

Swaps at market value (d)

      2,489,171   

Unrealized appreciation on forward foreign currency exchange contracts

      27,313,824   

Receivable for:

   

Investments sold

      274,336,148   

TBA securities sold

      415,850,898   

Fund shares sold

      2,782,276   

Principal paydowns

      141,315   

Interest

      52,529,198   

Variation margin on futures contracts

      135,785   

Swap interest

      347,580   

Miscellaneous assets

      388,305   
  

 

 

  

Total Assets

      10,830,530,198   

Liabilities

   

Due to custodian

      15,608,313   

Payables for:

   

Investments purchased

      50,370,472   

TBA securities purchased

      1,955,118,203   

Fund shares redeemed

      4,319,224   

Cash collateral (e)

      19,626,000   

Options written at value (f)

      22,524,162   

Swaps at market value (g)

      4,632,850   

Unrealized depreciation on forward foreign currency exchange contracts

      27,355,111   

Variation margin on swap contracts

      2,634,633   

Variation margin on futures contracts

      527,274   

Swap interest

      128,070   

Accrued Expenses:

   

Management fees

      3,485,104   

Distribution and service fees

      924,542   

Deferred trustees’ fees

      41,001   

Other expenses

      1,078,206   
  

 

 

  

Total Liabilities

      2,108,373,165   
  

 

 

  

Net Assets

    $ 8,722,157,033   
  

 

 

  

Net Assets Consist of:

   

Paid in surplus

    $ 8,582,935,474   

Undistributed net investment income

      82,105,326   

Accumulated net realized gain

      90,094,734   

Unrealized depreciation on investments, written options contracts, futures contracts, swap contracts and foreign currency transactions

      (32,978,501 ) 
  

 

 

  

Net Assets

    $ 8,722,157,033   
  

 

 

  

Net Assets

   

Class A

    $ 4,287,668,165   

Class B

      4,363,743,578   

Class E

      70,745,290   

Capital Shares Outstanding*

   

Class A

      365,124,770   

Class B

      377,334,621   

Class E

      6,070,397   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.74   

Class B

      11.56   

Class E

      11.65   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $10,094,644,834.
(b) Identified cost of cash denominated in foreign currencies was $2,167,120.
(c) Includes collateral of $7,000 for futures and $12,000 for centrally cleared swaps.
(d) Net premium received on swaps was $1,691,972.
(e) Includes collateral of $15,405,000 for swaps, $2,330,000 for TBAs, $20,000 for repurchase agreements and $1,871,000 for forward foreign currency exchange contracts.
(f) Premiums received on written options were $9,858,146.
(g) Net premium received on swaps was $3,503,814.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends

    $ 2,852,844   

Interest

      109,846,281   
  

 

 

  

Total investment income

      112,699,125   

Expenses

   

Management fees

      22,212,567   

Administration fees

      116,689   

Custodian and accounting fees

      1,100,611   

Distribution and service fees—Class B

      5,682,253   

Distribution and service fees—Class E

      56,852   

Interest expense

      13,202   

Audit and tax services

      54,341   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      251,986   

Insurance

      31,279   

Miscellaneous

      19,922   
  

 

 

  

Total expenses

      29,562,824   
  

 

 

  

Net Investment Income

      83,136,301   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      76,249,921   

Futures contracts

      (6,681,804 ) 

Written options contracts

      5,114,940   

Swap contracts

      (8,976,744 ) 

Foreign currency transactions

      40,238,066   
  

 

 

  

Net realized gain

      105,944,379   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (450,436,176 ) 

Futures contracts

      (29,183,465 ) 

Written options contracts

      (17,264,676 ) 

Swap contracts

      52,026,861   

Foreign currency transactions

      5,038,986   
  

 

 

  

Net change in unrealized depreciation

      (439,818,470 ) 
  

 

 

  

Net realized and unrealized loss

      (333,874,091 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (250,737,790 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-32

Met Investors Series Trust

PIMCO Total Return Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 83,136,301      $ 181,225,028   

Net realized gain

      105,944,379        440,422,097   

Net change in unrealized appreciation (depreciation)

      (439,818,470 )      252,359,066   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (250,737,790 )      874,006,191   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (188,927,907 )      (181,917,260 ) 

Class B

      (187,898,207 )      (143,267,330 ) 

Class E

      (3,143,930 )      (2,677,004 ) 

Net realized capital gains

     

Class A

      (82,935,566 )      0   

Class B

      (87,419,822 )      0   

Class E

      (1,435,014 )      0   
  

 

 

    

 

 

  

Total distributions

      (551,760,446 )      (327,861,594 ) 
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (233,605,556 )      (556,620,100 ) 
  

 

 

    

 

 

  

Total Decrease in net assets

      (1,036,103,792 )      (10,475,503 ) 

Net Assets

     

Beginning of period

      9,758,260,825        9,768,736,328   
  

 

 

    

 

 

  

End of period

    $ 8,722,157,033      $ 9,758,260,825   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 82,105,326      $ 378,939,069   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      13,773,932      $ 174,107,543        29,908,082      $ 373,559,955   

Reinvestments

      22,283,891        271,863,473        14,935,736        181,917,260   

Redemptions

      (63,938,427 )      (820,590,500 )      (84,086,810 )      (1,035,999,462 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (27,880,604 )    $ (374,619,484 )      (39,242,992 )    $ (480,522,247 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      16,375,300      $ 203,165,921        38,290,404      $ 471,586,019   

Reinvestments

      22,904,994        275,318,029        11,929,003        143,267,330   

Redemptions

      (27,475,842 )      (336,357,696 )      (55,470,011 )      (681,527,729 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      11,804,452      $ 142,126,254        (5,250,604 )    $ (66,674,380 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      108,495      $ 1,360,963        471,578      $ 5,845,704   

Reinvestments

      378,113        4,578,944        221,423        2,677,004   

Redemptions

      (572,687 )      (7,052,233 )      (1,443,798 )      (17,946,181 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (86,079 )    $ (1,112,326 )      (750,797 )    $ (9,423,473 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (233,605,556 )      $ (556,620,100 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-33

Met Investors Series Trust

PIMCO Total Return Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 12.86      $ 12.14      $ 12.47       $ 12.02       $ 11.60       $ 12.29   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.12        0.25        0.30         0.28         0.45         0.59   

Net realized and unrealized gain (loss) on investments

      (0.45 )      0.89        0.12         0.71         1.47         (0.51 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.33 )      1.14        0.42         0.99         1.92         0.08   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.55 )      (0.42 )      (0.36 )       (0.47 )       (0.96 )       (0.48 ) 

Distributions from net realized capital gains

      (0.24 )      0.00        (0.39 )       (0.07 )       (0.54 )       (0.29 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.79 )      (0.42 )      (0.75 )       (0.54 )       (1.50 )       (0.77 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.74      $ 12.86      $ 12.14       $ 12.47       $ 12.02       $ 11.60   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (2.80 )(b)      9.56        3.42         8.41         18.39         0.64   

Ratios/Supplemental Data

                

Ratio of expenses to average net assets (%)

      0.51  (d)      0.51        0.51         0.51         0.52         0.52   

Ratio of expenses to average net assets excluding interest expense (%)

      0.51  (d)      0.51        0.51         0.51         0.52         0.52   

Ratio of net investment income to average net assets (%)

      1.91  (d)      1.97        2.47         2.31         3.93         5.00   

Portfolio turnover rate (%)

      147  (b)(e)      424  (e)      516         714         633         800   

Net assets, end of period (in millions)

    $ 4,287.7      $ 5,052.8      $ 5,249.4       $ 5,543.8       $ 4,095.7       $ 2,696.4   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 12.66      $ 11.96      $ 12.30       $ 11.87       $ 11.47       $ 12.17   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.10        0.21        0.27         0.25         0.42         0.55   

Net realized and unrealized gain (loss) on investments

      (0.44 )      0.88        0.11         0.70         1.45         (0.50 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.34 )      1.09        0.38         0.95         1.87         0.05   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.52 )      (0.39 )      (0.33 )       (0.45 )       (0.93 )       (0.46 ) 

Distributions from net realized capital gains

      (0.24 )      0.00        (0.39 )       (0.07 )       (0.54 )       (0.29 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.76 )      (0.39 )      (0.72 )       (0.52 )       (1.47 )       (0.75 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.56      $ 12.66      $ 11.96       $ 12.30       $ 11.87       $ 11.47   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (2.92 )(b)      9.27        3.17         8.17         18.03         0.41   

Ratios/Supplemental Data

                

Ratio of expenses to average net assets (%)

      0.76  (d)      0.76        0.76         0.76         0.77         0.78   

Ratio of expenses to average net assets excluding interest expense (%)

      0.76  (d)      0.76        0.76         0.76         0.77         0.78   

Ratio of net investment income to average net assets (%)

      1.67  (d)      1.72        2.23         2.06         3.64         4.77   

Portfolio turnover rate (%)

      147  (b)(e)      424  (e)      516         714         633         800   

Net assets, end of period (in millions)

    $ 4,363.7      $ 4,626.9      $ 4,436.1       $ 3,958.7       $ 2,849.6       $ 1,353.6   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-34

Met Investors Series Trust

PIMCO Total Return Portfolio

Financial Highlights

 

Selected per share data                                        
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 12.75      $ 12.05      $ 12.37       $ 11.93       $ 11.52       $ 12.21   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.11        0.23        0.28         0.27         0.44         0.57   

Net realized and unrealized gain (loss) on investments

      (0.44 )      0.86        0.13         0.69         1.44         (0.51 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.33 )      1.09        0.41         0.96         1.88         0.06   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.53 )      (0.39 )      (0.34 )       (0.45 )       (0.93 )       (0.46 ) 

Distributions from net realized capital gains

      (0.24 )      0.00        (0.39 )       (0.07 )       (0.54 )       (0.29 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.77 )      (0.39 )      (0.73 )       (0.52 )       (1.47 )       (0.75 ) 
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.65      $ 12.75      $ 12.05       $ 12.37       $ 11.93       $ 11.52   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (c)

      (2.83 )(b)      9.27        3.37         8.24         18.21         0.47   

Ratios/Supplemental Data

                

Ratio of expenses to average net assets (%)

      0.66  (d)      0.66        0.66         0.66         0.67         0.67   

Ratio of expenses to average net assets excluding interest expense (%)

      0.66  (d)      0.66        0.66         0.66         0.67         0.67   

Ratio of net investment income to average net assets (%)

      1.77  (d)      1.82        2.31         2.17         3.82         4.88   

Portfolio turnover rate (%)

      147  (b)(e)      424  (e)      516         714         633         800   

Net assets, end of period (in millions)

    $ 70.7      $ 78.5      $ 83.2       $ 118.5       $ 110.9       $ 88.8   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Periods less than one year are not computed on an annualized basis.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Computed on an annualized basis.
(e) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rate would have been 59% and 183% for the six months ended June 30, 2013 and the year ended December 31, 2012, respectively.

 

See accompanying notes to financial statements.

 

MIST-35

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is PIMCO Total Return Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-36

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

 

MIST-37

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to futures transactions, foreign currency transactions, swap transactions, premium amortization adjustments, paydown transactions, treasury rolls and foreign currency tax expense reclass. These adjustments have no impact on net assets or the results of operations.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Short Sales - The Portfolio may enter into a “short sale” of securities in circumstances in which, at the time the short position is open, the Portfolio owns an equal amount of the securities sold short or owns preferred stocks or debt securities, convertible or exchangeable without payment of further consideration, into an equal number of securities sold short. This kind of short sale, which is referred to as one “against the box,” may be entered into by the Portfolio to, for example, lock in a sale price for a security the Portfolio does not wish to sell immediately.

The Portfolio may also make short sales of a security it does not own, in anticipation of a decline in the market value of that security. To complete such a transaction, the Portfolio must borrow the security to make delivery to the buyer. The Portfolio then is obligated to replace the security borrowed by purchasing it at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold short by the Portfolio. Until the security is replaced, the Portfolio is required to pay to the lender any dividends or interest which accrue during the period of the loan. To borrow the security, the Portfolio also may be required to pay a premium, which would increase the cost of the security sold short. Until the Portfolio replaces a borrowed security, the Portfolio will segregate with its custodian, or set aside in the Portfolio’s records, cash or other liquid assets at such a level that (i) the amount segregated, or set aside, plus the amount deposited with the broker as collateral will equal the current value of the security sold short and (ii) the amount segregated plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time it was sold short. The Portfolio will incur a loss as a result of the short sale if the price of the security increases between the date of the short sale and the date on which the Portfolio replaces the borrowed security. The Portfolio will realize a gain if the security declines in price between those dates. This result is the opposite of what one would expect from a cash purchase of a long position in a security. The amount of any gain will be decreased, and the amount of any loss increased, by the amount of any premium, dividends or interest the Portfolio may be required to pay in connection with a short sale. No more than one third of the Portfolio’s net assets will be, when added together: (i) deposited as collateral for the obligation to replace securities borrowed to effect short sales; and (ii) segregated in connection with short sales.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $363,900,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

 

MIST-38

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Reverse Repurchase Agreements - The Portfolio may enter into reverse repurchase agreements with qualified institutions. In a reverse repurchase agreement, the Portfolio transfers securities in exchange for cash to a financial institution or counterparty, concurrently with an agreement by the Portfolio to reacquire the same securities at an agreed upon price and date. During the reverse repurchase agreement period, the Portfolio continues to receive principal and interest payments on these securities. The Portfolio will establish a segregated account with its custodian in which it will maintain liquid assets equal in value to its obligations in respect of reverse repurchase agreements. Reverse repurchase agreements involve the risk that the market value of the securities transferred by the Portfolio may decline below the agreed upon reacquisition price of the securities. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement entitles the non-defaulting party the right to set-off claims and apply property held by them in respect of any transaction against obligations owing to them. Cash received in exchange for securities transferred under reverse repurchase agreements plus accrued interest payments to be made by the Portfolio to counterparties are reflected as liabilities on the Statement of Assets and Liabilities. For the six months ended June 30, 2013, the Portfolio had an outstanding reverse repurchase agreement balance for 61 days. The average amount of borrowings was $57,297,770 and the weighted average interest rate was 0.40%. At June 30, 2013, the Portfolio had no outstanding reverse repurchase agreements.

Secured Borrowing Transactions - The Portfolio may enter into transactions consisting of a transfer of a security by the Portfolio to a financial institution or counterparty, with a simultaneous agreement to reacquire the same, or substantially the same security, at an agreed upon price and future settlement date. Such transactions are treated as secured borrowings, and not as purchases and sales. The Portfolio receives cash from the transfer of the security to use for other investment purposes. During the period ended June 30, 2013, the Portfolio entered into secured borrowing transactions involving U.S. Treasury and sovereign debt securities. During the term of the borrowing, the Portfolio is not entitled to receive principal and interest payments, if any, made on the security transferred to the counterparty during the term of the agreement. The difference between the transfer price and the reacquisition price, known as the “price drop”, is included in net investment income with the cost of the secured borrowing transaction being recorded in interest expense over the term of the borrowing. The agreed upon proceeds for securities to be reacquired by the Portfolio are reflected as a liability on the Statement of Assets and Liabilities.

For the six months ended June 30, 2013, the Portfolio’s average amount of borrowings was $59,434,391 and the weighted average interest rate was (1.03)%. At June 30, 2013, the Portfolio had no outstanding borrowings. For the six months ended June 30, 2013, the Portfolio had an outstanding secured borrowing transaction balance for 136 days.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells TBA mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. For the duration of the transaction, or roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Secured borrowing transactions and mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to reacquire may be less than the agreed upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the secured borrowing transaction or mortgage dollar roll.

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

TBA Purchase & Forward Sale Commitments - The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. TBA forward sales commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations or an assignment, the Portfolio generally will have no right to enforce compliance by the

 

MIST-39

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

borrower, with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower and the Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment.

Mortgage Related and Other Asset Backed Securities - The Portfolio may invest in mortgage related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

High Yield Debt Securities - The Portfolio may invest in high yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high yield debt securities are less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s Subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and

 

MIST-40

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Options Contracts - An option contract purchased by the Portfolio gives the Portfolio the right, but not the obligation, to buy (call) or sell (put) an underlying instrument at a fixed exercise price during a specified period. Call options written by the Portfolio give the holder the right to buy the underlying instrument from the Portfolio at a fixed exercise price; put options written by the Portfolio give the holder the right to sell the underlying instrument to the Portfolio at a fixed exercise price.

The Portfolio may use options to hedge against changes in values of securities the Portfolio owns or expects to purchase, to maintain exposure to the broad equity markets or to enhance return. Writing puts or buying calls tend to increase the Portfolio’s exposure to the underlying instrument and writing calls or buying puts tend to decrease the Portfolio’s exposure to the underlying instrument, and can be used to hedge other Portfolio investments. For options used to hedge the Portfolio’s investments, the potential risk to the Portfolio is that the change in value of options contracts may not correspond perfectly to the change in value of the hedged instruments. The Portfolio also bears the risk of an unfavorable change in the value of the underlying instrument or the risk that the Portfolio may not be able to enter into a closing transaction due to an illiquid market. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of purchased options is typically the premium initially paid for the option plus any unrealized gains.

The main risk associated with purchasing an option is that the option expires without being exercised. In this case, the option expires worthless and the premium paid for the option is considered a loss. The risk associated with writing a call option is that the Portfolio may forgo the opportunity for a profit if the market value of the underlying instrument increases and the option is exercised, requiring the Portfolio to sell the underlying instrument at a price below its market value. When the Portfolio writes a call option on a security it does not own, its exposure on such an option is theoretically unlimited. The risk in writing a put option is that the Portfolio may incur a loss if the market value of the underlying instrument decreases and the option is exercised, requiring the Portfolio to purchase the underlying instrument at a price above its market value. In addition, the Portfolio risks not being able to enter into a closing transaction for the written option as the result of an illiquid market for the option.

Purchases of put and call options are recorded as investments, the value of which are marked-to-market daily. When a purchased option expires without being exercised, the Portfolio will realize a loss equal to the premium paid. When the Portfolio enters into a closing sale transaction, the Portfolio will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the premium initially paid for the option. When the Portfolio exercises a put option, it will realize a gain or loss from the sale of the underlying instrument and the proceeds from such sale will be decreased by the premium originally paid for the put option. When the Portfolio exercises a call option, the cost of the security which the Portfolio purchases upon exercise will be increased by the premium originally paid for the call option.

The premium received for a written option is recorded as an asset and an equivalent liability. The liability is marked-to-market daily in accordance with the option’s valuation policy. When a written option expires without being exercised or the Portfolio enters into a closing purchase transaction, the Portfolio realizes a gain (or loss if the cost of the closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying instrument and the liability related to such option is eliminated. When a written call option is exercised, the Portfolio realizes a gain or loss, as adjusted for the premium received, from the sale of the underlying instrument. When a written put option is exercised, the premium received is offset against the amount paid for the purchase of the underlying instrument.

The purpose of inflation-capped options is to protect the buyer from inflation, above a specified rate, eroding the value of investments in inflation-linked products with a given notional exposure. Inflation-capped options are used to give downside protection to investments in inflation-linked products by establishing a floor on the value of such products.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the

 

MIST-41

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Credit Default Swaps: The Portfolio is subject to credit risk in the normal course of pursuing its investment objectives. The Portfolio may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and/or sovereign issuers, or to create exposure to corporate and/or sovereign issuers to which it is not otherwise exposed. Credit default swaps involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return if a credit event occurs for the referenced entity, obligation or index. A credit event is defined under the terms of each swap agreement and may include, but is not limited to, underlying entity default, bankruptcy, write-down, principal shortfall or interest shortfall. As the seller of protection, if an underlying credit event occurs, the Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced obligation (or underlying securities comprising the referenced index), or pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). In return, the Portfolio would receive from the counterparty an upfront or periodic stream of payments throughout the life of the credit default swap agreement, provided that no credit event has occurred. As the seller of protection, the Portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, the Portfolio would be subject to investment exposure on the notional amount of the credit default swap.

The Portfolio may also purchase credit default swap contracts in order to hedge against the risk of default of debt securities held in its portfolio. This would involve the risk that the investment may expire worthless and would only generate income in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial instability). It would also involve credit risk, whereby the seller may fail to satisfy its payment obligations to the Portfolio in the event of a default. As the buyer of protection, if an underlying credit event occurs, the Portfolio will either receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation (or underlying securities comprising the referenced index), or receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation (or underlying securities comprising the referenced index). If no credit event occurs and the Portfolio is a buyer of protection, the Portfolio will typically recover nothing under the credit default swap agreement, but it will have had to pay the required upfront payment or stream of continuing payments under the credit default swap agreement. Recovery values are at times established through the credit event auction process in which market participants are ensured that a transparent price has been set for the defaulted obligation.

Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be

 

MIST-42

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

representative of some part of the credit market as a whole. An index credit default swap references all the names in the index, and if there is a credit event, the credit event is settled based on that entities weight in the index. A Portfolio may use credit default swaps on credit indices as a hedge for credit default swaps or bonds held in the portfolio, which is less expensive than it would be to buy many individual credit default swaps to achieve similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and may be used to speculate on changes in credit quality.

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on a credit index or corporate or sovereign issuer serve as some indication of the status of the payment/performance risk and the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity or index also reflects the cost of buying/ selling protection and may reflect upfront payments required to be made to enter into the agreement. Wider credit spreads generally represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the particular swap agreement. When no implied credit spread is available for a credit default swap, the current unrealized appreciation/depreciation on the position may be used as an indicator of the current status of the payment/performance risk.

The maximum potential amount of future payments (undiscounted) that the Portfolio as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of June 30, 2013, for which the Portfolio is the seller of protection, are disclosed in the Schedule of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Portfolio for the same referenced entity or entities.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust the interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contracts remaining life, to the extent that amount is positive.

Centrally Cleared Swaps: Certain clearinghouses currently offer clearing for limited types of derivatives transactions, principally credit derivatives. In a cleared derivative transaction, a Portfolio typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Portfolio’s exposure to the credit risk of the original counterparty. The Portfolio typically will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared derivative transaction. Only a limited number of derivative transactions are currently eligible for clearing.

 

MIST-43

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value     

Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate    Swaps at market value (b)    $ 475,260       Swaps at market value (b)    $ 1,896,289   
   Unrealized appreciation on centrally cleared swaps* (a)      60,100,657       Unrealized depreciation on centrally cleared swaps* (a)      9,554,262   
   Unrealized appreciation on futures contracts** (a)      83,656       Unrealized depreciation on futures contracts** (a)      30,460,581   
         Options written at value (c)      22,491,754   
Credit    Swaps at market value (b)      2,013,911       Swaps at market value (b)      2,736,561   
Foreign Exchange          Options written at value      32,408   
   Unrealized appreciation on forward foreign currency exchange contracts      27,313,824       Unrealized depreciation on forward foreign currency exchange contracts      27,355,111   
     

 

 

        

 

 

  
Total       $ 89,987,308          $ 94,526,966   
     

 

 

        

 

 

  

 

  * Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.
  ** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(d)		     Net Amount  

Barclays Bank plc

    $ 8,193,809       $ (1,753,840 )    $ (5,620,000 )    $ 819,969   

BNP Paribas S.A.

      311,947         (141,336 )      —        170,611   

Citibank N.A.

      1,411,898         (1,411,898 )      —        —   

Credit Suisse International

      406,865         (406,865 )      —        —   

Deutsche Bank AG

      624,883         (624,883 )      —        —   

Goldman Sachs & Co.

      336,762         (336,762 )      —        —   

Goldman Sachs International

      38,150         (8,772 )      —        29,378   

JPMorgan Chase Bank N.A.

      174,025         (174,025 )      —        —   

Morgan Stanley & Co., LLC

      71,019         (71,019 )      —        —   

Morgan Stanley Capital Services, LLC

      140,818         (140,818 )      —        —   

UBS AG

      18,092,819         (8,803,384 )      (6,630,000 )      2,659,435   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 29,802,995       $ (13,873,602 )    $ (12,250,000 )    $ 3,679,393   
  

 

 

     

 

 

    

 

 

    

 

 

  

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged(d)		     Net Amount  

Bank of America N.A.

    $ 72,983       $ —      $ —      $ 72,983   

Barclays Bank plc

      1,753,840         (1,753,840 )      —        —   

BNP Paribas S.A.

      141,336         (141,336 )      —        —   

Citibank N.A.

      3,593,868         (1,411,898 )      (1,894,312 )      287,658   

Credit Suisse International

      1,010,427         (406,865 )      (471,322 )      132,240   

Deutsche Bank AG

      10,622,788         (624,883 )      (9,997,905 )      —   

Goldman Sachs & Co.

      4,921,208         (336,762 )      (4,584,446 )      —   

Goldman Sachs Bank USA

      281,526         —        —        281,526   

Goldman Sachs International

      8,772         (8,772 )      —        —   

JPMorgan Chase Bank N.A.

      1,436,034         (174,025 )      (1,262,009 )      —   

Morgan Stanley & Co., LLC

      7,835,468         (71,019 )      —        7,764,449   

Morgan Stanley Capital Services, LLC

      12,008,380         (140,818 )      (11,790,816 )      76,746   

UBS AG

      8,803,384         (8,803,384 )      —        —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 52,490,014       $ (13,873,602 )    $ (30,000,810 )    $ 8,615,602   
  

 

 

     

 

 

    

 

 

    

 

 

  

 

MIST-44

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Credit     Foreign
Exchange		      Total  

Forward foreign currency transactions

    $ —      $ —      $ 37,118,492       $ 37,118,492   

Futures contracts

      (6,681,804 )      —        —         (6,681,804 ) 

Swap contracts

      (510,660 )      (8,466,084 )      —         (8,976,744 ) 

Written options contracts

      4,978,052        —        136,888         5,114,940   
  

 

 

    

 

 

    

 

 

     

 

 

  
   $ (2,214,412 )    $ (8,466,084 )    $ 37,255,380       $ 26,574,884   
  

 

 

    

 

 

    

 

 

     

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation
(Depreciation)

    Interest Rate     Credit     Foreign
Exchange		      Total  

Forward foreign currency transactions

    $ —      $ —      $ 5,200,460       $ 5,200,460   

Futures contracts

      (29,183,465 )      —        —         (29,183,465 ) 

Swap contracts

      53,004,985        (978,124 )      —         52,026,861   

Written options contracts

      (17,796,648 )      —        531,972         (17,264,676 ) 
  

 

 

    

 

 

    

 

 

     

 

 

  
   $ 6,024,872      $ (978,124 )    $ 5,732,432       $ 10,779,180   
  

 

 

    

 

 

    

 

 

     

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(e)		  

Forward Foreign currency transactions

    $ 2,345,661,608   

Futures contracts long

      3,598,898,844   

Futures contracts short

      21,364,330   

Swap contracts

      3,019,225,089   

Written options contracts

      1,885,596,490   

 

  (a) Financial instrument not subject to a master netting agreement
  (b) Excludes swap interest receivable of $347,580 and swap interest payable of $128,070.
  (c) Includes exchange traded written options with a value of $(2,022,109) not subject to master netting agreement.
  (d) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (e) Averages are based on activity levels during 2013.

Options Written

The Portfolio transactions in options written during the six months December 31, 2012:

 

Call Options

    Notional
Amount		      Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2012

      179,700,000         —       $ 134,775   

Options written

      1,401,200,000         929         2,438,182   

Options expired

      (493,800,000 )       (214 )       (415,190 ) 
  

 

 

     

 

 

     

 

 

  

Options outstanding June 30, 2013

      1,087,100,000         715       $ 2,157,767   
  

 

 

     

 

 

     

 

 

  

Put Options

    Notional
Amount		      Number of
Contracts		      Premium
Received		  

Options outstanding December 31, 2012

      955,300,000         —       $ 5,069,391   

Options written

      2,045,700,000         929         7,330,758   

Options bought back

      (17,700,000 )       (214 )       (199,556 ) 

Options expired

      (1,267,200,000 )       —         (4,500,214 ) 
  

 

 

     

 

 

     

 

 

  

Options outstanding June 30, 2013

      1,716,100,000         715       $ 7,700,379   
  

 

 

     

 

 

     

 

 

  

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The

 

MIST-45

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions and, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases      Sales  
U.S. Government      Non U.S. Government      U.S. Government      Non U.S. Government  
$ 14,442,166,511       $ 1,024,988,438       $ 13,990,433,444       $ 2,395,982,692   

Purchases and sales of mortgage dollar rolls and TBA transactions for the six months ended June 30, 2013 were as follows:

 

Purchases      Sales  
$ 10,030,153,653       $ 10,331,712,950   

 

MIST-46

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Pacific Investment Management Company LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013		    % per annum     Average Daily Net Assets
$22,212,567      0.500 %    First $1.2 billion
     0.475 %    Over $1.2 billion

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

 

MIST-47

Met Investors Series Trust

PIMCO Total Return Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$327,861,594    $ 474,678,208       $ —       $ 128,696,511       $ 327,861,594       $ 603,374,719   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$471,112,292    $ 79,075,874       $ 391,567,256       $ —       $ 941,755,422   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-48

Met Investors Series Trust

Pioneer Fund Portfolio

Managed by Pioneer Investment Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the Pioneer Fund Portfolio returned 13.99% and 13.85%, respectively. The Portfolio’s primary benchmark, the Standard & Poor’s 500 Index1, returned 13.82%.

MARKET ENVIRONMENT / CONDITIONS

First half headlines were dominated by government and central bank actions and announcements more than private sector developments. At year-end, Congress acted to reduce the so-called “fiscal cliff” from an economy-killer to a moderate drag on economic growth; it later largely removed the threat that the debt ceiling would lead to a government shutdown and severe economic and market disruptions. The Fed, meanwhile, continued to pursue very accommodative policies, although it began guiding markets to expect a taper and termination of its quantitative easing (QE) policy.

In April, the Bank of Japan began a significant QE-style program, helping push bond yields down and equity prices up. The news flow from Europe was less investor-friendly, with Italian politics deadlocked, uninsured depositors in failing Cyprus banks suffering significant losses, and the European Central Bank (ECB) taking no steps to ease policy. Finally, the Chinese central bank squeezed liquidity out of its shadow banking system at the end of June, contributing to the late-quarter sell-off.

U.S. economic data released in the first quarter was generally supportive, with inflation well-contained, unemployment falling, house prices rising, and gross domestic product (GDP) growth continuing (The 0.4% headline fourth quarter 2012 GDP growth number was low, depressed by weak government spending and inventory liquidation; without these drags, the private sector grew at an annual pace of 3.75%.). Corporate profits and personal income continued to rise, while foreclosures, bankruptcies, and defaults trended down. The second quarter was also generally supportive, with continuing moderate growth in GDP, employment, personal income, and corporate profits, and very low inflation. The economy remained strong enough that a fourth consecutive “summer soft patch” might have been averted and that the Fed began actively considering reducing QE.

Rising interest rates resulted in negative returns for many bond market indexes, but the S&P 500 Index, our benchmark, followed its 10.6% first quarter return with a 2.9% second-quarter gain, resulting in a first-half return of 13.8%. For the six-month period, the Index’s best-performing sectors were Health Care, Financials, and Consumer Discretionary, each up 20%; the Materials (+3%) and Information Technology (+7%) sectors lagged.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Both security selection and sector weighting decisions added to first-half results. Stock selection added value in six of ten sectors, with selection in the Consumer Staples sector the largest contributor. The largest drags on results were selection in the Consumer Discretionary and Financials sectors. Sector weighting decisions added value in eight of ten sectors; because we keep sector weights close to those of the index, no one decision had a large impact, but the cumulative positive impact of sector weighting decisions was larger than the impact of selection.

Our security selection success in the Consumer Staples sector resulted primarily from our significant investments in food product companies such as Hershey, H.J. Heinz, and General Mills. Each of those stocks returned over 20% in the first half of the year; Heinz was taken private by a group that included Berkshire Hathaway, but only narrowly outperformed Hershey over the six months.

Results in the Consumer Discretionary sector were held back by our limited exposure to advertising-sensitive media names (which outperformed), and our investments in publishers (John Wiley, Pearson), which disappointed.

In the Financials sector, our commercial banks performed well, but our positions in the Capital Markets and Insurance industries tended to be in solid but unspectacular businesses such as asset management and property/casualty insurance; in the first-half bull market they produced solid gains but lagged firms more leveraged to the stock market.

The largest drivers of outperformance in the Energy sector were a position in Cabot Oil & Gas and an underweight of Exxon Mobil. In Health Care, an emphasis on equipment and device companies detracted, but good stock selection in pharmaceuticals and biotech—notably Vertex Pharmaceuticals, which reported very promising phase 2 trial data for its cystic fibrosis treatment—resulted in above-benchmark returns. In the Industrials sector, the drag from a machinery group overweight was offset by good selection within that group and our successful railroad investments. In the Information Technology sector, our underweight of Apple (-25% return in the six months) was a notable differentiator, but we also benefited from 20%+ returns from ADP, Symantec, and Adobe. In the Materials sector, good stock selection in the chemicals industry and avoiding mining names added value. In Telecom Services, a preference for Verizon over AT&T proved correct.

We added 11 new names to the portfolio and eliminated 13 in first half trading. As is typical of our approach, most of the eliminated and new positions were relatively small and the trades were based on relative attractiveness within groups. The largest sector shifts resulting from these trades was a higher exposure to Financials (eliminating our underweight) and a reduced exposure to Telecom Services (larger underweight).

We generally keep sector weights within five percentage points of the S&P 500 to ensure that long-term success is driven by security selection rather than sector rotation decisions. At period end, Health

 

MIST-1

Met Investors Series Trust

Pioneer Fund Portfolio

Managed by Pioneer Investment Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

Care (+2.6%) was the sector most overweighted relative to the index, reflecting our positions in equipment & supplies businesses. These companies are probably somewhat worse off under the Affordable Care Act than before, but we continue to see their global growth opportunities as a more compelling element of the investment thesis. Our next-largest overweight is in Consumer Staples (+1.3%), driven by our food product company exposure.

The most underweighted sectors as of June 30 were Utilities (-2.9%) and Telecom Services (-2.0%). In each case, we believed company valuations simply appeared too expensive relative to companies in other sectors.

John A. Carey

Walter Hunnewell

Portfolio Managers

Pioneer Investment Management, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Pioneer Fund Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE S&P 500 INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year        Since Inception2  
Pioneer Fund Portfolio                           

Class A

        13.99           20.28           5.25           6.71           —   

Class B

        13.85           20.01           —           —           15.42   
S&P 500 Index        13.82           20.60           7.01           7.30           —   

1 The Standard & Poor’s (S&P) 500 Composite Stock Price Index is an unmanaged index representing the performance of 500 major companies, most of which are listed on the New York Stock Exchange.

2 Inception of Class A shares is 2/4/1994. Inception of Class B shares is 4/28/2009.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Hershey Co. (The)      2.5   
Wells Fargo & Co.      2.2   
Microsoft Corp.      2.1   
Colgate-Palmolive Co.      2.0   
Johnson & Johnson      1.8   
PNC Financial Services Group, Inc. (The)      1.7   
Chubb Corp. (The)      1.7   
Apple, Inc.      1.7   
United Technologies Corp.      1.5   
3M Co.      1.5   

Top Sectors

     % of
Market Value of
Total Long-Term Investments		  
Information Technology      17.1   
Financials      16.8   
Health Care      15.4   
Consumer Discretionary      13.6   
Consumer Staples      11.9   
Industrials      11.3   
Energy      9.9   
Materials      2.8   
Telecommunication Services      0.8   
Utilities      0.4   

 

MIST-3

Met Investors Series Trust

Pioneer Fund Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Pioneer Fund Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.65%       $ 1,000.00         $ 1,139.90         $ 3.45   
   Hypothetical*      0.65 %     $ 1,000.00         $ 1,021.57         $ 3.26   

Class B(a)

    Actual      0.90 %     $ 1,000.00         $ 1,138.50         $ 4.77   
   Hypothetical*      0.90 %     $ 1,000.00         $ 1,020.33         $ 4.51   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

Pioneer Fund Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—99.2% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.8%

  

Raytheon Co.

     18,874      $ 1,247,949   

United Technologies Corp.

     72,013        6,692,888   
   

 

 

  
      7,940,837   
   

 

 

  

Air Freight & Logistics—0.5%

  

United Parcel Service, Inc. - Class B

     24,203        2,093,075   
   

 

 

  

Auto Components—1.1%

  

BorgWarner, Inc. (a)

     22,907        1,973,438   

Johnson Controls, Inc.

     80,228        2,871,360   
   

 

 

  
      4,844,798   
   

 

 

  

Automobiles—1.2%

  

Ford Motor Co.

     348,165        5,386,113   
   

 

 

  

Beverages—1.0%

  

Coca-Cola Enterprises, Inc.

     30,928        1,087,428   

Dr. Pepper Snapple Group, Inc.

     31,604        1,451,572   

PepsiCo, Inc.

     20,145        1,647,660   
   

 

 

  
      4,186,660   
   

 

 

  

Biotechnology—2.0%

  

Amgen, Inc.

     43,771        4,318,447   

Celgene Corp. (a)

     18,971        2,217,899   

Gilead Sciences, Inc. (a)

     39,670        2,031,501   
   

 

 

  
      8,567,847   
   

 

 

  

Capital Markets—2.6%

  

Franklin Resources, Inc.

     23,227        3,159,337   

Goldman Sachs Group, Inc. (The)

     10,652        1,611,115   

Invesco, Ltd.

     64,418        2,048,492   

T. Rowe Price Group, Inc.

     59,727        4,369,030   
   

 

 

  
      11,187,974   
   

 

 

  

Chemicals—2.6%

  

Airgas, Inc.

     37,152        3,546,530   

Ecolab, Inc.

     47,299        4,029,402   

Monsanto Co.

     17,104        1,689,875   

Mosaic Co. (The)

     35,768        1,924,676   
   

 

 

  
      11,190,483   
   

 

 

  

Commercial Banks—6.5%

  

Canadian Imperial Bank of Commerce (b)

     20,107        1,427,195   

KeyCorp

     406,500        4,487,760   

PNC Financial Services Group, Inc. (The)

     103,370        7,537,741   

U.S. Bancorp.

     147,469        5,331,004   

Wells Fargo & Co.

     229,779        9,482,979   
   

 

 

  
      28,266,679   
   

 

 

  

Communications Equipment—1.3%

  

Cisco Systems, Inc.

     142,126        3,455,083   

F5 Networks, Inc. (a)

     11,364        781,843   

Motorola Solutions, Inc.

     26,057        1,504,271   

Palo Alto Networks, Inc. (a) (b)

     305        12,859   
   

 

 

  
      5,754,056   
   

 

 

  

Computers & Peripherals—2.1%

  

Apple, Inc.

     18,758      $ 7,429,669   

EMC Corp.

     66,095        1,561,164   
   

 

 

  
      8,990,833   
   

 

 

  

Construction & Engineering—0.6%

  

KBR, Inc.

     81,505        2,648,913   
   

 

 

  

Consumer Finance—1.4%

  

American Express Co.

     35,964        2,688,668   

Discover Financial Services

     68,870        3,280,967   
   

 

 

  
      5,969,635   
   

 

 

  

Diversified Financial Services—3.0%

  

Bank of America Corp.

     190,594        2,451,039   

Citigroup, Inc.

     121,476        5,827,204   

JPMorgan Chase & Co.

     85,470        4,511,961   
   

 

 

  
      12,790,204   
   

 

 

  

Diversified Telecommunication Services—0.8%

  

Verizon Communications, Inc.

     69,665        3,506,936   
   

 

 

  

Electric Utilities—0.4%

  

American Electric Power Co., Inc.

     37,873        1,695,953   
   

 

 

  

Electrical Equipment—0.3%

  

Rockwell Automation, Inc.

     14,944        1,242,444   
   

 

 

  

Energy Equipment & Services—2.8%

  

Cameron International Corp. (a)

     17,175        1,050,423   

Ensco plc - Class A

     53,408        3,104,073   

FMC Technologies, Inc. (a)

     15,329        853,519   

Halliburton Co.

     33,831        1,411,429   

Helmerich & Payne, Inc. (b)

     14,414        900,154   

National Oilwell Varco, Inc.

     28,969        1,995,964   

Schlumberger, Ltd.

     41,107        2,945,728   
   

 

 

  
      12,261,290   
   

 

 

  

Food & Staples Retailing—2.6%

  

CVS Caremark Corp.

     64,549        3,690,912   

Wal-Mart Stores, Inc.

     19,975        1,487,937   

Walgreen Co.

     133,799        5,913,916   
   

 

 

  
      11,092,765   
   

 

 

  

Food Products—4.9%

  

Campbell Soup Co. (b)

     45,234        2,026,031   

General Mills, Inc.

     69,479        3,371,816   

Hershey Co. (The)

     122,159        10,906,356   

Kraft Foods Group, Inc.

     34,839        1,946,455   

Mondelez International, Inc. - Class A

     104,516        2,981,841   
   

 

 

  
      21,232,499   
   

 

 

  

Health Care Equipment & Supplies—5.3%

  

Abbott Laboratories

     98,381        3,431,529   

Baxter International, Inc.

     40,180        2,783,269   

Becton Dickinson & Co.

     46,532        4,598,758   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Pioneer Fund Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Health Care Equipment & Supplies—(Continued)

  

C.R. Bard, Inc.

     58,475      $ 6,355,063   

Covidien plc

     55,595        3,493,590   

Smith & Nephew plc

     8,733        97,327   

Smith & Nephew plc (ADR) (b)

     38,402        2,153,968   
   

 

 

  
      22,913,504   
   

 

 

  

Health Care Providers & Services—1.4%

  

Aetna, Inc.

     40,202        2,554,435   

Cardinal Health, Inc.

     13,637        643,667   

DaVita HealthCare Partners, Inc. (a)

     14,369        1,735,775   

Express Scripts Holding Co. (a)

     16,810        1,037,009   
   

 

 

  
      5,970,886   
   

 

 

  

Hotels, Restaurants & Leisure—1.5%

  

McDonald’s Corp.

     38,293        3,791,007   

Starbucks Corp.

     42,338        2,772,716   
   

 

 

  
      6,563,723   
   

 

 

  

Household Products—3.3%

  

Clorox Co. (The) (b)

     18,310        1,522,293   

Colgate-Palmolive Co.

     153,264        8,780,495   

Procter & Gamble Co. (The)

     54,416        4,189,488   
   

 

 

  
      14,492,276   
   

 

 

  

Industrial Conglomerates—2.7%

  

3M Co.

     58,768        6,426,281   

General Electric Co.

     221,466        5,135,796   
   

 

 

  
      11,562,077   
   

 

 

  

Insurance—3.2%

  

Aflac, Inc.

     57,098        3,318,535   

Chubb Corp. (The)

     88,132        7,460,374   

Travelers Cos., Inc. (The)

     38,290        3,060,137   
   

 

 

  
      13,839,046   
   

 

 

  

Internet Software & Services—1.9%

  

eBay, Inc. (a)

     53,470        2,765,468   

Facebook, Inc. - Class A (a)

     58,154        1,445,708   

Google, Inc. - Class A (a)

     4,496        3,958,144   
   

 

 

  
      8,169,320   
   

 

 

  

IT Services—4.2%

  

Automatic Data Processing, Inc.

     72,705        5,006,466   

DST Systems, Inc.

     30,659        2,002,953   

Fiserv, Inc. (a)

     30,031        2,625,010   

International Business Machines Corp.

     24,222        4,629,066   

Mastercard, Inc. - Class A

     3,208        1,842,996   

Visa, Inc. - Class A

     10,809        1,975,345   
   

 

 

  
      18,081,836   
   

 

 

  

Life Sciences Tools & Services—0.5%

  

Thermo Fisher Scientific, Inc. (b)

     24,741        2,093,831   
   

 

 

  

Machinery—3.5%

  

Cummins, Inc.

     30,448      $ 3,302,390   

Ingersoll-Rand plc

     74,659        4,145,068   

Joy Global, Inc. (b)

     27,714        1,344,960   

PACCAR, Inc.

     71,397        3,831,163   

SPX Corp.

     33,396        2,403,844   
   

 

 

  
      15,027,425   
   

 

 

  

Media—4.3%

  

Comcast Corp. - Class A

     29,445        1,233,157   

John Wiley & Sons, Inc. - Class A (b)

     96,119        3,853,411   

Pearson plc

     150,962        2,680,438   

Scripps Networks Interactive, Inc. - Class A

     48,817        3,259,023   

Time Warner, Inc.

     25,387        1,467,876   

Walt Disney Co. (The)

     97,894        6,182,006   
   

 

 

  
      18,675,911   
   

 

 

  

Multiline Retail—2.3%

  

Macy’s, Inc.

     69,766        3,348,768   

Nordstrom, Inc.

     39,395        2,361,336   

Target Corp.

     62,479        4,302,304   
   

 

 

  
      10,012,408   
   

 

 

  

Oil, Gas & Consumable Fuels—6.9%

  

Apache Corp.

     42,063        3,526,141   

Cabot Oil & Gas Corp.

     63,516        4,510,906   

Chevron Corp.

     51,914        6,143,503   

ConocoPhillips

     63,315        3,830,557   

Marathon Oil Corp.

     90,208        3,119,393   

Marathon Petroleum Corp.

     39,376        2,798,059   

Occidental Petroleum Corp.

     12,411        1,107,433   

Phillips 66

     37,611        2,215,664   

Southwestern Energy Co. (a)

     76,905        2,809,340   
   

 

 

  
      30,060,996   
   

 

 

  

Paper & Forest Products—0.2%

  

International Paper Co.

     17,614        780,476   
   

 

 

  

Pharmaceuticals—6.2%

  

AbbVie, Inc.

     98,380        4,067,029   

Actavis, Inc. (a)

     21,557        2,720,925   

Eli Lilly & Co.

     40,012        1,965,390   

Johnson & Johnson

     88,923        7,634,929   

Merck & Co., Inc.

     48,392        2,247,808   

Pfizer, Inc.

     177,228        4,964,156   

Zoetis, Inc.

     103,468        3,196,112   
   

 

 

  
      26,796,349   
   

 

 

  

Road & Rail—1.8%

  

Norfolk Southern Corp.

     55,127        4,004,976   

Union Pacific Corp.

     25,221        3,891,096   
   

 

 

  
      7,896,072   
   

 

 

  

Semiconductors & Semiconductor Equipment—3.1%

  

Analog Devices, Inc.

     116,140        5,233,268   

ASML Holding NV

     28,188        2,229,671   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Pioneer Fund Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description       
Shares		     Value  

Semiconductors & Semiconductor Equipment—(Continued)

  

Intel Corp.

     71,162      $ 1,723,544   

Maxim Integrated Products, Inc.

     41,998        1,166,704   

Xilinx, Inc.

     77,098        3,053,852   
   

 

 

  
      13,407,039   
   

 

 

  

Software—4.4%

  

Adobe Systems, Inc. (a)

     68,986        3,143,002   

Microsoft Corp.

     265,885        9,181,009   

Nuance Communications, Inc. (a) (b)

     37,495        689,158   

Oracle Corp.

     121,949        3,746,274   

Symantec Corp.

     109,849        2,468,307   
   

 

 

  
      19,227,750   
   

 

 

  

Specialty Retail—2.4%

  

Home Depot, Inc. (The)

     23,533        1,823,101   

Lowe’s Cos., Inc.

     35,284        1,443,116   

Ross Stores, Inc.

     49,308        3,195,651   

TJX Cos., Inc.

     79,360        3,972,762   
   

 

 

  
      10,434,630   
   

 

 

  

Textiles, Apparel & Luxury Goods—0.6%

  

Coach, Inc.

     45,870        2,618,718   
   

 

 

  

Total Common Stocks
(Cost $351,392,908)

       429,474,267   
   

 

 

  
Short-Term Investments—4.5%   

Mutual Fund—3.7%

  

State Street Navigator Securities Lending MET Portfolio (c)

     16,177,255        16,177,255   
   

 

 

  
Security Description   Principal
Amount*		     Value  

Repurchase Agreement—0.8%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $3,483,003 on 07/01/13, collateralized by $3,635,000 Federal National Mortgage Association at 0.875% due 10/26/17 with a value of $3,553,213.

     3,483,000      $ 3,483,000   
   

 

 

  

Total Short-Term Investments
(Cost $19,660,255)

       19,660,255   
   

 

 

  

Total Investments—103.7%
(Cost $371,053,163) (d)

       449,134,522   

Other assets and liabilities (net)—(3.7)%

       (16,229,468 ) 
   

 

 

  
Net Assets—100.0%     $ 432,905,054   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $15,700,331 and the collateral received consisted of cash in the amount of $16,177,255. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) As of June 30, 2013, the aggregate cost of investments was $371,053,163. The aggregate unrealized appreciation and depreciation of investments were $84,026,278 and $(5,944,919), respectively, resulting in net unrealized appreciation of $78,081,359.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Pioneer Fund Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 7,940,837       $ —         $ —         $ 7,940,837   

Air Freight & Logistics

      2,093,075         —           —           2,093,075   

Auto Components

      4,844,798         —           —           4,844,798   

Automobiles

      5,386,113         —           —           5,386,113   

Beverages

      4,186,660         —           —           4,186,660   

Biotechnology

      8,567,847         —           —           8,567,847   

Capital Markets

      11,187,974         —           —           11,187,974   

Chemicals

      11,190,483         —           —           11,190,483   

Commercial Banks

      28,266,679         —           —           28,266,679   

Communications Equipment

      5,754,056         —           —           5,754,056   

Computers & Peripherals

      8,990,833         —           —           8,990,833   

Construction & Engineering

      2,648,913         —           —           2,648,913   

Consumer Finance

      5,969,635         —           —           5,969,635   

Diversified Financial Services

      12,790,204         —           —           12,790,204   

Diversified Telecommunication Services

      3,506,936         —           —           3,506,936   

Electric Utilities

      1,695,953         —           —           1,695,953   

Electrical Equipment

      1,242,444         —           —           1,242,444   

Energy Equipment & Services

      12,261,290         —           —           12,261,290   

Food & Staples Retailing

      11,092,765         —           —           11,092,765   

Food Products

      21,232,499         —           —           21,232,499   

Health Care Equipment & Supplies

      22,816,177         97,327         —           22,913,504   

Health Care Providers & Services

      5,970,886         —           —           5,970,886   

Hotels, Restaurants & Leisure

      6,563,723         —           —           6,563,723   

Household Products

      14,492,276         —           —           14,492,276   

Industrial Conglomerates

      11,562,077         —           —           11,562,077   

Insurance

      13,839,046         —           —           13,839,046   

Internet Software & Services

      8,169,320         —           —           8,169,320   

IT Services

      18,081,836         —           —           18,081,836   

Life Sciences Tools & Services

      2,093,831         —           —           2,093,831   

Machinery

      15,027,425         —           —           15,027,425   

Media

      15,995,473         2,680,438         —           18,675,911   

Multiline Retail

      10,012,408         —           —           10,012,408   

Oil, Gas & Consumable Fuels

      30,060,996         —           —           30,060,996   

Paper & Forest Products

      780,476         —           —           780,476   

Pharmaceuticals

      26,796,349         —           —           26,796,349   

Road & Rail

      7,896,072         —           —           7,896,072   

Semiconductors & Semiconductor Equipment

      13,407,039         —           —           13,407,039   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Pioneer Fund Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  

Software

    $ 19,227,750       $ —        $ —         $ 19,227,750   

Specialty Retail

      10,434,630         —          —           10,434,630   

Textiles, Apparel & Luxury Goods

      2,618,718         —          —           2,618,718   

Total Common Stocks

      426,696,502         2,777,765        —           429,474,267   
Short-Term Investments           

Mutual Fund

      16,177,255         —          —           16,177,255   

Repurchase Agreement

      —           3,483,000        —           3,483,000   

Total Short-Term Investments

      16,177,255         3,483,000        —           19,660,255   

Total Investments

    $ 442,873,757       $ 6,260,765      $ —         $ 449,134,522   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (16,177,255 )    $ —         $ (16,177,255 ) 

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Pioneer Fund Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 449,134,522   

Cash

      809   

Receivable for:

   

Fund shares sold

      144,328   

Dividends and interest

      404,899   
  

 

 

  

Total Assets

      449,684,558   

Liabilities

   

Payables for:

   

Fund shares redeemed

      201,171   

Collateral for securities loaned

      16,177,255   

Accrued expenses:

   

Management fees

      224,665   

Distribution and service fees

      12,799   

Deferred trustees’ fees

      42,499   

Other expenses

      121,115   
  

 

 

  

Total Liabilities

      16,779,504   
  

 

 

  

Net Assets

    $ 432,905,054   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 220,678,653   

Undistributed net investment income

      4,961,241   

Accumulated net realized gain

      129,183,873   

Unrealized appreciation on investments and foreign currency transactions

      78,081,287   
  

 

 

  

Net Assets

    $ 432,905,054   
  

 

 

  

Net Assets

   

Class A

    $ 372,045,653   

Class B

      60,859,401   

Capital Shares Outstanding*

   

Class A

      23,237,748   

Class B

      3,834,501   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 16.01   

Class B

      15.87   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $371,053,163.
(b) Includes securities loaned at value of $15,700,331.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 7,519,321   

Interest

      168   

Securities lending income

      52,985   
  

 

 

  

Total investment income

      7,572,474   

Expenses

   

Management fees

      2,434,101   

Administration fees

      9,725   

Custodian and accounting fees

      36,775   

Distribution and service fees—Class B

      76,310   

Audit and tax services

      19,519   

Legal

      9,656   

Trustees’ fees and expenses

      13,494   

Shareholder reporting

      39,045   

Insurance

      2,984   

Miscellaneous

      4,955   
  

 

 

  

Total expenses

      2,646,564   

Less management fee waiver

      (130,252 ) 

Less broker commission recapture

      (14,412 ) 
  

 

 

  

Net expenses

      2,501,900   
  

 

 

  

Net Investment Income

      5,070,574   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      182,512,557   

Futures contracts

      (2,869,775 ) 

Foreign currency transactions

      9,501   
  

 

 

  

Net realized gain

      179,652,283   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (69,880,555 ) 

Foreign currency transactions

      56   
  

 

 

  

Net change in unrealized depreciation

      (69,880,499 ) 
  

 

 

  

Net realized and unrealized gain

      109,771,784   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 114,842,358   
  

 

 

  

 

(a) Net of foreign withholding taxes of $12,177.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Pioneer Fund Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 5,070,574      $ 14,437,421   

Net realized gain

      179,652,283        76,275,263   

Net change in unrealized depreciation

      (69,880,499 )      (468,095 ) 
  

 

 

    

 

 

  

Increase in net assets from operations

      114,842,358        90,244,589   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (12,370,049 )      (12,927,505 ) 

Class B

      (1,961,396 )      (838,262 ) 
  

 

 

    

 

 

  

Total distributions

      (14,331,445 )      (13,765,767 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      (599,773,814 )      5,062,331   
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (499,262,901 )      81,541,153   

Net Assets

     

Beginning of period

      932,167,955        850,626,802   
  

 

 

    

 

 

  

End of period

    $ 432,905,054      $ 932,167,955   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 4,961,241      $ 14,222,112   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      1,003,129      $ 15,839,229        4,459,637      $ 62,805,401   

Reinvestments

      806,392        12,370,049        916,195        12,927,505   

Redemptions

      (38,773,497 )      (625,882,398 )      (4,292,733 )      (60,917,428 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (36,963,976 )    $ (597,673,120 )      1,083,099      $ 14,815,478   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      279,665      $ 4,393,568        620,404      $ 8,640,383   

Reinvestments

      128,954        1,961,396        59,876        838,262   

Redemptions

      (538,508 )      (8,455,658 )      (1,373,558 )      (19,231,792 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (129,889 )    $ (2,100,694 )      (693,278 )    $ (9,753,147 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ (599,773,814 )      $ 5,062,331   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Pioneer Fund Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 14.54      $ 13.35       $ 14.15       $ 12.28       $ 10.13       $ 15.23   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.11        0.23         0.22         0.18         0.18         0.21   

Net realized and unrealized gain (loss) on investments

      1.90        1.18         (0.85 )       1.80         2.17         (5.17 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      2.01        1.41         (0.63 )       1.98         2.35         (4.96 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.54 )      (0.22 )       (0.17 )       (0.11 )       (0.20 )       (0.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.54 )      (0.22 )       (0.17 )       (0.11 )       (0.20 )       (0.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 16.01      $ 14.54       $ 13.35       $ 14.15       $ 12.28       $ 10.13   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      13.99  (c)      10.59         (4.55 )       16.22         23.89         (32.84 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.68  (d)      0.68         0.69         0.69         0.74         1.04   

Net ratio of expenses to average net assets (%) (e)

      0.65  (d)      0.66         0.68         0.67         0.72         0.96   

Ratio of net investment income to average net assets (%)

      1.36  (d)      1.60         1.56         1.46         1.63         1.61   

Portfolio turnover rate (%)

      7  (c)      49         20         10         41         14   

Net assets, end of period (in millions)

    $ 372.0      $ 875.1       $ 789.0       $ 938.0       $ 717.0       $ 39.9   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009(f)  

Net Asset Value, Beginning of Period

    $ 14.40      $ 13.22       $ 14.04       $ 12.20       $ 9.29   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

              

Net investment income (a)

      0.09        0.19         0.19         0.15         0.10   

Net realized and unrealized gain (loss) on investments

      1.88        1.18         (0.86 )       1.79         2.81   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.97        1.37         (0.67 )       1.94         2.91   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

              

Distributions from net investment income

      (0.50 )      (0.19 )       (0.15 )       (0.10 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.50 )      (0.19 )       (0.15 )       (0.10 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 15.87      $ 14.40       $ 13.22       $ 14.04       $ 12.20   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      13.85  (c)      10.38         (4.87 )       15.93         31.32  (c) 

Ratios/Supplemental Data

              

Gross ratio of expenses to average net assets (%)

      0.93  (d)      0.93         0.94         0.94         0.99  (d) 

Net ratio of expenses to average net assets (%) (e)

      0.90  (d)      0.91         0.93         0.92         0.97  (d) 

Ratio of net investment income to average net assets (%)

      1.14  (d)      1.34         1.37         1.20         1.34  (d) 

Portfolio turnover rate (%)

      7  (c)      49         20         10         41   

Net assets, end of period (in millions)

    $ 60.9      $ 57.1       $ 61.6       $ 32.6       $ 22.3   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(f) Commencement of operations was April 28, 2009.

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Pioneer Fund Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-13

Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-14

Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to broker commission recapture, foreign currency transactions and return of capital adjustments. These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $3,483,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

 

MIST-15

Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

During the six months ended June 30, 2013, the Portfolio entered into equity index futures contracts which were subject to equity price risk. During the period April 12 through April 16, 2013, the Portfolio had bought and sold $367,744,585 in equity index futures contracts. At June 30, 2013, the Portfolio did not have any open futures contracts. For the six months ended June 30, 2013, the Portfolio had realized loss in the amount of $(2,869,775) which are shown under Net realized loss on futures contracts in the Statement of Operations.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

 

MIST-16

Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 54,419,720       $ 0       $ 658,239,899   

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $206,647,121 in sales of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Pioneer Investment Management, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management Fees
earned by the Adviser
for the six months
ended June 30, 2013

    % per annum     Average Daily Net Assets
$2,434,101      0.700 %    First $200 million
     0.650 %    $200 million to $500 million
     0.600 %    $500 million to $2 billion
     0.550 %    Over $2 billion

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.075%    First $200 million
0.025%    $200 million to $400 million
0.050%    $400 million to $500 million
0.050%    $900 million to $2 billion

An identical agreement was in place for the period November 1, 2012 through April 28, 2013. Amounts waived, if applicable, for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

 

MIST-17

Met Investors Series Trust

Pioneer Fund Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$13,765,767    $ 12,012,131       $ —       $ —       $ 13,765,767       $ 12,012,131   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$14,261,231    $ —       $ 146,025,328       $ (48,531,952 )    $ 111,754,607   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards and expiration dates were as follows:

 

Expiring
12/31/2016

    Expiring
12/31/2017		      Total  
$4,263,176*    $ 44,268,776       $ 48,531,952   

 

* The Portfolio acquired capital losses in the merger with Capital Guardian U.S. Equity Portfolio, a series of Metropolitan Series Fund, on May 1, 2009.

 

MIST-18

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Managed by Pioneer Investment Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and E shares of the Pioneer Strategic Income Portfolio returned -0.73% and -0.79%. The Portfolio’s benchmark, the Barclays U.S. Universal Index1, returned -2.29%.

MARKET ENVIRONMENT / CONDITIONS

Central banks took center stage in the first half of 2013. Over the first four months of the year, Japan’s decision to engage in a massive $1.4 trillion quantitative easing, along with liquidity provided by other central banks globally and positive U.S. economic data, buoyed demand in fixed income and equity markets, particularly for higher yielding, riskier assets. That upward market momentum came to a dramatic halt with Federal Reserve (“Fed”) Chairman Ben Bernanke’s May 22 and June 19 statements regarding the potential tapering of Quantitative Easing (QE3), the $85 billion monthly Treasury and Agency mortgage-backed security (MBS) purchase program, later in the year. The Fed reasoned that improving U.S. economic data—evidenced by job growth, higher consumer confidence, and strong performance of the housing market—may justify a reduction in purchases. In the second quarter, U.S. fixed income markets, as measured by the Barclays Aggregate Bond Index, suffered their third worst quarterly sell-off over the past twenty years; bond investors made record redemptions in June across a broad range of fixed income asset classes.

Over the six month period ended June 30, 2013, 10-year U.S. Treasury yields rose from 1.75% to 2.61% near the end of June, finally settling at 2.48% at quarter end, while 30-year yields rose from 2.92% to 3.50%. Agency MBS returned -2.01%, for a -0.51% excess return, as spreads (measured by the Barclays U.S. MBS Index) widened from 52 basis points (bps) to 60 bps, on concerns about rising prepayment risk, as well as reduced purchases by the Fed. Investment Grade Corporates returned -3.41%, for a -0.27% excess return, with Financials outperforming significantly: they returned -1.93%, for a 0.35% excess return. Financials benefited from rising capital ratios and reduced non-performing loans and charge-offs. Municipals fell 2.69%, selling off with Treasuries. High Yield Corporates returned 1.50%, for an excess return of 3.25%, as spreads (measured by the Bank of America Merrill Lynch High Yield Master II Index) narrowed from 534 bps to 521 bps. High Yield benefited from demand for yield in the first quarter, as well as strong fundamentals. Floating rate assets held up well, particularly in the second quarter: Bank Loans returned 2.40%, Non-Agency MBS/ABS (Asset-Backed Securities), as measured by the Floating Rate Non-Agency ABS Index, returned 3.94%; and Event-Linked (Catastrophe) Bonds returned a very impressive 5.24%, as demand for the less correlated asset class soared. Convertible Bonds posted very strong performance, returning 9.49%, benefiting from the superior 13.83% performance of U.S. Equities, as measured by the S&P 500 Index. Emerging Market Bonds and currencies faced a more challenging environment from rising U.S. interest rates in the second quarter, weaker growth in China, and falling commodity prices. More interest rate-sensitive Emerging Market Sovereigns plunged 7.57% over the period; Emerging Market Corporates declined 1.48% in local currency terms, while riskier Emerging Market Corporates gained 0.50%, on a U.S. Dollar basis. The U.S. dollar outperformed all major currencies except the Chinese renminbi, benefiting from an improving economic outlook as well as rising U.S. interest rates. The dollar outperformed the Japanese yen by 14.28% and the euro by 1.41%.

PORTFOLIO REVIEW / PERIOD END POSITIONING

Sector allocation and short duration positioning drove outperformance, while lower relative quality also contributed. Sector allocation contributed 109 bps, which included the benefit of a 5.6% overweight to Convertibles, which added 35 bps; an 11.3% exposure to Bank Loans, which contributed 20 bps; a 6.5% allocation to Non-Agency MBS, which added 12 bps; a 2.7% exposure to Event-Linked Bonds, which contributed 11 bps; and a 1.5% allocation to Preferred Stock, which added 8 bps. Short duration positioning of approximately one year added 97 bps, as intermediate and long-term interest rates rose approximately 1%. This contribution was slightly offset by the -17 bps impact from yield curve positioning. Lower relative quality added 47 bps, including 32 bps from Industrials, 10 bps from Financials and 6 bps from ABS.

The most significant detractor to performance was non-dollar currency exposure, which hurt by 42 bps, as the U.S. dollar rallied against most currencies. The 1.3% position in the Norwegian krone accounted for 12 bps of the underperformance; the currency sold off in June in response to higher U.S. interest rates, a dovish Norwegian central bank stance, and somewhat weaker employment and export numbers. At period end, we continued to believe the krone offers attractive value, given the strong fundamentals of the Norwegian economy. In addition, the Turkish lira (-5 bps), Russian ruble (-4 bps) and Canadian dollar (-4 bps) hurt performance. Security selection underperformed by approximately 6 bps. Financials bonds had strong performance, adding 22 bps; ABS and Utilities bonds also outperformed, with each contributing 5 bps. Industrials bonds suffered significant underperformance, however, detracting by 42 bps, with Mexican homebuilders accounting for 12 bps of this total.

During the period, the Portfolio used Treasury futures to help establish duration and yield curve positioning. The Portfolio held short positions in 2-Year, 5-Year, and 10-Year Treasury futures, and long futures positions in the 30-Year and Ultra Long Term Bond futures. The impact of these positions on performance was a net benefit of approximately 25 bps.

Currency forwards were used primarily to hedge non-dollar exposure: long forwards averaged 1.76% of market value and short forwards average -2.80% of market value over the period. Given that the U.S. dollar outperformed most currencies over the period, the long non-dollar positions generally hurt performance, while the short non-dollar positions helped performance.

 

MIST-1

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Managed by Pioneer Investment Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

At period end, we continued to maintain our long-term view of relative value which favors Corporates over Developed Market Sovereigns. With the recent back-up in yields and spreads, both Investment Grade and High Yield Corporates became more attractive, in light of continued strong fundamentals and low default risk. Steady global economic growth and easy global monetary policy may continue to support credit assets including Corporate Bonds. Although revenue growth softened, we believed U.S. companies may continue to enjoy strong margins and balance sheets. High Yield and Bank Loan spread levels stand somewhat below long-term averages, while projected defaults remain well below long-term averages. With the increased potential for rising interest rates, however, we reduced our exposure to certain Emerging Market Currencies. While we believe in the long term attractiveness of Emerging Markets, with their higher growth rates, low debt levels, young labor forces and rising middle class, we have become more selective, in light of the less compelling yield advantage over U.S. assets, stronger U.S. growth, weaker growth in China, and declining commodity prices. We continued to maintain our exposure to Convertibles, given our preference for Equities over Fixed Income. Finally, we continued to hold Municipals as a more attractive proxy for long Treasuries, particularly in light of their current higher relative yields.

We have positioned the Portfolio for a rising interest rate environment, with a 21% exposure to floating rate assets, including Bank Loans, Non-Agency MBS/ABS and Event-Linked Bonds; significant underweights to U.S. Treasuries and Agency MBS, the most U.S. interest rate-sensitive assets; and overweights to wider spread, higher yielding asset classes including High Yield and Non-Agency MBS/ABS. With respect to duration and yield curve positioning, the Portfolio holds a one year short duration relative to the benchmark, as well as an underweight to the short and intermediate part of the yield curve, which we believe is most vulnerable to a sell-off, when the market prices in a tightening of monetary policy.

Ken Taubes

Andrew Feltus

Charles Melchreit

Portfolio Managers

Pioneer Investment Management, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Pioneer Strategic Income Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. UNIVERSAL INDEX

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year        Since Inception2  
Pioneer Strategic Income Portfolio                           

Class A

        -0.73           5.46           8.50           7.86           —   

Class E

        -0.79           5.35           8.34           —           8.04   
Barclays U.S. Universal Index        -2.29           0.24           5.53           4.84           —   

1 The Barclays U.S. Universal Index represents the union of the U.S. Aggregate Bond Index, U.S. Corporate High Yield Index, Investment Grade 144A Index, Eurodollar Index, U.S. Emerging Markets Index, and the non-ERISA eligible portion of the CMBS Index. The index covers USD-denominated, taxable bonds that are rated either investment grade or high-yield.

2 Inception of Class A shares is 6/16/1994. Inception of the Class E shares is 4/28/2008.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

     % of
Net Assets		  
U.S. Treasury Bonds      2.2   
Mexican Bonos      1.0   
Fannie Mae 30 Yr. Pool      0.9   
FREMF Mortgage Trust      0.9   
PNC Financial Services Group, Inc.      0.7   
Canada Housing Trust No. 1      0.7   
Norwegian Government Bonds      0.6   
JPMorgan Chase & Co.      0.6   
Wells Fargo & Co.      0.6   
Morgan Stanley      0.6   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Corporate Bonds & Notes      46.9   
Floating Rate Loans      11.0   
Mortgage-Backed Securities      10.5   
Foreign Government      7.5   
Municipals      6.3   
U.S. Treasury & Government Agencies      5.7   
Convertible Bonds      5.1   
Asset-Backed Securities      4.4   
Preferred Stocks      1.6   
Convertible Preferred Stocks      0.9   

 

MIST-3

Met Investors Series Trust

Pioneer Strategic Income Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Pioneer Strategic Income Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A

      Actual      0.62 %     $ 1,000.00         $ 992.70         $ 3.06   
     Hypothetical*      0.62 %     $ 1,000.00         $ 1,021.72         $ 3.11   

Class E

      Actual      0.77 %     $ 1,000.00         $ 992.10         $ 3.80   
     Hypothetical*      0.77 %     $ 1,000.00         $ 1,020.98         $ 3.86   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—45.3% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agriculture—0.4%

  

Alliance One International, Inc.
10.000%, 07/15/16

     2,465,000      $ 2,520,463   

Lorillard Tobacco Co.
3.750%, 05/20/23

     800,000        738,162   

MHP S.A.
8.250%, 04/02/20 (144A)

     1,800,000        1,586,250   
   

 

 

  
      4,844,875   
   

 

 

  

Airlines—0.2%

  

Delta Air Lines Pass-Through Trust
4.950%, 11/23/20

     533,855        567,221   

6.375%, 07/02/17

     725,000        754,000   

Hawaiian Airlines Pass-Through Certificates
3.900%, 01/15/26

     475,000        448,875   

TAM Capital 3, Inc.
8.375%, 06/03/21 (144A) (a)

     660,000        676,500   
   

 

 

  
      2,446,596   
   

 

 

  

Auto Manufacturers—0.2%

  

Navistar International Corp.
8.250%, 11/01/21 (a)

     2,030,000        1,994,475   
   

 

 

  

Auto Parts & Equipment—0.1%

  

Commercial Vehicle Group, Inc.
7.875%, 04/15/19

     250,000        250,312   

Titan International, Inc.
7.875%, 10/01/17

     750,000        787,500   
   

 

 

  
      1,037,812   
   

 

 

  

Banks—6.9%

  

Akbank TAS
7.500%, 02/05/18 (144A) (TRY)

     300,000        142,821   

Alfa Bank OJSC Via Alfa Bond Issuance plc
7.500%, 09/26/19 (144A)

     2,150,000        2,193,000   

8.625%, 04/26/16 (144A) (RUB)

     41,800,000        1,240,620   

Banco de Credito del Peru
6.875%, 09/16/26 (144A) (a) (b)

     1,915,000        2,044,262   

9.750%, 11/06/69 (144A) (b)

     455,000        525,525   

Banco do Brasil S.A.
6.250%, 04/15/24 (144A) (a) (b)

     1,500,000        1,320,000   

Banco do Estado do Rio Grande do Sul
7.375%, 02/02/22 (144A)

     700,000        721,000   

Banco GNB Sudameris S.A.
7.500%, 07/30/22 (144A) (a)

     1,400,000        1,456,000   

Bank of India
3.625%, 09/21/18 (144A)

     550,000        516,120   

Bank of New York Mellon Corp. (The)
4.500%, 06/20/23 (a) (b)

     925,000        869,500   

BBVA Bancomer S.A.
6.500%, 03/10/21 (144A)

     4,110,000        4,315,500   

Citigroup, Inc.
5.950%, 01/30/23 (a) (b)

     2,576,000        2,563,378   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
Zero Coupon, 03/03/15 (TRY)

     3,600,000        1,646,477   

6.875%, 03/19/20 (EUR)

     900,000        1,259,346   

Banks—(Continued)

    

CorpGroup Banking S.A.
6.750%, 03/15/23 (144A)

     1,300,000      $ 1,309,130   

Credit Suisse Group Guernsey I, Ltd.
7.875%, 02/24/41 (b)

     1,750,000        1,828,750   

Goldman Sachs Capital II
4.000%, 06/01/43 (b)

     5,300,000        4,213,500   

Goldman Sachs Group, Inc. (The)
6.450%, 05/01/36

     875,000        880,424   

6.750%, 10/01/37

     600,000        614,618   

HSBC Bank plc
7.650%, 05/01/25

     2,100,000        2,488,916   

Intesa Sanpaolo S.p.A.
2.674%, 02/24/14 (144A) (b)

     875,000        878,215   

3.625%, 08/12/15 (144A)

     1,900,000        1,904,269   

6.500%, 02/24/21 (144A) (a)

     1,175,000        1,183,427   

JPMorgan Chase & Co.
Zero Coupon,
10/04/17 (144A) (TRY)

     2,100,000        735,443   

4.250%, 11/02/18 (NZD)

     2,600,000        1,934,843   

7.900%, 04/30/18 (b)

     4,343,000        4,907,590   

KeyBank N.A.
5.800%, 07/01/14

     1,225,000        1,281,087   

Mellon Funding Corp.
5.500%, 11/15/18

     812,000        935,692   

Morgan Stanley
4.100%, 05/22/23

     3,800,000        3,510,892   

4.875%, 11/01/22

     450,000        444,555   

5.500%, 01/26/20

     1,100,000        1,180,726   

5.500%, 07/28/21

     1,000,000        1,067,828   

6.625%, 04/01/18

     714,000        809,287   

Nordea Bank AB
4.250%, 09/21/22 (144A) (a)

     3,400,000        3,354,355   

PNC Bank N.A.
6.000%, 12/07/17 (a)

     699,000        808,145   

PNC Financial Services Group, Inc.
4.494%, 07/29/13 (a) (b)

     2,749,000        2,733,880   

6.750%, 08/01/21 (b)

     5,295,000        5,745,075   

Scotia Bank Peru DPR Finance Co.
3.023%, 03/15/17 (144A) (b)

     789,474        786,927   

Scotiabank Peru S.A.
4.500%, 12/13/27 (144A) (a) (b)

     1,900,000        1,705,250   

Sovereign Bank
8.750%, 05/30/18

     2,655,000        3,210,166   

Turkiye Garanti Bankasi
7.375%, 03/07/18 (144A) (TRY)

     2,400,000        1,142,324   

Turkiye Is Bankasi
6.000%, 10/24/22 (144A) (a)

     850,000        830,875   

UBS AG
7.625%, 08/17/22

     5,600,000        6,145,709   

VTB Bank OJSC Via VTB Capital S.A.
6.000%, 04/12/17 (144A)

     1,000,000        1,040,000   

6.950%, 10/17/22 (144A)

     2,500,000        2,537,500   

Wachovia Bank N.A.
6.000%, 11/15/17

     1,215,000        1,386,453   
   

 

 

  
      84,349,400   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Beverages—0.3%

  

Ajecorp B.V.
6.500%, 05/14/22 (144A) (a)

     960,000      $ 977,280   

Anheuser-Busch InBev Worldwide, Inc.
7.750%, 01/15/19

     1,254,000        1,586,101   

Central American Bottling Corp.
6.750%, 02/09/22 (144A)

     630,000        661,500   
   

 

 

  
      3,224,881   
   

 

 

  

Chemicals—0.5%

  

Basell Finance Co. B.V.
8.100%, 03/15/27 (144A)

     382,000        483,552   

Eastman Chemical Co.
4.800%, 09/01/42

     740,000        700,326   

EuroChem Mineral & Chemical Co. OJSC via EuroChem GI, Ltd.
5.125%, 12/12/17 (144A)

     600,000        589,500   

Hexion US Finance Corp. / Hexion Nova Scotia Finance ULC
8.875%, 02/01/18 (a)

     640,000        652,800   

9.000%, 11/15/20 (a)

     655,000        625,525   

Ineos Group Holdings S.A.
7.875%, 02/15/16 (144A) (EUR)

     568,966        741,483   

LyondellBasell Industries NV
5.000%, 04/15/19

     570,000        620,215   

Phosagro OAO via Phosagro Bond Funding, Ltd.
4.204%, 02/13/18 (144A) (a)

     900,000        886,500   

Rain CII Carbon LLC / CII Carbon Corp.
8.000%, 12/01/18 (144A) (a)

     1,275,000        1,306,875   
   

 

 

  
      6,606,776   
   

 

 

  

Coal—0.2%

  

Alpha Natural Resources, Inc.
6.000%, 06/01/19 (a)

     820,000        664,200   

Berau Coal Energy Tbk PT
7.250%, 03/13/17 (144A)

     1,500,000        1,451,250   

Bumi Capital Pte, Ltd.
12.000%, 11/10/16 (144A)

     875,000        656,250   

Bumi Investment Pte, Ltd.
10.750%, 10/06/17 (144A) (a)

     500,000        360,000   
   

 

 

  
      3,131,700   
   

 

 

  

Commercial Services—0.9%

    

Amherst College
3.794%, 11/01/42

     400,000        369,826   

Board of Trustees of The Leland Stanford Junior University (The)
4.750%, 05/01/19

     950,000        1,082,351   

Bowdoin College
4.693%, 07/01/2112

     800,000        690,610   

Catholic Health Initiatives
4.350%, 11/01/42

     1,950,000        1,775,810   

Massachusetts Institute of Technology
5.600%, 07/01/2111

     800,000        964,269   

Commercial Services—(Continued)

  

President and Fellows of Harvard College
2.300%, 10/01/23

     1,000,000      $ 946,444   

Red de Carreteras de Occidente SAPIB de C.V.
9.000%, 06/10/28 (144A) (MXN)

     15,000,000        1,089,029   

Tufts University
5.017%, 04/15/2112

     2,700,000        2,694,446   

University of Southern California
5.250%, 10/01/2111

     550,000        625,844   

William Marsh Rice University
4.626%, 05/15/63

     900,000        862,671   
   

 

 

  
      11,101,300   
   

 

 

  

Computers—0.3%

    

Brocade Communications Systems, Inc.
4.625%, 01/15/23 (144A)

     550,000        517,000   

Seagate HDD Cayman
4.750%, 06/01/23 (144A)

     3,165,000        2,951,362   
   

 

 

  
      3,468,362   
   

 

 

  

Construction Materials—0.8%

    

Cemex Espana Luxembourg
9.875%, 04/30/19 (144A) (c)

     1,420,000        1,533,600   

Cemex S.A.B. de C.V.
9.000%, 01/11/18 (144A)

     900,000        945,000   

Desarrolladora Homex S.A.B. de C.V.
9.500%, 12/11/19 (144A) (a)

     855,000        290,700   

9.750%, 03/25/20 (144A) (a)

     905,000        307,700   

Holcim US Finance Sarl & Cie SCS
6.000%, 12/30/19 (144A) (a)

     225,000        251,228   

Masco Corp.
5.950%, 03/15/22 (a)

     1,425,000        1,496,250   

7.125%, 03/15/20

     2,905,000        3,239,075   

Texas Industries, Inc.
9.250%, 08/15/20 (a)

     425,000        457,938   

Urbi Desarrollos Urbanos S.A.B. de C.V.
9.500%, 01/21/20 (144A)

     346,000        76,120   

9.750%, 02/03/22 (144A)

     700,000        154,000   

Voto-Votorantim Overseas Trading Operations NV
6.625%, 09/25/19 (144A)

     500,000        532,500   
   

 

 

  
      9,284,111   
   

 

 

  

Distribution/Wholesale—0.1%

    

Glencore Funding LLC
4.125%, 05/30/23 (144A)

     875,000        780,399   
   

 

 

  

Diversified Financial Services—6.3%

  

Alterra Finance LLC
6.250%, 09/30/20

     2,100,000        2,397,461   

American Honda Finance Corp.
6.700%, 10/01/13 (144A)

     1,300,000        1,319,441   

Atlas Reinsurance VII, Ltd. 8.
144%, 01/07/16 (144A) (b)

     250,000        252,650   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Diversified Financial Services—(Continued)

  

ATLAS VI Capital, Ltd.
10.500%, 04/07/14 (144A) (EUR) (b)

     250,000      $ 331,172   

Ausdrill Finance Pty, Ltd.
6.875%, 11/01/19 (144A)

     810,000        773,550   

Banque PSA Finance S.A.
5.750%, 04/04/21 (144A)

     595,000        563,013   

Blue Danube II, Ltd.
4.368%, 05/23/16 (144A) (b)

     900,000        894,960   

Blue Danube, Ltd.
6.122%, 04/10/15 (144A) (b)

     250,000        258,775   

BM&FBovespa S.A.
5.500%, 07/16/20 (144A)

     1,500,000        1,531,875   

Bosphorus 1 Re, Ltd.
2.530%, 05/03/16 (144A) (b)

     250,000        248,675   

Caelus Re, Ltd.
5.280%, 03/07/16 (144A) (b)

     1,150,000        1,135,855   

6.880%, 04/07/20 (144A) (b)

     800,000        795,360   

Cantor Fitzgerald L.P.
7.875%, 10/15/19 (144A)

     3,075,000        3,146,657   

Capital One Bank USA N.A.
8.800%, 07/15/19

     720,000        923,538   

Carlyle Holdings Finance LLC
3.875%, 02/01/23 (144A) (a)

     750,000        725,842   

Carlyle Holdings II Finance LLC
5.625%, 03/30/43 (144A)

     2,350,000        2,198,296   

Combine Re, Ltd.
4.530%, 01/07/15 (144A) (b)

     750,000        773,250   

Compass Re, Ltd.
9.030%, 01/08/15 (144A) (b)

     300,000        307,560   

10.280%, 01/08/15 (144A) (b)

     800,000        824,320   

Corp. Financiera de Desarrollo S.A.
4.750%, 02/08/22 (144A)

     690,000        679,650   

DTEK Finance plc
7.875%, 04/04/18 (144A) (a)

     1,600,000        1,492,000   

East Lane Re V, Ltd.
9.030%, 03/16/16 (144A) (b)

     250,000        268,275   

East Lane Re, Ltd.
5.780%, 03/14/14 (144A) (b)

     250,000        251,575   

6.680%, 03/13/17 (144A) (b)

     250,000        258,275   

Embarcadero Reinsurance, Ltd.
5.030%, 08/07/15 (144A) (b)

     1,000,000        1,036,400   

6.630%, 08/04/14 (144A) (b)

     600,000        613,080   

General Electric Capital Corp.
5.250%, 06/15/23 (b)

     500,000        477,500   

7.125%, 06/15/22 (b)

     2,800,000        3,164,000   

Hyundai Capital America
4.000%, 06/08/17 (144A)

     200,000        207,190   

Hyundai Capital Services, Inc.
3.500%, 09/13/17 (144A) (a)

     660,000        672,042   

Ibis Re II, Ltd.
4.030%, 06/28/16 (144A) (b)

     750,000        749,625   

8.380%, 02/05/15 (144A) (b)

     500,000        517,750   

Intercorp Retail Trust
8.875%, 11/14/18 (144A)

     1,050,000        1,128,750   

Janus Capital Group, Inc.
6.700%, 06/15/17 (a)

     360,000        401,968   

Diversified Financial Services—(Continued)

  

Jefferies Finance LLC / JFIN Co-Issuer Corp.
7.375%, 04/01/20 (144A)

     350,000      $ 339,500   

Jefferies Group Inc.
5.125%, 04/13/18 (a)

     1,125,000        1,175,627   

Jefferies Group LLC
6.875%, 04/15/21

     3,325,000        3,656,808   

Kibou, Ltd.
5.280%, 02/16/15 (144A) (b)

     450,000        467,910   

KKR Group Finance Co. II LLC
5.500%, 02/01/43 (144A)

     3,750,000        3,425,666   

LeasePlan Corp. NV
2.500%, 05/16/18 (144A)

     1,075,000        1,035,989   

Lodestone Re, Ltd.
6.030%, 01/08/14 (144A) (b)

     1,500,000        1,498,350   

7.280%, 01/08/14 (144A) (b)

     1,250,000        1,250,250   

Longpoint Re, Ltd.
6.030%, 06/12/15 (144A) (b)

     450,000        468,495   

Longpoint Re, Ltd. III
4.030%, 05/18/16 (144A) (b)

     850,000        846,430   

Macquarie Group, Ltd.
6.000%, 01/14/20 (144A)

     1,400,000        1,453,732   

6.250%, 01/14/21 (144A)

     400,000        425,165   

7.625%, 08/13/19 (144A)

     1,170,000        1,356,872   

Magnesita Finance, Ltd.
8.625%, 04/05/17 (144A)

     750,000        748,125   

Merrill Lynch & Co., Inc.
5.000%, 02/03/14

     168,000        171,643   

6.110%, 01/29/37

     1,600,000        1,574,981   

7.750%, 05/14/38

     3,200,000        3,660,429   

Mystic Re, Ltd.
9.030%, 03/12/15 (144A) (b)

     500,000        520,800   

12.030%, 03/12/15 (144A) (b)

     750,000        795,300   

Mythen Re, Ltd.
8.613%, 01/05/17 (144A) (b)

     450,000        460,305   

Mythen, Ltd.
8.105%, 05/07/15 (144A) (b)

     650,000        696,150   

Queen Street II Capital, Ltd.
7.530%, 04/09/14 (144A) (b)

     975,000        980,557   

Queen Street IV Capital, Ltd.
7.530%, 04/09/15 (144A) (b)

     400,000        406,280   

Queen Street V Re, Ltd.
8.530%, 04/09/15 (144A) (b)

     350,000        360,710   

Queen Street VII Re, Ltd.
8.630%, 04/08/16 (144A) (b)

     400,000        405,880   

Residential Reinsurance 2010, Ltd.
4.530%, 12/06/16 (144A) (b)

     800,000        809,760   

Residential Reinsurance 2011, Ltd.
8.780%, 12/06/16 (144A) (b)

     1,000,000        1,039,100   

8.930%, 12/06/15 (144A) (b)

     250,000        252,825   

9.030%, 01/01/00 (144A) (b)

     925,000        950,623   

Residential Reinsurance 2012, Ltd.
5.780%, 12/06/16 (144A) (b)

     1,250,000        1,288,250   

8.030%, 06/06/18 (144A) (b)

     950,000        1,039,490   

10.030%, 06/06/18 (144A) (b)

     800,000        861,600   

Residential Reinsurance 2013, Ltd.
8.030%, 06/06/19 (144A) (b)

     250,000        249,125   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Diversified Financial Services—(Continued)

  

Residential Reinsurance 2013, Ltd.
9.280%, 06/06/19 (144A) (b)

     350,000      $ 346,675   

Sanders Re, Ltd.
3.530%, 05/05/17 (144A) (b)

     500,000        494,750   

4.030%, 05/05/17 (144A) (b)

     1,000,000        989,500   

Scottrade Financial Services, Inc.
6.125%, 07/11/21 (144A)

     2,500,000        2,445,370   

SLM Corp.
4.000%, 07/25/14 (b)

     989,000        993,945   

Successor X, Ltd.
9.411%, 02/25/14 (144A) (b)

     1,550,000        1,553,410   

11.030%, 01/27/15 (144A) (b)

     650,000        666,250   

11.280%, 11/10/15 (144A) (b)

     250,000        253,425   

12.933%, 01/07/14 (144A) (b)

     1,250,000        1,248,250   

13.000%, 02/25/14 (144A) (b)

     250,000        249,700   

Tar Heel Re, Ltd.
8.530%, 05/09/16 (144A) (b)

     400,000        407,760   

TD Ameritrade Holding Corp.
5.600%, 12/01/19

     500,000        581,223   

Vita Capital V, Ltd.
2.896%, 01/15/17 (144A) (b)

     500,000        511,150   

3.596%, 01/15/17 (144A) (b)

     1,000,000        1,018,600   
   

 

 

  
      77,753,065   
   

 

 

  

Electric—1.9%

    

Commonwealth Edison Co.
6.950%, 07/15/18

     1,100,000        1,306,511   

Dubai Electricity & Water Authority
8.500%, 04/22/15 (144A)

     2,820,000        3,059,700   

Electricite de France S.A.
5.250%, 01/29/23 (144A) (a) (b)

     4,000,000        3,824,000   

FPL Energy American Wind LLC
6.639%, 06/20/23 (144A)

     227,596        211,000   

FPL Energy Wind Funding LLC
6.876%, 06/27/17 (144A)

     159,100        133,644   

Instituto Costarricense de Electricidad
6.375%, 05/15/43 (144A) (a)

     850,000        770,312   

6.950%, 11/10/21 (144A)

     1,520,000        1,599,800   

InterGen NV
7.000%, 06/30/23 (144A)

     900,000        877,500   

Israel Electric Corp., Ltd.
6.700%, 02/10/17 (144A)

     770,000        812,350   

7.250%, 01/15/19 (144A)

     845,000        899,925   

9.375%, 01/28/20 (144A)

     410,000        483,800   

Juniper Generation LLC
6.790%, 12/31/14 (144A)

     15,522        14,759   

Kiowa Power Partners LLC
5.737%, 03/30/21 (144A)

     900,000        943,693   

New York State Electric & Gas Corp.
6.150%, 12/15/17 (144A)

     950,000        1,064,832   

NSG Holdings LLC / NSG Holdings, Inc.
7.750%, 12/15/25 (144A) (c)

     867,000        897,345   

Panoche Energy Center LLC
6.885%, 07/31/29 (144A)

     820,293        807,391   

Electric—(Continued)

  

PPL Capital Funding, Inc.
6.700%, 03/30/67 (b)

     450,000      $ 464,625   

Public Service Co. of New Mexico
7.950%, 05/15/18

     625,000        751,132   

Southern California Edison Co.
6.250%, 02/01/22 (b)

     1,575,000        1,653,750   

Star Energy Geothermal Wayang Windu, Ltd.
6.125%, 03/27/20 (144A) (a)

     1,300,000        1,238,250   

West Penn Power Co.
5.950%, 12/15/17 (144A)

     1,197,000        1,363,778   
   

 

 

  
      23,178,097   
   

 

 

  

Electrical Components & Equipment—0.1%

  

Coleman Cable, Inc.
9.000%, 02/15/18

     816,000        864,960   

Legrand France S.A.
8.500%, 02/15/25 (a)

     20,000        25,142   
   

 

 

  
      890,102   
   

 

 

  

Electronics—0.3%

    

Flextronics International, Ltd.
4.625%, 02/15/20 (144A) (a)

     780,000        756,600   

5.000%, 02/15/23 (144A)

     1,300,000        1,257,750   

Viasystems, Inc.
7.875%, 05/01/19 (144A)

     1,100,000        1,160,500   
   

 

 

  
      3,174,850   
   

 

 

  

Energy-Alternate Sources—0.0%

  

Alta Wind Holdings LLC
7.000%, 06/30/35 (144A)

     306,855        321,939   
   

 

 

  

Engineering & Construction—0.4%

    

Abengoa Finance SAU
8.875%, 11/01/17 (144A) (a)

     500,000        465,000   

Aeropuertos Dominicanos Siglo XXI S.A.
9.250%, 11/13/19 (144A)

     1,000,000        1,002,500   

Dycom Investments, Inc.
7.125%, 01/15/21

     1,000,000        1,060,000   

Empresas ICA S.A.B. de C.V.
8.375%, 07/24/17 (144A) (a)

     550,000        484,000   

8.900%, 02/04/21 (144A) (a)

     1,800,000        1,584,000   
   

 

 

  
      4,595,500   
   

 

 

  

Entertainment—0.5%

    

Codere Finance Luxembourg S.A.
9.250%, 02/15/19 (144A) (a)

     2,290,000        1,259,500   

Lottomatica S.p.A.
8.250%, 03/31/66 (144A) (EUR) (b)

     1,957,000        2,642,853   

Mashantucket Pequot Tribe
8.500%, 11/15/15 (144A) (c) (d)

     1,670,000        100,200   

Peermont Global Pty, Ltd.
7.750%, 04/30/14 (144A) (EUR)

     920,000        1,179,554   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Entertainment—(Continued)

    

Scientific Games International, Inc.
9.250%, 06/15/19 (a)

     590,000      $ 638,675   

Shingle Springs Tribal Gaming Authority
9.375%, 06/15/15 (144A)

     635,000        628,650   
   

 

 

  
      6,449,432   
   

 

 

  

Food—1.1%

    

Bertin S.A. / Bertin Finance, Ltd.
10.250%, 10/05/16 (144A)

     200,000        213,500   

BRF S.A.
3.950%, 05/22/23 (144A) (a)

     600,000        528,000   

5.875%, 06/06/22 (144A) (a)

     1,425,000        1,462,478   

CFG Investment SAC
9.750%, 07/30/19 (144A)

     1,400,000        1,253,000   

Independencia International, Ltd.
12.000%, 12/30/16 (144A) (d) (e)

     296,948        742   

JBS Finance II, Ltd.
8.250%, 01/29/18 (144A) (a)

     1,430,000        1,451,450   

JBS USA LLC / JBS USA Finance, Inc.
8.250%, 02/01/20 (144A)

     600,000        628,500   

Marfrig Holding Europe B.V.
8.375%, 05/09/18 (144A)

     1,200,000        1,128,000   

9.875%, 07/24/17 (144A) (a)

     825,000        829,125   

Marfrig Overseas, Ltd.
9.500%, 05/04/20 (144A)

     1,775,000        1,759,469   

Minerva Luxembourg S.A.
7.750%, 01/31/23 (144A) (a)

     1,700,000        1,691,500   

12.250%, 02/10/22 (144A)

     800,000        956,000   

Mondelez International, Inc.
6.500%, 02/09/40

     1,850,000        2,207,298   
   

 

 

  
      14,109,062   
   

 

 

  

Forest Products & Paper—0.2%

    

Emerald Plantation Holdings, Ltd.
6.000%, 01/30/20

     288,170        165,842   

Inversiones CMPC S.A.
4.375%, 05/15/23 (144A) (a)

     400,000        382,850   

Resolute Forest Products, Inc.
5.875%, 05/15/23 (144A)

     1,880,000        1,677,900   
   

 

 

  
      2,226,592   
   

 

 

  

Gas—0.2%

    

Nakilat, Inc.
6.067%, 12/31/33 (144A)

     520,000        582,660   

6.267%, 12/31/33 (144A)

     1,284,450        1,348,673   

Transportadora de Gas del Peru S.A.
4.250%, 04/30/28 (144A) (a)

     1,200,000        1,062,000   
   

 

 

  
      2,993,333   
   

 

 

  

Healthcare-Products—0.2%

    

Physio-Control International, Inc.
9.875%, 01/15/19 (144A)

     2,400,000        2,640,000   
   

 

 

  

Healthcare-Services—0.5%

    

Gentiva Health Services, Inc.
11.500%, 09/01/18 (a)

     2,300,000      $ 2,369,000   

HCA, Inc.
6.500%, 02/15/20

     350,000        378,656   

7.690%, 06/15/25

     50,000        54,000   

8.360%, 04/15/24

     50,000        56,500   

NYU Hospitals Center
4.428%, 07/01/42

     1,800,000        1,646,593   

Vanguard Health Holding Co. II LLC / Vanguard Holding Co. II, Inc.
7.750%, 02/01/19

     1,500,000        1,590,000   
   

 

 

  
      6,094,749   
   

 

 

  

Holding Companies-Diversified—0.0%

  

Boart Longyear Management Pty, Ltd.
7.000%, 04/01/21 (144A)

     525,000        494,813   
   

 

 

  

Home Builders—0.3%

    

Brookfield Residential Properties, Inc. / Brookfield Residential US Corp.
6.125%, 07/01/22 (144A) (a)

     1,000,000        981,250   

Meritage Homes Corp.
7.000%, 04/01/22

     2,500,000        2,750,000   
   

 

 

  
      3,731,250   
   

 

 

  

Home Furnishings—0.1%

    

Arcelik A/S
5.000%, 04/03/23 (144A) (a)

     1,300,000        1,163,500   
   

 

 

  

Household Products—0.2%

    

Avon Products, Inc.
5.000%, 03/15/23

     2,760,000        2,743,404   
   

 

 

  

Household Products/Wares—0.5%

    

Controladora Mabe S.A. C.V.
7.875%, 10/28/19 (144A)

     2,121,000        2,269,470   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu
7.125%, 04/15/19

     1,300,000        1,373,125   

9.875%, 08/15/19

     705,000        754,350   

Yankee Candle Co., Inc.
9.750%, 02/15/17

     1,684,000        1,738,730   
   

 

 

  
      6,135,675   
   

 

 

  

Insurance—4.2%

    

Aquarius + Investments plc for Swiss Reinsurance Co., Ltd.
6.375%, 09/01/24 (b)

     2,700,000        2,685,150   

AXA S.A.
6.463%, 12/14/18 (144A) (a) (b)

     2,075,000        2,030,906   

8.600%, 12/15/30

     1,320,000        1,597,200   

Delphi Financial Group, Inc.
7.875%, 01/31/20

     2,190,000        2,568,693   

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Insurance—(Continued)

    

Foundation Re III, Ltd.
5.030%, 02/25/15 (b)

     750,000      $ 766,950   

5.780%, 02/03/14 (144A) (b)

     825,000        822,607   

Genworth Financial, Inc.
7.200%, 02/15/21

     2,640,000        2,964,158   

7.625%, 09/24/21 (a)

     1,150,000        1,336,392   

Hanover Insurance Group, Inc. (The)
7.500%, 03/01/20

     325,000        373,531   

7.625%, 10/15/25

     1,166,000        1,445,709   

ING US, Inc.
5.650%, 05/15/53 (144A) (b)

     450,000        423,000   

Ironshore Holdings US, Inc.
8.500%, 05/15/20 (144A)

     1,635,000        1,825,358   

Liberty Mutual Group, Inc.
7.300%, 06/15/14 (144A) (c)

     394,000        413,831   

Liberty Mutual Insurance Co.
7.697%, 10/15/97 (144A)

     2,600,000        2,726,825   

Lincoln National Corp.
6.050%, 04/20/67 (b)

     2,382,000        2,333,598   

7.000%, 05/17/66 (b)

     536,000        534,553   

Montpelier Re Holdings, Ltd.
4.700%, 10/15/22 (a)

     1,965,000        1,931,772   

OneBeacon US Holdings, Inc.
4.600%, 11/09/22

     1,500,000        1,492,233   

Platinum Underwriters Finance, Inc.
7.500%, 06/01/17

     2,214,000        2,473,808   

Protective Life Corp.
7.375%, 10/15/19

     1,925,000        2,332,338   

Prudential Financial, Inc.
5.200%, 03/15/44 (b)

     500,000        472,500   

5.625%, 06/15/43 (b)

     1,750,000        1,715,000   

5.875%, 09/15/42 (a) (b)

     1,200,000        1,203,000   

6.200%, 01/15/15

     215,000        231,652   

8.875%, 06/15/38 (b)

     915,000        1,098,000   

QBE Capital Funding II L.P.
6.797%, 06/01/17 (144A) (b)

     2,850,000        2,822,637   

QBE Insurance Group, Ltd.
2.400%, 05/01/18 (144A)

     850,000        833,292   

Sirius International Group, Ltd.
7.506%, 06/30/17 (144A) (b)

     3,465,000        3,574,868   

Validus Holdings, Ltd.
8.875%, 01/26/40

     1,720,000        2,171,798   

Vitality Re IV, Ltd.
2.780%, 01/09/17 (144A) (b)

     400,000        404,720   

Wilton Re Finance LLC
5.875%, 03/30/33 (144A) (b)

     1,050,000        1,019,240   

XL Group plc
6.500%, 04/15/17 (a) (b)

     2,845,000        2,773,875   
   

 

 

  
      51,399,194   
   

 

 

  

Internet—0.1%

    

Expedia, Inc.
5.950%, 08/15/20

     675,000        716,352   
   

 

 

  

Investment Company Security—0.4%

  

Gruposura Finance
5.700%, 05/18/21 (144A) (a)

     915,000        942,450   

Investment Company Security—(Continued)

  

IPIC GMTN, Ltd.
5.500%, 03/01/22 (144A)

     1,680,000      $ 1,793,400   

Prospect Capital Corp.
5.875%, 03/15/23

     1,900,000        1,802,475   
   

 

 

  
      4,538,325   
   

 

 

  

Iron/Steel—0.9%

    

Allegheny Technologies, Inc.
9.375%, 06/01/19

     1,135,000        1,400,554   

ArcelorMittal
6.000%, 03/01/21

     1,390,000        1,383,050   

6.125%, 06/01/18

     1,500,000        1,545,000   

Commercial Metals Co.
7.350%, 08/15/18 (a)

     1,315,000        1,410,337   

Essar Steel Algoma, Inc.
9.375%, 03/15/15 (144A)

     450,000        427,500   

9.875%, 06/15/15 (144A) (a)

     1,030,000        793,100   

Ferrexpo Finance plc
7.875%, 04/07/16 (144A)

     650,000        599,866   

Metalloinvest Finance, Ltd.
5.625%, 04/17/20 (144A)

     1,000,000        915,000   

Metinvest B.V.
8.750%, 02/14/18 (144A)

     1,200,000        1,116,000   

10.250%, 05/20/15 (144A)

     550,000        556,875   

Samarco Mineracao S.A.
4.125%, 11/01/22 (144A) (a)

     1,275,000        1,141,125   
   

 

 

  
      11,288,407   
   

 

 

  

Lodging—0.2%

    

Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.
4.250%, 05/30/23 (144A)

     920,000        851,000   

5.375%, 03/15/22

     1,115,000        1,126,150   
   

 

 

  
      1,977,150   
   

 

 

  

Machinery-Construction & Mining—0.1%

  

Ormat Funding Corp.
8.250%, 12/30/20

     854,683        769,215   
   

 

 

  

Machinery-Diversified—0.2%

    

Cummins, Inc.
5.650%, 03/01/98

     2,375,000        2,249,470   

6.750%, 02/15/27

     393,000        455,304   
   

 

 

  
      2,704,774   
   

 

 

  

Media—0.4%

    

Myriad International Holding B.V.
6.375%, 07/28/17 (144A)

     1,530,000        1,675,350   

Nara Cable Funding, Ltd.
8.875%, 12/01/18 (144A) (EUR)

     1,260,000        1,709,782   

8.875%, 12/01/18 (144A)

     400,000        416,000   

Time Warner Cable, Inc.
8.250%, 04/01/19

     313,000        376,850   

8.750%, 02/14/19

     198,000        243,040   
   

 

 

  
      4,421,022   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Metal Fabricate/Hardware—0.2%

  

Mueller Water Products, Inc.
7.375%, 06/01/17 (a)

     1,096,000      $ 1,123,400   

Valmont Industries, Inc.
6.625%, 04/20/20

     940,000        1,071,820   

WPE International Cooperatief UA
10.375%, 09/30/20 (144A)

     900,000        702,000   
   

 

 

  
      2,897,220   
   

 

 

  

Mining—1.4%

    

Alcoa, Inc.
6.150%, 08/15/20 (a)

     1,280,000        1,311,094   

ALROSA Finance S.A.
7.750%, 11/03/20 (144A)

     640,000        684,800   

Anglo American Capital plc
9.375%, 04/08/14 (144A)

     845,000        895,725   

AngloGold Ashanti Holdings plc
5.125%, 08/01/22 (a)

     680,000        601,286   

5.375%, 04/15/20 (a)

     1,615,000        1,509,859   

Freeport-McMoRan Copper & Gold, Inc.
3.875%, 03/15/23 (144A)

     1,875,000        1,697,047   

Gold Fields Orogen Holding BVI, Ltd.
4.875%, 10/07/20 (144A)

     4,860,000        4,106,700   

IAMGOLD Corp.
6.750%, 10/01/20 (144A)

     500,000        422,500   

KGHM International, Ltd.
7.750%, 06/15/19 (144A)

     2,100,000        2,131,500   

Mirabela Nickel, Ltd.
8.750%, 04/15/18 (144A)

     1,025,000        809,750   

Southern Copper Corp.
5.375%, 04/16/20

     395,000        418,586   

Vedanta Resources plc
6.000%, 01/31/19 (144A)

     1,150,000        1,092,500   

8.250%, 06/07/21 (144A) (a)

     700,000        705,250   

9.500%, 07/18/18 (144A) (a)

     725,000        792,063   

Volcan Cia Minera SAA
5.375%, 02/02/22 (144A) (a)

     625,000        615,625   
   

 

 

  
      17,794,285   
   

 

 

  

Miscellaneous Manufacturing—0.1%

    

Ingersoll-Rand Global Holding Co., Ltd.
9.500%, 04/15/14

     910,000        971,212   

Park-Ohio Industries, Inc.
8.125%, 04/01/21 (a)

     500,000        542,500   
   

 

 

  
      1,513,712   
   

 

 

  

Multi-National—0.7%

    

Asian Development Bank
3.375%, 05/20/14 (NOK)

     10,000,000        1,669,660   

Inter-American Development Bank
4.500%, 02/04/16 (IDR)

     21,400,000,000        1,994,955   

International Bank for Reconstruction & Development
3.250%, 04/14/14 (NOK)

     16,800,000        2,794,962   

5.750%, 10/21/19 (AUD)

     1,600,000        1,589,824   
   

 

 

  
      8,049,401   
   

 

 

  

Oil & Gas—3.1%

    

Carrizo Oil & Gas, Inc.
8.625%, 10/15/18 (a)

     1,130,000      $ 1,209,100   

Dolphin Energy, Ltd.
5.500%, 12/15/21 (144A)

     470,000        507,600   

EP Energy LLC / EP Energy Finance, Inc.
9.375%, 05/01/20

     1,750,000        1,977,500   

Gazprom OAO Via Gaz Capital S.A.
4.950%, 07/19/22 (144A) (a)

     200,000        191,500   

8.146%, 04/11/18 (144A)

     190,000        217,550   

KazMunayGas National Co. JSC
4.400%, 04/30/23 (144A)

     600,000        556,500   

Linn Energy LLC / Linn Energy Finance Corp.
6.250%, 11/01/19 (144A)

     1,375,000        1,309,687   

8.625%, 04/15/20

     825,000        866,250   

National JSC Naftogaz of Ukraine
9.500%, 09/30/14

     1,000,000        997,500   

Newfield Exploration Co.
5.625%, 07/01/24

     1,625,000        1,576,250   

Novatek OAO via Novatek Finance, Ltd.
4.422%, 12/13/22 (144A) (a)

     2,600,000        2,385,500   

Oasis Petroleum, Inc.
6.875%, 01/15/23

     2,050,000        2,111,500   

Offshore Group Investment, Ltd.
7.500%, 11/01/19 (a)

     1,000,000        1,042,500   

Petrobras Global Finance B.V.
3.000%, 01/15/19

     2,375,000        2,206,104   

Plains Exploration & Production Co.
6.750%, 02/01/22

     3,505,000        3,714,515   

8.625%, 10/15/19

     1,025,000        1,128,065   

Precision Drilling Corp.
6.625%, 11/15/20

     1,100,000        1,116,500   

Samson Investment Co.
10.000%, 02/15/20 (144A)

     865,000        911,494   

SandRidge Energy, Inc.
7.500%, 03/15/21

     625,000        596,875   

8.125%, 10/15/22

     325,000        321,750   

Stone Energy Corp.
8.625%, 02/01/17 (a)

     900,000        938,250   

Swift Energy Co.
7.875%, 03/01/22

     1,600,000        1,592,000   

Tengizchevroil Finance Co. SARL
6.124%, 11/15/14 (144A)

     574,050        587,569   

Tesoro Corp.
5.375%, 10/01/22

     1,630,000        1,650,375   

TNK-BP Finance S.A.
6.625%, 03/20/17 (144A) (a)

     375,000        406,875   

7.500%, 07/18/16 (144A) (a)

     1,090,000        1,208,538   

Transocean, Inc.
6.375%, 12/15/21

     3,100,000        3,484,288   

Unit Corp.
6.625%, 05/15/21

     875,000        892,500   

Valero Energy Corp.
9.375%, 03/15/19

     1,230,000        1,612,820   

W&T Offshore, Inc.
8.500%, 06/15/19 (a)

     600,000        619,500   
   

 

 

  
      37,936,955   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas Services—0.5%

    

Calfrac Holdings L.P.
7.500%, 12/01/20 (144A)

     500,000      $ 495,000   

Expro Finance Luxembourg SCA
8.500%, 12/15/16 (144A)

     304,000        319,200   

Exterran Holdings, Inc.
7.250%, 12/01/18

     1,525,000        1,616,500   

SESI LLC
7.125%, 12/15/21

     1,460,000        1,576,800   

Weatherford International, Ltd.
5.950%, 04/15/42

     475,000        448,956   

9.625%, 03/01/19

     1,209,000        1,528,443   
   

 

 

  
      5,984,899   
   

 

 

  

Oil, Gas & Consumable Fuels—0.0%

    

PetroQuest Energy, Inc.
10.000%, 09/01/17 (144A) (c)

     500,000        500,000   
   

 

 

  

Packaging & Containers—0.5%

    

AEP Industries, Inc.
8.250%, 04/15/19

     290,000        312,113   

Ardagh Packaging Finance plc
7.000%, 11/15/20 (144A) (a)

     1,200,000        1,156,500   

9.250%, 10/15/20 (144A) (EUR)

     400,000        545,391   

Ardagh Packaging Finance plc / Ardagh MP Holdings USA, Inc.
9.125%, 10/15/20 (144A)

     2,325,000        2,479,031   

Graphic Packaging International, Inc.
7.875%, 10/01/18

     685,000        739,800   

Mondi Consumer Packaging International AG
9.750%, 07/15/17 (144A) (EUR) (c)

     950,000        1,391,200   
   

 

 

  
      6,624,035   
   

 

 

  

Pharmaceuticals—0.2%

    

VPII Escrow Corp.
7.500%, 07/15/21

     1,390,000        1,438,650   

Warner Chilcott Co. LLC / Warner Chilcott Finance LLC
7.750%, 09/15/18

     1,075,000        1,161,000   
   

 

 

  
      2,599,650   
   

 

 

  

Pipelines—2.3%

    

Buckeye Partners L.P.
6.050%, 01/15/18 (a)

     505,000        568,396   

DCP Midstream LLC
5.850%, 05/21/43 (144A) (a) (b)

     2,951,000        2,832,960   

9.750%, 03/15/19 (144A)

     1,267,000        1,633,963   

Energy Transfer Partners L.P.
3.292%, 11/01/66 (144A) (b)

     900,000        810,000   

Enterprise Products Operating LLC
7.000%, 06/01/67 (b)

     678,000        716,985   

8.375%, 08/01/66 (b)

     1,059,000        1,180,785   

Gibson Energy, Inc.
6.750%, 07/15/21 (144A)

     2,735,000        2,728,163   

Pipelines—(Continued)

    

Kinder Morgan Energy Partners L.P.
4.150%, 03/01/22 (a)

     2,300,000      $ 2,311,838   

5.950%, 02/15/18 (a)

     1,559,000        1,806,646   

ONEOK, Inc.
6.875%, 09/30/28

     1,850,000        2,100,070   

Plains All American Pipeline LP / PAA Finance Corp.
6.125%, 01/15/17 (a)

     1,467,000        1,666,376   

Questar Pipeline Co.
5.830%, 02/01/18

     1,441,000        1,665,404   

Sabine Pass Liquefaction LLC
5.625%, 02/01/21 (144A)

     2,150,000        2,085,500   

Spectra Energy Capital LLC
6.200%, 04/15/18

     1,109,000        1,292,172   

6.750%, 07/15/18

     600,000        706,140   

Sunoco Logistics Partners Operations L.P.
6.100%, 02/15/42 (a)

     1,700,000        1,776,282   

Transportadora de Gas del Sur S.A.
7.875%, 05/14/17 (144A)

     921,000        803,480   

Williams Cos., Inc. (The)
7.750%, 06/15/31

     1,549,000        1,809,153   
   

 

 

  
      28,494,313   
   

 

 

  

Real Estate—0.2%

    

WEA Finance LLC
7.125%, 04/15/18 (144A)

     1,651,000        1,959,336   
   

 

 

  

Real Estate Investment Trusts—1.9%

    

Alexandria Real Estate Equities, Inc.
3.900%, 06/15/23

     811,000        774,278   

4.600%, 04/01/22

     575,000        585,999   

BioMed Realty L.P.
4.250%, 07/15/22

     685,000        673,479   

Corporate Office Properties L.P.
3.600%, 05/15/23 (144A)

     1,100,000        1,015,276   

CubeSmart L.P.
4.800%, 07/15/22

     550,000        570,844   

DDR Corp.
4.625%, 07/15/22

     430,000        434,553   

7.500%, 04/01/17

     1,495,000        1,733,645   

Digital Realty Trust L.P.
4.500%, 07/15/15

     900,000        944,224   

5.875%, 02/01/20

     350,000        381,902   

Goodman Funding Pty, Ltd.
6.000%, 03/22/22 (144A) (a)

     800,000        880,953   

6.375%, 04/15/21 (144A)

     2,450,000        2,743,814   

Healthcare Realty Trust, Inc.
5.750%, 01/15/21

     630,000        682,837   

6.500%, 01/17/17

     1,130,000        1,263,340   

Highwoods Realty L.P.
3.625%, 01/15/23

     1,525,000        1,419,282   

Hospitality Properties Trust
5.000%, 08/15/22

     2,080,000        2,075,632   

7.875%, 08/15/14

     1,535,000        1,596,050   

Mack-Cali Realty L.P.
3.150%, 05/15/23 (a)

     1,000,000        892,737   

4.500%, 04/18/22

     910,000        914,498   

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Real Estate Investment Trusts—(Continued)

  

Piedmont Operating Partnership L.P.
3.400%, 06/01/23 (144A)

     1,880,000      $ 1,711,998   

Sabra Health Care L.P. / Sabra Capital Corp.
8.125%, 11/01/18

     130,000        139,425   

Senior Housing Properties Trust
6.750%, 04/15/20

     2,235,000        2,458,842   
   

 

 

  
      23,893,608   
   

 

 

  

Retail—0.1%

    

CVS Pass-Through Trust
5.773%, 01/10/33 (144A)

     884,958        968,100   
   

 

 

  

Savings & Loans—0.1%

    

Astoria Financial Corp.
5.000%, 06/19/17

     1,700,000        1,786,533   
   

 

 

  

Semiconductors—0.0%

    

KLA-Tencor Corp.
6.900%, 05/01/18

     154,000        179,273   

LDK Solar Co., Ltd.
10.000%, 02/28/14 (CNH)

     2,000,000        95,441   
   

 

 

  
      274,714   
   

 

 

  

Software—0.2%

    

Audatex North America, Inc.
6.000%, 06/15/21

     1,950,000        1,945,125   

First Data Corp.
8.250%, 01/15/21 (144A)

     433,000        441,660   
   

 

 

  
      2,386,785   
   

 

 

  

Telecommunications—2.9%

    

CenturyLink, Inc.
6.450%, 06/15/21 (a)

     700,000        729,750   

7.600%, 09/15/39 (a)

     700,000        665,000   

Cincinnati Bell, Inc.
8.250%, 10/15/17 (a)

     1,442,000        1,503,285   

8.375%, 10/15/20 (a)

     1,408,000        1,446,720   

CommScope, Inc.
8.250%, 01/15/19 (144A)

     680,000        725,900   

Crown Castle Towers LLC
4.883%, 08/15/40 (144A)

     1,600,000        1,720,533   

6.113%, 01/15/20 (144A)

     785,000        900,768   

Digicel, Ltd.
7.000%, 02/15/20 (144A)

     400,000        404,000   

8.250%, 09/01/17 (144A)

     1,350,000        1,404,000   

Frontier Communications Corp.
8.500%, 04/15/20 (a)

     1,175,000        1,295,437   

8.750%, 04/15/22

     1,950,000        2,125,500   

GCI, Inc.
8.625%, 11/15/19

     370,000        379,250   

GTP Acquisition Partners I LLC
7.628%, 06/15/41 (144A)

     1,800,000        1,887,601   

GTP Cellular Sites LLC
3.721%, 03/15/42 (144A)

     598,023        610,476   

Telecommunications—(Continued)

  

GTP Towers Issuer LLC
4.436%, 02/15/40 (144A)

     1,980,000      $ 2,056,622   

Intelsat Jackson Holdings S.A.
8.500%, 11/01/19

     250,000        269,375   

MetroPCS Wireless, Inc.
6.625%, 11/15/20 (a)

     875,000        907,812   

7.875%, 09/01/18

     1,000,000        1,065,000   

Oi S.A.
5.750%, 02/10/22 (144A) (a)

     1,700,000        1,583,125   

PAETEC Holding Corp.
9.875%, 12/01/18 (a)

     500,000        552,500   

Qtel International Finance, Ltd.
6.500%, 06/10/14 (144A) (a)

     1,030,000        1,073,775   

Richland Towers Funding LLC / Management Funding
7.870%, 03/15/41 (144A)

     625,000        668,964   

Telefonica Emisiones S.A.U.
6.221%, 07/03/17

     2,000,000        2,181,010   

Telenet Finance III Luxembourg S.C.A.
6.625%, 02/15/21 (144A) (EUR)

     550,000        731,120   

Unison Ground Lease Funding LLC
2.981%, 03/15/20 (144A)

     1,100,000        1,050,978   

VimpelCom Holdings B.V.
7.504%, 03/01/22 (144A)

     2,500,000        2,587,500   

9.000%, 02/13/18 (144A) (RUB)

     72,000,000        2,158,680   

WCP Wireless Site Funding LLC
6.829%, 11/15/40 (144A)

     750,000        799,538   

Windstream Corp.
6.375%, 08/01/23

     265,000        247,775   

7.750%, 10/15/20

     1,000,000        1,035,000   

8.125%, 09/01/18

     400,000        426,000   
   

 

 

  
      35,192,994   
   

 

 

  

Textiles—0.0%

    

Mohawk Industries, Inc.
3.850%, 02/01/23

     575,000        551,821   
   

 

 

  

Transportation—0.5%

    

Far Eastern Shipping Co.
8.000%, 05/02/18 (144A) (a)

     600,000        553,500   

Golar LNG Partners L.P.
7.040%, 10/12/17 (NOK) (b)

     6,000,000        1,000,107   

Inversiones Alsacia S.A.
8.000%, 08/18/18 (144A)

     1,692,483        1,430,148   

Viterra, Inc.
5.950%, 08/01/20 (144A) (c)

     2,760,000        2,918,222   
   

 

 

  
      5,901,977   
   

 

 

  

Trucking & Leasing—0.2%

    

GATX Corp.
6.000%, 02/15/18

     1,896,000        2,123,588   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $544,556,143)

       556,214,415   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (b)—10.7%

 

Security Description   Principal
Amount*		     Value  

Advertising—0.2%

    

Affinion Group, Inc.
Term Loan
6.500%, 10/10/16

     1,359,999      $ 1,296,079   

inVentiv Health, Inc.
Term Loan
7.500%, 08/04/16

     920,179        906,376   
   

 

 

  
      2,202,455   
   

 

 

  

Aerospace/Defense—0.3%

    

DAE Aviation Holdings, Inc.
Term Loan
6.250%, 10/29/18

     1,446,748        1,453,981   

6.250%, 11/02/18

     655,861        659,140   

Digital Global, Inc.
Term Loan
3.750%, 01/31/20

     949,620        948,433   

DynCorp International LLC
Term Loan
6.250%, 07/07/16

     269,435        271,681   

Hunter Defense Technologies, Inc.
First Lien Term Loan
3.450%, 08/22/14

     535,224        516,491   
   

 

 

  
      3,849,726   
   

 

 

  

Airlines—0.2%

  

Allegiant Travel Co.
Term Loan
5.750%, 03/10/17

     977,500        984,831   

Delta Air Lines, Inc.
Tarm Loan
4.000%, 10/18/18

     997,500        999,460   
   

 

 

  
      1,984,291   
   

 

 

  

Auto Manufacturers—0.3%

  

Chrysler Group LLC
Term Loan
4.250%, 05/24/17

     3,052,700        3,068,925   

HHI Holdings LLC
Term Loan
5.000%, 10/05/18

     538,352        541,940   
   

 

 

  
      3,610,865   
   

 

 

  

Auto Parts & Equipment—0.6%

  

Federal-Mogul Corp.
Term Loan
2.128%, 12/29/14

     562,039        538,554   

2.128%, 12/28/15

     286,755        274,773   

Goodyear Tire & Rubber Co. (The)
Second Lien Term Loan
4.750%, 04/30/19

     750,000        753,551   

Metaldyne Co. LLC
Term Loan
5.000%, 12/18/18

     169,150        170,049   

Auto Parts & Equipment—(Continued)

  

Remy International, Inc.
Term Loan
4.250%, 03/05/20

     618,678      $ 619,451   

TI Automotive Systems LLC
Term Loan
5.500%, 03/27/19

     1,247,424        1,262,243   

Tomkins LLC
Term Loan
3.750%, 09/29/16

     293,822        295,475   

Tower International, Inc.
Term Loan
5.750%, 04/16/20

     2,535,000        2,561,947   

UCI International, Inc.
Term Loan
5.500%, 07/26/17

     975,000        978,861   
   

 

 

  
      7,454,904   
   

 

 

  

Building Products—0.0%

  

Custom Building Products, Inc.
Term Loan
6.000%, 12/12/19

     522,638        524,597   
   

 

 

  

Capital Markets—0.4%

  

Compass Investors, Inc.
Term Loan
5.250%, 12/27/19

     4,586,950        4,614,196   

Ozburn-Hessey Holding Co. LLC
Term Loan
6.750%, 05/20/19

     590,000        587,605   
   

 

 

  
      5,201,801   
   

 

 

  

Chemicals—0.4%

  

Chemtura Corp.
Term Loan
5.380%, 08/27/16

     850,534        856,385   

Huntsman International LLC
Extended Term Loan
2.731%, 04/19/17

     153,156        153,283   

Ineos U.S. Finance LLC
Term Loan
4.000%, 05/04/18

     457,021        448,525   

U.S. Coatings Acquisition, Inc.
Term Loan
4.750%, 02/03/20

     2,334,150        2,337,955   

Univar, Inc.
Term Loan
5.000%, 06/30/17

     1,179,760        1,154,036   
   

 

 

  
      4,950,184   
   

 

 

  

Coal—0.0%

  

Walter Energy, Inc.
Term Loan
5.750%, 04/02/18

     611,362        598,242   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (b)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Services—0.1%

  

Interactive Data Corp.
Term Loan
3.750%, 02/11/18

     1,163,698      $ 1,159,817   

Scitor Corp.
Term Loan
5.000%, 02/15/17

     463,977        454,698   
   

 

 

  
      1,614,515   
   

 

 

  

Commercial Services & Supplies—0.1%

  

WCA Waste Corp.
Term Loan
4.000%, 03/23/18

     656,688        657,098   
   

 

 

  

Computers—0.3%

  

Expert Global Solutions, Inc.
Term Loan
8.500%, 04/03/18

     2,334,317        2,375,751   

TASC, Inc.
Term Loan
4.500%, 12/18/15

     723,915        723,764   
   

 

 

  
      3,099,515   
   

 

 

  

Construction Materials—0.3%

  

Fairmount Minerals, Ltd.
Term Loan
5.250%, 03/15/17

     1,018,750        1,021,042   

Preferred Sands Holdings Co.
Term Loan
9.000%, 12/15/16

     2,876,200        2,735,985   

U.S. Silica Co.
Incremental Term Loan
4.750%, 06/01/17

     367,500        367,271   
   

 

 

  
      4,124,298   
   

 

 

  

Containers & Packaging—0.0%

  

BWAY Corp.
Term Loan
4.500%, 08/07/17

     223,875        225,414   

Reynolds Group Holdings, Inc.
Term Loan
4.750%, 09/28/18

     248,125        249,185   
   

 

 

  
      474,599   
   

 

 

  

Diversified Financial Services—0.2%

  

Ocwen Financial Corp.
Term Loan
5.000%, 02/15/18

     2,783,025        2,805,066   
   

 

 

  

Electric—0.4%

  

AES Corp.
Term Loan
3.750%, 06/01/18

     1,104,519        1,108,733   

Calpine Corp.
Term Loan
4.000%, 04/02/18

     1,202,325        1,202,650   

Electric—(Continued)

    

NRG Energy, Inc.
Term Loan
2.750%, 07/02/18

     906,540      $ 899,270   

NSG Holdings LLC
Term Loan
4.750%, 12/11/19

     699,350        705,469   

Race Point Power
Term Loan
7.750%, 01/11/18

     246,640        248,490   

Texas Competitive Electric Holdings Co. LLC/ TCEH Finance, Inc.
Extended Term Loan
4.720%, 10/10/17

     1,710,495        1,198,099   
   

 

 

  
      5,362,711   
   

 

 

  

Electrical Components & Equipment—0.1%

  

Pelican Products, Inc.
First Lien Delayed Draw Term Loan
7.000%, 07/11/18

     598,950        601,196   
   

 

 

  

Electronics—0.1%

  

Aeroflex, Inc.
Term Loan
4.500%, 11/09/19

     882,435        883,172   

Dealer Computer Services, Inc.
Term Loan
2.195%, 04/21/16

     65,438        65,601   

Flextronics International, Ltd.
Term Loan
2.445%, 10/01/14

     305,250        305,760   
   

 

 

  
      1,254,533   
   

 

 

  

Entertainment—0.1%

  

Pinnacle Entertainment, Inc.
Incremental Term Loan
4.000%, 03/19/19

     790,000        791,777   

Six Flags Theme Parks, Inc.
Term Loan
4.001%, 12/20/18

     707,256        712,119   
   

 

 

  
      1,503,896   
   

 

 

  

Environmental Control—0.1%

  

Synagro Technologies, Inc.
Term Loan
2.193%, 04/02/14

     212,489        209,478   

Waste Industries USA., Inc.
Term Loan
4.000%, 03/17/17

     700,987        702,445   
   

 

 

  
      911,923   
   

 

 

  

Food—0.2%

  

Advance Pierre Foods, Inc.
Term Loan
5.750%, 07/10/17

     224,438        225,700   

 

See accompanying notes to financial statements.

 

MIST-15

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (b)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Food—(Continued)

    

Del Monte Foods Co.
Term Loan
4.000%, 03/08/18

     692,698      $ 691,545   

Pinnacle Foods Finance LLC
Term Loan
3.250%, 04/29/20

     987,525        983,081   
   

 

 

  
      1,900,326   
   

 

 

  

Health Care Providers & Services—0.2%

  

Surgical Care Affiliates LLC
Term Loan
0.000%, 06/29/18 (f)

     2,455,000        2,448,862   
   

 

 

  

Healthcare - Products—0.2%

  

Fresenius U.S. Finance I, Inc.
Term Loan
0.000%, 09/10/14 (f)

     —        0   

Immucor, Inc.
Term Loan
5.000%, 08/17/18

     1,547,595        1,556,106   

MedAssets, Inc.
Term Loan
4.000%, 12/13/19

     353,075        353,370   
   

 

 

  
      1,909,476   
   

 

 

  

Healthcare - Services—1.0%

  

Accentcare, Inc.
Term Loan
6.500%, 12/22/16

     491,021        274,358   

Alliance Healthcare Services, Inc.
Term Loan
0.000%, 06/03/19 (f)

     750,000        751,740   

Ardent Medical Services, Inc.
Term Loan
6.750%, 07/02/18

     427,850        432,131   

Gentiva Health Services, Inc
Term Loan
6.500%, 08/17/16

     2,296,164        2,303,339   

HCA, Inc.
Extended Term Loan
2.945%, 05/01/18

     104,810        104,466   

Term Loan
3.026%, 03/31/17

     251,355        250,492   

Iasis Healthcare LLC
Term Loan
4.500%, 05/03/18

     708,751        708,574   

Kindred Healthcare, Inc.
Term Loan
4.250%, 06/01/18

     1,587,671        1,575,104   

MMM Holdings, Inc.
Term Loan
9.750%, 10/09/17

     496,737        501,704   

MSO of Puerto Rico, Inc.
Term Loan
9.750%, 10/26/17

     361,263        364,876   

Healthcare - Services—(Continued)

  

ON Assignment, Inc.
Term Loan
3.500%, 04/30/20

     894,510      $ 896,000   

Select Medical Corp.
Term Loan
4.002%, 06/01/18

     832,077        832,422   

Truven Health Analytics, Inc.
Term Loan
4.500%, 06/01/19

     1,287,024        1,286,226   

Universal Health Services, Inc.
Term Loan
2.443%, 11/15/16

     505,813        507,457   

Virtual Radiologic Corp.
Term Loan
7.750%, 12/22/16

     1,319,625        877,551   
   

 

 

  
      11,666,440   
   

 

 

  

Home Builders—0.0%

  

Hillman Companies, Inc.
Term Loan
4.250%, 05/29/17

     266,894        267,228   
   

 

 

  

Home Furnishings—0.1%

  

Tempur-Pedic International, Inc.
Term Loan
3.500%, 03/18/20

     1,690,599        1,680,033   
   

 

 

  

Household Products—0.1%

  

Revlon Consumer Products Corp.
Term Loan
4.000%, 11/20/17

     664,796        669,366   

Yankee Candle Co., Inc.
Term Loan
5.250%, 04/02/19

     834,892        837,088   
   

 

 

  
      1,506,454   
   

 

 

  

Independent Power Producers & Energy Traders—0.1%

  

Calpine Construction Finance Co.L.P.
Term Loan
3.000%, 05/04/20

     1,175,000        1,161,294   
   

 

 

  

Industrial Conglomerates—0.1%

  

Mirror BidCo Corp.
Term Loan
5.250%, 12/27/19

     1,223,850        1,226,402   
   

 

 

  

Insurance—0.5%

  

Alliant Holdings I, Inc.
Term Loan
5.000%, 12/20/19

     497,500        498,433   

CNO Financial Group, Inc.
Term Loan
3.750%, 09/20/18

     834,479        831,875   

Confie Seguros Holding II Co.
Term Loan
6.500%, 10/20/18

     3,396,982        3,396,982   

 

See accompanying notes to financial statements.

 

MIST-16

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (b)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Insurance—(Continued)

    

HUB International, Ltd.
Extended Term Loan
3.695%, 06/13/17

     1,030,235      $ 1,033,671   
   

 

 

  
      5,760,961   
   

 

 

  

Internet Software & Services—0.0%

  

Autotrader.com, Inc.
Term Loan
4.000%, 12/15/16

     366,563        369,537   
   

 

 

  

Machinery - Construction & Mining—0.0%

  

Terex Corp.
Term Loan
4.500%, 04/28/17

     317,038        320,471   
   

 

 

  

Media—0.3%

  

Cengage Learning Acquisitions, Inc.
Term Loan
2.700%, 07/03/14

     730,620        547,359   

Charter Communications Operating LLC
Term Loan
3.000%, 01/04/21

     1,125,000        1,117,502   

HMH Holding, Inc.
Term Loan
5.500%, 06/01/18

     409,813        412,204   

Kasima LLC
Term Loan
3.250%, 05/14/21

     478,125        477,527   

WideOpenWest Finance LLC
Term Loan
4.750%, 03/26/19

     563,321        565,903   
   

 

 

  
      3,120,495   
   

 

 

  

Mining—0.2%

    

Novelis, Inc.
Term Loan
3.750%, 03/10/17

     804,384        807,654   

SunCoke Energy, Inc.
Term Loan
4.000%, 07/26/18

     113,752        114,037   

Waupaca Foundry, Inc.
Term Loan
4.792%, 06/29/17

     1,818,215        1,817,460   
   

 

 

  
      2,739,151   
   

 

 

  

Oil & Gas—0.3%

  

Frac Tech International LLC
Term Loan
8.500%, 05/06/16

     636,359        615,146   

Glenn Pool Oil & Gas Trust
Term Loan
4.500%, 05/02/16

     1,445,839        1,453,069   

Samson Investments Co.
Second Lien Term Loan
6.000%, 09/25/18

     2,200,000        2,200,000   
   

 

 

  
      4,268,215   
   

 

 

  

Packaging & Containers—0.2%

  

Exopack LLC
Term Loan
5.000%, 05/31/17

     1,994,911      $ 1,988,687   

Ranpak Corp.
First Lien Term Loan
4.500%, 04/23/19

     535,000        536,337   
   

 

 

  
      2,525,024   
   

 

 

  

Paper & Forest Products—0.2%

  

Appvion, Inc.
Term Loan
0.000%, 06/04/19 (f)

     1,900,000        1,895,250   
   

 

 

  

Pharmaceuticals—0.7%

  

Aptalis Pharma, Inc.
Term Loan
5.500%, 02/10/17

     1,633,125        1,637,208   

Endo Pharmaceuticals Holdings, Inc.
Term Loan
4.000%, 06/18/18

     103,800        103,911   

Grifols, Inc.
Term Loan
4.250%, 06/01/17

     2,531,903        2,546,943   

Par Pharmaceutical Cos., Inc.
Term Loan
4.250%, 09/30/19

     1,503,656        1,496,326   

RPI Finance Trust Incremental
Term Loan
4.000%, 11/09/18

     1,390,701        1,395,054   

Valeant Pharmaceuticals International, Inc.
Term Loan
0.000%, 06/24/20 (f)

     1,375,000        1,354,375   

3.500%, 12/11/19

     398,000        395,638   
   

 

 

  
      8,929,455   
   

 

 

  

Retail—0.3%

    

DineEquity, Inc.
Term Loan
3.750%, 10/19/17

     295,557        296,717   

Dunkin’ Brands Group, Inc.
Term Loan
3.750%, 02/14/20

     1,872,967        1,871,047   

Pilot Travel Centers LLC
Term Loan
3.750%, 03/30/18

     674,858        666,213   

Wendy’s International, Inc.
Term Loan
3.250%, 05/15/19

     798,456        797,746   
   

 

 

  
      3,631,723   
   

 

 

  

Road & Rail—0.1%

    

Swift Transportation Co., Inc.
Term Loan
2.942%, 12/21/16

     895,787        898,402   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-17

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Floating Rate Loans (b)—(Continued)

 

Security Description   Principal
Amount*		     Value  

Semiconductors—0.1%

    

Microsemi Corp.
Term Loan
3.750%, 02/19/20

     761,813      $ 764,034   
   

 

 

  

Software—0.3%

    

Cinedigm Digital Funding I LLC
Term Loan
3.750%, 04/29/16

     342,345        343,201   

First Data Corp.
Extended Term Loan
4.193%, 03/23/18

     372,933        364,490   

Term Loan
4.193%, 03/24/17

     28,291        27,699   

IMS Health, Inc.
Term Loan
3.750%, 09/01/17

     639,894        640,559   

Nuance Communications, Inc.
Term Loan
3.200%, 03/31/16

     726,042        729,154   

Rovi Solutions Corp.
Term Loan
3.500%, 03/29/19

     1,047,375        1,046,066   

Verint Systems, Inc.
Term Loan
4.000%, 09/06/19

     550,620        552,456   

Vertafore, Inc.
First Lien Term Loan
4.250%, 10/02/19

     370,525        372,100   
   

 

 

  
      4,075,725   
   

 

 

  

Telecommunications—0.9%

    

CommScope, Inc.
Term Loan
3.750%, 01/12/18

     620,479        622,936   

MCC Iowa LLC
Term Loan
3.250%, 01/29/21

     960,000        954,720   

Riverbed Technology, Inc.
Term Loan
4.000%, 12/18/19

     2,154,718        2,168,185   

Telesat Canada / Telesat LLC
Term Loan
3.500%, 03/28/19

     2,574,049        2,582,092   

Virgin Media Investment Holdings, Ltd.
Term Loan
3.500%, 06/05/20

     4,285,000        4,246,328   
   

 

 

  
      10,574,261   
   

 

 

  

Trading Companies & Distributors—0.3%

  

WESCO Distribution, Inc.
Term Loan
4.500%, 12/12/19

     3,139,225        3,152,316   
   

 

 

  

Transportation—0.1%

  

CEVA Group plc
Term Loan
5.276%, 08/31/16

     1,126,646      $ 1,085,805   

Swift Transportation Co., Inc.
Term Loan
4.000%, 12/21/17

     328,487        329,993   
   

 

 

  
      1,415,798   
   

 

 

  

Total Floating Rate Loans
(Cost $130,642,439)

       130,993,748   
   

 

 

  
Mortgage-Backed Securities—10.1%   

Collateralized Mortgage Obligations—6.4%

  

Adjustable Rate Mortgage Trust
2.569%, 03/25/35 (b)

     546,026        491,505   

Alternative Loan Trust 2004-8CB
0.463%, 06/25/34 (b)

     360,317        321,600   

American Home Mortgage Investment Trust
2.414%, 06/25/45 (b)

     799,316        797,764   

Banc of America Alternative Loan Trust
5.000%, 07/25/19

     894,503        912,322   

5.250%, 05/25/34

     661,479        672,109   

5.500%, 01/25/20

     681,617        692,612   

5.500%, 09/25/33

     735,588        748,663   

5.750%, 04/25/33

     824,834        894,748   

6.000%, 03/25/34

     1,067,355        1,100,693   

6.000%, 04/25/34

     307,051        302,828   

6.000%, 11/25/34

     184,186        179,835   

Banc of America Funding Corp.
0.324%, 08/26/36 (144A) (b)

     639,399        629,874   

5.500%, 01/25/36

     938,630        920,190   

5.750%, 10/25/35

     49,708        49,337   

Banc of America Mortgage Securities, Inc.
2.697%, 06/25/34 (b)

     225,903        223,702   

3.076%, 09/25/33 (b)

     548,103        544,601   

3.156%, 10/25/33 (b)

     1,272,991        1,261,201   

4.750%, 10/25/20

     36,713        36,813   

5.070%, 09/25/35 (b)

     341,345        335,668   

5.750%, 01/25/35

     1,027,856        1,053,314   

Bayview Opportunity Master Fund Trust IIB L.P.
2.981%, 01/28/33 (144A) (b)

     995,015        1,002,975   

BCAP LLC Trust
2.648%, 12/27/34 (144A) (b)

     273,834        277,792   

2.890%, 06/27/36 (144A) (b)

     120,797        120,956   

Bear Stearns Adjustable Rate Mortgage Trust
4.968%, 02/25/35 (b)

     300,610        300,479   

Bear Stearns ALT-A Trust
0.693%, 03/25/35 (b)

     136,196        131,406   

4.774%, 10/25/33 (b)

     303,873        298,118   

Charlie Mac LLC
5.000%, 10/25/34

     263,112        269,679   

Chase Mortgage Finance Corp.
5.000%, 10/25/33

     82,884        85,667   

 

See accompanying notes to financial statements.

 

MIST-18

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

CHL Mortgage Pass-Through Trust
5.500%, 08/25/35

     784,582      $ 782,581   

Citicorp Mortgage Securities, Inc.
5.000%, 02/25/36

     96,910        99,708   

5.500%, 02/25/22

     63,254        64,441   

Citigroup Mortgage Loan Trust, Inc.
2.633%, 09/25/35 (b)

     467,231        457,762   

Countrywide Alternative Loan Trust
0.593%, 03/25/34 (b)

     148,469        145,433   

4.250%, 09/25/33

     417,747        421,770   

5.000%, 07/25/19

     1,000,000        1,039,829   

5.125%, 03/25/34

     545,898        550,497   

5.250%, 09/25/33

     813,122        841,894   

5.500%, 08/25/34

     932,079        920,081   

5.500%, 01/25/35

     625,254        635,597   

5.500%, 03/25/35

     668,309        587,367   

5.750%, 12/25/33

     914,207        941,805   

5.750%, 03/25/34

     592,221        582,470   

Countrywide Home Loan Mortgage Pass-Through Trust
3.148%, 09/25/33 (b)

     8,776        8,194   

5.500%, 03/25/34

     310,524        318,714   

Credit Suisse First Boston Mortgage Securities Corp.
2.709%, 11/25/33 (b)

     495,755        485,576   

5.000%, 08/25/20

     230,696        234,752   

Credit Suisse Mortgage Capital Certificates
1.195%, 11/26/37 (144A) (b)

     511,190        493,280   

4.021%, 06/25/50 (144A) (b)

     1,750,000        1,714,183   

5.000%, 04/25/37

     195,428        189,457   

Del Coronado Trust
2.143%, 03/15/26 (144A) (b)

     484,000        478,276   

First Horizon Mortgage Pass-Through Trust
5.711%, 10/25/34 (b)

     445,539        439,874   

6.000%, 05/25/36

     70,459        69,810   

GMAC Mortgage Corp. Loan Trust
5.095%, 05/25/35 (b)

     595,373        579,358   

GSR Mortgage Loan Trust
2.828%, 04/25/35 (b)

     1,681,788        1,639,808   

5.250%, 07/25/35 (b)

     998,475        979,955   

5.732%, 02/25/34 (b)

     184,296        179,734   

Impac CMB Trust
0.713%, 04/25/35 (b)

     964,245        852,385   

0.833%, 09/25/34 (b)

     359,389        325,403   

0.913%, 10/25/34 (b)

     389,726        377,758   

0.933%, 11/25/34 (b)

     2,030,032        1,929,502   

0.953%, 01/25/35 (b)

     625,857        567,635   

0.993%, 10/25/34 (b)

     607,329        513,583   

Impac Secured Assets Trust
0.393%, 12/25/36 (b)

     1,030,481        884,235   

0.543%, 05/25/36 (b)

     350,008        342,059   

0.543%, 08/25/36 (b)

     441,843        415,876   

Jefferies Resecuritization Trust
2.726%, 05/26/37 (144A) (b)

     271,469        273,436   

JPMorgan Mortgage Trust
2.351%, 07/25/35 (b)

     337,082        331,952   

Collateralized Mortgage Obligations—(Continued)

  

JPMorgan Mortgage Trust
3.500%, 05/25/43 (144A) (b)

     720,870      $ 704,249   

3.737%, 05/25/43 (144A) (b)

     672,002        647,314   

6.000%, 09/25/34

     835,681        857,947   

MASTR Alternative Loans Trust
5.500%, 10/25/19

     643,940        661,627   

5.500%, 02/25/35

     978,532        976,938   

5.991%, 01/25/35 (b)

     361,882        374,448   

6.000%, 07/25/34

     1,467,367        1,506,983   

MASTR Seasoned Securities Trust
6.592%, 09/25/32 (b)

     518,868        543,633   

Merrill Lynch Mortgage Investors Trust
2.540%, 02/25/35 (b)

     1,506,253        1,505,519   

MLCC Mortgage Investors Trust
0.653%, 03/25/30 (b)

     715,799        669,736   

MLCC Mortgage Investors, Inc.
2.440%, 10/25/35 (b)

     255,201        253,298   

Morgan Stanley Re-REMIC Trust
5.000%, 11/26/36 (144A)

     2,100,000        2,142,171   

MortgageIT Trust
0.973%, 11/25/34 (b)

     1,422,962        1,352,853   

PHH Mortgage Capital LLC
6.600%, 12/25/27 (144A)

     516,351        518,091   

RESI Finance L.P.
1.593%, 09/10/35 (144A) (b)

     900,517        792,640   

Residential Accredit Loans, Inc. Trust
0.793%, 04/25/34 (b)

     303,967        291,737   

4.750%, 04/25/34

     463,299        479,986   

5.000%, 03/25/19

     118,915        123,771   

5.500%, 09/25/32

     207,123        211,797   

5.500%, 12/25/34

     735,026        755,431   

5.750%, 04/25/34

     450,000        449,974   

Residential Asset Securitization Trust
0.643%, 10/25/34 (b)

     554,531        489,938   

5.500%, 02/25/35

     328,216        333,975   

5.500%, 07/25/35

     699,577        682,061   

RFMSI Series 2005-S5 Trust
5.250%, 07/25/35

     906,961        913,172   

Sequoia Mortgage Trust
0.392%, 05/20/35 (b)

     880,267        781,118   

0.412%, 03/20/35 (b)

     387,886        355,401   

0.812%, 09/20/33 (b)

     329,309        322,326   

3.000%, 06/25/43 (b)

     608,716        574,697   

Sequoia Mortgage Trust (CMO)
3.000%, 06/25/43 (b)

     665,000        627,126   

Spirit Master Funding LLC
5.740%, 03/20/25 (144A)

     181,936        178,176   

Springleaf Mortgage Loan Trust
5.300%, 12/25/59 (144A) (b)

     175,000        181,908   

Structured Adjustable Rate Mortgage Loan Trust
2.499%, 03/25/34 (b)

     1,091,873        1,071,310   

2.561%, 07/25/34 (b)

     551,486        541,028   

2.637%, 02/25/34 (b)

     339,650        331,661   

2.975%, 03/25/34 (b)

     212,880        204,929   

 

See accompanying notes to financial statements.

 

MIST-19

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

Structured Asset Mortgage Investments Trust
0.932%, 12/19/33 (b)

     1,026,276      $ 944,934   

Structured Asset Securities Corp.
0.843%, 10/25/37 (144A) (b)

     997,771        987,793   

2.615%, 06/25/33 (b)

     672,437        663,429   

2.696%, 10/25/33 (b)

     959,913        956,870   

6.000%, 08/25/35

     382,592        362,964   

Thornburg Mortgage Securities Trust
1.798%, 03/25/44 (b)

     937,300        922,159   

2.725%, 06/25/43 (b)

     769,072        755,599   

4.095%, 03/25/44 (b)

     807,972        804,401   

Vericrest Opportunity Loan Transferee
2.487%, 02/26/52 (144A)

     977,582        979,420   

3.222%, 05/27/53 (144A)

     294,608        294,869   

WaMu Mortgage Pass-Through Certificates
0.578%, 10/25/44 (b)

     123,046        111,544   

2.428%, 08/25/34 (b)

     116,431        113,821   

2.436%, 01/25/35 (b)

     3,409,391        3,415,917   

2.450%, 08/25/35 (b)

     854,383        820,248   

Wells Fargo Mortgage Backed Securities Trust
2.628%, 03/25/36 (b)

     1,290,997        1,269,021   

2.636%, 06/25/35 (b)

     722,060        703,951   

2.646%, 10/25/34 (b)

     402,519        404,833   

4.997%, 04/25/35 (b)

     99,751        100,350   

5.250%, 10/25/35

     521,180        534,531   

5.500%, 10/25/35

     317,391        318,341   

5.750%, 03/25/36

     1,946,013        1,897,456   
   

 

 

  
      78,123,901   
   

 

 

  

Commercial Mortgage-Backed Securities—3.7%

  

A10 Securitization LLC
2.400%, 11/15/25 (144A)

     1,300,000        1,288,438   

Bayview Commercial Asset Trust
3.890%, 09/25/37 (144A) (g)

     9,775,739        900,346   

4.695%, 07/25/37 (144A) (g)

     6,781,997        339,100   

Bear Stearns Commercial Mortgage Securities Trust
7.638%, 10/15/36 (144A) (b)

     650,591        673,091   

Commercial Mortgage Pass-Through Certificates
0.323%, 12/15/20 (144A) (b)

     366,664        358,419   

0.373%, 06/15/22 (144A) (b)

     862,190        855,026   

2.436%, 10/15/45

     690,000        656,538   

2.822%, 11/15/45

     450,000        417,885   

2.941%, 01/10/46

     1,350,000        1,256,900   

3.147%, 08/15/45

     550,000        525,894   

3.553%, 07/17/28 (144A) (b)

     178,994        180,617   

4.934%, 12/10/44 (b)

     300,000        310,593   

6.850%, 08/15/33 (144A) (b)

     54,745        53,524   

DBUBS Mortgage Trust
5.577%, 08/10/44 (144A) (b)

     1,400,000        1,504,779   

5.728%, 11/10/46 (144A) (b)

     600,000        637,853   

FREMF Mortgage Trust
3.310%, 03/25/45 (144A) (b)

     700,000        652,056   

3.612%, 11/25/46 (144A) (b)

     800,000        797,215   

Commercial Mortgage-Backed Securities—(Continued)

  

FREMF Mortgage Trust
3.949%, 06/25/47 (144A) (b)

     420,000      $ 379,101   

4.019%, 01/25/47 (144A) (b)

     1,200,000        1,100,641   

4.176%, 05/25/45 (144A) (b)

     988,000        819,088   

4.436%, 07/25/48 (144A) (b)

     1,825,000        1,800,705   

4.495%, 01/25/46 (144A) (b)

     765,000        749,132   

4.756%, 11/25/49 (144A) (b)

     1,050,000        1,041,522   

5.051%, 07/25/44 (144A) (b)

     900,000        935,573   

5.330%, 09/25/45 (144A) (b)

     900,000        931,817   

5.333%, 02/25/47 (144A) (b)

     400,000        410,992   

5.405%, 09/25/43 (144A) (b)

     400,000        416,228   

5.619%, 04/25/20 (144A) (b)

     600,000        632,999   

GE Business Loan Trust
0.363%, 04/16/35 (144A) (b)

     569,084        527,825   

GMAC Commercial Mortgage Securities, Inc.
5.307%, 04/10/40 (b)

     450,000        455,218   

5.310%, 05/10/36 (144A) (b)

     792,000        793,443   

5.653%, 05/10/40 (144A) (b)

     425,000        421,093   

GS Mortgage Securities Corp. II
2.202%, 03/06/20 (144A) (b)

     500,000        501,704   

3.377%, 05/10/45

     1,000,000        985,614   

3.682%, 02/10/46 (144A)

     750,000        686,908   

4.209%, 02/10/21 (144A)

     850,000        858,755   

4.782%, 07/10/39

     244,887        243,744   

5.560%, 11/10/39

     800,000        885,998   

Irvine Core Office Trust
3.305%, 05/15/48 (144A) (b)

     1,250,000        1,176,785   

JP Morgan Chase Commercial Mortgage Securities Trust
1.993%, 04/15/28 (144A) (b)

     1,100,000        1,077,529   

JPMorgan Chase Commercial Mortgage Securities Trust
0.553%, 11/15/18 (144A) (b)

     602,399        568,128   

0.568%, 07/15/19 (144A) (b)

     98,486        95,851   

3.616%, 11/15/43 (144A)

     1,000,000        1,055,513   

3.977%, 10/15/45 (144A) (b)

     700,000        670,067   

4.650%, 07/15/28 (144A) (b)

     850,000        850,698   

5.710%, 11/15/43 (144A) (b)

     300,000        318,152   

LB-UBS Commercial Mortgage Trust
5.616%, 10/15/35 (144A) (b)

     1,152,555        1,149,601   

Lehman Brothers Floating Rate Commercial Mortgage Trust
0.893%, 06/15/22 (144A) (b)

     354,970        354,970   

1.093%, 06/15/22 (144A) (b)

     800,000        797,744   

Lehman Brothers Small Balance Commercial
0.443%, 02/25/30 (144A) (b)

     1,205,043        1,036,337   

0.443%, 09/25/30 (144A) (b)

     486,172        422,581   

Lehman Brothers Small Balance Commercial Mortgage Trust
0.393%, 09/25/36 (144A) (b)

     404,164        320,207   

1.043%, 10/25/37 (144A) (b)

     51,273        51,054   

1.143%, 10/25/37 (144A) (b)

     300,161        297,989   

5.410%, 12/25/36 (144A) (b)

     7,802        7,824   

LSTAR Commercial Mortgage Trust
5.519%, 06/25/43 (144A) (b)

     942,000        997,174   

 

See accompanying notes to financial statements.

 

MIST-20

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Commercial Mortgage-Backed Securities—(Continued)

  

Merrill Lynch Financial Assets, Inc.
4.711%, 03/12/49 (CAD) (b)

     98,770      $ 98,922   

Merrill Lynch Mortgage Trust
5.334%, 11/12/35 (b)

     750,000        758,677   

Morgan Stanley Capital I Trust
5.406%, 03/15/44

     62,000        66,424   

5.569%, 12/15/44

     750,000        812,722   

NorthStar 2012-1 Mortgage Trust
4.438%, 08/25/29 (144A) (b)

     800,000        799,940   

S2 Hospitality LLC
4.500%, 04/15/25 (144A) (e)

     189,980        189,757   

Timberstar Trust
5.668%, 10/15/36 (144A)

     540,000        604,268   

7.530%, 10/15/36 (144A)

     1,549,000        1,575,982   

Wells Fargo Commercial Mortgage Trust
5.771%, 11/15/43 (144A) (b)

     950,000        1,007,675   

WF-RBS Commercial Mortgage Trust
5.392%, 02/15/44 (144A) (b)

     250,000        260,312   

5.417%, 06/15/44 (144A) (b)

     400,000        394,471   

WFDB Commercial Mortgage Trust
5.914%, 07/05/24 (144A)

     1,000,000        1,012,470   
   

 

 

  
      45,816,198   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $121,669,877)

       123,940,099   
   

 

 

  
Foreign Government—7.2%   

Municipal—0.3%

  

Brazil Minas SPE via State of Minas Gerais 5.333%, 02/15/28 (144A) (a)

     3,000,000        2,910,000   

Province of Salta Argentina
9.500%, 03/16/22 (144A)

     900,000        774,336   
   

 

 

  
      3,684,336   
   

 

 

  

Provincial—0.4%

  

Queensland Treasury Corp.
5.750%, 07/22/24 (AUD)

     3,000,000        2,942,397   

6.000%, 08/14/13 (AUD)

     138,000        126,694   

6.000%, 07/21/22 (AUD)

     2,500,000        2,515,511   
   

 

 

  
      5,584,602   
   

 

 

  

Sovereign—6.5%

  

Brazilian Government International Bond 10.250%, 01/10/28 (BRL)

     3,250,000        1,492,930   

Canada Housing Trust No. 1
3.350%, 12/15/20 (144A) (CAD)

     350,000        349,913   

3.750%, 03/15/20 (144A) (CAD)

     7,675,000        7,872,768   

Croatia Government International Bond
5.500%, 04/04/23 (144A) (a)

     1,300,000        1,261,000   

Ghana Government International Bond
19.240%, 05/30/16 (GHS)

     3,200,000        1,531,876   

Indonesia Recapitalization Bond
14.275%, 12/15/13 (IDR)

     4,350,000,000        453,516   

Sovereign—(Continued)

  

Indonesia Treasury Bonds
6.125%, 05/15/28 (IDR)

     4,898,000,000      $ 427,355   

7.000%, 05/15/22 (IDR)

     4,500,000,000        448,191   

7.000%, 05/15/27 (IDR)

     4,400,000,000        416,816   

8.250%, 06/15/32 (IDR)

     32,495,000,000        3,405,764   

9.000%, 09/15/13 (IDR)

     1,900,000,000        192,260   

Ireland Government Bonds
4.500%, 04/18/20 (EUR)

     1,825,000        2,480,071   

5.000%, 10/18/20 (EUR)

     1,820,000        2,538,386   

Italy Buoni Poliennali Del Tesoro
4.750%, 08/01/23 (EUR)

     1,950,000        2,613,145   

Malaysia Government Bond
3.418%, 08/15/22 (MYR)

     8,800,000        2,735,473   

Mexican Bonos
6.500%, 06/09/22 (MXN)

     88,230,000        7,157,100   

7.500%, 06/03/27 (MXN)

     59,000,000        5,099,719   

Mexican Udibonos
2.000%, 06/09/22 (MXN)

     1,825,876        138,749   

3.500%, 12/14/17 (MXN)

     18,964,909        1,578,655   

Nigeria Government Bond
16.000%, 06/29/19 (NGN)

     423,000,000        2,793,054   

Nigeria Treasury Bill
Zero Coupon, 02/06/14 (NGN) (h)

     352,000,000        2,003,539   

Norway Government Bond
2.000%, 05/24/23 (NOK)

     10,000,000        1,569,024   

Norwegian Government Bonds
4.250%, 05/19/17 (NOK)

     19,440,000        3,505,079   

4.500%, 05/22/19 (NOK)

     14,950,000        2,793,673   

5.000%, 05/15/15 (NOK)

     9,150,000        1,604,396   

Philippine Government Bonds
5.875%, 03/01/32 (PHP)

     154,350,000        3,931,588   

7.625%, 09/29/36 (PHP)

     63,060,000        1,933,802   

8.000%, 07/19/31 (PHP)

     15,800,000        497,944   

Romania Government Bonds
5.850%, 04/26/23 (RON)

     14,070,000        4,167,695   

5.900%, 07/26/17 (RON)

     4,920,000        1,440,420   

Russian Federal Bond - OFZ
7.500%, 03/15/18 (RUB)

     84,000,000        2,636,531   

Russian Foreign Bond - Eurobond
7.500%, 03/31/30 (144A) (i)

     892,138        1,044,916   

Sri Lanka Government International Bond
5.875%, 07/25/22 (144A)

     650,000        614,250   

Turkey Government Bond
10.500%, 01/15/20 (TRY)

     4,855,000        2,799,170   

Ukraine Government International Bonds
6.750%, 11/14/17 (144A)

     300,000        274,500   

7.500%, 04/17/23 (144A) (a)

     300,000        263,250   

7.800%, 11/28/22 (144A) (a)

     700,000        624,750   

9.250%, 07/24/17 (144A)

     2,850,000        2,842,875   
   

 

 

  
      79,534,143   
   

 

 

  

Total Foreign Government
(Cost $90,815,488)

       88,803,081   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-21

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Municipals—6.0%

 

Security Description   Principal
Amount*		     Value  

Baylor University
4.313%, 03/01/42

     800,000      $ 755,496   

Brazos River Harbor, TX Navigation District Revenue Bonds Dow Chemical Co. Project
5.950%, 05/15/33 (b)

     3,360,000        3,557,366   

Butler AL, Industrial Development Board Solid Waste Disposal Revenue Georgia-Pacific Corp. Project
5.750%, 09/01/28

     625,000        649,175   

California Educational Facilities Authority Revenue
5.000%, 06/01/43

     1,470,000        1,722,193   

Charleston SC, Waterworks & Sewer Revenue Capital Improvement
5.000%, 01/01/35

     350,000        377,405   

5.000%, 01/01/41

     1,975,000        2,105,745   

Charlotte Special Facilities Revenue Refunding Charlotte / Douglas International Airport
5.600%, 07/01/27

     1,000,000        945,020   

Connecticut State Health & Educational, Facility Authority Revenue, Yale University
5.000%, 07/01/40

     2,000,000        2,112,900   

5.000%, 07/01/42

     1,451,000        1,511,100   

Gulf Coast Waste Disposal Authority
5.200%, 05/01/28

     945,000        945,728   

Hampton Roads Sanitation District VA, Wastewater Revenue
5.000%, 04/01/38

     550,000        587,983   

Harris County, TX Metropolitan Transit Authority, Sales & Use Tax
5.000%, 11/01/41

     1,200,000        1,253,076   

Houston TX, Higher Education Finance Corp. Revenue Rice University Project
4.500%, 11/15/37

     1,700,000        1,739,151   

5.000%, 05/15/40

     1,000,000        1,071,880   

Illinois Finance Authority
5.000%, 10/01/51

     800,000        828,920   

Indianapolis Airport Authority Federal Express Corp. Project
5.100%, 01/15/17

     660,000        727,082   

JobsOhio Beverage System
3.985%, 01/01/29

     2,990,000        2,858,530   

4.532%, 01/01/35

     760,000        716,186   

Louisiana Local Government Environmental Facilities Community Development Authority Revenue Westlake Chemical Corp. Projects
6.750%, 11/01/32

     1,550,000        1,664,219   

Massachusetts State Development Finance Agency Revenue Board Institute, Inc.
5.250%, 04/01/37

     1,350,000        1,427,247   

5.375%, 04/01/41

     400,000        424,792   

Massachusetts State Development Finance Agency Revenue Harvard University
5.000%, 10/15/40

     800,000      $ 866,888   

Massachusetts State Health & Educational Facilities Authority Revenue Harvard University
5.500%, 11/15/36

     4,300,000        4,833,587   

Massachusetts State Health & Educational Facilities Authority Revenue Massachusetts Institute of Technology
5.500%, 07/01/32

     950,000        1,178,855   

6.000%, 07/01/36

     675,000        785,970   

Missouri State Health & Educational Facilities Authority Revenue Washington University
5.000%, 11/15/39

     1,900,000        2,057,928   

New Hampshire Health & Educational Facilities Authority Revenue, Wentworth Douglas Hospital
6.500%, 01/01/41

     600,000        673,194   

New Jersey Economic Development Authority Lease Revenue
Zero Coupon, 02/15/18 (AGM)

     3,400,000        2,951,812   

New Jersey Economic Development Authority Special Facilities Revenue, Continental Airlines, Inc. Project
7.000%, 11/15/30 (b)

     117,000        116,732   

New Jersey State Transportation Trust Fund Authority Transportation Systems
5.500%, 06/15/41

     2,000,000        2,192,540   

New York City Transitional Finance Authority Revenue Future Tax Secured
5.000%, 11/01/33

     300,000        324,018   

New York State Dormitory Authority Revenues Non State Supported Debt, Columbia University
5.000%, 07/01/38

     2,500,000        2,735,175   

5.000%, 10/01/41

     2,040,000        2,214,196   

New York State Dormitory Authority Revenues Non State Supported Debt, Cornell University
5.000%, 07/01/35

     175,000        188,237   

5.000%, 07/01/40

     1,200,000        1,250,280   

Port Authority of New York & New Jersey
4.458%, 10/01/62

     460,000        410,633   

Port of Corpus Christi Authority TX Celanese Project
6.700%, 11/01/30

     1,500,000        1,508,535   

San Francisco CA Public Utilities Commission Water Revenue
5.000%, 11/01/37

     2,470,000        2,595,748   

Selma AL, Industrial Development Board Revenue Gulf Opportunity Zone, International Paper Co. Projects
6.250%, 11/01/33

     800,000        868,952   

 

See accompanying notes to financial statements.

 

MIST-22

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Municipals—(Continued)

 

Security Description   Principal
Amount*		     Value  

South Carolina State Public Service Authority
5.000%, 12/01/43

     3,100,000      $ 3,228,805   

St. John Baptist Parish LA, Revenue Bond Marathon Oil Corp.
5.125%, 06/01/37

     1,710,000        1,716,823   

State of California
3.380%, 05/15/28

     1,200,000        1,085,808   

State of Florida
4.000%, 06/01/27

     1,375,000        1,393,507   

State of Virginia
5.000%, 06/01/43

     900,000        981,477   

State of Washington
3.000%, 07/01/28

     450,000        384,791   

Sweetwater County WY, Solid Waste Disposal Revenue FMC Corp. Project
5.600%, 12/01/35

     1,670,000        1,772,621   

Tarrant Regional Water District
5.000%, 03/01/52

     1,300,000        1,351,792   

Texas A&M University Permanent University Fund
5.000%, 07/01/30

     530,000        593,526   

Texas Brazos Harbor Industrial Development Corp., Environmental Facilities Revenue Dow Chemical Project.
5.900%, 05/01/38 (b)

     1,505,000        1,580,099   

Texas Municipal Gas Acquisition & Supply Corp. III
5.000%, 12/15/30

     750,000        748,253   

5.000%, 12/15/31

     1,550,000        1,540,731   

University of Texas System
5.000%, 08/15/43

     395,000        426,790   

Washington State General Obligation Unlimited, Motor Vehicle Fuel Taxable
5.000%, 08/01/39

     1,050,000        1,112,906   

Wisconsin State General Reserve
5.750%, 05/01/33

     134,000        153,254   

Yavapai County AZ, Industrial Development Authority Solid Waste Disposal Revenue Waste Management, Inc. Project
4.900%, 03/01/28

     300,000        291,426   
   

 

 

  

Total Municipals
(Cost $72,063,915)

       74,097,083   
   

 

 

  
U.S. Treasury & Government Agencies—5.5%   

Agency Sponsored Mortgage-Backed—2.3%

  

Fannie Mae 15 Yr. Pool
4.000%, 07/01/18

     244,459        258,244   

5.000%, 02/01/20

     113,193        121,680   

5.000%, 10/01/20

     554,271        594,573   

5.000%, 12/01/21

     49,257        52,814   

5.000%, 02/01/22

     21,100        22,622   

5.000%, 06/01/22

     48,479        51,984   

5.000%, 09/01/22

     360,550        384,199   

5.000%, 07/01/23

     349,850        375,189   

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 20 Yr. Pool
5.500%, 03/01/25

     159,228      $ 174,523   

Fannie Mae 30 Yr. Pool
3.500%, 11/01/40

     3,833,501        3,896,766   

3.500%, 12/01/42

     1,213,628        1,235,208   

4.000%, 12/01/41

     1,083,364        1,130,193   

4.000%, 01/01/42

     893,406        932,342   

4.000%, 12/01/42

     255,336        266,259   

4.500%, 03/01/35

     98,242        103,909   

4.500%, 07/01/35

     240,357        254,222   

4.500%, 05/01/41

     419,331        444,619   

4.500%, 11/01/41

     736,664        780,091   

4.500%, 12/01/41

     165,665        175,655   

5.000%, 06/01/40

     502,358        548,056   

5.000%, 07/01/40

     448,667        488,321   

6.000%, 03/01/32

     1,018        1,135   

6.000%, 07/01/37

     108,967        118,420   

6.000%, 07/01/38

     863,289        938,251   

6.500%, 07/01/31

     384        442   

6.500%, 10/01/31

     648        746   

6.500%, 02/01/32

     689        771   

6.500%, 12/01/36

     4,188        4,820   

6.500%, 03/01/37

     88,657        102,040   

6.500%, 10/01/37

     82,051        89,884   

7.000%, 09/01/29

     400        468   

7.500%, 01/01/30

     1,009        1,187   

7.500%, 10/01/30

     108        124   

Fannie Mae Pool
4.000%, 01/01/42

     208,027        217,019   

4.000%, 04/01/42

     1,576,638        1,646,886   

Fannie Mae REMICS (CMO)
3.500%, 01/25/29 (g)

     498,180        34,839   

4.500%, 06/25/29

     800,000        871,520   

5.000%, 09/25/39

     161,609        164,497   

Freddie Mac 15 Yr. Gold Pool
4.500%, 11/01/18

     124,229        133,242   

5.000%, 12/01/21

     182,041        194,987   

5.500%, 10/01/16

     1,746        1,853   

6.000%, 06/01/17

     20,485        21,753   

Freddie Mac 30 Yr. Gold Pool
3.500%, 10/01/40

     922,776        935,986   

5.000%, 05/01/34

     336,308        360,432   

5.000%, 06/01/35

     122,486        130,983   

5.000%, 05/01/37

     663,795        707,689   

5.000%, 09/01/38

     30,238        32,237   

5.000%, 10/01/38

     282,837        301,537   

5.000%, 11/01/39

     2,020,340        2,191,988   

5.000%, 12/01/39

     433,139        479,730   

6.000%, 06/01/35

     59,646        65,366   

6.000%, 12/01/36

     61,467        66,758   

Freddie Mac REMICS (CMO)
5.000%, 06/15/34

     768,885        792,300   

Ginnie Mae I 15 Yr. Pool
5.000%, 10/15/18

     151,660        163,555   

5.500%, 08/15/19

     49,954        53,286   

5.500%, 10/15/19

     242,979        258,642   

 

See accompanying notes to financial statements.

 

MIST-23

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Ginnie Mae I 15 Yr. Pool
6.000%, 05/15/17

     2,192      $ 2,373   

6.000%, 06/15/17

     2,148        2,264   

6.000%, 08/15/19

     16,608        17,892   

Ginnie Mae I 30 Yr. Pool
4.500%, 09/15/33

     178,525        190,854   

4.500%, 05/15/34

     322,488        348,947   

4.500%, 12/15/34

     115,551        123,199   

4.500% ,04/15/35

     401,703        430,175   

4.500%, 09/15/35

     85,881        91,463   

4.500%, 10/15/35

     175,349        186,746   

4.500%, 08/15/41

     1,135,032        1,206,805   

5.000%, 04/15/35

     17,650        19,464   

5.500%, 01/15/34

     127,836        141,358   

5.500%, 04/15/34

     53,571        59,043   

5.500%, 07/15/34

     261,717        287,898   

5.500%, 10/15/34

     186,214        204,226   

5.500%, 06/15/35

     62,924        68,836   

5.500%, 11/15/35

     86,298        94,550   

5.750%, 10/15/38

     244,941        267,117   

6.000%, 02/15/24

     2,699        2,996   

6.000%, 11/15/28

     2,335        2,609   

6.000%, 02/15/33

     3,985        4,462   

6.000%, 03/15/33

     15,489        17,373   

6.000%, 06/15/33

     13,723        15,397   

6.000%, 07/15/33

     11,847        13,295   

6.000%, 09/15/33

     16,991        19,092   

6.000%, 10/15/33

     8,154        9,140   

6.000%, 08/15/34

     52,206        58,433   

6.500%, 03/15/29

     4,920        5,498   

6.500%, 02/15/32

     2,506        2,811   

6.500%, 03/15/32

     2,456        2,840   

6.500%, 11/15/32

     6,336        6,914   

7.000%, 05/15/23

     3,110        3,572   

7.000%, 03/15/31

     576        673   

Ginnie Mae II 30 Yr. Pool
4.500%, 09/20/41

     1,051,772        1,133,538   

5.000%, 08/20/34

     180,934        197,446   

5.500%, 03/20/34

     19,919        21,826   

6.000%, 05/20/32

     29,338        32,834   

6.000%, 11/20/33

     34,354        39,822   
   

 

 

  
      28,710,623   
   

 

 

  

Federal Agencies—0.7%

  

Government National Mortgage Association
0.854%, 03/16/51 (b) (g)

     5,219,086        203,962   

1.031%, 02/16/53 (b) (g)

     9,345,341        797,597   

1.051%, 03/16/53 (b) (g)

     6,290,592        517,754   

1.068%, 09/16/52 (b) (g)

     9,522,162        848,958   

1.096%, 08/16/52 (b) (g)

     9,816,010        741,609   

1.151%, 10/16/52 (b) (g)

     5,026,713        271,649   

1.221%, 04/16/51 (b) (g)

     3,383,443        185,480   

1.586%, 10/16/43 (b) (g)

     7,601,478        469,893   

4.973%, 04/16/42

     300,000        329,222   

Federal Agencies—(Continued)

  

Government National Mortgage Association (CMO)
3.000%, 04/20/41

     1,458,113      $ 1,498,170   

4.500%, 09/20/39

     2,235,000        2,446,348   
   

 

 

  
      8,310,642   
   

 

 

  

U.S. Treasury—2.5%

  

U.S. Treasury Bonds
4.250%, 05/15/39

     3,110,000        3,575,530   

4.375%, 02/15/38

     1,727,000        2,022,210   

4.375%, 11/15/39

     455,000        533,346   

4.500%, 02/15/36

     1,610,000        1,917,157   

4.500%, 05/15/38 (a)

     4,704,000        5,612,460   

4.500%, 08/15/39

     8,590,000        10,270,419   

5.000%, 05/15/37

     289,000        368,881   

5.375%, 02/15/31 (a)

     1,750,000        2,279,648   

6.250%, 08/15/23

     87,000        116,743   

U.S. Treasury Notes
3.125%, 05/15/19

     3,500,000        3,798,319   
   

 

 

  
      30,494,713   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $63,730,567)

       67,515,978   
   

 

 

  
Convertible Bonds—4.9%   

Biotechnology—0.2%

    

Cubist Pharmaceuticals, Inc.
2.500%, 11/01/17 (a)

     800,000        1,401,500   

PDL BioPharma, Inc.
3.750%, 05/01/15

     1,050,000        1,295,437   
   

 

 

  
      2,696,937   
   

 

 

  

Coal—0.2%

    

Alpha Appalachia Holdings, Inc.
3.250%, 08/01/15 (a)

     224,000        202,720   

Alpha Natural Resources, Inc.
3.750%, 12/15/17

     1,425,000        1,211,250   

James River Coal Co.
10.000%, 06/01/18 (144A)

     895,000        581,750   
   

 

 

  
      1,995,720   
   

 

 

  

Computers—0.4%

  

Mentor Graphics Corp.
4.000%, 04/01/31

     2,213,000        2,691,561   

SanDisk Corp.
1.500%, 08/15/17

     1,365,000        1,819,716   
   

 

 

  
      4,511,277   
   

 

 

  

Electrical Components & Equipment—0.2%

  

General Cable Corp.
4.500%, 11/15/29 (j)

     2,420,000        2,668,050   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-24

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Convertible Bonds—(Continued)

 

Security Description   Principal
Amount*		     Value  

Electronics—0.2%

    

Vishay Intertechnology, Inc.
2.250%, 05/15/41 (144A) (a)

     2,545,000      $ 2,279,366   
   

 

 

  

Forest Products & Paper—0.0%

    

Sino-Forest Corp.
4.250%, 12/15/16 (e)

     1,246,000        62   

5.000%, 08/01/13 (e)

     500,000        2,500   
   

 

 

  
      2,562   
   

 

 

  

Healthcare - Products—0.7%

    

Hologic, Inc.
2.000%, 12/15/37 (j)

     3,000,000        3,343,125   

2.000%, 03/01/42 (a) (j)

     1,400,000        1,385,125   

NuVasive, Inc.
2.750%, 07/01/17 (a)

     3,680,000        3,629,400   
   

 

 

  
      8,357,650   
   

 

 

  

Healthcare - Services—0.4%

  

WellPoint, Inc.
2.750%, 10/15/42 (144A)

     4,100,000        5,104,500   
   

 

 

  

Home Builders—0.1%

  

KB Home
1.375%, 02/01/19

     1,275,000        1,322,812   

Ryland Group, Inc. (The)
0.250%, 06/01/19

     645,000        582,113   
   

 

 

  
      1,904,925   
   

 

 

  

Insurance—0.1%

  

Fidelity National Financial, Inc.
4.250%, 08/15/18

     850,000        1,115,094   
   

 

 

  

Internet—0.2%

  

priceline.com, Inc.
0.350%, 06/15/20 (144A)

     2,000,000        1,881,250   

WebMD Health Corp.
2.250%, 03/31/16

     800,000        784,000   

2.500%, 01/31/18 (a)

     485,000        448,625   
   

 

 

  
      3,113,875   
   

 

 

  

Mining—0.2%

  

Vedanta Resources Jersey, Ltd.
5.500%, 07/13/16

     2,200,000        2,215,400   
   

 

 

  

Oil & Gas—0.4%

  

Chesapeake Energy Corp.
2.250%, 12/15/38

     1,250,000        1,095,313   

2.500%, 05/15/37 (a)

     360,000        339,075   

Cobalt International Energy, Inc.
2.625%, 12/01/19 (a)

     2,890,000        3,065,206   
   

 

 

  
      4,499,594   
   

 

 

  

Pharmaceuticals—0.2%

  

Omnicare, Inc.
3.250%, 12/15/35

     568,000        585,040   

Pharmaceuticals—(Continued)

    

Salix Pharmaceuticals, Ltd.
1.500%, 03/15/19

     1,205,000      $ 1,437,716   
   

 

 

  
      2,022,756   
   

 

 

  

Semiconductors—1.2%

  

Intel Corp.
2.950%, 12/15/35 (a)

     4,130,000        4,493,956   

3.250%, 08/01/39 (a)

     904,000        1,152,035   

Lam Research Corp.
1.250%, 05/15/18 (a)

     2,199,000        2,439,516   

Novellus Systems, Inc.
2.625%, 05/15/41

     3,110,000        4,383,156   

Xilinx, Inc.
3.125%, 03/15/37

     1,850,000        2,553,000   
   

 

 

  
      15,021,663   
   

 

 

  

Software—0.1%

  

Nuance Communications, Inc.
2.750%, 11/01/31 (a)

     1,745,000        1,797,350   
   

 

 

  

Transportation—0.0%

  

Golar LNG, Ltd.
3.750%, 03/07/17

     300,000        286,590   
   

 

 

  

Trucking & Leasing—0.1%

  

Greenbrier Cos., Inc.
3.500%, 04/01/18

     930,000        955,575   
   

 

 

  

Total Convertible Bonds
(Cost $53,596,208)

       60,548,884   
   

 

 

  
Asset-Backed Securities—4.2%   

Asset-Backed - Automobile—0.5%

  

American Credit Acceptance Receivables Trust
4.050%, 02/15/18 (144A)

     321,000        323,602   

AmeriCredit Automobile Receivables Trust
4.040%, 07/10/17

     300,000        313,064   

4.200%, 11/08/16

     400,000        415,435   

Capital Auto Receivables Asset Trust
2.190%, 09/20/21

     500,000        480,432   

CarNow Auto Receivables Trust
2.980%, 11/15/17 (144A)

     473,000        472,465   

3.240%, 03/15/16 (144A)

     200,000        201,376   

Chesapeake Funding LLC
0.643%, 05/07/24 (144A) (b)

     550,000        548,881   

1.343%, 05/07/24 (144A) (b)

     300,000        298,864   

DT Auto Owner Trust
2.260%, 10/16/17 (144A) (c)

     750,000        752,183   

First Investors Auto Owner Trust
2.530%, 01/15/20 (144A)

     275,000        264,297   

Ford Auto Securitization Trust
2.431%, 11/15/14 (144A) (CAD)

     91,667        87,262   

Prestige Auto Receivables Trust
3.900%, 07/16/18 (144A)

     577,000        591,916   

 

See accompanying notes to financial statements.

 

MIST-25

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Automobile—(Continued)

  

Santander Drive Auto Receivables Trust
2.700%, 08/15/18

     650,000      $ 654,091   

3.780%, 11/15/17

     400,000        415,229   
   

 

 

  
      5,819,097   
   

 

 

  

Asset-Backed - Home Equity—1.2%

  

Accredited Mortgage Loan Trust
0.343%, 09/25/36 (b)

     1,196,206        1,148,430   

ACE Securities Corp.
0.373%, 03/25/36 (b)

     518,432        499,259   

6.500%, 08/15/30 (144A) (b)

     1,148,451        1,196,163   

Aegis Asset Backed Securities Trust
0.463%, 12/25/35 (b)

     1,008,627        931,396   

Asset Backed Securities Corp.
0.853%, 04/25/35 (b)

     57,805        57,731   

Bayview Financial Acquisition Trust
0.695%, 06/28/44 (b)

     418,342        393,595   

Bear Stearns Asset Backed Securities Trust
0.323%, 10/25/36 (b)

     234,601        230,442   

0.603%, 12/25/35 (b)

     350,000        329,310   

1.243%, 10/25/34 (b)

     835,000        769,777   

CDC Mortgage Capital Trust
1.543%, 08/25/33 (b)

     227,666        209,035   

Citigroup Mortgage Loan Trust
0.943%, 05/25/35 (144A) (b)

     429,900        403,816   

Conseco Financial Corp.
6.240%, 12/01/28 (b)

     47,437        48,919   

Greenpoint Manufactured Housing
8.450%, 06/20/31 (b)

     136,862        131,008   

Home Equity Asset Trust
0.303%, 03/25/37 (b)

     591,305        583,596   

0.473%, 12/25/35 (b)

     65,942        65,628   

0.573%, 01/25/36 (b)

     390,064        372,658   

Irwin Home Equity Corp.
0.893%, 03/25/25 (b)

     352,013        318,879   

Lehman ABS Manufactured Housing Contract Trust
5.873%, 04/15/40

     241,282        261,771   

Madison Avenue Manufactured Housing Contract
2.443%, 03/25/32 (b)

     1,442,064        1,441,352   

3.443%, 03/25/32 (b)

     250,000        246,266   

Mid-State Capital Trust
5.250%, 12/15/45 (144A)

     468,341        486,930   

7.000%, 12/15/45 (144A)

     553,493        576,368   

Mid-State Trust
7.540%, 02/15/36

     46,953        51,161   

Morgan Stanley ABS Capital I
0.253%, 12/25/36 (b)

     136,954        67,459   

Nationstar Home Equity Loan Trust
0.343%, 03/25/37 (b)

     377,709        350,950   

Novastar Home Equity Loan
0.563%, 01/25/36 (b)

     1,000,000        951,457   

Option One Mortgage Loan Trust
0.313%, 02/25/38 (b)

     8,894        8,881   

0.453%, 11/25/35 (b)

     532,412        522,108   

Asset-Backed - Home Equity—(Continued)

  

Origen Manufactured Housing Contract Trust
5.460%, 11/15/35 (b)

     350,000      $ 364,357   

5.460%, 06/15/36 (b)

     295,492        310,129   

5.910%, 01/15/35 (b)

     508,285        542,906   

Residential Asset Mortgage Products Trust
0.663%, 07/25/35 (b)

     412,545        404,439   

Residential Asset Securities Trust
0.633%, 08/25/35 (b)

     270,141        263,553   

Soundview Home Loan Trust
0.383%, 02/25/36 (b)

     315,439        307,436   

Wells Fargo Home Equity Trust
0.603%, 11/25/35 (b)

     311,000        306,741   
   

 

 

  
      15,153,906   
   

 

 

  

Asset-Backed - Other—2.5%

  

Bayview Opportunity Master Fund Trust IIB L.P.
3.721%, 04/28/18 (144A)

     975,098        977,536   

Beacon Container Finance LLC
3.720%, 09/20/27 (144A)

     231,801        231,127   

Bear Stearns Asset Backed Securities Trust
1.043%, 12/25/33 (b)

     320,284        296,680   

Carrington Mortgage Loan Trust
0.293%, 06/25/37 (b)

     99,742        96,420   

0.303%, 07/25/36 (b)

     338,800        326,109   

0.313%, 02/25/37 (b)

     51,951        51,754   

0.593%, 09/25/35 (b)

     82,196        80,618   

0.928%, 02/25/35 (b)

     329,429        323,134   

Citicorp Residential Mortgage Securities Trust
5.703%, 11/25/36

     1,926,973        1,922,462   

5.775%, 09/25/36

     951,982        968,264   

5.892%, 03/25/37

     1,262,972        1,242,713   

5.939%, 07/25/36

     1,317,960        1,314,544   

CKE Restaurant Holdings, Inc.
4.474%, 03/20/43 (144A)

     2,291,375        2,289,776   

Countrywide Asset-Backed Certificates
0.373%, 06/25/36 (b)

     462,874        442,609   

0.443%, 04/25/36 (b)

     321,692        312,056   

4.456%, 10/25/35 (b)

     320,794        321,829   

5.585%, 10/25/46 (b)

     79,588        79,289   

Credit-Based Asset Servicing and Securitization LLC
0.283%, 04/25/37 (b)

     347,640        251,966   

5.938%, 10/25/36 (144A)

     375,000        361,528   

Cronos Containers Program, Ltd.
3.810%, 09/18/27 (144A)

     462,500        461,864   

Dominos Pizza Master Issuer LLC
5.216%, 01/25/42 (144A)

     3,650,250        3,896,835   

Drug Royalty II L.P. 1
4.277%, 01/15/25 (144A) (b)

     224,183        222,017   

4.474%, 01/15/25 (144A)

     313,856        311,467   

Ellington Loan Acquisition Trust
0.993%, 05/27/37 (144A) (b)

     166,697        165,221   

 

See accompanying notes to financial statements.

 

MIST-26

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Asset-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Asset-Backed - Other—(Continued)

  

Ellington Loan Acquisition Trust
1.093%, 05/25/37 (144A) (b)

     330,913      $ 326,043   

1.193%, 05/26/37 (144A) (b)

     79,181        79,158   

First Franklin Mortgage Loan Trust
0.643%, 03/25/35 (b)

     153,228        152,264   

0.703%, 09/25/35 (b)

     508,856        499,357   

0.733%, 09/25/34 (b)

     99,169        98,762   

FRS I LLC
3.960%, 04/15/43 (144A)

     500,000        479,757   

Global SC Finance SRL
4.110%, 07/19/27 (144A)

     635,833        639,176   

GSAMP Trust
0.293%, 08/25/36 (b)

     67,333        66,899   

0.323%, 01/25/37 (b)

     124,340        117,655   

0.838%, 03/25/35 (b)

     111,761        110,996   

Hercules Capital Funding Trust
3.320%, 12/16/17 (144A)

     383,769        385,208   

Icon Brands Holdings LLC
4.229%, 01/25/43 (144A)

     1,024,748        1,008,563   

JPMorgan Mortgage Acquisition Corp.
0.343%, 05/25/36 (b)

     185,784        179,812   

0.433%, 12/25/35 (b)

     64,820        64,617   

Leaf II Receivables Funding LLC
2.670%, 09/15/20 (144A)

     538,712        542,133   

5.500%, 09/15/20 (144A)

     367,451        327,955   

Nationstar Mortgage Advance Receivable Trust
1.679%, 06/20/46 (144A)

     805,000        804,138   

Oxford Finance Funding Trust
3.900%, 03/15/17 (144A)

     283,734        286,217   

Progreso Receivables Funding I LLC
4.000%, 07/09/18 (144A)

     771,000        764,194   

Residential Asset Mortgage Products, Inc.
0.353%, 08/25/36 (b)

     270,617        250,462   

Sierra Receivables Funding Co. LLC
1.870%, 08/20/29 (144A)

     380,700        381,583   

Springleaf Funding Trust
2.580%, 09/15/21 (144A)

     2,100,000        2,100,000   

STORE Master Funding LLC
4.160%, 03/20/43 (144A)

     199,242        196,129   

Structured Asset Investment Loan Trust
0.393%, 01/25/36 (b)

     464,120        449,053   

0.593%, 05/25/35 (b)

     182,304        181,308   

Structured Asset Securities Corp.
0.323%, 03/25/37 (b)

     300,000        287,515   

Textainer Marine Containers, Ltd.
4.210%, 04/15/27 (144A)

     795,000        805,884   

Westgate Resorts LLC
2.250%, 08/20/25 (144A)

     590,529        591,452   

2.500%, 03/20/25 (144A)

     322,707        324,825   

3.000%, 01/20/25 (144A)

     765,274        774,840   

3.750%, 08/20/25 (144A)

     234,337        235,069   

4.500%, 01/20/25 (144A)

     473,741        480,551   
   

 

 

  
      30,939,393   
   

 

 

  

Total Asset-Backed Securities
(Cost $49,741,923)

       51,912,396   
   

 

 

  
Preferred Stocks—1.5%   
Security Description       
Shares		     Value  

Commercial Banks—0.5%

  

Ally Financial, Inc. , 7.000% (144A)

     250      $ 237,617   

CoBank ACB , 6.250% (144A) (b)

     1,500        154,078   

GMAC Capital Trust I, 8.125% (b)

     56,000        1,458,800   

U.S. Bancorp
Series F, 6.500% (b)

     50,000        1,405,000   

Series G, 6.000% (a) (b)

     111,625        3,059,641   
   

 

 

  
      6,315,136   
   

 

 

  

Diversified Financial Services—0.4%

  

Citigroup Capital XIII, 7.875% (b)

     174,166        4,850,523   
   

 

 

  

Insurance—0.3%

  

Allstate Corp. (The), 5.100% (b)

     106,925        2,736,211   

Aspen Insurance Holdings, Ltd., 5.950% (b)

     50,000        1,275,000   
   

 

 

  
      4,011,211   
   

 

 

  

Pharmaceuticals—0.1%

  

Ceva Holdings Inc. Series A

     864        777,348   
   

 

 

  

Telecommunications—0.2%

  

Qwest Corp., 7.375%

     109,000        2,884,140   
   

 

 

  

Total Preferred Stocks
(Cost $18,403,408)

       18,838,358   
   

 

 

  
Convertible Preferred Stocks—0.9%   

Auto Components—0.2%

    

Goodyear Tire & Rubber Co. (The)
5.875%, 04/01/14 (a)

     58,180        2,865,947   
   

 

 

  

Commercial Banks—0.6%

    

Wells Fargo & Co.
Series L
7.500%, 12/31/49

     5,965        7,122,210   
   

 

 

  

Diversified Financial Services—0.1%

  

Bank of America Corp.
Series L
7.250%, 12/31/49

     1,144        1,270,412   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $10,290,523)

       11,258,569   
   

 

 

  
Common Stocks—0.1%                

Airlines—0.0%

  

Delta Air Lines, Inc. (k)

     2,000        37,420   
   

 

 

  

Capital Markets—0.0%

  

Legg Mason, Inc. (a)

     10,264        318,287   
   

 

 

  

Commercial Services—0.0%

  

Comdisco Holding Co., Inc. (k)

     83        401   
   

 

 

  

Diversified Financial Services—0.0%

  

BTA Bank JSC (GDR) (144A) (c) (k)

     1,133        1,045   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-27

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Forest Products & Paper—0.0%

  

Emerald Plantation Holdings, Ltd. (k)

     266,557      $ 69,305   
   

 

 

  

Marine—0.1%

  

Horizon Lines, Inc. (a) (e) (k)

     278,510        375,988   
   

 

 

  

Paper & Forest Products—0.0%

  

Ainsworth Lumber Co., Ltd. (k)

     54,081        164,552   
   

 

 

  

Pharmaceuticals—0.0%

  

Ceva Holdings LLC

     399        319,197   
   

 

 

  

Total Common Stocks
(Cost $2,095,577)

       1,286,195   
   

 

 

  
Warrants—0.0%   

Containers & Packaging—0.0%

  

Smurfit Kappa Group plc, Strike Price $0.01, Expires 10/01/13 (e) (k)

     42        3,641   
   

 

 

  

Sovereign—0.0%

  

Venezuela Government International Bond, Expires 04/15/20 (b) (e) (k)

     1,700        44,200   
   

 

 

  

Total Warrants
(Cost $0)

       47,841   
   

 

 

  
Short-Term Investments—11.4%   

Mutual Fund—8.3%

  

State Street Navigator Securities Lending MET Portfolio (l)

     101,222,789        101,222,789   
   

 

 

  

Repurchase Agreement—3.1%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $38,016,032 on 07/01/13, collateralized by $40,925,000 Federal National Mortgage Association at 2.220% due 12/27/22 with a value of $38,776,438.

     38,016,000        38,016,000   
   

 

 

  

Total Short-Term Investments
(Cost $139,238,789)

       139,238,789   
   

 

 

  

Total Investments—107.8%
(Cost $1,296,844,857) (m)

       1,324,695,436   

Other assets and liabilities (net)—(7.8)%

       (96,371,843 ) 
   

 

 

  
Net Assets—100.0%     $ 1,228,323,593   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $103,313,924 and the collateral received consisted of cash in the amount of $101,222,789 and non-cash collateral with a value of $5,709,480. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(c) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of June 30, 2013, the market value of restricted securities was $8,507,626, which is 0.7% of net assets. See details shown in the Restricted Securities table that follows.
(d) Security is in default and/or issuer is in bankruptcy.
(e) Illiquid security. As of June 30, 2013, these securities represent 0.1% of net assets.
(f) This loan will settle after June 30, 2013, at which time the interest rate will be determined.
(g) Interest only security.
(h) The rate shown represents the discount rate at the time of purchase by the Portfolio.
(i) Security is a “step-up” bond where coupon increases or steps up at a predetermined date. Rate shown is current coupon rate.
(j) Security is a “step-down” bond where the coupon decreases or steps down at a predetermined date. Rate shown is current coupon rate.
(k) Non-income producing security.
(l) Represents investment of cash collateral received from securities lending transactions.
(m) As of June 30, 2013, the aggregate cost of investments was $1,296,844,857. The aggregate unrealized appreciation and depreciation of investments were $59,164,018 and $(31,313,439), respectively, resulting in net unrealized appreciation of $27,850,579.
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $378,637,073, which is 30.8% of net assets.
(AGM)— Assured Guaranty Municipal Corporation
(AUD)— Australian Dollar
(BRL)— Brazilian Real
(CAD)— Canadian Dollar
(CMO)— Collateralized Mortgage Obligation
(CNH)— Chinese Renminbi
(EUR)— Euro
(GDR)— A Global Depositary Receipt is a negotiable certificate issued by one country’s bank against a certain number of shares of a company’s stock held in its custody but traded on the stock exchange of another country.
(GHS)— Ghana cedi
(IDR)— Indonesian Rupiah
(MXN)— Mexican Peso
(MYR)— Malaysian Ringgit
(NGN)— Nigerian Naira
(NOK)— Norwegian Krone
(NZD)— New Zealand Dollar
(PHP)— Philippine Peso
(REMIC)— Real Estate Mortgage Investment Conduit
(RON)— New Romanian Leu
(RUB)— Russian Rouble
(TRY)— Turkish Lira

 

See accompanying notes to financial statements.

 

MIST-28

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

 

Restricted Securities

    Acquisition
Date		      Shares/
Principal
Amount		      Cost      Value  

BTA Bank JSC

      08/26/10         1,133       $ 28,098       $ 1,045   

Cemex Espana Luxembourg

      03/28/12         1,420,000         1,367,399         1,533,600   

DT Auto Owner Trust

      04/17/12         750,000         749,973         752,183   

Liberty Mutual Group, Inc.

      12/29/08         394,000         387,145         413,831   

Mashantucket Pequot Tribe

      01/29/08         1,670,000         1,602,435         100,200   

Mondi Consumer Packaging International AG

      07/02/10         950,000         1,185,259         1,391,200   

NSG Holdings LLC / NSG Holdings, Inc.

      03/06/07         867,000         829,596         897,345   

PetroQuest Energy, Inc.

      06/28/13         500,000         500,000         500,000   

Viterra, Inc.

      07/30/10         2,760,000         2,749,009         2,918,222   

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

   

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
INR 304,000,000    JPMorgan Chase Bank N.A.      09/16/13       $ 5,410,216       $ (360,193 ) 
MYR     8,700,000    JPMorgan Chase Bank N.A.      08/07/13         2,855,642         (108,746 ) 
NGN 263,850,000    JPMorgan Chase Bank N.A.      07/19/13         1,624,192         (10,564 ) 
NGN 406,000,000    UBS AG      09/11/13         2,442,105         (5,342 ) 
RUB     93,000,000    JPMorgan Chase Bank N.A.      07/08/13         2,957,310         (129,817 ) 

Contracts to Deliver

                          
AUD     7,731,000    Brown Brothers Harriman & Co.      07/18/13       $ 7,380,399       $ 318,322   
CAD     8,339,000    UBS AG      07/18/13         8,186,526         260,454   
EUR     3,900,000    Brown Brothers Harriman & Co.      07/18/13         5,222,771         146,016   
EUR     1,880,000    Citibank N.A.      07/18/13         2,514,094         66,838   
EUR     1,200,000    Brown Brothers Harriman & Co.      08/05/13         1,602,642         40,449   
EUR     9,000,000    Citibank N.A.      08/05/13         11,811,339         94,894   
INR 304,000,000    JPMorgan Chase Bank N.A.      09/16/13         5,129,936         79,913   
JPY 892,000,000    JPMorgan Chase Bank N.A.      07/16/13         9,339,747         345,531   
MYR     7,900,000    JPMorgan Chase Bank N.A.      08/07/13         2,645,237         150,929   
NZD     2,550,000    Brown Brothers Harriman & Co.      07/18/13         2,034,594         60,738   
           

 

 

  

Net Unrealized Appreciation

  

    $ 949,422   
           

 

 

  

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		     Notional
Amount		     Unrealized
Appreciation/
(Depreciation)		  

U.S. Treasury Bond Futures

      09/19/13         33        USD         4,650,123      $ (167,279 ) 

Ultra Long U.S. Treasury Bond Futures

      09/19/13         59        USD         9,181,577        (490,140 ) 

Futures Contracts—Short

                                 

U.S. Treasury Note 10 Year Futures

      09/19/13         (393 )      USD         (51,239,402 )      1,500,339   

U.S. Treasury Note 2 Year Futures

      09/30/13         (49 )      USD         (10,795,942 )      15,942   

U.S. Treasury Note 5 Year Futures

      09/30/13         (614 )      USD         (75,601,846 )      1,279,065   
            

 

 

  

Net Unrealized Appreciation

  

   $ 2,137,927   
            

 

 

  

 

(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(EUR)— Euro
(INR)— Indian Rupee
(JPY)— Japanese Yen
(MYR)— Malaysian Ringgit
(NGN)— Nigerian Naira
(NZD)— New Zealand Dollar
(RUB)— Russian Rouble
(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-29

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy

 

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Corporate Bonds & Notes*

    $ —         $ 556,214,415      $ —         $ 556,214,415   

Total Floating Rate Loans*

      —           130,993,748        —           130,993,748   

Total Mortgage-Backed Securities*

      —           123,940,099        —           123,940,099   

Total Foreign Government*

      —           88,803,081        —           88,803,081   

Total Municipals

      —           74,097,083        —           74,097,083   

Total U.S. Treasury & Government Agencies*

      —           67,515,978        —           67,515,978   

Total Convertible Bonds*

      —           60,548,884        —           60,548,884   

Total Asset-Backed Securities*

      —           51,912,396        —           51,912,396   
Preferred Stocks           

Commercial Banks

      5,923,441         391,695        —           6,315,136   

Diversified Financial Services

      4,850,523         —          —           4,850,523   

Insurance

      4,011,211         —          —           4,011,211   

Pharmaceuticals

      —           777,348        —           777,348   

Telecommunications

      2,884,140         —          —           2,884,140   

Total Preferred Stocks

      17,669,315         1,169,043        —           18,838,358   

Total Convertible Preferred Stocks*

      11,258,569         —          —           11,258,569   
Common Stocks           

Airlines

      37,420         —          —           37,420   

Capital Markets

      318,287         —          —           318,287   

Commercial Services

      401         —          —           401   

Diversified Financial Services

      —           1,045        —           1,045   

Forest Products & Paper

      69,305         —          —           69,305   

Marine

      375,988         —          —           375,988   

Paper & Forest Products

      164,552         —          —           164,552   

Pharmaceuticals

      —           319,197        —           319,197   

Total Common Stocks

      965,953         320,242        —           1,286,195   

Total Warrants*

      —           47,841        —           47,841   
Short-Term Investments           

Mutual Fund

      101,222,789         —          —           101,222,789   

Repurchase Agreement

      —           38,016,000        —           38,016,000   

Total Short-Term Investments

      101,222,789         38,016,000        —           139,238,789   

Total Investments

    $ 131,116,626       $ 1,193,578,810      $ —         $ 1,324,695,436   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (101,222,789 )    $ —         $ (101,222,789 ) 

 

See accompanying notes to financial statements.

 

MIST-30

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy–(Continued)

 

Description    Level 1     Level 2     Level 3      Total  
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 1,564,084      $ —         $ 1,564,084   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (614,662 )      —           (614,662 ) 

Total Forward Contracts

    $ —        $ 949,422      $ —         $ 949,422   
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 2,795,346      $ —        $ —         $ 2,795,346   

Futures Contracts (Unrealized Depreciation)

      (657,419 )      —          —           (657,419 ) 

Total Futures Contracts

    $ 2,137,927      $ —        $ —         $ 2,137,927   

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-31

Met Investors Series Trust

Pioneer Strategic Income Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,324,695,436   

Cash

      894,919   

Cash denominated in foreign currencies (c)

      8,173,183   

Cash collateral for futures contracts

      642,053   

Unrealized appreciation on forward foreign currency exchange contracts

      1,564,084   

Receivable for:

   

Investments sold

      3,408,941   

Fund shares sold

      730,920   

Dividends

      160,061   

Interest

      13,486,147   

Variation margin on futures contracts

      96,157   
  

 

 

  

Total Assets

      1,353,851,901   

Liabilities

   

Payables for:

   

Investments purchased

      22,270,364   

Fund shares redeemed

      555,514   

Unrealized depreciation on forward foreign currency exchange contracts

      614,662   

Collateral for securities loaned

      101,222,789   

Accrued expenses:

   

Management fees

      577,689   

Distribution and service fees

      32,251   

Deferred trustees’ fees

      41,001   

Other expenses

      214,038   
  

 

 

  

Total Liabilities

      125,528,308   
  

 

 

  

Net Assets

    $ 1,228,323,593   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,162,353,142   

Undistributed net investment income

      26,788,805   

Accumulated net realized gain

      8,518,859   

Unrealized appreciation on investments, futures contracts and foreign currency transactions

      30,662,787   
  

 

 

  

Net Assets

    $ 1,228,323,593   
  

 

 

  

Net Assets

   

Class A

    $ 971,561,948   

Class E

      256,761,645   

Capital Shares Outstanding*

   

Class A

      89,221,708   

Class E

      23,716,425   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.89   

Class E

      10.83   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,296,844,857.
(b) Includes securities loaned at value of $103,313,924.
(c) Identified cost of cash denominated in foreign currencies was $8,383,354.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends

    $ 748,733   

Interest (a)

      31,625,986   

Securities lending income

      166,915   
  

 

 

  

Total investment income

      32,541,634   

Expenses

   

Management fees

      3,450,502   

Administration fees

      15,375   

Custodian and accounting fees

      200,768   

Distribution and service fees—Class E

      196,834   

Audit and tax services

      31,067   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      27,511   

Insurance

      3,388   

Miscellaneous

      5,567   
  

 

 

  

Total expenses

      3,954,134   
  

 

 

  

Net Investment Income

      28,587,500   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain (loss) on:   

Investments

      9,560,599   

Futures contracts

      1,519,073   

Foreign currency transactions

      (954,791 ) 
  

 

 

  

Net realized gain

      10,124,881   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (51,867,300 ) 

Futures contracts

      1,957,317   

Foreign currency transactions

      1,237,540   
  

 

 

  

Net change in unrealized depreciation

      (48,672,443 ) 
  

 

 

  

Net realized and unrealized loss

      (38,547,562 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (9,960,062 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $37.

 

See accompanying notes to financial statements.

 

MIST-32

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 28,587,500      $ 55,043,588   

Net realized gain

      10,124,881        6,266,903   

Net change in unrealized appreciation (depreciation)

      (48,672,443 )      55,209,779   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (9,960,062 )      116,520,270   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (47,801,563 )      (40,361,355 ) 

Class E

      (12,818,601 )      (11,498,360 ) 

Net realized capital gains

     

Class A

      (2,724,441 )      (3,096,852 ) 

Class E

      (751,357 )      (903,970 ) 
  

 

 

    

 

 

  

Total distributions

      (64,095,962 )      (55,860,537 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      122,716,497        162,227,454   
  

 

 

    

 

 

  

Total Increase in net assets

      48,660,473        222,887,187   

Net Assets

     

Beginning of period

      1,179,663,120        956,775,933   
  

 

 

    

 

 

  

End of period

    $ 1,228,323,593      $ 1,179,663,120   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 26,788,805      $ 58,821,469   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      7,984,329      $ 91,797,323        15,071,086      $ 169,040,807   

Reinvestments

      4,511,250        50,526,004        4,027,638        43,458,207   

Redemptions

      (2,822,893 )      (32,412,657 )      (7,395,559 )      (82,788,409 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      9,672,686      $ 109,910,670        11,703,165      $ 129,710,605   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      2,823,672      $ 32,185,330        7,138,791      $ 79,205,628   

Reinvestments

      1,218,129        13,569,958        1,154,779        12,402,330   

Redemptions

      (2,905,107 )      (32,949,461 )      (5,322,634 )      (59,091,109 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      1,136,694      $ 12,805,827        2,970,936      $ 32,516,849   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 122,716,497        $ 162,227,454   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-33

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.57      $ 10.95       $ 11.15       $ 10.47       $ 8.37       $ 10.02   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.27        0.57         0.62         0.64         0.68         0.64   

Net realized and unrealized gain (loss) on investments

      (0.34 )      0.66         (0.22 )       0.60         1.94         (1.63 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.07 )      1.23         0.40         1.24         2.62         (0.99 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.58 )      (0.57 )       (0.53 )       (0.56 )       (0.52 )       (0.66 ) 

Distributions from net realized capital gains

      (0.03 )      (0.04 )       (0.07 )       0.00         0.00         0.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.61 )      (0.61 )       (0.60 )       (0.56 )       (0.52 )       (0.66 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.89      $ 11.57       $ 10.95       $ 11.15       $ 10.47       $ 8.37   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.73 )(c)      11.62         3.63         12.17         33.09         (10.74 ) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%)

      0.62  (d)      0.63         0.64         0.67         0.66         0.67   

Ratio of net investment income to average net assets (%)

      4.73  (d)      5.12         5.61         5.94         7.25         6.77   

Portfolio turnover rate (%)

      18  (c)      23         30         33         32         45   

Net assets, end of period (in millions)

    $ 971.6      $ 920.1       $ 743.2       $ 638.0       $ 488.9       $ 317.1   

 

     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008(e)  

Net Asset Value, Beginning of Period

      $11.50      $ 10.89       $ 11.10       $ 10.43       $ 8.34       $ 9.51   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.26        0.55         0.60         0.62         0.66         0.43   

Net realized and unrealized gain (loss) on investments

      (0.34 )      0.65         (0.22 )       0.60         1.94         (1.60 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      (0.08 )      1.20         0.38         1.22         2.60         (1.17 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.56 )      (0.55 )       (0.52 )       (0.55 )       (0.51 )       0.00   

Distributions from net realized capital gains

      (0.03 )      (0.04 )       (0.07 )       0.00         0.00         0.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.59 )      (0.59 )       (0.59 )       (0.55 )       (0.51 )       0.00   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 10.83      $ 11.50       $ 10.89       $ 11.10       $ 10.43       $ 8.34   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      (0.79 )(c)      11.45         3.46         12.04         32.76         (12.30 )(c) 

Ratios/Supplemental Data

                 

Ratio of expenses to average net assets (%)

      0.77  (d)      0.78         0.79         0.82         0.81         0.84  (d) 

Ratio of net investment income to average net assets (%)

      4.58  (d)      4.97         5.46         5.79         6.86         6.97  (d) 

Portfolio turnover rate (%)

      18  (c)      23         30         33         32         45   

Net assets, end of period (in millions)

    $ 256.8      $ 259.6       $ 213.6       $ 155.9       $ 73.6       $ 6.9   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Commencement of operations was April 28, 2008.

 

See accompanying notes to financial statements.

 

MIST-34

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Pioneer Strategic Income Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-35

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due

 

MIST-36

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

to futures transactions, foreign currency transactions, paydown transactions, defaulted bonds, convertible preferred stock interest purchased, contingent payment debt instruments and premium amortization adjustments. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $38,016,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

 

MIST-37

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value. As of June 30, 2013, the Portfolio had no when-issued and delayed-delivery securities.

Stripped Securities - The Portfolio may invest in “stripped securities,” a term used collectively for certain structured fixed income securities. Stripped securities can be principal only securities (“POs”), which are debt obligations that have been stripped of unmatured interest coupons or interest only securities (“IOs”), which are unmatured interest coupons that have been stripped from debt obligations. Stripped securities do not make periodic payments of interest prior to maturity. As is the case with all securities, the market value of stripped securities will fluctuate in response to changes in economic conditions, interest rates and the market’s perception of the securities. However, fluctuations in response to interest rates may be greater in stripped securities than for debt obligations of comparable maturities that currently pay interest. The amount of fluctuation increases with a longer period of maturity.

The yield to maturity on IOs is sensitive to the rate of principal repayments (including prepayments) on the related underlying debt obligation and principal payments may have a material effect on yield to maturity. If the underlying debt obligation experiences greater than anticipated prepayments of principal, the Portfolio may not fully recoup the initial investment in IOs.

Floating Rate Loans - The Portfolio may invest in loans arranged through private negotiation between one or more financial institutions. The Portfolio’s investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations or an assignment, the Portfolio generally will have no right to enforce compliance by the borrower, with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower and the Portfolio may not benefit directly from any collateral supporting the loan in which it has purchased the participation or assignment.

The Portfolio will assume the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling the participation, the Portfolio may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.

Mortgage Related and Other Asset Backed Securities - The Portfolio may invest in mortgage related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgage obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

High Yield Debt Securities - The Portfolio may invest in high yield debt securities, or “junk bonds,” which are securities that are rated below “investment grade” or, if not rated, are of equivalent quality. A portfolio with high yield debt securities generally will be exposed to greater market risk and credit risk than a portfolio that invests only in investment grade debt securities because issuers of high yield debt securities are less secure financially, are more likely to default on their obligations, and their securities are more sensitive to interest rate changes and downturns in the economy. In addition, the secondary market for lower-rated debt securities may not be as liquid as that for more highly rated debt securities. As a result, the Portfolio’s Subadviser may find it more difficult to value lower-rated debt securities or sell them and may have to sell them at prices significantly lower than the values assigned to them by the Portfolio.

 

MIST-38

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

3. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value     

Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate    Unrealized appreciation on futures contracts* (a)    $ 2,795,346       Unrealized depreciation on futures contracts* (a)    $ 657,419   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      1,564,084       Unrealized depreciation on forward foreign currency exchange contracts      614,662   
     

 

 

        

 

 

  
Total       $ 4,359,430          $ 1,272,081   
     

 

 

        

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received		      Net Amount  

Brown Brothers Harriman & Co.

    $ 565,526       $ —      $ —       $ 565,526   

Citibank N.A.

      161,731         —        —         161,731   

JPMorgan Chase Bank N.A.

      576,373         (576,373 )      —         —   

UBS AG

      260,454         (5,342 )      —         255,112   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 1,564,084       $ (581,715 )    $ —       $ 982,369   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

MIST-39

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged		      Net Amount  

JPMorgan Chase Bank N.A.

    $ 609,320       $ (576,373 )    $ —       $ 32,947   

UBS AG

      5,342         (5,342 )      —         —   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 614,662       $ (581,715 )    $ —       $ 32,947   
  

 

 

     

 

 

    

 

 

     

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate      Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —       $ (163,885 )    $ (163,885 ) 

Futures contracts

      1,519,073         —        1,519,073   
  

 

 

     

 

 

    

 

 

  
   $ 1,519,073       $ (163,885 )    $ 1,355,188   
  

 

 

     

 

 

    

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Interest Rate      Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —       $ 1,557,543      $ 1,557,543   

Futures contracts

      1,957,317         —        1,957,317   
  

 

 

     

 

 

    

 

 

  
   $ 1,957,317       $ 1,557,543      $ 3,514,860   
  

 

 

     

 

 

    

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(b)		  

Forward Foreign currency transactions

    $ 61,940,416   

Futures contracts long

      8,400,000   

Futures contracts short

      136,016,667   

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc.

 

MIST-40

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases      Sales  
U.S. Government      Non U.S. Government      U.S. Government      Non U.S. Government  
$ 1,760,508       $ 291,223,835       $ 6,421,875       $ 201,244,307   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Pioneer Investment Management, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013		    % per annum     Average Daily Net Assets
$3,450,502      0.600 %    First $500 million
     0.550 %    $500 million to $1 billion
     0.530 %    Over $1 billion

 

MIST-41

Met Investors Series Trust

Pioneer Strategic Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class E distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.25% of the average daily net assets of the Portfolio attributable to its Class E Shares with respect to activities primarily intended to result in the sale of Class E Shares. However, under the Class E distribution agreement, payments to the Distributor for activities pursuant to the Class E distribution plan are currently limited to payments at an annual rate equal to 0.15% of average daily net assets of the Portfolio attributable to its Class E Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class E distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income      Long-Term Capital Gain      Total  
2012      2011      2012      2011      2012      2011  
$ 51,859,715       $ 40,318,729       $ 4,000,822       $ 5,397,038       $ 55,860,537       $ 45,715,767   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income		      Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$ 60,974,288       $ 2,872,968       $ 76,214,846       $ —       $ 140,062,102   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

10. Subsequent Events

On July 17, 2013, the Portfolio will begin offering Class B shares, in addition to the Class A and Class E Shares already offered.

 

MIST-42

Met Investors Series Trust

Pyramis® Government Income Portfolio

Managed by Pyramis Global Advisors, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the Pyramis® Government Income Portfolio returned -3.69%. The Portfolio’s benchmark, the Barclays U.S. Government Bond Index1, returned -2.04%.

MARKET ENVIRONMENT / CONDITIONS

Investment grade bonds generated negative returns as interest rates rose sharply and credit spreads widened particularly in the final three months of the period. The increase in rates was largely attributable to the Federal Reserve’s (“Fed”) comments that economic conditions were improving enough to possibly warrant an earlier end to its quantitative easing program than previously anticipated. Credit spreads widened on the increased volatility and uncertainty stemming from the Fed commentary.

Among government bonds, all sectors generated negative returns. However, Agency Mortgage Backed Securities (MBS) underperformed Treasuries and Agency debt as the potential cessation of quantitative easing by the Fed could remove a significant bid from this market. More specifically, Government National Mortgage Association (GNMA) bonds underperformed Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) bonds during the period. GNMA securities faced several unique headwinds as bond sales were greater than anticipated from foreign investors, retail investors, hedge funds, and real estate investment trusts (REITs). Treasury Inflation Protected Securities (TIPS), which declined more than 7%, also underperformed Treasuries and Agencies as real rates increased and inflation expectations fell during the period.

PORTFOLIO REVIEW / PERIOD END POSITIONING

For the first half of 2013, the Portfolio underperformed its benchmark as active positions generally detracted from relative performance. Most of this underperformance occurred in the second quarter as mortgage interest rates rose. The overweight to lower coupon MBS hurt as investors concluded that the Fed may soon slow its quantitative easing purchases that are focused on that sub-sector. The overweight to GNMA MBS detracted as this sub-sector underperformed FNMA and FHLMC. The focus on MBS that offer protection against fast prepayments hurt because prepayment protection became less valuable as mortgage interest rates rose in the quarter and homeowners lost the economic incentive to refinance. The Portfolio’s holdings of Collateralized Mortgage Obligations (CMO) and other less liquid types of investment detracted as investors shifted toward more liquid types of securities amidst market volatility. For example, exposure to reverse mortgages detracted modestly from performance in the quarter due to concerns about the long-term future of the program. Furthermore, the Portfolio benefited because for much of the quarter, it was very modestly short duration and as a result, the rapid increase in market interest rates hurt the Portfolio less than its benchmark.

Derivatives had a very limited effect on the Portfolio’s performance. Late in 2012, the Portfolio paid a fixed interest rate and accepted a floating rate on a 30-year interest rate swap (which is an exchange-traded and highly liquid derivative instrument). This position, in combination with a purchase of a 30-year Treasury, was done in anticipation of a widening in 30-year swap spreads. The trade added approximately 4 basis points to the Portfolio’s relative return over the period when swap spreads did widen as expected. Otherwise, the Portfolio used interest rate swaps sporadically during the first half of 2013 to manage curve exposure, minimize transaction costs, and allow the Portfolio to own inexpensive securities efficiently. The Portfolio also took long positions in options on interest rate swaps to express the view that interest rate volatility would rise. Indeed, in May, when expectations for future monetary policy changed, volatility did increase and the value of the options increased. Typically, derivatives account for a small portion of the Portfolio’s holdings, and at June 30 they accounted for a net position of 1.55%.

Specifically, among the slower-prepaying MBS, the Portfolio overweighted those MBS that have a low average loan balance. Such borrowers have a greater deterrent against refinancing because the closing costs of refinancing a mortgage are generally a fixed dollar amount. Furthermore, the originators of these mortgages do not have as much of a profit incentive to encourage borrowers with low loan balances to refinance. Similarly, the Portfolio overweighted MBS pools whose borrowers are not eligible for the government’s Home Affordable Refinance Program (HARP) refinancing assistance program. For the same reason, the Portfolio held MBS pools that were heavily investor-owned properties, because investors have greater frictions against refinancing than owner-occupiers. Also, the Portfolio held MBS where the underlying loans were concentrated in certain geographies that have greater frictions against refinancing, such as New York, where there is a fee that homeowners pay when they refinance.

Within the MBS sector, the Portfolio held CMOs and other less liquid types of securities such as “reverse” MBS. Furthermore, the Portfolio also held a position in “reverse” GNMA MBS, which is a less traditional program whose long-term future is less certain, leading to higher yields in them than in other types of agency MBS. The Portfolio also held floating-rate MBS in order to benefit from the structural characteristics of these types of securities. Within the Agency sector, the Portfolio focused its holdings on the debt of

 

MIST-1

Met Investors Series Trust

Pyramis® Government Income Portfolio

Managed by Pyramis Global Advisors, LLC

Portfolio Manager Commentary*—(Continued)

 

smaller government agencies such as the National Credit Union Administration (NCUA) and away from the debt of conventional agencies of FNMA and FHLMC.

At period end, the Portfolio maintained a duration that was broadly in line with that of its benchmark. The Portfolio also remained overweight in the MBS sector and underweight in the Treasury and Agency sectors. Within the MBS sector, the Portfolio modestly overweighted GNMA relative to FNMA and FHLMC, overweighted low coupon MBS relative to high coupon, and focused its positions on MBS that have significant protection against fast prepayments.

Bill Irving

Franco Castagliuolo

Portfolio Managers

Pyramis Global Advisors, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Pyramis® Government Income Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE BARCLAYS U.S. GOVERNMENT BOND INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
Pyramis® Government Income Portfolio                 

Class B

        -3.69           -2.81           3.56   
Barclays U.S. Government Bond Index        -2.04           -1.51           3.56   

1 The Barclays U.S. Government Bond Index is an unmanaged index considered representative of fixed-income obligations issued by the U.S. Treasury, government agencies, and quasi-federal corporations.

2 Inception of Class B shares is 5/2/2011. Index returns are based on an inception date of 5/2/2011.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

         
% of
Net Assets		  
Fannie Mae 30 Yr. Pool      15.1   
U.S. Treasury Notes      14.7   
U.S. Treasury Bonds      13.7   
Freddie Mac 30 Yr. Gold Pool      9.4   
Federal Home Loan Banks      5.7   
Ginnie Mae II 30 Yr. Pool      5.2   
Ginnie Mae II Pool      4.8   
Federal National Mortgage Association      4.3   
Freddie Mac Multifamily Structured Pass-Through Certificates      4.1   
Federal Home Loan Mortgage Corp.      2.9   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
U.S. Treasury & Government Agencies      91.2   
Mortgage-Backed Securities      3.8   
Corporate Bonds & Notes      2.5   
Foreign Government      1.7   
Asset-Backed Securities      0.8   

 

MIST-3

Met Investors Series Trust

Pyramis® Government Income Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Pyramis® Government Income Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B

    Actual      0.70 %     $ 1,000.00         $ 963.10         $ 3.41   
   Hypothetical*      0.70 %     $ 1,000.00         $ 1,021.32         $ 3.51   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

 

MIST-4

Met Investors Series Trust

Pyramis® Government Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—95.3% of Net Assets

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—50.2%

  

Fannie Mae 15 Yr. Pool
2.500%, 02/01/27

     94,761      $ 95,469   

2.500%, TBA (a)

     11,800,000        11,868,218   

3.000%, 04/01/27

     227,017        233,952   

3.000%, 05/01/27

     1,198,145        1,234,211   

3.000%, 06/01/27

     1,148,033        1,182,930   

3.000%, 07/01/27

     454,979        469,035   

3.000%, 08/01/27

     1,063,349        1,096,671   

3.000%, 09/01/27

     128,518        132,472   

3.000%, 11/01/27

     377,715        389,575   

3.000%, TBA (a)

     2,000,000        2,057,188   

3.500%, 10/01/25

     136,116        142,006   

3.500%, 11/01/25

     37,084        38,650   

3.500%, 12/01/25

     17,741        18,516   

3.500%, 01/01/26

     1,210,115        1,275,553   

3.500%, 02/01/26

     83,107        87,136   

3.500%, 06/01/26

     72,909        76,429   

3.500%, 07/01/26

     539,836        562,677   

3.500%, 08/01/26

     934,162        974,020   

3.500%, 09/01/26

     261,391        272,837   

3.500%, 11/01/26

     133,892        139,621   

3.500%, 12/01/26

     1,104,322        1,151,390   

3.500%, 01/01/27

     1,869,271        1,949,203   

3.500%, 06/01/27

     343,821        358,505   

4.000%, 08/01/18

     4,823        5,097   

4.000%, 09/01/18

     2,729        2,883   

4.000%, 10/01/24

     98,460        104,058   

4.000%, 02/01/25

     270,133        284,739   

4.000%, 03/01/25

     293,242        309,820   

4.000%, 04/01/25

     3,986,701        4,201,366   

4.000%, 06/01/25

     14,212        14,981   

4.000%, 09/01/25

     868,866        915,651   

4.000%, 10/01/25

     1,709,012        1,802,319   

4.000%, 04/01/26

     118,470        124,943   

4.000%, 06/01/26

     1,607,745        1,695,031   

4.000%, 07/01/26

     51,085        53,850   

4.000%, 09/01/26

     4,311,490        4,559,487   

4.000%, 10/01/26

     82,881        87,397   

4.000%, 11/01/26

     1,037,775        1,108,360   

4.500%, 12/01/23

     427,392        454,162   

5.000%, 09/01/22

     2,523,077        2,693,983   

5.000%, 03/01/23

     57,863        62,011   

Fannie Mae 30 Yr. Pool
3.000%, 12/01/42

     1,434,607        1,403,659   

3.000%, 02/01/43

     3,181,203        3,112,952   

3.000%, TBA (a)

     47,200,000        46,115,873   

3.500%, 04/01/42

     2,045,989        2,079,753   

3.500%, 05/01/42

     1,589,223        1,619,617   

3.500%, 07/01/42

     4,653,165        4,732,549   

3.500%, 08/01/42

     977,493        993,664   

3.500%, 09/01/42

     4,763,419        4,842,918   

3.500%, 10/01/42

     1,447,904        1,471,969   

3.500%, 11/01/42

     3,782,825        3,846,654   

3.500%, 12/01/42

     2,149,345        2,185,259   

3.500%, 01/01/43

     2,230,741        2,267,782   

3.500%, 02/01/43

     12,051,485        12,252,649   

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
3.500%, 03/01/43

     1,181,562      $ 1,201,126   

3.500%, 04/01/43

     492,915        501,396   

3.500%, 05/01/43

     901,824        917,594   

4.000%, 04/01/39

     512,128        533,459   

4.000%, 09/01/40

     547,260        570,403   

4.000%, 10/01/40

     122,231        127,400   

4.000%, 11/01/40

     1,625,215        1,700,546   

4.000%, 12/01/40

     1,478,004        1,540,506   

4.000%, 01/01/41

     2,118,777        2,210,567   

4.000%, 02/01/41

     769,549        803,249   

4.000%, 03/01/41

     1,558,982        1,626,014   

4.000%, 04/01/41

     969,629        1,011,542   

4.000%, 05/01/41

     22,065        23,018   

4.000%, 09/01/41

     2,969,403        3,095,497   

4.000%, 10/01/41

     1,572,098        1,639,315   

4.000%, 11/01/41

     3,892,795        4,069,224   

4.000%, 12/01/41

     589,487        616,773   

4.000%, 01/01/42

     690,767        720,627   

4.000%, 02/01/42

     1,737,968        1,815,970   

4.000%, 03/01/42

     2,231,305        2,335,817   

4.000%, 04/01/42

     3,486,583        3,650,000   

4.000%, 05/01/42

     961,835        1,005,097   

4.000%, 06/01/42

     1,496,760        1,563,390   

4.000%, 07/01/42

     5,603,364        5,853,290   

4.000%, TBA (a)

     1,700,000        1,770,988   

4.500%, 04/01/39

     220,930        237,663   

4.500%, 08/01/40

     2,935,393        3,104,723   

4.500%, 02/01/41

     184,726        198,924   

4.500%, 03/01/41

     3,928,255        4,210,504   

4.500%, 04/01/41

     12,047,201        12,844,403   

4.500%, 05/01/41

     4,895,837        5,196,253   

4.500%, 07/01/41

     1,330,939        1,433,295   

4.500%, 08/01/41

     3,991,939        4,257,703   

4.500%, 09/01/41

     1,587,300        1,714,021   

4.500%, 10/01/41

     4,452,648        4,741,838   

4.500%, 11/01/41

     9,443,118        10,144,041   

4.500%, TBA (a)

     2,400,000        2,539,500   

5.000%, 07/01/35

     2,757,825        2,977,789   

5.000%, 12/01/35

     1,958,925        2,107,100   

5.500%, 06/01/33

     1,183,294        1,295,061   

5.500%, 07/01/33

     138,450        151,528   

5.500%, 11/01/33

     171,525        187,725   

5.500%, 02/01/34

     98,577        107,888   

5.500%, 08/01/34

     135,817        148,910   

5.500%, 09/01/34

     1,220,879        1,338,580   

5.500%, 11/01/34

     14,697,052        16,103,896   

5.500%, 12/01/34

     263,468        288,522   

5.500%, 01/01/35

     924,338        1,013,449   

5.500%, 10/01/35

     25,817        28,451   

5.500%, 11/01/35

     33,639        36,688   

5.500%, 12/01/35

     293,231        320,879   

5.500%, 02/01/36

     6,631        7,232   

5.500%, 04/01/36

     55,106        59,785   

5.500%, 05/01/36

     765,923        838,268   

5.500%, 06/01/36

     145,749        158,124   

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Pyramis® Government Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Fannie Mae 30 Yr. Pool
5.500%, 07/01/36

     422,047      $ 462,735   

5.500%, 08/01/37

     1,353,142        1,482,080   

5.500%, 02/01/38

     6,258,312        6,849,437   

6.000%, 10/01/34

     421,773        470,663   

6.000%, 05/01/37

     2,233,982        2,431,002   

6.000%, 09/01/37

     165,096        183,967   

6.000%, 10/01/37

     1,618,216        1,804,760   

6.000%, 01/01/38

     1,568,760        1,743,698   

6.000%, 03/01/38

     547,837        609,006   

6.000%, 07/01/38

     315,642        349,943   

6.000%, 01/01/40

     1,384,762        1,539,624   

6.000%, 05/01/40

     2,020,143        2,246,135   

6.000%, 07/01/41

     2,304,902        2,551,363   

6.000%, 01/01/42

     177,139        197,543   

6.500%, 12/01/32

     92,871        103,971   

6.500%, 07/01/35

     101,720        113,879   

6.500%, 12/01/35

     933,302        1,044,436   

6.500%, 08/01/36

     1,671,056        1,864,221   

Fannie Mae Pool
3.500%, 08/01/42

     12,131,969        12,121,427   

3.500%, 09/01/42

     8,143,300        8,136,225   

3.500%, 12/01/42

     5,758,432        5,753,424   

3.500%, 03/01/43

     1,737,746        1,736,233   

3.500%, 04/01/43

     2,488,177        2,486,007   

3.500%, 06/01/43

     1,423,537        1,422,306   

3.500%, 07/01/43

     1,800,000        1,798,444   

5.500%, 05/01/33

     972,741        1,064,621   

5.500%, 07/01/33

     296,516        324,523   

5.500%, 02/01/35

     145,858        159,635   

6.500%, 07/01/32

     312,164        346,211   

Fannie Mae REMICS (CMO)
1.113%, 03/25/36 (b)

     1,284,931        1,302,162   

1.123%, 06/25/36 (b)

     2,093,504        2,121,249   

2.000%, 01/25/26

     2,525,840        2,558,800   

4.000%, 11/25/27

     1,932,442        2,063,382   

4.000%, 12/25/41

     1,270,000        1,326,068   

4.500%, 09/25/25

     300,000        327,743   

5.000%, 12/25/23

     765,613        829,089   

5.000%, 12/25/34

     767,304        831,175   

5.000%, 03/25/35

     712,325        781,293   

5.000%, 08/25/39

     1,020,000        1,115,960   

5.500%, 05/25/34

     1,700,000        1,811,537   

5.500%, 07/25/34

     761,971        845,605   

5.500%, 06/25/35

     732,314        797,095   

Freddie Mac 15 Yr. Gold Pool
3.500%, 01/01/26

     1,017,309        1,076,015   

4.000%, 06/01/24

     1,097,497        1,150,323   

4.000%, 07/01/24

     929,144        973,867   

4.000%, 09/01/25

     744,907        780,762   

6.000%, 01/01/24

     1,060,881        1,165,207   

Freddie Mac 20 Yr. Gold Pool
3.500%, 02/01/32

     1,955,866        2,014,955   

Freddie Mac 30 Yr. Gold Pool
3.000%, 11/01/42

     344,160        336,414   

3.000%, 01/01/43

     344,681        336,591   

Agency Sponsored Mortgage-Backed—(Continued)

  

Freddie Mac 30 Yr. Gold Pool
3.000%, 02/01/43

     1,870,216      $ 1,826,918   

3.000%, 03/01/43

     18,889,376        18,440,178   

3.000%, TBA (a)

     9,400,000        9,162,062   

3.500%, 02/01/42

     124,784        126,570   

3.500%, 04/01/42

     1,327,119        1,349,702   

3.500%, 05/01/42

     210,809        213,826   

3.500%, 06/01/42

     3,408,583        3,435,273   

3.500%, 07/01/42

     272,412        276,497   

3.500%, 08/01/42

     659,508        662,726   

3.500%, 09/01/42

     660,987        663,978   

3.500%, 10/01/42

     3,740,645        3,791,102   

3.500%, 11/01/42

     1,943,881        1,970,925   

3.500%, 12/01/42

     359,452        360,531   

3.500%, 01/01/43

     2,427,363        2,454,052   

3.500%, 02/01/43

     1,377,939        1,390,349   

3.500%, 03/01/43

     1,698,251        1,707,456   

3.500%, 04/01/43

     9,541,494        9,592,963   

3.500%, 05/01/43

     7,840,544        7,908,109   

3.500%, 06/01/43

     3,261,739        3,271,459   

4.000%, 09/01/41

     4,978,051        5,220,310   

4.000%, 10/01/41

     1,488,176        1,560,647   

4.000%, 01/01/42

     5,173,851        5,383,386   

4.000%, 03/01/42

     502,536        527,853   

4.000%, 04/01/42

     6,886,497        7,231,557   

4.000%, TBA (a)

     10,000,000        10,398,828   

4.500%, 05/01/39

     3,358,653        3,627,241   

4.500%, 06/01/39

     2,846,213        3,093,697   

4.500%, 07/01/39

     3,299,295        3,473,762   

4.500%, 09/01/39

     3,569,119        3,881,208   

4.500%, 11/01/39

     4,875,818        5,301,804   

4.500%, 12/01/39

     530,343        558,388   

4.500%, 02/01/41

     217,721        233,475   

4.500%, 08/01/41

     2,579,446        2,728,927   

4.500%, 09/01/41

     233,556        251,817   

4.500%, 10/01/41

     506,291        546,221   

5.000%, 01/01/35

     628,684        675,331   

5.000%, 05/01/35

     482,180        514,594   

5.000%, 07/01/35

     5,425,041        5,794,218   

5.000%, 11/01/35

     3,113,246        3,399,186   

5.500%, 03/01/34

     5,806,581        6,243,845   

5.500%, 07/01/35

     3,858,699        4,148,750   

Freddie Mac Multifamily Structured Pass-Through Certificates
0.543%, 04/25/19 (b)

     4,605,156        4,613,667   

1.655%, 11/25/16

     1,580,000        1,602,840   

2.873%, 12/25/21

     4,390,000        4,332,271   

3.230%, 07/25/21

     4,390,000        4,452,158   

3.808%, 08/25/20

     7,890,000        8,423,656   

3.871%, 04/25/21

     2,430,000        2,569,919   

3.974%, 01/25/21 (b)

     30,000,000        31,950,810   

4.084%, 11/25/20 (b)

     980,000        1,050,376   

4.251%, 01/25/20

     4,090,000        4,487,376   

Freddie Mac REMICS (CMO)
0.593%, 03/15/34 (b)

     1,182,587        1,186,103   

1.093%, 02/15/33 (b)

     1,009,096        1,024,483   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Pyramis® Government Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Freddie Mac REMICS (CMO)
1.200%, 07/15/15

     394,639      $ 395,313   

3.000%, 06/15/18

     1,053,954        1,087,589   

3.000%, 02/15/33

     1,711,481        1,762,464   

3.000%, 03/15/37

     2,332,689        2,389,201   

3.000%, 06/15/37

     9,460,980        9,724,534   

4.000%, 02/15/22

     200,000        216,176   

4.000%, 04/15/34

     1,085,285        1,136,983   

4.500%, 02/15/41

     81,967        86,998   

5.000%, 09/15/23

     100,000        111,019   

5.000%, 10/15/34

     986,241        1,078,667   

5.000%, 11/15/34

     1,540,000        1,654,745   

5.000%, 12/15/37

     572,197        630,134   

5.000%, 03/15/41

     500,000        539,817   

5.500%, 06/15/35

     1,973,068        2,044,021   

5.500%, 06/15/41

     4,220,000        4,839,547   

Ginnie Mae I 15 Yr. Pool
4.000%, 06/15/24

     235,869        251,289   

4.000%, 07/15/24

     142,954        152,305   

4.000%, 08/15/24

     87,840        93,587   

4.000%, 10/15/24

     183,422        195,394   

4.000%, 11/15/24

     200,816        213,930   

4.000%, 12/15/24

     316,958        337,686   

4.000%, 01/15/25

     905,313        964,489   

4.000%, 03/15/25

     189,565        201,975   

4.000%, 04/15/25

     380,069        404,964   

4.000%, 05/15/25

     389,443        414,845   

4.000%, 06/15/25

     229,272        244,211   

4.000%, 07/15/25

     388,902        414,219   

4.000%, 10/15/25

     255,993        272,654   

4.000%, 03/15/26

     576,476        613,926   

4.000%, 04/15/26

     839,660        894,173   

4.000%, 05/15/26

     774,689        824,983   

4.000%, 06/15/26

     359,084        382,396   

4.500%, 03/15/25

     2,056,915        2,206,482   

4.500%, 05/15/25

     114,658        123,017   

4.500%, 06/15/25

     330,555        354,655   

Ginnie Mae I 30 Yr. Pool
3.000%, TBA (a)

     5,200,000        5,140,688   

3.500%, 11/15/41

     578,432        596,585   

3.500%, 02/15/42

     521,329        537,696   

3.500%, 03/15/42

     608,826        627,578   

3.500%, 05/15/42

     602,735        621,289   

4.000%, 09/15/40

     3,087,025        3,249,075   

4.000%, 03/15/41

     1,380,436        1,479,958   

4.000%, 10/15/41

     1,010,736        1,081,850   

4.000%, 12/15/41

     1,030,783        1,103,695   

4.000%, TBA (a)

     1,800,000        1,886,625   

4.500%, 08/15/39

     5,653,334        6,123,595   

4.500%, 06/15/40

     2,768,575        2,954,524   

4.500%, 07/15/40

     499,621        533,061   

4.500%, 03/15/41

     2,483,258        2,653,612   

4.500%, 04/15/41

     317,557        337,638   

5.000%, 03/15/39

     231,083        249,840   

5.000%, 07/15/39

     723,015        783,233   

5.000%, 08/15/39

     419,464        460,700   
Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Ginnie Mae I 30 Yr. Pool
5.000%, 09/15/39

     449,710      $ 494,312   

5.000%, 11/15/39

     143,095        157,319   

5.000%, 04/15/40

     134,374        145,657   

5.000%, 08/15/40

     445,519        489,726   

5.000%, 04/15/41

     369,622        406,367   

5.000%, 09/15/41

     288,924        313,048   

5.500%, 10/15/39

     90,690        98,909   

6.000%, 06/15/36

     2,773,741        3,118,423   

Ginnie Mae II 30 Yr. Pool
3.000%, TBA (a)

     6,400,000        6,329,000   

3.500%, 04/20/42

     6,017,807        6,186,585   

3.500%, 05/20/42

     9,083,573        9,338,335   

3.500%, 10/20/42

     3,956,697        4,075,150   

3.500%, 11/20/42

     1,992,269        2,048,151   

4.000%, 09/20/39

     443,480        466,285   

4.000%, 11/20/40

     3,983,507        4,192,984   

4.500%, 02/20/40

     4,150,358        4,473,989   

4.500%, 05/20/40

     1,786,492        1,923,718   

4.500%, 06/20/40

     740,982        794,525   

4.500%, 09/20/40

     63,397        68,342   

5.000%, 10/20/39

     650,883        709,324   

5.000%, 11/20/39

     37,531        40,816   

5.000%, 02/20/40

     57,345        63,043   

5.000%, 03/20/40

     123,922        136,505   

5.000%, 04/20/40

     376,340        412,209   

5.000%, 06/20/40

     1,586,256        1,742,013   

5.000%, 07/20/40

     717,750        790,795   

5.000%, 08/20/40

     481,026        530,089   

5.000%, 09/20/40

     341,164        373,093   

5.000%, 10/20/40

     128,687        139,881   

5.000%, 02/20/41

     2,400,783        2,625,336   

5.000%, 04/20/41

     426,940        467,162   

5.000%, 06/20/41

     205,165        224,345   

5.000%, 07/20/41

     2,098,123        2,282,931   

6.000%, 05/20/38

     5,416,367        5,989,552   

6.000%, 08/20/38

     2,264,084        2,503,679   

6.000%, 09/20/38

     524,864        580,403   

6.000%, 12/20/38

     2,342,168        2,590,074   

6.500%, 08/20/38

     6,675,353        7,512,639   

6.500%, 09/20/38

     8,713,719        9,806,348   

Ginnie Mae II Pool
4.300%, 08/20/61

     1,392,958        1,515,466   

4.515%, 03/20/62

     4,051,556        4,461,683   

4.527%, 03/20/63

     19,650,801        21,734,376   

4.530%, 10/20/62

     1,441,597        1,592,744   

4.533%, 12/20/61

     9,603,823        10,573,012   

4.550%, 05/20/62

     6,280,336        6,928,429   

4.556%, 12/20/61

     4,362,187        4,804,923   

4.604%, 03/20/62

     1,768,360        1,953,607   

4.649%, 02/20/62

     927,719        1,025,897   

4.650%, 03/20/62

     2,656,760        2,938,985   

4.682%, 02/20/62

     1,234,104        1,365,362   

4.684%, 01/20/62

     3,881,630        4,292,897   

4.804%, 03/20/61

     2,425,196        2,674,726   

4.834%, 03/20/61

     4,359,110        4,811,132   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Pyramis® Government Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

U.S. Treasury & Government Agencies—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agency Sponsored Mortgage-Backed—(Continued)

  

Ginnie Mae II Pool
5.470%, 08/20/59

     1,045,835      $ 1,133,144   

5.612%, 04/20/58

     1,060,562        1,120,074   
   

 

 

  
      770,190,591   
   

 

 

  

Federal Agencies—16.4%

  

Federal Home Loan Banks
0.250%, 01/16/15

     30,000,000        29,981,820   

1.000%, 06/21/17

     29,750,000        29,338,468   

4.875%, 05/17/17

     20,000,000        22,733,040   

5.250%, 06/18/14

     5,360,000        5,621,236   

Federal Home Loan Mortgage Corp.
0.375%, 11/27/13

     2,535,000        2,537,413   

0.750%, 01/12/18

     20,000,000        19,364,160   

1.000%, 09/29/17

     3,592,000        3,549,252   

1.250%, 08/01/19

     3,000,000        2,860,773   

1.250%, 10/02/19

     15,000,000        14,211,255   

6.250%, 07/15/32

     1,368,000        1,812,909   

6.750%, 03/15/31

     481,000        658,949   

Federal National Mortgage Association
0.500%, 07/02/15

     31,160,000        31,201,318   

0.500%, 09/28/15

     2,191,000        2,190,014   

0.500%, 03/30/16

     8,673,000        8,624,397   

0.875%, 12/20/17

     1,299,000        1,265,453   

0.875%, 02/08/18

     1,206,000        1,170,887   

0.875%, 05/21/18

     16,604,000        16,047,135   

1.625%, 10/26/15

     2,714,000        2,781,283   

3.000%, 01/01/43

     345,585        338,152   

6.625%, 11/15/30

     1,430,000        1,940,547   

Government National Mortgage Association (CMO)
0.498%, 08/20/60 (b)

     322,880        319,275   

0.498%, 09/20/60 (b)

     311,707        308,144   

0.512%, 08/20/34 (b)

     2,738,220        2,742,235   

0.523%, 07/20/60 (b)

     389,232        384,718   

0.672%, 01/20/38 (b)

     144,957        145,796   

0.688%, 02/20/61 (b)

     423,893        422,942   

0.692%, 07/20/37 (b)

     568,209        572,645   

0.697%, 10/20/37 (b)

     3,817,502        3,848,699   

0.698%, 12/20/60 (b)

     841,583        840,071   

0.698%, 02/20/61 (b)

     118,068        117,858   

0.698%, 04/20/61 (b)

     310,583        310,040   

0.698%, 05/20/61 (b)

     615,823        614,647   

0.713%, 01/16/40 (b)

     1,154,656        1,165,233   

0.723%, 12/16/39 (b)

     763,282        769,952   

0.728%, 06/20/61 (b)

     434,539        434,355   

0.793%, 11/16/39 (b)

     873,726        884,903   

0.798%, 10/20/61 (b)

     1,500,953        1,504,947   

0.828%, 01/20/62 (b)

     1,457,256        1,463,286   

0.828%, 03/20/62 (b)

     855,758        859,284   

0.898%, 11/20/61 (b)

     1,327,144        1,337,021   

0.898%, 01/20/62 (b)

     861,867        868,364   

3.000%, 04/20/37

     358,443        367,400   

3.250%, 09/20/33

     345,750        355,832   

3.408%, 05/20/41 (b)

     668,052        737,260   

3.500%, 08/20/33

     448,713        460,833   

Federal Agencies—(Continued)

  

Government National Mortgage Association (CMO)
4.500%, 05/16/40

     80,000      $ 87,742   

4.500%, 05/20/40 (c)

     86,541        15,534   

5.010%, 09/20/60 (b)

     4,343,379        4,806,205   

5.150%, 08/20/60

     3,428,987        3,812,489   

5.302%, 07/20/60 (b)

     5,572,409        6,212,846   

5.460%, 10/20/59

     2,669,329        2,890,772   

5.500%, 07/16/34

     561,426        628,157   

5.500%, 08/20/34

     519,160        587,478   

Tennessee Valley Authority
5.500%, 06/15/38

     6,117,000        7,163,723   

5.880%, 04/01/36

     3,631,000        4,502,251   
   

 

 

  
      250,771,398   
   

 

 

  

U.S. Treasury—28.7%

  

U.S. Treasury Bonds
2.875%, 05/15/43

     17,824,000        15,774,240   

3.125%, 02/15/43

     102,637,000        95,805,276   

5.000%, 05/15/37

     10,000,000        12,764,060   

5.250%, 02/15/29

     42,519,000        54,092,162   

5.375%, 02/15/31

     24,021,000        31,291,100   

U.S. Treasury Inflation Indexed Bonds
0.625%, 02/15/43

     7,164,970        6,025,854   

U.S. Treasury Notes
0.625%, 04/30/18

     9,691,000        9,365,441   

0.875%, 07/31/19 (d)

     25,153,000        23,958,232   

1.000%, 05/31/18

     36,675,000        36,044,630   

1.375%, 05/31/20

     70,656,000        68,188,551   

1.750%, 05/15/23

     3,835,000        3,591,715   

1.875%, 06/30/20

     56,430,000        56,183,119   

2.000%, 02/15/23 (e)

     27,841,000        26,794,791   

2.375%, 05/31/18

     850,000        891,172   

2.625%, 04/30/18

     130,000        137,881   
   

 

 

  
      440,908,224   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $1,505,860,588)

       1,461,870,213   
   

 

 

  
Mortgage-Backed Securities—4.0%   

Collateralized Mortgage Obligations—3.3%

  

Granite Master Issuer plc
0.262%, 12/20/54 (144A) (b)

     1,765,020        1,710,305   

0.272%, 12/20/54 (b)

     4,040,899        3,917,597   

0.292%, 12/20/54 (b)

     2,446,207        2,370,375   

0.332%, 12/20/54 (144A) (b)

     10,636,720        10,306,982   

0.332%, 12/20/54 (b)

     634,522        614,852   

0.373%, 12/17/54 (b)

     4,393,925        4,260,372   

0.392%, 12/20/54 (b)

     275,646        267,101   

0.452%, 12/20/54 (b)

     5,859,931        5,678,273   

Granite Mortgages plc
0.552%, 09/20/44 (b)

     2,653,144        2,586,816   

0.592%, 03/20/44 (b)

     1,502,318        1,465,511   

0.676%, 01/20/44 (b)

     1,033,803        1,012,093   

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Pyramis® Government Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mortgage-Backed Securities—(Continued)

 

Security Description   Principal
Amount*		     Value  

Collateralized Mortgage Obligations—(Continued)

  

National Credit Union Administration Guaranteed Notes
0.563%, 11/06/17 (b)

     2,921,275      $ 2,920,807   

0.573%, 03/06/20 (b)

     568,939        568,228   

0.643%, 01/08/20 (b)

     12,047,026        12,129,910   

Thornburg Mortgage Securities Trust

    

0.833%, 09/25/43 (b)

     945,808        899,366   
   

 

 

  
      50,708,588   
   

 

 

  

Commercial Mortgage-Backed Securities—0.7%

  

Banc of America Re-Remic Trust

    

1.343%, 08/15/29 (144A) (b)

     4,090,000        4,092,581   

GS Mortgage Securities Corp. II
1.043%, 11/08/29 (144A) (b)

     5,500,000        5,441,315   

1.260%, 03/06/20 (144A) (b)

     1,050,000        1,052,645   
   

 

 

  
      10,586,541   
   

 

 

  

Total Mortgage-Backed Securities
(Cost $61,710,654)

       61,295,129   
   

 

 

  
Corporate Bonds & Notes—2.6%   

Computers—0.2%

  

International Business Machines Corp.

    

1.250%, 05/12/14

     3,000,000        3,020,478   
   

 

 

  

Diversified Financial Services—1.7%

  

National Credit Union Administration Guaranteed Notes
1.400%, 06/12/15

     50,000        50,808   

2.350%, 06/12/17

     10,620,000        10,988,408   

3.450%, 06/12/21

     8,645,000        9,043,016   

Private Export Funding Corp.

    

4.300%, 12/15/21

     6,000,000        6,610,818   
   

 

 

  
      26,693,050   
   

 

 

  

Retail—0.2%

  

Wal-Mart Stores, Inc.

    

1.625%, 04/15/14

     3,000,000        3,029,367   
   

 

 

  

Software—0.5%

  

Microsoft Corp.

    

2.950%, 06/01/14

     7,000,000        7,169,155   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $41,251,476)

       39,912,050   
   

 

 

  
Foreign Government—1.8%   

Sovereign—1.8%

  

Israel Government AID Bond
5.500%, 09/18/23

     13,328,000        16,123,468   

5.500%, 12/04/23

     8,905,000        10,726,438   
   

 

 

  

Total Foreign Government
(Cost $28,573,285)

       26,849,906   
   

 

 

  
Asset-Backed Securities—0.8%   
Security Description   Principal
Amount*		     Value  

Asset-Backed - Automobile—0.1%

  

AmeriCredit Automobile Receivables Trust

    

0.760%, 10/08/15

     1,693,748      $ 1,694,581   

CFC LLC

    

1.650%, 07/17/17 (144A)

     447,512        446,084   
   

 

 

  
      2,140,665   
   

 

 

  

Asset-Backed - Other—0.3%

  

Ally Master Owner Trust

    

4.250%, 04/15/17 (144A)

     5,000,000        5,255,450   
   

 

 

  

Asset-Backed - Student Loan—0.4%

  

SLM Student Loan Trust

    

0.353%, 02/27/17 (b)

     5,276,951        5,267,759   
   

 

 

  

Total Asset-Backed Securities
(Cost $12,827,875)

       12,663,874   
   

 

 

  
Short-Term Investment—2.2%   

Repurchase Agreement—2.2%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $33,899,028 on 07/01/13, collateralized by $35,240,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $34,579,250.

     33,899,000        33,899,000   
   

 

 

  

Total Short-Term Investment
(Cost $33,899,000)

       33,899,000   
   

 

 

  

Total Investments—106.7%
(Cost $1,684,122,878) (f)

       1,636,490,172   

Other assets and liabilities (net)—(6.7)%

       (102,212,989 ) 
   

 

 

  
Net Assets—100.0%     $ 1,534,277,183   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) TBA (To Be Announced) Securities are purchased on a forward commitment basis with an approximate principal amount and no defined maturity date. The actual principal and maturity date will be determined upon settlement date.
(b) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(c) Interest only security.
(d) All or a portion of the security was pledged as collateral against open centrally cleared swap contracts. As of June 30, 2013, the market value of securities pledged was $1,732,757.
(e) All or a portion of the security was pledged as collateral against open futures contracts. As of June 30, 2013, the market value of securities pledged was $284,922.
(f) As of June 30, 2013, the aggregate cost of investments was $1,684,122,878. The aggregate unrealized appreciation and depreciation of investments were $1,464,604 and $(49,097,310), respectively, resulting in net unrealized depreciation of $(47,632,706).

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Pyramis® Government Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $28,305,362, which is 1.8% of net assets.
(CMO)— Collateralized Mortgage Obligation
(REMIC)— Real Estate Mortgage Investment Conduit

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		      Notional
Amount		      Unrealized
Appreciation		  

U.S. Treasury Note 2 Year Futures

      09/30/13         105         USD 23,098,553       $ 1,447   
           

 

 

  

Swap Agreements

Centrally cleared interest rate swap agreements

 

Pay/Receive Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		    Notional Amount      Unrealized
Appreciation/
(Depreciation)		  

Receive

    3-Month USD-LIBOR      0.465 %    06/06/15      USD   1,571,000       $ 968   

Pay

    3-Month USD-LIBOR      0.465 %    06/06/15      USD   1,571,000         1,667   

Receive

    3-Month USD-LIBOR      1.235 %    06/06/18      USD   6,788,000         97,355   

Pay

    3-Month USD-LIBOR      1.235 %    06/06/18      USD   6,788,000         (65,168 ) 

Receive

    3-Month USD-LIBOR      2.335 %    06/06/23      USD   8,027,000         250,151   

Pay

    3-Month USD-LIBOR      2.335 %    06/06/23      USD   8,027,000         (270,202 ) 

Receive

    3-Month USD-LIBOR      2.395 %    07/05/23      USD 19,969,000         546,486   

Pay

    3-Month USD-LIBOR      2.395 %    07/05/23      USD 19,969,000         219,741   

Receive

    3-Month USD-LIBOR      2.395 %    07/05/23      USD   8,755,000         239,595   

Pay

    3-Month USD-LIBOR      2.395 %    07/05/23      USD   8,755,000         (223,658 ) 

Receive

    3-Month USD-LIBOR      3.245 %    06/06/43      USD 19,591,000         730,237   
             

 

 

  

Total

               $ 1,527,172   
             

 

 

  

 

(LIBOR)— London InterBank Offered Rate
(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Pyramis® Government Income Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total U.S. Treasury & Government Agencies*

    $ —         $ 1,461,870,213      $ —         $ 1,461,870,213   

Total Mortgage-Backed Securities*

      —           61,295,129        —           61,295,129   

Total Corporate Bonds & Notes*

      —           39,912,050        —           39,912,050   

Total Foreign Government*

      —           26,849,906        —           26,849,906   

Total Asset-Backed Securities*

      —           12,663,874        —           12,663,874   

Total Short-Term Investment*

      —           33,899,000        —           33,899,000   

Total Investments

    $ —         $ 1,636,490,172      $ —         $ 1,636,490,172   
                                    
Futures Contracts           

Futures Contracts (Unrealized Appreciation)

    $ 1,447       $ —        $ —         $ 1,447   
Centrally Cleared Swap Contracts           

Centrally Cleared Swap Contracts (Unrealized Appreciation)

    $ —         $ 2,086,200      $ —         $ 2,086,200   

Centrally Cleared Swap Contracts (Unrealized Depreciation)

      —           (559,028 )      —           (559,028 ) 

Total Centrally Cleared Swap Contracts

    $ —         $ 1,527,172      $ —         $ 1,527,172   

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Pyramis® Government Income Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 1,636,490,172   

Cash

      2,724,599   

Receivable for:

   

Investments sold

      52,321,672   

TBA securities sold

      40,035,772   

Fund shares sold

      11,055   

Interest

      6,470,295   
  

 

 

  

Total Assets

      1,738,053,565   

Liabilities

   

Payables for:

   

Investments purchased

      62,752,889   

TBA securities purchased

      138,675,481   

Fund shares redeemed

      1,202,400   

Variation margin payable on swap contracts

      134,501   

Net variation margin on futures contracts

      3,281   

Accrued expenses:

   

Management fees

      540,188   

Distribution and service fees

      323,234   

Deferred trustees’ fees

      21,608   

Other expenses

      122,800   
  

 

 

  

Total Liabilities

      203,776,382   
  

 

 

  

Net Assets

    $ 1,534,277,183   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,590,897,687   

Undistributed net investment income

      7,878,707   

Accumulated net realized loss

      (18,395,124 ) 

Unrealized depreciation on investments, futures contracts and swap contracts

      (46,104,087 ) 
  

 

 

  

Net Assets

    $ 1,534,277,183   
  

 

 

  

Net Assets

   

Class B

    $ 1,534,277,183   

Capital Shares Outstanding*

   

Class B

      147,592,703   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.40   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments was $1,684,122,878.

 

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Interest

    $ 13,522,754   
  

 

 

  

Total investment income

      13,522,754   

Expenses

   

Management fees

      3,330,038   

Administration fees

      20,114   

Custodian and accounting fees

      109,414   

Distribution and service fees—Class B

      1,994,493   

Audit and tax services

      30,874   

Legal

      9,788   

Trustees’ fees and expenses

      13,519   

Shareholder reporting

      34,519   

Insurance

      3,219   

Miscellaneous

      5,856   
  

 

 

  

Total expenses

      5,551,834   
  

 

 

  

Net Investment Income

      7,970,920   
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized gain (loss) on:   

Investments

      (16,571,265 ) 

Futures contracts

      (969,655 ) 

Swap contracts

      3,090,525   
  

 

 

  

Net realized loss

      (14,450,395 ) 
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (54,571,219 ) 

Futures contracts

      1,447   

Swap contracts

      614,715   
  

 

 

  

Net change in unrealized depreciation

      (53,955,057 ) 
  

 

 

  

Net realized and unrealized loss

      (68,405,452 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (60,434,532 ) 
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-12

Met Investors Series Trust

Pyramis® Government Income Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 7,970,920      $ 10,941,315   

Net realized gain (loss)

      (14,450,395 )      21,920,464   

Net change in unrealized appreciation (depreciation)

      (53,955,057 )      273,340   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (60,434,532 )      33,135,119   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (23,088,145 )      (174,555 ) 

Net realized capital gains

     

Class B

      (14,356,091 )      (1,364,353 ) 
  

 

 

    

 

 

  

Total distributions

      (37,444,236 )      (1,538,908 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      492,933        882,551,912   
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (97,385,835 )      914,148,123   

Net Assets

     

Beginning of period

      1,631,663,018        717,514,895   
  

 

 

    

 

 

  

End of period

    $ 1,534,277,183      $ 1,631,663,018   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 7,878,707      $ 22,995,932   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      13,548,673      $ 147,587,793        91,789,502      $ 1,001,461,425   

Reinvestments

      3,454,265        37,444,236        142,888        1,538,908   

Redemptions

      (17,103,252 )      (184,539,096 )      (11,120,802 )      (120,448,421 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      (100,314 )    $ 492,933        80,811,588      $ 882,551,912   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 492,933        $ 882,551,912   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-13

Met Investors Series Trust

Pyramis® Government Income Portfolio

Financial Highlights

 

Selected per share data       
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,		  
       2012     2011(a)  

Net Asset Value, Beginning of Period

    $ 11.05      $ 10.73      $ 10.00   
  

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

       

Net investment income (b)

      0.05        0.10        0.10   

Net realized and unrealized gain (loss) on investments

      (0.44 )      0.24        0.76   
  

 

 

    

 

 

    

 

 

  

Total from investment operations

      (0.39 )      0.34        0.86   
  

 

 

    

 

 

    

 

 

  

Less Distributions

       

Distributions from net investment income

      (0.16 )      (0.00 )(c)      (0.04 ) 

Distributions from net realized capital gains

      (0.10 )      (0.02 )      (0.09 ) 
  

 

 

    

 

 

    

 

 

  

Total distributions

      (0.26 )      (0.02 )      (0.13 ) 
  

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.40      $ 11.05      $ 10.73   
  

 

 

    

 

 

    

 

 

  

Total Return (%) (d)

      (3.69 )(e)      3.15        8.57  (e) 

Ratios/Supplemental Data

       

Gross ratio of expenses to average net assets (%)

      0.70  (f)      0.70        0.84  (f) 

Net ratio of expenses to average net assets (%) (g)

      0.70  (f)      0.70        0.84  (f) 

Ratio of net investment income to average net assets (%)

      1.00  (f)      0.94        1.37  (f) 

Portfolio turnover rate (%)

      192  (e)(h)      457  (h)      366  (e) 

Net assets, end of period (in millions)

    $ 1,534.3      $ 1,631.7      $ 717.5   

 

(a) Commencement of operations was May 2, 2011.
(b) Per share amounts based on average shares outstanding during the period.
(c) Distributions from net investment income were less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.
(g) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(h) Includes mortgage dollar roll and TBA transactions; excluding these transactions the portfolio turnover rate would have been 118% and 262% for the six months ended June 30, 2013 and the year ended December 31, 2012, respectively.

 

See accompanying notes to financial statements.

 

MIST-14

Met Investors Series Trust

Pyramis® Government Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Pyramis® Government Income Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B Shares are currently offered by the Portfolio.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

 

MIST-15

Met Investors Series Trust

Pyramis® Government Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over

 

MIST-16

Met Investors Series Trust

Pyramis® Government Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to swap transactions, deflation adjustments, premium amortization adjustments and paydown transactions. These adjustments have no impact on net assets or the results of operations.

Short Sales - The Portfolio may enter into a “short sale” of securities in circumstances in which, at the time the short position is open, the Portfolio owns an equal amount of the securities sold short or owns preferred stocks or debt securities, convertible or exchangeable without payment of further consideration, into an equal number of securities sold short. This kind of short sale, which is referred to as one “against the box,” may be entered into by the Portfolio to, for example, lock in a sale price for a security the Portfolio does not wish to sell immediately.

The Portfolio may also make short sales of a security it does not own, in anticipation of a decline in the market value of that security. To complete such a transaction, the Portfolio must borrow the security to make delivery to the buyer. The Portfolio then is obligated to replace the security borrowed by purchasing it at market price at the time of replacement. The price at such time may be more or less than the price at which the security was sold short by the Portfolio. Until the security is replaced, the Portfolio is required to pay to the lender any dividends or interest which accrue during the period of the loan. To borrow the security, the Portfolio also may be required to pay a premium, which would increase the cost of the security sold short. Until the Portfolio replaces a borrowed security, the Portfolio will segregate with its custodian, or set aside in the Portfolio’s records, cash or other liquid assets at such a level that (i) the amount segregated, or set aside, plus the amount deposited with the broker as collateral will equal the current value of the security sold short and (ii) the amount segregated plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time it was sold short. The Portfolio will incur a loss as a result of the short sale if the price of the security increases between the date of the short sale and the date on which the Portfolio replaces the borrowed security. The Portfolio will realize a gain if the security declines in price between those dates. This result is the opposite of what one would expect from a cash purchase of a long position in a security. The amount of any gain will be decreased, and the amount of any loss increased, by the amount of any premium, dividends or interest the Portfolio may be required to pay in connection with a short sale. No more than one third of the Portfolio’s net assets will be, when added together: (i) deposited as collateral for the obligation to replace securities borrowed to effect short sales; and (ii) segregated in connection with short sales.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $33,899,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

Stripped Securities - The Portfolio may invest in “stripped securities,” a term used collectively for certain structured fixed income securities. Stripped securities can be principal only securities (“POs”), which are debt obligations that have been stripped of unmatured interest coupons or interest only securities (“IOs”), which are unmatured interest coupons that have been stripped from debt obligations. Stripped securities do not make periodic payments of interest prior to maturity. As is the case with all securities, the market value of stripped securities will fluctuate in response to changes in economic conditions, interest rates and the market’s perception of the securities. However, fluctuations in response to interest rates may be greater in stripped securities than for debt obligations of comparable maturities that currently pay interest. The amount of fluctuation increases with a longer period of maturity.

 

MIST-17

Met Investors Series Trust

Pyramis® Government Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The yield to maturity on IOs is sensitive to the rate of principal repayments (including prepayments) on the related underlying debt obligation and principal payments may have a material effect on yield to maturity. If the underlying debt obligation experiences greater than anticipated prepayments of principal, the Portfolio may not fully recoup the initial investment in IOs.

Mortgage Dollar Rolls - The Portfolio may enter into mortgage “dollar rolls” in which a Portfolio sells TBA mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon and maturity) securities on a specified future date. During the roll period, the Portfolio foregoes principal (including prepayments of principal) and interest paid on the securities sold. Dollar rolls are accounted for as purchase and sale transactions; gain or loss is recognized at the commencement of the term of the dollar roll and each time the mortgage-backed security is rolled.

Mortgage dollar roll transactions involve the risk that the market value of the securities that the Portfolio is required to reacquire may be less than the agreed upon repurchase price of those securities and that the investment performance of securities purchased with proceeds from these transactions does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities transferred or sold, as applicable, as part of the treasury or mortgage dollar roll.

TBA Purchase & Forward Sale Commitments - The Portfolio may enter into TBA commitments to purchase or sell securities for a fixed price at a future date. TBA commitments are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased or sold declines or increases prior to settlement date, which is in addition to the risk of decline in the value of the Portfolio’s other assets. TBA forward sales commitments are valued at the current market value of the underlying securities, according to the procedures described under “Investment Valuation and Fair Value Measurements”.

Mortgage Related and Other Asset Backed Securities - The Portfolio may invest in mortgage related or other asset-backed securities. These securities may include mortgage pass-through securities, collateralized mortgaged obligations (“CMOs”), commercial mortgage-backed securities, CMO residuals, stripped mortgage backed securities (“SMBS”) and other securities that directly or indirectly represent a participation in, or are secured by or payable from, mortgage loans on real property or other receivables. The value of some mortgage or asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early repayment of principal on some mortgage-related securities may expose the Portfolio to a lower rate of return upon reinvestment of principal. The value of these securities may fluctuate in response to the market’s perception of the creditworthiness of the issuers. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.

In one type of SMBS, one class receives all of the interest from the mortgage assets (the interest-only or “IO” class), while the other class will receive all of the principal (the principal-only or “PO” class). Because principal will not be received at the maturity of an IO, adjustments are made to the book value of the security until maturity. These adjustments are netted against payments received for the IOs and the net amount is included in interest income on the Statement of Operations of the Portfolio. Payments received for POs are treated as reductions to the cost and par value of the securities. Details of mortgage related and other asset-backed securities held by the Portfolio are included in the Portfolio’s Schedule of Investments.

The Portfolio may invest a significant portion of its assets in securities of issuers that hold mortgage and asset-backed securities and direct investments in securities backed by commercial and residential mortgage loans and other financial assets. The value and related income of these securities are sensitive to changes in economic conditions, including delinquencies and/or defaults, and may be negatively impacted by increased volatility of market prices and periods of illiquidity.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

 

MIST-18

Met Investors Series Trust

Pyramis® Government Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Schedule of Investments and restricted cash, if any, is reflected on the Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust the interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contracts remaining life, to the extent that amount is positive.

Centrally Cleared Swaps: Certain clearinghouses currently offer clearing for limited types of derivatives transactions, principally credit derivatives. In a cleared derivative transaction, a Portfolio typically enters into the transaction with a financial institution counterparty, and performance of the transaction is effectively guaranteed by a central clearinghouse, thereby reducing or eliminating the Portfolio’s exposure to the credit risk of the original counterparty. The Portfolio typically will be required to post specified levels of margin with the clearinghouse or at the instruction of the clearinghouse; the margin required by a clearinghouse may be greater than the margin the Portfolio would be required to post in an uncleared derivative transaction. Only a limited number of derivative transactions are currently eligible for clearing.

 

MIST-19

Met Investors Series Trust

Pyramis® Government Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value     

Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate    Unrealized appreciation on centrally cleared swaps* (c)    $ 2,086,200       Unrealized depreciation on centrally cleared swaps* (c)    $ 559,028   
   Unrealized appreciation on futures contracts** (c)      1,447         
     

 

 

        

 

 

  
Total       $ 2,087,647          $ 559,028   
     

 

 

        

 

 

  

 

  * Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Schedule of Investments. Only the variation margin is reported within the Statement of Assets and Liabilities.
  ** Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (loss)

    Interest Rate  

Investments (a)

    $ 639,399   

Futures contracts

      (969,655 ) 

Swap contracts

      3,090,525   
  

 

 

  
   $ 2,760,269   
  

 

 

  

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Interest Rate  

Futures contracts

    $ 1,447   

Swap contracts

      614,715   
  

 

 

  
   $ 616,162   
  

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(b)		  

Investments

    $ 63,977,000 (e) 

Futures contracts long

      17,533,333   

Swap contracts

      75,271,667   

 

  (a) Includes options purchased which are part of investments as shown in the Statement of Assets and Liabilities and net realized gain (loss) on investments and net change in unrealized appreciation (depreciation) on investments as shown in the Statement of Operations.
  (b) Averages are based on activity levels during 2013.
  (c) Financial instrument not subject to a master netting agreement.
  (d) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to over collateralization.
  (e) Average notional amount reflects activity over a one month period.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing

 

MIST-20

Met Investors Series Trust

Pyramis® Government Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, including mortgage dollar roll and TBA transactions and, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases      Sales  
U.S. Government      Non U.S. Government      U.S. Government      Non U.S. Government  
$ 3,218,953,952       $ 70,320,384       $ 3,104,090,127       $ 95,807,870   

Purchases and sales of mortgage dollar rolls and TBA transactions for the six months ended June 30, 2013 were as follows:

 

Purchases

    Sales  
$1,318,710,801    $ 1,328,462,506   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Pyramis Global Advisors, LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

 

MIST-21

Met Investors Series Trust

Pyramis® Government Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended

June 30, 2013

    % per annum     Average Daily Net Assets
$3,330,038      0.520 %    First $100 million
     0.440 %    $100 million to $500 million
     0.400 %    Over $500 million

Expense Limitation Agreement - The Adviser entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement continued in effect with respect to the Portfolio until April 28, 2013. Pursuant to that Expense Limitation Agreement, the Adviser agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and acquired fund fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, were limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under current
Expense Limitation Agreement

Class B

1.05%

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred.

Effective April 29, 2013, there was no longer an expense cap for the Portfolio. For the six months ended June 30, 2013, there were no amounts waived or expensed repaid to the Adviser in accordance with the Expense Limitation Agreement.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

 

MIST-22

Met Investors Series Trust

Pyramis® Government Income Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$1,538,908    $ 8,255,589       $ —       $ —       $ 1,538,908       $ 8,255,589   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$37,156,374    $ —       $ 4,118,123       $ —       $ 41,274,497   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-23

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Managed by Pyramis Global Advisors, LLC

Portfolio Manager Commentary*

 

PERFORMANCE

Since its inception on April 19, 2013, the Class B shares of the Pyramis® Managed Risk Portfolio returned -1.50%. The Portfolio’s benchmark, the Dow Jones Moderate Portfolio Index1, returned 0.52%. The Portfolio and benchmark returns since April 22, 2013, the commencement of investment operations were -1.28% and 0.08%, respectively.

MARKET ENVIRONMENT / CONDITIONS

Global markets suffered a bout of volatility during the period since inception, particularly bond markets where yields rose due to the perception that monetary conditions would tighten sooner than expected in the U.S. and China. U.S. stocks added to their strong one-year gains during the period, but most other asset classes experienced negative returns. Rising interest rates and widening credit spreads led to losses across bond categories, while commodities and emerging markets suffered from a slower outlook for China. The maturing U.S. expansion, marked by positive but sluggish job growth, proved resilient to fiscal tightening in the form of tax increases at the start of the year and sequestration starting in March. The U.S. continued to benefit from a recovery in construction activity, accommodative monetary policy, tentative signs of a global recovery, and healthy credit availability.

Several developed economies outside the U.S. started to stabilize during the period and some even began to positively inflect. Japan’s new leadership is pursuing a range of stimulative fiscal and monetary policies and structural reforms, but concerns over long-term fiscal balance remained. In Europe, there were tentative signs that peripheral European economies have stabilized after devastating downward adjustments and in the core European countries signs of cyclical recovery also became more apparent. However, the growth outlook for many developing economies began to deteriorate.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Pyramis Managed Risk Portfolio seeks total return while managing risk through a target volatility approach. The Portfolio is implemented through a disciplined and integrated investment process whereby it seeks Portfolio volatility of 10% and aims to achieve a smoother return profile. The Portfolio is constructed as a fund-of-funds and invests in Fidelity mutual funds, ETFs and index futures with a strategic allocation of 60% equities, 35% fixed income and 5% cash. In addition, the portfolio manager also have the flexibility to invest tactically in extended asset classes such as high yield and emerging market debt, real estate, and commodities.

During the early part of the period, the Portfolio shifted some assets away from investment-grade debt and into equities, particularly U.S. equity. Although earnings growth of the overall U.S. equity market decelerated on slowing revenue and productivity growth, corporate profits remained supported by the improving economy and limited margin pressures. In addition, valuations suggested decent return prospects. The non-U.S. equities exposure leaned toward Japan, as earnings expectations increased—in contrast with negative revisions throughout much of the rest of the world—and efficiency gains provided a more competitive cost structure. The Portfolio’s underweighting in investment-grade bonds was based on a moderated outlook for the asset class during the period. With nominal interest rates near historical lows, U.S. Treasury yields were roughly in line with current rates of inflation, a challenging environment to achieve positive real returns. The interest rate overlay detracted from performance during the period due to rising interest rates and increased volatility in the bond markets.

Market uncertainty picked up later in the period, and the Portfolio reduced its equity overweight to a more modest level, narrowed the investment-grade debt underweight, and also increased its cash position.

The Portfolio used index futures contracts to help provide additional portfolio flexibility and balance the sources of risk. At period end, the Portfolio held S&P 500 equity index futures (U.S. equities) and MSCI EAFE equity index futures (developed non-U.S. equities).

 

MIST-1

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Managed by Pyramis Global Advisors, LLC

Portfolio Manager Commentary*—(Continued)

 

As of June 30, the Portfolio continued to favor equities over bonds, but to a lesser degree than at the beginning of the period. Within the equity allocation, the Portfolio was overweight the U.S. relative to Europe and had modest exposure to emerging markets. Fixed income holdings were weighted toward investment-grade credit.

Xuehai En

Portfolio Manager

Bob Vick

Portfolio Manager

Pyramis Global Advisors, LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

CUMULATIVE RETURNS (%) (FOR THE PERIOD ENDED JUNE 30, 2013)

 

        Since Inception2  
Pyramis® Managed Risk Portfolio       

Class B

        -1.50   
Dow Jones Moderate Index        0.52   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 4/19/2013. Index returns are based on an inception date of 4/19/2013.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Fidelity Total Bond Fund      9.6   
Fidelity Intermediate Bond Fund      9.3   
Fidelity Conservative Income Bond Fund      8.2   
SPDR S&P 500 ETF Trust      7.2   
Fidelity Growth & Income Portfolio      5.1   
iShares Core Total US Bond Market ETF      5.0   
Fidelity Large Cap Stock Fund      4.1   
Fidelity OTC Portfolio      3.1   
Vanguard FTSE Developed Markets ETF      2.5   
Fidelity Value Fund      2.3   

Top Sectors

 

     % of
Market Value of
Total Investments		  
Mutual Funds      69.5   
Cash and Cash Equivalent      30.5   

 

MIST-3

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 19, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Pyramis® Managed Risk Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
April 19,
2013(a)		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
April 19, 2013
to
June 30,
2013		  

Class B(a)(b)(c)(d)

      Actual      0.80 %     $ 1,000.00         $ 985.00         $ 1.59   
     Hypothetical*      0.80 %     $ 1,000.00         $ 1,008.40         $ 1.61   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (73 days) in the most recent fiscal half-year, divided by 365 (to reflect the ten week period).

(a) Commencement of operations was April 19, 2013.

(b) The annualized expense ratio shown reflects an expense limitation agreement between MetLife Advisers, LLC and the Portfolio as described in Note 6 of the Notes to Financial Statements.

(c) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

(d) The annualized expense ratio does not include the expenses of the Underlying Portfolios in which the Portfolio invests.

 

MIST-4

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Mutual Funds—73.2% of Net Assets

 

Security Description   Shares    

Value

  

Investment Company Securities—73.2%

    

Fidelity Blue Chip Growth Fund (a)

     6,145      $ 342,150   

Fidelity Blue Chip Value Fund (a)

     25,439        321,298   

Fidelity Conservative Income Bond Fund (a)

     205,930        2,065,480   

Fidelity Contrafund (a)

     1,084        92,874   

Fidelity Emerging Markets Discovery Fund (a)

     1,844        21,691   

Fidelity Emerging Markets Fund (a)

     1,187        26,351   

Fidelity Equity-Income Fund (a)

     9,295        497,667   

Fidelity Floating Rate High Income Fund (a)

     5,011        49,558   

Fidelity Growth & Income Portfolio (a)

     51,840        1,268,525   

Fidelity Intermediate Bond Fund (a)

     215,096        2,333,787   

Fidelity International Discovery Fund (a)

     16,256        563,910   

Fidelity International Real Estate Fund (a)

     2,308        22,899   

Fidelity International Small Cap Fund (a)

     16,742        378,877   

Fidelity Japan Smaller Companies Fund (a)

     1,076        13,177   

Fidelity Large Cap Stock Fund (a)

     44,856        1,040,651   

Fidelity Low-Priced Stock Fund (a)

     2,084        94,919   

Fidelity Mega Cap Stock Fund (a)

     38,837        528,186   

Fidelity OTC Portfolio (a)

     11,020        777,115   

Fidelity Real Estate Income Fund (a)

     2,088        24,308   

Fidelity Real Estate Investment Portfolio (a)

     3,085        104,301   

Fidelity Total Bond Fund (a)

     228,281        2,412,931   

Fidelity Value Fund (a)

     6,523        582,547   

iShares Core Total US Bond Market ETF

     11,768        1,261,530   

iShares MSCI EAFE Index Fund

     10,142        581,948   

iShares MSCI Japan Small Cap Index Fund

     550        27,297   

SPDR S&P 500 ETF Trust

     11,302        1,808,433   

Vanguard FTSE Developed Markets ETF

     17,793        633,609   

WisdomTree Japan Hedged Equity Fund

     10,719        488,894   
   

 

 

  

Total Mutual Funds
(Cost $18,574,311)

       18,364,913   
   

 

 

  
Short-Term Investment—32.2%    
Security Description   Principal
Amount*		     Value  

Repurchase Agreement—32.2%

    

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $8,077,007 on 07/01/13, collateralized by $8,400,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $8,242,500.

     8,077,000      $ 8,077,000   
   

 

 

  

Total Short-Term Investment
(Cost $8,077,000)

       8,077,000   
   

 

 

  

Total Investments—105.4%
(Cost $26,651,311) (b)

       26,441,913   

Other assets and liabilities (net)—(5.4)%

       (1,343,689 ) 
   

 

 

  
Net Assets—100.0%     $ 25,098,224   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Affiliated Issuer. (See Note 8 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(b) As of June 30, 2013, the aggregate cost of investments was $26,651,311. The aggregate unrealized appreciation and depreciation of investments were $38,918 and $(248,316), respectively, resulting in net unrealized depreciation of $(209,398).
(ETF)— Exchange-Traded Fund

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		    Number of
Contracts		      Notional
Amount		      Unrealized
Depreciation		  

MSCI EAFE E-Mini Index Futures

    09/20/13      18         USD        1,520,429       $ (44,699 ) 

S&P 500 E-Mini Index Futures

    09/20/13      38         USD        3,077,450         (38,780 ) 

U.S. Treasury Bond Futures

    09/19/13      29         USD        4,049,493         (110,024 ) 

U.S. Treasury Note 10 Year Futures

    09/19/13      26         USD        3,362,644         (72,019 ) 
             

 

 

  

Net Unrealized Depreciation

  

    $ (265,522 ) 
             

 

 

  

 

(USD)— United States Dollar

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1     Level 2      Level 3      Total  

Total Mutual Funds

    $ 18,364,913      $ —         $ —         $ 18,364,913   

Total Short-Term Investment*

      —          8,077,000         —           8,077,000   

Total Investments

    $ 18,364,913      $ 8,077,000       $ —         $ 26,441,913   
                                    
Futures Contracts           

Futures Contracts (Unrealized Depreciation)

    $ (265,522 )    $ —         $ —         $ (265,522 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 4,801,711   

Affiliated investments at value (b)

      13,563,202   

Repurchase Agreement

      8,077,000   

Cash

      497   

Cash collateral for futures contracts

      309,700   

Receivable for:

   

Investments sold

      117,903   

Fund shares sold

      1,071,158   

Dividends and interest

      12,581   

Variation margin on futures contracts

      6,293   

Due from investment adviser

      15,421   

Other assets

      767   
  

 

 

  

Total Assets

      27,976,233   

Liabilities

   

Payables for:

   

Investments purchased

      2,813,404   

Fund shares redeemed

      1,330   

Variation margin on futures contracts

      16,570   

Accrued expenses:

   

Management fees

      2,922   

Distribution and service fees

      3,424   

Deferred trustees’ fees

      1,937   

Other expenses

      38,422   
  

 

 

  

Total Liabilities

      2,878,009   
  

 

 

  

Net Assets

    $ 25,098,224   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 25,630,195   

Undistributed net investment income

      4,428   

Accumulated net realized loss

      (61,479 ) 

Unrealized depreciation on investments, affiliated investments and futures contracts

      (474,920 ) 
  

 

 

  

Net Assets

    $ 25,098,224   
  

 

 

  

Net Assets

   

Class B

    $ 25,098,224   

Capital Shares Outstanding*

   

Class B

      2,547,199   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 9.85   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement and affiliated investments, was $4,908,977.
(b) Identified cost of affiliated investments was $13,665,334.

Statement of Operations

 

Period Ended June 30, 2013 (Unaudited) (a)

 

Investment Income

   

Dividends

    $ 9,407   

Dividends from affiliated investments

      12,951   

Interest

      73   
  

 

 

  

Total investment income

      22,431   

Expenses

   

Management fees

      10,126   

Administration fees

      157   

Custodian and accounting fees

      6,989   

Distribution and service fees—Class B

      5,626   

Audit and tax services

      10,704   

Legal

      17,043   

Trustees’ fees and expenses

      7,035   

Shareholder reporting

      2,130   

Insurance

      34   

Miscellaneous

      1,240   
  

 

 

  

Total expenses

      61,084   

Less management fee waiver

      (5,220 ) 

Less expenses reimbursed by the Adviser

      (37,861 ) 
  

 

 

  

Net expenses

      18,003   
  

 

 

  

Net Investment Income

      4,428   
  

 

 

  

Net Realized and Unrealized Loss

   
Net realized loss on:   

Investments

      (30,336 ) 

Affiliated investments

      (1,016 ) 

Futures contracts

      (30,127 ) 
  

 

 

  

Net realized loss

      (61,479 ) 
  

 

 

  
Net change in unrealized depreciation on:   

Investments

      (107,266 ) 

Affiliated investments

      (102,132 ) 

Futures contracts

      (265,522 ) 
  

 

 

  

Net change in unrealized depreciation

      (474,920 ) 
  

 

 

  

Net realized and unrealized loss

      (536,399 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (531,971 ) 
  

 

 

  

 

(a) Commencement of operations was April 19, 2013.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Statements of Changes in Net Assets

 

     Period Ended
June 30,
2013
(Unaudited)(a)		  

Increase (Decrease) in Net Assets:

   

From Operations

   

Net investment income

    $ 4,428   

Net realized loss

      (61,479 ) 

Net change in unrealized depreciation

      (474,920 ) 
  

 

 

  

Decrease in net assets from operations

      (531,971 ) 
  

 

 

  

Increase in net assets from capital share transactions

      25,630,195   
  

 

 

  

Total Increase in Net Assets

      25,098,224   

Net Assets

   

Beginning of period

      0   
  

 

 

  

End of period

    $ 25,098,224   
  

 

 

  

Undistributed net investment income

   

End of period

    $ 4,428   
  

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Period Ended
June 30, 2013
(Unaudited)(a)		  
     Shares     Value  

Class B

     

Sales

      2,588,803      $ 26,039,360   

Redemptions

      (41,604 )      (409,165 ) 
  

 

 

    

 

 

  

Net increase

      2,547,199      $ 25,630,195   
  

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 25,630,195   
    

 

 

  

 

(a) Commencement of operations was April 19, 2013.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Financial Highlights

 

Selected per share data       
     Class B  
     Period
Ended
June 30,
2013(a)
(Unaudited)		  
    

Net Asset Value, Beginning of Period

    $ 10.00   
  

 

 

  

Income (Loss) from Investment Operations

   

Net investment income (b)

      0.00  (c) 

Net realized and unrealized gain (loss) on investments

      (0.15 ) 
  

 

 

  

Total from investment operations

      (0.15 ) 
  

 

 

  

Net Asset Value, End of Period

    $ 9.85   
  

 

 

  

Total Return (%) (d)

      (1.50 )(e) 

Ratios/Supplemental Data

   

Gross ratio of expenses to average net assets (%) (g)

      2.71  (f) 

Net ratio of expenses to average net assets (%) (g) (h)

      0.80  (f) 

Ratio of net investment income to average net assets (%)

      0.20  (f) 

Portfolio turnover rate (%)

      51  (e) 

Net assets, end of period (in millions)

    $ 25.1   

 

(a) Commencement of operations was April 19, 2013.
(b) Per share amounts based on average shares outstanding during the period.
(c) Net investment income (loss) was less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.
(g) The ratio of operating expenses to average net assets does not include expenses of the Underlying Portfolios in which the Portfolio invests.
(h) Includes the effects of management fee waivers and expenses reimbursed by the Adviser.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Pyramis® Managed Risk Portfolio (the “Portfolio”) (commenced operations on April 19, 2013), which is diversified. The Portfolio’s shares first became available to investors through certain separate accounts on April 29, 2013. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class B Shares are currently offered by the Portfolio.

The Portfolio invests approximately 80% of its assets in shares of mutual funds offered by Fidelity Investments (“Underlying Portfolios”) and exchange-traded funds (“Underlying ETFs”) and approximately 20% of its assets in derivative instruments such as stock index futures.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in the Underlying Portfolios are valued at reported net asset value per share on the valuation date. Investments in the Underlying ETFs are valued at the closing market quotation for their shares. The net asset value of the Portfolio is calculated based on

 

MIST-10

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

the market values of the Underlying Portfolios and Underlying ETFs in which the Portfolio invests. For information about the use of fair value pricing by the Underlying Portfolios and Underlying ETFs, please refer to the prospectuses for such Underlying Portfolios and Underlying ETFs. These investments are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No

 

MIST-11

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, swap transactions and short-term dividend reclass from Underlying Portfolios. These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $8,077,000, which is included on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Liability Derivatives

  

Risk Exposure

   

Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate    Unrealized depreciation on futures contracts*    $ 182,043   
Equity    Unrealized depreciation on futures contracts*      83,479   
     

 

 

  
Total       $ 265,522   
     

 

 

  

 

  * Includes cumulative appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities.

Transactions in derivative instruments during the period ended June 30, 2013, were as follows:

 

Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Equity      Total  

Futures contracts

    $ (56,329 )    $ 26,202       $ (30,127 ) 
  

 

 

    

 

 

     

 

 

  

 

MIST-12

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Statement of Operations Location—Net Change in Unrealized Appreciation (Depreciation)

    Interest Rate     Equity     Total  

Futures contracts

    $ (182,043 )    $ (83,479 )    $ (265,522 ) 
  

 

 

    

 

 

    

 

 

  

For the period ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(a)		  

Futures contracts long

    $ 3,802,700   

Futures contracts short

      501,150   

 

  (a) Averages are based on activity levels during 2013.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

 

MIST-13

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the period ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 24,823,063       $ 0       $ 6,209,308   

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Pyramis Global Advisors, LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the period ended

June 30, 2013

    % per annum     Average Daily Net Assets
$10,126      0.450 %    ALL

In the event the Portfolio primarily invests its assets directly in investment securities or in shares of registered investment companies other than those offered by Fidelity Investments, the Portfolio will pay the Adviser a monthly fee at the annual rate of 0.80% of the Portfolio’s average daily net assets.

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, through April 27, 2014, to waive its management fee in the same amount as any fees MetLife or its affiliates receive from the Subadvisor and its affiliates for recordkeeping and other administrative services. The Subadviser voluntarily agreed to waive its entire subadvisory fee through July 17, 2013. The Adviser voluntarily agreed to waive a portion of the management fee in an amount equal to the subadvisory fees waived through July 17, 2013. Amounts waived for the period ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Expense Limitation Agreement - The Adviser has entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement shall continue in effect with respect to the Portfolio until April 27, 2014. Pursuant to that Expense Limitation Agreement, the Adviser has agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and acquired fund fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, are limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under Current
Expense Limitation Agreement		    Expenses Deferred in 2013
Subject to repayment until December 31,		  

Class B

   

2018

  
0.80%    $ 37,861   

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred. As of June 30, 2013, there was $37,861 in expense deferrals eligible for recoupment by the Adviser.

 

MIST-14

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Amounts waived for the period ended June 30, 2013 are shown as expenses reimbursed by the Adviser in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the period ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the period ended June 30, 2013 is as follows:

A summary of Portfolio’s transactions in the securities of affiliated Underlying Portfolios for the six months ended June 30, 2013 was as follows:

 

Underlying Portfolio

   

Number of shares
held at
December 31, 2012

     

Shares purchased

     

Shares sold

     

Number of shares
held at
June 30, 2013

  

Fidelity Blue Chip Growth Fund

      —         6,145         —         6,145   

Fidelity Blue Chip Value Fund

      —         25,439         —         25,439   

Fidelity Conservative Income Bond Fund

      —         307,529         101,599         205,930   

Fidelity Contrafund

      —         1,084         —         1,084   

Fidelity Emerging Markets Discovery Fund

      —         1,844         —         1,844   

Fidelity Emerging Markets Fund

      —         1,187         —         1,187   

Fidelity Equity-Income Fund

      —         9,295         —         9,295   

Fidelity Floating Rate High Income Fund

      —         5,011         —         5,011   

Fidelity Growth & Income Portfolio

      —         51,840         —         51,840   

Fidelity Intermediate Bond Fund

      —         215,096         —         215,096   

Fidelity International Discovery Fund

      —         16,256         —         16,256   

Fidelity International Real Estate Fund

      —         2,308         —         2,308   

Fidelity International Small Cap Fund

      —         16,742         —         16,742   

Fidelity Japan Smaller Companies Fund

      —         1,076         —         1,076   

Fidelity Large Cap Stock Fund

      —         44,856         —         44,856   

Fidelity Low-Priced Stock Fund

      —         2,084         —         2,084   

 

MIST-15

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Underlying Portfolio

   

Number of shares
held at
December 31, 2012

     

Shares purchased

     

Shares sold

     

Number of shares
held at
June 30, 2013

  

Fidelity Mega Cap Stock Fund

      —         38,837         —         38,837   

Fidelity OTC Portfolio

      —         11,020         —         11,020   

Fidelity Real Estate Income Fund

      —         2,088         —         2,088   

Fidelity Real Estate Investment Portfolio

      —         3,085         —         3,085   

Fidelity Total Bond Fund

      —         228,281         —         228,281   

Fidelity Value Fund

      —         6,523         —         6,523   

 

Underlying Portfolio

   

Net Realized
Gain/(Loss) on sales
of Underlying
Portfolios

    

Capital Gain
Distributions from
Underlying
Portfolios

     

Dividend Income
from Underlying
Portfolios

     

Ending Value
as of
June 30, 2013

  

Fidelity Blue Chip Growth Fund

    $ —      $ —       $ —       $ 342,150   

Fidelity Blue Chip Value Fund

      —        —         —         321,298   

Fidelity Conservative Income Bond Fund

      (1,016 )      —         —         2,065,480   

Fidelity Contrafund

      —        —         —         92,874   

Fidelity Emerging Markets Discovery Fund

      —        —         —         21,691   

Fidelity Emerging Markets Fund

      —        —         —         26,351   

Fidelity Equity-Income Fund

      —        —         —         497,667   

Fidelity Floating Rate High Income Fund

      —        —         159         49,558   

Fidelity Growth & Income Portfolio

      —        —         —         1,268,525   

Fidelity Intermediate Bond Fund

      —        —         803         2,333,787   

Fidelity International Discovery Fund

      —        —         —         563,910   

Fidelity International Real Estate Fund

      —        —         —         22,899   

Fidelity International Small Cap Fund

      —        —         —         378,877   

Fidelity Japan Smaller Companies Fund

      —        —         —         13,177   

Fidelity Large Cap Stock Fund

      —        —         9,020         1,040,651   

Fidelity Low-Priced Stock Fund

      —        —         —         94,919   

Fidelity Mega Cap Stock Fund

      —        —         —         528,186   

Fidelity OTC Portfolio

      —        —         —         777,115   

Fidelity Real Estate Income Fund

      —        —         283         24,308   

Fidelity Real Estate Investment Portfolio

      —        —         360         104,301   

Fidelity Total Bond Fund

      —        —         2,326         2,412,931   

Fidelity Value Fund

      —        —         —         582,547   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ (1,016 )    $ —       $ 12,951       $ 13,563,202   
  

 

 

    

 

 

     

 

 

     

 

 

  

 

MIST-16

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements

 

At an in-person meeting of the Board of Trustees (the “Board”) of the Met Investors Series Trust (the “Trust”) held on January 29, 2013, the Board, including a majority of the Trustees who are not considered to be “interested persons” of the Trust (the “Independent Trustees”) under the Investment Company Act of 1940, as amended (the “1940 Act”), initially approved the Trust’s advisory agreement (the “Advisory Agreement”) with MetLife Advisers, LLC (the “Adviser”) and the investment sub-advisory agreement (the “Sub-Advisory Agreement,” and collectively with the Advisory Agreement, the “Agreements”) between the Adviser and Pyramis Global Advisors, LLC (the “Subadviser”) for the Pyramis® Managed Risk Portfolio, a new series of the Trust (the “Portfolio”).

In considering the Agreements, the Board reviewed a variety of materials provided by the Adviser and the Subadviser relating to the Portfolio, the Adviser and the Subadviser, including comparative fee and expense information for an appropriate peer group of similar mutual funds, back-tested performance information for the Portfolio’s proposed strategy, and other information regarding the nature, extent and quality of services to be provided by the Adviser and the Subadviser under their respective Agreements. The Independent Trustees also assessed a report provided by the Board’s independent consultant, who reviewed and provided analyses regarding fees and expenses, and other information provided by, or at the direction of, the Adviser and Subadviser, as more fully discussed below.

The Independent Trustees were separately advised by independent legal counsel throughout the process. Prior to voting to approve the Agreements at the meeting held on January 29, 2013, the Independent Trustees also received a memorandum from their independent legal counsel discussing the legal standards for their consideration of the proposed initial approval of the Agreements. The Board also received a presentation from the Adviser regarding the Portfolio at a meeting held on January 10, 2013, and received presentations regarding the Portfolio from the Adviser and the Subadviser at meetings held on January 22, 2013 and January 29, 2013, during which representatives of the Adviser and the Subadviser responded to questions from the Independent Trustees. The Independent Trustees also discussed the proposed initial approval of the Agreements in private sessions with their independent legal counsel at which no representatives of management were present.

In considering whether to approve the Agreements, the Board reviewed and analyzed the factors it deemed relevant, including: (1) the nature, extent and quality of the services to be provided to the Portfolio by the Adviser and the Subadviser; (2) the Adviser’s and the Subadviser’s personnel and operations; (3) the financial condition of the Adviser and of the Subadviser; (4) the level and method of computing the Portfolio’s proposed advisory and subadvisory fees; (5) the anticipated profitability of the Adviser under the Advisory Agreement; (6) any “fall-out” benefits to the Adviser, the Subadviser and their affiliates (i.e., ancillary benefits realized by the Adviser, the Subadviser or their affiliates from the Adviser’s or Subadviser’s relationship with the Trust); (7) the anticipated effect of growth in size on the Portfolio’s performance and expenses; (8) fees paid by any comparable institutional and retail accounts; and (9) possible conflicts of interest. The Board also considered the nature, quality, and extent of the services to be provided to the Portfolio by the Adviser’s affiliates, including distribution services.

Nature, extent and quality of services. In considering the nature, extent and quality of the services to be provided by the Adviser to the Portfolio, the Board took into account the extensive responsibilities that the Adviser would have as investment adviser to the Portfolio, including the provision of investment advisory services to the Portfolio, the selection of the Subadviser for the Portfolio and oversight of the Subadviser’s compliance with the Portfolio’s policies and objective, review of brokerage matters including with respect to trade allocation and best execution, oversight of general fund compliance with federal and state laws, and the implementation of Board directives as they relate to the Portfolio. The Board also considered the Adviser’s risk management processes. The Adviser’s role in coordinating the activities of the Portfolio’s other service providers was also considered. The Board also evaluated the expertise and performance of the personnel who would be overseeing the Subadviser and compliance with the Portfolio’s investment restrictions, tax and other requirements. The Board considered information received from the Trust’s Chief Compliance Officer (the “CCO”) regarding the Portfolio’s compliance policies and procedures established pursuant to Rule 38a-1 under the 1940 Act, including the policies and procedures in place relating to proxy voting. Based on the information provided to the Board and its discussions with the CCO, the Board approved the Rule 38a-1 compliance policies and procedures as they relate to the Portfolio. The Board also took into account its knowledge of the Adviser’s management and the quality of the performance of the Adviser’s duties through Board meetings, discussions and reports during the preceding year. The Board also took into consideration the quality of services the Adviser provided to other portfolios of the Trust.

The Board also recognized the Adviser’s reputation and long-standing experience in serving as an investment adviser to the Trust. In addition, the Board considered the financial condition of the Adviser and whether it had the financial wherewithal to provide a high level and quality of services to the Portfolio.

With respect to the services to be provided by the Subadviser, the Board considered information provided to the Board by the Subadviser. The Board considered the Subadviser’s current level of staffing and its overall resources, as well as its compensation program. The Board reviewed the Subadviser’s history and investment experience, as well as information regarding the qualifications,

 

MIST-17

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

background and responsibilities of the Subadviser’s investment and compliance personnel who would be providing services to the Portfolio. The Board also took into account its knowledge of the Subadviser in connection with the Subadviser’s provision of subadvisory services to another portfolio of the Trust. The Board also considered the Subadviser’s compliance program. The Board also took into account the Subadviser’s risk assessment and monitoring process. The Board noted the Subadviser’s regulatory and disciplinary history, including whether it was currently involved in any regulatory actions or investigations as well as material litigation, and any settlements and amelioratory actions undertaken, as appropriate. The Board also noted that the CCO and his staff would be conducting regular, periodic compliance reviews with the Subadviser and present reports to the Independent Trustees regarding the same, which would include evaluating the regulatory compliance system of the Subadviser and procedures reasonably designed by the Subadviser to assure compliance with the federal securities laws, including issues related to late trading and market timing, best execution, fair value pricing, and proxy voting procedures, among others. The Board also took into account the financial condition of the Subadviser. Based on the information provided to the Board and its discussions with the CCO, the Board approved the Rule 38a-1 compliance policies and procedures as they relate to the Portfolio.

The Board considered the Subadviser’s investment process and philosophy. The Board took into account that the Subadviser’s responsibilities would include the development and maintenance of an investment program for the Portfolio which would be consistent with the Portfolio’s investment objective, the selection of investment securities and the placement of orders for the purchase and sale of such securities, as well as the implementation of compliance controls related to performance of these services. The Board also reviewed the Subadviser’s brokerage policies and practices, including with respect to best execution and soft dollars.

Based on its consideration and review of the foregoing information, the Board concluded that the nature, extent and quality of services to be provided by the Adviser and by the Subadviser were satisfactory and that there was a reasonable basis on which to conclude that each would provide a high quality of investment services to the Portfolio.

Performance. The Board took into account that the Portfolio utilizes a relatively unique investment strategy designed to manage volatility, and noted the unavailability of comparable performance information for this type of strategy; however, the Board did consider information that described how the Portfolio is designed to perform under a variety of market conditions. The Board also considered performance information of the underlying portfolios in which the Portfolio intends to invest. In addition, the Board considered the performance of other funds managed by the Portfolio’s portfolio managers.

Fees and expenses. The Board gave substantial consideration to the proposed management fee payable under the Advisory Agreement and the proposed subadvisory fee payable under the Sub-Advisory Agreement. In addition, the Independent Trustees reviewed a report prepared by Bobroff Consulting, Inc., an independent consultant (“Bobroff”), which analyzed the proposed fees to be paid by the Portfolio in light of fees paid to other investment managers by other comparable funds, and the method of computing the Portfolio’s proposed fee. In addition, the Board considered the Portfolio’s proposed management fee and total expenses as compared to similarly situated investment companies underlying variable insurance products deemed to be comparable to the Portfolio as determined by Bobroff. The Board took into account the limited usefulness of the peer group in which the Portfolio was included for comparative purposes. In comparing the Portfolio’s proposed management fee to that of comparable funds, the Board noted that such fee includes both advisory and administrative fees.

The Board noted that the subadvisory fee for the Portfolio would be paid by the Adviser, not the Portfolio, out of the management fee. The Board also considered that the Adviser had agreed to enter into an expense limitation agreement with the Portfolio, pursuant to which the Adviser would agree to waive a portion of its management fee and/or reimburse certain expenses as a means of limiting the Portfolio’s total annual operating expenses.

The Board considered that, according to a report prepared by Bobroff, the Portfolio’s proposed management fee was above the median of the peer group. The Board also considered that the Portfolio’s estimated total expenses (exclusive of 12b-1 fees) were above the median of the peer group. The Board took into account management’s discussion of the Portfolio’s proposed fees and estimated expenses. The Board also considered the Portfolio’s proposed stand-by management fee that would take effect in the event the Adviser implemented certain structural changes to the Portfolio. After consideration of all relevant factors, the Board concluded that the proposed management and subadvisory fees, including the stand-by management fee, were consistent with industry norms and were fair and reasonable in light of the services to be provided.

Profitability. The Board examined the anticipated profitability of the Adviser with respect to the Portfolio. The Board noted that a major component of profitability of the Adviser would be the margin between the management fee that the Adviser would receive from the Portfolio and the portion of that fee the Adviser would pay to the Subadviser. The Board also took into account the costs borne by the Adviser’s affiliates that support the operations of the Adviser, as well as considered the profitability of the insurance product, the function of which is supported in part by the Adviser’s revenues under the Advisory Agreement. The Board also considered that the

 

MIST-18

Met Investors Series Trust

Pyramis® Managed Risk Portfolio

Board of Trustees’ Consideration of Advisory and Sub-Advisory Agreements—(Continued)

 

Trust’s distributor, MetLife Investors Distribution Company, would receive Rule 12b-1 payments to support the distribution of the product. The Board concluded after discussions with management that the anticipated profitability of the Adviser and its affiliates from their relationship with the Portfolio was reasonable in light of all relevant factors.

Because the proposed subadvisory fee will be paid by the Adviser and not by the Portfolio, the Board concluded that the costs of the services to be provided by the Subadviser and the anticipated profitability to the Subadviser from its relationship with the Portfolio were not material factors in its deliberations with respect to consideration of approval of the Sub-Advisory Agreement.

Economies of scale. The Board also considered the probable effect of the Portfolio’s growth in size on its performance and fees. The Board also took into account that the proposed subadvisory fee would be paid by the Adviser out of the management fee. The Board also noted that if the Portfolio’s assets increase over time, the Portfolio may realize other economies of scale if assets increase proportionally more than certain other fixed expenses. The Board noted management’s discussion of the Portfolio’s advisory fee structure. The Board concluded that the proposed advisory fee structure for the Portfolio was reasonable.

Other factors. As part of its evaluation of the Adviser’s compensation, the Board considered other benefits that may be realized by the Adviser and its affiliates from their relationship with the Trust. Among them, the Board recognized that an affiliate of the Adviser, MetLife Investors Distribution Company, serves as the distributor for the Trust, and, as such, would receive payments pursuant to Rule 12b-1 from the Portfolio to compensate it for providing shareholder services and selling activities, which could lead to growth in the Trust’s assets and corresponding benefits from such growth, including economies of scale. The Board also considered that affiliates of the Adviser may benefit from certain indirect tax benefits relating to dividend received deductions and foreign tax credits. The Board concluded that anticipated ancillary benefits that may accrue to the Adviser and its affiliates by virtue of the Adviser’s relationship with the Portfolio are fair and reasonable in light of the anticipated costs of providing investment management and other services to the Portfolio and the ongoing commitment of the Adviser to the Portfolio.

The Board considered other benefits that may be realized by the Subadviser and its affiliates from their relationship with the Trust, including the opportunity to provide advisory services to additional portfolios of the Trust and reputational benefits. The Board concluded that the benefits that may accrue to the Subadviser and its affiliates by virtue of the Subadviser’s relationships to the Portfolio were fair and reasonable in light of the anticipated costs of providing investment advisory services to the Portfolio and the ongoing commitment of the Subadviser to the Portfolio.

The Board considered any possible conflicts of interest in the form of material benefits or detriments to the Trust resulting from the nature of the Trust’s and the Adviser’s or the Subadviser’s affiliations. Here, the Board considered possible conflicts of interest that may arise between the Trust and the Adviser or the Subadviser in connection with the services to be provided to the Trust and the various relationships that they and their affiliates may have with the Trust. The Board considered the procedures for monitoring and managing such potential conflicts.

In addition, the Board reviewed the advisory fee to be paid to the Adviser and the sub-advisory fee to be paid to the Subadviser for the Portfolio and concluded that the advisory fee to be paid to the Adviser and the sub-advisory fee to be paid to the Subadviser with respect to the Portfolio is based on services to be provided that are in addition to, rather than duplicative of, the services provided pursuant to the advisory agreements for the underlying portfolios in which the Portfolio invests and that the additional services are necessary because of the differences between the investment policies, strategies and techniques of the Portfolio and those of the underlying portfolios.

Conclusion. In considering the initial approval of each of the Agreements, the Board, including the Independent Trustees, did not identify any single factor as controlling, and each Trustee may have attributed different weights to various factors. Based on all of the above-mentioned considerations, and the recommendations of management, the Board, including a majority of the Independent Trustees, determined that approval of the Advisory Agreement and the Sub-Advisory Agreement was in the best interests of the Portfolio. After full consideration of these and other factors, the Board, including a majority of the Independent Trustees, with the assistance of independent legal counsel, approved the Advisory Agreement and the Sub-Advisory Agreement with respect to the Portfolio.

 

MIST-19

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Managed by Schroder Investment Management North America Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class B shares of the Schroders Global Multi-Asset Portfolio returned 1.07%. The Portfolio’s benchmark, the Dow Jones Moderate Index1, returned 4.17%.

MARKET ENVIRONMENT / CONDITIONS

The six month period ending June 30, 2013 was a tale of two halves. Equities experienced a very strong start to the year, initiating speculation of a “Great Rotation” from bonds into equities. In practice what we actually witnessed were flows from cash into defensive equities with bond-like yield characteristics. However, by May, comments from the Federal Reserve (“Fed”) and concerns over a slowdown in China led to weakness across all asset classes. Unlike previous corrections, the move was accompanied by a rise in bond yields, meaning that the only hiding place was cash. The period ended on a more positive note with many markets beginning to rebound.

U.S. economic data was mixed—the economy continued to heal although there was a brief deceleration during the period that raised fears of another summer “soft patch.” This continued healing of the U.S. economy, coupled with the ongoing provision of liquidity by the Fed, supported U.S. equities through the first quarter and early in the second quarter However, by May the economic improvements, combined with fears of asset price inflation, caused the Fed to reconsider its timing for beginning to wind-down the ongoing Quantitative Easing program. This had an immediate impact on markets, with U.S. Treasury yields rising (10-year Note from 1.63% in early-May to 2.61% in late-June) and equities selling off (S&P 500 -5.6% from May 21st to June 24th). Nonetheless, strong gains earlier in the year and a rebound to close the period left U.S. equities as the second-best performing major market over the first half of the year with the S&P 500 Index posting a return of 13.8%. Bonds fared less well with the Barclays U.S. Aggregate Bond Index falling 2.4% as the rise in yields at the end of the period wiped-out the prior gains.

Japanese equities were the best-performing major equity market over the period, with the Tokyo Stock Price Index up 33% (total return). Through the first half of the year, the Bank of Japan aggressively pursued its newly mandated inflation target of 2% while the Shinzo Abe government provided further clarity over how it would enact its three arrowed growth policy. This resulted in strong returns for equity investors (in particular, prior to the onset of the Fed-induced selloff) and a dramatic weakening in the Japanese Yen (-12.6% over the period) against its major trading partners. Japanese equities were amongst the worst performers in the May/June sell-off, but this was not enough to outweigh the exceptional performance earlier in the year.

Emerging market equities were the worst performing area (MSCI Emerging Markets -11.5% in USD terms), suffering from fears of slowing growth, the impact of the weaker Yen and falling commodity prices. To compound this, Chinese lending conditions tightened in June causing distress in financial markets. While equities suffered, Emerging Market Debt (EMD) returns in both U.S. Dollars and local currency held firm until mid-May when the prospect of Fed tapering caused a rise in yields and a widening in spreads as investors reassessed the attractiveness of EMD yields. Thus, the return profile of EMD bonds was similar to developed markets with dollar-denominated bonds -8.2% (JPMorgan EMBI Global) and local bonds -7.2% (JPMorgan GBI-EM Global Diversified).

Commodity markets had a particularly tough second quarter leaving returns -10.5% for the first half of the year (DJ-UBS). Industrial metals and energy markets were hit by weak emerging markets’ growth; agricultural supply rose in response to higher prices in previous years. However, the largest fall was in the gold markets where improving U.S. growth prospects triggered a -27.3% return over the six month period.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Schroders Global Multi-Asset Portfolio aims to capture global growth opportunities while protecting against market volatility. The Growth Engine contains actively-managed Schroders equity and bond portfolios, supplemented with passive investments to facilitate rapid implementation of Schroders’ thematic and tactical views in a cost-effective manner. Schroders seeks to pre-emptively manage risk in the Growth Engine through forward-looking market views, complemented by a Volatility Management Strategy overlay aiming to cap portfolio volatility at 10% over 12-month periods.

The Portfolio had an underweight position in fixed income throughout the period, increasingly so as the period progressed. Furthermore, within the fixed income holdings, the Portfolio favored less interest-rate sensitive bonds such as High Yield. This partially protected the Portfolio but was insufficient to fully insulate the Portfolio from the interest rate sell-off that succeeded Fed Chairman Bernanke’s comments in May 2013. In this respect, the Portfolio’s interest rate overlay of 10-year interest rate swaps was a key detractor to performance. Other detractors included: security selection within the Schroders-managed investment grade fixed income portfolio; a small allocation to gold earlier in the period (subsequently closed); some tactical currency positions, positions in Mexican government bonds and Polish interest rate swaps that were initiated in June 2013.

On the positive side, the Portfolio’s equity weight and country split was largely additive. The Portfolio was overweight equities for most of the period, concentrating in markets with arguably better growth prospects (e.g. the U.S.) and tailwinds from central bank actions (e.g. Japan and the U.K.). In particular, the Portfolio was overweight U.S. Small Cap equities and U.S. Value stocks, both of which performed well. The Portfolio benefitted from being overweight Japanese equities and underweight the Japanese Yen. Opportunistic exposures were on balance positive, with U.S. High Yield bonds outperforming Investment Grade bonds.

 

MIST-1

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Managed by Schroder Investment Management North Americas Inc.

Portfolio Manager Commentary*—(Continued)

 

As of June 30, 2013, the Portfolio was positioned defensively. In response to market volatility the equity exposure of the Portfolio was preemptively reduced such that the Volatility Management Strategy only activated at the end of June. Due to the combination of judgment-based asset allocation and the systematic Volatility Management Strategy, cash at the end of the period was 33.5%.

The Portfolio favored U.S. equities, specifically, the Small Cap, Value, and Bank sectors. Outside of the U.S., the Portfolio favored Japanese and U.K. equities and remained underweight European and Australian equities. The Portfolio maintained an allocation to a Schroders global equity sleeve that obtains broad equity exposure focused on value and quality companies. The Portfolio remains underweight fixed income. Within the fixed income holdings, the Portfolio remained overweight High Yield bonds and Mortgage-Backed Securities, and underweight Investment Grade credit. In currencies, the Portfolio was underweight the Japanese Yen and Australian Dollar, and overweight the U.S. Dollar.

Johanna Kyrklund

Philip Chandler

Michael Hodgson

Portfolio Managers

Schroder Investment Management North America Inc.

 

MIST-2

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE DOW JONES MODERATE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        Since Inception2  
Schroders Global Multi-Asset Portfolio                 

Class B

        1.07           8.14           7.70   
Dow Jones Moderate Index        4.17           10.56           7.53   

1 The Dow Jones Moderate Index is a total returns index designed to provide asset allocation strategists with a target risk benchmark. Each month, the index adjusts its weighting of stocks, bonds, and cash indices (both domestic and foreign) from Barclays and Dow Jones such that the risk of that combination will have 60% of the risk of an all equity portfolio.

2 Inception of the Class B shares is 4/23/2012. Index returns are based on an inception date of 4/23/2012.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Issuers

 

         
% of
Net Assets		  
iShares Russell 1000 Value Index Fund      5.1   
Vanguard Total Stock Market ETF      3.2   
Vanguard FTSE Developed Markets ETF      2.5   
iShares Core S&P 500 ETF      2.3   
Mexican Bonos      2.3   
SPDR Barclays High Yield Bond ETF      1.9   
Bank of America Corp.      1.0   
PowerShares KBW Bank Portfolio      0.9   
U.S. Treasury Notes      0.9   
JPMorgan Chase & Co.      0.9   

Top Equity Sectors

     % of
Market Value of
Total Investments		  
Financials      5.1   
Health Care      4.0   
Information Technology      3.7   
Consumer Staples      3.6   
Consumer Discretionary      3.5   

 

Top Fixed Income Sectors

 

     % of
Market Value of
Total Investments		  
Cash & Cash Equivalents      28.0   
Corporate Bonds & Notes      23.0   
Foreign Government      2.3   
U.S. Treasury & Government Agencies      1.2   

 

MIST-3

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Schroders Global Multi-Asset Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class B(a)

      Actual      1.05 %     $ 1,000.00         $ 1,010.70         $ 5.23   
     Hypothetical*      1.05 %     $ 1,000.00         $ 1,019.59         $ 5.26   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects an expense limitation agreement between MetLife Advisers, LLC and the Portfolio as described in Note 7 of the Notes to Consolidated Financial Statements.

 

MIST-4

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—28.5% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—0.7%

    

BAE Systems plc

     40,269      $ 235,363   

Boeing Co. (The)

     1,800        184,392   

Cobham plc

     23,478        93,843   

General Dynamics Corp.

     2,900        227,157   

Hexcel Corp. (a)

     600        20,430   

Honeywell International, Inc.

     5,600        444,304   

Kongsberg Gruppen A/S

     2,272        41,141   

L-3 Communications Holdings, Inc.

     1,800        154,332   

Lockheed Martin Corp.

     7,628        827,333   

Meggitt plc

     6,715        52,622   

National Presto Industries, Inc.

     300        21,609   

Northrop Grumman Corp.

     3,100        256,680   

QinetiQ Group plc

     6,073        16,616   

Raytheon Co.

     9,500        628,140   

Rockwell Collins, Inc.

     2,300        145,843   

Saab AB - Class B

     1,165        22,215   

Thales S.A.

     1,348        62,804   

Ultra Electronics Holdings plc

     949        24,778   

United Technologies Corp.

     8,009        744,356   
   

 

 

  
      4,203,958   
   

 

 

  

Air Freight & Logistics—0.1%

    

FedEx Corp.

     1,900        187,302   

Forward Air Corp.

     1,500        57,420   

Kintetsu World Express, Inc.

     1,400        56,115   

Oesterreichische Post AG

     1,260        49,219   

Singapore Post, Ltd.

     87,000        89,066   

United Parcel Service, Inc. - Class B

     500        43,240   
   

 

 

  
      482,362   
   

 

 

  

Airlines—0.1%

    

Air New Zealand, Ltd.

     48,713        55,870   

Alaska Air Group, Inc. (a)

     1,700        88,400   

Allegiant Travel Co.

     300        31,797   

Dart Group plc

     6,306        18,721   

Deutsche Lufthansa AG (a)

     2,376        48,106   

Hawaiian Holdings, Inc. (a)

     1,700        10,387   

Japan Airlines Co., Ltd.

     1,700        87,423   

Republic Airways Holdings, Inc. (a)

     1,800        20,394   

Skymark Airlines, Inc.

     2,100        6,924   

Spirit Airlines, Inc. (a)

     1,500        47,655   
   

 

 

  
      415,677   
   

 

 

  

Auto Components—0.5%

    

Aisan Industry Co., Ltd.

     1,400        13,835   

Aisin Seiki Co., Ltd.

     2,800        107,155   

Autoliv, Inc.

     1,800        139,302   

Bridgestone Corp.

     7,800        265,864   

Calsonic Kansei Corp.

     10,000        41,849   

Chaowei Power Holdings, Ltd.

     22,000        7,461   

Cie Generale des Etablissements Michelin

     3,097        275,531   

Continental AG

     1,929        257,026   

Daido Metal Co., Ltd.

     3,000        20,450   

Delphi Automotive plc

     4,800        243,312   

Denso Corp.

     4,900        229,814   

Auto Components—(Continued)

    

Dorman Products, Inc.

     700      $ 31,941   

Exedy Corp.

     1,800        45,418   

FCC Co., Ltd.

     1,500        35,455   

G-Tekt Corp.

     1,000        25,210   

GKN plc

     22,442        103,294   

HI-LEX Corp.

     1,900        37,168   

Keihin Corp.

     2,200        33,589   

Kinugawa Rubber Industrial Co., Ltd.

     2,000        11,461   

Koito Manufacturing Co., Ltd.

     4,000        76,437   

Lear Corp.

     600        36,276   

Leoni AG

     353        17,558   

Magna International, Inc.

     2,500        177,950   

Minth Group, Ltd.

     20,000        31,416   

NHK Spring Co., Ltd.

     7,000        81,178   

Nippon Seiki Co., Ltd.

     3,000        38,751   

Nissin Kogyo Co., Ltd.

     2,800        50,766   

Pacific Industrial Co., Ltd.

     3,700        29,176   

Piolax, Inc.

     600        14,575   

Plastic Omnium S.A.

     1,289        69,840   

Riken Corp.

     8,000        31,946   

Showa Corp.

     1,000        12,887   

Stanley Electric Co., Ltd.

     5,400        105,205   

Sumitomo Rubber Industries, Ltd.

     3,600        58,884   

Superior Industries International, Inc.

     600        10,326   

Tachi-S Co., Ltd.

     800        10,697   

Tianneng Power International, Ltd.

     18,000        7,204   

Tokai Rika Co., Ltd.

     1,100        21,964   

Tokai Rubber Industries, Ltd.

     1,600        14,391   

Topre Corp.

     1,100        9,528   

Toyoda Gosei Co., Ltd.

     2,300        56,383   

Toyota Boshoku Corp.

     2,800        40,377   

TRW Automotive Holdings Corp. (a)

     700        46,508   

TS Tech Co., Ltd.

     1,900        60,354   

Unipres Corp.

     1,800        32,272   

Valeo S.A.

     1,599        100,036   

Yorozu Corp.

     1,300        21,613   
   

 

 

  
      3,189,633   
   

 

 

  

Automobiles—0.2%

    

Daihatsu Motor Co., Ltd.

     8,000        151,659   

Daimler AG

     2,633        159,144   

Dongfeng Motor Group Co., Ltd. -
Class H Shares

     38,000        50,528   

Fleetwood Corp., Ltd.

     1,051        3,448   

Ford Motor Co.

     5,000        77,350   

Honda Motor Co., Ltd.

     1,900        70,605   

Kia Motors Corp.

     1,035        55,954   

Renault S.A.

     1,008        67,337   

Toyota Motor Corp.

     8,200        495,127   
   

 

 

  
      1,131,152   
   

 

 

  

Beverages—0.5%

    

Anheuser-Busch InBev NV

     363        32,204   

China Tontine Wines Group, Ltd. (a)

     128,000        6,445   

Coca-Cola Amatil, Ltd.

     8,971        103,884   

Coca-Cola Central Japan Co., Ltd.

     1,000        15,197   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-5

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Beverages—(Continued)

    

Coca-Cola Co. (The)

     31,032      $ 1,244,693   

Diageo plc

     18,769        538,356   

Nichols plc

     2,442        37,124   

PepsiCo, Inc.

     12,260        1,002,745   

Royal UNIBREW A/S

     571        50,131   

SABMiller plc

     4,254        204,697   

Tibet 5100 Water Resources Holdings, Ltd.

     23,000        8,710   
   

 

 

  
      3,244,186   
   

 

 

  

Biotechnology—0.3%

    

Actelion, Ltd. (a)

     716        43,109   

Amgen, Inc.

     6,100        601,826   

BioGaia AB - B Shares

     534        18,090   

Biogen Idec, Inc. (a)

     900        193,680   

Celgene Corp. (a)

     1,300        151,983   

Cubist Pharmaceuticals, Inc. (a)

     700        33,810   

Gilead Sciences, Inc. (a)

     7,500        384,075   

Myriad Genetics, Inc. (a)

     1,600        42,992   

PDL BioPharma, Inc.

     6,300        48,636   

Spectrum Pharmaceuticals, Inc.

     1,000        7,460   

United Therapeutics Corp. (a)

     1,100        72,402   
   

 

 

  
      1,598,063   
   

 

 

  

Building Products—0.0%

    

Asahi Glass Co., Ltd.

     5,000        32,570   

Geberit AG

     192        47,535   

Sekisui Jushi Corp.

     3,000        36,905   

Takasago Thermal Engineering Co., Ltd.

     2,000        16,930   
   

 

 

  
      133,940   
   

 

 

  

Capital Markets—0.5%

    

Aberdeen Asset Management plc

     19,804        114,644   

American Capital, Ltd. (a)

     3,200        40,544   

Apollo Investment Corp.

     5,800        44,892   

ARA Asset Management, Ltd.

     9,900        13,544   

Arlington Asset Investment Corp. - Class A

     600        16,044   

Ashmore Group plc

     13,307        69,272   

Azimut Holding S.p.A.

     2,190        39,677   

Calamos Asset Management, Inc. - Class A

     900        9,450   

Capital Southwest Corp.

     100        13,783   

Close Brothers Group plc

     2,480        37,145   

Deutsche Bank AG

     3,282        137,297   

Eaton Vance Corp.

     1,300        48,867   

Federated Investors, Inc. - Class B

     4,300        117,863   

Franklin Resources, Inc.

     500        68,010   

Gimv NV

     778        37,964   

Goldman Sachs Group, Inc. (The)

     3,600        544,500   

IGM Financial, Inc.

     3,400        145,770   

Intermediate Capital Group plc

     3,031        19,950   

Investec plc

     4,328        27,104   

Kyokuto Securities Co., Ltd.

     1,400        22,335   

Macquarie Group, Ltd.

     4,905        186,027   

Main Street Capital Corp.

     2,700        74,763   

Man Group plc

     26,699        33,490   

Mediobanca S.p.A.

     15,616        81,198   

Morgan Stanley

     15,600        381,108   

Capital Markets—(Continued)

    

New Mountain Finance Corp.

     4,000      $ 56,640   

Northern Trust Corp.

     3,500        202,650   

Platinum Asset Management, Ltd.

     10,648        53,037   

T. Rowe Price Group, Inc.

     2,700        197,505   

TD Ameritrade Holding Corp.

     8,200        199,178   

Tetragon Financial Group, Ltd.

     2,330        25,402   

UBS AG (a)

     4,218        71,657   

Waddell & Reed Financial, Inc. - Class A

     1,400        60,900   
   

 

 

  
      3,192,210   
   

 

 

  

Chemicals—0.8%

    

ADEKA Corp.

     2,300        23,610   

Agrium, Inc.

     1,300        112,707   

Air Products & Chemicals, Inc.

     2,500        228,925   

Albemarle Corp.

     900        56,061   

BASF SE

     5,664        505,870   

CF Industries Holdings, Inc.

     1,100        188,650   

China Sanjiang Fine Chemicals Co., Ltd.

     33,000        15,830   

China Steel Chemical Corp.

     3,000        14,872   

Chugoku Marine Paints, Ltd.

     3,000        14,869   

Croda International plc

     974        36,798   

Dainichiseika Color & Chemicals Manufacturing Co., Ltd.

     4,000        17,500   

E.I. du Pont de Nemours & Co.

     7,887        414,068   

EMS-Chemie Holding AG

     104        30,682   

FutureFuel Corp.

     3,100        43,927   

Hitachi Chemical Co., Ltd.

     5,700        89,263   

Innospec, Inc.

     500        20,090   

Israel Chemicals, Ltd.

     13,786        135,827   

Japan Carlit Co., Ltd.

     2,600        13,974   

Johnson Matthey plc

     3,976        159,230   

JSP Corp.

     1,600        23,845   

JSR Corp.

     2,800        56,640   

K&S AG

     3,732        137,745   

Kaneka Corp.

     6,000        39,630   

Konishi Co., Ltd.

     900        16,789   

Lintec Corp.

     2,800        50,568   

LyondellBasell Industries NV - Class A

     4,800        318,048   

Mitsubishi Chemical Holdings Corp.

     4,500        21,146   

Monsanto Co.

     2,448        241,862   

Mosaic Co. (The)

     1,100        59,191   

NewMarket Corp.

     200        52,512   

Nihon Parkerizing Co., Ltd.

     1,000        19,653   

Nippon Kayaku Co., Ltd.

     5,000        62,320   

Nippon Paint Co., Ltd.

     6,000        72,361   

Nippon Pillar Packing Co., Ltd.

     1,000        6,716   

Nippon Shokubai Co., Ltd.

     4,000        40,939   

Nissan Chemical Industries, Ltd.

     5,000        67,362   

NOF Corp.

     3,000        16,894   

Potash Corp. of Saskatchewan, Inc.

     3,300        125,888   

PPG Industries, Inc.

     3,100        453,871   

Praxair, Inc.

     1,738        200,148   

Sanyo Chemical Industries, Ltd.

     4,000        25,061   

Shikoku Chemicals Corp.

     2,000        13,509   

Stepan Co.

     400        22,244   

Synthos S.A.

     12,368        16,947   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-6

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Chemicals—(Continued)

    

Teijin, Ltd.

     7,000      $ 15,388   

Tenma Corp.

     1,000        11,737   

Terra Nitrogen Co. L.P.

     400        85,596   

Toagosei Co., Ltd.

     4,000        16,093   

Tokai Carbon Co., Ltd.

     6,000        15,912   

Tokyo Ohka Kogyo Co., Ltd.

     1,000        22,991   

Toyo Ink SC Holdings Co., Ltd.

     7,000        34,587   

Victrex plc

     2,087        48,975   

Yara International ASA

     4,506        179,674   
   

 

 

  
      4,715,595   
   

 

 

  

Commercial Banks—1.6%

    

1st Source Corp.

     500        11,880   

Aozora Bank, Ltd. (a)

     35,000        109,407   

Australia & New Zealand Banking Group, Ltd.

     7,227        187,582   

Awa Bank, Ltd. (The)

     6,000        33,517   

Banca Carige S.p.A. (a)

     28,590        17,245   

Banca Monte dei Paschi di Siena S.p.A. (a)

     123,727        31,405   

Banca Popolare dell’Emilia Romagna S.c.r.l. (a)

     2,817        16,249   

Banca Popolare di Milano Scarl (a)

     28,831        11,507   

Bancfirst Corp.

     700        32,585   

Banco Bilbao Vizcaya Argentaria S.A.

     34,855        290,245   

Banco Espirito Santo S.A. (a)

     70,520        56,007   

Banco Popolare SC (a)

     24,922        29,291   

Banco Popular Espanol S.A. (a)

     7,902        24,032   

Banco Santander S.A.

     52,146        330,131   

Bank Hapoalim B.M. (a)

     32,140        144,543   

Bank Leumi Le-Israel B.M. (a)

     43,492        143,932   

Bank of Ireland (a)

     61,674        12,585   

Bank of Nova Scotia

     900        48,111   

Bank of Yokohama, Ltd. (The)

     29,000        149,724   

Barclays plc

     77,845        333,702   

BNP Paribas S.A.

     7,628        416,769   

CaixaBank

     8,807        27,046   

Chiba Bank, Ltd. (The)

     10,000        68,167   

Chiba Kogyo Bank, Ltd. (The) (a)

     2,300        16,722   

Chugoku Bank, Ltd. (The)

     3,000        41,993   

Citizens & Northern Corp.

     700        13,524   

Comerica, Inc.

     3,400        135,422   

Commerce Bancshares, Inc.

     2,055        89,516   

Commerzbank AG (a)

     9,409        82,003   

Commonwealth Bank of Australia

     1,926        121,061   

Credit Agricole S.A. (a)

     3,568        30,666   

Credito Emiliano S.p.A.

     4,272        20,164   

CVB Financial Corp.

     6,500        76,440   

Dah Sing Banking Group, Ltd.

     20,000        23,478   

Dah Sing Financial Holdings, Ltd.

     11,200        44,761   

East West Bancorp, Inc.

     3,700        101,750   

First Citizens BancShares, Inc. - Class A

     200        38,410   

First Commonwealth Financial Corp.

     6,100        44,957   

First Financial Corp.

     300        9,297   

First International Bank of Israel, Ltd.

     1,434        20,380   

First Interstate Bancsystem, Inc.

     1,000        20,730   

First of Long Island Corp. (The)

     300        9,957   

Fukui Bank, Ltd. (The)

     5,000        10,689   

Commercial Banks—(Continued)

    

Gunma Bank, Ltd. (The)

     12,000      $ 66,312   

Hachijuni Bank, Ltd. (The)

     17,000        99,725   

Higo Bank, Ltd. (The)

     9,000        53,181   

Hokkoku Bank, Ltd. (The)

     5,000        17,343   

HSBC Holdings plc

     117,346        1,217,099   

Huntington Bancshares, Inc.

     8,200        64,616   

Hyakugo Bank, Ltd. (The)

     5,000        20,772   

International Bancshares Corp.

     500        11,290   

Intesa Sanpaolo S.p.A.

     39,199        62,723   

Israel Discount Bank, Ltd. - Class A (a)

     54,817        91,978   

Iyo Bank, Ltd. (The)

     9,000        86,034   

Juroku Bank, Ltd. (The)

     5,000        18,251   

Kagoshima Bank, Ltd. (The)

     8,000        50,900   

KBC Groep NV

     2,028        75,010   

Keiyo Bank, Ltd. (The)

     8,000        40,334   

KeyCorp

     21,300        235,152   

Lloyds Banking Group plc (a)

     195,486        188,460   

MB Financial, Inc.

     1,700        45,560   

Mitsubishi UFJ Financial Group, Inc.

     48,500        300,965   

Mizuho Financial Group, Inc.

     40,400        84,087   

National Australia Bank, Ltd.

     2,212        59,590   

Natixis

     4,304        17,914   

Nishi-Nippon City Bank, Ltd. (The)

     12,000        31,341   

PNC Financial Services Group, Inc. (The)

     2,500        182,300   

Popular, Inc. (a)

     600        18,198   

Raiffeisen Bank International AG

     3,215        93,677   

Republic Bancorp, Inc. - Class A

     500        10,960   

Resona Holdings, Inc.

     7,700        37,503   

Royal Bank of Canada

     1,600        93,228   

Royal Bank of Scotland Group plc (a)

     37,925        158,378   

San-In Godo Bank, Ltd. (The)

     6,000        44,529   

Shizuoka Bank, Ltd. (The)

     11,000        118,573   

Societe Generale S.A.

     7,284        248,025   

SpareBank 1 SMN

     4,411        33,722   

SpareBank 1 SR Bank ASA

     5,826        45,559   

Standard Chartered plc

     2,166        46,764   

Sterling Financial Corp.

     1,900        45,182   

Sumitomo Mitsui Financial Group, Inc.

     7,300        334,950   

Sumitomo Mitsui Trust Holdings, Inc.

     37,000        172,754   

Synovus Financial Corp.

     22,700        66,284   

Toronto-Dominion Bank (The)

     1,000        80,318   

Trustmark Corp.

     1,200        29,496   

U.S. Bancorp

     1,700        61,455   

UniCredit S.p.A.

     34,565        161,632   

Unione di Banche Italiane SCPA

     11,573        41,858   

Valiant Holding

     517        43,488   

Washington Banking Co.

     900        12,780   

Wells Fargo & Co.

     21,300        879,051   

Westpac Banking Corp.

     3,289        86,104   

Wing Hang Bank, Ltd.

     6,000        53,547   
   

 

 

  
      9,616,534   
   

 

 

  

Commercial Services & Supplies—0.1%

  

Berendsen plc

     1,957        22,148   

Cabcharge Australia, Ltd.

     2,996        11,012   

Cintas Corp.

     1,400        63,756   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-7

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Commercial Services & Supplies—(Continued)

  

Collection House, Ltd.

     9,346      $ 13,995   

Copart, Inc. (a)

     700        21,560   

Credit Corp. Group, Ltd.

     1,284        10,995   

Dai Nippon Printing Co., Ltd.

     5,000        45,496   

Deluxe Corp.

     1,200        41,580   

Downer EDI, Ltd.

     995        3,235   

Duskin Co., Ltd.

     1,400        26,356   

Intersections, Inc.

     900        7,893   

Intrum Justitia AB

     2,597        53,172   

Matsuda Sangyo Co., Ltd.

     1,100        13,776   

Mineral Resources, Ltd.

     4,439        33,275   

Mitie Group plc

     12,173        46,396   

Mitsubishi Pencil Co., Ltd.

     600        11,824   

Moshi Moshi Hotline, Inc.

     2,250        27,841   

NAC Co., Ltd.

     1,200        20,007   

Nippon Parking Development Co., Ltd.

     233        17,732   

Pitney Bowes, Inc.

     7,100        104,228   

Securitas AB - B Shares

     2,581        22,464   

Societe BIC S.A.

     774        77,435   

Tokyu Community Corp.

     500        21,878   

Toppan Forms Co., Ltd.

     1,400        12,141   

Toppan Printing Co., Ltd.

     6,000        41,686   

Transcontinental, Inc. - Class A

     1,600        19,458   

U.S. Ecology, Inc.

     1,000        27,440   
   

 

 

  
      818,779   
   

 

 

  

Communications Equipment—0.4%

    

Brocade Communications Systems, Inc. (a)

     9,900        57,024   

Cisco Systems, Inc.

     38,500        935,935   

Codan, Ltd.

     4,671        6,474   

EVS Broadcast Equipment S.A.

     531        36,979   

Harris Corp.

     2,400        118,200   

InterDigital, Inc.

     600        26,790   

Ituran Location and Control, Ltd.

     1,362        22,632   

Motorola Solutions, Inc.

     1,000        57,730   

Nolato AB - B Shares

     877        15,139   

Pace plc

     11,528        42,544   

Plantronics, Inc.

     1,400        61,488   

QUALCOMM, Inc.

     8,374        511,484   

Research In Motion, Ltd. (a)

     8,200        86,390   

Spirent Communications plc

     8,440        18,072   

VTech Holdings, Ltd.

     6,400        96,672   
   

 

 

  
      2,093,553   
   

 

 

  

Computers & Peripherals—0.6%

    

Apple, Inc.

     5,700        2,257,656   

Asustek Computer, Inc.

     3,000        25,666   

Eizo Corp.

     1,000        21,508   

Elecom Co., Ltd.

     600        7,163   

EMC Corp.

     11,500        271,630   

Hewlett-Packard Co.

     18,513        459,122   

Japan Digital Laboratory Co., Ltd.

     1,200        12,218   

Lexmark International, Inc. - Class A

     2,200        67,254   

Lite-On Technology Corp.

     12,000        21,021   

NetApp, Inc. (a)

     5,300        200,234   

QLogic Corp. (a)

     4,700        44,932   

Computers & Peripherals—(Continued)

    

Seagate Technology plc

     3,400      $ 152,422   

Simplo Technology Co., Ltd.

     4,000        17,236   

Synaptics, Inc. (a)

     1,300        50,128   

Western Digital Corp.

     3,800        235,942   

Xyratex, Ltd.

     1,000        10,060   
   

 

 

  
      3,854,192   
   

 

 

  

Construction & Engineering—0.2%

    

Argan, Inc.

     600        9,360   

Ausdrill, Ltd.

     4,930        3,863   

Ausgroup, Ltd.

     21,000        5,947   

Bouygues S.A.

     740        18,837   

Cardno, Ltd.

     5,697        26,941   

Carillion plc

     6,428        27,079   

Chip Eng Seng Corp., Ltd.

     28,000        15,284   

Costain Group plc

     4,325        18,303   

Decmil Group, Ltd.

     3,097        5,013   

Forge Group, Ltd.

     2,456        9,426   

Implenia AG (a)

     766        38,111   

Interserve plc

     6,723        51,839   

JGC Corp.

     5,000        179,996   

Kandenko Co., Ltd.

     3,000        12,752   

Kentz Corp., Ltd.

     5,550        31,553   

Kinden Corp.

     3,000        25,698   

Leighton Holdings, Ltd.

     6,708        93,869   

MACA, Ltd.

     10,971        17,667   

Macmahon Holdings, Ltd.

     38,458        4,508   

Maeda Road Construction Co., Ltd.

     2,000        31,118   

Monadelphous Group, Ltd.

     1,870        27,568   

NCC AB - B Shares

     486        11,021   

Nichireki Co., Ltd.

     2,000        12,725   

Nippo Corp.

     2,000        32,702   

NRW Holdings, Ltd.

     5,893        4,897   

Obrascon Huarte Lain S.A.

     1,521        51,723   

Primoris Services Corp.

     1,200        23,664   

RCR Tomlinson, Ltd.

     8,422        17,674   

Sumitomo Densetsu Co., Ltd.

     1,200        17,243   

Taihei Dengyo Kaisha, Ltd.

     2,000        13,208   

Taihei Kogyo Co., Ltd.

     3,000        10,981   

Taikisha, Ltd.

     1,200        29,524   

Toshiba Plant Systems & Services Corp.

     2,000        29,968   

Vinci S.A.

     4,650        231,981   
   

 

 

  
      1,142,043   
   

 

 

  

Construction Materials—0.0%

    

Adelaide Brighton, Ltd.

     23,141        69,591   

China Shanshui Cement Group, Ltd.

     21,000        9,336   

Ciments Francais S.A.

     109        6,128   

Imerys S.A.

     1,400        85,785   

RHI AG

     579        20,151   
   

 

 

  
      190,991   
   

 

 

  

Consumer Finance—0.2%

    

American Express Co.

     2,300        171,948   

Capital One Financial Corp.

     5,900        370,579   

Cash America International, Inc.

     500        22,730   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-8

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Consumer Finance—(Continued)

    

Credit Acceptance Corp. (a)

     700      $ 73,535   

Discover Financial Services

     6,400        304,896   

Encore Capital Group, Inc. (a)

     800        26,488   

Ezcorp, Inc. - Class A (a)

     2,300        38,824   

First Cash Financial Services, Inc. (a)

     400        19,684   

Green Dot Corp. - Class A (a)

     900        17,955   

Nicholas Financial, Inc.

     900        13,608   

Portfolio Recovery Associates, Inc. (a)

     300        46,089   

World Acceptance Corp. (a)

     200        17,388   
   

 

 

  
      1,123,724   
   

 

 

  

Containers & Packaging—0.1%

    

Ball Corp.

     4,000        166,160   

Mayr Melnhof Karton AG

     330        35,411   

Packaging Corp. of America

     2,400        117,504   

Rengo Co., Ltd.

     8,000        38,479   

Smurfit Kappa Group plc

     2,469        41,150   
   

 

 

  
      398,704   
   

 

 

  

Distributors—0.1%

    

Breville Group, Ltd.

     4,914        31,729   

Canon Marketing Japan, Inc.

     1,300        17,395   

Doshisha Co., Ltd.

     800        11,406   

Genuine Parts Co.

     2,600        202,982   

Jardine Cycle & Carriage, Ltd.

     1,000        33,536   

Smiths News plc

     5,437        12,508   
   

 

 

  
      309,556   
   

 

 

  

Diversified Consumer Services—0.1%

    

American Public Education, Inc. (a)

     300        11,148   

Apollo Group, Inc. - Class A (a)

     400        7,088   

Best Bridal, Inc.

     1,400        10,902   

Capella Education Co. (a)

     400        16,660   

DeVry, Inc.

     900        27,918   

Grand Canyon Education, Inc. (a)

     700        22,561   

H&R Block, Inc.

     6,100        169,275   

ITT Educational Services, Inc. (a)

     600        14,640   

Meiko Network Japan Co., Ltd.

     1,100        14,389   

Outerwall, Inc. (a)

     700        41,069   

Riso Kyoiku Co., Ltd.

     142        12,486   

Studio Alice Co., Ltd.

     700        9,949   
   

 

 

  
      358,085   
   

 

 

  

Diversified Financial Services—0.7%

  

ABC Arbitrage

     1,342        7,784   

Bank of America Corp.

     68,200        877,052   

CBOE Holdings, Inc.

     1,500        69,960   

Citigroup, Inc.

     18,900        906,633   

Corp. Financiera Alba S.A.

     558        24,648   

First Pacific Co., Ltd.

     88,000        93,800   

Fuyo General Lease Co., Ltd.

     1,300        48,569   

IG Group Holdings plc

     6,155        54,459   

Industrivarden AB - C Shares

     6,746        112,118   

ING Groep NV (a)

     13,713        125,305   

Interactive Brokers Group, Inc. - Class A

     2,400        38,328   

Diversified Financial Services—(Continued)

  

IntercontinentalExchange, Inc. (a)

     300      $ 53,328   

Investment AB Kinnevik - B Shares

     2,430        62,025   

Investor AB - B Shares

     7,319        195,840   

JPMorgan Chase & Co.

     26,500        1,398,935   

MarketAxess Holdings, Inc.

     700        32,725   

McGraw Hill Financial, Inc.

     3,000        159,570   

Pargesa Holding S.A.

     726        48,433   

RHJ International (a)

     2,365        11,142   

Ricoh Leasing Co., Ltd.

     1,400        37,425   

Sofina S.A.

     759        68,753   

Vostok Nafta Investment, Ltd. (a)

     9,948        48,068   
   

 

 

  
      4,474,900   
   

 

 

  

Diversified Telecommunication Services—0.7%

  

AT&T, Inc.

     23,609        835,759   

BCE, Inc.

     2,100        86,101   

Belgacom S.A.

     8,986        200,809   

Bezeq The Israeli Telecommunication Corp., Ltd.

     106,827        142,104   

BT Group plc

     45,969        215,118   

Elisa Oyj

     5,651        110,354   

iiNET, Ltd.

     10,404        59,024   

Inteliquent, Inc.

     3,400        19,550   

Iridium Communications, Inc. (a)

     2,500        19,400   

Kcom Group plc

     13,058        16,089   

M2 Telecommunications Group, Ltd.

     10,075        53,628   

Nippon Telegraph & Telephone Corp.

     11,000        574,108   

Swisscom AG

     304        132,848   

Telefonica S.A. (a)

     1,760        22,646   

Telekomunikasi Indonesia Persero Tbk PT

     66,500        73,871   

Telenor ASA

     15,787        312,954   

TeliaSonera AB

     49,783        323,461   

Telstra Corp., Ltd.

     58,973        256,741   

TPG Telecom, Ltd.

     19,814        63,298   

Turk Telekomunikasyon A/S

     18,115        70,318   

Verizon Communications, Inc.

     13,185        663,733   

Vivendi S.A.

     3,648        68,749   

Vonage Holdings Corp. (a)

     4,800        13,584   
   

 

 

  
      4,334,247   
   

 

 

  

Electric Utilities—0.4%

  

American Electric Power Co., Inc.

     4,152        185,927   

CEZ A/S

     881        21,116   

Cia Paranaense de Energia (ADR)

     1,200        14,904   

Duke Energy Corp.

     3,741        252,517   

Enel S.p.A.

     73,548        230,556   

EVN AG

     4,052        50,884   

Exelon Corp.

     5,435        167,833   

Iberdrola S.A.

     11,910        62,509   

NextEra Energy, Inc.

     6,111        497,924   

PGE S.A.

     12,762        59,001   

Portland General Electric Co.

     2,100        64,239   

Red Electrica Corp. S.A.

     4,027        220,875   

Southern Co. (The)

     5,871        259,087   

SSE plc

     19,559        451,548   

Tauron Polska Energia S.A.

     21,841        28,309   
   

 

 

  
      2,567,229   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-9

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Electrical Equipment—0.3%

  

ABB, Ltd. (a)

     6,087      $ 131,411   

Alstom S.A.

     2,421        79,207   

Eaton Corp. plc

     1,318        86,738   

Emerson Electric Co.

     9,780        533,401   

EnerSys, Inc.

     800        39,232   

Hubbell, Inc. - Class B

     1,300        128,700   

Legrand S.A.

     5,604        258,981   

Mersen

     519        11,273   

PKC Group Oyj

     647        15,310   

Rockwell Automation, Inc.

     2,500        207,850   

Saft Groupe S.A.

     604        14,326   

Schneider Electric S.A.

     5,669        408,709   

Sumitomo Electric Industries, Ltd.

     3,300        39,467   
   

 

 

  
      1,954,605   
   

 

 

  

Electronic Equipment, Instruments & Components—0.3%

  

Ai Holdings Corp.

     1,600        14,101   

Amphenol Corp. - Class A

     800        62,352   

Anritsu Corp.

     4,000        47,395   

Barco NV

     445        35,909   

Benchmark Electronics, Inc. (a)

     2,900        58,290   

Canon Electronics, Inc.

     2,600        47,556   

Celestica, Inc. (a)

     5,800        54,653   

Corning, Inc.

     22,800        324,444   

Delta Electronics Thailand PCL

     11,900        15,347   

Diploma plc

     1,781        15,220   

Dolby Laboratories, Inc. - Class A

     600        20,070   

Domino Printing Sciences plc

     3,948        37,457   

Elematec Corp.

     700        8,787   

Evertz Technologies, Ltd.

     2,100        29,552   

Flextronics International, Ltd. (a)

     5,400        41,796   

FLIR Systems, Inc.

     3,700        99,789   

FUJIFILM Holdings Corp.

     5,100        112,372   

Hakuto Co., Ltd.

     1,400        12,959   

Halma plc

     10,005        76,851   

Hoya Corp.

     9,300        190,824   

Ibiden Co., Ltd.

     2,200        34,320   

Ingram Micro, Inc. - Class A (a)

     1,700        32,283   

Kanematsu Electronics, Ltd.

     800        10,317   

LEM Holding S.A.

     30        19,313   

MTS Systems Corp.

     900        50,940   

Nippon Electric Glass Co., Ltd.

     7,000        34,093   

Ryoden Trading Co., Ltd.

     2,000        12,927   

Spectris plc

     1,323        38,329   

Star Micronics Co., Ltd.

     1,400        15,183   

SYNNEX Corp. (a)

     600        25,368   

TE Connectivity, Ltd.

     1,000        45,540   

Tech Data Corp. (a)

     600        28,254   
   

 

 

  
      1,652,591   
   

 

 

  

Energy Equipment & Services—0.3%

  

AMEC plc

     6,539        100,191   

C&J Energy Services, Inc. (a)

     2,500        48,425   

Calfrac Well Services, Ltd.

     1,600        46,112   

Canyon Services Group, Inc.

     1,100        12,468   

Diamond Offshore Drilling, Inc.

     2,600        178,854   

Energy Equipment & Services—(Continued)

  

Ensco plc - Class A

     4,000      $ 232,480   

Ensign Energy Services, Inc.

     4,800        74,303   

Essential Energy Services Trust (a)

     4,100        10,136   

Fred Olsen Energy ASA

     1,808        71,311   

Helmerich & Payne, Inc.

     2,400        149,880   

Kvaerner ASA

     5,816        9,278   

Mitcham Industries, Inc. (a)

     700        11,746   

Nabors Industries, Ltd.

     2,400        36,744   

Natural Gas Services Group, Inc. (a)

     1,000        23,490   

Pason Systems, Inc.

     3,100        56,358   

Patterson-UTI Energy, Inc.

     2,000        38,710   

Petrofac, Ltd.

     4,683        85,614   

ProSafe SE

     3,866        33,868   

RPC, Inc.

     5,500        75,955   

Savanna Energy Services Corp.

     1,900        12,249   

Schlumberger, Ltd.

     2,700        193,482   

Shinko Plantech Co., Ltd.

     1,400        10,562   

TGC Industries, Inc.

     1,365        11,220   

TGS Nopec Geophysical Co. ASA

     2,144        62,171   

Total Energy Services, Inc.

     1,000        13,835   

WorleyParsons, Ltd.

     6,953        122,942   
   

 

 

  
      1,722,384   
   

 

 

  

Food & Staples Retailing—0.6%

  

Ain Pharmaciez, Inc.

     200        8,623   

Amsterdam Commodities NV

     982        18,460   

Arcs Co., Ltd.

     1,000        19,551   

Axfood AB

     1,327        55,421   

Casino Guichard Perrachon S.A.

     247        23,066   

Cocokara fine, Inc.

     300        9,529   

Colruyt S.A.

     1,707        89,737   

Costco Wholesale Corp.

     400        44,228   

CREATE SD HOLDINGS Co., Ltd.

     400        12,907   

CVS Caremark Corp.

     3,400        194,412   

FamilyMart Co., Ltd.

     2,000        85,305   

Greggs plc

     1,876        11,909   

Itochu-Shokuhin Co., Ltd.

     300        10,179   

J Sainsbury plc

     25,794        139,333   

Jean Coutu Group PJC, Inc. (The) - Class A

     1,300        21,953   

Jeronimo Martins SGPS S.A.

     6,557        138,018   

Kato Sangyo Co., Ltd.

     1,000        20,883   

Koninklijke Ahold NV

     13,961        207,408   

Majestic Wine plc

     1,467        10,605   

Matsumotokiyoshi Holdings Co., Ltd.

     600        17,339   

Metro, Inc.

     1,400        93,821   

Ministop Co., Ltd.

     900        14,874   

Mitsubishi Shokuhin Co., Ltd.

     700        17,448   

San-A Co., Ltd.

     300        14,508   

Sligro Food Group NV

     580        19,424   

Sogo Medical Co., Ltd.

     500        18,906   

Sundrug Co., Ltd.

     1,200        51,016   

TESCO plc

     81,637        410,243   

Tsuruha Holdings, Inc.

     400        37,873   

Valor Co., Ltd.

     1,000        18,594   

Wal-Mart Stores, Inc.

     15,012        1,118,244   

Walgreen Co.

     10,460        462,332   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-10

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Food & Staples Retailing—(Continued)

  

Welcia Holdings Co., Ltd.

     400      $ 18,331   

Wesfarmers, Ltd.

     1,356        48,908   

WM Morrison Supermarkets plc

     32,787        130,249   

Woolworths, Ltd.

     7,708        230,401   
   

 

 

  
      3,844,038   
   

 

 

  

Food Products—0.9%

  

Asian Citrus Holdings, Ltd.

     73,591        25,872   

Changshouhua Food Co., Ltd.

     7,000        5,496   

China Minzhong Food Corp., Ltd. (a)

     56,000        45,823   

Cranswick plc

     2,619        45,939   

Danone S.A.

     3,952        296,403   

Darling International, Inc. (a)

     3,100        57,846   

Devro plc

     11,396        50,558   

First Resources, Ltd.

     22,000        30,697   

Fresh Del Monte Produce, Inc.

     1,200        33,456   

General Mills, Inc.

     18,175        882,033   

Hershey Co. (The)

     600        53,568   

Hormel Foods Corp.

     3,800        146,604   

Indofood Agri Resources, Ltd.

     34,000        26,138   

Indofood Sukses Makmur Tbk PT

     42,500        31,440   

J&J Snack Foods Corp.

     400        31,120   

Kenko Mayonnaise Co., Ltd.

     1,900        16,569   

Kulim Malaysia BHD

     10,700        11,674   

Lancaster Colony Corp.

     1,300        101,387   

McCormick & Co., Inc.

     1,500        105,540   

Mitsui Sugar Co., Ltd.

     3,000        9,542   

Mondelez International, Inc. - Class A

     7,527        214,745   

Nestle S.A.

     22,176        1,450,453   

Osem Investments, Ltd.

     2,738        57,192   

Perusahaan Perkebunan London Sumatra Indonesia Tbk PT

     54,500        9,407   

Prima Meat Packers, Ltd.

     9,000        17,816   

Saputo, Inc.

     5,200        239,011   

Shenguan Holdings Group, Ltd.

     118,000        55,381   

Sipef S.A.

     347        23,358   

Suedzucker AG

     4,736        146,596   

Tassal Group, Ltd.

     7,408        16,613   

Toyo Suisan Kaisha, Ltd.

     3,000        99,988   

Unilever NV

     12,774        501,083   

Unilever plc

     12,959        526,283   

Viscofan S.A.

     1,835        91,764   

Warabeya Nichiyo Co., Ltd.

     400        6,122   
   

 

 

  
      5,463,517   
   

 

 

  

Gas Utilities—0.1%

  

Enagas S.A.

     6,066        149,841   

Gas Natural SDG S.A.

     11,979        240,524   

Osaka Gas Co., Ltd.

     26,000        110,047   
   

 

 

  
      500,412   
   

 

 

  

Health Care Equipment & Supplies—0.7%

  

Abbott Laboratories

     23,736        827,912   

Anika Therapeutics, Inc. (a)

     700        11,900   

Atrion Corp.

     100        21,871   

Baxter International, Inc.

     9,162        634,652   

Health Care Equipment & Supplies—(Continued)

  

Becton Dickinson & Co.

     2,700      $ 266,841   

BioMerieux

     246        23,824   

C.R. Bard, Inc.

     2,400        260,832   

Covidien plc

     3,529        221,762   

DiaSorin S.p.A.

     1,117        44,592   

Essilor International S.A.

     1,300        138,231   

Fukuda Denshi Co., Ltd.

     600        22,023   

Hogy Medical Co., Ltd.

     600        34,359   

Medtronic, Inc.

     11,890        611,978   

Meridian Bioscience, Inc.

     1,400        30,100   

Smith & Nephew plc

     17,292        192,715   

STERIS Corp.

     600        25,728   

Stryker Corp.

     6,000        388,080   

Techno Medica Co., Ltd.

     2        11,455   

Varian Medical Systems, Inc. (a)

     600        40,470   

Zimmer Holdings, Inc.

     4,400        329,736   
   

 

 

  
      4,139,061   
   

 

 

  

Health Care Providers & Services—0.4%

  

Aetna, Inc.

     3,600        228,744   

Alfresa Holdings Corp.

     1,700        91,022   

Almost Family, Inc.

     700        13,300   

Amsurg Corp. (a)

     2,400        84,240   

Bio-Reference Labs, Inc. (a)

     1,400        40,250   

Chemed Corp.

     900        65,187   

Cigna Corp.

     300        21,747   

CML HealthCare, Inc.

     3,100        31,127   

Health Management Associates, Inc. - Class A (a)

     2,700        42,444   

Humana, Inc.

     2,300        194,074   

Laboratory Corp. of America Holdings (a)

     2,700        270,270   

LHC Group, Inc. (a)

     800        15,664   

Magellan Health Services, Inc. (a)

     600        33,648   

Medical Facilities Corp.

     1,100        15,888   

Medipal Holdings Corp.

     7,300        98,930   

MEDNAX, Inc. (a)

     1,800        164,844   

Miraca Holdings, Inc.

     2,800        129,001   

National Research Corp. - Class B

     350        12,229   

Nichii Gakkan Co.

     1,400        12,152   

Owens & Minor, Inc.

     1,700        57,511   

Quest Diagnostics, Inc.

     4,000        242,520   

Select Medical Holdings Corp.

     5,100        41,820   

Toho Holdings Co., Ltd.

     4,500        74,188   

Tokai Corp.

     1,400        39,552   

U.S. Physical Therapy, Inc.

     600        16,584   

UnitedHealth Group, Inc.

     7,000        458,360   
   

 

 

  
      2,495,296   
   

 

 

  

Health Care Technology—0.0%

  

Computer Programs & Systems, Inc.

     300        14,742   

Quality Systems, Inc.

     1,500        28,065   
   

 

 

  
      42,807   
   

 

 

  

Hotels, Restaurants & Leisure—0.5%

  

Bally Technologies, Inc. (a)

     1,300        73,346   

Betsson AB (a)

     613        15,549   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-11

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Hotels, Restaurants & Leisure—(Continued)

  

Cheesecake Factory, Inc. (The)

     600      $ 25,134   

Compass Group plc

     6,713        86,031   

Cracker Barrel Old Country Store, Inc.

     400        37,864   

Darden Restaurants, Inc.

     1,600        80,768   

Doutor Nichires Holdings Co., Ltd.

     1,100        15,487   

Einstein Noah Restaurant Group, Inc.

     900        12,780   

Flight Centre, Ltd.

     1,485        53,035   

Hiday Hidaka Corp.

     800        16,633   

Ladbrokes plc

     24,618        74,679   

McDonald’s Corp.

     13,163        1,303,137   

MGM China Holdings, Ltd.

     12,000        32,033   

NagaCorp, Ltd.

     64,000        49,713   

Paddy Power plc

     704        60,407   

Papa John’s International, Inc. (a)

     200        13,074   

Restaurant Group plc

     6,422        48,800   

REXLot Holdings, Ltd.

     150,000        9,823   

Sands China, Ltd.

     15,600        73,263   

SJM Holdings, Ltd.

     72,000        173,443   

St. Marc Holdings Co., Ltd.

     300        13,537   

Tatts Group, Ltd.

     6,802        19,660   

Texas Roadhouse, Inc.

     2,000        50,040   

Tim Hortons, Inc.

     2,700        146,151   

Unibet Group plc

     1,003        33,556   

William Hill plc

     23,284        156,670   

Wynn Macau, Ltd.

     10,800        29,084   

Yum! Brands, Inc.

     5,590        387,611   
   

 

 

  
      3,091,308   
   

 

 

  

Household Durables—0.1%

  

Arnest One Corp.

     700        13,778   

Bellway plc

     1,088        21,077   

CSS Industries, Inc.

     600        14,958   

Dorel Industries, Inc. - Class B

     900        31,406   

Fuji Corp., Ltd.

     2,100        13,623   

Garmin, Ltd.

     3,900        141,024   

GUD Holdings, Ltd.

     1,179        6,415   

JM AB

     1,026        21,576   

Leggett & Platt, Inc.

     1,800        55,962   

Pressance Corp.

     500        14,627   

Sanyo Housing Nagoya Co., Ltd.

     1,000        11,989   

SEB S.A.

     511        41,228   

Skullcandy, Inc. (a)

     1,800        9,828   

Taylor Wimpey plc

     31,707        46,039   

Toa Corp.

     2,000        15,916   

Tupperware Brands Corp.

     1,000        77,690   
   

 

 

  
      537,136   
   

 

 

  

Household Products—0.7%

  

Colgate-Palmolive Co.

     14,762        845,715   

Energizer Holdings, Inc.

     1,600        160,816   

Kimberly-Clark Corp.

     9,925        964,115   

Orchids Paper Products Co.

     600        15,750   

Procter & Gamble Co. (The)

     15,289        1,177,100   

Reckitt Benckiser Group plc

     12,061        855,003   
   

 

 

  
      4,018,499   
   

 

 

  

Independent Power Producers & Energy Traders—0.0%

  

Aboitiz Power Corp.

     64,600      $ 51,911   

Drax Group plc

     2,399        21,247   

Electricity Generating PCL

     3,000        13,058   

Tractebel Energia S.A.

     1,500        23,307   
   

 

 

  
      109,523   
   

 

 

  

Industrial Conglomerates—0.4%

  

3M Co.

     6,765        739,753   

Carlisle Cos., Inc.

     1,400        87,234   

General Electric Co.

     35,900        832,521   

Hopewell Holdings, Ltd.

     26,500        87,810   

Reunert, Ltd.

     2,202        15,370   

Rheinmetall AG

     368        17,147   

Sembcorp Industries, Ltd.

     29,000        112,697   

Siemens AG

     2,754        278,271   

Smiths Group plc

     9,335        186,259   
   

 

 

  
      2,357,062   
   

 

 

  

Insurance—1.3%

  

ACE, Ltd.

     4,500        402,660   

Aegon NV

     19,022        126,990   

Aflac, Inc.

     7,000        406,840   

Ageas

     3,350        117,079   

Allianz SE

     1,048        153,050   

Allied World Assurance Co. Holdings AG

     900        82,359   

Allstate Corp. (The)

     4,000        192,480   

American Equity Investment Life Holding Co.

     2,500        39,250   

American Financial Group, Inc.

     3,400        166,294   

American International Group, Inc. (a)

     8,000        357,600   

American Safety Insurance Holdings, Ltd. (a)

     700        20,265   

Amlin plc

     11,886        71,280   

Amtrust Financial Services, Inc.

     1,500        53,550   

April

     795        13,625   

Arch Capital Group, Ltd. (a)

     2,700        138,807   

Arthur J. Gallagher & Co.

     300        13,107   

Aspen Insurance Holdings, Ltd.

     2,000        74,180   

Assurant, Inc.

     2,000        101,820   

AXA S.A.

     14,815        291,091   

Axis Capital Holdings, Ltd.

     3,600        164,808   

Beazley plc

     28,615        100,414   

Berkshire Hathaway, Inc. - Class B (a)

     1,500        167,880   

Catlin Group, Ltd.

     6,905        52,396   

Chesnara plc

     7,256        27,573   

CNA Financial Corp.

     4,900        159,838   

CNO Financial Group, Inc.

     4,000        51,840   

CNP Assurances

     11,302        161,664   

EMC Insurance Group, Inc.

     500        13,130   

Endurance Specialty Holdings, Ltd.

     1,500        77,175   

Euler Hermes S.A.

     1,294        130,452   

FBL Financial Group, Inc. - Class A

     400        17,404   

First American Financial Corp.

     3,100        68,324   

Generali Deutschland Holding AG

     165        21,455   

Genworth Financial, Inc. - Class A (a)

     3,100        35,371   

Grupo Catalana Occidente S.A.

     1,693        37,306   

Hannover Rueckversicherung SE

     1,441        103,562   

Hartford Financial Services Group, Inc.

     2,200        68,024   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-12

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Insurance—(Continued)

  

HCC Insurance Holdings, Inc.

     2,700      $ 116,397   

HCI Group, Inc.

     1,000        30,720   

Helvetia Holding AG

     192        77,341   

Hiscox, Ltd.

     14,047        122,019   

Horace Mann Educators Corp.

     1,900        46,322   

Jardine Lloyd Thompson Group plc

     5,555        77,000   

Lancashire Holdings, Ltd.

     3,153        38,031   

Legal & General Group plc

     85,798        224,482   

Lincoln National Corp.

     4,200        153,174   

Mapfre S.A.

     10,339        33,446   

Marsh & McLennan Cos., Inc.

     5,500        219,560   

MBIA, Inc. (a)

     2,600        34,606   

Montpelier Re Holdings, Ltd.

     2,600        65,026   

Muenchener Rueckversicherungs AG

     1,068        196,112   

National Western Life Insurance Co. - Class A

     200        37,970   

Navigators Group, Inc. (The) (a)

     600        34,224   

Novae Group plc

     2,006        14,662   

PartnerRe, Ltd.

     1,700        153,952   

Power Corp. of Canada

     469        12,585   

Power Financial Corp.

     4,100        119,215   

Primerica, Inc.

     2,200        82,368   

Principal Financial Group, Inc.

     3,100        116,095   

ProAssurance Corp.

     1,600        83,456   

Protective Life Corp.

     1,400        53,774   

RenaissanceRe Holdings, Ltd.

     1,400        121,506   

Sampo Oyj - A Shares

     4,668        181,156   

Schweizerische National-Versicherungs-Gesellschaft AG

     467        21,575   

SCOR SE

     1,193        36,431   

Sony Financial Holdings, Inc.

     8,889        140,457   

StanCorp Financial Group, Inc.

     1,100        54,351   

Standard Life plc

     40,417        211,311   

Swiss Re AG (a)

     1,975        146,301   

Symetra Financial Corp.

     5,300        84,747   

Torchmark Corp.

     2,400        156,336   

Unum Group

     5,400        158,598   

Validus Holdings, Ltd.

     2,000        72,240   

Vaudoise Assurances Holding S.A.

     37        13,607   

XL Group plc

     3,900        118,248   

Zurich Financial Services AG (a)

     835        216,398   
   

 

 

  
      8,156,742   
   

 

 

  

Internet & Catalog Retail—0.1%

  

Amazon.com, Inc. (a)

     500        138,845   

Ikyu Corp.

     13        15,480   

N Brown Group plc

     2,279        15,266   

PetMed Express, Inc.

     900        11,340   

priceline.com, Inc. (a)

     100        82,713   

Webjet, Ltd.

     2,949        11,952   

Wotif.com Holdings, Ltd.

     2,926        12,087   
   

 

 

  
      287,683   
   

 

 

  

Internet Software & Services—0.3%

  

carsales.com, Ltd.

     4,042        34,711   

Dena Co., Ltd.

     3,400        66,330   

Dice Holdings, Inc. (a)

     1,600        14,736   

Internet Software & Services—(Continued)

  

eBay, Inc. (a)

     1,500      $ 77,580   

Google, Inc. - Class A (a)

     1,200        1,056,444   

Gree, Inc. (a)

     1,400        12,426   

j2 Global, Inc.

     1,400        59,514   

NIFTY Corp.

     7        8,075   

Open Text Corp.

     800        54,692   

SMS Co., Ltd.

     1,500        19,043   

Sohu.com, Inc. (a)

     1,100        67,782   

SUNeVision Holdings, Ltd.

     49,000        14,602   

Travelzoo, Inc. (a)

     600        16,356   
   

 

 

  
      1,502,291   
   

 

 

  

IT Services—0.8%

    

Accenture plc - Class A

     5,100        366,996   

Alten S.A.

     1,217        41,499   

Atea ASA

     5,652        57,133   

Automatic Data Processing, Inc.

     7,887        543,099   

Booz Allen Hamilton Holding Corp.

     4,900        85,162   

Broadridge Financial Solutions, Inc.

     3,700        98,346   

CACI International, Inc. - Class A (a)

     1,100        69,839   

Computer Sciences Corp.

     3,000        131,310   

HIQ International AB (a)

     3,002        15,082   

Ines Corp.

     2,100        13,722   

International Business Machines Corp.

     7,660        1,463,903   

Iress, Ltd.

     5,277        35,990   

Jack Henry & Associates, Inc.

     2,100        98,973   

Mastercard, Inc. - Class A

     200        114,900   

NEC Fielding, Ltd.

     1,600        19,555   

NEC Networks & System Integration Corp.

     700        15,881   

NeuStar, Inc. - Class A (a)

     1,500        73,020   

NTT Data Corp.

     41        145,532   

Obic Co., Ltd.

     340        88,968   

Paychex, Inc.

     2,900        105,908   

SMS Management & Technology, Ltd.

     1,710        7,087   

Syntel, Inc.

     1,000        62,870   

Tieto Oyj

     1,505        28,634   

TKC Corp.

     1,300        23,456   

Total System Services, Inc.

     5,600        137,088   

Transcosmos, Inc.

     1,700        25,736   

Visa, Inc. - Class A

     2,661        486,298   

Western Union Co. (The)

     12,100        207,031   
   

 

 

  
      4,563,018   
   

 

 

  

Leisure Equipment & Products—0.1%

  

Hasbro, Inc.

     3,800        170,354   

Heiwa Corp.

     2,600        45,591   

Mattel, Inc.

     6,000        271,860   

Namco Bandai Holdings, Inc.

     2,100        34,147   

Polaris Industries, Inc.

     1,700        161,500   

Sankyo Co., Ltd.

     1,100        51,965   

Smith & Wesson Holding Corp. (a)

     1,200        11,976   

Sturm Ruger & Co., Inc.

     600        28,824   

Universal Entertainment Corp.

     600        10,617   
   

 

 

  
      786,834   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-13

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Life Sciences Tools & Services—0.1%

  

Agilent Technologies, Inc.

     3,200      $ 136,832   

Bio-Rad Laboratories, Inc. - Class A (a)

     200        22,440   

Bruker Corp. (a)

     1,900        30,685   

CMIC Holdings Co., Ltd.

     800        16,333   

EPS Corp.

     6        6,679   

Mettler-Toledo International, Inc. (a)

     100        20,120   

Techne Corp.

     1,200        82,896   

Waters Corp. (a)

     1,700        170,085   
   

 

 

  
      486,070   
   

 

 

  

Machinery—0.7%

  

Amada Co., Ltd.

     4,000        26,420   

Andritz AG

     836        42,834   

Asahi Diamond Industrial Co., Ltd.

     2,000        18,937   

Atlas Copco AB - A Shares

     8,799        211,319   

Austin Engineering, Ltd.

     2,543        7,319   

Bradken, Ltd.

     2,408        9,492   

Caterpillar, Inc.

     5,732        472,833   

Concentric AB

     1,932        19,098   

Crane Co.

     1,500        89,880   

Cummins, Inc.

     3,504        380,044   

Daiwa Industries, Ltd.

     2,000        10,951   

Danieli & C Officine Meccaniche S.p.A.

     642        14,973   

Deere & Co.

     1,944        157,950   

Dover Corp.

     3,700        287,342   

Duro Felguera S.A.

     3,806        24,514   

Fenner plc

     3,516        16,343   

Flowserve Corp.

     3,000        162,030   

Fuji Machine Manufacturing Co., Ltd.

     1,600        13,573   

Fukushima Industries Corp.

     1,000        12,101   

Hoshizaki Electric Co., Ltd.

     2,100        67,338   

IDEX Corp.

     900        48,429   

Illinois Tool Works, Inc.

     7,704        532,886   

IMI plc

     7,731        146,394   

Joy Global, Inc.

     1,600        77,648   

Kurita Water Industries, Ltd.

     2,800        59,423   

Lincoln Electric Holdings, Inc.

     1,800        103,086   

MaxiTRANS Industries, Ltd.

     9,882        9,607   

Metka S.A.

     2,122        27,366   

Metso Oyj

     2,654        89,926   

Middleby Corp. (a)

     200        34,018   

Mitsuboshi Belting Co., Ltd.

     1,000        4,674   

Morgan Crucible Co. plc

     10,142        40,230   

Nittoku Engineering Co., Ltd.

     1,000        9,579   

NORMA Group

     1,302        47,164   

Pall Corp.

     2,600        172,718   

Parker Hannifin Corp.

     2,700        257,580   

Pfeiffer Vacuum Technology AG

     184        19,070   

Senior plc

     13,149        50,213   

Shinmaywa Industries, Ltd.

     2,000        15,597   

SKF AB - B Shares

     3,056        71,220   

Spirax-Sarco Engineering plc

     858        34,887   

Standex International Corp.

     200        10,550   

Sumitomo Heavy Industries, Ltd.

     12,000        50,581   

Teikoku Sen-I Co., Ltd.

     2,000        14,601   

Tennant Co.

     900        43,443   

Machinery—(Continued)

  

Tocalo Co., Ltd.

     700      $ 9,282   

Toro Co. (The)

     700        31,787   

Toshiba Machine Co., Ltd.

     3,000        14,672   

Tsubakimoto Chain Co.

     6,000        35,546   

Turk Traktor ve Ziraat Makineleri A/S

     572        20,124   

Valmont Industries, Inc.

     600        85,854   

Wabtec Corp.

     600        32,058   

Walter Meier AG

     270        13,962   

Weir Group plc (The)

     2,078        68,312   

Yangzijiang Shipbuilding Holdings, Ltd.

     106,000        69,408   

Zoomlion Heavy Industry Science and Technology Co., Ltd. - Class H

     35,800        25,561   
   

 

 

  
      4,422,747   
   

 

 

  

Marine—0.0%

  

AP Moeller - Maersk A/S - Class B

     10        71,531   

Diana Shipping, Inc. (a)

     2,400        24,096   

Mermaid Marine Australia, Ltd.

     9,504        30,596   
   

 

 

  
      126,223   
   

 

 

  

Media—0.6%

    

Aimia, Inc.

     3,300        49,389   

Amuse, Inc.

     700        16,932   

Axel Springer AG

     1,686        71,838   

Belo Corp. - Class A

     1,500        20,925   

Borussia Dortmund GmbH & Co. KGaA

     2,924        11,812   

British Sky Broadcasting Group plc

     13,445        162,244   

Comcast Corp. - Class A

     8,827        369,675   

CTC Media, Inc.

     3,400        37,808   

Daiichikosho Co., Ltd.

     1,700        46,572   

DIRECTV (a)

     5,300        326,586   

Euromoney Institutional Investor plc

     1,621        25,253   

Fuji Media Holdings, Inc.

     31        62,629   

Gannett Co., Inc.

     2,700        66,042   

ITV plc

     30,664        65,553   

John Wiley & Sons, Inc. - Class A

     1,500        60,135   

Kinepolis Group NV

     154        20,498   

Meredith Corp.

     900        42,930   

Metropole Television S.A.

     3,509        56,506   

Omnicom Group, Inc.

     3,700        232,619   

Phoenix Satellite Television Holdings, Ltd.

     74,000        26,015   

Proto Corp.

     600        7,756   

Publicis Groupe S.A.

     2,881        204,293   

Quebecor, Inc. - Class B

     700        31,003   

REA Group, Ltd.

     567        14,235   

Scholastic Corp.

     500        14,645   

Scripps Networks Interactive, Inc. - Class A

     2,000        133,520   

SES S.A.

     1,311        37,443   

Shaw Communications, Inc. - Class B

     7,400        177,594   

SinoMedia Holding, Ltd.

     41,000        36,223   

Television Broadcasts, Ltd.

     6,000        41,289   

Time Warner, Inc.

     300        17,346   

Toei Co., Ltd.

     2,000        12,896   

Valassis Communications, Inc.

     300        7,377   

Viacom, Inc. - Class B

     4,000        272,200   

Walt Disney Co. (The)

     10,200        644,130   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-14

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Media—(Continued)

    

Wolters Kluwer NV

     6,292      $ 132,690   

Zenrin Co., Ltd.

     1,000        11,091   
   

 

 

  
      3,567,692   
   

 

 

  

Metals & Mining—0.5%

  

African Barrick Gold plc

     5,902        8,580   

Alacer Gold Corp.

     3,800        8,021   

Alamos Gold, Inc.

     2,500        30,284   

Anglo American plc

     4,966        95,961   

Antofagasta plc

     13,281        161,233   

ArcelorMittal

     4,336        48,333   

Aurubis AG

     991        53,142   

Avocet Mining plc

     8,870        919   

BC Iron, Ltd.

     3,596        10,610   

BHP Billiton plc

     12,438        319,463   

BHP Billiton, Ltd.

     16,288        469,342   

Capstone Mining Corp. (a)

     7,500        12,765   

Centamin plc (a)

     19,699        9,418   

Cliffs Natural Resources, Inc.

     1,000        16,250   

Eurasian Natural Resources Corp. plc

     9,797        30,451   

Franco-Nevada Corp.

     1,300        46,539   

Freeport-McMoRan Copper & Gold, Inc.

     3,400        93,874   

Fresnillo plc

     6,620        89,116   

Gold Fields, Ltd.

     4,050        20,967   

Grange Resources, Ltd.

     49,387        7,153   

Grupo Mexico S.A.B. de C.V., Series B

     21,100        61,065   

Highland Gold Mining, Ltd.

     5,802        4,737   

HudBay Minerals, Inc.

     1,300        8,603   

IAMGOLD Corp.

     10,100        42,448   

Iluka Resources, Ltd.

     9,665        87,260   

Imdex, Ltd.

     7,552        4,270   

JFE Holdings, Inc.

     4,700        103,183   

Kazakhmys plc

     5,070        20,024   

KGHM Polska Miedz S.A.

     1,387        50,202   

Kingsgate Consolidated, Ltd.

     2,426        2,793   

Koza Anadolu Metal Madencilik Isletmeleri (a)

     5,052        7,470   

Kumba Iron Ore, Ltd.

     267        12,391   

Major Drilling Group International

     1,400        9,531   

Maruichi Steel Tube, Ltd.

     2,200        56,315   

Mount Gibson Iron, Ltd.

     12,894        5,428   

Nevsun Resources, Ltd.

     2,300        6,801   

Newmont Mining Corp.

     5,000        149,750   

OZ Minerals, Ltd.

     2,885        10,718   

Pan American Silver Corp.

     2,800        32,614   

Petropavlovsk plc

     3,096        4,211   

Reliance Steel & Aluminum Co.

     1,000        65,560   

Resolute Mining, Ltd.

     6,656        3,629   

Rio Tinto plc

     3,766        154,355   

Rio Tinto, Ltd.

     1,299        61,699   

Salzgitter AG

     339        11,135   

SEMAFO, Inc.

     4,200        6,190   

Sibanye Gold, Ltd. (a)

     4,050        2,924   

Silver Wheaton Corp.

     1,800        35,274   

St Barbara, Ltd. (a)

     4,110        1,688   

Sumitomo Metal Mining Co., Ltd.

     8,000        89,225   

Teck Resources, Ltd. - Class B

     3,400        72,642   

Metals & Mining—(Continued)

  

Troy Resources, Ltd.

     2,277      $ 3,179   

Vedanta Resources plc

     842        13,118   

Zijin Mining Group Co., Ltd. - Class H

     216,000        37,759   
   

 

 

  
      2,770,612   
   

 

 

  

Multi-Utilities—0.3%

  

Atco, Ltd. - Class I

     1,000        41,257   

Centrica plc

     98,706        541,711   

Dominion Resources, Inc.

     3,462        196,711   

E.ON SE

     13,375        219,463   

GDF Suez

     4,274        83,336   

National Grid plc

     44,990        508,904   

RWE AG

     4,853        154,850   
   

 

 

  
      1,746,232   
   

 

 

  

Multiline Retail—0.2%

  

Big Lots, Inc. (a)

     1,300        40,989   

Debenhams plc

     26,464        38,532   

Dollar General Corp. (a)

     3,500        176,505   

Dollar Tree, Inc. (a)

     1,800        91,512   

Kohl’s Corp.

     3,100        156,581   

Lifestyle International Holdings, Ltd.

     21,500        44,931   

Macy’s, Inc.

     3,700        177,600   

Metro Holdings, Ltd.

     14,000        10,305   

Myer Holdings, Ltd.

     10,600        22,943   

Next plc

     1,768        122,277   

Reject Shop, Ltd. (The)

     789        12,367   

Seria Co., Ltd.

     900        27,125   

Target Corp.

     4,818        331,768   

Warehouse Group, Ltd. (The)

     4,684        12,875   
   

 

 

  
      1,266,310   
   

 

 

  

Office Electronics—0.1%

  

Brother Industries, Ltd.

     7,000        78,849   

Canon, Inc.

     10,900        357,996   

Konica Minolta, Inc.

     3,000        22,659   

Neopost S.A.

     190        12,560   

Riso Kagaku Corp.

     700        15,546   

Xerox Corp.

     24,700        224,029   

Zebra Technologies Corp. - Class A (a)

     1,000        43,440   
   

 

 

  
      755,079   
   

 

 

  

Oil, Gas & Consumable Fuels—2.2%

  

Afren plc (a)

     24,140        47,255   

Alliance Oil Co., Ltd. (a)

     1,847        10,091   

Alliance Resource Partners L.P.

     1,100        77,693   

Apache Corp.

     4,500        377,235   

AWE, Ltd. (a)

     22,523        25,413   

Baytex Energy Corp.

     2,500        90,092   

Beach Energy, Ltd.

     43,727        45,047   

BG Group plc

     39,155        668,258   

BP plc

     75,831        526,053   

Cairn Energy plc (a)

     4,794        18,385   

Canadian Oil Sands, Ltd.

     10,100        186,980   

Chevron Corp.

     13,657        1,616,169   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-15

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Oil, Gas & Consumable Fuels—(Continued)

  

Cloud Peak Energy, Inc. (a)

     1,600      $ 26,368   

ConocoPhillips

     10,120        612,260   

Dorchester Minerals L.P.

     800        19,592   

Encana Corp.

     7,500        126,866   

ENI S.p.A.

     20,539        421,966   

EnQuest plc (a)

     17,710        31,761   

Exxon Mobil Corp.

     27,876        2,518,597   

Gazprom Neft OAO (ADR) (a)

     909        16,289   

Gazprom OAO (ADR) (a)

     2,049        13,462   

Gran Tierra Energy, Inc. (a)

     8,400        50,484   

Hess Corp.

     2,000        132,980   

HollyFrontier Corp.

     2,600        111,228   

Idemitsu Kosan Co., Ltd.

     100        7,694   

Indo Tambangraya Megah Tbk PT

     7,500        21,163   

Inpex Corp.

     51        213,209   

Japan Petroleum Exploration Co.

     1,400        56,821   

JKX Oil & Gas plc (a)

     8,443        7,284   

JX Holdings, Inc.

     7,600        36,862   

Kanto Natural Gas Development, Ltd.

     4,000        27,104   

KazMunaiGas Exploration Production JSC (GDR)

     4,045        61,079   

Lightstream Resources, Ltd.

     1,326        9,897   

Lukoil OAO (ADR)

     838        48,311   

Marathon Petroleum Corp.

     3,600        255,816   

MIE Holdings Corp.

     56,000        12,888   

Murphy Oil Corp.

     2,600        158,314   

Newfield Exploration Co. (a)

     1,700        40,613   

Occidental Petroleum Corp.

     7,374        657,982   

OMV AG

     4,348        195,601   

Pacific Rubiales Energy Corp.

     5,940        104,319   

Parex Resources, Inc. (a)

     2,500        9,794   

Peabody Energy Corp.

     4,500        65,880   

Petrobank Energy & Resources, Ltd. (a)

     1,200        548   

Petrominerales, Ltd.

     4,600        26,243   

Phillips 66

     5,300        312,223   

Platino Energy Corp. (a)

     2,100        2,496   

PTT Exploration & Production PCL

     18,300        93,521   

Repsol S.A.

     5,716        120,500   

Roc Oil Co., Ltd. (a)

     25,325        10,400   

Royal Dutch Shell plc - A Shares

     21,585        688,900   

Royal Dutch Shell plc - B Shares

     20,526        678,811   

Soco International plc (a)

     7,012        37,375   

Statoil ASA

     14,385        296,553   

Stone Energy Corp. (a)

     1,300        28,639   

Suncor Energy, Inc.

     11,800        347,818   

Tatneft OAO (ADR) (a)

     1,400        50,862   

Tesoro Corp.

     1,000        52,320   

Total Gabon

     33        18,064   

Total S.A.

     14,614        712,643   

TransGlobe Energy Corp. (a)

     3,600        22,318   

Vaalco Energy, Inc. (a)

     1,400        8,008   

Valero Energy Corp.

     3,600        125,172   

Western Refining, Inc.

     1,000        28,070   

Williams Cos., Inc. (The)

     2,927        95,040   
   

 

 

  
      13,517,679   
   

 

 

  

Paper & Forest Products—0.0%

  

Domtar Corp.

     400      $ 26,600   

International Paper Co.

     800        35,448   

Mondi plc

     1,724        21,363   

OJI Holdings Corp.

     3,000        12,100   

Portucel Empresa Produtora de Pasta e Papel S.A.

     25,423        81,060   

Schweitzer-Mauduit International, Inc.

     800        39,904   

Stora Enso Oyj - R Shares

     1,986        13,234   

UPM-Kymmene Oyj

     1,660        16,190   
   

 

 

  
      245,899   
   

 

 

  

Personal Products—0.2%

  

Artnature, Inc.

     700        12,922   

Blackmores, Ltd.

     555        13,674   

Dr Ci:Labo Co., Ltd.

     17        45,167   

Herbalife, Ltd.

     3,000        135,420   

Kobayashi Pharmaceutical Co., Ltd.

     1,300        68,676   

L’Oreal S.A.

     1,486        242,964   

Milbon Co., Ltd.

     1,200        42,348   

Nature’s Sunshine Products, Inc.

     1,000        16,350   

Nu Skin Enterprises, Inc. - Class A

     2,100        128,352   

Nutraceutical International Corp.

     1,300        26,572   

Oriflame Cosmetics S.A.

     2,583        81,624   

Prince Frog International Holdings, Ltd.

     74,000        50,950   

Real Nutriceutical Group, Ltd.

     45,000        12,542   

USANA Health Sciences, Inc. (a)

     400        28,952   
   

 

 

  
      906,513   
   

 

 

  

Pharmaceuticals—2.5%

  

AbbVie, Inc.

     14,156        585,209   

AstraZeneca plc

     21,684        1,025,739   

Bayer AG

     1,783        190,080   

Boiron S.A.

     1,269        65,895   

Bristol-Myers Squibb Co.

     13,142        587,316   

Daiichi Sankyo Co., Ltd.

     4,500        75,144   

Eli Lilly & Co.

     13,906        683,063   

GlaxoSmithKline plc

     37,736        944,035   

Hi-Tech Pharmacal Co., Inc.

     400        13,280   

Hisamitsu Pharmaceutical Co., Inc.

     800        40,754   

Hua Han Bio-Pharmaceutical Holdings, Ltd.

     91,200        24,066   

Jazz Pharmaceuticals plc (a)

     200        13,746   

Johnson & Johnson

     25,297        2,172,000   

Kaken Pharmaceutical Co., Ltd.

     6,000        89,150   

Kissei Pharmaceutical Co., Ltd.

     1,000        20,207   

KYORIN Holdings, Inc.

     3,000        68,971   

Merck & Co., Inc.

     20,739        963,326   

Mitsubishi Tanabe Pharma Corp.

     3,000        38,951   

Novartis AG

     21,426        1,518,448   

Novo Nordisk A/S - Class B

     535        83,293   

Orion Oyj - Class B

     5,403        126,375   

Otsuka Holdings Co., Ltd.

     7,100        234,459   

Pfizer, Inc.

     55,866        1,564,807   

Questcor Pharmaceuticals, Inc.

     2,500        113,650   

Recordati S.p.A.

     7,396        82,045   

Roche Holding AG

     7,777        1,927,019   

Sanofi

     8,820        908,963   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-16

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Pharmaceuticals—(Continued)

  

Sciclone Pharmaceuticals, Inc. (a)

     2,100      $ 10,416   

Shionogi & Co., Ltd.

     6,000        125,241   

Shire plc

     7,508        238,176   

Takeda Pharmaceutical Co., Ltd.

     5,600        253,430   

Teva Pharmaceutical Industries, Ltd. (ADR)

     6,100        239,120   

Zoetis, Inc.

     1,912        59,061   
   

 

 

  
      15,085,435   
   

 

 

  

Professional Services—0.1%

  

ALS, Ltd.

     7,935        68,920   

Bertrandt AG

     444        47,609   

Equifax, Inc.

     3,200        188,576   

Insperity, Inc.

     1,200        36,360   

RPX Corp. (a)

     2,700        45,360   

Seek, Ltd.

     3,704        30,550   

Skilled Group, Ltd.

     5,412        12,701   

Stantec, Inc.

     1,500        63,326   

Teleperformance

     1,805        86,660   

Temp Holdings Co., Ltd.

     1,600        36,543   
   

 

 

  
      616,605   
   

 

 

  

Real Estate Investment Trusts—0.2%

  

Allied Properties Real Estate Investment Trust

     2,500        76,091   

ANF Immobilier

     476        13,042   

Apollo Commercial Real Estate Finance, Inc.

     1,300        20,644   

Apollo Residential Mortgage, Inc.

     3,400        56,032   

ARMOUR Residential REIT, Inc.

     13,200        62,172   

Artis Real Estate Investment Trust

     3,000        43,102   

British Land Co. plc

     7,980        68,662   

BWP Trust

     14,844        30,431   

Canadian Apartment Properties

     2,200        47,380   

Capstead Mortgage Corp.

     2,900        35,090   

Chimera Investment Corp.

     25,600        76,800   

Colony Financial, Inc.

     2,300        45,747   

Cominar Real Estate Investment Trust

     4,100        81,244   

Dundee Real Estate Investment Trust - Class A

     1,900        58,967   

Dynex Capital, Inc.

     2,100        21,399   

EPR Properties

     900        45,243   

First Real Estate Investment Trust

     14,000        13,419   

Frasers Commercial Trust

     19,000        20,661   

Gecina S.A.

     171        18,830   

Government Properties Income Trust

     1,900        47,918   

Hammerson plc

     3,384        25,169   

Hatteras Financial Corp.

     1,300        32,032   

Invesco Mortgage Capital, Inc.

     2,900        48,024   

Land Securities Group plc

     2,932        39,220   

Mapletree Logistics Trust

     52,000        45,124   

Mercialys S.A.

     2,280        43,960   

Northern Property Real Estate Investment Trust

     1,300        33,881   

NorthWest Healthcare Properties Real Estate Investment Trust

     1,100        11,997   

PS Business Parks, Inc.

     700        50,519   

Rayonier, Inc.

     1,700        94,163   

Sekisui House SI Investment Co.

     4        19,029   

Shopping Centres Australasia Property Group

     1,174        1,701   
   

 

 

  
      1,327,693   
   

 

 

  

Real Estate Management & Development—0.3%

  

Aeon Mall Co., Ltd.

     2,900      $ 71,852   

Airport Facilities Co., Ltd.

     2,500        14,840   

Atrium European Real Estate, Ltd.

     7,669        39,983   

Cheung Kong Holdings, Ltd.

     14,000        189,207   

CSI Properties, Ltd.

     290,000        12,083   

Daibiru Corp.

     3,400        37,884   

Daikyo, Inc.

     7,000        20,966   

Daito Trust Construction Co., Ltd.

     1,200        113,137   

Daiwa House Industry Co., Ltd.

     8,000        149,324   

Dan Form Holdings Co., Ltd.

     74,000        9,011   

Emperor International Holdings

     44,000        11,834   

Great Eagle Holdings, Ltd.

     5,000        19,010   

Henderson Land Development Co., Ltd.

     4,400        26,149   

Ho Bee Investment, Ltd.

     9,000        13,950   

Hong Fok Corp., Ltd.

     29,000        15,726   

Hongkong Land Holdings, Ltd.

     8,000        54,798   

Hysan Development Co., Ltd.

     14,000        59,837   

K Wah International Holdings, Ltd.

     31,000        14,110   

Keihanshin Building Co., Ltd.

     2,400        13,311   

Keppel Land, Ltd.

     19,000        49,895   

Kerry Properties, Ltd.

     22,000        85,405   

Killam Properties, Inc.

     2,600        26,452   

Lai Sun Development (a)

     277,000        7,157   

New World Development Co., Ltd.

     24,000        33,001   

PSP Swiss Property AG (a)

     709        61,323   

Sankyo Frontier Co., Ltd.

     4,000        27,423   

Singapore Land, Ltd.

     2,000        14,094   

Sun Hung Kai Properties, Ltd.

     19,000        244,284   

Swire Pacific, Ltd. - Class A

     7,000        83,835   

Swire Properties, Ltd.

     31,000        91,667   

UOL Group, Ltd.

     15,000        79,520   

Wharf Holdings, Ltd.

     21,000        174,843   

Wheelock & Co., Ltd.

     20,000        99,259   
   

 

 

  
      1,965,170   
   

 

 

  

Road & Rail—0.4%

  

Amerco, Inc.

     400        64,760   

Canadian National Railway Co.

     3,300        321,308   

ComfortDelGro Corp., Ltd.

     86,000        123,750   

CSX Corp.

     19,676        456,286   

Go-Ahead Group plc

     2,180        48,999   

Guangshen Railway Co., Ltd. - Class H

     62,000        25,155   

Heartland Express, Inc.

     1,000        13,870   

Hitachi Transport System, Ltd.

     1,000        16,484   

Landstar System, Inc.

     1,800        92,700   

Nippon Konpo Unyu Soko Co., Ltd.

     3,000        50,247   

Norfolk Southern Corp.

     6,038        438,661   

Sankyu, Inc.

     16,000        60,340   

Seino Holdings Co., Ltd.

     2,000        17,546   

Trancom Co., Ltd.

     800        22,346   

Union Pacific Corp.

     3,900        601,692   

Utoc Corp.

     3,700        12,312   

West Japan Railway Co.

     4,600        194,725   
   

 

 

  
      2,561,181   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-17

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Semiconductors & Semiconductor Equipment—0.5%

  

Alpha & Omega Semiconductor, Ltd. (a)

     1,400      $ 10,696   

Analog Devices, Inc.

     4,100        184,746   

ARM Holdings plc

     10,192        123,321   

Avago Technologies, Ltd.

     2,500        93,450   

CSR plc

     5,704        46,550   

Intel Corp.

     42,601        1,031,796   

KLA-Tencor Corp.

     3,100        172,763   

Kulicke & Soffa Industries, Inc. (a)

     900        9,954   

Linear Technology Corp.

     4,100        151,044   

Marvell Technology Group, Ltd.

     3,000        35,130   

Maxim Integrated Products, Inc.

     6,400        177,792   

Melexis NV

     893        18,780   

Nuflare Technology, Inc.

     2        17,889   

NVIDIA Corp.

     5,800        81,374   

Powertech Technology, Inc.

     12,000        22,355   

Radiant Opto-Electronics Corp.

     3,000        9,771   

Rohm Co., Ltd.

     1,800        72,606   

Samsung Electronics Co., Ltd.

     55        64,552   

Shinko Electric Industries Co., Ltd.

     1,500        17,578   

SMA Solar Technology AG

     1,073        31,977   

Texas Instruments, Inc.

     15,785        550,423   

Transcend Information, Inc.

     3,000        9,276   

Xilinx, Inc.

     3,300        130,713   
   

 

 

  
      3,064,536   
   

 

 

  

Software—0.7%

  

Activision Blizzard, Inc.

     5,500        78,430   

CA, Inc.

     8,000        229,040   

Capcom Co., Ltd.

     2,100        33,986   

Check Point Software Technologies, Ltd. (a)

     500        24,840   

Constellation Software, Inc.

     500        68,936   

DTS Corp.

     1,900        27,646   

FactSet Research Systems, Inc.

     300        30,582   

Giant Interactive Group, Inc. (ADR)

     2,500        20,025   

Intuit, Inc.

     5,300        323,459   

Micro Focus International plc

     5,697        61,353   

MICROS Systems, Inc. (a)

     2,500        107,875   

Microsoft Corp.

     50,000        1,726,500   

Nemetschek AG

     254        16,364   

Nexon Co., Ltd.

     9,300        102,597   

Oracle Corp.

     27,800        854,016   

Oracle Corp. Japan

     2,500        103,915   

Sage Group plc (The)

     25,655        133,052   

SAP AG

     2,190        160,365   

Software AG

     1,757        52,586   

Symantec Corp.

     13,000        292,110   

Tecmo Koei Holdings Co., Ltd.

     3,200        28,653   

Trend Micro, Inc.

     1,500        47,646   
   

 

 

  
      4,523,976   
   

 

 

  

Specialty Retail—0.7%

  

ABC-Mart, Inc.

     1,700        66,337   

Advance Auto Parts, Inc.

     1,500        121,755   

Alpen Co., Ltd.

     1,100        21,163   

American Eagle Outfitters, Inc.

     2,400        43,824   

ANN, Inc. (a)

     400        13,280   

AOKI Holdings, Inc.

     500        15,100   

Specialty Retail—(Continued)

  

Aoyama Trading Co., Ltd.

     1,200      $ 31,727   

ARB Corp., Ltd.

     3,206        33,327   

AutoZone, Inc. (a)

     500        211,845   

Bed Bath & Beyond, Inc. (a)

     3,200        226,880   

Buckle, Inc. (The)

     700        36,414   

Carphone Warehouse Group plc

     5,502        20,880   

Cash Converters International, Ltd.

     12,511        12,109   

Cato Corp. (The) - Class A

     500        12,480   

Chico’s FAS, Inc.

     2,800        47,768   

Clas Ohlson AB - B Shares

     892        11,782   

CST Brands, Inc. (a)

     400        12,324   

Delticom AG

     393        19,808   

Destination Maternity Corp.

     500        12,300   

Dick’s Sporting Goods, Inc.

     2,000        100,120   

Dunelm Group plc

     2,375        34,046   

Express, Inc. (a)

     1,600        33,552   

Finish Line, Inc. (The) - Class A

     500        10,930   

Foot Locker, Inc.

     1,500        52,695   

GameStop Corp. - Class A

     2,400        100,872   

Gap, Inc. (The)

     4,300        179,439   

Genesco, Inc. (a)

     200        13,398   

Giordano International, Ltd.

     20,000        17,490   

Guess?, Inc.

     1,300        40,339   

Halfords Group plc

     4,248        20,607   

Hennes & Mauritz AB - B Shares

     646        21,153   

Home Depot, Inc. (The)

     9,900        766,953   

Honeys Co., Ltd.

     790        8,664   

JB Hi-Fi, Ltd.

     1,818        27,821   

JUMBO S.A. (a)

     2,965        29,361   

L Brands, Inc.

     4,000        197,000   

Lowe’s Cos., Inc.

     4,950        202,455   

Men’s Wearhouse, Inc. (The)

     700        26,495   

Nitori Holdings Co., Ltd.

     850        68,611   

O’Reilly Automotive, Inc. (a)

     1,300        146,406   

OrotonGroup, Ltd.

     1,909        12,280   

OSIM International, Ltd.

     9,000        13,956   

Pal Co., Ltd.

     500        14,525   

PetSmart, Inc.

     2,000        133,980   

Pier 1 Imports, Inc.

     600        14,094   

Ross Stores, Inc.

     2,700        174,987   

rue21, Inc. (a)

     300        12,483   

Sally Beauty Holdings, Inc. (a)

     1,200        37,320   

Select Comfort Corp. (a)

     400        10,024   

Shimachu Co., Ltd.

     1,000        24,523   

Shimamura Co., Ltd.

     400        48,601   

Staples, Inc.

     10,700        169,702   

Super Retail Group, Ltd.

     2,304        25,185   

TJX Cos., Inc.

     5,100        255,306   

Tractor Supply Co.

     600        70,566   

United Arrows, Ltd.

     500        20,948   

USS Co., Ltd.

     550        69,821   

WH Smith plc

     4,386        47,754   

Williams-Sonoma, Inc.

     1,100        61,479   

Winmark Corp.

     300        19,461   

Xebio Co., Ltd.

     900        18,440   

Yamada Denki Co., Ltd.

     340        13,799   
   

 

 

  
      4,338,744   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-18

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description       
    
Shares		     Value  

Textiles, Apparel & Luxury Goods—0.3%

  

361 Degrees International, Ltd.

     42,000      $ 9,993   

Adidas AG

     1,462        158,017   

Anta Sports Products, Ltd.

     20,000        17,479   

Bijou Brigitte AG

     106        10,231   

Burberry Group plc

     5,444        112,307   

China Lilang, Ltd.

     32,000        17,007   

China Taifeng Beddings Holdings, Ltd.

     36,000        8,196   

Coach, Inc.

     2,500        142,725   

Crocs, Inc. (a)

     1,100        18,150   

Deckers Outdoor Corp. (a)

     700        35,357   

Fossil Group, Inc. (a)

     1,000        103,310   

LVMH Moet Hennessy Louis Vuitton S.A.

     420        67,635   

NIKE, Inc. - Class B

     7,799        496,640   

Pacific Textile Holdings, Ltd.

     10,000        11,256   

Peak Sport Products Co., Ltd.

     74,000        13,177   

Ports Design, Ltd.

     18,000        11,686   

Pou Chen Corp.

     17,000        16,143   

Ralph Lauren Corp.

     1,000        173,740   

Steven Madden, Ltd. (a)

     1,000        48,380   

Swatch Group AG (The)

     311        170,399   

Tod’s S.p.A.

     473        66,591   

Van de Velde NV

     570        24,855   

Vera Bradley, Inc. (a)

     1,200        25,992   

VF Corp.

     1,300        250,978   

XTEP International Holdings

     62,000        25,731   
   

 

 

  
      2,035,975   
   

 

 

  

Thrifts & Mortgage Finance—0.0%

  

Genworth MI Canada, Inc.

     4,800        112,002   

TrustCo Bank Corp.

     1,800        9,792   

Washington Federal, Inc.

     5,600        105,728   
   

 

 

  
      227,522   
   

 

 

  

Tobacco—0.6%

  

Altria Group, Inc.

     12,900        451,371   

British American Tobacco plc

     22,983        1,180,255   

Imperial Tobacco Group plc

     4,217        146,520   

Japan Tobacco, Inc.

     1,300        45,947   

KT&G Corp.

     884        57,338   

Lorillard, Inc.

     4,800        209,664   

Philip Morris International, Inc.

     12,534        1,085,695   

Reynolds American, Inc.

     4,400        212,828   

Swedish Match AB

     3,108        109,878   

Universal Corp.

     1,000        57,850   
   

 

 

  
      3,557,346   
   

 

 

  

Trading Companies & Distributors—0.2%

  

Applied Industrial Technologies, Inc.

     1,200        57,996   

Inaba Denki Sangyo Co., Ltd.

     1,200        30,903   

ITOCHU Corp.

     20,000        230,926   

Kuroda Electric Co., Ltd.

     1,200        15,984   

Marubeni Corp.

     10,000        66,857   

Mitsubishi Corp.

     11,500        197,021   

Trading Companies & Distributors—(Continued)

  

Mitsui & Co., Ltd.

     28,200      $ 354,316   

MSC Industrial Direct Co., Inc. - Class A

     1,100        85,206   

Pan-United Corp., Ltd.

     23,000        16,330   

Ramirent Oyj

     1,685        14,532   

Richelieu Hardware, Ltd.

     400        15,560   

Sumitomo Corp.

     9,400        117,252   

Tomoe Engineering Co., Ltd.

     500        8,220   

Trusco Nakayama Corp.

     800        15,955   

Wajax Corp.

     300        9,082   

Wakita & Co., Ltd.

     2,000        17,687   

WW Grainger, Inc.

     600        151,308   

Yamazen Corp.

     1,300        8,193   
   

 

 

  
      1,413,328   
   

 

 

  

Transportation Infrastructure—0.0%

  

Autostrada Torino-Milano S.p.A. (a)

     4,303        48,981   

Kamigumi Co., Ltd.

     7,000        56,397   

Societa Iniziative Autostradali e Servizi S.p.A.

     8,926        72,757   
   

 

 

  
      178,135   
   

 

 

  

Wireless Telecommunication Services—0.3%

  

China Mobile, Ltd.

     6,500        67,721   

Drillisch AG

     1,120        18,727   

Freenet AG (a)

     3,437        75,073   

KDDI Corp.

     5,400        280,969   

Millicom International Cellular S.A.

     2,185        157,608   

Mobistar S.A.

     1,533        32,033   

MTN Group, Ltd.

     2,972        55,128   

NTT DoCoMo, Inc.

     350        543,846   

SmarTone Telecommunications Holdings, Ltd.

     17,000        27,891   

Sonaecom - SGPS S.A.

     22,233        45,033   

StarHub, Ltd.

     38,000        125,307   

Tele2 AB - B Shares

     3,766        44,064   

USA Mobility, Inc.

     1,100        14,927   

Vodacom Group, Ltd.

     6,365        67,450   

Vodafone Group plc

     185,843        533,317   
   

 

 

  
      2,089,094   
   

 

 

  

Total Common Stocks
(Cost $167,783,008)

       173,609,916   
   

 

 

  
Corporate Bonds & Notes—22.4%   

Advertising—0.1%

  

Omnicom Group, Inc.
5.900%, 04/15/16

     210,000        233,785   

WPP Finance UK
8.000%, 09/15/14

     490,000        528,813   
   

 

 

  
      762,598   
   

 

 

  

Aerospace/Defense—0.1%

  

United Technologies Corp.
4.500%, 06/01/42

     575,000        567,009   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-19

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Agriculture—0.7%

  

Altria Group, Inc.
4.125%, 09/11/15

     400,000      $ 426,254   

10.200%, 02/06/39

     710,000        1,068,601   

Lorillard Tobacco Co.
8.125%, 06/23/19

     695,000        851,639   

Philip Morris International, Inc.
6.375%, 05/16/38

     645,000        766,559   

Reynolds American, Inc.
3.250%, 11/01/22

     865,000        804,101   

7.625%, 06/01/16

     485,000        565,452   
   

 

 

  
      4,482,606   
   

 

 

  

Auto Manufacturers—0.1%

  

Daimler Finance North America LLC
1.300%, 07/31/15 (144A)

     400,000        400,880   
   

 

 

  

Banks—7.0%

    

American Express Bank FSB
6.000%, 09/13/17

     1,055,000        1,215,546   

Banco Santander Mexico S.A.
4.125%, 11/09/22 (144A)

     160,000        150,000   

Bank of America Corp.
3.300%, 01/11/23

     2,145,000        2,027,340   

5.625%, 07/01/20

     2,950,000        3,247,853   

Bank of Montreal
1.950%, 01/30/17 (144A)

     310,000        316,882   

Bank of Nova Scotia
1.950%, 01/30/17 (144A)

     1,120,000        1,144,416   

Barclays Bank plc
6.050%, 12/04/17 (144A)

     1,635,000        1,768,612   

BBVA Banco Continental S.A.
3.250%, 04/08/18 (144A)

     330,000        320,925   

BBVA US Senior S.A. Unipersonal
4.664%, 10/09/15

     400,000        412,049   

BNP Paribas S.A.
2.375%, 09/14/17

     625,000        618,750   

3.250%, 03/03/23

     905,000        831,923   

Citigroup, Inc.
3.375%, 03/01/23

     2,290,000        2,190,646   

8.125%, 07/15/39

     885,000        1,168,854   

Corpbanca S.A.
3.125%, 01/15/18

     435,000        412,208   

Danske Bank A/S
3.875%, 04/14/16 (144A)

     515,000        539,442   

Goldman Sachs Group, Inc. (The)
3.625%, 01/22/23

     2,450,000        2,344,094   

5.750%, 01/24/22

     2,000,000        2,206,026   

HSBC Holdings plc
4.875%, 01/14/22

     1,125,000        1,214,251   

JPMorgan Chase & Co.
3.250%, 09/23/22

     4,320,000        4,101,416   

Morgan Stanley
3.750%, 02/25/23

     3,345,000        3,198,767   

5.500%, 01/26/20

     1,555,000        1,669,117   

Banks—(Continued)

    

National Bank of Canada
2.200%, 10/19/16 (144A)

     655,000      $ 676,485   

Norddeutsche Landesbank Girozentrale
0.875%, 10/16/15 (144A)

     600,000        599,400   

Rabobank Nederland
3.875%, 02/08/22

     700,000        704,913   

3.950%, 11/09/22

     250,000        239,068   

Royal Bank of Canada
2.625%, 12/15/15

     255,000        264,945   

Royal Bank of Scotland plc (The)
5.625%, 08/24/20

     455,000        493,506   

Societe Generale S.A.
2.750%, 10/12/17

     415,000        416,054   

Sparebank 1 Boligkreditt A/S
2.300%, 06/30/17 (144A)

     1,500,000        1,527,895   

Standard Chartered plc
3.950%, 01/11/23 (144A)

     205,000        190,700   

Swedbank Hypotek AB
2.375%, 04/05/17 (144A)

     200,000        205,460   

Toronto-Dominion Bank (The)
1.500%, 03/13/17 (144A)

     3,060,000        3,074,994   

UBS AG
2.250%, 03/30/17 (144A)

     1,700,000        1,756,617   

Wells Fargo & Co.
3.500%, 03/08/22

     1,425,000        1,441,127   
   

 

 

  
      42,690,281   
   

 

 

  

Beverages—0.3%

  

Anheuser-Busch InBev Worldwide, Inc.
3.750%, 07/15/42

     915,000        792,770   

5.375%, 11/15/14

     300,000        318,436   

Fomento Economico Mexicano S.A.B. de C.V.
4.375%, 05/10/43

     660,000        574,537   

SABMiller Holdings, Inc.
1.850%, 01/15/15 (144A)

     400,000        405,822   
   

 

 

  
      2,091,565   
   

 

 

  

Biotechnology—0.2%

  

Amgen, Inc.
4.500%, 03/15/20

     250,000        272,309   

Genentech, Inc.
4.750%, 07/15/15

     300,000        323,648   

Gilead Sciences, Inc.
4.500%, 04/01/21

     450,000        487,636   
   

 

 

  
      1,083,593   
   

 

 

  

Chemicals—0.3%

    

Agrium, Inc.
3.150%, 10/01/22

     770,000        723,892   

3.500%, 06/01/23

     200,000        192,383   

CF Industries, Inc.
3.450%, 06/01/23

     165,000        158,568   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-20

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Chemicals—(Continued)

    

Mosaic Co. (The)
3.750%, 11/15/21

     255,000      $ 255,205   

4.875%, 11/15/41

     335,000        320,500   
   

 

 

  
      1,650,548   
   

 

 

  

Computers—0.5%

    

Apple, Inc.
2.400%, 05/03/23

     935,000        867,179   

International Business Machines Corp.
7.625%, 10/15/18

     1,785,000        2,271,291   
   

 

 

  
      3,138,470   
   

 

 

  

Distribution/Wholesale—0.1%

    

Glencore Funding LLC
4.125%, 05/30/23 (144A)

     670,000        597,562   
   

 

 

  

Diversified Financial Services—0.7%

    

Caterpillar Financial Services Corp.
7.150%, 02/15/19

     300,000        374,223   

Credit Suisse AG
1.625%, 03/06/15 (144A)

     215,000        218,118   

Ford Motor Credit Co. LLC
1.700%, 05/09/16

     440,000        432,822   

2.750%, 05/15/15

     400,000        405,596   

6.625%, 08/15/17

     1,710,000        1,935,366   

Jefferies Group LLC
5.125%, 01/20/23

     285,000        282,802   

SLM Corp.
6.000%, 01/25/17

     700,000        731,500   
   

 

 

  
      4,380,427   
   

 

 

  

Electric—1.2%

    

Dominion Resources, Inc.
4.050%, 09/15/42

     600,000        526,520   

Duke Energy Carolinas LLC
4.300%, 06/15/20

     540,000        587,687   

Electricite de France S.A.
5.250%, 01/29/23 (144A) (b)

     590,000        564,040   

6.500%, 01/26/19 (144A)

     180,000        213,278   

Florida Power Corp.
6.400%, 06/15/38

     1,125,000        1,378,162   

Georgia Power Co.
4.300%, 03/15/42

     545,000        499,807   

MidAmerican Energy Holdings Co.
6.500%, 09/15/37

     345,000        409,679   

Nisource Finance Corp.
4.800%, 02/15/44

     230,000        208,265   

6.125%, 03/01/22

     410,000        462,711   

Pacific Gas & Electric Co.
6.250%, 03/01/39

     500,000        598,184   

Public Service Co. of Colorado
4.750%, 08/15/41

     475,000        490,959   

Southern California Edison Co.
4.500%, 09/01/40

     575,000        572,553   

5.500%, 03/15/40

     335,000        383,480   

Electric—(Continued)

    

Virginia Electric and Power Co.
4.000%, 01/15/43

     440,000      $ 405,115   
   

 

 

  
      7,300,440   
   

 

 

  

Electronics—0.0%

    

Honeywell International, Inc.
5.700%, 03/15/37

     240,000        279,871   
   

 

 

  

Environmental Control—0.1%

    

Republic Services, Inc.
5.250%, 11/15/21

     85,000        93,323   

6.200%, 03/01/40

     185,000        211,010   
   

 

 

  
      304,333   
   

 

 

  

Food—0.7%

    

ConAgra Foods, Inc.
1.900%, 01/25/18

     400,000        393,232   

General Mills, Inc.
5.700%, 02/15/17

     300,000        339,739   

Kraft Foods Group, Inc.
6.125%, 08/23/18

     300,000        352,244   

Kroger Co. (The)
5.000%, 04/15/42

     260,000        249,378   

Mondelez International, Inc.
6.125%, 02/01/18

     300,000        346,720   

6.875%, 02/01/38

     510,000        623,090   

6.875%, 01/26/39

     310,000        382,603   

Tyson Foods, Inc.
4.500%, 06/15/22

     565,000        577,331   

Want Want China Finance, Ltd.
1.875%, 05/14/18 (144A)

     830,000        776,789   
   

 

 

  
      4,041,126   
   

 

 

  

Forest Products & Paper—0.2%

    

International Paper Co.
7.300%, 11/15/39

     210,000        252,034   

7.500%, 08/15/21

     100,000        122,738   

7.950%, 06/15/18

     450,000        550,989   
   

 

 

  
      925,761   
   

 

 

  

Healthcare-Services—0.4%

    

Aetna, Inc.
4.500%, 05/15/42

     75,000        69,439   

Humana, Inc.
3.150%, 12/01/22

     640,000        593,939   

7.200%, 06/15/18

     95,000        113,164   

UnitedHealth Group, Inc.
6.500%, 06/15/37

     285,000        341,275   

WellPoint, Inc.
4.650%, 01/15/43

     1,475,000        1,374,828   
   

 

 

  
      2,492,645   
   

 

 

  

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-21

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Insurance—1.5%

    

Allstate Corp. (The)
3.150%, 06/15/23

     655,000      $ 635,957   

American International Group, Inc.
5.600%, 10/18/16

     520,000        579,432   

Berkshire Hathaway Finance Corp.
4.400%, 05/15/42

     425,000        392,194   

CNA Financial Corp.
7.350%, 11/15/19

     455,000        550,918   

Hartford Financial Services Group, Inc.
5.125%, 04/15/22

     295,000        320,994   

6.625%, 03/30/40

     945,000        1,123,276   

ING US, Inc.
5.500%, 07/15/22 (144A)

     480,000        510,599   

Liberty Mutual Group, Inc.
5.000%, 06/01/21 (144A)

     120,000        126,581   

6.500%, 05/01/42 (144A)

     540,000        577,762   

Lincoln National Corp.
4.850%, 06/24/21

     390,000        414,405   

Marsh & McLennan Cos., Inc.
4.800%, 07/15/21

     720,000        776,784   

Pacific LifeCorp
5.125%, 01/30/43 (144A)

     240,000        217,612   

Prudential Financial, Inc.
5.375%, 06/21/20

     1,100,000        1,233,145   

5.800%, 11/16/41

     725,000        780,403   

Swiss Re Treasury US Corp.
2.875%, 12/06/22 (144A)

     260,000        241,592   

4.250%, 12/06/42 (144A)

     415,000        365,145   

Willis Group Holdings plc
5.750%, 03/15/21

     210,000        227,359   

XLIT, Ltd.
5.750%, 10/01/21

     300,000        339,507   
   

 

 

  
      9,413,665   
   

 

 

  

Iron/Steel—0.2%

    

OJSC Novolipetsk Steel via Steel Funding, Ltd.
4.450%, 02/19/18 (144A)

     450,000        418,500   

Reliance Steel & Aluminum Co.
4.500%, 04/15/23

     600,000        569,026   
   

 

 

  
      987,526   
   

 

 

  

Media—1.3%

    

Comcast Corp.
4.500%, 01/15/43

     925,000        883,238   

6.300%, 11/15/17

     300,000        354,465   

COX Communications, Inc.
4.700%, 12/15/42 (144A)

     125,000        110,874   

5.450%, 12/15/14

     176,000        187,795   

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.
2.400%, 03/15/17

     350,000        351,692   

3.550%, 03/15/15

     400,000        415,270   

5.150%, 03/15/42

     385,000        343,448   

Discovery Communications LLC
4.875%, 04/01/43

     635,000        586,997   

Media—(Continued)

    

NBCUniversal Media LLC
4.375%, 04/01/21

     1,990,000      $ 2,146,601   

News America, Inc.
6.650%, 11/15/37

     785,000        903,336   

Pearson Funding Five plc
3.250%, 05/08/23 (144A)

     420,000        387,172   

Time Warner Cable, Inc.
5.850%, 05/01/17

     300,000        330,542   

6.550%, 05/01/37

     235,000        235,338   

Time Warner, Inc.
4.900%, 06/15/42

     300,000        285,436   

UBM plc
5.750%, 11/03/20 (144A)

     225,000        228,091   
   

 

 

  
      7,750,295   
   

 

 

  

Mining—0.6%

  

Freeport-McMoRan Copper & Gold, Inc.
2.375%, 03/15/18 (144A)

     885,000        841,702   

3.550%, 03/01/22

     250,000        227,089   

Rio Tinto Finance USA plc
2.250%, 12/14/18

     650,000        631,646   

3.500%, 03/22/22

     530,000        511,077   

Rio Tinto Finance USA, Ltd.
8.950%, 05/01/14

     300,000        319,701   

9.000%, 05/01/19

     510,000        662,537   

Southern Copper Corp.
6.750%, 04/16/40

     200,000        196,642   

Teck Resources, Ltd.
5.200%, 03/01/42

     475,000        402,886   
   

 

 

  
      3,793,280   
   

 

 

  

Miscellaneous Manufacturing—0.0%

  

General Electric Co.
4.125%, 10/09/42

     215,000        200,056   
   

 

 

  

Office/Business Equipment—0.0%

  

Xerox Corp.
4.250%, 02/15/15

     260,000        271,621   
   

 

 

  

Oil & Gas—1.2%

  

Apache Corp.
4.750%, 04/15/43

     220,000        208,673   

Canadian Natural Resources, Ltd.
5.700%, 05/15/17

     300,000        340,227   

Chevron Corp.
3.191%, 06/24/23

     450,000        447,818   

CNOOC Finance 2013, Ltd.
3.000%, 05/09/23

     485,000        438,128   

Ensco plc
4.700%, 03/15/21

     425,000        451,232   

Marathon Oil Corp.
0.900%, 11/01/15

     400,000        397,780   

2.800%, 11/01/22

     850,000        786,386   

Noble Energy, Inc.
4.150%, 12/15/21

     380,000        392,355   

6.000%, 03/01/41

     350,000        394,312   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-22

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Principal
Amount*		     Value  

Oil & Gas—(Continued)

  

Petrobras Global Finance B.V.
4.375%, 05/20/23

     1,160,000      $ 1,064,117   

Rowan Cos., Inc.
5.400%, 12/01/42

     470,000        426,019   

Shell International Finance B.V.
2.375%, 08/21/22

     700,000        654,127   

Suncor Energy, Inc.
6.100%, 06/01/18

     300,000        349,725   

6.850%, 06/01/39

     520,000        612,518   

Total Capital S.A.
2.300%, 03/15/16

     400,000        413,010   

Valero Energy Corp.
4.500%, 02/01/15

     200,000        210,631   
   

 

 

  
      7,587,058   
   

 

 

  

Oil & Gas Services—0.2%

  

Weatherford International, Ltd.
5.950%, 04/15/42

     975,000        921,541   
   

 

 

  

Pharmaceuticals—0.5%

  

AbbVie, Inc.
2.900%, 11/06/22(144A)

     305,000        285,218   

Actavis, Inc.
3.250%, 10/01/22

     135,000        125,860   

4.625%, 10/01/42

     70,000        62,468   

Express Scripts Holding Co.
6.125%, 11/15/41

     260,000        300,272   

McKesson Corp.
0.950%, 12/04/15

     505,000        503,650   

Pfizer, Inc.
5.350%, 03/15/15

     310,000        333,808   

7.200%, 03/15/39

     965,000        1,293,049   
   

 

 

  
      2,904,325   
   

 

 

  

Pipelines—0.7%

  

Enterprise Products Operating LLC
6.450%, 09/01/40

     1,000,000        1,160,162   

Kinder Morgan Energy Partners L.P.
3.500%, 09/01/23

     575,000        538,864   

3.950%, 09/01/22

     230,000        226,889   

5.625%, 02/15/15

     429,000        460,000   

ONEOK Partners L.P.
3.375%, 10/01/22

     1,510,000        1,388,188   

Plains All American Pipeline L.P. / PAA Finance Corp.
4.300%, 01/31/43

     305,000        266,374   
   

 

 

  
      4,040,477   
   

 

 

  

Real Estate—0.1%

  

American Campus Communities Operating
Partnership L.P.
3.750%, 04/15/23

     425,000        407,836   
   

 

 

  

Real Estate Investment Trusts—0.9%

  

Alexandria Real Estate Equities, Inc.
3.900%, 06/15/23

     465,000        443,945   

Real Estate Investment Trusts—(Continued)

  

Boston Properties L.P.
3.125%, 09/01/23

     215,000      $ 198,595   

3.850%, 02/01/23

     1,240,000        1,217,715   

Digital Realty Trust L.P.
5.875%, 02/01/20

     1,030,000        1,123,883   

ERP Operating L.P.
4.625%, 12/15/21

     490,000        519,034   

Health Care REIT, Inc.
4.125%, 04/01/19

     575,000        601,445   

Piedmont Operating Partnership L.P.
3.400%, 06/01/23(144A)

     480,000        437,106   

Ventas Realty L.P. / Ventas Capital Corp.
4.250%, 03/01/22

     860,000        867,370   
   

 

 

  
      5,409,093   
   

 

 

  

Retail—0.7%

  

AutoZone, Inc.
2.875%, 01/15/23

     880,000        803,584   

Home Depot, Inc. (The)
5.950%, 04/01/41

     510,000        607,588   

Macy’s Retail Holdings, Inc.
2.875%, 02/15/23

     360,000        332,051   

5.125%, 01/15/42

     430,000        414,878   

Nordstrom, Inc.
7.000%, 01/15/38

     220,000        289,833   

Wal-Mart Stores, Inc.
3.625%, 07/08/20

     505,000        533,400   

Yum! Brands, Inc.
6.250%, 03/15/18

     1,235,000        1,428,269   

6.875%, 11/15/37

     105,000        125,567   
   

 

 

  
      4,535,170   
   

 

 

  

Software—0.4%

  

Microsoft Corp.
2.125%, 11/15/22

     525,000        478,095   

Oracle Corp.
2.500%, 10/15/22

     1,770,000        1,632,255   

3.750%, 07/08/14

     400,000        413,106   
   

 

 

  
      2,523,456   
   

 

 

  

Telecommunications—1.1%

  

AT&T, Inc.
2.625%, 12/01/22

     1,960,000        1,794,056   

2.950%, 05/15/16

     400,000        417,999   

6.550%, 02/15/39

     595,000        683,215   

Cellco Partnership / Verizon Wireless Capital LLC
5.550%, 02/01/14

     285,000        292,589   

Cisco Systems, Inc.
4.450%, 01/15/20

     945,000        1,045,929   

5.500%, 01/15/40

     775,000        879,051   

Deutsche Telekom International Finance B.V.
2.250%, 03/06/17(144A)

     400,000        401,928   

Embarq Corp.
7.995%, 06/01/36

     185,000        195,202   

Verizon Communications, Inc.
2.450%, 11/01/22

     820,000        743,492   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-23

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Corporate Bonds & Notes—(Continued)

 

Security Description   Shares/
Principal
Amount*		     Value  

Telecommunications—(Continued)

  

Vodafone Group plc
5.750%, 03/15/16

     300,000      $ 333,232   
   

 

 

  
      6,786,693   
   

 

 

  

Textiles—0.0%

  

Mohawk Industries, Inc.
3.850%, 02/01/23

     240,000        230,325   
   

 

 

  

Transportation—0.3%

  

Burlington Northern Santa Fe LLC
4.400%, 03/15/42

     515,000        472,765   

Canadian Pacific Railway, Ltd.
5.750%, 01/15/42

     395,000        436,100   

CSX Corp.
6.250%, 04/01/15

     315,000        344,144   

Union Pacific Corp.
6.125%, 02/15/20

     390,000        468,381   
   

 

 

  
      1,721,390   
   

 

 

  

Total Corporate Bonds & Notes
(Cost $144,970,052)

       136,673,522   
   

 

 

  
Investment Company Securities—15.9%   

3i Infrastructure plc

     26,222        53,512   

BB Biotech AG

     305        36,468   

Caledonia Investments plc

     1,476        40,688   

iShares Core S&P 500 ETF

     87,426        14,072,963   

iShares Russell 1000 Value Index Fund

     369,189        30,934,346   

PowerShares KBW Bank Portfolio

     179,024        5,646,417   

SPDR Barclays High Yield Bond ETF

     290,642        11,477,453   

Vanguard FTSE Developed Markets ETF

     423,825        15,092,408   

Vanguard Total Stock Market ETF

     234,619        19,402,991   
   

 

 

  

Total Investment Company Securities
(Cost $91,527,375)

       96,757,246   
   

 

 

  
Foreign Government—2.3%   

Sovereign—2.3%

  

Mexican Bonos
6.500%, 06/09/22 (MXN)
(Cost $14,951,329)

     171,560,000        13,916,718   
   

 

 

  
U.S. Treasury & Government Agencies—1.1%   

U.S. Treasury—1.1%

  

U.S. Treasury Bonds
3.125%, 02/15/43

     1,455,000        1,358,152   

U.S. Treasury Notes
0.125%, 12/31/14

     2,865,000        2,859,852   

0.375%, 02/15/16

     835,000        831,282   

0.625%, 09/30/17

     1,450,000        1,417,714   

1.750%, 05/15/23

     550,000        515,109   
   

 

 

  

Total U.S. Treasury & Government Agencies
(Cost $6,998,888)

       6,982,109   
   

 

 

  
Preferred Stocks—0.1%   
Security Description   Shares/
Principal
Amount*		     Value  

Automobiles—0.0%

  

Volkswagen AG

     417      $ 84,187   
   

 

 

  

Electric Utilities—0.0%

  

Cia Energetica do Ceara - Class A

     700        12,580   
   

 

 

  

Health Care Equipment & Supplies—0.0%

  

Draegerwerk AG & Co. KGaA

     159        21,791   
   

 

 

  

Household Products—0.1%

  

Henkel AG & Co. KGaA

     2,890        271,187   
   

 

 

  

Independent Power Producers & Energy Traders—0.0%

  

AES Tiete S.A.

     2,000        18,894   
   

 

 

  

Media—0.0%

  

ProSiebenSat.1 Media AG (a)

     1,276        54,788   
   

 

 

  

Total Preferred Stocks
(Cost $411,734)

       463,427   
   

 

 

  
Rights—0.0%   

Hotels, Restaurants & Leisure—0.0%

  

New Hotel, Expires 12/31/13 (a)

     300        0   
   

 

 

  

Oil & Gas—0.0%

  

Repsol S.A., Expires 07/12/13 (a)

     5,716        3,184   
   

 

 

  

Total Rights
(Cost $3,377)

       3,184   
   

 

 

  
Short-Term Investment—27.3%   

Repurchase Agreement—27.3%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $166,854,139 on 07/01/13, collateralized by $169,780,000 U.S. Government Agency obligations with rates ranging from 1.000% - 2.230%, maturity dates ranging from 03/31/17 - 12/06/22, with a value of $170,194,617.

     166,854,000        166,854,000   
   

 

 

  

Total Short-Term Investment
(Cost $166,854,000)

       166,854,000   
   

 

 

  

Total Investments—97.6%
(Cost $593,499,763) (c)

       595,260,122   

Other assets and liabilities (net)—2.4%

       14,358,370   
   

 

 

  
Net Assets—100.0%     $ 609,618,492   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-24

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

 

(b) Variable or floating rate security. The stated rate represents the rate at June 30, 2013. Maturity date shown for callable securities reflects the earliest possible call date.
(c) As of June 30, 2013, the aggregate cost of investments was $593,499,763. The aggregate unrealized appreciation and depreciation of investments were $18,775,608 and $(17,015,249), respectively, resulting in net unrealized appreciation of $1,760,359.
(144A)— Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of June 30, 2013, the market value of 144A securities was $20,598,199, which is 3.4% of net assets.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.
(ETF)— Exchange-Traded Fund
(GDR)— A Global Depositary Receipt is a negotiable certificate issued by one country’s bank against a certain number of shares of a company’s stock held in its custody but traded on the stock exchange of another country.
(MXN)— Mexican Peso

 

Forward Foreign Currency Exchange Contracts

 

Contracts to Buy

     

Counterparty

    Settlement
Date		      In Exchange
for		      Unrealized
Appreciation/
(Depreciation)		  
CAD 9,920,000       Toronto-Dominion Bank      09/26/13         USD        9,709,118       $ (296,288 ) 
CHF 2,200,000       State Street Bank and Trust      09/26/13         USD        2,388,591         (57,628 ) 
EUR 15,757,000       Barclays Bank plc      09/26/13         USD        21,087,042         (569,187 ) 
EUR 5,745,000       State Street Bank and Trust      09/26/13         USD        7,480,926         (119 ) 
GBP 6,846,300       Royal Bank of Scotland plc      09/26/13         USD        10,720,765         (313,722 ) 

Contracts to Deliver

                                  
AUD 5,562,000       Westpac Banking Corp.      09/26/13         USD        5,235,655       $ 180,542   
CAD 9,920,000       Barclays Bank plc      09/26/13         USD        9,464,655         51,825   
CAD 2,459,000       Barclays Bank plc      09/26/13         USD        2,346,128         12,847   
JPY 58,120,000       State Street Bank and Trust      09/26/13         USD        594,961         8,717   
JPY 984,500,000       Westpac Banking Corp.      09/26/13         USD        10,351,869         421,437   
MXN 57,937,000       State Street Bank and Trust      09/26/13         USD        4,448,473         11,005   

Cross Currency
Contracts to Buy

                                  
EUR 14,899,225       State Street Bank and Trust      09/26/13         CHF        18,370,000       $ (62,632 ) 
NOK   139,460,736       Skandinaviska Enskilda Banken AB      09/26/13         SEK        157,030,000         (482,339 ) 
             

 

 

  

 

Net Unrealized Depreciation

  

    $ (1,095,542 ) 
             

 

 

  

Futures Contracts

 

Futures Contracts—Long

    Expiration
Date		      Number of
Contracts		     Notional
Amount		      Unrealized
Appreciation/
(Depreciation)		  

Canada Government Bond 10 Year Futures

      09/19/13         557        CAD        75,797,697       $ (2,474,400 ) 

Euro Stoxx 50 Index Futures

      09/20/13         405        EUR        10,697,623         (228,730 ) 

FTSE 100 Index Futures

      09/20/13         148        GBP        9,171,365         (79,614 ) 

Nikkei 225 Index Futures

      09/12/13         128        JPY        1,731,133,440         200,711   

Russell 2000 Mini Index Futures

      09/20/13         332        USD        32,642,765         (282,725 ) 

S&P 500 E-Mini Index Futures

      09/20/13         328        USD        26,755,074         (526,554 ) 

S&P TSE 60 Index Futures

      09/19/13         73        CAD        10,220,241         (100,182 ) 

Topix Index Futures

      09/12/13         27        JPY        300,765,960         46,421   

U.S. Treasury Note 2 Year Futures

      09/30/13         32        USD        7,052,052         (12,052 ) 

U.S. Treasury Note 5 Year Futures

      09/30/13         80        USD        9,790,755         (107,005 ) 

Futures Contracts—Short

                                 

ASX SPI 200 Index Futures

      09/19/13         (107 )      AUD        (12,513,647)         (222,627 ) 

Euro Stoxx 50 Index Futures

      09/20/13         (204 )      EUR        (5,162,637)         (178,694 ) 

FTSE 100 Index Futures

      09/20/13         (220 )      GBP        (13,232,463)         (491,019 ) 

MSCI Taiwan Index Futures

      07/30/13         (220 )      USD        (5,913,294)         (235,706 ) 

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-25

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Futures Contracts—(Continued)

 

Futures Contracts—Short

    Expiration
Date		      Number of
Contracts		     Notional
Amount		     Unrealized
Appreciation/
(Depreciation)		  

S&P 500 E-Mini Index Futures

      09/20/13         (1,064 )      USD        (83,956,560 )    $ (1,126,200 ) 

Topix Index Futures

      09/12/13         (5 )      JPY        (55,347,600 )      (12,123 ) 

U.S. Treasury Note 10 Year Futures

      09/19/13         (922 )      USD        (119,810,395 )      3,119,770   

Ultra Long U.S. Treasury Bond Futures

      09/19/13         (2 )      USD        (280,497 )      8,809   

Ultra Long U.S. Treasury Bond Futures

      09/19/13         (8 )      USD        (1,199,987 )      21,487   
           

 

 

  

Net Unrealized Depreciation

  

   $ (2,680,433 ) 
           

 

 

  

Swap Agreements

OTC interest rate swap agreements

 

Pay/Receive
Floating Rate

   Floating
Rate Index		   Fixed
Rate		     Maturity
Date		  

Counterparty

   Notional
Amount		     Market
Value		     Upfront
Premium
Paid/(Received)		     Unrealized
Depreciation		  

Pay

   3-Month USD-LIBOR     2.106 %    07/23/23   JPMorgan Chase Bank N.A.     USD        5,500,000      $ (292,892 )    $ —      $ (292,892 ) 

Pay

   3-Month USD-LIBOR     1.911 %    07/25/23   JPMorgan Chase Bank N.A.     USD        5,000,000        (355,504 )      —        (355,504 ) 

Pay

   3-Month USD-LIBOR     1.911 %    07/25/23   JPMorgan Chase Bank N.A.     USD        40,645,000        (2,890,437 )      —        (2,890,437 ) 

Pay

   3-Month USD-LIBOR     1.933 %    07/25/23   UBS AG     USD        120,405,000        (8,326,596 )      —        (8,326,596 ) 

Pay

   6-Month PLN-WIBOR     3.200 %    06/18/18   JPMorgan Chase Bank N.A.     PLN        18,000,000        (141,463 )      —        (141,463 ) 
             

 

 

    

 

 

    

 

 

  

Totals

  

   $ (12,006,892 )    $ —      $ (12,006,892 ) 
             

 

 

    

 

 

    

 

 

  

Centrally cleared interest rate swap agreement

 

Pay/Receive Floating Rate

    Floating
Rate Index		    Fixed
Rate		     Maturity
Date		      Notional
Amount		      Unrealized
Depreciation		  

Pay

    3-Month USD-LIBOR      2.443 %      07/25/23         USD       5,000,000       $ (116,949 ) 
               

 

 

  

 

(AUD)— Australian Dollar
(CAD)— Canadian Dollar
(CHF)— Swiss Franc
(EUR)— Euro
(GBP)— British Pound
(JPY)— Japanese Yen
(MXN)— Mexican Peso
(NOK)— Norwegian Krone
(PLN)— Polish Zloty
(SEK)— Swedish Krona
(USD)— United States Dollar

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-26

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Consolidated Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 3,654,576       $ 549,382       $ —         $ 4,203,958   

Air Freight & Logistics

      287,962         194,400         —           482,362   

Airlines

      198,633         217,044         —           415,677   

Auto Components

      685,615         2,504,018         —           3,189,633   

Automobiles

      77,350         1,053,802         —           1,131,152   

Beverages

      2,247,438         996,748         —           3,244,186   

Biotechnology

      1,536,864         61,199         —           1,598,063   

Building Products

      —           133,940         —           133,940   

Capital Markets

      2,222,467         969,743         —           3,192,210   

Chemicals

      2,623,788         2,091,807         —           4,715,595   

Commercial Banks

      2,468,449         7,148,085         —           9,616,534   

Commercial Services & Supplies

      285,915         532,864         —           818,779   

Communications Equipment

      1,855,041         238,512         —           2,093,553   

Computers & Peripherals

      3,749,380         104,812         —           3,854,192   

Construction & Engineering

      33,024         1,109,019         —           1,142,043   

Construction Materials

      —           190,991         —           190,991   

Consumer Finance

      1,123,724         —           —           1,123,724   

Containers & Packaging

      283,664         115,040         —           398,704   

Distributors

      202,982         106,574         —           309,556   

Diversified Consumer Services

      310,359         47,726         —           358,085   

Diversified Financial Services

      3,536,531         938,369         —           4,474,900   

Diversified Telecommunication Services

      1,638,127         2,696,120         —           4,334,247   

Electric Utilities

      1,442,431         1,124,798         —           2,567,229   

Electrical Equipment

      995,921         958,684         —           1,954,605   

Electronic Equipment, Instruments & Components

      888,678         763,913         —           1,652,591   

Energy Equipment & Services

      1,226,447         495,937         —           1,722,384   

Food & Staples Retailing

      1,934,990         1,909,048         —           3,844,038   

Food Products

      1,865,310         3,598,207         —           5,463,517   

Gas Utilities

      —           500,412         —           500,412   

Health Care Equipment & Supplies

      3,671,862         467,199         —           4,139,061   

Health Care Providers & Services

      2,050,451         444,845         —           2,495,296   

Health Care Technology

      42,807         —           —           42,807   

Hotels, Restaurants & Leisure

      2,129,905         961,403         —           3,091,308   

Household Durables

      330,868         206,268         —           537,136   

Household Products

      3,163,496         855,003         —           4,018,499   

Independent Power Producers & Energy Traders

      36,365         73,158         —           109,523   

Industrial Conglomerates

      1,659,508         697,554         —           2,357,062   

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-27

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1     Level 2     Level 3      Total  

Insurance

    $ 4,998,476      $ 3,158,266      $ —         $ 8,156,742   

Internet & Catalog Retail

      232,898        54,785        —           287,683   

Internet Software & Services

      1,347,104        155,187        —           1,502,291   

IT Services

      4,044,743        518,275        —           4,563,018   

Leisure Equipment & Products

      644,514        142,320        —           786,834   

Life Sciences Tools & Services

      463,058        23,012        —           486,070   

Machinery

      2,980,136        1,442,611        —           4,422,747   

Marine

      24,096        102,127        —           126,223   

Media

      2,503,924        1,063,768        —           3,567,692   

Metals & Mining

      698,211        2,072,401        —           2,770,612   

Multi-Utilities

      237,968        1,508,264        —           1,746,232   

Multiline Retail

      974,955        291,355        —           1,266,310   

Office Electronics

      267,469        487,610        —           755,079   

Oil, Gas & Consumable Fuels

      8,581,578        4,936,101        —           13,517,679   

Paper & Forest Products

      101,952        143,947        —           245,899   

Personal Products

      335,646        570,867        —           906,513   

Pharmaceuticals

      7,004,994        8,080,441        —           15,085,435   

Professional Services

      333,622        282,983        —           616,605   

Real Estate Investment Trusts

      988,445        339,248        —           1,327,693   

Real Estate Management & Development

      26,452        1,938,718        —           1,965,170   

Road & Rail

      1,989,277        571,904        —           2,561,181   

Semiconductors & Semiconductor Equipment

      2,629,881        434,655        —           3,064,536   

Software

      3,755,813        768,163        —           4,523,976   

Specialty Retail

      3,568,926        769,818        —           4,338,744   

Textiles, Apparel & Luxury Goods

      1,295,272        740,703        —           2,035,975   

Thrifts & Mortgage Finance

      227,522        —          —           227,522   

Tobacco

      2,017,408        1,539,938        —           3,557,346   

Trading Companies & Distributors

      319,152        1,094,176        —           1,413,328   

Transportation Infrastructure

      —          178,135        —           178,135   

Wireless Telecommunication Services

      36,629        2,052,465        —           2,089,094   

Total Common Stocks

      103,091,049        70,518,867        —           173,609,916   

Total Corporate Bonds & Notes*

      —          136,673,522        —           136,673,522   

Investment Company Securities

      96,626,578        130,668        —           96,757,246   

Total Foreign Government*

      —          13,916,718        —           13,916,718   

Total U.S. Treasury & Government Agencies*

      —          6,982,109        —           6,982,109   
Preferred Stocks          

Automobiles

      —          84,187        —           84,187   

Electric Utilities

      12,580        —          —           12,580   

Health Care Equipment & Supplies

      —          21,791        —           21,791   

Household Products

      —          271,187        —           271,187   

Independent Power Producers & Energy Traders

      18,894        —          —           18,894   

Media

      —          54,788        —           54,788   

Total Preferred Stocks

      31,474        431,953        —           463,427   

Total Rights*

      3,184        —          —           3,184   

Total Short-Term Investment*

      —          166,854,000        —           166,854,000   

Total Investments

    $ 199,752,285      $ 395,507,837      $ —         $ 595,260,122   
                                   
Forward Contracts          

Forward Foreign Currency Contracts (Unrealized Appreciation)

    $ —        $ 686,373      $ —         $ 686,373   

Forward Foreign Currency Contracts (Unrealized Depreciation)

      —          (1,781,915 )      —           (1,781,915 ) 

Total Forward Contracts

    $ —        $ (1,095,542 )    $ —         $ (1,095,542 ) 
Futures Contracts          

Futures Contracts (Unrealized Appreciation)

    $ 3,397,198      $ —        $ —         $ 3,397,198   

Futures Contracts (Unrealized Depreciation)

      (6,077,631 )      —          —           (6,077,631 ) 

Total Futures Contracts

    $ (2,680,433 )    $ —        $ —         $ (2,680,433 ) 

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-28

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2     Level 3      Total  
Centrally Cleared Swap Contracts           

Centrally Cleared Swap Contracts (Unrealized Depreciation)

    $ —         $ (116,949 )    $ —         $ (116,949 ) 
OTC Swap Contracts           

OTC Swap Contracts at Value (Liabilities)

    $ —         $ (12,006,892 )    $ —         $ (12,006,892 ) 

 

* See Consolidated Schedule of Investments for additional detailed categorizations.

Transfers from Level 2 to Level 1 in the amount of $63,017 were due to increased trading activity.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-29

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

 

Consolidated§ Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 428,406,122   

Repurchase Agreement

      166,854,000   

Cash denominated in foreign currencies (b)

      742,399   

Cash collateral (c)

      21,802,965   

Unrealized appreciation on forward foreign currency exchange contracts

      686,373   

Receivable for:

   

Investments sold

      2,978,230   

Fund shares sold

      2,167,416   

Dividends

      431,824   

Interest

      1,917,652   

Variation margin on futures contracts

      700,797   

Swap interest

      603,439   

Other assets

      843   
  

 

 

  

Total Assets

      627,292,060   

Liabilities

   

Due to custodian

      428,869   

Payables for:

   

Investments purchased

      2,630,506   

Fund shares redeemed

      2,915   

Foreign taxes

      1,074   

Swaps at market value

      12,006,892   

Unrealized depreciation on forward foreign currency exchange contracts

      1,781,915   

Variation margin payable on swap contracts

      2,789   

Variation margin on futures contracts

      83,978   

Swap interest

      90,378   

Accrued expenses:

   

Management fees

      316,942   

Distribution and service fees

      121,558   

Deferred trustees’ fees

      12,462   

Other expenses

      193,290   
  

 

 

  

Total Liabilities

      17,673,568   
  

 

 

  

Net Assets

    $ 609,618,492   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 609,118,538   

Undistributed net investment income

      3,178,808   

Accumulated net realized gain

      11,459,140   

Unrealized depreciation on investments, futures contracts, swap contracts and foreign currency transactions

      (14,137,994 ) 
  

 

 

  

Net Assets

    $ 609,618,492   
  

 

 

  

Net Assets

   

Class B

    $ 609,618,492   

Capital Shares Outstanding*

   

Class B

      57,376,199   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class B

    $ 10.62   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding repurchase agreement, was $426,645,763.
(b) Identified cost of cash denominated in foreign currencies was $743,446.
(c) Includes collateral of $12,980,000 for swaps, $269,184 for centrally cleared swaps and $8,553,781 for futures.

Consolidated§ Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends

    $ 3,755,213   

Interest (a)

      2,045,124   
  

 

 

  

Total investment income

      5,800,337   

Expenses

   

Management fees

      1,604,341   

Administration fees

      9,349   

Deferred expense reimbursement

      97,343   

Custodian and accounting fees

      204,520   

Distribution and service fees—Class B

      613,136   

Audit and tax services

      19,191   

Legal

      8,735   

Trustees’ fees and expenses

      14,118   

Shareholder reporting

      10,089   

Insurance

      16   

Organizational expense

      904   

Miscellaneous

      3,099   
  

 

 

  

Total expenses

      2,584,841   
  

 

 

  

Net Investment Income

      3,215,496   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      1,402,988   

Futures contracts

      8,726,251   

Swap contracts

      1,377,659   

Foreign currency transactions

      878,682   
  

 

 

  

Net realized gain

      12,385,580   
  

 

 

  
Net change in unrealized depreciation on:   

Investments (b)

      (543,469 ) 

Futures contracts

      (3,893,440 ) 

Swap contracts

      (12,245,329 ) 

Foreign currency transactions

      (1,069,555 ) 
  

 

 

  

Net change in unrealized depreciation

      (17,751,793 ) 
  

 

 

  

Net realized and unrealized loss

      (5,366,213 ) 
  

 

 

  

Net Decrease in Net Assets From Operations

    $ (2,150,717 ) 
  

 

 

  

 

(a) Net of foreign withholding taxes of $150,669.
(b) Net of foreign capital gains tax of $2,017.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-30

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Statement of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Period Ended
December 31,
2012(a)		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 3,215,496      $ 2,020,057   

Net realized gain

      12,385,580        6,918,189   

Net change in unrealized appreciation (depreciation)

      (17,751,793 )      3,613,799   
  

 

 

    

 

 

  

Increase (decrease) in net assets from operations

      (2,150,717 )      12,552,045   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class B

      (47,807 )      (2,404,193 ) 

Net realized capital gains

     

Class B

      (2,055,699 )      (5,415,632 ) 
  

 

 

    

 

 

  

Total distributions

      (2,103,506 )      (7,819,825 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      278,600,509        330,539,986   
  

 

 

    

 

 

  

Total Increase in Net Assets

      274,346,286        335,272,206   

Net Assets

     

Beginning of period

      335,272,206        0   
  

 

 

    

 

 

  

End of period

    $ 609,618,492      $ 335,272,206   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 3,178,808      $ 11,119   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Period Ended
December 31, 2012(a)		  
     Shares     Value     Shares     Value  

Class B

         

Sales

      26,047,193      $ 283,481,132        31,795,345      $ 330,545,445   

Reinvestments

      192,806        2,103,506        741,919        7,819,825   

Redemptions

      (636,772 )      (6,984,129 )      (764,292 )      (7,825,284 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      25,603,227      $ 278,600,509        31,772,972      $ 330,539,986   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 278,600,509        $ 330,539,986   
    

 

 

      

 

 

  

 

(a) Commencement of operations was April 23, 2012.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-31

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Consolidated§ Financial Highlights

 

Selected per share data             
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Period Ended
December 31,
2012(a)		  

Net Asset Value, Beginning of Period

    $ 10.55      $ 10.00   
  

 

 

    

 

 

  

Income (Loss) from Investment Operations

     

Net investment income (b)

      0.07        0.14   

Net realized and unrealized gain on investments

      0.04        0.67   
  

 

 

    

 

 

  

Total from investment operations

      0.11        0.81   
  

 

 

    

 

 

  

Less Distributions

     

Distributions from net investment income

      (0.00 ) (c)      (0.08 ) 

Distributions from net realized capital gains

      (0.04 )      (0.18 ) 
  

 

 

    

 

 

  

Total distributions

      (0.04 )      (0.26 ) 
  

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.62      $ 10.55   
  

 

 

    

 

 

  

Total Return (%) (d)

      1.07  (e)      8.06  (e) 

Ratios/Supplemental Data

     

Gross ratio of expenses to average net assets (%)

      1.05  (f)      1.24  (f) 

Net ratio of expenses to average net assets (%) (g)

      1.05  (f)      1.10  (f) 

Ratio of net investment income to average net assets (%)

      1.31  (f)      1.96  (f) 

Portfolio turnover rate (%)

      39  (e)      132  (e) 

Net assets, end of period (in millions)

    $ 609.6      $ 335.3   

 

(a) Commencement of operations was April 23, 2012.
(b) Per share amounts based on average shares outstanding during the period.
(c) Distributions from net investment income were less than $0.01.
(d) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(e) Periods less than one year are not computed on an annualized basis.
(f) Computed on an annualized basis.
(g) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

§See Note 2 of the notes to consolidated financial statements.

 

See accompanying notes to consolidated financial statements.

 

MIST-32

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Schroders Global Multi-Asset Portfolio (the “Portfolio”) (commenced operations on April 23, 2012), which is diversified. The Portfolio’s shares first became available to investors through certain separate accounts on April 30, 2012. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered one class of shares: Class B Shares. Class B Shares are currently offered by the Portfolio.

2. Consolidation of Subsidiary—Schroders Global Multi-Asset Portfolio, Ltd.

The Portfolio may invest up to 10% of its total assets in the Schroders Global Multi-Asset Portfolio, Ltd., which is a wholly-owned and controlled subsidiary of the Portfolio that is organized under the laws of the Cayman Islands as an exempted company (the “Subsidiary”). The Portfolio invests in the Subsidiary in order to gain exposure to the commodities market within the limitations of the federal tax laws, rules and regulations that apply to regulated investment companies. The Portfolio has obtained an opinion from legal counsel to the effect that the annual net profit, if any, realized by the Subsidiary and imputed for income tax purposes to the Portfolio should constitute “qualifying income” for purposes of the Portfolio remaining qualified as a regulated investment company for U.S federal income tax purposes. It is possible that the Internal Revenue Service or a court could disagree with the legal opinion obtained by the Portfolio.

The Subsidiary invests primarily in commodity derivatives, exchange traded notes and total return swaps. Unlike the Portfolio, the Subsidiary may invest without limitation in commodity-linked derivatives; however, the Subsidiary complies with the same 1940 Act asset coverage requirements with respect to its investments in commodity-linked derivatives that are applicable to the Portfolio’s transactions in derivatives. In addition, to the extent applicable to the investment activities of the Subsidiary, the Subsidiary is subject to the same fundamental investment restrictions and follows the same compliance policies and procedures as the Portfolio.

By investing in the Subsidiary, the Portfolio is indirectly exposed to the risks associated with the Subsidiary’s investments. The commodity-related instruments held by the Subsidiary are subject to commodities risk. There can be no assurance that the investment objective of the Subsidiary will be achieved. The Subsidiary is not registered under the 1940 Act and is not subject to all the investor protections of the 1940 Act. The Portfolio, however, wholly owns and controls the Subsidiary, and the Portfolio and Subsidiary are both managed by Schroder Investment Management North America, Inc. (the “Subadviser”), making it unlikely that the Subsidiary will take action contrary to the interests of the Portfolio and its shareholders. Changes in the laws of the United States and/or Cayman Islands could result in the inability of the Portfolio and/or the Subsidiary to operate as described in the Portfolio’s prospectus and could adversely affect the Portfolio. For example, the Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Portfolio shareholders would likely suffer decreased investment returns.

The consolidated Schedule of Investments, Statement of Assets and Liabilities, Statement of Operations, Statement of Changes in Net Assets and the Financial Highlights of the Portfolio include the account of the Subsidiary. All inter-company accounts and transactions have been eliminated in consolidation for the Portfolio. The Subsidiary has a fiscal year end of December 31st for financial statement consolidation purposes and a nonconforming tax year end of November 30th.

A summary of the Portfolio’s investment in the Subsidiary is as follows:

 

      Inception Date
of Subsidiary		      Subsidiary
Net Assets at
June 30, 2013		      % of
Total Assets at
June 30, 2013		  

Schroders Global Multi-Asset Portfolio, Ltd.

      4/23/2012       $ 0         0.0 % 

3. Significant Accounting Policies

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these consolidated financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the consolidated financial statements were issued.

 

MIST-33

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its consolidated financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

Swap contracts are marked-to-market daily based on quotations and prices supplied by market makers, broker-dealers and pricing services. Such quotations and prices are derived utilizing significant observable data, including the underlying reference securities or indices. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and

 

MIST-34

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns remain subject to examination by the Internal Revenue Service for three fiscal years after the returns are filed.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to foreign currency transactions, premium amortization adjustments, return of capital adjustments, passive foreign investment companies, foreign currency tax expense reclass and distribution and service fees. These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $166,854,000, which is included on the Consolidated Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

 

MIST-35

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

When-Issued and Delayed-Delivery Securities - The Portfolio may purchase securities on a when-issued or delayed-delivery basis. Settlement of such transactions normally occurs within a month or more after the purchase commitment is made. The Portfolio may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolio may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement.

Upon making a commitment to purchase a security on a when-issued or delayed-delivery basis, the Portfolio will hold liquid assets in a segregated account with the Portfolio’s custodian, or set aside liquid assets in the Portfolio’s records, worth at least the equivalent of the amount due. The liquid assets will be monitored on a daily basis and adjusted as necessary to maintain the necessary value.

4. Investments in Derivative Instruments

Forward Foreign Currency Exchange Contracts - The Portfolio may enter into forward foreign currency exchange contracts to obtain investment exposure, enhance return or hedge or protect its portfolio holdings against the risk of future movements in certain foreign currency exchange rates. When entering into these contracts, the Portfolio agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed upon future date. These contracts are valued daily and the Portfolio’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward foreign exchange rates at the value date, is included in the Consolidated Statement of Assets and Liabilities. When a contract is closed, the Portfolio recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

Realized and unrealized gains and losses on forward foreign currency exchange contracts are included in the Consolidated Statement of Operations. These contracts involve market and/or credit risk in excess of the amount recognized in the Consolidated Statement of Assets and Liabilities.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities of the Portfolio, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency exchange contracts may limit the risk of loss due to a decline in the value of the currency holdings, they also limit any potential gain that might result should the value of the currency increase. In addition, the Portfolio could be exposed to losses if the counterparties to the contracts are unable to meet the terms of the contracts. The Portfolio’s maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened.

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Consolidated Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Consolidated Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Consolidated Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be

 

MIST-36

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

Commodity Futures Contracts and Swaps on Commodity Futures Contracts - The Subsidiary will invest primarily in commodity futures and swaps on commodity futures. Exposure to the commodities markets may subject the Portfolio to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or sectors affecting a particular industry or commodity.

Swap Agreements - The Portfolio may enter into swap agreements in which the Portfolio and a counterparty agree to either make periodic net payments on a specified notional amount or net payment upon termination. Swap agreements are privately negotiated in the over-the-counter market (“OTC swaps”) or may be executed in a multilateral or other trade facility platform, such as a registered commodities exchange (“centrally cleared swaps”). The Portfolio may enter into swap agreements for the purposes of managing exposure to interest rate, credit or market risk, or for other purposes. In connection with these agreements, securities or cash (“restricted cash”) may be paid or received, as applicable, by the Portfolio as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Securities posted by the Portfolio as collateral for swap contracts are identified in the Consolidated Schedule of Investments and restricted cash, if any, is reflected on the Consolidated Statement of Assets and Liabilities.

Swap agreements are marked-to-market daily. The fair value of an OTC swap is reflected on the Consolidated Statement of Assets and Liabilities. The changes in value, if any, are reflected as a component of net change in unrealized appreciation (depreciation) on the Consolidated Statement of Operations. Daily changes in valuation of centrally cleared swaps, if any, are recorded as a receivable or payable for variation margin on the Consolidated Statement of Assets and Liabilities and as a component of unrealized appreciation/depreciation on the Consolidated Statement of Operations. Upfront payments paid or received on swaps upon entering into the swap agreement are to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (such as credit spreads, currency exchange rates, interest rates, and other relevant factors). Upon termination or maturity of the swap, upfront premiums are recorded as realized gains or losses on the Consolidated Statement of Operations. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss on the Consolidated Statement of Operations. Net periodic payments received or paid by the Portfolio are included as part of realized gains or losses on the Consolidated Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform, or that there may be unfavorable changes in market conditions or interest rates. In addition, entering into swap agreements involves documentation risk resulting from the possibility that the parties to a swap agreement may disagree as to the meaning of contractual terms in the agreement. The Portfolio may enter into swap transactions with counterparties in accordance with guidelines established by the Board. These guidelines provide for a minimum credit rating for each counterparty and various credit enhancement techniques (for example, collateralization of amounts due from counterparties) to limit exposure to counterparties that have lower credit ratings. A Portfolio’s maximum risk of loss from counterparty credit risk is the discounted value of the net cash flows to be received from the counterparty over the contract’s remaining life, to the extent that amount is positive, or the fair value of the contract. The risk may be mitigated by having a master netting arrangement between the Portfolio and the counterparty and by the posting of collateral by the counterparty to cover the Portfolio’s exposure to the counterparty. Counterparty risk related to centrally cleared swaps is mitigated due to the protection against defaults provided by the exchange on which these contracts trade.

Currency Swaps: A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them. Such swaps may involve initial and final exchanges that correspond to the agreed upon notional amount. Currency swaps usually involve the delivery of the entire principal value of one designated currency in exchange for the other designated currency. Therefore, the entire principal value of a currency swap is subject to the risk that the other party to the swap will default on its contractual delivery obligations. If there is a default by the counterparty, the Portfolio may have contractual remedies pursuant to the agreements related to the transaction.

Interest Rate Swaps: The Portfolio may enter into interest rate swaps to manage its exposure to interest rates or to protect against currency fluctuations, to adjust the interest rate sensitivity (duration), to preserve a return or spread on a particular investment, or otherwise as a substitute for a direct investment in debt securities. The Portfolio is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Portfolio may enter into interest rate swap agreements. Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating rate, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. Other forms of interest rate swap agreements may include interest rate caps, under

 

MIST-37

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. The Portfolio’s maximum risk of loss from counterparty credit risk, as opposed to investment and other types of risk, in respect of interest rate swaps is typically the discounted net value of the cash flows to be received from the counterparty over the contracts remaining life, to the extent that amount is positive.

Equity Swaps: Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying security and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. If the other party to an equity swap defaults, a Portfolio’s risk of loss consists of the net amount of payments that such Portfolio is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile.

Total Return Swaps: The Portfolio may enter into total return swap agreements to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include a specified security, basket of securities or securities indices during the specific period, in return for periodic payments based on a fixed or floating rate or the total return from other underlying assets. When a Portfolio pays interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may be required to pay the change in value to the counterparty in addition to the interest payment; conversely, when a Portfolio receives interest in exchange for the total return of an underlying asset and the value of the underlying asset decreases, the Portfolio may receive the change in value in addition to the interest payment. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Portfolio will receive a payment from or make a payment to the counterparty. Total return swaps can also be structured without an interest payment, so that one party pays the other party if the value of the underlying asset increases and receives payment from the other party if the value of the underlying asset decreases.

At June 30, 2013, the Portfolio had the following derivatives, categorized by risk exposure:

 

    

Asset Derivatives

     

Liability Derivatives

  

Risk Exposure

   

Consolidated Statement of Assets &
Liabilities Location

    Fair Value     

Consolidated Statement of Assets &
Liabilities Location

    Fair Value  
Interest Rate          Swaps at market value (b)    $ 12,006,892   
         Unrealized depreciation on centrally cleared swaps* (a)      116,949   
   Unrealized appreciation on futures contracts** (a)    $ 3,150,066       Unrealized depreciation on futures contracts** (a)      2,593,457   
Equity    Unrealized appreciation on futures contracts** (a)      247,132       Unrealized depreciation on futures contracts** (a)      3,484,174   
Foreign Exchange    Unrealized appreciation on forward foreign currency exchange contracts      686,373       Unrealized depreciation on forward foreign currency exchange contracts      1,781,915   
     

 

 

        

 

 

  
Total       $ 4,083,571          $ 19,983,387   
     

 

 

        

 

 

  

 

  * Represents the unrealized appreciation/depreciation of centrally cleared swaps as reported in the Consolidated Schedule of Investments. Only the variation margin is reported within the Consolidated Statement of Assets and Liabilities.
  ** Includes cumulative appreciation/depreciation of futures contracts as reported in the Consolidated Schedule of Investments. Only the current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities.

The following table presents the Portfolio’s derivative assets by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral received by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Assets
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Received(c)		      Net Amount  

Barclays Bank plc

    $ 64,672       $ (64,672 )    $ —       $ —   

State Street Bank and Trust

      19,722         (19,722 )      —         —   

Westpac Banking Corp.

      601,979         —        —         601,979   
  

 

 

     

 

 

    

 

 

     

 

 

  
   $ 686,373       $ (84,394 )    $ —       $ 601,979   
  

 

 

     

 

 

    

 

 

     

 

 

  

 

MIST-38

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The following table presents the Portfolio’s derivative liabilities by counterparty net of amounts available for offset under a master netting agreement, or similar agreement, and net of the related collateral pledged by the Portfolio as of June 30, 2013.

 

Counterparty

    Gross Liabilities
in the Statement of
Assets and Liabilities		      Financial
Instruments		     Collateral
Pledged(c)		     Net Amount  

Barclays Bank plc

    $ 569,187       $ (64,672 )    $ —      $ 504,515   

JPMorgan Chase Bank N.A.

      3,680,296         —        (3,680,296 )      —   

Royal Bank of Scotland plc

      313,722         —        —        313,722   

Skandinaviska Enskilda Banken AB

      482,339         —        —        482,339   

State Street Bank and Trust

      120,379         (19,722 )      —        100,657   

Toronto-Dominion Bank

      296,288         —        —        296,288   

UBS AG

      8,326,596         —        (8,326,596 )      —   
  

 

 

     

 

 

    

 

 

    

 

 

  
   $ 13,788,807       $ (84,394 )    $ (12,006,892 )    $ 1,697,521   
  

 

 

     

 

 

    

 

 

    

 

 

  

Transactions in derivative instruments during the six months ended June 30, 2013, were as follows:

 

Consolidated Statement of Operations Location—Net Realized Gain (Loss)

    Interest Rate     Equity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ 1,208,846      $ 1,208,846   

Futures contracts

      (653,867 )      9,380,118        —        8,726,251   

Swap contracts

      1,377,659        —        —        1,377,659   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 723,792      $ 9,380,118      $ 1,208,846      $ 11,312,756   
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated Statement of Operations Location—Net Change in Unrealized
Appreciation (Depreciation)

    Interest Rate     Equity     Foreign
Exchange		     Total  

Forward foreign currency transactions

    $ —      $ —      $ (1,065,697 )    $ (1,065,697 ) 

Futures contracts

      516,412        (4,409,852 )      —        (3,893,440 ) 

Swap contracts

      (12,245,329 )      —        —        (12,245,329 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ (11,728,917 )    $ (4,409,852 )    $ (1,065,697 )    $ (17,204,466 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

For the six months ended June 30, 2013, the average amount or number per contract outstanding for each derivative type was as follows:

 

Derivative Description

    Average
Notional Par or
Face Amount(d)		  

Forward Foreign currency transactions

    $ 120,833,507   

Futures contracts long

      51,136,704   

Futures contracts short

      61,449,303   

Swap contracts

      152,719,547   

 

  (a) Financial instrument not subject to a master netting agreement.
  (b) Excludes swap interest receivable of $603,439 and swap interest payable of $90,378.
  (c) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (d) Averages are based on activity levels during 2013.

5. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the consolidated financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically

 

MIST-39

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Collateral requirements may differ by type of derivative or investment, as applicable. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives (e.g., futures contracts and exchange traded options) while collateral terms are contract specific for over-the-counter traded derivatives (e.g., forward foreign currency exchange contracts, swap agreements and over-the-counter options). For derivatives traded under an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar master agreement, the collateral requirements are netted across all transactions traded under such agreement and one amount is posted from one party to the other to collateralize such obligations. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a certain deterioration in the credit quality of the other party. The ISDA Master Agreement gives the Portfolio the right, upon an event of default by the applicable counterparty or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the Portfolio’s credit risk to such counterparty equal to any amounts payable by the Portfolio under the applicable transactions, if any. However, absent an event of default by the counterparty or a termination of the agreement, the ISDA Master Agreement does not result in an offset of reported amounts of assets and liabilities in the Consolidated Statement of Assets and Liabilities across transactions between the Portfolio and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction. Cash collateral that has been pledged to cover obligations of the Portfolio under derivative contracts, if any, will be reported separately in the Consolidated Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Consolidated Schedule of Investments.

Repurchase and reverse repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA) which provide the rights to set-off. Each repurchase and reverse repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty.

Foreign Investment Risk: The investments by the Portfolio in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies and pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Portfolio. Foreign investments may also subject the Portfolio to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which could affect the market and/or credit risk of the investments. In addition to the risks described above, risks may arise from forward foreign currency contracts with respect to the potential inability of counterparties to meet the terms of their contracts.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

6. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$61,838,986    $ 263,189,038       $ 70,907,567       $ 73,542,872   

7. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Schroder Investment Management North America Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

 

MIST-40

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$1,604,341      0.680 %    First $100 million
     0.660 %    $100 million to $250 million
     0.640 %    $250 million to $750 million
     0.620 %    $750 million to $1.5 billion
     0.600 %    Over $1.5 billion

Expense Limitation Agreement - The Adviser has entered into an expense limitation agreement with the Trust (“Expense Limitation Agreement”) in the interest of limiting expenses of the Portfolio. The Expense Limitation Agreement shall continue in effect with respect to the Portfolio until April 27, 2014. Pursuant to that Expense Limitation Agreement, the Adviser has agreed to waive or limit its fees and to assume other expenses so that the total annual operating expenses of the Portfolio other than interest, taxes, brokerage commissions, other expenditures which are capitalized or expensed in accordance with GAAP, other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business and acquired fund fees and expenses but including amounts payable pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act, are limited to the following expense ratio as a percentage of the Portfolio’s average daily net assets:

 

Maximum Expense Ratio under current
Expense Limitation Agreement

    Amounts Deferred in 2012

Subject to repayment until December 31,		  
  
  

Class B

   

2017

  
1.10%    $ 97,343   

Amounts waived for the six months ended June 30, 2013 are shown as expenses reimbursed by the Adviser in the Consolidated Statement of Operations.

If, in any year in which the Management Agreement is still in effect, the estimated aggregate operating expenses of the Portfolio for the fiscal year are less than the Maximum Expense Ratio for that year, subject to approval by the Trust’s Board, the Adviser shall be entitled to reimbursement by the Portfolio to the extent that the charge does not cause the expenses in such subsequent year to exceed the Maximum Expense Ratio as stated above. The Portfolio is not obligated to repay any expense paid by the Adviser more than five years after the end of the fiscal year in which such expense was incurred. As of June 30, 2013, there were no expenses deferred in 2013 and $97,343 was repaid to the Adviser in accordance with the Expense Limitation Agreement. The amount of expenses deferred in 2012, which were recovered during the period ended June 30, 2013 was $97,343. Amounts recouped for the period ended June 30, 2013 are shown as Deferred expense reimbursement in the Consolidated Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Consolidated Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in

 

MIST-41

Met Investors Series Trust

Schroders Global Multi-Asset Portfolio

Notes to Consolidated Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Consolidated Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Consolidated Statement of Assets and Liabilities.

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

9. Income Tax Information

The tax character of distributions paid for the period ended December 31, 2012 were as follows:

 

Ordinary Income

    Long-Term Capital Gain      Total  
$7,646,845    $ 172,980       $ 7,819,825   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain
      Net
Unrealized
Appreciation		      Total  
$1,290,436    $ 724,868       $ 2,745,959       $ 4,761,263   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-42

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Managed by SSgA Funds Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the SSgA Growth and Income ETF Portfolio returned 2.84%, 2.69%, and 2.78%, respectively. The Portfolio’s benchmark, the MSCI All Country World Index1, returned 6.05%.

MARKET ENVIRONMENT / CONDITIONS

Relieved by the orderly mitigation of a fiscal retrenchment in the United States (U.S.), global equities surged as trading opened in 2013. The turn of the calendar brought a renewal of risk appetites and resumption of investment flows, fueled by fresh optimism that economic activity might steadily reaccelerate through the course of the upcoming year. Continued weakness in the Japanese yen signaled the approach of new dynamism at the Bank of Japan, while the euro rallied progressively to one-year highs on further diminution of sovereign financial strains. Growth prospects looked buoyant enough to inspire visions of a great rotation out of bonds and into equities, but this promising playbook for 2013 soon started to lose adherents. Even in January, the travails of the yen began to infect emerging market currencies, and by early February, equity traders could no longer neglect the burden of an appreciated euro. Graft allegations in Spain and unsettled elections in Italy made it even easier for European equity shares to surrender momentum, while an accommodative Bank of England and a credit downgrade of the United Kingdom (UK) weighed heavily on the British pound. A revived U.S. dollar and worries over tighter property rules in China took their toll on commodity prices, but sentiment stabilized in early March with the affirmation of an official 7.5% objective for the Chinese annual economic growth rate in 2013. As major central banks maintained their commitment to accommodative monetary policy and the United States reported strong February jobs data on March 8, equities looked like they might finish the quarter with renewed gains, but banking turmoil in Cyprus arrived to disorient investors further. As a condition of sufficient liquidity assistance from European financial authorities, Cyprus had little choice but to impose losses on uninsured depositors. This outcome likely reinforced an already heightened sense of caution among eurozone lenders, and most government bond yields spent the last two weeks of March giving back the modest upside that they had staked out since the start of the year. Fresh uncertainty in Europe lent additional cachet to U.S. assets, which proceeded to finish the first quarter on an upswing. Across the global stage, the opening months of 2013 produced ample sources of return for investors, but less aggressive equity positions were among the better performers.

The constructive momentum from the first quarter carried into April, as the formal announcement of aggressive policy measures in Japan delivered an additional boost to the economic outlook and falling bond yields on the eurozone periphery relieved concerns about regional financial contagion. With weak U.S. employment figures reassuring investors that any retracement of monetary accommodation remained a distant prospect, both bonds and stocks appreciated nicely. Commodities faltered after Chinese economic growth data failed to meet the expectations of investors, and the arrival of much firmer U.S. payroll data in early May achieved little more than stabilization for metals prices. But the better jobs numbers jolted bond yields from their slumber, with Japanese government debt selling off abruptly when the yen sank to four-year lows against the U.S. dollar. The watershed event of the second quarter arrived on May 22, when U.S. Federal Reserve (“Fed”) Chairman Ben Bernanke suggested during congressional testimony that the asset purchases by the Fed might slow if economic conditions continued to improve. The apparent softening in the official commitment to unmitigated easing sparked a swift retreat in global equities even as it exacerbated the downturn in bonds, and the attendant surge in worldwide volatility took a steep toll on investment positions that rely most heavily on easy money. Emerging markets assets tumbled and the Japanese yen saw its sharpest rally of the year. Income-oriented strategies suffered swift reversals as higher government yields reduced the relative appeal of the riskier alternatives. Equities began to regain their composure in early June as the World Bank pared its outlook for global growth and declining inflation expectations led investors to expect that tapering of asset purchases would remain a distant prospect. But the June 19 statement from the Federal Open Market Committee (FOMC) brought renewed angst. With upbeat economic language and no assurance that tapering would be deferred, the FOMC wording provoked yet another jump in bond yields and further volatility in equities. Gold prices plummeted to their lowest level since 2010. Hurt by a daunting spike in Chinese interbank rates and mounting financial pressures on Brazilian companies controlled by billionaire Eike Batista, broad averages of emerging market stocks sank to fresh 12-month lows. Although rebalance activity at the end of June helped global markets finish the second quarter on a steadier note, stocks and bonds were broadly weaker for the month. Over the full second quarter, equities in the U.S. and Japan were among the few winners, while bonds and commodities suffered widespread declines.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio experienced a fairly wide range of investment returns across global capital markets during the first six months of the year. Poor performance in commodities and fixed income assets helped to put downward pressure on absolute returns, offsetting the positive contribution from equities from developed countries. Tactical decisions and Exchange-Traded Fund (ETF) underperformance (particularly in the international space) resulted in the Portfolio lagging its strategic blended benchmark. The Portfolio’s performance was impacted most negatively by an out of benchmark holding in gold. Historically, the gold position had offered diversification benefits as well as positive returns for the Portfolio. However, the first half of 2013 saw a decided change in the market’s appetite for gold and gold prices plunged as a result. While the Portfolio’s position in gold was trimmed somewhat in February, the remaining 2% position was still subject to the more than 20% price decrease in the second quarter. In addition, ETFs as a whole were selling at a discount, which had an adverse impact on relative performance for the period. The market prices of the underlying ETFs held by the Portfolio relative to the net asset value of the securities held by the ETFs had a negative impact of approximately 0.50%.

 

MIST-1

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Managed by SSgA Funds Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

The largest contributor to the Portfolio’s performance during the six month period ending June 30, 2013 was the relative underweight of investment grade fixed income and inflation protected securities against the Portfolio’s strategic targets. Both asset classes experienced negative returns for the period, as the Vanguard Total Bond Market ETF (BND) and the iShares TIPS Bond ETF (TIP) were down -2.64% and -7.42%, respectively. In equities, the Portfolio benefited from an overweight to dividend paying stocks, which were rewarded handsomely in the first half. The SPDR S&P Dividend ETF (SDY) returned 15.59% vs. 13.74% for the SPDR S&P 500 ETF (SPY).

The Portfolio ended June at its most defensive position thus far in 2013. The Portfolio’s overall equity exposure was reduced to be in line with that of the benchmark. Within equities, an overweight in U.S. dividend stocks relative to core S&P 500 was maintained. An overweight to Real Estate Investment Trusts (REITs) as well as to developed Pacific equities was held, funded by an underweight to Emerging Market equities. In fixed income, underweights in government and inflation protected bonds were offset by overweight positions in investment grade and high yield securities. Lastly, a modest overweight to gold continued to be held by the Portfolio.

Dan Farley

Chris Goolgasian

Tim Furbush

Portfolio Managers

SSgA Funds Management, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE MSCI ACWI (ALL COUNTRY WORLD INDEX)

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
SSgA Growth and Income ETF Portfolio                      

Class A

        2.84           9.84           6.18           4.88   

Class B

        2.69           9.63           5.91           5.13   

Class E

        2.78           9.71           6.01           4.73   
MSCI ACWI (All Country World Index)        6.05           16.57           2.30           4.41   

1 The MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 24 developed and 21 emerging market indices. The index returns shown above were calculated with net dividends: they reflect the reinvestment of dividends after the deduction of the maximum possible withholding taxes.

2 Inception of Class B shares is 10/3/2005. Inception of Class A and Class E shares is 5/1/2006. Index returns are based on an inception date of 10/3/2005.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
SPDR S&P 500 ETF Trust      27.0   
Vanguard Total Bond Market ETF      18.0   
iShares MSCI EAFE Index Fund      11.4   
SPDR Barclays High Yield Bond ETF      11.1   
SPDR S&P Dividend ETF      5.2   
iShares Barclays U.S. Treasury Inflation Protected Securities Bond Fund      4.0   
iShares Core S&P Small-Cap ETF      3.1   
iShares iBoxx $ Investment Grade Corporate Bond Fund      3.0   
Vanguard FTSE Emerging Markets ETF      2.9   
Vanguard REIT ETF      2.5   

 

MIST-3

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

SSgA Growth and Income ETF Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.31 %     $ 1,000.00         $ 1,028.40         $ 1.56   
   Hypothetical*      0.31 %     $ 1,000.00         $ 1,023.26         $ 1.56   

Class B(a)

    Actual      0.56 %     $ 1,000.00         $ 1,026.90         $ 2.81   
   Hypothetical*      0.56 %     $ 1,000.00         $ 1,022.02         $ 2.81   

Class E(a)

    Actual      0.46 %     $ 1,000.00         $ 1,027.80         $ 2.31   
   Hypothetical*      0.46 %     $ 1,000.00         $ 1,022.51         $ 2.31   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio does not include the expenses of the Underlying ETFs in which the Portfolio invests.

 

MIST-4

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Investment Company Securities—97.6% of Net Assets

 

Security Description   Shares     Value  

iShares Barclays U.S. Treasury Inflation Protected Securities Bond Fund (a)

     1,040,600      $ 116,557,606   

iShares Core S&P Small-Cap ETF (a)

     979,400        88,430,026   

iShares Gold Trust (a) (b)

     1,530,600        18,351,894   

iShares iBoxx $ Investment Grade Corporate Bond Fund (a)

     758,080        86,155,792   

iShares MSCI Canada Index Fund (a)

     1,473,300        38,600,460   

iShares MSCI EAFE Index Fund

     5,758,500        330,422,730   

SPDR Barclays High Yield Bond ETF (a) (c)

     8,131,210        321,101,483   

SPDR Dow Jones International Real Estate ETF (a) (c)

     1,119,998        44,687,920   

SPDR Gold Trust (a) (b) (c)

     248,400        29,596,860   

SPDR S&P 500 ETF Trust (a) (c)

     4,873,000        779,728,730   

SPDR S&P Dividend ETF (a) (c)

     2,250,900        149,234,670   

SPDR S&P International Small Cap ETF (a) (c)

     1,977,123        57,020,227   

SPDR S&P MidCap 400 ETF Trust (a) (c)

     147,800        31,094,164   

Vanguard FTSE Emerging Markets ETF (a)

     2,170,700        84,179,746   

Vanguard FTSE Pacific ETF (a)

     998,400        55,740,672   

Vanguard REIT ETF (a)

     1,032,600        70,960,272   

Vanguard Total Bond Market ETF (a)

     6,435,100        520,470,888   
   

 

 

  

Total Investment Company Securities
(Cost $2,631,734,589)

       2,822,334,140   
   

 

 

  
Short-Term Investments—28.6%   
Security Description   Shares     Value  

Mutual Funds—28.6%

    

AIM STIT-STIC Prime Portfolio

     57,925,508      $ 57,925,508   

State Street Navigator Securities Lending MET Portfolio (c) (d)

     767,991,845        767,991,845   
   

 

 

  

Total Short-Term Investments
(Cost $825,917,353)

       825,917,353   
   

 

 

  

Total Investments—126.2%
(Cost $3,457,651,942) (e)

       3,648,251,493   

Other assets and liabilities (net)—(26.2)%

       (757,662,834 ) 
   

 

 

  
Net Assets—100.0%     $ 2,890,588,659   
   

 

 

  

 

(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $754,690,016 and the collateral received consisted of cash in the amount of $767,991,845 and non-cash collateral with a value of $4,192,317. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(d) Represents investment of cash collateral received from securities lending transactions.
(e) As of June 30, 2013, the aggregate cost of investments was $3,457,651,942. The aggregate unrealized appreciation and depreciation of investments were $250,610,989 and $(60,011,438), respectively, resulting in net unrealized appreciation of $190,599,551.
(ETF)— Exchange-Traded Fund

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Investment Company Securities

    $ 2,822,334,140       $ —        $ —         $ 2,822,334,140   

Total Short-Term Investments*

      825,917,353         —          —           825,917,353   

Total Investments

    $ 3,648,251,493       $ —        $ —         $ 3,648,251,493   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (767,991,845 )    $ —         $ (767,991,845 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,467,795,594   

Affiliated investments at value (c) (d)

      2,180,455,899   

Receivable for:

   

Fund shares sold

      145,709   

Dividends

      13,497,899   

Interest

      939   
  

 

 

  

Total Assets

      3,661,896,040   

Liabilities

   

Payables for:

   

Fund shares redeemed

      1,833,856   

Collateral for securities loaned

      767,991,845   

Accrued expenses:

   

Management fees

      736,406   

Distribution and service fees

      597,570   

Administration fees

      3,568   

Custodian and accounting fees

      10,946   

Deferred trustees’ fees

      41,001   

Other expenses

      92,189   
  

 

 

  

Total Liabilities

      771,307,381   
  

 

 

  

Net Assets

    $ 2,890,588,659   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 2,609,605,997   

Undistributed net investment income

      31,364,005   

Accumulated net realized gain

      59,019,106   

Unrealized appreciation on investments and affiliated investments

      190,599,551   
  

 

 

  

Net Assets

    $ 2,890,588,659   
  

 

 

  

Net Assets

   

Class A

    $ 23,771,761   

Class B

      2,855,375,478   

Class E

      11,441,420   

Capital Shares Outstanding*

   

Class A

      2,016,151   

Class B

      243,402,608   

Class E

      973,437   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.79   

Class B

      11.73   

Class E

      11.75   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Includes securities loaned at value of $360,200,809.
(b) Identified cost of investments, excluding affiliated investments, was $1,474,567,525.
(c) Identified cost of affiliated investments was $1,983,084,417.
(d) Includes securities loaned at value of $394,489,207.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Underlying ETFs

    $ 18,022,596   

Dividends from affiliated investments

      19,811,060   

Interest

      13,868   

Securities lending income from affiliated investments

      995,773   
  

 

 

  

Total investment income

      38,843,297   

Expenses

   

Management fees

      4,518,212   

Administration fees

      10,902   

Custodian and accounting fees

      16,148   

Distribution and service fees—Class B

      3,660,671   

Distribution and service fees—Class E

      8,313   

Audit and tax services

      18,308   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      31,956   

Insurance

      9,284   

Miscellaneous

      9,878   
  

 

 

  

Total expenses

      8,306,794   
  

 

 

  

Net Investment Income

      30,536,503   
  

 

 

  

Net Realized and Unrealized Gain (Loss)

   
Net realized gain on:   

Investments

      23,564,573   

Affiliated investments

      51,887,470   

Capital gain distributions received from Underlying ETFs

      736,608   
  

 

 

  

Net realized gain

      76,188,651   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (63,932,574 ) 

Affiliated investments

      38,244,404   
  

 

 

  

Net change in unrealized depreciation

      (25,688,170 ) 
  

 

 

  

Net realized and unrealized gain

      50,500,481   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 81,036,984   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 30,536,503      $ 74,719,244   

Net realized gain

      76,188,651        68,011,446   

Net change in unrealized appreciation (depreciation)

      (25,688,170 )      193,411,157   
  

 

 

    

 

 

  

Increase in net assets from operations

      81,036,984        336,141,847   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (639,216 )      (450,761 ) 

Class B

      (73,924,273 )      (66,627,262 ) 

Class E

      (282,833 )      (247,514 ) 

Net realized capital gains

     

Class A

      (547,900 )      (385,715 ) 

Class B

      (69,436,858 )      (62,141,652 ) 

Class E

      (255,856 )      (223,182 ) 
  

 

 

    

 

 

  

Total distributions

      (145,086,936 )      (130,076,086 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      43,561,258        79,888,250   
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (20,488,694 )      285,954,011   

Net Assets

     

Beginning of period

      2,911,077,353        2,625,123,342   
  

 

 

    

 

 

  

End of period

    $ 2,890,588,659      $ 2,911,077,353   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 31,364,005      $ 75,673,824   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      373,973      $ 4,600,590        650,834      $ 7,559,683   

Reinvestments

      100,094        1,187,116        73,633        836,476   

Redemptions

      (206,816 )      (2,548,870 )      (355,484 )      (4,163,017 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      267,251      $ 3,238,836        368,983      $ 4,233,142   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      5,160,416      $ 63,140,061        20,328,825      $ 236,288,686   

Reinvestments

      12,138,961        143,361,131        11,385,403        128,768,914   

Redemptions

      (13,692,900 )      (167,012,707 )      (25,249,077 )      (290,376,394 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      3,606,477      $ 39,488,485        6,465,151      $ 74,681,206   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      124,300      $ 1,517,822        265,774      $ 3,080,023   

Reinvestments

      45,536        538,689        41,544        470,696   

Redemptions

      (99,399 )      (1,222,574 )      (221,048 )      (2,576,817 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      70,437      $ 833,937        86,270      $ 973,902   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 43,561,258        $ 79,888,250   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Financial Highlights

 

Selected per share data                                        
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010     2009      2008  

Net Asset Value, Beginning of Period

    $ 12.08      $ 11.21       $ 11.48       $ 10.34      $ 8.49       $ 11.80   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.14        0.34         0.34         0.39        0.35         0.30   

Net realized and unrealized gain (loss) on investments

      0.20        1.09         (0.17 )       0.90        1.71         (3.15 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total from investment operations

      0.34        1.43         0.17         1.29        2.06         (2.85 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.34 )      (0.30 )       (0.22 )       (0.15 )      (0.21 )       (0.22 ) 

Distributions from net realized capital gains

      (0.29 )      (0.26 )       (0.22 )       (0.00 )(b)      0.00         (0.24 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

      (0.63 )      (0.56 )       (0.44 )       (0.15 )      (0.21 )       (0.46 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.79      $ 12.08       $ 11.21       $ 11.48      $ 10.34       $ 8.49   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return (%) (c)

      2.84  (d)      13.11         1.28         12.61        24.96         (24.87 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%) (e)

      0.31  (f)      0.32         0.32         0.33        0.40         0.52  (g) 

Net ratio of expenses to average net assets (%) (e) (h)

      0.31  (f)      0.32         0.32         0.33        0.37         0.51   

Ratio of net investment income to average net assets (%) (i)

      2.36  (f)      2.96         3.01         3.64        3.80         2.97   

Portfolio turnover rate (%)

      20  (d)      39         36         33        22         166   

Net assets, end of period (in millions)

    $ 23.8      $ 21.1       $ 15.5       $ 11.3      $ 4.5       $ 2.0   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010     2009      2008  

Net Asset Value, Beginning of Period

    $ 12.01      $ 11.15       $ 11.43       $ 10.32      $ 8.47       $ 11.77   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.12        0.30         0.31         0.37        0.34         0.27   

Net realized and unrealized gain (loss) on investments

      0.20        1.10         (0.17 )       0.88        1.70         (3.14 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total from investment operations

      0.32        1.40         0.14         1.25        2.04         (2.87 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.31 )      (0.28 )       (0.20 )       (0.14 )      (0.19 )       (0.19 ) 

Distributions from net realized capital gains

      (0.29 )      (0.26 )       (0.22 )       (0.00 )(b)      0.00         (0.24 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

      (0.60 )      (0.54 )       (0.42 )       (0.14 )      (0.19 )       (0.43 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.73      $ 12.01       $ 11.15       $ 11.43      $ 10.32       $ 8.47   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return (%) (c)

      2.69  (d)      12.85         1.06         12.24        24.89         (25.06 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%) (e)

      0.56  (f)      0.57         0.57         0.58        0.65         0.78  (g) 

Net ratio of expenses to average net assets (%) (e) (h)

      0.56  (f)      0.57         0.57         0.58        0.62         0.75   

Ratio of net investment income to average net assets (%) (i)

      2.06  (f)      2.64         2.79         3.49        3.63         2.64   

Portfolio turnover rate (%)

      20  (d)      39         36         33        22         166   

Net assets, end of period (in millions)

    $ 2,855.4      $ 2,879.1       $ 2,600.5       $ 1,926.7      $ 739.6       $ 172.3   

 

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Financial Highlights

 

 

Selected per share data                                        
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010     2009      2008  

Net Asset Value, Beginning of Period

    $ 12.03      $ 11.17       $ 11.44       $ 10.32      $ 8.47       $ 11.77   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (a)

      0.13        0.32         0.32         0.35        0.33         0.31   

Net realized and unrealized gain (loss) on investments

      0.21        1.09         (0.17 )       0.91        1.72         (3.16 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total from investment operations

      0.34        1.41         0.15         1.26        2.05         (2.85 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.33 )      (0.29 )       (0.20 )       (0.14 )      (0.20 )       (0.21 ) 

Distributions from net realized capital gains

      (0.29 )      (0.26 )       (0.22 )       (0.00 )(b)      0.00         (0.24 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

      (0.62 )      (0.55 )       (0.42 )       (0.14 )      (0.20 )       (0.45 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.75      $ 12.03       $ 11.17       $ 11.44      $ 10.32       $ 8.47   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return (%) (c)

      2.78  (d)      12.91         1.17         12.34        24.99         (25.01 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%) (e)

      0.46  (f)      0.47         0.47         0.48        0.55         0.68  (g) 

Net ratio of expenses to average net assets (%) (e) (h)

      0.46  (f)      0.47         0.47         0.48        0.52         0.65   

Ratio of net investment income to average net assets (%) (i)

      2.20  (f)      2.76         2.85         3.35        3.59         3.09   

Portfolio turnover rate (%)

      20  (d)      39         36         33        22         166   

Net assets, end of period (in millions)

    $ 11.4      $ 10.9       $ 9.1       $ 7.8      $ 4.8       $ 2.5   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Distributions from net realized capital gains were less than $0.01.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) The ratio of operating expenses to average net assets does not include expenses of the Underlying ETFs in which the Portfolio invests.
(f) Computed on an annualized basis.
(g) Excludes effect of deferred expense reimbursement.
(h) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(i) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying ETFs in which it invests.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is SSgA Growth and Income ETF Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio was designed on established principles of asset allocation. The Portfolio will primarily invest its assets in other investment companies known as exchange-traded funds (“Underlying ETFs”), including, but not limited to, series of the iShares® Trust, iShares®, Inc., Standard and Poors Depositary Receipts of the S&P 500 ETF Trust and Vanguard ETFs of the Vanguard® Index Funds.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying ETFs are valued at the closing market quotation for their shares and are categorized as Level 1 within the fair value hierarchy. The net asset value of the Portfolio is calculated based on the market values of the Underlying ETFs in which the Portfolio invests. For information about the use of fair value pricing by the Underlying ETFs, please refer to the prospectuses for such Underlying ETFs.

Investments in registered open-end management investment companies are valued at reported net asset value per share and are categorized as Level 1 within the fair value hierarchy.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying ETFs are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to capital gain dividend reclass. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

 

MIST-11

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The Trust has entered into a securities lending arrangement with the custodian, State Street Bank and Trust Company (the “custodian”). Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is disclosed in the footnotes to the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Due to the affiliation between the Portfolio’s subadviser, SSgA Funds Management, Inc., and the custodian, the Portfolio relies on an exemptive order issued by the Securities and Exchange Commission to the custodian, State Street Navigator Securities Lending Trust (“Navigator Trust”) and the SSgA Funds that permits certain registered investment companies, including the Portfolio, to use cash collateral from securities lending transactions to purchase shares of one of more series of Navigator Trust, including the Navigator Portfolio, and to pay fees based on a share of the revenue generated from securities lending transactions to the custodian.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio and the Underlying ETFs invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio and the Underlying ETFs may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio and the Underlying ETFs; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio and the Underlying ETFs may be exposed to counterparty risk, or the risk that an entity with which the Portfolio and the Underlying ETFs have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio and the Underlying ETFs to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio and the Underlying ETFs manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio and the Underlying ETFs’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio and the Underlying ETFs restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom they undertake a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to setoff. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and the Underlying ETFs in which it invests.

 

MIST-12

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 596,255,471       $ 0       $ 682,387,566   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with SSgA Funds Management, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio. The Subadviser is an affiliate of State Street Bank and Trust Company, the administrator and custodian of the Trust.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$4,518,212      0.330 %    First $500 million
     0.300 %    Over $500 million

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

 

MIST-13

Met Investors Series Trust

SSgA Growth and Income ETF Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

 

Underlying ETF/Security

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

SPDR Barclays High Yield Bond ETF

      9,233,810         214,000         (1,316,600 )      8,131,210   

SPDR Dow Jones International Real Estate ETF

      1,037,698         481,200         (398,900 )      1,119,998   

SPDR Gold Trust

      248,400         —         —        248,400   

SPDR S&P 500 ETF Trust

      5,582,800         33,700         (743,500 )      4,873,000   

SPDR S&P Dividend ETF

      2,466,600         872,500         (1,088,200 )      2,250,900   

SPDR S&P International Small Cap ETF

      2,117,623         926,800         (1,067,300 )      1,977,123   

SPDR S&P MidCap 400 ETF Trust

      165,800         —         (18,000 )      147,800   

State Street Navigator Securities Lending MET Portfolio

      —         4,257,969,492         (3,489,977,647 )      767,991,845   

State Street Navigator Securities Lending Prime Portfolio

      671,628,594         115,286,838         (786,915,432 )      —   

 

Underlying ETF/Security

    Net Realized
Gain/(Loss) on sales
of Affiliated
Investments		     Capital Gain
Distributions from
Affiliated
Investments		      Income from
Affiliated
Investments		      Ending Value
as of
June 30, 2013		  

SPDR Barclays High Yield Bond ETF

    $ (185,605 )    $ —       $ 9,292,288       $ 321,101,483   

SPDR Dow Jones International Real Estate ETF

      2,115,491        —         810,044         44,687,920   

SPDR Gold Trust

      —        —         —         29,596,860   

SPDR S&P 500 ETF Trust

      33,492,913        —         7,700,954         779,728,730   

SPDR S&P Dividend ETF

      11,689,830        —         1,428,091         149,234,670   

SPDR S&P International Small Cap ETF

      4,334,779        —         397,412         57,020,227   

SPDR S&P MidCap 400 ETF Trust

      440,062        —         182,271         31,094,164   

State Street Navigator Securities Lending MET Portfolio

      —        —         799,702         767,991,845   

State Street Navigator Securities Lending Prime Portfolio

      —        —         196,071         —   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ 51,887,470      $ —       $ 20,806,833       $ 2,180,455,899   
  

 

 

    

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income      Long-Term Capital Gain      Total  
2012      2011      2012      2011      2012      2011  
$ 79,161,949       $ 52,495,122       $ 50,914,137       $ 32,483,668       $ 130,076,086       $ 84,978,790   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income		      Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards
and Post October
Loss Deferrals		      Total  
$ 85,460,519       $ 59,919,810       $ 199,687,912       $ —       $ 345,068,241   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-14

Met Investors Series Trust

SSgA Growth ETF Portfolio

Managed by SSgA Funds Management, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the SSgA Growth ETF Portfolio returned 4.65%, 4.52%, and 4.61%, respectively. The Portfolio’s benchmark, the MSCI All Country World Index1, returned 6.05%.

MARKET ENVIRONMENT / CONDITIONS

Relieved by the orderly mitigation of a fiscal retrenchment in the United States (U.S.), global equities surged as trading opened in 2013. The turn of the calendar brought a renewal of risk appetites and resumption of investment flows, fueled by fresh optimism that economic activity might steadily reaccelerate through the course of the upcoming year. Continued weakness in the Japanese yen signaled the approach of new dynamism at the Bank of Japan, while the euro rallied progressively to one-year highs on further diminution of sovereign financial strains. Growth prospects looked buoyant enough to inspire visions of a great rotation out of bonds and into equities, but this promising playbook for 2013 soon started to lose adherents. Even in January, the travails of the yen began to infect emerging market currencies, and by early February, equity traders could no longer neglect the burden of an appreciated euro. Graft allegations in Spain and unsettled elections in Italy made it even easier for European equity shares to surrender momentum, while an accommodative Bank of England and a credit downgrade of the United Kingdom (UK) weighed heavily on the British pound. A revived U.S. dollar and worries over tighter property rules in China took their toll on commodity prices, but sentiment stabilized in early March with the affirmation of an official 7.5% objective for the Chinese annual economic growth rate in 2013. As major central banks maintained their commitment to accommodative monetary policy and the United States reported strong February jobs data on March 8, equities looked like they might finish the quarter with renewed gains, but banking turmoil in Cyprus arrived to disorient investors further. As a condition of sufficient liquidity assistance from European financial authorities, Cyprus had little choice but to impose losses on uninsured depositors. This outcome likely reinforced an already heightened sense of caution among eurozone lenders, and most government bond yields spent the last two weeks of March giving back the modest upside that they had staked out since the start of the year. Fresh uncertainty in Europe lent additional cachet to U.S. assets, which proceeded to finish the first quarter on an upswing. Across the global stage, the opening months of 2013 produced ample sources of return for investors, but less aggressive equity positions were among the better performers.

The constructive momentum from the first quarter carried into April, as the formal announcement of aggressive policy measures in Japan delivered an additional boost to the economic outlook and falling bond yields on the eurozone periphery relieved concerns about regional financial contagion. With weak U.S. employment figures reassuring investors that any retracement of monetary accommodation remained a distant prospect, both bonds and stocks appreciated nicely. Commodities faltered after Chinese economic growth data failed to meet the expectations of investors, and the arrival of much firmer U.S. payroll data in early May achieved little more than stabilization for metals prices. But the better jobs numbers jolted bond yields from their slumber, with Japanese government debt selling off abruptly when the yen sank to four-year lows against the U.S. dollar. The watershed event of the second quarter arrived on May 22, when U.S. Federal Reserve (“Fed”) Chairman Ben Bernanke suggested during congressional testimony that the asset purchases by the Fed might slow if economic conditions continued to improve. The apparent softening in the official commitment to unmitigated easing sparked a swift retreat in global equities even as it exacerbated the downturn in bonds, and the attendant surge in worldwide volatility took a steep toll on investment positions that rely most heavily on easy money. Emerging markets assets tumbled and the Japanese yen saw its sharpest rally of the year. Income-oriented strategies suffered swift reversals as higher government yields reduced the relative appeal of the riskier alternatives. Equities began to regain their composure in early June as the World Bank pared its outlook for global growth and declining inflation expectations led investors to expect that tapering of asset purchases would remain a distant prospect. But the June 19 statement from the Federal Open Market Committee (FOMC) brought renewed angst. With upbeat economic language and no assurance that tapering would be deferred, the FOMC wording provoked yet another jump in bond yields and further volatility in equities. Gold prices plummeted to their lowest level since 2010. Hurt by a daunting spike in Chinese interbank rates and mounting financial pressures on Brazilian companies controlled by billionaire Eike Batista, broad averages of emerging market stocks sank to fresh 12-month lows. Although rebalance activity at the end of June helped global markets finish the second quarter on a steadier note, stocks and bonds were broadly weaker for the month. Over the full second quarter, equities in the U.S. and Japan were among the few winners, while bonds and commodities suffered widespread declines.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio experienced a fairly wide range of investment returns across global capital markets during the first six months of the year. Poor performance in commodities and fixed income assets helped to put downward pressure on absolute returns, offsetting the positive contribution from equities from developed countries. Tactical decisions and Exchange-Traded Fund (ETF) underperformance (particularly in the international space) resulted in the Portfolio lagging its strategic blended benchmark. The Portfolio’s performance was impacted most negatively by an out of benchmark holding in gold. Historically, the gold position had offered diversification benefits as well as positive returns for the Portfolio. However, the first half of 2013 saw a decided change in the market’s appetite for gold and gold prices plunged as a result. While the Portfolio’s position in gold was trimmed somewhat in February, the remaining 2% position was still subject to the more than 20% price decrease in the second quarter. In addition, ETFs as a whole were selling at a discount, which

 

MIST-1

Met Investors Series Trust

SSgA Growth ETF Portfolio

Managed by SSgA Funds Management, Inc.

Portfolio Manager Commentary*—(Continued)

 

had an adverse impact on relative performance for the period. The market prices of the underlying ETFs held by the Portfolio relative to the net asset value of the securities held by the ETFs had a negative impact of approximately 0.50%.

The largest contributor to the Portfolio’s performance during the six month period ending June 30, 2013 was the relative underweight of investment grade fixed income and inflation protected securities against the Portfolio’s strategic targets. Both asset classes experienced negative returns for the period, as the Vanguard Total Bond Market ETF (BND) and the iShares TIPS Bond ETF (TIP) were down -2.64% and -7.42%, respectively. In equities, the Portfolio benefited from an overweight to dividend paying stocks, which were rewarded handsomely in the first half. The SPDR S&P Dividend ETF (SDY) returned 15.59% vs. 13.74% for the SPDR S&P 500 ETF (SPY).

The Portfolio ended June at its most defensive position thus far in 2013. The Portfolio’s overall equity exposure was reduced to be in line with that of the benchmark. Within equities, an overweight in U.S. dividend stocks relative to core S&P 500 was maintained. An overweight to Real Estate Investment Trusts (REITs) as well as to developed Pacific equities was held, funded by an underweight to Emerging Market equities. In fixed income, underweights in government and inflation protected bonds were offset by overweight positions in investment grade and high yield securities. Lastly, a modest overweight to gold continued to be held by the Portfolio.

Dan Farley

Chris Goolgasian

Tim Furbush

Portfolio Managers

SSgA Funds Management, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

SSgA Growth ETF Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE MSCI ACWI (ALL COUNTRY WORLD INDEX)

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        Since Inception2  
SSgA Growth ETF Portfolio                      

Class A

        4.65           13.40           5.58           4.15   

Class B

        4.52           13.20           5.33           4.69   

Class E

        4.61           13.29           5.44           4.00   
MSCI ACWI (All Country World Index)        6.05           16.57           2.30           4.41   

1 The MSCI ACWI (All Country World Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 24 developed and 21 emerging market indices. The index returns shown above were calculated with net dividends: they reflect the reinvestment of dividends after the deduction of the maximum possible withholding taxes.

2 Inception of Class B shares is 10/3/2005. Inception of Class A and Class E shares is 5/1/2006. Index returns are based on an inception date of 10/3/2005.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

     % of
Net Assets		  
SPDR S&P 500 ETF Trust      32.1   
iShares MSCI EAFE Index Fund      17.6   
SPDR Barclays High Yield Bond ETF      6.0   
SPDR S&P Dividend ETF      5.1   
Vanguard FTSE Emerging Markets ETF      5.1   
iShares Core S&P Small-Cap ETF      5.1   
Vanguard Total Bond Market ETF      5.0   
SPDR S&P MidCap 400 ETF Trust      4.2   
iShares iBoxx $ Investment Grade Corporate Bond Fund      2.9   
SPDR S&P International Small Cap ETF      2.9   

 

MIST-3

Met Investors Series Trust

SSgA Growth ETF Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

SSgA Growth ETF Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.34 %     $ 1,000.00         $ 1,046.50         $ 1.73   
   Hypothetical*      0.34 %     $ 1,000.00         $ 1,023.11         $ 1.71   

Class B(a)

    Actual      0.59 %     $ 1,000.00         $ 1,045.20         $ 2.99   
   Hypothetical*      0.59 %     $ 1,000.00         $ 1,021.87         $ 2.96   

Class E(a)

    Actual      0.49 %     $ 1,000.00         $ 1,046.10         $ 2.49   
   Hypothetical*      0.49 %     $ 1,000.00         $ 1,022.37         $ 2.46   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio does not include the expenses of the Underlying ETFs in which the Portfolio invests.

 

MIST-4

Met Investors Series Trust

SSgA Growth ETF Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Investment Company Securities—97.5% of Net Assets

 

Security Description   Shares     Value  

iShares Barclays U.S. Treasury Inflation Protected Securities Bond Fund (a)

     162,100      $ 18,156,821   

iShares Core S&P Small-Cap ETF (a)

     501,500        45,280,435   

iShares Gold Trust (a) (b)

     346,900        4,159,331   

iShares iBoxx $ Investment Grade Corporate Bond Fund (a)

     230,600        26,207,690   

iShares MSCI Canada Index Fund (a)

     622,100        16,299,020   

iShares MSCI EAFE Index Fund (a)

     2,742,800        157,381,864   

SPDR Barclays High Yield Bond ETF (a) (c)

     1,362,400        53,801,176   

SPDR Dow Jones International Real Estate ETF (a) (c)

     341,800        13,637,820   

SPDR Gold Trust (a) (b) (c)

     96,500        11,497,975   

SPDR S&P 500 ETF Trust (a) (c)

     1,790,800        286,545,908   

SPDR S&P Dividend ETF (a) (c)

     684,700        45,395,610   

SPDR S&P International Small Cap ETF (c)

     897,600        25,886,784   

SPDR S&P MidCap 400 ETF Trust (a) (c)

     176,600        37,153,108   

Vanguard FTSE Emerging Markets ETF (a)

     1,168,600        45,318,308   

Vanguard FTSE Pacific ETF (a)

     303,400        16,938,822   

Vanguard REIT ETF (a)

     312,500        21,475,000   

Vanguard Total Bond Market ETF

     557,200        45,066,336   
   

 

 

  

Total Investment Company Securities
(Cost $779,633,771)

       870,202,008   
   

 

 

  
Short-Term Investments—28.8%   
Security Description   Shares     Value  

Mutual Funds—28.8%

  

AIM STIT-STIC Prime Portfolio

     17,070,665      $ 17,070,665   

State Street Navigator Securities Lending MET Portfolio (c) (d)

     240,201,646        240,201,646   
   

 

 

  

Total Short-Term Investments
(Cost $257,272,311)

       257,272,311   
   

 

 

  

Total Investments—126.3%
(Cost $1,036,906,082) (e)

       1,127,474,319   

Other Assets and Liabilities
(net)—(26.3)%

       (234,754,075 ) 
   

 

 

  
Net Assets—100.0%     $ 892,720,244   
   

 

 

  

 

(a) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $235,396,174 and the collateral received consisted of cash in the amount of $240,201,646 and non-cash collateral with a value of $555,660. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(b) Non-income producing security.
(c) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(d) Represents investment of cash collateral received from securities lending transactions.
(e) As of June 30, 2013, the aggregate cost of investments was $1,036,906,082. The aggregate unrealized appreciation and depreciation of investments were $108,512,659 and $(17,944,422), respectively, resulting in net unrealized appreciation of $90,568,237.
(ETF)— Exchange-Traded Fund

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

SSgA Growth ETF Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Investment Company Securities

    $ 870,202,008       $ —        $ —         $ 870,202,008   

Total Short-Term Investments*

      257,272,311         —          —           257,272,311   

Total Investments

    $ 1,127,474,319       $ —        $ —         $ 1,127,474,319   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (240,201,646 )    $ —         $ (240,201,646 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

SSgA Growth ETF Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 413,354,292   

Affiliated investments at value (c) (d)

      714,120,027   

Receivable for:

   

Fund shares sold

      615,545   

Dividends

      5,756,480   

Interest

      278   
  

 

 

  

Total Assets

      1,133,846,622   

Liabilities

   

Payables for:

   

Fund shares redeemed

      375,300   

Collateral for securities loaned

      240,201,646   

Accrued expenses:

   

Management fees

      234,862   

Distribution and service fees

      181,012   

Administration fees

      3,568   

Custodian and accounting fees

      10,948   

Deferred trustees’ fees

      41,001   

Other expenses

      78,041   
  

 

 

  

Total Liabilities

      241,126,378   
  

 

 

  

Net Assets

    $ 892,720,244   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 775,618,207   

Undistributed net investment income

      9,098,820   

Accumulated net realized gain

      17,434,980   

Unrealized appreciation on investments and affiliated investments

      90,568,237   
  

 

 

  

Net Assets

    $ 892,720,244   
  

 

 

  

Net Assets

   

Class A

    $ 18,458,212   

Class B

      866,760,698   

Class E

      7,501,334   

Capital Shares Outstanding*

   

Class A

      1,610,721   

Class B

      75,965,618   

Class E

      656,366   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 11.46   

Class B

      11.41   

Class E

      11.43   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $406,579,372.
(b) Includes securities loaned at value of $133,796,592.
(c) Identified cost of affiliated investments was $630,326,710.
(d) Includes securities loaned at value of $101,599,582.

 

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends from Underlying ETFs

    $ 5,786,112   

Dividends from affiliated investments

      5,518,344   

Interest

      4,803   

Securities lending income from affiliated investments

      310,125   
  

 

 

  

Total investment income

      11,619,384   

Expenses

   

Management fees

      1,418,388   

Administration fees

      10,902   

Custodian and accounting fees

      15,975   

Distribution and service fees—Class B

      1,089,289   

Distribution and service fees—Class E

      5,548   

Audit and tax services

      18,309   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      10,295   

Insurance

      2,745   

Miscellaneous

      4,791   
  

 

 

  

Total expenses

      2,599,364   
  

 

 

  

Net Investment Income

      9,020,020   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain on:   

Investments

      7,638,929   

Affiliated investments

      18,703,106   

Capital gain distributions received from Underlying ETFs

      29,729   
  

 

 

  
Net realized gain      26,371,764   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      (13,459,746 ) 

Affiliated investments

      17,312,953   
  

 

 

  

Net change in unrealized appreciation

      3,853,207   
  

 

 

  

Net realized and unrealized gain

      30,224,971   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 39,244,991   
  

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

SSgA Growth ETF Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 9,020,020      $ 19,420,465   

Net realized gain

      26,371,764        31,633,459   

Net change in unrealized appreciation

      3,853,207        62,263,731   
  

 

 

    

 

 

  

Increase in net assets from operations

      39,244,991        113,317,655   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (418,794 )      (250,294 ) 

Class B

      (18,752,505 )      (15,804,160 ) 

Class E

      (165,659 )      (133,075 ) 

Net realized capital gains

     

Class A

      (654,365 )      (419,693 ) 

Class B

      (32,456,258 )      (29,581,235 ) 

Class E

      (274,068 )      (237,508 ) 
  

 

 

    

 

 

  

Total distributions

      (52,721,649 )      (46,425,965 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      53,508,920        20,262,238   
  

 

 

    

 

 

  

Total Increase in Net Assets

      40,032,262        87,153,928   

Net Assets

     

Beginning of period

      852,687,982        765,534,054   
  

 

 

    

 

 

  

End of period

    $ 892,720,244      $ 852,687,982   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 9,098,820      $ 19,415,758   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      337,483      $ 4,057,891        442,966      $ 4,966,476   

Reinvestments

      94,137        1,073,159        61,411        669,987   

Redemptions

      (115,709 )      (1,376,870 )      (148,395 )      (1,665,760 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      315,911      $ 3,754,180        355,982      $ 3,970,703   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      4,807,130      $ 57,104,160        10,550,272      $ 117,533,529   

Reinvestments

      4,511,785        51,208,763        4,175,289        45,385,395   

Redemptions

      (4,982,704 )      (59,192,864 )      (13,313,585 )      (147,085,678 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      4,336,211      $ 49,120,059        1,411,976      $ 15,833,246   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      100,225      $ 1,194,493        157,916      $ 1,760,279   

Reinvestments

      38,674        439,727        34,061        370,583   

Redemptions

      (84,093 )      (999,539 )      (150,844 )      (1,672,573 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      54,806      $ 634,681        41,133      $ 458,289   
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 53,508,920        $ 20,262,238   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

SSgA Growth ETF Portfolio

Financial Highlights

 

Selected per share data       
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.66      $ 10.72       $ 11.11       $ 9.87       $ 7.81       $ 12.09   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.14        0.30         0.28         0.28         0.28         0.24   

Net realized and unrealized gain (loss) on investments

      0.40        1.30         (0.47 )       1.13         1.96         (4.09 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.54        1.60         (0.19 )       1.41         2.24         (3.85 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.29 )      (0.25 )       (0.20 )       (0.17 )       (0.18 )       (0.19 ) 

Distributions from net realized capital gains

      (0.45 )      (0.41 )       0.00         0.00         0.00         (0.24 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.74 )      (0.66 )       (0.20 )       (0.17 )       (0.18 )       (0.43 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.46      $ 11.66       $ 10.72       $ 11.11       $ 9.87       $ 7.81   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      4.65  (c)      15.32         (1.87 )       14.37         29.51         (32.84 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (d)

      0.34  (f)      0.35         0.35         0.36         0.43         0.52  (e) 

Net ratio of expenses to average net assets (%) (g) (d)

      0.34  (f)      0.35         0.35         0.36         0.40         0.50   

Ratio of net investment income to average net assets (%) (h)

      2.37  (f)      2.72         2.51         2.77         3.20         2.35   

Portfolio turnover rate (%)

      21  (c)      43         35         37         23         140   

Net assets, end of period (in millions)

    $ 18.5      $ 15.1       $ 10.1       $ 7.5       $ 4.4       $ 1.0   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.60      $ 10.67       $ 11.07       $ 9.84       $ 7.79       $ 12.06   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.12        0.26         0.24         0.25         0.23         0.20   

Net realized and unrealized gain (loss) on investments

      0.40        1.30         (0.46 )       1.13         1.98         (4.07 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.52        1.56         (0.22 )       1.38         2.21         (3.87 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.26 )      (0.22 )       (0.18 )       (0.15 )       (0.16 )       (0.16 ) 

Distributions from net realized capital gains

      (0.45 )      (0.41 )       0.00         0.00         0.00         (0.24 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.71 )      (0.63 )       (0.18 )       (0.15 )       (0.16 )       (0.40 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.41      $ 11.60       $ 10.67       $ 11.07       $ 9.84       $ 7.79   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      4.52  (c)      15.03         (2.13 )       14.15         29.10         (32.97 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (d)

      0.59  (f)      0.60         0.60         0.61         0.68         0.77  (e) 

Net ratio of expenses to average net assets (%) (d) (g)

      0.59  (f)      0.60         0.60         0.61         0.65         0.75   

Ratio of net investment income to average net assets (%) (h)

      2.01  (f)      2.33         2.20         2.47         2.70         1.99   

Portfolio turnover rate (%)

      21  (c)      43         35         37         23         140   

Net assets, end of period (in millions)

    $ 866.8      $ 830.6       $ 749.5       $ 651.0       $ 422.9       $ 153.2   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

SSgA Growth ETF Portfolio

Financial Highlights

 

 

Selected per share data       
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 11.62      $ 10.69       $ 11.08       $ 9.85       $ 7.79       $ 12.07   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.13        0.27         0.27         0.25         0.23         0.23   

Net realized and unrealized gain (loss) on investments

      0.40        1.30         (0.48 )       1.13         2.00         (4.09 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      0.53        1.57         (0.21 )       1.38         2.23         (3.86 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.27 )      (0.23 )       (0.18 )       (0.15 )       (0.17 )       (0.18 ) 

Distributions from net realized capital gains

      (0.45 )      (0.41 )       0.00         0.00         0.00         (0.24 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.72 )      (0.64 )       (0.18 )       (0.15 )       (0.17 )       (0.42 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 11.43      $ 11.62       $ 10.69       $ 11.08       $ 9.85       $ 7.79   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      4.61  (c)      15.12         (1.99 )       14.17         29.35         (32.91 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%) (d)

      0.49  (f)      0.50         0.50         0.51         0.58         0.67  (e) 

Net ratio of expenses to average net assets (% ) (g) (d)

      0.49  (f)      0.50         0.50         0.51         0.55         0.65   

Ratio of net investment income to average net assets (%) (h)

      2.14  (f)      2.45         2.34         2.44         2.71         2.28   

Portfolio turnover rate (%)

      21  (c)      43         35         37         23         140   

Net assets, end of period (in millions)

    $ 7.5      $ 7.0       $ 6.0       $ 5.1       $ 4.2       $ 2.7   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) The ratio of operating expenses to average net assets does not include expenses of the Underlying ETFs in which the Portfolio invests.
(e) Excludes effect of deferred expense reimbursement.
(f) Computed on an annualized basis.
(g) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.
(h) Recognition of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the Underlying ETFs in which it invests.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

SSgA Growth ETF Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is SSgA Growth ETF Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

The Portfolio was designed on established principles of asset allocation. The Portfolio will primarily invest its assets in other investment companies known as exchange-traded funds (“Underlying ETFs”), including, but not limited to, series of the iShares® Trust, iShares®, Inc., Standard and Poors Depositary Receipts of the S&P 500 ETF Trust and Vanguard ETFs of the Vanguard® Index Funds.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Valuation - Investments in the Underlying ETFs are valued at the closing market quotation for their shares and are categorized as Level 1 within the fair value hierarchy. The net asset value of the Portfolio is calculated based on the market values of the Underlying ETFs in which the Portfolio invests. For information about the use of fair value pricing by the Underlying ETFs, please refer to the prospectuses for such Underlying ETFs.

Investments in registered open-end management investment companies are valued at reported net asset value per share and are categorized as Level 1 within the fair value hierarchy.

Investment Transactions and Related Investment Income - The Portfolio’s security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Realized gains and losses on investments and unrealized appreciation and depreciation are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Capital gains distributions received from the Underlying ETFs are recorded as Net realized gain in the Statement of Operations.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due to capital gain dividend reclass. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

 

MIST-11

Met Investors Series Trust

SSgA Growth ETF Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The Trust has entered into a securities lending arrangement with the custodian, State Street Bank and Trust Company (the “custodian”). Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is disclosed in the footnotes to the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Due to the affiliation between the Portfolio’s subadviser, SSgA Funds Management, Inc., and the custodian, the Portfolio relies on an exemptive order issued by the Securities and Exchange Commission to the custodian, State Street Navigator Securities Lending Trust (“Navigator Trust”) and the SSgA Funds that permits certain registered investment companies, including the Portfolio, to use cash collateral from securities lending transactions to purchase shares of one of more series of Navigator Trust, including the Navigator Portfolio, and to pay fees based on a share of the revenue generated from securities lending transactions to the custodian.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio and the Underlying ETFs invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio and the Underlying ETFs may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio and the Underlying ETFs; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio and the Underlying ETFs may be exposed to counterparty risk, or the risk that an entity with which the Portfolio and the Underlying ETFs have unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio and the Underlying ETFs to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio and the Underlying ETFs manage counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio and the Underlying ETFs’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio and the Underlying ETFs restrict their exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom they undertake a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to setoff. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be off-set against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio and the Underlying ETFs in which it invests.

 

MIST-12

Met Investors Series Trust

SSgA Growth ETF Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 197,216,429       $ 0       $ 187,772,264   

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by MetLife Advisers, LLC (the “Adviser”), an affiliate of MetLife, Inc. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with SSgA Funds Management, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio. The Subadviser is an affiliate of State Street Bank and Trust Company, the administrator and custodian of the Trust.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Adviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$1,418,388      0.330 %    First $500 million
     0.300 %    Over $500 million

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

 

MIST-13

Met Investors Series Trust

SSgA Growth ETF Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

 

Underlying ETF/Security

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		  

SPDR Barclays High Yield Bond ETF

      1,638,600         147,500         (423,700 )      1,362,400   

SPDR Dow Jones International Real Estate ETF

      301,500         156,100         (115,800 )      341,800   

SPDR Gold Trust

      81,400         15,100         —        96,500   

SPDR S&P 500 ETF Trust

      1,916,800         28,600         (154,600 )      1,790,800   

SPDR S&P Dividend ETF

      716,600         263,400         (295,300 )      684,700   

SPDR S&P International Small Cap ETF

      903,600         297,800         (303,800 )      897,600   

SPDR S&P MidCap 400 ETF Trust

      186,400         —         (9,800 )      176,600   

State Street Navigator Securities Lending MET Portfolio

      —         1,248,658,362         (1,008,456,716 )      240,201,646   

State Street Navigator Securities Lending Prime Portfolio

      105,082,745         158,699,943         (263,782,688 )      —   

 

Underlying ETF/Security

    Net Realized
Gain/(Loss) on sales
of Affiliated
Investments		      Capital Gain
Distributions from
Affiliated
Investments		      Income from
Affiliated
Investments		      Ending Value
as of
June 30, 2013		  

SPDR Barclays High Yield Bond ETF

    $ 1,536,208       $ —       $ 1,654,502       $ 53,801,176   

SPDR Dow Jones International Real Estate ETF

      672,409         —         246,151         13,637,820   

SPDR Gold Trust

      —         —         —         11,497,975   

SPDR S&P 500 ETF Trust

      10,506,672         —         2,784,358         286,545,908   

SPDR S&P Dividend ETF

      3,706,103         —         435,123         45,395,610   

SPDR S&P International Small Cap ETF

      1,863,751         —         180,422         25,886,784   

SPDR S&P MidCap 400 ETF Trust

      417,963         —         217,788         37,153,108   

State Street Navigator Securities Lending MET Portfolio

      —         —         278,563         240,201,646   

State Street Navigator Securities Lending Prime Portfolio

      —         —         31,562         —   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 18,703,106       $ —       $ 5,828,469       $ 714,120,027   
  

 

 

     

 

 

     

 

 

     

 

 

  

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$19,010,744    $ 11,817,480       $ 27,415,221       $ —       $ 46,425,965       $ 11,817,480   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Total  
$22,839,595    $ 29,780,330       $ 77,994,396       $ 130,614,321   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-14

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Managed by T. Rowe Price Associates, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the T. Rowe Price Large Cap Value Portfolio returned 16.49% and 16.36%. The Portfolio’s benchmark, the Russell 1000 Value Index1, returned 15.90%.

MARKET ENVIRONMENT / CONDITIONS

U.S. equities soared in the first half of 2013, lifting several major indexes to multi-year or all-time highs by the end of May. The rally was supported by an improving economic and employment outlook despite federal tax increases and automatic spending cuts that went into effect during the first quarter. Investor sentiment was also lifted by good corporate earnings reports and accommodative monetary policies from major central banks. However, late in the period, stocks retreated from their best levels and long-term rates rose sharply, as the Federal Reserve signaled that it would begin tapering its asset purchases in the second half.

As measured by the Russell 1000, Russell 2000, Russell 3000 Value and Russell 3000 Growth, small-cap stocks outperformed large-caps, and value stocks outperformed growth among mid- and large-caps, while the opposite was true for small-caps.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio outperformed its Russell benchmark for the six months ended June 30, 2013. Overall, stock selection was responsible for the bulk of the outperformance, and sector allocations provided a small additional boost.

Industrials stocks were the greatest contributors to the Portfolio’s relative returns. Shares of Southwest Airlines climbed after back-to-back strong quarters of return on invested capital and successful integration of AirTran Airways. The company was also able to capitalize on declining oil prices. Railway operator Union Pacific’s stock spiked in the first quarter on solid earnings growth, despite poor coal and agricultural carload volumes.

Holdings in the Financials sector also lifted relative results. Rising interest rates were a positive force for Charles Schwab. The brokerage operator’s shares rose throughout May and June as investors anticipated growing income from its money market assets and margin loans, which are both leveraged to higher interest rates. Morgan Stanley’s shares dipped a bit in March after negative results in the latest round of Federal Reserve stress tests, but rose during the rest of the period. Investors responded favorably to the company’s focus on its global wealth management business.

Health Care stock selection detracted from the Portfolio’s relative returns. Shares of Covidien (Ireland) dropped in late April after the company issued a troubling outlook with quarterly earnings. Share price also reflected investor concerns about sluggish growth in U.S. medical devices and softness in the medical equipment manufacturer’s energy and vascular business lines. Biotechnology firm Amgen saw shares decline after somewhat disappointing guidance on several treatments under development late in the period.

At period end, the Portfolio is significantly overweight the benchmark in the Industrials sector, the focus is on companies with exposure to several different end markets and solid business models. The Portfolio’s largest positions in the sector are in the Aerospace and Defense industries.

At period end, the Financials sector represents a significant weighting in the Portfolio, primarily due to exposures in the Diversified Financial Services, Insurance, and Capital Markets industries. The sector rebounded strongly from the lows of the financial crisis, but valuations of selected Financials are reasonable.

The Portfolio’s primary exposure in the Health Care sector is to the Pharmaceuticals industry. In our opinion, pipelines appear to be improving, and several companies have strong cash flows and attractive dividends.

John D. Linehan

Brian C. Rogers

Mark S. Finn

Portfolio Managers

T. Rowe Price Associates, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-1

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 1000 VALUE INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year  
T. Rowe Price Large Cap Value Portfolio                      

Class A

        16.49           29.01           6.68           7.11   

Class B

        16.36           28.71           6.42           6.85   
Russell 1000 Value Index        15.90           25.32           6.67           7.79   

1 The Russell 1000 Value Index is an unmanaged measure of the largest capitalized U.S. domiciled companies with a less than average growth orientation. Companies in this Index generally have a low price-to-book and price-to-earnings ratio, higher dividend yields and lower forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
JPMorgan Chase & Co.      3.6   
Pfizer, Inc.      3.0   
Chevron Corp.      2.7   
Exxon Mobil Corp.      2.4   
AT&T, Inc.      2.3   
Merck & Co., Inc.      2.3   
Microsoft Corp.      2.3   
Cisco Systems, Inc.      2.1   
Bank of America Corp.      2.1   
Time Warner Cable, Inc.      2.1   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Financials      23.5   
Industrials      16.2   
Energy      12.7   
Health Care      11.2   
Consumer Discretionary      10.8   
Information Technology      7.7   
Utilities      5.8   
Consumer Staples      5.4   
Materials      4.3   
Telecommunication Services      2.4   

 

MIST-2

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

T. Rowe Price Large Cap Value Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

      Actual      0.56 %     $ 1,000.00         $ 1,164.90         $ 3.01   
     Hypothetical*      0.56 %     $ 1,000.00         $ 1,022.02         $ 2.81   

Class B(a)

      Actual      0.81 %     $ 1,000.00         $ 1,163.60         $ 4.35   
     Hypothetical*      0.81 %     $ 1,000.00         $ 1,020.78         $ 4.06   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

 

MIST-3

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—98.8% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—4.9%

    

Boeing Co. (The)

     281,800      $ 28,867,592   

Honeywell International, Inc.

     460,000        36,496,400   

Lockheed Martin Corp.

     134,300        14,566,178   

Raytheon Co.

     475,800        31,459,896   

United Technologies Corp.

     581,000        53,998,140   
   

 

 

  
      165,388,206   
   

 

 

  

Airlines—1.8%

    

Southwest Airlines Co.

     4,794,100        61,795,949   
   

 

 

  

Automobiles—1.7%

    

General Motors Co. (a)

     1,688,200        56,233,942   
   

 

 

  

Beverages—1.2%

    

PepsiCo, Inc.

     511,000        41,794,690   
   

 

 

  

Biotechnology—1.1%

    

Amgen, Inc.

     365,800        36,089,828   
   

 

 

  

Capital Markets—4.8%

    

Ameriprise Financial, Inc.

     323,700        26,180,856   

Charles Schwab Corp. (The) (b)

     1,410,900        29,953,407   

Goldman Sachs Group, Inc. (The)

     92,600        14,005,750   

Invesco, Ltd.

     939,600        29,879,280   

Morgan Stanley

     2,526,800        61,729,724   
   

 

 

  
      161,749,017   
   

 

 

  

Chemicals—1.8%

    

Celanese Corp. - Series A

     1,366,400        61,214,720   
   

 

 

  

Commercial Banks—4.3%

    

Fifth Third Bancorp

     1,636,800        29,544,240   

PNC Financial Services Group, Inc. (The)

     402,700        29,364,884   

U.S. Bancorp

     1,306,000        47,211,900   

Wells Fargo & Co.

     912,200        37,646,494   
   

 

 

  
      143,767,518   
   

 

 

  

Communications Equipment—2.1%

    

Cisco Systems, Inc.

     2,892,600        70,319,106   
   

 

 

  

Computers & Peripherals—1.0%

    

Dell, Inc.

     2,505,200        33,444,420   
   

 

 

  

Construction Materials—0.6%

    

Vulcan Materials Co.

     390,200        18,889,582   
   

 

 

  

Consumer Finance—2.3%

    

American Express Co.

     657,700        49,169,652   

SLM Corp.

     1,169,400        26,732,484   
   

 

 

  
      75,902,136   
   

 

 

  

Diversified Financial Services—5.7%

    

Bank of America Corp.

     5,464,700        70,276,042   

JPMorgan Chase & Co.

     2,291,000        120,941,890   
   

 

 

  
      191,217,932   
   

 

 

  

Diversified Telecommunication Services—2.3%

  

AT&T, Inc.

     2,232,500      $ 79,030,500   
   

 

 

  

Electric Utilities—2.2%

  

Entergy Corp.

     568,600        39,620,048   

Exelon Corp.

     1,128,300        34,841,904   
   

 

 

  
      74,461,952   
   

 

 

  

Electrical Equipment—0.6%

  

Emerson Electric Co.

     360,800        19,678,032   
   

 

 

  

Electronic Equipment, Instruments & Components—0.8%

  

TE Connectivity, Ltd.

     558,900        25,452,306   
   

 

 

  

Energy Equipment & Services—0.8%

  

Baker Hughes, Inc.

     568,400        26,220,292   
   

 

 

  

Food & Staples Retailing—0.8%

  

Wal-Mart Stores, Inc.

     344,600        25,669,254   
   

 

 

  

Food Products—0.8%

  

Kellogg Co.

     417,600        26,822,448   
   

 

 

  

Health Care Equipment & Supplies—1.2%

  

Covidien plc

     639,200        40,167,328   
   

 

 

  

Hotels, Restaurants & Leisure—0.9%

  

Carnival Corp.

     916,900        31,440,501   
   

 

 

  

Household Products—1.8%

  

Procter & Gamble Co. (The)

     764,900        58,889,651   
   

 

 

  

Independent Power Producers & Energy Traders—2.7%

  

AES Corp. (The)

     3,085,500        36,995,145   

NRG Energy, Inc.

     2,012,700        53,739,090   
   

 

 

  
      90,734,235   
   

 

 

  

Industrial Conglomerates—3.8%

  

3M Co.

     573,400        62,701,290   

General Electric Co.

     2,827,100        65,560,449   
   

 

 

  
      128,261,739   
   

 

 

  

Insurance—4.5%

  

Allstate Corp. (The)

     921,800        44,357,016   

Marsh & McLennan Cos., Inc.

     1,492,900        59,596,568   

Prudential Financial, Inc.

     185,700        13,561,671   

XL Group plc

     1,134,400        34,395,008   
   

 

 

  
      151,910,263   
   

 

 

  

IT Services—0.7%

  

Western Union Co. (The) (b)

     1,324,200        22,657,062   
   

 

 

  

Life Sciences Tools & Services—1.5%

  

Thermo Fisher Scientific, Inc. (b)

     586,400        49,627,032   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Machinery—1.5%

  

Illinois Tool Works, Inc.

     398,800      $ 27,584,996   

Ingersoll-Rand plc

     390,900        21,702,768   
   

 

 

  
      49,287,764   
   

 

 

  

Media—5.0%

  

Comcast Corp. - Class A

     501,900        21,019,572   

Comcast Corp. - Special Class A

     292,400        11,599,508   

Liberty Media Corp. - Class A (a)

     78,200        9,912,632   

Time Warner Cable, Inc.

     617,900        69,501,392   

Time Warner, Inc.

     988,400        57,149,288   
   

 

 

  
      169,182,392   
   

 

 

  

Metals & Mining—0.2%

  

Nucor Corp.

     191,600        8,300,112   
   

 

 

  

Multi-Utilities—0.8%

  

PG&E Corp.

     568,200        25,983,786   
   

 

 

  

Multiline Retail—1.4%

  

Kohl’s Corp. (b)

     958,800        48,428,988   
   

 

 

  

Oil, Gas & Consumable Fuels—11.7%

  

Apache Corp.

     625,100        52,402,133   

Chevron Corp.

     762,000        90,175,080   

CONSOL Energy, Inc.

     670,800        18,178,680   

EQT Corp.

     404,300        32,089,291   

Exxon Mobil Corp.

     906,000        81,857,100   

Hess Corp.

     507,600        33,750,324   

Murphy Oil Corp.

     163,100        9,931,159   

Newfield Exploration Co. (a)

     768,300        18,354,687   

Royal Dutch Shell plc (ADR)

     482,600        30,789,880   

Spectra Energy Corp.

     797,000        27,464,620   
   

 

 

  
      394,992,954   
   

 

 

  

Paper & Forest Products—1.6%

  

International Paper Co.

     1,212,600        53,730,306   
   

 

 

  

Personal Products—0.8%

  

Avon Products, Inc.

     1,288,500        27,097,155   
   

 

 

  

Pharmaceuticals—7.3%

  

Johnson & Johnson

     783,200        67,245,552   

Merck & Co., Inc.

     1,698,000        78,872,100   

Pfizer, Inc. (b)

     3,611,400        101,155,314   
   

 

 

  
      247,272,966   
   

 

 

  

Real Estate Investment Trusts—1.2%

  

Weyerhaeuser Co.

     1,442,200        41,088,278   
   

 

 

  

Real Estate Management & Development—0.5%

  

St. Joe Co. (The) (a) (b)

     768,300        16,172,715   
   

 

 

  

Road & Rail—3.4%

  

Canadian Pacific Railway, Ltd.

     390,700      $ 47,423,166   

Union Pacific Corp.

     438,700        67,682,636   
   

 

 

  
      115,105,802   
   

 

 

  

Semiconductors & Semiconductor Equipment—0.8%

  

Texas Instruments, Inc.

     734,800        25,622,476   
   

 

 

  

Software—2.3%

    

Microsoft Corp.

     2,263,300        78,151,749   
   

 

 

  

Specialty Retail—1.6%

    

Lowe’s Cos., Inc.

     1,352,200        55,304,980   
   

 

 

  

Total Common Stocks
(Cost $2,718,445,960)

       3,324,552,064   
   

 

 

  
Short-Term Investments—6.0%   

Mutual Funds—6.0%

    

State Street Navigator Securities Lending MET Portfolio (c)

     169,272,530        169,272,530   

T. Rowe Price Government Reserve Investment Fund (d)

     33,922,985        33,922,985   
   

 

 

  

Total Short-Term Investments
(Cost $203,195,515)

       203,195,515   
   

 

 

  

Total Investments—104.8%
(Cost $2,921,641,475) (e)

       3,527,747,579   

Other assets and liabilities (net)—(4.8)%

       (161,920,843 ) 
   

 

 

  
Net Assets—100.0%     $ 3,365,826,736   
   

 

 

  

 

(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $164,623,233 and the collateral received consisted of cash in the amount of $169,272,530. The cash collateral is invested in a money market fund managed by an affiliate of the custodian.
(c) Represents investment of cash collateral received from securities lending transactions.
(d) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(e) As of June 30, 2013, the aggregate cost of investments was $2,921,641,475. The aggregate unrealized appreciation and depreciation of investments were $673,161,196 and $(67,055,092), respectively, resulting in net unrealized appreciation of $606,106,104.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 3,324,552,064       $ —        $ —         $ 3,324,552,064   

Total Short-Term Investments*

      203,195,515         —          —           203,195,515   

Total Investments

    $ 3,527,747,579       $ —        $ —         $ 3,527,747,579   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (169,272,530 )    $ —         $ (169,272,530 ) 

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 3,493,824,594   

Affiliated investments at value (c)

      33,922,985   

Cash

      168,154   

Receivable for:

   

Investments sold

      6,525,983   

Fund shares sold

      249,704   

Dividends

      3,741,086   

Dividends on affiliated investments

      1,209   
  

 

 

  

Total Assets

      3,538,433,715   

Liabilities

   

Payables for:

   

Fund shares redeemed

      1,351,340   

Collateral for securities loaned

      169,272,530   

Accrued Expenses:

   

Management fees

      1,512,021   

Distribution and service fees

      206,445   

Deferred trustees’ fees

      41,001   

Other expenses

      223,642   
  

 

 

  

Total Liabilities

      172,606,979   
  

 

 

  

Net Assets

    $ 3,365,826,736   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 3,213,226,270   

Undistributed net investment income

      25,994,767   

Accumulated net realized loss

      (479,499,886 ) 

Unrealized appreciation on investments and foreign currency transactions

      606,105,585   
  

 

 

  

Net Assets

    $ 3,365,826,736   
  

 

 

  

Net Assets

   

Class A

    $ 2,371,423,422   

Class B

      994,403,314   

Capital Shares Outstanding*

   

Class A

      84,896,924   

Class B

      35,782,988   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 27.93   

Class B

      27.79   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $2,887,718,490.
(b) Includes securities loaned at value of $164,623,233.
(c) Identified cost of affiliated investments was $33,922,985.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 36,048,050   

Dividends from affiliated investments

      21,861   

Interest

      30   

Securities lending income

      219,134   
  

 

 

  

Total investment income

      36,289,075   

Expenses

   

Management fees

      9,104,472   

Administration fees

      40,068   

Custodian and accounting fees

      99,407   

Distribution and service fees—Class B

      1,220,148   

Audit and tax services

      19,511   

Legal

      9,660   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      68,882   

Insurance

      9,613   

Miscellaneous

      7,983   
  

 

 

  

Total expenses

      10,593,210   

Less management fee waiver

      (449,127 ) 

Less broker commission recapture

      (9,849 ) 
  

 

 

  

Net expenses

      10,134,234   
  

 

 

  

Net Investment Income

      26,154,841   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain (loss) on:   

Investments

      36,277,500   

Foreign currency transactions

      (569 ) 
  

 

 

  

Net realized gain

      36,276,931   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      415,404,392   

Foreign currency transactions

      (468 ) 
  

 

 

  

Net change in unrealized appreciation

      415,403,924   
  

 

 

  

Net realized and unrealized gain

      451,680,855   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 477,835,696   
  

 

 

  

 

(a) Net of foreign withholding taxes of $192,139.

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Statements of Changes in Net Assets

 

     Six Months

Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 26,154,841      $ 58,020,748   

Net realized gain

      36,276,931        9,476,717   

Net change in unrealized appreciation

      415,403,924        420,124,340   
  

 

 

    

 

 

  

Increase in net assets from operations

      477,835,696        487,621,805   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (41,431,830 )      (34,291,754 ) 

Class B

      (15,408,966 )      (13,047,031 ) 
  

 

 

    

 

 

  

Total distributions

      (56,840,796 )      (47,338,785 ) 
  

 

 

    

 

 

  

Increase (decrease) in net assets from capital share transactions

      21,704,480        (323,336,976 ) 
  

 

 

    

 

 

  

Total Increase in Net Assets

      442,699,380        116,946,044   

Net Assets

     

Beginning of period

      2,923,127,356        2,806,181,312   
  

 

 

    

 

 

  

End of period

    $ 3,365,826,736      $ 2,923,127,356   
  

 

 

    

 

 

  

Undistributed Net Investment Income

     

End of period

    $ 25,994,767      $ 56,680,722   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      6,100,742      $ 167,210,300        1,067,434      $ 23,688,948   

Reinvestments

      1,567,013        41,431,830        1,542,589        34,291,754   

Redemptions

      (5,450,488 )      (146,317,960 )      (11,473,969 )      (265,232,162 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      2,217,267      $ 62,324,170        (8,863,946 )    $ (207,251,460 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,590,851      $ 41,989,451        2,262,685      $ 50,869,366   

Reinvestments

      585,447        15,408,966        589,563        13,047,031   

Redemptions

      (3,643,156 )      (98,018,107 )      (7,938,289 )      (180,001,913 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,466,858 )    $ (40,619,690 )      (5,086,041 )    $ (116,085,516 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase (decrease) derived from capital shares transactions

      $ 21,704,480        $ (323,336,976 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Financial Highlights

 

Selected per share data  
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 24.42      $ 21.00       $ 22.00       $ 18.97       $ 16.44       $ 28.89   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.23        0.47         0.42         0.18         0.22         0.43   

Net realized and unrealized gain (loss) on investments

      3.77        3.33         (1.23 )       3.10         2.73         (9.93 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      4.00        3.80         (0.81 )       3.28         2.95         (9.50 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.49 )      (0.38 )       (0.19 )       (0.25 )       (0.42 )       (0.44 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (2.51 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.49 )      (0.38 )       (0.19 )       (0.25 )       (0.42 )       (2.95 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 27.93      $ 24.42       $ 21.00       $ 22.00       $ 18.97       $ 16.44   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      16.49  (c)      18.27         (3.77 )       17.33         18.67         (36.19 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.59  (d)      0.59         0.58         0.55         0.56         0.53   

Net ratio of expenses to average net assets (%) (e)

      0.56  (d)      0.56         0.56         0.55         0.56         0.52   

Ratio of net investment income to average net assets (%)

      1.71  (d)      2.06         1.96         0.92         1.38         1.92   

Portfolio turnover rate (%)

      10  (c)      15         104         54         84         112   

Net assets, end of period (in millions)

    $ 2,371.4      $ 2,019.1       $ 1,922.6       $ 1,262.3       $ 1,140.8       $ 1,546.8   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 24.27      $ 20.87       $ 21.87       $ 18.87       $ 16.33       $ 28.69   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.19        0.41         0.33         0.13         0.16         0.37   

Net realized and unrealized gain (loss) on investments

      3.76        3.31         (1.20 )       3.07         2.74         (9.86 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      3.95        3.72         (0.87 )       3.20         2.90         (9.49 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.43 )      (0.32 )       (0.13 )       (0.20 )       (0.36 )       (0.36 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         0.00         (2.51 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.43 )      (0.32 )       (0.13 )       (0.20 )       (0.36 )       (2.87 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 27.79      $ 24.27       $ 20.87       $ 21.87       $ 18.87       $ 16.33   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      16.36  (c)      17.98         (4.01 )       17.02         18.39         (36.33 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.84  (d)      0.84         0.83         0.80         0.81         0.78   

Net ratio of expenses to average net assets (%) (e)

      0.81  (d)      0.81         0.81         0.80         0.81         0.77   

Ratio of net investment income to average net assets (%)

      1.46  (d)      1.81         1.52         0.67         1.00         1.66   

Portfolio turnover rate (%)

      10  (c)      15         104         54         84         112   

Net assets, end of period (in millions)

    $ 994.4      $ 904.1       $ 883.6       $ 1,017.8       $ 940.4       $ 837.4   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is T. Rowe Price Large Cap Value Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-10

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due

 

MIST-11

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

to broker commission recapture, capital gain distributions from real estate investment trusts (REITs), return of capital adjustments and foreign currency transactions. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist

 

MIST-12

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 357,824,963       $ 0       $ 321,529,111   

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $109,361,753 in purchases of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with T. Rowe Price Associates, Inc. (the “Subadviser”), for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the term’s of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee at the annual rate of the Portfolio’s daily net assets that is calculated according to the fee schedule set forth in the table below. If the assets of the Portfolio cross a threshold in reverse (i.e., decline below a threshold), then the absolute dollar fee payable by the Portfolio to the Adviser shall not be more than the minimum fee payable at the immediately higher threshold. When the Portfolio’s assets cross a threshold in reverse, the fee payable to the Adviser shall be calculated according to the footnotes immediately following the table below.

 

Assets

    Asset Range
$0 to
$100,000,0001		     Asset Range
$100,000,000 to
$200,000,0002		   Asset Range
$200,000,000 to
$500,000,0003		   Asset Range
$500,000,000 to
$1,000,000,0004		   Asset Range
$1,000,000,000
And Up
First $50,000,000      0.750 %    0.650%   0.620%   0.595%   0.570%
Next $50,000,000      0.700 %    0.650%   0.620%   0.595%   0.570%
Next $100,000,000      N/A      0.650%   0.620%   0.595%   0.570%
Next $300,000,000      N/A      N/A   0.620%   0.595%   0.570%
Next $500,000,000      N/A      N/A   N/A   0.570%   0.570%
Excess over $1,000,000,000      N/A      N/A   N/A   N/A   0.570%

 

1  When the Portfolio’s net assets decline below $100 million, the fee payable to the Adviser shall be the lower of (1) the fee on the Portfolio’s daily net assets calculated at 0.750% of the first $50 million of such assets plus 0.700% of such assets over $50 million up to $100 million and (2) the fee on $100 million calculated at a flat rate of 0.650%.
2  When the Portfolio’s net assets decline below $200 million but are over $100 million, the fee payable to the Adviser shall be the lower of (1) the fee on the Portfolio’s daily net assets calculated at a flat rate of 0.650% and (2) the fee on $200 million calculated at a flat rate of 0.620%.
3  When the Portfolio’s net assets decline below $500 million but are over $200 million, the fee payable to the Adviser shall be the lower of (1) the fee on the Portfolio’s daily net assets calculated at a flat rate of 0.620% and (2) the fee on $500 million calculated at a flat rate of 0.595%.

 

MIST-13

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

4  When the Portfolio’s net assets decline below $1 billion but are over $500 million, the fee payable to the Adviser shall be the lower of (1) the fee on the Portfolio’s daily net assets calculated at 0.595% of the first $500 million of such assets plus 0.570% of such assets over $500 million up to $1 billion and (2) the fee on $1 billion calculated at a flat rate of 0.570%.

For the six months ended June 30, 2013, the Adviser earned management fees in the amount of $9,104,472 for managing the Portfolio.

Management Fee Waiver - The Subadviser has agreed to a voluntary subadvisory fee waiver that applies if (i) assets under management by the Subadviser for the Trust and Metropolitan Series Fund (“MSF”) in the aggregate exceed $750,000,000, (ii) the Subadviser subadvises three or more portfolios of the Trust and MSF in the aggregate and (iii) at least one of those portfolios is a large cap domestic equity portfolio. The Adviser has voluntarily agreed to reduce its management fee for the Portfolio by the amount waived (if any) by the Subadviser for the Portfolio pursuant to this voluntary subadvisory fee waiver. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

The subadvisory fee waiver schedule for the period January 1 through June 30, 2013 was:

 

Percentage Fee Waiver

    Combined Assets
0.0%    First $750 million
5.0%    Next $750 million
7.5%    Next $1.5 billion
10.0%    Excess over $3 billion

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

 

Security Description

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		      Income earned
from affiliates
during the period		  

T. Rowe Price Government Reserve Investment Fund

      75,363,231         161,996,837         (203,437,083 )      33,922,985       $ 21,861   

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of

 

MIST-14

Met Investors Series Trust

T. Rowe Price Large Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$47,338,785    $ 16,680,992       $ —       $ —       $ 47,338,785       $ 16,680,992   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed

Ordinary

Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$56,716,348    $ —       $ 174,683,989       $ (499,759,143 )    $ (268,358,806 ) 

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2017 were $499,759,143.

 

MIST-15

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Managed by T. Rowe Price Associates, Inc.

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A, B, and E shares of the T. Rowe Price Mid Cap Growth Portfolio returned 15.01%, 14.85%, and 14.83%, respectively. The Portfolio’s benchmark, the Russell Midcap Growth Index1, returned 14.70%.

MARKET ENVIRONMENT / CONDITIONS

U.S. equities soared in the first half of 2013, lifting several major indexes to multi-year or all-time highs by the end of May. The rally was supported by an improving economic and employment outlook despite federal tax increases and automatic spending cuts that went into effect during the first quarter. Investor sentiment was also lifted by good corporate earnings reports and accommodative monetary policies from major central banks. However, late in the period, stocks retreated from their best levels and long-term rates rose sharply, as the Federal Reserve signaled that it would begin tapering its asset purchases in the second half.

Small-cap stocks outperformed large-caps. As measured by Russell indexes, value stocks outperformed growth among mid- and large-caps, while the opposite was true for small-caps.

PORTFOLIO REVIEW / PERIOD END POSITIONING

The Portfolio outperformed its Russell benchmark for the six months ended June 30, 2013. Broadly speaking, stock selection was responsible for the outperformance, while sector allocations were negative on balance.

Stock selection in the Financials sector contributed to relative performance. TD Ameritrade Holding saw an increase in its client asset base and effectively controlled expenses. Rising interest rates also bode well for the discount broker’s prospects. Options and futures exchange operator CBOE Holdings reported solid earnings on continued cost control efforts and increased volume in proprietary volatility and Standard and Poor’s 500 option products.

Prudent stock picks in the Information Technology sphere boosted relative returns. Cree benefited from increasing demand for its lighting products, as individuals and businesses alike seek to reduce electricity costs. We believe Information Technology Services company Gartner has an attractive business model and dominant position in the growing research and consulting segment.

Weak stock selection in the Materials sector detracted from relative performance, particularly in the Metals and Mining industry. Agnico-Eagle Mines (Canada) suffered along with other gold-mining firms as gold prices fell. Falling gold prices also hampered gold-focused royalty and investment company Franco-Nevada (Canada).

Industrials holdings detracted from relative results, due to adverse stock selection and a detrimental overweight to the sector. McDermott International is a global engineering and construction firm focused in the offshore oil and natural gas industry. The firm had poor project execution that resulted in project-related charges. Shares of specialized contracting services provider Quanta Services fell after negative news about the firm’s natural gas pipeline business.

Generally speaking, the Financials sector does not represent a major investment area for the Portfolio. At period end, the Portfolio’s largest exposures are in the Insurance and Diversified Financial Services industries.

The Information Technology sector has several positive secular trends. At period end, we are particularly focused on companies with new technologies and the potential to create competitive advantages with them.

At period end, we find limited growth opportunities in the Materials sector; consequently, it typically represents a very small area of investment for the Portfolio. Currently, the Portfolio has small allocations to the Metals and Mining and Chemicals industries as of period end.

In the Industrials sector, we favor well-run companies with exposure to high-growth end markets, and we believe we are still in the early stages of a manufacturing rebound. Towards period end, we trimmed our exposure in this sector to moderate some cyclical effects within the Portfolio.

Brian W.H. Berghuis

Portfolio Manager

T. Rowe Price Associates, Inc.

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-1

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL MIDCAP GROWTH INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year  
T. Rowe Price Mid Cap Growth Portfolio                      

Class A

        15.01           21.78           9.30           11.26   

Class B

        14.85           21.46           9.02           10.96   

Class E

        14.83           21.47           9.11           11.08   
Russell Midcap Growth Index        14.70           22.88           7.61           9.94   

1 The Russell Midcap Growth Index is an unmanaged measure of performance of those Russell Midcap companies (the 800 smallest companies in the Russell 1000 Index) with higher price-to-book ratios and higher forecasted growth values.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class B shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
CarMax, Inc.      1.7   
IHS, Inc. - Class A      1.7   
Fiserv, Inc.      1.5   
Laboratory Corp. of America Holdings      1.5   
DENTSPLY International, Inc.      1.4   
Calpine Corp.      1.4   
EQT Corp.      1.4   
Covance, Inc.      1.3   
Charter Communications, Inc. - Class A      1.3   
Manpowergroup, Inc.      1.3   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Industrials      22.1   
Information Technology      19.2   
Health Care      19.1   
Consumer Discretionary      16.2   
Financials      8.7   
Energy      6.2   
Consumer Staples      3.6   
Materials      3.4   
Utilities      1.5   

 

MIST-2

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

T. Rowe Price Mid Cap Growth Portfolio

           Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

      Actual      0.75 %     $ 1,000.00         $ 1,150.10         $ 4.00   
     Hypothetical*      0.75 %     $ 1,000.00         $ 1,021.08         $ 3.76   

Class B(a)

      Actual      1.00 %     $ 1,000.00         $ 1,148.50         $ 5.33   
     Hypothetical*      1.00 %     $ 1,000.00         $ 1,019.84         $ 5.01   

Class E(a)

      Actual      0.90 %     $ 1,000.00         $ 1,148.30         $ 4.79   
     Hypothetical*      0.90 %     $ 1,000.00         $ 1,020.33         $ 4.51   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 5 of the Notes to Financial Statements.

 

MIST-3

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—95.6% of Net Assets

 

Security Description   Shares     Value  
   

Aerospace & Defense—1.3%

    

Textron, Inc.

     841,000      $ 21,908,050   
   

 

 

  

Airlines—0.4%

    

Alaska Air Group, Inc. (a)

     136,000        7,072,000   
   

 

 

  

Automobiles—1.1%

    

Harley-Davidson, Inc.

     212,000        11,621,840   

Tesla Motors, Inc. (a) (b)

     59,000        6,338,370   
   

 

 

  
      17,960,210   
   

 

 

  

Biotechnology—4.9%

    

Alexion Pharmaceuticals, Inc. (a)

     111,000        10,238,640   

Alkermes plc (a)

     435,000        12,475,800   

Cubist Pharmaceuticals, Inc. (a)

     86,000        4,153,800   

Elan Corp. plc (ADR) (a) (b)

     484,000        6,843,760   

Incyte Corp., Ltd. (a) (b)

     193,000        4,246,000   

Onyx Pharmaceuticals, Inc. (a) (b)

     86,000        7,466,520   

Pharmacyclics, Inc. (a)

     55,000        4,370,850   

Quintiles Transnational Holdings, Inc. (a)

     30,000        1,276,800   

Regeneron Pharmaceuticals, Inc. (a)

     57,000        12,818,160   

Theravance, Inc. (a) (b)

     234,000        9,016,020   

Vertex Pharmaceuticals, Inc. (a)

     128,000        10,223,360   
   

 

 

  
      83,129,710   
   

 

 

  

Capital Markets—1.7%

    

Charles Schwab Corp. (The) (b)

     493,000        10,466,390   

TD Ameritrade Holding Corp. (b)

     722,000        17,537,380   
   

 

 

  
      28,003,770   
   

 

 

  

Chemicals—1.5%

    

Celanese Corp. - Series A

     256,000        11,468,800   

Rockwood Holdings, Inc.

     214,000        13,702,420   
   

 

 

  
      25,171,220   
   

 

 

  

Commercial Banks—0.6%

    

BankUnited, Inc.

     84,000        2,184,840   

TCF Financial Corp. (b)

     553,000        7,841,540   
   

 

 

  
      10,026,380   
   

 

 

  

Commercial Services & Supplies—1.0%

    

Clean Harbors, Inc. (a) (b)

     80,000        4,042,400   

Waste Connections, Inc. (b)

     300,000        12,342,000   
   

 

 

  
      16,384,400   
   

 

 

  

Communications Equipment—2.1%

    

JDS Uniphase Corp. (a)

     1,261,000        18,133,180   

Motorola Solutions, Inc.

     294,000        16,972,620   
   

 

 

  
      35,105,800   
   

 

 

  

Computers & Peripherals—0.4%

    

SanDisk Corp. (a)

     106,000        6,476,600   
   

 

 

  

Construction & Engineering—1.3%

    

Quanta Services, Inc. (a)

     801,000        21,194,460   
   

 

 

  

Construction Materials—0.5%

    

Martin Marietta Materials, Inc. (b)

     82,000      $ 8,070,440   
   

 

 

  

Containers & Packaging—0.2%

    

Ball Corp.

     92,000        3,821,680   
   

 

 

  

Diversified Financial Services—2.4%

    

CBOE Holdings, Inc.

     342,000        15,950,880   

IntercontinentalExchange, Inc. (a)

     62,000        11,021,120   

MSCI, Inc. (a)

     423,000        14,073,210   
   

 

 

  
      41,045,210   
   

 

 

  

Electrical Equipment—4.5%

    

Acuity Brands, Inc. (b)

     117,000        8,835,840   

AMETEK, Inc.

     441,000        18,654,300   

Babcock & Wilcox Co. (The)

     666,000        19,999,980   

Roper Industries, Inc.

     169,000        20,993,180   

Sensata Technologies Holding NV (a)

     242,000        8,445,800   
   

 

 

  
      76,929,100   
   

 

 

  

Electronic Equipment, Instruments & Components—0.8%

  

IPG Photonics Corp. (b)

     107,000        6,498,110   

Trimble Navigation, Ltd. (a)

     298,000        7,750,980   
   

 

 

  
      14,249,090   
   

 

 

  

Energy Equipment & Services—0.4%

    

McDermott International, Inc. (a) (b)

     884,000        7,231,120   
   

 

 

  

Food & Staples Retailing—0.9%

    

Fresh Market, Inc. (The) (a) (b)

     77,000        3,828,440   

Whole Foods Market, Inc.

     212,000        10,913,760   
   

 

 

  
      14,742,200   
   

 

 

  

Food Products—2.6%

    

Dean Foods Co. (a)

     765,200        7,667,304   

Green Mountain Coffee Roasters, Inc. (a) (b)

     230,000        17,263,800   

TreeHouse Foods, Inc. (a)

     171,000        11,207,340   

WhiteWave Foods Co. - Class A (a) (b)

     215,000        3,493,750   

WhiteWave Foods Co. - Class B (a)

     294,000        4,468,800   
   

 

 

  
      44,100,994   
   

 

 

  

Health Care Equipment & Supplies—5.0%

    

CareFusion Corp. (a)

     526,000        19,383,100   

Cooper Cos., Inc. (The)

     102,000        12,143,100   

DENTSPLY International, Inc. (b)

     593,000        24,289,280   

Edwards Lifesciences Corp. (a) (b)

     72,000        4,838,400   

IDEXX Laboratories, Inc. (a) (b)

     180,000        16,160,400   

Teleflex, Inc.

     106,000        8,213,940   
   

 

 

  
      85,028,220   
   

 

 

  

Health Care Providers & Services—4.4%

    

Catamaran Corp. (a)

     191,000        9,305,520   

Henry Schein, Inc. (a) (b)

     170,000        16,277,500   

Laboratory Corp. of America Holdings (a) (b)

     254,000        25,425,400   

MEDNAX, Inc. (a)

     106,000        9,707,480   

Universal Health Services, Inc. - Class B

     203,000        13,592,880   
   

 

 

  
      74,308,780   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-4

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Schedule of Investments as of June 30, 2013

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Hotels, Restaurants & Leisure—3.6%

    

Chipotle Mexican Grill, Inc. (a)

     17,000      $ 6,193,950   

Choice Hotels International, Inc. (b)

     219,000        8,692,110   

Marriott International, Inc. - Class A

     337,000        13,604,690   

Norwegian Cruise Line Holdings, Ltd. (a)

     255,000        7,729,050   

Panera Bread Co. - Class A (a) (b)

     47,000        8,739,180   

SeaWorld Entertainment, Inc.

     86,000        3,018,600   

Tim Hortons, Inc.

     255,000        13,803,150   
   

 

 

  
      61,780,730   
   

 

 

  

Household Durables—0.1%

    

Harman International Industries, Inc.

     31,400        1,701,880   
   

 

 

  

Independent Power Producers & Energy Traders—1.4%

  

Calpine Corp. (a)

     1,106,000        23,480,380   
   

 

 

  

Insurance—3.1%

    

Fidelity National Financial, Inc. - Class A

     586,000        13,952,660   

HCC Insurance Holdings, Inc.

     340,000        14,657,400   

Progressive Corp. (The)

     557,000        14,158,940   

Willis Group Holdings plc (b)

     256,000        10,439,680   
   

 

 

  
      53,208,680   
   

 

 

  

Internet & Catalog Retail—2.1%

    

Groupon, Inc. (a)

     916,000        7,786,000   

Liberty Interactive Corp. - Class A (a)

     255,000        5,867,550   

Netflix, Inc. (a) (b)

     52,000        10,976,680   

TripAdvisor, Inc. (a) (b)

     183,000        11,139,210   
   

 

 

  
      35,769,440   
   

 

 

  

Internet Software & Services—2.3%

    

Akamai Technologies, Inc. (a)

     425,000        18,083,750   

LinkedIn Corp. - Class A (a)

     31,000        5,527,300   

VeriSign, Inc. (a) (b)

     335,000        14,961,100   
   

 

 

  
      38,572,150   
   

 

 

  

IT Services—5.0%

    

Amdocs, Ltd.

     550,000        20,399,500   

CoreLogic, Inc. (a)

     22,600        523,642   

Fiserv, Inc. (a)

     294,000        25,698,540   

Gartner, Inc. (a)

     340,000        19,376,600   

Global Payments, Inc. (b)

     212,000        9,819,840   

Vantiv, Inc. - Class A (a)

     339,000        9,356,400   
   

 

 

  
      85,174,522   
   

 

 

  

Life Sciences Tools & Services—3.4%

    

Agilent Technologies, Inc.

     338,000        14,452,880   

Bruker Corp. (a)

     638,000        10,303,700   

Covance, Inc. (a) (b)

     291,000        22,156,740   

Illumina, Inc. (a) (b)

     103,000        7,708,520   

Mettler-Toledo International, Inc. (a) (b)

     19,000        3,822,800   
   

 

 

  
      58,444,640   
   

 

 

  

Machinery—4.5%

    

Colfax Corp. (a) (b)

     226,000        11,776,860   

Machinery—(Continued)

    

IDEX Corp.

     383,000      $ 20,609,230   

Nordson Corp.

     81,000        5,614,110   

Pall Corp.

     326,000        21,656,180   

Rexnord Corp. (a) (b)

     186,000        3,134,100   

WABCO Holdings, Inc. (a)

     191,000        14,265,790   
   

 

 

  
      77,056,270   
   

 

 

  

Media—1.6%

    

Charter Communications, Inc. - Class A (a) (b)

     178,000        22,045,300   

Discovery Communications, Inc. - Class C (a)

     64,000        4,458,240   
   

 

 

  
      26,503,540   
   

 

 

  

Metals & Mining—1.0%

    

Agnico-Eagle Mines, Ltd. (b)

     299,000        8,234,460   

Franco-Nevada Corp.

     255,000        9,128,791   
   

 

 

  
      17,363,251   
   

 

 

  

Multiline Retail—2.8%

    

Dollar General Corp. (a)

     382,000        19,264,260   

Dollar Tree, Inc. (a)

     269,000        13,675,960   

Kohl’s Corp.

     294,000        14,849,940   
   

 

 

  
      47,790,160   
   

 

 

  

Oil, Gas & Consumable Fuels—5.5%

    

Concho Resources, Inc. (a)

     101,000        8,455,720   

EQT Corp.

     295,000        23,414,150   

Laredo Petroleum Holdings, Inc. (a) (b)

     84,000        1,727,040   

Pioneer Natural Resources Co.

     85,000        12,303,750   

Range Resources Corp.

     274,000        21,185,680   

SM Energy Co.

     294,000        17,634,120   

Southwestern Energy Co. (a)

     257,000        9,388,210   
   

 

 

  
      94,108,670   
   

 

 

  

Pharmaceuticals—0.5%

    

Valeant Pharmaceuticals International, Inc. (a)

     106,000        9,124,480   
   

 

 

  

Professional Services—4.7%

    

Equifax, Inc.

     248,000        14,614,640   

IHS, Inc. - Class A (a)

     271,000        28,286,980   

Manpowergroup, Inc.

     402,000        22,029,600   

Verisk Analytics, Inc. - Class A (a)

     241,000        14,387,700   
   

 

 

  
      79,318,920   
   

 

 

  

Real Estate Management & Development—0.5%

  

Jones Lang LaSalle, Inc.

     97,000        8,840,580   
   

 

 

  

Road & Rail—2.3%

    

Hertz Global Holdings, Inc. (a)

     518,000        12,846,400   

J.B. Hunt Transport Services, Inc.

     174,000        12,569,760   

Kansas City Southern

     127,000        13,456,920   
   

 

 

  
      38,873,080   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Schedule of Investments as of June 30, 2013

Common Stocks—(Continued)

 

Security Description   Shares     Value  

Semiconductors & Semiconductor Equipment—3.5%

  

Altera Corp.

     329,000      $ 10,853,710   

Atmel Corp. (a) (b)

     1,357,000        9,973,950   

Avago Technologies, Ltd.

     212,000        7,924,560   

Cree, Inc. (a) (b)

     126,000        8,046,360   

Intersil Corp. - Class A

     34,000        265,880   

Microchip Technology, Inc. (b)

     212,000        7,897,000   

Xilinx, Inc.

     382,000        15,131,020   
   

 

 

  
      60,092,480   
   

 

 

  

Software—4.2%

    

Concur Technologies, Inc. (a) (b)

     170,000        13,834,600   

FactSet Research Systems, Inc. (b)

     170,000        17,329,800   

Red Hat, Inc. (a)

     383,000        18,315,060   

ServiceNow, Inc. (a) (b)

     232,000        9,370,480   

TIBCO Software, Inc. (a)

     148,000        3,167,200   

Workday, Inc. - Class A (a)

     134,000        8,588,060   
   

 

 

  
      70,605,200   
   

 

 

  

Specialty Retail—4.3%

    

AutoZone, Inc. (a)

     42,000        17,794,980   

CarMax, Inc. (a)

     613,000        28,296,080   

DSW, Inc. - Class A

     129,000        9,477,630   

O’Reilly Automotive, Inc. (a)

     148,000        16,667,760   
   

 

 

  
      72,236,450   
   

 

 

  

Trading Companies & Distributors—1.2%

  

Fastenal Co.

     447,000        20,494,950   
   

 

 

  

Total Common Stocks
(Cost $1,167,810,292)

       1,622,499,887   
   

 

 

  
Convertible Preferred Stocks—0.1%   

Internet Software & Services—0.1%

  

Coupons.com, Inc., Series B (a) (c) (d)

     592,662        1,622,412   

LivingSocial, Inc., Series E (a) (c) (d)

     757,490        439,344   
   

 

 

  

Total Convertible Preferred Stocks
(Cost $7,536,276)

       2,061,756   
   

 

 

  
Short-Term Investments—20.9%   
Security Description   Shares     Value  

Mutual Funds—20.9%

    

State Street Navigator Securities Lending MET Portfolio (e)

     289,410,554      $ 289,410,554   

T. Rowe Price Government Reserve Investment Fund (f)

     66,016,547        66,016,547   
   

 

 

  

Total Short-Term Investments
(Cost $355,427,101)

       355,427,101   
   

 

 

  

Total Investments—116.6%
(Cost $1,530,773,669) (g)

       1,979,988,744   

Other assets and liabilities (net)—(16.6)%

       (281,606,393 ) 
   

 

 

  
Net Assets—100.0%     $ 1,698,382,351   
   

 

 

  

 

(a) Non-income producing security.
(b) All or a portion of the security was held on loan. As of June 30, 2013, the market value of securities loaned was $282,660,304 and the collateral received consisted of cash in the amount of $289,410,554 and non-cash collateral with a value of $355,839. The cash collateral is invested in a money market fund managed by an affiliate of the custodian. The non-cash collateral received consists primarily of government securities and bank letters of credit, and is held for the benefit of the Portfolio at the Portfolio’s custodian. The Portfolio cannot repledge or resell this collateral. As such, this collateral is excluded from the Statement of Assets and Liabilities.
(c) Security was valued in good faith under procedures approved by the Board of Trustees. As of June 30, 2013, these securities represent 0.1% of net assets.
(d) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. As of June 30, 2013, the market value of restricted securities was $2,061,756, which is 0.1% of net assets. See details shown in the Restricted Securities table that follows.
(e) Represents investment of cash collateral received from securities lending transactions.
(f) Affiliated Issuer. (See Note 6 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(g) As of June 30, 2013, the aggregate cost of investments was $1,530,773,669. The aggregate unrealized appreciation and depreciation of investments were $471,755,366 and $(22,540,291), respectively, resulting in net unrealized appreciation of $449,215,075.
(ADR)— An American Depositary Receipt is a certificate issued by a custodian bank representing the right to receive securities of the foreign issuer described. Trading on exchanges not located in the United States or Canada significantly influences the value of ADRs.

 

Restricted Securities

    Acquisition
Date		      Shares      Cost      Value  

Coupons.com, Inc., Series B

      06/01/11         592,662       $ 3,255,700       $ 1,622,412   

LivingSocial, Inc., Series E

      04/01/11         757,490         4,280,576         439,344   

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Schedule of Investments as of June 30, 2013

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2     Level 3      Total  

Total Common Stocks*

    $ 1,622,499,887       $ —        $ —         $ 1,622,499,887   

Total Convertible Preferred Stocks*

      —           —          2,061,756         2,061,756   

Total Short-Term Investments*

      355,427,101         —          —           355,427,101   

Total Investments

    $ 1,977,926,988       $ —        $ 2,061,756       $ 1,979,988,744   
                                    

Collateral for securities loaned (Liability)

    $ —         $ (289,410,554 )    $ —         $ (289,410,554 ) 

 

* See Schedule of Investments for additional detailed categorizations.

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

 

Investments in Securities

   Balance as of
December 31,
2012		     Change in
Unrealized
Appreciation		     Sales     Balance
as of
June 30,
2013		     Change in Unrealized
Appreciation from
investments still
held at
June 30, 2013		  
Convertible Preferred Stocks          

Internet Software & Services

   $ 1,857,234     $ 204,522     $ —        $ 2,061,756     $ 204,522  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a) (b)

    $ 1,913,972,197   

Affiliated investments at value (c)

      66,016,547   

Cash

      13,005   

Receivable for:

   

Investments sold

      14,571,559   

Fund shares sold

      210,997   

Dividends

      457,204   

Dividends on affiliated investments

      1,998   
  

 

 

  

Total Assets

      1,995,243,507   

Liabilities

   

Payables for:

   

Investments purchased

      4,856,661   

Fund shares redeemed

      1,172,012   

Collateral for securities loaned

      289,410,554   

Accrued Expenses:

   

Management fees

      1,013,352   

Distribution and service fees

      199,344   

Deferred trustees’ fees

      41,001   

Other expenses

      168,232   
  

 

 

  

Total Liabilities

      296,861,156   
  

 

 

  

Net Assets

    $ 1,698,382,351   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,173,957,230   

Accumulated net investment loss

      (9,537,241 ) 

Accumulated net realized gain

      84,747,287   

Unrealized appreciation on investments

      449,215,075   
  

 

 

  

Net Assets

    $ 1,698,382,351   
  

 

 

  

Net Assets

   

Class A

    $ 726,054,439   

Class B

      953,142,673   

Class E

      19,185,239   

Capital Shares Outstanding*

   

Class A

      70,370,324   

Class B

      95,907,893   

Class E

      1,900,824   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 10.32   

Class B

      9.94   

Class E

      10.09   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Includes securities loaned at value of $282,660,304.
(b) Identified cost of investments, excluding affiliated investments, was $1,464,757,122.
(c) Identified cost of affiliated investments was $66,016,547.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 4,597,011   

Dividends from affiliated investments

      19,415   

Securities lending income

      463,569   
  

 

 

  

Total investment income

      5,079,995   

Expenses

   

Management fees

      6,188,861   

Administration fees

      20,779   

Custodian and accounting fees

      80,126   

Distribution and service fees—Class B

      1,169,785   

Distribution and service fees—Class E

      14,004   

Audit and tax services

      21,851   

Legal

      9,727   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      44,805   

Insurance

      5,037   

Miscellaneous

      9,432   
  

 

 

  

Total expenses

      7,577,873   

Less management fee waiver

      (231,977 ) 

Less broker commission recapture

      (21,662 ) 
  

 

 

  

Net expenses

      7,324,234   
  

 

 

  

Net Investment Loss

      (2,244,239 ) 
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain (loss) on:   

Investments

      87,180,061   

Foreign currency transactions

      (1,383 ) 
  

 

 

  

Net realized gain

      87,178,678   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      142,437,579   

Foreign currency transactions

      (11 ) 
  

 

 

  

Net change in unrealized appreciation

      142,437,568   
  

 

 

  

Net realized and unrealized gain

      229,616,246   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 227,372,007   
  

 

 

  

 

(a) Net of foreign withholding taxes of $50,672.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income (loss)

    $ (2,244,239 )    $ 396,445   

Net realized gain

      87,178,678        95,986,329   

Net change in unrealized appreciation

      142,437,568        94,600,735   
  

 

 

    

 

 

  

Increase in net assets from operations

      227,372,007        190,983,509   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (3,065,921 )      0   

Class B

      (2,035,733 )      0   

Class E

      (54,848 )      0   

Net realized capital gains

     

Class A

      (37,881,161 )      (78,684,520 ) 

Class B

      (51,448,533 )      (111,997,476 ) 

Class E

      (1,016,517 )      (2,439,287 ) 
  

 

 

    

 

 

  

Total distributions

      (95,502,713 )      (193,121,283 ) 
  

 

 

    

 

 

  

Increase in net assets from capital share transactions

      32,678,862        131,899,953   
  

 

 

    

 

 

  

Total Increase in Net Assets

      164,548,156        129,762,179   

Net Assets

     

Beginning of period

      1,533,834,195        1,404,072,016   
  

 

 

    

 

 

  

End of period

    $ 1,698,382,351      $ 1,533,834,195   
  

 

 

    

 

 

  

Accumulated Net Investment Loss

     

End of period

    $ (9,537,241 )    $ (2,136,500 ) 
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      4,168,651      $ 43,495,974        3,892,362      $ 38,318,228   

Reinvestments

      4,225,705        40,947,082        8,451,613        78,684,520   

Redemptions

      (5,455,460 )      (56,072,232 )      (4,296,513 )      (41,134,392 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      2,938,896      $ 28,370,824        8,047,462      $ 75,868,356   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      3,395,669      $ 33,193,165        8,013,326      $ 73,352,645   

Reinvestments

      5,726,367        53,484,266        12,458,006        111,997,476   

Redemptions

      (8,335,142 )      (82,621,017 )      (13,983,855 )      (128,559,115 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase

      786,894      $ 4,056,414        6,487,477      $ 56,791,006   
  

 

 

    

 

 

    

 

 

    

 

 

  

Class E

         

Sales

      115,896      $ 1,169,964        132,767      $ 1,263,846   

Reinvestments

      113,014        1,071,365        267,466        2,439,287   

Redemptions

      (198,237 )      (1,989,705 )      (481,071 )      (4,462,542 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease)

      30,673      $ 251,624        (80,838 )    $ (759,409 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Increase derived from capital shares transactions

      $ 32,678,862        $ 131,899,953   
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Financial Highlights

 

Selected per share data  
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009     2008  

Net Asset Value, Beginning of Period

    $ 9.53      $ 9.53       $ 9.90       $ 7.73       $ 5.30      $ 9.83   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

                

Net investment income (loss) (a)

      (0.01 )      0.02         (0.02 )       (0.01 )       0.00  (b)      0.01   

Net realized and unrealized gain (loss) on investments

      1.41        1.28         (0.09 )       2.18         2.43        (3.54 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      1.40        1.30         (0.11 )       2.17         2.43        (3.53 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.05 )      0.00         0.00         0.00         0.00        (0.01 ) 

Distributions from net realized capital gains

      (0.56 )      (1.30 )       (0.26 )       0.00         0.00        (0.99 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.61 )      (1.30 )       (0.26 )       0.00         0.00        (1.00 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.32      $ 9.53       $ 9.53       $ 9.90       $ 7.73      $ 5.30   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (c)

      15.01  (d)      13.93         (1.40 )       28.07         45.85        (39.62 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%)

      0.77  (e)      0.78         0.78         0.79         0.79        0.78   

Net ratio of expenses to average net assets (%) (f)

      0.75  (e)      0.76         0.76         0.77         0.77        0.76   

Ratio of net investment income (loss) to average net assets (%)

      (0.13 )(e)      0.17         (0.21 )       (0.10 )       (0.05 )      0.09   

Portfolio turnover rate (%)

      15  (d)      30         38         28         32        36   

Net assets, end of period (in millions)

    $ 726.1      $ 642.5       $ 565.8       $ 764.5       $ 585.5      $ 347.4   
     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009     2008  

Net Asset Value, Beginning of Period

    $ 9.19      $ 9.25       $ 9.64       $ 7.55       $ 5.19      $ 9.66   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Income (Loss) from Investment Operations

                

Net investment loss (a)

      (0.02 )      (0.01 )       (0.04 )       (0.03 )       (0.02 )      (0.01 ) 

Net realized and unrealized gain (loss) on investments

      1.35        1.25         (0.09 )       2.12         2.38        (3.47 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total from investment operations

      1.33        1.24         (0.13 )       2.09         2.36        (3.48 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Less Distributions

                

Distributions from net investment income

      (0.02 )      0.00         0.00         0.00         0.00        0.00   

Distributions from net realized capital gains

      (0.56 )      (1.30 )       (0.26 )       0.00         0.00        (0.99 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

      (0.58 )      (1.30 )       (0.26 )       0.00         0.00        (0.99 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 9.94      $ 9.19       $ 9.25       $ 9.64       $ 7.55      $ 5.19   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return (%) (c)

      14.85  (d)      13.68         (1.65 )       27.68         45.47        (39.75 ) 

Ratios/Supplemental Data

                

Gross ratio of expenses to average net assets (%)

      1.02  (e)      1.03         1.03         1.04         1.04        1.03   

Net ratio of expenses to average net assets (%) (f)

      1.00  (e)      1.01         1.01         1.02         1.02        1.01   

Ratio of net investment loss to average net assets (%)

      (0.38 )(e)      (0.08 )       (0.45 )       (0.33 )       (0.30 )      (0.16 ) 

Portfolio turnover rate (%)

      15  (d)      30         38         28         32        36   

Net assets, end of period (in millions)

    $ 953.1      $ 873.9       $ 820.0       $ 796.7       $ 542.0      $ 314.0   

Please see following page for Financial Highlights footnote legend.

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Financial Highlights

 

 

Selected per share data  
     Class E  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012     2011     2010     2009     2008  

Net Asset Value, Beginning of Period

    $ 9.33      $ 9.36      $ 9.75      $ 7.62      $ 5.24      $ 9.72   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Investment Operations

             

Net investment income (loss) (a)

      (0.01 )      0.00  (b)      (0.04 )      (0.02 )      (0.01 )      (0.01 ) 

Net realized and unrealized gain (loss) on investments

      1.36        1.27        (0.09 )      2.15        2.39        (3.48 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total from investment operations

      1.35        1.27        (0.13 )      2.13        2.38        (3.49 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Less Distributions

             

Distributions from net investment income

      (0.03 )      0.00        0.00        0.00        0.00        0.00   

Distributions from net realized capital gains

      (0.56 )      (1.30 )      (0.26 )      0.00        0.00        (0.99 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

      (0.59 )      (1.30 )      (0.26 )      0.00        0.00        (0.99 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net Asset Value, End of Period

    $ 10.09      $ 9.33      $ 9.36      $ 9.75      $ 7.62      $ 5.24   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return (%) (c)

      14.83  (d)      13.85        (1.63 )      27.95        45.42        (39.60 ) 

Ratios/Supplemental Data

             

Gross ratio of expenses to average net assets (%)

      0.92  (e)      0.93        0.93        0.94        0.94        0.93   

Net ratio of expenses to average net assets (%) (f)

      0.90  (e)      0.91        0.91        0.92        0.92        0.91   

Ratio of net investment income (loss) to average net assets (%)

      (0.28 )(e)      0.01        (0.36 )      (0.27 )      (0.19 )      (0.07 ) 

Portfolio turnover rate (%)

      15  (d)      30        38        28        32        36   

Net assets, end of period (in millions)

    $ 19.2      $ 17.4      $ 18.3      $ 24.6      $ 22.2      $ 17.3   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Net investment income (loss) was less than $0.01.
(c) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(d) Periods less than one year are not computed on an annualized basis.
(e) Computed on an annualized basis.
(f) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is T. Rowe Price Mid Cap Growth Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A, B and E Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus. Book-tax differences are primarily due

 

MIST-13

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

to broker commission recapture, foreign currency transaction, passive foreign investment companies (PFICs) and return of capital distributions from REITs. These adjustments have no impact on net assets or the results of operations.

Securities Lending - The Portfolio may lend its portfolio securities to certain qualified brokers who borrow securities in order to complete certain securities transactions. By lending its portfolio securities, the Portfolio attempts to increase its net investment income through the receipt of income on collateral held from securities on loan. Any gain or loss in the market price of the loaned securities that might occur and any interest earned or dividends declared during the term of the loan would accrue to the account of the Portfolio.

The Trust has entered into a securities lending arrangement with the custodian. Under this arrangement, the custodian is authorized to loan portfolio securities on the Portfolio’s behalf. In exchange, the Portfolio receives either cash or securities as collateral against the loaned securities. The Portfolio receives collateral at least equal to 102% of the market value of the loaned securities (105% for foreign equity securities), at each loan’s inception. Collateral representing at least 100% of the market value of the loaned securities must be maintained for the duration of the loan. A liability for cash collateral is reflected on the Statement of Assets and Liabilities, and is categorized as Level 2 within the fair value hierarchy. Cash collateral is generally invested in the State Street Navigator Securities Lending MET Portfolio (the “Navigator Portfolio”), a series of the State Street Navigator Securities Lending Trust that is managed by an affiliate of the custodian. The Navigator Portfolio is a registered money market fund which invests in a variety of high quality U.S. dollar-denominated instruments. If the market value of the collateral at the close of trading on a business day is less than 100% of the market value of the loaned securities at the close of trading on that day, the borrower shall be required to deliver, by the close of business on the following business day, an additional amount of collateral so that the total amount of posted collateral equals at least 100% of the market value of all the loaned securities as of such preceding day. A portion of net income (income after the deduction of expenses and fees of the Navigator Portfolio) on the collateral is rebated to the borrower of the securities and the remainder is split between the custodian and the Portfolio. On loans collateralized by U.S. Treasuries, a fee is received from the borrower and is allocated between the Portfolio and the custodian. The risks associated with lending portfolio securities include, but are not limited to, possible delays in receiving additional collateral or in the recovery of the loaned securities, possible loss of rights in the collateral should the borrower fail financially, as well as risk of loss in the value of the collateral or the value of the investments made with the collateral. Income received by the Portfolio in securities lending transactions during the six months ended June 30, 2013 is reflected as Securities lending income on the Statement of Operations. Any outstanding loans by the Portfolio at June 30, 2013 are disclosed in the footnotes to the Schedule of Investments.

Directed Brokerage Agreement - The Trust has entered into a directed brokerage arrangement with State Street Global Markets (“SSGM”). Under this arrangement, the Portfolio directs certain trades to SSGM in return for a recapture credit. SSGM issues a cash rebate to the Portfolio. Amounts paid to the Portfolio are shown separately as broker commission recapture on the Statement of Operations of the Portfolio. Additionally, these amounts have been excluded from the calculation of the net ratio of expenses to average net assets presented in the Financial Highlights for each share class.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

3. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist

 

MIST-14

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

4. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 232,814,447       $ 0       $ 318,197,611   

The Portfolio engaged in security transactions with other accounts managed by T. Rowe Price Associates, Inc. that amounted to $329,339 in purchases and $858,335 in sales of investments which are included above.

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $3,070,856 in purchases of investments, which are included above.

5. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with T. Rowe Price Associates, Inc. (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by
the Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$6,188,861      0.750 %    All

Management Fee Waiver - The Subadviser has agreed to a voluntary subadvisory fee waiver that applies if (i) assets under management by the Subadviser for the Trust and Metropolitan Series Fund (“MSF”) in the aggregate exceed $750,000,000, (ii) the Subadviser subadvises three or more portfolios of the Trust and MSF in the aggregate and (iii) at least one of those portfolios is a large cap domestic equity portfolio. The Adviser has voluntarily agreed to reduce its management fee for the Portfolio by the amount waived (if any) by the Subadviser for the Portfolio pursuant to this voluntary subadvisory fee waiver. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

 

MIST-15

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

The subadvisory fee waiver schedule for the period January 1 through June 30, 2013 was:

 

Percentage Fee Waiver

   Combined Assets  
  0.0%     First $750 million   
  5.0%     Next $750 million   
  7.5%     Next $1.5 billion   
10.0%     Excess over $3 billion   

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreements and Plans - The Trust has distribution agreements with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A, Class B and Class E Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B and Class E distribution plans provide that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% and 0.25%, respectively, of the average daily net assets of the Portfolio attributable to its Class B and Class E Shares with respect to activities primarily intended to result in the sale of Class B and Class E Shares. However, under the Class B and Class E distribution agreements, payments to the Distributor for activities pursuant to the Class B and Class E distribution plans are currently limited to payments at an annual rate equal to 0.25% and 0.15% of average daily net assets of the Portfolio attributable to its Class B and Class E Shares, respectively. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B and Class E distribution plans and distribution agreements, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B and Class E Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

6. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

 

Security Description

    Number of shares
held at
December 31, 2012		      Shares purchased      Shares sold     Number of shares
held at
June 30, 2013		      Income earned
from affiliates
during the
period		  

T. Rowe Price Government Reserve Investment Fund

      56,058,270         101,406,931         (91,448,654 )      66,016,547       $ 19,415   

7. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

8. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income

      Long-Term Capital Gain      Total  

2012

    2011      2012      2011      2012      2011  
$22,058,286    $ —       $ 171,062,997       $ 42,980,955       $ 193,121,283       $ 42,980,955   

 

MIST-16

Met Investors Series Trust

T. Rowe Price Mid Cap Growth Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income

    Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards      Total  
$7,712,431    $ 87,544,119       $ 297,334,903       $ —       $ 392,591,453   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses. At December 31, 2012, the Portfolio did not have any capital loss carryforwards.

 

MIST-17

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Managed by Third Avenue Management LLC

Portfolio Manager Commentary*

 

PERFORMANCE

For the six month period ended June 30, 2013, the Class A and B shares of the Third Avenue Small Cap Value Portfolio returned 12.11% and 11.97%, respectively. The Portfolio’s benchmarks, the Russell 2000 Value Index1 and the Dow Jones U.S. Small Cap Total Stock Market Index2, returned 14.39% and 16.34%, respectively.

MARKET ENVIRONMENT / CONDITIONS

U.S. equity markets forged to new highs during the first half of 2013, driven by improving economic conditions in the U.S. as well as the effects of Japan’s Abenomics; the Prime Minister’s attempt, in concert with Japan’s central bank, to break deflation. As seen in other developed countries, Quantitative Easing has had the effect of making risk assets such as real estate, high yield bonds and equities appear attractive, lifting valuations of these assets globally, with the glaring exception of emerging markets, where slower growth and depreciating currencies have discouraged investors. Recessionary forces in the eurozone as well as a slowdown in China continue to weigh on global commodity prices. As investors have apparently rejected gold as a safe haven investment, gold prices have tumbled. Nor have bond investors had a smooth ride as the sudden jump in U.S. Treasury bond yields rattled fixed income markets. Natural gas prices in the U.S., while off the decade low prices of 2012, remain relatively depressed as new gas fields continue to be found and exploited. The “Shale Revolution” has not only had effects throughout the Energy sector but has reduced input costs for many U.S. manufacturers, especially fertilizer and chemical companies.

PORTFOLIO REVIEW / PERIOD END POSITIONING

For the six-month period ended June 30, 2013, the Portfolio underperformed the Russell 2000 Value Index. Underperformance was focused in a few specific areas and names: (i) Consumer Discretionary accounted for approximately 2.1% of the Portfolio’s relative underperformance. Very strong returns in the Index components, up nearly 26% during the period, contrasted with the much lower, but positive returns held by the Portfolio and the negative returns of Portfolio holdings Superior Industries (-16%) and Weight Watchers (-11%); (ii) Information Technology, where three holdings, Bel Fuse, Tellabs and Mantech accounted for the vast majority of the negative performance, detracted approximately 0.7% of the Portfolio’s relative underperformance; and (iii) cash, whose weighting averaged 6.7%, becomes an obvious detractor in a rapidly rising market, approximating 0.7% of the Portfolio’s relative underperformance. The underperformance was slightly offset by security selections within the Industrial sector, contributing approximately 1.3% of outperformance vs. the benchmark.

Taking each of these in turn, the Portfolio has been judiciously reducing exposure in Superior Industries, a manufacturer of aluminum wheels for the auto industry, whose management has embarked on an ambitious plan to build new, low cost capacity in Mexico. While the business continues to generate cash, we are skeptical of the returns on this new capacity, returns that will not flow through the business for at least two years. Weight Watchers is still in the “early innings” as an investment. The business has not developed as quickly as we had originally envisioned as tighter consumer pocket books, particularly in Europe/United Kingdom, and more competitive offerings have restrained the core business. In contrast the company’s online business continues to develop favorably. The team has been slowly exiting its holding in Bel Fuse over the course of the year on account of deteriorating business fundamentals, but the rapid decline in the share price has altered the pace of that exit. At present we continue to hold onto shares of Tellabs, a telecom equipment supplier, where a new board and management have embarked on a restructuring. We see the Tellabs holding as a cheap option on this restructuring in view of the company’s cash rich balance sheet and a valuation that attributes almost no value to the company’s existing business. Mantech’s core business of providing contracting to the Federal Government, largely the Department of Defense, remains under pressure; our belief, however, is that a small position is warranted given the highly cash-generative nature of the business and potential for new business within the cyber security arena.

On the positive side, industrial names such as Oshkosh and services companies such as ICF International contributed significantly to performance in 2013. Oshkosh, a manufacturer of heavy trucks including cement mixers, refuse collection, emergency vehicles and military vehicles, also has a valuable business selling aerial work platforms to the construction industry. It is the Portfolio’s largest holding and we believe it remains a well-priced, value creator despite its strong stock performance. ICF, a consulting and professional services firm, continues to benefit from its work in the healthcare, energy, environmental and education domains. Other top holdings that have contributed positively this year include Madison Square Garden Co. with its portfolio of venues, media and sports franchises benefiting from the renovation at its namesake arena and the pricing power of its “must have” content, and SemGroup, an owner and operator of pipelines, storage and processing assets benefiting from growing US oil and gas production with the rise of new drilling technologies.

Over the course of the last six months, the Portfolio has exited 8 investments and initiated 19 new positions, bringing the cash balance down to less than 4% as of June 30, 2013. New positions were industrially diverse though there was one area of specific interest: the Portfolio has historically been underweight bank stocks. In 2013, we devoted considerable research efforts to traditional, small-cap regional banks and have discovered several attractive investments. As alluded to above, we have since established positions in a number of high quality franchises including City National, Cullen/Frost Bankers, Commerce Bancshares and Valley National. Each has an impressive track record of growth and value creation through the financial crisis that we expect will continue; yet operating results remain subdued in the low-rate environment, providing additional upside as the economy improves.

The Portfolio generally remains overweight sectors that ought to benefit from even a tentative economic recovery, such as Industrials,

 

MIST-1

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Managed by Third Avenue Management LLC

Portfolio Manager Commentary*—(Continued)

 

Materials and Information Technology. Supporting these holdings are the Portfolio’s recent investments in the Regional Bank sector whose economics are similarly linked to strength in the overall economy. Importantly, our investment discipline leads us to select more conservatively financed and managed companies that ought to have a better “shock absorber” if, as and when an economic downturn appears.

Curtis Jensen

Charles Page

Tim Bui

Portfolio Managers

Third Avenue Management LLC

 

* This commentary may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward looking statements include, among other things, projections, estimates, and information about possible or future results related to the Portfolio and market or regulatory developments. The views expressed above are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed above are those of the subadvisory firm as of June 30, 2013 and are subject to change at any time based upon economic, market, or other conditions and the subadvisory firm undertakes no obligation to update the views expressed herein. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed above (including any forward-looking statements) may not be relied upon as investment advice or as an indication of the Portfolio’s trading intent. Information about the Portfolio’s holdings, asset allocation or country diversification is historical and is not an indication of future Portfolio composition, which may vary. Direct investment in any index is not possible. The performance of any index mentioned in this commentary has not been adjusted for ongoing management, distribution and operating expenses applicable to mutual fund investments. In addition, the returns do not reflect additional fees charged by separate accounts or variable annuity or insurance contracts that an investor in the Portfolio may pay. If these additional fees were reflected, performance would have been lower.

 

MIST-2

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

 

A $10,000 INVESTMENT COMPARED TO THE RUSSELL 2000 VALUE INDEX &

THE DOW JONES U.S. SMALL CAP TOTAL STOCK MARKET INDEX

 

LOGO

AVERAGE ANNUAL RETURNS (%) (FOR THE SIX MONTHS ENDED JUNE 30, 2013)

 

        6 Month        1 Year        5 Year        10 Year  
Third Avenue Small Cap Value Portfolio                      

Class A

        12.11           23.67           5.27           10.03   

Class B

        11.97           23.34           5.01           9.76   
Russell 2000 Value Index        14.39           24.76           8.59           9.30   
Dow Jones U.S. Small Cap Total Stock Market Index        16.34           26.43           10.86           11.24   

1 The Russell 2000 Value Index is an unmanaged measure of performance of those Russell 2000 companies that have lower price-to-book ratios and lower forecasted growth values.

2 The Dow Jones U.S. Small Cap Total Stock Market Index is a float-adjusted market capitalization weighted index that reflects the shares of securities of the small-cap portion of the Dow Jones U.S. Total Full Cap Equity Index available to investors in the marketplace. The Index includes the components ranked 751 to 2,500 by full market capitalization.

Portfolio performance is calculated including reinvestment of all income and capital gain distributions. Performance numbers are net of all Portfolio expenses but do not include any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that participants may bear relating to the operations of their plans. If these charges were included, the returns would be lower. The performance of any index referenced above has not been adjusted for ongoing management, distribution and operating expenses, and sales charges applicable to mutual fund investments. Direct investment in any index is not possible. The performance of Class A shares, as set forth in the line graph above, will differ from that of other classes because of the difference in expenses paid by policyholders investing in the different share classes.

This information represents past performance and is not indicative of future results. Investment return and principal value may fluctuate so that shares, upon redemption, may be worth more or less than the original cost.

 

PORTFOLIO COMPOSITION AS OF JUNE 30, 2013

Top Holdings

 

         
% of
Net Assets		  
Oshkosh Corp.      3.0   
Alleghany Corp.      2.6   
HCC Insurance Holdings, Inc.      2.5   
Ingram Micro, Inc. - Class A      2.5   
SemGroup Corp. - Class A      2.4   
EnerSys, Inc.      2.4   
ICF International, Inc.      2.3   
Liberty Media Corp. - Class A      2.3   
Kennametal, Inc.      2.1   
EMCOR Group, Inc.      2.1   

Top Sectors

 

     % of
Market Value of
Total Long-Term Investments		  
Industrials      23.0   
Financials      19.3   
Information Technology      15.9   
Consumer Discretionary      14.8   
Materials      12.7   
Energy      7.6   
Consumer Staples      3.7   
Health Care      3.0   

 

MIST-3

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

 

Understanding Your Portfolio’s Expenses (Unaudited)

Shareholder Expense Example

As a shareholder of the Portfolio, you incur ongoing costs, including management fees; distribution and service (12b-1) fees; and other Portfolio expenses. This example is intended to help you understand your ongoing costs (in dollars) (referred to as “expenses”) of investing in the Portfolio and compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, January 1, 2013 through June 30, 2013.

Actual Expenses

The first line for each share class of the Portfolio in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested in the particular share class of the Portfolio, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class of the Portfolio in the table below provides information about hypothetical account values and hypothetical expenses based on the Portfolio’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any fees or charges of your variable insurance product or any additional expenses that participants in certain eligible qualified plans may bear relating to the operations of their plan. Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these other costs were included, your costs would have been higher.

 

Third Avenue Small Cap Value Portfolio

         Annualized
Expense
Ratio		      Beginning
Account Value
January 1,
2013		        Ending
Account Value
June 30,
2013		        Expenses Paid
During Period**
January 1, 2013
to
June 30,
2013		  

Class A(a)

    Actual      0.74 %     $ 1,000.00         $ 1,121.10         $ 3.89   
   Hypothetical*      0.74 %     $ 1,000.00         $ 1,021.13         $ 3.71   

Class B(a)

    Actual      0.99 %     $ 1,000.00         $ 1,119.70         $ 5.20   
   Hypothetical*      0.99 %     $ 1,000.00         $ 1,019.89         $ 4.96   

* Hypothetical assumes a rate of return of 5% per year before expenses.

** Expenses paid are equal to the Portfolio’s annualized expense ratio for the most recent six month period, as shown above, multiplied by the average account value over the period, multiplied by the number of days (181 days) in the most recent fiscal half-year, divided by 365 (to reflect the one-half year period).

(a) The annualized expense ratio shown reflects the impact of the management fee waiver as described in Note 6 of the Notes to Financial Statements.

 

MIST-4

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—94.8% of Net Assets

 

Security Description   Shares     Value  

Aerospace & Defense—1.5%

    

Cubic Corp.

     218,800      $ 10,524,280   

Orbital Sciences Corp. (a)

     575,942        10,004,113   
   

 

 

  
      20,528,393   
   

 

 

  

Auto Components—1.6%

    

Superior Industries International, Inc. (b)

     1,258,053        21,651,092   
   

 

 

  

Building Products—0.9%

    

Insteel Industries, Inc.

     674,222        11,812,369   
   

 

 

  

Capital Markets—1.0%

    

Westwood Holdings Group, Inc.

     315,624        13,546,582   
   

 

 

  

Chemicals—7.5%

    

Axiall Corp.

     457,654        19,486,907   

LSB Industries, Inc. (a)

     768,361        23,365,858   

Minerals Technologies, Inc.

     480,840        19,877,926   

Sensient Technologies Corp.

     596,061        24,122,589   

Stepan Co.

     325,594        18,106,282   
   

 

 

  
      104,959,562   
   

 

 

  

Commercial Banks—4.2%

    

City National Corp.

     250,147        15,851,815   

Commerce Bancshares, Inc.

     362,557        15,792,983   

Cullen/Frost Bankers, Inc.

     201,532        13,456,292   

UMB Financial Corp.

     86,641        4,823,304   

Valley National Bancorp

     986,891        9,345,858   
   

 

 

  
      59,270,252   
   

 

 

  

Commercial Services & Supplies—4.2%

  

  

ABM Industries, Inc.

     707,466        17,339,992   

Tetra Tech, Inc. (a)

     633,487        14,893,279   

UniFirst Corp.

     292,465        26,687,431   
   

 

 

  
      58,920,702   
   

 

 

  

Communications Equipment—1.1%

  

  

Bel Fuse, Inc. - Class B (b)

     540,731        7,272,832   

Tellabs, Inc.

     4,231,812        8,378,988   
   

 

 

  
      15,651,820   
   

 

 

  

Computers & Peripherals—1.1%

    

Electronics for Imaging, Inc. (a)

     545,012        15,418,390   
   

 

 

  

Construction & Engineering—2.1%

    

EMCOR Group, Inc.

     726,298        29,524,014   
   

 

 

  

Diversified Consumer Services—0.8%

    

Weight Watchers International, Inc.

     243,846        11,216,916   
   

 

 

  

Diversified Financial Services—2.2%

    

Ackermans & van Haaren NV

     237,371        19,907,489   

Leucadia National Corp.

     420,059        11,013,947   
   

 

 

  
      30,921,436   
   

 

 

  

Electrical Equipment—3.6%

  

Encore Wire Corp.

     515,189      $ 17,567,945   

EnerSys, Inc.

     677,297        33,214,645   
   

 

 

  
      50,782,590   
   

 

 

  

Electronic Equipment, Instruments & Components—6.4%

  

AVX Corp.

     980,094        11,516,105   

Electro Scientific Industries, Inc. (b)

     1,143,920        12,308,579   

Ingram Micro, Inc. - Class A (a)

     1,834,555        34,838,199   

Park Electrochemical Corp.

     408,704        9,812,983   

Rofin-Sinar Technologies, Inc. (a)

     851,973        21,248,207   
   

 

 

  
      89,724,073   
   

 

 

  

Energy Equipment & Services—2.8%

  

Era Group, Inc. (a)

     279,764        7,315,829   

Pioneer Energy Services Corp. (a)

     1,078,770        7,141,457   

SEACOR Holdings, Inc.

     299,764        24,895,400   
   

 

 

  
      39,352,686   
   

 

 

  

Food & Staples Retailing—0.3%

  

Susser Holdings Corp. (a)

     82,881        3,968,342   
   

 

 

  

Food Products—3.3%

  

Alico, Inc.

     161,699        6,485,747   

Cal-Maine Foods, Inc.

     383,758        17,848,584   

Darling International, Inc. (a)

     382,089        7,129,781   

J&J Snack Foods Corp.

     188,505        14,665,689   
   

 

 

  
      46,129,801   
   

 

 

  

Health Care Equipment & Supplies—1.8%

  

Teleflex, Inc.

     325,895        25,253,604   
   

 

 

  

Health Care Providers & Services—0.4%

  

Cross Country Healthcare, Inc. (a)

     1,104,709        5,700,298   
   

 

 

  

Health Care Technology—0.7%

  

Allscripts Healthcare Solutions, Inc. (a)

     718,562        9,298,192   
   

 

 

  

Hotels, Restaurants & Leisure—1.2%

  

Vail Resorts, Inc.

     265,733        16,347,894   
   

 

 

  

Household Durables—2.5%

  

Harman International Industries, Inc.

     520,755        28,224,921   

Stanley Furniture Co., Inc. (a) (b)

     1,525,108        6,100,432   
   

 

 

  
      34,325,353   
   

 

 

  

Insurance—7.1%

  

Alleghany Corp. (a)

     93,376        35,791,955   

Arch Capital Group, Ltd. (a)

     538,711        27,695,132   

HCC Insurance Holdings, Inc.

     814,725        35,122,795   
   

 

 

  
      98,609,882   
   

 

 

  

Internet Software & Services—0.6%

  

Blucora, Inc. (a)

     481,917        8,934,741   
   

 

 

  

 

See accompanying notes to financial statements.

 

MIST-5

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Common Stocks—(Continued)

 

Security Description

   Shares     Value  

IT Services—4.1%

  

Broadridge Financial Solutions, Inc.

     576,107      $ 15,312,924   

Cass Information Systems, Inc.

     168,727        7,778,315   

Mantech International Corp. - Class A

     803,658        20,991,547   

Syntel, Inc.

     210,810        13,253,624   
   

 

 

  
      57,336,410   
   

 

 

  

Leisure Equipment & Products—0.7%

  

JAKKS Pacific, Inc.

     854,483        9,612,934   
   

 

 

  

Machinery—7.5%

  

Alamo Group, Inc.

     375,898        15,344,156   

Hyster-Yale Materials Handling, Inc.

     132,593        8,325,515   

Kennametal, Inc.

     763,260        29,637,386   

Oshkosh Corp. (a)

     1,089,106        41,353,355   

Wacker Neuson SE

     769,865        10,360,142   
   

 

 

  
      105,020,554   
   

 

 

  

Media—4.4%

  

Liberty Media Corp. - Class A (a)

     253,025        32,073,449   

Madison Square Garden Co. (The) - Class A (a)

     391,960        23,223,630   

Starz - Class A (a)

     296,605        6,554,971   
   

 

 

  
      61,852,050   
   

 

 

  

Metals & Mining—3.4%

  

Compass Minerals International, Inc.

     345,799        29,230,390   

Kaiser Aluminum Corp.

     303,326        18,788,012   
   

 

 

  
      48,018,402   
   

 

 

  

Multiline Retail—0.5%

  

Big Lots, Inc. (a)

     218,934        6,902,989   
   

 

 

  

Oil, Gas & Consumable Fuels—4.5%

  

Cimarex Energy Co.

     75,537        4,909,150   

Cloud Peak Energy, Inc. (a)

     1,474,409        24,298,260   

SemGroup Corp. - Class A

     623,171        33,563,990   
   

 

 

  
      62,771,400   
   

 

 

  

Paper & Forest Products—1.3%

  

PH Glatfelter Co.

     714,092        17,923,709   
   

 

 

  

Professional Services—2.3%

  

ICF International, Inc. (a) (b)

     1,031,978        32,517,627   
   

 

 

  

Real Estate Investment Trusts—2.4%

  

Excel Trust, Inc.

     562,496        7,205,574   

Origen Financial, Inc. (a)

     784,131        1,058,577   

Segro plc

     5,959,254        25,185,227   
   

 

 

  
      33,449,378   
   

 

 

  

Software—1.9%

  

Progress Software Corp. (a)

     1,174,182        27,017,928   
   

 

 

  

Specialty Retail—2.6%

  

American Eagle Outfitters, Inc.

     364,008      $ 6,646,786   

Ascena Retail Group, Inc. (a)

     825,921        14,412,322   

CST Brands, Inc. (a)

     282,467        8,702,808   

Jos A Bank Clothiers, Inc. (a)

     173,542        7,170,755   
   

 

 

  
      36,932,671   
   

 

 

  

Thrifts & Mortgage Finance—0.3%

  

Kearny Financial Corp. (a)

     457,278        4,796,846   
   

 

 

  

Total Common Stocks
(Cost $1,092,348,745)

       1,326,001,882   
   

 

 

  
Investment Company Security—1.2%   

JZ Capital Partners, Ltd.
(Cost $17,886,023)

     2,320,000        16,847,544   
   

 

 

  
Preferred Stock—0.2%   

Real Estate Investment Trusts—0.2%

  

Excel Trust, Inc., 8.125%
(Cost $3,010,291)

     118,300        3,019,016   
   

 

 

  
Short-Term Investment—3.8%   

Repurchase Agreement—3.8%

  

Fixed Income Clearing Corp. Repurchase Agreement dated 06/28/13 at 0.010% to be repurchased at $52,565,044 on 07/01/13, collateralized by $54,645,000 U.S. Treasury Note at 0.625% due 08/31/17 with a value of $53,620,406.

     52,565,000        52,565,000   
   

 

 

  

Total Short-Term Investment
(Cost $52,565,000)

       52,565,000   
   

 

 

  

Total Investments—100.0%
(Cost $1,165,810,059) (c)

       1,398,433,442   

Other assets and liabilities
(net)—0.0%

       (160,639 ) 
   

 

 

  
Net Assets—100.0%     $ 1,398,272,803   
   

 

 

  

 

* Principal amount stated in U.S. dollars unless otherwise noted.
(a) Non-income producing security.
(b) Affiliated Issuer. (See Note 7 of the Notes to Financial Statements for a summary of transactions in securities of affiliated issuers.)
(c) As of June 30, 2013, the aggregate cost of investments was $1,165,810,059. The aggregate unrealized appreciation and depreciation of investments were $273,766,284 and $(41,142,901), respectively, resulting in net unrealized appreciation of $232,623,383.

 

See accompanying notes to financial statements.

 

MIST-6

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

 

Fair Value Hierarchy

Accounting principles generally accepted in the United States of America (“GAAP”) define fair market value as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. It establishes a fair value hierarchy that prioritizes inputs to valuation methods and requires disclosure of the fair value hierarchy that segregates fair value measurements into three levels. Levels 1, 2 and 3 of the fair value hierarchy are defined as follows:

Level 1 - unadjusted quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including, but not limited to, unadjusted quoted prices for similar investments in markets that are either active or inactive; inputs other than quoted prices that are observable such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, default rates, etc.)

Level 3 - significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are unavailable (including the Portfolio’s own assumptions in determining the fair value of investments)

The inputs or methodologies used for valuing investments are not necessarily an indication of the risk associated with investing in them. Changes to the inputs or methodologies used may result in transfers between levels, which will be recognized as of the beginning of the reporting period. Information on transfers between Level 1 and Level 2, if any, will be disclosed following the fair value hierarchy table below. A reconciliation of Level 3 securities, if any, will also be disclosed following the fair value hierarchy table. For more information about the Portfolio’s policy regarding the valuation of investments, please refer to the Notes to Financial Statements.

The following table summarizes the fair value hierarchy of the Portfolio’s investments as of June 30, 2013:

 

Description    Level 1      Level 2      Level 3      Total  
Common Stocks            

Aerospace & Defense

    $ 20,528,393       $ —         $ —         $ 20,528,393   

Auto Components

      21,651,092         —           —           21,651,092   

Building Products

      11,812,369         —           —           11,812,369   

Capital Markets

      13,546,582         —           —           13,546,582   

Chemicals

      104,959,562         —           —           104,959,562   

Commercial Banks

      59,270,252         —           —           59,270,252   

Commercial Services & Supplies

      58,920,702         —           —           58,920,702   

Communications Equipment

      15,651,820         —           —           15,651,820   

Computers & Peripherals

      15,418,390         —           —           15,418,390   

Construction & Engineering

      29,524,014         —           —           29,524,014   

Diversified Consumer Services

      11,216,916         —           —           11,216,916   

Diversified Financial Services

      11,013,947         19,907,489         —           30,921,436   

Electrical Equipment

      50,782,590         —           —           50,782,590   

Electronic Equipment, Instruments & Components

      89,724,073         —           —           89,724,073   

Energy Equipment & Services

      39,352,686         —           —           39,352,686   

Food & Staples Retailing

      3,968,342         —           —           3,968,342   

Food Products

      46,129,801         —           —           46,129,801   

Health Care Equipment & Supplies

      25,253,604         —           —           25,253,604   

Health Care Providers & Services

      5,700,298         —           —           5,700,298   

Health Care Technology

      9,298,192         —           —           9,298,192   

Hotels, Restaurants & Leisure

      16,347,894         —           —           16,347,894   

Household Durables

      34,325,353         —           —           34,325,353   

Insurance

      98,609,882         —           —           98,609,882   

Internet Software & Services

      8,934,741         —           —           8,934,741   

IT Services

      57,336,410         —           —           57,336,410   

Leisure Equipment & Products

      9,612,934         —           —           9,612,934   

Machinery

      94,660,412         10,360,142         —           105,020,554   

Media

      61,852,050         —           —           61,852,050   

Metals & Mining

      48,018,402         —           —           48,018,402   

Multiline Retail

      6,902,989         —           —           6,902,989   

Oil, Gas & Consumable Fuels

      62,771,400         —           —           62,771,400   

Paper & Forest Products

      17,923,709         —           —           17,923,709   

Professional Services

      32,517,627         —           —           32,517,627   

Real Estate Investment Trusts

      8,264,151         25,185,227         —           33,449,378   

Software

      27,017,928         —           —           27,017,928   

 

See accompanying notes to financial statements.

 

MIST-7

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Schedule of Investments as of June 30, 2013 (Unaudited)

Fair Value Hierarchy—(Continued)

 

Description    Level 1      Level 2      Level 3      Total  

Specialty Retail

    $ 36,932,671       $ —         $ —         $ 36,932,671   

Thrifts & Mortgage Finance

      4,796,846         —           —           4,796,846   

Total Common Stocks

      1,270,549,024         55,452,858         —           1,326,001,882   

Total Investment Company Security

      —           16,847,544         —           16,847,544   

Total Preferred Stock*

      3,019,016         —           —           3,019,016   

Total Short-Term Investment*

      —           52,565,000         —           52,565,000   

Total Investments

    $ 1,273,568,040       $ 124,865,402       $ —         $ 1,398,433,442   
                                     

 

* See Schedule of Investments for additional detailed categorizations.

 

See accompanying notes to financial statements.

 

MIST-8

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

 

Statement of Assets and Liabilities

 

June 30, 2013 (Unaudited)

 

Assets

   

Investments at value (a)

    $ 1,318,582,880   

Affiliated investments at value (b)

      79,850,562   

Cash

      532   

Receivable for:

   

Investments sold

      8,360,577   

Fund shares sold

      314,017   

Dividends

      1,146,973   

Interest

      44   
  

 

 

  

Total Assets

      1,408,255,585   

Liabilities

   

Due to bank cash denominated in foreign currencies (c)

      181   

Payables for:

   

Investments purchased

      8,161,597   

Fund shares redeemed

      665,779   

Accrued expenses:

   

Management fees

      838,086   

Distribution and service fees

      113,878   

Deferred trustees’ fees

      41,001   

Other expenses

      162,260   
  

 

 

  

Total Liabilities

      9,982,782   
  

 

 

  

Net Assets

    $ 1,398,272,803   
  

 

 

  

Net assets consist of:

   

Paid in surplus

    $ 1,188,475,896   

Undistributed net investment income

      2,856,180   

Accumulated net realized loss

      (25,683,420 ) 

Unrealized appreciation on investments, affiliated investments and foreign currency transactions

      232,624,147   
  

 

 

  

Net Assets

    $ 1,398,272,803   
  

 

 

  

Net Assets

   

Class A

    $ 850,133,386   

Class B

      548,139,417   

Capital Shares Outstanding*

   

Class A

      47,873,391   

Class B

      31,041,027   

Net Asset Value, Offering Price and Redemption Price Per Share

   

Class A

    $ 17.76   

Class B

      17.66   

 

* The Portfolio is authorized to issue an unlimited number of shares.
(a) Identified cost of investments, excluding affiliated investments, was $1,091,011,861.
(b) Identified cost of affiliated investments was $74,798,198.
(c) Identified cost of cash denominated in foreign currencies due to custodian was $183.

Statement of Operations

 

Six Months Ended June 30, 2013 (Unaudited)

 

Investment Income

   

Dividends (a)

    $ 8,846,434   

Dividends from affiliated investments

      306,239   

Interest

      4,839   
  

 

 

  

Total investment income

      9,157,512   

Expenses

   

Management fees

      5,313,275   

Administration fees

      18,273   

Custodian and accounting fees

      73,818   

Distribution and service fees—Class B

      682,222   

Audit and tax services

      19,518   

Legal

      9,656   

Trustees’ fees and expenses

      13,466   

Shareholder reporting

      37,127   

Insurance

      4,554   

Miscellaneous

      5,684   
  

 

 

  

Total expenses

      6,177,593   

Less management fee waiver

      (113,864 ) 
  

 

 

  

Net expenses

      6,063,729   
  

 

 

  

Net Investment Income

      3,093,783   
  

 

 

  

Net Realized and Unrealized Gain

   
Net realized gain (loss) on:   

Investments

      71,968,439   

Affiliated investments

      (6,688,353 ) 

Futures contracts

      (582,512 ) 

Foreign currency transactions

      13,318   
  

 

 

  

Net realized gain

      64,710,892   
  

 

 

  
Net change in unrealized appreciation (depreciation) on:   

Investments

      94,019,775   

Affiliated investments

      2,601,357   

Foreign currency transactions

      (3,570 ) 
  

 

 

  

Net change in unrealized appreciation

      96,617,562   
  

 

 

  

Net realized and unrealized gain

      161,328,454   
  

 

 

  

Net Increase in Net Assets From Operations

    $ 164,422,237   
  

 

 

  

 

(a) Net of foreign withholding taxes of $285,900.

 

See accompanying notes to financial statements.

 

MIST-9

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Statements of Changes in Net Assets

 

     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended
December 31,
2012		  

Increase (Decrease) in Net Assets:

     

From Operations

     

Net investment income

    $ 3,093,783      $ 16,043,202   

Net realized gain

      64,710,892        115,588,565   

Net change in unrealized appreciation

      96,617,562        96,822,947   
  

 

 

    

 

 

  

Increase in net assets from operations

      164,422,237        228,454,714   
  

 

 

    

 

 

  

From Distributions to Shareholders

     

Net investment income

     

Class A

      (10,601,597 )      0   

Class B

      (5,533,642 )      0   
  

 

 

    

 

 

  

Total distributions

      (16,135,239 )      0   
  

 

 

    

 

 

  

Decrease in net assets from capital share transactions

      (160,503,812 )      (104,661,107 ) 
  

 

 

    

 

 

  

Total Increase (Decrease) in Net Assets

      (12,216,814 )      123,793,607   

Net Assets

     

Beginning of period

      1,410,489,617        1,286,696,010   
  

 

 

    

 

 

  

End of period

    $ 1,398,272,803      $ 1,410,489,617   
  

 

 

    

 

 

  

Undistributed net investment income

     

End of period

    $ 2,856,180      $ 15,897,636   
  

 

 

    

 

 

  

Other Information:

Capital Shares

Transactions in capital shares were as follows:

 

     Six Months Ended
June 30, 2013
(Unaudited)		     Year Ended
December 31, 2012		  
     Shares     Value     Shares     Value  

Class A

         

Sales

      2,556,442      $ 44,366,208        3,849,836      $ 56,877,026   

Reinvestments

      632,931        10,601,597        0        0   

Redemptions

      (10,944,004 )      (189,950,535 )      (3,866,156 )      (59,207,138 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (7,754,631 )    $ (134,982,730 )      (16,320 )    $ (2,330,112 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Class B

         

Sales

      1,248,561      $ 21,477,953        1,717,644      $ 25,293,544   

Reinvestments

      332,151        5,533,642        0        0   

Redemptions

      (3,031,168 )      (52,532,677 )      (8,566,596 )      (127,624,539 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net decrease

      (1,450,456 )    $ (25,521,082 )      (6,848,952 )    $ (102,330,995 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Decrease derived from capital shares transactions

      $ (160,503,812 )      $ (104,661,107 ) 
    

 

 

      

 

 

  

 

See accompanying notes to financial statements.

 

MIST-10

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Financial Highlights

 

Selected per share data                                         
     Class A  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 16.05      $ 13.57       $ 15.04       $ 12.68       $ 10.29       $ 15.75   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (a)

      0.04        0.19         0.03         0.03         0.17         0.16   

Net realized and unrealized gain (loss) on investments

      1.89        2.29         (1.31 )       2.51         2.50         (4.46 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.93        2.48         (1.28 )       2.54         2.67         (4.30 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.22 )      0.00         (0.19 )       (0.18 )       (0.16 )       (0.15 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         (0.12 )       (1.01 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.22 )      0.00         (0.19 )       (0.18 )       (0.28 )       (1.16 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 17.76      $ 16.05       $ 13.57       $ 15.04       $ 12.68       $ 10.29   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      12.11  (c)      18.28         (8.70 )       20.15         26.82         (29.69 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      0.76  (d)      0.77         0.77         0.78         0.78         0.77   

Net ratio of expenses to average net assets (%) (e)

      0.74  (d)      0.76         0.77         0.78         0.78         0.77   

Ratio of net investment income to average net assets (%)

      0.52  (d)      1.29         0.17         0.22         1.62         1.18   

Portfolio turnover rate (%)

      21  (c)      46         48         11         13         40   

Net assets, end of period (in millions)

    $ 850.1      $ 892.7       $ 755.1       $ 580.3       $ 727.2       $ 747.1   

 

     Class B  
     Six Months
Ended
June 30,
2013
(Unaudited)		     Year Ended December 31,  
       2012      2011      2010      2009      2008  

Net Asset Value, Beginning of Period

    $ 15.94      $ 13.51       $ 14.99       $ 12.64       $ 10.25       $ 15.68   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Income (Loss) from Investment Operations

                 

Net investment income (loss) (a)

      0.02        0.14         (0.02 )       0.02         0.16         0.13   

Net realized and unrealized gain (loss) on investments

      1.88        2.29         (1.30 )       2.48         2.48         (4.44 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total from investment operations

      1.90        2.43         (1.32 )       2.50         2.64         (4.31 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Less Distributions

                 

Distributions from net investment income

      (0.18 )      0.00         (0.16 )       (0.15 )       (0.13 )       (0.11 ) 

Distributions from net realized capital gains

      0.00        0.00         0.00         0.00         (0.12 )       (1.01 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

      (0.18 )      0.00         (0.16 )       (0.15 )       (0.25 )       (1.12 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Asset Value, End of Period

    $ 17.66      $ 15.94       $ 13.51       $ 14.99       $ 12.64       $ 10.25   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return (%) (b)

      11.97  (c)      17.99         (8.98 )       19.90         26.45         (29.82 ) 

Ratios/Supplemental Data

                 

Gross ratio of expenses to average net assets (%)

      1.01  (d)      1.02         1.02         1.03         1.03         1.02   

Net ratio of expenses to average net assets (%) (e)

      0.99  (d)      1.01         1.02         1.03         1.03         1.02   

Ratio of net investment income (loss) to average net assets (%)

      0.27  (d)      0.96         (0.11 )       0.15         1.46         0.92   

Portfolio turnover rate (%)

      21  (c)      46         48         11         13         40   

Net assets, end of period (in millions)

    $ 548.1      $ 517.8       $ 531.6       $ 640.1       $ 549.9       $ 444.0   

 

(a) Per share amounts based on average shares outstanding during the period.
(b) Total return does not reflect any insurance, sales, separate account or administrative charges of variable annuity or life insurance contracts or any additional expenses that contract owners may bear under their variable contracts. If these charges were included, the returns would be lower.
(c) Periods less than one year are not computed on an annualized basis.
(d) Computed on an annualized basis.
(e) Includes the effects of management fee waivers and expenses reimbursed by the Adviser, if applicable.

 

See accompanying notes to financial statements.

 

MIST-11

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)

 

1. Organization

Met Investors Series Trust (the “Trust”) is organized as a statutory trust under the laws of Delaware, as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers forty-nine portfolios (the “Portfolios”), each of which operates as a distinct investment vehicle of the Trust. The portfolio included in this report is Third Avenue Small Cap Value Portfolio (the “Portfolio”), which is diversified. Shares in the Portfolio are not offered directly to the general public and are currently available only to separate accounts established by Metropolitan Life Insurance Company (“MetLife”) and other affiliated life insurance companies.

The Portfolio has registered four classes of shares: Class A, B, C and E Shares. Class A and B Shares are currently offered by the Portfolio. Shares of each Class of the Portfolio represent an equal pro rata interest in the Portfolio and generally give the shareholder the same voting, dividend, liquidation, and other rights. Investment income, realized and unrealized capital gains and losses, the common expenses of the Portfolio and certain Portfolio-level expense reductions, if any, are allocated on a pro rata basis to each Class based on the relative net assets of each Class to the net assets of the Portfolio. Each Class of shares differs in its respective distribution expenses and such expenses are allocated to that Class.

2. Significant Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated events and transactions subsequent to June 30, 2013 through the date the financial statements were issued.

The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements.

Investment Valuation and Fair Value Measurements - Debt securities (other than short term obligations with a remaining maturity of sixty days or less), including corporate, convertible and municipal bonds and notes; U.S. government agencies; U.S. treasury obligations; sovereign issues; term loans; and non-U.S. bonds, are generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by MetLife Advisers, LLC (“MetLife Advisers” or the “Adviser”), an affiliate of MetLife, Inc., pursuant to authorization of the Board of Trustees of the Trust (the “Board” or “Trustees”). Such quotations utilize matrix pricing, which considers observable inputs including, among other things, issuer details, maturity dates, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Mortgage and asset-backed securities are usually issued as separate tranches, or classes, of securities within each deal. These securities are also generally valued on the basis of evaluated or composite bid quotations obtained from independent pricing services and/or brokers and dealers selected by the Adviser pursuant to authorization of the Board. The pricing models for these securities usually consider tranche-level attributes, estimated cash flows for each tranche, market-based yield spreads for each tranche and current market data, and incorporate deal collateral performance, as available. Mortgage and asset-backed securities that use similar valuation techniques and inputs as described above are generally categorized as Level 2 within the fair value hierarchy.

Short term obligations with a remaining maturity of sixty days or less are valued at amortized cost, which approximates fair market value, and are categorized as Level 2 within the fair value hierarchy.

Domestic and foreign equity securities, such as common stock, exchange-traded funds, rights, warrants, and preferred stock that are traded on a securities exchange are generally valued at their last sale price on the exchange or market in which they are principally traded on the valuation date, or if no sales occurred on that day, at the last reported bid price. Equity securities traded over-the-counter are generally valued at the last reported sale price. Valuation adjustments may be applied to certain equity securities that are solely traded on foreign exchanges closing before the U.S. market to account for the market movement between the close of the foreign exchanges and the close of the U.S. market. The Portfolio may use a systematic fair valuation model provided by an independent third party to value securities principally traded in these foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time of the Portfolio valuation. Securities using these valuation adjustments are categorized as Level 2 within the fair value hierarchy. Equity securities that are actively traded, and have no valuation adjustments applied, are categorized as Level 1 within the fair value hierarchy. Other equity securities traded on inactive markets, or valued in reference to similar instruments traded on active markets, are generally categorized as Level 2 within the fair value hierarchy.

Investments in registered open-end management investment companies are valued at reported net asset value per share on the valuation date and are categorized as Level 1 within the fair value hierarchy.

 

MIST-12

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Forward foreign currency exchange contracts are valued based on the mean between closing bid and asked prices of the forward currency rates in the London foreign exchange markets on a daily basis as provided by a reliable bank or dealer. These contracts are categorized as Level 2 within the fair value hierarchy.

Options, whether on securities, indices, futures contracts, or otherwise, traded on exchanges are valued at the last sales price available as of the close of business on the day of valuation or, if there is no such sale price available, at the last reported bid price. These types of options are categorized as Level 1 within the fair value hierarchy.

Futures contracts, which are traded on commodity exchanges, are valued at their closing prices as of the close of such exchanges and are categorized as Level 1 within the fair value hierarchy. Futures contracts traded on inactive markets where a broker quotation is received are generally categorized as Level 2 within the fair value hierarchy.

Options and futures contracts that are traded over-the-counter are generally valued on the basis of broker dealer quotations or pricing service providers who use a series of techniques, including simulation pricing models, to determine the value of the contracts. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves and exchange rates. These contracts are generally categorized as Level 2 within the fair value hierarchy.

If no current market value quotation or other observable inputs are readily available or reliable for a security, the fair value of the security will be determined in accordance with procedures approved by and under the general supervision of the Board. In such a circumstance, the Board has delegated the determination of the fair value of a security to a Valuation Committee (“Committee”) of the Adviser. The Committee provides general pricing oversight and fair value pricing determinations related to portfolio securities and meets on a regular basis to review reports relating to valuation of the securities in the Portfolio. The Board has delegated to State Street Bank and Trust Company, the Trust’s custodian (“custodian”), the responsibility for calculating the net asset values (“NAVs”) of the Trust’s Portfolios. The Committee is responsible for overseeing the calculation of the NAVs of the Portfolios by the custodian. The Committee also periodically reviews pricing vendors, including the vendor providing fair value pricing for the Portfolio’s foreign securities, and is responsible for overseeing the correction of pricing errors and addressing other pricing issues that arise in the ordinary course of business, such as making real-time fair value determinations, as necessary.

If there are no readily available market quotations for a security or such quotations are otherwise deemed to be unreliable because of unusual market or issuer-specific circumstances, including without limitation, the cessation, suspension or restriction of trading activity, the Committee shall make a good faith determination of the fair value of the asset. The Board shall be requested to ratify such determinations at its next quarterly board meeting.

No single standard for determining the fair value of a security can be set forth because fair value depends upon the facts and circumstances with respect to each security. Information relating to any relevant factors may be obtained by the Committee from any appropriate source, including the subadviser of the Portfolio, the custodian, a pricing service, market maker and/or broker for such security or the issuer. Appropriate methodologies for determining fair value under particular circumstances may include: matrix pricing comparisons of securities with comparable characteristics, value based on multiples of earnings, discount from market price of similar marketable securities or a combination of these and other methods. The Committee maintains a detailed report tracking each fair-valued security that compares the fair value price to the next available trade, vendor or broker price, and provides information on how close the fair value price was to the next quoted price. The Committee reviews a summary of such report monthly. On a quarterly basis, the Board is provided with the following for ratification: 1) a memorandum summarizing the actions taken by the Committee in the prior quarter and 2) a list of the Portfolio’s securities as of the most recent quarter end for which market quotations were not readily available.

Investment Transactions and Related Investment Income - Portfolio security transactions are recorded on the trade date. Dividend income is recorded on the ex-dividend date or, for certain foreign securities, when notified. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Realized gains and losses on investments are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Foreign income and foreign capital gains on some foreign securities may be subject to foreign taxes, which are accrued as applicable.

Income Taxes - It is the Portfolio’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, and regulations thereunder, applicable to regulated investment companies and to distribute, with respect to each taxable year, all of its taxable income to shareholders. Therefore, no federal income tax provision is required. The Portfolio files U.S. federal tax returns. No income tax returns are currently under examination. The Portfolio’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Dividends and Distributions to Shareholders - The Portfolio records dividends and distributions on the ex-dividend date. Net realized gains from security transactions (if any) are generally distributed annually to shareholders. The timing and characterization of certain income and capital gains distributions are determined in accordance with federal tax regulations that may differ from GAAP. Permanent book and tax basis differences relating to shareholder distributions will result in reclassification between under/over distributed net investment income, accumulated net realized gains/losses and paid-in surplus.

 

MIST-13

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

Book-tax differences are primarily due to foreign currency transactions and Real Estate Investment Trust (REITs). These adjustments have no impact on net assets or the results of operations.

Repurchase Agreements - The Portfolio may enter into repurchase agreements, under the terms of a Master Repurchase Agreement, with selected commercial banks and broker-dealers, under which the Portfolio acquires securities as collateral and agrees to resell the securities at an agreed upon time and at an agreed upon price. The Portfolio, through the custodian or a subcustodian, receives delivery of the underlying securities collateralizing repurchase agreements. The Portfolio requires the custodian to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian’s vault, all securities held as collateral for repurchase agreements. It is the Portfolio’s policy that the market value of the collateral be at least equal to 100% of the repurchase price in the case of a repurchase agreement of one-day duration and 102% of the repurchase price in the case of all other repurchase agreements. In the event of default or failure by a party to perform an obligation, the Master Repurchase Agreement gives the non-defaulting party the right to set-off claims and to apply property held by it in connection with any repurchase transaction against obligations owed to it.

At June 30, 2013, the Portfolio had investments in repurchase agreements with a gross value of $52,565,000, which is included as part of investments at value on the Statement of Assets and Liabilities. The value of the related collateral exceeded the value of the repurchase agreements at June 30, 2013.

Foreign Currency Translation - The books and records of the Portfolio are maintained in U.S. dollars. The values of securities, currencies and other assets and liabilities denominated in currencies other than U.S. dollars are translated into U.S. dollars based upon foreign exchange rates prevailing at the end of the period. Purchases and sales of investment securities, income and expenses are translated on the respective dates of such transactions. Since the values of investment securities are translated at the foreign exchange rates prevailing at the end of the period, that portion of the results of operations arising from changes in exchange rates and that portion of the results of operations reflecting fluctuations arising from changes in market prices of the investment securities are not separated. Such fluctuations are included in the net realized and unrealized gain or loss on investments.

Net realized foreign exchange gains or losses arise from activity in forward foreign currency exchange contracts, sales of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded by the Portfolio and the U.S. dollar equivalent of the amounts actually received or paid by the Portfolio. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, other than investment securities, resulting from changes in foreign exchange rates.

3. Investments in Derivative Instruments

Futures Contracts - The Portfolio may buy and sell futures contracts (on recognized exchanges) as a hedge, to maintain investment exposure to a target asset class or to enhance return. The Portfolio may be subject to fluctuations in equity prices, interest rates, commodity prices and foreign currency exchange rates in the normal course of pursuing its investment objective. Futures contracts are standardized agreements to buy or sell a security, or deliver a final cash settlement price in connection with an index, interest rate, currency, or other asset. The Portfolio must deposit an amount (“initial margin”) equal to a certain percentage of the face value of the futures contract. The initial margin may be in the form of cash or securities which is returned when the Portfolio’s obligations under the contract have been satisfied. If cash is deposited as the initial margin, it is shown as collateral on the Statement of Assets and Liabilities. Futures contracts are marked-to-market daily and subsequent payments (“variation margin”) are made or received by the Portfolio depending on whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities and as a component of net change in unrealized appreciation/depreciation on the Statement of Operations. When the contract is closed or expires, the Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. Risks of entering into futures contracts (and related options) include the possibility that the market for these instruments may be illiquid and that a change in the value of the contract or option may not correlate perfectly with changes in the value of the underlying instrument. Futures contracts are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures contracts against default.

During the six months ended June 30, 2013, the Portfolio entered into equity index futures contracts which were subject to equity price risk. During the period April 12 through April 16, 2013, the Portfolio had bought and sold $35,317,057 in equity index futures contracts. At June 30, 2013, the Portfolio did not have any open futures contracts. For the six months ended June 30, 2013, the Portfolio had realized losses in the amount of $582,512 which are shown under Net realized loss on futures contracts in the Statement of Operations.

4. Certain Risks

Market Risk: In the normal course of business, the Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the other party to a transaction to perform (credit and counterparty risk). The

 

MIST-14

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

value of securities held by the Portfolio may decline in response to certain events, including those directly involving the companies whose securities are owned by the Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations.

Credit and Counterparty Risk: The Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Portfolio has unsettled or open transactions may default. The potential loss could exceed the value of the financial assets and liabilities recorded in the financial statements. Financial assets that potentially expose the Portfolio to credit and counterparty risk consist principally of cash due from counterparties and investments. The Portfolio manages counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. The Portfolio’s investment adviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. In order to preserve certain safeguards for non-standard settlement trades, the Portfolio restricts its exposure to credit and counterparty losses by entering into master netting agreements with counterparties (approved brokers) with whom it undertakes a significant volume of transactions. Repurchase agreements are primarily executed under Global Master Repurchase Agreements (GMRA) or Master Repurchase Agreements (MRA), which provide the rights to set-off. Each repurchase agreement is initially collateralized at the transaction level. In the event of default, the total market value exposure will be offset against collateral exchanged to date, which would result in a net receivable/(payable) that would be due from/to the counterparty. Securities pledged as collateral are noted in the Schedule of Investments.

Additional risks associated with each type of investment are described above within the respective security type notes. The Portfolio’s prospectus includes a discussion of the principal risks of investing in the Portfolio.

5. Investment Transactions

Aggregate cost of purchases and proceeds of sales of investment securities, excluding short-term securities, for the six months ended June 30, 2013 were as follows:

 

Purchases

      Sales  

U.S. Government

    Non U.S. Government      U.S. Government      Non U.S. Government  
$0    $ 280,994,550       $ 0       $ 399,001,099   

During the six months ended June 30, 2013, the Portfolio engaged in security transactions with other affiliated portfolios. These amounted to $12,971,936 in sales of investments, which are included above.

6. Investment Management Fees and Other Transactions with Affiliates

Investment Management Agreement - The Trust is managed by the Adviser. The Trust has entered into a management agreement with the Adviser (the “Management Agreement”) for investment management services in connection with the investment management of the Portfolio. The Adviser is subject to the supervision and direction of the Board and has overall responsibility for the general management and administration of the Trust. The Adviser has entered into a subadvisory agreement with Third Avenue Management LLC (the “Subadviser”) for investment subadvisory services in connection with the investment management of the Portfolio.

Subject to the supervision and direction of the Board, the Adviser supervises the Subadviser and has full discretion with respect to the retention or renewal of the subadvisory agreement. The Adviser pays the Subadviser a fee based on the Portfolio’s average daily net assets.

Under the terms of the Portfolio’s Management Agreement, the Portfolio pays the Adviser a monthly fee based upon annual rates applied to the Portfolio’s average daily net assets as follows:

 

Management
Fees earned by the
Adviser
for the six months ended
June 30, 2013

    % per annum     Average Daily Net Assets
$5,313,275      0.750 %    First $1 billion
     0.700 %    Over $1 billion

Management Fee Waiver - Pursuant to a management fee waiver agreement, the Adviser has agreed, for the period April 29, 2013 to April 27, 2014, to reduce its advisory fees set out above under “Investment Management Agreement” for each class of the Portfolio as follows:

 

% per annum reduction

    Average Daily Net Assets
0.050%    Over $1 billion

 

MIST-15

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

An identical agreement was in place for the period April 30, 2012 through April 28, 2013. Amounts waived for the six months ended June 30, 2013 are shown as a management fee waiver in the Statement of Operations.

Certain officers and trustees of the Trust may also be officers of the Adviser; however, such officers and trustees receive no compensation from the Trust.

Transfer Agency Agreement - MetLife serves as the transfer agent for the Trust. MetLife receives no fees for its services to the Trust under the transfer agency agreement.

Distribution Agreement and Plan - The Trust has a distribution agreement with MetLife Investors Distribution Company (“MIDC” or the “Distributor”) in which MIDC serves as the distributor for the Portfolio’s Class A and Class B Shares. MIDC is a wholly-owned subsidiary of MetLife Investors Group, Inc., an affiliate of the Adviser. The Class B distribution plan provides that the Trust, on behalf of the Portfolio, may pay annually up to 0.50% of the average daily net assets of the Portfolio attributable to its Class B Shares with respect to activities primarily intended to result in the sale of Class B Shares. However, under the Class B distribution agreement, payments to the Distributor for activities pursuant to the Class B distribution plan are currently limited to payments at an annual rate equal to 0.25% of average daily net assets of the Portfolio attributable to its Class B Shares. Amounts incurred by the Portfolio for the six months ended June 30, 2013 are shown as Distribution and service fees in the Statement of Operations.

Under the terms of the Class B distribution plan and distribution agreement, the Portfolio is authorized to make payments monthly to the Distributor that may be used to pay or reimburse entities providing distribution and shareholder servicing with respect to the Class B Shares for such entities’ fees or expenses incurred.

Deferred Trustee Compensation - Each Trustee who is not currently an employee of the Adviser, or any of its affiliates, receives compensation from the Trust for his or her service to the Trust. A deferred compensation plan (the “Plan”) is available to the Trustees on a voluntary basis. Deferred amounts remain in the Trust until distributed in accordance with the provisions of the Plan. The value of a participating Trustee’s deferral account is based on theoretical investments of deferred amounts, on the normal payment dates, in certain portfolios of the Trust or Metropolitan Series Fund, an affiliate of the Trust, as designated by the participating Trustee. Changes in the value of participants’ deferral accounts are reflected as Trustees’ fees and expenses in the Statement of Operations. The portion of the accrued obligations allocated to the Portfolio under the Plan is reflected as Deferred trustees’ fees in the Statement of Assets and Liabilities.

7. Transactions in Securities of Affiliated Issuers

A summary of the Portfolio’s transactions in the securities of affiliated issuers during the six months ended June 30, 2013 is as follows:

 

Security Description

    Number of Shares
held at
December 31, 2012		      Shares Purchased      Shares Sold     Number of Shares
held at
June 30, 2013		  

Bel Fuse, Inc. - Class B

      623,781         —         (83,050 )      540,731   

Electro Scientific Industries, Inc.

      1,401,683         147,610         (405,373 )      1,143,920   

ICF International, Inc.

      1,127,378         15,400         (110,800 )      1,031,978   

Stanley Furniture Co., Inc.

      2,325,108         —         (800,000 )      1,525,108   

Superior Industries International, Inc.

      1,630,826         —         (372,773 )      1,258,053   

 

Security Description

    Net Realized
Gain/(Loss)		     Return of Capital      Dividend Income      Ending Value
as of
June 30, 2013		  

Bel Fuse, Inc. - Class B

    $ (852,475 )    $ —       $ 82,079       $ 7,272,832   

Electro Scientific Industries, Inc.

      (1,977,011 )      —         224,160         12,308,579   

ICF International, Inc.

      537,792        —         —         32,517,627   

Stanley Furniture Co., Inc.

      (4,165,128 )      —         —         6,100,432   

Superior Industries International, Inc.

      (231,531 )      —         —         21,651,092   
  

 

 

    

 

 

     

 

 

     

 

 

  
   $ (6,688,353 )    $ —       $ 306,239       $ 79,850,562   
  

 

 

    

 

 

     

 

 

     

 

 

  

8. Contractual Obligations

Under the Trust’s organizational documents, its officers and Trustees, under certain circumstances, may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Trust. Additionally, the Trust has a variety of indemnification obligations under contracts with its service providers. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.

 

MIST-16

Met Investors Series Trust

Third Avenue Small Cap Value Portfolio

Notes to Financial Statements—June 30, 2013 (Unaudited)—(Continued)

 

9. Income Tax Information

The tax character of distributions paid for the years ended December 31, 2012 and 2011 were as follows:

 

Ordinary Income      Long-Term Capital Gain      Total  
2012      2011      2012      2011      2012      2011  
$ —       $ 14,051,906       $ —       $ —       $ —       $ 14,051,906   

As of December 31, 2012, the components of distributable earnings (accumulated losses) on a federal income tax basis were as follows:

 

Undistributed
Ordinary
Income		      Undistributed
Long-Term
Capital Gain		      Net
Unrealized
Appreciation		      Loss Carryforwards     Total  
$ 16,046,360       $ —       $ 133,985,265       $ (88,486,091 )    $ 61,545,534   

The Portfolio utilizes the provisions of the federal income tax laws that provide for the carryforward of capital losses for prior years, offsetting such losses against any future realized capital gains. Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 22, 2010 may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for up to eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of December 31, 2012, the Portfolio had no post-enactment accumulated capital losses and the pre-enactment accumulated capital loss carryforwards expiring on December 31, 2017 were $88,486,091.

 

MIST-17

Item 2. Code of Ethics.

Item applicable only to annual report on Form N-CSR.

 

Item 3. Audit Committee Financial Expert.

Item applicable only to annual report on Form N-CSR.

 

Item 4. Principal Accountant Fees and Services.

Item applicable only to annual report on Form N-CSR.

 

Item 5. Audit Committee of Listed Registrants.

Not applicable.

 

Item 6. Investments.

(a) Schedule of Investments is included as a part of the report to shareholders filed under Item 1 of this Form N-CSR.

(b) Not applicable.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

 

Item 10. Submission of Matters to a Vote of Security Holders.

The registrant does not have procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) Within 90 days of the filing date of this Form N-CSR, Elizabeth M. Forget, the registrant’s President and Peter H. Duffy, the registrant’s Chief Financial Officer and Treasurer, reviewed the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) (the “Procedures”) and evaluated their effectiveness. Based on their review, Ms. Forget and Mr. Duffy determined that the Procedures adequately ensure that information required to be disclosed by the registrant on Form N-CSR and Form N-Q is recorded, processed, summarized and reported within the time periods required by the Securities and Exchange Commission.

(b) There were no significant changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s second fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits

 

(a)(1) Not applicable.

 

(a)(2) The certifications required by Rule 30a-2(a) of the 1940 Act are attached hereto.

 

(a)(3) Not applicable.

 

(b) The certifications required by Rule 30a-2(b) of the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

MET INVESTORS SERIES TRUST
By:   /s/ Elizabeth M. Forget
 

Elizabeth M. Forget

President and Chief Executive Officer

Date: September 3, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:   /s/ Elizabeth M. Forget
 

Elizabeth M. Forget

President and Chief Executive Officer

Date: September 3, 2013

By:   /s/ Peter H. Duffy
 

Peter H. Duffy

Chief Financial Officer and Treasurer

Date: September 3, 2013